Plastic Industry by mnmgroup

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									About the plastic industry:

Plastic industry encompasses areas of activities including manufacturing polymer

materials (natural and synthetic compounds), building construction, packaging

or transportation. Plastic industry covers a large area ranging from aerospace to

electronics industry and that is why plastic industry has a huge potentiality over the

other associated industries. This plastic industry is a vivacious and global industry that

covers sectors from household commodity to polymer. Plastic industry also include

fields like biochemicals, petrochemicals, ceramics.

In the early phases, plastic industry was built up with natural and synthetic materials

of different forms, attributes and appearances. Over time, plastic industry started

developing on the basis of organic compounds (a material that contains carbon and

hydrogen and other elements), rather than natural and other synthetic materials.

Finished products of plastic industry

Common finished products of plastic industry include industrial plastic products, plastic

aircraft products, plastic bags, plastic basins, plastic bottles, plastic bins, plastic boxes,

plastic cans, plastic caps, plastic clothings, plastic dies and molds, plastic containers,

plastic films, plastic foams, plastic fountains, plastic glasses, plastic lenses, plastic

tubes, plastic trays, plastic toys and so many.

Small scale Industries

The small-scale industrial has changed over time. Initially they were

classified into two categories- those using power with less than 50 employees and those

not using power with the employee strength being more than 50 but less than 100.
However the capital resources invested on plant and machinery buildings have been

the primary criteria to differentiate the small-scale industries from the large and medium

scale industries. An industrial unit can be categorized as a small- scale unit if it fulfils the

capital investment limit fixed by the Government of India for the small-scale sector. As

per the latest definition , for any industrial unit to be regarded as Small Scale Industrial

unit the following condition is to be satisfied: - Investment in fixed assets like plants and

equipments either held on ownership terms on lease or on hire purchase should not

be more than Rs 10 million. However the unit in no way can be owned or controlled or

ancillary of any other industrial unit.
PROFILE OF THE COMPANY

Name:

SONA PET INDUSTRIES

Owner:

M.R A.S Abdul Rahim.

15th July 2001.

Incorporated on:

Mode of business: single proprietorship

Initial investment:

Rs.80, 00,000/-

Manufacturing of: PET, H.D.P.E and P.P Bottles Jars.

Machines used:

1.Injection moulding machine

§

50 super bead machine.

§

100 super bead machine.

§

180 super bead machine.

2. Stretch Blowing Machine

3. Re-Processing Machines.

4. Air Compressor.

5. Heating Oven .

6. Lathe Welding Machine.

Raw Materials From: Rajasthan, Mumbai, Delhi.
Achievements: Asia’s 1st company to produce Pet Pots

Company guide: Ashiq Ali.

SONA PET INDUSTRIES is a small scale industry which had registered under SSI Act

(small Scale Industries Act). SONA PET INDUSTRIES was incorporated on 15th July

2001 as private company. This is a plastic company that manufactures pots,jars,jarlids

The company SONA PET INDUSTRIES is a single proprietorship owned by Mr.

A.S.Abdul Rahim. He put forwarded Rs.80lakhs (Rupees Eighty Lakhs Only) as the

initial investment to run the company. And to highlight the companies profile SONA

PET INDUSTRIES has launched a new product named “PET POT” which is first ever

produced in Asia. The article also has come in the Reliance Magazine.

The company SONA PET INDUSTRIES is one of the leading manufactures and

suppliers of PET, H.D.E.P,& P.P bottles and jars in all over the Tamil Nadu. The

company dealing with some companies of Rajasthan, Mumbai and Delhi for the

purchasing of raw materials and spare parts of machines. The company has also

insured all their staffs as well as the labours and the property in the Life Insurance

Corporation ltd.

The company has the following departments:

Ø Production Department

Ø Finance Department

Ø Marketing Department

Ø Personnel Department

Ø Packaging and Inventory Department

The company SONA PET INDUSTRIES has a total turnover of Rs.2 corers over a year.

The Company consists of 65 Workers including permanent and temporary workers.

The company is running on two shifts, first is from morning 8 a.m to 8 p.m and vice
versa. After 4 years the company SONA PET INDUSTRIES has started two other

branches in Kerala as CRESECENT POLYPET and CRESCENT POLYMERS owned

by

Mr.A.S.Abdul Rahim .
3.1 DEPARTMENT ANALYSIS:

1. PRODUCTION DEPARTMENT

SONA PET INDUSTRIES consists of 6 injection moulding machines, 4blowing

machine and 1 reprocessing machines to manufacture pet resins and jars. The

company is manufacturing the products according to the orders received.The company

produce a product in 3 stages.

The initial stage is re-processing the purchased material into pure “PET RESIN” and

that pure resin are heated and injected and which is shaped into “PERFORMS” which

is in “CONICAL” as well as in “test-tube”from. Later this performs are blowed in blowing

machine and gets the finished product as bottle or jars.

