A A F F I I N N A A L L P P R R O O J J E E C C T T R R E E P P O O R R T T O ON NS SAL L E E O OF F P PACK KAG GI IN NG G P P R RO OD DU UC CTTS SSU UBM MI IT T T E E D D B Y Y N NI IT T I IN N T TR R I IP P A AT TH H I I 0 0 9 9B BS S0 0 0 0 0 0 1 1 4 4 8 80 0 1 1 4 4 M MA AY Y 2 2 0 0 1 10 0 M M&C P PA AC CK KA AG GI I N NG
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Project work is never the task of an individual. It is a combination of ideas, suggestions
and contributions. I take this opportunity to sincerely thank all those who have helped usand contributed in this initiative with their suggestions, guidance and support so that we
could culminate the assignment successfully.This project would have been a lot more difficult if I was not assisted by these people. At
the initial stage it was difficult for me to go about things because everything seemed to bequite tough and new for me but with the assistance of my company guide it became very
easy and at the same time a great learning experience.I always feel that I could not give enough time to my faculty guide because of the work
but I really appreciate the manner in which he treated me any time I went for his help andsupport. He was always eager to know and understand my project and its progress and
encouraged me to do things well and if there was any help required he was always there.It is my obligation to acknowledge and thank them for their help.
a) Mr. Jatin Khannab) Dr. Jamshed modic) Mrs. Tressa dmelo
1.3 Label Dispensers and Label Applicators ……………………………………….91.4 A Cartoning Machine…………………………………………………………..12
1.5 Types of Cartons……………………………………………………………….121.6 Blister Pack ………………………………………………………………… ....13
1.7 Corrugated Fiberboard ……………………………………………………… ...141.8 The Vertical Form Fill Sealing Machine (FFS) ……………………………….14
1.9 Shrink Wrap……………………………………………………………………151.10 A Conveyor Belt (or belt conveyor)....................................................................17
1.11 Limitations of the Project …………………………………………………… ....19
1.12 Suggestions……………………………………………………………………...21
2 . Main Text……………………………………………………………………… ....22
2.1 Packaging Industries of India…………………………………………………....232.2 New Trends in Packaging Industries…………………………………………….252.3Japan - The Largest Packaging Machine Producer……………………................26
2.4 Latest Buzz and Issues of Packaging…………………………………………….28
This internship project is to educate customers about the new packaging equipments
which are available with our company and which are quite useful in increasing the
productivity of the products. To provide complete packaging solutions and all packaging
needs to our global customers, be it machinery, accessories or consumables.
Till date I have visited many companies where I got a chance to meet with the top level
corporates of some of the best companies in India. My company guide Mr. Jatin Khanna
expressed his desire to focus on the top level Pharmaceutical companies as well as the top
10 FMCG companies in India. The corporate people are not easy to contact with so a
number of phone calls have to be made to fix with an appointment. They can be from
different departments like packaging ,production ,purchase or procurement. These people
work in a group and they take a final decision for the machine only after having a fruitful
discussion with their team members and this is because the project completion with any
company takes time.
There are a number of corporate people of good companies to whom I have sent emails or
sent the hard copy of catalog through courier to have a better insight of our company and
the products we deal with. Many have come up with good responses, few are taking their
time and some don’t have any requirements at present. Our Top class reference list is the
best USP of our company which helps a lot when we represent ourself in differentcompanies that we follow. It gives me immense proud and happiness when I
communicate this reference list with other customers and feel great to be a part of such
good company.
I always try to spread the name of my company to as many companies as possible
because to have a better sale of the products the other party should be aware of the name
and brand of the company and then subsequently they feel quite acquainted and familiar
with the name to give a final order for the machine. The next page has the list of the
companies and the person to whom I have met uptill now.
Packaging may be looked at as being of several different types. For example a transport
package or distribution package can be the shipping container used to ship, store, andhandle the product or inner packages. Some identify a consumer package as one which is
directed toward a consumer or household.
Packaging may be described in relation to the type of product being packaged: medical
device packaging, bulk chemical packaging, over-the-counter drug packaging,
retail food packaging, military materiel packaging, pharmaceutical packaging, etc.
It is sometimes convenient to categorize packages by layer or function: "primary",
"secondary", etc.
Primary packaging is the material that first envelops the product and holds it. This
usually is the smallest unit of distribution or use and is the package which is in direct
contact with the contents.
