Draft

Title of Project Report

FINDING THE POTENTIAL OF THE ITW CONSUMABLES IN THE NORTH INDIA

WHERE ITW EQUIPMENTS ARE INSTALLED AND ALSO WHERE ITW

EQUIPMENTS ARE NOT INSTALLED.

I declare

(a)That the work presented for assessment in this Summer Internship Report is my own, that it

has not previously been presented for another assessment and that my debts (for words, data,

arguments and ideas) have been appropriately acknowledged.

(b)That the work conforms to the guidelines for presentation and style set out in the relevant

documentation.

Date: ……………

Abhinav Chugh

A0102211070

MBA – M&S

Class of 2013

1

CERTIFICATE

I, R.R. GHATAK , hereby certify that Abhinav Chugh , student of Masters of Business

Administration – Marketing & Sales at Amity Business School, Amity University Uttar Pradesh

has completed the Project Report on ― FINDING THE POTENTIAL OF THE ITW

CONSUMABLES IN THE NORTH INDIA WHERE ITW EQUIPMENTS ARE

INSTALLED AND ALSO WHERE ITW EQUIPMENTS ARE NOT INSTALLED, under

my guidance.

Dr. R.R. GHATAK

Assistant Professor

Department of Marketing

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ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible without the kind

support and help of many individuals and organizations. I would like to extend my sincere thanks

to all of them.

I am highly indebted to Mr. ANUJ AYRI for his guidance regarding the project & also for his

support in completing the project.

I would like to express my gratitude towards my faculty guide Dr. R.R. GHATAK for his

guidance and encouragement which helped me in completion of this project.

I would like to express my special gratitude and thanks to industry person, for constant

supervision as well as for providing necessary information and giving me such attention and

time.

My thanks and appreciations also go to my friends, parents and people in the market who have

willingly helped me out with their abilities in developing the project.

(ABHINAV CHUGH)

3

ABSTRACT

Topic of the Report

FINDING THE POTENTIAL OF THE ITW CONSUMABLES IN THE NORTH INDIA

WHERE ITW EQUIPMENTS ARE INSTALLED AND ALSO WHERE ITW EQUIPMENTS

ARE NOT INSTALLED.

Project Objective

1. To find identify and minimize the gap between consumption of ITW consumables and

equipment.

2. To find out the consumables' potential in the industry where the company's equipment is

already installed and potential customers.

3. To increase ITW's market shares in the consumables in northern sector in India.

Methodology to be adopted

1. SPIN - SITUATION, PROBLEM, IMPLICATION, NEED PAY-OFF.

2. APPLICATION SURVEY DOCUMENT ( questionnaire)

 Brief Summary of the project

ITW deals with both consumables and equipment.ITW Signode’s comprehensive packaging

solutions include products and services. Product offering encompasses strapping, wrapping,

taping, and protective packaging consumables, tools and equipment to apply the consumables,

and parts. A wide range of services include on - site packaging, on - site maintenance, preventive

maintenance, AMCs, field engineering, package testing and packaging design, audit and

consultancy.

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This project basically deals with finding out the Consumables’ Potential in the North

Areas/Industry where the Company's Equipment is installed and with Potential Customers with

the help of SPIN methodology (SPIN - SITUATION, PROBLEM, IMPLICATION, NEED

PAY-OFF) and Application Survey Document (questionnaire).

My project is to identify the areas and the industry (Customers) where ITW equipment’s are

being used but ITW consumables are not being consumed. Why there is a gap and why are the

customer not buying ITW consumables and how can we reduce this gap and increase ITW’s

market shares in the consumables sector in India i.e. to increase or start the consumption of ITW

consumables in the areas or industry where ITW equipment’s are installed.

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CHAPTER 1

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COMPANY PROFILE

ITW Signode India was incorporated as a private limited company in 1979. With active financial

and technical collaboration, the then Nagarjuna Signode started operations in 1984. In 1986,

Signode Corporation was acquired by Illinois Tool Works (ITW, US), a Fortune-500 company.

ITW being the main collaborator and largest shareholder, its name was changed to ITW Signode

India in 1992. Presently ITW holds 51% stake in the company. Today, ITW Signode India is a

multi-product, multi-location / market-oriented and profit-making company, gaining a reputation

for delivering world-class products in the areas of packaging machinery, equipment, systems and

consumables, engineered polymers, quality assurance products, electronic and mechanical

systems and components, industrial lubricants and specialty chemicals. It serves the key and core

sectors like aerospace, ship-building and repair, defence and electronics, apart from engineering,

food processing, fertilizers, petrochemicals, textiles, distilleries and breweries, consumer

durables and non durables and a host of other industries. The company set up an edge board

manufacturing unit at Silvassa in Sep.'95, which was part financed through a rights issue in

Nov.1995. During 1998-99, the formalities of the merger of Allied Coatings and Compounds

