Gagana Jagadish (Bapuji B-Schools, Davangere 577004

CYCLE PURE AGARBATHIES PVT. LTD.
CHAPTER – 01
BIET MBA PROGRAMME, DAVANGERE Page 1

Introduction about Organization and Industry
1.1 Founder and details:
• Established in 1948
• 5 Businesses
• Head Quarters at Mysore
• 3000+ Employees
• ISO 9001 – 2008
1.2 General introduction:
Agarbathies form part and parcel of the traditional Hindu practice of offering prayers in
temples and other places of worship, in modern days, perfumed sticks are also used in houses
and in other public places as air-fresheners and/or mosquito repellents. The demand for
agarbatti is increasing both in the domestic and export markets because of the improvement
in quality and increase in the type of products. India is the largest producer of agarbattis in
the world.

1.3 N R GROUP:
Fragrance Business Divisions
Other Business Divisions
Social Initiatives

1.4 Industrial Background of the study:
Industrial development in India has occurred mostly to meet increasing urban consumer
needs and to support the growth of the vital agricultural sector. The traditional home
based enterprises have also been simultaneously experiencing steady growth, primarily
because of the influence of market forces and also because of multiplier effects. Cottage
industries have slowly changed to rural cottage or semi-urban micro-enterprises with
limited assistance from government.
Agarbatti making is one such industry. It has responded well to increased demand for its
products both in rural and urban areas, mainly because of the continued availability of
cheap labour force dominated by women and children. At the same time, greater
advertising costs and quality improvement have pushed up the prices.
Agarbatti industry is gradually developing a wider base. Of the total domestic sales of
Rs7.1 billion in 2009/10, south India accounted for 35%, west 30%, north 18% and east
17%. Almost two-thirds of consumption took place in rural areas. The poor purchases
about 46% of the value of the agarbatti compared with the higher income customers who
buy 54%. However, categorizing purchases into five income classes shows an inverse
relationship between income and the purchase of agarbatti. Existence of negative income
and price elasticity may be in play. The factors influencing purchasing decisions are: the
quality, fragrance, brand name preference and cost.
Rising demand for the products and earning of hard currency has led the agarbatti
industry to orient itself increasingly towards exports. Total exports have increased by
266%, from Rs1.5 billion in 2008/09 to Rs4 billion in 2009-10. More than 800 registered
and 3000 unregistered units currently exist in the country and only up to 10% of these,
mostly in Karnataka, are engaged in export trade.


CHAPTER-02

ORGANIZATION PROFILE:

2.1 BACKGROUND OF ORGAMIZATION:

Sri .N Ranga Rao faced many adversities rights from tender age, losing his father at the age
of 6 sever health problems, resulting in setbacks in professional life but Sri Ranga was 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 hand work and sustained
interest. As a Boy of eleven, he began selling biscuits. He faced competition at that time also
when another boy too started selling biscuits. Rao offered a peppermint free for those who
bought biscuits and this made the competitor to vanish. Thus was shown the business acumen
he had even at that young age. In college, he gave tuitions for generating income. He wanted
to learn typing but did not have money to pay for it. He used to stand in front of the institute
master/teacher when he gave classes. Seeing the boy’s interest, the teacher offered to teach
him free if he could get five students. Rao got the students and learnt typewriting free of cost.
Rao was married to Sita. After marriage, Rao shifted to his father-in-law’s place in
Aravankadu, where he worked as a clerk in the cooperative store for employees of cordite
Ammunition factory 1939 to 1944. This was his first employment. He wanted to be
independent and stand on his own. In 1942, when he was 30 years old, he finished his
diploma through distance education. His first son, Guru was born in 1942. Rao changed his
job and joined the cooperative stores of Hunsur Coffee Estates (CCE) in Polibetta, Coorg,
where he remained as a manager till 1948.
STARTING HIS OWN BUSINESS:

