INDUSTRY IMMERSION PROJECT REPORT

at

R.K. PACKAGINGS

By

VIGNESH A

(20MBA175)

Under the guidance of

Mr. KANNAN V

A PROJECT REPORT

submitted

In partial fulfilment of the requirements

for the award of the degree

of

MASTER OF BUSINESS ADMINISTRATION

KUMARAGURU COLLEGE OF
TECHNOLOGY.

(An autonomous institution affiliated to Anna University, Chennai)

Coimbatore - 641 049

April 2021
 BONAFIDE CERTIFICATE

This to certify that this internship at “R.K.PACKAGINGS” is the bonafide work of

VIGNESH.A (20MBA175), who carried out the project under my supervision. Certified
further, that to the best of my knowledge the work reported herein does not form part of any
other project report or dissertation the body which a degree or award was conferred on an
earlier occasion on this or any other candidate.

Faculty guide Head of the Department

Mr. Kannan V
Assistant Professor-KCTBS.

Softcopy Submitted for the Project Viva-Voce examination held on

Internal Examiner I Internal Examiner II

(Signature with date) (Signature with date)
 Acknowledgment

I express my sincere and heartfelt gratitude to our Late Arutchelvar. N. Mahalingam and the
Management of Kumaraguru college of Technology- Business school, for their direction.

I recorded my indebted with happiness to our head of department, Mrs. Mary Cherian for the
guidance and
sustained encouragement for the successful completion of the project.

I wish to express my deep sense of gratitude to my project guide Mr. Kannan V Assistant
Professor, KCT- Business School, for his guidance and moral support throughout the project
duration from its inception to completion and making the project a success.

I thank Mr. K. Ragul, Manager, R.K.Packagings for his valuable guidance and motivation, to
complete the internship successfully.

I also extend my gratitude to all the faculty members and also my beloved parents for their
moral support in helping me in successful completion of this project.
COMPANAYCOMPLETIONLETTER
LOG SHEET (SCANED COPY TO ATTACHED)
c
 TABLE OF CONTENTS

CHAPTER CONTENT PAGE NO

1 Introduction
2 Industry profile
2.1 Industry Background
2.2 Market Size
2.3 Major Players
2.4 Government policies
2.5 Recent trends
2.6 Challenges & Opportunities
3 Company Profile
3.1 Organization History
3.2 Founders Vision, Mission & Values
3.3 Products and Services
3.4 Market Share
3.5 Organisation Strength & Weakness
4 Overview of functions
4.1 Marketing
4.1.1 Marketing Managers roles and responsibilities
4.1.2 Products and Product Policies
4.1.3 Pricing Policies
4.1.4 Distribution Structure
4.1.5 Advertising Policies and Procedure
4.1.6 Sales Promotion Activities
4.1.7 Marketing Research Activities
4.2 Finance
4.2.1 Sources of Capital
4.2.2 Role of finance Manager
4.2.3 Cost of Capital
4.2.4 Payment & Collection Procedure
4.2.5 Budgeting Method
4.2.6 Cash Management
4.2.7 Control Process
4.3 Human Resource
4.3.1 Role of HR Manager
4.3.2 Human Resource Planning
4.3.3 Recruitment & Selection
4.3.4 Training & Development
4.3.5 Career Planning & Development
4.3.6 Compensation Plan
4.3.7 Financial/ Non-Financial Incentive
4.3.8 Welfare benefits
4.3.9 Discipline administration
4.4 Production
4.4.1 Production Process

4.4.2 Receiving and Processing orders

4.4.3 Types of Production systems

4.4.4 Production Planning Procedures
4.4.5 Inventory Management
4.4.6 Record Keeping
4.4.7 Wastage Management
4.4.8 Quality control Techniques
4.4.9 Efficiency analysis
4.5 IT/System
4.5.1 Systems & Processes
4.5.2 Information Technology
4.5.3 Management of Information systems
4.5.4 Software’s used
5. Report on functional specific problem
6. Conclusion
1.INTRODUCTION:

As part of the one-week internship program which is a compulsory component in the first
semester of the MBA Program I got an opportunity to do the internship in R.K.PACKAGES.It is
situated in Tirupur. The company is the manufacturers of Corrugated boxes. Over whelming
demand of the customer forces the manufacturer to manufacture very strong corrugated boxes in
order to stand out in the competitive world. The boxes are made up of corrugated paperboard that
is different from the rigid paper called as cardboard. The boxes are used to hold things to protect
it from damaging and keeping it from leaking. Boxes are printed with important information on
them about what is inside or how to carry or move them. It is carefully designed to insert, hold
items in place so they won’t spill or be damaged. By visiting this company, it gave an insight
into all the functional departments and their managerial functions. The functions carried out in
the company were very well understood and the staffs were very patient enough to explain and
clear all the doubts regarding the functioning of the company.