(100% subsidiary) with the company have been completed as per scheme of merger approved by

honourable high court of Andhra Pradesh. During 1999-2000, the company has decided to

withdraw from its Haldia project; due to review from international benchmarking identifying that

incremental market requirement can be satisfied by productivity and operational improvements

of existing manufacturing facility. Further restructuring programme implemented has begun to

provide significant benefits and enabled the company to achieve debt-free status and improve

profitability. Recently Illinois Tool Works Inc, US, has made an offer to acquire 11,209,354

fully paid-up shares of Rs. 10 each for Rs. 80 per share in cash. With this offer the parent

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company stake in the Indian subsidiary, ITW Signode India, will stand increased from the

current 51% to 100%. The Company is planning to set up a PET Strapping manufacturing unit

and Palletizing/Unitizing Polypropylene Strapping production line unit at Silvassa. The trial

productions have already commenced and commercial production is expected to commence

shortly.

1) Economic Industry Analysis

One industry that plays and a unique role by way of both creation of wealth through wide range

of manufacturing activities and also by way of preserving the wealth or value created by many

other industries is the Packaging Industry.

Apart from the huge value addition and employment involved in these activities, packaging has

served the Indian economy by helping preservation of the quality and lengthening the shelf life

of innumerable products - ranging from milk and biscuits, to drugs and medicines, processed and

semi-processed foods, fruits and vegetables, edible oils, electronic goods etc., besides domestic

appliances and industrial machinery and other hardware needing transportation.

Packaging, as distinct from mere “packing”, plays it’s most visible and catalytic role in a

modern economy with the widespread adoption of branding of products and development of

consumer preferences. To the extent that any consumer product is packaged in a manner that

meets the criteria of safety, convenience and attractiveness, it gains market share. In the

aggregate, packaging as a sect oral activity boosts consumption and economic growth.

The packaging industry’s growth has led to greater specialization and sophistication from the

point of view of health (in the case of packaged foods and medicines) and environment

Friendliness of packing material. The demands on the packaging industry are challenging, given

the increasing environmental awareness among communities.

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1.1) Packaging Industry: India

Total demand for flexible packaging in India’s two-tiered flexible market in 2010 approached

US$3 billion, representing 5% of world flexible packaging sales.

Overall flexible packaging demand in India has grown by an average of 22% per annum in the

five years to 2010, with the ‘organized’ sector seeing significant growth stimulated by recent

investments by a number of multi-national food processors and retailers. Over 1.1 million tons of

substrates were used in 2010 with paper, PE, BOPET and TQPP films accounting for 75% of

total volume.

The converting industry in India has a few large players with modern technology servicing the

‘organized’ sector, a vast number of less technically advanced smaller converters servicing the

‘unorganized’ sector and a few backward-integrated plants owned by major food groups. In the

last ten years the technical capability of the Indian converting industry has advanced

significantly with the latest technology from Europe, Japan and the US now in use, alongside

domestically made printing and laminating presses.

India export trade in converted flexible packaging has been growing, with customers in Africa,

the Middle East, USA and Europe all recognizing the quality available from some of the larger

converters. Imports of converted flexible packaging remain small and largely very low cost

products or specialist high-value retort packaging materials.

Chewing tobacco packaging accounts for 25 – 30% of all laminate volume used in the Indian

market. Confectionery, snacks and health and beauty products are also significant areas of use.

Environmental concerns and government legislators are increasingly guiding flexible packaging

choices.  One recent decree by the Supreme Court banned the use of plastic (BOPET) film in

chewing tobacco laminates in a joint attack on littering and the cancer causing tobacco products.

Encouraged by strong economic growth, stimulation in processed food production and retailing

and the growing personal disposable incomes of the 350 million middle-income earners in India,

will drive growth in the flexible packaging industry over the next five years averaging 15% per

annum through to 2015.

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Classifications ~ Packing Industry in India:

1) Functions of Packages:-

2) Classification of packaging:-

Byshape:-

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By methods:-

By contents:-

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Indian Packaging Industry Market:-

Demand for packaging of various different types continued to rise in India during 2010. This

upswing in demand was driven by high growth in volume sales of the majority of consumer

goods categories. The result of the launch of several new consumer goods in categories such as

soft drink, alcoholic drinks, dairy, home care products etc and the increase in volume sales of

packaged goods at the expense of unpackaged goods helped the overall packaging volume to go

up in Indian market.

Growth in more organised and modern retailing channels such as supermarkets and

hypermarkets was the main driver of this shift towards packaged goods. As these modern retail

outlets are better equipped to showcase packaged products compared to India’s traditional retail

outlets, the role of packaging in influencing purchasing decisions in-store is greatly increasing

and this has made packaging an even more important marketing tool than ever before.

The Packaging Industry is valued at INR 846 bn in 2010. In volume terms, the organized sector

accounts for the majority of the industry. 

