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A REPORT OF THE ORGANISATION STUDY

UNDERTAKEN AT

JYOTHI LABORATORIES LTD


Guruvayur, Thrissur
680001

SUBMITTED BY
VISHNU A
16MBA14562

1ST SEMESTER

SECTION C

UNDER THE GUIDANCE OF

DR. SUDARSHAN V SESHANNA

No. 319, 17th Cross, 25th Main, J P Nagar 6th Phase, Bangalore – 560078
Karnataka, INDIA
Mail id. vishnuassrk@gmail.com Website: www.bschool.cms.ac.in

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DECLARATION

I VISHNU A, hereby declare that this project report entitled “Organizational

Study” at JYOTHI LABORATORIES is my original work and has not been

previously used for the basis for the reward of other degree. This project is

submitted for the partial fulfilment of the award of Master of Business

Administration of CMS Business School (Jain University), Bangalore,

Karnataka.

I express my sincere thanks to my professor Sudarshan V Seshanna, for his

constant encouragement and his timely advice for this project report.

(Sign of the Student)


VISHNU A

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ACKNOWLEDGEMENT

First and foremost, I am deeply indebted to the management of CMS Business


School and Jain University, Bangalore, for having me admitted to undergo the
MBA program during the academic year 2016 – 18 in this temple of learning.

I would also like to thank my study supervisors Prof. Sudarshan V Seshanna for
the constant guidance and support for the successful completion of this study.

I am also thankful to Mr. Ramakrishnan who helped me throughout the internship


period and to all the respondents in the organization who have extended their
cooperation in providing me with the necessary data for completing this study on
time.

Vishnu A

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CONTENTS

CHAPTER NO: TITLE PAGE NO:

CHAPTER I Introduction
5

CHAPTER II
Company Profile 17

CHAPTER III
Organizational Design
40

CHAPTER IV Business Level


Functions 44

CHAPTER V Findings, Conclusions


& Recommendations 55

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CHAPTER 1

INTRODUCTION

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INTRODUCTION

ORGANIZATION STUDY

ORGANIZATION

An organization is a social unit which is deliberately constructed and


reconstructed to seek specific goals. It is an association formed by a group who
see that there are benefits available from working together towards a common
goal. It is a social unit of people, systematically structured and managed to meet
a need or to pursue collective goals on a continuing basis. All organizations have
a management structure that determines relationships between functions and
positions, and subdivides and delegates roles, responsibilities, and authority to
carry out defined tasks. Organizations are open systems in that they affect and are
affected by the environment beyond their boundaries.

Objectives of the study

 To understand the core business level programs of the organization


 To study in detail, the organization structure and design.
 To explain the possible ways to eradicate weakness and problems in the
ways of suggestions and recommendations.
 To understand the structure and functioning of the organization.

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Limitations of Organization Study

 An in-depth study could not be carried out due to lack of sufficient time.
 There are difficulties obtaining data from executives and managers due to
their busy schedule.
 The reliability of the data used for the study depends on the company’s
report and information given by the executives.

Methodology
The data for the study has been collected from secondary and primary source.

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INDUSTRY PROFILE

Fast Moving Consumer Goods (FMCG) are products that are sold quickly
at relatively low cost. Though the absolute profit made on FMCG products is
relatively small, they generally sell in large quantities, so the cumulative profit
on such products can be large. FMCG Products are generally replaced of fully
used up over a short period of days, weeks, or months, and within one year. This
contrasts with durable goods or major appliances such as kitchen appliances,
which are generally replaced over a period of several years. FMCG industry
provides a wide range of consumables and accordingly the amount of money
circulated against FMCG products is also very high. The competition among
FMCG manufacturers is also growing and as a result of this, investment in FMCG
industry is also increasing. The industry has a good market potentiality because
of low operating cost and strong distribution networks. Population growth is
another factor which is responsible behind the success of this industry. It creates
a wide range of job opportunities. This industry is a stable, diverse, challenging
and high profile industry providing a wide range of job categories like sales,
supply chain, finance, marketing, operations, purchasing, human resources,
product development and general management.

. Household care comprises household cleaners, laundry care, toilet


cleaners, air fresheners, insecticides, Mosquito repellents, polishes and other
products related to household care. FMCG industry is characterized as a
defensive sector with relative inelastic demand, time –lag between expansion of
income and impact on industry, low technological barriers in terms of technology
or investments, imagery and price premium central to FMCG marketing, new
customer acquisition through smaller-sized packaging and low unit prices, high

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competition at various price points especially at the regional levels, enhanced
bribing of customers through freebies, focus on increasing each household care
products are a major segment of the FMCG industry.

The Fast Moving Consumer Goods (FMCG) Industry in India include


segments like cosmetics, toiletries, glassware, batteries, bulbs, pharmaceuticals,
packaged food products, white goods, house care products, plastic goods,
consumer non-durables, etc. The FMCG market is highly concentrated in the
urban areas as the rise in the income of the middle-income group is one of the
major factors for the growth of the Indian FMCG market. The penetration in the
rural areas in India is not high as yet and the opportunity of growth in these areas
is huge by means of enhanced penetration in to the rural market and conducting
awareness programs in these areas. The scopes for the growth of the FMCG
industry are high as the per capita consumption of the FMCG products in India is
low in comparison to the other developed countries. The manufacturing of the
FMCG goods is concentrated in the western and southern belt of the country.
Products which have a quick turnover, and relatively low cost are known as Fast
Moving consumer Goods (FMCG). FMCG products are those that get replaced
within a year. These products are purchased by the customers in small quantity
as per the need of individual or family. These items are purchased repeatedly as
these are daily use products. The price or Value of the products is not very high.
These products are having short life also. It may include perishable and
nonperishable products, durable and non-durable goods.

