Description
A safari is an overland journey, usually a trip by tourists to Africa. Traditionally, the term is used for a big-game hunt, but today the term often refers to a trip taken not for the purposes of hunting, but to observe and photograph animals and other wildlife.
A SUMMER TRAINING REPORT ON SAFARI INDUSTRIES (INDIA) LTD.
INDEX
1. Scope 2. Objective 3. Executive Summery 4. Industry Profile 5. Company Profile 6. Organisation overview 7. Departmental Study 8. Research Work 9. SWOT Analysis 10. Apendix
Bibliography
1
SCOPE
? It provides an exposure to the industrial environment, which can be very helpful in future. ? It helps to understand the psychology of the workers, their habits and their approach to work. ? It helps to study supervisor-worker relationship, which bears a great importence of field along with solving different practically faced problems. ? It develops the factor of discipline in a person. ? It helps for involving and co-operation efforts with co-leagues of different departments to achieve the goal. ? Job responsibilities in various departments is understood.
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Objectives
As being the student of M.B.A. it is necessary to have practical knowledge and for that practical training is very important. Here are some main objectives of the study. ? To get practical knowledge. ? To get aware of industrial environment. ? To get experience of how to deal with our colleuge and also with higher level management ? To get the knowledge of different departments of the company. ? To be aware of different kind of responsibilities that manager has to perform.
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?
4
Industry Profile
The Indian market size for luggage items such as travel bags, suitcases, carry-on bags, carriers, handbags, leather bags, luggage bags, back-packs, hiking carry bags and tote bags is valued at Rs 10 bn annually with luggage manufacturers, exporters and suppliers in the organized sector claiming over 40% of the market. Exports of bags and luggage bags has been growing at the rate of 12% but could go even up to 20% annually. Even though the travel bags and luggage market for hard luggage and soft luggage put together in India is largely dis-organized. VIP Industries Limited will set up a centre in Hong Kong to tap the $750-million luggage market in Southeast Asia and the Asia-Pacific region.
Indian luggage has made way in the Global market and has ample competitors and on-going competition in the Domestic market itself. The Indian luggage market comprises of soft luggage, including suitcases, briefcases, trolley cases, vanity cases, totes and garment bags made available in a price range from Rs280 -Rs6095 under the brand 'VIP. Blow Plast is one of the pioneer largely involved in the promotions of soft and hard luggage. The luggage items marketed include plastic moulded luggage and soft luggage branded as VIP and Sky bags.
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Universal Luggage Mfg Co Ltd, with its Aristocrat, Oscar and Champion brands, is another major player of the Domestic market.
Today, most luggage and travel bags companies in India are following international trends and designs closely because they are aware that the buyer is becoming more conscious of design and exclusive patterns looking luggage/baggage. With more and more people traveling manufacturers, exporters and suppliers of handbags, bags, luggage and travel accessories ensure that each and every luggage item are given away with ample safety features, theft-proof, sturdy and strong. Many hard and soft suitcases, carry-on, handbag models are made available with combination locks. Other durable and useful attributes includes organized interiors with separate compartments for carrying CDs, floppies, shaving bags, etc. The entire sets of soft and hard luggage and handbags are now available in more vibrant colors like -bright reds, green, blues and burgundy, floral prints etc other than the usual standard greys, blacks and browns.
The Indian luggage industry is on a new growth curve as consumers become increasingly conscious, not just of the products' functionality but also the aesthetics.
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Along with the travel and tourism industry, it could well be boom time for the luggage industry too. With the economy picking up and the travel industry witnessing a steady growth in both inbound and outbound Travel, Industry players expect a 25-30 per cent growth in luggage Sales in year 2008. The Indian total luggage market is approximately more than RS 2000 crore annually, Of which 40 percent comes under the unbranded unorganized sector. V.I.P has a lion's share of 75 %, Safari has 14-15 percent and samsonite has remaining 9-10 percent. samsonite has positioned itself a specialist targeting the premium end of the market . Samsonite arrived in India in 1997 and ha since captured 60 percent of the premium segment, with sale growing at 40percent per year. The economy segment witnessing a negative growth, while sales in the mid-segment remained segment. the premium segment, with sales growing at 40 per cent per year. The economy segment witnessing a negative growth, while sales in the midsegment.the premium segment, however, this consists of luggage in the prince bracket of RS 2,500 and above, witnessed reasonable growth. However, the situation seems to be changing now. The India luggage Industry is on the verge of taking off on a new growth curve as travel starts becoming
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increasingly simultaneously. Frequent travel is
demanding
and
sophisticated
making
travelers
look
for
greater
convenience, varied kind of luggage and travel aids on the different kinds and duration of travels they undertake.
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? Luggage Trends
The grow seems to be clearly taking place in the premium segment i.e. Luggage?s priced higher then rs.1000 ,which is expected to grow by Almost 30 per cent in the year 2005 and consumers in this segment Are looking for more and more variety
Luggage is no longer a functional product, which people buy once In 10-15years consumers are beginning to look at as fashion object and are even buying luggage items to coordinate with their clothes Shape an colours have definitely started paying an important role in Luggage buying god looking luggage in attractive colours has started Playing a major part in the purchase decision. Earlier a lot of luggage Bought was during wedding this is still the case but slowly there is a Shift towards need based buying as in just before a business trip for Vacation.
Though India has traditionally been hard luggage market, this preference for Variety and aesthetics has led to a 25-30 per cent growth in the soft Luggage segment. On the country, the hand luggage segment, according experts, has de –grown by
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10-15 per cent. because, of the customers preference for variety and aesthetics in luggage buying pattern.
Frequency in travel, coupled with improvement in travel conditions such as better Airports, higher foreign exchange allotments and international credit cards has made Indians more confident travelers. This, along with the need for convenience and comfort, has made travelers take to soft luggage in a big way. form just being consider a Durable, luggage is now increasingly seen as a travel aid. From a onebox-for-all-requirement, it is moving on to a „repertoire needfulfilling product?. Consumers are going in more for vertical uprights instead of suitcases While hard briefcases are out, leather and portfolios are in a big way similarly back- packs a segment which has always been identified with hikers ,have also caught on in a big way among frequents travelers.
On the other hand, one study conducted by the samsonite reveals that the Moulded and the soft luggage markets actually have a 50-50 share. Luggage Manufacturers have lately been
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trying to offer lightweight solutions in the hand luggage segment also, and there for, expect the to start growing.
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Company Profile
Safari was incorporated as a company way back in 1974 with a small capital Of RS.25000\- as a partnership firm at that point of time with a sales turnover of rs.5 lakhs per annum. Safari industries (India) ltd which was incorporated on 6th July 1980 took over the undertaking and business of safari industries with the effect from 16th November 1980. fully paid up equity shares of the company were issued in total consideration for the takeover. It was promoted by Sumithchandra H Mehta and was converted into a public Limited company Today the company enjoys a market share of around 14-15 per cent with a sales Turnover crossing more than hundred times and total capital employed is Touching to the tune of rs.20 crores from its inception, virtually making Growing at a breath taking rate.
Name : Address:
SAFARI INDUSTRIES (INDIA) LTD 1701/2200 GIDC estate Halol Dis: pms Gujarat.
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pin: 389350
Size of company: From of the company: Plant for factory side: Halol
large scale industries public ltd company 1701/2200 GIDC estates pin: 389350
Dis: pms Gujarat.
Registered office:
SAFARI INDUSTRIES (INDIA) LTD
7,jai laxami indul premises Co-op society ltd Khetani textile compound Kurla (west) Mumbai. 400070 Ancillary units: 1. Oxford industries
2109/01 GIDC Halol-389350 Dis. 2. Panchmahal Balaji enterprise h.p.no 520
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B|H GIDC colony Halol 389350 Dis. Panchmahal
Sales unit:
1.
Safari sales pvt ltd
7,jai laxami indul premises Co-op society ltd, Khetani textile compound, Kurla, (west) Mumbai. 400070 2. Safari sales pvt ltd Ankur chambers, 13\H Tagore hall, Opp Hasibhai chambers, Ellishbridge, Ahmedabad -380006. Banker?s: Central Bank of India
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Auditors : Solicitors: Share department:
Banshi s. Mehta & co. –C.A. Dhru & co. Adroit corporate service pvt ltd. 19,jafarabhoy industrial estate Makwana road Narol naka Andheri (east) Mumbai – 400070
Listing of shaeres:
at Bombay stock exchange Mumbai-400070
Company secretary:
S.K.Somani
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Board of directors
1. SHRI AMUL MEHTA (M.D. & CHAIRMAN) 2. SHRI YOGENDRA P. TRIVEDI 3. SHRI JAYRAMDASH S. PATEL 4. SHRI DHANANJAY M. PAREKH 5. SHRI MULCHAND K. SHETH 6. SHRI YOGESH S, MEHTA 7. SHRI DR. JAGDISH N. SHETH (w.e.f. 30/04/2007 aditional director) 8. SHRI NIRAJ GOYAL (w.e.f. 1/06/2007 aditional director) 9. SHRI SHAILESH J. MEHTA (w.e.f. 1/06/2007)
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MAIN PRODUCTS
The
luggage
industries
comprise
of
HARD
LUGGAGE
and
MOULDED LUGGAGE. The total turn over of luggage industries is Rs 12 billion.
SAFARI INDUSTRIES
Production of two types: 1-Hard luggage
2-Moulded luggage
Company manufactures two types of luggage bags.
1-Briefcase 1-Suitcase The company has varieties of bags in both briefcase and suitcase for e.g. a large size bags, medium size, small size. The size of the bags is based on inches.
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The company has more than 60 products comprising of moulded luggage and hard luggage segment according to customers preference.
The company has its own 20sales depots across the company and more than 2000 dealer?s outlets. The company?s sales force comprises of approximately 200 personnel?s in
market development and sales administration.
The company?s turn over is Rs 63 core per year with the market sale of 20% and sales volume of more than 13 lacks bags per year Company spends 5% of it sales turn over towards advertising and sales promotion. The company offers more than 60 product comprising of herd luggage and soft luggage segment made of HDPE, ABS, NYLON and VINYL right from small “VANITY CASE” to 30”EXTAR LARGE bags of different size. The offer Maximum Retail Prices are starts from 500/- to 4000/-.
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? ROW MATERIAL: 1: P.P. (Poly Propylene) 2:H.D.P.E. (High Density Poly ethylene) 3: L.D.P.E. (Low Density Poly ethylene) 4
.P.C.P (Poly Propylene co-polymer) ? SOURCE OF RAW MATERIEL 1:Relience (hajira) 2: Haldia 3
upand 4: GE plastic 5: ABS Company ? COMPITITORS 1: “VIP” and “BLOW PLAST” –A brand of Parimal group 2: “ SAMSONITE” – A Brand of U.S.A. based SAMSONITE Corporation 3: UNIVERSAL LAGGAGE
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4: ARISTOCRATE
HISTORY OF THE ORGANISATION
Safari industries were foundered as a partnership firm in 1974 at Plot No 1701/2200, GIDC Estate Halol. Dis panchmahal, Gujarat. With an initial investment of Rs 0.15
million as a small scale unit to manufacture plastic mouled luggage by the chairman of the company Shree Sumatichandra H .Mehta he hade practically no financial resources to begin with . But this was more than compensated with a fund of goodwill, strong determination and resourceful and dedicated approach toward the task at hand He just did not enough capital to invest in specialized technology sophisticated moulds. But components required for manufacture of luggage where brought from unit to company specification and quality standers Soon the company launched fiberglass briefcase and
suitcase in the market success of the company can be attributed to a great extent our first lesson was how to stay close to the customers. The answer is to the insistence of quality control and innovation.
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In1974 when company entered plastic moulded luggage Market Company did not have any access top the market that was dominated by well-established brand. The company encountered several difficulties In gating a foothold, let alone a share of market in the initial years. It was uphill task to fight competition with a strong brand image and well-established countrywide distribution network the brand name “VIP” of parimal group has already became a generic name for plastic mould luggage.
The constitution of the company was again changed to plastic ltd company on 1/01/1986 was named as SAFARI INDUSTRIES (INDIA) LTD. Competitors used on technique in forcing the dealers not to deal in SIIL luggage so that the brand name could not be established we won dealers confidence with quality products which where grossly neglected by competitors product differentiation established SAFARI as a brand. Today SAFARI is a brand reputed for quality with a health 20% market share successful products innovation and effective market segmentation has catapulted SAFARI in to highly visible brand. The company now seeks to diversify and performed similarly newer field.
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MISSION
Safari
is
committed
to
produce
quality
consumer
goods
identifying customers needs and wants, applying higher level of skill, using production method and TOTAL QUALITY MANAGEMENT (TQM) technique that result in to lowest cost. The production process is constantly reviewed for improvement in methods, adopting innovation and up gradation in technology to improve productivity. Cost assurance through value engineering and elimination of wastage to improve productivity and ensuring quality standard to maximize customer satisfaction. Only then
the company achieve its objective of “Leadership through quality”.
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VISION “Being good isn’t good anymore, we must be better” With the travel and tourism industry becoming increasing day by day. There is tremendous scope for such companies to innovate and develop keeping constant eye on quality control. Today travel and tourism industry getting more and more incentives from the government agencies and with the grooving competition among the tour operators. The volume of traveler is likely to increase. This will result in to influx of tourist there by directly increasing the demands for bags. The present generation wants lighter baggages, which should be compact, and pilferage proof. Thus this will increase the possibility of more innovation leading to better affordable quality luggage.
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ACHIEVEMENT The best value of the given product is the product itself. The joy of buying embody the passion and commitment that will make the company a leader in its field. Successful product innovation and effective segmentation have catapulated Safari into highly visible brand. The company now seeks to diversify and perform similarly newer fields. At present the company covers 20% of market share of the industry for having best quality product.
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VALUES The company has won the dealers? confidence with quality products, prompt aftersale service and one year gurrantee which were grossly neglected by competitors. Product differentiation established Safari as a brand. The company is reputed for its values and also for the quality of the product.
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? “The Total Quality Management Safari” At safari, They have the stringent quality norms for the product and services which is evident from the fact that in the staff and managerial cadre, we have 20% employees in the quality assurance department, out of the total strength whose job is to monitor, educate and the people for the quality management The quality of all input materials are checked piece to product is also checked piece to piece customers complaints and expectations. In order to achieve the perfection in the quality management, we have systems, norms in form of: standard operating procedure,” (sops) and standard testing etc. whereby we insure the quality of the product. As far as the modern tools of achieving the total quality management are concerned, recently in the new millennium, we have begun the process in a humble way by introducing quality circles, kaizen, and suggestion scheme. the process / consultation is also in pipeline for getting ISO 9000 certification and to introduce five „S? programme. In order to achieve the ultimate objective of total quality management, we have a long way to go and we are well aware it needs a drastic change in the thinking of people, system and
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piece
before it goes for use and likewise before dispatch , the final basis on the decided parameters which keeps on adding up- depending on the
tools which will yield results in from up better quality ,batter productivity, better employees and customer relationship and better overall up keepment,- which in turn will reward us in form of customer delightful satisfaction quality, services and expectations in terms of product, and in employees
satisfaction as well as unorganized sector and also from the new players in the market. A part that , over all recessionary trend, dumping of cheaper imported goods , natural calamities faced by the country. All put to gather has resulted in 25% down trend in overall sales making it all the more imperative to go for TQM .
In order to combat that we had to reduce prices our products without affecting product – quality and had to down size the employee strength also. In every nook corner, we have relooked and redefined the things to cut the cost and reducing the wastage and rework and to further improve our quality standard as for which we got a good support from all our employees . As a company , now our concentration is to improve , not only our customer loyalty and brand image , but also to improve our quality of human resource working with us to achieve our concentration is to improve , not only our customer loyalty and brand image, but also to improve our
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quality of human resource working with us to achieve our ultimate objective of “total quality management” we all know it is not easy to change the mind set and attitude and aptitude of the people and to bring than out from their wrong conceived beliefs , perceptions and expectations. This needs a continuous persuasion, motivation counseling, and support to make people come out or near compartmental making and state caring for the organization than that of self or the department. We strongly believe that the employee?s salary is not paid the company, but it is paid by the existence. As a matter of fact , now our endeavors is towards introducing different tools for quality management and simultaneously changing employees mind set for which we have started the following activities: customer because if we do not have customer to our product, we cannot think of our
1) Departmental Meetings 2) Suggestion Scheme 3) Kaizan 4) Quality Circle 5) J I T Systems 6) Workers Education &Training
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organization structure
Chairman and Managing Director
SR Vice President operation
SR Manager Personal Manager
`
Asst. Manager P&A
General Manager Manufacturing
Manager Finished Goods Storage
Asst. Manager Purchase
Incharge PLG
Manager IMD
Manager Q.A
Manager Production
Manager (F/B)
Incharge ANOD&PC
Asst. Manager Q.A
Manager Maintenance
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LIST OF DIFFERENT DEPARTMENT ? PRODUCTION DEPARTMENT ? MOULDING DEPARTMENT ? FRAMEBENDING DEPARTMENT ? QUALITY CONTROL DEPARTMENT ? ASSEMBLY DEPARTMENT ? SAFARI PRESS METAL CO.LTD. ? SECURITY DEPARTMENT ? STORE DEPARTMENT ? FINANCE DEPARTMENT ? DESPATCH DEPARTMENT ? SALES DEPARTMENT ? HUMAN RESOURCE DEPARTMENT
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DEPARTMENTAL STUDY Production Department ? Production Process 1) From raw material to top-bottom shell First of all, they are making top bottom shell of the moulded bag. For this they Require machine which called injection moulbing machine. which moulds granules in to require machine which called injection moulded shell they require raw material which they are getting from reliance and IPCL . the bag that they are making from this material is with Frame and without frame . For this different types of bags they require different material e.g. for bags with required is PPCC, B030, IN308, M312, M304 and for without frame they require HDP Reliance 6.0007 this material is heavy than the above material material. For the purpose of making top bottom shell, they require granules be of different colors. So for making this, required color they are processed in mixing machine with required color and makes it of same color. After this process they are put this raw material in injections moulding machine. The machines mould the material in to the shape of bag and this shape called top-bottom shell.
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because
for
bag
without
frame
require
heavy
2)
Locking components
The locking components for safari industries made by one independent company called safari Press Metal Pvt Ltd. To make a lock they are using the best iron metal. In making or locking component the process used is first of all they require iron plate. They cut it according to size of the lock, and then this lock plate is looks like raw lock plate, after this process it looks like a front model of the lock. Then there is a process called lever fitting process. In this process lever is fitted in the lock. There is only one lever the lock. After this process it goes riveting, for fitting of screws. And it last it goes for metaling or for powder coating. 3) Framing department The framing department of company makes frame of the bag from aluminum section. They are getting it from the Gujarat aluminum company. To make frame of the bag they require 2 sizes of this section which is 21” and 24” out of this according to sizes of bags they are making frames for the bag. The aluminum section is a straight road. They cut it in prop sizes. First they make the square for the top bottom shell. After powder coating is completed, it is sent to the “quality
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inspection”. In this stage it is checked, is there any scratches, wholes, finishing etc.
