Download as pdf or txt
Download as pdf or txt
You are on page 1of 81

A REPORT ON AN

ORGANISATIONAL STUDY
AT INDIGO PAINTS LTD,
KOCHI

SUBMITTED TO KANNUR UNIVERSITY

in partial fulfillment of the requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

ANITA JOSE
Reg. No. C1GMBA3030

Under the guidance of

DR. FR. GENIMON V JOSEPH


PRINCIPAL

VIMAL JYOTHI
INSTITUTE OF MANAGEMENT &
RESEARCH CHEMPERI, KANNUR – 670 632

2021-2023
DECLARATION

I, Anita Jose, third semester MBA student of Vimal Jyothi Institute of Management and

Research (VJIM) Chemperi, Kannur hereby declare that the report titled “A REPORT

ON AN ORGANIZATIONAL STUDY AT INDIGO PAINTS LTD, KOCHI” has

been prepared by me under the guidance and supervision of Dr. Fr. Genimon V Joseph,

Principal, VJIM and submitted to Kannur University, in partial fulfillment of the

requirement for the award of the degree of Master of Business Administration.

I further declare that this report has not been previously submitted to any institute or

University for the award of any Degree/Diploma, Fellowship or other similar title.

Place: Chemperi Anita Jose

Date: Reg No: C1GMBA3030


ACKNOWLEDGEMENT

I take this opportunity to express my profound sense of gratitude to all those who helped

me in completing this study.

First of all, I thank God Almighty for enabling me to complete this organizational study

successfully. I am deeply indebted to Dr. Fr. Genimon V Joseph, Principle of Vimal

Jyothi Institute of Management & Research, Chemperi for providing his valuable

guidance, assistance, encouragement and creative suggestions in the preparation of this

work.

I extend my sincere gratitude to Mr. Madhu T K, HR Manager, Indigo Paints Ltd,

Kochi, who gave permission to do organizational study and supported me by sharing

information about company.

I would like to express profound gratitude to my company guide Mr. Karthik Ajay,

Assistant Planning Manager, for his encouragement and helping hand extended tome

this project work, and all staff of different departments in the company, without their

support I would not have been able to complete this study.

Finally, I express my humble gratitude to my friends, family and others for their

encouragement and support given to me.

ANITA JOSE
EXECUTIVE SUMMARY

As per the norms of the Kannur University for the fulfilment for the partial of the

requirement for the award of Master of Business Administration, I had undertaken an

Organization Study at INDIGO PAINTS LTD, KOCHI for a period of 30 days.

I had the opportunity to meet the employees of various departments for the considerable

time duration, which helped me to gain insight about the type of work they do and study

the role and functions of each department in the organization.

The report is an endeavor to cover the overall organizational structure, departments,

procedures and functions of the organization and cover the industry profile and

company profile with their objective that the company have. The report features the

SWOT analysis of the organization.

This learning experience is described in detail in the various sections of this report. The

organization structure and the details of its management along with its location are

discussed in this report. The report discusses about the working of the company and the

important departments of the company. Finally, the overall observations and

recommendations are discussed in the report.


TABLE OF CONTENTS

CHAPTER
NO. TITLE PAGE NO

INTRODUCTION 1-4
1.1 Introduction to the Study 1
1.2 Significance of the Study 2
1 1.3 Objectives of the Study 2
1.4 Methodology of the Study 3
1.5 Chapter Schemes 4
1.6 Limitations of the Study 4
PROFILE OF THE INDUSTRY 5-9
2.1 Industry at a Glance 5
2 2.2 Global Scenario 6
2.3 National Scenario 7
2.4 State Scenario 8
PROFILE OF THE ORGANIZATION 10-59
3.1 Company Profile 10
3 3.2 Product Profile 15
3.3 Organizational Structure 19
3.4 Departmentalization 21
DATA ANALYSIS AND
60-62
INTERPRETATION
4
4.1 Swot Analysis 62
FINDINGS, RECOMMENDATIONS &
63-65
CONCLUSION
5.1 Findings 63
5 5.2 Recommendation 64
5.3 Conclusion 65
ANNEXURES
Interview Schedule
Bibliography
LIST OF TABLES

TABLE NO. TITLE PAGE NO.

3.1 Director Board of Indigo Paints 20

LIST OF FIGURES

FIGURE PAGE
TITLE
NO NO

2.1 Flow Chart of Indian Paint Industry 8

3.1 Organizational Structure 19

3.2 Structure of Functional Department 22

3.3 Structure of Marketing Department 32

3.4 Flow Chart showing Responsibilities of HR Manager 39

3.5 Structure of Finance Department 44

3.6 Structure of Material Department 49

3.7 Flow Chart of Production Process 51

3.8 Department Structure of Production 54

3.9 Flow Chart of Steps in ETP 55

3.10 Structure of QC And R&D Department 58


CHAPTER- 1

INTRODUCTION
CHAPTER- 1

INTRODUCTION

1.1 INTRODUCTION TO THE STUDY

The world of business is changing very fast, and it is clear that the theoretical

knowledge alone will not fulfill the needs of business school students. For a

management student it is very important to know the activities of any business. In view

of this MBA course provides an opportunity to expose the student to an industry and its

operational condition.

The Organizational study is intended to acquire the knowledge regarding the functional

as well as the management aspects of the Indigo Paints Ltd, Kochi. An organization is

an entity such as an institution or an association that has a collective goal and is linked

to an external environment. All organizations have a management structure that

determines relationship between different activities and the members and subdivides

and assigns roles, responsibilities and authority to carryout different tasks. Organization

study aims to get awareness about organizational setup and its operations. It is

conducted mainly to get familiar with the functioning of different departments and

related areas associated with an organization to support its activities. It is really meant

to get an overall picture about the industry about the industry as well as the particular

organization’s presence in the market. Organization studies are the examination of how

individuals construct organizational structures, processes and practices and how these

activities in turn shape social relations and create instructions that ultimately influence

people.

Organizational study is an interdisciplinary concentration program, emphasizing the

influence of economic, psychological, political, social and other factors on individuals


and other complex organizational systems. The field is extremely concerned with how

an organizational system functions, their effects on individuals and larger society with

the process of organizational change and its operations and how these different

departments coordinate to work.

The study conducted in Indigo Paints Limited helps to analyze its functional

departments successfully to achieve its objectives. The study also provides information

about its history, evolution and incorporation details and analysis of present

performance. And finally, t tries to put forward some suggestions to establish a future

vision for the company.

1.2 SIGNIFICANCE OF THE STUDY

An organization is a system in which different facilitate management of day-to-day

operations of the organizations in an effective manner. Departmentalization is helpful

in classification and distribution of work, which actually leads to effectiveness in

business operations without overlapping of business activities. It also enables in

defining the authority and responsibility of each individual who are working in an

organization for the achievement of the ultimate goal of the organization. Usually in a

business organization, we can see a number of departments working for the

organization. It includes Finance department, Marketing department, Human Resource

departments, Production department, OC and R&D department to analyze their

effectiveness in the organization. This study is significant as it aims to gather

information about the organization structure, its departmentalization, communication

in different levels and to get practical exposure about the production organization.

1.3 OBJECTIVES OF THE STUDY

• To study the organizational structure and its functioning.

• To understand the functioning of each department.


Indigo Paints Ltd.

• To perform SWOT Analysis.

• To provide necessary suggestions based on the findings of the study.

• To familiarize with organization functioning.

1.4 METHODOLOGY OF THE STUDY

This study was a descriptive study conducted mainly to familiarize with the activities,

process, procedures etc. followed by the firm. Methodology is the systematic,

theoretical analysis of the methods applied to a field of study. An important aspect of

methodology is data collection. The data required for study are collected through

primary and secondary data within the time period 30 days.

1.4.1 Data Collection Method

Primary and secondary data were used for this organizational study. Both primary and

secondary data were collected. Direct observation is used to understand the production

process.

1.4.1.1 Primary Data

Primary data is collected from managerial personals and office staff and workers of the

company by using an interview schedule.

1.4.1.2 Secondary Data

Secondary data were collected from annual reports, company manuals, website and

other relevant documents and from different textbooks.

1.4.2 Tools Used

• Interview Schedule

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 4


Indigo Paints Ltd.

1.5 CHAPTER SCHEME

Chapter 1: Introduction

Introduction chapter gives an idea about the organization where the study has

conducted,

significance of the study, the methodology of the study, objectives and limitation.

Chapter 2: Profile of The Industry

This chapter gives over all view about the manufacturing of paint industries and its

growth from to time to time.

Chapter 3: Profile of The Industry

This chapter gives the history, growth, objectives and other activities of Indigo Paints

and also gives the details about the different functional departments in the organization

and its functioning.

Chapter 4: Data Analysis and Interpretation

SWOT Analysis reveals the present position of the organization. It is the assessment of

strength, opportunities, weakness and threats faced by the company.

Chapter 5: Findings, Recommendations and Conclusion

This chapter shows the findings, recommendations and conclusions about the

organizational study conducted in the Indigo Paints Ltd.

1.6 LIMITATIONS OF THE STUDY

The study has certain limitations. They are:

• As the study is aimed to familiarize the organization, more emphasis was given

observation and familiarization of the process.

• A detailed study was not done due to time schedule constrains.

• The study was mainly based on secondary data.

• Confidential information is not included in the study report.

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 5


Indigo Paints Ltd.

CHAPTER 2

PROFILE OF THE INDUSTRY

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 6


Indigo Paints Ltd.

CHAPTER 2

PROFILE OF THE INDUSTRY

2.1 INDUSTRY AT A GLANCE

Color has fascinated culture throughout history, every age and every region has

produced dyes and pigment depending on the available resources. Color has been with

us for more than 20,000 years. The evidence can be found in the cave paintings. The

tradition of painting in Indian subcontinent grew and developed overtime, resulting in

a fully developed and finest style, incorporating the culture and faith of the region and

religion. The history of Indian paint industry is old as the history of the Indian people.

