Download as pdf or txt
Download as pdf or txt
You are on page 1of 36

A FINAL PROJECT REPORT

ON SALE OF PACKAGING PRODUCTS

SUBMITTED BY
NITIN TRIPATHI 09BS0001480 14 MAY 2010 M&C PACKAGING

A FINAL PROJECT REPORT


ON SALE OF PACKAGING PRODUCTS

By
NITIN TRIPATHI 09BS0001480 M&C PACKAGING A report submitted in partial fulfilment of the requirements of MBA Program of the ICFAI University , Dehradun Distribution List: DATE OF SUBMISSION
(To be submitted on or before 14th May, 2010)

ACKNOWLEDGMENTS

Project work is never the task of an individual. It is a combination of ideas, suggestions and contributions. I take this opportunity to sincerely thank all those who have helped us and contributed in this initiative with their suggestions, guidance and support so that we could culminate the assignment successfully. This project would have been a lot more difficult if I was not assisted by these people. At the initial stage it was difficult for me to go about things because everything seemed to be quite tough and new for me but with the assistance of my company guide it became very easy and at the same time a great learning experience. I always feel that I could not give enough time to my faculty guide because of the work but I really appreciate the manner in which he treated me any time I went for his help and support. He was always eager to know and understand my project and its progress and encouraged me to do things well and if there was any help required he was always there. It is my obligation to acknowledge and thank them for their help. a) Mr. Jatin Khanna b) Dr. Jamshed modi c) Mrs. Tressa dmelo

TABLE OF CONTENTS

Authorisation ..........2 Acknowledgments........................................3 Executive Summary/Abstract/Synopsis................5 1. Introduction.................................................................................................................7 1.1. Packaging Types .8 1.2. Packaging Machines.....................9 1.3 Label Dispensers and Label Applicators .9 1.4 A Cartoning Machine..12 1.5 Types of Cartons.12 1.6 Blister Pack ....13 1.7 Corrugated Fiberboard ...14 1.8 The Vertical Form Fill Sealing Machine (FFS) .14 1.9 Shrink Wrap15 1.10 A Conveyor Belt (or belt conveyor)....................................................................17 1.11 Limitations of the Project ....19 1.12 Suggestions...21 2 . Main Text....22 2.1 Packaging Industries of India....23 2.2 New Trends in Packaging Industries.25 2.3Japan - The Largest Packaging Machine Producer................26 2.4 Latest Buzz and Issues of Packaging.28 3 4 5 Attachments .30 References...................34 Glossary35

EXECUTIVE SUMMARY / ABSTRACT

This internship project is to educate customers about the new packaging equipments which are available with our company and which are quite useful in increasing the productivity of the products. To provide complete packaging solutions and all packaging needs to our global customers, be it machinery, accessories or consumables. Till date I have visited many companies where I got a chance to meet with the top level corporates of some of the best companies in India. My company guide Mr. Jatin Khanna expressed his desire to focus on the top level Pharmaceutical companies as well as the top 10 FMCG companies in India. The corporate people are not easy to contact with so a number of phone calls have to be made to fix with an appointment. They can be from different departments like packaging ,production ,purchase or procurement. These people work in a group and they take a final decision for the machine only after having a fruitful discussion with their team members and this is because the project completion with any company takes time. There are a number of corporate people of good companies to whom I have sent emails or sent the hard copy of catalog through courier to have a better insight of our company and the products we deal with. Many have come up with good responses, few are taking their time and some dont have any requirements at present. Our Top class reference list is the best USP of our company which helps a lot when we represent ourself in different companies that we follow. It gives me immense proud and happiness when I communicate this reference list with other customers and feel great to be a part of such good company. I always try to spread the name of my company to as many companies as possible because to have a better sale of the products the other party should be aware of the name and brand of the company and then subsequently they feel quite acquainted and familiar with the name to give a final order for the machine. The next page has the list of the companies and the person to whom I have met uptill now.

NAME OF THE COMPANY AJANTA PHARMA LTD. STALLEN SUN PHARMACEUTICAL LTD. ASIAN PAINTS HINDUSTAN UNILEVER LTD. COLGATE-PALMOLIVE ARISTO PHARMA PARLE PRODUCTS VHB LIFE SCIENCES TAJ PHARMACEUTICAL EMBIO LTD. THEMIS MEDICARE JB CHEMICALS LTD. GLAXO SMITHKLINE KOPRAN LTD.

PERSON MET MR. HARSHAD THAMBE MR. H.S. PATEL MR. VIPUL KANJIA MR. NAVINDER SINGH MR. K V KRISHNAN MR. K.M. LAXMI NARAYAN MRS.MANJIRI MOGHE MR. RANJEET PATIL MR. NILESH MEHTA MR. ABISEKH SINGH MR. V PRASAD MRS. KAVITA SUVARNA MRS. MANALI M JADHAV MR. J.S. PATIL MR. R.K. KAMAT

Some of the above names are still in talks at present and they may become our clients in future.

1. INTRODUCTION

My project is all about sale of the packaging products The project is divided into various phases and the phases of the projects are carried in a sequential manner so as to give a proper flow to the success of the project. 1. Ist Phase The first phase begins with preparing of a customer database categorized in different sectors (eg. Pharmaceutical or FMCG) and then doing a study of the products that the company is dealing with so that we could focus more on that particular product while carrying out the discussion with them. Then try to contact the concerned person dealing with the machinery. I further try to arrange for a meeting and discuss more about the company and products we are dealing with. 2. IInd Phase The second phase begins with the follow ups of the customers contacted before and try to know if there is any further requirements of the products. It is a bit easier to approach in this phase because our companies profile and product line is clear in the minds of the customers at this stage and they are quite familier with the companies name and its current clients.