The report begins with an introduction which gives a brief overview about the types of

packaging (by material). This is followed by the market overview section which discusses the

market size and the growth as well as market segmentation. The section also includes a portion

on the flexible packaging industry, its segmented consumption both in terms of volume and

value. It includes information regarding the EXIM market in value and volume terms. 

An analysis of the drivers influencing the industry growth includes rising income levels, growth

in the food and beverage industry, growth in the pharma industry, rise in the FMCG sector,

under-penetrated market and marketing trends. The key challenges identified include lack of

packaging machinery and rising paper prices.The competition section provides a comprehensive

picture about the competitive landscape of the industry. It includes brief profile of the major

players which incorporates their business overview, product overview and financials.

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Flexible packaging sees wider applications

Flexible packaging types are being widely adopted across several different product categories

such as beverages, home care, beauty and personal care, pet care and various other consumer

goods categories. With the use of packaged goods products trickling down from India’s large

cities into small towns and villages, the use of sachets and other small flexible packaging types

has seen very rapid growth as these tend to carry low unit prices and are affordable to India’s

rural masses.

Metal packaging grows, driven by urban consumption

In India, metal packaging is perceived as a premium and modern global packaging type,

especially the metal beverage cans widely used in carbonates. This is because of the higher price

of metal packaging compared to other packaging materials. The rising awareness of urban Indian

consumers of Western packaging formats, coupled with the increasing affordability of premium

packaging types is pushing growth in metal packaging. Both two-piece and three- piece metal

cans increased in unit volume in India during the review period, driven by rising demand in key

categories such as carbonates, alcoholic beverages, mainly beer, juices, dairy products, beauty

and personal care, home care and canned/preserved food.

Glass packaging stagnated during 2010 and was fast replaced by other packaging types such as

flexible plastic and rigid plastic, demand for glass packaging remained strong in categories such

as alcoholic drinks, hot drinks and beauty and personal care. For alcoholic drinks, glass

packaging has traditionally been preferred and hence the rapid volume growth in categories such

as beer led to increases in glass packaging over the review period. Glass offers excellent

moisture resistance and this helped it to remain strong in hot drinks categories. Beauty and

personal care manufacturers also continued to adopt glass packaging over the review period as

glass has high aesthetic value which lends products a premium image.

The rise in competition among consumer goods brand manufacturers and the increasing focus on

providing end consumers with the most convenient closures were among the key drivers for this

growth. Different packaged food categories such as sauces, dressings and condiments adopted

dispensable closures, a positive development from the usual plastic and metal screw closures

which were previously popular.

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1.3) Demand drivers of packaging industry in India:-

Containment: Most products must be contained before they can be moved

from one place to another. To function successfully, the package must

contain the product. This containment function of packaging makes a huge

contribution to protecting the environment. Faulty packaging (or under

packaging) can lead to spillages and result in major losses and serious

damage.

Protection and Preservation: Packaging plays a vital role in protecting

products as they go from the manufacturer to the consumer. Packaging is

designed to ensure that the product reaches the consumer in good

condition. The product is protected during transport and Distribution; from

climatic effects (heat and cold, moisture, vapour, drying atmospheres); from

hazardous substances and contaminants; from infestation.

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Supplementary Product Protection: Packaging can also provide

supplementary product protection. This may be achieved by forms of

cushioning such as shredded papers, sheets of corrugated paperboard,

foamed plastic or wrappings. Packaging therefore contributes to food safety,

quality and nutrition. Packaging technology has made major contributions to

advancing food science and food safety and reduction of food spoilage.

Communication: ‘A package must protect what it sells and sell what it

protects’. Modern methods of consumer marketing would fail were it not for

the messages communicated on the package. The information provided on

packaging allows the consumer to make informed decisions on the product’s

purchase and use.

Convenience: Packaging plays an important role in allowing products to

respond to the Demands and needs of modern consumers. Frozen food

packs, microwavable containers, wine cardboard casks, easy-open beverage

and food cans and aseptic cartons are good examples of convenience

packaging. These types of packaging reflect the demand for convenience

and quick food preparation in a way that guarantees freshness.

Environmental Aspects: Packaging reduces the amount of waste going to

landfill. Without The benefit of packaging to preserve food, a higher

proportion of food would become spoiled and consequently consigned to

garbage collection for land disposal.

Reduction of Pilferage: Packaging of a wide variety of products sold from

self-service Counters is designed to reduce stealing. The product may be

sold in a blister package sealed to a large paperboard backing. The large

card makes the package more difficult to conceal and steal.