Indian paints always embrace rich colors and clear symbolism, using specific

iconography to make religious figures clearly recognizable.

The Indian paint industry has recently completed 100 years of manufacturing.

Manufacturing of Indian paints started around 1902. The Indian paint industry has seen

a gradual shift in the preferences of people from the traditional whitewash to higher

quality paints like emulsions and enamel paints. Growing popularity of new variants

providing improved finishing and textures, increasing per capita income of people and

efforts on the part of manufacturers to introduce improved version like eco-friendly,

odor free and dust and water-resistant paints, have propelled the growth of the paint

market in India. Efforts on the part of the manufacturers to introduce innovative

technologies in the paint maket have led to a growth in demand for paints in India. Paint

manufacturers are giving due attention to consumers Color preferences. The market is

witnessing introduction of breakthrough technologies to improve the paint quality.

Paint companies are also increasingly investing in their R&D, to carve out a

differentiated product in the market.

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 7


Indigo Paints Ltd.

Over the past few years, the Indian paint market has substantially grown and caught the

attention of many international players. The growth in the market is driven by

emergence of the middleclass in India, growing infrastructure, increase in the tendency

to spend and growing young population inclined towards lavish lifestyle. The country

continues to enjoy a healthy growth rate compared to other economies, backed by the

increased level of disposable income, and demand from infrastructure, industrial and

automotive sectors. Indian paint industry has two types: Decorative and Industrial

Paints. Decorative paint market has been further segmented into emulsions, enamel,

distemper and cement paints. Similarly, Industrial paint market is also segmented into

automotive coatings, high performance coating, powder coating and oil coating.

2.2 GLOBAL SCENARIO

The global paints and coatings market is expected to grow from 211.9 billion in 2021

to 230.22 billion in 2022 at a compound annual growth rate of 8.6%. the market is

expected to grow to 311.47 billion in 2026 at a CAGR of 7.8%. the regions covered in

the paints and coatings report are Asia -Pacific, Western Europe, Eastern Europe, North

America, South America, Middle East and Africa. There is a rapid growth in the

consumption of paints and coatings in many industries. Paints and coatings are widely

used in the automotive, construction and manufacturing industries. For instance, the

global buildings construction market is expected to increase from 6.6 trillion in 2019 to

8.4 trillion in 2022.

Decorative paints and coatings are widely used in buildings and construction whereas

protective paints and coatings are linked closely to the automotive, major appliance and

industrial equipment industries. Therefore, growth in end-user industries is expected to

drive the paints and coatings market during the forecast period.

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 8


Indigo Paints Ltd.

Biocides are being used in paints to enhance their longevity and to maintain their

quality. Biocide additives have been designed to protect paints from getting damaged

during storage or to keep fungi and algae from growing on the applied paints. The

market for biocides in paints will continue to grow due to the switch from solvent-based

to water-based paints as they are not hazardous for human health and the environment

and minimize fungal and algae growth.

2.3 NATIONAL SCENARIO

Foundation for paint was laid in the year 1902 with the setting up of Shalimar Paint in

Calcutta. It was during and after the World War II. That large number of paint

manufacturing units was set up in India. Since, then the Indian paint industry has made

substantial progress. The paint industry has come to the recognition as an important

sector in the national economy in producing industrial coating and decorative paints.

Decorative paints available in wide range of combination account for 70% of the

coatings total production. While industrial paints share the balance of 30%. This rate is

diametrically opposite to the trend in the industrialized countries where industrial paints

account for 70% and decorative paints for the balance of 30%. With paints majors

shifting their focus from decorative to technology-intensive industrial paints and also

venturing into unexploited rural markets, the paint industry is headed for good times.

The countries per capita consumption of paints at 0.32 kg is a fraction of the world

average at 21 kg. while developed nations like USA, Japan etc. have per capita

consumption in excess of 20kg. even developing nations like Taiwan and Philippines

have higher per capita consumption than India. Such a low level is mainly due to poor

awareness about preservation of assets in India. With increasing disposable income,

this figure is bound to go up which is good news for paint companies as it implies higher

demand for their products. However, it also needs to be noted to be noted that

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 9


Indigo Paints Ltd.

consumption patterns across nations cannot be exactly compared. The per capita

consumption of paints in India is significantly lower than developed countries such as

USA, UK, Japan etc.

Indian Paint Industry

Decorative Segment Industrial Segment

Premium Medium Distemper Automotive Consumer


Range Range Range Sector Durables

Metros Small Sub urban


and large cities and rural
cities areas

Figure 2.1: Flow Chart of Indian Paint Industry Segments.

(Source: Company Records of Financial Year 2020)

2.4 STATE SCENARIO

The number of small-scale units in the state had considerably increased in the last few

years particularly due to high per capita consumption of paints in Kerala, which is four

times ahead of the national average, according to Mr. M.T. Antony, former chairman,

Indian small scale paint association, Kerala Region. According to him, by resolving the

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 10


Indigo Paints Ltd.

intrinsic problems faced by the paint sector, the scope for expansion of the sector can

be fully realized.

The national average was about 0.25 kgs whereas the per-capita consumption in Kerala

was 1 kg. at present, there were about 150 units in the state providing employment to

2500 people. Out of the total market share of Rs. 275 crores, the contribution from the

organized sector was Rs. 200 crores (73%) while the share of SSI sector was up to Rs.

75 crores (27%). From the large number of new entrants into the field every year, it

should be presumed that the small-scale sector was willing to face the unfriendly labor

situation and other negative factors in the state. Though major paint companies in the

country command good market in Kerala, none of these companies had venture to start

a large-scale paint manufacturing unit due to various adverse conditions. Some of the

factors which failed to attract big industries in the State were unfriendly labor situation,

high cost of labor, difficult power situation, lack of availability of low-cost industrial

land and shortage of adequate infrastructural facilities. There was no indication that the

situation regarding the big industry would change in the near future, he added. The two

main problems affecting the growth of small industries were increased competition and

lack of adequate financial resources. Finance continued to be a major problem for the

SSI products from 6 percent to 8 percent was the biggest blow to paint manufacturers

in the SSI sector in the State. These three major companies, who account for more than

505 of the total paint market in the country had achieved spectacular results by cutting

into the markets of SSI units who were hard hit by the liberalization policies of the

Union Government. While the big units with their divisive portfolio and financial

strength take full advantage of the changed economic scenario, most of the small-scale

units find it increasingly difficult to chalk out a strategy to overcome the present

difficulties.

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 11


Indigo Paints Ltd.

CHAPTER 3
PROFILE OF THE ORGANIZATION

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 12


CHAPTER 3

PROFILE OF THE ORGANIZATION

3.1 COMPANY PROFILE

INDIGO Paints is a young paint manufacturing company, focusing on delivering and

servicing the customers with healthy eco-friendly product match with international

standards. Indigo Paints Limited is incorporated on 28 march 2000. It is classified as

Non-Government company and is registered at Registrar of Companies, Pune. Its

authorized share capital is Rs. 633110020 and its paid-up capital is Rs. 471561440. It

is involved in manufacture of basic chemicals. Indigo paints is a manufacturer and

supplier of decorative paints, dirt proof and waterproof exterior laminate for

commercial and residential markets. Indigo paints is headquartered in Pune,

Maharashtra. It has a revenue of 600 crores and 650 employees. Indigo Paints has

received a total of $10M in funding. Indigo Paints’ main competitors are Berger Paints,

Asian Paints and Nerolac. As of June 2019, Indigo Paints has 295.2K fans on Facebook

and 1.5K followers on Twitter. Which reflect popularity of indigo paints. Indigo Paints

manufactures a wide compilation of decorative paints, Enamels & Wood Coatings and

today stands at par with all major paint companies in India. Within a short span of 19

years Indigo Paints has been able to garner a substantial presence in nearly all states

across India, with more than 12000 dealers.

The wide presence has enabled successive launches of various products, as test

marketing could be done across various cultural scenarios. Indigo Paints has been able

to identify niche segments for their products in these states. Indigo Paints prides in

providing innovative paint solutions, along with the routine. The response time to the
Indigo Paints Ltd.

market requirement is considerably short, and gives a value-added product with its

innovations.

3.1.1 History of the Firm

Started in the year 2000, Indigo Paints had a modest beginning. It started out with

manufacture of lower-end Cement paints, and gradually expanded its range to cover

most segments of water-based paints like Exterior Emulsions, Interior Emulsions,

Distempers, Primers etc. From an early age, the Company spread its footprints across

the country, with rapid expansion of its reach across India. Today the Company stands

out as one of the strongest contenders in the Indian paint industry, being rated as an

innovative paint manufacturer, which keeps coming out with unique products never

before offered in the country. The Company’s strategy and approach were very different

from other paint manufacturers from the very outset. The Company pledged to

manufacture only eco-friendly water-based paints, which are not harmful to the health

of the customers or the applicators. The Company eschewed the temptation to

manufacture any solvent-based paints, which are extremely harmful to the health of the

users, regardless of their profit contributions. Over time, the Company found its niche

in the paint industry through innovation. It kept churning out bright new ideas for

painting solutions, with alarming regularity. Gradually, the industry began looking

upon the Company as a futuristic thinker and a storehouse of new product development.

With changing time and trends, Indigo Paints revamped its identity showcasing a new

wave of thinking by the Company. A few years ago, it clubbed all its multiple brands

for different product categories into a single umbrella brand “INDIGO”. A new logo

for the brand and the Company was created, which accurately reflected the core

philosophy of the organization. The logo design was extended to all packaging design

and other forms of corporate communication. Going forward Indigo Paints will keep

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 14


Indigo Paints Ltd.

evolving itself. We plan to come up with innovative products at regular intervals and

continue to surprise our customers. A strong focus on advertising in the years to come

will set us apart from the competitors and help gain considerable market share.