4) Final making bags Practically this is last stage fo making bags. In this process the whole material which is one by one, made in plants is collected here. Firstly fitting of top bottom shell, top bottom shell are fitted using hinges. Hinges are fitted with screws then if with the frame, frame is fitted on it. And I f without frame it is passed for the fitting of locking components on it. And if without frame it is passed for the fitting of locking components on it. There are generally 3 locks on the bag on is in the middle and other 2 on the left and right side. After there is a place between 2 lock on that place handle is fitted. And it is passed for the quality control. Here the bag is checked for locking component and frame fitting. After this the whole process, the bag is ready for use.
5)
Finalization In finalization this bag is processed for checking, the whole bag is checked over here and warranty card, stickers and keys
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of the bag is checked. In this checking process firms, lock, and warranty cards and stickers all these things are checked once again. And in this last these bags are going for the packing send in to the dispatch department for dispatching it to the Safari Sales Pvt Ltd
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Department
Number machines
of Capacity
1. injection Moulding
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injection More than 1,60,000 bags per month
moulding machines and vacuum
forming machine
2. bending
frame 8
hydraulic
and To produce more 60,000 Frames per month
pneumatic dies.
3. press shop
21 power presses 12 power presses
To cater 90% requirement of the plant capacity
4. coating
powder and
To cater more than 65000 frames and its components per month
anodizing
5. tool room
For making required tools, dies and small plastic moulds
Fully computerized and equipped 6. design and development with the latest Gadgets and software.
To ensure product quality and its 7. quality and assurance consistency- right from input stage to dispatch stage
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PROCESSING CHART
PURCHASE SECURITY DEPARTMENT RAW MATIRIAL DEPART MENT
FRAMEBENDING AND MACHINE SHAPE DEPARTMENT MOULDING DEPARTMENT
ANVERDAISING DEPARTMENT
ASSEMBLY DEPARTMENT STORE DEPARTMENT STORE DEPARTMENT PACKING DEPARTMENT
DISPATCH DEPARTMENT
36 ASSEMBLY DEPARTMENT
SALES DEPARTMENT
MOULDING DEPARTMENT
It is one of the major departments, where shells are produced in various sizes and colours. It is the main part of the product so naturally it needs more attention.
(A) FUNCTION: Production manager is the head of the department. One production engineer works as a subordinate more over there are two shift incharges and two shift supervisors. One typist and 94 workers including 12 trainees Working in this department. They are not skilled labours. Labours acquire skill after coming in this department.
(B) MACHINERY: The machines are imported and complicated so engineer’s supervision is required. There are 10 automatic injection machines with various capacity and flexibilities. It is run by electric power. For cooling purpose water is supply continuously. The machines are semi automatic. Machine have different automatic safety device with in 60 to 85 second a shell is produced.
(C) PRODUCTION: Normally about 8000 shells are produced per day. The machines work round the clock. The excess part of finished shell must be removed.
(D) TECHNOLOGY: 37
The advance technology saves manpower. And maintain quality of production without any variation more over it can exceed production and it is safer.
(E) JOB SATISFACTION: The operation is easy so workers get more rest and comfort. They are satisfied with their works.
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FRAME BENDING DEPARTMENT
The frame is one of the important parts of the product; it is made out of the aluminum.
(A)
FUNCTION: There are totally 61 workers works in the department, under the supervision of one engineer, a assistant engineer and three supervisors approximately each worker is supposed to bend some 175 to 200 frames per day. They bend some 1400 frames. After getting shape it goes for drilling on jig, which run by electric power. They drilled for locker, pilot hole and other components.
(B)
SAFETY: Keeping comfort of the worker in a mind a plastic driller has replaced. It is safe against electric shock. While working on the banding die awareness and skill is required. In the mishandling of any of the to workers will caused injury to his coworker. So company have planned to use a modified machines which will be easy to operate and free from above danger. While handling the aluminum metal reacts on their palms. Though the company provides hand gloves but workers hesitate to use gloves. 39
(C) MACHINE SHOP:
Machine shop is a part of the frame bending department in which different part of the machines are made. Hare lath machine. Turning machine, die etc. are used all technical works done by skilled workers while staff are I.T.I. degree holders. It should be noted hare that for the shake of the precaution of dynamic part of the machine is covered by iron frame.
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QUALITY CONTROL DEPARTMENT
(A)
IT’S IMPORTANCE: To maintain and improve the quality of product it is a special department. It shows awareness of the company about quality of the product. Indian customers are not so award in comparisons to the European customers. They are able to point out the limitation of the product. In our county producer him self has to carry this responsibility other wise low quality will affect the market adversely.
(B)
FUNCTION: Two officers and 43 inspectors assists the manager by continues checking and inspecting all the parts of bag. They do not overlook even a minor fault. They not only maintain the quality of product but also try to improve it. Indeed, this department’s contribution is major in increasing the market of the company. In fact, the need of the department indicates that works have not their morality.
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ASSEBLY DEPARTMENT
(A)
FUNCTION: This department consists of an assistant manager, two officers and 62 workers. This department is responsible to give the finishing touch to the product. The workers have not special skill but after experience they acquire skills. Here all work is done in a channel so naturally efficiency of co-worker effected to the whole channel. So they make special channel for the trainee workers.
(B)
SAFETY: There is no scope of an accident because they deal with minor tools like hemmer and driller. To keep pace with the market design of the product change continuously. The change in design effect to there efficiency.
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SAFARI PRESS METAL CO. LTD.
(A)
INTRODUTCION: It is a sister concern of the safari industry. Mr.Amul Mehta is its chairman. It is a small-scale industry. The material, which comes from the safari industries, is the raw material for this company. They do not produce any special part but they modify of safari’s product. It is located in two different sections. One is called “Safari press metal” and other one is “Anverdaising”. Pay scale and other facilities is the same as that of safari industry. They have a common canteen.
(B)
ANVERDISING:
(1) FUNCTION: There are 34 workers including two supervisors. And store clerk and two watchman. (2) PROCESS: The frames come to this plant from “safari industries”. After heating process the frame acquire strength and create a good show. Since it is consumer good it must be attractive. (3) PLANT MANTENANCE:
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They regularly maintain duckboard and walk ways where acids are used; side duck are inspected every week. Salt is remove from the top of the tank. Slip joints, flanged are also checked for leakage, fans are also checked every week. All mechanical equipments are also inspected and maintained as per manual data book
(4) PROTECTIVE CLOTHS: Company gloves, Gum boots in acidic plants. Company gives Protective cloths also. provides appropriate protective cloths,
(5) ACIDIC PLANTS: Nitric gases are highly dangerous even inhaling small amount can lead to severe injury especially to lungs. But it is found that labours do not use protective elements. They avoid it because it is not convenient to work wearing a gas mask.
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STORE DEPARTMENT
FUNCTION: This department is consulted with vice-president commercial. Assistant manager is the head of the department. He does his work with co-operation of two-store assistant, four store clerk and 28 workers, and it is work in general shift only Store department is very well aware of the requirement of all departments. When material comes to the company as per order of purchase department. According to there copy store department receives the material and checks it quality and quantity.
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SECURITY DEPARTMENT
FUNCTION: Security department have 29 guards, one supervisor and one officer. This department is responsible to look after the whole property of the organization. It consults vice-presidents but informally its functions to consultation with the personal department. IT’S IMPORTANCE: This department is not directly concerned with manufacture process or market dealing but to some extent it can be called a left hand of the organization. It takes care of whole property, includes material goods, documents etc. it is responsible to regulate the material movement and labour activities. It takes immediate action in case of mishappening, fire of accident. This department also looks after the work of estate keeping. This department also maintains the first aid box. In the case of dispute, misunderstanding or strike it is this department, which responsible to settle down the matter and maintain peace.
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Finance department
ITS IMPORTANCE Finance department is one of the most important
departments in the organization. To run any kind of business, one must need finance. Finance is the life-blood of the business activity and this department manage the available fund which company has.
FUNCTION The main function of the finance department is to collect money from availabl sources and make its effective utilization. This department also keeps handling of all kind of financial data.
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3.3 Working Capital In Safari Industries (India) Ltd
3.4 Working Capital Trend for Safari Industries (India) Ltd. Table – 3.4 200304 1010 1429 47 50 2536 1378 5 1383 200405 1176 1353 53 54 2636 1480 38 1518 200506 1381 1239 52 53 2725 1464 17 1481 200607 1468 1527 62 62 3119 1495 24 1519 200708 1616 1528 226 71 3441 1704 157 1861
Particulars
Inventory Debtors Cash & Bank Balance Loans & Advances Current assets (A) Current Liability Provisions Current liabilities(B) Working B) Capital(A-
1153
1118
1244
1600
1580
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Working Capital Trend
2000 1500 WCR 1000 500 0 2003-04 2004-05 2005-06 Year 2006-07 2007-08 1153 1118 1244 1600 1580
Graph – 3.4
Interpretation From the above table3.4.1 and graph 3.4.1 we can find that working capital of the company shows increasing trend. Every element of the working capital is increasing. Current asset in 2003-04 RS 2536 lacs which increased to RS 3441 lacs in the year 2007-08. On the other side current assets increased from RS 1383 to 1861 lacs, from 2003-04 to 2007-08. So overall working capital requirement increased from RS 1153 to1580 lacs in the period of 2003-04 to 2007-08.
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INVENTORY MANAGEMENT
5.1
Introduction
Inventories represent the second largest asset category for manufacturing companies, next only to plant and equipment. The proportion of inventories to total assets generally varies between 15 and 30 percent. The concept of inventory management has been one of the many analytical aspects of management. It involves optimization of resources available for holding stock for various materials. Lack of inventory can lead to stock-outs, causing stoppage of production, but very high inventory on the other hand can result in increased cost of production due to high cost of carrying inventory.
5.2
Types Of Inventory
The various forms of inventories exist in a manufacturing company are as follows:
? Raw material ? Work in progress ? Finished goods
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Component Of Inventory As A % Of Total Inventory Table -5.8
Year Total Inventory 2004-05 2005-06 2006-07 1176 1381 1468 RM as a % WIP as a % FG as a % of of Aggregate of Aggregate Aggregate Inventory 28.15 20.35 27.86 Inventory 4.51 4.06 3.55 68.59 007-08 1616 27.78 3.65 Average 1410.25 26.04 3.94 70.04 68.57 Inventory 67.34 75.59
Graph – 5.8
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Component Of Inventory As A % Of Total Inventory
80 70 60 50 40 30 20 10 0 2004-05 2005-06 Year 2006-07 007-08 4.51 4.06 3.55 3.65 28.15 20.35 27.86 27.78 RM as a % of Aggregate Inventory WIP as a % of Aggregate Inventory FG as a % of Aggregate Inventory 67.34 75.59 68.59 68.57
percentage
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RATIO ANALYSIS
? Types Of Ratios
? Liquidity Ratio: It measures the ability of the firm to meet its current obligations. In fact, analysis of liquidity needs the preparation of cash budgets and cash and fund flow statements; but liquidity ratios, by establishing a relationship between cash and other current assets to current obligations, provide a quick measure of liquidity. A firm should ensure that it does not suffer from lack of liquidity, and also that it does not have excess liquidity. ? Leverage Ratio: The short- term creditors, like bankers and suppliers of raw material, are more concerned with the firm?s current debtpaying ability. On the other hand, long-term creditors, like debenture holders, financial institutions etc. are more concerned with the firm?s long term financial strength. In fact, a firm should have a strong short as well as long term financial position. To judge, the long term financial position of the firm, financial leverage, or capital structure ratios are calculated. These ratios indicate mix of funds provided by owners and lenders. As a general rule, there should be an approximate mix of debt and owners equity in financing the firm?s assets. ? Profitability Ratio: A company should earn profits to survive and grow over a long period of time. Profit is the difference between revenues and expenses over a period of time. Profit is the ultimate „output? of a company, and it will have no future if it fails to make sufficient profits. Therefore, the financial manager should continuously evaluate the efficiency of the company in terms of profit. The profitability ratios are calculated to measure the operating efficiency of the company.
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?
Activity Ratio: Activity ratios are employed to evaluate the efficiency with which the firm manages and utilizes its assets. These ratios are also called turnover ratios because they indicate the speed with which assets are being converted into sales. A proper balance between sales and assets are managed well. Several efficiency ratios can be calculated to judge the effectiveness of asset utilization.
Liquidity Ratio 7.1.1 Current Ratio
The current ratio of a firm measures its short-term solvency, that is, its ability to meet short-term obligation. Conventionally, a current ratio of 2:1 is considered satisfactory. It is important to note that a very high ratio of current ratio may be indication of slack management practices, as it might signal excessive inventories for the current requirements and poor credit management in terms of overextended accounts. Current Assets Current Ratio = --------------------------------Current Liabilities
Table – 7.1.1
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(RS. In lakhs)
year
200304
200405 2636 1518
200506 2725 1481
200607 3119 1519
200708 3441 1861
Current Assets Current Liabilities Ratio(Times)
2536 1383
1.83
1.74
1.84
1.85
1.85
Graph – 7.1.1
Current Ratio
1.9 Ratio 1.8 1.7 1.6 2003-04 2004-05 2005-06 Year 2006-07 2007-08 1.83 1.74 1.84 1.85 1.85
Interpretation From the table 7.1.1 & graph 7.1.1 we can see that the current ratio in all the years are ranging nearly 1.75 to 1.85 which is very near to the standard current ratio and it is 2. So we can say that the company?s current assets are able to pay the current liabilities. So company?s current position is sound.
7.1.2 Quick Ratio
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A rupee of cash is more readily available to meet its current obligation than a rupee of, say, inventory. This impairs the usefulness of the current ratio. The acid test ratio is a measure of liquidity designed to overcome this defect of the current ratio. It is often referred as to quick ratio because it is measurement of a firm?s ability to convert its current assets quickly into cash in order to meets its current liability. Thus, it is a measure of quick or acid liquidity. The acid test ratio is the ratio between quick current assets and current liabilities.
Current Assets – Inventory Quick Ratio = Current Liabilities -------------------------------------------------
Table (RS. In lakhs) year 200304 CA – Inventory 1526 200405 1460 200506 1344
–
7.1.2
200607 1651
200708 1825
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Current Liabilities Ratio(Times)
1383
1518
1481
1519
1861
1.10
0.96
0.91
1.09
0.98
Graph – 7.1.2
Quick Ratio
1.2 1 0.8 0.6 0.4 0.2 0 1.1 0.96 1.09 0.91 0.98
Ratio
2003-04
2004-05
2005-06 Year
2006-07
2007-08
Interpretation: From the table 7.1.2 & graph 7.1.2 we can see that the quick ratio in all the years are ranging near to 1 which is very near to the standard norm which is 1:1 . So from this we can interpret that company have very good position as far as we think about this ratio. Company should try to maintain this ratio in the future also.
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7.1.3
Cash Ratio
Cash ratio is the most conservative ratio. It excludes all current assets except the most liquid cash and cash equivalent. The cash ratio is an indication of firms ability to pay its current liabilities, if for some reason immediate payment is required. Cash Cash Ratio = -----------------------------------------Current Liabilities
Table – 7.1.3 (RS. In lakhs)
year
200304
200405 53 1518
200506 52 1481
200607 62 1519
200708 226 1861
Cash
47 1383
Current Liabilities Ratio(Times)
0.03
0.03
0.04
0.04
0.12
Graph -7.1.3
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Cash Ratio
0.15 Ratio 0.1 0.05 0 2003-04 2004-05 2005-06 Year 2006-07 2007-08 0.03 0.03 0.04 0.04 0.12
Interpretation From the table 7.1.3 & graph 7.1.3 we can see that in the year 2003-04 &2004-05 , the ratio is 0.03, in the year 2005-06 & 2006-07 it increases and reaches to 0.04 which is due to more increase in the cash, while in the year 2007-08 the ratio again increases to 0.12 which is due to increase in cash balance and current liabilities but as compare to the previous year company has increased 3 times.
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7.2 Leverage Ratio 7.2.1 Debt Equity Ratio
The relationship between borrowed funds and owner?s capital is a popular of the long-term financial solvency of the firm. The relationship is shown by the debt- equity ratio. The ratio reflects the relative claims of creditors and shareholders against the assets of the firm. Alternatively, this ratio indicates the relative proportion of debt and equity in financing the assets of the firm. The relationship between outsiders claims and owner?s capital can be shown in different ways and accordingly, there are many variants of the debt equity ratio . Debt Equity Ratio = Net Worth Total Debt -------------------------------------
Table 7.2.1
(RS. In lakhs)
year
200304
200405 729 917 0.79
200506 789 899 0.88
200607 915 1048 0.87
200708 864 1053 0.82
Total Debt Net Worth
916 906 1.01
Ratio(Times)
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Graph - 7.2.1
Debt Equity Ratio
1.5 Ratio 1 0.5 0 2003-04 2004-05 2005-06 Year 2006-07 2007-08 1.01 0.79 0.88 0.87 0.82
Interpretation: From the table 7.2.1 & graph 7.2.1 we can find out that Debt equity ratio of the year 2003-04 is 1.01 which is highest as compared to the ratio of 200405 to 2007-08 which is ranging between 0.79 to 0.87 loans and unsecured loans are same but increased. It very near to each other. because secured reserves and surplus has been
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7.2.2
Debt Ratio
Several debt ratios may be used to analyze the long term solvency of a firm. The firm may be interested in knowing the proposition of the interest bearing debt in the capital structure Total Debt Debt Ratio = ---------------------------------------Total Debt + Net Worth
Table -7.2.2 year 200304
Total Debt
(RS. In lakhs) 200405 729 1846 200506 789 1688 200607 915 1963 200708 864 1917
916
Total Debt + Net 1822 Worth
Ratio(Times)
0.50
0.39
0.47
0.47
0.45
Graph – 7.2.2
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Debt Ratio
0.5 0.5 0.4 Ratio 0.3 0.2 0.1 0 2003-04 2004-05 2005-06 Year 2006-07 2007-08 0.39 0.47 0.47 0.45
Interpretation: From the table 7.2.2 & graph 7.2.2 we can find out that Debt ratio of the year
2003-04 is 0.50 which is decrease in the following years during the years 2004-05 to 2007-08 which is near 0.45 to 0.47 it sows the stability in all the years there is not any big changes in unsecured loan. So we can say that there is nearly 45 to 47 percentage of are making from lenders.
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7.2.3
Capital Employed Ratio
There is another alternative way of expressing the basic relationship between debt and equity.