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INDIAN OVERVIEW

The Indian FMCG sector is the fourth largest in the economy in globally. As per
The Federation of Indian Chambers of Commerce and Industry (FICCI) the
estimated market size of the FMCG segment in India is s 113,000-crore. The
FMCG industry in India was worth around US$ 16.03 billion in August 2008.The
middle class and the rural segments of the Indian population are the most
promising market for FMCG, and give brand makers the opportunity to convert
them to branded products. Most of the product categories like jams, toothpaste,
skin care, shampoos, etc., in India, have low per capita consumption as well as
low penetration level, but the potential for growth is huge. The Indian FMCG
industry is divided into five primary segments – personal care products,
household care products, packaged food products, branded spirit and tobacco
products as well as health care products. World Bank has indicated that India is
regaining economic momentum and growth is expected to recover gradually and
fulfill its high long-term growth potential. Compared with other sectors, the
consumption story remains intact, though the pace of growth has slowed
compared with previous years. The FMCG sector continues to do well on the
back of robust consumption driven by the sheer size of the Indian economy. We
believe that the improving macroeconomic trends are a positive sign for us.
Despite increasing short-term economic uncertainty and GDP projections being
Revised frequently, consumption in India is expected to touch US$ 3,600 billion
in 2020 from US$ 900 billion in 2010, according to the CII and Boston
Consulting Group (BCG) report on Retail and FMCG. The urban markets in India
are poised for exponential growth in the coming years as the urban population
has been estimated to grow at about 2.3 per cent between 2006-2016 while the
overall population is anticipated to grow at an annual rate of about 1.4 per cent.
Thus, acknowledging urbanization at such a massive scale facilitates multiple
opportunities to domestic and foreign majors to invest and expand their presence

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in the Indian urban markets. The urban markets in India are primarily driven by
the youth and their growth is propagated by better infrastructure and facilities
disseminated by the Government. Urban expansion in India is anticipated to pace-
up unlike anything the country or the world has seen before. It took nearly 40
years (from 1971 to 2008) for India’s urban population to rise by nearly 230
million but it will now take only half that time to add the next 250 million,
according to a report by McKinsey.At the same time, with about 70 per cent of
the Indian population residing in the hinterlands, the rural markets too present a
significant opportunity for business conglomerates.

Factor favoring India to Get Competitive Edge

The following factors make India a competitive player in FMCG sector:

(i) Availability of raw materials: Because of the diverse agro-climatic


conditions in India, there is a large raw material base suitable for food processing
industries. India is the largest producer of livestock, milk, sugarcane, coconut,
spices and cashew and is the second largest producer of rice, wheat and fruits
&vegetables. India also produces caustic soda and soda ash, which are required
for the production of soaps and detergents. The availability of these raw materials
gives India the location advantage.

(ii) Labor cost comparison: Low cost labor gives India a competitive advantage.
India's labor cost is amongst the lowest in the world, after China & Indonesia.
Low labor costs give the advantage of low cost of production. Many MNC's have
established their plants in India to outsource for domestic and export markets.

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(iii) Presence across value chain: Indian companies have their presence across
the value chain of FMCG sector, right from the supply of raw materials to
packaged goods in the food-processing sector. This brings India a more cost
competitive advantage.

Analysis of FMCG Sector in India

The analysis of the FMCG sector of India is carried out on the basis of following:

(a) Pest Analysis: Pest analysis of FMCG sector in India is carried out on
political, economic, social and technological aspects. It is explained below:

(i) Political:
 Tax exemption in sales and excise duty for small scale
industries’.
 Transportation and infrastructure development in rural areas
helps in distribution network.
 Restrictions in import policies.
 Help for agricultural sector.

(ii) Economical:
 The GDP rate of Indian economy is increasing every year. It is
expected in future it would be better only in comparison with other
countries.
 Inflation rate is increasing across the world and India is also no
exception. The government and Reserve Bank of India both are

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trying to control the inflation rate with the help of different
measures.

(iii) Social:
 Demographical analysis
 The Indian culture, social & life styles are changing drastically.
The total population is nearly 120 crores and
population includes rich, poor, middle class, male, female,
located in rural, urban and sub urban areas, different level of
education etc.

(iv) Technology:
 Technology has been simplified and available in the industry.
Where technology is not available then it is brought from foreign
countries to meet FMCG sector requirements.
 Foreign players help in high technological development. With
research and development facilities the new technologies are
developed alone or with the help of foreign players.

(b) Main Competitors: The FMCG sector is developing fast and at present there
is high level of competition in this sector. The main competitors are HUL,
Britannia, Nestle, Cadbury, Colgate, Amul, ITC, Dabur, Emami, Nirma and
Marico.

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(c) SWOT Analysis:
SWOT analysis of this sector is carried as follows:

(i) Strengths:
• Well-established distribution network extending to rural areas.
• Strong brands in the FMCG sector.
• Low cost operations

(ii) Weaknesses:
• Low export levels.
• Small scale sector reservations limit ability to invest in technology and achieve
economies of scale.
• Several "me-too’’ products.

(iii) Opportunities:
• Large domestic market.
• Export potential
• Increasing income levels will result in faster revenue growth.