3.1.2. Indigo Paints Kalamassery

Indigo paints Kerala section is headed by Indigo Paints Kochi. The Indigo paints Kochi

was formerly HI-BUILD Coatings Pvt. Ltd, a Kochi-based company, which became a

subsidiary of the Oman-based Sadolin Paints Ltd and expanded its capacity and

operations. The HBC unit has been modernized and expanded to manufacture wood

care products and triggered up its capacity. The products ranged from protector

products to finishing paints. The technology used was from Danish Company, Finn

Giese. The unit situated at the South Kalamassery near Major Industrial Estate was

expected to make a large annual turnover. Of late, there had been a good general

demand for wood care products in Kerala and the annual demand was estimated to be

large.

However, it is a highly competitive market with major players such as Asian Paints,

Nerolac, ICI, Berger etc. controlling around 60 per cent of the market. Besides, Kerala

has around 100 hundred small-scale units engaged in manufacturing paints. Availability

of housing loan at low interest rates has activated the house construction sector and this

in turn has accelerated the demand for wood care products and paints. Added to this, of

late, there has been an aesthetic appreciation of wood works done in residential

buildings in Kerala and this phenomenon has increased the use of wood care products

rather than paints in windows, doors etc., And the company hopes that its products

would be absorbed by the Kerala market. With these reasons in mind, indigo paints

planned to spread more of its presence in Kerala and bought HBC and later in 2016

march hi built coating (HBC) merged with indigo paints. The Kochi indigo paints are

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 15


Indigo Paints Ltd.

now heading the Kerala area and is the central warehouse in Kerala. It coordinates the

Trissur, Kollam, Calicut and Kochi like 12 depots. HBC became Indigo Paints Pvt. Ltd

as per the high court of Maharashtra and the national company law tribunal order came

on 02.03.2017 permitting the merger and came to effect on 1st April2017.

3.1.3 The Indigo Brand Identity

Brand identity is the visible elements of a brand, such as color, design, and logo, that

identify and distinguish the brand in consumers' minds. Brand identity is distinct from

brand image. The former corresponds to the intent behind the branding and the way a

company does the following all with the goal of cultivating a certain image in

consumer’s minds:

• Chooses its name and designs its logo.

• Uses color, shapes, and other visual elements in its products and promotions

• Crafts the language in its advertisements

• Trains employees to interact with customers

• Brand image is the actual result of these efforts, successful or unsuccessful.

The Indigo Paint’s brand identity has two parts:

• A visual: a zebra with multi-colored stripes, instead of just black and white ones,

to dramatize the ‘unexpected’ nature of the brand’s solutions

• A brand line that succinctly sums up what the brand stands for. Brand line of

Indigo Paints Ltd is “Indigo Be surprised”

3.1.4 Mission

Going forward Indigo Paints will keep evolving itself. We plan to come up with

innovative products at regular intervals and continue to surprise our customers. A strong

focus on advertising in the years to come will set us apart from the competitors and help

gain considerable market share.

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 16


Indigo Paints Ltd.

3.1.5 Vision

Setting new work strategies, innovative product development and market research

fundamentals, while keeping the spirit of wonderment intact, Indigo Paints has stood

out in a class of its own from its fellow competitors. The ability to innovate and provide

surprising results and never-thought-of approaches for deeper understanding of market

insights has been the key differentiator.

3.1.6 Philosophy of Organization

Indigo’s products reflect this philosophy completely:

• India’s first Metallic paint, which gives a unique look to your walls

• India’s first Floor Coat paint, which can withstand any vehicular traffic

• Unique Ceiling Coat paint, for brighter and whiter ceilings

• First-of-its-kind Tile Coat paint for roofs, which gives an excellent glossy look

• Eco-friendly Water-based Enamels with a super glossy finish

3.1.7 Areas of Production

The south Indian production held at Ernakulum. The head office is situated at Pune and

the south Indian sector is headed by Kalamassery unit. The good quality and variety

shades are the main properties of products, that helps the company to face the

competition. Indigo Paints have 33 depots in all over India, depots are the base of strong

distribution network.

Cochin factory supports 12 depots, they are;

• Calicut Depot

• Kollam

• Trissur

• Visakhapattanam

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 17


Indigo Paints Ltd.

• Vijayawada

• Chennai

• Madurai

• Banglore

• Pune

• Nagpur

• Jaipur

• Hyderabad

3.2 PRODUCT PROFILE

Paint is any pigmented liquid, liquefiable or mastic composition that, after application

to a substrate in a thin layer converts to a solid film. It is most commonly used to protect,

color or provide texture to objects. Paint industry is mainly classified into two,

industrial paints and decorative paints. Indigo paints are the operator platform intended

to offer decorative paints and emulsions. The company’s platform offers a compilation

of decorative paints for exterior and interior walls, undercoats and wood or metal

coatings, enabling clients to avail better quality paints and emulsions at fair market

price.

3.2.1 Products

Products are classified into Platinum, Gold, Silver, Bronze series according to their

quality. High quality products are listed in platinum series and low-quality products are

listed in bronze series. The products are mainly sold in 500ml, 1lt, 4ltr, 10ltr, 20ltr and

25ltr cans. Major products are listed below;

3.2.1.1 Interior Emulsions

• Luxury Interior Emulsion-Platinum series

• Premium Interior Emulsion-Gold series

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 18


Indigo Paints Ltd.

• Interior Emulsion- silver series

• Interior Emulsion –Bronze series

• Acrylic Distemper-Gold series

• Acrylic Distemper-Silver series.

• Acrylic Pouch Distemper-Silver

3.2.1.2 Exterior Emulsions

• D & W Exterior Laminate-Platinum Series

• Premium XT Exterior Emulsion-Platinum series

• Exterior emulsion – Gold series

• Royal Indigocem- Gold series

• Floracem- Silver series

• Alphacem – Bronze series

3.2.1.3 Primers

• Sealer primer –platinum series

• Stain block primer – platinum series

• Exterior wall primer-gold series

• Water thinnable cement prime –silver series

• Water thinnable cement primer-bronze series

• Zinc chromate primer - Gold series

• Sleek redoxide Metal Primer- Gold series

• Sleek redoxide Metal Primer-Bronze series

• ST Wood Primer –Gold series

• Single Pack Epoxy Primer- Platinum series

• Water thinnable sealer primer –Platinum series

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 19


Indigo Paints Ltd.

3.2.1.4 Sleek Wood Coating

• Interior Single Pack Clear PU

• Exterior Single Pack Clear PU

• Exterior Two Pack Clear PU

• Interior Two Pack Hi-Solid Melamine

• Interior Quick Drying Two Pack PU

• Interior Sanding Sealer NC

• Anti-Termite Solution

• NC / PU / Melamine Thinner

• Wood Stain

• Base

3.2.1.5 Special Products

• Floor Coat Emulsion- Platinum series

• Tile Coat- Platinum series

• Metallic Emulsion-Platinum series

• Bright Ceiling Coat-Platinum series

• Aluminium Paint- Gold series

• Roof Paint – Silver series

• Stone & Tile –Gold series

• Bright Ceiling Coat- Gold series

3.2.1.6 Stainer’s and Colorants

• Universal Stainer

• Machine colorant new(1ltr)

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 20


Indigo Paints Ltd.

3.2.1.7 HBC Standard Product Range

• Vipco

• Fantacy

• Primers

• Flair

• Climex

• Climex plus

• Tile coat

3.2.1.8 Special Shop Brands

• Francoat -Fashion products, Thrissur based company

• Enigma - J&S Traders, Kottayam

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 21


Indigo Paints Ltd.

3.3 ORGANIZATIONAL STRUCTURE

Board of Directors

MD (Pune) MD (Kochi)

GM (Marketing) GM (HR) GM (Finance)

Regional Manager Manager


Manager (Accountant) (Finance)

GM (Technical) Management
Senior Manager
Representative

Manager Manager
Senior Officer
(Material) (Production)

Asst. Manager Development


Manager

Figure 3.1: Organizational Structure of Indigo Paints

(Source: Company Records of Financial Year 2020)

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 22


Indigo Paints Ltd.

3.3.1 Director Board of Indigo Paints Ltd, Kochi

Board of Directors is a group of people who jointly supervise the activities of an

organization. The board of director’s key purpose is to ensure the company’s prosperity

by collectively directing the company’s affairs, whilst meeting the appropriate interests

of its shareholders and stakeholders. In addition to business and financial issues, boards

of directors must deal with challenges and issues relating to corporate governance,

corporate social responsibility and corporate ethics. Hemant Jalan is the managing

director of Indigo Paints Limited. In cochin unit director board consist of nine members.

Table 3.1 Director Board of Indigo Paints Ltd, Kochi

Sl.no Name of Department Head Destination

1 Varghese Idikkula GM(Production)

2 Shiva Das K Nair Administrator

3 Madhu T K HR Manager

4 Satheesh Paul Finance Manager

5 R Chetan Asst. Finance Manager

6 Suresh Babu Marketing Manager

7 Raj Mohan Logistic and Dispatch Head

8 Sajoy Bose Purchase Manager

9 Mahesh T K QC and R&D Head

(Source: Company Records of Financial Year 2020)

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 23


Indigo Paints Ltd.

3.4 DEPARTMENTALISATION

Departmentalization can be defined as the process of grouping of activities into units

and subunits for the purpose of administration. The administrative units and subunits

may be designated as divisions, units, branches, sections etc. The process of

Departmentation is done at all levels of the organization. The top-level executive or

manager of the organization groups entire activities into major divisions such as

Production, Marketing, HRM etc. The Indigo Paints Ltd, Kochi follows a flat

organizational structure where the general manager or technical manager heads the

work at Kerala and under the GM’s guidance works the functional departments of the

company.

The main objective of the organization study is to understand the functions of various

departments of the organization.

The seven departments in Indigo Paints are;

• HR Department

• Marketing Department

• Finance and Accounts Department

• Production Department

• Purchase Department

• Maintenance Department

• Dispatch& Logistics department

• Quality Control Department

• Research& Development Department

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 24


Indigo Paints Ltd.