3.IIIrd Phase This is the phase where we actually fulfill the customers requirement of any machine. We send them proper quotation for the machine and then help in installing the machine at their desired location.

Packaging Types

Packaging may be looked at as being of several different types. For example a transport package or distribution package can be the shipping container used to ship, store, and handle the product or inner packages. Some identify a consumer package as one which is directed toward a consumer or household. Packaging may be described in relation to the type of product being packaged: medical device packaging, bulk chemical packaging, over-the-counter drug packaging, retail food packaging, military materiel packaging, pharmaceutical packaging, etc. It is sometimes convenient to categorize packages by layer or function: "primary", "secondary", etc. Primary packaging is the material that first envelops the product and holds it. This usually is the smallest unit of distribution or use and is the package which is in direct contact with the contents. Secondary packaging is outside the primary packaging, perhaps used to group primary packages together. Tertiary packaging is used for bulk handling, warehouse storage and transport shipping. The most common form is a palletized unit load that packs tightly into containers. These broad categories can be somewhat arbitrary. For example, depending on the use, a shrink wrap can be primary packaging when applied directly to the product, secondary packaging when combining smaller packages, and tertiary packaging on some distribution packs.

Packaging Machines A choice of packaging machinery includes: technical capabilities, labor requirements, worker safety, maintainability, serviceability, reliability, ability to integrate into the packaging line, capital cost, floorspace, flexibility (change-over, materials, etc.), energy usage, quality of outgoing packages, qualifications (for food, pharmaceuticals, etc.), throughput, efficiency, productivity, ergonomics, return on investment, etc.

Packaging machines may be of the following general types:


Blister packs, skin packs and Vacuum Packaging Machines Bottle caps equipment, Over-Capping, Lidding, Closing, Seaming and Sealing Machines Box, Case and Tray Forming, Packing, Unpacking, Closing and Sealing Machines Cartoning machines Cleaning, Sterilizing, Cooling and Drying Machines Converting Machines Conveyor belts, Accumulating and Related Machines Feeding, Orienting, Placing and Related Machines Filling Machines: handling liquid and powdered products Inspecting, Detecting and Check weigher Machines Label dispensers Help peel and apply labels more efficiently Package Filling and Closing Machines Palletizing, Depalletizing, Unit load assembly Product Identification: labeling, marking, etc. Shrink wrap Machines Form, Fill and Seal Machines Other speciality machinery: slitters, perforating, laser cutters, parts attachment, etc.

Label Dispensers and Label Applicators These machines are built to simplify the process of removing a label from its liner or backing tape. Some are bench-top for dispensing the labels while others include the application of the label to the item (such as a package).Label dispensers are designed

with varying sizes and features which are often specific to the type of label they can dispense and to the degree of automation desired. The labels are applied by either manual application or automatic application. Automatic application are basically of two types, tamp on or wipe on. Label dispensers have many uses. Imagine how many items you purchase have labels, almost everything. Those labels were either applied by a machine or by hand, and most likely were peeled from the backing paper using some sort of label dispenser. Some of the more popular are bulk mailing, manufacturing, packaging, food and beverage, fast food, photo labs, and more. Patents on Manual label dispensers go back to the 1920s. They are designed for lightduty use. They are operated by hand and are not automated, but still assist in the process of removing labels from their liners. Many manual label dispensers can dispense multiple rolls at once. Operation is performed by pulling the liner/backing paper around a plate or bar which causes the label to peel away from the backing paper. This happens because the backing paper is usually thinner than the label itself and is also underneath. When the liner is forced around a tight radius the label lifts away and protrudes through the front or top of the dispenser. Electric Semi-automatic label dispensers were first patented in the early 1970s. They were originally designed for multiple-row address labels for bulk mailing houses. On average a good mailing house employee could apply approximately 500 labels per hour to envelopes. The label dispenser increased this to over 2,000 per hour. These dispensers advance individual or multiple-row labels and remove them from their lining similar to a manual dispenser, but instead of manually pulling on the liner, label advancement occurs when a trigger on the dispenser detects the absence of a label, such as when the operator removes the label. The sensor then closes the circuit and engages the motor, dispensing the next label until the sensor once again detects the label which opens the circuit. The first electric dispenser was designed with the limit switch on the left of a 16" wide machine. 4-up multiple-row labels were loaded into the machine and once activated would advance one row of labels. The operator would take the labels from right to left, so that when the leftmost label was taken, the next row advanced, automatically providing a constant supply of labels to apply. The labels are also peeled without the natural curl that will happen when pulled from the backing paper with fingers. Also, only one hand was needed to take the label, the other hand could be used to move the material the label was being applied to.

10

Semi-automatic label dispensers are often built to withstand industrial conditions

Motor: The motor automates the label dispenser and controls the speed at which labels are dispensed. Feed-Roller: This actually is the first patented method used in the semi-automatic label dispenser to advance the label forward. The label material is fed over the peeling edge, then through a feed-roller assembly which pinches the label material between a metal roller and a rubber roller. The metal roller is held in place with bushings pressed into aluminum blocks which hinge on a rod supported between two sideframes. The blocks use springs on each side to hold tension against the rubber roller (driven by a motor), and this also holds the tracking of the label material to the side of the machine with the sensor. Using this method label stock up to 16" width can be advanced and tracked perfectly. The disadvantage/advantage to this method is waste is not collected, but pushed out through the rear of the machine where it can be fed into a trash receptacle.