(iv) Threats:
• Imports
• Tax and regulatory structure
• Slowdown in rural demand

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(d) Factors Affecting the Growth
Over the years, demand for consumer durables has increased with rising income
levels, double-income families, changing lifestyles, availability of credit,
increasing consumer awareness and introduction of new models. Products like air
conditioners are no longer perceived as luxury products. The biggest attraction
for MNCs is the growing Indian middle class. This market is characterized with
low penetration levels. MNCs hold an edge over their Indian counterparts in terms
of superior technology combined with a steady flow of capital, while domestic
companies compete on the basis of their well-acknowledged brands, an extensive
distribution network and an insight in local market conditions. With companies
opting for information technology a reduction in inventory levels and an
improvement in the working capital cycle are likely. This will benefit companies
by controlling costs and improving margins.

(e) Major Government Policies/Changes:


In the context of the positives and the negatives, investing in FMCG stocks is a
tricky prospect. Given this, one has to be active with FMCG stocks and should
book profits as soon as the targeted returns are reached. Unlike earlier times,
nowadays, one cannot afford to buy an FMCG stock and forget about it for a long
time.
It is unlikely that the government's initiatives will boost the sector overnight. The
ongoing price wars mean that company earnings will continue to be volatile.
Hence, in the short term, one should look at individual companies' prospects
rather than the overall sector's prospects. This means that it is better to leave

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mutual funds that concentrate on FMCG companies and instead buy shares
depending upon the company.
It is not necessary that an MNC will be better than an Indian company. One should
look at a company's profile and analyses its prospects before investing in its
shares. It is not that you will lose out by buying FMCG stocks. But, in buying an
FMCG stock, it will be ideal to cash in during short bursts of activity.

(f) Expected Future Trends


Following trends are expected in future:
Huge investments in promoting brands, setting up distribution networks and
intense
Competition are what FMCG companies face. Creating strong brands is important
for FMCG companies and they will have to devote considerable money and effort
in developing brands.
Given the fragmented nature of the Indian retailing industry and the problems of
infrastructure, FMCG companies also need to develop extensive distribution
networks to achieve a high level of penetration in both the urban and rural
markets. This will require a lot of resources. The unorganised sector has a
presence in most product categories of the FMCG sector. Small companies from
this sector have used their locational advantages and regional presence to reach
out to remote areas where large consumer products have only limited presence.
Their low cost structure also gives them an advantage. And this will only lead to
price wars, which, though good for consumers, will affect the bottom lines of
companies.

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CHAPTER II

COMPANY PROFILE

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COMPANY PROFILE

Jyothy Laboratories Limited (JLL) is a fast moving consumer goods


(FMCG) company and caters to the fabric care, household insecticide, surface
cleaning, personal and air care segments of the Indian market. JLL’s products
include fabric whitener, mosquito repellent, dishwashing, bath and incense
products. With 21 manufacturing units in 14 locations across India, JLL has a
distribution sales network of over 1,500 people catering to approximately 2,500
distributors. Its flagship brand, ‘Ujala’ a fabric whitener has a dominant market
share of 73.50 % and it had a growth of 13% in the last financial year 2008-
09(March ending). The other major brands Maxo and Exo had a growth of 30.8%
and 98.7 respectively in the FY 2008-09. The Company’s future plans include,
launching of Exo Round Dish Shine Bar, increasing Ujala Stiff and Shine’s
market presence, entering into joint ventures for sales and marketing of branded
products, pursuing selective acquisitions and concentrating on supermarket and
hypermarket sales.
Jyothy Laboratories currently has a formidable array of brands with strong
consumer equities, excellent product quality and an amazingly loyal consumer
base. Ujala, Maxo, Exo , Pril , Margo, Fa are household names in the country
today. The company has had a history of successful new product launches, has
had the gumption to enter competitive market segments and create brands that are
either Number 1 or Number 2 or strong challenger brands in every category where
it is present. The bedrock of its success has been great consumer insights, deep
distribution reach, strong execution capabilities, fiercely passionate employees
and an aggressive feet-on-street army scouring all rural markets and distributing
products with great pride, vigor and passion.

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These individuals provide leadership and the strategic management edge to
convert vision into cohesive action for achieving the mission of offering
innovative products and ensuring customer delight.

The only constant in life, they say, is change! Change for the better. Change as
synonymous for growth. Change as in reaching out to new territories and change
that accrues with the achievement of objectives.
Jyothy Laboratories Limited represents an example of this phenomenon of
continuous change. A company that began 30 years ago with idealistic values as
its most important raw material! Values that touched upon product features,
customer satisfaction, innovativeness and financial operations. Sure enough, the
Jyothy basket of products reflected those values. Products that clean, whiten,
refresh, delight and protect.
It began with our flagship brand - Ujala - a liquid fabric whitener. A product that
has become a universal symbol of purity and integrity. This was followed by other
products - each an offering that touched the lives of consumers in a binding way.
The cyclothrin powered mosquito repellent 'Maxo'. Utensil cleaners under the
brand name 'Exo'. Fragrance Incense sticks called 'Maya'. A range of personal
care products under the brand name 'Jeeva'. And a new retail space has been
created for 'Fabric Spa', a laundry chain with brand extensions. Add to that the
'Henkel' brand that was acquired by Jyothy, with their basket of product lines.
Each and every step in line with our mission of constantly changing to new and
higher paradigms of growth and diversification.