Secondary packaging is outside the primary packaging, perhaps used to group primary
packages together.
Tertiary packaging is used for bulk handling, warehouse storage and transport shipping.
The most common form is a palletized unit load that packs tightly into containers.
These broad categories can be somewhat arbitrary. For example, depending on the use,
a shrink wrap can be primary packaging when applied directly to the product, secondary
packaging when combining smaller packages, and tertiary packaging on some
with varying sizes and features which are often specific to the type of label they can
dispense and to the degree of automation desired.
The labels are applied by either manual application or automatic application. Automatic
application are basically of two types, tamp on or wipe on.
Label dispensers have many uses. Imagine how many items you purchase have labels,
almost everything. Those labels were either applied by a machine or by hand, and most
likely were peeled from the backing paper using some sort of label dispenser. Some of
the more popular are bulk mailing, manufacturing, packaging, food and beverage, fast
food, photo labs, and more.
Patents on Manual label dispensers go back to the 1920s. They are designed for light-
duty use. They are operated by hand and are not automated, but still assist in the process
of removing labels from their liners. Many manual label dispensers can dispense multiplerolls at once. Operation is performed by pulling the liner/backing paper around a plate or
bar which causes the label to peel away from the backing paper. This happens because
the backing paper is usually thinner than the label itself and is also underneath. When the
liner is forced around a tight radius the label lifts away and protrudes through the front or
top of the dispenser.
Electric Semi-automatic label dispensers were first patented in the early 1970s. They
were originally designed for multiple-row address labels for bulk mailing houses. On
average a good mailing house employee could apply approximately 500 labels per hour
to envelopes. The label dispenser increased this to over 2,000 per hour. These dispensers
advance individual or multiple-row labels and remove them from their lining similar to a
manual dispenser, but instead of manually pulling on the liner, label advancement occurs
when a trigger on the dispenser detects the absence of a label, such as when the operator
removes the label. The sensor then closes the circuit and engages the motor, dispensing
the next label until the sensor once again detects the label which opens the circuit. The
first electric dispenser was designed with the limit switch on the left of a 16" wide
machine. 4-up multiple-row labels were loaded into the machine and once activated
would advance one row of labels. The operator would take the labels from right to left, so
that when the leftmost label was taken, the next row advanced, automatically providing a
constant supply of labels to apply. The labels are also peeled without the natural curl that
will happen when pulled from the backing paper with fingers. Also, only one hand was
needed to take the label, the other hand could be used to move the material the label was
Semi-automatic label dispensers are often built to withstand industrial conditions
Motor: The motor automates the label dispenser and controls the speed at which
labels are dispensed.
Feed-Roller: This actually is the first patented method used in the semi-automatic
label dispenser to advance the label forward. The label material is fed over the
peeling edge, then through a feed-roller assembly which pinches the label material
between a metal roller and a rubber roller. The metal roller is held in place with
bushings pressed into aluminum blocks which hinge on a rod supported between two
sideframes. The blocks use springs on each side to hold tension against the rubber
roller (driven by a motor), and this also holds the tracking of the label material to the
side of the machine with the sensor. Using this method label stock up to 16" width
can be advanced and tracked perfectly. The disadvantage/advantage to this method is
waste is not collected, but pushed out through the rear of the machine where it can be
fed into a trash receptacle.
Take-up hub/spool: This can take the place of the feed-roller. The take-up hub
consists of a bar and a liner holder/clip, which are connected to the motor on a single
side-frame. In operation, they turn in sync with the motor and wind the label liner in
order to collect it in one place. As the take-up hub turns, pressure is placed in the liner
and it is stretched across the strip plate, where peeling, or separation, occurs.
Strip plate: A component of the machine which acts as a separator for the label and itsliner. Each label is pulled across the strip plate until it is recognized by a photo sensor
or limit switch. Strip plates can be of varying design and material, but they are often
made of plastic, metal coil, or aluminum.
Photo detector or Limit switch: Used to trigger label advancement. Every semi-
automatic label dispenser is equipped with one or the other. These detect the absence
or presence of a label to facilitate dispensing.
Limit switch: This is the original method of label detection and can be used for most
applications, it can detect a wide variety of labels.
Photo detector / Electric eye: Is an alternate method which uses a beam of light
broken by the label as it passes over/between the sensors. It can be used for many
different label types, but transparent material is an issue.
formed base web creating the cavity inside which the product fits and 2) the lidding foil
for dispensing the product out of the pack. There are two types of forming the cavity into
a base web sheet: thermoforming and cold forming.
