Maharaj Industry PVT

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ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

CHAPTER-1

INTRODUCTION ABOUT INTERNSHIP DETAILS

Purpose of Internship Organization: To understand working culture of the Organization


and apply theoretical concepts in real life situation at the work place for various functions.

Type of Work Done in the: Complete Organizational Study

Duration of Internship: 3/ July /2019 – 19/August /2019

Place of Internship: Davanagere

Name of the Organization: Maharaja industry pvt. Ltd,

Maharaja Industries is known for distinguished manufacturers and suppliers of detergent


soaps and powder. Maharaja industries were established in the year 2000 by Mr.
Raviraja.M.E, Managing director to manufacture detergent cake and detergent powder in
the brand name of SHASHI & SAVAAL. The company is located in Davanagere district,
Karnataka. Today the company offers wide array of products to customers that are not only
best in terms of the quality and performance but also meet complete customer expectation.

Our company has made its mark as a prominent provider of diverse range of products and
has been known for quality. Our company vigorously focuses on customer requirements
and delight customers with its premium products. With this aim it has successfully catered
its products to customers from past 12 years which has been highly appreciated market.

A decade of success of Maharaj Industries has lead to the establishment of the new
company MAHARAJ SOAPS INDUSTRY PRIVATE LIMITED in the year 2010. MSIPL
manufactures and markets wide range of products like detergent soaps, detergent powder,
scouring powder, dish wash bar, dish wash liquid, scrubber, match box, incense stick, air
purifier, hair care shampoo, and salt in the brand name of SHASHI, SAVAAL, SHALINI,
KAVYA, 999, ARYA, RAKSHA & SHINE.

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ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

Today Maharaj Industries and Maharaj Soaps Industry Private Limited has been the trusted
name for quality by the endeavor of Mr. Raviraja.M.E, Managing director, Maharaj
Industries and Chair person, Maharaj Soaps Industry Private limited. With vast experience
and complete dedication to quality and customer satisfaction, our products has established
itself firmly in different states like Karnataka, Kerala, Andhra Pradesh, Goa, Maharashtra
and Tamil Nadu. Now the company is looking forward to enlarge its foothold throughout
the nation and internationally.

R.Prakash General Manager Basically he is a Textile Engineer having experience of 35


years in highly reputed Textile Mills in India and abroad about 10 years worked in Nigeria
(Africa), and joined this Detergent unit in 2006. Since then the company is progressing in
very positive manner.

To develop a culture among our employees in rendering excellent service first our
customers and then to the general public by encouraging basic moral values of kindness,
courtesy, co-operation , honesty, and multi discipline among others.

Objectives of the Study:

1) To study the profile of Maharaj Industry.

2) To analyze the various functions of Maharaj Industry through M 7’s model.

3) To make a SWOT analysis of the company and provide necessary suggestions for
findings.

Scope of the Study:

The study was conducted in the Davangere district for a period of 4 weeks. It is provide
the information about organization structure. The main objective of this training is to
understand the functioning through practically.

Research Methodology:

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ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

· Primary data sources:

The primary information has made from interviewing the employees. Primary data
collected through oral communication with respected to employees of shashi detergent
soap in Davangere city.

· Secondary data sources:

The Secondary information has made from published material such as magazines,
newspapers, books, internet & also company information.

INDUSTRY PROFILE

INTRODUCTION:

Soap is the traditional washing compound made from oil fats and caustic alkali. One can
say a detergent is the one that cleans any surface. Synthetic detergent is quite different
from other kinds of detergent. More foam is produced with such kind of detergents,
moreover, there is less tension created on the dirty surface yet emulsification takes places
and the detergent niters the surface much faster. This is the reason why the cleaning
process is fast. Soap is surfactant used in conjunction with water for washing and cleaning
that historically comes in solid bars but also in the form of a thick liquid, especially from
soap dispensers in public washrooms. Soap are useful for cleaning because soap molecules
Handmade soap differs from industrial soap in that, usually, an excess of fat is used to
consume the alkali (super fatting), and in that the glycerin is not removed. Soap is an item
of daily necessity as cleaning agent. It is mass consumer item in both rural and urban
areas. Soap may be divided into toilet soap and washing soap. In the toilet soap market.
New product innovations such as liquid soap, soap free synthetic detergents and no-wash
soap have taken an increasing share of the market from traditional soap bars. While there
are large companies manufacturing soap including toilet and washing soap, it is an ideal
product to manufacture in SSI sector.

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ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

THE INDIAN SOAP AND DETERGENT INDUSTRY SCENERIO

The Indian soap industry has long been dominated by handful of companies, 1662AD. The
first patent for making soap was taken in London.

The word

· Hindustan levers limited

· Tata oil mills

· Godrej soaps (p) ltd

The Indian soap industry continued to flourish very well unit 1967 to 1968, but
stagnant and soon it started to recover and experienced a short upswing in 1974. This
increase in demand can be attributed due to increase in urbanization.

PRESENT STATUS

MARKET SCENARIO

Ø Growth of population

Ø Income and consumption increases

India is the ideal market for cleaning products. The company’s consumption of detergent
powders and bar stands at 1.6kg and soaps at 534gms. Hindustan liver, which towers over
the cleaning business, cells all over the cleaning business but the tiniest of Indian
settlements.

The 7.4 lakhs ton per annum soap market India in crawling along at 4%. The
hope lies in raising rupee worth, the potential for which as high because the Indian soap
market is pseudo in nature and it amazingly complex being segmented not only on the
basis benefits, but even a range of emotions within that outlining framework.

Market potential

The soap market is divided into true soap and non-soapy detergent. The for soap product
largely mature in developed markets and display stagnant growth potential in developing
countries is huge. The demand for laundry washing in north-eastern region is estimated at
6825 tons per year.

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ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

Definition of Detergents:

Detergent: Product the formulation of which is specially devised to promote the


development of detergent. A detergent is a formulation comprising essential constituents
(surface active agents) and Subsidiary constituents (builders, boosters, fillers and
auxiliaries)

History of the Detergents Industry:

Although start of the synthetic detergent industry is not shrouded in the veils of history as
were the beginning of the soap industry, it is nevertheless not easy to pinpoint not easy to
pinpoint exactly when the detergent industry, as such, came into being. The primary
problem is to decide exactly what is being referred to as a synthetic detergent. The term
itself leads to confusion. In the USA the words Surfactant or syndicate are being used,
whilst in Europe the term ‘tenside’ (for tension- material) is coming into fashion.

Each of this basic material has its advantages and disadvantage, but in considering the
feasibility of production the following factor must be taken into account.

· Availability of raw materials

· Ease of manufacture

· Cost of raw material

· Cost of manufacture

· Suitability of finished product

This PT benzene very quickly displaced all other basic detergents and for the period 1950-
65 considerably more than half the detergents used throughout the world were based on
this.

Kinds of Detergents

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ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

A) House Holds Laundry Detergents And Stain Removers:

Modern’s household laundry detergents must effectively clean and remove the most
difficult stains at low washing temperature and short wash times. Addition of detergents
enzymes manufactured by specially Enzymes designed, to laundry detergents and directs
application stains improves remover’s detergent cleaning performance, renews whiteness,
color and appearance of garments.

B) Medical Instrument Cleaning Detergents:

Standard practices for cleaning, disinfection and re-use of flexible fiber optic endoscopes,
surgical instruments and other medical devices include manual pre-cleaning, and
automated washing/reprocessing with a highly concentrated enzymes containing detergent
followed by brushing of irregular surfaces to remove particular matter.