According to Family Website, the motivation for starting his own business was not only to
break away from tradition and but also to keep the family together. Quote from the blog: “He
had seen the general movement towards nuclear families from joint families. Because of his
strong conviction and family values- he believed in the importance of inculcating the feeling
of togetherness and bonding within the family- He was sure that in spite of living apart being
together we would stand strong, healthy and go beyond boundaries. ”His belief “Quality
backed by values will pay” and is belief took him far and long-the small industry transformed
into a global entity. N.Ranga Rao and son’s is now the largest incense manufacturer which
has created 5 popular brands.
2.2 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 strongest R&D set up in entire industry. Years of rigorous research have given
as distinction in fragrance creation, and know to have set trends in creating different forms of
incense and packaging. NR group core competence- the nurtured art if creating new
fragrances is family secret that has been handed down through generation, safe guarding the
purity and original quality of the incense. A professionally managed company N ranga rao

and sons introduced modern practices such as vender development initiatives, quality
management and HRD as early as 1960. Cycle agarbatti gives full and part time employment
to many tribal hamlets ad also to more than 3000 family’s in India. Cycle products are totally
eco-friendly- no CFCS are released during production, no animal products used and no
animal testing is involved adding to the company strength is fact that all fragrance’s or
blended in house and all process are develop in house, ensuring that there are no
collaborations all statutory requirements under labour, forest, pollution control laws are
applicable to this industry, which is recognized by the government as a handicraft industry.
This safe guards the interests of the production workforce and environment.
2.3 VISION MISSION AND QUALITY POLICY:
Vision statement:
“Work to become, not to acquire”
Mission statement:
To produce the high quality innovative and decorative products with the International
standards at
Competitive price
Quality policy:
 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.
 Company alwa6ys strives to have a trusting, mutually beneficial and long-lasting

relationship with our business associates.
 Company stress on integrity, transparency and consistency in all our dealings.
 Company constantly Endeavour towards customer satisfaction by delivering products and

services of the best value and quality.

2.4 WORK FLOW MODEL:

2.5 PRODUCT/SERVICE PROFILE:
 Cycle brand is traditional yet

contemporary, is a timeless classic
 This series contains fragrances that
have stood the test of time to remain
hugely popular over the decades.
 All in one is an inspired and

innovative combination pack for
gifting.
 It has a collection of creative
fragrances which have popular and
successful for decades.
 This collection of amazing aroma
makes a good gift on any special
occasion.
 Natya kesari is a sweet fragrance, a

sublime fragrance.
 There are very few fragrance that can
match up to its power. Light it and
you too will get swayed by its waft.
 Bansuri is the clear, uncluttered

minds that are charmed by the simple
things in the life will love this series
of fragrances that stand out for the
simplicity and clarity in their notes.

2.6 OWNERSHIP PATTERN:

A family enterprise offering the highest quality and purity in all their products started by Sri
Ranga Rao. This family Enterprise is now seeing its third/fourth generation overseeing the
business as CEOs, most of who have returned to head the group companies after management
degrees from US universities.
AREA OF OPERATION-
Global, National, regional Cycle brand Agarbattis 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, Europe, Latin
America, and North America. N Ranga Rao and sons exports tops this achievements with
large number of 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.
COMPETITORS:
 ITC MANGALDEEP
 VASU AGARBATTIS
 MOKSH AGARBATTIS
2.7 ACHIEVEMENTS/AWARDS:
 Par excellence awards (2009 and 2010) at the “NATIONAL CONVENTION ON
QUALITY CONCEPTS”.
 4 awards in Advertising for media strategy, Radio Jingles and innovation.
 9 Chemexicil awards
 6 Visvesvaraya industrial trade center awards for excellence bin exports.
 3 Niryat awards from the federation of Indian exports organization.
 Merit awards from the handicrafts council at state and national levels.

NR GROUP WINS QUALITY CIRCLES 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 . This award were given for quality projects
on power conservation and packaging printing undertaken by NR group employees for
Improving efficiency within organization. The first team undertook a project on power
consumption, 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 second team, from the exports divisions
of NR group focused on reducing the cost and time for printing variant names on packing. By
setting up the printing process in house, the time for dispatching the final products was
considerably reduced.
2.8 FUTURE GROWTH AND PROSPECTS

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 experts and the 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 – 03

MCKENSYS 7S FRAMEWORK & PORTER’S FIVE FORCE

MODEL
MCKINSEYS 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.
These are 7 basic dimensions, which represents the core of managerial actives.
MC KINSEY FRAMEWORK BY: Thomas j peters and Robert H waterman
01. STRUCTURE:
The organization chart and accompanying baggage that shows who reports to whom and how tasks are
both divided and integrated. Since N Ranga Rao and son’s is a private ltd company. The structure of the
organisation is democratic. Major decisions however is taken is at top level management of the company.

In NR group they always believe/trust on their employees and the vendors, the most observed thing is
they always give first preference for the women employees to their organisation.
Area sales Manager
Sales Executive
Sales of territory
Territory
Sales Representative
02. SYSTEM:
03. STYLE:
Style is one which top managers 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.
04. 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 employees,
performance employees, 1500 plus employees are working under NR Group in all over India.