The company is principally engaged in manufacturing and marketing of fabric


whiteners, soaps, detergents, mosquito coils and incense sticks. They operate in
two segments: Soaps and Detergents and Home Care. Soaps and Detergents
include fabric whiteners, fabric detergents, dish wash bar and soaps including

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ayurvedic soaps and Home Care products include incense sticks, dhoop and
mosquito coils and scrubber, it also include tea and coffee. The company is
headquartered in Mumbai. The company has 28 manufacturing facilities across
15 locations, Trichur, Wynad, Roorkee, Pondicherry, Bangalore, Chennai,
Hyderabad, Bhubaneshwar, Bankura, Guwahati, Baddi, Silvassa, Salem, Jammu
and Pithampur. Most of their units are ISO 9001 and ISO 14000 certified units.
The company exports their products to 14 countries including Sri Lanka,
Bangladesh, Mauritius, Malaysia, UAE, Hong Kong and Saudi Arabia. Jyothy
Laboratories Ltd was incorporated on January 15, 1992 as a private limited
company with the name Jyothi Laboratories Pvt Ltd. The company was originally
started as a proprietary concern in Kerala by M P Ramachandran. In the year
1992, the company commissioned factory in Chennai to make Ujala. In the year
1994, they commissioned a plant in Pondicherry, their first in a backward area
utilizing Government incentives. In the year 1995, the company launched Nebula,
an oil-based antibacterial washing soap in Kerala. In October 6, 1995, the
company became a public limited company and the name was changed to Jyothi
Laboratories Ltd. In August 12, 1996, they further changed their name to Jyothy
Laboratories Ltd. In the year 1997, they launched Ujala all over India. In the year
2000, the company launched Maxo (mosquito repellent) in the state of West
Bengal. Also, they launched Exo, an antibacterial dish water bar in Kerala. Later,
they launched Exo across Karnataka, Tamil Nadu and Andhra Pradesh. In the
year 2001, the company acquired detergents plant at Pithampur, Madhya Pradesh
from Tate Chemicals Ltd. They launched Vanmala washing soap in Kerala and
Maya incense sticks in selected states. In the year 2002, the company acquired
Sri Sai Homecare Pvt Ltd, which has a mosquito coil production facility in
Hyderabad. Thus, Sri Sai Homecare Pvt Ltd became a subsidiary company. Also,
the company launched Jeeva Ayurvedic Soap in the market. In the year 2005, the
company launched Exo Liquid and Ujala Stiff & Shine in South India. During the
year 2006-07, the company started marketing and distributing coffee products

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under the brand name 'Continental Speciale' in a joint venture with CCL Products
(India) Ltd. They acquired trademark and copyright for the brand 'More Light'
and 'Ruby'. Also, they launched extensions in the household insecticide segment
under the brand name 'Maxo' - Liquid and Aerosol. In November 2006, the
company established a 50:50 joint venture company with Shobha Kapoor and
Ekta Kapoor, namely Balaji Telebrands Ltd for marketing and distribution of
Ekta's 'Karyasiddhi Graha Shanti Dhoops'. During the year 2007-08, the company
commenced production in new manufacturing facilities at Jammu in Jammu &
Kashmir for making mosquito repellent coils, Roorkee in Uttarakhand for making
Ujala fabric whitener and Baddi in Himachal Pradesh for Ujala Stiff and Shine.
In March 2008, they launched Ujala Stiff & Shine all over India. During the year
2008-09, the company forayed into service sector through new venture 'Jyothy
Fabricare Services Ltd', a subsidiary company for providing world class laundry
at affordable price at consumer doorstep. They launched Jyothy Fabric Care
Services Ltd and Fabric Spa. They launched Exo Dish wash liquid in all southern
states and Exo Floor Shine products in the State of Kerala. In April 2009, the
company commenced full scale production of mosquito repellent coils in their
Jammu unit. In October 2009, they expanded Exo dishwashing line from South
India to Pan India. In November 2009, they launched fabric Spa at Bangalore.
Also, the company bought technology DEPA, a repellent formulation for
protection from all blood sucking insects and mosquitos from DRDO. In February
2010, they launched multi insect repellant in collaboration with prominent
division of Defense Research and Development Establishment. The company has
proposed to amalgamate Sri Sai Homecare Products Pvt Ltd, a wholly-owned
subsidiary company with the company with effect from April 1, 2010. They have
planned brand extension to take Ujala detergent to other states in a phased
manner. The company is in talks with West Bengal-based detergents and allied
products company Sachem Industries to buy their flagship laundry detergent
brand, Safe. The company has had a history of successful new product launches,

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has had the gumption to enter competitive market segments and create brands that
are either Number 1 or Number 2 or strong challenger brands in every category
where it is present. The bedrock of its success has been great consumer insights,
deep distribution reach, strong execution capabilities, fiercely passionate
employees and an aggressive feet-on-street army scouring all rural markets and
distributing products with great pride, vigor and passion.
These individuals provide leadership and the strategic management edge to
convert vision into cohesive action for achieving the mission of offering
innovative products and ensuring customer delight.

MISSION, VISION AND QUALITY POLICY

MISSION

Provide brands that denote superior quality, to touch and positively impact
the daily lives of consumers. To ensure that our brands, business operations and
corporate policies translate the core philosophy of offering value for the money
spent to experience our products. Ensure that our people, processes and products
reflect the ideals of integrity, ethics and professionalism.

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VISION

Develop innovative brands, tap high growth categories, reach untapped


markets and explore untapped segments to meet the day-to-day requirements of
every Indian household.

QUALITY POLICY

The Company adhered strictly to R&D-defined quality norms for superior


products. The vendors’ site and raw materials were checked to match desired
quality. In-process quality checks monitored process effectiveness. End products
were checked for proper packaging and leakages. The Company’s strong quality
discipline resulted in ISO 9001 and ISO 14001 certifications across most of its
manufacturing units.