Take-up hub/spool: This can take the place of the feed-roller. The take-up hub consists of a bar and a liner holder/clip, which are connected to the motor on a single side-frame. In operation, they turn in sync with the motor and wind the label liner in order to collect it in one place. As the take-up hub turns, pressure is placed in the liner and it is stretched across the strip plate, where peeling, or separation, occurs.

Strip plate: A component of the machine which acts as a separator for the label and its liner. Each label is pulled across the strip plate until it is recognized by a photo sensor or limit switch. Strip plates can be of varying design and material, but they are often made of plastic, metal coil, or aluminum.

Photo detector or Limit switch: Used to trigger label advancement. Every semiautomatic label dispenser is equipped with one or the other. These detect the absence or presence of a label to facilitate dispensing.

Limit switch: This is the original method of label detection and can be used for most applications, it can detect a wide variety of labels. Photo detector / Electric eye: Is an alternate method which uses a beam of light broken by the label as it passes over/between the sensors. It can be used for many different label types, but transparent material is an issue.

11

A Cartoning Machine It is a packaging machine that forms cartons: erect, close, folded, side seamed and sealed cartons.Packaging machines which form a carton board blank into a carton filled with a product or bag of products or number of products say into single carton, after the filling,the machine engages its tabs / slots to apply adhesive and close both the ends of carton completely sealing the carton. Cartoning machines can be divided into two types:

Horizontal Cartoning Machine Vertical Cartoning Machine

A cartoning machine which picks a single piece from stack of folded carton and erects it, fills with a product or bag of products or number of products horizontally through an open end and closes by tucking the end flaps of the carton or applying glue or adhesive. The product might be push in the carton either through the mechanical sleeve or by pressurized air. This type of Cartoning machine is widely used for packaging foodstuffs, confectionery, medicine, cosmetics, sundry goods, etc.A cartoning machine which erects a folded carton, fills with a product or number of products vertically through an open end and closes by either tucking the end flaps of the carton or applying glue or adhesive, is called a top end cartoning machine. Widely used for packaging bottled foodstuffs, confectionery, medicine, cosmetics, etc.

Types of Cartons Folding Cartons A carton is a type of packaging suitable for food, pharmaceuticals, hardware, and many other types of products. Folding cartons are usually combined into a tube at the manufacturer and shipped flat (knocked down) to the packager. Tray styles have a solid bottom and are often shipped as flat blanks and assembled by the packager. Some also are self-erecting. High speed equipment is available to set-up, load, and close the cartons.

12

Egg Carton Egg cartons or trays are designed to protect whole eggs while in transit. Traditionally these have been made of molded pulp. This uses recycled newsprint which is molded into a shape which protects the eggs. More recently egg cartons have also be made from expanded polystyrene (similar to Styrofoam) and PET. Aseptic Carton Cartons for liquids can be fabricated from laminates of paperboard, foil, and polyethylene. Most are based on either Tetra Pak or Combibloc systems. One option is to have the printed laminate supplied on a roll. The carton is cut, scorred, and formed at the packager. A second option is to have the pre-assembled tubes delivered to the packager for completion and filling. These are suited for aseptic processing and are used for milk, soup, juice, etc. Gable Top Gable top cartons are often used for liquid products such as milk, juice, etc. These used polyethylene-coated paperboard and sometimes a foil laminate. Most are opened by pushing open the gables at the top. Some have fitments to assist in opening and pouring the contents.

Blister Pack It is a term for several types of pre-formed plastic packaging used for small consumer goods. The two primary components of a blister pack are the cavity or pocket made from a "formable" web, either plastic or aluminium - and the lidding, made from paper, carton, plastic or aluminium. The "formed" cavity or pocket contains the product and the "lidding" seals the product in the package. Blister packs are created by means of a form-fill-seal process at the pharmaceutical company or designated contract packer. A form-fill-seal process means that the blister pack is created from rolls of flat sheet or film, filled with the pharmaceutical product and closed (sealed) on the same equipment. Such equipment is called a blisterline.Blister packs consist of two principal components : 1) a

13

formed base web creating the cavity inside which the product fits and 2) the lidding foil for dispensing the product out of the pack. There are two types of forming the cavity into a base web sheet: thermoforming and cold forming.

Corrugated Fiberboard It is a paper-based material consisting of a fluted corrugated sheet and one or two flat linerboards. It is widely used in the manufacture of corrugated boxes and shipping containers.The corrugated medium and linerboard are made of containerboard, a paperlike material usually over ten mils (0.010 inch, or 0.25 mm) thick. Paperboard and corrugated fiberboard are sometimes called cardboard, although cardboard might be any heavy paper-pulp based board.