Functional Departments

Marketing Finance Dispatch And QC and


Logistics R&D

HR Technical

Material Production

Figure 3.2: Functional Department

(Source: Company Records of Financial Year 2020)

3.4.1 Marketing Department

Marketing department plays an important role in every industry. If marketing functions

are not properly done, it will lead to the decline stage of the organization. Since market

is concerned with satisfying the customer needs, it starts with identifying the customer

needs. In order to find out the customer needs Indigo Paints conduct Market studies

twice in a year by Mumbai Agencies. Marketing can be effective when there is a

continuous flow of information relating to customer perception, competitive strategy,

government policies and business trends. The role of marketing department is planning,

implementing and control of marketing activities. Marketing starts with generation of

objectives to increase profit and goodwill of the enterprise and to s satisfy the needs

and wants of the customers. This department is headed by Marketing manager. The

Marketing Manager is responsible for all the marketing and sale promotion activities.

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 25


Indigo Paints Ltd.

3.4.1.1 Promotional Activities

In Indigo Paints Marketing activities are mainly divided into two;

Above The Line Activity (ATL): ATL activities includes the big budgets programs like

TV add, advertisement on newspaper, advertisements on social networks like

Facebook, Instagram, Twitter, Google add etc. ATL activities are mainly handled in

head office, Pune. Advertisement is the main promotional tool. Medias used are,

• Newspapers and magazines

• Television ads

• Exhibitions and fairs

• Posters and hoardings

Below The Line Activities (BTL): BTL activities includes contract level programs. It

includes;

• Painter’s Meet: Indigo Paints conducted meetings with painters in order to make

them aware about their products.

• Contractor’s Meet: In this meet marketing head select five main contractors and

gave them a deep introduction about their products

• Polisher Meet: Polisher meet is, mainly done in order to promote their wood

coatings.

• Shop Branding; It is simply mean that branding through shop, it includes the

company’s sign board, advertisement on shop wall and etc.

Tools used in BTL activities are:

• Manpower

• Product Booklet

• Color consistency book

• Mobile tab with a paint preview app

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 26


Indigo Paints Ltd.

3.4.1.2 Selling Procedure

The selling procedure is that, the orders are taken by sales executives or is taken from

depots through SAP and is forwarded to the Marketing Manager, after his inspection,

it is transferred to the Accounts Section then to dispatch. Here all the accounting

procedures take place and prices are fixed and the terms of payment are also made.

Where the bills are prepared and from there the goods are dispatched.

The sales support schemes are adopted by the company to increase the sales volume.

Sales forecasting is done on the basis of previous sales. For sales officers, targets are

fixed. If they achieve the targets, they get incentives. The products have a medium shelf

life after which the guaranteed quality may not be received. Within 24 hrs. the

complaint will be acknowledged and within 3 days the complaint will be handled.

The price of the product differs as per the base colors used the shades of color opted for

the products. The price for products base and shades are fixed for the products. Product

wise analysis is made to know about the movement of the products. If any difficulty is

found, they adopt new strategies to improve the movement of the product. To improve

the sales, the company participates in programs like exhibitions and sponsor some

events to make the company get noticed in the market. For the same décor club and

painters meet are organized.

3.4.1.3 Other Responsibilities of a Marketing Department

Marketing department has a huge responsibility of making a business profitable. It

needs to do this by creating awareness, engaging customers, researching competitors

and their product, preparing promotional activities and materials and a whole host of

other responsibilities. The marketing department is like the jack of all trades in any

organization. Anything that other departments do not handle is given to the marketing

department to deal with. When we look in-depth at the responsibilities of the marketing

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 27


Indigo Paints Ltd.

department, it becomes very clear why it is the key department of any organization,

without which it would be very difficult for the business to exist profitably.

Applying customer-centric approach: The Marketing Department needs to have a

relationship with the customer so that they can understand what the customers’ demand

from the business and thus aim to meet those demands. Customer feedback is an

important part of marketing and companies need to conduct surveys to get the feedback

from customers and prospects. There are two ways to understand the customer needs

and focus the business activities to reflect the customer’s demands; these are through

internal channels by taking feedback from the sales department and the customer

service department regarding customer preferences and their feedback. This can be

done via data analysis as well as conducting surveys within the company. The other

way to collect information is via external channels, through interaction with social

media and internet. In the end, the focus should be to provide the customer with a

valuable and pleasant experience when interacting with the company.

Keeping up with the competition: The marketing department is also responsible for

researching the competition and keeping up with them to know what they are doing,

which products they are launching, what are the weaknesses of the competitors and how

to avoid making the same mistakes as the competitors. It is also essential to know how

the company is placed in relation to its competitors, why the customers prefer the other

companies, what customers the competitors target and the relationship they have with

their customers. Once all this information is available then the marketing department

can analyze it and create a better marketing and customer relation strategy for the

company.

Branding: A brand is the identity of a company. It is the practice of creating a name,

design or symbol that denotes a particular product or business and makes it stand apart

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 28


Indigo Paints Ltd.

from other similar products or businesses. Branding helps to enhance the image of a

business and make it more credible, elicits an emotionally positive response from the

audience, motivates the audience to buy and creates loyalty for the brand and its

products. It is the duty of the marketing department to create and promote a brand

through images, words, ideas, and promises of benefits to the customer. The message

needs to be delivered to the audience by all the members of the enterprise consistently

and frequently.

Finding the Right Partners: The marketing department of all organizations cannot be

extensive enough to handle all the marketing needs of the organization. In order to bring

the full range of marketing tools and expertise to a business, it is often essential to hire

specific expertise and people from outside the organization. It is essential to find the

right partners who understand the philosophy and needs of the organization. It is the

work of the marketing department to identify, hire and oversee these partners to bring

best value to the business. These strategic partners could be advertising agencies to

create and manage advertising campaigns, social media experts to manage the social

media marketing side of the business, web designers, data analysts, copywriters, and

other such people.

Being creative and innovative: The marketing department needs to be on its toes at all

times. It is the responsibility of the marketing department to come up with creative

ideas, whether it is for promotional purposes or to create a new product. Feedback and

ideas from the marketing team are responsible for policy decisions regarding products,

such as whether to create new products or improve the old one. It also needs to come

up with creative ways to position the brand and the product to create additional revenue

for the company. In order to fulfil all its responsibilities, the marketing department often

takes the help of outside partners.

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 29


Indigo Paints Ltd.

Communicating with other departments: One of the key responsibilities of the

marketing department is to create a channel of communication with all the other

departments within an organization. It has to familiarize all the employees with the

marketing ethics, company’s philosophy, and customer relationship. It can do so by

conducting workshops, training sessions and talks or presentation regarding customer

handling and brand awareness.

Budgeting: Marketing departments work on budgets. They are given a certain amount

of money to spend upon creating a presence for the company or product in the market.

It is the responsibility of the marketing department to estimate the cost of all the

marketing activities it intends to carry out and prepare a budget that would use the

allocated amount of money most efficiently. It is essential that the marketing personnel

stick to the budget.

Decor club: The company has also started a point scheme program i.e., decor club

(Kerala) or artist club (rest of India). Painters are registered into this club; up to know

4000 painters have been already registered. for every purchase of products from indigo

paints the painter is credited with points in his name. the points have been already set

upped for products. the painters are at painters meet given gifts, gold or trips for the

points awarded to them. of other companies’ indigo paints have a major strike in this

place as the company provides re.1 for a point whereas other companies only give 45por

25p worth gifts for 1 point.

Annual schemes: The annual scheme is provided for the dealers on the basis of their

annual sales of the dealers their annual growth rate and annual turnover. The annual

dealer’s sales scheme is set on the basis of their increase in sales and achieving set

targets for sales. On achieving the targets reward is given. The reward may be

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 30


Indigo Paints Ltd.

Foreign trip schemes: The company provides tour schemes to dealers. The dealers are

hitched into the scheme and with achievement of the targets they are given trips as a

reward. the company provides 3 foreign trips and a domestic trip. Foreign trip may be

to Europe, Bangkok or Thailand. the domestic trip may be anywhere in India which

will be pre-selected.

Complaint Handling Relation: The marketing departments also have to deal with the

complaints from the ultimate customer, painters and dealers. The company provides

toll free number for any complaints to be registered or complaints can be given through

Sales executives. any complaint given will be acknowledged within 24 hrs. time and

will be seen to it that it is. first on receives of a complaint the snr manager sees to it and

is acknowledged and is check up on with staffs whether it has to be sent to the lab or

other step is to be taken. the past 3 batch samples will be retained with the lab which

would help to find out if it is the problem of the batch products. the main problems may

be color fading which may also be due to improper use of machineries or because of

presence of artificial elements and environmental exposure. After checking the results,

the company takes on what remedy to be taken.

Tinting Machine: Tinting machines are color mixing machines. the marketing

department must see to it the tinting machine dealers, should set up color point

managers and service engineers. Tinting machines is used to provide customers with

their preferred shades with use of base colors. the marketing dept. also have to prepare

the shade cards in order to give idea for the customers about the colors available and

they also have to update the cards with variety and innovative and different colors so

as to attract the customer.

Package designing: The marketing department also has to take on the package

designing for the product with a view to attract the customer with the packaging of the

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 31


Indigo Paints Ltd.

product. indigo paints have recently changed its packaging designs. Can designing is

also considered as an ATL activity.

Pricing: Pricing is mainly depending upon the quality of the product. Indigo Paints

choose the pricing strategies which is followed by their main competitors especially

Asian Paints.

3.4.1.6 Marketing Objectives

• To establish a corporate image.

• To make products visible in the market through the effective market coverage

and penetration.

• At the shortest period to be covered the entire market and develop brand image.

• Design schemes in order to capture the market

3.4.1.7 Competitors

The main players: Asian Paints (AP), Good lass Nerolac, ICI (India), Berger and Jenson

& Nicholson are the leading companies in the organized sector. The top six

manufacturers account for about 80% of the market in the organized in value terms. AP

is the industry leader, with an overall market share of 33% in the organized sector.