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PRODUCT PROFILE

The entire production activities of the company having places under the
production department, JLL has a well-established production planning and
control system. The products are:

1. Ujala Supreme

2. Ujala Washing Powder

3. Ujala Stiff & Shine

4. Maxo Aersol

5. Maxo Cyclothin Coil

6. Maxo Cyclothin Liquid

7. Exo Dish Wash Bar

8. Exo Dish Wash Liquid

9. Jeeva Naturals

10.Maya

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BUSINESS REVIEW

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PRODUCT PROFILE

Product profile of JLL

Fabric care Mosquito Dish washing Personnel care&


repellent household
products
products

UJALA
MAXO EXO BAR JEEVA
SUPREME
COILS
STIFF EXO LIQUID MARGO
&SHINE

TECHNO MAXO
BRIGHT PRILL FA
SPRAY
HENKO
MILITERY BREF TOILET
WET AND CLEANER MAYA
Mr.WHITE WIPE AGARBATHI

CHEK
EXO SAFAI
SCRUBBER

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PRODUCTS:

1. Ujala Supreme

Ujala is synonymous with the genesis of Jyothy Laboratories Limited and has
created history in more ways than one. Ujala - the flagship brand of Jyothy
Laboratories Limited marked the beginning of endeavour to offer innovative and
value for money products to the Indian consumer. The product category for a
liquid fabric whitener was literally non-existent prior to the advent of Ujala.
While the “HAVE YOU CHANGED OVER TO UJALA” punch phrase captured
the imagination of people throughout the country, Ujala ushered in a revolution,
with consumers shifting from powder blue to liquid blue. Positioned on the
platform of whiteness and brightness, Ujala is a market leader in its category - the
growing market share is a testimony to the brand’s popularity. Ujala Supreme -
used as a post-wash application for brightening white clothes has an instant
whitening system that assures uniform and consistent results. Ujala Supreme is
available in 9ml, 30ml, 75ml, 125ml and 250 ml bottles.

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2. Ujala Washing Powder

Ujala Super Washing Powder – launched with an innovative formula is a


reflection of the constant endeavour of the R&D centre at Jyothy Laboratories
Limited. Ujala Super Washing Powder, with its advanced cleaning power ensures
superior cleaning at a reasonable cost. While its special action penetrates deep
into clothes to dislodge stubborn dirt, oil ad stains; Ujala Super Washing Powder
has pleasant fragrance, leaving clothes fresh and clean. Absolutely soft and safe
on hands, Ujala Super Washing Powder is tough on grime and provides superior
cleaning at an affordable cost. Ujala Super Washing Powder is available in 25gm,
500gm and 1kg packs.

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3. Ujala Stiff & Shine

Ujala Stiff & Shine is a shining example of the product development initiatives
of the R & D division at Jyothy Laboratories Limited. Positioned uniquely to
address the need to keep ensure that clothes retain the crisp feel and a sparkling
appeal, Ujala Stiff & Shine is specially formulated to maintain clothes at their
crisp and shining best. It is suitable for clothes of all fabric type and colours. A
post-wash liquid fabric enhancer, Ujala Stiff & Shine helps provide the stiffness
for that crisp look without the white patches and bad odour commonly associated
with starch. What’s more, unlike the inconvenient and messy experience of using
starch, Ujala Stiff & Shine is handy and easy to use. Ujala Stiff & Shine gives
that special sheen to clothes, making them as good as new - offering premium
quality and utmost care for your laundry. Ujala Stiff & Shine is available in 20gm
sachets, 100ml and 200ml bottles.

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4. Maxo Aerosal

Maxo Aerosol is a must have in your household kit – to ward off pesky pests.
Fully loaded with a potent combination to ward off cockroaches, ants, houseflies,
lizards etc. Maxo Aerosol is formulated to hunt out these pests from their hideouts
and eliminate them. Maxo Aerosol is presented in handy containers of 150ml and
300 ml.

5. Maxo Cyclothrin Coil

Maxo – the offering in the Household Insecticide segment from Jyothy


Laboratories Limited took the mosquito repellent market by storm.

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Maxo Cyclothrin coils have been developed to offer total protection from
mosquitoes. While other mosquito coils tackle mosquitoes only when they come
in proximity to the coil, the unique action of Maxo Cylothrin coil smokes out
mosquitoes from their hideouts and destroys them providing corner to corner
protection and a peaceful sleep all through the night. Besides having a pleasing
fragrance, Maxo is specially designed to avoid breakage while separating the
coils from the packaging. Maxo Cylothrin coils are available in Regular, XL and
Giant sizes and provide protection for 8, 10 and 12 hours respectively.

6. Maxo Cyclothrin Liquid

Maxo Cyclothrin Liquid in a handy liquid vaporizer format offers complete


and cost effective protection for 45 and 60 nights. Formulated with active
ingredients, this vaporizer provides a potent and convenient solution to counter
mosquitoes and constitutes the first line of defence against potential diseases and
health hazards. Maxo vaporizer is available in bottles of 30ml for 45 nights and
45ml for 60 nights.

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7. Exo Dish Wash Bar

Exo Dish wash is yet another offering that draws on the wealth of experience
of our R & D division. The product is not meant to just clean utensils, but also
provide protection form bacteria and harmful germs. Fortified with powerful anti-
bacterial agents, Exo Dish wash bar fights and kills disease causing bacteria that
enter food through contamination of utensils.