The concern also manufactures H.D.P.E & P.P jars through blowing machine. The

blowing machine are running with help of the Air Compressor and Cooling tank with

electricity.

MANUFACTURING PROCESS

Manufacturing of pet jars and bottles:

Pet performs are only basic raw materials used for

manufacturing pet bottles and performs. The weight of the jar is varied according to

the weight of the performs. In this concern they are having more than 150 models of

pert bottles and jars mould. For each and every mould the weight and the shape of the

performs will vary.

Firstly the performs are kept one by one in the heating oven after few seconds the

performs is removed from the heating oven and is placed in the blowing machine.

The machine is called “STRETCH BLOW MOULDING MACHINE”. As the name itself

specifies the lightly heated performs is stretched to a particular extend and then air is
supplied by the “AIR COMPRESSOR” of normal temperature at 20kg weight is pumped

into the PERFORMS for about 10 seconds for bottles and 8 seconds for jars.

These operations are fully carried by machines itself. The only manual work is to give

necessary heating and cooling setting to the machines and placing the heated to the

blowing machine correctly.

The shape of the pet bottles and jars varies according to the shape and patter of the

moulds. This process of stretch blow moulding is also know as “STRUCTURAL/ BLOW

MOULDING”.

JAR CAPS are manufactured in the same way the only difference in material

grading. For caps they use POLY PROPYLENE(P.P) and POLY ETHYLENE

TERAPHTHULATE(PET) RESINS are the basic raw materials. The moulds are of

several types. For each and every mould the shape and weight of the perform caps will

vary.

LATHING:

Lathing is considerd to be a different department in this concern,this is to shape the

mould to create the jars. Lathe consists of the two machines. One is drilling machine

and the other one is lathing machine. Iron is used as a raw material.

The iran piece used to rotate in lathing machine and will shape. By using drilling

machine they will put holes to get the grip for bolting the mould. Welding the mould

also taking place in this plant and all these activities are done manually six workers are

allotted in the plant.

2. FINANCE DEPARTMENT

Finance being the life blood of the business. The main aim of the concern to

maintain accounts is to measure the business income and communicates into the

various categories of users of information. In order to achieve this objective it becomes
necessary to prepare financial statement of the business.

All the decisions regarding the management of the funds are taken by the financial

executives. All the transactions are entered into respective books of accounts. all the

data in the accounts department and finance is computerized and it is maintained.

The concern maintain the following books: cash book, bank book and general ledger.

All the transactions are carried through cash book. Day to day expenses is posted to

ledger. It is an abstract of cash and bank book.

ANATOMY OF FINANCIAL STATEMENT:

Ther are two financial statement , they are:

1. profit and loss statement

2.Balance sheet

These stmts reflect has an initial capital of Rs.50 lakhs contributed by the proprietor.

Additional capital is made for making the working capital. This is done through loans

from bank and working capital loan from Indian Overseas Bank and also a loan from M/

s DOULATRAMAN & co of Rs.25lakhs.

CAPITAL STRUCTURE OF SONA PET INDUSTRIES:

The proportion of capital employed is networking is more than the proprietor capital

employed in fixed assets. This is due to

•

The requirement of heavy stock of performs.

•

Lack of adequate orders leads to stocking finished products

•

The high volume of credit service to dealers.

ORGANIZATION CHART OF FINANCE DEPARTMENT
The department has recruited 5 well experienced staffs. The working time is from

9 to 5. They controlling the flow of cash.
3. MARKETING DEPARTMENT

The company is distributing their products to AAVIN MILK AND MILK

PRODUCTS, PERRY FOODS MADURAI, R.K.G. GHEE PALLADAM And AYYAPPA

GHEE STORES COIMBATORE.

The company is facing a strong completion with “Shree pet”. The company SONA PET

INDUSTRIES had covered all over India by marketing their products.

The company follows three kind of methods of marketing:

o Direct marketing

o Tender form of marketing

o Van sales marketing

The concern is having a store at Raja Street, Coimbatore named “SONA TREADERS”.

Through this shop they sell their products wholesale as well as retaile conscious.

The company does marketing through tender. Tender forms are of two

types “TECHNICAL BID” and “COMMERCIAL BID”.

The company has more than 5 vans through which they can cover different areas. Van

supply means of door to door delivery. The sales man get the orders from different

places.

Sales executives are those who receives order in wholesale basis, and those

executives are rewarded on the order basis that they get.

MATERIAL PURCHASING:

For materials purchasing there should be a purchase requisition. It should be specific

accurately the character and amount of material neede,the time when it is required, the

place where it is needed to identity it fully with its purpose

FUNCTIONS OF PURCHASING DEPARTMENT:

1. Deciding the item to be purchased based on demand.
2. Selection of source of suppliers.

3. Collection of the price information.

4. Placing the order.

5. Follow up the order.

6. Checking the invoice.

7. Maintaining of purchase record.

8. Maintained of vendor relation.

PURCHASING PROCEDURE:

It is the duty of the purchase department to buy right quality goods at right time for right

price,to store and tax issue of material to various deparment as when required.