Corrugated Fiberboard
It is a paper-based material consisting of a fluted corrugated sheet and one or two flat
linerboards. It is widely used in the manufacture of corrugated boxes and shipping
containers.The corrugated medium and linerboard are made of containerboard, a paper-
like material usually over ten mils (0.010 inch, or 0.25 mm) thick. Paperboard and
corrugated fiberboard are sometimes called cardboard, although cardboard might be any
heavy paper-pulp based board.
The Vertical Form Fill Sealing Machine (FFS)
It is a type of automated assembly-line product packaging system, commonly used to in
the packaging industry for food, and a wide variety of other products. The machine
constructs plastic bags out of a flat roll of plastic film, while simultaneously filling the
bags with product and sealing the filled bags. Both solids and liquids can be bagged using
this packaging system.The typical machine is loaded with a continuous flat roll of plastic
film, which has had labeling and artwork applied to the exterior or interior of the film.
Note that while plastic is the most commonly used packaging material in the food
industry, the technology can also be used to form continuous paper and fabric product
containers by changing the edge sealing/seaming methods.For some products the film
may first be fed through a sterilizing chemical bath and dryer prior to use in the
packaging system.The film approaches the back of a long hollow conical tube, and when
the center of the plastic is near the tube, the outer edges of the film form flaps that wrap
around the conical tube. The film is pulled downward around the outside of the tube and
a vertical heat-sealing bar clamps onto the edges of the film, bonding the film by melting
the seam edges together.To start the bagging process, a horizontal sealing bar clampsacross the bottom edge of the tube, bonding the film together, and cutting off any film
below. The sealed tube end is then lowered onto a precision weighing table and the
product to be bagged is dispensed through the long conical tube in the center of the
bag.When the tare weight of the product-filled bag is reached, filling stops, and the
horizontal sealing bar seals the top of the bag, and simulatenously forms the bottom of
the next bag above. This bag is then cut off from the tube and is now a sealed package,
ready to advance onward into the product boxing and shipping processes.
During the final sealing process, the bag may be filled with air from a blower or from
an inert gas supply. Inflating the bag helps reduce the crushing of fragile products such
as potato chips, while inflating with an inert gas helps drive out oxygen and retards the
growth of bacteria that would spoil the product.Dual web systems are also available for
four side sealed pouches, as well as pouches requiring different materials for each side.
Dual web systems use two rolls of material instead of one, which are fed in from opposite
sides of the machine. The bottom and sides are heat sealed together to form the pouch,
and the product is loaded from the top. The pouch with loaded product then advances
downwards and the top is sealed and pouch is cut off. The sealing of the top of the pouch
forms the bottom of the next pouch. During this process a tear notch may be added.The
feeding of material and cutting of the pouch can be determined either by pouch length, orindexing to an eyespot, which is detected by a visual sensor.While single web systems are
popular for food applications, the dual web four side seal system is often popular for IVD
and Medical device products.Closely related is the horizontal form-fill-seal machine,
which is generally uses more floor space than a vertical system.Modern advancements in
pouch forming technology have allowed for smaller and smaller Vertical pouch forming
systems.
Shrink Wrap
Shrink wrap, also shrinkwrap or shrink film, is a material made up of polymer plastic
film. When heat is applied to this material it shrinks tightly over whatever it is covering.
Heat can be applied with a hand held heat gun (electric or gas) or the product and film
can pass through a heat tunnel on a conveyor.
Shrink wrap is commonly used as an overwrap on many types of packaging,
including cartons, boxes, beverage cans and pallet loads. A variety of products may be
enclosed in shrink wrap to stabilize the products, unitize them, keep them clean, add a
degree of tamper resistance, etc. It can be the primary covering for some foods such as
cheese and meats. It is also used to cover boats after manufacture and for winter
storage. Heat-shrink tubing is used to seal electric wiring.
Shrink bands are applied over parts of packages for tamper resistance or labels. It can
The most commonly used shrink wrap is polyolefin. It is available in a variety of
thicknesses, clarities, strengths and shrink ratios. The two primary films are either
crosslinked, or non crosslinked. Other shrink films include PVC and several other
compositions.
Coextrusions and laminations are available for specific mechanical and barrier properties
for shrink wrapping food.
