Supply Chain Management

A summer project report

On

Supply Chain Management

At BILT Unit SEWA

Ballarpur Industries Limited

Unit: Sewa An ISO 9001 Certified Company

Gaganapur, Jeypore – RS – 764002, Dist.: Koraput (Odisha)

Telephone: 06854 – 230227, 230220, 9777469596/597/598/599, Fax: 232931

Registered Office: Ballarpur, Dist. Chandrapur, Maharastra (India)

Report Submitted By: - Pinaka Sahu

A SUMMER INTERSHIP PROJECT REPORT

ON

SUPPLY CHAIN MANAGEMENT

ATAt BILT Unit SEWA

Ballarpur Industries Limited

Unit: Sewa

SUBMITTED IN PARTIAL FULFILLMENT FOR THE

AWAARD OF THE DEGREE OF M.B.A

(MASTER OF BUSINESS ADMINISTRATION)

B.P.U.T (2009-2011)Submitted By:Pinaka sahu

Regd No. -:0906272074

ACADEMY OF MANAGEMENT STUDIES

BHUBANESWAR

Under the guidance of

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Mr Anil Mishra Mr. Shiva Prasad Pattnaik

(Faculty of Marketing, A.M.S, BBSR) (Asst. Manager-MSD, BILT Unit SEWA)

CERTIFICATE

This is to certify that this project work entitled is submitted by Mr. Pinaka sahu Registration No.-

0906272074 under my guidance. This report the standard of fulfilling the requirement for the award of

Master In Business Administration. I also certify that the matter embodied in this project is original and

has not been submitted before for the award of any other degree.

I wish him success in future endeavour.

Prof. Anil Mishra

Faculty-cum-Internal Guide

(Marketing)

3

DECLARATION

I do hereby declare that the project report on the topic “ Branding in BILT , JEYPORE “ is

submitted by me to the master of business administration of A.M.S ,Bhubaneswar in partial fulfilment of

the requirement M.B.A degree of B.P.U.T .Under the guidance of Prof Anil Mishra is my own work and

submitted to any other institute or published anywhere before.

Date

Place (PINAKA SAHU)

4

PREFACE

The objective of training is to help the student understand business environment well and equip

themselves with the work culture of companies in the present era.

I Pinaka sahu take the Opportunity to introduce the reader to the outline of my Project on Supply Chain

Management at BILT Unit SEWA.

This 8 weeks period which started from 26th of July 2010 to 4 th of September 2010 gave me an in depth

exposure in the field of Paper Manufacturing.

During my project my main focus was to get maximum real work life experience which can help me in

long run and I am satisfied that I have achieved the Target.

ACKNOWLEDGEMENT

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“Words often fail to express one’s inner feelings of gratitude and indebtedness,

but it is the only readily available medium through which the undersigned can express their

sincere thanks to all those who are associated with the work in any ways or other”.

A project can never exist and thrive in solitude. Project work is never the work of

an individual; it is more a combination of views, suggestions, contributions and involving

many individuals. This project also bears the impact of many people. Thus one of the most

pleasant parts of writing this report is the opportunity to thank all those who have

contributed towards it.

I would like to express my sincerest gratitude to my faculty guide Mr Anil Mishra,

Faculty A.M.S, BBSR and my Project Guide Mr. Shiv Pattnaik, Asst. Manager, MSD, Bilt

Unit SEWA for their excellent guidance, constant advice and granting personal freedom in

the course of this work.

Pinaka Sahu

TABLE OF CONTENT

6

Declaration 03

Preface 04

Acknowledgement 05

Table of Contents 06

Executive Summary 07

Introduction To Industry 08

Introduction To Ballarpur Industries Ltd 13

Profile of the Company (BILT Unit SEWA) 25

Need of Study 34

Literature Survey 35

Objective 39

Supply Chain Management 40

Research Methodology 58

Data Analysis 60

Observation 73

Suggestion 75

Conclusion 76

Questioners 77

Bibliography 81

EXECUTIVE SUMMARY

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The competitive and global nature of today’s business environment dictates that this direction and

transformation takes place in a way that is efficient and effective as possible. Continuing emphasis on

time, cost and quality improvements have sharpened the need to coordinate and cooperate with trading

partners around the world to achieve results that allow customers to be successful. Thus Supply chain

management focuses on the integration of activities across several companies to manage the flow of

products, services, people, equipment, facilities and other resources.

The report gives an overview of the Indian Paper manufacturing Industry, its major players, growth and

outlook. This report also provide ample of information regarding Ballarpur Industries Ltd. (BILT), the

Conglomerate AVANTA Group of which BILT is a Strategic Business Unit. This report provides an

analysis of the Internal as well as External situation of BILT in the form of SWOT Analysis and

PORTER’S FIVE FORCES Model.

Though the project work has been done in UNIT SEWA of Ballarpur Industries Ltd. it contains the

History, Organizational Structure, Products and some HR related data of the Organization.

Logistics is an Important Part of Supply Chain management, so this report also covers some basic ideas of

Logistics, its various aspects and the functions of Logistic Department.

The Report contains the literature review of Supply Chain Management, its importance in current

competitive business scenario, and the various objectives and analysis. Efforts have been made to

interconnect and establish a relationship in between both the theoretical as well as practical aspects of

Supply Chain Management in Context with BILT Unit SEWA.

This report also includes practical implications to understand how supply chain is being managed in BILT

Unit SEWA by taking into account six major elements of Supply Chain Management Customer,

Purchasing, Planning, Inventory, Production and Transportation.

There are many elements which form a backbone of Supply chain management and Supply Chain

Management Technology is one of them. So efforts have been made to give a brief idea about

OPTIVISION (Technology BILT uses in its Supply Chain), its workings and benefits.

INTRODUCTION TO INDUSTRY

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The Indian Paper Industry is among the top 15 global players today, with an output of more than 6

millions tones annually with an estimated turnover of Rs. 150,000 millions. (approx. USD 3400

million).Paper Industry in India is riding on a strong demand and on an expanding mood to meet the

projected demand of 8 million tones by 2010 & 13 million tones by 2020.A large number of expansion

programme & expansion of capacities with an outlay of Rs. 10,000 crores have been announced covering

the various sectors like paper, paperboard, newsprint etc. The Indian Economy is progressing well and

targeting 8%+ growth. The economic reforms coupled with the liberalized Government Policies, India

today offers excellent business opportunity for investments.

One of the first FDI Projects may come through the proposed Finnish proposal to set up a 400,000 TPA

capacity plant with an investment of US$240 million.

The expanding Industrial Scenario calls for efforts to tackle related problems:

Industry needs capital and technology.

Since energy cost accounts nearly 25 per cent of cost of production there is an urgency to improve

energy management and energy consumption.

Quantum jump in production, called for by the demand projection is possible only by expansion of

existing capacity and creation of additional capability. Up gradation of technology and new

capacities also involve massive investment.

Use of agro residues for preparation of pulp also throws up challenges like pollution control,

recycling, use of cost effective technology for utilization of agro residues, etc.

The first mill set up in India more than 100 yrs ago. The industry operated under a Protective tariff

since 1925. Attracted by high profits under the protective tariff umbrella, many new paper industries were

set up. During the period of planned development, the paper industry made rapid progress, India’s forest

providing abundant raw arterial for its smooth working. Production use from 3.5 lakh MT in 1960-61 to

31 lakh MT in 1997-98 the production of newsprint rose from 0.4 lakh MT to 4.6 lakh MT between 1961

and 1998.

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Major Players

10

Plant Locations all over India

Growth of paper industry in India

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There are at present 340 units producing paperboard in the private sector with installed capacity of

31 lakh MT. There are about 30 units are of diverse size, type and magnitude, and about 30 large

integrated mills, well organized and well equipped and there are about 270 small units, which are too

small and too moderately equipped. The last decade witnessed a phenomenal growth in the small paper

sector (a small paper mill, has installed capacity of 24000 MT per annum), actively promoted by the Govt.

As a result, the small sector now account for 50 percent of the installed capacity and of production of

paper in the country.

Rapid Growth of Small Units

In the early 1970s, when the country was faced with paper famine, the Govt. came to appreciate

the role of small paper units because of the short gestation period, the use of cheep second hand machinery

readily available in foreign countries, the use of non-conventional raw materials such as rice, wheat, straw,

biogases, jute stalks and waste papers. The small units could be set up in any part of the country and

would have an important role to play in backward areas. The Govt. gave necessary fillip and

encouragement to technocrats and entrepreneur’s to venture into the paper industry and the investment

funds came easily from the public sector financial institutions such as the IDBI, IFCI and the ICICI. The

small paper units went to production and averted the paper crisis and also the need to import paper and

paperboard and thus have helped the country to save Rs.300 Crores of foreign exchange annually. To

some extent, the small units were uneconomic, their cost was high and their quality was low. In order to

ensure that these mills exist along with large paper mills, the Govt. gave various excise concessions and

relieves from time to time and as 741 mentioned earlier, the small paper mills have grown so rapidly that

they account for 50 percent of the installed capacity as well as of annual production.