Capital Employed Capital Employed Ratio = Net Worth Table – 7.2.3 year 200304
Capital Employed Net Worth
-------------------------------
(RS. In lakhs) 200405 1737 917 1.89 200506 1763 899 1.96 200607 2023 1048 1.93 200708 1960 1053 1.86
1914 906 2.11
Ratio(Times)
Graph – 7.2.3
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Capital Employed Ratio
2.15 2.1 2.05 2 1.95 1.9 1.85 1.8 1.75 1.7 2.11 1.96 1.89
Ratio
1.93 1.86
2003-04
2004-05
2005-06 Year
2006-07
2007-08
Interpretation: From the table 7.2.3 & graph 7.2.3 we can find out that capital employed ratiois showing the decreasing trend as it was 2.11 in the year 2003-04 which declines to 1.86 in the year 2007-08. So we can say that capital employed is nearly 2 times of the net worth . and we also know that it is alternative ratio of the debt equity ratio which shows the contribution from the lender and owner.
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7.3 Profitability Ratio 7.3.1 Gross Margin Ratio
The gross profit margin reflects the efficiency with which management produces each unit of product. This ratio indicates the average spread between cost of goods sold and sales value. A high gross profit margin ratio is a sign of good management. A low gross profit margin may reflect higher cost of goods sold due to firms in ability to purchase raw material at a favorable terms, inefficient utilization of plant and machinery, resulting in higher cost of production. Gross Profit Gross Profit Margin = --------------------------------Sales Table (RS. In lakhs) year 200304
Gross Profit Sales
X 100
–
7.3.1
200405 176 4607 3.82
200506 122 4559 2.68
200607 145 5633 2.57
200708 172 6245 2.75
216 4565 4.73
Ratio(Percent)
Gragh -7.3.1
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Gross Profit Margin
6 Ratio 4 2 0 2003-04 2004-05 2005-06 Year 2006-07 2007-08 4.73 3.82 2.68 2.57 2.75
Interpretation: As we know that higher the profit margin is very good for the any company but for Safari Industries (india) ltd. it is low so company should try to increase this ratio.In the year 2003-04 the gross profit margin is highest which reflects lower cost of goods sold due to firms ability to purchase raw material or over investment. Whereas, in the year 2004-05 it under the 4% and 2005-06 to 2007-08 it is under 3% so the contribution of the company decreases and gross profit margin ratio is also decrease but still it is good for the company.
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7.3.2Net
Profit Margin
Net profit margin ratios establish a relationship between net profit and sales and indicate management?s efficiency in manufacturing, administering and selling the products. This ratio is overall measure of the firm?s ability to turn each rupee sales into net profit. If the net profit in inadequate, the firm will fail to achieve the satisfactory return on shareholder?s funds. Net profit Net profit margin = ------------------------Sales
Table -7.3.2 (RS. In lakhs)
x 100
year
200304
200405 41 4607 0.89
200506 (18) 4559 (0.39)
200607 13 5633 0.23
200708 93 6245 1.49
Net profit Sales
77 4565 1.69
Ratio(Percent)
Graph -7.3.2
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Net profit margin
2 1.5 0.89 Ratio 1 0.5 0 -0.5 2003-04 2004-05 2005-06 Year 2006-07 2007-08 -0.39 0.23 1.69 1.49
Interpretation: As we know that higher the net profit margin is very good for the any company but for Safari Industries (india) ltd. it is low so company should try to increase this ratio. In the year 2003-04 the net profit margin is highest which reflects lower cost of goods sold and lower interest , due to firms ability. Whereas, in the year 2004-05 it is 0.89 and 2005-06 company has incurred loss but again in the year 2006-07 it is 0.23%. And the year 200708 company?s efficiency increase net profit margin.
7.3.3 Return on Investment
The term investment refers to total assets or net assets. The firms employed in net assets are known as capital employed. The conventional approach of calculating return on investment is to divide PAT by investment. Investment
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represents pull of funds supplied by shareholders and lenders, while PAT represents residue income of shareholders.
Profit After Tax Return on Investment = --------------------------------Total Assets x 100
Table-7.3.3
(RS. In lakhs)
Year
200304
200405 41 1737 2.36
200506 (18) 1763 (1.02)
200607 13 2023 0.64
200708 93 1960 4.74
Profit After Tax
Total Assets
77 1914 4.02
Ratio(Percent)
Graph -7.3.3
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Return on Investment
4.74 5 4 3 Ratio 2 1 0 -1 -2 2003-04 2004-05 2005-06 Year 2006-07 2007-08 -1.02 4.02 2.36 0.64
Interpretation: From the table 7.3.3 & graph 7.3.3 we can find out that in the year 2003-04 the ratio was 4.02 which got decreased to 2.36 in the year 2004-05 and become negative in the year 2005-06 due loss. But again company has convert that loss in to positive ratio becomes 0.64 in the year 2006-07 & reaches to 4.74 in the year 2007-08 which is highest comparing to all the years. So company should try to stabilize position.
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7.3.4 Return on Equity
Common or ordinary shareholders are entitling to the residual profits. The rate of dividends is not fixed. The earnings may be distributed to shareholders or retained in the business. A return on shareholders equity is calculated to see the profitability of owners investment. Profit After Tax Return on Equity = --------------------------------------- x Net Worth Table-7.3.4 Year 200304 Profit After Tax
Net Worth
100
(RS. In lakhs) 200405 41 917 4.47 200506 (18) 899 (2.0) 200607 13 1048 1.24 200708 93 1053 8.83
77 906 8.50
Ratio(Percent)
Graph -7.3.4
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Return on Equity
10 8 6 Ratio 4 2 0 -2 2003-04 2004-05 2005-06 Years 2006-07 2007-08 -2 1.24 4.47 8.5 8.83
Interpretation: From the table 7.3.4 & graph 7.3.4 we can find out that in the year 2003-04 the ratio was 8.5 which got decreased to 4.47 in the year 2004-05 and become negative in the year 2005-06 due loss. But again company has convert that loss in to positive ratio becomes 1.24 in the year 2006-07 & reaches to 8.83 in the year 2007-08 which is highest comparing to all the years. So company should try to stabilize position. So company should find out the more falts for better profit because it reflects the interest of the present as well as the prospective shareholders of the company.
7.3.5 Earning Per Share
EPS calculation made over years indicates whether or not the firm?s earnings power on per share bases has changed over that period. The EPS of the company should be compared with the industry average and earnings per share of other firms. Profit After Tax
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Earning Per Share = ---------------------------------No. of equity Shares
Table-7.3.5 (RS. In lakhs)
Year
200304
200405 41 26
200506 (18) 26
200607 13 29.9
200708 93 29.9
Profit After Tax
No. Shares of
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equity 26
Ratio
2.96
1.58
(0.69)
0.43
3.11
Graph -7.3.5
Earning Per Share
4 3 2.96 1.58 -0.69 2003-04 2004-05 2005-06 Year 0.43 3.11
Ratio
2 1 0 -1
2006-07
2007-08
Interpretation:
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From the table 7.3.5 & graph 7.3.5 we can find out that in the year 2003-04 the ratio was 2.96 which got decreased to 1.58 in the year 2004-05 and become negative in the year 2005-06 due loss. But again company has convert that loss in to positive ratio becomes 0.43 in the year 2006-07 & reaches to 3.11 in the year 2007-08 which is highest comparing to all the years. So company should try to stabilize position. So company should find out the more falts for better profit because it reflects the interest of the present as well as the prospective shareholders of the company. In this ratio
we can say that company is far behind than other competitors so company try to earn more profit.
Dividend Payout Ratio
The dividend payout ratio is DPS divided by the EPS. It is shows the percentage of Profit Company pays as a dividend from the distributable profit. Dividend Dividend Payout Ratio = -------------------------- ------ x 100 Profit After Tax
Table7.3.6 (RS. In lakhs)
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Year
200304
200405 29 41 7.07
200506 -(18) 00
200607 -13 00
200708 -93 00
Dividend
-77 00
Profit After Tax Ratio(Percent)
Graph -7.3.6
Dividend Payout Ratio
8 6 Rati0 4 2 0 2003-04 2004-05 2005-06 Year 2006-07 2007-08 0 0 0 0 7.07
Interpretation: From the table 7.3.6 & graph 7.3.6 we can find out that in the year 2004-05 only company is paying dividend and that is also 7.07 %. so we can say that rather than paying dividend company more interested in the making more reserves.
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7.4 Activity
Ratio
7.4.1 Inventory Turnover Ratio
Inventory turnover indicates the efficiency of the firm in producing and selling its product Cost of Goods Sold Inventory Turnover Ratio = --------------------------------------. Average Inventory Table-7.4.1 (RS. In lakhs) Year 200304
Cost Sold Average Inventory of Goods 4349
200405 4431
200506 4437
200607 5488
200708 6073
1010
1093
1278.5
1424.5
1542
Ratio(Times)
4.31
4.05
3.47
3.85
3.94
Graph – 7.4.1
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Inventory Turnover Ratio
6 Ratio 4 2 0 2003-04 2004-05 2005-06 Year 2006-07 2007-08 4.31 4.05 3.47 3.85 3.94
Interpretation: From the table 7.4.1 & graph 7.4.1 we can find out that Inventory turnover ratio in all the year 2003-04 to 2007-08 is ranging nearly to 4 .The Inventory Turnover Ratio is almost similar in all the years that means company is maintaining the inventory very well. So we can say that company efficiency in producing and selling departments are doing excellent job. But company should concentrate more because higher ratio is also adversely affect the company.
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7.4.2
Debtors Turnover Ratio
Debtors turnover indicates the number of times debtors turnover each year. Generally, the higher the value of debtor?s turnover, the more efficient is the management of credit. Credit Sales Debtors Turnover Ratio = ------------------------Debtors Table-7.4.2 Year 200304 Credit Sales Debtors Ratio(Times) 4565 1429 3.19 200405 4607 1353 3.41 (RS. In lakhs) 200506 4559 1239 3.70 200607 5633 1527 3.69 200708 6245 1528 4.09
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Graph – 7.4.2
Debtors Turnover Ratio
5 4 Ratio 3 2 1 0 2003-04 2004-05 2005-06 Year 2006-07 2007-08 3.19 3.41 3.7 3.69 4.09
Interpretation : From the table 7.4.2 & graph 7.4.2 we can find out that The debtor turnover ratio is showing the icresing trend as year are passing . In 2003-04 it was 3.19 but it went down to 3.7 in 2005-06 and then in 2006-07 it again increased and reached to 3.69 and finally it reaches 4.09 in the present year. This indicates that credit management team?s efficiency of the company is increasing. The reason behind this is that the company is following effective and strict collection or credit policy.
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7.4.3
Total Assets Turnover Ratio
Some analyst likes to compute the total asset turnover in addition to or instead of net asset turnover. Sales Total Assets Turnover Ratio = --------------------------Total Assets Table-7.4.3 Year 200304 Sales Total Assets Ratio(Times) 4565 1914 2.39 200405 4607 1737 2.65 (RS. In lakhs) 200506 4559 1763 2.59 200607 5633 2023 2.78 200708 6245 1960 3.19
Graph – 7.4.3
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Total Assets Turnover Ratio
3.5 3 2.5 2 1.5 1 0.5 0 3.19 2.39 2.65 2.59 2.78
Ratio
2003-04
2004-05
2005-06 Year
2006-07
2007-08
Interpretation: From the table 7.4.3 & graph 7.4.3 we can find out that The ratio is
constantly increasing from their relatively previous year. Higher the ratio is good for any company. In 2003-04 it was 2.39 which reaches to 3.19 in the present year and this shows the efficiency of the company.
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7.4.4
Sales
Current Assets Turnover Ratio
Current Assets Turnover Ratio = --------------------------Current Assets
Table (RS. In lakhs) Year 200304
Sales
–
7.4.4
200405 4607 2636 1.75
200506 4559 2725 1.67
200607 5633 3119 1.81
200708 6245 3441 1.81
4565 2536 1.80
Current Assets Ratio(Times)
Graph -7.4.4
Current Assets Turnover Ratio
1.85 1.8 1.75 1.7 1.65 1.6 1.8 1.75 1.67 1.81 1.81
Ratio
2003-04
2004-05
2005-06 Year
2006-07
2007-08
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Interpretation: The current assets ratio is decreasing constantly in the first three years from 2003-04 to 2005-06 which further increase to 1.81 and remain same for last two years. This indicates after decreasing it again increasing trend. So company should try to maximize its sales as much as possible.
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DISPATCH DEPARTMENT
(A) ITS IMPORTANCE: The dispatch of product is the last but the most critical, phase of the process of the marketing. They arrange the supply of the product to consumer. PRODUCER
Selling agent in different zone Customers (B) FUNCTION: It is a subordinate part of sales department one sales officer cum excise officer, four assistants and 17 workers work in this department. Packing is important for proper transportation and
storage of goods. The brand name can be conveniently and attractively printed on the package. Being consumer good is must have attractive as well as safe. They package bags in polythene bags to protect the product from dust and damage. Afterwards according to its size and quality they package in cartoon. They dispatch all products to their department. Totally 25 depot are their in different part of the country.
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SALES DEPARTMENT
(A) ITS IMPORTANCE:
The main purpose of a business is to create the
customers. Marketing is the function of business concerned with creation of customers. Their approach is mainly “consumer oriented”.
Advertising is also one of the responsibilities of this department. In the modern world to stand in the market and compute with other firms they keep good touch with customers. The company’s products are covered by a one-year guarantee. Each depot is responsible for prompt after sales service to area falling under its jurisdiction.
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HUMAN RESEARCH DEPARTMENT
INTRODUCTION
Human resource is the prime mover of advancement and
development the strides that companies and indeed countries make is founded on the ability of leader ship to tape the production genius of the people. It is the people who make thing happened. They make the decisive difference. Human resource management refers to the managing of the human resource of the company. The base of the any company growth is wholly depends on human resource. The most crucial task in the organization is the management of its work force. The work of HR manager is recruitment of people, their maintenance, seeking them good working environment, remunering them, promoting them, and if needed leave them. Human resource department is responsible for any act of any employee or labour. Whether it is related to work or other then work. The department has to keep in touch with the employee and workers, the personnel department has to provide them training and development program periodically according to need arises. Training and development program is basically for the improvement in work style and the efficiency of the worker. It helps a lot to workers and employee for their overall development.
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The competition is also on pick customers also demanding quality product and they are ready to pay high prices for that contemporary organization. Face constant presume to enhance levels of service and productivity, whilst also improving levels of environment and the rapid pace of technology changed. Increase demand to improving business performance and securing competitive advantages. People increasingly recognized as the prime source of competitive advantage and the need for effective people management is there fore more important then ever before. The challenges facing today’s organization to provide indeed opportunity for HR function to demonstrate its ability to contribute to organizational performance at a strategic level.
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RECRUITMENT AND SELECTION (1)
MANPOWER RECRUITMENT CONSULTANT:
Manpower recruitment consultant are those people or firm who helps the organization in their recruitment process by providing manpower to them according to need exam: recruitment consultant, consultancy firm labour contractor. Safari industries use this manpower recruitment consultant for all type of designation exam: at top-level management, at middle level management and at the bottom level management. AT TOP LEVEL MANAGEMENT: The vacancy arises at top level management for the managerial post need high skilled, well qualified experienced candidates for that they contract manpower consultant and consultancy firm. But this type of consultancy and firm are well known across the country. They generally recruit this kind of post only. AT MIDDELE LEVEL MANAGEMENT: The vacancy arises at this level for the post of staff member, typist, computer operator, receptionist, accountant and middle level manager, supervisor etc. for this type of designation company use recruitment consultant at local level or domestic level.
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AT BOTTOM LEVEL MANAGEMENT: The vacancy arises at the bottom level management are workers, peons, security guards, foreman, technicians etc. normally labours and workers are needed in big number other then staff and manager. Company recruits labours through labour contractors / firms. (2) ADVERTISEMENT: Here advertisement is not relates to the products advertisement, it is relates to recruitment, newspaper, and magazines are used for giving advertisement for recruitment. Safari industries also use the newspaper for giving advertisement company uses the advertisement for both the level of management top level and middle. FOR TOP LEVEL MANAGEMENT: The vacancy arise at the top level management with designation like managerial post which requires more attention than any other this kinds of post are very important in the organization so, the candidate should also be highly intellectual. Company uses the big name of newspaper for the advertisement of managerial post exam: “ the times of India”, “the economic times”, “the Indian express”, “business standard” etc. became those people who are highly qualified and wants to be at this kind of high post in company usually read this types of news paper. 90
FOR MIDDDLE LEVEL MANAGEMENT: Under the head of middle level management the post arises are of staff members, telephone, operators, computer operators, supervisor etc. for the fulfillment of these types of post company uses the newspapers working of domestic level exam: Gujarat sanchar “sandesh”, bhasker”. Because these posts are not required higher qualification for the post manpower can be acquired from domestic level. (3) RECRUITMENT AGENCIES: Recruitment agencies are those agencies which working on a vast sale basically this type of agencies working for recruiting all kinds of job excluding bottom level position of labours and workers exam: “divyta
“naukri.com” “monster.com”, “job search.com” etc. they are running their websites mention usually candidates put their bio-data on the websites then these agencies inform them about related jobs. Now a day Safari also uses service of these agencies for the higher managerial position. (B) SCRUITINY OF BIO-DATA: In the scrutiny of bio-data the personnel manager check out all the application and their bio-data, which are received for particular job. At the initial stage the personal manager reject those application which can not fulfilled the requirement of the job. Exam: education, qualification, job
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experience, age etc. and the remaining application are selected will be called for on interview. (C) INTERVIEW: Generally, in all companies selected applicants will be call for an interview. Safari industries also take the initial interview. The type of an interview is decided on the bases of the designation of the vacant job then after the quantum of interview will be made by the management exam: top managerial post required more difficult interview. While the bottom level post required comparatively less tuff interview. The candidates are informed the date, time, and place of the interview in advance. The different kind of test are also taken accordingly the designation of the job. Exam: personality test, work test etc. (C) REFERANCE CHECK : In safari industries the management demands any strong reverence of any person with high profile. The person may be from the old company or any friend or relatives which is presently working in safari industries is accepted. (D) SELECTION : At the end if the candidate fulfilled all the requirement of the job for company then she/he will be selected for the job.
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In safari industries the interviews are taken by the selection committee and the selection authority also lies with them.
SELECTION COMMITTEE : 1) Selectioncommittee
for technical post :- 2 technical member,1
member form personal and administration department.
2) Selection
committee for administrative post :- 1 member from
personal and administration department, 1 or 2 member from concern division or department. The selection committee of safari selects the candidate on the bases of qualification which the job required. The emphasis will also given to various extra skills and abilities. (F) MEDICAL CHECKUP : In some companies after the selection of candidate He/She has to under go a primary medical check up. But in safari generally there is not any kind of medical checkup. If the situation demand then they will do. (F) INDUCTION : On joining the company the candidate will issue appointment letter. And he/she will issued identity card displaying his photograph and other information.
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After all this the newly selected candidate will introduced to his colleagues in the department as well as other people with whom he will be required to work and co ordinate.
