Project On Ssi

CHAPTER – I
INTRODUCTION TO SMALL SCALE INDUSTRIES
Small scale industries (SSI) refer to those small entrepreneurs who are
engaged in production, manufacturing or service at a micro scale. Small scale
industries play a focal role in the economic and social development of India in
the post-independence era. Small scale industries constitute the backbone of a
developing economy with its effective, efficient, flexible and innovative
entrepreneurial spirit .Round the world SSI units have been accepted originator
of economic growth and for promoting equitable development. The contribution
of SSIs to the Indian economy in terms of employment generation, reducing
regional imbalances, promoting inter-sectorial linkages, magnifying exports and
fostering equitable economic growth potential has been quite marvellous. This
sector through more than 6000 products ranging from traditional to high-tech,
consisting over 36 million units widely dispersed across the country provides
employment to over 80 million persons, contributes about 8% to country’s GDP
beside accounting for 45% of manufactured output and 40% to the export from the
country. [1] The SSI sector has the prospective to spread industrial growth round the
country and can be a considerable associate in the progress of comprehensive
growth. The target of proposed National Manufacturing Policy of enhancing the
share of manufacturing sector in GDP to 25% and to create 100 million jobs by
end of 2022, as well as to take India from its present 2 trillion dollar economy
to 20 trillion dollar economy can be achieved with the help of SSI units. The
paper attempts to discuss the role of small scale industries in developing economy
and explore the various problems faced by It.
MEANING OF SMALL SCALE INDUSTRIES:
Small scale sector plays an important role in the development of every country. In a
developing country like India this sector is indispensable. Since independence small
scale units have made significant progress. After agriculture small scale sector
provides highest employment to the labour force. Since small units are widely
dispersed, they provide jobs to local residents.
In the sphere of production this sector provides a major share in the industrial
production of the country. Large scale units are also dependent on small units for
various needs. Ancillary units which are very important for big units are mostly in small
sector. Government of India also encourages the development of small units through
industrial and financial policies.
DEFINITION OF SMALL SCALE INDUSTRIES
A. The Small Scale Industries Board(1955) – “A unit employing less than 50

persons if using power and less than 100 persons without the use of power and with
capital assets not exceeding Rs. five lakhs.”
B. Government of India (1980) - “Undertakings having investment in fixed assets

in plants and machinery not exceeding Rs. 15 lakhs and engaged in the manufacturing
of parts of components, sub-assemblies or intermediaries and proposes to supply at
least 50% of its production to one or more parent unit and such ancillary industry shall
not be a subsidiary of or owned or controlled by any other undertaking.”
C. Government of India (2000) - “Small scale undertakings are those which are
engaged in manufacturing, processing or preservation of goods and in which
investment in plant and machinery (original cost) does not exceed Rs. 1 crore.” In
case of enterprises engaged in the manufacturing or production of good.
IMPORTANCE AND ROLE OF SMALL-SCALE INDUSTRIES
The Small-scale sector plays a vital role in the growth of the countries.
1. Employment Potential
Small-scale industries are labour intensive. A given amount of capital invested

in small-scale industrial undertakings is likely to provide more employment. At least in
the short run, then the same amount of capital invested in large-scale undertakings.
The Encouragement of small-scale industries would serve to counteract the seasonal
unemployment in agriculture and Thus to utilize labour which might otherwise go to
waste.
2. Less Capital Requirement
Small-scale industries are the capital-light example they need a relatively

smaller amount of capital than that required by large-scale industries. Thus, one of the
great advantages of small-scale industries is that they make possible economies in
the use of capital. As capital is very scarce in under-developed countries. It May be
used to Greater advantage in the early stages of development if it is used to expand
transport and other public utilities, irrigation, and other agricultural requirements and
those forms of large-scale industry where the advantages outstandingly great.
3. Latent Resources
Small-scale industries will fall into being capital that would not otherwise have
come into existence. The spreading of small-scale industries over the countryside
would encourage the habits of thrift and investment in rural areas. Moreover, the
enterprising small manufacturer has to scrape together capital where the can find it.
He often manages to get it from relatives and friends.
4. Skill Light
Another attraction of small-scale industries lies in their being skill light a large
scale industry calls for a great deal of Management and supervisory skill foremen,
engineers, Accountants, and so on. Like capital, these skills are also in very short
supply in our country, and it is important to economies as much as possible in their
use.
5. Use of Local Resources
Small-scale industries are importing light like they used a relatively low
proportion of imported equipment and materials as compared with the total amount of
capital used in them. Large-scale industries, on the other hand, require huge imports
in the form of equipment and materials, upsetting the country’s Balance of payments
thereby.
6. Quick Production
Small-scale industries are the “quick investment type” like, those in which the
time required between the investment of capital and the start of the flow of goods
produced is relatively short. In a developing economy with strong inflationary pressure
and need for a rapid rise in the living standards, the importance of such quick
investment type Industries can hardly be exaggerated.
7. Decentralization
The development of small-scale industries will being about

the decentralization of industries and will thus, promote the object of Balanced
regional development. A major drawback in the industrial structure of our country is
that the regional distribution of industries is exceedingly uneven. On the other hand,
there is a misappropriate net growth of large-scale industries in a few areas.
8. Equitable Distribution
Small-scale industries and cottage industries have the additional advantage

that small-scale industries they secure a more even distribution of income and wealth.
The development of large-scale industries tends to concentrate large income and
wealth in a few hands, which is undesirable from the social point of view, in that they
involve exploitation of Man by man.
9. Mobility of Labour
By carrying the job to the worker, small-scale industries can overcome the
difficulties of terrestrial immobility. Moreover, unlike large Industries small-scale
industries do not create problems of slum housing, health, and sanitation, etc. and the
attendant disease, misery, and squalor.
10. Support of Large-Scale Industries
Another highly useful role of small-scale industries in developed and

underdeveloped countries is the great support that the development of large-scale
industries can obtain from small-scale industries.
This is possible in the following ways:
(1). Small-scale industries may manufacturer small parts like cycle parts, which may
letter be assembled by the large Industries.
(2). The large-scale industry may produce semi-finished goods which may lead to
being made into several types of finished goods in small-scale industries setups, such
as agricultural implements and cutlery from iron and steel, household utensils from
sheet metals.
11. Reduction of Dependence on Agriculture
The growth of Cottage and small-scale industries will divert surplus labour from
our overburdened agriculture and thus bring about a more desirable occupational
distribution.
12. Relieving Congestion in Urban Areas
By providing remunerative employment in the rural areas, these Industries will

relieve congestion in overcrowded urban centers.
13. Sustaining Green Revolution
Small-scale industries can help sustain the green revolution in the countryside
mainly through the development of agro-based industries and services, such as the
production of farm implements and equipment for food processing industries and
Agricultural Machinery repair and service workshops. Examples of the different types
of small-scale industries.
14. Foreign Exchange Earning
From the point of Balance of payments, small-scale industries are justified on

two Grounds. One, they do not require much foreign exchange resources for their
establishment and to that extent place almost no extra burden on the balance of
payment, position.
15. Production of Consumer
Small-scale industries, predominantly producers of consumer goods, have a

key place in the process of development. The industrialization of the country, with
emphasis on heavy industries, requires large capital investment, living little for large
and consumer goods industries.
16. Political and Social Advantages
Small-scale industries can help in awakening the powerful dormant forces

among masses for use in constructive activities. The freedom of work, self-reliance,
self-confidence, enthusiasm to achieve, and all such traits of a healthy Nation can be
built around the material activities performed in these industries.
17. Preservation of Inherited Skill
Small-scale industries were helpful in the preservation of the inherited skill of

our artisans which would otherwise languish and disappear. A great many people in
villages and small towns will be saved from the mechanical, monotonous and robot-
like life associated with big industrial cities.
CHARACTERISTICS OF SMALL SCALE INDUSTRIES:
Following are the characteristics of some industries which identify them as small-scale
industries:
1. Labour intensive:
Small-scale industries are fairly labour-intensive. They provide an economic

solution by creating employment opportunities in urban and rural areas at a relatively
low cost of capital investment.
2. Flexibility:
Small-scale industries are flexible in their operation. They adopt quickly to

various factors that play a large part in daily management. Their flexibility makes them
best suited to constantly changing environment.
3. One-man show:
A small-scale unit is generally a one-man show. It is mostly set up by

individuals. Even some small units are run by partnership firm or company, the
activities are mainly carried out by one of the partners or directors. Therefore,’ they
provide an outlet for expression of the entrepreneurial spirit. As they are their own
boss, the decision making process is fast and at times more innovative.
4. Use of indigenous raw materials:
Small-scale industries use indigenous raw materials and promote intermediate

and capital goods. They contribute to faster balance economic growth in a transitional
economy through decentralisation and dispersal of industries in the local areas.
5. Localised operation:
Small-scale industries generally restrict their operation to local areas in order

to meet the local and regional demands of the people. They cannot enlarge their
business activities due to limited resources.
6. Lesser gestation period:
Gestation period is the period after which the return or investment starts. It is
the time period between setting the units and commencement of production. Small-
scale industries usually have a lesser gestation period than large industries. This helps
the entrepreneur to earn after a short period of time. Capital will not be blocked for a
longer period.
7. Educational level:
The educational level of the employees of small industries is normally low or

moderate. Hardly there is any need of specialised knowledge and skill to operate and
manage the SSI.
8. Profit motive:
The owners of small industries are too much profit conscious. They always try
to keep high margins in their pricing. This is one of the reason for which the unit may
lead to closure.
Role in the Indian economy
Employment: SSI’s are a major source of employment for developing countries like
India. Because of the limited technology and resource availability, they tend to use
labour and manpower for their production activities.
Total Production: These enterprises account for almost 40% of the total production
of goods and services in India. They are one of the main reasons for the growth and
strengthening of the economy.
Make in India: SSI’s are the best examples for the Make in India initiative. They
focus on the mission to manufacture in India and sell the products worldwide. This
also helps create more demands from all over the world.
Export contribution: India’s export industry majorly relies on these small industries
for their growth and development. Nearly half of the goods that are exported from
India are manufactured or produced by these industries.
OBJECTIVES OF SMALL SCALE INDUSTRIES:
The objectives of the small scale industries are:
 To create more employment opportunities.

 To help develop the rural and less developed regions of the economy.
 To reduce regional imbalances.
 To ensure optimum utilisation of unexploited resources of the country.
 To improve the standard of living of people.
 To ensure equal distribution of income and wealth.
 To solve the unemployment problem.
 To attain self-reliance.
 To adopt the latest technology aimed at producing better quality products at
lower costs.
Advantages or Merits of Small Scale Industries
Small Scale Industries have always played an important role in the economic
development of the country. The following are the merits of Small Scale Industries:
1. Potential for large employment
Small Scale Industries have potential to create employment opportunities on a

massive scale. They are labor intensive in character. They use more labor than other
factors of production. They can be set up in short time and can provide employment
opportunities to more number of people. This is important for a labor abundant country
like India.
2. Requirement of less capital
Small Scale Industries require less capital when compared to large scale industries.
India is a capital scarce country and therefore Small Scale Industries are more suitable
in the Indian context. They can be started and run by small entrepreneurs who have
limited capital resources
3. Contribution to industrial output
Products manufactured by Small Scale Industries form a significant portion of the

industrial output of the country. They produce a number of consumer goods as well as
industrial components in large quantities and satisfy the needs of consumers. The
consumer goods produced by Small Scale Industries are cheaper and satisfy the
requirements of the poorer sections.
4. Contribution to exports
Small Scale Industries contribute nearly 40 per cent to the industrial exports of the
country. Products such as hosiery, knitwear, hand loom, gems and jewellery,
handicrafts, coir products, textiles, sports goods, finished leather, leather products,
woolen garments, processed food, chemicals and allied products and a large number
of engineering goods produced by the SSI sector contribute substantially to India’s
exports. Further products produced by Small Scale Industries are used in the
manufacture of products manufactured and exported by large scale industries.
Therefore they contribute both directly and indirectly to exports and earn valuable
foreign exchange.
5. Earning foreign exchange
Small Scale Industries earn valuable foreign exchange for the country by exporting
products to different countries of the world. At the same time, their imports are very
little and so there is less foreign exchange outgo. Therefore Small Scale Industries are
net foreign exchange earners. For e.g. Small Scale Industries in Tiruppur contribute
to a substantial portion of India’s textile exports and earn valuable foreign exchange
for the country.
6. Equitable distribution
Large scale industries lead to inequalities in income distribution and concentration of