The Vertical Form Fill Sealing Machine (FFS) It is a type of automated assembly-line product packaging system, commonly used to in the packaging industry for food, and a wide variety of other products. The machine constructs plastic bags out of a flat roll of plastic film, while simultaneously filling the bags with product and sealing the filled bags. Both solids and liquids can be bagged using this packaging system.The typical machine is loaded with a continuous flat roll of plastic film, which has had labeling and artwork applied to the exterior or interior of the film. Note that while plastic is the most commonly used packaging material in the food industry, the technology can also be used to form continuous paper and fabric product containers by changing the edge sealing/seaming methods.For some products the film may first be fed through a sterilizing chemical bath and dryer prior to use in the packaging system.The film approaches the back of a long hollow conical tube, and when the center of the plastic is near the tube, the outer edges of the film form flaps that wrap around the conical tube. The film is pulled downward around the outside of the tube and a vertical heat-sealing bar clamps onto the edges of the film, bonding the film by melting the seam edges together.To start the bagging process, a horizontal sealing bar clamps across the bottom edge of the tube, bonding the film together, and cutting off any film below. The sealed tube end is then lowered onto a precision weighing table and the product to be bagged is dispensed through the long conical tube in the center of the bag.When the tare weight of the product-filled bag is reached, filling stops, and the horizontal sealing bar seals the top of the bag, and simulatenously forms the bottom of

14

the next bag above. This bag is then cut off from the tube and is now a sealed package, ready to advance onward into the product boxing and shipping processes. During the final sealing process, the bag may be filled with air from a blower or from an inert gas supply. Inflating the bag helps reduce the crushing of fragile products such as potato chips, while inflating with an inert gas helps drive out oxygen and retards the growth of bacteria that would spoil the product.Dual web systems are also available for four side sealed pouches, as well as pouches requiring different materials for each side. Dual web systems use two rolls of material instead of one, which are fed in from opposite sides of the machine. The bottom and sides are heat sealed together to form the pouch, and the product is loaded from the top. The pouch with loaded product then advances downwards and the top is sealed and pouch is cut off. The sealing of the top of the pouch forms the bottom of the next pouch. During this process a tear notch may be added.The feeding of material and cutting of the pouch can be determined either by pouch length, or indexing to an eyespot, which is detected by a visual sensor.While single web systems are popular for food applications, the dual web four side seal system is often popular for IVD and Medical device products.Closely related is the horizontal form-fill-seal machine, which is generally uses more floor space than a vertical system.Modern advancements in pouch forming technology have allowed for smaller and smaller Vertical pouch forming systems.

Shrink Wrap Shrink wrap, also shrinkwrap or shrink film, is a material made up of polymer plastic film. When heat is applied to this material it shrinks tightly over whatever it is covering. Heat can be applied with a hand held heat gun (electric or gas) or the product and film can pass through a heat tunnel on a conveyor. Shrink wrap is commonly used as an overwrap on many types of packaging, including cartons, boxes, beverage cans and pallet loads. A variety of products may be enclosed in shrink wrap to stabilize the products, unitize them, keep them clean, add a degree of tamper resistance, etc. It can be the primary covering for some foods such as cheese and meats. It is also used to cover boats after manufacture and for winter storage. Heat-shrink tubing is used to seal electric wiring. Shrink bands are applied over parts of packages for tamper resistance or labels. It can also combine two packages or parts.

15

The most commonly used shrink wrap is polyolefin. It is available in a variety of thicknesses, clarities, strengths and shrink ratios. The two primary films are either crosslinked, or non crosslinked. Other shrink films include PVC and several other compositions. Coextrusions and laminations are available for specific mechanical and barrier properties for shrink wrapping food. Current trends are to improve film properties which may lead to reduced caliper (source reduction) and to improve process efficiency (cost and energy savings). A shrink film can be made to shrink in one direction (unidirectional or mono-directional) or in both directions (bidirectional). Films are stretched when they are warm to orient the molecules from their initial random pattern. Cooling the film sets the film's characteristics until it is reheated: this causes it to shrink back toward its initial dimensions. Prior to orientation, the molecules of a sheet or tube are randomly intertwined like a bowl of spaghetti. The molecules are coiled and twisted and have no particular alignment. However when a draw force is imposed, the amorphous regions of the chains are straightened and aligned to the direction of orientation. By applying proper cooling, the molecules will be frozen in this state until sufficient heat energy is applied to allow the chains to shrink back. One can visualize this phenomenon by stretching a rubber band and dipping it into liquid nitrogen so as to freeze in the stretched state. The band will remain in this state as long as it is kept at sufficiently cold temperatures. However, when enough heat energy is applied, the rubber band will shrink back to its original relaxed state. Orientation on a commercial scale can be achieved using either of two processes: a tenterframe or a bubble process. Tenterframe technology is used to produce a variety of heat-set products, with BOPP being the most common (Heat-setting is a process whereby a film is reheated in a constrained state such that the shrink properties are destroyed). The second commercial process is the bubble process, sometimes referred to as the tubular process. In this process, a primary tube is produced by either blowing or casting the tube onto an external or internal mandrel, respectively. It is common to use water to help cool the primary tube at this point. After the primary tube has been cooled, it is then reheated and inflated into a second bubble using air much like a balloon is blown. Upon inflation, the tube is oriented in both directions simultaneously. The family of shrink films has broadened over the years with many multilayer constructions being sold today. The key attributes which are important to shrink films include shrink,

16

sealability, optics, toughness, and slip. Each of these attributes is composed of several facets. With regard to shrink properties, there are onset temperature, free shrink, shrink force, shrink temperature range, memory, and overall package appearance. Each of these facets must be considered when choosing an appropriate shrink wrap for a particular application Shrink wrap is applied over or around the intended item, often by automated equipment. It is then sent through a heat tunnel or oven for shrinking. Heat guns are also used for large items. Shrink wrap can be supplied in several forms. Flat rollstock can be wrapped around a product but centerfolded film is by far the most popular, supplied on a roll the plastic is folded in half: product is placed in the center portion, the remaining three edges are sealed to form a bag, and the package then heated which causes the bag to shrink and conform to the product placed in the bag. Less popular are the pre-formed Shrink bags plastic bags with one end open: the product is placed in the bag, sealed, and sent for heat shrinking. Shrink wrap can be used to wrap buildings. It is far superior to blue tarps for wrapping roofs after hurricanes, earthquakes, tornadoes and other disasters. Shrink wrap can be used for environmental containments to facilitate safe removal of asbestos, lead and other hazards. Shrink wrap is sometimes used to wrap up books. Software on carriers such as CDs or DVDs are often sold in boxes that are packaged in shrink wrap. The licenses of such software are typically put inside the boxes, making it impossible to read them before purchasing. This has raised questions about the validity of such shrink wrap licenses.