EMPLOYEE POLICIES ? Fair Employment Opportunities
The company values and respects contraibution of the every employee irrespective his catogary. All employees will be heard the objectives of personnel policies set forth in the manual is to ensure that all employees will get fair and consistent treatment in metters related to performance appraisal decipline and grievance procedures.
Standerd of performance appraisal, deciplinary actions and grievancesprocedures have been laid down to ensure that all the employees get a fair hearing.
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TRAINING & DEVELOPMENT
In the continuously changing business environment, to sustain corporate growth, it is of utmost importance garner the human resources. Continuous training is required not only for the development of the employee?s career, but also to enable him to shoulder additional responsibility.
In order to enable employee to sattle down as a big and happy family, which will enable him to effective and maximum output, co-operate and co-ordinate with his colleagues, it is one of the prime responsibility of the management to lead and give proper direction with the aid of training and development for the all concerned.
There is no standerd uniform pattern of the traning which can be implemented by the company. The aim of the training will be to develop confidence, commitment and ability to think clearly in the right direction.
Both internal and external training programs and cources of various institutes and seminars are provided, however management reserves the right to decide on individual sponcership.
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TRANSFER
Service of employees is liable to be transferred from one department to another, from one unit/branch to another of the company and or any associate concerned on temporary or permenant besis anywhere in India.
Employees transfer from one region to another will be eligible to receive transfer allowance as under:
1. Air or Rail Fare (as per entitlement) for the employee and his family at actual. 2. All residential transfer for transporting households belongings and personal effects from residence to railway station or airport and vice versa at both at regions. 3. Packing and forwarding expenses at actual will be reimbursed subject to the estimate for the same with prior approval from Vice Precedent or General Manager. 4. Fright incurred in conveying household belongings and personal effects from one region to another at actual. 5. For the purpose of these rules family would mean spouse and dependent children and parents. 6. Employees using company?s car would be allowed for transfer of cars with prior approval.
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SWOT ANALYSIS
STRENGTH
The SAFARI INDUSTRIES (INDIA) LTD
is a company that
makes profit from the beginning. The success of the SAFARI INDUSTRIES (INDIA) LTD. Is due to certain strength. The area in which company has done their best has been covered in successive paragraph. The success of the company goods to its strength due to which company is able to reach this place. The main strength of SAFARI INDUSTRIES (INDIA) LTD is their HR policy. Their behaviors with employees are very friendly. In SAFARI
INDUSTRIES (INDIA) LTD the structure of organization is flat. Any worker of staff can talk with management directly.
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The second thing is important their behavior toward the employee. They give them facilities the company ids having facilities like canteen, telephone, co-operative credit society, transport, loans, and advance etc. more over they give facilities like P.F. gratuity, ESI etc. The company subscribes magazines
for employees like arbiter, human capital, labour law reporter, Baroda management association etc. for the welfare and
knowledge of employees. In addition they arrange performance appraisal programmed for increase in performance. To improve the quality of the company they arrange suggestion programmed and in this programmed the employee who gives good suggestion is appraised by award. Thirdly, the company having “QUALITY CONTROL METHOD ” at each and every stage of production. If any defect at any stage is noticed the material is repossessed. Through the whole stage or if it is unrepairable it is scrapped. In SAFARI INDUSTRIES (INDIA) LTD there is no compromised with quality.
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Fourthly the company is having educated and skilled manpower. Through which company is able to deal with any future problem they are also able to understand the problems of company and market These are the strength of the company, which I was noticed during my training. In last the company has to think about information technology and multimedia world because today, those who launch new companies first day launch their website and then start their company. So the management of SAFARI INDUSTRIES (INDIA) LTD must have to think about the website for the company.
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WEAKNESSES
If there is strength of the company, there is weakness of the company also. The SAFARI INDUSTRIES (INDIA) LTD have some weaknesses but I think it is of short time and they are trading to remove this weaknesses. Firstly, the technology used by the company is old because the modern world is using latest technology and latest machinery available in the market. The technology today used by the competitors is more productive and competitive then SAFARI INDUSTRIES (INDIA) LTD. Today the technology in the market is not laboure oriented. It is almost technology oriented. So they must go for the latest technology available in the market. Secondly, in the frame-bending department there is almost every work is done by hand held machines. So they have to go for latest technology available in the market.
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There is still low expenditure on raw material. Because they have to compete with companies like VIP and Samsonite is one of the multinational companies in luggage industry. So they must have to think creative then their competitors. In addition to this they must have to think about expansion of the company because their competitors are dealing with soft luggage and they are dealing in only in moulded luggage.
OPPORTUNITY
Since the company has the system set they can now think of constantly improving their product and bringing in varieties. They can also carryout a market survey and see what are the market trends and think of new innovations to make product more salable.
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THREATS There are other popular brand names like Aristocrat, VIP, and so on. New entrepreneurs are trying to enter the market Secondly with the open door policy of govt of India, the foreign manufacturers are likely to enter the market and competent with the existing firms.
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2.4
Research Methodology
2.4.1 Data collection There are two kinds of the methods to collect the data. That are primary data collection and secondary data collection. For the study purpose I have used the secondary data collection because for the study purpose I have used company?s annual report?s for 2004-05 to 2007-08 data were also collected through the internet and other prepared reports which company provides for the guidance and also very important source for my secondary data is the staff members who provide me the information whenever required and constantly guides during my summer projects. 2.4.2 Sources of data The main source of data for this study company profile, old report, company?s annual report, internet and private publication and this sources fall under the category of secondary data . Any data which has been gathered earlier for some other purpose are secondary data . In contrast, those data which are collected at first hand either by researcher or by someone else especially for the study are known as primary data.
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As I am doing project on working capital management and ratio analysis, the information collected must be from secondary data because primary data is not possible.
2.4.3 Sample design In this study sample is not used. Because the study is done under the topic working capital management, Where information is usually collected through personal contacts sample generally used where questionnaire is prepared. Therefore there is no requirement of sample for this project. 2.4.4 Techniques of data collection
Direct interview method is used to collect data for this study. Direct personnel interview is conducted with external guide and other important personnel in the organization. Its study is mainly focused on financial performance Safari Industries (India) Ltd. There where no need to collect information using questionnaires. All the data collected from companies according to records.
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RESEARCH METHODOLOGY
1. TITLE OF THE STUDY: EMPLOYEE’S WELFARE FACILITIES
2. CENTRE
: Safari Industries (India) Ltd.
3. CATEGORY
: Questionnaire and Interview based
4. NEED FOR STUDY : a) To know company policies in providing facilities or services to the employees; b) Whether employees are satisfied with these and after receiving. Do employees work efficiently or not; c) How management views about their employees; statutory in d) How many facilities are statutory and non the company.
Before joining the professional course i.e.IRPM Course, the researcher had been acquainted with various difficulties in work and faces various problems of manufacturing employees or workers. The researcher is still acquainted today with the life style and standard of life of employees and workers in their day to day life and at work situations. The researcher did not have through knowledge regarding welfare facilities
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and what Act prescribed for labour welfare before the research was undertaken.
Now, the researcher is aware about the employees work, their working life, their requirements and their problems in the company. The employees are believed in the good standard of life, high income and secured life both his and his family. Sometimes, they are frustrated and feel stress with their work and working style. They have high pay scale but no time and not have facilities to enjoy in life. By this topic I can know the what is statutory facilities and non-statutory facilities, it is on the hands of the management to give welfare facilities and employees or workers have raise their problems and need for facilities in the company so that they can received the welfare facilities.
During the IRPM Professional Training the researcher have acquired better knowledge and understanding regarding the labour legislation and labour welfare facilities. Through the theoretical knowledge the researcher came to know the need and significance of the welfare facilities for the employees in the company. The knowledge acquired regarding the labour welfare field, the innate interest and a fair deal of motivation enabled the researcher to conduct a study on the life style of the employees regarding the perception utilization and suggestion aspects which would give a wider perspective for the need and importance of the study.
However, one who is closely acquainted with the industrial environment in India would realize that many of the employees make it eyewash. In India, labour welfare considered to be a part of managing people at
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work, i.e. Human Resource Management. The final conclusion of the study would be more helpful for the organization, to become aware of advantages and loop holes which may ultimately help the modifications and better implementations of the policies in a wider perspective.
5. OBJECTIVES : provided by HR.
To study the present scenario of facilities
? To identify the problems of employees. ? To analyze the HR views about the employees, i.e. their work life a family/personal life. ? To suggest measures in facilities provided to the employees by the Management. ? To study the awareness of the employees for their facilities and what Act mentioned about the employees facilities. ? To study the utilization of the welfare facilities among the employees.
BROAD OBJECTIVE OF THE STUDY:
To study of utilization of both statutory and non-statutory welfare facilities provided by the organization for the well being and betterment of workmen and it fosters the productivity and production.
SCOPE OF THE STUDY:
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In fact, the scope in the field of labour welfare is very wide where greater insight is needed to study each and every aspect. The scope of the study is exposed and explored in the field of manufacturing company, the study aims at probing the welfare facilities, which are commiserating the hardships of the employees work in the company.
Efficiency of the work is directly and indirectly linked with the working conditions, organization culture and environment under which they are required to work. Even the most sincere employee can not contribute his best, if he is uncomfortable and unsatisfied. In a company working conditions and its atmosphere of the workforce affect the productivity. The scope of the present study, however, is not limited to the facilities within near the undertaking but other non-statutory facilities are taken in to consideration of the scope of labour welfare.
If the company provides good and fair welfare facilities according to the requirements of the employees then the management motivated indirectly employees by providing welfare facilities. By these employees feel secure and their morale and standard of life also go high.
It helps to employees to work efficiently and effectively at the same time the management also know the responsibility of their to secure life of the employee and his family also. By this the management also can taken work from the employees to achieve goal of the organization.
RESEARCH DESIGN:
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To study the utilization and perception of the employees welfare facilities at Safari Industries, towards welfare facilities in a departments the research her considered the importance of both statutory and non-statutory facilities to gain deeper insight in to the implementation policy of the company on one side and utilization, perception and suggestions components of the respondents on the other side. That how company provides welfare facilities and what types of facilities are provided to the employees.
UNIVERSE OF THE STUDY:
For the purpose of the research study the researcher had selected Safari Industries . The total strength of this company is 2500 the researcher decided to cover the 50 respondents for the research study.
SAMPLING TECHNIQUE:
For the purpose of the research study the researcher applied Simple Random Sampling to acquire the size from the sample frame of 50 respondents.
TOOLS FOR DATA COLLECTION:
The researcher has utilized “Interview Schedule and Questioner Format” as a tool for
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data collection keeping in minds all the components of the research study. -how to do it, -why to do it, -what type of questions taken and t o whom to ask etc, -observation at work place, -try to know the employees problems and there demands. Observational visits in the departments for the study. Informal talk with Safari Industries HR manager, HR officer and employees also enabled, which give me a clear picture of existing welfare facilities and other aspects for the development deeper insight in to the research study. ANALYSIS OF DATA COLLECTION
(A)
Persoanl Information of Respondents
Table -1 Age Group Of The Respondents
Age Group 25 - 30 30 - 40 40 - 50 50 - 60
Frequency Percentage 3 17 20 10 6% 34% 40% 20%
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TOTAL
50 100%
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The above table shows that there are 3 respondents, like that there are respondents from the 50 respondents. i.e. there are 6% respondents from 100% in 25-30 year age group, & 20%are in 50-60 age group.
Table - 2
Sex Of The Respondents
Sex Male Female TOTAL
Frequency 48 2 50
Percentage 96% 4% 100%
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The above table shows that there are 45 respondents from 50 are male & having 90% while there are 5 respondents from 50 who are female & having 10% from 100%. Table -3 Departments of Respondents
Materials
Finance
Personnel HR
15
15
10
10
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The above table shows that I collected data from the materials, finance, personal, & HR Departments. Table -4 Facilities Provided By The Company
There are many facilities proving by the company like Canteen facilities Medical facilities Lunch- Room facilities Rest Room facilities Loans facilities Transportation faqcilities Taking decisions facilities.
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Table -5
Utilisation Of Welfare Facilities
Opinion Yes No TOTAL
Frequency 47 3 50
Percentage 94% 6% 100%
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Above table shows that there are 47 respondents from 50 who are utilizing the welfare facility & there are 3 respondents from 50 who are not utilizing the welfare facility. Table – 6 Facilities Meet Your Requirements
Opinion Yes No More than TOTAL
Frequency 45
Percentage 90%
5
10%
50 100%
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Above table shows that there are 45 respondents who are believe that facilities satisfying their requirements, 5 respondents are believe that the facilities are more than their requirements.
Table -7
Utilisation Of Recreational Facility
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Opinion Yes No Not Answer TOTAL
Frequency Percentage 32 15 3 64% 30% 6%
50 100%
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Above table shows that there are 32 respondents utilizing it, 15 respondents are not utilizing it & 3 respondents are not giving any answer for this facility.
Table -8
Satisfied With Recreational Facility
Opinion (a) Highly satisfied (b) Somewhat satisfied ( C) Satisfied (d) Dissatisfied (e) Highly Satisfied TOTAL
Frequency Percentage 10 12 24 2 2 20% 24% 48% 4% 4%
50 100%
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Above table shows that there are 10 respondents from 50 are highly satisfied with the Recreational facility & 2 respondents from 50 are dissatisfied from the Recreational facility.
Table 9
Medical Facilities
satified with the medical facilities or not
or not?
Opinion
Frequency Percentage
120
Yes No TOTAL
48 2 50
96% 4% 100
Table 10
Satisfy with the Housing Facilities
Opinion Yes No Somewhat No Answer TOTAL
Frequency Percentage 48 96%
1 1 50
2% 2% 100%
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Above table shows that 48 respondents from 50 are satisfy 1 is somewhat satisfy & 1 is not giving any answer.
Table 11
Canteen Facilities
Opinion Highly Satisfed Somewhat Satisfied Satisfied Dissatisfied Highly Dissatisfied TOTAL
Frequency Percentage 20 13 17 40% 26% 34%
50
100
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Above table shows that 20 respondents 50 are highly satisfied with facility & 17 are satisfied with the facility & no one is dissatisfied with the facility.
Table -
Satified with Transportation
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12
Facilities
Opinion Yes No TOTAL
Frequency
Percentage 48 96% 2 50 4% 100
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Above table shows that there are 48 respondents from 50 who are satisfying with the Transport facility & 2 from 50 are not satisfying with the facility.
Table 13
Participation In Management Decisions
no
Opinion Yes No No Answer TOTAL
Frequency 20 23 7
Percentage 40% 46% 14%
50 100%
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Above table shows that 20 respondents from are participating in Management Decisions, 23 are not participating in it & 7 are not giving any answer for it.
Table 14
Management Consider Employees Decisions
Opinion Yes No Somewhat No Answer TOTAL
Frequency Percentage 10 25 7 8 50
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20% 50% 14% 16% 100%
Above table shows that 10 respondents from 50 are believe that Management considering their decisions, 25 respondents are believe that mgt. not considering their decisions & respondents from 50 giving no answer regarding it i.e. 16% are not attempting question.
FINDINGS 1)Firstly, there are different age group who responding for the questioner. There are 6% employees, who are under 25 - 30 yrs,
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? 20% employees, who are under 50 - 60 yrs, ? 34% employees are from 30 – 40 yrs, ? 40% employees are from 40 – 50 yrs. 2) The respondents where, there are 45 i.e. 90% are males and 5 i.e. 10% are females who give answers for welfare facilities.
3)
There 10 employees who are working in company less than 10 years, ? 15 employees who are complete their service period between 10 to 20 years, ? 17 employees who are complete their service period between 20 to 30 years, ? And lastly 8 employees who are working in the company for more than 30 years but less than 40 years.
4) finance,
I collected questioners and received answers from material, personnel and HR department.
5)
There are many facilities provided to the employees i.e. both Statutory and Non- Statutory Welfare Facilities. This includes transportation, medical, lunch room, canteen, rest room, recreational, housing, township, co-operative societies, etc.
6)
There are 94% employees who are utilized of welfare facilities and 6% of employees who are not fully utilized of welfare facilities. Welfare facilities are satisfying employee’s requirements, and satisfy their needs. Here, 10% who believe that the facilities are more than there requirements provided by the company to them,
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7)
where 90% employees who said that yes the facilities are satisfy their requirements. 8) Here, 64% employees utilizing the recreational facilities, 30% employees said that they are not regularly utilizing and 6% employees have no opinion regarding the recreational facilities.
9)
In SAFARI UNIT, 96% employees have opinion that they are satisfied with the medical facilities & only 4% employees are not satisfied with the medical facilities provided by the company.
10) Here, 40% employees are highly satisfied with the canteen facility, 26% employees are somewhat satisfied and 34% employees are satisfied with the canteen facility.
11) There are 96% employees are satisfied with the transportation facility and 4% are not satisfied with the facility.
12) There are 40% employees who are participating in the management decisions, 46% employees are not taking participate in mgt.decisions, while there are 14% employees who are not give any answer regarding this question.
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13) There are 20% employees who believe that management considering their decisions,50% believe that management not consider their answers,14% employees said that there are somewhat answers are consider, while 16% employees are not give any answer regarding management consider their decisions or not.
SUGGESSTIONS
? Canteen should be in the administrative building place only and not away from it. ? The Lunch Room facility should be different from the conservancy arrangements. ? There must be Recreational facilities in the company premises so that it can give them motivation towards their work. ? Try to involve employees in management decisions by using suggestions scheme effectively and reduce the complaints of the employees related to it. ? Mostly employees are not aware about the welfare facilities i.e. both statutory and non-statutory. Though company provides very well facilities to the employees. ? Management has to give chance to the employees in participating the company’s decisions.
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? If possible, good and the decisions not create loss to the company then management has to consider / use the employee’s decisions. ? Management has to encourage employees for their career growth by giving opportunities to higher education employee and give facility to learn more during service period. ? Try to find out why some employees are not satisfied with canteen facility and solve the problems by taking necessary actions. ? There are not more safety measures for administrative department. ? All such facilities can help in the organizationto motivate the employee can also get the best quality of the production and optimum out of the HR.
CONCLUSION
From this study, I could understand the importance of the welfare facilities both Statutory & Non-Statutory. Safari Industries (India) Ltd. more than the Statutory Facilities i.e. stated in the Factory Act, 1948. And the employees are fully satisfying with the facilities provided by the management. So, HR manager’s role is to identify the employee’s needs and give them facilities which are required by them.
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Like this, providing Welfare Facilities increases the productivity of the company, image of the company, maintain relations between the management & the employees, and reduces the expenses, retaining the employees in the company.
Thus, Welfare Facilities are important part of the company to maintain workforce & efficiency of the work. In Safari Industries (India) Ltd., they are providing all essential facilities to the employees.
And mostly all the employees are satisfied with the Welfare Facilities provided by the management.