economic power. But small scale industries distribute resources and wealth more
equitably. It is because income is distributed among more number of workers since it
is labour intensive. This results in both economic and social welfare.
7. Use of domestic resources
Small Scale Industries use locally available resources in a productive manner which
would have otherwise gone waste. Small amounts of savings which would have
remained idle is channelized into setting up of small enterprises. This increases capital
formation and investment in the economy.
8. Opportunities for entrepreneurship
Small Scale Industries provide opportunities for entrepreneurs with limited capital.
Setting up of an SSI requires less capital and lower investment in technology and
machines when compared to large scale enterprises. Therefore small entrepreneurs
car start Small Scale Industries easily and succeed. Japan which was devastated by
the Second World War became a major economic power because of many small
entrepreneurs, who contributed greatly to the nation’s development.
9. Cost efficiency
Small scale units can adopt lean production method. which offer better quality and
more variety at a lower cost. They can bi more cost efficient when compared to large
scale units because their expenses are lower.
10. Reducing migration
Migration happens when people living in rural areas are not able to find employment
and therefore migrate to urban areas seeking employment. Large scale migration puts
tremendous pressure on land, water and other resources in urban areas leading to
poor quality of life. Small Scale Industries use the skills and talents of rural craftsmen,
artisans etc. They provide gainful employment to those with inherited skills resulting in
their economic upliftment. Thus Small Scale Industries help in reducing migration.
11. Suitable for non-standardized products
Large scale enterprises are suitable for manufacturing standardized products on a

large scale whereas Small Scale Industries are more suitable for manufacturing non-
standardized products.
12. Flexibility in operation
Small scale enterprises are more flexible. They can adapt themselves to changing
market requirements very fast and benefit from new opportunities.
13. Quick decisions
Since the enterprise is small and there is not much hierarchy, quick decisions.can be
taken. Quick decisions are helpful in solving problems in the initial stages and also to
exploit market opportunities.
14. Adaptability to change
Small Scale Industries can understand the changing requirements of the customers
and adapt themselves much quickly. They can change their procedures, methods and
techniques faster and cater to new requirements of their customers.
15. Small market size
In case the market size is small, producing products on a large scale would not be
feasible. In such cases, Small Scale Industries are more suitable since they produce
limited quantities.
16. Customization
Today customers prefer products tailored to their specific needs. They demand unique
products. In such cases where products have to be customized to individual customer
needs large scale production would not be suitable. Small Scale Industries are better
suited in case products have to be customized.
17. Low social costs
In the case of large scale enterprises, society has to incur high social costs in terms
of air and water pollution and environmental degradation. But in the case of small
enterprises, such social costs are less.
18. Self interest
Small business is generally run by the sole proprietor of the business. He earns all
and risks all. Self interest act as a strong motivator. Therefore he would put in his best
efforts to make the business a success
Demerits or Disadvantages of Small Scale Industries
1. Lack economies of scale: SSI’s produce in small quantities. Therefore they do not
enjoy economies of scale in purchases, production and marketing. Their costs are
consequently higher and they are not able to compete with large scale units. They
were able to survive when many of the items were reserved for production by SSI’s.
But after the economic liberalization policy followed by the government, many of the
items have been De-reserved. Therefore large scale units can also produce products
which were earlier produced only by small scale units. Many of the SSI’s have closed
down unable to compete with large scale producers and cheap imports from other
countries, especially China.
2. Low wages: Though SSI’s are labour intensive, the wages paid in SSI’s are low
when compared to those paid in large scale industries. In many SSI’s because of lack
of safety measures and proper training to workers, accidents and injuries are common
occurrences.
3. Lack of modernization: Due to their small scale of operations and limited capital
resources, SSI’s are not able to invest in modernization. They do not have access to
latest technology and therefore cannot improve their efficiency of operations.
4. Inefficiency: Due to lack of scale economies, low skilled and poorly trained workers
and usage of outdated technology, small scale industry suffers from inefficiency of
operations. Their productivity is low when compared to large scale industries.
5. Overcrowding: It is quite easy to set up an SSI. The capital requirement is less and
procedural formalities are simple. This leads to intense competition and overcrowding.
It may lead to cut-throat competition affecting their survival.
6. Sickness: Due to the ease of setting up and because of the incentives available,
many unemployed youth set up SSI’s with very little business knowledge and skills.
They find it difficult to survive in the business and close down their operations. Further
because of the problems of procuring finance, use of outdated technology and lack of
marketing expertise many SSI’s incur losses and are forced to close down.
7. Less innovation capacity: SSI’s have limited financial resources, therefore they
are not able to invest adequately in research and development (R&D) or acquire
technology. As a result their technological up-gradation is less and they continue with
outdated processes and techniques. This hinders their competitiveness and capacity
to come out with new products, processes etc.
8. Low competitiveness: Due to their small scale, lack of modern technology and
poorly trained workers, SSI’s lack the competitiveness to compete with large scale
industries. Now, many items which were reserved for production by SSI’s have been
De-reserved. Therefore SSI’s face increasing competition from large scale Indian
enterprises as well as foreign competitors.
9. Low capacity utilization: In many SSI’s, capacity utilization is low and productive
capacity remains idle. Small firms are unable to utilize their full capacity due to
problems related to finance, marketing, technology, skills etc.
10. Lack of pollution control: Large scale enterprises which are polluting in nature,
are able to set up pollution control equipment such as effluent treatment plants. SSI’s
are not able to set up such facilities because of lack of finance, technology, skills etc.
11. Low labour productivity: The productivity of labour in small scale industries is
low. The reason is workers employed in SSI’s are unskilled, lack proper training and
work on outdated technology. Their wages are less and therefore motivation levels of
workers is also quite low. Poor labour productivity results in lower output, increasing
the cost of production and problems in meeting demand schedules.
TYPES OF SMALL SCALE INDUSTRIES:
All types of small-scale industries found in India whether in manufacturing sector or

service sector are divided into five types:
1. Manufacturing Industries:
Those units which are producing complete articles for direct consumption and
also for processing industries are called as manufacturing industries. For example :
Powerlooms, engineering industries, coin industries, khadi industries, food
processing industries etc
2. Ancillary Industries:
The industries which are producing parts and components and rendering
services to large industries are called as ancillary industries.
3. Service Industries:
Service industries are those which are covering light repair shops necessary
to maintain mechanical equipments. These industries are essentially machine-
based.
4. Feeder Industries
Feeder industries are those which are specialising in certain types of products
and services, e.g. casting, electro-plating, welding, etc.
CONCLUSION:
CHAPTER-II
REVIEW OF LITERAURE
Small scale industries have been given an important place in the economy of
both developing and developed countries. The economic development achieved by
many developed countries can be linked directly to the growth of this sector. In the
India the small-scale industrial sector has registered rapid growth. In view of the
importance of small –scale industrial sector, the growth and development has attracted
a goof deal of academic attention. A large volume of literature this available on the
different aspects of small-scale industries has been studied at length. A brief review
of such important studies is made here.
A study conducted by Bhatia (1976) states that in a majority of cases, units

outside the industrial estates, showed higher rates of surplus.
Graham Bannock 2 [1981] presents a vivid picture of the practical problems of

the individual small business, showing how they relate to the wider issues of economic
policy. He believes the release of the economic dynamisms inherent in the Small
business sector could help to generate the social and economic change needed for
the resumption of inflation-free growth.
Chuta Envoying Chita and Carl Lied Holm 3 [1985] in a comprehensive study
of SSI in Sierra Leone provide a new insight into the role of SSI in providing production,
employment and earning opportunities. Besides giving an overview of the role of the
rural and urban Industry in Sierra Leone, the determinants of the demand for and
supply of SSI products are examined.
Sandesara 4 (1988) a study of assistance programmes for small-scale

industries. The study revealed that units producing items in the reserved list did not
show away superior performance over other units, mainly because the easy entry for
new small-scale units had intensified the competition among the small units.
Siddhartha Shankar Dash and others 5 [1990] in a study under taken in

Balasori district in Orissa attempt to analyse the operational problems in launching
SST units. They conclude that although policies are good, often delay in
implementation and faulty implementation upset the entrepreneur's plan and in many
cases lead the production process to a stand still
Sharma 6 (1990) in his study made an effort to make an over view of sports
goods Industry, Micro Industry c-f selected centres, problems at different levels, role
of institutions and future perspective.
In a study conducted by Berry, Albert and Mazumdar Dipek 7 (1991) states

that small-scale industry has been important in the_ successful development of many
of the economies of East and South Asia, both in cases like Japan, Korea and Taiwan
where import-substitution preceded and / or accompanied the manufactured exporting
phase and in Hong Kong, the only essentially Laissez Faire economy in the region.
An important general characteristic of the small-scale sector and one long commented
upon in the Japanese case, is the presence of subcontracting relationships either with
larger manufacturing firms or with traders.
Tambunan Tulus8 (1991) examines the role of small-scale Industries in

Economic development of Indonesia. This survey as the macro - level leads us to a
much less pessimistic view c f the performance of SSI units in Indonesia though
obviously imperfections in comparison with medium and large-scale Industries do
exist. It also gives attention to a critical question of appropriate policies needed to
support this sector.
Steel William. And Webster Leila.9 (1991) investigates the hypothesis that
small enterprises play an important and dynamic role in the structural adjustment
process and in Africa's Industrial development. It discusses the role of small
enterprises in the industrial development and introduces the adjustment context, the
evolution of large and small-scale Industry in Ghana, and the Economic recovery
program and its impact.
Balla10 (1992) in his study discusses the centralised vs. decentralised policy
towards small and medium enterprises, technological policy for small and medium
enterprises in China.
Jamuar 11 (1992) in his study discusses the development of small-scale and

cottage Industry in India and the role of small-scale Industry in India, the present
position and problems of small-scale Industry with special references to Industrial
sickness, government policy and measures to develop small-scale and cottage
Industry and new Industrial policy on small-scale and cottage Industry.
Rama Swamy 12 (1993) in his study examines three hypothesis regarding

small- scale manufacturing units, namely: small firms use more labour per unit of
capital, they produce more output per unit of capital and small firms use resources
more efficiently than large firms in to the total Factor Productivity. The analysis
indicates that capital intensity and partial productivities are sensitive to alternative
measures of firm size. And total factor productivity is not found systematically related.
Ramabijoy 13 (1993) in his study analyses government support, capacity under

utilization marketing and financing power and transport of small-scale Industries and
also the entrepreneurship and management of sickness.
Pillai 14 (1994) in his study analyzed the future role of small scale sector in the
evolving economic setting and the challenges it may have to face to sustain its place
as an important contributor to the development process.
Rao 15 (1995) reported that the potential for investment related to technology
requisition and transfer in small-scale and medium sector has assumed considerable
significance in their interest to face the challenges of liberalisation and globalisation of
markets.
A study conducted by Hayami, Yujiro, and others 16 (1998) reveal that

marketing channels be established which connect small rural producers with large
urban and /or foreign demand. This ,study investigates various forms of production
and trade contracts being practiced at the grass root level in the metal craft
manufacturing industry on the outskirts of Greater Manila in the Philippines.
Balasubrahmanya 17 (1998) in his study describes the elements of India's

small industry policy with specific reference to protective measures, and reviews its
impact on the growth and efficiency of the sector.
Datey 18 (1999) in his study titled practice manual to small scale Industries
discusses the importance of small-scale industries, clubbing of clearances of SSI and
an overview of income tax, central sales tax, Finance to SSI and management of SSI
units.
COMPANY PROFILE
Background and inception of the company:
Sri. N.Ranga Rao faced many adversities right from a tender age, losing his
father at the age of six to severe health problems, resulting in setbacks in his
professional life. But Sri. Ranga was a man of courage, clarity, discipline and
independent attitude; Life’s shortcomings did not stop him from achieving his vision.
Sri. Ranga Rao is an excellent example of hard work and sustained interest. As
a boy of eleven, he began selling biscuits in his school. Another boy also began doing
the same and become a competitor. Immediately he gave peppermint free with a
biscuit and his rival vanished from the scene.
As years rolled by he worked or a coffee estate in different cities. When he was