Marketing Trends: Marketing trends are placing increasing emphasis on

the look, sales appeal and quality of retail packaging. Packaging helps sell

products by providing product differentiation and presentation, greater

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brand awareness and convenience. The continuously changing demands of

consumers will require higher quality graphics and promotional links

between graphics and advertising to support brand identities

1.4) Critical success factors of Packaging Industry in India:-

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UrbanizationModern technology is now an integral part of nation's society today with high-end package

Usage increasing rapidly. As consumerism is rising, rural India is also slowly changing into

An urban society. The liberalization of the Indian economy, coupled with globalisation and the

influx of the multi-nationals, has improved the quality of all types of primary and secondary

packaging.

Increasing Health Consciousness

As people are becoming more health conscious, there is a growing trend towards well packed,

branded products rather than the loose and unpackaged formats. Today even a common man is

conscious about the food intake he consumes in day-to-day life.

Low Purchasing Power resulting in Purchase of Small Packets

India being a growing country, purchasing power capacity of Indian consumers is lower; the

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Consumer goods come in small, affordable packages. Apart from the normal products packed in

flexible packaging, the use of flexible in India includes some novel applications not usually seen

in the developed world. A typical example of such applications is tobacco and betel nut-based

intoxicants and mouth fresheners catering to unique Indian taste.

Indian Economy Experiencing Good Growth ProspectsThe Indian economy is growing at a promising rate, with growth of outputs in agriculture,

Industry and tertiary sectors. Overall economic growth has proved to be beneficial for the

Consumer goods market, with more and more products becoming affordable to a larger section

of the population.

Increased Global &Rural Marketing Pushing Demand India comprises of a big rural market and there has been growing focus on rural marketing,

Low priced Sachets have proved to be extremely popular in smaller towns and villages, where

people do not prefer to buy larger packs due to financial constraints.

The global market is very volatile and the expectations of the buyers from the west are quite high

so as to withstand that demand Indian companies invest a huge amount of their revenue in the

packaging solutions. A world-class packaging solution also adds value to the overall product and

gives a competitive advantage.

Growth prospects of packaging industry:-18

Global plastic packaging materials and products market to reach US$262.6 billion by 2015,

according to Global Industry Analysts, Inc. demand for plastic packaging rebounded due to the

rising demand from the food and beverage and consumer retail products sector. Plastic materials

are fast becoming the preferred choice of manufacturers for packaging new products.

With the development of stronger and cost-effective materials with improved barrier protection,

and aesthetic qualities, plastic is expected to further encroach into the territories dominated by

metal, glass and paper packaging materials

The global plastic packaging market is a steadily growing market which is expected to follow a

modest growth rate in mature markets and a progressive above average growth rate in emerging

markets.

The global plastic packaging market will reach US$196.42 billion in 2012. The emerging

economies, which in total maintained positive growth during the crisis, will continue to register

strong growth, driving demand for sustainable, lightweight, user-friendly and enhanced plastic

packaging products in the coming decade. Plastics have increasingly replaced traditional

materials in the packaging industry because of their lightweight and superior functionality.

The global packaging industry will swell to almost US$820 billion by 2016 predicts Pira

International. Driven mainly by increasing demand for packaging in emerging and transitional

economies, a 3% pa growth rate will focus on board products and rigid plastics, with US$40

billion and US$33 billion in cumulative predicted growth respectively to 2016.

This growth is being driven by a number of broad trends such as growing urbanisation,

investment in housing and construction, a burgeoning healthcare sector and the rapid

development still evident in the emerging economies, including China, India, Brazil and some

eastern European countries.

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According to a research the US was the largest consumer for packaging in 2010 with a demand

of US$137 billion; China was close behind at US$80 billion. China is anticipated to surpass the

US by 2017, and India will enter the top ten packaging countries with its demand set to almost

double in the next five years to US$24 billion. Technological developments in packaging are

seeing an upswing in the consumption of bio-polymers in both rigid and flexible applications,

improved value adding in products with functional and barrier coatings, as well as enhanced

graphics, resource reduction by way of continuous light weighting across all materials, and other

developments. . Cosmetics packaging should grow 4.2% per year to reach US$24 billion.

2.1.7) Global Packaging Industry:-

Global packaging industry is worth US$ 424 billion and out of this Europe has US$127 billion,

Asia has US$114 billion, North America has US$ 118 billion, Latin America has US$ 30 billion,

and other countries have $US 30 billion.

In terms of global market percentage, the following countries are the leaders. This is primarily

due to the investments by the industries in these countries is much higher than that off the other

countries like India, Australia Etc. these countries are also the major customers for the packaging

solutions

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According to the materials used in packaging industry throughout the globe, paper shares the

most, 36%, metal is 17%, plastic takes 34%, glass takes 10% and other occupies 3%.

According to the type of packaged products, the following pie chart shows distribution of overall

packaging industry. Global market value on food packaging is 161 US$ billion, beverage

packaging is 76 US$ billion, Pharmaceutical packaging is 21 US$ billion, cosmetic packaging is

13.3 US$ billion and other is 153 US$ billion.

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The prime market driving this growth will be the Asia Pacific region with the likes of India and

China making swift progress in the medium to long-term period. The factors influencing this

growth are development of new age plastics, emergence of new applications, and the focus on

green chemistry due to legislative and environmental requirements.