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doc_449970946.docx
A safari is an overland journey, usually a trip by tourists to Africa. Traditionally, the term is used for a big-game hunt, but today the term often refers to a trip taken not for the purposes of hunting, but to observe and photograph animals and other wildlife.
A SUMMER TRAINING REPORT ON SAFARI INDUSTRIES (INDIA) LTD.
INDEX
1. Scope 2. Objective 3. Executive Summery 4. Industry Profile 5. Company Profile 6. Organisation overview 7. Departmental Study 8. Research Work 9. SWOT Analysis 10. Apendix
Bibliography
1
SCOPE
? It provides an exposure to the industrial environment, which can be very helpful in future. ? It helps to understand the psychology of the workers, their habits and their approach to work. ? It helps to study supervisor-worker relationship, which bears a great importence of field along with solving different practically faced problems. ? It develops the factor of discipline in a person. ? It helps for involving and co-operation efforts with co-leagues of different departments to achieve the goal. ? Job responsibilities in various departments is understood.
2
Objectives
As being the student of M.B.A. it is necessary to have practical knowledge and for that practical training is very important. Here are some main objectives of the study. ? To get practical knowledge. ? To get aware of industrial environment. ? To get experience of how to deal with our colleuge and also with higher level management ? To get the knowledge of different departments of the company. ? To be aware of different kind of responsibilities that manager has to perform.
3
?
4
Industry Profile
The Indian market size for luggage items such as travel bags, suitcases, carry-on bags, carriers, handbags, leather bags, luggage bags, back-packs, hiking carry bags and tote bags is valued at Rs 10 bn annually with luggage manufacturers, exporters and suppliers in the organized sector claiming over 40% of the market. Exports of bags and luggage bags has been growing at the rate of 12% but could go even up to 20% annually. Even though the travel bags and luggage market for hard luggage and soft luggage put together in India is largely dis-organized. VIP Industries Limited will set up a centre in Hong Kong to tap the $750-million luggage market in Southeast Asia and the Asia-Pacific region.
Indian luggage has made way in the Global market and has ample competitors and on-going competition in the Domestic market itself. The Indian luggage market comprises of soft luggage, including suitcases, briefcases, trolley cases, vanity cases, totes and garment bags made available in a price range from Rs280 -Rs6095 under the brand 'VIP. Blow Plast is one of the pioneer largely involved in the promotions of soft and hard luggage. The luggage items marketed include plastic moulded luggage and soft luggage branded as VIP and Sky bags.
5
Universal Luggage Mfg Co Ltd, with its Aristocrat, Oscar and Champion brands, is another major player of the Domestic market.
Today, most luggage and travel bags companies in India are following international trends and designs closely because they are aware that the buyer is becoming more conscious of design and exclusive patterns looking luggage/baggage. With more and more people traveling manufacturers, exporters and suppliers of handbags, bags, luggage and travel accessories ensure that each and every luggage item are given away with ample safety features, theft-proof, sturdy and strong. Many hard and soft suitcases, carry-on, handbag models are made available with combination locks. Other durable and useful attributes includes organized interiors with separate compartments for carrying CDs, floppies, shaving bags, etc. The entire sets of soft and hard luggage and handbags are now available in more vibrant colors like -bright reds, green, blues and burgundy, floral prints etc other than the usual standard greys, blacks and browns.
The Indian luggage industry is on a new growth curve as consumers become increasingly conscious, not just of the products' functionality but also the aesthetics.
6
Along with the travel and tourism industry, it could well be boom time for the luggage industry too. With the economy picking up and the travel industry witnessing a steady growth in both inbound and outbound Travel, Industry players expect a 25-30 per cent growth in luggage Sales in year 2008. The Indian total luggage market is approximately more than RS 2000 crore annually, Of which 40 percent comes under the unbranded unorganized sector. V.I.P has a lion's share of 75 %, Safari has 14-15 percent and samsonite has remaining 9-10 percent. samsonite has positioned itself a specialist targeting the premium end of the market . Samsonite arrived in India in 1997 and ha since captured 60 percent of the premium segment, with sale growing at 40percent per year. The economy segment witnessing a negative growth, while sales in the mid-segment remained segment. the premium segment, with sales growing at 40 per cent per year. The economy segment witnessing a negative growth, while sales in the midsegment.the premium segment, however, this consists of luggage in the prince bracket of RS 2,500 and above, witnessed reasonable growth. However, the situation seems to be changing now. The India luggage Industry is on the verge of taking off on a new growth curve as travel starts becoming
7
increasingly simultaneously. Frequent travel is
demanding
and
sophisticated
making
travelers
look
for
greater
convenience, varied kind of luggage and travel aids on the different kinds and duration of travels they undertake.
8
? Luggage Trends
The grow seems to be clearly taking place in the premium segment i.e. Luggage?s priced higher then rs.1000 ,which is expected to grow by Almost 30 per cent in the year 2005 and consumers in this segment Are looking for more and more variety
Luggage is no longer a functional product, which people buy once In 10-15years consumers are beginning to look at as fashion object and are even buying luggage items to coordinate with their clothes Shape an colours have definitely started paying an important role in Luggage buying god looking luggage in attractive colours has started Playing a major part in the purchase decision. Earlier a lot of luggage Bought was during wedding this is still the case but slowly there is a Shift towards need based buying as in just before a business trip for Vacation.
Though India has traditionally been hard luggage market, this preference for Variety and aesthetics has led to a 25-30 per cent growth in the soft Luggage segment. On the country, the hand luggage segment, according experts, has de –grown by
9
10-15 per cent. because, of the customers preference for variety and aesthetics in luggage buying pattern.
Frequency in travel, coupled with improvement in travel conditions such as better Airports, higher foreign exchange allotments and international credit cards has made Indians more confident travelers. This, along with the need for convenience and comfort, has made travelers take to soft luggage in a big way. form just being consider a Durable, luggage is now increasingly seen as a travel aid. From a onebox-for-all-requirement, it is moving on to a „repertoire needfulfilling product?. Consumers are going in more for vertical uprights instead of suitcases While hard briefcases are out, leather and portfolios are in a big way similarly back- packs a segment which has always been identified with hikers ,have also caught on in a big way among frequents travelers.
On the other hand, one study conducted by the samsonite reveals that the Moulded and the soft luggage markets actually have a 50-50 share. Luggage Manufacturers have lately been
10
trying to offer lightweight solutions in the hand luggage segment also, and there for, expect the to start growing.
11
Company Profile
Safari was incorporated as a company way back in 1974 with a small capital Of RS.25000\- as a partnership firm at that point of time with a sales turnover of rs.5 lakhs per annum. Safari industries (India) ltd which was incorporated on 6th July 1980 took over the undertaking and business of safari industries with the effect from 16th November 1980. fully paid up equity shares of the company were issued in total consideration for the takeover. It was promoted by Sumithchandra H Mehta and was converted into a public Limited company Today the company enjoys a market share of around 14-15 per cent with a sales Turnover crossing more than hundred times and total capital employed is Touching to the tune of rs.20 crores from its inception, virtually making Growing at a breath taking rate.
Name : Address:
SAFARI INDUSTRIES (INDIA) LTD 1701/2200 GIDC estate Halol Dis: pms Gujarat.
12
pin: 389350
Size of company: From of the company: Plant for factory side: Halol
large scale industries public ltd company 1701/2200 GIDC estates pin: 389350
Dis: pms Gujarat.
Registered office:
SAFARI INDUSTRIES (INDIA) LTD
7,jai laxami indul premises Co-op society ltd Khetani textile compound Kurla (west) Mumbai. 400070 Ancillary units: 1. Oxford industries
2109/01 GIDC Halol-389350 Dis. 2. Panchmahal Balaji enterprise h.p.no 520
13
B|H GIDC colony Halol 389350 Dis. Panchmahal
Sales unit:
1.
Safari sales pvt ltd
7,jai laxami indul premises Co-op society ltd, Khetani textile compound, Kurla, (west) Mumbai. 400070 2. Safari sales pvt ltd Ankur chambers, 13\H Tagore hall, Opp Hasibhai chambers, Ellishbridge, Ahmedabad -380006. Banker?s: Central Bank of India
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Auditors : Solicitors: Share department:
Banshi s. Mehta & co. –C.A. Dhru & co. Adroit corporate service pvt ltd. 19,jafarabhoy industrial estate Makwana road Narol naka Andheri (east) Mumbai – 400070
Listing of shaeres:
at Bombay stock exchange Mumbai-400070
Company secretary:
S.K.Somani
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Board of directors
1. SHRI AMUL MEHTA (M.D. & CHAIRMAN) 2. SHRI YOGENDRA P. TRIVEDI 3. SHRI JAYRAMDASH S. PATEL 4. SHRI DHANANJAY M. PAREKH 5. SHRI MULCHAND K. SHETH 6. SHRI YOGESH S, MEHTA 7. SHRI DR. JAGDISH N. SHETH (w.e.f. 30/04/2007 aditional director) 8. SHRI NIRAJ GOYAL (w.e.f. 1/06/2007 aditional director) 9. SHRI SHAILESH J. MEHTA (w.e.f. 1/06/2007)
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MAIN PRODUCTS
The
luggage
industries
comprise
of
HARD
LUGGAGE
and
MOULDED LUGGAGE. The total turn over of luggage industries is Rs 12 billion.
SAFARI INDUSTRIES
Production of two types: 1-Hard luggage
2-Moulded luggage
Company manufactures two types of luggage bags.
1-Briefcase 1-Suitcase The company has varieties of bags in both briefcase and suitcase for e.g. a large size bags, medium size, small size. The size of the bags is based on inches.
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The company has more than 60 products comprising of moulded luggage and hard luggage segment according to customers preference.
The company has its own 20sales depots across the company and more than 2000 dealer?s outlets. The company?s sales force comprises of approximately 200 personnel?s in
market development and sales administration.
The company?s turn over is Rs 63 core per year with the market sale of 20% and sales volume of more than 13 lacks bags per year Company spends 5% of it sales turn over towards advertising and sales promotion. The company offers more than 60 product comprising of herd luggage and soft luggage segment made of HDPE, ABS, NYLON and VINYL right from small “VANITY CASE” to 30”EXTAR LARGE bags of different size. The offer Maximum Retail Prices are starts from 500/- to 4000/-.
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? ROW MATERIAL: 1: P.P. (Poly Propylene) 2:H.D.P.E. (High Density Poly ethylene) 3: L.D.P.E. (Low Density Poly ethylene) 4
.P.C.P (Poly Propylene co-polymer) ? SOURCE OF RAW MATERIEL 1:Relience (hajira) 2: Haldia 3upand 4: GE plastic 5: ABS Company ? COMPITITORS 1: “VIP” and “BLOW PLAST” –A brand of Parimal group 2: “ SAMSONITE” – A Brand of U.S.A. based SAMSONITE Corporation 3: UNIVERSAL LAGGAGE19
4: ARISTOCRATE
HISTORY OF THE ORGANISATION
Safari industries were foundered as a partnership firm in 1974 at Plot No 1701/2200, GIDC Estate Halol. Dis panchmahal, Gujarat. With an initial investment of Rs 0.15
million as a small scale unit to manufacture plastic mouled luggage by the chairman of the company Shree Sumatichandra H .Mehta he hade practically no financial resources to begin with . But this was more than compensated with a fund of goodwill, strong determination and resourceful and dedicated approach toward the task at hand He just did not enough capital to invest in specialized technology sophisticated moulds. But components required for manufacture of luggage where brought from unit to company specification and quality standers Soon the company launched fiberglass briefcase and
suitcase in the market success of the company can be attributed to a great extent our first lesson was how to stay close to the customers. The answer is to the insistence of quality control and innovation.
20
In1974 when company entered plastic moulded luggage Market Company did not have any access top the market that was dominated by well-established brand. The company encountered several difficulties In gating a foothold, let alone a share of market in the initial years. It was uphill task to fight competition with a strong brand image and well-established countrywide distribution network the brand name “VIP” of parimal group has already became a generic name for plastic mould luggage.
The constitution of the company was again changed to plastic ltd company on 1/01/1986 was named as SAFARI INDUSTRIES (INDIA) LTD. Competitors used on technique in forcing the dealers not to deal in SIIL luggage so that the brand name could not be established we won dealers confidence with quality products which where grossly neglected by competitors product differentiation established SAFARI as a brand. Today SAFARI is a brand reputed for quality with a health 20% market share successful products innovation and effective market segmentation has catapulted SAFARI in to highly visible brand. The company now seeks to diversify and performed similarly newer field.
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MISSION
Safari
is
committed
to
produce
quality
consumer
goods
identifying customers needs and wants, applying higher level of skill, using production method and TOTAL QUALITY MANAGEMENT (TQM) technique that result in to lowest cost. The production process is constantly reviewed for improvement in methods, adopting innovation and up gradation in technology to improve productivity. Cost assurance through value engineering and elimination of wastage to improve productivity and ensuring quality standard to maximize customer satisfaction. Only then
the company achieve its objective of “Leadership through quality”.
22
VISION “Being good isn’t good anymore, we must be better” With the travel and tourism industry becoming increasing day by day. There is tremendous scope for such companies to innovate and develop keeping constant eye on quality control. Today travel and tourism industry getting more and more incentives from the government agencies and with the grooving competition among the tour operators. The volume of traveler is likely to increase. This will result in to influx of tourist there by directly increasing the demands for bags. The present generation wants lighter baggages, which should be compact, and pilferage proof. Thus this will increase the possibility of more innovation leading to better affordable quality luggage.
23
ACHIEVEMENT The best value of the given product is the product itself. The joy of buying embody the passion and commitment that will make the company a leader in its field. Successful product innovation and effective segmentation have catapulated Safari into highly visible brand. The company now seeks to diversify and perform similarly newer fields. At present the company covers 20% of market share of the industry for having best quality product.
24
VALUES The company has won the dealers? confidence with quality products, prompt aftersale service and one year gurrantee which were grossly neglected by competitors. Product differentiation established Safari as a brand. The company is reputed for its values and also for the quality of the product.
25
? “The Total Quality Management Safari” At safari, They have the stringent quality norms for the product and services which is evident from the fact that in the staff and managerial cadre, we have 20% employees in the quality assurance department, out of the total strength whose job is to monitor, educate and the people for the quality management The quality of all input materials are checked piece to product is also checked piece to piece customers complaints and expectations. In order to achieve the perfection in the quality management, we have systems, norms in form of: standard operating procedure,” (sops) and standard testing etc. whereby we insure the quality of the product. As far as the modern tools of achieving the total quality management are concerned, recently in the new millennium, we have begun the process in a humble way by introducing quality circles, kaizen, and suggestion scheme. the process / consultation is also in pipeline for getting ISO 9000 certification and to introduce five „S? programme. In order to achieve the ultimate objective of total quality management, we have a long way to go and we are well aware it needs a drastic change in the thinking of people, system and
26
piece
before it goes for use and likewise before dispatch , the final basis on the decided parameters which keeps on adding up- depending on the
tools which will yield results in from up better quality ,batter productivity, better employees and customer relationship and better overall up keepment,- which in turn will reward us in form of customer delightful satisfaction quality, services and expectations in terms of product, and in employees
satisfaction as well as unorganized sector and also from the new players in the market. A part that , over all recessionary trend, dumping of cheaper imported goods , natural calamities faced by the country. All put to gather has resulted in 25% down trend in overall sales making it all the more imperative to go for TQM .
In order to combat that we had to reduce prices our products without affecting product – quality and had to down size the employee strength also. In every nook corner, we have relooked and redefined the things to cut the cost and reducing the wastage and rework and to further improve our quality standard as for which we got a good support from all our employees . As a company , now our concentration is to improve , not only our customer loyalty and brand image , but also to improve our quality of human resource working with us to achieve our concentration is to improve , not only our customer loyalty and brand image, but also to improve our
27
quality of human resource working with us to achieve our ultimate objective of “total quality management” we all know it is not easy to change the mind set and attitude and aptitude of the people and to bring than out from their wrong conceived beliefs , perceptions and expectations. This needs a continuous persuasion, motivation counseling, and support to make people come out or near compartmental making and state caring for the organization than that of self or the department. We strongly believe that the employee?s salary is not paid the company, but it is paid by the existence. As a matter of fact , now our endeavors is towards introducing different tools for quality management and simultaneously changing employees mind set for which we have started the following activities: customer because if we do not have customer to our product, we cannot think of our
1) Departmental Meetings 2) Suggestion Scheme 3) Kaizan 4) Quality Circle 5) J I T Systems 6) Workers Education &Training
28
organization structure
Chairman and Managing Director
SR Vice President operation
SR Manager Personal Manager
`
Asst. Manager P&A
General Manager Manufacturing
Manager Finished Goods Storage
Asst. Manager Purchase
Incharge PLG
Manager IMD
Manager Q.A
Manager Production
Manager (F/B)
Incharge ANOD&PC
Asst. Manager Q.A
Manager Maintenance
29
LIST OF DIFFERENT DEPARTMENT ? PRODUCTION DEPARTMENT ? MOULDING DEPARTMENT ? FRAMEBENDING DEPARTMENT ? QUALITY CONTROL DEPARTMENT ? ASSEMBLY DEPARTMENT ? SAFARI PRESS METAL CO.LTD. ? SECURITY DEPARTMENT ? STORE DEPARTMENT ? FINANCE DEPARTMENT ? DESPATCH DEPARTMENT ? SALES DEPARTMENT ? HUMAN RESOURCE DEPARTMENT
30
DEPARTMENTAL STUDY Production Department ? Production Process 1) From raw material to top-bottom shell First of all, they are making top bottom shell of the moulded bag. For this they Require machine which called injection moulbing machine. which moulds granules in to require machine which called injection moulded shell they require raw material which they are getting from reliance and IPCL . the bag that they are making from this material is with Frame and without frame . For this different types of bags they require different material e.g. for bags with required is PPCC, B030, IN308, M312, M304 and for without frame they require HDP Reliance 6.0007 this material is heavy than the above material material. For the purpose of making top bottom shell, they require granules be of different colors. So for making this, required color they are processed in mixing machine with required color and makes it of same color. After this process they are put this raw material in injections moulding machine. The machines mould the material in to the shape of bag and this shape called top-bottom shell.
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because
for
bag
without
frame
require
heavy
2)
Locking components
The locking components for safari industries made by one independent company called safari Press Metal Pvt Ltd. To make a lock they are using the best iron metal. In making or locking component the process used is first of all they require iron plate. They cut it according to size of the lock, and then this lock plate is looks like raw lock plate, after this process it looks like a front model of the lock. Then there is a process called lever fitting process. In this process lever is fitted in the lock. There is only one lever the lock. After this process it goes riveting, for fitting of screws. And it last it goes for metaling or for powder coating. 3) Framing department The framing department of company makes frame of the bag from aluminum section. They are getting it from the Gujarat aluminum company. To make frame of the bag they require 2 sizes of this section which is 21” and 24” out of this according to sizes of bags they are making frames for the bag. The aluminum section is a straight road. They cut it in prop sizes. First they make the square for the top bottom shell. After powder coating is completed, it is sent to the “quality
32
inspection”. In this stage it is checked, is there any scratches, wholes, finishing etc.