in Kodagu, he would visit Mysore City; he loved the city and thought of starting a
business in Mysore. Thus came about the birth of “Mysore products and general
trading company”, in 1948 which produced soap nut powder turmeric powder and
agarbattis. Along with the birth of a company was the birth of tradition – a family
enterprise offering the highest quality and purity in all their products.
` He chooses to focus on the simple & ubiquitous agarbatti, and embarked on a

journey that established the nondescript agarbatti on the commercial map of India.
His belief “Quality backed by values will pay” and his belief took him far and
long – the small cottage industry transformed into a global entity. N.Ranga Rao & Sons
is now the largest incense manufacturer which has created 5 popular brands- Cycle,
Lia, Flute, and Rhythm & woods. Cycle Agarbattis is the market leader in India and
is exported to over 60 countries.
The company, which started with incense, has grown to provide customers a
complete range of solutions in air care- from deodorants and room fresheners to
aroma oils. The growth has been crafted by total endurance, perseverance and
commitment to rigid quality standards, unceasing research, innovative packaging, and
product innovation backed by his motto.
“Total customer satisfaction with value for money”.
The founder’s guiding principles of integrity, quality, customer responsiveness,

financial discipline and importantly, honouring commitments and a genuine concern
for social causes is consistently reflected in NRRS values. Today the brand has
support & patronage of millions of households across India and world over.
NR GROUP
The NR group has always been ahead of its time, which translated to a series
of marketing, research, product, packaging & organizational innovation. As a result,
the brand evolved from an incense sticks producer to one that provides a complete
range of solutions in natural aroma product. An extensive range of fragrance products
come under the brand – from coils and cones to aromatic oils: room fresheners to reed
diffuser sticks; fragranced lifestyle products to botanical research and floral extracts.
Keeping with the new and yet preserving the traditional values has helped the
group grow extensively. The family enterprise is now seeing its third generation
overseeing the business as CEOs, most of who have returned to head the group
companies after management degrees from US universities. Over the last six
decades, the group has diversified into 6 sectors and in each; it has carved a name
for itself. The group companies have an independent corporate set up managed by
professional with the third generation overseeing operation as CEOs.
THE NR GROUP OF COMPANIES:
N.Ranga Rao & Sons (Manufacturer of Cycle Pure Agarbattis)
 Established in 1948, N.Ranga Rao & Sons is a pioneer and leader in the
incense industry for over 6 decades in
 Creativity of fragrances and packaging.
 Professional management and marketing, and now tally ERP integrated.
 Has a library of over 500 fragrances, all created and blended in a house.
 Consistently winning awards in various categories over the last few decades.
Rangsons Marketing Services Pvt.Ltd.
 Established in 1993.
 Independent professional organization marketing Cycle Brand Agarbattis and
the developing fragrance Domain products of NR group.
 Has a network of a large number of distributors and field force across all states
in India, enabling excellent after sales service.
 Conducts consumer and market research regularly to understand their
perception and requirement.
NR foundation (Non- Profit Charitable Trust)
 Ranga Rao Memorial School for Disables (Est. 1988), the first residential school
for visually challenged girls in Karnataka.
 Project Prerepana focuses on promotion of health and education of women and
children in selected slums of Mysore. Through the learning centres, 103
dropouts in the age group of 3 to 16 years have been groomed and brought
back into mainstream education
 Cycle Scholarship program wherein financial assistance is given annually to
about 600 students in Mysore and Hyderabad.
 Ranga Jana Vinimaya Kendra and centre for intellectual debate and discussion.
It is an informal interface between those who know and those who want to know.
NESSO- Natural and Essential oils Pvt. Ltd (Mfr & Marketer of essential Oil and
Floral Extracts)
 Global market share leader in Indian floral extracts.
 Has 7 extraction facilities strategically located near cultivation clusters in south
India with capacity to process 12 tons of fresh flowers daily.
 Over 24000 has of green tea plantation.
 Continuous research on standardization of herbal extracts, Ayurvedic
formulation and phytochemicals.
 Delivers fresh, natural and quality floral concretes and absolutes to flavour and
fragrance houses, cosmetic and nutraceutical companies across the globe.
RIPPLE Fragrances Pvt. Ltd. (Mfr. & Marketer of personal & Air care Lifestyle
Products)
 The spatial fragrance division of the NR Group.
 Is strongly entrenched in the Indian air care market with its brands Lia and IRIS.
 Lia range of do-good air care products consists of room fresheners and car
fresheners.
 IRIS is pioneering the home fragrances market in India through novel delivery
systems and exciting fragrances.
 IRIS product range includes Reed Diffusers, Fragrance Vapourizers, Potpourri
Fragrant Stones, Speciality Incense, Pillow Mister and Aroma Candles.
 Present in the personal care space to with DNA brand of Deodorants and
Perfumes.
Rangsons Electronics Pvt. Ltd. (Total Electronic Manufacturing Services)
 Certified for ISO 9001: 2008. ISO 13485: 2003, ISO 14001: 2004 & OHSAS
18001:2007 and is an early adopter of RoHS regulations.
 The first ENS enterprise in India to be certified for as 9100 – the quality standard
uniquely required by the aerospace industry.
 Preferred partner for the High Mix-High Tech Electronics OEMs by providing
complete solutions required to transform ideas into successful products and
services.
 Provides solutions in the field of medical systems, defense, industrial
networking and telecommunication.
 REPL has received supplier awards from L&T, GE Medical Systems & Wipro
technologies.
N Ranga Rao & Sons Exports.
The ambassador of Indian aroma traditions; this company successfully exports

incense and related products to more than 50 countries in Asia, Africa, Europe, Latin
America, the Middle East, Far East and North America. N Ranga Rao & Sons Exports
tops this achievement with a large number of prestigious awards for excellence in
international business to its credit as well as a winning streak with the Government of
India Export Award in the incense category.
Nature of the business:
The best of raw materials are sourced directly from the Asian sub-continent.
None of these are issued for production until they pass very stringent quality control
tests.
NR Group has the strongest R&D setup in the entire agarbatti industry. Years
of rigorous research have given us distinction in fragrance creation, and known to have
set trends in creating different forms of incense and packaging.
NR Group's core competence - the nurtured art of creating new fragrances is a

family secret that has been handed down through generations, safeguarding the purity
and original quality of the incense.
Adding to the company's strength is the fact that all fragrances are made or
blended in-house and all processes are developed in-house, ensuring that there are
no collaborations. All statutory requirements under labour, forest, commercial and
pollution control laws are applicable to this industry, which is recognized by the
Government as a handicraft industry. This safeguards the interests of the production
workforce and the environment.
A professionally managed company, N. Ranga Rao & Sons introduced modern

practices such as Vendor Development Initiatives, Quality Management and HRD as
early as 1960.
Cycle agarbatti gives full and part time employment to many tribal hamlets and
also to more than 3000 families in India. Cycle products are totally eco-friendly - no
CFCs are released during production, no animal products used and no animal testing
is involved
Vision, Mission and Quality policy:
Vision Statement: Satisfaction of consumer needs and wants through systematic and
regular customer services.
Mission Statement: To enhance the wealth generating capability of the enterprise in
a globalizing environment, delivering superior and sustainable to consumers.
Quality policies:
 The customer is the sole focus of the business.

 Company constantly Endeavour towards customer satisfaction by delivering
products and services of the best value and quality
 Company strives to honours our commitments, implied, to both, our internal and
external customer.
 Company stress on integrity, transparency and consistency in all our dealings.
 Company always strives to have a trusting, mutually beneficial and long-lasting
relationship with our business associates.
 Company seeks to maintain a warm, positive and friendly work.
 Company empowers people at appropriate level to achieve their goal.
 Company recognizes and reward merit and performance.
Products & Service profile:
Cycle brand
Cycle
Traditional yet contemporary; Cycle Agarbatti is a timeless

classic. This series contains fragrances that have stood the
test of time to remain hugely popular over the decades.
All in 1
An inspired and innovative combination pack perfect for

gifting! It has a collection of creative fragrances which have
been popular and successful for decades. This collection of
amazing aroma makes a good gift on any special occasion.
Natya Kesari
A sweet fragrance. A sublime fragrance. A classic fragrance.
Only incense with such qualities can hold its own with the
passage of time. And it has done so with aplomb. There are
very few fragrances that can match up to its power. Light it
and you too will get swayed by its waft.
Bansuri
The clear, uncluttered minds that are charmed by the simple
things in life will love this series of fragrances that stand out
for the simplicity and clarity in their notes. Bansuri produce an
exhilarating fragrance that tantalizes the senses and moves
the soul.
Moods
This emotion transforming incense is sharp, sweet and very,

very distinctive. Just a whiff of it is enough to put you in a
different frame of mind with its mood altering qualities. Now
you know why it's called Moods.
Woods
The best in nature is captured for you in this premium
incense. Woods incense has natural oils and resins that have
been treasured down the ages for their aromatic and
medicinal qualities. With its deep woody smell, it connects
you to nature instantly. Purity unmatched by any other
incense!
Three in One
One of our time-tested, best-selling combo pack which has 3
different fragrances in 1 pack:
1. Serene (Lily) The delicate, subtle fragrance of lily creates
a serene ambience. Let its gentle soothing and sedating
qualities calm your heart and emotions and lull you into a
state of peace.
2. Yugantar (Fancy) A sweet, fruity creation whose aroma
lingers on long after it is burnt, yet is enticing enough to leave
you yearning for more. The fruity experience rejuvenates you
completely, as much as eating a vitamin packed basket full of
fruits would.
3. Jagrane (Intimate) This utterly sweet smelling fragrance
with its bouquet of green and coniferous undertones creates
a cozy atmosphere and awakens your senses to the new aura
surrounding you.
Surprise: As the name suggests, this is the unexpected
delight of the pack. You are surprised with a different
fragrance every time, which could range from the sweet
smelling to the woodsy.
Lia
For the youthful you, for those seeking novelty, for those
ready for adventure and game for the new & unknown - Lia is
always new,
Area of Operations Global/National/Regional
Cycle Agarbattis is the market leader in India and is exported to over 60

countries.
The ambassador of Indian aroma traditions; this company successfully exports

incense and related products to more than 60 countries in Asia, Africa, Europe, Latin
America, the Middle East, Far East and North America.
N Ranga Rao & Sons Exports tops this achievement with a large number of
prestigious awards for excellence in international business to its credit as well as a
winning streak with the Government of India Export Award in the incense category.
The NR Group is vertically integrated in the fragrance domain. NR Group is one

of the few marketing companies in India that create and blend the perfumes.
Ownership pattern:
A family enterprise offering the highest quality and purity in all their products
started by Sri Ranga Rao. The family enterprise is now seeing its third generation
overseeing the business as CEOs, most of who have returned to head the group
companies after management degrees from US universities.
Competitors Information:
ITC- Mangaldeep:
As part of ITC's business strategy of creating multiple drivers of growth in the

FMCG sector, the Company commenced marketing Agarbattis (Incense Sticks)
sourced from small scale and cottage units in 2003. This Business leverages the core
strengths of ITC in nation-wide distribution and marketing, brand building, supply chain
management, manufacture of high quality paperboards and the creation of innovative
packaging solutions to offer Indian consumers high quality Agarbattis. With its
participation in the business, ITC aims to enhance the competitiveness of the small
and medium scale sectors through its complementary R&D based product
development and strengths in trade marketing and distribution.
Mangaldeep Agarbattis are available in a wide range of fragrances like Rose,

Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Anushri and Mogra. New launches
include Fragrance of Temple, Champa and Tarangini in an attractive pouch format.
The pouch format of packaging is increasingly becoming popular. Mangaldeep
has launched three variants – Champa, Tarangini & Malligai in the pouch format
catering to various market needs. The products have received encouraging response
from consumers.
VASU Agarbattis:
VASU Agarbattis journey into the world of agarbattis started way back in 1984,
with just 3 products, in Mysore. Regarded as the cultural capital of Karnataka (India),
the city of magnificent palaces and royal grandeur, the birth place of incense, is well
known for its passion for fragrances, sandal, and handicrafts.
Little wonder that the agarbattis made here are known the world over.
Today, with over 30 brands which have won numerous accolades, VASU Agarbattis
in the various segments are sold in over 200,000 outlets and across the globe.
The organizational vision, and a strong ethos in business practice, is ably managed
by its three partners, R. Krishna, R. Venkatesh and R. Mohan. Who are very much a
part of the mission to create innovative systems, tools and programs giving its
managers a conducive environment for learning, and, its staff motivation to develop
and consolidate its position in the market.
The team is also well geared into the future, with a clear focus to expand its base of
brands, both nationally and internationally, while keeping updated on the latest
technology and being part of the industry development with a strong R&D team.
Moksh Agarbattis:
Company started operations in the year 1996, in Bangalore, India. Moksh is

one of the largest manufacturer and exporter of finest quality of Indian traditional flora
agarbatti and incense sticks selling it all over the world across 50 countries. Moksh‟s
unique fragrances have been extremely appreciated, with the nature-inspired products
gaining huge popularity. Many of the popular incenses and Agarbatti fragrances in
India have come from Moksh‟s Agarbatti, including the largest selling Swarna Champa
brand. They use R&D experts to add new fragrances to our portfolio by innovating
newer fragrances. The incense sticks, Agarbatti brand includes Swarna Champa,
Rose Incense, Jasmine Incense, gold sandal, Swarna mallika, Nag Champa Incense,
Sandalwood Incense, and Herbal etc.
Infrastructural faculties:
It is well equipped with fully finished office with meeting halls, training rooms to
workers are provided with good working conditions like proper ventilation facility,
drinking water facility, good pantry and air conditioners. The equipment’s are also
arranged that the work flows smoothly and according to the requirements of the job.
 As such infrastructure facilities are good.