Current trends are to improve film properties which may lead to reduced caliper (source
reduction) and to improve process efficiency (cost and energy savings).
A shrink film can be made to shrink in one direction (unidirectional or mono-directional)
or in both directions (bidirectional).
Films are stretched when they are warm to orient the molecules from their initial random
pattern. Cooling the film sets the film's characteristics until it is reheated: this causes it toshrink back toward its initial dimensions.
Prior to orientation, the molecules of a sheet or tube are randomly intertwined like a bowl
of spaghetti. The molecules are coiled and twisted and have no particular alignment.
However when a draw force is imposed, the amorphous regions of the chains are
straightened and aligned to the direction of orientation. By applying proper cooling, the
molecules will be frozen in this state until sufficient heat energy is applied to allow the
chains to shrink back. One can visualize this phenomenon by stretching a rubber band
and dipping it into liquid nitrogen so as to freeze in the stretched state. The band willremain in this state as long as it is kept at sufficiently cold temperatures. However, when
enough heat energy is applied, the rubber band will shrink back to its original relaxed
state. Orientation on a commercial scale can be achieved using either of two processes: a
tenterframe or a bubble process. Tenterframe technology is used to produce a variety of
―heat-set‖ products, with BOPP being the most common (Heat-setting is a process
whereby a film is reheated in a constrained state such that the shrink properties are
destroyed). The second commercial process is the bubble process, sometimes referred to
as the tubular process. In this process, a primary tube is produced by either blowing or
casting the tube onto an external or internal mandrel, respectively. It is common to use
water to help cool the primary tube at this point. After the primary tube has been cooled,
it is then reheated and inflated into a second bubble using air much like a balloon is
blown. Upon inflation, the tube is oriented in both directions simultaneously. The family
of shrink films has broadened over the years with many multilayer constructions being
sold today. The key attributes which are important to shrink films include shrink,
i) The Secondary Data collected are many times wrong
The database which is collected by us comprising the company location and completemailing address is many times not correct, especially the phone no’s which keep onchanging so we have to make a number of calls to get the correct number.
ii) Error in contacting the concerned person
Many times it happen that we go on in discussion with a wrong person who is not directlyconcerned with the packaging machines and it results in the wastage of time and no result
comes out at the end. In some cases the contacted person hides the details of the concernedperson thinking it to be of lesser importance to them .
iii) Delay in actions taken by both the parties
In many cases it happens that the contacted customer takes too much time in ending theproject and simply delay in their actions which badly affect the progress of the project. In
other cases it can be from our part also where we delay in understanding the exactneeds of the customer and also delay in sending them the exact quotation.
iv) Customers think Foreign companies fail to give better servicing
I have realized that many of the customers have in their minds that the foreign companiesare not able to provide with the best of the servicing and this is because they switch to
other local companies
v) Customer hiding the exact details of the product
Many times it happens that the customer is in a hurry to get the quotation as soon as
possible for having a general idea and for this he hides certain important details which arevery important to get the correct quotation as well as correct price.
vi) Price focused customers
During my project work I have rea lized that most of the customers are mainly focused on
prices and they simply don’t try to understand on the functionality part of the machine and
they end up taking an cheaper machine with low functionality .
There is a lack of analysis to be done regarding our competitors database , which all
products they are dealing with and a perfect table match with the prices that they are
quoting for the same machine. This can help us in matching up with the price level of other companies along with maintaining a good quality and servicing.
viii) Lack of Marketing and Branding exercise
There should be a much more emphasis on the marketing of the company name and the
products so that the name of the company stays in the mind of the customer to have dealfurther .I have basically tried to work on this aspect.
ix) Come up with some promotional strategy
Here we can come up with some kind of materials which could be handed over to the
contacted person at the time of meetings. In this case for example we can provide a penwith a name of M&C Packaging at the time of meetings so that they can have the brand
Actually this problem is not easy because the non-official as well as the official
company websites from where we pick these data are not updated many times so
we land up getting wrong data but yes we can minimize these errors by using new
edition magazines and directories related to pharmaceutical and food industries as
we are doing presently.
Lack of Marketing and Branding exercise
We can improve on our company website because many people can be impressedonly by looking to a decent and standard website where customers can see all the
product line and have an option to order the products online by submitting all the
details and specifications of the machine on the website column. This is the best way
to get a competitive advantage over some other players. we can also show our year
wise performance of the company and sales targets achieved in that particular year
along with an upward going graph. Only if the customer hits the company website
once he should not be requiring anything else. It should be of that class that we
should only try to focus our website everywhere and no need to do anything extra.