05. 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 and who have the capabilities and
competencies to handle the functioning of work smoothly.
06. STRATEGY:
The strategies being adopted by the company: Fragrance
World the exclusive retail showroom of the Mysore based NR Group located on Dhanwantri
road in Mysore City.
1: Advertisement in a traditional and devotional way.
2: Sponsoring third umpire in international cricket matches.
07. SHARED VALUES:
The common feeling among the people in the N.RANGA RAO AND SONS is that they
are meeting the demands of the customers and fulfilling the expectations in the form of
production and its variability, values of NR group:
I. HONESTY
II. DISCIPLINE
III. TRANSPARENCY
IV. CLEANLINESS
V. TOTAL QUANTITY
VI. SELF-RELIANCE
VII. CO-OPERATIVE FREE POLICIES
VIII. RESPECTING OTHERS OPINIONS, EMOTIONS, THOUGHTS AND FEELINGS.

PORTERS FIVE FORCES OF MODEL
Threat of
new
Entrants
Bargaining Bargaining
COMPETITIVE
power of power of
Suppliers RIVALRY Customers
Threat of
Substitutes
1: THREAT OF NEW ENTRANTS:
It is small scale industry low investment is required suppliers of raw materials are
easily accessible. There is no or very low switching cost. There is a product
differentiation in organized sector which forms only 20% of the industry and rest is
un-organized sector in which there is no differentiation of the product they are more
or less similar.
2: BARGANING POWER OF SUPPLIERS:
The natural materials are used in Agarbatti making. There are numerous suppliers
of these raw materials so if the suppliers charge high prices company can switch over
to other suppliers so the bargaining power of suppliers is low. The raw materials are
undifferentiated and can be purchased easily from the suppliers.

3: BARGANING POWER OF BUYERS:
In organized sector the company’s profit margins to their retailers these margins are
according to their cost of production some provide more margin and some players
provide.
4: THREAT OF SUBSTITUTES:
1: Dhoop it is very strong substitute of incense stick. In man temples dhoop is used
instead of Agarbatti. Dhoop is also not a very costly product it prices more or less
same as Agarbattis.
2: Air fresheners, coils, magical charcoal, aroma candles.
5: COMPETITOR RIVALARY:
The competition is very high in the industry and many balanced competitors are
present in the industry. Because of which the industry concentration ratio is low.
The major players: Mangaldeep, parnami, danim

CHAPTER – 04

SWOT ANALYSIS
SWOT analysis is a strategic planning method used to evaluate the strengths, weakness,
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
favourable and unfavourable to achieving those objectives. A SWOT analysis must start
with defining a desired end state or objective.
01.
STRENGHTS:
Attributes of the person or company that is helpful to achieving the objectives:
 Art of perfuming is well accustomed

 Large labour base
 Exposure to Export markets
 No power requirement Aids to poverty elevating program
 Recognized under the handicraft sector
 Support of government departments, NGOs
02. WEAKNESS:

Attributes of the person or company that is harmful for achieving the objectives:
 Decrease in raw material availability
 Lack of mutual fund
 No progress in R and D
 Laws, acts ect
 Poor living conditions at bottom of the network
 Customer awareness is very low amongst low end producer.
03. OPPORTUNITIES:
External conditions those are helpful to achieving the objectives.
 Large export market potential

 Scope for innovation and R and D
 Free trade regime can provide better raw materials for better price.
04. THREATS:
External conditions which could do damage to the objectives.
 Global competition
 Unethical practices at local level
 Forest based raw materials supply becoming scarce
 Mechanization

CHAPTER – 05

ANALYSIS OF FINANCIAL STATEMENTS
NOTE: As N Ranga Rao & Sons , cycle Agarbatti manufacturer have not shared their
financial data so we are not providing the information of any financial data of cycle pure
Agarbatti they doesn’t want to disclose their financial data we are sharing the information
of related to the manufacturing process related to Agarbatti of NR group.
INTRODUCTION:
Financial statements are formal records of the financial activities and position of a
business, person, or other entity. Relevant financial information is presented in a
structured manner and in a form, which is easy to understand.
 Balance sheet
 Income statement
BALANCE SHEET:
The balance sheet provides a snapshot of a company’s accounts at a given point in time.
The balance sheet, along with the income and cash flow statement, is an important tool for
owners but also for investors because it is used to gain insight into a company and its
financial operations.
A balance sheet (also called the statement of financial position), can be defined as a
statement of a firm’s assets, liabilities and net worth. It provides a snapshot of a business
at a point in time. These are prepared at the end of an accounting period like a month,
quarter or year end. Comparison of balance sheets over years helps to gauge the financial
health of a business
Every business will generally need a balance sheet while applying for loans or grants,
submitting taxes or seeking potential investors.

