Rachana Labchem

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S.V INSTITU OF MANAGEMENT 1

Chapter 1: Industry Analysis

1.1IntroductionFast Moving Consumer Goods (FMCG) goods are all consumable items (other than

groceries/pulses) that one needs to buy at regular intervals. These are items which are used

daily, and so have a quick rate of consumption, and a high return. FMCG can broadly be

categorized into three segments which are:

Household items as soaps, detergents, household accessories, etc, Personal care items as shampoos, toothpaste, shaving products, etc and finally Food and Beverages as snacks, processed foods, tea, coffee, edible oils, soft drinks etc.

Global leaders in the FMCG segment are Nestl, ITC, Hindustan Unilever Limited,

Reckitt Benckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General

Mills, Pepsi, Gillette etc.

1.2 Overview

The burgeoning middle class Indian population, as well as the rural sector, presents a huge

potential for this sector. The FMCG sector in India is at present, the fourth largest sector with

a total market size in excess of USD 13 billion as of 2012. This sector is expected to grow to

a USD 33 billion industry by 2015 and to a whooping USD 100 billion by the year 2025.This sector is characterized by strong MNC presence and a well established distribution

network. In India the easy availability of raw materials as well as cheap labour makes it an

ideal destination for this sector. There is also intense competition between the organised and

unorganised segments and the fight to keep operational costs low.


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1.3 A look at some factors that will drive growth in thissector

Increasing rate of urbanization, expected to see major growth in coming years. Rise in disposable incomes, resulting in premium brands having faster growth and deeper

penetration.

Innovative and stronger channels of distribution to the rural segment, leading to deeperpenetration into this segment.

Increase in rural non-agricultural income and benefits from government welfareprogrammes.

Investment in stock markets of FMCG companies, which are expected to grow constantly.

1.4 Some of the challenges this sector is likely to face are:

Increasing rate of inflation, which is likely to lead to higher cost of raw materials. The standardization of packaging norms that is likely to be implemented by the

Government by Jan 2013 is expected to increase cost of beverages, cereals, edible oil,

detergent, flour, salt, aerated drinks and mineral water.

Steadily rising fuel costs, leading to increased distribution costs. The present slow-down in the economy may lower demand of FMCG products,

particularly in the premium sector, leading to reduced volumes.

The declining value of rupee against other currencies may reduce margins of manycompanies, as Marico, Godrej Consumer Products, Colgate, Dabur, etc who import raw

materials.


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1.5 Swot Analysis

Strengths:

Low operational costs Presence of established distribution networks in both urban and rural areas Presence of well-known brands in FMCG sector Favorable governmental Policy:

Indian Government has passed the policies aimed at attaining internationalcompetitiveness through lifting of the quantitative restrictions, reducing

excise duties, 100 per cent export oriented units can be set up by

government approval and use of foreign brand names etc.

Foreign Direct Investment (FDI): Automatic investment approval up to 100 per cent foreign equity or 100 per cent for NRI and Overseas Corporate Bodies investment is allowed for most of the food processing sector except malted food, alcoholic beverages and those reserved for small scale

industries (SSI).

Weaknesses:

Lower scope of investing in technology and achieving economies of scale, especially insmall sectors

Low exports levels


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Opportunities:

Untapped rural market, changing life style Rising income levels, i.e. increase in purchasing power of consumers Large domestic market with more population of median age 25 High consumer goods spending India is the largest milk producer in the world, yet only around 15 per cent of the milk is

processed. The organized liquid milk business is in its infancy and also has large long-

term growth potential. Even investment opportunities exist in value-added products like

desserts, puddings etc.

Only about 10-12 per cent of output is processed and consumed in packaged form, thushighlighting the huge potential.

India is under penetrated in many FMCG categories as shown in below diagram. Withrise in per capita incomes and awareness, the growth potential is huge.