Besides growing demand from the automobile, mining, chemical, construction and agricultural

industries, the Asia-Pacific market is propelled by trends such as globalization, demand for

durable products and urbanization. With rapid urbanization taking place in the region and

globalization happening because of the lucrative opportunities that the APAC market offers,

packaging sector is sure to grow by leaps and bounds in the times ahead.

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Major players

1. Parksons Packaging System

2. ITC Limited

3. Tata Tinplate Company of India

4. Hindalco

5. Moldtek Technologies Limited

6. Gujarat Glass Ltd

7. Advance Packaging

8. AMAC Plastic Packaging

9. E C Packaging Pvt. Ltd

10. The Paper Products Limited

11. Essel Propack Limited

12. Bliss Group Ltd

13. Deluxe Printing Machinery

14. LindPlast

15. Super Packer System

16. Twenty First Century Printers Ltd

17. Spick Global

18. Eden Hi Tech Films

19. Vacmet Packaging (India) Pvt Ltd

20. Sharda Packaging Industries

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Company Analysis

Organization Structure

25

26

3.1.1) HR Hierarchy Tree of ITW

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About the company

ITW Signode: Industrial Packaging Solutions

ITW Signode in India is a division of ITW India Limited, a subsidiary of Illinois Tool Works

Inc., USA (ITW).

Illinois Tool Works Inc. (NYSE: ITW) is a diversified manufacturing company with nearly 100

years of history delivering specialized expertise, innovative thinking and value-added products

to meet critical customer needs in a variety of industries. ITW has 875 decentralized business

units in 54 countries that employ approximately 65,000 women and men. These talented

individuals, many of whom have specialized engineering or scientific expertise, contribute to our

global leadership in patents. Our current number of patents and patent applications exceeds

21,000.

ITW’s Business

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Signode, a business unit of ITW, is a multinational manufacturer of packaging products with a

firm commitment to R&D and an enviable reputation of working with customers to save millions

in material and labor.

The Company offers customer specific packaging solutions and dedicated service support in

diverse sectors that range from metals, automotive, consumer goods, appliances, paper,

engineering, building materials, textiles, fibre, pharmaceuticals and other manufacturing

industries.ITWSignode in India is the leading Industrial Packaging solutions provider with

manufacturing facilities at Rudraram-Andhra Pradesh, Surangi-UT of Dadra & Nagar Haveli,

Pune – Maharashtra and Rudrapur - Uttarakhand.

ITW Signode’s comprehensive packaging solutions include products and services. Product

offering encompasses strapping, wrapping, taping, and protective packaging consumable,

tools and equipment to apply the consumables, and parts. A wide range of services include on -

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site packaging, on - site maintenance, preventive maintenance, AMCs, field engineering,

package testing and packaging design, audit and consultancy.

ITW Signode has partnered the Indian industry for over two decades to continuously upgrade

pack styles and packaging processes to international standards. The Company offers customer

specific packaging solutions and dedicated service support in diverse sectors that range from

metals, automobiles, FMCG, white goods, paper, engineering, building materials, textiles, fiber,

engineering and pharmaceuticals.

Signode, a business unit of ITW, is a multinational manufacturer of packaging products with a

firm commitment to R&D and an enviable reputation of working with customers to save millions

in material and labor.

PRODUCT SERVICES AND OFFERINGS

ITW Signode offers total packaging solutions to the Steel and Metals Industry. This includes hot

and cold mills, rod and bar applications, metal service centers, aluminum and other non-ferrous

Metals.ITWSignode’s product offering includes steel and plastic strapping, protective packaging

materials, and a full range of packing films and papers offerings corrosion protection. Container,

rail and ship lashing solutions ensure safe transit.

Products of ITW Signode

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ITW Signode designs manufactures and suppliers strapping tools and semi-automatic and fully

automatic packaging machines to apply these packaging materials. A highly focused parts and

service group offers customized service helping to lower your total cost of ownership. To meet

industry’s growing needs; we also offer printing & labeling systems and integrated warehouse

management solutions.

Services:-

ITW Signode's pre and post sales services include Contract Packaging, Field Engineering,

Machines & Tools Service, Maintenance Contracts, Training, Integrated Tracking and Logistics

Management Services and Returnable Transit Packaging Systems.