INCOME STATEMENT:
The income statement definition is financial statement that shows a company’s revenues
and expenses over a period of time. Furthermore, it reports a company’s financial
performance over the course of an accounting period, typically a month or quarter.
Basically, it starts with the money a company earns, and subtracts out the costs of running
the business to get the company’s profit or loss.
It is often divided into two sections: operating and non-operating. The operating income
definition is the revenues and expenses incurred over the course of regular business
operations. Then the non-operating income section shows the revenues and expenses
incurred from activities that are not considered regular business operations. There may
also be a section for irregular items, consisting of revenues or expenses from abnormal or
nonrecurring activities. The top line of the income statement is the company’s operating
revenues. The bottom line is the company’s net profit or loss.

RATIO ANALYSIS
Ratio analysis is a quantitative method of gaining insight into a company’s liquidity,

operational efficiency, and profitability by comparing information contained in its
financial statements.
The purpose and importance of ratio:
Is to evaluate or analyse the performance of the firm in terms of risk, profitability,

solvency, and efficiency. It helps us to compare the trends of two or more company over a
period of time.
1: CURRENT RATIO:
The current ratio is financial ratio that measurement whether or not firm has enough
resources to pay its debts over the next 12 months. It compares a firm asset to current
liabilities.
The current ratio is calculated by dividing current assets by current liabilities:
CURRENT RATIOaq = CURRENT ASSETS
CURRENT LIABILITIES
For example, if a company’s current assets are $ 5,000 and its current
liabilities are $ 2,000, then its current ratio is 2.5.
CURRENT RATIO = $ 5,000
$ 2,000
= 2.5

2. QUICK RATIO:
Quick ratio establishes a relationship between quick or liquid assets and current
liabilities. An asset is said to be liquid if it can be converted into cash immediately. Liquid
asset includes cash, debtor, and marketable securities, Bills receivables.
QUICK RATIO = (Total current assets – Inventory + Prepaid Expenses)
Current Liabilities
3. DEBT EQUITY RATIO:
The debt-to-equity (D/E) ratio is calculated by dividing a company’s total liabilities by

its shareholder equity. These numbers are available on the balance sheet of a company’s
financial statements.
DEBT TO EQUITY RATIO
Debt to equity ratio = Total liabilities
Total Equity

PROFIT AND LOSS ACCOUNT:
The profit and loss (P&L) statement is a financial statement that summarizes the revenues,
costs and expenses incurred during a specified period, usually a fiscal quarter or year.
The P&L statement is synonymous with the income statement. These records provide
information about a company’s ability or inability to generate profit by increasing
revenue, reducing costs or both. Some refer to the P&L statement as a statement of profit
and loss, income statement, statement of operations, statement of financial results or
income, earnings statement or expense statement.
The P&L statement is one of three financial statements every public company issues
quarterly and annually. Along with the balance sheet and the cash flow statement. It is
often the most popular and common financial statement in a business plan as it quickly
shows how profit or loss was generated by a business.

CHAPTER - 06

LEARNING EXPERIENCE
Organization study taught me that leadership is far more complicated than it seems. A leader
is person who takes all risks and always ready to accept challenges whatever comes into his
business.
The theoretical an practical knowledge of both helps me to understand about the organization
industry market and now corporate field is starting from the introduction of the company to
profile, workforce model, how it works strategy vision, mission, competitors, investment,
network environment etc. 7s and porters 5 force model made me to understand there
connectivity and importance to organization.
I have chosen CYCLE PURE AGARABTTI, Mysore as my organization study where I have
collected data from websites, research papers, and official websites of the company.

BIBLIOGRAPHY
Books:
01. Marketing Management – By Philip Kotler.