Lower price and smaller packs are also likely to drive potential up trading for majorFMCG products

Rural demand etc.Threats:

Removal of import restrictions resulting in replacing of domestic brands Tax and regulatory structure Rural demand is cyclical in nature and also


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Chapter 2: Company Profile

2.1 About Rachana Group

Rachana Group hed established in the year 1196 with the company name RACHANA

GLOBAL EXCAVATION LTD. Rachana global and its associates are a group dedicated to

development of natural resources and to create infrastructure, in the global arena. The group

undertakes primary investigation, feasibility studies, resources estimation, and project

formulation: extraction, road & Bridges, Port & harbors and requisite services. The group has

full spectrum capability with current operations spanning across Africa, Europe, Asia and

Latin America for Power Generation, Iron ore, Steel, Coal & gas, Gold, Bauxite and others.

Rachana group values and supports the effort of Government of Mozambique in developing

the nation to meet aspiration of Mozambique in developing the nation to meet aspiration of

people of Mozambique by offering its services in this task of nation building. We can identify

opportunities and bring them to reality through preferred business models including

execution of selected enterprise for development. The group can also arrange financing with

innovative to suit local conditions and national priorities.

Through a team of professional managers and technologists, rachana group has made its

presence felt in developed as well as developing nation. We will be honored to participate in

building Mozambique economy for inclusive growth.


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2.2 Rachana labchem pvt. Ltd.

RACHANA GROUP has now made introads into the heart of the Indian industry with their

associate group company, RACHANA LABCHEM PVT. LTD. Looking at the booming

personal health care and hygiene industry in India RACHANA LABCHEM is an ISO 9001-

2008 Company, has ambitious plans to manufacture and market the entire range of products.

Rachana labchem pvt. ltd. Is a sister concern of Rachana global excavation ltd. It deal in

manufacturing and hygiene and health products. It will be dealing in the production and

exporting of the following products:

Company has recently launched this products and company has started the production at

patan. Company is exporting this product. Company has interest to export the all product in

South Africa and Saudi Arabia country.

We are exporting to many countries which includes Ghana, Nepal , Lebanon, America,

Dubai, Singapore , Nigeria & many more.

List of products:

Washing powder Detergent cake Bathing soap Tooth pest & powder Shampoo Dish wash liquid Toilet soap Talcum powder Petroleum jelly Shaving cream


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2.3 Company at Glance

Name Rachana labcham Pvt LtdAddress Rachana Lab Chem Private Limited Building Nos. 4 & 5,

Sigma-1 Corporate Park, Opp. Pakvan-2, Bodakdev, S.G.Highway

Year of the

Establishment

2008

Form of Organization: Private limited unit

Bankers Axis bank Ltd, SBI.

Contact of the Company Phone: + 91 (79) 4006-34-02

Mobile phone: + 91 9099043634Fax: + 91 (79) 40063401

Our Group Rachana Group

Board of Directors

1. Nalinkumar Vasudev Sompura

2. Manojkumar Vasudev Sompura

3. Ashesh D. Vyas


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2.4 Future Project of Rachana Group

Rachana Group now becomes group of many activities. Rachana group has started exercise to

diversify in aviation industries to start airline and probably in next few year. Rachana will

start two flights in Mozambique and South African region. Rachana has also decided to

diversify in banking and finance to fulfill need of the fast growing economy of Mozambique.

Moreover, project regarding power & generation of wind mill is under process.

Rachana group has sign MOU for their power project. This MOU has been sign in Gujarat

Global Investor Summit 2009. Company has plan for power project and that MOU is of

10500cr for their power project. Company has started acquiring land. This project would be

stared in 2013. As pre management, project capacity would be 1000 mega watt.


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2.5 Rachana Global Excavation ltd.

Rachana Global Excavation Ltd. Is dealing in different mines such as gold mine, coal mine,

iron mine, copper, Tantalum, Fluoride, and semi Precious stone mines. The company

established to provide mining services to other mine owners with $ 60 million and also

established company to make cock oven battery for cock with projected investment of

$1.5billion. it also signed joint venture MOU for $600million with reputed business group of

India, UK south Africa, USA and UAE.

Rachana Global Excavation Ltd. Is also in the business of manufacturers and exporters of

dimensional stones in India. It supplies stone products form the heart of Indias mining and

stone crafting region.

It is actively involve in the construction of temples and other project.

Exploration & Mining

The strength and power come natural to Rachana on account of the long association with

natural resources and their exploration. It doesnt come as surprise when even before theworld could think of it, we sense the growth potential and mine it to our benefit.