A Conveyor Belt (or Belt Conveyor) It consists of two or more pulleys, with a continuous loop of material - the conveyor belt that rotates about them. One or both of the pulleys are powered, moving the belt and the material on the belt forward. The powered pulley is called the drive pulley while the unpowered pulley is called the idler. There are two main industrial classes of belt conveyors; Those in general material handling such as those moving boxes along inside a factory and bulk material handling such as those used to transport industrial and agricultural materials, such as grain, coal, ores, etc. generally in outdoor locations. Conveyors are used as components in automated distribution and warehousing. In

17

combination with computer controlled pallet handling equipment this allows for more efficient retail, wholesale, and manufacturing distribution. It is considered a labor saving system that allows large volumes to move rapidly through a process, allowing companies to ship or receive higher volumes with smaller storage space and with less labor expense.

18

LIMITATIONS OF THE PROJECT i) The Secondary Data collected are many times wrong The database which is collected by us comprising the company location and complete mailing address is many times not correct, especially the phone nos which keep on changing so we have to make a number of calls to get the correct number.

ii) Error in contacting the concerned person Many times it happen that we go on in discussion with a wrong person who is not directly concerned with the packaging machines and it results in the wastage of time and no result comes out at the end. In some cases the contacted person hides the details of the concerned person thinking it to be of lesser importance to them .

iii) Delay in actions taken by both the parties In many cases it happens that the contacted customer takes too much time in ending the project and simply delay in their actions which badly affect the progress of the project. In other cases it can be from our part also where we delay in understanding the exact needs of the customer and also delay in sending them the exact quotation.

iv) Customers think Foreign companies fail to give better servicing I have realized that many of the customers have in their minds that the foreign companies are not able to provide with the best of the servicing and this is because they switch to other local companies

v) Customer hiding the exact details of the product Many times it happens that the customer is in a hurry to get the quotation as soon as possible for having a general idea and for this he hides certain important details which are very important to get the correct quotation as well as correct price.

vi) Price focused customers During my project work I have rea lized that most of the customers are mainly focused on prices and they simply dont try to understand on the functionality part of the machine and they end up taking an cheaper machine with low functionality .

19

vii) Lack of competitor analysis There is a lack of analysis to be done regarding our competitors database , which all products they are dealing with and a perfect table match with the prices that they are quoting for the same machine. This can help us in matching up with the price level of other companies along with maintaining a good quality and servicing.

viii) Lack of Marketing and Branding exercise There should be a much more emphasis on the marketing of the company name and the products so that the name of the company stays in the mind of the customer to have deal further .I have basically tried to work on this aspect. ix) Come up with some promotional strategy Here we can come up with some kind of materials which could be handed over to the contacted person at the time of meetings. In this case for example we can provide a pen with a name of M&C Packaging at the time of meetings so that they can have the brand recall in future.

20

SUGGESTIONS

The Secondary Data collected are many times wrong Actually this problem is not easy because the non-official as well as the official company websites from where we pick these data are not updated many times so we land up getting wrong data but yes we can minimize these errors by using new edition magazines and directories related to pharmaceutical and food industries as we are doing presently.

Lack of Marketing and Branding exercise We can improve on our company website because many people can be impressed only by looking to a decent and standard website where customers can see all the product line and have an option to order the products online by submitting all the details and specifications of the machine on the website column. This is the best way to get a competitive advantage over some other players. we can also show our year wise performance of the company and sales targets achieved in that particular year along with an upward going graph. Only if the customer hits the company website once he should not be requiring anything else. It should be of that class that we should only try to focus our website everywhere and no need to do anything extra.

Come up with some promotional strategy I am listing some good ones as follows , some of them can be taken up

A transparent globe with a name of M&C Packaging written inside seen from all around the globe can be handed over to corporate people .
A transparent paper stopper in a cubical shape with the name of M&C Packaging flashing from inside in a radium can also be handed over .

A brown tape with M&C Packaging written on it which can be used on cartons can also be handed over to the people
A beautiful small table stand calendar can be also be given to people with the name of M&C Packaging A catalog book with the cover of M&C Packaging all side.

21

2. MAIN TEXT In this sect ion I would like to discuss the main business o f the report. The main functio n of this part is to present data in an organized form and discuss the flow of data .

Fetch the list of new customers.

Try to contact the concerned person related to the packaging machines.

Share our company profile and undergoing business.

If possible arrange for a meeting to discuss more on it.

Know the specific needs of the customer and try to present the suitable model of machine customized to his needs.

The above diagram shows a flow diagram how we proceed through our project. This series of steps is the basic steps which we fo llow for any new type of customer handling.