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Following measures need to be taken to make Indian paper industry more

competitive:

Improvements of key ports, roads and railways and communication facilities.

Revision of forest policy is required for wood based paper industry so that plantation can be raised

by industry, cooperatives of farmers, and state government. Degraded forest land should be made

available to the industry for raising plantations.

Import duty on waste paper should be reduced.

Duty free imports of new & second hand machinery/equipment should be allowed for technology

up gradation.

Outlook

Outlook for paper industry in India looks extremely positive as the demand for upstream market of

paper products, like, tissue paper, tea bags, filter paper, light weight online coated paper, medical grade

coated paper, etc., is growing up.

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INTRODUCTION TO BALLARPUR INDUSTRIES LIMITED

Ballarpur Industries Limited (BILT), part of the US$ 3 bn Avantha Group, is the undisputed

leader of the Indian paper industry. It is India's largest manufacturer and exporter of paper, with a

strong presence in all segments of the usage spectrum, including writing and printing (W&P) paper,

industrial paper and specialty paper. Complementing this is a diversified production infrastructure with

six manufacturing units spread across the country.

In recent years, BILT has evolved as a dynamic, knowledge-driven organization focused

towards creation of stakeholder value. In the process, it has also transformed the paper industry from its

traditional 'commodity market' mindset to a branded one. A concerted programme of innovation and

technological excellence helps it proactively respond to the needs of each individual segment. Today,

BILT not only has the range, but also a well entrenched distribution network that enables it to reach

customers, any time, any place.

As the industry leader, BILT is committed to developing its business towards ecological, social

and economic sustainability. Community development and upliftment of the marginalized sections have

been identified as focus areas. BILT offers vocational training and programmes on micro financing for

the unemployed. The company works extensively with the communities on a broad range of issues,

including health, education and strengthening of the village panchayat system through training of

members on issues relating to governance, development, and fund management. BILT, in collaboration

with its partner NGOs, has helped established Self Help Groups (SHGs) at the village level to

implement its social programmes. It has also joined hands with Pratham, an NGO that runs primary

education programmes all over the country. A key initiative in environmental accountability is

the BILT farm forestry programme, which has, to date, brought 32,000 hectares under plantation,

benefitting nearly 37,000 farmers.

MISSSION STATEMENT -- Our aspiration is to become a leading creator of Shareholder Value

in the Paper Industry.

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VISION STATEMENT -- To consistently outperform expectations and deliver superior value to

both our Customers and Stakeholders.

CORE VALUES --

Honesty-To be principled, straight-forward and fair in all dealings

Integrity- Maintaining the highest standards of Professionalism

Flexibility- Adapting ourselves to always stay a step ahead of changes

Respect for Individual- Giving each person room to contribute and grow

Respect for Knowledge- To acquire and apply leading expertise in all aspects of our business

Team Performance- The team comes first; none of us is as good as all of us

STRATEGIC INTENT

BILT, in the recent years has evolved as a more dynamic, knowledge driven organization with a

singular focus on creating stakeholders value. Aimed at making the organization more market-oriented

and customer centric, the following initiatives are to drive BILT forward in the rapidly changing

business environment.

Consolidation – A continuous streaming of capacities and products in our core business area-Paper.

Brand Building – Increasing brand involvement for the products amongst customers to reduce market

fragmentation and ‘generic brand’ status for BILT via strategic branding.

Decommoditasation and Service Orientation – Redefining paper industry with customer at the

centre-stage.

Wider Product range - Adding high value-added products to BILT’s portfolio expanding it to cover

the widest range of basic to high-end usage paper products.

Product-mix Rationalization – Maintaining an intelligent product-mix based on value and demand

curves to maximize returns.

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Exploring Global Markets – Reaching out to international markets with world-class products while

maintaining leadership in India.

Operational Improvements & Cost Competitiveness – To attain higher efficiency levels and world-

class quality in production processes.

Increasing Capacities – Expansion of manufacturing and processing capabilities across product range,

in line with market dynamics.

Sound Investments - Accelerate growth by way of investments into focused, synergetic acquisitions.

Captive Market Share – Sustaining and strengthening BILT’s leadership position in its market

segments way ahead of competitors.

Extending Touch-Points – Building a wider and ‘intelligent’ distribution network that enables BILT

to serve its markets in a customized and localized manner and attain higher penetration, without losing

the economies of scale.

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Unit Locations all over INDIA

1. UNIT BALLARPUR

2. UNIT SHREE GOPAL

3. UNIT SEWA

4. UNIT KAMALAPURAM

5. UNIT BHIGWAN

6. UNIT ASHTI

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PRODUCTS OF BILT

BILT provides for all major and usage’s ranging from world class coated paper for catalogues

and calendars to hi-speed uncoated printing paper from water market premium business stationary to

hi-end copy used in office and folding box of packaging.

BILT is the leader in the Indian paper industry with an impressive annual production of 50, 0000 MT.

BILT provides paper for all major end usage’s ranging from world class coated paper for catalogues

and calendars to hi-speed uncoated printing paper, from water marked premium business stationary to

hi-end copy paper used in offices and folding box boards for packaging.

In housing R&D based on long standing experiences and expertise in papermaking has enabled BILT to

be brand of choice. BILT produces the finest varieties of paper that have already made a mark in more

than thirty nations across the globe including developed countries market like USA, Australia and

Europe. The BILT

Products range comprises of the following brands, which have become generic to their category.

1. BILT Royal

2. Sunshine Super Printing

3. Royal Executive Bond

4. Copy Power

5. Easy Print.

BILT’s product process is supported by 7 world class manufacturing facilities the use the latest

equipment along with stringent quality control processes. Undisputed market leadership combined with

the largest distribution network and commitment towards customer care ensures that there is BILT IN

EVERY PAPER.

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SWOT Analysis of BILT

Strength (S)

Maximum Varity & high quality Of Paper

Good Employer-employee Relationship

Efficient management

Totally Computerized

CSR by keeping Environment clean

Strategic Location for easy availability Of Raw material

Weaknesses (W)

Large Structure of organization

Old Machinery

High Fixed Cost

Remote Location of Plants

Logistic Issues

Opportunities (O)

Setting up a new plant in central part of India

Exploring new overseas market

Maximize production capacity by replacing old machinery

Decreasing cost by increasing Rail & Water as mode of Transportation

Acquiring some weak and poor Paper manufacturing companies

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Threats (T)

Global Warming

Raw material Unavailability

Increasing Competition

Import of Papers

ORTER’S FIVE FORCES MODEL for BILT

Threat of New Entrants is LOW20

POTENTIAL ENTRANTS

Industry Rivalry is HIGH

Bargaining power of Supplier is HIGH Bargaining Power of Buyer is HIGH

Threat of Substitute is LOW

Some Major Dates of BILT

Its pathway through the history can be summarized below:

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POTENTIAL ENTRANTS

SUBSTITUTES

SUPPLIERS POWER BUYERS

POWER

INDUSTRY RIVALRY

1945: Ballarpur paper and straw Board Mills Limited incorporated. First brand Names

‘three Aces’ for paper and wisdom for stationary.

1969: Shree Gopal Paper mills limited merged with Ballarpur paper and straw Board mills Ltd.

1975: Entity name changed to Ballarpur Industries Ltd.

1883: Modernization of Ballarpur and Shree Gopal Mills initiated.

1988: Entry into industrial paper segment.

1990: SEWA paper Mills acquired.

1992: Choudwar unit acquired.

1994: US $ 35 Million FCCB issue launched.

2000: Business portfolio restructuring completed.

2001: Sinar Mas Pulp and Paper (India) Limited acquired and re-named BILT Graphics Papers

Limited (BGPL).

BILT’s New Group Identity

The Gautam Thapar-led Group of Companies, a leading global transnational corporation, today

unveiled its new Group Corporate Identity. The group with presence in more than six diverse business

verticals globally is now the “AVANTHA” Group. The new logo was launched at special celebrations

held in all Avantha offices worldwide today. The identity and logo commemorate nearly six months of

work selecting and implementing a new brand identity.

 With a global footprint and operations in ten countries, the Avantha group employs 20,000 people

belonging to 20 different nationalities. The group is in diverse fields such as Power generation and

distribution, Power transmission and distribution equipment and services; paper and pulp; food

processing; farm forestry; chemicals; infrastructure, IT and ITES. This over US$ 3 bn group is on

course to trebling to US$ 10 bn by 2013. Mr. Gautam Thapar, Chairman said, ““Consolidation involves

coming together as a group, leveraging on individual and collective strengths and working together for

higher ambitions and market aggressiveness.”  He added, “The group structure and formalizing it with a

group identity is a step towards realizing our defined growth path.”

This business house established 80 years ago is today known for its future orientation. It has

successfully gone into uncharted waters and expanded with its winning M&A strategy. The group has

also adapted to changed environment readily with pioneering, innovating and imagination.  Among the

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first manufacturing industries to see change as an opportunity, the group embraced globalization and set

forth to acquire both markets and resource bases.