Few main objectives of the industry immersion program are as

Follows:

 To know the functions and purpose of various departments in the

company.
 To find out any issues in any of the functional departments and rectify
it with the best possible learning and knowledge to the benefit of the
company.
 To learn practically from Industry people.

2.INDUSTRY PROFILE:

2.1INDUSTRY BACKGROUND:

The first commercial paperboard (not corrugated) box is sometimes credited to the firm M.
Treverton & Son in England in 1817. Cardboard box packaging was made the same year in
Germany.
The Scottish-born Robert Gair invented the pre-cut cardboard or paperboard box in 1890 –
flat pieces manufactured in bulk that folded into boxes. Gair's invention came about as a
result of an accident: he was a Brooklyn printer and paper-bag maker during the 1870s, and
one day, while he was printing an order of seed bags, a metal ruler normally used to crease
bags shifted in position and cut them. Gair discovered that by cutting and creasing in one
operation he could make prefabricated paperboard boxes. Applying this idea to corrugated
boxboard was a straightforward development when the material became available around the
turn of the twentieth century.
Cardboard boxes were developed in France about 1840 for transporting the Bombyx
mori moth and its eggs by silk manufacturers, and for more than a century the manufacture of
cardboard boxes was a major industry in the Valera’s area.

The advent of lightweight flaked cereals increased the use of cardboard boxes. The first to
use cardboard boxes as cereal cartons was the Kellogg Company.
Corrugated (also called pleated) paper was patented in England in 1856, and used as a liner
for tall hats, but corrugated boxboard was not patented and used as a shipping material until
20 December 1871. The patent was issued to Albert Jones of New York City for single-sided
(single-face) corrugated board. Jones used the corrugated board for wrapping bottles and
glass lantern chimneys. The first machine for producing large quantities of corrugated board
was built in 1874 by G. Smyth, and in the same year Oliver Long improved upon Jones
design by inventing corrugated board with liner sheets on both sides. This was corrugated
cardboard as we know it today.
The first corrugated cardboard box manufactured in the US was in 1895. By the early 1900s,
wooden crates and boxes were being replaced by corrugated paper shipping cartons.

2.2 MARKET SIZE:

According to the Indian Packaging Institute, Indian Packaging industry is USD 14 billion and
growing at more than 15% p.a. These figures indicate towards a change in the industrial and
consumer set up. The flexible packaging segment is estimated to be growing at over 35 percent
annually. India is the 7th largest producer of corrugated material in the world and is expected to
be the 4th largest by 2022. After china, India is estimated to account for the largest share of
incremental corrugated output in the future. As per International corrugated case Association,
India has the potential to become one of the largest corrugated markets based on its size and
economic growth. Key drivers for the sector in India include growth in end user segments like
FMCG, consumers durables and pharmaceuticals rise of organised retail and e-commerce,
increasing exports etc. India is expected to emerge as one of the largest producers of corrugated
packaging material in the future and the fact that many corrugators plat ho boost production
capacity by adding automatic machineries from china, there is huge source of or Chinese
corrugated machinery and accessories manufactures in India.

This company has occupied 40% of local distribution and 20% of market size all over tamilnadu.

2.3 MAJOR PLAYERS

The major players in Corrugated production in India are

  Canpac Trends Pvt.Ltd.
 Multi Pack
 Hariwansh Packaging Pvt Ltd
 Trident Paper Box Industries
 Kapco

2.4 GOVERNMENT POLICIES AND REGULATIONS:

Below are the list of government policies and regulations that are being followed at
R.K.Packagings

S.NO Government Policy

1. ISO3035:2011, Corrugated fibreboard –Determination of flat crush resistance

2. ISO3037:2013,Corrugated fibreboard- Determination of edgewise crush
resistance (unwaxed edge method)
3. ISO 7263:2011, Corrugated medium-Determination of the flat crush
resistance after laboratory fluting
4. ISO 12192:2011, Paper and board-Determination of Compressive strength-
Ring crush method.