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ITW Signode, offers contract packaging to Key Customers. Contract Packaging can include

packing labor, total materials supply, equipment and administration, best practices. This enables

customers to focus on core activities, whilst at the same time benefiting from process

simplification, single point of contact, and zero packaging inventories. The array of services

provided by ITW is with par with industry specified standards. They have different solutions for

all the customers requires like Field engineering services sourcing segment specific knowledge

to value engineering

Locations in India

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Work force distribution

Location Employee Number33

AURANGABAD 2

Auto, Engineering and Paper 2

BALARSHAH 1

Auto, Engineering and Paper 1

BANGALORE 14

Accounts & Finance 1

Auto, Engineering and Paper 4

Customer Care 1

Distribution 1

Field Engineering 1

SIHO 1

WINTEK 5

BARODA 8

Automation Group 2

Customer Care 2

Distribution 2

Industrial Metals and Glass 2

BELPAHAR 1

Application Survey Document34

The work force distributions of important locations are mentioned here. The grand total of

the number of employees of ITW is 671 people distributed in different locations.

o Material Flow Layout – Block Diagramo Product Details:

a. Dimensions: Min, Max, Averageb. Weight: Min, Max, averagec. Photograph

o Productivity Details:a. Customer UOMb. Capacityc. Peak Output/Hour

o Manpower Detailsa. No of People Involved in Packaging Operation

o Packaging:a. Flowchart of Packaging Operation – Sequence Wiseb. Photographs of Packagingc. Current Packaging Consumables being Used – Specificationsd. BOM of Packaging – Quantity/Consumption per Unite. Current Equipment/Tools being Used

o Additional Details for Palletization:a. Final Pack Sizeb. No of Units/Palletc. Gross Weight per Palletd. Productivity: No of Pallets/Hour & Average Pallets per Monthe. Packaging Operations - Flowchartf. BOM of Packing

o Existing Material Handling: Forklift/Pallet Truck/Manualo Storage/Warehousing:

a. Maximum Stackingb. Use of Racks

o Truck Loading/Dispatch:a. Stacking during transportationb. Do they use any lashing/bracing material (Wire Rope, Strap, Wood, Air Bags)c. Does the customer Export? If yes, then how many containers per month?

o Competitor Details:a. Consumable Supplied & Name of Competitorb. Equipment/tools supplied & Name of Competitor

o Operator/User Feedbacka. Issues in Existing Packaging/Operationsb. Bottlenecks c. Their Ideas on Improvement

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SAMPLES OF APPLICATION SURVEY DOCUMENT

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1. Aaj Enterprises 09/05/12

Application Survey Document

o Material Flow Layout – Block Diagram

o Product Details:

Books packed in cartonsa. Dimensions: Min, Max, Average carton size 285 x 285 x 300 mmb. Weight: Min, Max, average

AVG = 15 kg to 20 kgc. Photograph

o Productivity Details:

a. Customer UOM : SKUb. Capacity: 16 lakh units of Inward & Outward movement of stocks per month

and maintaining a stock of 20,000 SKU’s.

c. Peak Output/Hour -varies a lot

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Company details:

Inbound Logistics:

Receipt of stocks, Checking & Inspection of the stocks, Stacking in Storage racks.

Warehousing of Stocks:

Warehousing of the stocks in storage racks and preserving them in good condition.

Picking:

Picking stocks from respective storage racks based on the Pick slips or instructions from customers

Cross-Check:

Checking out the stocks picked with the pick slip before packing activity

Packing:

Packing of the stocks picked.

Invoicing

Experience of handling complete invoicing procedure for clients. Depending on the needs and systems of the clients this facility is made customized and made optional.

Pan India Distribution:

Distribution of stocks anywhere in India. Owned transport facilities are available 24X7 for local distribution. For outstation deliveries : tie ups with transporters.

Reverse Logistics:

Checking, inspecting the goods received in the warehouse from the customer. Reconciling the stocks received with the customer statement (Dr. Note).

Promotion and non saleable material handling

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Such as brochures, journals or stock for exhibitions.

Man power

The following man power is provided for manning the above activities

Warehouse Manager Supervisor cum data entry operator

Picker

Packer

Security staff for Day & Night

Warehouse maintenance staff

o Manpower Details

a. No of People Involved in Packaging Operation = Max 3 & Min 2

o Packaging:

a. Flowchart of Packaging Operation – Sequence Wise

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b. Current Packaging Consumables being Used – SpecificationPp strap 1260 SBOM of Packaging – Quantity/Consumption per Unit = 2 rolls per day

c. Current Equipment/Tools being Used : MB2 machineo Additional Details for Palletization:

a. Final Pack Size : 26 inchb. No of Units/Pallet: 20 to 30 cartons per palletc. Placement Matrix on Pallet d. Gross Weight per Pallet: max 500 kge. Productivity: No of Pallets/Hour & Average Pallets per Month :

o BOM of Packing :

o Existing Material Handling: Forklift &Manual

o Storage/Warehousing:

a. Maximum Stacking :yesb. Use of Racks : yes

o Truck Loading/Dispatch:

a. Stacking during transportation : yesb. Do they use any lashing/bracing material (Wire Rope, Strap, Wood, Air Bags) :

Noc. Does the customer Export? If yes, then how many containers per month?