 An own premise is located in the heart of the Mysore city.
 Separate building for all diversified companies.
 Well-planned five-storied building is being used.
 Transportation facility is provided by the company to the employees.
 The ERP system is adopted in the organization.
Achievements / Awards
 Par Excellence Awards (2009 & 2010) at the “National Convention on Quality
Concepts”
 4 awards in Advertising for Media Strategy, Radio Jingles and Innovation.
 9 Chemexcil awards,
 6 Visvesvaraya Industrial Trade Centre awards for excellence in exports.
 3 Niryat awards from the Federation of Indian Export Organizations.
 Merit awards from the Handicrafts Council at State and National levels.
NR Group wins Quality Circle’s par Excellence Award:
Mysore, 4th January 2010: NR Group, the manufacturer of India's leading

agarbattis brand 'Cycle Pure Agarbattis', has won Par Excellence awards at the
National Convention for Quality Concepts 2010, held in Vishakhapatnam recently. The
awards were given for Quality projects on power conservation and packaging printing
undertaken by NR Group employees for improving efficiency within the organization.
The first team undertook a project on power conservation, aimed at reducing

power wastage by analysing the different areas where wastage was occurring. An
awareness campaign was taken up internally, due to which the team successfully
managed to reduce wastage. The larger impact was formed in the attitude of the
employees.
The second team, from the exports division of NR Group, focused on reducing
the cost and time for printing variant names on packaging. By setting up the printing
process in-house, the time for dispatching the final products was considerably
reduced.
Mr. Arjun Ranga, Managing Partner, NR Group, said, “We are very proud of our
employees and their achievements. NR Group employees, by forming quality circles
or groups, are encouraged to participate in various forums and competitions on the
quality front. As a company, we have understood the need to be highly quality-focused.
Quality control systems give both internal and external audiences the belief that the
organization, its products & services can be trusted.”
NR Group has consistently won Quality awards over the past two years from
Quality Circle Forum of India and the Government of India. The awards won by the
company include - Par Excellence Award from Quality Circle Forum of India (CCQC
2009), Excellence award from Quality Circle Forum of India (NCQC 2009), Chemexcil
for Exports from the Government of India and Excellence in Exports from the
Government of Karnataka, among others.
Work flow model (end to end):
Production process: (Figure: 1)

Finished bamboo sticks sorting of stocks
Raw materials
Preparation of paste
Coloring (if required)
Rolling batties
Blending & Perfuming
Drying
Packing
Dispatch
P G Department of Management Studies & Research centre, PESITM, Shivamogga

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Cluster actors: (Figure: 2)
Forest department raw material supply
Testing
Govt policies, Support inst,
Financial inst, Marketing

Advantage – hand rolled,
Eco-friendly perfumes
Cost & aesthetics
MNCs global competition, Mechanization,
Technology, Infrastructure, HR, etc
R/M suppliers
Stick maker Stick sorter Agarbatti roller
Forest dept bamboo supply
Sorting of agarbattis
Packaging section Packaging industry
Perfume industry
Agarbatti perfumer
Customers Dealer‟s agents/retailers
Transporter

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2.11 Future growth and prospects for the company: Cycle Pure agarbattis are the
market leader in the Indian Market but now other brands are coming to market and
Major revenue is getting from exports and company wants to strong their brand in
Indian market. Introducing innovations and being perceived as the best agarbatti
product provider in the country; and having ability to respond to the ever-changing
demand of the consumers.
CHAPTER: 3

Page 34
3 MCKINSEY’S 7S FRAME WORK WITH SPECIAL REFERENCE TO

ORGANISATION:
3.1 McKinsey’s 7S model:
The 7s Framework of McKinsey is a management model that describes 7 factors to

organize a company in a holistic and effective way. Together these factors determine
the way in which a corporation operates. There are 7 basic dimensions, which
represent the core of managerial activities. These are the „levelers‟, which executes
use to influence complex and large organizations. Obviously, there was a concerted
effort on the part of the originators of the model to coin the managerial variables with
words beginning with the letter S. So as to increase the communications power of the
model. Figure: 3 Source: McKinsey 7-S Framework, from the book „In search of
Excellence‟ by Thomas J Peters and Robert H Waterman
Application of 7s Model: 1. Structure: The organization chart and accompanying

baggage that show who reports to whom and how tasks are both divided and
integrated. Since N.Ranga Rao & Sons is a private ltd company. The structure of the
organization is democratic. Major decision however is taken is at top-level
management of the company.
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Organization Chart: (Figure: 4)
Source: Company Brochure
2. System: Formulation of agarbatti (incense stick) is an ancient art. The finest

ingredients are blended in exact proportions so that the same unique fragrance
bouquet is obtained every time. Traditionally handmade, the batties are rolled by hand
under strict supervision. Quality always has been an integral part of our organization
in all processes during product realization. Quality checks are done at material inward,
in process and finished goods stages through statistically designed sampling plans.
Quality checks at vendor premises daily, is our norm for out-sourced processes. Our
AWARENESS on the importance of quality and introduction of FORMAL methods for
quality control and improvement has been an evolutionary development over 6
decades.
Systems based on ISO 9001: 2008 has been implemented, to provide guidelines for
the formation of Quality Management System.
3. Style:
Area Sales Manager
Sales Executive
Sales of territory
Territory
Sales Representative

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Style is one which top managers can use to bring about organization change. The
aspects of business most emphasized by members of the top management tend to be
given more attention by people down in organization. Reporting relationship may also
convey the style of the organization.
The reasons to support this are as follows:
Whenever important decision are to be made, the whole staff is allowed to

participative in the decision making where by suggestions are sought and if found
appropriate are accepted and implemented. In N.Ranga Rao & Sons instead of
„Boss-Subordinate‟ relationship among the employees of the organization, superior
acts as a guide and facilitator for his subordinates. The top management always
encourages changes in the organization provided they happen to be always ready to
cope with different situation.
4. Staff: Presently there are about 6 in NR Group. Employees are the functional unit
of any organization. The company contributes to the prosperity of the society as whole
by providing equal opportunities to all. The company provides training to get gainful,
high performance employees. 1500 plus employees are working under N.R.Group in
all over India.
5. Skill: The qualified personnel with required skills and competency are recruited and
selected for the required designation. For example: for recruiting and selecting the
manpower required by the Marketing department the criteria would be MBA
(Marketing) and who have the capabilities and competencies to handle the functioning
of work smoothly.
6. Strategy: The strategies being adopted by the company:

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"FRAGRANCE WORLD”, THE EXCLUSIVE RETAIL SHOWROOM: Fragrance

World‟, the exclusive retail showroom of the Mysore based NR Group located on
Dhanwantri road in Mysore city.
Advertisement in a traditional and devotional way like (Bhagawah hai, Devaru
eddare ) Sponsoring Third umpire ship in International cricket matches Building
bus stands in the Mysore city with colorful background of Cycle pure agarbattis posters
7. Shared values: The common feeling among the people in the N.Ranga Rao &
Sons is that they are meeting the demands of the customers and fulfilling the
expectations in the form of productions and its variability. The employee also have
belief that they are giving at the best possible price to milk they procure from farmers.
Value of NR Group: Honesty Discipline Transparency Cleanliness Total
quality Self-reliance Co-operative free politics Respecting others opinions,
emotions, thoughts, and feelings.
4. N.Ranga Rao & Sons - SWOT ANALYSIS:
SWOT analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a business venture. It involves
specifying the objective of the business venture and identifying the internal and
external factors that are favorable and unfavorable to achieving that objective. A
SWOT analysis must first start with defining a desired end state or objective. A SWOT
analysis may be incorporated into the strategic planning model. * Strengths: Attributes
of the person or company that is helpful to achieving the objective(s).

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* Weaknesses: Attributes of the person or company that is harmful to achieving the

objective(s). * Opportunities: External conditions those are helpful to achieving the
objective(s). * Threats: External conditions which could do damage to the objective(s).
Identification of SWOTs is essential because subsequent steps in the process of
planning for achievement of the selected objective may be derived from the SWOT.
Table: 3 STRENGTHS Art of perfuming is well accustomed. Large labor base
Exposure to Export markets No power requirement Aids to poverty elevating
program Has a huge potential to generate employment Recognized under the
handicraft sector Supports many allied activity of handicraft (Bamboo splitting,
Paper tube making etc.) Support of Government departments, NGOs
WEAKNESSES Decrease in raw material availability Lack of mutual trust

Customer awareness is very low amongst low-end producers. Finance is not liberal
since industry involves large working capital. Lack of innovations and experimenting
skills to explore the new users & uses No progress in R&D Laws, acts etc. Poor
living condition at bottom of the network

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OPPORTUNITIES Large export market potential. Scope for innovations and R&D
Domestic market expanding Machine milled, hand rolled batties are having a
competitive edge over machine made agarbattis Free trade regime can provide
better raw materials for better price
THREATS Global competition. Unethical practices at local level. Forest based

raw material supply becoming scarce Mechanization.
5. LEARNING EXPERIENCEE:
This 10 weeks project work was an excellent opportunity to experience the real
business environment and learn skills that would assist the researcher wherever
researcher goes in life. The researcher feels extremely grateful towards N.Ranga Rao
& Sons Pvt Ltd for giving an opportunity to work as an internship trainee. It was
valuable to be immersed in the industry and have the chance to talk to many
professionals at the company. The project work gave the researcher an insight on the
practicality of some of the academic knowledge gained during the first three semesters
of the MBA course. The in-plant training undertaken at N.Ranga Rao & Sons Pvt Ltd
has enabled me to enhance the knowledge and get an insight of the organization and
its managerial functions. The study makes one really think and visualizes how things
happen in an organization. As the study does not focus on only one aspect of
company, there was greater opportunity to visit every work place of the company like
shop floor. Through the shop floor visit, I learnt the entire work flow. These processes
occur through healthy interaction of various departments.
The department studies helped me to understand how a company functions overall.