C) Filter Memrane Cleaning Detergent:

The use of ultra, nano and reserves osmosis filtration system, in food processing, for the
production of drinking water and for industrial wastewater treatment has grown
considerably in the last 10 years. Previous generation industrial filtration system were
expansive and costly to operate because they required frequent downtime for membrane
cleaning.

Problem of Soap & Detergent Industry:

Soap industry faces some problems increases of raw materials. The major ingredients like
soap ash, linear alkyl, Benzene & Sodium. Tripoli phosphate posse’s number of serious
problems in terms of availability. The demand supply gap vegetable oil is 1.5 to 2lakhs
tons & is met through imports. In recent times, price of caustic soda has shown ashes in the
cheaper varieties of soaps are quite high.

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ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

PESTLE ANALYSIS

· Political - corruption, bureaucracy, trade restrictions, govt. stability

· Social - core ethics, employment patterns, social mobility

· Legal – antitrust law, consumer law, discrimination law

· Economical – tax, interest, exchange rate, employment rate

· Technological – degree of automation, emerging technologies, R&D activity, rate of


technology change.

· Environmental – weather, climate, geography, infrastructure

Limitation of the Study:

· The time allotted for conducting the organizational study was only 4 weeks. It is not
enough for understanding about the organization in detail.

· Employees were busy in their work so they could not give more information.

· The study is limited to my experience & knowledge.

CHAPTER-2

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ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

ORGANIZATIONAL PROFILE

COMPANY PROFILE

INTRODUCTION:

Maharaj Industry’s manufacturing Detergent soaps, washing powder, crystal salt, table salt
and other products under the brand name of Shashi & Savaal, because of its good quality
as products made out of good raw materials to keep up consistent quality. Our qualified
team of sales executives work in close co-ordination with our clients, to understand their
specific requirements and deliver products in exact accordance, we have a strong foothold
in Karnataka as well as South India, due to our commitment to quality and our excellent
service.

Today the firm has grown to such an extent that nearly 150 workers including women are
working in industry. They the labors, which belonging to economically weaker sections of
the society like widows poorer and women. They have given more importance women
category. They have also appointed male categories for hard work areas and marketing
areas. Till today they not faced any type of labour problem because the labors are working
as family members. They are manufacturing their products in the brand name of Shashi &
Savaal. They are manufacturing their best products of least cost comparing the other
products available in the market.

To develop a culture among our employees in rendering excellent service first our
customers and then to the general public by encouraging basic moral values of kindness,
courtesy, co-operation , honesty, and multi discipline among others. To enhance employee
productivity by providing a job stability professional development and financial growth.

Mr. Raviraja M.E. Established Maharaj Industries in the year 2000, to manufacture
detergent cake and detergent powder in the Brand Name of Shashi & Savaal, with high
standard quality at economical Price. Because of our superior quality, today Shashi
Detergent Cake is well known product in Karnataka and also in some other states.
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ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

Background & Inception of The Company

Maharaj Industries is one of the famous company producing detergent cakes, powder &
scouring powder etc… in south India. Maharaja industry is the most Respected Company
in India by producing quality products.

Smt. Shashikala Elangovan Ravi started manufacturing detergents powder at home in 1990
to spend the free in a useful manner. She has studied up to 10th standard. Since from
childhood, she has been dreaming to industrialist. She was encouraged by her husband &
friends to start a small scale industry in manufacturing of detergent cakes, powder &
scouring powder. Sri Elangovan Ravi, who was working in a detergent company, had a
good experience in his job. He resigned his job & joined his wife to support in her work.
Initially.She has commenced the business die investment around one lakh rupees with the
help of 8 to 10 labors. Maharaj industry was registered under the partnership act with two
partners, being Smt. Shashikala Elangovan Ravi who is entitled for 60% share in the firm
& Sri Elangovan Ravi who has entitled for 40% of share in the firm. However, Sri
Elangovan Ravi is the partner of the Maharaja industries.

Growth of Maharaj Industry:

Initially the firm started manufacturing the products with the help of 8 to 10 labors. But
today, the firm has grown to such an extent that nearly 300 workers including 1400 women
are working in industry. They, the labors, which belonging to economically weaker
sections of the society like widows poorer and women. They have given more importance
women category. They have also appointed male categories for hard work areas and
marketing areas. Till today they not faced any type of labor problem because the labors are
working as family members. They are manufacturing their products in the brand name of
“SHASHI, KAVYA, INDRA, and SKANDA and SAVAAL”. They are manufacturing
their best products of least cost comparing the other products available in the markets.
Now a day, their products have capture the whole are of Karnataka and some part of other
states like, Kerala Andhra Pradesh and Maharashtra.

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ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

1) Vision

1. To be the first choice soaps for customers

2. To be the preferred employer for staff in the detergent industry

3. To be the number one detergent for creating shareholder value

2) Mission

As a responsible, customer focused market leader, we will strive to understand the


detergent needs of the consumers and translate into affordable products that deliver value
for money.

1. Steps taken to achieve the mission

2. Education for all: To secure them a brighter future

3. Sustainable livelihood: Through training and education for skill development

4. Health care and hygienic living conditions

5. Family welfare

6. Restoring self esteem of the physically handicapped

7. Empowerment of women

8. Community development, Holistic development of the community including


infrastructure.

COMPANY VALUES

1. INTEGRITY: We act with high ethics, honesty and fairness.

2. RESPECT: We honor the rights and belief of our employees, our customers, our
suppliers and our community. We believe in the saying , “treat others as you would like to
be treated”.

3. TEAM WORK: We promote and support individuals to come up as a team with


diverse whiz.

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ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

4. MOTIVATION: We recognize, reward and celebrate the achievements of the


individuals and teams.

5. EXCELLENCE: We are dedicated to give the best in everything we do in our


organization.

6. INNOVATION: We innovate from product to process continuously. We are creative


in delivering value to our customers, our fellow associates and to our community.

7. COMMITMENT: Deliver on the promise.

8. PASSION: Energized action.

9. SPEED: One step ahead always.

PRODUCT PROFILE

Shashi detergent cake is the flagship brand of the Maharaj industries situated in davangere.
Maharaj industries specialized in manufacturing detergent cakes, soaps and dish wash
powder. The company is one of the major detergent manufacturing industry owned by a
single individual and running independently.

PRODUCTS

· Shashi detergent cake

· Shashi detergent powder

· Shashi agarabhatti

· Shashi match boxes

· Shashi crystal salt

· Shashi table salt

DETERGENT:

This division manufacturing high quality detergent cake and detergent powder. Under the
brand name of Shashi and Savaal.

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ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

SHASHI DETERGENT CAKE

Shashi detergent cake is available in pink And blue colour with 150gms and 250gms Pack
size, posses the perfect information for the washing requirements and also Detergents
optical whiter and anti-graying Ingredient enhance the brightness of cloth.

SHASHI DETERGENT WASHING POWDER

Exploding the myth that “Better quality always demands higher price” Shashi introduced a
spray dried blue coloured washing powder in the premium segment available in 250g,
500g, and 1000g packets, these products out classed its competitor brands, this brand
within a short span of time had reached its goal.

CRYSTAL SALT AND TABLE SALT

These units deals in good quality with affordable price.

AGARABHATTI, MATCH BOX

These products strictly competence to international products.