Threat of global competition is minimal in the industry. AP dominates the decorative

segment, with a 38% market share, a Tata company, is number two with a 14% market

share. Berger and ICI have 9% and 8% shares, respectively.

Asian Paints: Asian Paints was started in 1942 and has over 60 years of industry

experience. It is India’s largest paint company with widest range of wall and wood

paints. They offer products from low-cost painting solutions to high end luxury interior

and exterior paints. They are third largest paint manufacturer in Asia serving 65+

countries worldwide. They have state of the art infrastructure of paint manufacturing

plants located across 26 locations around the world. Company has head office in

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 32


Indigo Paints Ltd.

Mumbai and has annual turnover Rs 140 billion. It is listed in stock market and has

talented team of 6000 professionals that has deep domain knowledge of Paint industry.

Head office - Mumbai.

Kansai Nerolac Paints Ltd: Nerolac is leading Paint Company of India. They are 100%

subsidiary of Kansai Paint, Japan. Headquartered in Mumbai, they have 5 own

manufacturing plants and 6 contract manufacturing plants located at various strategic

locations. They have three categories of products - Decorative Paints, Automotive

Coatings and Performance Coating. They are leaders in Industrial Paints and

Automotive Coatings. They have outstanding network of dealers and their products are

available at remote village retailers too. Head office - Mumbai, Maharashtra.

Berger Paints India Limited: Berger Paints is UK based company which started its India

operations in 1923.They are India’s second largest paint company based out of Kolkata.

With years of expertise and extensive R&D department, they are upgrading their

products with time and are present in all segments of paint industry. They have factories

located at 11 locations in India and a nationwide distribution network of more than

15000 dealers. They also sell their products in 3 countries apart from domestic market.

More than 2500 Employees are associated with the company and working hard to

product best products of Industry. Head office - Kolkata, West Bengal.

Dulux Paints: Dulux is an India based arm of US Company, AkzoNobel. The company

has started its Indian operations way back in 1932. They are among top 3 brands of

decorative paints in India. With their international experience, they have launched some

innovative and high-end luxury paints in Indian market which are in demand for various

luxurious projects. They have their head office at Gurgaon and numerous stores spread

across the country. Head office - Gurgaon, Haryana

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 33


Indigo Paints Ltd.

3.4.1.8 Responsibilities of Marketing Manager

• Evaluate the financial aspects of product development, such as budgets,

expenditures, research and development appropriations, and return-on

investment and profit-loss projections.

• Formulate, direct and coordinate marketing activities and policies to promote

products and services, working with advertising and promotion managers.

• Direct the hiring, training, and performance evaluations of marketing and sales

staff and oversee their daily activities.

• Negotiate contracts with vendors and distributors to manage product

distribution, establishing distribution networks and developing distribution

strategies.

• Use sales forecasting and strategic planning to ensure the sale and profitability

of products, lines, or services, analyzing business developments and monitoring

market.

• Identify, develop, and evaluate marketing strategy, based on knowledge of

establishment objectives, market characteristics, and cost and mark up factors.

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 34


Indigo Paints Ltd.

GM (Marketing)

Manager
Manager Colour
Sales Regional Sales Manager
Points

Kerala Kerala Kerala


South Centre North

Sales Executive Area Sales Senior Sales


Manager Executive

Marketing Service Engineer of


Marketing Trainee Colour Points
Executive

Figure 3.3: Structure of Marketing Department

(Source: Company Records of Financial Year 2020)

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 35


Indigo Paints Ltd.

3.4.2 Human Resource Department

Human Resource Management (HRM) involves management relying less on hierarchy,

instruction and command, and instead becoming more participative and open. The aim

is to promote cooperative relations between management and employees and to avoid

the often-adversarial behavior associated with traditional industrial relations. Where

HRM is successful, the employees will be committed to the long-term future of their

organization and this, in turn, will help the organization adapt to competitive pressures.

In Indigo Paints Kochi the H.R Department is handled by H. R Manager Mr. Madhu T.

K. There are 203 employees are worked in Indigo Paints under his supervision. In this

organization mainly the employees are classified into six as;

• Permanent Employees: An employee who has been engaged on a permanent

basis.

• Probationer: An employee who is provisionally e0mployed by the company to

fill a permanent vacancy and has not been confirmed as permanent by an order

in writing.

• Fixed Term Contract Employee: An employee on a contract of employment for

any quarter, year or for accomplishment of a certain task.

• Trainee/ Apprentice/Learner: A person who is permitted to learn a tradeor skill

for a period not exceeding three years depending upon the training required.

• Badly Worker: One who is engaged temporarily in the place of regular workmen

who is on leave.

• Casual Employee: One who is engaged to do some works of very casual and

non-perennial nature.

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 36


Indigo Paints Ltd.

3.4.2.1 Functions of HR Department

HR Department includes different processes like

• Reward Management

• Career Management

• Recruitment

• Training and Development

• Performance Management and Development

• Trade Unions

• Disciplinary Actions

• Grievance handling

Reward Management: Compensation is a reward or remuneration received by an

employee in return for his contribution to the organization. Fixation of employee reward

involves balancing the work-employee relation by providing monetary and non-

monetary benefits to employees. The reward includes direct compensation as well as

indirect benefits like incentives, leave with pay, product sales to employees etc. Indigo

paints had been paying wages to its workmen well above wages fixed by the

government under the minimum wages act even though under the minimum wages act.

Paint industry is not brought in as a scheduled employment. the company follows an

accelerated pay scale with 15pay grades. total pay consists of a basic salary, variable

dearness allowance linked to consumer price index, fixed dearness allowance as a

percentage of basic pay, house rent allowance, medical allowance and (for higher grade

staff) reimbursement of the telephone and fuel bills subject to certain sum fixed.

Currently pay is processed by the finance department. Salary of all employees except

employees engaged for work of casual or temporary nature and those engaged through

contractor are paid through bank by crediting the employees saving bank accounts

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 37


Indigo Paints Ltd.

opened in SBI and Union Bank of India. Salary is usually paid on 1st 0f the month itself

There shall be a different salary structure for the employees under different grades,

Generally, salary will comprise of basic salary, dearness allowance, telephone

allowance, House rent allowance, conveyance allowance, telephone allowance, and

reimbursement like telephone, fuel and medical expenses.

Employees of Indigo Paints are covered by statutory and social security benefit like,

Employees Provident Fund: EPF is contributory in nature to which employee and

employer shall contribute 12 % of salary. Salary for this purpose shall mean PF

qualifying salary as per the employees’ provident fund and Misc., provisions Act.

Employees State Insurance; ESI is a social security measure introduced by the

government to benefit the employees and their families with a wide range of benefits

such as sickness benefit, medical benefit, maternity benefit etc.

Medical Insurance: All employees who are out of ESI scheme or become out of ESI

coverage subsequently, are covered by Group Medical Insurance. The premia of the

policy shall be paid by the company.

Employee Sale: Employees are entitled to purchase for their exclusive use the Indigo

Paint’s products at concessional rates.

Bonus: A bonus is a financial compensation that is above and beyond the normal

payment expectations of its recipient. Bonuses is awarded by a company as an incentive

or to reward good performance. It is paid annually based on the profitability of the

company and following the Payment of Bonus Act and rules framed therein. Bonus is

paid to employees who have worked at least for 30 days in the financial year.

Gratuity: Gratuity is paid to employees who retires or otherwise leave the company

after putting in at least five years of continuous service with the company. It is paid as

per the provision of the Payment of Gratuity Act and rules framed thereunder.

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 38


Indigo Paints Ltd.

Accordingly, gratuity will be equal to fifteen days’ salary for every completed year of

service subject to a maximum of Rupees 20 lakhs.

Pay Days: Under normal circumstances 2nd day of every month following the wage

month shall be the pay day. However, in case the 2nd day of month is holiday either for

the company or for the Bank through which the salary is disbursed or for both, the salary

shall be paid on the next working day for both the company and the bank provided that

the pay day shall not extend beyond 7th day of the month succeeding the wage month.

Career Management: Career Management policy aims to define the opportunities for

employees to develop the skills and knowledge required to assume more

responsibilities, move into management lateral or horizontal move indicates a job

opportunity at the same level but in different department, division or location where the

employee can put in his expertise more meaningfully and productively. A vertical move

provides the employees with a promotion into a higher level or role based on his

performance. A realignment or restructuring of the entire job descriptions either within

the department or organization may also move the employee down a level based on

performance.

Disciplinary Actions: The disciplinary actions shall be commensurate with nature of

harassment or violation of human right.

If any member is found guilty in the following punishment shall be awarded;

• Warning

• Written apology

• Accepting bond of good behavior Reduction to lower grade and increment

• Discharge and Dismissal

• Stoppage of promotion for two years

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 39


Indigo Paints Ltd.

Training and Development: Indigo Paints will give employees adequate training to do

their job safely and competently. They believe training is a two-way process. They

encourage employees to participate and to highlight any gap in their own skills or

knowledge they believe they have. Development of employee skill and personal

attributes aims at bringing in a culture within the organization so that each one of the

team recognizes his values to the organization and his contributions to the common

goals of growth, profitability, employee satisfaction, customer satisfaction and

customer retention.

HR Department shall in consultation with HODs prepare an Annual Training Plan

(ATP) which shall include all training needs whether internal on the job or other of the

employees of different departments. Training shall be internal on the job training or

external training, in both the cases, training shall be given to the employees by the

internal trainers or by engaging external trainers.

Performance Management and Development: Indigo Paints recognize employees as its

most important resource and Development process is one of the ways in which people

can be made aware of their value to the organization. Performance Management system

is the process of identifying, evaluating and developing performance of employees so

that the organization’s goals and objectives are achieved. Performance Management

and Development System aims to benefit people employed in Indigo Paints to get a

clear objective and documented outline of expectations regarding their level of work

performance or the key results they are expected to achieve, to provide constructive

feedback on progress, both positive and negative, and identifying strategies to

overcome any difficulty in achieving the desired targets. It also aspires to identify

training needs of people at work, individually and with their supervisors, so that

employees shall become result oriented. Measuring, improving and rewarding

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 40


Indigo Paints Ltd.

performance is an ongoing process. It should include informal and formal review. All

employees shall undergo a formal performance review with their immediate line

managers at least two times a year.