The new group identity – AVANTHA – combines French and Sanskrit terms to express “Growth with

stability”.  Inspired by the lever, the three-pronged wheel of the Avantha logo is modern and signifies

continuous forward movement.  It symbolizes the organization as a powerhouse of progress, impelled

by its three fundamentals of Imagination, Integrity and Individual. Mr. Gautam Thapar explained, “as

the new and emergent global translational, AVANTHA is based on a commitment to world class

systems and processes and a 360 degrees reputation as a global employer brand.”

Mission

To provide value at every interaction and not only match but exceed the expectations of our clients,

customers, employees and stakeholders at any point in time. Every time.

A Centre of Relevance and Excellence (CORE) has been set up at Thapar University by TIFAC

Mission REACH of Department of Science & Technology, Govt. of India in its first phase of setting up

eight CORES at various Institutes and Universities spread all over the country. Science and Technology

Entrepreneur’s Park (STEP) has been established jointly by Thapar University and DST, Govt. of

India. Thapar University has impressively grown in size and activities during the last five decades of its

existence. Nearly 10,500 engineers have left its portals so far, distinguishing themselves as proud

Thaparians in diverse fields in our country and aboard. As a fitting recognition of its pioneering role in

promoting the growth and development both at National and International levels, Thapar University

was granted full autonomy and the status of a Deemed University  in 1985 UGC.

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Our offerings include IT infrastructure support management, professional and engineering services, and

consulting and business process outsourcing Avantha enjoys an enviable image for its leadership status

in IT, ITES, engineering, and manufacturing domains. It also has strong roots in education and

research. This helps us in attracting and retaining the best talent and thus safeguards your investments

& knowledge repository. Our group strength provides the capacity and capability to help ensure we

serve our clients extraordinarily well. In addition our strong business alliance with leading players in

this arena helps us in transferring technology to our clients and in helping them to adopt the best

technology practices in the industry. Needles to say we follow strict procedures to maintain complete

confidentiality and integrity of our customers’ data. Our backbone infrastructure meets the rigorous

standards of ISO/IEC 27002:2005 - Information Security Management Systems (ISMS).

Ballarpur Industries Ltd. Ambulam

Color Red…

Stands for change, market leadership, achievement and a place of honour in the Indian Paper Industry

Turn of Paper…

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Shows that BILT is a paper company and speaks of expanding horizons, new heights, much

more to come…of times unseen, unexplored.

AWARDS RECEIVED BY BILT

Golden Peacock Global Award for Corporate Social Responsibility by the World Council for

corporate Governance.

National Level Energy Award BEE (2006).

CII Energy Efficient Unit Award (2006).

Indian Manufacturing Excellence Award ( 2006 ).

Safety Innovation Award (2006) from safety and quality forum.

Green Tech Gold Award (2006) for both safety and environment.

National Award for Excellence in Energy Management (2007) from confederation of Indian

Industries (CII). The Unit- Kamalapuram was adjudged the winner from among 39 companies

short listed for the award.

Bilt has received ASIAN CSR award in the category of poverty alleviation and Golden peacock

Global award for corporate social responsibility.

TERI Corporate Award has been given to BILT in the field of Immunization, HIV and AIDS

for the year 2007-08 by Govt. of India.

BILT is the market leader in its segment. BILT controls 53% of the Indian coated wood fee paper market

and 27% of the Hi-Bight map litho market and, with a 68% shares, is the leader in bond paper market,

90% of the Indian playing cards are made on BILT black centered boards, while a large proportion of

industrial paper for comminutes too is manufactured by BILT. It has under taken several progressive

measures aimed of creating a brand that is associated with excellent standard available at convenient

proximity to the customer. It has already made musk in thirty courtiers across the globe including

developed markets such as USA, Australia & Europe.

Ownership: 25

The company is a publicly held organization. The majority of the shares are held by the parent

company Ballarpur industries Ltd.

Share holding Pattern

PERCENTAGE

38.88

5.85

0.04

0.17

16.71

17.34

8.3212.69

Shareholding of Promoterand Promoter Group

Mutual Funds/ UTI

Financial Institutions/ Banks

Central Government/ State

Insurance Companies

Foreign InstitutionalInvestors

Foreign Financial Institution

Non-institutions

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PROFILE OF THE COMPANY (BILT Unit SEWA)

The unit SEWA of Ballarpur industries limited at Gaganpur nearly 8 kilometers away from

nearest town Jeypore is a major commercial town in the district of Koraput in south Orissa. Jeypore is

nearly 600 kilometers away from the states capital Bhubaneswar.

Koraput district holds mostly tribal population whose main source of income is agriculture forest by-

products and daily labor. Basically, it is not an industrial area. But there are a few industries in the near

by place like NALCO at Damanjodi HAL Sunabeda. In addition to these there are some major HYDEL

project like the Dumas Hydroelectric project (major one of Orissa) and the Upper Kolab Hydroelectric

project.

The main river of the district is Kolab on with the hydroelectric project has been designed. The district

is directly connected to Chhattisgarh and Andhra Pradesh, the neighboring states.

Location advantage

Under this heading, it is expressed to describe he benefits that the organization is enjoying due to its

location moreover the facilities at a particular position are mainly responsible for an organization can

neither survive nor can it develop.

The following locations facilities are enjoyed by the SEWA paper Mills.

Being in a tribal belt, the unit is able to get laborers sufficiently at low wage senior, because of

their low cost of living.

Good communication helps the unit to function smoothly, because plenty of bus and

transportation facilities are available for traveling to Chhattisgarh, A.P. Bhubaneswar, Cuttack

and Berhampur etc.

Good Tele-Communication facilities through telephone, internet, fax etc. are available here.

A small airstrip is there for landing of small planes, though regular services are not there.

Electricity is available as per requirement.

Due to good transportation facilities, the unit through roadways is able to acquire coal easily for

indigenous power production.

Raw material like wood, bamboo is cheaply procured from nearby districts. Because of

availability of forest resources in plenty.

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A channel of river ‘Kolab’ is passing near the unit, with facilities acquiring of water and

disposing, off its effluents into the channel.

Lowland areas are available for the dumping of the solid wastes.

Good medial facility is available there at Jeypore and a very good hospital is there at the district

headquarters, Koraput that can deal with emergency and acute readily.

As the area is not crowed with industries, the environmental pollution norms are not very strict and the

district administration does not pose a threat for the survival of the plan in this regard moreover, the

local community believes that the organization contributes for the betterment of the locality; they are

co-operative with the organizations.

Brief History of the Organization

In the year 1980 Mr. A.C. Varma, basically is an NRI was planned to open the paper industry

with collaboration of the Orissa Government and then the Orissa Government given permission to open

a paper industry in the district of Koraput and place name is Gaganapur near Jeypore R.S. The annual

capacity was 35 thousand metric tones per annum. In the year 1984, the production was started and it

was lasted up to 1987 October the last part of 1987 the SEWA Paper Mill was closed down due to

many reasons like the disconnection of the power by OSEB, and due to non availability of spare parts

and due to lake of professional personnel. The mill was declared sick and at last pulled the shorter of

close down in 1987, from 1987 to 1990 almost all four years the mill was closed.

Due to the enforced of the local force and the employees and the unions the OLD SEWA Paper Limited

was referred to BIFR court order sick industry Act. In the year 1991 the BIFR court gave the award for

the re-fabrication of the SEWA paper industry. In 1990 there was a MOU (Memorandum of

Understanding) was signed in between the workers and the management to open the mill in the new

style, seal and designation under M/s. Ballarpur Industries Ltd. UNIT-SEWA.

The SEWA PAPER MILL LIMITED which was promoted by Mr. AVATAR VARMA declared as sick

unit due to some internal problems. SEWA paper mill ltd, was in corporate during the year 1981 and

the actual production was started during the year 1984, SEWA paper mill Ltd, was declared as a sick

unit during the year 1987. In the year 1991 Board for industrial and financial reconstruction (BIFR)

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took over SEWA Paper Mill ltd. in the year 1991& Production was started in the year July 1992. The

actual production for commercial purpose was started in the year September 1994.

The Thapar group is one of the top corporate long to neuritis in the country today. Ballarpur Industries

Limited (BILT) is the torchbearer of the Thapar group. The group has a turnover of more than Rs.3,500

crores, with an annual growth rate of 25%, the range of activities spread over 54 companies and 84

plants copiers paper, Engineering, Electronics, Electrical, Textiles, Chemicals, Telecommunications,

Glass, Fiber, Agri Business, Leather, Bir-technology, Agriculture, consultancy and Technical Services.

Strategic alliances and collaborations with some of best corporations in the world including Dupont,

General Electric, Wetting House, Owens Illinois, Chemtere, Hitachi Mitsubishi; and OKI electronics

have positioned the group in the global league.

Apart from BILT, the other main pillars of the group are Crompton Greaves, greaves limited, JCT,

KCT & Bros (CS) Limited and Andhra Pradesh Rayon’s. The founder of this group was the late Lala

Karam Chand Thapar, one of the most illustrious of the enterprise. He detected invaluable opportunities

where others felt deterred by insurmountable obstacles. Goaded by aspiration very early in life he left

Punjab and journeyed, in dauntless quest the challenge of the unknown to Bengal. Bengal was his

“Tryst with Destiny”.