SAVAAL DETERGENT CAKE

Concerned substantial market share in the premium detergent segment and continues to
perform well. Savaal detergent cake available both in white and blue colour. 150gms and
250gms pack size possesses perfect formulation for the washing requirements, and

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ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

detergent are optical whiter and anti graying ingredients enhance the brightness of the
cloth.

SAVAAL DETERGENT WASHING POWDER

To enter the need of the specific target audience, Savaal launched a good quality product at
an affordable price. This objective is to convert the non-users of detergents into users and
prevent the manufacturers to lure away competitors and local manufacturers to lure away
the prospective. Savaal consumers by sub-standard products. It is available in pack sizes of
500mg and 1000mg .

SHASHI AND SAVAAL SCOURING PRODUCTS

Scouring bar is potential emerging market in India. By offering Shashi and Savaal dish
wash bar, Shashi tried to tap this huge market. It is also a one type of value product to the
brand loyal consumers, carting their distinct needs. This product, like other available in
300gm packs size. It is being offered in 200gm and 400gm size. Inspired by the success of
the bar, Shashi bar and dish wash powder was also, subsequently soft launched, in 1000gm
pack size.

SHASHI AND SAVAAL IODISED SALT

Iodised salt is a quality product with a guarantee of being the best in the quality
parameters, free flow nature, whiteness and the size of the granules, in 1kg pack.

SHASHI SOAP NUT POWDER

It is one of the most trust worthy and reliable brand nut powder removes dandruff and
gives great look to black hair.

LIST OF RAW MATERIALS

Ø Soda ash light

Ø Acid
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ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

Ø Sodium silicate

Ø Soap stone powder

Ø Dolomite powder

Ø Perfume

Ø Sodium sulphate

Ø Colour

Ø Liquid detergent etc.

Strong Labor Union:

One of the main reasons for short term success of Maharaja Industries is that it has a very
strong labor union. Without the support of the employees, it is not possible any
organization to reach its goal. Maharaja Industries have got a great advantage in this
respect. The workers in this industry are working like family members. Till today, the firm
has not faced any kind of labor problem. This can be supported by the following incident.

When Davangere police arrested the innocent watchman, his wife and 2 children who were
working in the industry, with the help of commercial tax department without giving any
legal notice the worker of maharaja industries had undergone a strike in

industrial area strongly protesting the illegal action of the police against the watchman’s
family. This shows that the firm is having a strong labor union.

Machineries Used:

The following are the list of machineries put to use by maharaja industries of
manufacturing their products.

1) Double Zisma Mixer: used for the purpose of mixing raw materials purchased from
outside.

2) Reformer Plodel: used for the purpose of getting bulk lumps of getting final
detergent cake and to avoid the cracks on the design of the cake.

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ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

3) Vacuum/Ordinary Plodel: used for the purpose of getting final detergent cake and to
avoid the cracks on the design of the cake

4) Vacuum Pump: used for the purpose of removing the water molecules from the
mass.

5) Primary cutting machine: used for the purpose of cutting the detergent cakes in form
of long bars.

6) Secondary cutting machine: used for the purpose of cutting the long bars into small
bar detergent cake.

7) Drier: used for the purpose of aging or drying the detergent cakes.

8) Trolley: used for the purpose of stacking the cutted detergent cakes.

9) Taping machine: used for the purpose of packing the detergent cakes.

10) Taping machines: used for the purpose of taping the boxes of detergent cakes.

11) Taping machines: Are the wooden pallets used for the purpose of stacking of finished
goods.

12) Hydrolic Trolley: used for the purpose of movement of the stock of finished goods
from one place to other i.e., loading purpose.

13) Lift: used for the purpose of loading the raw materials.

Through the machineries mentioned above are adopted by the Maharaja industries,
generally packing of detergent cakes are done manually i.e. by the women workers and
paste mixing is done by the male workers in order to provide work for the unemployed
people of the society.

Nature of Business:

Manufactures/Supplying of detergent cakes and powder, like shashi soap, shashi premium
powder, savaal detergent powder, shashi sachet powder, and savaal detergent sachet.

Product Profile:

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ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

Shashi detergent cake is the flagship brand of the ‘Maharaja industries’, situated in
Davangere. A Maharaj industry is specialized in manufacturing detergent cake, soap and
dish wash powder. The company is one of the major detergent manufacturing industries
owned by a single individual in Karnataka and is running independently.

List of Raw Materials:

· Soda Ash Light.

· Acid slurry.

· Sodium Silicate.

· Soap stone powder.

· Dolomite powder

· Perfume.

· Sodium Sulphate.

· Colour.

· Liquid detergent etc…

The product manufacturing by the company as fallows

· Shashi detergent cake

· Shashi detergent powder

· Shashi Agarbathis

· Shashi crystal salt

· Shashi match box

· Shashi table salt

· Savaal detergent cake

· Savaal detergent powder

· Savaal Agarbathis

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ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

The products manufactured by the company are as fallows.

SHASHI SOAPS

SL. PRODUCT GRAM


NO NAME

1 Shashi 150
pink

2 Shashi 165
standard
blue

3 Shashi 250
super pink

4 Shashi blue 250


diamond

5 Shashi 200
orange

6 Shashi blue 350

Source: collected from production department.

Detergent cakes of Maharaj Industries:

SL. Brand Colou Quant


NO name r ity
(gms)

1 SHAS BLU 110


HI E

2 SHAS BLU 175


HI E

3 SHAS BLU 250


HI E

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ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

4 SHAS PINK 150


HI

5 SHAS WHI 150


HI TE

6 SHAS GRE 250


HI EN

7 SHAS GRE 150


HI EN

8 SHAS WHI 250


HI TE

9 SAVA WHI 100


AL TE

10 SAVA WHI 175


AL TE

11 SAVA BLU 175


AL E

12 SAVA BLU 250


AL E

13 SAVA GRE 175


AL EN

Source: collected from production department.

Detergent powder of Maharaj Industries:

SL. Brand Quan MRP(


NO name tity RS)
(gms)

1 Savaa 175 5.00


l

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ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

deterg
ent
powd
er

2 Shash 900 23.00


i
premi
um
powd
er

3 Shash 450 12.00


i
premi
um
powd
er

4 Shash 175 5.00


i
premi
um
powd
er

5 Shash 20 1.00
i
sachet
powd
er

6 Savaa 900 23.00


l
deterg
ent

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ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

powd
er

7 Savaa 450 12.00


l
deterg
ent
powd
er

8 Savaa 25 1.00
l
deterg
ent
powd
er

Source: collected from production department.

Price Strategies of Maharaj Industries

The pricing strategies of Maharaj Industries are quite good. They fix the price at
comparatively level. They follow low pricing strategy. This helps them to reach to
common people and rural areas. The pricing strategy of Maharaj Industries consists of
essential of a sound price policy. They are:

A. The price policy helps the firm in realizing maximization of profits and fair returns on
investment. The price policy helps the firm in meeting market completion successfully

B. The pricing policy of Maharaj Industry assures reasonable margin to them and also
intermediaries, i.e., wholesalers and retailers, who can be induced to take more interest or
take more interest in promoting the sale of the firm only through margin of commission.

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ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

C. The price policy of Maharaj Industries is flexible, and not rigid. It permits them in
changing price depending upon the market forces of demand and supply and economic
conditions of boom and deprecation.

The Maharaj Industries follows cost plus price method. This method is also called as mark-
up price, margin pricing or full cost. The sales price per unit of a product comprises:

· The cost of the product per unit covering the cost of producing the product, the
administrative and selling costs and depreciation, interest, etc. and

· The desired mark-up profit margin.