22

PACKAGING INDUSTRIES OF INDIA

Packaging is among the high growth industries in India. A high degree of potential exists for almost all user segments which are expanding appreciably-Processessed foods, hard and soft drinks, fruit and marine products, cosmetics and personalcare, office stationary and accessories, fabrics and garments, white goods and other durables, electrical appliances and equipments, entertainment and other electronics, shoes and leather ware, gems and jewellery, toys and sports goods, chemicals and fertilizers. Due to lower manufacturing costs, India is fast becoming a preferred hub for packaging production. The Indian packaging industry has made a mark with its exports that comprise flattened cans, printed sheets and components, crown cork, lug caps, plastic film laminates, craft paper, paper board and packaging machinery, while the imports include tinplate, coating and lining compounds and others. In India, the fastest growing packaging segments are laminates and flexible packaging, especially PET and woven sacks. The market size for packaging materials & systems for food, pharmaceuticals, cosmetics, toiletries, Ind. products, textiles, handicrafts, etc. accounts for 4%, while rigid & semirigid plastic containers is about 9%.The metal and tin containers accounts for 10%, glass containers 10% , corrugated board & boxes 23%, paper & paper board 36% and other ancillary materials like tapes straps, labels, adhesives, etc. - 8%. Upgradation, both of functionality and aesthetics, characterizes the recent trends in the industry. Elaborate and more expensive packaging is penetrating deeper into marketing of industrial products and even agro-based products, like food and personalcare products, drugs and pharmaceuticals, consumer durables and electronic products, especially entertainment products. Packaging market size in India is about Rs 65,000 crore is growing at the rate of 15 per cent per annum. Currently rigid packaging enjoys more than 65% market share but the traditional rigid packaging users are migrating to flexible packaging in a big way.Market size of PET/BOPP and other flexible film-based manufacturing segment is estimated at around Rs 25 billion. The cost impact of PET film and BOPP film on the overall packaging cost ranges from 35-85% depending on the product to be packaged. The main players are Paper Products, Akar Group, Orient Press, India Foils, RT Packaging and Mukund Flex Pack. Akar Group consists of Akar Laminations, Sharp Industries and Vishnu Vijay Packagers. The overall growth rate of the industry has tapered off to around 9%. The flexible packaging industry is expected to grow at about 10-15% per annum in the coming years. The laminated products are growing at around 30% p.a. There are about 600-700 packaging machinery manufacturers, 95% of which are in the small and medium sector located all over India.

23

The top packaging companies of India includes Parksons Packaging System , ITC Limited , Hindalco , Tata Tinplate Company of India , Moldtek Technologies Limited , Gujarat Glass Ltd , Advance Packaging , AMAC Plastic Packaging, E C Packaging Pvt. Ltd, The Paper Products Limited.etc. The large and fast growing Indian middle class population and the growth of organized retail sector are the catalysts to growth in packaging. Packaging of essential products like food, beverage, milk, vegetable, food grains and pharma are the key driving segments because of the huge domestic consumption.

24

NEW TRENDS IN PACKAGING INDUSTRIES

The new trends and development are essential to the industrys bright future, the Indian Institute of Packaging, through the packaging companies, seeks to provide a perfect platform to bring the packaging industry under one roof. With this the industry has opportunity to connect at this highly specialized event where the issues of meeting the soaring demand for more sophisticated packaging together with the ever present need for increased productivity are addressed. Indian Packaging industry with a growth of more than 15% p.a. accounts for USD 14 Billion. This shows the immense potential in the industry. This growth is expected to be doubled in next two years and figures indicate towards a change in the industrial and consumer set up. Packaging today, has grown in importance and is regarded as vital marketing tool. It enhances product value and helps expand market within and outside country. The packaging industry can be characterized as global and fast growing industry. With a rapid growth in markets like Food, beverage, pharmaceutical, cosmetics and textile has provided momentum for the need of packaging as all these sectors need specialized packaging. Availability of most of the raw material in abundance that is required in packaging industry such as paper, plastic, board, glass, metal adds to the further growth of industry. International FoodTec 2010 - International exhibition on food processing & packaging technology, equipments and supplies. At the same time the other concurrent events viz. a high level International Packaging Conference & the National Awards for Excellence in Packaging will be organized by Indian Institute of Packaging.

25

JAPAN THE LARGEST PACKAGING MACHINE PRODUCER

Japanese packaging equipment made its first appearance in the 1910s when bottling machines for beer and canning machines for fish and meat were developed. But subsequent wars prevented manufacturers from developing other types of packaging equipment. It was 30 years later in 1947 when a caramel packaging machine was developed that the packaging machinery industry was beginning to take shape in Japan In the 1950s, various kinds of packaging equipment were developed including cigarette packaging machines, powder food and medicine pouch packaging machines, bagging machines for, among others, instant noodles, vacuum packaging machines, cartoning machines, tying machines and paper strapping machines. Packaging equipment continued to be developed in a wide variety in the following years. It may be said that the industry had built up its foundation in the 1960s. Japanese packaging machinery industry came to be known both at home and abroad during this period. Supermarkets made their debut in the mid-1960s and spread throughout the nation. Consumer goods including foodstuffs were sold in a "self-service" method in these stores, making it necessary to prepack them so that a customer can take them to a cashier by himself. Demand for packaging equipment soared as a result. Since, however, packaging machinery manufacturers hadn't have enough experience to satisfy all the requirements of end users, they positively tied up with the U.S and European manufacturers to raise their technical standards. The first oil crisis that hit the world's economy in 1973 forced Japan to enter a slow growth era, and a mass production method so far dominant in consumer good manufacturing gave way to a diversified small-quantity production method. In addition, consumers' needs became more diversified. As a result, the end users' demand for packaging equipment came to be focused on versatile machines capable of multiple types of packaging and also on the equipment manufactured according to their own specifications. The equipment made in technical cooperation with foreign manufacturers could no longer satisfy the needs of Japanese end users, and efforts to develop equipment capable of meeting their needs began in full swing. It was in the 1970s that Japan laid the

26

foundations for the present packaging machinery technologies. Representative among them are technologies for adopting microcomputer control to packaging equipment and a heat pipe to heat sealing devices. Japan is now one of the largest packaging machinery producers in the world. Her production, exports and imports of the equipment are as provided below.

