Cosmo PPT

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Cosmo Films Limited

Market Orientation

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About

Cosmo Films Ltd, one of the global leaders and

manufacturers of Bi-axially Oriented

Polypropylene Films (BOPP) was established in

the year 1981

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Mission

Cosmo will seek global market

Leadership Development and growth inoriented films and Thermal Film will be our

focus. We will continue to create a winning culture,

operating in the highest standards of ethics

and values. We will strive for excellence in customer

service, quality and R & D.

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Objectives

Short term objective: Increase the domestic

demand, cost reduction, integrated production

and distribution plan

Long term objective: Increase global presence,

quality on international standard, customer

satisfaction.

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Biaxially Oriented Polypropylene (BOPP) Film

Unique combination of properties such as better shrinkage,

stiffness, transparency, sealability, twist retention and

barrier.

Its high clarity and low haze help producers of film or

packagers to create glossy, high-transparency film that

enhances the appearance of packaging or other products.

Used in variety of applications including: flexible packaging,

pressure sensitive tape , printing and lamination, stationary,

flower sleeves , cable wrap and insulation

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Product

Two Categories:

Plain non-heat Sealable

Co-Extruded heat sealable

ProductDetails.doc

For details : http://www.cosmofilms.com/?q=productdetails&cat_id=1#21

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1976

On Oct 7, Cosmo is incorporated to manufacture BOPP (biaxially

oriented polypropylene)

Used in Packaging and electronic applications

First Unit in India to produce BOPP

1976-1995

Mainly Focused on Short Term Goals like monthly and quarterly

sales and profits reports

Delegation of authority was Limited and whole organization was

depended on Jaipuria for any major decisions

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1995 onwards

Planned the Long Term objectives and took major steps which

includes-

Withdrew Himself from day to day functioning

Insulation of company from any outside Business fluctuations

Appointment of Seniors and Professionals at Top Management

Levels

Formation of Strategic Planning Group (SPG) and appointed Sushil

K. Mittal, transferred G.D. Agarwal (Head to Technical Function)from Aurangabad Plant to Delhi as members of SPG

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1996-97 situation

60 % technology imported from DMT, France

Long term debt 20.47 crore at interest rate of

14%-22% (march 1992)

July 1995 conversion of debenture fell by 73%

Interest amount 6.9 crore

Cost of line iii 39 crore. 1996-97 only 41 pc with data transfer through

floppies. Therefore lack of data compliation.

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1996-97 situation cont..

Majority domestic market

Client share

Unable to meet international quality standard

ISO9001 certified 1994, Indian star of packaging

1995 R & D expenses 40.69 lakh in 1994-95 to 86 in

1996-97

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1997-98 Crises

Stress within organization

Unable to cater customer want

Improper target setting

Poor sales collection

Production downtime, conversion ratio and rejectionswere high

Increased competition resulting in lower profit margin,reduce in price

Drained cash reserves Lack of motivation and low confidence within

employees

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Performance

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Sales

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Price Strategy

Minimizing losses

Standard business process

Lost communication cost Lowering freight cost both in domestic and

export.

Logistic planning and management Increased efficiency, advance technology

resulting in lower operational cost

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Price strategy cont..

High price realization for customized product.

Transparent and quality communication

Gov. incentives for exportIndicator 1997-98 1998-99 1999-00 2000-01

No. of Employee 633 509 (19.5%) 304 (40.2%) 298 (1.97%)

FG inventory 398 284 (28.64%) 154 (45.77%) 92 (20.77%)

WIP inventory 31 19 (38.70%) 70 (268.42%) 51 (27.14%)Total Inventory 429 303 (29.37%) 225 (25.74%) 143 (36.44%)

Rejected return as

per of sales

2.30 1.86(19.13%) 1.64 (11.8%) 1.09 (33.53%)

Communication 89 85 (4.44%) 65 (23.52%) 55 (15.38%)

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Demand

Indicator 1997-98 1998-99 1999-00 2000-01

Export of BOPP 1800 1950 (8.3%) 2850 (46.15%) 3950 (38.59%)

Projected

demand

2665 3140 (17.82%) 3700 (17.83%) 4350 (17.56%)

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Demand cont..

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Demand cont..

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Recommendation

Focus on International Markets as Indian sub-

continent consist of only 4% of global demand.

Explore new material by enhancing R&D initiative

Build larger plants thereby increase production

Customer oriented development and marketing

Reduce cost of production and distribution

Explore other international market

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GETA Corp vs CosmoGETA Corp Cosmo

Area of Focus is External Factors Area of focus is organizational structure

and process .

Concentrated on Large profits Concentrated on International markets and

Customer relationships

Defined Market on the basis of Product &

demand

Defined Market on the basis of Volume &

risk involved in payment schedules

Focusing on different prices acc. To

different environment for realizing higher

sales

Pricing is not the focused parameter .

(Because price realization is higher.)

Focusing on quality improvement forrealizing higher sales

Internal communication between

geographically diversified units was

improper

Well organized communication between

various segments

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GETA Corp Vs Cosmo

GETA Corp Cosmo

No emphasis was laid on overcoming the

problem occurring due to role overlaps

All workforce was organized keeping into

consideration that roles do not overlap

and proper division of sections was made

Objectives laid were just monitory and

customer value was not the prime focus

Business objectives were laid with a focus

on customer value

Sales oriented marketing concept leading

to marketing myopia

Market oriented approach was followed

Not a major emphasis on R&D R&D was emphasized upon and proper

integration was there with application cell