The mark-up may be a certain percentage based on cost or the sale price. The mark-up
percentage of profit differs from the one product to another product. The mark-up
percentage of profit of SHASHI ROSE differs from KAVYA.

The price of list of products of Maharaj Industries are given earlier in Table 1 and Table 2.
By studying this we can find that the products are priced economically keeping in view of
rural markets. These are very economical when compared to the prices of products of large
scale industries such as Hindustan Liver Limited.

Distribution Strategies of Maharaj Industries

The distribution strategy helps the firm in following functions:

1) They facilitate the physical movement of goods.

2) They take under storage functions i.e. storage of goods.

3) They provide information to the buyers about the availability, features, uses and the
prices of goods in the channel of distribution.

Maharaj industries are concentrated on SUPER STOCKIST nature of distribution along


with regular with regular distribution strategies like manufacturer- Retailer and Direct
marketing. For local market i.e. within Davangere they use Direct Marketing strategy.
Specially recruited persons are going to customer’s doors and sell the products. For
regional market they use manufacturing retailer strategy. For this purpose the company

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ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

uses force for its own sales force. They visit retail shops in a specified period like weekly
once or fortnightly. Along with this they will supply the products as per orders placed by
the retail shopkeepers. The sales force is doing a job in this case. They cover whole Middle
Karnataka. Along with these distribution strategies the company’s main distributional
strategy is SUPER STOCKISTS. This will help them in several ways. By using this option
they can market their products more widely. For a small scale business entering into the
outside state market is easy task to perform. This helps them in marketing products in
states like Tamil Nadu, Kerala, Pondicherry and Andhra Pradesh.

Currently there are more than 10 SUPER STOCKISTS for Maharaja Industries. They are
widely spread all over Karnataka and outside Karnataka. The name and address of the
SUPER STOCKISTS are not mentioned. It is because company sources are very cautious
about this. They think it might cause for leakage of business secrecy. So this is become
one of the limitations of the study. This strategy helps them in problem in distribution. As
they using this strategy automatically this will solved out.

Promotional Strategies of Maharaj Industries

When come to the promotional strategies Maharaj Industries tries its level best to promise
its product. It uses several kinds of promotional strategies. They are discussed in this head.

Maharaj Industry’s personal selling way of promotion strategy includes both


manufacturer’s salesman and wholesaler’s salesman. For the purpose of manufacture’s
salesman firm has own sales force. Second one left to wholesalers or SUPER
STOCKISTS. Along with these two they had middlemen in sales promotion as said by the
firm’s sources. Middlemen in sales promotion are good strategy. Because they reduce the
work of firm’s sales force. The middlemen are generally experts in field. They can easily
promote the product than that of firm’s sales force. The help of sales made by the firm can
study effectiveness of sales promotion. The following table gives you about sales of last
five years.

Media of Advertising

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ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

The firm is marketing its products through various Medias of advertisement. They are:

a. Television advertisement: The firm has given its advertisement for its products in
television through various channels like Udaya TV, Ushe TV, ETV and local cables.

b. News papers: The firm also uses advertisements in newspapers like vijaya Karnataka,
samyukta Karnataka and udayavani.

c. Sponsoring programmes: the firm has also advertised its products through
sponsoring various programmes like magic show conducted by Sri.Kundroli Ganesh and
Crazy Night in ETV.

d. Door to door sales: The industry also engaged in the door to door sales activities by
giving offers.

e. Launching of sales: launching of sales like promotion schemes by way of

Discount coupons to dealers

Discount coupons to retailers

Gold/silver coin scheme.

Area of Operation:

Maharaj industry is located in Davangere, Karnataka state. The plant is located in outside
Davangere i.e. at the industrial area in the Lokikere road. The address of the firm is.

Maharaja Industries

No.205/A, KIADB,

Industrial Area

Lokikere road

Davangere- 577005.

pg. 23
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

Ownership Pattern:

Maharaj Industries was registered under the partnership act with two partners, being Smt.
Shashikala Elangovan Ravi who is entitled for 60% share in the firm and Sri Elangovan
Ravi who has entitled for 40% of share in the firm. However, Sri Elangovan Ravi is the
partner of the Maharaj Industries.

Competitors Information:

· Nirma

· Wheel

· Sundari

· Henko

· Surf-excel

· Rin

Infrastructural Facilities:

· Canteen facility

· Vehicle facility

· Waiting room

Achievements/Award:

During the year of 2002, the Davangere district women industrialist association has
selected Smt. Shashikala Elangovan Ravi has a “BEST WOMAN ENTREPRENEUR”.
The Lakshmi Vilas bank, the Davangere co-operative urban bank, the lions club and
Mahilasamaja have honored her getting the award.

pg. 24
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

For quality maintenance and for invention of new formulas, there is a separate laboratory.
They are always checking the quality of the finished product. Till this industry as given the
more importance to the new method of technology, this should not minimize the labors.

Future Growth And Prospectus:

Within the short period they will start the manufacturing of shampoo, talcum powder,
toilet soaps with herbal based, they will try to improve their business to complete in the
foreign market also. Introduction of new higher power point detergent powder for
institutional sales in bulk packaging & attaining the market leadership. Introducing new
trade schemes to increase sales. Aggressive advertisement and publicity as a part of sales
promotion.

pg. 25
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

CHAPTER- 3

MCKENSY’S 7’S FRAMEWORK

INTRODUCTION

Analysis of the company through the McKinley’s 7s gives us to meaningful information


and it would help us to verify the whole company within limited circumference. According
to this model there are seven basic dimensions which represent the core of managerial
activities. These are the ‘levers’, which the executive use. The originators of the model
have coned the managerial variable with words beginning with the letter‘s’ so as to
increase the communication power of the model. The 7-s diagram illustrates the
multiplicity inter connectedness of element the define an organization ability to change.
The theory help to change managers thinking about companies could be improved. Its says
that it is not just a matter if devising a new strategy and following neither it through nor it
is a matter of setting up new systems and letting them generate improvements.

To be effectives, there organization must have a high degree of fit, internal alignment
amongst all the sevens. All S’s are interring-related and a change in one as a ripple effect
on all the others.

Therefore analysis of the model involves a major role in the segmentation of the
departments for preparation of report. This will lead us to take right decision regarding the
status of the organization. The 7S Model is better known as McKinley’s 7S. This is
because the two people who developed this model, Tom Peters and Robert waterman, have
been consultants at McKinsey & co.

HARD Ss SOFT
Ss

pg. 26
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

STRATERY STYLE

STRUCTURE STAFF

SYSTEM SKILLS

SHARED
VALUES

7’S MODEL CHART:

Structure

Systems

Strategy

Shared values

Style

Skills

Staff

pg. 27
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

HARD Ss

1. STRATEGY:

Strategy is a choice of direction and action; the company adopts to achieve its objectives in
a competitive situation. Any statements on overall functional strategy that the company
may wish to share are;

1) Improvement in the existing products.

2) Their future plans include launching of new products.

3) Introduction of cost effective substitutes without compromising on quality.

The company will move towards the improve their sales to reach the goals, by purchase
more detergent cakes, they keep continuous production. They try to meet the customer
demand as early as possible.

The strategy of the company is satisfying its customers by providing better quality
products to its customers. To impart and develop its employee’s skills and knowledge to
the changing technologies to improve its productivity, quality, efficiency and also to
increase the morale of its employees, the company has undertaken the work of giving
training to each and every employee so as to contribute to the organizational goals and
objectives.

pg. 28
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

Price Strategies:

The pricing strategies of Maharaj Industry are quite good. They fix the price at
comparative level. They follow low pricing strategy. This helps them to reach common
people and rural areas.