Leaves and holidays: Indigo paints at Ernakulum follows the Kerala industrial

establishments (national and festival holidays) act for declaring holidays during a year.

holidays are fixed for the year in consultation with employees and the trade union.

Accordingly, four national holidays and 9 festival holidays are declared as closed

holidays for the company. Maternity leave is given to women employees as per the

provisions of Maternity Benefits Act. The employees are given casual leave for 9 days

and Privilege leave is calculated by one-day leave per 10 days worked.

Recruitment: Indigo Paints aims to employ the best candidates based on merit and

competence. Recruitment at Indigo Paints is free from discrimination and it will not be

influenced by any manner by gender, marital status, race, ethnic, origin, color,

nationality, sex, religion or age. Recruitment refers to the overall process of attracting,

shortlisting, selecting and appointing suitable candidates for jobs (either permanent or

temporary) within an organization. Recruitment can also refer to processes involved in

choosing individuals for unpaid roles. Managers, human resource generalists and

recruitment specialists may be tasked with carrying out recruitment, but in some cases

public-sector employment agencies, commercial recruitment agencies, or specialist

search consultancies are used to undertake parts of the process. Internet-based

technologies which support all aspects of recruitment have become widespread.

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 41


Indigo Paints Ltd.

Responsibilities Of HR Manager During Recruitment Process:

Raising Of Position Request

Scheduling Interview

Background Verification

Issuing Offer Letter

Arranging Administrative and Technical

Joining Formalities

Arranging Induction

Figure3.4: Flow Chart Showing Responsibilities of HR Manager

During Recruitment Process

(Source: Company Records of Financial Year 2020)

Grievance Redressal committee: When an employee feels that something is unfair in

the organization, he is said to have a grievance. Indigo Paints is committed to redress

grievances of employees right at its inception stage itself. With a view to resolving

grievances of employees six-member grievance redressal committees shall be formed

at each Centre. The chairperson of the committee shall be selected from the employer

and from among the employees alternatively on rotation basis every year. It shall be the

responsibility of the Grievance Committee to address any grievance which the

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 42


Indigo Paints Ltd.

employees place before the committee either directly or through the HR Manager. The

committee shall meet every Friday.

Terminating of employees: The service of a permanent employee shall be terminated

by giving him notice in writing or paying salary in lieu of notice and a permanent

employee can resign from work by giving a notice for a period as per the contract. the

salary earned by him shall be paid after obtaining sanction from the departmental heads.

3.4.2.2 Trade Unions

Workers of category 1,2,3 are the members of trade unions. Two trade unions are there;

• Ernakulam District Industrial Estate

• Masdhur Sangh

3.4.2.3 Responsibilities of H R Manager

• Annual human resource planning

• Sourcing manpower through HR service providers

• Maintain database of potential candidates

• Communicate company policies to employees

• Motivating employees to perform and improve

• Maintaining harmonious industrial relation.

• Interacting with personals for resolve issues.

• Facilitating annual performance appraisal.

• Conduct exit interviews and use the information for improving company

policies.

3.4.2.4 Authority

• Authorizing appointment orders for employees below the level of sr. managers.

• Authorize routine communications relating to recruitment activities.

• Recommend disciplinary actions.

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 43


Indigo Paints Ltd.

3.4.3 Finance and Accounts Department

The accounts / finance department of Indigo Paints has a centralized service. As the

head office is situated at Pune, major operations are performed there. The finance

department of the indigo paints Kochi is headed by Finance Manager.

3.4.3.1 Significant Accounting Policies

• From State Government in the nature of capital contribution is treated as reserve

and credited to capital reserve. The financial statements of the company have

been prepared in accordance with generally accepted accounting principles in

India (Indian GAAP).

• The financial statements are prepared on accrual basis and under historical

convention.

• Inventories are valued at lower of cost net realizable value.

• Depreciation on tangible fixed assets is provided on straight line method over

the useful lives prescribed in schedule II of the companies’ act, 2013.

• Investment subsidies grant

• The company has provided tinting equipment to dealers on an operating lease

basis.

• Company now follows GST and has 28% tax rate.

3.4.3.2 Functions of Accounts Department

The basic function handled by this department in the company is

• Banking transactional activities

• Bank payments: It deals with overview of working capital payments, payments

by vendors through bank, other expenses transferred through bank, machinery

loans transactions.

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 44


Indigo Paints Ltd.

• Bank receipts: Bank receipts the section also looks out for the entries in the

banks that is, receipts for the company i.e., receipts from customer in for the

company term loan repayments

• Cash Transactions: The account section also monitors and gets up to date every

transaction in cash. mainly all transactions are through bank and cheque only

small amount are transacted in pure cash. Like freight, small receipts from

customers, scrap sales receipts

• Purchase accounting and purchase return activities

• Store material invoice maintenance

• Other purchase invoice maintenance

3.4.3.3 Objectives of Finance Department

The main objective of financial manager or finance department is to maximize the

company’s profit and improve the economic welfare. There are mainly two steps for

achieving these specific objectives. They are:

• Profit maximization

• Wealth maximization

3.4.3.4 Software Used in Finance Department

• SAP

• Microsoft Excel

3.4.3.5 Auditing

Mainly of two types, that is one from head office and an internal auditing.

3.4.3.6 Receipts and Payments

Receipts are got from customers by selling goods. They are mainly received through

cheques/DD by sales of decorative paints and other products. Payments consists of;

• Salaries

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 45


Indigo Paints Ltd.

• Payment to contractors

• Payment of electricity charges

• Payment to suppliers

• Payment for stationary items.

• Advertisements

• Audit fees

• Interest on loans

• Tax payments

• Repairs

3.4.3.7 Working Capital of Indigo Paints, Cochin Unit.

The finance department in Indigo Paints works has to raise necessary funds, manage

them, prepare finance budgets and administer its working capital. This department

functions public issue of capital maintains and records for helping the finance manager

to access the appropriateness of capital structure. It provides data for the preparation of

budget and various financial statements. Finance plays a key role in every activity of

business. It deals with the principles and methods of obtaining control over money from

those who saved it administering it by those control it. The success of finance function

depends on how finance is planned at the various levels of administration under the

management.

Availability of sufficient funds at the required time is the key success of a concern. As

a matter of fact, finance may be said to the “circulatory system of the economic body”

making possible coordination between the different activities. The main source of

capital in Indigo Paints is SEQUIA a London based company.

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 46


Indigo Paints Ltd.

3.4.3.8 GST Implementation

With the emergence of GST, the tax percentage of the company has shifted from 27 %

(ie. 14%+14%) to 28% (as paint comes under luxury category). With emergence of

GST it was said there will be decrease in price of product but with increase in tax

percentage the decrease percentage was small. even through with the increase in

percentage the company was able to decrease the price or maintain the price because of

the GST benefit on excise duty. Of which the company was able to give a slight

decrease in price for the product with implementation of GST.

3.4.3.9 Books Maintained

• Cash book

• Bank book

• General ledger

• Purchase ratio, sales ratio

• Debtor ledger

• Creditor ledger

• Inventory register

• Finished goods stock ledger (kept with dispatch section)

Board Of Directors

Executive Director (KOCHI)

GM Finance

FINANCE HEAD

Figure 3.5: Structure of Finance


(Source: Company Records of Financial Year 2020)
Department

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 47


Indigo Paints Ltd.

3.4.4 Materials Department

The Materials Management Department deals mainly with the procurement of materials

needed for the company. The materials order may be placed on the basis of the annual

plans made by the company as per the budget for the year. SAP and Microsoft Excel

are the major soft wares used for purchasing and production plan. The budget for the

current year is set as per the previous year’s sales with an extra 50-60% extra sales

estimates. Paint business is a seasonal business, so the company manages the budget as

per the requirement of the products. In Kerala the peak season is from January to May

and Diwali time in all India. Based on the annual plans monthly and extra 50 -60%

growth is estimated on previous year’s sales. Production plan is setup on the bases of

the sales plans. For the production plan the 40-day plan is set up 20th of every month

plan is made as known the estimated sales may not always be as per estimation except

for fast moving items (FMCG). Sales plan contains inventory valuation, sales

requirement estimated and the stock. Considering all this the company sets the

production plan and considering this the material need is estimated and orders are

placed, the raw material for the company are imported from Germany, Italy, Vietnam

and also from Bombay and Chennai for the procurement to there is planning needed,

for a raw material to be approved the vendor should be a certified vendor or the products

samples should be approved by the labs in order for placing the order for the product.

the company also negotiates with the vendors for the price of the product the company

welcomes quotations from different company and after the sample approval the

company selects a vendor which satisfies the plan laid down. the selected vendors are

to place quotations for the materials and from which the company selects the lowest

quotation warehouse from there the company transports the materials to the factory. For

the transportation there are dedicated transporters and inbound logistics. Transportation

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 48


Indigo Paints Ltd.

companies like ARC, KRS, ATC etc. the factory provides a GRN (goods receive note)

on receive of the foods at the factory.

The stock is then valued, and the receipt inspection is done to compare with the invoice.

Critical materials are first tested from the lab before loading into the factory if it is not

as per quality but within limits it may be considered, or else necessary actions may be

taken. There is a total of 6 staff in materials department 2 purchase officers and 4 stock

keepers headed by a materials manager.

3.4.4.1 Functions of Material Department

The major function of purchase department is procurement of right quality material

from the right source at the right price at the right time.

3.4.4.2 Responsibilities Relating to Materials

• Quality planning relating to purchased items.

• Overall control of purchasing activities

• Setting key performance indicators in purchases

• Disposition action relating to non-conforming products

• Evaluating proposals received from suppliers from capital equipment.