Yes .not disclosed.o Competitor Details:

a. Consumable Supplied & Name of Competitor Bopp :i. Seal n peal tape 1.5 inch width

b. Equipment/tools supplied & Name of Competitor : stretch wrap machine ( lantech)

o Operator/User Feedback

a. Issues in Existing Packaging/Operations: cost of pp strap & problem in one MB-2 machnine.

b. Bottlenecks c. Their Ideas on Improvement : new project , response awaited

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Gupta Metals 15/05/12

Application Survey Document

o Material Flow Layout – Block Diagram

o Product Details:

Copper and brass coilsa. Dimensions: Min, Max, Average

ID = 4 inch to 16 inchOD = 10 inch to 30 inchAVG ID = 8 inch to 12 inchAVG OD = 16 inch to 26 inchThickness = 8mm to 15o mm

b. Weight: Min, Max, average

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20 kg to 40 kgAVG = 25 kg to 40 kg

c. Photograph

o Productivity Details:

a. Customer UOM : tonsb. Capacity : 40 to 80 ton per month / min 1000 coils / 650 – 800 ton per yearc. Peak Output/Hour -varies a lot

o Manpower Details

a. No of People Involved in Packaging Operation = 25 lower level employees + 5 (superior)

o Packaging:

a. Flowchart of Packaging Operation – Sequence Wise

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b. Current Packaging Consumables being Used – SpecificationPp strap, Tenax 1716 (.52 mm thickness), Apex 1215(.38 mm thickness),strapping seal

c. BOM of Packaging – Quantity/Consumption per Unit i. 14 pallets in 1 coil of Tanex or 28 metre Tanex strap per pallet

ii. 1 complete bopp roll per palletiii. Almost more than 1 metre pp strap per coil.iv. LDP 30 – 75 kgv. 20 metre corrugated paper per pallet

d. Current Equipment/Tools being Used : tensioner , sealer , cutter , msto Additional Details for Palletization:

a. Final Pack Size : 28 inchb. No of Units/Pallet: 12 to 15 coils per pallet depending upon weightc. Placement Matrix on Pallet d. Gross Weight per Pallet: 1 tone. Productivity: No of Pallets/Hour & Average Pallets per Month : 25 pallets per

weak/ 80 pallets per monthf. BOM of Packing : (2+4) 28 m tanex per pallet and

o Existing Material Handling: Forklift &Manual

o Storage/Warehousing:

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a. Maximum Stacking :3 layer , yes (3days)b. Use of Racks : No

o Truck Loading/Dispatch:

a. Stacking during transportation : yesb. Do they use any lashing/bracing material (Wire Rope, Strap, Wood, Air Bags) :

Noc. Does the customer Export? If yes, then how many containers per month?

LOCAL (Mumbai, Gurgaon, Chennai, Delhi)o Competitor Details:

a. Consumable Supplied & Name of Competitor Bopp :i. wonder tape 2 inch width

ii. LDP, corrugated paper and stretch film local companyiii. YBICO ( pp strap)

b. Equipment/tools supplied & Name of Competitoro Operator/User Feedback

a. Issues in Existing Packaging/Operations: mst table top strength.b. Bottlenecks c. Their Ideas on Improvement : happy with current products

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KRBL

Application Survey Document

o Material Flow Layout – Block Diagram

o Product Details:

Rice(basmati) in packings of 1kg and 2kg in carton of 20 kg each or sacks of 5kg, 10kg, 20kg, 25kg, 45kg

a. Dimensions: Min, Max, Average Avg carton size : 285 x285 x330 mm (HxWxL)

b. Weight: Min, Max, average Avg weight: 20 kg per carton and 1 ton per pallet, SACK weights mentioned above

c. Photographso Productivity Details:

a. Customer UOM : tonsb. Capacity : 200 – 300 ton per day

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c. Peak Output/Hour – 1.5 ton per hour ( as one pallet is ready in 40 mins)o Manpower Details

a. No of People Involved in Packaging Operation = 10 to 12

o Packaging:

a. Flowchart of Packaging Operation – Sequence Wise

b. Current Packaging Consumables being Used – Specification i. None ( all competitor)

c. BOM of Packaging – Quantity/Consumption per Unit d. Current Equipment/Tools being Used :

o Additional Details for Palletization:

a. Final Pack Size : 1000x1200x1000 (H x L X W)b. No of Units/Pallet: 50 cartons of 20 kg each per pallet , in case of sacks it

varies on weight of each sackc. Placement Matrix on Pallet d. Gross Weight per Pallet: 1 ton to 1.2 ton

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e. Productivity: No of Pallets/Hour & Average Pallets per Month : 250 - 300 pallets per day/ 9000 pallets per month

f. BOM of Packing : 22 meter pp strap per pallet , 22 meter corrugated paper per pallet and

o Existing Material Handling: Forklift trucks & automatic cranes

o Storage/Warehousing:

a. Maximum Stacking :3 layer , yes (3days)b. Use of Racks : NO

o Truck Loading/Dispatch:

a. Stacking during transportation : yesb. Do they use any lashing/bracing material (Wire Rope, Strap, Wood, Air Bags) :

Noc. Does the customer Export? If yes, then how many containers per month?