Table 1 Government Policies followed at R.K. PACKAGINGS

2.5 RECENT TRENDS IN THE INDUSTRY:

 E-commerce: The increasingly complex logistics chain for direct to consumer

delivery – e-commerce packages are expected to be handled up to 20 times or more
during standard distribution – means there is new demand for cost-effective
secondary corrugated board packaging.  
 Fit-to-Product: This technology enables the production of customised secondary
packaging based on the exact size of the product being packed, including irregular
shapes. For the end-user this eliminates the need for large inventories of standard-
sized boxes which often require copious amounts of filler material.
 Sustainability: Corrugated board is proving popular in packaging as sustainability
becomes a more important issue across the value chain – it is easy to recycle and
the pulp and paper industry is already adept at converting these into new
generations of containerboard. These qualities mean there has been a rise in
 popularity of corrugated protective formats over polymer based alternatives, such
as expanded polystyrene (EPS) foams.
 Digital Printing Advancements: The flexibility of run-lengths, savings in set-up
costs, the ability to personalise either relating to brands, regions, stores or
individuals, and the level of quality now available through the latest technologies
all combine to create a ‘perfect storm’ of growth opportunities for converters and
printers.

2.6 CHALLENGES OF THE INDUSTRY:

Some of the typical business tasks faced by Corrugated box production company are:

 Rise in price of Raw Material

 Rapid Change in Technology
 Costly Skilled Manpower
 Quality C heck.

3. COMPANY PROFILE:

3.1 ORGANISATION HISTORY:

R.K.Packagings is an Indian brand of Corrugated box manufacturers which was formed in 2004
by Mr. Shanmugam V n. The Company is well known for its Corrugated box manufacturing.
Over the years the company has enlarged its customer base and now supplies to most of the
cities, villages, etc. The Company’s net sales for the year was Rs, 5 Million. The Company’s per
day sales was 25000rs. The company occupies 40% market position in its surrounding areas. The
company is paying 18% GST per month. TheCompany has grown very well and its ranking #1
Corrugated box manufacturing in Tirupur. Please refer the below image that clearly explains the
growth of R.K.Packagings.

10

20
40

30
3.2 FOUNDERS VISION, MISSION AND VALUES:

FOUNDER:

R.K.Packagings was found by Mr.V.Shanmugam. He continued to be the C.E.O. of the

company till today.

VISION 2020:

To become a supplier of choice for our customers for supply of corrugated boxes.

MISSION:

To be a preferred supplier of corrugated boxes . To supply cost competitive, high quality

corrugated box to meet customer requirements through involvement of Employees and Suppliers
through use of contemporary technology.

VALUES:

Innovation Forward thinking, planning and execution to expand our horizons.

Passion Enthusiasm, desire and commitment to succeed.

Quality Service and quality and thickness we proud to stand behind.

Thrive Commitment to growth and prosperity to affect our customer’s success.

3.3 PRODUCT AND SERVICES:

The Company products include,

 8*8*8 inches
 10*10*12 inches
 12*12*18 inches
 14*8*6 inches
 14*14*14 inches

3.4 MARKET SHARE:

R.K.Packagings claims that it holds 40% of the local market in corrugated production. During
the discussion we came to know that R.K.Packagings ranks #1 by quality range and #2 by sales
in the market.

3.5 ORGANISATION STRENGTH AND WEAKNESS:

STRENGTHS
Weakness
1. Established Brand Name
1. Distribution Method
2. Good quality Products
2. Climatic change.
3. Innovation
4. Market Share

R.K.