The humble involvement, information help and support offered by the N.R Group
employees gave a better understanding of their functions, responsibility as well as
what is really expected of them from their respective departments. The managerial
qualities learnt from N.Ranga Rao & Sons are good

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leadership, discipline, hard work, knowledge, communication, motivation, interaction,

cooperation and humanity. Practically meeting them and getting exposed to company
motivates one to become sincere and committed at work like them in future.
Researchers feel it was a great opportunity to undergo In-Plant training at N.Ranga
Rao & Sons Pvt Ltd and Researcher understood how the company till now is fulfilling
requirements by providing the materials required by the concerned departments at
proper time. The support and the hands on experience during 10 weeks in the
organization has become a value addition to my MBA curriculum.
Page 41
PART-B

Page 42
CHAPTER: 1
1. GENERAL INTRODUCTION
The market for incense sticks is very vast and the demand for these incense sticks is
high even in the far-flung rural areas. The incense industry is driven by factors other
than commerce like tradition, superstition and religion…
India has a leadership position in the incense sticks market and fulfills more than half
of the world‟s incense sticks requirements. Export earnings have crossed 220 crore
mark while the domestic market is expected to be well over a 1000 crores. Every year
more than 60 billion sticks are produced and the market is growing at a rate of 7% per
year.
The incense stick market faces a sudden upsurge in demand during the festival
season. Demand from both domestic and international sectors peaks up during
festivals like Dasara and Diwali. Some of the popular fragrances that have captured
the imagination of consumers both in India and abroad include Archanam – Mogra,
Yagyam – Havan, Yogam – Dhoop, Poojanam – Saffron, Dhyanam – Sandal,
Chintanam – Kasturi, and Shantam – Rose.
Today, the incense industry has not only become a major revenue earner for the
Government it has also become a prominent source of employment for women in rural
areas. Presently, the incense industry in India is a cottage industry and the market is
largely unorganized. Only 20% of the market is occupied by organized players while
the rest is controlled by small operators. The government needs to pay urgent attention
to this industry if it wants the industry to retain its leadership position in the industry.
The incense stick industry has also promoted social entrepreneurship in the rural and
semi urban areas as more and more people have acquired the confidence to start their
own businesses. Some reputed Indian corporate have taken the lead in promoting this
trend by training rural women in bamboo cutting, incense rolling, raw incense sorting,
perfuming and packaging of incense sticks. The entry of corporate has helped in
mechanization at each step of the manufacturing process. Earlier rural women used
to cut bamboo with an axe leading to injuries. This process has been done away with
the introduction of bamboo cutting machines.

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CHAPTER: 2
2. RESEARCH DESIGN / METHODOLOGY OF THE STUDY:
Meaning of research has confined to the concept:-

As per author Philip Kotler, Marketing Research is the systematic design collection,
analysis and reporting of data and findings to a specific marketing situation facing the
company.
To meet this objective, the company should know its consumers, their needs, tastes,
preferences and condition of market etc. This information is provided by Market
Research. In this study we confine to reach the product rendered by the Cycle pure
agarbattis to satisfy the consumers.
Rationale behind the study:-
Theoretically whatever we study in management courses can be easily accumulated

and understand only when it is used practically, when theoretically; knowledge is put
into practice, the problems, obstacles or the impediments will come out and suitable
marketing strategies can be implemented to solve it, then there will be a perfection
and experience and clear knowledge about the subject in the mind of the learners.
That is why in every management or career advancement courses, a Practical Training
like simulations, case study, project reporting, working situation are given.
In today‟s competitive world it has become imperative for companies around the world
to keep a track on what consumers wants from the various products offered to him: it
is also necessary for us to keep a tab on the changing needs of the consumers so that
we may align our products accordingly to meet the consumer expectations. The
objective of all business enterprise is to satisfy the needs and wants of the consumers
and thereby to earn profit.
The slogan “caveat emptor” turned as “caveat vendor” because, the producer‟s fate
is decided by the action of the consumer i.e., either by accepting the product or
rejecting it. Under the modern concept of marketing, the producers responsibility is not
ended with production and distribution of goods, he has to satisfy the needs of
consumers by producing and offering the

Page 44
products in the way which a consumer wants. Marketers believe that, “the customer is
the king”. The present marketing environment is customer oriented.
2.1 Research method
It is a master plan, which contains everything on how to start and how to finish
effectively. It‟s a frame work for action. It specifies pattern of framework for controlling
the collection of data accurately and economically and specifies methods and
procedures.
It is the "glue" that holds all of the elements in a research/project together. We often
describe a design using a concise notation that enables us to summarize a complex
design structure efficiently. The Research design constitutes the blue print for the
collection, measurement and analysis of data. It aids the researcher in the allocation
of limited resources by posing crucial choices. The blue print includes experiments,
interviews, observation, and the analysis of records, simulation or combination of
these. Description of research design.
According to Graham “Research Design is the specification of method and procedure

for acquiring the information required for the solution of a specific problem. It provides
scientific framework for conducting some research investigation. The procedure and
plan for collecting and analysis of the information can be outlined once the problem
is formulated and the objectives of the investigation should taken into consideration
the resource and time available for a study.
To Design is to plan. Designing is the process of making decisions before the situation
arises, in which the decision has to be carried out.
Designing is the process of deliberate anticipation towards bringing an expected

situation under control.
If we anticipate before we conduct a research inquiry, the various difficulties that may
have to be encountered in the course of this exercise and decide what to do about
these problems, and then we increase to the extent our chances of rationally
controlling and articulating the research procedure and for forecasting the possibilities
of failure.
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In my research I have used the DESCRIPTIVE RESEARCH DESIGN. Descriptive

research describes the characteristic of a group. This type of research is also a
grouping that includes many particular research methodologies and procedures, such
as observations, surveys, self-reports, and tests since our population size was more
we have used the sample survey research method. We considered a sample which is
the representative of the total population.
2.2 Statement of the problem
This study has been conducted in order to know the “Consumer Satisfaction level
towards CYCLE PURE agarbattis in Mysore city”. It is conducted to find out factors
which influence to buy Cycle Pure Agarbattis. Increased awareness likes and dislikes
of consumers become loyal to a particular brand and some others. What issues are
pertaining to Consumer Satisfaction? All these issues are addressed by this study.
Therefore this study is conducted to determine the Consumer Satisfaction.
2.3 Need of the study
This project report is also concerned with such marketing research. The report deals
with “A Study on Consumer Satisfaction Level towards Cycle Pure Agarbattis in
Mysore city”, attempts had made to analyze marketing situation and marketing
problems confronted and also consumer survey has been undertaken for analyzing
their opinions towards Cycle Pure Agarbattis. Suggestions have been given for
adopting suitable marketing programs ensuring fair return on the capital invested on
one hand and consumer satisfaction on other hand.
To identify the needs of the consumer in agarbattis. To study the consumer

satisfaction level towards Cycle Pure Agarbattis. Find out the consumer‟s opinion
in different agarbatti attributes.
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2.4 Objectives of the study
For the purpose of carrying out any activity the primary requirement is to fix up the
objectives.
The objectives of the study are as follows:
To understand the Agarbatti market. To understand and analyze the consumer

agarbatti usage pattern. To understand the needs of consumers while searching
agarbatti products. To understand how respondent will react about their using
agarbatti product. To know and understand the attributes which are attracting the
consumers in agarbattis. To know the opinions of respondents towards Cycle Pure
Agarbattis. To understand impact of local brands. To know the awareness about
premium agarbattis.
2.5 Scope of study This study is on “Consumer Satisfaction Level towards Cycle
Pure agarbattis in Mysore city”. This report attempts to bring about details regarding
history, fundamental concepts and types of products. This study also attempts to look
into the profile of N.Ranga Rao & Sons Company limited, Consumer opinion about
Cycle Pure agarbattis. In this research only some of the leading agarbatti companies
in Mysore city have been taken into consideration because the competition lies in
between these leading companies and hence it will be easy for me to study their
opinion towards agarbattis
2.6 Operational Definition & Concepts Marketing: Marketing is the process by which
companies determine what products or service may be of interest to consumers, and
the strategy to use in sales, communications and business development. It is an
integrated process through which companies create value for consumers and build
strong customer relationship in order to capture value from customer in return.

Page 47
Consumer: A consumer is a person or group of people that are the final users of
products and or services generated within a social system. A consumer may be a
person or group, such as a household. The concept of a consumer may vary
significantly by context. Attitude: An attitude is a hypothetical construct that
represents an individual‟s degree of like or dislike for an item. Attitudes are generally
positive or negative views of a person, place, thing, or event- this is often referred to
as the attitude object. Consumer satisfaction: Everyone knows what satisfaction is,
until asked to give a definition. Then, it seems, nobody knows… This quote of
consumer satisfaction, expresses the challenge of defining this most basic of
consumer concepts. Satisfaction is consumers, fulfillment response. It is a judgment
that a product of service feature, of the product or service itself, provides a pleasurable
level of consumption related fulfillment. In less technical terms, we translate this
definition to mean that satisfaction is the consumer evaluation of a product or service
in terms of whether that product or service met their needs and expectations. Failure
to meet needs and expectations is assumed to result in dissatisfaction with the product
or service. Consumer satisfaction will be influenced by specific product or service
features and by perceptions of the quality. Satisfaction will also be influenced by
consumer‟s emotional responses, their attributes and their perceptions of equity. For
consumer satisfaction to be high, promises and expectations must be met.
Consumers who have an issue dealt with to their satisfaction have a 95% likelihood of
repurchasing and telling 5 people about their experience; if they don‟t complain (as
96% of people do) they will tell at least 10 other people about their problem. The
occurrence of problem can cause a 15-to-30-point drop in high satisfaction Responses
and in loyalty indications. This puts revenue at risk to an average tune of 11%.
Therefore, some techniques to maintain and improve satisfaction must be considered.
An effective complaint handling system is an excellent defensive tool. Ongoing
surveys to measure consumer satisfaction, loyalty, and capture the voice if the
consumer is also essential. Consumer Satisfaction = Performance / Expectation

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Consumer Satisfaction = Benefits / Conceived
Product and service features: Consumer satisfaction with a product or service is

influenced by the Consumer‟s evaluation of product and services features. In
conducting satisfaction studies, most firms will determine through some means what
the important features and attributes are for their service and they measure
perceptions of those features as well as overall satisfaction.
Consumer Emotions: Consumer emotions can also affect their perceptions of

satisfaction with a product or services. These emotions can be stable, pre-existing
emotions. Specific emotions may also be included by the consumption experience
itself, influencing a consumer‟s satisfaction with the products or services.
Perception of equity or fairness: Consumer satisfaction is also influenced by the
perception of equity and fairness. Consumer asks themselves: “Have I been treated
fairly compared with other consumers?” “Did other consumers get better treatment,
better quality Services?” “Did I pay a fair price for the product?” “Was I treated well in
exchange for what I paid and the effort I expended?” Notions of fairness are central to
consumers. Perception of satisfaction with the Products and Services.
Consumer Satisfaction Highlights Today in the consumer driven economy, all firms
are engaged in a quick race to attract consumers and build a long term relationship
with their loyal Consumers. The key to consumer loyalty is through “Consumer
Satisfaction”. A satisfied consumer will act as a spokesperson of the company‟s
product, and bring in more buyers. There is also a high correlation between loyalty
and profitability.

Page 49
There is the Pareto principal or the 80/20 rule; it says that 80% of one thing comes
from 20% of another. That is to say a small percentage of loyal consumers will lend a
large weight to the company‟s sales. Therefore marketers have to ensure Consumer
value satisfaction. For this they have to ensure: Relationships are built to offer lifetime
consumer value to enable the consumer to experience “value satisfaction”.
Communications are used to convey to consumer to experience that goes on using a
“value” added product. The efforts of the marketers in trying to understand buying
motives, organizing buyer behavior and suitable promotional strategy to suit the
consumer behavior is to ensure “CONSUMER SATISFACTION”.
2.7 Limitations of the study All studies have their own parameter and it is difficult to
make a study on assumptions. Hence, complete accurate information through the
survey. The following are some limitations.
Primary data cannot be obtained rapidly. Availability of time for study was less.
The study is limited to Mysore city. Respondents sometimes refuse to give
information. Chance of giving wrong information. Respondents may not give clear
cut data. The sample size is restricted to 150 only because of time constraint. The
study has to be completed within a short span of time that was available. Data was
collected only through direct personal interview and filling the questionnaire that was
completely an individual view points.