Come up with some promotional strategy
I am listing some good ones as follows , some of them can be taken up
A transparent globe with a name of M&C Packaging written inside seen from all
around the globe can be handed over to corporate people .
A transparent paper stopper in a cubical shape with the name of M&C Packaging
flashing from inside in a radium can also be handed over .
A brown tape with M&C Packaging written on it which can be used on cartons can
also be handed over to the people
A beautiful small table stand calendar can be also be given to people with the name
of M&C Packaging
A catalog book with the cover of M&C Packaging all side.
IInn tthhiiss sseeccttiioonn II wwoouulldd lliik k ee ttoo ddiissccuussss tthhee mmaaiinn bbuussiinneessss oof f tthhee rreeppoorrtt.. TThhee mmaaiinn f f uunnccttiioonn
oof f tthhiiss ppaarrtt iiss ttoo pprreesseenntt ddaattaa iinn aann oorrggaanniizzeedd f f oorrmm aanndd ddiissccuussss tthhee f f llooww oof f ddaattaa ..
TThhee aabboovvee ddiiaaggrraamm sshhoowwss aa f f llooww ddiiaaggrraamm hhooww wwee pprroocceeeedd tthhrroouugghh oouurr pprroo j jeecctt.. TThhiiss
sseerriieess oof f sstteeppss iiss tthhee bbaassiicc sstteeppss wwhhiicchh wwee f f oollllooww f f oorr aannyy nneeww ttyyppee oof f ccuussttoommeerr hhaannddlliinngg..
1• Fetch the list of new customers.
2
• Try to contact the concerned person related to the packaging
machines.
3• Share our company profile and undergoing business.
4• If possible arrange for a meeting to discuss more on it.
5
•
Know the specific needs of the customer and try to presentthe suitable model of machine customized to his needs.
Packaging is among the high growth industries in India. A high degree of potential exists
for almost all user segments which are expanding appreciably-Processessed foods, hardand soft drinks, fruit and marine products, cosmetics and personalcare, office stationary
and accessories, fabrics and garments, white goods and other durables, electrical
appliances and equipments, entertainment and other electronics, shoes and leather ware,
gems and jewellery, toys and sports goods, chemicals and fertilizers. Due to lower
manufacturing costs, India is fast becoming a preferred hub for packaging production.
The Indian packaging industry has made a mark with its exports that comprise flattened
cans, printed sheets and components, crown cork, lug caps, plastic film laminates, craft
paper, paper board and packaging machinery, while the imports include tinplate, coating
and lining compounds and others. In India, the fastest growing packaging segments are
laminates and flexible packaging, especially PET and woven sacks.
The market size for packaging materials & systems for food, pharmaceuticals, cosmetics,
toiletries, Ind. products, textiles, handicrafts, etc. accounts for 4%, while rigid & semi-
rigid plastic containers is about 9%.The metal and tin containers accounts for 10%, glass
containers 10% , corrugated board & boxes 23%, paper & paper board 36% and other
ancillary materials like tapes straps, labels, adhesives, etc. - 8%.
Upgradation, both of functionality and aesthetics, characterizes the recent trends in the
industry. Elaborate and more expensive packaging is penetrating deeper into marketing of
industrial products and even agro-based products, like food and personalcare products,
drugs and pharmaceuticals, consumer durables and electronic products, especially
entertainment products.
Packaging market size in India is about Rs 65,000 crore is growing at the rate of 15 per
cent per annum. Currently rigid packaging enjoys more than 65% market share but the
traditional rigid packaging users are migrating to flexible packaging in a big way.Market
size of PET/BOPP and other flexible film-based manufacturing segment is estimated at
around Rs 25 billion. The cost impact of PET film and BOPP film on the overall
packaging cost ranges from 35-85% depending on the product to be packaged. The main
players are Paper Products, Akar Group, Orient Press, India Foils, RT Packaging and
Mukund Flex Pack. Akar Group consists of Akar Laminations, Sharp Industries andVishnu Vijay Packagers. The overall growth rate of the industry has tapered off to around
9%. The flexible packaging industry is expected to grow at about 10-15% per annum in
the coming years. The laminated products are growing at around 30% p.a. There are
about 600-700 packaging machinery manufacturers, 95% of which are in the small and
The top packaging companies of India includes Parksons Packaging System , ITC
Limited , Hindalco , Tata Tinplate Company of India , Moldtek Technologies Limited ,
Gujarat Glass Ltd , Advance Packaging , AMAC Plastic Packaging, E C Packaging Pvt.