PACKAGINGS

THREATS

OPPORTUNITY Cost Reduction Programs to advance in

alternate design and reusable systems.
It has the ability to expand to the
various locations across the global Extended procedure responsibility.
market to get high market revenues
and profits

4. OVERVIEW OF FUNCTIONS:

4.1 MARKETING:

4.1.1 MARKETING MANAGERS ROLES AND RESPONSIBILITIES:

 The marketing manager will clearly analyse and understand the business objectives
and he will develop a market plan for the company.
 Decide on pricing and promotional discounts based on customer requests.
 Prediction of sales for the current outgoing sales through various prediction
methods.
 Identify and approach potential customers for sales.
  Continuously monitor the production of received orders through daily meetings so
as to satisfy the customers through quality and prompt delivery.

4.1.2 PRODUCTS AND PRODUCT POLICIES:

PRODUCTS:

 Corrugated box

PRODUCT POLICIES:

Customer satisfaction and delight is the most important goals of R.K.Packagings while
complying to quality, value and innovation.

4.1.3 PRICING POLICIES:

The pricing is done according to the price of raw materials, labour cost and cost of
manufacturing, the priced to reasonable margin of profit.

4.1.4 SEASONAL PRODUCTION:

 December to May – peak season

4.1.5 ADVERTISING POLICIES AND PROCEDURE:

R.K.Packagings doesn’t have any dedicated policies for Advertisements. Most advertisements
are carried through newspapers and local channel advertisement in case of recruitments. They
will tell about their company to their well-known dealers, relatives and friends and they will get
order and they will supply to them.

4.1.6 SALES PROMOTION ACTIVITIES:

 As stated in the roles of Marketing Managers, the company promotes its product through
business events such as exhibitions, channel promotions, political meetings etc. A special
contract based promotional discount is given for newly signed contracts by default and existing
contracts based on request. In case of requests, the decision of providing discount is vested in the
hands of Marketing Manager and higher authorities.

4.1.7 MARKETING RESEARCH ACTIVITIES:

Since it is big production company, the company has shown a keen interest towards ever
changing needs of customers. The company is well informed about the new additions in product
line up of the clients that involves existing technologies as well as their planned launch of new
products. Based on the research they have identified that their new products could have
potential demand in near future, such as

 Exact Dimension Boxes

 High Quality Printed boxes

4.2 FINANCE:

4.2.1 SOURCES OF CAPITAL:

Through the interaction we found that, the sources of capitals are

 Bank Loans
 Investments
 Equity share capital

The company has not made any public offerings in any recent times.

4.2.2 ROLE OF FINANCE MANAGER:

The role of Finance Manager at R.K.Packagings is provided below

 Raising of funds when needed

 Allocation of funds
 Profit Planning
 Observe Capital markets etc.,
 Monitor money flow
 Monitor collections
  Manage debts

4.2.3 COST OF CAPITAL:

The company’s capital stands at Rs, 40 lakhs and has 50% paid-up capital which is Rs,20
lakhs.The company has conducted last annual meet on 19 March,2021. From the financial report
we have identified that the total liability is less than the total capital of capital. By seeing this we
can decide that the company is safe from financial point of view.

4.2.4 PAYMENT AND COLLECTION PROCEDURE:

Both payments and collections are handled through either cheque or online transaction
depending upon the location of the party. The department initiates the transaction post the signed
off receipt challan that will be provided/received during the inbound or outbound activity.

4.2.5 BUDGETING METHOD:

We know that there are 4 main types of budgeting.

⮚ Incremental
⮚ Activity Based
⮚ Value Proposition
⮚ Zero Based

The preference of choosing any of the above methods is purely based on the annual meeting for
the board of directors. The budget is usually prepared based on the target for the financial year.
The financial representative from R.K.Packagings feels that, it is difficult to stick to just one
method and they had to decide the method based on situations only.

4.2.6 CASH MANAGEMENT:

4.2.7 CONTROL PROCESS:
4.3 HUMAN RESOURCE:

4.3.1 ROLE OF HR MANAGER:

 Preparing of competency matrix.

 Recruitment of Staffs.
 Measuring the performance of the steps.
 Preparation of skill matrix.
  Identification of the training needs.
 Preparing the training schedule.