3.4.4.3 Authority

• Approve plans for purchase of raw material

• Approving suppliers

• Authorizing purchase order and deviation from specification of raw material

3.4.4.4 Responsibilities of Material Manager

• Planning purchasing requirements of raw material and packing materials

• Placing orders on suppliers selected by corporate office for raw material and

packing material required by Kalamassery and Pudukkottai unit.

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 49


Indigo Paints Ltd.

• Placing orders on suppliers approved by Kalamassery unit for RM and packing

materials that are exclusive to Kalamassery and Pudukkottai Unit Monitoring

of orders placed.

• Coordinating with QC for approving samples of new products.

• Ensuring verification of purchased products including imported goods’

• Disposition of rejected product

• Inventory control of RM, packing material, and finished goods in Kalamassery

unit and Pudukkottai unit.

3.4.4.5 Authority

• Authorizing purchase orders for raw material, operating suppliers and

consumables

• Recommending approval and re approval of suppliers

• Recommending selection of suppliers for placement of order

• Fixing inventory levels required for raw materials, packing materials and

finished good.

3.4.4.6 Responsibilities of Purchase Officer

• Planning purchase requirements for raw materials and packing materials.

Monitoring suppliers against purchases

• Initiating purchase order

• Ensuring completeness of purchasing information

• Monitoring supplies against purchase orders

• Maintaining purchase records

• Co-ordinating with QC for approving new products or new suppliers

• Evaluating supplier bids

• Arranging advance payments to suppliers, where required

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 50


Indigo Paints Ltd.

3.4.4.7 Main Raw Materials Used

• Emulsion 7650

• Emulsion 8850

• Tegofomex

• Cello size (Thinner)

• MZ 90

• Perfume no.1

• Hemothyne (binding agent)

• China clay

• Titanium

3.4.4.8 Major Suppliers

Indigo Paints Pvt. Ltd has around 6000 dealers and out of them 3500 are listed dealers,

so they have around 216 suppliers are there. Their major suppliers for raw material and

packing materials are given below;

• Manika – For packing materials

• Cochin Refineries – For solvents

• BASF – For Emulsion

• VISEN –Emulsion

• Roshan chemicals – For solvent

• Jolly Containers – for packing materials

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 51


Indigo Paints Ltd.

Vice Preseident (Operation)

Quality Control Production

Manager (Material)

Purchase Officer Seniour Store Officer

Store Executive Store Officer

(Source: Company Records of The Year 2020)

Figure 3.6: Structure of Material Department

3.4.5 Production Department

Production department includes production planning, manufacturing, packing,

labelling etc. The production is set as per the annual plans and from the derived monthly

plans

3.4.5.1 Production Planning

The production plan is set as per the sales estimation done and based on which the

company makes the plan for production it is also depends on the trends and buyers’

interest. The production plan for the company is extracted as monthly plans from the

annual plan and company sets daily plans on the basis of monthly plans set. In Indigo

Paints production planning is done through Master Production Schedule, in MPS the

Assistant Manager of Production Planning find last 4-month average and converted it

into volume and find out the volume of each product to be produced for the present

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 52


Indigo Paints Ltd.

month. In a monthly plan he plans the production for 40 days instead of 30 days a

month, it is done as per the foreseen of any delay arrived. The monthly plan is split into

day called Micro planning, here the 40 days planning is converted into 15 days. As per

the production plan the total quantities of the product to be produced and quantity of

raw material to be used are recorded in a batch sheet by the QC departments. The batch

sheet distributed to the supervisors in the production area, as per the details given in

batch sheet, they handled the production.

Responsibilities of Asst. Manager of Planning:

• Ensuring that the production taken is in conformance with the production plan.

• Committing completed batch sheets in system.

• Ensuring optimum level of RM/PM as per monthly plan.

• Ensuring optimum level of FG’s and scheduling production as per requirement.

• Maintaining records related to production yield, productivity and machine

usage.

• Assisting production manager in planning & scheduling for the arrival of

RM/PM to factory.

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 53


Indigo Paints Ltd.

3.4.5.2 Production Process

Raw Material RM Acceptance criteria


Arrive
Quantity verifications

Quantity and test certificate Accepted RM


and PM in
verifications warehouse
Packing
Material Arrive PM Acceptance criteria

Verification with retained

RM Issue

Production planning and


Packing planning
PM Issue

Metered quantity of Conversion Operations

UV treated water • setup


• Equipment Water charging

Quality • RM charging
Testing • Dispersion

Packing / Labelling operations

Product Transfer

Figure 3.7: Flow Chart of Production Process

(Source: Company Records of The Year 2018)

The factory now produces both solvent and water-based products they mainly

concentrate on water-based products and the other production center at Pudukkottai will

focus on solvent-based products. There are 2 main functions carried on in the factory

are production and the packaging, both are machine based.

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 54


Indigo Paints Ltd.

Production is mainly carried through three areas;

Powder area: Area in which powdered raw material are stored

Mixing area: Area in which powders are mixed with corresponding liquids.

Liquid area: Area in which well mixed semi-finished products are modified. In liquid

area they used Ystral machine, it is a German made machine. This machine has a usage

that if the raw material used is for a 25-litre product, but by using Ystral we get 30 litre

paints instead of 25 litres. In Indigo paints factory they use Ystral machine of both 10

KL and 5KL.

There are currently 3 working machines for paint production in the factory. Disperser

is suitable for liquid, mixing, dispersing, dissolving evacuation of all range of product

viscosities. Efficient machine for dispersion of powder into liquid used for mixing in

batches in easy to change tank. It is provided with fix speed, to speeds or variable speed

drive. A hydraulic lifting column can be used for adjusting height of dispersion disk

inside the tank as well as changing the tank. The company uses Twin shaft disperser

contains two impellers on each shaft. It has single motor between 15 to 60 hp. Variable

speed shafts, the twin shaft is for higher viscosities or larger batches and for easier

loading with less dust.

Shaft Disperser: Tank mounted disperser, simple in design and operation. It has an

advantage of low cost but less flexibility of operation. It occupies less space compared

to other models. This can be provided with impeller operating in fixed position

orvertically adjustable with electro-hydraulic lifting. The company also uses a

continuous transfer dispersment system i.e., ystral inline high-speed dispersing

machine. The finished product is then directed to the automated filling machine.

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 55


Indigo Paints Ltd.

3.4.5.3 Packing Area

Area in which finished goods are packed and labelled. The company also has to follow

certain rules and laws during packing. There are certain mandatory laws implemented

by the government to be followed while packaging. The company is to show the batch

no, Mfd., M.R. P, company address etc. on the packet (bucket). Women employees are

worked in packing area.

The batch samples are retained with lab for 2 years for any future reference for any

consumer redressal. The quantity of the paint packed in every pack is set by first

calculating the vapor liter of the product as the packaging is done in liters but the filling

machine does it in Kg so in order to transfer Kg into liters calculating the vapor liter of

the product.

The company also makes solvent-based paints in a small circle and also makes putty

which will be wholly shifted to Pudukkottai plant and Kalamassery unit will only

concentrate on water-based paints. The solvent-based machinery also uses the same

components as the water based but doesn’t use water for blending slurry is added in

here there are beading present in machinery which help in dispensing of the components

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 56


Indigo Paints Ltd.

Vice President (Technical)

General Manager (Manufacturing)

Manager Electrical Engineer


Maintenance
Production

Asst. Manager Electrical


Junior Engineer
(Production) Supervisor

Production
Officer Asst. Manager
(Planning)

Tinters General Workers

Figure 3.8: Department Structure of Production

(Source: Company Records of The Year 2020)

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 57


Indigo Paints Ltd.

3.4.5.4 Waste Treatment

Indigo Paints encourage eco-friendly activities, so they treat their waste through

Effluent Treatment Process (ETP).ETP is one of the efficient waste treatment technics.

Through ETP they separate chemical waste.

Inffluent from plant pH correction and chemical addition

Chemical Setting
Grit Collection
Chamber Oil Trap Tank 1 2 3

Sludge

Hazardous waste Aeration Tank


Sludge Dying Bed
disposal

Pressure Tertary
Pressure
Carbon Settling
Sand Tank
Filter Tank

Treating Water Tank

Sludge returns to Aeration


and Sludge drying bed

Treated water for miscellaneous


uses

Figure 3.9: Steps In ETP

(Source: Company Records of The Year 2020)

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 58


Indigo Paints Ltd.

ETP is the process in which chemicals are separated from the wastewater. Through ETP

it is possible to increase the amount of oxygen content in 1 2 Treating Water Tank

Collection Tank Grit Chamber Oil Trap Chemical Setting Pressure Carbon Filter

Pressure Sand Tank Tertary Settling Tank Aeration Tank Sludge Dying Bed water to

purify it. After ETP process purified water is the finished products which is used for

gardening and bathroom purposes, and the by product is chemical waste which is

collected by the industry KIEL.

3.4.5.5 Responsibilities of Production Manager

• Preparation of monthly production plan

• Preparation of daily production plan

• Implementation of production plan

• Changing production schedule

• Ensuring optimum level of raw material and finished goods

• Confirmed safety in all activities performed related to production andpacking

• Ensuring safety and good housekeeping

• Committing completed batch sheet in system

• Liaison with QC and Purchase department

• Maintaining relationships with all workers and ensuring discipline

3.4.6 QC And R&D Department

Both QC and R&D departments function under the control of the technical manager.

3.4.6.1 Functions of a QC Department:

• Check the viscosity of the paint

• Calculate the ph. and contrast ratios

• Check the dilution of the paint

• Weight per liter, color difference bases etc. are also checked by QC department.

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 59


Indigo Paints Ltd.

The main function of quality assurance is to ensure the quality of the products at each

stage of its production and guide the workers to improve the quality of the product.

3.4.6.2 Major Activities of QC Department

The major activities carried out by this department are:

• Setting up quality standards and practices for operation.