After opening avenues in Mozambique in 2003, and realizing the growth potential there,

Rachana Global lad was formed that gave a big turning point to the success of the group.

Through this flagship company, RGL Moz

Auto gas conversion occurred in Mozambique for the first time Prospecting licenses were acquired for various minerals such coal, gold, iron ore, copper,

tantalum, fluorite, limestone, semi precious stones etc.

Mining services to other mine owner are provided.And today Rachana has prospecting and exploration licenses for various natural resources

such as thermal coal, coking Cole, bauxite, iron ore etc. in various countries such as

Mozambique, Colombia, Zambia, congo and indonesisa. The value of its extractible reserves

can conservatively be placed at $2billion.


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2.6 Marketing Department

Company believes that company has to create brand awareness in consumers mind of their

brand name OURO. So they are in a process to create brand name. company has started

their promotion for their washing powder and detergent cake.

Marketing is very important for any organization. If company has not marketing

department so it is not sales its product. This type of organization structure is very

important because when company has marketing department so it can easy to sale its product.

According to Philip Kotler, Marketing Management is the analysis, planning,implementation and control of programs designing to create build and maintain beneficial

exchange with target buyers for the purpose of achieving organizational objectives.

The concepts of market are very important. Marketing is a comprehensive learn. It

includes primary resources such as human resources, finance & management as well as a set

of activities in order to direct the flow of goods & services from producer to consumer in the

process of exchange & distribution.

Marketing may be defined as the process of exchange between seller & buyer. It

involves a number of inter related activities designed to plan promote, distribute & price a

product or service in order to meet the wants & needs of both the parties in exchange.

Marketing is the Creating & delivery of standard of living to the society A total

system of interacting the business activities designed to plan, price promote & distribute want

satisfying products & service to present & potential customers.

According to the committee of American marketing association. Marketing consist of

performance of business activity that direct the flow of good and services from producers or

supplier to the consumer and users.


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Marketing Function Analysis

Marketing is only function, which directly deals with consumer. The heart of modern

marketing is creating customer values and satisfaction. The common definition of marketing

is delivery of customer satisfaction Profit. The main goal of marketing is to attract new

consumer by providing superior values and to keep current customer by delivery satisfaction.

Marketing is so basic that it cant be consider a separate function. It is the whole

business seen from the viewpoint of its final result that is from the customer viewpoint.

Marketing is the analysis planning implementation and control of programmers designed tobring about desired exchanges with target audiences for the purpose of personal mutual gain.

It relies heavily on the adoption and co-ordination of product, price, promotion and place for

achieving effective response.


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2.7 Human resources Department

Rachana labcham has good work force. Company has different employee for different

department. Company has total 115 employees.

55 employees in sales department. 25 employees in marketing department. 20 employees in production department. 15 employees in accounting and administration department.

Recruitment & Selection

Generally Human Resources Department makes recruitment of managerial and non

managerial personnel at registered office Ahmedabad.

Advertising in News paper Internal organization Relatives or friends Casual callers Labor contractor Employee recommendation Manpower at factory gate Campus Recruitment

The organization follows following procedure for selection of candidate.

1. Written test2. Prelim interviews3. Follow-up interviews4. Final interviews & selection.


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Organization Chart

Board of Director

Genral Managere

ProductionManager

Purchase

Manager

MarketingManager

Regional sales

Manager

Area SalesManager

Salas Officer

salesrepresentative

Human ResourceManager Accontong

Manager


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Training & Development

Training is given for providing technical knowledge & skills for a definitepurpose to non- managerial personnel. Development programs are arranged for managerial

personnel to learn conceptual theoretical knowledge for general purpose. On the job training

for trainees in house computer education lectures, Case study & personally development

sessions are arranged by the firm.

Promotion and Transfer

Organization gives promotion by an upward advancement of an employee in the firmby providing better pay responsibility authority, better status. Organization considers criteria

for promotion both performance & subsequently seniority. Transfer is mostly given in the

form of transfer it organization needs.

Personal Records

Organization maintains up-to-date information with respect to personal qualification

special interest, attitude, result of tests & interview, job performance, leave to rewards &punishment so that these may be utilized if need be, at the time of making transfer,

promotions, giving merit pay & sanctioning leave.