4.3.2 HUMAN RESOURCE PLANNING:

4.3.3 RECRUITMENT AND SELECTION:

If there is any any vacancy in the company then the HR manager post a job vacancy
requirement through either external or internal source. If any candidate is found to have satisfied
the require skill set then the candidate is called for the interview. There will be two process in the
interview. The will be two rounds in the interview. One is Technical round. The candidates who
are qualified in the technical round will move to the last round which is a personal interview
round. The candidates who are all passing the personal interview round will be appointed by the
company

4.3.4 TRAINING AND DEVELOPMENT:

Please find the information on Training provided for newly joined employees in the below
table:

ROLE INDUCTION TRAINING DURATION

PERIOD METHOD
Staff- Office 6 days On the job 40 days
On the floor training 50 days
Technical 5 days with weekly
assessment.
 Apprentice 6 days On the floor training 90 days
with weekly
assessment
Casual Labours 10 days On the job 60 days

The duration of training provided in the above table is flexible for the experienced employees
under the grades of Staff and Technician. They are also encouraged to attend programmes
organised by well-established external agencies to constantly upgrade their skills, acquire
flexibility for handling sophisticated equipment, learn modalities of modern technologies in the
area of designing production, quality and customer service. A portion of the representatives are
additionally sent to the colleagues works for hands on preparing and to adapt new generation
strategies, innovation enhancements and are made to embrace them on their return.

4.3.5 CAREER PLANNING AND DEVELOPMENT:

At R.K.Packagings career planning and development is pre-included in Performance appraisal

cycle. Learning is assigned as one of the appraisal cycle. All employees under staff category are
expected to set goals on learning, which has to be completed before the cycle. An analysis of key
Learning areas are performed and Plans are charted for training, after which the resources are
assigned for learning. In-case of any high cost certification requested by the employee, a bond
has to be signed with R.K.Packagings ages for extension of contract for the period of two years.

Below flowchart explains the career development and training process at R.K.Packagings.
4.3.6 COMPENSATION PLAN:
4.3.7 FINANCIAL/NON-FINANCIAL INCENTIVE:

As per the norms, the employees are paid Diwali bonus ranging from 15% to 30% on basic
salary. When employee work over time they will get incentive which is financial also when
employees bought big orders to the company, they will be paid some incentives which is non-
financial.

4.3.8 WELFARE BENEFITS:

The employees of R.K.Packagings are entitled to receive Welfare benefits such as

●Free food on all working days

●Medical assistance to the employee and immediate family members

●Various Employee assistance programmes

●Dedicated Lounge for men and women in case of sickness

●Well supervised Security service for female employees

●Transport facilities at cheaper rates from Erode.

●Educational assistance to the children of Employees

●Training/Learning on request

●Mandatory schemes such as EPF/CPF

4.3.9DISCIPLINE ADMINISTRATION:

Discipline administration is directly vested in the hands of HR department. The company

has zero tolerance towards any deviation in discipline and equality is upheld irrespective
of gender or any form of difference. Below are some of the disciplinary policies shared by
the HR team.

⮚ Uninformed absenteeism for a period of 3 days would lead to enquiry

followed by strict action.
⮚ Workplace relationship is strongly forbidden inside the factory premises.
⮚ Any proved case of harassment against female employees would result
in immediate termination.
⮚ An employee should strictly adhere to formal dress code shared during
induction. Any deviation is not entertained for both workers and staffs.
⮚ Multiple late punches for morning login would attract a strict penalty and
enquiry.

4.4 PRODUCTION:
 As discussed earlier, R.K.Packagings is involved in manufacturing corrugated box
production it has

some machines for the production. They are

 Corrugation
 Printing
 Die-Cutting
 Stitching
 Gluing

4.4.1 PRODUCTION PROCESS:

Raw Material

Paper Roll

Glue

Corrugation Machine

Corrugation Board

Flexo Print and Slotter

 Slitter Machine

Manual Slotting

Manual Print

Die Cutting.

GUM Pasting and Stitching

Banding and Finished

Carton.
4.4.2 RECEIVING AND PROCESSING ORDERS:

The orders are usually received through sales team and uploaded into the system. The sales team
then sends a formal mail to all the department heads. In case of regular orders, The production is
scheduled directly by department and requests are sent to material team for procurement of raw
materials , However for new contract or a new order, a separate set of internal procedures has to
be followed which involves multiple meetings and analysis between R&D department, Clients
and all the corresponding stakeholders.