The beginning was humble. He started with a small coal agency. Slowly he became the owner of a

coalmine given up a sick by the British. He rehabilitated it. His penchant for nursing industries back to

business health is today an inherent distinguish trait of BILT and the entire Thapar Group. His coal

mine chain grew so rapidly that when the coal industry was nationalized in our country Thapar was the

largest Indian producer of cooking and non cooking coal.

It is this corporate mission that begins with coal mining that has flowered today into the Thapar

Group’s wide spectrum of core industries oriented towards nation building.

BILT manufactures are 60% of the country’s value added and specially paper, and accounts for nearly

one fifth of the country’s overall paper production with a network of fire paper mills including two

coating units. Bilt is the acknowledged leader in an industry which is all set to boom in the next few

decades.

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With an emphasis or high technology, high quality and high value specialty papers, BILT has carved a

rich for itself in the premium market segment. SUNLITE BOND has become a generic same for good

writing papers : SUNLITE CATRIDGE and boards, share certificates insurance policies and Railway

tickets are printed on REDFORT POLICY BOND and LUCKY PARCHMENT, corporate broachers

are printed SUPER IVORY BOARD, corporate executives insist EXECUTIVE BOND for personal

stationary.

BILT story on paper goes back to the 30’s when the Thapar’s acquired the SHAREE GOPAL PAPER

MILLS in YAMUNANAGAR in HARAYANA. The floundering mill was soon flourishing.

Later the Thapar Group took over the Ballarpur Paper and starboard mills, a small outfit buried in the

forests of CHANDRAPUR in Maharashtra; In 1945 these were merged as BALLARPUR

INDUSTRIES LIMITED (BILT). Today BILT has grown from 2 mills producing 33,000 tones of

paper every year to 5 mills producing more than 3, 70,000 tones, with plans to increase production by

200% of the finest quality paper available in India. The recent acquisition of the SINARMAS MILLS

in PUNE will serve too broader their base. Extensive expansion and modernization plans are under

ways in technical collaboration and measuring up to Global economies of scale.

The BALLARPUR INDUSTRIES LTD. (UNIT-SEWA) as established at GAGANAPUR (JEYPORE)

in KORAPUT District, centrally declared back ward area as based industry in the year 1991 for

manufacturing PAPER, using BAMBOO and HARDWOOD as their main raw materials supported by

wasted papers as secondary Raw Materials with a licensed capacity of 2500 tones per month.

The Basic functional areas are production, personnel, finance and sales / dispatch / marketing service

department (MSD), co-ordination among these different 4 functional activities has been achieved

successful so far.

The unit went into commercial production towards end of JUNE 1994-95 and went for an expansion

cum solving programme and completed the same and increased its installed capacity to 15458.8 tones

per annum during the year 1994-95. The unit went on increasing the production in the subsequent year

and incurred losses.

The unit again slipped back during 1995-96 and has suffered a book loss of Rs.162, 436,909/- even

though it has an improved capacity utilization for various reasons. It was subsequent year 1996-97 the

situation further deteriorated and the unit incurred a cash loss of Rs.290, 311,973/-. Again the situation

further deteriorated in the subsequent year 1997-98 and the unit incurred a cash loss of

30

Rs.313,381,060/-. The major reasons attributed for this loss were due to increase in wages, increase in

raw material prices, increase in transportation tripping resulting in wastage and stoppage of production

and higher input costs.

Organizational Structure at BILT Unit SEWA

31

UNIT HEAD (CGM)

GM /

FACTORY DGM - PDC

DGM - PROD

DGM-COMML

DGM - FINANC

DGM- P&R

DGM-QAS DGM-R & M

DM/AM - SAFETY

MGR – R & D

DGM - PDC

DGM - PDC

AM – R DDM - QAS

DM – R&M

1. MGR-INST.

2. MGR-ELECT.

1. MGR-PULP

2. DM-PM/C.M

3. DM-PM/C.M

4. DM-CIVIL

5. DM-W.S.

6. AM-PDC

1. MGR-MSD

2. DM-MSD

3. DM-MSD

4. DM-PUR

5. DM-YARDDM – A/CS

MGR-PM-P

SHIFT INCHARGES / OFFICERS

MACHIENE OPERATORS

EMPLOYEE

CATEGORY WISE MANPOWER POSITION (SITE) AS ON DATE:

CATEGORY NO OF EMPLOYEES

UNSKILLED 2

SEMI-SKILLED 101

SKILLED 288

HIGH SKILLED 300

TRAINEES 5

TOTAL 696

CATEGORY WISE MANPOWER POSITION (FIELD) AS ON DATE:

CATEGORY NO OF EMPLOYEES

UNSKILLED 8

SEMI-SKILLED 8

SKILLED 10

HIGH SKILLED 16

TOTAL 42

32

SHIFT OPERATION IN THE MILL.

SHIFT TIMINGS.

A - 6.00 AM to 2.00 PM

A-1 - 7.00 AM to 3.00 PM

G-1 - 8.00 AM to 4.30 PM

G-2 - 9.00 AM to 5.30 PM

B - 2.00 PM to 10.00 P M

C - 10.00 PM to 6.00 A M

PROFILE OF THE PRODUCT

Paper for printing and writing purpose and divided into eight major categories based on their

physical properties a follows : News print, uncoated wood free, uncoated wood containing. Coated

wood free, coated wood containing, uncoated Bristol’s coated Bristol’s and cotton fiber papers.

VARITIES OF PAPER COATED

HI-BRIGHT

CREAM WOVE

COPIER

BOND

NEWS PRINT

PACKAGING

WRITING AND PRINTING.

33

PAPER MANUFACTURING

The basic concept of paper making is quite simple obtaining cellulose fibres, suspend them in

water, from a mat of the fibers and extract the water. However the manufacture of paper with

characteristics required by the end user is a highly complex process. The paper maker’s job is to select

from a multitude of variables the set of conditions which give a sheet the desired performance present

day paper making also required huge amount of capital investment.

PAPER PROPERTIES

The basic properties of the product are related to the type of pulp used and the non cellulosic

material used.

PHYSICAL PROPERTIES OF PAPER

BRIGHTNESS OF PAPER

AMOUNT OF SURFACE GLOSS.

GRAIN DIRECTION

OPACITY OF PAPER

SQUARENESS OF PAPER

DOTTED SURFACE

BULK

FLATNESS

FREEDOM FROM IMPERFECTIONS.

INK RECEPTIVITY

MINERAL FILLERS

PAPER MOISTURE CONTENTS

SMOOTHNESS.

STRENGTH

WATER RESISTANCE

WHITENESS.

NEED OF STUDY

34

Until the dawn of 20th century business as well as distribution channel used the traditional delivery

process for the experience and expertise dating back to the industrial revolution era. But the

introduction of information technology brought up a new dimension to the whole delivery process.

Information technology has given business connectivity a new way of order relationship called Supply

Chain Management. Supply Chain Management is a process where in firms collaborates with each

other in the bid of leveraging their strategic positioning and to increase their operating efficiency

(Bowersox, Closs, 2008).

Marketing, distributing, Planning, manufacturing and purchasing was considered independently as not a

part of supply chain during the outset of industrial revolution. Each of the processes had their own set

of goals and objectives and they operated independently.

Marketing considered high customer service and maximization of profitable sale as their objective;

Manufacturing had higher and efficient output at the lower costs as their objective etc. Thus there was a

need of mechanism wherein all independent functions could be integrated together (Ganeshan,

Harrison, 1995).

Supply chain management can be viewed as a decision making process between strategy and operation.

It’s also seen as a mechanism that lies in-between this completely vertically integrated individual firms

where the whole operation takes place with the mix of coordination and effective management. Thus

supply chain is like a relay team within each team is more competitive and there needs to coordinate

between the entire team for achieving results.

35

Literature Survey

The movement of a product or a service from supplier to customer takes place with the help of

organizations, people, technology and resources. According to Terry. Harrison “a supply chain is a

network of facilities and distribution options that perform the functions of procurement of materials,

transformation of materials into intermediate and finished products and the distribution of the finished

products to customers”. Supply chain finds its place in both services as well and manufacturing

industry. Supply chain can also be explained as the association of the retailers, distributors,

transporters and suppliers who come together and share the process of sale, delivery and production of

a particular product or service.

Supply chain management is an efficient way of managing the above mentioned activities.

According to Jessie Chinami Supply chain management can be defined as “an oversight of materials,

information and finances as they move in a process from supplier to manufacturer to wholesaler to

retailer and finally to the consumer”. The basic aim of supply chain management is coordinating and

integrating the flow which takes place within and among companies.

The basic three types of supply chain management flows are:

The product flow

The information flow

The finances flow

The product flow deals with the goods and services that are subjected to movement from a supplier

to a customer and vice-versa. The information flow manages the upgrading as well as management

relating to the status of the delivery process while the financial flow manages all the finances related to

the delivery process.