27

LATEST BUZZ AND ISSUES OF PACKAGING

Second-tier cities become centre of packaging activity The rise in organized retailing in Indias second-tier cities made for a competitive packaging market in 2008. Companies like Hindustan Unilever Ltd, Procter & Gamble India Ltd, Nestl India Ltd, ITC Ltd, Coca-Cola India Ltd, PepsiCo India Ltd and Dabur India Ltd became very aggressive during the review period, and packaging became a big tool for launching new, India-specific products in different shapes and sizes. The review period witnessed a flux of partnerships and joint ventures, with many foreign packaging players entering the scene to gain a slice of the large pie. Alcan Packaging- part of Rio Tinto Alcan, Klockner Pentaplast Group (KP) - a German-based packaging solutions provider, Polish firm Can Pak and Bosch Packaging either announced new investments or disclosed plans for the expansion of their existing investments during the review period. Environmental concerns continue to hamper polymer-based packaging growth Environmental concerns are fast catching the attention of all the stake holders in the Indian packaging industry. The expansion of packaging as a profitable industry in India, dragged along by that of the retail and FMCG sectors, has brought with it environmental concerns. Organizations such as the Indian Centre for Plastics in the Environment were actively seen promoting awareness in this regard in order to promote the packaging industry and make people aware of the real concerns about the environment. The centre is the accredited body of The Ministry of Environment and Forests (MOEF) and undertook continuous awareness programs by publishing information on waste management materials, statistics, as well as going in to school and colleges and teaching people about the correct usage of polymer. Corporations were also seen to be making efforts to adapt greener technologies. Cost advantages make India a preferred packaging export hub Due to lower manufacturing costs, India is fast becoming a preferred hub for packaging production. The Indian packaging industry has made a mark with its exports that comprise flattened cans, printed sheets and components, crown cork, lug caps, plastic film laminates, craft paper, paper board and packaging machinery, while the imports include tinplate, lacquers, coating and lining compounds. In India, the fastest growing packaging segments are laminates and flexible packaging, especially PET and woven sacks. On the global scene ruled by the World Trade Organization, it is imperative for India to upgrade its packaging standards through innovative technologies in order to be on a par with the worlds best practice. Packaging labels must inform consumers about the ingredients of the product, the nutritional value, and the manufacturing and expiry dates of the products; something which is being made mandatory by the government. Almost all the major players were seen to expand their existing capabilities to tap into the fast growing export market for Indian packaging products. 28

Inflation and high oil prices eating in to the margins of packaging companies Many flexible and paper-based packaging manufacturers experienced difficulties relating to the rise in the cost of paper as well as high oil prices during the first half of 2008. The rising costs of paper reduced the margins of industry players. The Indian government announced a cut in the excise duty imposed on the finished goods from 12% to 8% in 2008, yet this was not sufficient saving for the industry that was badly reeling from the high production costs. The government, in the budget, reduced the excise duty on paper mills from 12% to 8%, which the paper manufacturers did not pass on to the customers. High oil prices during the first half of the year affected the businesses of polymer-based packaging providers who also found it tough to survive in the market

29

3. ATTACHMENTS

Here I would like to include one case study of a Packaging machine co mpany.

Microsoft Business Solutions Matrix Packaging Machinery


THE COMPANY Founded in 1988, Matrix Packaging Machinery is one of the world's leading manufacturers of vertical form-fill-seal packaging equipment for various manufacturing industries. Based in Saukville, Wisconsin, Matrix serves clients worldwide. THE BOTTOM LINE Matrix Packaging Machinery had already deployed Microsoft Business Solutions Solomon when it realized it needed to monitor its inventory and work in progress. Adding a work order module produced an incremental ROI by greatly speeding order times, supporting better inventory management, enabling more accurate and timely financial projections, and reducing financial personnel costs.

THE CHALLENGE In the late 1990s and early 2000s, Matrix was growing but faced several major challenges: Matrix was keeping track of thousands of parts on paper and had no way of knowing which parts were available and which needed to be ordered for the next production run. Without real-time knowledge of inventory levels and work in progress (WIP), Matrix could not close its books in a timely manner.

30

To gauge the past years profitability, the company had to conduct a complete physical inventory at the end of each year. In a slow-growth industry resistant to technological change, Matrixs managers realized that in order to increase efficiency and profitability, the company would need a system to monitor parts inventory levels and WIP.

THE STRATEGY

Matrix had deployed Microsoft Solomon ERP system in 1996 to support general corporate finance and accounting. In early 2001, Microsoft offered Matrix the opportunity to beta test a new work order management module for Matrixs existing Microsoft Solomon ERP system. Matrixs managers decided to consider the opportunity, realizing that because the software would tightly integrate with the accounting system in use since 1996, it could simultaneously solve both their inventory management and general ledger problems. Matrix conducted a beta test of the system, and decided to implement the work order module because of the following reasons: Once Matrixs entire parts inventory was entered into the system, the company would no longer need to rely on a pen and paper process to keep track of parts on hand and parts orders. With the inventory and bill of materials (BOM) software in place, Matrix could create a real-time WIP system to track parts inventory levels as the manufacturing line was running and as orders came in, giving the company a far more accurate timetable for potential customers. The work order software was customizable out of the box, with a minimum of outside consulting work. With these benefits in mind, Matrixs managers decided to purchase the work order module after the beta test was completed. The installation required a consultant and an IT employee working for one week and one week of training for one staff member.