The powerful formula removes sticky oil stains, grime and stubborn burnt food
residues from utensils and makes them safe and sparkling. Exo Dish Wash Bar is
available in 190gms and 380gms packs.

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8. Exo Dish Wash Liquid

Exo Dish Wash liquid presents all the potent qualities of the innovative Exo
formulation in a convenient to use liquid variant. Exo Dish Wash Liquid is the
only anti
Bacterial dish wash liquid with Cyclozan as the active ingredient. Convenient and
handy, this is ideal for stainless steel, crockery, cutlery and non-stick kitchen
ware. Exo Dish Wash Liquid ensures streak less glasses, gleaming cutlery and
sparkling dishes while disinfecting them. Exo Dish Wash liquid is presented in
elegantly designed 500ml bottles & 125ml bottles.

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9. Jeeva Naturals

Jeeva Naturals is yet another special offering from Jyothy Laboratories


Limited’s Personal Care portfolio. This specially formulated beauty soap range
is packed with hand-picked ingredients from nature to enhance the experience for
the discerning consumer.

Jeeva Naturals is a range of soaps that encapsulates the goodness of coconut milk.
Coconut milk is nature`s treasure trove of minerals, vitamins, essential oils and
proteins. This is further enriched with other natural ingredients like Kasturi
Manjal, Milk protein and Jasmine, renowned for their skin nourishing benefits.
Jeeva Naturals is available in three variants - Coconut Milk with Milk Protein,
Coconut Milk with Jasmine and Coconut Milk with Kasturi Manjal, and is
presented in 75gm packs.

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10.Maya

Maya is a fragrant offering from Jyothy Laboratories Limited comprising of a


wide range – an ideal fragrance for every occasion in the form of agarbathis
(incense sticks).
Inspired by nature, the enchanting array of incense sticks provides the perfect
ambience and enhances the experience to match every mood. Carefully selected,
each fragrance from the exotic collection is formulated to spread faster and linger
longer. The Maya bouquet comprises of a wide range of floral, traditional and
aromatic fragrances like Rose, Jasmine, Sandal, Sarvasugandhi, Magic, Milan,
Prarthana and Raaga 4-in-1, with many more varieties collection. The Maya range
is presented in attractive pouches and cartons containing 8, 15, 20, 40 and 100
sticks.

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AREA OF OPERATION

Jyothy Laboratories Limited is operating in the FMCG industry in India. It has


a well-established distribution network and very skilled manufacturing units
across in India. It manufactures the products through manufacturing facilities in
14 locations across India, eight of which are tax efficient units. Tax efficient
facilities are set up to take advantage of certain tax breaks offered by the central
and state governments. Manufacturing facilities located in these geographical
locations are granted the following

 Exemptions from income tax on profits made from these facilities.


 Exemptions and refunds of excise duty on products manufactured at those
units.
 Exemptions from payment of VAT on sales of products of these units
within specified areas by concerned state governments. Jyothy laboratories
established a distribution network across India with a sales staff of over
1500 people servicing approximately 500 distributers, Ujala fabric
whitener was available in approximately 2.80 million outlets in India as
June 30, 2007.

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CHAPTER III

ORGANIZATIONAL DESIGN

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STUDY OF ORGANIZATION DESIGN

An organizational structure defines how activities such as task allocation,


coordination and supervision are directed towards the achievement of
organizational aims. It can also be considered as the viewing glass or perspective
through which individuals see their organization and its environment.

Organizations Are a Variant of Clustered Entities

An organization can be structured in many different ways, depending on their


objectives. The structure of an organization will determine the modes in which it
operates and performs. Organizational structure allows the expressed allocation
of responsibilities for different functions and processes to different entities such
as the branch, department, and workgroup an individual.

Organization structure affects organizational action in two big ways. First, it


provides the foundations on which standard operating procedures and routines
rest. Second, it determines which individuals get to participate in which decision-
making processes, and thus to what extent their views shape the organization’s
actions.

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ORGANIZATION CHART

BOARD OF DIRECTORS

CHAIRMAN & MANAGING DIRECTOR

DEPUTY MANAGING DIRECTOR

PRODUCTION HUMAN ACCOUNTS & RESEARCH


DEPARTMENT FINANCE AND MARKETING
RESOURCE
DEPARTMENT DEVELOPMENT DEPARTMENT
DEPARTMEN
T
T
PRODUCTION SALES
HR MANAGER ACCOUNTANT
MANAGER MANAGER
VICE
PRESIDENT
HR ASSISTANT R&D
PRODUCTION SALESMEN
EXECUTIVES EXECUTIVES ACCOUNTANTS

SUBORDINATES

SUBORDINATES SUBORDINATES SUBORDINATES

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Board of Directors

Mr. M. P. Ramachandran……………Executive Director (Chairman and


Managing Director)
Mr. K. Ullas Kamath………………...Joint managing Director (Deputy
Managing Director)
Ms. M. R. Jyothy………………………...Whole time Director
Mr. Nilesh B. Mehta……………………...Independent Director
Mr. K. P. Padmakumar…………………...Independent Director
Mr. Bipin R. Shah………………...............Independent Director
Mr.S. Raghunandan………………………Whole time director &CEO
Mr.R Lakshminarayanan………….Independent director
Mr.M.L.Bansal……………………CFO & Company secretary

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CHAPTER IV

BUSINESS LEVEL FUNCTIONS

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BUSINESS LEVEL FUNCTIONS

An organization to perform efficiently goes for the diversion of work.