Ltd, The Paper Products Limited.etc.
The large and fast growing Indian middle class population and the growth of organizedretail sector are the catalysts to growth in packaging. Packaging of essential products like
food, beverage, milk, vegetable, food grains and pharma are the key driving segments
Japanese packaging equipment made its first appearance in the 1910s when bottling
machines for beer and canning machines for fish and meat were developed. But
subsequent wars prevented manufacturers from developing other types of packaging
equipment. It was 30 years later in 1947 when a caramel packaging machine was
developed that the packaging machinery industry was beginning to take shape in Japan
In the 1950s, various kinds of packaging equipment were developed including cigarette
packaging machines, powder food and medicine pouch packaging machines, bagging
machines for, among others, instant noodles, vacuum packaging machines, cartoning
machines, tying machines and paper strapping machines. Packaging equipment continued
to be developed in a wide variety in the following years. It may be said that the industry
had built up its foundation in the 1960s. Japanese packaging machinery industry came to
be known both at home and abroad during this period.
Supermarkets made their debut in the mid-1960s and spread throughout the nation.
Consumer goods including foodstuffs were sold in a "self-service" method in these
stores, making it necessary to prepack them so that a customer can take them to a cashier
by himself. Demand for packaging equipment soared as a result. Since, however,packaging machinery manufacturers hadn't have enough experience to satisfy all the
requirements of end users, they positively tied up with the U.S and European
manufacturers to raise their technical standards.
The first oil crisis that hit the world's economy in 1973 forced Japan to enter a slow
growth era, and a mass production method so far dominant in consumer good
manufacturing gave way to a diversified small-quantity production method. In addition,
consumers' needs became more diversified. As a result, the end users' demand for
packaging equipment came to be focused on versatile machines capable of multiple types
of packaging and also on the equipment manufactured according to their own
specifications. The equipment made in technical cooperation with foreign manufacturers
could no longer satisfy the needs of Japanese end users, and efforts to develop equipment
capable of meeting their needs began in full swing. It was in the 1970s that Japan laid the
Second-tier cities become centre of packaging activity The rise in organized retailing in India’s second-tier cities made for a competitive
packaging market in 2008. Companies like Hindustan Unilever Ltd, Procter & GambleIndia Ltd, Nestlé India Ltd, ITC Ltd, Coca-Cola India Ltd, PepsiCo India Ltd and Dabur
India Ltd became very aggressive during the review period, and packaging became a bigtool for launching new, India-specific products in different shapes and sizes. The review
period witnessed a flux of partnerships and joint ventures, with many foreign packagingplayers entering the scene to gain a slice of the large pie. Alcan Packaging- part of Rio
Tinto Alcan, Klockner Pentaplast Group (KP) - a German-based packaging solutionsprovider, Polish firm Can Pak and Bosch Packaging either announced new investments or
disclosed plans for the expansion of their existing investments during the review period.
Environmental concerns continue to hamper polymer-based packaging growth
Environmental concerns are fast catching the attention of all the stake holders in the
Indian packaging industry. The expansion of packaging as a profitable industry in India,dragged along by that of the retail and FMCG sectors, has brought with it environmental
concerns. Organizations such as the Indian Centre for Plastics in the Environment wereactively seen promoting awareness in this regard in order to promote the packaging
industry and make people aware of the real concerns about the environment. The centre isthe accredited body of The Ministry of Environment and Forests (MOEF) and undertook
continuous awareness programs by publishing information on waste management
materials, statistics, as well as going in to school and colleges and teaching people aboutthe correct usage of polymer. Corporations were also seen to be making efforts to adaptgreener technologies.
Cost advantages make India a preferred packaging export hub
Due to lower manufacturing costs, India is fast becoming a preferred hub for packagingproduction. The Indian packaging industry has made a mark with its exports that
comprise flattened cans, printed sheets and components, crown cork, lug caps, plasticfilm laminates, craft paper, paper board and packaging machinery, while the imports
include tinplate, lacquers, coating and lining compounds. In India, the fastest growing
packaging segments are laminates and flexible packaging, especially PET and wovensacks. On the global scene ruled by the World Trade Organization, it is imperative forIndia to upgrade its packaging standards through innovative technologies in order to be
on a par with the world’s best practice. Packaging labels must inform consumers aboutthe ingredients of the product, the nutritional value, and the manufacturing and expiry
dates of the products; something which is being made mandatory by the government.Almost all the major players were seen to expand their existing capabilities to tap into the
fast growing export market for Indian packaging products.