36

A schematic diagram of the Supply chain management process is as shown. The various processes in

Supply chain management are:

Supply chain strategy

Logistics

Product lifecycle management

Procurement

Asset management

Enterprise applications

Supply chain planning

The decisions associated with supply chain management cover both the long-term and short-term.

Strategic decisions deal with corporate policies, and look at overall design and supply chain structure.

Operational decisions are those dealing with every day activities and problems of an organization.

These decisions must take into account the strategic decisions already in place. Therefore, an

organization must structure the supply chain through long-term analysis and at the same time focus on

the day-to-day activities.

37

Furthermore, market demands, customer service, transport considerations, and pricing constraints all

must be understood in order to structure the supply chain effectively. These are all factors, which

change constantly and sometimes unexpectedly, and an organization must realize this fact and be

prepared to structure the supply chain accordingly.

Structuring the supply chain requires an understanding of the demand patterns, service level

requirements, distance considerations, cost elements and other related factors. It is easy to see that these

factors are highly variable in nature and this variability needs to be considered during the supply chain

analysis process. Moreover, the interplay of these complex considerations could have a significant

bearing on the outcome of the supply chain analysis process.

Aim:

To investigate the current situation and future prospect of supply chain management in Ballarpur

Industries Limited

OBJECTIVES OF STUDY:

To identify major challenges and developments for SCM and its related issues in Ballrpur industries

limited.

To understand the impact of policy making on SCM and implementation.

38

Definition of Supply Chain Management (SCM)

SCM is a management of network of inerconnected business involved in ultimate provision of

product & services required by end to end costomers.

Introduction to Supply Chain Management

In simple words, if a company makes a product from parts purchased from suppliers, and those

products are sold to customers, then you have a supply chain. Some supply chains are simple, while

others are rather complicated. The complexity of the supply chain will vary with the size of the

business and the intricacy and numbers of items that are manufactured.

Elements of the Supply Chain

A simple supply chain is made up of several elements that are linked by the movement of

products along it. The supply chain starts and ends with the customer. The Basic elements of SCM are

given & described below.

Customer

Purchasing

Planning

Inventory

Production

Transportation

39

(A).Customer

The customer starts the chain of events when they decide to purchase a product that has been

offered for sale by a company. The customer contacts the sales department of the company, which

enters the sales order for a specific quantity to be delivered on a specific date. If the product has to

be manufactured, the sales order will include a requirement that needs to be fulfilled by the

production facility.

Customer in context with BILT Unit SEWA

Customers are the very important aspect of any Organization because they are both the starting

as well as the ending end of the organization’s Supply Chain. They determine the business of the

organization. In case of BILT Unit SEWA Distributers are the customers of the Organization

because they Bring orders directly or indirectly from the customers which goes to the

respective zones & then to the respective Units. There are thousands of Distributors of BILT in all

over India. We can term the Distributors is the back bone of an Industry. Marketing Process of BILT

as follows-

40

MARKETING PROCESS OF BILT

(B).Purchasing

The purchasing department receives a list of raw materials and services required by the

production department to complete the customer’s orders. The purchasing department sends

purchase orders to selected suppliers to deliver the necessary raw materials to the manufacturing site

on the required date.

41

Wholesaler Retailer

CustomerProduction Unit

Jobber

Deport

Distributor

RetailerDeport

Retailer

Supply Chain Process of Purchasing Department

Here at Ballarpur Industries Ltd. all the Procuring activities are done by the Purchasing

department except for Bamboo & Hardwood because these two are procured by Raw material

Dept.

The Purchase Department arranges the requirement of the Consumer Departments like MSD,

Manufacturing, Finishing, Finance, Quality Control, Electrical, Mechanical, Workshop,

Instrumentation, and R&D.

These consumer departments will raise the Purchase Requisition (PR) for their Requirement to

purchase Dept.

The Purchase Dept. floats the Enquiry against the Indent.

Then according to the SOP (Standard Operating Procedures) they finalize the Party or

Customer.

Then the Transporter is been decided, it may be Contractual or Nominated by the Party.

Then it is updated in the ARIBA (An Interface for Purchase Dept) for approval from competent

authority.

When all the concerned authorities approves, the Order will be raised.

When the consignment reaches at the Consignee (Manufacturing UNIT) it is been assigned a

Serial no. generated through ARIBA by Stores Dept.

Then it has to go through a process like entry at each level for example Gate Entry, Store Entry.

Then the concerned Consumer Department people inspect the Inventory as per Quality or

Specification and confirm the acceptance.

42

After acceptance of the material Stores will raise the KR. it goes through the Payment Process

where the Finance Dept. verify the payment terms and payments and pay the amount to the

Customer.

If in Case it does not match with the Specification it is allotted an IKR (Irregular Kachha

Receipt).

When it is allotted IKR it goes to rejection stage where the Purchase Dept. check for whether

the payment has been made or not.

If it is been made the Inventories are kept for Exchange otherwise it is sent back the Vendor

which is called RTV (Return to Vendor).

43

Flowchart for the working Process of Purchase Department

Inspection

Payment Process

IKR

If amount is paid

If not Paid

*PR- Purchase Requisition

*KR- Kachha Receipt

*IKR-Irregular Katcha Receipt

(Rejected Receipt)

44

Consumer Dept. Raise the PR

Finance Dept.

Verification of Payment terms & Payment

Mill Stores

Transporters

Will be finalized by either Consignee or Consignor

Float Enquiry & Finalize the Party

Procurement or Purchase Dept.

Pay Amount to the Customer/ Party

Inspection for Quality/

Specification by Consumer

Return to Vendor (RTV)

Material Rejection

Keep the Material for Exchange

Kachha Receipt

KR

(C).Planning

Production Planning address the decision on the acquisition, utilization and allocation of

product resources to satisfy customer requirements in the most efficient and effective way. Typical

decision includes work force level, production lot sizes, assignment of overtime and sequencing of

production runs.

The requirement triggered by the customer’s sales order will be combined with other orders as per

the production schedule. The production department will create a production plan to produce the

products to fulfill the customer’s orders within the limited time horizon.

Planning in context with BILT Unit SEWA

Production Planning and control entails the acquisition and allocation of limited resources

production activities so as to satisfy customer demand over a specified time horizon. As such

planning and control problems are inherently optimization problems, where the objective is to

develop a plan that meets demand at minimum cost or that fills the demand that maximizes profit.

Production Planning is done at an aggregate level, for both products and resources. Distinct but

similar products are combined into aggregate product families that can be planned together so as to

reduce planning complexity. Similarly, production resources, such as distinct machines or labor

pools are aggregated into an aggregate machine or labor resources.

When an Order is punched in the OTPTIVISION by the Zonal office for a specific unit to

manufacture it is in the U (Unscheduled) State. All the other Departments can see the order but

actually can’t workout unless & until the respective MSD Plans for the particular order by turning it

into P (Planned) state. In this state the MSD define the Route of the Order. Here route means the

path starting from the paper machine to ready to transport state. All the process are been defined in

this stage by MSD. From here the work of production department starts. They see the order and

divide all the order into several Runs (sub process) according to the specification. They instruct the

machine operators to manufacture as per the requirement.

45

The Production Department takes care of the production work and when all the products are

manufactured the Quality Assurance Department Checks the Goods and certifies them. Then they

are handed over to the MSD warehouse and MSD then Plans for the transportation Process of the

finished goods.

(D).Inventory

The raw materials are received from the suppliers, checked for quality and accuracy and moved

into the warehouse. The supplier will then send an invoice to the company for the items they

delivered. The raw materials are stored until they are required by the production department.

Inventory in context with BILT Unit SEWA

Here at BILT Unit SEWA All the Inventory are broadly categorized into 4 types based on their

Nature and Requirement which are as follows-

BERT

B (Block) - In this category comes all the materials which require a lots of capitalization, Time for

Implementation and lots of human effort to carry forward the task. This kind of Inventory is been

purchased by knowing of the top management or we can say it is their decision to purchase or

acquire that particular Inventory. Some Example of this kind of Inventory is New Machinery, New

Equipment, and New Technology for Production etc. These are one time activity. But after

installation or implementation some inventory left with us then we can change those inventories to

other categories i.e. Essential, Regular and Temporary for further utilization. For this kind of

inventory only the top management can raise the PR.

E (Essential) – In this category as the name suggests all the essential items come that can be used

for continues, without interruption Production. For example spare parts of machinery, Raw material

etc. But there is level for both maximum and minimum essential inventory which should be

maintained. For this kind of inventory a particular consumer department can raise the PR (Purchase

Requisition) for a particular use.

46

R (Regular) – In this category all the regularly consumed items that are being needed every time

comes. It can be consumed by every department fro which the store generates the PR through a sub

inventory. There is a maximum and minimum level for these inventories. To raise the PR the Lead

Time and Consumption value are taken into consideration and the ABC analysis is being done.

T (Temporary) – All the inventories that are of temporary requirement comes under this category.

This type of inventory should be consumed within 90 days. For example

------------------------------------

There is also a special category which is not included but has some importance in Inventory

Handling which is described as below.