Dividing of work naturally means identifying of individual activities, which in
turns helps in organization goals. But once the various activities are identified
then that has to be grouped on some logical base so that group can be organized
“Departmentation refers to process of growing activities into units for the purpose
of administration

Jyothy Laboratories Limited departmentation


1. Finance
2. Marketing
3. Human Resources
4. Research and Development
5. Production
6. Sales

FINANCE DEPARTMENT

Jyothy Lab Limited follows a centralized Accounting system. It’s having


its own policies. A part of profit is used as working capital. Chief Financial
Officer is the head of this department. Jyothy Lab maintains proper books of
account every year.

1) Planning of funds:
Careful estimation of total funds require by the manager is called planning
of funds. It can be either fixed or current asset or also working capital

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requirement. The working capital estimation is made by deep analysis as the BSP
which deals with the steel production which needs more capital.

2) Allocation of Funds
Not only planning of funds but also to provide the funds to the proper place
at proper time are also an important task to be done by the financial manager the
financial manager first studies the requirement and then distributes funds. It
spends most of the amount for the improvement of the company’s services and
also for fixed assets like machinery.

3) Investment Decisions
The decision on the investment whether it should be of capital or assets
comprises the investment decision. The investment in capital asset is done after a
careful study over the profitability, safety liquidity and solvency factor of that
asset.

4) Recording of Information
All the transactions are recorded in the journal and posted to ledger. Each
pin of transaction is recorded that takes places as it helps in better control and
effective supervision of funds.

5) Preparation of Financial Statements and Evaluation


The financial department will prepare the year ending financial statement
to check the profit and loss of the dairy of that particular year. It also evaluates
the post-performance and the present and takes the corrective messages if
required .BSP submits its annual reports to the concerned departments regarding
its financial strengths and weakness of the firm by properly establishing
relationship between the items of balance sheets, profit and loss account.

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MARKETING DEPARTMENT

Jyothy Lab’s marketing is a key factor in developing brand awareness and


stimulating consumer demand. Over a period of time Jyothy Lab have build
substantial brand equity for the products and services as a result of the effort of
marketing system. Jyothy Lab invests in advertisements and sales promotion
(SAP) to build awareness and loyalty for brands in the minds of consumers.
During the financial year ended June 30,
2006, ASP expenditure constituted 9.08% of the consolidated total income and
during the financial year ended June 30, 2007, it was 9.09% of the consolidated
total income. ASP is incurred both on strengthening established brands and
nurturing new ones. JLL use various media such as television, radio, press,
outdoor hoardings, and the internet to communicate with consumers. It also
focuses on marketing to retailers, increase brand awareness and generate positive
placement of our products in retail outlets.

HUMAN RESOURCES DEPARTMENT

Jyothy Labs a professionally managed company that has sought to build


for itself a stimulating work culture that empowers people, promotes team
building, encourages new ideas and motivates performance. JLL believe in
meritocracy and this policy commences with hiring individuals with the right
experience while ensuring that progress in the organization is not dependent
solely on tenure. As at July 31, 2007, JLL had over 3,400 employees in India.
The number of employees in each of divisions as of that date is follows:

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Sales (All India) – 1362 employees;
Production (21 factories) – employees;
Machine Designing & Fabrication – 90 employees;
Information Technology – 15 employees;
Research & Development – 14 employees; and
Administration (head office and regional officer) – 71 employees.
As at July 31, 2007, approximately 475 of employees at two locations were
members of trade unions and JLL entered into wage settlement agreements with
then. JLL have had no recent strikes or work stoppages and JLL have a good
relationship with the workforce.

PRODUCTION DEPARTMENT

Production refers to the transformation of various raw materials inputs into


physical outputs or finished products. Among all the functional area of
management production is considered to be crucial in any industrial organization.
All other activities revolve around this activity. The end product of the production
activity is the creation of goods and services for the satisfaction of human wants.
Production activity is the step-by-step process by which raw material and other
inputs are converted into finished goods or products.

RAW MATERIALS:

Across the products that JLL makes, some of the major raw materials
include HDPE, acid slurry, synthetic organic dye, Koylene, LABSA, Esbiothrin
and brown saw dust. High Density polyethylene (HDPE) is used for packaging

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purposes and it is the largest raw material consumed by the company. Brown saw
dust, required for the mosquito repellent coils is a seasonal commodity and is
stock piled to ensure year round production of coils.
JLL is a large consumer of plastics. The costs of this packaging material
are directly linked to global crude oil prices. A spurt in the same could lead to
reduced margins.

SKILL
Jyothy laboratories believe that employee base is a key competitive
advantage. The senior management team has a breadth of experience in the
FMCG industry. The skills and diversity of employees gives the flexibility to
respond to the needs of our customers and customers. The company dedicated to
development of expertise and know-how of the employees and continues to invest
in them through training and skills. JLL’s well-qualified and experienced
management team has played a key role in the development of good corporate
governance, effective internal controls and accounting policies, strong employee
relation s, and stable supply chain relationships. The organization provides
different types of training for the employees in the different jobs. They are

INTERNAL TRAINING:-

 Training needs of various departments are provided by the human resource


 Administration department, based on the course planner.
 Periodical training is given to the marketing executives.
 Both on job and off job training is provided to the technical and clerical
staff.

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EXTERNAL TRAINING:-

 specialized training to technical and quality control staff


 Seminars, convention, conference and workshops.
 Customer awareness
 In plant training will be given to the employees and students.