· The price policy helps the firm in rising maximum profit.

· The price policy helps the firm in meeting market competition successfully.

· The price policy of Maharaj Industry assures reasonable margin to them and also
intermediaries, i.e., wholesalers and retailers, who can be induced to take more interest in
promoting the sales of the firm only through margin of commission.

· The price policy of Maharaj Industry is flexible. It permits them in changing price
depending upon the market forces of demand and supply and economic conditions of
boom and depression.

The Maharaj Industry also flows Cost plus Price Method. This method is also called as
Mark-up pricing; margin pricing or full Cost Method. The sales price per unit of a product
comprises.

· The cost of the product per unit covering the cost of producing the product, the
administrative and selling costs and depreciation, interest, etc.

· The desired mark-up profit margin.

The mark-up may be at a certain percentage based on cost or the sale price. The mark-up
percentage of profit differs from one product to another product.

2. STRUCTURE

The design of the organizational structure is a critical task of the management of an


organization. It is a section of whole organization. It refers to organizational arrangement
and relationship. It prescribes formal relationship among various positions and activities.
Arrangement about reporting relationships, how an organizational members is to
communicate with other members, what role he has to perform and what roles and
procedures exist to guide the various activity performed by members all part of
organizational structure.

pg. 29
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

The structure of Maharaj industries have a comprehensive framework is very potential


dimension of organization development and relationship between owner and employees
with factual mutual understanding the particular structure for the company development
purpose and gaining profit. The company having significant foremost organization
structure will be use full to creditor’s shareholders management and all other people who
deal with the company.

ORGANIZATION STRUCTURE

The structure of the organization team of Maharaj Industries is shown below

Source: collected from company records.

In the above diagram organizational structure of Maharaj industry is to be put in a


structured manner so that managing partner are at the top level in hierarchy of authority
and responsibility, the directors of departmental in charge of marketing, factory or
production unit laboratory department and office section. Next to this level assistant of the
department of the below the assistants there are some supervisors and inspectors and
workers are operating for the smooth running of the production process.

KEY FUNCTIONAL AREA

PRODUCTION DEPARTMENT

Production is any process of procedure developed to transform a set of inputs like man,
Machine, Material, Money, and Management into a specified set of outputs like finished
products in proper quality by achieving the objectives of an enterprise.

Production management is a set of general principles applied for production economics


facility design, and schedule design, quality control, work-study and budgetary control.
The detergent soap industry in India adopted all the facilities which help in achievement of
greater production like location, layout, production control etc.

PRODUCTION DEPATMENT:

pg. 30
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

PRODUCTION
HEAD

SUPERVISOR

MALE
WORKER
WOMEN
FOR
WORKER
HAMALIES
HARD FOR
FOR
LOADING
WORK AND
PACKING
UNLOADING
Source: Collected from production department.

PRODUCTION PROCESS

RECEPTION OF RAW
MATERIALS

MIXING

NOODLER PLANT

BAR MACHINE

CUTTING MACHINE

DRYING

pg. 31
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

WRAPPING

PACKING

DISTRIBUTION

1) RECEPTION OF RAW MATERIALS:

The first process is receiving the raw materials which are purchased from outside. The
material is purchased in bulk quantity from local market. It is bring from road transport
and stored in store house.

2) MIXING:

After receiving the raw materials from outside, the raw materials have to be mixed
properly. Take 1 kilo sodium sulfate, 500 grams magic ultra 120mt fragnance, 5grm
sodium tri phosphate, the first step making the soap is by measuring up all the ingredients
as per the above list and put each in individual container for convenience so all you have to
do is pour each one and mine.Prepare a mixsing bowl large enough to accommodate all the
ingredients mix first the sodium sulfate magic ultra which serves as a faming agent to be
detergent.

3) NOODLER PLANT:

After mixing of raw materials, next process is putting them into noodle plant. The product
will be passed by this plant then the cake will be fully mixed and avoid the cracks on the
design of the cake.

4) BAR MACNINE:

After mixing the product on noodle we are dumping the products here. Then they will get
cake long bars.
pg. 32
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

5) CUTTING MACHINE:

After cutting the detergent cakes, finally the water level must be reduced down to about
12%, this is done by heating the soap to about 125 c under pressure and then spraying it
into an evaluated chamber at 40mmhg (5.3kpa). The latent heat of evaporation lost as to
water Noels off reduces the soap temperature down to 45 c at which temperature it
solidifies on to the chamber walls.

The soap chips are scraped off the walls and plodded by screws known as plodder warns to
form soap noodles the soap is now known as base or neat soap chip and can be converted
in to a variety of different soaps in the finishing stage.

7) WRAPPING:

After drying the detergent bars, the next process is wrapping after cutting the cake it will
kept for 3&4 hour drying afterwards it will be wrapping by the machines or manually or
hand packing.

8) PACKING:

After wrapping the detergent, they will be packed in boxes like 30 & 60 pieces in each box
and each box are stored in store room.

9) DISTIBUTION:

After packing the detergent cakes in boxes, they will be distributed to the wholesalers,
retailers, salesmen, for marketing them.

PROBLEMS:

1) Lack of hygiene and cleanliness in factory.

2) Using obsolete technology based machines.

3) Lack of standards for keeping the work place/machine pathway.

4) Lack of planned maintenance.

pg. 33
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

VISION, MISSION, OBJECTIVES:

MISSION:

· Customer satisfaction.

· Consistent quality.

· Competitive price.

VISION:

Investing in the core brands to meet ever changing Consumer expectation

OBJECTIVES:

Maharaj Industries shall be a reputed, profitable & growth oriented industry. That takes
pride in satisfying customer needs with quality products.

MARKETING DEPARTMENT:

Marketing department is consists of Marketing Manager, Assistant Manager, Sales Officer


and sales representatives etc… Marketing is a consumer oriented activity and also it is a
social process by which individuals and groups obtain what they need and want through
creating, offering & freely exchanging products and services of value with others.

Marketing Department involves planning, organizing, directing and controlling the


activities relating to the marketing of goods and services to safety the needs of customers.
Marketing research and product planning are integral part of marketing department. The
department determines the appropriate marketing mix of the firm i.e. product design, its
promotion, its pricing and its distribution.

Marketing department deals with the activity of managing the marketing such as planning
and executive the conception, pricing, promotion and distribution of ideas, goods &
services to create exchanges that satisfy individual and organizational goals. Marketing

pg. 34
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

Manager is the head of this department. This department is concerned with the marketing
of the products & services. The main objectives of marketing department are consumer
satisfaction, creation of demand etc… The company main products are detergent soaps &
detergent powders which are sold in different states of India are,

1. Karnataka

2. Maharashtra

3. Tamil Nadu

4. Andhra Pradesh

MARKETING DEPATMENT:

MARKETING
HEAD

AREA
SALES
MANAGER

SALES
OFFICERS

DEMONSTRATION
STAFF
SALES
REPRESENTATIVE

Source: collected from marketing department.

In the marketing department the only one person operating the marketing activities after
the director’s position assistant will take care of every activity relating to the marketing
subject in the organization.

pg. 35
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

Functional areas:

A) Functions of Exchange:

Buying and selling: For a sale of product there must be a buyer and seller who exchange
the product and product worth of money.