• Ensuring conformance of processes to set standards.

• Qualifying the process, operations and parameters.

• Conduct periodic furnace and process survey.

• Addressing customer complaint

• Finding the root cause of problems detected.

• Communicating customer feedbacks to shop floor and planning sections.

• Ensuring corrective action is taken.

3.4.6.3 Equipment used in QC Departments

• Viscometer - Used to measure thickness of the product

• Pyknometer – Used to measure density of the product

• Spectrophotometer – It measure amount of light absorbed by a sample

3.4.6.4 Functions of R&D

• New product development

• Competitor evaluation

• Developed sample evaluation

• Shade development

For developing a new product, they first set the properties that the product got to have

and the desired extenders is added as per scales. The company saves different shades

of color ratios after formulation thus for future use. The company also uses the

competitors’ product as a reference (benchmark) which will be improved new touch is

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 60


Indigo Paints Ltd.

given and released. The formations and specifications thus made is transferred to the

QC. department. A market trail is done on the new product to know the acceptance by

the consumer and based on this feedback the product is launched into the market.

Miniature Department: It is the department under QC, sample production process is

carried out here. that is small amount of product is produced with the small machines

they developed it will help to reduce the error or wastage during production process.

Vice President (Technical)

Team Leader

R&D Chemists QC Chemists

Helper

Figure 3.10: Structure of QC and RD Departments

(Source: Company Report of The Year 2020)

3.4.7 Dispatch and Logistics Department

This department not only does the name’s sake job of distribution but also carries out

various other duties .it to works collaborated with other departments of the company

hand in hand. dispatch and Logistics Department is headed by Raj Mohan, logistics

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 61


Indigo Paints Ltd.

Manager. In indigo paints, there are 3 staffs I n logistics department. The logistics

manager, Asst. manager and a management trainee. The department also handles

various non-permanent low floor workers.

3.4.7.1 Functions of Dispatch and Logistics Department

This department carries on the following functions:

• Material Management

• Sales and Distribution

• Logistics Execution

• Production

• Production Process

• Plant Maintenance

• Customer Service

• Quality Management

• Logistics Controlling

• Project System

The company deals with SAP therefore the Logistics Department gets the order

information without the placement of order. Company from here itself calculates the

order based on previous orders and takes other specific orders (as per specific

instruction of customers). The company uses First in First Out method (FIFO) so it

should be seen to it that all products are properly ordered in the warehouse and properly

layout. Cochin factory support 12 depots in Kerala. Kochi, Calicut, Thrissur, Kollam

are their main depots.

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 62


CHAPTER 4

DATA ANALYSIS AND INTERPRETATION


CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

4.1 SWOT ANALYSIS

SWOT analysis is a structured planning method used to evaluate the strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a business venture.

A SWOT analysis can be carried out for a project, place, industry or person. It involves

specifying the objective of the business venture or project and identifying the internal

factors that are favorable and unfavorable to achieving that objective. The technique is

credited to Albert Humphrey, who led a convention at the Standard Research Institute

in the 1960s and 1970s using data from Fortune 500 companies. The degree to which

the internal environment of the firm matches with the external environment is expressed

by the concept of strategic fit. Setting the objectives should be done after the SWOT

analysis has been performed. This would allow achievable goals or objectives to be set

for the organization.

Identification of SWOTs is important because they can inform later steps in planning

to achieve the objective.

4.1.1 Strengths

Strength is the Characteristics of the business or project that give it an advantage over

others

• The company has got a good brand image.

• The company produces a wide range of products which would help to give a

tight competition to other companies.

• The support of strong distribution network in different areas act as a strong base

pillar.
Indigo Paints Ltd.

• In comparison with international standards, the company provides good quality

products.

• The company uses advanced technology.

• Organization maintains a very good safety performance.

• It is an ISO14001:2015 certified company.

• Company gave more importance to eco-friendly activities.

• The company offers affordable price for products.

• Better service to customers.

4.1.2 Weakness

Weakness are characteristic that place the team at a disadvantage relative to others.

• There is presence of other established players in the market.

• Underutilization of resources would be a weakness of the company.

• Lack of adequate promotions.

• Overall cost of production is comparatively high.

• Paint Industry is harmfully affected by the seasonal variations

4.1.3 Opportunities

Opportunities are the elements that the project could exploit to its advantage.

• High demand of the product proposes a good opportunity for the company.

• The paint industry is constantly a growing Industry.

• Wide market and diversification of products.

4.1.4 Threats

Threats are the elements in the business environment that could cause trouble for the

business or project.

• Presence of established competitors in the market.

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 65


Indigo Paints Ltd.

• Increasing labor cost possess, a threat to the company.

• Sudden legal and law changes and implementation of GST have caused trouble

to the company.

• Fluctuations in the price of raw material would affect the cost of production.

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 66


CHAPTER 5

FINDINGS, RECOMMENDATIONS AND CONCLUSION


CHAPTER 5

FINDINGS, RECOMMENDATIONS AND CONCLUSION

5.1 FINDINGS

From the study the following findings are drawn;

• As compared to the previous years, the marketing performance of the

company’s excellent because of new package design, quality service and better

customer relation.

• It has a healthy customer relationship.

• They are looking forward to increasing the market share of the company in

Kerala.

• The marketing and sales team has got a very good communication with the

depots, painters club members, consultants and clients.

• Each employee is always free to contact directly the divisional management at

any time.

• Employees are classified on the basis of their duties and responsibilities. Salary

packages are on the basis of this classification.

• The company has ISO14001:2015 certification.

• The company has given very good infrastructure facilities to the employees.

• The company also make use of the latest technology for the production process.

• Good leading network helps the company to serving the need of consumers.

• The firm is on the path of expansion.

• Overall cost of production is comparatively high.

• There is no showroom in factory itself.

• Organization gave more importance to the eco-friendly activities.


Indigo Paints Ltd.

5.2 RECOMMENDATIONS

Based on the study conducted the following recommendations are made;

• Introduce different sales promotion techniques and other offers that attract more

customers towards the product, especially the end users.

• Use different marketing strategies to attract the customers.

• The company’s product composition may be based on the customer needs and

all time climatic compactable paints to be developed, that may help the

organization to compete with their competitors.

• Open a showroom at factory itself, that may attract the bulk purchasers.

• Management may consider ability and experience of the employees while

giving salary or wage.

• Management may try to increase the payment for overtime work.

• The company can import the raw materials in bulk with proper estimation at a

lower cost and combined transportation of imported goods which may reduce

the overall cost of production.

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 69


Indigo Paints Ltd.

5.3 CONCLUSION

The privileged opportunity of doing the one-month organization study proved to be

highly beneficial in the management point of view. The one-month academic

organizational study at Indigo Paints Ltd. Was intended to impart a practical exposure

to the organization. As per the study objective the organizational structure, departments

and its functions, activities are studied through observations. Primary data were

collected through observation, interviews and secondary data was generated from

websites and published documents. SWOT Analysis is done with available data.

Indigo has a wide market in whole of India. The company is going with excellence of

management. The employees are satisfied with their workplace and behavior of

superiors. Quality product, economical pricing, innovative features of indigo paints.

Products provide better market position of this company. Indigo Paints Private Limited

is a growing company with a lot of future anticipations. This study really gives a

practical knowledge about the nature of a business firm and enabled me to have an

exposure to functioning, structure, promotional activities, working environment etc. of

the organization.

Vimal Jyothi Institute of Management and Research Chemperi, Kannur Page | 70


INTERVIEW SCHEDULE

PRODUCTION DEPARTMENT

Interviewee: Mr. Karthik Ajay

Designation: Asst. Production Manager

• What are the duties and responsibilities of the Production Manager?

• What are the main functions taking place in production department?

• What are the strategies adopted to improve your product quality?

• How the quality assurance maintained?

• What are the techniques adopted by the company to reduce its wastage?

• What are the tools and techniques using for production?

• What are the main issues in production areas?

• How the company tries to reduce accidents in manufacturing units?

HUMAN RESOURCE DEPARTMENT

Interviewee: Mr. Madhu T.K

Designation: HR Manager

• What are the duties and responsibilities of the HR Manager?

• How much is your employee strength?

• What all welfare benefits do you provide for your employees?

• How employees are motivated in the organization?

• How is your department recruiting employees to the organization?

• What are the measures a firm tries to reduce turnover?


MARKETING DEPARTMENT

Interviewee: Mr. Suresh Babu

Designation: Marketing Manager

• What are the challenges faced by marketing manager?

• What are the promotional strategies adopted by the company?

• Who are the main competitors?

• What are the duties and responsibilities of the Marketing Manager?

• How do you come to know about the customer preferences?

FINANCE DEPARTMENT

Interviewee: Mr. Satheesh Paul

Designation: Finance Manager

• What are the main objectives of the finance department?

• What are the duties and responsibilities of a finance manager in the company?

• How transactions are done in your company?

• What are the challenges faced by financial manager, due to shortage of

resources?

• Does the company adopt any type of computer software?


PURCHASE DEPARTMENT

Interviewee: Mr. Sajoy Bose

Designation: Purchase Manager

• Can you give a brief explanation about department?

• How much money you will spend for purchasing raw materials?

• Which transportation mode is used for bringing raw materials?

• Which inventory control technique is used by your company?

• How many employees are working in this department?

• What are the main issues of the department?

• What remedial measures are taken?


BIBLIOGRAPHY

Books

• K. Philip. (2008). Marketing Management. New Delhi: TATA MC Graw.

• Kothari. (2004). Research Methodology Methods and Techniques. NewAge

International.

• Pandy, I. (2008). Essentials of Finance Management. New Delhi: vikas

publishers.

• Potty, L. R. (2009). Human Resource Management. Mumbai: Pratiba

Publications.

• S, M. (2007). Financial Management. New Delhi: Sulthan chand and sons.

Website

• www.indigopaints.com

• https://indigopaints.com.np

• https://craft.co/indigopaints.in

You might also like