STYLE
The organization has a Top down style of management. It also has a
Participative style of management where the orders flow from the superior to the
subordinate. It has a two-way communication from both the direction in the
organization. The management gives more importance to the employee’s views
while the decision is to be taken it also considers the farmers views while taking
some decision as it is a cooperative society.

Top down Decisions


 Fixing the targets to the employee and the workers who are working in the
Organization.
 Reducing or increasing the price of the product
 Policy issues

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DISTRIBUTION AND CHANNEL MANAGEMENT

We needed to have a unified sales strategy in the market place wherein we


believed in “Bigger is better” as a guiding philosophy and today we have a single
distributor selling all our products under one unified umbrella.
The number of distributors has been rationalized. Earlier, the company was
functioning with owned depots and Commercial Sales Agents whereas we have
now shifted our thrust to C&F outlets. The top 20 per cent of our key distributors
will be covered by the company’s field force, while the rest will be taken care of
by the distributor’s salesmen.
In the rural areas, we are distributing through a super stockiest. Zonal
Commercial Structure has been set up, to expedite business with distributors and
faster settlements. This will result in good savings in distribution cost.

Automation of Secondary Sales and Order booking has been implemented and
eventually all Distributor Claims and Secondary Schemes will be automated
through the same software by the end of this financial year. We have rationalized
our channel margins in line with the competition.

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LEVELS OF MANAGEMENT
The organization has got three levels of management:

TOP LEVEL
It includes board of directors, chairman, managing director and chief
general manager and senior executive come under this level. They are concerned
in determining policies, plans and procedures of the Union.

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MIDDLE LEVEL
It includes all the department heads, Such as, General Manager for
personnel, Financial and Processing department, marketing department.

LOWER LEVEL
It includes all the clerks and employee working under different department.
These clerks and employees are working under the guidance and control of the
departmental heads i.e., of General Manager.

STRATEGY
Jyothy Lab intends to work toward achieving the vision and to grow
business by implementing the following key strategies.

1. Leverage the dominant Ujala brand with other branded fabric care products,
the Ujala Stiff and Shine and Ujala Washing Powder. JLL believe that the
well-known brand equity of ujala and wide distribution reach will help
successfully develop ujala stiff and shine as a national brand and ujala
washing powder as a strong regional brand.
2. JLL plan to increase the market share and presence of the Maxo products
those liquid vaporizers, aerosol spray and coils.
3. JLL intend to utilize wide distribution network and marketing expertise to
attract joint venture partners with existing branded products as well as new
and innovative product ideas.

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4. JLL seek to improve efficiencies and cost from the sourcing of the raw
materials to the supply of products to consumers.
5. JLL seeks to increase focus on supermarket and hypermarket sales.
6. JLL intend to make acquisitions in the future as part of our growth strategy
in India and intend to target acquisitions which will strengthen market position
in key product areas or manufacturing capabilities.

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ACHIVEMENTS AND AWARDS

ACHIEVEMENTS

1. Jyothy Laboratories releases its first print advertisement in the Kerala- based
Mathrubhumi newspaper in 1986.
2. Ujala becomes an INR 100 crore Brand in1999.
3. Diversified into the household insecticide and utensil care segments with the
launch of Maxo and Exo new brands.
4. Acquires trademark and copyright for the More Light and Ruby brands.
5. Moves its registered office to its own building ‘UJALA HOUSE’ in Mumbai
at 2008.
6. Forays into service sector through new venture ‘Jyothy Fabricare Services
Limited’ to provide world-class laundry at affordable price at consumer
doorstep.

AWARDS

1. Awarded the ‘AAA Brand Performance Award’ for Maxo by the All India
Advertisers Association in 2003.
2. Company was awarded the ISO-14001 Certificate and an ISO 9001
certification for all of its manufacturing facilities & R & D Centre.

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CHAPTER V

FINDINGS, CONCLUSIONS &


RECOMMENDATIONS

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FINDINGS

 Latest technology has been used in production.


 Good infrastructure
 Employee Loyalty towards the Company
 There is a mismatch between production and sales activity.
 Security systems are very good.
 Medical facility is available and emergency equipment acts greatly

SUGGESTIONS

 Can be open to recruitment of youngsters along with experienced as this


increases the chances of new innovative ideas of production along with
marketing for the benefits of the company in the long run.
 Should get into more aggressive marketing to gain the lion’s share in the
market.
 Should make an attempt to make company records digital and save it on the
cloud, this will result in clearing up the used spaces in the company and
which in turn can be used for more productive purpose.
 Should constantly keep updating the technology as and when it comes with
regards to computers, employees must undergo significant training on the
same.

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CONCLUSION

The study indicate that the positive aspect is that the company insist on good
labour relation and works for good harmony within the organisation .More than
earning profit the company concentrates on many other aspects that it needs to
survive the competition in the market. Company provides its employees with
social and cultural programmes that are very much needed for the employees.
The company has an effective human resource department where in the
employees are given good remuneration, incentives and extensive care is taken
by providing facilities such as canteen, medical facilities, and extracurricular
activities.

After the completion of industrial training we enhanced competencies &


competitiveness in our respective area of specialization. We tried to relate the
experience in the workplace with knowledge learned in the institute & applied
the knowledge on the job under supervision.

Here, we gained the experience & knowledge that can be used for suitable job
without delay after studies.
We learned soft skills appropriate to the work environment. Also get
improvised in communication skills. We assessed career ability, knowledge &
confidence as well as enhanced our marketability to be more competitive.

With experience, knowledge & skills acquired during industrial training we will
be better prepared to face working world.

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