4) Final making bags Practically this is last stage fo making bags. In this process the whole material which is one by one, made in plants is collected here. Firstly fitting of top bottom shell, top bottom shell are fitted using hinges. Hinges are fitted with screws then if with the frame, frame is fitted on it. And I f without frame it is passed for the fitting of locking components on it. And if without frame it is passed for the fitting of locking components on it. There are generally 3 locks on the bag on is in the middle and other 2 on the left and right side. After there is a place between 2 lock on that place handle is fitted. And it is passed for the quality control. Here the bag is checked for locking component and frame fitting. After this the whole process, the bag is ready for use.
5)
Finalization In finalization this bag is processed for checking, the whole bag is checked over here and warranty card, stickers and keys
33
of the bag is checked. In this checking process firms, lock, and warranty cards and stickers all these things are checked once again. And in this last these bags are going for the packing send in to the dispatch department for dispatching it to the Safari Sales Pvt Ltd
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Department
Number machines
of Capacity
1. injection Moulding
14
injection More than 1,60,000 bags per month
moulding machines and vacuum
forming machine
2. bending
frame 8
hydraulic
and To produce more 60,000 Frames per month
pneumatic dies.
3. press shop
21 power presses 12 power presses
To cater 90% requirement of the plant capacity
4. coating
powder and
To cater more than 65000 frames and its components per month
anodizing
5. tool room
For making required tools, dies and small plastic moulds
Fully computerized and equipped 6. design and development with the latest Gadgets and software.
To ensure product quality and its 7. quality and assurance consistency- right from input stage to dispatch stage
35
PROCESSING CHART
PURCHASE SECURITY DEPARTMENT RAW MATIRIAL DEPART MENT
FRAMEBENDING AND MACHINE SHAPE DEPARTMENT MOULDING DEPARTMENT
ANVERDAISING DEPARTMENT
ASSEMBLY DEPARTMENT STORE DEPARTMENT STORE DEPARTMENT PACKING DEPARTMENT
DISPATCH DEPARTMENT
36 ASSEMBLY DEPARTMENT
SALES DEPARTMENT
MOULDING DEPARTMENT
It is one of the major departments, where shells are produced in various sizes and colours. It is the main part of the product so naturally it needs more attention.
(A) FUNCTION: Production manager is the head of the department. One production engineer works as a subordinate more over there are two shift incharges and two shift supervisors. One typist and 94 workers including 12 trainees Working in this department. They are not skilled labours. Labours acquire skill after coming in this department.
(B) MACHINERY: The machines are imported and complicated so engineer’s supervision is required. There are 10 automatic injection machines with various capacity and flexibilities. It is run by electric power. For cooling purpose water is supply continuously. The machines are semi automatic. Machine have different automatic safety device with in 60 to 85 second a shell is produced.
(C) PRODUCTION: Normally about 8000 shells are produced per day. The machines work round the clock. The excess part of finished shell must be removed.
(D) TECHNOLOGY: 37
The advance technology saves manpower. And maintain quality of production without any variation more over it can exceed production and it is safer.
(E) JOB SATISFACTION: The operation is easy so workers get more rest and comfort. They are satisfied with their works.
38
FRAME BENDING DEPARTMENT
The frame is one of the important parts of the product; it is made out of the aluminum.
(A)
FUNCTION: There are totally 61 workers works in the department, under the supervision of one engineer, a assistant engineer and three supervisors approximately each worker is supposed to bend some 175 to 200 frames per day. They bend some 1400 frames. After getting shape it goes for drilling on jig, which run by electric power. They drilled for locker, pilot hole and other components.
(B)
SAFETY: Keeping comfort of the worker in a mind a plastic driller has replaced. It is safe against electric shock. While working on the banding die awareness and skill is required. In the mishandling of any of the to workers will caused injury to his coworker. So company have planned to use a modified machines which will be easy to operate and free from above danger. While handling the aluminum metal reacts on their palms. Though the company provides hand gloves but workers hesitate to use gloves. 39
(C) MACHINE SHOP:
Machine shop is a part of the frame bending department in which different part of the machines are made. Hare lath machine. Turning machine, die etc. are used all technical works done by skilled workers while staff are I.T.I. degree holders. It should be noted hare that for the shake of the precaution of dynamic part of the machine is covered by iron frame.
40
QUALITY CONTROL DEPARTMENT
(A)
IT’S IMPORTANCE: To maintain and improve the quality of product it is a special department. It shows awareness of the company about quality of the product. Indian customers are not so award in comparisons to the European customers. They are able to point out the limitation of the product. In our county producer him self has to carry this responsibility other wise low quality will affect the market adversely.
(B)
FUNCTION: Two officers and 43 inspectors assists the manager by continues checking and inspecting all the parts of bag. They do not overlook even a minor fault. They not only maintain the quality of product but also try to improve it. Indeed, this department’s contribution is major in increasing the market of the company. In fact, the need of the department indicates that works have not their morality.
41
ASSEBLY DEPARTMENT
(A)
FUNCTION: This department consists of an assistant manager, two officers and 62 workers. This department is responsible to give the finishing touch to the product. The workers have not special skill but after experience they acquire skills. Here all work is done in a channel so naturally efficiency of co-worker effected to the whole channel. So they make special channel for the trainee workers.
(B)
SAFETY: There is no scope of an accident because they deal with minor tools like hemmer and driller. To keep pace with the market design of the product change continuously. The change in design effect to there efficiency.
42
SAFARI PRESS METAL CO. LTD.
(A)
INTRODUTCION: It is a sister concern of the safari industry. Mr.Amul Mehta is its chairman. It is a small-scale industry. The material, which comes from the safari industries, is the raw material for this company. They do not produce any special part but they modify of safari’s product. It is located in two different sections. One is called “Safari press metal” and other one is “Anverdaising”. Pay scale and other facilities is the same as that of safari industry. They have a common canteen.
(B)
ANVERDISING:
(1) FUNCTION: There are 34 workers including two supervisors. And store clerk and two watchman. (2) PROCESS: The frames come to this plant from “safari industries”. After heating process the frame acquire strength and create a good show. Since it is consumer good it must be attractive. (3) PLANT MANTENANCE:
43
They regularly maintain duckboard and walk ways where acids are used; side duck are inspected every week. Salt is remove from the top of the tank. Slip joints, flanged are also checked for leakage, fans are also checked every week. All mechanical equipments are also inspected and maintained as per manual data book
(4) PROTECTIVE CLOTHS: Company gloves, Gum boots in acidic plants. Company gives Protective cloths also. provides appropriate protective cloths,
(5) ACIDIC PLANTS: Nitric gases are highly dangerous even inhaling small amount can lead to severe injury especially to lungs. But it is found that labours do not use protective elements. They avoid it because it is not convenient to work wearing a gas mask.
44
STORE DEPARTMENT
FUNCTION: This department is consulted with vice-president commercial. Assistant manager is the head of the department. He does his work with co-operation of two-store assistant, four store clerk and 28 workers, and it is work in general shift only Store department is very well aware of the requirement of all departments. When material comes to the company as per order of purchase department. According to there copy store department receives the material and checks it quality and quantity.
45
SECURITY DEPARTMENT
FUNCTION: Security department have 29 guards, one supervisor and one officer. This department is responsible to look after the whole property of the organization. It consults vice-presidents but informally its functions to consultation with the personal department. IT’S IMPORTANCE: This department is not directly concerned with manufacture process or market dealing but to some extent it can be called a left hand of the organization. It takes care of whole property, includes material goods, documents etc. it is responsible to regulate the material movement and labour activities. It takes immediate action in case of mishappening, fire of accident. This department also looks after the work of estate keeping. This department also maintains the first aid box. In the case of dispute, misunderstanding or strike it is this department, which responsible to settle down the matter and maintain peace.
46
Finance department
ITS IMPORTANCE Finance department is one of the most important
departments in the organization. To run any kind of business, one must need finance. Finance is the life-blood of the business activity and this department manage the available fund which company has.
FUNCTION The main function of the finance department is to collect money from availabl sources and make its effective utilization. This department also keeps handling of all kind of financial data.
47
3.3 Working Capital In Safari Industries (India) Ltd
3.4 Working Capital Trend for Safari Industries (India) Ltd. Table – 3.4 200304 1010 1429 47 50 2536 1378 5 1383 200405 1176 1353 53 54 2636 1480 38 1518 200506 1381 1239 52 53 2725 1464 17 1481 200607 1468 1527 62 62 3119 1495 24 1519 200708 1616 1528 226 71 3441 1704 157 1861
Particulars
Inventory Debtors Cash & Bank Balance Loans & Advances Current assets (A) Current Liability Provisions Current liabilities(B) Working B) Capital(A-
1153
1118
1244
1600
1580
48
Working Capital Trend
2000 1500 WCR 1000 500 0 2003-04 2004-05 2005-06 Year 2006-07 2007-08 1153 1118 1244 1600 1580
Graph – 3.4
Interpretation From the above table3.4.1 and graph 3.4.1 we can find that working capital of the company shows increasing trend. Every element of the working capital is increasing. Current asset in 2003-04 RS 2536 lacs which increased to RS 3441 lacs in the year 2007-08. On the other side current assets increased from RS 1383 to 1861 lacs, from 2003-04 to 2007-08. So overall working capital requirement increased from RS 1153 to1580 lacs in the period of 2003-04 to 2007-08.
49
INVENTORY MANAGEMENT
5.1
Introduction
Inventories represent the second largest asset category for manufacturing companies, next only to plant and equipment. The proportion of inventories to total assets generally varies between 15 and 30 percent. The concept of inventory management has been one of the many analytical aspects of management. It involves optimization of resources available for holding stock for various materials. Lack of inventory can lead to stock-outs, causing stoppage of production, but very high inventory on the other hand can result in increased cost of production due to high cost of carrying inventory.
5.2
Types Of Inventory
The various forms of inventories exist in a manufacturing company are as follows:
? Raw material ? Work in progress ? Finished goods
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Component Of Inventory As A % Of Total Inventory Table -5.8
Year Total Inventory 2004-05 2005-06 2006-07 1176 1381 1468 RM as a % WIP as a % FG as a % of of Aggregate of Aggregate Aggregate Inventory 28.15 20.35 27.86 Inventory 4.51 4.06 3.55 68.59 007-08 1616 27.78 3.65 Average 1410.25 26.04 3.94 70.04 68.57 Inventory 67.34 75.59
Graph – 5.8
51
Component Of Inventory As A % Of Total Inventory
80 70 60 50 40 30 20 10 0 2004-05 2005-06 Year 2006-07 007-08 4.51 4.06 3.55 3.65 28.15 20.35 27.86 27.78 RM as a % of Aggregate Inventory WIP as a % of Aggregate Inventory FG as a % of Aggregate Inventory 67.34 75.59 68.59 68.57
percentage
52
RATIO ANALYSIS
? Types Of Ratios
? Liquidity Ratio: It measures the ability of the firm to meet its current obligations. In fact, analysis of liquidity needs the preparation of cash budgets and cash and fund flow statements; but liquidity ratios, by establishing a relationship between cash and other current assets to current obligations, provide a quick measure of liquidity. A firm should ensure that it does not suffer from lack of liquidity, and also that it does not have excess liquidity. ? Leverage Ratio: The short- term creditors, like bankers and suppliers of raw material, are more concerned with the firm?s current debtpaying ability. On the other hand, long-term creditors, like debenture holders, financial institutions etc. are more concerned with the firm?s long term financial strength. In fact, a firm should have a strong short as well as long term financial position. To judge, the long term financial position of the firm, financial leverage, or capital structure ratios are calculated. These ratios indicate mix of funds provided by owners and lenders. As a general rule, there should be an approximate mix of debt and owners equity in financing the firm?s assets. ? Profitability Ratio: A company should earn profits to survive and grow over a long period of time. Profit is the difference between revenues and expenses over a period of time. Profit is the ultimate „output? of a company, and it will have no future if it fails to make sufficient profits. Therefore, the financial manager should continuously evaluate the efficiency of the company in terms of profit. The profitability ratios are calculated to measure the operating efficiency of the company.
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?
Activity Ratio: Activity ratios are employed to evaluate the efficiency with which the firm manages and utilizes its assets. These ratios are also called turnover ratios because they indicate the speed with which assets are being converted into sales. A proper balance between sales and assets are managed well. Several efficiency ratios can be calculated to judge the effectiveness of asset utilization.
Liquidity Ratio 7.1.1 Current Ratio
The current ratio of a firm measures its short-term solvency, that is, its ability to meet short-term obligation. Conventionally, a current ratio of 2:1 is considered satisfactory. It is important to note that a very high ratio of current ratio may be indication of slack management practices, as it might signal excessive inventories for the current requirements and poor credit management in terms of overextended accounts. Current Assets Current Ratio = --------------------------------Current Liabilities
Table – 7.1.1
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(RS. In lakhs)
year
200304
200405 2636 1518
200506 2725 1481
200607 3119 1519
200708 3441 1861
Current Assets Current Liabilities Ratio(Times)
2536 1383
1.83
1.74
1.84
1.85
1.85
Graph – 7.1.1
Current Ratio
1.9 Ratio 1.8 1.7 1.6 2003-04 2004-05 2005-06 Year 2006-07 2007-08 1.83 1.74 1.84 1.85 1.85
Interpretation From the table 7.1.1 & graph 7.1.1 we can see that the current ratio in all the years are ranging nearly 1.75 to 1.85 which is very near to the standard current ratio and it is 2. So we can say that the company?s current assets are able to pay the current liabilities. So company?s current position is sound.
7.1.2 Quick Ratio
55
A rupee of cash is more readily available to meet its current obligation than a rupee of, say, inventory. This impairs the usefulness of the current ratio. The acid test ratio is a measure of liquidity designed to overcome this defect of the current ratio. It is often referred as to quick ratio because it is measurement of a firm?s ability to convert its current assets quickly into cash in order to meets its current liability. Thus, it is a measure of quick or acid liquidity. The acid test ratio is the ratio between quick current assets and current liabilities.
Current Assets – Inventory Quick Ratio = Current Liabilities -------------------------------------------------
Table (RS. In lakhs) year 200304 CA – Inventory 1526 200405 1460 200506 1344
–
7.1.2
200607 1651
200708 1825
56
Current Liabilities Ratio(Times)
1383
1518
1481
1519
1861
1.10
0.96
0.91
1.09
0.98
Graph – 7.1.2
Quick Ratio
1.2 1 0.8 0.6 0.4 0.2 0 1.1 0.96 1.09 0.91 0.98
Ratio
2003-04
2004-05
2005-06 Year
2006-07
2007-08
Interpretation: From the table 7.1.2 & graph 7.1.2 we can see that the quick ratio in all the years are ranging near to 1 which is very near to the standard norm which is 1:1 . So from this we can interpret that company have very good position as far as we think about this ratio. Company should try to maintain this ratio in the future also.
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7.1.3
Cash Ratio
Cash ratio is the most conservative ratio. It excludes all current assets except the most liquid cash and cash equivalent. The cash ratio is an indication of firms ability to pay its current liabilities, if for some reason immediate payment is required. Cash Cash Ratio = -----------------------------------------Current Liabilities
Table – 7.1.3 (RS. In lakhs)
year
200304
200405 53 1518
200506 52 1481
200607 62 1519
200708 226 1861
Cash
47 1383
Current Liabilities Ratio(Times)
0.03
0.03
0.04
0.04
0.12
Graph -7.1.3
58
Cash Ratio
0.15 Ratio 0.1 0.05 0 2003-04 2004-05 2005-06 Year 2006-07 2007-08 0.03 0.03 0.04 0.04 0.12
Interpretation From the table 7.1.3 & graph 7.1.3 we can see that in the year 2003-04 &2004-05 , the ratio is 0.03, in the year 2005-06 & 2006-07 it increases and reaches to 0.04 which is due to more increase in the cash, while in the year 2007-08 the ratio again increases to 0.12 which is due to increase in cash balance and current liabilities but as compare to the previous year company has increased 3 times.
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7.2 Leverage Ratio 7.2.1 Debt Equity Ratio
The relationship between borrowed funds and owner?s capital is a popular of the long-term financial solvency of the firm. The relationship is shown by the debt- equity ratio. The ratio reflects the relative claims of creditors and shareholders against the assets of the firm. Alternatively, this ratio indicates the relative proportion of debt and equity in financing the assets of the firm. The relationship between outsiders claims and owner?s capital can be shown in different ways and accordingly, there are many variants of the debt equity ratio . Debt Equity Ratio = Net Worth Total Debt -------------------------------------
Table 7.2.1
(RS. In lakhs)
year
200304
200405 729 917 0.79
200506 789 899 0.88
200607 915 1048 0.87
200708 864 1053 0.82
Total Debt Net Worth
916 906 1.01
Ratio(Times)
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Graph - 7.2.1
Debt Equity Ratio
1.5 Ratio 1 0.5 0 2003-04 2004-05 2005-06 Year 2006-07 2007-08 1.01 0.79 0.88 0.87 0.82
Interpretation: From the table 7.2.1 & graph 7.2.1 we can find out that Debt equity ratio of the year 2003-04 is 1.01 which is highest as compared to the ratio of 200405 to 2007-08 which is ranging between 0.79 to 0.87 loans and unsecured loans are same but increased. It very near to each other. because secured reserves and surplus has been
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7.2.2
Debt Ratio
Several debt ratios may be used to analyze the long term solvency of a firm. The firm may be interested in knowing the proposition of the interest bearing debt in the capital structure Total Debt Debt Ratio = ---------------------------------------Total Debt + Net Worth
Table -7.2.2 year 200304
Total Debt
(RS. In lakhs) 200405 729 1846 200506 789 1688 200607 915 1963 200708 864 1917
916
Total Debt + Net 1822 Worth
Ratio(Times)
0.50
0.39
0.47
0.47
0.45
Graph – 7.2.2
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Debt Ratio
0.5 0.5 0.4 Ratio 0.3 0.2 0.1 0 2003-04 2004-05 2005-06 Year 2006-07 2007-08 0.39 0.47 0.47 0.45
Interpretation: From the table 7.2.2 & graph 7.2.2 we can find out that Debt ratio of the year
2003-04 is 0.50 which is decrease in the following years during the years 2004-05 to 2007-08 which is near 0.45 to 0.47 it sows the stability in all the years there is not any big changes in unsecured loan. So we can say that there is nearly 45 to 47 percentage of are making from lenders.
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7.2.3
Capital Employed Ratio
There is another alternative way of expressing the basic relationship between debt and equity.