Performance Appraisal

Performance appraisal is the process of assessing the performance and progress of an

employees or of a group of employees on a given and his potential for future development. It

consists of all formal procedures used in working organizations to evaluate personalityscontributions and potentials of employees. RACHANA Company adopts this system. It

provides valuable information for personnel decisions such as pay increases, promotions,

demotion, transfers, and terminations. Management gets an objective basis for discussing

salary increases and promotions with the staff. Thus, performance appraisal serves as the

basis suitable personnel policies. It helps to judge the effectiveness of recruitment, selection,

placement, and orientation systems of the company.


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Facility of the Employee

The firm provides following benefits & services to its managerial as well as non-managerial.

1. MEDICAL FACILITY: - It is provides to all the employees & workers in theorganization.

2. INSURANCE: - This facility is provided to all the personnel of the organization. Theperson is Eligible to receive the compensation with respect to nature & Cause of death.

The Firm has adopted E.D.L.I scheme.

3. BONUS: - The Firm provides 20% bonus to every permanent personnel.4. LOAN: - The organization uses to pay loan up to RS 100000.5. PROVIDEND FUND: - 12% P.F is provided out of monthly salary. And 8.33%amount

is deducted form this fund as FAMILITY PENSION SCHEME.

Job Description

Job description is a functional description of what the job entails. It is descriptive in

nature and defines the purpose and scope of a job. Job description is a written record of the

appropriate and authorized contests of a job; it is a factual and organized statement describing

the job in terms of its title, location, duties and responsibility, working conditions, hazards

and relationship with other jobs. RACHANA prepare more then one job description for each

job. A brief version is used in hiring employees while a detailed version is used in training

and evaluating a job. The job analyst first prepare the preliminary draft from the data

obtained though job analyst. The main object of a job description is to differentiate it from

other jobs and to set out its outer limits.

Social Service

Rachanas vision visualizes it self as a vibrant, pro-active and widely admired ethical

corporate citizen. In this role as a responsible part of the society and environment in which

one operates, Rachana has undertaken a host of activities in the education and social

department areas.


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2.8 Production Department

To cover higher market share higher production is required production means creation of

utilization & covers all activities of the procurement allocation & utilization of resources.

To produce senior of commodity which satisfy needs and requirement of customer process

step by process to convert the raw material in finish product in other it is called production.

As company produces more quantity of products their requirement is very high in the market.

To fulfill higher quantity needs of the product of the customer company has to plan.

About The Raw Material

The production department is the department where the final product is made from the raw

material. Rachana used different raw material of from producing different product.

Rachana selects the suppliers of raw materials are depending upon four based.

1 Fatty acid2 Sulphuric acid3 Alpha olipin sulphar4 Coloor balls5 Water6 Fragrance liquid7 Soda s


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Production Process

The raw materials used for toilet soap are distilled fatty acid and caustic soda. distilled fatty

acid on reaction with caustic soda gives soap at temperature range from 90 to 95 C .for

making any soap 63% of DFA is needed i.e. which there is blended DFA + caustic soda +

Trim caustic + water +EDAT

EDAT: Ethylene dim lane Tetra Acetic acid

Then this mixture enters in reactor -1 DRA & caustic soda are the basic raw materials for

producing soap. Brine is used to increase the hardness and to reduce the viscosity. Water is

used as moisture content. Then this mixture enters in reactor-2 then it enters is the reaction

tank after then it enters the feed tank and in feed pump this mixture forms the noodles. And

finally by saponification and complete soap is formed.

Production speed: 200m Tone per day

Maximum Speed per minute: 550 soaps

Minimum speed per minute: 50 soaps

Quality Policy

Policy is to meet consumers expectation and win there confidence with superior quality.

Better products, better value, better living.

OBJECTIVES OF QUALITY POLICY

Manufacturing and supplying consistent quality of product to customer by follow up ofright first time.

Ensure total commitment for customer satisfaction and continue to fulfill theirrequirements by ensuring quality at all level.

Increase our export turnover.


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2.9 Finance Department

Financial is that actively which is concern with planning and controlling the firm financial

resources moreover, financial management means raising of more funds at the minimum cost

using them effectively in the business. The financial management is concerned with the

financial problem of the business organization. The financial manager plays dynamic role in

modern companys development.