S (Surplus) - All the inventories can be converted to this category because any inventory which is of

further no use or less required in future can be categorized in it. For example after implementing new

production technique by establishing new machinery all the spare parts of old machinery is of no

use. So these inventories can come to this category. Thus these inventories become a dead asset for

the company and contribute nothing to the company. So to use it effectively the concerned Store in

charge circulates a mail to other Units of the company to take and use them as per their

requirements.

Based on the Production Schedule the Inventories can be divided into two categories as

described below.

Preproduction Inventory

Here Preproduction Inventories refers to Bamboo, Pulp, Hardwood, Chemicals, and

Machineries etc. which are required for production of Paper.

Postproduction Inventory

Here Postproduction Inventories refers to Finished Product i.e. Paper in terms of Reams or

Sheets Cartoons. 47

(E).Production

Based on the Customer requirement the Production has to Start. The finished products ordered

by the customer are manufactured using the raw materials purchased from suppliers. After the items

have been completed and tested, they are stored back in the warehouse prior to delivery to the

customer.

Production in context with BILT Unit SEWA

The Production Department plans for the production keeping in mind the Order size and the

availability of other resources such as machines, Raw materials, Warehouse to store etc. There are

Two Paper manufacturing Machines, PM-1 and PM-2 using which the production work is done.

Both the machines are dedicated for manufacturing different quality and sizes of papers. The PM-1

is dedicated for manufacturing of Copier grade paper like image copier 70 GSM, TOT (10/10) Mtv

65 GSM and Copier FS 68 GSM. Where as the PM-2 is dedicated for manufacturing of Writing &

Printing (W&P) paper like Easy Printing ranging from 52-58 GSM, SSML HB 60- 90 GSM, Copier

FS 62-80 GSM and Image copier & TOT 65-70 GSM. There is an A4 line at the end of PM-1.

All the orders are manufactured in the form of Jumbo Rolls. Further after being certified by the

Quality Assurance Department, they are cut into reams and then either transported to Cutting

Centers (VZM & VSKP) or given the size and shape as per the specification and transported to the

Customers.

Order Status at various stages in Optivision

U- Unscheduled I- Invoiced

P- Planned S- Shipped

T- Trimmed K- Cancelled

M- Manufacturing X- Cancelled48

W- Wrapped/Warehouse C- Forcedly Closed Item

L- Loading Started

(F).Transportation

When the finished product arrives in the warehouse, the shipping department determines the

most efficient method to ship the products so that they are delivered on or before the date specified

by the customer. When the goods are received by the customer, the company will send an invoice for

the delivered products.

Transportation in context with BILT Unit SEWA

Transportation is an important function of Marketing. Goods must be transported from their

place of Production to the many locations of their customers. This can be done through various

means such as Air, Water, Rail and Road. Here at BILT Unit SEWA all the transportation activities

of raw material and finished goods are done by Road Transportation. The transporters those who are

indulged in these activities are either nominated by the Party itself or Selected and awarded the

contract for the specific year by the Company. The selections of Transporters are basically done in

two ways. One is Offline negotiation and other one is Online Reverse Auction where the company

finds out the various transporters providing services for those particular areas and after doing a

comparative statement they finalize and award them the contract. And For the current year the

company has selected the transporters by online reverse auction method. The processes that the

company follows for the online reverse auction method are as follows.

After manufacturing the Quality Assurance Department certify the Product, then the goods comes to

finishing department and here all the people of finishing department do all the counting and primary

packing of the goods through wrappers manually. Then it comes to MSD warehouse and after doing

the secondary packing the MSD plans for the transportation by appointing the transporters to

dispatch the goods to the Customer’s destination.49

Existing Material Movement by Road

50

Rajpura, Saharanpur Depot

Visakhapatnam Cutting Centre

Rajpura Transshipment Point

Hyderabad Transshipment Point

Ichhapuram Transshipment Point

Vizianagaram Transshipment Point

Vizianagaram Cutting Centre

Mumbai, Ahmadabad, Pune Depot or Parties

Kolkata Depot or Parties

Indore Depot

Delhi, Jhansi Depot or Parties

MILL

Chennai, Bangaluru, Cochin Depot or Parties

Supply Chain Process at BILT Unit SEWA

Supply Chain Management at BILT Unit SEWA

To ensure that the supply chain is operating as efficient as possible and generating the highest

level of customer satisfaction at the lowest cost, BILT have adopted Supply Chain Management

processes and associated technology. Supply Chain Management has three levels of activities that

different parts of the company are focusing on: strategic; tactical; and operational.

Strategic: At this level, company management will be looking to high level strategic decisions

concerning the whole organization, such as the size and location of manufacturing sites, partnerships

with suppliers, products to be manufactured and sales markets.

****The unit is always overbooked to the tune of 7,500 MT in a month whereas the capacity is

restricted to 6,500 MT depending on various constraints in mechanical behavior of the machine. The

51

Punches Order in OPTIVISON

Production Planning & Order Monitoring

Manufactures as per the Specification

Gives Shape & Size as per Specification

MSD Plans Transportation & Dispatch the Order

Intend Order as per Requirements

GSM (Gram per Square Meter) & Various SKUs (Stock Keeping Units) are also influencing the

capacity utilization of the machine. Considering the market demand and run ability of the machine

the HO Marketing is regularly monitoring the activities of execution of orders in accordance to the

monthly sales plan. Monthly sales plan is a perpetual home work an effective tool in respective of

execution of orders. The MSD personnel are strictly advised to adhere to the allocated quantities,

quality as specified there on.

Tactical: Tactical decisions focus on adopting measures that will produce cost benefits such as using

industry best practices, developing a purchasing strategy with favored suppliers, working with

logistics companies to develop cost effect transportation and developing warehouse strategies to

reduce the cost of storing inventory.

****In existing scenario of price escalation of diesel the transportation cost is being increase day by

day which influenced the Lended cost of the customer. Keeping in view of such high trend in

transportation cost the unit is adopting a very cost affective scientific method to cry a halt in

escalating trend. In every year the Unit is inviting tenders from various reputed transport operators

through online in Reverse Auction Method. Since the best price (Freight) is sealed by the company

the cost effectiveness in respective of transportation charges are higher. In other words the lowest

bidders in comparison to best price are awarded the contract to render service throughout the year.

The customer lending cost as far as freight is concerned is in safe custody due to the above cost

effective scientific method is concerned. In addition to cost effective price (freight) the delivery time

and safe handling of materials are preconditioned in the contract and the suitable penalty are

imposed in case the conditions are not honored .Regular follow up and monitoring are also affected

so that the customer are within our reach regarding their status of material.

Operational: Decisions at this level are made each day in businesses that affect how the products

move along the supply chain. Operational decisions involve making schedule changes to production,

purchasing agreements with suppliers, taking orders from customers and moving products in the

warehouse.

****Orders scheduled for manufacturing is always within the ambit of sales plan. Therefore once

sales plan is distributed to all the departments in the chain are proactively extending their respective 52

chain so as to the cycle is competed without any interruptions. Each member of the chain is always

in the stage of “On your marks Get Set Go” with ensuring that perpetual home work.

Supply Chain Management Technology used in BILT Unit SEWA

If a company expects to achieve benefits from their supply chain management process, then it

will require some level of investment in technology. The backbone for many large companies has been

the vastly expensive Enterprise Resource Planning (ERP) suites, such as SAP and Oracle. Thus to

ensure a high Customer satisfaction and a smooth working environment BILT has adopted an ERP

System called OPTIVISON developed and maintained by Oracle.

Since the wide adoption of Internet technologies, all businesses can take advantage of Web-based

software and Internet communications. Instant communication between vendors and customers allows

for timely updates of information, which is the key in management of the supply chain.

OPTIVISION

Optivision Comes from Honeywell, USA through Honeywell Automation India Ltd.It is a paper

specific sollution Unlike SAP, BaaN and Oracle, which are generic Sillutions.It is successfully

running in 100 plus Locations world wide.It covers ‘Make’ and ‘Sell’ part of the business but it doesn’t

cover financial and procurement part of business.

O-Order

P-Planning

T-Tracking

I-Invoicing

VISION – Insight or In a single Interface

Product Map of OPTIVISION53

Benefits of OPTIVISION

Improved Production Planning

Ability to Promise (ATP) delivery date to the customer

Visibility of order Status

Reduction in Wastage as system will do deckle match and Trim Optimization

Visibility of Inventories leading to reduction in Inventory related costs.