4.4.3 TYPES OF PRODUCTION SYSTEM:

We know that there are four types of production systems such as

⮚ Continuous Production
⮚ Mass Production
⮚ Batch Production
⮚ Job-Shop production

The machines on the shop floor are arranged in the combination of both Continuous production
and Batch production. Majority of the machines like Corrugation machine, Die-Cutting, glue
machines are arranged in a continuous production system model.
4.4.4 PRODUCTION PLANNING PROCEDURES:
Please refer the below flowchart that contains the various steps in production planning
at R.K.Packagings

Order reception Calculate duration List out process

Schedule
production and Check for Layout change Check the present schedule
send out mail

Carry out
Closure of order
production
4.4.5 INVENTORY MANAGEMENT:

R.K.Packagings follows continuous production system. So the corrugated box is supplied

immediately once they receive the payment from their customers.

4.4.6 RECORD KEEPING:

At R.K.Packagings all manufacturing and technical records are strictly maintained

online to avoid data loss. The data is stored either in the company’s ERP system or with
the personnel’s space depending on the degree of importance of the information.

4.4.7 WASTE MANAGEMENT:

The company will give damaged carton box, damaged excessive corrugated sheets as
waste. These things will be given to the person for money who is buying wastes for rent.
He will convert this waste product into a new product.

4.4.8 QUALITY CONTROL TECHNIQUES:

We are aware of the various quality control techniques that can be used in a production
unit such as

⮚Pareto Chart and Pareto Analysis

⮚Run Charts
⮚Control Charts
⮚Flow-Charting
 ⮚Histogram
⮚Scatter Diagrams
⮚Statistical Sampling
⮚Inspection
⮚Cause and Effect Diagrams
However with SQL software, the Quality team uses the measurement data
simulate all the graphs and charts to arrive at a decision on Quality control.

4.4.9 EFFICIENCY ANALYSIS:

Efficiency analysis gives the level of a company’s performance at various levels. The
only information we could get in that aspect is, the data is retrieved from the central
database of SQL Software that are being used at R.K.Packagings. Analysis and the
decision is vested at the hands of department heads and efficiency is decided by them.

4.5 IT/SYSTEM:

4.5.1 SYSTEMS AND PROCESSES:

4.5.2 INFORMATION TECHNOLOGY:

Since the company uses SQL software it requires internal servers and dedicated
databases for the functionality of the same. The company has a dedicated SQL room
which holds all the hardware elements of IT infrastructure. A separate IT Personnel is
available for maintenance and support. In addition to the Infra support staffs, the
company has also got programmers to burn the logics into the chips of products that
require logic functionality.

4.5.3 MANAGEMENT OF INFORMATION SYSTEM:

Management Information System or MIS refers to a computer based system that

provided sensitive and non-sensitive information to the managers to help them arrive at
various managerial decisions. The company’s version of SQL holds all the information
related to finance, production, sales etc., Therefore it mutually acts as MIS. However
this data is not available to all the employees. A separate access right is set for each and
every band of employee level and only privileged employees can access such sensitive
information.

4.5.4 SOFTWARE’S USED:

R.K.Packagings uses SQL software. The purpose of this software is administering,

updating, maintaining and manipulating the databases or tables for company’s decision-
making.

5. REPORT ON FUNCTIONAL SPECIFIC PROBLEM:

We have identified a few problems that could be possibly implemented at

R.K.Packagings for betterment of the company.

S.NO PROBLEM TYPE SOLUTION

1. Congested Potential safety Increasing spacing between machines

arrangement of hazards
machines

2. Workers not using Potential safety Allocate penalty for non-compliance

PPE hazard

3. Communication loss Potential Creating agile workforce enables everyone

financial loss in the company to be aware of happenings
 in the company

6. CONCLUSION:

The R.K.Packagings is growing on a constant rate and this is because of their strength in
understanding the market conditions. They also understood the competition and reacts to the
competition immediately. From their success we can learn that it is important to survive in the
market rather than making higher profit, because surviving in the market gives them one more
opportunity to earn. This one-week industrial training gave me a better understanding of how
an organisation will perform. It gave an exposure to all the departments in the company and their
basic function for the smooth running of the company. The industry persons also provided
good knowledge and their time too. It gave me an opportunity to apply my theoretical
knowledge practically on the industry.