Inflation and high oil prices eating in to the margins of packaging companies
Many flexible and paper-based packaging manufacturers experienced difficulties relatingto the rise in the cost of paper as well as high oil prices during the first half of 2008. The
rising costs of paper reduced the margins of industry players. The Indian governmentannounced a cut in the excise duty imposed on the finished goods from 12% to 8% in
2008, yet this was not sufficient saving for the industry that was badly reeling from thehigh production costs. The government, in the budget, reduced the excise duty on paper
mills from 12% to 8%, which the paper manufacturers did not pass on to the customers.High oil prices during the first half of the year affected the businesses of polymer-based
packaging providers who also found it tough to survive in the market
HHeerree II wwoouulldd lliik k ee ttoo iinncclluuddee oonnee ccaassee ssttuuddyy oof f aa PPaacck k aaggiinngg mmaacchhiinnee ccoommppaannyy..
Microsoft Business Solutions
Matrix Packaging Machinery
THE COMPANY
Founded in 1988, Matrix Packaging Machinery is one of the world's leadingmanufacturers of vertical form-fill-seal packaging equipment for various manufacturing
industries. Based in Saukville, Wisconsin, Matrix serves clients worldwide.
THE BOTTOM LINE
Matrix Packaging Machinery had already deployed Microsoft Business SolutionsSolomon when it realized it needed to monitor its inventory and work in progress.
Adding a work order module produced an incremental ROI by greatly speeding ordertimes, supporting better inventory management, enabling more accurate and timely
financial projections, and reducing financial personnel costs.
THE CHALLENGE
In the late 1990s and early 2000s, Matrix was growing but faced several major
challenges:
Matrix was keeping track of thousands of parts on paper and had no way of knowing
which parts were available and which needed to be ordered for the next production run.
Without real-time knowledge of inventory levels and work in progress (WIP), Matrix
In the glossary section I would like to include some of the technical words used in the
project and their explanations
i) PURCHASE ORDER
A purchase order (PO) is a commercial document issued by a buyer to a seller,indicating types, quantities, and agreed prices for products or services the
seller will provide to the buyer. Sending a PO to a supplier constitutes a legaloffer to buy products or services. Acceptance of a PO by a seller usually
forms a one-off contract between the buyer and seller, so no contract exists
until the PO is accepted.
ii) CREDIT NOTE
A credit note or credit memorandum (memo) is a commercial document
issued by a seller to a buyer. The seller usually issues a Credit Memo for thesame or lower amount than the invoice, and then repays the money to the
buyer or sets it off against a balance due from other transactions. A credit notelists the products, quantities and agreed prices for products or services the
seller provided the buyer, but the buyer returned or did not receive. It may beissued in the case of damaged goods, errors or allowances. In respect of the
previously issued invoice, a Credit Memo will reduce or eliminate the amountthe buyer has to pay
iii) INVOICE
An invoice or bill is a commercial document issued by a seller to the buyer,
indicating the products, quantities, and agreed prices for productsor services the seller has provided the buyer. An invoice indicates the buyer
must pay the seller, according to the payment terms. The buyer has amaximum amount of days to pay these goods and are sometimes offered a
discount if paid before. From the point of view of a seller, an invoice is a sales
invoice. From the point of view of a buyer, an invoice is a purchase invoice.
The document indicates the buyer and seller, but the term invoice indicatesmoney is owed or owing. In English, the context of the term invoice is usually
used to clarify its meaning, such as "We sent them an invoice" (they owe usmoney) or "We received an invoice from them" (we owe them money).
The LC can also be source of payment for a transaction, meaning that
redeeming the letter of credit will pay an exporter. Letters of credit are usedprimarily in international trade transactions of significant value, for deals
between a supplier in one country and a customer in another .The Englishname ―letter of credit‖ derives from the French word ―accreditation‖, a power
to do something, which in turn is derivative of the Latin word ―accreditivus‖,meaning trust. The Application any defence relating to the underlying contract
of sale. This is as long as the seller performs their duties to an extent thatmeets the requirements contained in the LC.