Capital Employed Capital Employed Ratio = Net Worth Table – 7.2.3 year 200304
Capital Employed Net Worth
-------------------------------
(RS. In lakhs) 200405 1737 917 1.89 200506 1763 899 1.96 200607 2023 1048 1.93 200708 1960 1053 1.86
1914 906 2.11
Ratio(Times)
Graph – 7.2.3
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Capital Employed Ratio
2.15 2.1 2.05 2 1.95 1.9 1.85 1.8 1.75 1.7 2.11 1.96 1.89
Ratio
1.93 1.86
2003-04
2004-05
2005-06 Year
2006-07
2007-08
Interpretation: From the table 7.2.3 & graph 7.2.3 we can find out that capital employed ratiois showing the decreasing trend as it was 2.11 in the year 2003-04 which declines to 1.86 in the year 2007-08. So we can say that capital employed is nearly 2 times of the net worth . and we also know that it is alternative ratio of the debt equity ratio which shows the contribution from the lender and owner.
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7.3 Profitability Ratio 7.3.1 Gross Margin Ratio
The gross profit margin reflects the efficiency with which management produces each unit of product. This ratio indicates the average spread between cost of goods sold and sales value. A high gross profit margin ratio is a sign of good management. A low gross profit margin may reflect higher cost of goods sold due to firms in ability to purchase raw material at a favorable terms, inefficient utilization of plant and machinery, resulting in higher cost of production. Gross Profit Gross Profit Margin = --------------------------------Sales Table (RS. In lakhs) year 200304
Gross Profit Sales
X 100
–
7.3.1
200405 176 4607 3.82
200506 122 4559 2.68
200607 145 5633 2.57
200708 172 6245 2.75
216 4565 4.73
Ratio(Percent)
Gragh -7.3.1
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Gross Profit Margin
6 Ratio 4 2 0 2003-04 2004-05 2005-06 Year 2006-07 2007-08 4.73 3.82 2.68 2.57 2.75
Interpretation: As we know that higher the profit margin is very good for the any company but for Safari Industries (india) ltd. it is low so company should try to increase this ratio.In the year 2003-04 the gross profit margin is highest which reflects lower cost of goods sold due to firms ability to purchase raw material or over investment. Whereas, in the year 2004-05 it under the 4% and 2005-06 to 2007-08 it is under 3% so the contribution of the company decreases and gross profit margin ratio is also decrease but still it is good for the company.
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7.3.2Net
Profit Margin
Net profit margin ratios establish a relationship between net profit and sales and indicate management?s efficiency in manufacturing, administering and selling the products. This ratio is overall measure of the firm?s ability to turn each rupee sales into net profit. If the net profit in inadequate, the firm will fail to achieve the satisfactory return on shareholder?s funds. Net profit Net profit margin = ------------------------Sales
Table -7.3.2 (RS. In lakhs)
x 100
year
200304
200405 41 4607 0.89
200506 (18) 4559 (0.39)
200607 13 5633 0.23
200708 93 6245 1.49
Net profit Sales
77 4565 1.69
Ratio(Percent)
Graph -7.3.2
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Net profit margin
2 1.5 0.89 Ratio 1 0.5 0 -0.5 2003-04 2004-05 2005-06 Year 2006-07 2007-08 -0.39 0.23 1.69 1.49
Interpretation: As we know that higher the net profit margin is very good for the any company but for Safari Industries (india) ltd. it is low so company should try to increase this ratio. In the year 2003-04 the net profit margin is highest which reflects lower cost of goods sold and lower interest , due to firms ability. Whereas, in the year 2004-05 it is 0.89 and 2005-06 company has incurred loss but again in the year 2006-07 it is 0.23%. And the year 200708 company?s efficiency increase net profit margin.
7.3.3 Return on Investment
The term investment refers to total assets or net assets. The firms employed in net assets are known as capital employed. The conventional approach of calculating return on investment is to divide PAT by investment. Investment
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represents pull of funds supplied by shareholders and lenders, while PAT represents residue income of shareholders.
Profit After Tax Return on Investment = --------------------------------Total Assets x 100
Table-7.3.3
(RS. In lakhs)
Year
200304
200405 41 1737 2.36
200506 (18) 1763 (1.02)
200607 13 2023 0.64
200708 93 1960 4.74
Profit After Tax
Total Assets
77 1914 4.02
Ratio(Percent)
Graph -7.3.3
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Return on Investment
4.74 5 4 3 Ratio 2 1 0 -1 -2 2003-04 2004-05 2005-06 Year 2006-07 2007-08 -1.02 4.02 2.36 0.64
Interpretation: From the table 7.3.3 & graph 7.3.3 we can find out that in the year 2003-04 the ratio was 4.02 which got decreased to 2.36 in the year 2004-05 and become negative in the year 2005-06 due loss. But again company has convert that loss in to positive ratio becomes 0.64 in the year 2006-07 & reaches to 4.74 in the year 2007-08 which is highest comparing to all the years. So company should try to stabilize position.
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7.3.4 Return on Equity
Common or ordinary shareholders are entitling to the residual profits. The rate of dividends is not fixed. The earnings may be distributed to shareholders or retained in the business. A return on shareholders equity is calculated to see the profitability of owners investment. Profit After Tax Return on Equity = --------------------------------------- x Net Worth Table-7.3.4 Year 200304 Profit After Tax
Net Worth
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(RS. In lakhs) 200405 41 917 4.47 200506 (18) 899 (2.0) 200607 13 1048 1.24 200708 93 1053 8.83
77 906 8.50
Ratio(Percent)
Graph -7.3.4
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Return on Equity
10 8 6 Ratio 4 2 0 -2 2003-04 2004-05 2005-06 Years 2006-07 2007-08 -2 1.24 4.47 8.5 8.83
Interpretation: From the table 7.3.4 & graph 7.3.4 we can find out that in the year 2003-04 the ratio was 8.5 which got decreased to 4.47 in the year 2004-05 and become negative in the year 2005-06 due loss. But again company has convert that loss in to positive ratio becomes 1.24 in the year 2006-07 & reaches to 8.83 in the year 2007-08 which is highest comparing to all the years. So company should try to stabilize position. So company should find out the more falts for better profit because it reflects the interest of the present as well as the prospective shareholders of the company.
7.3.5 Earning Per Share
EPS calculation made over years indicates whether or not the firm?s earnings power on per share bases has changed over that period. The EPS of the company should be compared with the industry average and earnings per share of other firms. Profit After Tax
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Earning Per Share = ---------------------------------No. of equity Shares
Table-7.3.5 (RS. In lakhs)
Year
200304
200405 41 26
200506 (18) 26
200607 13 29.9
200708 93 29.9
Profit After Tax
No. Shares of
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equity 26
Ratio
2.96
1.58
(0.69)
0.43
3.11
Graph -7.3.5
Earning Per Share
4 3 2.96 1.58 -0.69 2003-04 2004-05 2005-06 Year 0.43 3.11
Ratio
2 1 0 -1
2006-07
2007-08
Interpretation:
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From the table 7.3.5 & graph 7.3.5 we can find out that in the year 2003-04 the ratio was 2.96 which got decreased to 1.58 in the year 2004-05 and become negative in the year 2005-06 due loss. But again company has convert that loss in to positive ratio becomes 0.43 in the year 2006-07 & reaches to 3.11 in the year 2007-08 which is highest comparing to all the years. So company should try to stabilize position. So company should find out the more falts for better profit because it reflects the interest of the present as well as the prospective shareholders of the company. In this ratio
we can say that company is far behind than other competitors so company try to earn more profit.
Dividend Payout Ratio
The dividend payout ratio is DPS divided by the EPS. It is shows the percentage of Profit Company pays as a dividend from the distributable profit. Dividend Dividend Payout Ratio = -------------------------- ------ x 100 Profit After Tax
Table7.3.6 (RS. In lakhs)
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Year
200304
200405 29 41 7.07
200506 -(18) 00
200607 -13 00
200708 -93 00
Dividend
-77 00
Profit After Tax Ratio(Percent)
Graph -7.3.6
Dividend Payout Ratio
8 6 Rati0 4 2 0 2003-04 2004-05 2005-06 Year 2006-07 2007-08 0 0 0 0 7.07
Interpretation: From the table 7.3.6 & graph 7.3.6 we can find out that in the year 2004-05 only company is paying dividend and that is also 7.07 %. so we can say that rather than paying dividend company more interested in the making more reserves.
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7.4 Activity
Ratio
7.4.1 Inventory Turnover Ratio
Inventory turnover indicates the efficiency of the firm in producing and selling its product Cost of Goods Sold Inventory Turnover Ratio = --------------------------------------. Average Inventory Table-7.4.1 (RS. In lakhs) Year 200304
Cost Sold Average Inventory of Goods 4349
200405 4431
200506 4437
200607 5488
200708 6073
1010
1093
1278.5
1424.5
1542
Ratio(Times)
4.31
4.05
3.47
3.85
3.94
Graph – 7.4.1
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Inventory Turnover Ratio
6 Ratio 4 2 0 2003-04 2004-05 2005-06 Year 2006-07 2007-08 4.31 4.05 3.47 3.85 3.94
Interpretation: From the table 7.4.1 & graph 7.4.1 we can find out that Inventory turnover ratio in all the year 2003-04 to 2007-08 is ranging nearly to 4 .The Inventory Turnover Ratio is almost similar in all the years that means company is maintaining the inventory very well. So we can say that company efficiency in producing and selling departments are doing excellent job. But company should concentrate more because higher ratio is also adversely affect the company.
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7.4.2
Debtors Turnover Ratio
Debtors turnover indicates the number of times debtors turnover each year. Generally, the higher the value of debtor?s turnover, the more efficient is the management of credit. Credit Sales Debtors Turnover Ratio = ------------------------Debtors Table-7.4.2 Year 200304 Credit Sales Debtors Ratio(Times) 4565 1429 3.19 200405 4607 1353 3.41 (RS. In lakhs) 200506 4559 1239 3.70 200607 5633 1527 3.69 200708 6245 1528 4.09
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Graph – 7.4.2
Debtors Turnover Ratio
5 4 Ratio 3 2 1 0 2003-04 2004-05 2005-06 Year 2006-07 2007-08 3.19 3.41 3.7 3.69 4.09
Interpretation : From the table 7.4.2 & graph 7.4.2 we can find out that The debtor turnover ratio is showing the icresing trend as year are passing . In 2003-04 it was 3.19 but it went down to 3.7 in 2005-06 and then in 2006-07 it again increased and reached to 3.69 and finally it reaches 4.09 in the present year. This indicates that credit management team?s efficiency of the company is increasing. The reason behind this is that the company is following effective and strict collection or credit policy.
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7.4.3
Total Assets Turnover Ratio
Some analyst likes to compute the total asset turnover in addition to or instead of net asset turnover. Sales Total Assets Turnover Ratio = --------------------------Total Assets Table-7.4.3 Year 200304 Sales Total Assets Ratio(Times) 4565 1914 2.39 200405 4607 1737 2.65 (RS. In lakhs) 200506 4559 1763 2.59 200607 5633 2023 2.78 200708 6245 1960 3.19
Graph – 7.4.3
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Total Assets Turnover Ratio
3.5 3 2.5 2 1.5 1 0.5 0 3.19 2.39 2.65 2.59 2.78
Ratio
2003-04
2004-05
2005-06 Year
2006-07
2007-08
Interpretation: From the table 7.4.3 & graph 7.4.3 we can find out that The ratio is
constantly increasing from their relatively previous year. Higher the ratio is good for any company. In 2003-04 it was 2.39 which reaches to 3.19 in the present year and this shows the efficiency of the company.
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7.4.4
Sales
Current Assets Turnover Ratio
Current Assets Turnover Ratio = --------------------------Current Assets
Table (RS. In lakhs) Year 200304
Sales
–
7.4.4
200405 4607 2636 1.75
200506 4559 2725 1.67
200607 5633 3119 1.81
200708 6245 3441 1.81
4565 2536 1.80
Current Assets Ratio(Times)
Graph -7.4.4
Current Assets Turnover Ratio
1.85 1.8 1.75 1.7 1.65 1.6 1.8 1.75 1.67 1.81 1.81
Ratio
2003-04
2004-05
2005-06 Year
2006-07
2007-08
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Interpretation: The current assets ratio is decreasing constantly in the first three years from 2003-04 to 2005-06 which further increase to 1.81 and remain same for last two years. This indicates after decreasing it again increasing trend. So company should try to maximize its sales as much as possible.
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DISPATCH DEPARTMENT
(A) ITS IMPORTANCE: The dispatch of product is the last but the most critical, phase of the process of the marketing. They arrange the supply of the product to consumer. PRODUCER
Selling agent in different zone Customers (B) FUNCTION: It is a subordinate part of sales department one sales officer cum excise officer, four assistants and 17 workers work in this department. Packing is important for proper transportation and
storage of goods. The brand name can be conveniently and attractively printed on the package. Being consumer good is must have attractive as well as safe. They package bags in polythene bags to protect the product from dust and damage. Afterwards according to its size and quality they package in cartoon. They dispatch all products to their department. Totally 25 depot are their in different part of the country.
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SALES DEPARTMENT
(A) ITS IMPORTANCE:
The main purpose of a business is to create the
customers. Marketing is the function of business concerned with creation of customers. Their approach is mainly “consumer oriented”.
Advertising is also one of the responsibilities of this department. In the modern world to stand in the market and compute with other firms they keep good touch with customers. The company’s products are covered by a one-year guarantee. Each depot is responsible for prompt after sales service to area falling under its jurisdiction.
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HUMAN RESEARCH DEPARTMENT
INTRODUCTION
Human resource is the prime mover of advancement and
development the strides that companies and indeed countries make is founded on the ability of leader ship to tape the production genius of the people. It is the people who make thing happened. They make the decisive difference. Human resource management refers to the managing of the human resource of the company. The base of the any company growth is wholly depends on human resource. The most crucial task in the organization is the management of its work force. The work of HR manager is recruitment of people, their maintenance, seeking them good working environment, remunering them, promoting them, and if needed leave them. Human resource department is responsible for any act of any employee or labour. Whether it is related to work or other then work. The department has to keep in touch with the employee and workers, the personnel department has to provide them training and development program periodically according to need arises. Training and development program is basically for the improvement in work style and the efficiency of the worker. It helps a lot to workers and employee for their overall development.
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The competition is also on pick customers also demanding quality product and they are ready to pay high prices for that contemporary organization. Face constant presume to enhance levels of service and productivity, whilst also improving levels of environment and the rapid pace of technology changed. Increase demand to improving business performance and securing competitive advantages. People increasingly recognized as the prime source of competitive advantage and the need for effective people management is there fore more important then ever before. The challenges facing today’s organization to provide indeed opportunity for HR function to demonstrate its ability to contribute to organizational performance at a strategic level.
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RECRUITMENT AND SELECTION (1)
MANPOWER RECRUITMENT CONSULTANT:
Manpower recruitment consultant are those people or firm who helps the organization in their recruitment process by providing manpower to them according to need exam: recruitment consultant, consultancy firm labour contractor. Safari industries use this manpower recruitment consultant for all type of designation exam: at top-level management, at middle level management and at the bottom level management. AT TOP LEVEL MANAGEMENT: The vacancy arises at top level management for the managerial post need high skilled, well qualified experienced candidates for that they contract manpower consultant and consultancy firm. But this type of consultancy and firm are well known across the country. They generally recruit this kind of post only. AT MIDDELE LEVEL MANAGEMENT: The vacancy arises at this level for the post of staff member, typist, computer operator, receptionist, accountant and middle level manager, supervisor etc. for this type of designation company use recruitment consultant at local level or domestic level.
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AT BOTTOM LEVEL MANAGEMENT: The vacancy arises at the bottom level management are workers, peons, security guards, foreman, technicians etc. normally labours and workers are needed in big number other then staff and manager. Company recruits labours through labour contractors / firms. (2) ADVERTISEMENT: Here advertisement is not relates to the products advertisement, it is relates to recruitment, newspaper, and magazines are used for giving advertisement for recruitment. Safari industries also use the newspaper for giving advertisement company uses the advertisement for both the level of management top level and middle. FOR TOP LEVEL MANAGEMENT: The vacancy arise at the top level management with designation like managerial post which requires more attention than any other this kinds of post are very important in the organization so, the candidate should also be highly intellectual. Company uses the big name of newspaper for the advertisement of managerial post exam: “ the times of India”, “the economic times”, “the Indian express”, “business standard” etc. became those people who are highly qualified and wants to be at this kind of high post in company usually read this types of news paper. 90
FOR MIDDDLE LEVEL MANAGEMENT: Under the head of middle level management the post arises are of staff members, telephone, operators, computer operators, supervisor etc. for the fulfillment of these types of post company uses the newspapers working of domestic level exam: Gujarat sanchar “sandesh”, bhasker”. Because these posts are not required higher qualification for the post manpower can be acquired from domestic level. (3) RECRUITMENT AGENCIES: Recruitment agencies are those agencies which working on a vast sale basically this type of agencies working for recruiting all kinds of job excluding bottom level position of labours and workers exam: “divyta
“naukri.com” “monster.com”, “job search.com” etc. they are running their websites mention usually candidates put their bio-data on the websites then these agencies inform them about related jobs. Now a day Safari also uses service of these agencies for the higher managerial position. (B) SCRUITINY OF BIO-DATA: In the scrutiny of bio-data the personnel manager check out all the application and their bio-data, which are received for particular job. At the initial stage the personal manager reject those application which can not fulfilled the requirement of the job. Exam: education, qualification, job
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experience, age etc. and the remaining application are selected will be called for on interview. (C) INTERVIEW: Generally, in all companies selected applicants will be call for an interview. Safari industries also take the initial interview. The type of an interview is decided on the bases of the designation of the vacant job then after the quantum of interview will be made by the management exam: top managerial post required more difficult interview. While the bottom level post required comparatively less tuff interview. The candidates are informed the date, time, and place of the interview in advance. The different kind of test are also taken accordingly the designation of the job. Exam: personality test, work test etc. (C) REFERANCE CHECK : In safari industries the management demands any strong reverence of any person with high profile. The person may be from the old company or any friend or relatives which is presently working in safari industries is accepted. (D) SELECTION : At the end if the candidate fulfilled all the requirement of the job for company then she/he will be selected for the job.
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In safari industries the interviews are taken by the selection committee and the selection authority also lies with them.
SELECTION COMMITTEE : 1) Selectioncommittee
for technical post :- 2 technical member,1
member form personal and administration department.
2) Selection
committee for administrative post :- 1 member from
personal and administration department, 1 or 2 member from concern division or department. The selection committee of safari selects the candidate on the bases of qualification which the job required. The emphasis will also given to various extra skills and abilities. (F) MEDICAL CHECKUP : In some companies after the selection of candidate He/She has to under go a primary medical check up. But in safari generally there is not any kind of medical checkup. If the situation demand then they will do. (F) INDUCTION : On joining the company the candidate will issue appointment letter. And he/she will issued identity card displaying his photograph and other information.