Assembling: Assembling customers to buy a product is also a major function of the


exchange.

B) Functions of Physical Supply:

Transportation: To reach right place at right time when demand arises for a product and for
supply.

Storage: Availability of goods by storing in a warehouse a product can be sold when


demand arises.

C) Facilitating functions

1) Financing: Finance is a back bone of any organization and it helps to marketing


department like finance for transportation, for advertisements, etc

2) Department: Marketing department facilitating many departments in an organization


like for production department how much to produce based on the market survey and the
demand for a product and for finance to keep sales transactions, etc.

3) Risk taking: Marketing involves so many risk, department take risk in selling of
product.

4) Standardization and grading: Standard of product packing, quality, etc set by a


marketing department facilitates lot to marketing department and for grading.

5) Market information: like market survey for a product, opinion about product from
consumers, competitor’s information facilitates lot.

PROBLEMS:

1) The industry has a limited sales and promotional activities

2) Lack of experience in marketing

pg. 36
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

3) The organization doesn’t give the incentives for marketing executives like travelling
allowance etc. the executives didn’t show much interest to selling product to other place.

HUMAN RESOURCES DEPARTMENT:

HRM means employing people, developing their resources, utilizing, maintaining and
compensating their services in tune with the job and organizational requirements with a
view to contribute to the goals of the organization, individual and society.

HR DEPARTMENT:

HR
MANAGER

DEPUTY
HR
MANAGER

OFFICERS

ASSISTANTS

Source: collected from HR department.

From the above diagram it shows that the management has its position in at the top of the
structure after that HR manager will take care of the organizational activities. Employees
are doing their jobs and below that the workers are doing their activities in the
organization.

HR FUNCTIONS:

pg. 37
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

A) Managerial functions:

1) Planning: It is a pre-determined course of action. Planning pertains to formulating


strategies of programmers and changes in advance that will contribute to the organizational
goal.

2) Organizing: It is essential to carry out the determined course of action

3) Directing: The next logical function after completing planning and organization is the
execution of the plan. The basic function of personal management at any level is
motivating, commanding, leading and activating people.

4) Controlling: After the three various activities of personnel management, the


performance is to be verified in order to know that the personnel functions are performed
in conformity with the plans and direction of the organization.

B) OPERATIVE FUNCTIONS:

1) Employment: it includes job analysis, human resource planning, recruitment, selection,


placement and induction and orientation.

2) Human resources development: it is a process of improving, molding, and changing the


skills, knowledge, creative ability, aptitude, attitude etc.

3) Compensation: it is a process of providing adequate, equitable and fair remuneration to


the employee. It includes job evaluation, wages and salary administration, bonus,
incentives etc.

4) Human Relations: it includes motivating the employee, boosting employee morale,


developing the employee communication skills, developing the leadership quality etc.

5) Industrial Relations: it includes Indian labor market, trade union, collective bargaining,
industrial conflicts etc.

6) Recent Trends in HRM: HRM has been advancing at a fast rate. It includes quality of
work life, total quality in HR etc.

PROBLEMS:

pg. 38
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

1) Problem of less factory labor’s relationship by giving more concentration on aggressive


marketing.

2) The organization provides limited number of training period for a new employee.

3) There is limited number of HR employees.

4) Improper HR succession plans.

5) Leaders need to understand the various job responsibilities of a Maharaj.

Interpretation:

HR department is a necessary to the today organization main thing of a people in the


organization. The HR team deals with all matters pertaining to people with their team they
are responsible for recruitment and selection at all levels from team members to the
management staff. They are responsible for employees salaries career development and
cancelling constant efforts are made for employee up gradation in terms improving skills
and job satisfaction to meet the aspirations of all employees.

QUALITY DEPARTMENT:

For quality maintenance & for invention of new formulas, there is a separate laboratory.
They are always checking the quality of the finished products. Till date the industry has
given more importance to the new method of technology which should not minimize cost.

QUALITY DEPAERTMENT:

CHIEF
CHEMIST

SHIFT
CHEMIST

ASSISTANTS

Source: collected from Head of the quality department.

pg. 39
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

In the above diagram an efficient chief chemist is operating the job with good command
over the workers and employees just below the chief chemist, shift chemist, lab assistant
are engaged in the taking of the work from the workers.

The main functions are:-

1) Monitoring the quality to meet customer needs.

2) Preparing guidelines for quality acceptance.

3) Designing process control studies to prevent market complaints.

FINANCE ACCOUNTS/OFFICE SECTION:

1) Finance:-

Finance is the main source of business. Finance management is concerned with efficient
use of an important economics resource, namely capital Funds, so finance function is
concerned with smooth and efficient and efficient management of funds or resource.

2) The accounts maintained are:

1) Stores Purchase Accounts.

2) Cash or Bank Accounts.

3) Sales Accounts.

3) Bankers:

1) Union Bank of India

2) State Bank of India

3) Urban co-operative Bank LTD

4) Lakshmi vilas Bank LTD.

4) Costing section:

The operations of this section are:

1) To maintain production records and reports.

2) To calculate cost of production.

pg. 40
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

3) Maintenance of cost audit reports.

4) Preparation yearly budgets.

OFFICE

In Office section all other activities like Recruitment, Selection and Training, overall
Maintenance and control can done by this Department.

OFFICE SECTION:

OFFICE HEAD

COMPUTER
ACCOUNTS
PROGRAMMER
AUDITOR

OFFICE
ASSISTANTS
COMPUTER
OPERATOR
Source: Collect from office head.

3. SYSTEMS:

System refers to the rules, regulations. The maharaja industries have also certain rules,
regulations and procedures both formal and informal that complement the organizational
structure. This includes the way the functions of different departments are carried out.

A. Accounting System:

Financial statements are prepared under the historical cost convention on an accrual
basis and comply with the accounting standards.

B. Costing System:

Process costing: Is a method of costing used to ascertain the cost of product at each
process or each stage of manufacturer where process are carried on.

C. Inventory Control System: FIFO method for issuing materials.


pg. 41
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

D. Remuneration System:

1) Time rate system is followed to employees.

2) Government fixes the remuneration to executives.

SOFT Ss

4. STYLE:

The leadership style of Maharaj Industries is totally democratic means decisions are taken
by the top management only after discussing with its employees, there is no restrictions to
any employee to express their opinion. This leads to the free flow of communication
within the industry.

Maharaj Industry is following the participative and social type of leadership in which all
the level of managers interact with each other for achievement towards the goal and report
to the higher officials.

Interpretation:

Style in an organization means the leadership approach of top Management and company’s
overall operating approach.

Participative Leadership: The organization follows the participative style of leadership.


This means, each and every employee of the organization are allowed to give their point of
view which are concerned to production, marketing and other areas. The employee who
will have good views, which prove to be profitable to the company, will be aware. This
makes employees feel good working environment in the organization.

Top-Down Leadership: The top down approach is the style where in the final decision
happens at the top level of hierarchy and is communicated to their spective departments.
The top management will formulate the rules and regulations, work procedures, etc. which
are supported to be followed by other departments.

5. STAFF:

Staff means that the company has hired able people, trained them well and assigned them
to the right jobs. Employees are the functional unit of the organization. Their selections,

pg. 42
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

training, placement, induction everything is important for the organization staff deals with
the process by which employees are recruited, deployed and developed their current
position, future up gradation etc., Selection, training, reward and recognition, retention,
motivation and assignment to appropriate work are all key issues. So total number of
employees in the industry is around 300.