02. Marketing Management – By C.B. Gupta.
Manuals and Reports:
01. 1
02. 2
Websites:
01. 1
02. 2
03. 3

Annexure
Weekly progress report - 01
Student Name Gagana Jagadish
USN 4BD20BA035
Title of the student Origination study.
Organization N Ranga Rao & Sons pvt. Ltd, Mysuru
Duration 04.10.21 to 09.10.21

(week Start & End date)
Chapters covered About organization and industry.
Description of activities  HR Process & their function of the

Performed organization.
During the week  Conversion of RM to FG.
 Accounting details.
Annexure

USN 4BD20BA035
Title of the student Origination study
Duration 11.10.21 to 16.10.21

Chapters covered Organization profile
Description of activities  History and background

Performed  I gone through the complete process
During the week and the organizational structure.
 Financial statement details.
Annexure

USN 4BD20BA035
Duration 18.10.21 to 23.10.21

Chapters covered 7'Mckensy’s, porters 5 force models &

SWAT Analysis.
Description of activities  About 7'Mckensy’s.

Performed  Porters 5 force models.
During the week  SWAT Analysis.
 Company structure.
Annexure

USN 4BD20BA035
Duration 25.10.21 to 30.10.21

Chapters covered Balance sheet & accounting details
Description of activities
Performed  Working process of agarbatti
During the week  Accounting details
 Balance sheets
Date: Signature of the student
Gagana Jagadish
“Reviewed”
Signature of Internal Guide with date.

Gagana Jagadish (Bapuji B-Schools, Davangere 577004

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CYCLE PURE AGARBATHIES PVT. LTD.

BIET MBA PROGRAMME, DAVANGERE Page 1

Introduction about Organization and Industry

1.1 Founder and details:

1.2 General introduction:

BIET MBA PROGRAMME, DAVANGERE Page 2

Fragrance Business Divisions

Other Business Divisions

BIET MBA PROGRAMME, DAVANGERE Page 3

1.4 Industrial Background of the study:

BIET MBA PROGRAMME, DAVANGERE Page 4

BIET MBA PROGRAMME, DAVANGERE Page 5

BIET MBA PROGRAMME, DAVANGERE Page 6

2.1 BACKGROUND OF ORGAMIZATION:

STARTING HIS OWN BUSINESS:

2.2 NATURE OF THE BUSINESS:

BIET MBA PROGRAMME, DAVANGERE Page 7

2.3 VISION MISSION AND QUALITY POLICY:

 Company empowers people at appropriate level to achieve their goal.

 Company recognizes and reward merit and performance.

 Company alwa6ys strives to have a trusting, mutually beneficial and long-lasting

 Company stress on integrity, transparency and consistency in all our dealings.

 Company constantly Endeavour towards customer satisfaction by delivering products and

BIET MBA PROGRAMME, DAVANGERE Page 8

2.4 WORK FLOW MODEL:

BIET MBA PROGRAMME, DAVANGERE Page 9

2.5 PRODUCT/SERVICE PROFILE:

 Cycle brand is traditional yet

 All in one is an inspired and

 Natya kesari is a sweet fragrance, a

 Bansuri is the clear, uncluttered

BIET MBA PROGRAMME, DAVANGERE Page 10

2.6 OWNERSHIP PATTERN:

 4 awards in Advertising for media strategy, Radio Jingles and innovation.

 6 Visvesvaraya industrial trade center awards for excellence bin exports.

 3 Niryat awards from the federation of Indian exports organization.

BIET MBA PROGRAMME, DAVANGERE Page 11

NR GROUP WINS QUALITY CIRCLES PAR EXCELLENCE AWARD

2.8 FUTURE GROWTH AND PROSPECTS

BIET MBA PROGRAMME, DAVANGERE Page 12

BIET MBA PROGRAMME, DAVANGERE Page 13

MCKENSYS 7S FRAMEWORK & PORTER’S FIVE FORCE

MC KINSEY FRAMEWORK BY: Thomas j peters and Robert H waterman

BIET MBA PROGRAMME, DAVANGERE Page 14

Area sales Manager

BIET MBA PROGRAMME, DAVANGERE Page 15

The strategies being adopted by the company: Fragrance

1: Advertisement in a traditional and devotional way.

2: Sponsoring third umpire in international cricket matches.

07. SHARED VALUES:

BIET MBA PROGRAMME, DAVANGERE Page 16

PORTERS FIVE FORCES OF MODEL

1: THREAT OF NEW ENTRANTS:

2: BARGANING POWER OF SUPPLIERS:

BIET MBA PROGRAMME, DAVANGERE Page 17

3: BARGANING POWER OF BUYERS:

2: Air fresheners, coils, magical charcoal, aroma candles.

The major players: Mangaldeep, parnami, danim

BIET MBA PROGRAMME, DAVANGERE Page 18

BIET MBA PROGRAMME, DAVANGERE Page 19

Attributes of the person or company that is helpful to achieving the objectives:

 Art of perfuming is well accustomed