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After all this the newly selected candidate will introduced to his colleagues in the department as well as other people with whom he will be required to work and co ordinate.
EMPLOYEE POLICIES ? Fair Employment Opportunities
The company values and respects contraibution of the every employee irrespective his catogary. All employees will be heard the objectives of personnel policies set forth in the manual is to ensure that all employees will get fair and consistent treatment in metters related to performance appraisal decipline and grievance procedures.
Standerd of performance appraisal, deciplinary actions and grievancesprocedures have been laid down to ensure that all the employees get a fair hearing.
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TRAINING & DEVELOPMENT
In the continuously changing business environment, to sustain corporate growth, it is of utmost importance garner the human resources. Continuous training is required not only for the development of the employee?s career, but also to enable him to shoulder additional responsibility.
In order to enable employee to sattle down as a big and happy family, which will enable him to effective and maximum output, co-operate and co-ordinate with his colleagues, it is one of the prime responsibility of the management to lead and give proper direction with the aid of training and development for the all concerned.
There is no standerd uniform pattern of the traning which can be implemented by the company. The aim of the training will be to develop confidence, commitment and ability to think clearly in the right direction.
Both internal and external training programs and cources of various institutes and seminars are provided, however management reserves the right to decide on individual sponcership.
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TRANSFER
Service of employees is liable to be transferred from one department to another, from one unit/branch to another of the company and or any associate concerned on temporary or permenant besis anywhere in India.
Employees transfer from one region to another will be eligible to receive transfer allowance as under:
1. Air or Rail Fare (as per entitlement) for the employee and his family at actual. 2. All residential transfer for transporting households belongings and personal effects from residence to railway station or airport and vice versa at both at regions. 3. Packing and forwarding expenses at actual will be reimbursed subject to the estimate for the same with prior approval from Vice Precedent or General Manager. 4. Fright incurred in conveying household belongings and personal effects from one region to another at actual. 5. For the purpose of these rules family would mean spouse and dependent children and parents. 6. Employees using company?s car would be allowed for transfer of cars with prior approval.
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SWOT ANALYSIS
STRENGTH
The SAFARI INDUSTRIES (INDIA) LTD
is a company that
makes profit from the beginning. The success of the SAFARI INDUSTRIES (INDIA) LTD. Is due to certain strength. The area in which company has done their best has been covered in successive paragraph. The success of the company goods to its strength due to which company is able to reach this place. The main strength of SAFARI INDUSTRIES (INDIA) LTD is their HR policy. Their behaviors with employees are very friendly. In SAFARI
INDUSTRIES (INDIA) LTD the structure of organization is flat. Any worker of staff can talk with management directly.
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The second thing is important their behavior toward the employee. They give them facilities the company ids having facilities like canteen, telephone, co-operative credit society, transport, loans, and advance etc. more over they give facilities like P.F. gratuity, ESI etc. The company subscribes magazines
for employees like arbiter, human capital, labour law reporter, Baroda management association etc. for the welfare and
knowledge of employees. In addition they arrange performance appraisal programmed for increase in performance. To improve the quality of the company they arrange suggestion programmed and in this programmed the employee who gives good suggestion is appraised by award. Thirdly, the company having “QUALITY CONTROL METHOD ” at each and every stage of production. If any defect at any stage is noticed the material is repossessed. Through the whole stage or if it is unrepairable it is scrapped. In SAFARI INDUSTRIES (INDIA) LTD there is no compromised with quality.
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Fourthly the company is having educated and skilled manpower. Through which company is able to deal with any future problem they are also able to understand the problems of company and market These are the strength of the company, which I was noticed during my training. In last the company has to think about information technology and multimedia world because today, those who launch new companies first day launch their website and then start their company. So the management of SAFARI INDUSTRIES (INDIA) LTD must have to think about the website for the company.
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WEAKNESSES
If there is strength of the company, there is weakness of the company also. The SAFARI INDUSTRIES (INDIA) LTD have some weaknesses but I think it is of short time and they are trading to remove this weaknesses. Firstly, the technology used by the company is old because the modern world is using latest technology and latest machinery available in the market. The technology today used by the competitors is more productive and competitive then SAFARI INDUSTRIES (INDIA) LTD. Today the technology in the market is not laboure oriented. It is almost technology oriented. So they must go for the latest technology available in the market. Secondly, in the frame-bending department there is almost every work is done by hand held machines. So they have to go for latest technology available in the market.
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There is still low expenditure on raw material. Because they have to compete with companies like VIP and Samsonite is one of the multinational companies in luggage industry. So they must have to think creative then their competitors. In addition to this they must have to think about expansion of the company because their competitors are dealing with soft luggage and they are dealing in only in moulded luggage.
OPPORTUNITY
Since the company has the system set they can now think of constantly improving their product and bringing in varieties. They can also carryout a market survey and see what are the market trends and think of new innovations to make product more salable.
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THREATS There are other popular brand names like Aristocrat, VIP, and so on. New entrepreneurs are trying to enter the market Secondly with the open door policy of govt of India, the foreign manufacturers are likely to enter the market and competent with the existing firms.
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2.4
Research Methodology
2.4.1 Data collection There are two kinds of the methods to collect the data. That are primary data collection and secondary data collection. For the study purpose I have used the secondary data collection because for the study purpose I have used company?s annual report?s for 2004-05 to 2007-08 data were also collected through the internet and other prepared reports which company provides for the guidance and also very important source for my secondary data is the staff members who provide me the information whenever required and constantly guides during my summer projects. 2.4.2 Sources of data The main source of data for this study company profile, old report, company?s annual report, internet and private publication and this sources fall under the category of secondary data . Any data which has been gathered earlier for some other purpose are secondary data . In contrast, those data which are collected at first hand either by researcher or by someone else especially for the study are known as primary data.
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As I am doing project on working capital management and ratio analysis, the information collected must be from secondary data because primary data is not possible.
2.4.3 Sample design In this study sample is not used. Because the study is done under the topic working capital management, Where information is usually collected through personal contacts sample generally used where questionnaire is prepared. Therefore there is no requirement of sample for this project. 2.4.4 Techniques of data collection
Direct interview method is used to collect data for this study. Direct personnel interview is conducted with external guide and other important personnel in the organization. Its study is mainly focused on financial performance Safari Industries (India) Ltd. There where no need to collect information using questionnaires. All the data collected from companies according to records.
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RESEARCH METHODOLOGY
1. TITLE OF THE STUDY: EMPLOYEE’S WELFARE FACILITIES
2. CENTRE
: Safari Industries (India) Ltd.
3. CATEGORY
: Questionnaire and Interview based
4. NEED FOR STUDY : a) To know company policies in providing facilities or services to the employees; b) Whether employees are satisfied with these and after receiving. Do employees work efficiently or not; c) How management views about their employees; statutory in d) How many facilities are statutory and non the company.
Before joining the professional course i.e.IRPM Course, the researcher had been acquainted with various difficulties in work and faces various problems of manufacturing employees or workers. The researcher is still acquainted today with the life style and standard of life of employees and workers in their day to day life and at work situations. The researcher did not have through knowledge regarding welfare facilities
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and what Act prescribed for labour welfare before the research was undertaken.
Now, the researcher is aware about the employees work, their working life, their requirements and their problems in the company. The employees are believed in the good standard of life, high income and secured life both his and his family. Sometimes, they are frustrated and feel stress with their work and working style. They have high pay scale but no time and not have facilities to enjoy in life. By this topic I can know the what is statutory facilities and non-statutory facilities, it is on the hands of the management to give welfare facilities and employees or workers have raise their problems and need for facilities in the company so that they can received the welfare facilities.
During the IRPM Professional Training the researcher have acquired better knowledge and understanding regarding the labour legislation and labour welfare facilities. Through the theoretical knowledge the researcher came to know the need and significance of the welfare facilities for the employees in the company. The knowledge acquired regarding the labour welfare field, the innate interest and a fair deal of motivation enabled the researcher to conduct a study on the life style of the employees regarding the perception utilization and suggestion aspects which would give a wider perspective for the need and importance of the study.
However, one who is closely acquainted with the industrial environment in India would realize that many of the employees make it eyewash. In India, labour welfare considered to be a part of managing people at
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work, i.e. Human Resource Management. The final conclusion of the study would be more helpful for the organization, to become aware of advantages and loop holes which may ultimately help the modifications and better implementations of the policies in a wider perspective.
5. OBJECTIVES : provided by HR.
To study the present scenario of facilities
? To identify the problems of employees. ? To analyze the HR views about the employees, i.e. their work life a family/personal life. ? To suggest measures in facilities provided to the employees by the Management. ? To study the awareness of the employees for their facilities and what Act mentioned about the employees facilities. ? To study the utilization of the welfare facilities among the employees.
BROAD OBJECTIVE OF THE STUDY:
To study of utilization of both statutory and non-statutory welfare facilities provided by the organization for the well being and betterment of workmen and it fosters the productivity and production.
SCOPE OF THE STUDY:
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In fact, the scope in the field of labour welfare is very wide where greater insight is needed to study each and every aspect. The scope of the study is exposed and explored in the field of manufacturing company, the study aims at probing the welfare facilities, which are commiserating the hardships of the employees work in the company.
Efficiency of the work is directly and indirectly linked with the working conditions, organization culture and environment under which they are required to work. Even the most sincere employee can not contribute his best, if he is uncomfortable and unsatisfied. In a company working conditions and its atmosphere of the workforce affect the productivity. The scope of the present study, however, is not limited to the facilities within near the undertaking but other non-statutory facilities are taken in to consideration of the scope of labour welfare.
If the company provides good and fair welfare facilities according to the requirements of the employees then the management motivated indirectly employees by providing welfare facilities. By these employees feel secure and their morale and standard of life also go high.
It helps to employees to work efficiently and effectively at the same time the management also know the responsibility of their to secure life of the employee and his family also. By this the management also can taken work from the employees to achieve goal of the organization.
RESEARCH DESIGN:
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To study the utilization and perception of the employees welfare facilities at Safari Industries, towards welfare facilities in a departments the research her considered the importance of both statutory and non-statutory facilities to gain deeper insight in to the implementation policy of the company on one side and utilization, perception and suggestions components of the respondents on the other side. That how company provides welfare facilities and what types of facilities are provided to the employees.
UNIVERSE OF THE STUDY:
For the purpose of the research study the researcher had selected Safari Industries . The total strength of this company is 2500 the researcher decided to cover the 50 respondents for the research study.
SAMPLING TECHNIQUE:
For the purpose of the research study the researcher applied Simple Random Sampling to acquire the size from the sample frame of 50 respondents.
TOOLS FOR DATA COLLECTION:
The researcher has utilized “Interview Schedule and Questioner Format” as a tool for
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data collection keeping in minds all the components of the research study. -how to do it, -why to do it, -what type of questions taken and t o whom to ask etc, -observation at work place, -try to know the employees problems and there demands. Observational visits in the departments for the study. Informal talk with Safari Industries HR manager, HR officer and employees also enabled, which give me a clear picture of existing welfare facilities and other aspects for the development deeper insight in to the research study. ANALYSIS OF DATA COLLECTION
(A)
Persoanl Information of Respondents
Table -1 Age Group Of The Respondents
Age Group 25 - 30 30 - 40 40 - 50 50 - 60
Frequency Percentage 3 17 20 10 6% 34% 40% 20%
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TOTAL
50 100%
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The above table shows that there are 3 respondents, like that there are respondents from the 50 respondents. i.e. there are 6% respondents from 100% in 25-30 year age group, & 20%are in 50-60 age group.
Table - 2
Sex Of The Respondents
Sex Male Female TOTAL
Frequency 48 2 50
Percentage 96% 4% 100%
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The above table shows that there are 45 respondents from 50 are male & having 90% while there are 5 respondents from 50 who are female & having 10% from 100%. Table -3 Departments of Respondents
Materials
Finance
Personnel HR
15
15
10
10
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The above table shows that I collected data from the materials, finance, personal, & HR Departments. Table -4 Facilities Provided By The Company
There are many facilities proving by the company like Canteen facilities Medical facilities Lunch- Room facilities Rest Room facilities Loans facilities Transportation faqcilities Taking decisions facilities.
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Table -5
Utilisation Of Welfare Facilities
Opinion Yes No TOTAL
Frequency 47 3 50
Percentage 94% 6% 100%
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Above table shows that there are 47 respondents from 50 who are utilizing the welfare facility & there are 3 respondents from 50 who are not utilizing the welfare facility. Table – 6 Facilities Meet Your Requirements
Opinion Yes No More than TOTAL
Frequency 45
Percentage 90%
5
10%
50 100%
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Above table shows that there are 45 respondents who are believe that facilities satisfying their requirements, 5 respondents are believe that the facilities are more than their requirements.
Table -7
Utilisation Of Recreational Facility
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Opinion Yes No Not Answer TOTAL
Frequency Percentage 32 15 3 64% 30% 6%
50 100%
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Above table shows that there are 32 respondents utilizing it, 15 respondents are not utilizing it & 3 respondents are not giving any answer for this facility.
Table -8
Satisfied With Recreational Facility
Opinion (a) Highly satisfied (b) Somewhat satisfied ( C) Satisfied (d) Dissatisfied (e) Highly Satisfied TOTAL
Frequency Percentage 10 12 24 2 2 20% 24% 48% 4% 4%
50 100%
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Above table shows that there are 10 respondents from 50 are highly satisfied with the Recreational facility & 2 respondents from 50 are dissatisfied from the Recreational facility.
Table 9
Medical Facilities
satified with the medical facilities or not
or not?
Opinion
Frequency Percentage
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Yes No TOTAL
48 2 50
96% 4% 100
Table 10
Satisfy with the Housing Facilities
Opinion Yes No Somewhat No Answer TOTAL
Frequency Percentage 48 96%
1 1 50
2% 2% 100%
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Above table shows that 48 respondents from 50 are satisfy 1 is somewhat satisfy & 1 is not giving any answer.
Table 11
Canteen Facilities
Opinion Highly Satisfed Somewhat Satisfied Satisfied Dissatisfied Highly Dissatisfied TOTAL
Frequency Percentage 20 13 17 40% 26% 34%
50
100
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Above table shows that 20 respondents 50 are highly satisfied with facility & 17 are satisfied with the facility & no one is dissatisfied with the facility.
Table -
Satified with Transportation
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12
Facilities
Opinion Yes No TOTAL
Frequency
Percentage 48 96% 2 50 4% 100
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Above table shows that there are 48 respondents from 50 who are satisfying with the Transport facility & 2 from 50 are not satisfying with the facility.
Table 13
Participation In Management Decisions
no
Opinion Yes No No Answer TOTAL
Frequency 20 23 7
Percentage 40% 46% 14%
50 100%
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Above table shows that 20 respondents from are participating in Management Decisions, 23 are not participating in it & 7 are not giving any answer for it.
Table 14
Management Consider Employees Decisions
Opinion Yes No Somewhat No Answer TOTAL
Frequency Percentage 10 25 7 8 50
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20% 50% 14% 16% 100%
Above table shows that 10 respondents from 50 are believe that Management considering their decisions, 25 respondents are believe that mgt. not considering their decisions & respondents from 50 giving no answer regarding it i.e. 16% are not attempting question.
FINDINGS 1)Firstly, there are different age group who responding for the questioner. There are 6% employees, who are under 25 - 30 yrs,
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? 20% employees, who are under 50 - 60 yrs, ? 34% employees are from 30 – 40 yrs, ? 40% employees are from 40 – 50 yrs. 2) The respondents where, there are 45 i.e. 90% are males and 5 i.e. 10% are females who give answers for welfare facilities.
3)
There 10 employees who are working in company less than 10 years, ? 15 employees who are complete their service period between 10 to 20 years, ? 17 employees who are complete their service period between 20 to 30 years, ? And lastly 8 employees who are working in the company for more than 30 years but less than 40 years.
4) finance,
I collected questioners and received answers from material, personnel and HR department.
5)
There are many facilities provided to the employees i.e. both Statutory and Non- Statutory Welfare Facilities. This includes transportation, medical, lunch room, canteen, rest room, recreational, housing, township, co-operative societies, etc.
6)
There are 94% employees who are utilized of welfare facilities and 6% of employees who are not fully utilized of welfare facilities. Welfare facilities are satisfying employee’s requirements, and satisfy their needs. Here, 10% who believe that the facilities are more than there requirements provided by the company to them,
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7)
where 90% employees who said that yes the facilities are satisfy their requirements. 8) Here, 64% employees utilizing the recreational facilities, 30% employees said that they are not regularly utilizing and 6% employees have no opinion regarding the recreational facilities.
9)
In SAFARI UNIT, 96% employees have opinion that they are satisfied with the medical facilities & only 4% employees are not satisfied with the medical facilities provided by the company.
10) Here, 40% employees are highly satisfied with the canteen facility, 26% employees are somewhat satisfied and 34% employees are satisfied with the canteen facility.
11) There are 96% employees are satisfied with the transportation facility and 4% are not satisfied with the facility.
12) There are 40% employees who are participating in the management decisions, 46% employees are not taking participate in mgt.decisions, while there are 14% employees who are not give any answer regarding this question.
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13) There are 20% employees who believe that management considering their decisions,50% believe that management not consider their answers,14% employees said that there are somewhat answers are consider, while 16% employees are not give any answer regarding management consider their decisions or not.
SUGGESSTIONS
? Canteen should be in the administrative building place only and not away from it. ? The Lunch Room facility should be different from the conservancy arrangements. ? There must be Recreational facilities in the company premises so that it can give them motivation towards their work. ? Try to involve employees in management decisions by using suggestions scheme effectively and reduce the complaints of the employees related to it. ? Mostly employees are not aware about the welfare facilities i.e. both statutory and non-statutory. Though company provides very well facilities to the employees. ? Management has to give chance to the employees in participating the company’s decisions.
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? If possible, good and the decisions not create loss to the company then management has to consider / use the employee’s decisions. ? Management has to encourage employees for their career growth by giving opportunities to higher education employee and give facility to learn more during service period. ? Try to find out why some employees are not satisfied with canteen facility and solve the problems by taking necessary actions. ? There are not more safety measures for administrative department. ? All such facilities can help in the organizationto motivate the employee can also get the best quality of the production and optimum out of the HR.
CONCLUSION
From this study, I could understand the importance of the welfare facilities both Statutory & Non-Statutory. Safari Industries (India) Ltd. more than the Statutory Facilities i.e. stated in the Factory Act, 1948. And the employees are fully satisfying with the facilities provided by the management. So, HR manager’s role is to identify the employee’s needs and give them facilities which are required by them.
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Like this, providing Welfare Facilities increases the productivity of the company, image of the company, maintain relations between the management & the employees, and reduces the expenses, retaining the employees in the company.
Thus, Welfare Facilities are important part of the company to maintain workforce & efficiency of the work. In Safari Industries (India) Ltd., they are providing all essential facilities to the employees.
And mostly all the employees are satisfied with the Welfare Facilities provided by the management.
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