31

KEY BENEFIT AREAS The deployment of the work order module quickly helped Matrix increase efficiency and visibility into its inventory, WIP, and finances. The greatest bottom-line returns were realized in the following areas: Increased sales. With real-time knowledge of its parts inventory and WIP, Matrix was able to reduce its order lead time to 1012 weeks. In fact, Matrix was able to complete some orders in a previously unheard-of three to four weeks. Because of its new ability to promise and deliver rapid order times, Matrix estimates that in the first year after the deployment, the company closed an additional 8 to 10 orders that would not have previously been possible. Matrix also enjoys far higher manufacturing productivity and sales per employee than its nearest competitor. Reduced personnel costs. Without the real-time financial information provided by the integrated accounting and inventory system, Matrix would have to hire one additional FTE to conduct financial analysis and other accounting tasks. Matrixs managers attribute the companys ability to run a leaner, more efficient operation directly to the Microsoft Solomon software and the work order module. Having only 35 employees and working in a mature industry, Matrix continues to enjoy a nearly 30 percent annual growth rate due almost entirely to its ability to deliver customengineered machines in a fraction of the time that it takes its competitors.

KEY COST AREAS Key costs included personnel, hardware, software, and consulting. Personnel made up the largest cost category, accounting for 78 percent of total project costs. This number is due mostly to the half of an FTE needed to enter inventory data into the system on an ongoing basis. Other cost areas included the initial one-week consulting engagement with a Microsoft developer, the license fee for the software, and a one-time hardware cost for servers and desktop PCs.

32

LESSONS LEARNED

Matrix reports that the deployment of the Microsoft Solomon work order management system was nearly flawless. Matrixs IT staff took advantage of Solomons customization manager and conducted much of the custom coding in-house without hiring consultants. Matrix attributes much of its success to its prior years of experience with the Solomon accounting software, though Matrixs managers suggest that if the order management module had been available when the company originally installed Solomon in 1996, they most likely would have implemented it then. In fact, according to Matrixs managers, the most significant lesson learned was that the company should have installed such a system far sooner.

CALCULATING THE ROI

Nucleus quantified the costs of software, hardware, consulting, personnel, training, and other investments over a 3-year period to quantify Matrixs total investment in the work order management software. Although the Solomon ERP system is necessary to support the work order module, the costs of deploying Solomon at Matrix were not included in the calculations because the deployment occurred many years earlier and was not driven by the project. Companies not already using the Microsoft Solomon ERP system and considering the ROI from the work order management module should include the costs of both Solomon and the work order management module in their evaluation. Direct benefits calculated in this report include profits from increased sales attributed to production line efficiencies that were a direct result of the work order system.

33

4. REFERENCES

INDIAN PHARMA REFERENCE GUIDE , 2010. Mumbai : Kong Posh Publications Pvt. Ltd.

PROCESSED FOODS AND BEVERAGES DIRECTORY 6 th edition , 2010 . Mumbai : Vinayak Ingredients Pvt. Ltd.

INFOMEDIA YELLOW PAGES BUSINESS , 2009-2010 Mumbai ,Infomedia 18

34

5. GLOSSARY

In the glossary section I would like to include some of the technical words used in the project and their explanations

i)

PURCHASE ORDER A purchase order (PO) is a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer. Sending a PO to a supplier constitutes a legal offer to buy products or services. Acceptance of a PO by a seller usually forms a one-off contract between the buyer and seller, so no contract exists until the PO is accepted.

ii)

CREDIT NOTE

A credit note or credit memorandum (memo) is a commercial document issued by a seller to a buyer. The seller usually issues a Credit Memo for the same or lower amount than the invoice, and then repays the money to the buyer or sets it off against a balance due from other transactions. A credit note lists the products, quantities and agreed prices for products or services the seller provided the buyer, but the buyer returned or did not receive. It may be issued in the case of damaged goods, errors or allowances. In respect of the previously issued invoice, a Credit Memo will reduce or eliminate the amount the buyer has to pay

iii)

INVOICE

An invoice or bill is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the buyer must pay the seller, according to the payment terms. The buyer has a maximum amount of days to pay these goods and are sometimes offered a discount if paid before. From the point of view of a seller, an invoice is a sales invoice. From the point of view of a buyer, an invoice is a purchase invoice. The document indicates the buyer and seller, but the term invoice indicates money is owed or owing. In English, the context of the term invoice is usually used to clarify its meaning, such as "We sent them an invoice" (they owe us money) or "We received an invoice from them" (we owe them money). 35

iv)

LETTER OF CREDIT

The LC can also be source of payment for a transaction, meaning that redeeming the letter of credit will pay an exporter. Letters of credit are used primarily in international trade transactions of significant value, for deals between a supplier in one country and a customer in another .The English name letter of credit derives from the French word accreditation, a power to do something, which in turn is derivative of the Latin word accreditivus, meaning trust. The Application any defence relating to the underlying contract of sale. This is as long as the seller performs their duties to an extent that meets the requirements contained in the LC.

36

You might also like