Technical Manager: They have to look after production and quality control, raw material
inflow and outflow, and maintaining of machineries.

General Manager: They have to look after labor problems and appointing new labors.

Supervisors: They have to look after quality control and attendance.

Clerk:-They have to look after maintaining files, mailing

The staff component is central to the organization and it is overall performance of course.
Staffing includes selection, placement, training and development of appropriately qualified
personnel. The staff are educated, skilled and led by profession at the supervisory level,
middle and top level executives.

Number of Employees chart:

· Production Department 106

· Marketing Department 110

· Finance Department 18

· HR Department 12

Source: collected from company records.

6. SKILLS:

The term “skills” includes those characteristics which people use to describe a company.
Organizations have strengths in a number of areas but their key strengths and dominant
skill are few. Employee’s skills in an organization will be unique, this may be due to their
experience in the place of work, and the similarity may also due to influence of the similar
culture. However every person according to his traits possesses his own talents and special
characters.
pg. 43
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

The employees of Maharaj Industries have different skill, which are relevant for their
work.

Basically here they divide the skill into two categories viz,

1) Skilled

2) Unskilled

They usually use multi skilled in production process. And 75% of unskilled used in
packing and lifting the goods. Merit rating is given according to performance in their
work. The Company is having number of skilled labors, which jointly and effectively
produce the end results. Most of the employees are multi skilled this makes the companies
working without any interruption.

There are different techniques of training which are used to develop the skills of the
employees, like on the job, off the job training, etc. in case the candidate recruited is
unskilled; he is put under a probationary period for the first few months under senior
skilled employee where he is trained on the job. For this Maharaj industry has no specific
training department.

Once the training period is over, the candidate’s performance is evaluated and the
candidate is taken as permanent employee. The company is providing on the job training
of 15 days for both new and existing employees.

7. SHARED VALUES

Shared values means that the employees share the same guiding values. Values are thing
that you would strive for even if they were demonstrably not profitable. Values act as an
organization’s conscience, providing guidance in times of crisis. Identifying corporate
values is also the first essential step in defining the organization’s role in the large
community in which it functions

Maharaj Industries presents their faith, they believe their core values. They strive towards
the achievement of their customer satisfaction, to provide safe working condition, to

pg. 44
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

maintain discipline at all levels, to provide a friendly, congenial working atmosphere,


employee satisfaction to the maximum.

Maharaj Industry is one among the private sector unit which has high values towards
customers and employees. The one more important thing which the Maharaj Industry
values towards is giving quality products to the customers, innovation and respect for
people.

pg. 45
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

CHAPTER-4

SWOT ANALYSIS

The Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a


business venture. It involves specifying the objective of the business venture or project and
identifying the internal and external factors that are favorable and unfavorable to achieving
that objective.

SWOT

OPPORTUNIES

THREADS

WEAKNESS

STRENGH

SWOT is an acronym that stands for Strengths, Weaknesses, Opportunities and Threats.
As a company plans its next move, it should consider all of these things before proceeding.
The plan's strengths and weaknesses are factors within the company's control. The
pg. 46
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

company can then work to make the most of its strengths and eliminate the weaknesses.
Opportunities and threats, on the other hand, are external factors within the community
that could affect the project's success. The company does not have much control over these
situations.

Performing a SWOT analysis of a particular idea means that you are thoroughly thinking
through every aspect of the project before getting started. This allows you to estimate the
project's success before investing a lot of time and capital. It can also give you confidence
that you are on the right track.

For the SWOT technique to work within your company, everyone needs to be honest,
particularly about the company's weaknesses. It may be tempting to say that your
department can handle the work, but if the reality is that you simply don't have the
manpower to take it on, the project is doomed to failure. Dishonesty can cause a false
sense of security from the SWOT.

STRENGTHS:

1. Good location.

2. Skilled manpower, motivated staff.

3. Availability of necessary infrastructure.

4. Highly skilled and qualified persons.

5. Company adopting new technology for production process.

WEAKNESSES:

1. Lack of experience for unskilled labors.

2. Distribution only for the particular areas not other areas.

3. No proper channel of distribution.

pg. 47
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

4. There is no promotional activity.

OPPORTUNITIES:

1. Expand the market in rural areas.

2. Build the customer relationship.

3. Company can try and increase the number of product range in the same product
Line.

THREATS

1. Competition by the large scale industries.

2. Cost pressures from competitors:

3. Cost pressures by customers.

4. Increasing distribution cost.

CHAPTER: 5

FINANCIAL ANALYSIS

BALANCE SHEET OF MSIPL

pg. 48
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

2017 2016 2015


Particulars marc marc marc
h[cr] h[cr] h[cr]

EQUITIE
S&
LIABILI
TIE

SHAREH
OLDER’
S FUNDS

Equity
share 12.03 12.0 12.03
capital 3

Total
equity 12.03 12.0 12.03
capital 3

Reserves 4 3
& surplus 48.32 396.1 69.03
3

Total 4 3
reserves 48.32 396.1 69.03
& surplus 3

Total 4 3
sharehold 60.35 408.1 81.06
er’s fund 6

NON-
CURREN
T
LIABILI
TIES

pg. 49
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

Long term 1 1
borrowing 36.11 188.5 63.12
s 6

Deferred
tax 67.17 66.5 62.82
liabilities[ 6
Net]

Other long
term 1.20 2.0 2.03
liabilities 3

Long term
provisions 3.72 3.8 2.06
6

Total 2 2
non- 08.20 261.0 30.03
current 1
liabilities

CURREN
T
LIABILI
TIES

Short term 1 1
borrowing 46.26 147.4 53.58
s 9

Trade 4 3
payables 16.35 367.5 56.66
1

Other 1
current 12.86 74.1 96.33
liabilities 5

pg. 50
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

Other term
provisions 21.30 30.7 26.03
6

Total 6 6
current 96.77 619.9 32.65
liabilities 1

Total 1,3 1, 1,2


capital & 65.32 289.0 43.74
liabilities 8

ASSETS

NON-
CURREN
T
ASSETS

Tangible 5 50
assets 24.50 516.8 7.34
2

Intangible
assets 1.84 1.5 2.20
9

Capital 1
work-in- 21.93 16.7 2.50
progress 4

FIXED 5 52
ASSETS 48.27 535.1 2.04
5

Non – 1
current 10.95 11.3 5.36
investment 1
s

pg. 51
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

Long term 3
loans & 27.66 25.5 0.94
advances 4

Other non-
current 14.87 12.2 9.10
assets 8

Total 6 57
non- 01.75 584.2 7.44
current 8
assets

CURREN
T
ASSETS

Current
investment 0.00 0.0 0.32
s 0

Inventorie 2 2
s 79.23 266.5 37.66
0

Trade 4 3
receivable 15.79 377.8 68.12
s 1

Cash &
cash 10.38 4.9 6.94
equivalent 6
s

Short term
loans & 57.68 55.2 52.79
advances 1

pg. 52
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

Other
current 0.49 0.3 0.47
assets 2

Total 7 6
current 63.57 704.8 66.30
assets 0

Total 1,3 1, 1,2


assets 65.32 289.0 43.74
8

PROFIT & LOSS ACCOUNT OF MSIPL

Particulars 2017[ 2016[ 201


cr] cr] 5[cr
]

INCOME

Revenue 2,1 2,0 1,95


from 88.01 23.09 8.12
operations[
gross]