The purchase procedure follows the step:

•

Determining the budject.

•

Receiving the purchase requisition.

•

Determining of the quality to be purchased

•

Planning orders
4. PERSONNEL DEPARTMENT

The company has a H.R officer who takes care of workers and about their welfare

and so he is the person who recruits the employees and workers for the concern and

the recruitment process done according to the demand of employees for the concern

5.PACKING AND INVENTORY DEPARTMENT

PACKAGING:

In this concern packaging and inventory are controlled in a single department.

The company allots 12 members top this department.

For packaging materials the company deals with three other companies they

are “Sreyaas Packaging”, ”Mahima Packaging” and “Poppy’s packs”

INVENTORY:

The problem of shortage is of great concern to the company because normally

substantial amout of company’s capital is invested in stores. Due attention should be

given to store routine. There should be a system of proper accounting of materials and

suppliers similar to that financial accounting.




3.2. FUNCTIONAL AREA OF STUDY:

The company is facing a strong completion with “Shree pet”.

The company SONA PET INDUSTRIES had covered all over India by marketing their
products.

The company follows three kind of methods of marketing:

o Direct marketing

o Tender form of marketing

o Van sales marketing

•

DIRECT MARKETING:

The concern is having a store at Raja Street, Coimbatore named “SONA TREADERS”.

Through this shop they sell their products wholesale as well as retaile conscious.

The company used to dispatch the goods twice in a month. The money, which

is rare getting from the shop,it is used for petty expenses of the company.

The other type of marketing is direct approach marketing. In this the company customer

will approach directly. They ordered a lump sum of quantity of products. The company

is manufacturing their products by receiving ratio. First they used to receive a sum

of money as advance and will manufacture the required item and will dispatch the

products within two or three days.

•

TENDER FORM OF MARKETING:

Government company “AAVIN” will send letter-inviting quotation. They use to sent

the quotation form or tender form in that tender form they fill the details and their

requirement

The company does marketing through tender. Tender forms are of two

types “TECHNICAL BID” and “COMMERCIAL BID”.

In technical bid they use to affix the “SSI CERTIFICATE”, “PAN CARD”, “FOOD

GRADE CERTIFICATE” and all.
In commercial bid they use to specify the rate per piece with tax or without tax. They are

charging the tax as 4% against VAT. The company will sent tendor to the government

company after their tender gets over they will send the order form to the company.

And then company starts manufacturing and dispatches the goods within 15 days




•

VAN SALES MARKETING:

The company has more than 5 vans through which they can cover different areas. Van

supply means of door to door delivery. The sales man gets the orders from different

places.

Sales executives are those who receive order in wholesale basis, and those executives

are rewarded on the order basis that they get the order. The company is distributing

their products to AAVIN MILK AND MILK PRODUCTS, PERRY FOODS MADURAI,

R.K.G. GHEE PALLADAM And AYYAPPA GHEE STORES COIMBATORE.




4.1 FINDINGS OF THE STUDY

SONA PET INDUSTRIES COIMBATORE, is a small scale industry

with 66 workers and this is a company that manufacture plastic bottles and jar which
resembles like the product of “PEARL PET”. And this company is the first concern to

come forward to produce “PET POTS” the difference between the ordinary pots and pet

pots is that for manufacturing the pet pots they use highly transparent plastic that makes

the pots to seems to be very compact and eco friendly and so they have seen the place

in the market.

The company runs with highly sophisticated machines and with low intervention of

humans. All the departments in the company runs according to the instructions given by

the owner and so the company runs in a balanced manner. Each department plays its

own way in the progress of the company and so the growth of the company can be told

as a result of the team work.

Marketing department is one among the departments that plays huge role after the

production department. The company has excellent sales executives who has been

working for the company for more than 5 years and so they tries to get more and more

orders and van sales marketing is an advantage in this concern as because now a

days transportation cost is considered to a major problems for all the concern as this

company has 5 vans so that they can make the product available at the destination, with

low cost and less time
4.2 LIMITATIONS OF STUDY:

The limitation concerned to this company is its price as they are the 1st to bring out

the “PET POTS” they are manufacturing for Rs 180/- and selling for Rs 200/-. The

Indians will think before getting this pots for this price and so if has not found its place in

Indian market, but the promotion activities are carried by the firm to improve the sales.

Another drawback with this concern is they mainly target the customers in south and

north India, where they have to move to the other areas of the country.

This concern is having two godowns. That is actually not necessary for the concern

as they dispatch the finished goods immediately they finish production and they start

manufacturing only after getting the orders.
5.1 CONCLUSION

SONA PET INDUSTRIES is a profit making concern. One of the reasons for making

profit is the greater control over the materials and there by enjoy the benefits of reduced

cost. To sum up, the material management ia a vital concept to avoid excessive and

inadequate levels of inventories and to maintain sufficient materials for the smooth

production and sale operation.

								
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