Yes . details not giveno Competitor Details:

a. Consumable Supplied & Name of Competitor Bopp :i. 22 meter pp strap per pallet

ii. .57 meter per carton / 24000 meters per day/ 6000 meters or 2 rolls per machine per day.

iii. Stretch film 25 sq mt per palletiv. 1 bopp roll per palletv. Mahastrap 9mm width,

vi. Hindustan edisel bopp 1.5 inch ,

b. Equipment/tools supplied & Name of Competitor : Lantech stretch wrap machine ( semi automatic) turntable,

o Operator/User Feedback

a. Issues in Existing Packaging/Operations: b. Bottlenecks c. Their Ideas on Improvement : scope for mimalite and pp strap tools and pp strap

( 100 rs diff ) from mahastrap

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NAMES OF ORGANIZATIONS/ COMPANIES VISITED

S.NoNAME OF THE ORANIZATION / COMPANY

ITW EXISTING CLIENTS

1 AAJ ENTERPRISES , GREATER NOIDA YES2 NEEL METALS (JBM GROUP) YES3 GUPTA METALS YES4 ARCOTECH NO5 DENSO NO6 BEST KUKI YES7 GROZ NO8 UFLEX (NOIDA) OLD , NOT NOW9 HMD YES

10 NEW ALLENBERRY WORKS YES11 KRBL (DOMESTIC LINE) YES12 CHW OLD , NOT NOW13 KRBL (INTERNATIONAL EXPORT LINE) YES14 KANODIA TECHNOPLAST YES15 SUNBEAM AUTO WORKS NO16 WRITER LTD NO17 OMAXE YES18 TILDA RICE YES19 SONA KAYO NO20 SUNNY EXPORTS NO21 RD TEXTILES NO22 SHIV COTEX YES23 SHEENA EXPORTS OLD , NOT NOW24 N.A.N WOLLEN EXPORTS NO25 SUNSTAR YES26 LT OVERSEAS YES27 BUSH FOODS NO28 ASIAN PAINTS OLD , NOT NOW29 HARISON AND HARILAL OLD , NOT NOW30 MEDLEY PHARMA YES31 CADILA PHARMA YES32 IND SWIFT NO33 GULATI OIL MILL NO

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34 DABUR (BARIBRAHMANA NO35 KASHMEER WALNUT YES36 J.K. OIL MILLS YES37 CHENNAB TEXTILES YES38 SUMIL CHEMICALS YES39 GARA CHEMICALS YES40 RECKITT BENKISER (SAMBA) NO41 JIARP NO42 UFLEX (BARIBRAHMANA) YES43 COROMANDAL NO44 VARDHMAAN NO45 MAX FILMS NO46 SONALIKA (INTERNATIONAL TRACTORS) YES47 CADBURY YES48 PHILIPS YES49 HAWKINS NO50 EMCURE PHARMA YES

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ANALYSIS

EXISTING CLIENTS NEW CLIENTS/POTENTIAL CLIENTSOLD CLIENTS AND NOT NOW

25 20 5

50

POTENTIAL OF VARIOUS ITW CONSUMABLES

1. MIMALITE (STRETCH FILM)

2. PP strap

3. BOPP TAPE &CSM ( CARTON SEALING MACHINE)

4. MB series

5. MST (MACHINE STRAPPING TOOL)

6. TENAX

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(A). UNDER EXISTING CLIENTS (SAMPLE SIZE 25

(a) Potential for MIMALITE

NO POTENTIAL POTENTIAL FOR MIMALITE11 14

(b) Potential for PP Strap

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NO POTENTIAL POTENTIAL FOR PP Strap4 21

(c) Potential for BOPP TAPE AND CSM (FTM 550)

NO POTENTIAL POTENTIAL FOR CSM & BOPP TAPE8 17

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(d) Potential for MB series (MB-1 & MB-2)

NO POTENTIAL POTENTIAL FOR MB SERIES4 21

(e) Potential for MST

NO POTENTIAL POTENTIAL FOR MST15 10

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(f) Potential for TENAX

NO POTENTIAL POTENTIAL FOR TENAX5 20

BIBLIOGRAPHY

Electronic resources:-

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1) The Indo-Italian Chamber Of Commerce, 2008. Report On Packaging Industry In India.

West Bengal.

2) Madras Consultancy Group, 2001. The packaging industry in India. Chennai

3) Economy Watch, 2010, Packaging Industry Growth. India

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