54

Order Management Block

Trim Optimization

Production Management

Quality

ATP

Purchasing

Order Management Procurement

Inventory Management

Financial

Micro Scheduling

Costing

Supplier

Ora

cle

& C

RM

Sui

te

Distribution strategy :

1. To Depot distribution.

2. To Wholesales.

CORPORATE SALES & MARKETING OFFICE

First India Place, Tower C

Mehrauli Gurgaon Road

Gurgaon 122002, Haryana

Ph : +91-124-2804242, 2804243

Fax: +91-124-2389495

REGIONAL OFFICES

North Zone

249, Okhla Industrial Estate

Phase-III, Okhla

New Delhi 110020

Ph : +91-11-5161581-83, 51613061

Fax: +91-11-51613060

East Zone

55

6B Pretoria Street

Kolkatta 700071

Ph : +91-33-22821297, 22824535, 22821346-47

Fax: +91-33-22826271

West Zone-I

H-2 Paragon Textile Mills Pvt Ltd, Compound

Near TV Centre, Worli, Mumbai 400013

Ph : +91-22-24903187-91 , Fax: +91-22-24928981

West Zone-II

511, Anand Mangal-III

Ambawadi, Ahmedabad 380006

Ph : +91-79-6400297, Fax: +91-79-6400298

South Zone

Wescare Tower

16, Cenotaph Road, Teynampet,

Chennai 600018

Ph : +91-44-24315850, Fax: +91-44-24351011

DISTRIBUTORS OF BILT

56

I. EVEREST TRADING COMPANY – BBSR

2. SAHA AMIRCHAND & TARACHAND & SONS- VIJAYWADA

3. EVEREST COMMUNICATION CORPORATION- HYDEHABAD

4. N.DESAI PAPER PVT. LTD - AHMEDABAD

5. P.R.P.PAPER- CHENNAI

6. JANA AGENCY – SIVAKASI

MARKETING PROCESS OF BILT

Wholesaler retailer

Retailer

Production unit Customer

Distributor Jobber

Deport

Deport Retailer

PHYSICAL DISTRIBUTATION OF FINISHED PRODUCT TO DEPOTS BY ROAD

TRANSPORTATION IN BILT

57

ROAD TRANSPORT:-

58

It can be divided into two types

Own Company Transport

Open Market

OWN COMPANY TRANSPORT

If the shipper owns its own truck or they have their private carrier. This is called Own Company

Transport. But the paper industries BILT (Unit Sewa) have their no private carrier.

OPEN MARKET

BILT (UNIT SEWA) depend upon the contract carrier. A contract carrier is an independent

Organization. Who sell their transportation to others on a contract basis. They are called Transporter.

The following are the transporter of BILT

SUPREME ROAD TRANSPORTER LTD. (SRTL)

ORISSA BENGAL CARRIER (OBC)

SOUTH INDIAN LOGISTIC CO. (SILC)

DEEPAK TRANSPORER AGENCY (DTA)

DELHI ASSAM ROADWAYS CORPORATION (DARC)

Supreme Road Transporter (SRTL) serves his service to all north

Delhi, Rajpura, Saharanpur, Jhansi

Orissa, Bengal Carrier Transporter-

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MUMBAI, CHENNAI, AHMEDABAD, COCHIN, CALCUTTA, AHEMEDABAD.

South Indian logistic – VIZIANAGARAM, VISAKHAPATNAM

Deepak Transporter Agency - MUMBAI, PUNE

SOUTHERN ROAD CARRIERS – CHENNAI, BANGALORE.

RESEARCH METHODOLOGY

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PROBLEM FORMULATION  

Analyzing the Supply Chain Management decision of Ballarpur Industries Ltd.

RESEARCH DESIGN 

Quantitative technique is being used that help to make the relationship between theory and

research. The design that is being followed in this case is descriptive one. Since the objective is to

analyse the Supply Chain Management decision of BILT. Basically descriptive research is of two type-

single cross sectional and multiple cross sectional. Since, in this case I am just taking one sample and

drawing the conclusion on that basis it is single cross sectional. 

DATA SOURCES 

Data collection is done with the help of two methods-

i) Primary data collection- In this case data are collected directly from the respondent in the

Questionnaire that is being used in this research process. The data are collected by interaction mode

from the Distributors and Wholesalers. The data was collected by the Distributors and Wholesalers in a

disguise mode. Another way that is used for data collection is telephoning interaction/interview with

the sellers.

ii) Secondary data collection- The secondary data is basically used for the purpose of enhancing the

concept clarity regarding different variables of Supply Chain. The sources are research articles,

journals, magazines and internet. 

Sources: Websites

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Books

SAMPLE CONSIDERATION 

SAMPLE DESCRIPTION- The sample chosen for this study is Distributors and wholesaler

who deals in IMAGE copier (BILT paper). 

SAMPLE FRAME- The sample frame of this study is the Distributors and wholesaler keeping

and selling IMAGE copier(BILT paper) in Jeypore

SAMPLE SIZE- The sample size is 100. 

SAMPLING TECHNIQUE- The technique that is being used in the research is convenient sampling

DATA ANALYSIS

1. Are you aware of BILT.62

Yes : 70 No: 30

70%

30%

Aware of biltYes No

BILT is recognised by near about 70% of population and having a very good SCM by which

BILT enjoying a good brand image in market.

2. Other brands you come across

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30%

32%

14%

6%

7%3% 8%

paper brandsBILT JK ITC TNPL CENTURY WESTCOAST RAMANEWPRINT

BILT enjoying a good portion of market share. But having a tuff competition from JK paper

mill .

3. By asking that how many wholesaler are satisfied with the supply chain management of BILT

and i got the results as

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not at all

satisfied

very satisfied

0 10 20 30 40 50 60 70

respond of wholeseller

From all respondents 60% are satisfied with the supply chain management but 15% of them not

satisfied due to lack of communication with semi urban areas.

4. Supply chain management covers a big portion of different elements which effects the decision

making process by an wholesaler. So we asked those wholesaler on which they takes the

decision to deal and i used sample as a)brand image b)price c)supply chain d)quality of paper

and i got the results as

Elements No. of wholesaler takes decision

Brand image 15

Price 25

Supply chain 30

Quality of paper 30

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As

this pie chat

describes that

supply chain

effects a big

impact on

decision

making

process of an

wholesaler .

5. Do the customer consider for new product

Yes : 60 No : 35 Don’t Know : 5

Yes60%

No35%

Don't Know5%

Need of new produt

It indicates that Company may consider for new product development rather than increasing the

existing production, which has got less demand .

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Brand image15%

Price25%

Supply chain30%

Quality of paper30%

Elements effects on decision making

These are questioners to the wholesaler and distributors on which we got the results. And some

questioner for the MSD department on which we are going analyse the rest impont role played by

supply chain management to develop the organisation’s profit.

6. How successful do you think is your company in managing its supply chain in different

area like a)semi-urban area b)urban area c)metro city and we got result as

BILT deals with Rajpura Transshipment point ,Vizayangaram Transshipment point and

Ichhapuram Transshiment point .when any order takes place from Delhi , Jhansi Depot or

parties ,Indore Depot ,Rajpua , Saharanpur Depot , etc it takes the route of Rajpura Transshipment point

and it takes a little more time. So when it questioned that how successful Supply Chain works it

concludes that it work very well in urban area but due to metro city are far from the main mill it takes a

little more.

And then next question was How do you manage your supply chain? and we got the answer

as to ensure that the supply chain is operating as efficient as possible and generating the highest level of

customer satisfaction at the lowest cost, BILT have adopted Supply Chain Management processes and

associated technology. Supply Chain Management has three levels of activities that different parts of

the company are focusing on: strategic; tactical; and operational.

7. Does a company need a separate department to deal with supply chain affairs ?

YES NO

This question asked to different distributor and we got results as, among 100 respondents 63

said yes and rest 37 said no its not mandatory to have a separate department for supply chain

management to have a smooth flow of work.

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Yes63%

No37%

Need of separate Deprtment

8. How much benefit can be acquired by using these systems?

A) Close partnership with suppliers & customers

a) Not at all b) Littlec)Average d)Greatly e) A lot

B) JIT supply

a) Not at all b) Littlec)Average d)Greatly e) A lot

C) e-procurement

a) Not at all b) Littlec)Average d)Greatly e) A lot

D) Supply Chain Benchmarking

a) Not at all b) Littlec)Average d)Greatly e) A lot

E) Plan strategically

a) Not at all b) Littlec)Average d)Greatly e) A lot

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F) Holding safety stock

a) Not at all b) Littlec)Average d)Greatly e) A lot

And I got response as if I gives points to A lot :5 ,Grately :4 ,Average :3 ,Little :2 and Not at

all :1 then it will like this

BENEFITS FROM SYSTEMS0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

JIT

SUPPLIER & CUSTOMER

HOLDING SAFETY STOCK

SUPPLY CHAIN BENCHMARKING

E-PROCUREMENT

It shows that the JIT system will beneficial for the organisation as most of respondents

(Distributors & Wholesaler) choosen JIT as yhe most favourable system for SCM in

organisation.

9. In what level company is facing the problems when using these systems?

A) Resistance to change from employees ____

B) Resources shortages ____

C) Skills shortages ____69

D) Insufficient vendor support ____

E) transportation ____

F) other specific ____

By this we got response as the main problem faced by the company is transportation . because

mill situated in a place (jeypore) which is no properly connected with capital city. Due to this

transportation cost a lot to company and increases total cost.

10. Is it less expensive to buy own trucks or hire the transporters for transportation ?

This question provides the suitable answer for the previous question .As company main problem

is transportation, company may adopt their own transportation facilities rather than going for

private transport’s to decrease the transportation charges.