Less: 1 1 16
excise/servi 69.76 61.02 1.37
ce tax other
levies

Revenue 2,0 1,8 1,79


from 18.25 62.07 6.75
operations[
net]

Other 1 1 18
operating 54.62 54.20 3.12
revenues

pg. 53
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

Total 2,1 2,0 1,97


operating 72.87 16.27 9.87
revenues

Other
income 3.19 1.86 2.67

Total 2,1 2,0 1,98


revenue 76.06 18.13 2.54

EXPENSE
S

Cost of 1,4 1,3 1,33


materials 23.81 26.09 7.75
consumed

Changes in
inventories
-
of FG,WIP
5.56 2.51 10.3
& Stock-in
2
Trade

Employee 2 2 21
benefit 52.34 55.06 3.31
expenses

Finance 5
costs 47.79 57.58 9.07

Depreciatio
n&
5
amortizatio
63.92 60.45 4.14
n expenses

Other 3 2 28
expenses 04.37 90.11 9.05

Total 2,0 1,9 1,94


expenses 97.79 61.80 3.00

pg. 54
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

Profit/loss
before
3
exceptional
78.27 56.33 9.54
,
extraordin
ary items
& Tax

Profit/loss 3
before tax 78.27 56.33 9.54

Tax
expenses-
continued
operations

Current tax
18.35 12.60 0.00

Less:MAT
credit 0.00 0.00 -
entitlement 3.85

Deferred tax
0.16 3.74 5.95

Total tax
expenses 18.96 16.34 9.80

Profit/loss
after tax &
2
before
59.31 39.99 9.74
extraordin
ary items

Profit/loss
from
2
59.31 39.99 9.74

pg. 55
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

continuing
operations

Profit/loss
for the
2
period
59.31 39.99 9.74

RATIO CALCULATION

1. CURRENT RATIO

The Current ratio is liquidity ratio that measures whether or not a firm has enough
resources to meet its short-term obligations. It compares a firm’s current assets to its
current liabilities. Acceptable current ratio vary from industry to industry. In many cases a
creditor would consider a high current ratio to be better than a low current ratio, because a
high current ratio indicates that the company is more likely to pay the creditor
back.

Current ratio = current assets ÷ current liability

Year Curren Curren Ratio


t t
assets liabilit
y

2015 666.30 632.65 1.05:


1

2016 704.80 619.91 1.13:


1

2017 763.57 696.77 1.10:


1

pg. 56
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

ANALYSIS AND INTERPRETATION

Compare to year 2015 in the year 2016 it was decreased, and also in the year 2017 it was
decreased. So current ratio is fluctuating by year, this may affect the liquidity position of
the company. The company must take certain steps to improve the current ratio.

2. LIQUID RATIO

A liquid ratio is an Indicator of whether a company’s current assets will be sufficient to


meet the company’s obligations when they become due. The liquidity ratios include the
current ratio and the acid test or quick ratio. The current ratio and quick ratio are also
referred to as solvency ratios.

LIQUID RATIO = LIQUID ASSETS ÷ LIQUID LIABILITY

Year Liqui Liquid Ratio


d liabilit
assets y

2015 428.6 632.65 0.67:


8 1

2016 438.3 619.91 0.70


0

2017 484.3 696.77 0.69


4

ANALYSIS AND INTERPRETATION

From the above table shows the liquid ratio from 2015 to 2017.in year 2015 it was 0.67, it
was increased to 0.70 in the year of 2016 and it was decreased to 0.69 in the year 2017.
The

pg. 57
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

3. DEBT EQUITY

The debt-to-equity ratio is a financial ratio indicating the relative proportion


of shareholders' equity and debt used to finance a company's assets. Closely related
to leveraging, the ratio is also known as risk, or leverage. The two components are often
taken from the firm's balance sheet or statement of financial position (so-called book
value), but the ratio may also be calculated using market values for both, if the company's
debt and equity are publicly traded, or using a combination of book value for debt and
market value for equity financially.

DEBT EQUITY = DEBT ÷ EQUITY

YEA DEB EQUIT RATI


R T Y O

2015 316. 381.06 0.83


70

2016 336. 408.16 0.82


05

2017 282. 460.35 0.61


37

ANALYSIS AND INTERPRETATION

From the above table shows the debt equity ratio from 2015 to 2017 it was decreased
Compare to year to year 2015, 2016 and 2017 it was decreased.

4. NET PROFIT RATIO

Net profit ratio is a popular profitability ratio that shows relationship between net profit
after tax and net sales. It is computed by dividing the net profit (after tax) by net sales.

For the purpose of this ratio, net profit is equal to gross profit minus operating expenses
and income tax. All non-operating revenues and expenses are not taken into account
pg. 58
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

because the purpose of this ratio is to evaluate the profitability of the business from its
primary operations.

NET PROFIT RATIO = NET PROFIT ÷ SALES*100

YEA NET SALE RATI


R PROF S O
IT

2015 29.74 1979. 1.50


87 %

2016 39.99 2016. 1.98


02 %

2017 59.31 2172. 2.72


87 %

ANALYSIS AND INTERPRETATION

Net profit ratio represents the increase in sales over a period of 3 years from 2015, 2016
and 2017.net profit ratio represents that the industry financial position is good.

5. RETURN ON EQUITY RATIO

Return on equity (ROE) is the amount of net income returned as a percentage


of shareholders equity. Return on equity measures a corporation's profitability by revealing
how much profit a company generates with the money shareholders have invested.

RETURN ON EQUITY RATIO = PAT ÷ EQUITY*100

YEA PA EQUIT RATI


R T Y O

pg. 59
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

2015 59.3 381.06 15.56


1

2016 39.9 408.16 9.79


9

2017 29.7 460.35 6.46


4

ANALYSIS AND INTERPRETATION

Return on equity ratio represents the decreased trend over a period of 3 year 2015, 2016
and 2017. Return on equity ratio represents that the firm’s profitability. A low return on
equity ratio is not good for industry.

6. CURRENT ASSET TO FIXED ASSET RATIO

The fixed asset ratio is, in general, used to measure operating performance. This ratio
specifically measures how able a company is to generate net sales from fixed asset
investment, namely property, plant and machinery, equipments, net of depreciation.

CURRENT ASSET TO FIXED ASSET RATIO = CURRENT ASSET ÷ FIXED


ASSET

YE CURRE FIXE RAT


AR NT D IO
ASSET ASS
ET

pg. 60
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

201 763.57 548. 1.39:


5 27 1

201 704.80 535. 1.31:


6 15 1

201 666.30 522. 1.27:


7 04 1

ANALYSIS AND INTERPRETATION

The company Current asset to fixed asset ratio decreased from year to year. This tells that
the company is facing the problem. This is not good sign for the
industry.

CHAPTER: 6

LEARNING EXPERIENCE

Organization study is a more use full to me because I get a practical knowledge of the
manufacturing company activities, like production process of product and interact with the

pg. 61
ORGANISETIO STUDY OF MAHARAJA INDUSTRY PVT ,LTD,DAVANGERE.

employees. Get information How to work in the production department. I learn about the
company profile, products, utilizing machineries, raw materials, and packing system
payment system of the manufacturing industry.

Company SWOT analysis like strength, weakness, opportunities, threats. 7s model how
work to the Maharaj industry. I find out the problems and I can suggest to the company
lastly I learn about the company staff. How to behave in company and how convenience to
the manager gives to permission for industry visit.

This study helps to know the how organization works and how they controlling the
different departments and maintain a good relationship with customers through giving the
good quality of products.

pg. 62

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