Now, a day in any field we see competition so every organization must have to build

its storage financial position in the market.

To expend the business and to reduce the financial problems. Every organization tries

to make good financial policy.

Financial Planning

Planning is pre-requisite for managing any little things too. When we

think about fund, financial planning comes at first. Financial planning

answers the following questions: -

What should be funds requirements?How should procure funds?From where to procure the funds?How to utilize the fund at maximum level?

Head office deals with the arrangement of raising the funds and

provides funds required by any of four plants.

In RACHANA, they make weekly forecast of funds in which

requirement of each department is mentioned. After that the proposal is sent

to head office and got sanction from there.

So, financial planning has a significant place for making decision of

requirement and utilization of funds.


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Chapter 3: Study of Marketing Department

3.1 Introduction

The marketing department in the RACHANA LABCHAME PVT LIMITED has

selected line type organization. Means the authority flows top level to bottom level. The

department is headed by marketing director. He has to look weather the product reaches to

the customers at right time, right place or not. For this matter the marketing director is

supported by transport of marketing

.

The Marketing Offices Look After The Matters Like:

Marketing services Product planning Pricing Distribution Promotion Transportation


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3.2 Organization Structure of Marketing Department

The company is involved Manufactured import & export trading of dice and dice

interpreted.

Sales comprises of import about 50% to 68% Export 50% to 20% through merchant

export and balanced to the merchant.

MarketingDirector

Execcutive

Director

Genaral Manager

Marketing

&

Service Manager


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3.3 Product Planning

.Identification of marketing opportunity and top about product according to need of

market has four alternatives ways for growth in sales and profit product planning and

development.

Market Penetration.

It involves expansion of sales of sales product in exiting product in existing market by

selling more for present to customer or new growing customer. This is done through more

aggressive market mix.

Market Development.

In market development a present is introduced to new market or segment market

development is the creation of new market by discovering new application for existing good.

Product Development.

This is opted when company introduced new product. Product development is

introducing of new product in the present market. It consists of various stages. Generation of

new idea, creating of idea, concept development, and business analysis. This department

presently is working on development of wide quality and strength of cement.

Diversification.

Diversification occurs when a company seeks to enter a new market with a new product.

This is a risky alternative as compared to other alternatives.


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3.4 Pricing Policy

Price is the only element in the marketing mix that creates sales revenue. The other

elements are costs. Price is the very critical decision in marketing management. What price

should be charged for the product is a crucial question. Several feature economy social

political and other factors influence the pricing decision.

Pricing is one of the most important council areas in the marketing of any product

or services, as determines not only profit margin but also the sales volume. Pricing may be

Price + Profit, on the capacity to supply, on the market demand as well as competitors

pricing.

Price behavior in both domestic as well as international market is influence by the

demand supply gap. However due to excellent quality of the companys product. Companys

gap 5 to 10 % product on the prices.

The pricing objectives of RACHANA LABCHAM PVT LIMITED are to:

Quality of product Competition Behavior of the consumer Target of the consumer

In this way RACHANA LABCHAM PVT LIMITED has determined the price of

the product.


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3.5 Market Segmentation

Market segmentation means to divide a market into different group of customer.

There can be a various criteria of market segmentation. The concept of market segmentation is

based on the fact that markets of commodities are not homogeneous but they are heterogeneous.

If a market is divide into three groups such as child buyers, younger buyers and old buyers.

Company Interest Area

Domestic MarketRachana labchame is FMCG Sector Company. Company wants enter in Indian market with

the brand name ouro. Company believes that company would be able to grab the market

share in FMCG product. Today company has business in Gujarat vary well. Company has

interest in other stats also company wants super stockiest in other mega city. In Mumbai

company has appointed super stockiest. Rajasthan, Hariyana both state super stockiest are in

negotiation.

International MarketRachana Labcham main interest is to get more market share in international market.

Company has started doing job work for international market. Company is interested

mainly in developing ouro market in South Africa and Saudi Arabia.


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3.6 Channel of Distribution

Any sequence of institution from the producer to the consumer including one or any

no of the middleman is called as channel distribution. After the production the next problem

faced by a producer is that of selling and distributing.

There are different channel of distribution. Goods may be passed on to the

consumer through wholesaler or directly by the producer to the consumer. The producer may

choose any one of the channel available considering various factors.