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CHAPTER: 3
METHODOLOGY OF DATA COLLECTION:
Methodology:
After having identified the problem as the “Consumer Satisfaction towards Cycle Pure
Agarbattis in Mysore city” it was decided to conduct a descriptive research.
Adequate suitable secondary data was collected for the study and was decided to take
a survey to conduct for the study.
3.1 Sources of data:
A study is successfully completed when the data available is appropriate and

adequate.
Primary Data
Primary data refers to the data that is fresh and collected for the first time. It refers to
the data collected by the researcher himself and original in character.
The primary data were derived from the answers respondents gave in the structured
questionnaire prepared by the researcher. The primary data is collected from
Consumers through questionnaire. So, the researcher visited around 150 consumers
in Mysore City. The questionnaires have contained 18 questions with both open ended
and closed ended questions. The respondents were asked to give their opinion
regarding the concerned topics and respondents have given valuable information.
Primary Data are original source, which are collected directly from the respondents.
This information is collected through questionnaire, personal interview and through
observation.
Secondary Data
The Secondary data, on the other hand, is those which have already been collected
by someone else and which have already been passed through statistical processes.
Secondary data is the information that already exists. For collecting secondary data
researcher used internet,

Page 51
magazines, newspapers and various books. Researcher also consulted faculties for
getting valuable information.
These sources consist of readily available information and already complied statistical
statement whose data may be used by the researchers for their study.
The secondary sources include Annual reports, Journals, Articles as well as
magazines and manuals.
Descriptive Research
Descriptive Research is also called Statistical Research. The main goal of this type
of research is to describe the data and characteristics about what is being studied.
The idea behind this type of research is to study frequencies, averages, and other
statistical calculations. Although this research is highly accurate, it does not gather the
cause behind a situation. Descriptive Research is mainly done when a researcher
wants to gain a better understanding of a topic for example, a frozen ready meals
company learns that there is a growing demand for fresh ready meals but doesn‟t
know how much about the area of fresh food and so has to carry out research in order
to gain a better understanding. It is quantitative and uses surveys and panels and also
the use of probability sampling.
This type of research is also a grouping that includes many particular research
methodologies and procedures, such as observations, surveys, self-report, and tests.
The four parameters of research will help us understand how descriptive research in
general is similar to, and different from, other types of research.
3.2 Sampling Plan:
Population: Consumers in Mysore city. Sample Size: 150 consumers in Mysore.

Sampling Method: Non probability, Convenience Sampling Method.

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This study follows non probability sampling method in which units of the sample are
selected on the basis of convenience. In non-probability sampling this study followed
convenience sampling, which refers to sampling by obtaining units or people who are
most conveniently available.
3.3 Field Work:
The field work was done in this project by using a well-structured questionnaire. The
questionnaire was filled in personally by some of the respondents whereas some of
the questionnaires were filled by researcher himself by asking questions to
respondents. The survey was conducted in Mysore City. The survey questionnaires
were coded and then tabulated. The analysis and interpretation was given based on
the results of the tabulation.
3.4 Tools and Techniques of Data Collection:
Research Instrument The tools and instruments used are questionnaire for collecting
primary data and MSExcel to analysis the data. For this study, questionnaire was used
as the research instrument to know the satisfaction level of consumers. A structured
questionnaire was distributed to the selected respondents. The questionnaire given to
the respondents aimed to know opinion about product and the questionnaire was
structured in such a way that respondents were able to answer it easily.
Data Analysis Procedure:
Percentage analysis method
The statistical tool used in this research is
PERCENTAGE ANALYSIS = NUMBER OF RESPONDENTS * 100
TOTAL NUMBER OF RESPONDENT
Data Analysis and Presentation Percentage analysis is a useful tool. Percentage

refers to a special kind of ratio. Percentage is in making comparison between two or
more series data. Percentages are used to

Page 53
describe relationships. This method is used for the analysis of the data this analysis
has given a clear picture of the research study it means how many of the respondents
are involved in the interview and what type of opinion they are having is based on the
type of the analysis and the interpretation is mainly based on the percentage analysis.
The present research study, to estimate the research in percentage, percentage
analysis, is used for analysis of the data
Data Analysis Procedure:
Likert’s Questionnaire Values and Interpretation: The Likert survey has been selected.
Questions in the questionnaire have enabled the respondents to answer the survey
easily. In addition, this research instrument allowed the researcher to carry out the
quantitative approach effectively with the use of statistics for data interpretation. Once
all the answers of the respondents have been gathered, the researcher computed the
weighted mean value for each survey item. The mean was then compared to the Likert
scale to interpret the results. The weighted mean was used in order to obtain the
average values that represented the sample‟s response to each question in the
survey. This helped the researcher identify the general response of the participants to
the question given. Data Analysis and Presentation In order to analyze the data
gathered from the survey, the weighted mean for each question item was computed.
Weighted mean is the average wherein every quantity to be averaged has a
corresponding weight. These weights represent the significance of each quantity to
the average. To compute for the weighted mean, each value must be multiplied by its
weight. Products should then be added to obtain the total value. The total weight
should also be
1 Strongly Agree
2 Agree
3 Neither Agree Nor Disagree
4 Disagree
5 Strongly Disagree

Page 54
computed by adding all the weights. The total value is then divided by the total weight.
Statistically, the weighted mean is calculated using the following formula:
Weighted mean = (Y1 x 5) + (Y2 x 4) + (Y3 x 3) + (Y4 x 2) + (Y5 x 1)
----------------------------------------------------------- 100 Where Y1, Y2,
Y3, Y4, Y5 are the number of respondents that selected the given Likert choices The
computed mean was then compared to the scale for interpretation as given below:
Software used for data analysis:
The software used in this research study is
Microsoft word. Microsoft excel
Statistical techniques used:
Pie chart Bar diagram Doughnut diagram
Primary data in the present research plays a very vital role; conclusion and
recommendation in this research are completely based on the data analysis and
interpretation. The primary data collected from the respondents has been classified
and tabulated using statistical tools. Analysis is purely based on classified and
tabulated data. Analysis in the form of theory has been interpreted just below the table
since the researcher is completely aware of the limitations of advance statistical tools.
Researcher has simply analyzed the primary data with the help of percentile analysis
and other simple methods of statistics. The analyzed data have been represented
diagrammatically or graphically wherever required. Bar charts, Pie diagram, data
classification, tabulation, analysis and interpretation have been followed by summary
of findings.

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CHAPTER: 4
ANALYSIS & INTERPRETATION OF DATA
Table 5: Gender of the Respondents
Source: Primary data Graph: 1
Analysis: From the survey data it is observed that 62.67% of the male and followed
37.33% respondents are female. Interpretation: Above analysis shows that Male
consumers are decision makers while purchasing the agarbatti products.
Respondent Respondent % 2 Female 56 37.23% 1 Male 94 62.67%
94
62.67%
56 37.23%
20
40
60
80
100
120
140
160
Gender of the Respondents
SL. no Gender Respondent Respondent %
1 Male 94 62.67%
2 Female 56 37.23%

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Table 6: Age group of the Respondents SL. no Age group Respondent Respondent
% 1 Below 25 13 8.67% 2 25-35 38 25.33% 3 36-45 28 18.67% 4 46-55 36 24% 5 55
& Above 35 23.33% Source: Primary data Graph: 2
Analysis: Above table shown that out of 150 respondents 8.67% of respondents are
falling under age group Below 25 years, 25.33% of respondents are under 25-35
years, 18.67% of respondents are under 36-45 years, 24% of respondents are under
46-55 years and 23.33% of respondents are above 55 years.
13
38
28
36 35
8.67% 25.33% 18.67% 24% 23.33%
Below 25 25-35 36-45 46-55 55 & Above
12345
Age group of the Respondents
Respondent Respondent %

Page 57
Interpretation: Except below 25years age group respondents, remaining all age group
respondents are shows equal response in buying agarbatti products.
Table 7: Occupation of the Respondents
Sl No Occupation Respondent Respondent %
1 Business/Entrepreneur 32 21.33%
2 Government employee 28 18.67%
3 Employee in private organization 26 17.33%
4 Retired person 20 13.33%
5 Housewife 42 28%
6 Other 2 1.34% Source: Primary data Graph: 3
in Business/ Entrepreneur, 18.67% of respondents are Government employees,
17.33% of
21%
19%
17%
14%
28%
1%
Occupation of the Respondents
1 Business/Entrepreneur
2 Government employee
3 Employee in private organization
4 Retired person
5 Housewife
6 Other
Page 58
respondents Employee in private organization, 13.33% of respondents are Retired

persons, 28% of respondents are Housewife‟s, and 1.34% of respondents are in other
occupation. Interpretation: The customer is different and consumer is different. At the
time of purchasing male respondents are high and at the time of using female
respondents that to housewives are high. Consumers means actually who uses the
product.
Table 8: Educational qualification of the Respondents Sl No Education Respondent

Respondent % 1 Post Graduate 25 16.66% 2 Under Graduate 59 39.34% 3 PUC 20
13.33% 4 SSLC 40 26.67% 5 Below SSLC 6 4% Source: Primary data Graph: 4
17%
39% 13%
27%
4%
Educational qualification of the Respondents
1 Post Graduate
2 Under Graduate
3 PUC
4 SSLC
5 Below SSLC
Page 59
Post Graduates, 39.34% of respondents are Under Graduates, 13.33% of respondents
are PUC, 26.67% of respondents are SSLC, and 4% of respondents are Below SSLC.
Interpretation: The major portion user qualification is Under Graduate. And by using
agarbatti the education qualification does not matter.
Table 9: Annual income of the Respondents Sl No Annual income Respondent

Respondent % 1 Below 10000 Rs 3 2% 2 10000Rs – 25000Rs 7 4.67% 3 25000Rs –
50000Rs 6 4% 4 50000Rs – 75000Rs 12 8% 5 75000Rs – 100000Rs 13 8.67% 6
100000Rs – 150000Rs 12 8% 7 150000Rs – 200000Rs 15 10% 8 200000Rs & above
82 54.66% Source: Primary data Graph: 5
Analysis: Above table shown that out of 150 respondents, 2% of respondents are
falling under below 10000Rs, 4.67% of respondents are under 10000Rs – 25000Rs,
4% of respondents are under 25000Rs – 50000Rs, 8% of respondents are under
50000Rs – 75000Rs, 8.67% of
2%
4.67%
4%
8% 8.67%
8%
10%
54.66%
0 20 40 60 80 100
Below 10000 Rs
10000Rs – 25000Rs
25000Rs – 50000Rs
50000Rs – 75000Rs
75000Rs – 100000Rs
100000Rs – 150000Rs
150000Rs – 200000Rs
200000Rs & above
12345678
Annual income of the Respondents
Respondent
Respondent %

Page 60
respondents are under 75000Rs – 100000Rs, 8% of respondents are under 100000Rs

– 150000Rs, 10% of respondents are under 150000Rs – 200000Rs, and 54.66% of
respondents are under 200000Rs & above income level. Interpretation: When
purchasing the agarbatti product the annual income of the respondents plays a major
role. Depending upon the annual income the monthly amount spent on agarbatti will
be decided by the consumers and major portion occupied by 200000Rs and above
income consumers.
Table 10: Festival celebrated by the Respondents Sl No Festivals Respondent

Respondent % 1 Diwali and Ganesh Pooja 146 97.33% 2 Id-Ul-Fitr - 0% 3 Christmas
4 2.67% 4 Other - 0% Source: Primary data Graph: 6 In this question Diwali and
Ganesh Pooja is considered as 1 and that is Hindu, Id-Ul-Fitr is considered as 2 and
that is Muslim, and Christmas is considered as 3 and that is Christian.
97.33%
0%
2.67%
0%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 120.00%
146
Diwali and Ganesh PoojaId-Ul-FitrChristmasOther
1234
Festival celebrated by the Respondents
Respondent %

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Analysis: Above table shown that out of 150 respondents, 97.33% of respondents are
Hindu, 2.67% of respondents are Christians. Interpretation: From the above analysis
the major consumer category will come under Hindu religion and few percentage of
Christians are also using agarbattis.
Table 11: Purpose of usage of agarbattis by the Respondents
Purpose
Rating
Agarbatti Number of Respondents
Weighted Average Religious purpose 1 15 15 Fragrance purpose 2 17 34 Part of

Pooja 3 118 354 Total 150 403 Source: Primary data
Weighted Average 2.68
Graph: 7
0 100 200 300 400 500
15
17
118
150
2.68
15
34
354
403
Purpose of usage of agarbattis by the Respondents
Agarbatti Weighted Average
Rating
Purpose