OBSERVATIONS

1. UNREALISTIC FOREST POLICY

The main Raw Materials for manufacturing a paper are Bamboo and Hardwoods. Even through

this unit has its plantation at CHITRAKONDA and MALAKANGIRI both the plantations are taken on

lease basis in the state of ORISSA and own plantation at NANDAPUR(ORISSA) is sufficient to face

the requirements or demand from the customer.There has been extreme uncertainty in regard of forest

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lease and royalties. At first the paper units got forest on favourable basis by fair r unfair industry.

Many state governments used to raise royalties and lease out regularly the forest to paper industry. The

designated forest area in India is about 23% of the total area. The national forest policy announced

recently aims to bring about a rapid in forest cover from 23 to 33%. As the yield from the forest poor,

the target is unlikely to be attained. The forest policy expects the industry to raise the raw material

through farm forestry is association with the growers.This unit insisted that the farmers or the growers

by permitted to raise plantations of Hardwoods like ACCASIA, EUCALYPTUS, CASURINA etc. for

the pulp making on its own and requirement to encourage the initiative with the allocation of large

piece of contiguous land on lease or any other commercially basis.

2.RAW MATERIAL PROBLEM

As per the mills based on conventional Raw Materials such as Bamboo, Hardwood, Cane etc.

These Mill went them without the thought of afforstration. There has been deforestation and both the

central and state government has actively colluded with the paper mills in destroying forests

indiscriminately. The caused the major problems for industry as the raw material supply went down day

by dayComparison shows that wood plantations controlled by the government yields poor results than

that of plantations outside the country, these plantations suffer from lack of resources of Finance,

Technical etc.The raw materials which are made available to these industries are at a very high cost

with the government raising the royalty rates steeply year by year.

3.HIGH COST OF PRODUCTION

The price of the standard equipment needed by the paper industry is very high like wise

chemical raw materials have also risen by similar rate.The price of power and coal which is supplied by

private and public sector units have risen by 40% in the last decade. Similarly the royalties on Bamboo

and Hardwood have been increased by to 700% in the last decade.Those units situated near the forests

the transport costs are also high when they have imported waste paper as their raw material. Over all

problem is the serious power cut, which leads to stoppage of production.

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4.OVER CAPACITY AND UNDER UTILISATION

The encouragement by Government to small paper units, resulted in over capacity in the

industry and severs competition. Those units which could not face the competition and could not bear

the increase in the cost of Raw Materials, transport charges, tripping in wastage and regular power cut

which lead to stoppage of production and the local bodies threatens closure of paper mills.

5.HIGH TRANSPORTAATION COST

As the mill situated such a place far from metro and big cities it cost high to the organization for

the transportation. As to get delivered at these big cities it road way and takes more as they have to go

through transshipment point. For example if there is an order from Delhi it delivered in Rajpura

transshipment and then it delivered at Delhi. So it takes more time to be delivered and as well as it takes

more cost for the transportation.

6.LACK OF NEW TECHNOLOGY

Lack of technology is another problem of this unit. It cost company as a lot breakdown in

working time which results in high cost of production.

SUGGESTIONS

1. To decrease the production cost and increases the profits, this Unit may control or reduce the

administrative overheads and other controllable expenses like- transportation cost, using the

advance technologies etc.2. The industry may go for alternative technology for the quality control and to reduce stoppage of

production.

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3. The industry may try to adopt a marketing orientation to find out new customers like

educational institution and government sectors if applicable, rather than depending much on the

demand from the existing customers only.

4. Maintaining the wastage or maximizing the utilization of available resources and placing the

orders in time after calculating economic order quantity(EOQ) may solve raw material problem.

It is necessary to look after raw material problem. It is necessary to look after raw material

problem in various areas.

5. The industry has a whole can go for different providing policies to meet the competitor price in

the market.

6. The industry may adopt their own transportation facilities rather than going for private

transport’s to decrease the transportation charges.

7. In order to improve the performance in total, it should introduce Management Information

Service(MIS).

8. Industry may search for alternative raw materials for their production process.

9. Company may consider for new product development rather than increasing the existing

production, which has got less demand.

10. To increase the demand for the existing product it must go for proper advertisements and

awareness programmes in the adjacent places where the need of the product is very high and

where the demand for the product is less.

11. Offering incentives or benefits to the production and marketing staff can solve many problems

in the company.

12. Company may consider for expansion of existing plantation of main raw materials is use their

forest policy.

13. To decrease the production cost and increases the profits, this Unit may control or reduce the

administrative overheads and other controllable expenses like- transportation cost, using the

advance technologies etc.

14. The Company should introduce Just in Time method for both the production and supply of

Goods to avoid the inventory handling costs and proper shop floor utilization.

15. The industry as a whole can go for different incentives and discount plans to meet the

customer’s choice and competitor price in the market.

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CONCLUSION

Supply chains encompass the companies and the business activities needed to

design, make, deliver, and use a product or service. Businesses depend on their supply chains to

provide them with what they need to survive and thrive.

“A supply chain consists of all stages involved, directly or indirectly, in fulfilling a customer

request. The supply chain not only includes the manufacturer and suppliers ,but also

transporters, warehouses, retailers, and customers themselves.”

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My aim is To investigate the current situation and future prospect of supply chain

management in Ballarpur Industries Limited . due to business depends on supply chain

management to survive in market it’s a big issue to be studied.so in this summer internship

programme my main objectives are to identify major challenges and developments for SCM and

its related issues in Ballrpur industries limited and To understand the impact of policy making

on SCM and implementation.

And in these seven weeks I got to know that Supply Chain Management plays a big role

in BILT (Unit Sewa) as all other organisation. In these seven I studied that BILT (Unit Sewa)

got a good SCM but with some problem as lack of technology , location

disadvantage ,transportation constraints , high transportation cost ,distance factors from metro

and big cities.

As my observation I suggest to implement Management Information System in the

organisation to have quick and uninterrupted wok , to deal with transportation constraints and

cost it should explore movement of material through rail and potential transporters for specific

market having good line-up for movement of materials.

QUESTIONNAIRE

Dear Respondents,

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I am a MBA student doing my course as per the requirement of B.P.U.T I have been undergoing a

survey method of BILT Papers. Kindly co-operate with me for completing this survey successfully by

giving your valuable response. This study is about marketing demand and perception of different

papers of BILT.

1. Are you aware of Ballarpur Industries Ltd (BILT) Paper ?

a) Yes__________ b) No______________

2. What are the Papers (Brands) you have come across ?

a) BILT__________ b) JK______________

c) ITC___________ d) TNPL____________

e) CENTURY ____________ f) WESTCOAST________

g) RAMANEWSPRINT ___________

3. Do you satisfied with the supply chain management of BILT?

a)not at all b)little c)satisfied d)quite satisfied e)very satisfied

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4. Rank the features that effects your decision making process ?

a) Brand Image_______ b) Price ________ c)Supply Chain _____ d) Quality of paper

5. How do you manage your supply chain? Tick all that apply

A) Close partnership with suppliers & customers

B) JIT supply

C) e-procurement

D) Supply Chain Benchmarking

E) Plan strategically

F) Holding safety stock

G) Other (specify

6. How successful do you think is your company in managing its supply chain in general?

Not successful

at allNot successful

Somewhat

successfulSuccessful

Very

successful

1 2 3 4 5

7. Which of the following you think that your company needs to do in order to manage its supply

chain better?

A) Close partnership with suppliers & customers

B) JIT supply

C) e-procurement

D) Supply Chain Benchmarking

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E) Plan strategically

F) Holding safety stock

G) Other (specify)

8. Does your company have a separate logistics department?

YES NO

9. Does your company have a clear logistics strategic plan?

YES NO

10. Rank the types of systems are currently in use in your company to support Supply Chain

Management?

A) Material Requirements Planning (MRP) ___

B) Warehouse Management System (WMS) ___

C) Customer Relationships Management (CRM) ___

D) Supplier Relationships Management (SRM) ___

E) Just In Time (JIT) ___

F) E-commerce & E-business ___

11. How much did you actually benefit from using these systems?

G) Close partnership with suppliers & customers

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a) Not at all b) Little c)Average d)Greatly e) A lot

H) JIT supply

a) Not at all b) Little c)Average d)Greatly e) A lot

I) e-procurement

b) Not at all b) Little c)Average d)Greatly e) A lot

J) Supply Chain Benchmarking

b) Not at all b) Little c)Average d)Greatly e) A lot

K) Plan strategically

b) Not at all b) Little c)Average d)Greatly e) A lot

L) Holding safety stock

b) Not at all b) Little c)Average d)Greatly e) A lot

BIBLIOGRAPHY

Kotler, Philip, Marketing Management, Delhi, Pearson Education Pvt. Ltd., 2004

Kothari, C.R., Research Methodology, Delhi, Wishwa Prakashan Pvt. Ltd., 2003

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Business Today Magazine

Website referred - http://www.bilt.com

Search Engine- http://www.google.com

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