Agents, middleman, facilitators are the channels by which a company candistribute its product and make easy to reach the same to its consumers in time.

The company chosen the channels intimately affects all the other marketing

decision. Company mainly direct exports to the market however it involve agents having

network in overseas market so far as indirect export and sales in domestic market. Domestic

markets are concerned company deal throw reputed agents.

Margin in distribution channel:

Margin rate

Super Stockiest 7%

Distributor/Wholesaler 7%Retailer 13%

Super

Stockiest

Distributor/Wholesaler

Retailer


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3.7 Sales Promotion

Sales promotion is a key ingredient in marketing. Sales promotion consists of a

diverse collection of incentive tools. Mostly short term designed to simulated greater and

quicker purchase of particular product by consumer or trade. Advertisement offers to reasons

to by and sales promotion offers incentive to buy. Sales promotion include tools for consumer

may be samples, coupons, cash refund offers price, premium, prizes. reward etc. For the

consumers. There are price off, display allowance and free goods convention, tradeshows,

contests for sales representatives and specialty adverting.

Sales promotion tools are used most organization. They have specific objectives.

Sellers use incentives-types promotion to attract new tries to reward loyal customer

promotion yield faster and more measurable response in sales than advertising does.

RACHANA LABCHAM PVT LIMITED. also uses promotion tools for training

higher sales. It uses both kind of sales promotion i.e. customer and dealers to traders.

Promotion consists of those activities that are designed to bring a company goodsor services to the favorable attention of customer. Sales promotion and personal selling are

parts of promotional selling are parts indirect and non-personnel while personnel selling are

quite direct and personnel.

The main purpose of sales promotion activities to stimulate consumer and dealer

efficiency. Sales promotion directed at consumer may be done with a view to increase the

products rate of use among existing consumer or to attract new consumer to the companys

product.


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3.8 Advertising

Advertising plays vital role in the field of sales promotion. Advertising is often called

psychological pressurization and is any form of non-personnel presentation and promotion of

ideas goods and services by an identified sponsor and is characterized by public pervasiveness

amplified expressiveness, impersonality and monologue. The means and modes for advertising by

RACHANA LABCHAM PVT LIMITED are briefly mentioned below.

Fairs and exhibitions organized by the area office from the budget for advertisementfrom the head office.

Company gives advertisement in news paper, journal, etc. Bill-board & hoardingRACHANA does promotional expense as under

Among all tools of Promotion advertising is given prime importance by the company

that can be seen from above chart. More stress is put on television press media is also give

importance.

Total promotional

expenses(3% of sales)

Advertising

&

Sales promotion

Outdoor(45%) Cinema(10%) Press(45%)


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3.9 Marketing Research

Marketing research is systematic gathering recording and analyzing the data about

marketing problems to facilitate decision-making.

The marketing manager has to take various regarding the activities of marketing.

The decision is combination of judgment and actual introduction the correct decision can be

the customer of the analysis of the actual data. Thus market research serves the single

purpose of providing information to access better decision.

The company has to fulfill the responsibility to satisfy the needs of enumerableand varied consumer and therefore, it undertake marketing research.

Marketing research is concerned with all those factors, which have a direct impact upon the

marketing of product and services. It is the study of any part of the total marketing process

and entire area of buyer behavior and attitudes in the market place.

RACHANA LABCHAM PVT LIMITED is a special consult officer is in the market.

They are go to market and see to his competitors, competitors product and customer

requirement and give to information to the company.

Define the problem

Research objectives

Develop research plan

Collect information

Analyze the information

Present the findings


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Chapter 4: Conclusions

4.1 Conclusion

This is my remember able to have training in RACHANA GROUP. This company

is growing in fmcg industry. The members of management are very efficient and co

operative. It is medium scale industry. I am very well familiar with all the aspect and

operation of the company. The management of the company has kindly provided me all the

necessary information for preparing the project report.The supervision unit co-ordination is

simply versatile which a result of bright future is. There is co-ordinate between workers and

staff. The future is clear of the unit because of its effective management increasing turn over

and high quality of its product so after observing such matters. I hope it would remain for

long period of time as twinkle stars, remain in the sky.

Rachana Labchem

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