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used for Religious purpose, 1.33% of respondents are used for Fragrance purpose,
and 78.67% of respondents are used for Part of Pooja. Interpretation: From the
analysis the major portion of consumers using agarbattis for Part of Pooja when
compare to other purposes like Religious purpose or Fragrance purpose.
Table 12: The total amount spent on agarbatti in a month by Respondents Sl No

Amount Respondent Respondent % 1 10 Rs – 20Rs 6 4% 2 20Rs – 30Rs 36 24% 3
30Rs – 50Rs 45 30% 4 50Rs – 75Rs 9 6% 5 75Rs – 100Rs 22 14.67% 6 100Rs and
above 32 21.33% Source: Primary data Graph: 8
4%
24%
30%
6%
15%
21%
4%
24%
30%
6%
15%
21%
The total amount spent on agarbatti in a month by Respondents
1 10 Rs – 20Rs
2 20Rs – 30Rs
3 30Rs – 50Rs
4 50Rs – 75Rs
5 75Rs – 100Rs
6 100Rs and above

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spent 10 Rs – 20Rs, 24% of respondents are spent 20Rs – 30Rs, 30% of respondents
are spent 30Rs – 50Rs , 6% of respondents are spent 50Rs – 75Rs, 14.67% of
respondents are spent 75Rs – 100Rs, and 21.33% of respondents are spent 100Rs
and above. Interpretation: From the above analysis the major portion of consumers
will spent 20-30Rs or 30-50Rs for agarbatti in a month and some consumers will spent
100Rs and above in a month .
Table 13: The attributes of Respondents is looking in agarbattis Sl No Attributes

Respondent Respondent % 1 Price 6 4% 2 Good quality 69 46% 3 Fragrance 68
45.33% 4 Easy availability 5 3.33% 5 Good packaging 2 1.34% Source: Primary data
Graph: 9
4%
46% 46%
3%
1%
The attributes of Respondents is looking in agarbattis
1 Price
2 Good quality
3 Fragrance
4 Easy availability
5 Good packaging

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looking for Price, 46% of respondents are looking for Good quality , 45.33% of
respondents are looking for Fragrance, 3.33% of respondents are looking for Easy
availability, and 1.34% of respondents are looking for Good packaging. Interpretation:
The above table tells the consumers will look for Quality and Fragrance equally and
rest attributes are not much impact able.
Table 14: The agarbatti product Respondents are used daily Sl No Products
Respondent Respondent % 1 Moksh 13 8.67% 2 Vasu 46 30.67% 3 Ashika 1 0.67%
4 Cycle Pure 72 48% 5 Gopika 2 1.33% 6 Ullas 3 2% 7 Mangaldeep 2 1.33% 8 Padmini
1 0.67% 9 Shantala 2 1.33% 10 Jettappa 2 1.33% 11 Other 6 4% Source: Primary
data Graph: 10

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using Moksh, 30.67% of respondents are using Vasu, 0.67% of respondents are under
using Ashika, 48% of respondents are using Cycle Pure, 1.33% of respondents are
under using Gopika, 2% of respondents are using Ullas, 1.33% of respondents are
using Mangaldeep, 0.67% of respondents are using Padmini, 1.33% of respondents
are under using Shantala, 1.33% of respondents are using Jettappa, and 4% of
respondents are using Other Brands. Interpretation: From the above analysis easily
tell Cycle Pure Agarbattis are the Market Leader in Mysore Market and Major
Competitor is Vasu Agarbattis and other brands are not a problem to Cycle Pure
Agarbattis.
Table 15: The reason for using the above product by Respondents. Sl No Attributes
Respondent Respondent % 1 Price 6 4% 2 Good quality 65 43.33% 3 Fragrance 72
48% 4 Easy availability 5 3.33% 5 Good packaging 2 1.34% Source: Primary data
Graph: 11
9%
31%
1%
48%
1% 2% 1%
1% 1%
1%
4%
The agarbatti product Respondents are used daily
1 Moksh
2 Vasu
3 Ashika
4 Cycle Pure
5 Gopika
6 Ullas
7 Mangaldeep
8 Padmini
9 Shantala
10 Jettappa

Page 66
looking for Price, 43.33% of respondents are looking for Good quality , 48% of
respondents are looking for Fragrance, 3.33% of respondents are looking for Easy
availability, and 1.34% of respondents are looking for Good packaging. Interpretation:
While purchasing the agarbatti product consumer only wants a Good Quality and
Fragrance. Because the Indian consumers will not worry on price when it comes to
their religious purpose. Table 16: The purchase point of agarbatti product by
Respondents Sl No Attributes Respondent Respondent % 1 Dealers point 4 2.66% 2
Retail point 118 78.67% 3 Retail super market 16 10.66% 4 Company outlet 5 3.34%
5 Pan shop 3 2% 6 Pooja outlet 3 2% 7 Other 1 0.67% Source: Primary data Graph:
12
20
40
60
80 1 Price
2 Good quality
3 Fragrance4 Easy availability
5 Good packaging
The reason for using the above product by Respondents
Respondent
Respondent %

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purchasing from Dealers point, 78.67% of respondents are purchasing from Retail
point, 10.66% of respondents are purchasing from Retail super market, 3.34% of
respondents are purchasing from Company outlet, 2% of respondents are purchasing
from Pan shop and 2% of respondents are purchasing from Pooja outlet and 0.67% of
respondents are purchasing from Other source. Interpretation: The major part of
consumers will prefer Retail outlet to purchase the agarbatti product. Because it‟s near
to consumer home or credit facility by retailer, some of the factor will influence the
consumers to purchase in Retail outlet. And new trend of Retail Super Market is
growing purchase point.
Table 17: The usage of Cycle Pure agarbatti by Respondents
118
16
2.66%
78.67%
10.66%
3.34%
2%
2%
0.67%
0 20 40 60 80 100 120 140
Dealers point
Retail point
Retail super market
Company outlet
Pan shop
Pooja outlet
Other
1234567
The purchase point of agarbatti product by Respondents
Respondent %
Respondent
SL. no Usage Respondent Respondent % 1 Yes 138 92% 2 No 12 8%

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used Cycle Pure agarbattis, 8% of respondents are not used Cycle Pure agarbattis.
Interpretation: From the survey all the consumers are know about the Cycle Pure
agarbattis but only few consumers are not used because they are brand loyal to
compeititor company and remaining consumers are used Cycle Pure Agarbattis.
Table 18: From how many years Respondents are using Cycle Pure agarbattis Sl No
Years Respondent Respondent % 1 1 – 12 Months 59 39.33% 2 1 – 3 Years 33 22%
3 3 – 5 Years 13 8.67% 4 5 Years and above 33 22% 5 Not used 12 8% Source:
Primary data
Graph: 14
Respondent Respondent % 1 Yes 138 92% 2 No 12 8%
138
92%
12 8%
0 20 40 60 80 100 120 140 160 Axis Title
The usage of Cycle Pure agarbatti by Respondents

Page 69
using from 1 – 12 Months, 22% of respondents are using from 1 – 3 Years, 8.67% of
respondents are using from 3 – 5 Years , 22% of respondents are using from 5 Years
and above , and 8% of respondents are not used. Interpretation: The consumers who
are using from past 5years and above and 3-5years are brand loyal to Cycle Pure
agarbattis and the consumers using from last 1-3years are shifted from other brands
and the consumers who are using from 1-12months are frequently changing the
brands.
Table 19: Ranking given by the Respondents for different attributes of Cycle Pure
Agarbattis
Particulars Ranking
Weighted Average Strongly Agree 5 56 280 Agree 4 47 188 Neither Agree Nor
Disagree 3 25 75
1 1 – 12 Months 59, 39.33%
2 1 – 3 Years 33, 22%
3 3 – 5 Years 13, 8.67%
4 5 Years and above 33, 22%
5 Not used 12, 8%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
0123456
From how many years Respondents are using Cycle Pure agarbattis
Respondent %
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Disagree 2 10 20 Strongly Disagree 1 12 12 Total 150 575 Source: Primary data
Weighted Average 3.833 Graph: 15
ranked Strongly Agree, 31.33% of respondents are ranked Agree , 16.67% of
respondents are ranked Neither agree nor disagree , 6.67% of respondents are
ranked Disagree , and 8% of respondents are ranked Strongly disagree.
Interpretation: Majority of the consumers are strongly agreed for Cycle Pure
Agarbattis. Because they regularly using the brand. Some consumers who are shifted
from other brand are agree with Cycle Pure Agarbattis. Some of consumers are Price
sensitive‟s those are falls under neither agree nor disagree. Few consumers are
disagree because they are only one or two times used the Cycle Pure Agarbattis. And
those consumers are not used Cycle Pure Agarbattis are strongly disagree with Cycle
Pure Agarbattis.
Table 20: The product of Cycle Pure agarbattis Respondents are using
56 47
25 10 12
150
3.833
280
188
75 20 12
575
12345678
0 100 200 300 400 500 600 700
Ranking given by the Respondents for different attributes of Cycle Pure Agarbattis
Particulars Ranking
Agarbatti Number of Respondents Agarbatti Weighted Average

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Sl No Attributes Respondent Respondent % 1 3 in 1 105 70% 2 All in 1 8 5.33% 3

Moods 8 5.33% 4 Natya kesari 10 6.67% 5 Lia 15 10% 6 Rhythm 3 2% 7 Woods 1
0.67% 8 Other - - Source: Primary data Graph: 16
using 3 in 1, 5.33% of respondents are using All in 1, 5.33% of respondents are using
Moods, 6.67% of respondents are using Natya kesari, 10% of respondents are using
Lia, 2% of respondents are using Rhythm, 0.67% of respondents are using Woods.
Interpretation: From the survey most of the consumers are using 3in1 brand of
agarbattis, because of the best cost and quality product. And Lia is one more brand
most of the consumers will prefer. Table 21: The sources helped to Respondents to
know about Cycle Pure agarbattis. Sl No Sources Respondent Respondent % 1
Friends 17 11.33% 2 Newspaper 3 2%
70%
5%
5%
7% 10% 2% 1%
The product of Cycle Pure agarbattis Respondents are using
1 3 in 1
2 All in 1
3 Moods
4 Natya kesari
5 Lia
6 Rhythm

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3 TV 52 34.67% 4 FM - 0% 5 Tried and used 55 36.67% 6 Market 8 5.33% 7 Retailer

preference 3 2% 8 Not used 12 8% Source: Primary data Graph: 17
know from Friends, 2% of respondents are know from Newspaper , 34.67% of
respondents are know from TV, 36.67% of respondents are Tried and used , 5.33% of
respondents are know from Markets, 2% of respondents are know by Retailer
preference, and 8% of respondents are not used. Interpretation: The word of mouth
advertisement is very strong in Cycle Pure agarbattis. TV ads are positioned in the
minds of consumers and major portion of consumers once tried with Cycle Pure
Agarbattis and they are satisfied with the brand and using the brand. And Retailer
preference.
Table 22: The overall grade for Cycle Pure agarbatti by Respondents. Sl No Grade
Respondent Respondent % 1 Excellent 36 24%
0 10 20 30 40 50 60
Friends Newspaper TV FM Tried and used Market Retailer preference Not used
12345678
17
52
55
12
11.33% 2%
34.67%
0%
36.67%
5.33%
2%
8%
The sources helped to Respondents to know about Cycle Pure agarbattis
Respondent %
Respondent

Page 73
2 Very good 52 34.66% 3 Good 46 30.67% 4 Average 4 2.67% 5 Poor ( Not used )
12 8% Source: Primary data Graph: 18
Graded Excellent, 34.66% of respondents are Graded Very good, 30.67% of
respondents are Graded Good, 2.67% of respondents are Graded Average, and 8%
of respondents are Graded Poor. Interpretation: From the survey the many consumers
are saying Cycle Pure agarbattis are Excellent, very good. Good. Only few consumers
who are just shifted to Cycle Pure agarbattis from other brand are saying average.
And those consumers who are not used Cycle Pure agarbattis are saying poor.
24%
34.66%
30.67%
2.67%
8%
-0.1
-0.05
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0123456
Axis Title
The overall grade for Cycle Pure agarbatti by Respondents
Grade
Respondent %

Page 74
Table 23: The awareness about premium agarbattis by Respondents.

aware about Premium agarbattis, 88% of respondents are not aware about Premium
agarbattis. Interpretation: From the survey only little number of consumers is aware
about the premium agarbattis. Large numbers of consumer is don‟t know about
premium agarbattis.
Respondent, 18
Respondent %, 12%
Respondent, 132
Respondent %, 88%
0 0.5 1 1.5 2 2.5
The awareness about premium agarbattis by Respondents.
1 Yes 2 No
SL. no Awareness Respondent Respondent % 1 Yes 18 12% 2 No 132 88%

Page 75
Table 24: The attributes is looking in premium agarbattis by Respondents Sl No
Attributes Respondent Respondent % 1 Price 6 33.33% 2 Good quality 4 22.23% 3
Fragrance 8 44.44% 4 Easy availability - 0% 5 Good packaging - 0% Source: Primary
data Graph: 20

looking for Price, 22.23% of respondents are looking for Good quality, and 44.44% of
respondents are looking for Fragrance. Interpretation: The consumers who know
about premium agarbattis are looking for Fragrance attribute in the agarbatti product
and the same time looking for Good Quality and Price also.
648-
Price
Good quality
Fragrance
Easy availability
Good packaging 1 2 3 4 5 Respondent % 33.33% 22.23% 44.44% 0% 0%
33.33%
22.23%
44.44%
0% 0%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00%
50.00%
Axis Title
The attributes is looking in premium agarbattis by Respondents

Page 76
CHAPTER: 5
MAJOR FINDINGS, SUGGESTIONS & CONCLUSIONS:
Findings:
1) The Cycle Pure is the market leader in Mysore market & major competitor is Vasu
agarbatti. 2) We came to know that, the consumers who are earning 200000 and
above per year they prefer for the Cycle pure Brand agarbatti. 3) Hindu consumers
are preferring agarbatti for their Part of Pooja. 4) Many Christian religious people will
also use agarbatti for fragrance purpose. 5) The agarbatti‟s are essential for
consumers at the time of Pooja, so they will not think about the price because Indian
consumers will give high value to their religious aspects so price is not a matter to
them. 6) The consumer only wants good quality and fragrance of agarbatti. 7) Many
consumers are brand loyal for Cycle Pure agarbatti and also for Vasu agarbatti and
they don‟t want to change their brands. 8) The major parts of consumers are buying
Cycle Pure Brand in the retail outlet therefore retailer plays an important role. 9) Many
of the consumers are using Cycle Pure agarbatti from past 1 year they are just shifted
from other brand and many of them are using from past 5 years and they are brand
loyal to Cycle Pure agarbatti‟s. 10) The fast moving Cycle Pure brand is 3 in 1 and its
cost is 10Rs for 30 Gms and 12Rs for 35gms. Therefore company is using best cost
provider strategy here. 11) On the basis of survey 34.67% of consumers are
influenced by TV advertisement and 36.67% of consumers are tried once and using
now. Word of mouth about Cycle pure brand is Very good and rest influencing sources
is not accurate. 12) Only 12% of consumers are known about premium agarbattis.
Page 77
Recommendations &Suggestions: 1) Advertising can be done in all mediums like TV,

Radio, and Magazines. .etc. . . . . On the whole effective advertising in the media is
necessary. The advertisement should develop a purchase intension in the minds of
the viewers. 2) To make the buyers more loyal towards the brand, give more discounts
and offers have to be provided for e.g.: if u can give a coupon inside the pack of
Agarbatti, if ten coupons are collected one pack can be given free or any small gifts
can be given. Such offers may develop a brand loyalty towards Cycle Pure. 3) Product
proliferation: introduce the products with lots of variety, this will give the buyer more
choice for e.g.: Lia, Bansuri, Rhythm etc… 4) Offer sample packs to all outlets so that
the product gains awareness. 5) Sample packs can also be given with some local
magazines which are being sold. 6) The sticks must be more thick and The chemicals
used in incense stick will not attach to the consumer hands 7) Many competitors are
providing 1Rs and 2Rs packets with 4 or 6 sticks for a day use therefore company can
grab that opportunity. 8) Company should give more important on quality because
some of the incense sticks will not burn fully and in the middle itself it will off so
company has improve on quality. 9) Increase the quantity of agarbatti packets of 10Rs
and 12Rs.
Page 78
CONCLUSION
The research on “Consumer Satisfaction Level towards Cycle Pure Agarbattis” was
conducted as a part of the MBA course. During the research the respondent‟s positive
response helped me to do the research effectively. The research work helped me to
give an insight on Consumer Satisfaction on Cycle Pure Agarbattis in Mysore city.
By the survey it is found that Cycle Pure agarbattis are the market leaders in Mysore
city. And the local brands now in the introduction stage they are giving 100sticks for
20Rs that will be a problem to the company. But company has huge number of loyal
consumers. The major competitor is Vasu agarbattis. Retailer preference at the time
of selling a agarbatti product is plays a very important role because 78.67% of
consumers are buying from the retail point. And the majority of the consumers only
looking at Good quality and Fragrance.
It was found that Cycle Pure agarbattis doing well in the market and have to continue
the same quality of product to consumers.
Page 79
ANNEXURE
1. QUESTIONNAIRE

Page 80
Questionnaire
Dear Sir/Madam
I am pleased to introduce myself as KARTHIKKUMAR.B.A a student pursuing MBA
at P.G. Department of Management Studies & Research Centre, PESITM,
Shivamogga have undertaken a project on “CONSUMER SURVEY ON CYCLE PURE
AGARBATTIS” in MYSORE. This research has been undertaken as a part of MBA
curriculum of Visvesvaraya Technological University, Belgaum. Hence, I request you
to provide complete information. I assure you that the information provided by you will
be kept highly confidential and used only for academic purpose.
Thanking you
KARTHIKKUMAR.B.A
( IV SEM, MBA )
Name & Address of Respondent: - _______________________________________
_______________________________________
_______________________________________
_______________________________________
Phone no: - _______________________________________
Gender: - A) Male B) Female
Age group: - A) Below 25 years B) 26-35 years C) 36-45 years
D) 46-55 years E) 55 & above
Occupation: - A) Business/Entrepreneur F) Housewife
B) Govt employee G) If any other, Please specify
C) Employee in private organization _____________________
D) Retired person
E) Agriculturist
Page 81
Education: - A) Post Graduate B) Under Graduate
C) PUC D) SSLC
E) Below SSLC
Annual income: -
A) Below 10000/Rs B) 10000/Rs – 25000/Rs
C) 25000/Rs – 50000/Rs D) 50000/Rs – 75000/Rs
E) 75000/Rs – 100000/Rs F) 100000/Rs – 150000/Rs
G) 150000/Rs – 200000/Rs H) 200000 & above
1) Festivals you celebrate:
A) Diwali B) Ganesha pooja C) Id-Ul-Fitr D) Christmas
E) Suggest if any other _________________
2) How many Agrabatti sticks does your family use in a day? ___________
3) Usage of Agarbatti
A) Religious purpose B) Fragrance purpose C) Part of pooja
4) Total amount spent on Agarbatti in a month?
A) 10-20Rs B) 20-30Rs C) 30-50Rs D) 50-75Rs
E) 75-100Rs F) 100 & Above
5) What are the attributes you are looking for in the Agarbattis?
A) Price B) Good quality C) Fragrance
C) Easy availability E) Good packaging

6) Please mention the Agarbatti product you use daily?
A) Moksh Agarbattis B) Vasu Agarbattis C) Ashika Agarbattis
D) Cycle Pure Agarbattis E) Gopika Agarbattis F) Ullas Agarbattis
F) Mangladeep G) Padmini Agarbattis H) Shantala Agarbatti
I) Jetappa Agarbattis J) If any other please specify__________________

Page 82
8) Reason of using that product?
A) Price B) Good quality C) Fragrance D) Easy availability
E) Packaging F) Any other ________________
9) Please mention the purchase point for the Agarbatti packets?
A) Dealers point B) Retail point C) Retail super markets
D) Company outlet E) Pan shop F) Pooja outlet
E) Any other________________
10) Have you ever used Cycle pure Agarbatti?
A) Yes B) No
11) Since from when are you using Cycle pure Agarbatti?
A) 1-12 Months B) 1-3Years C) 3-5Yeras D) 5Years & Above
12) For the attributes given below kindly give your response for the products, on a
scale of 1-5
( Where 1- high, 5-low )
13) Mention the products of Cycle pure Agarbatti you used?
Cycle Brand Agarbattis
Rank 1 2 3 4 5
Price Quality Fragrance Packaging Easy Availability
Products 3 in 1 All in 1 Moods

Page 83
If any other products please specify:
_____________________________
14) Which are the sources helped you to know about the Cycle pure brand Agarbattis?
A) Friends B) Newspaper C) TV D) FM
E) If any other please specify____________________________
15) Overall please grade the quality of Cycle pure brand Agarbattis?
A) Excellent B) Very Good C) Good D) Average
E) Poor
16) Are you aware of Premium Agarbattis?
A) Yes B) No
17) If Yes, What are the attributes you are looking for in the premium brand?
A) Price B) Good quality C) Fragrance
C) Easy availability E) Good packaging
18) Do you have any suggestion/observation for the Cycle pure Agarbattis?
A) Yes B) No
If yes, please feel free to write: -

_______________________________________________
___________________________________________________________________
__
___________________________________________________________________
__
Thank you very much for your time and information.
Signature of the Respondent
………………………………
KARTHIKKUMAR.B.A

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CHAPTER – I

INTRODUCTION TO SMALL SCALE INDUSTRIES

DEFINITION OF SMALL SCALE INDUSTRIES

A. The Small Scale Industries Board(1955) – “A unit employing less than 50

B. Government of India (1980) - “Undertakings having investment in fixed assets

Small-scale industries are labour intensive. A given amount of capital invested

2. Less Capital Requirement

Small-scale industries are the capital-light example they need a relatively

5. Use of Local Resources

The development of small-scale industries will being about

Small-scale industries and cottage industries have the additional advantage

10. Support of Large-Scale Industries

Another highly useful role of small-scale industries in developed and

This is possible in the following ways:

11. Reduction of Dependence on Agriculture

12. Relieving Congestion in Urban Areas

By providing remunerative employment in the rural areas, these Industries will

14. Foreign Exchange Earning

From the point of Balance of payments, small-scale industries are justified on

15. Production of Consumer

Small-scale industries, predominantly producers of consumer goods, have a

16. Political and Social Advantages

Small-scale industries can help in awakening the powerful dormant forces

17. Preservation of Inherited Skill

Small-scale industries were helpful in the preservation of the inherited skill of

Small-scale industries are fairly labour-intensive. They provide an economic

Small-scale industries are flexible in their operation. They adopt quickly to

A small-scale unit is generally a one-man show. It is mostly set up by

4. Use of indigenous raw materials:

Small-scale industries use indigenous raw materials and promote intermediate

Small-scale industries generally restrict their operation to local areas in order

The educational level of the employees of small industries is normally low or

Role in the Indian economy

The objectives of the small scale industries are:

 To create more employment opportunities.

Advantages or Merits of Small Scale Industries

1. Potential for large employment

Small Scale Industries have potential to create employment opportunities on a

2. Requirement of less capital

Products manufactured by Small Scale Industries form a significant portion of the

5. Earning foreign exchange

Large scale industries lead to inequalities in income distribution and concentration of

8. Opportunities for entrepreneurship

10. Reducing migration

11. Suitable for non-standardized products

Large scale enterprises are suitable for manufacturing standardized products on a

13. Quick decisions

14. Adaptability to change

15. Small market size

17. Low social costs

18. Self interest

TYPES OF SMALL SCALE INDUSTRIES:

All types of small-scale industries found in India whether in manufacturing sector or

A study conducted by Bhatia (1976) states that in a majority of cases, units

Graham Bannock 2 [1981] presents a vivid picture of the practical problems of

Sandesara 4 (1988) a study of assistance programmes for small-scale

Siddhartha Shankar Dash and others 5 [1990] in a study under taken in

In a study conducted by Berry, Albert and Mazumdar Dipek 7 (1991) states