GLOBAL BUSINESS PROJECT

COMPANY ANALYSIS
&
BUSINESS PLAN
REPORT

ACKNOWLEDGEMENT

We would like to sincerely thank our GBP Faculty Ms. Shilpi Banerjee for her
excellent teaching and guidance. Through her wonderful explanation, we have
learnt a lot of new things. She supported and guided us throughout the course of
this project.

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We would also like to thank IBS Hyderabad and the management for this
wonderful opportunity. A lot of knowledge and practical skills have been gained
from studying at this University.

Lastly, we would also like to thank the GBP faculty department for their
contribution in making us learn practical skills such as Project reports and
presentations. We want to show sincere gratitude to them for enabling the
smooth functioning of this course subject.

EXECUTIVE SUMMARY

The purpose of this Report is to analyze the given companies carefully and stringently.
The company no. 1 in this report is Tata chemicals. We started it off by introducing the
company and its approximate annual revenue figure and then we moved onto the key
personnel of the company and their profile. The board of directors also include atleast 2
women as per the guidelines given by the Government.
We have also covered the Business model of Tata chemicals, its revenue structure, and its
product portfolio which includes: Basic chemicals and specialty products. TCL gets most of
its revenue from soda ash and it also operates in the international markets which include
America, Indian subcontinent, Southeast Asia, Middle East, Africa, EU and the UK.

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Besides these, the report also contains the cost-structure analysis and the analysis of various
financial ratios of the company such as profitability ratios, coverage ratios, turnover ratios etc
which determine the financial state of the company.
This report also contains the USP and the competitive advantage of the company and its
stakeholder analysis.
The best practices of Tata chemicals is also explained here such as sustainability, reducing
carbon footprints, leveraging export opportunities etc.
Finally, the report also includes ESG framework in which TCL specially focuses on
sustainability. This is elaborated further more in the report. CSR activities and initiatives
taken by tata chemicals is also explained in the report.

Company number - I
INTRODUCTION TO THE COMPANY: TATA CHEMICALS.
Year of Establishment: 1939
Size of the Company in terms of Revenue and Net profit: 16,789 Crores INR, 2023.
Key Personnel & Management Profile:
 R. Mukundan, Managing Director &CEO

Education:
Harvard Business School, AMP Management.
Faculty of Management Studies - University of Delhi, MBA.
IIT Roorkee, (BE, Electricals)

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 Experience:
Tata AutoComp Ltd. – 5 years.
GM (Tata AutoComp Ltd.) – 4 years.
Tata Chemicals – 15 years.

 Zareer Langrana, Executive Director.

Education: Mr. Langrana is an economics graduate from the University of Madras and
holds a post graduate qualification in business management from XLRI, Jamshedpur.
Mr Langrana has attended advanced executive development programmes at Harvard
Business School and other institutions.

Experience:
Zarir Langrana currently heads the Global Chemicals Business of Tata Chemicals and
is responsible for operations and growth of the inorganic chemicals business and the
new ventures in Nutraceuticals and Silica.
In the past, Mr Langrana has headed the global marketing and strategy function
overseeing and directing all sales and marketing plans, developments, growth and
new product activities and processes in these two areas for its global chemicals
business across the four continents where it operates.
He has been with Tata Chemicals for over thirty years.

 Nandakumar S. Tirumalai, CFO

Education: Mr. Tirumalai graduated with a Bachelor of Commerce from Bangalore

University in 1991 and became a Member of the Institute of Chartered Accountants of
India & Member of the Institute of Cost Accountants of India in 1994.

Experience:
He has around 28 years post qualification experience in areas of Treasury & Investors
relations, financial controllership, financial planning and analysis, business finance,
Subsidiaries Management and M&A in diverse industry verticals (FMCG, Agri
commodities, financial services, Textiles, Apparel, Infrastructure and Retail) in multi-
cultural environments.

Before joining the Tata Group in 2012, Mr Nandakumar started his career as a
Management Trainee in 1994 with Asea Brown Boveri (ABB) Limited, after which he
spent 12 years in ITC Limited in various roles, Reliance Securities as CFO (2007-
2009) and thereafter in Raymond Limited as Director – Treasury, Retail and FMCG.
In 2018, he moved to Titan Company Limited as Vice President – Corporate Finance.

Board of Directors:
 Vibha Paul Rashi, Non-Executive, Independent Director.

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 Education:
Ms. Vibha holds a BA Degree in Economics from Delhi University and an MBA with
specialisation in marketing from the Faculty of Management Studies, New Delhi.

Experience:
She is a marketing professional and experienced business leader who has worked with
Titan, PepsiCo, Max India and Future Group with stints across the globe.
Her last role was as the Executive Director, Brand and Human Capital of Max India
prior to which she was the Director, marketing and customer strategy at the Future
Group. She has worked at senior positions in branding, strategy, innovation and
human capital around the world. She has been with PepsiCo for 17 years in leadership
roles in the areas of marketing and innovation in India, US and UK. She was also one
of the founding team members of PepsiCo and Titan watches when they started
operations in India.

 Padmini Khare Kaicker, Non-Executive, Independent Director.

Education:
Ms Kaicker joined the accountancy profession in 1990 after completing her B.Sc. in
Mathematics. She is a qualified Chartered Accountant from the Institute of Chartered
Accountants of India, a Certified Public Accountant (USA) and a Diploma holder in
Business Finance from the Institute of Chartered Financial Analysts of India.

Experience:
She has over 30 years of experience serving large and midsized clients in several
sectors in areas of audit, taxation, corporate finance, risk management and corporate
governance. She also has expertise in the area of Corporate Advisory, M&A and
restructuring activities. Ms Kaicker is serving on the Boards of reputed companies,
including being Chairperson of the Audit Committees.

 N. Chandrasekaran, Non-Executive, Non-Independent Director.

Education and Experience:
N Chandrasekaran was appointed as a Director and Chairman on the Board of Tata
Chemicals with effect from November 24, 2020. Mr Chandrasekaran, is the Chairman
of the Board at Tata Sons Private Limited, promoter of the Company. He joined the
Board of Tata Sons in October 2016 and was appointed Chairman in January 2017. He
also chairs the Boards of several group operating companies, including Tata Steel,
Tata Motors, Tata Power, Air India, Tata Consumer Products, Indian Hotels Company
Limited and Tata Consultancy Services (TCS) – of which he was Chief Executive
from 2009-17.
He also has been awarded several honorary doctorates by leading Universities in India
and internationally, including an honorary Doctor of Letters from Macquarie
University, Australia, Doctor of Letters from the Regional Engineering College,
Trichy, Tamil Nadu, where he completed a Master's degree in Computer Applications
before joining TCS in 1987.

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Industry the company operates in: Chemical Industry.
Nurturing Chemistry for a Better World
ABOUT TATA CHEMICALS
Rooted in the Tata Group legacy, Tata Chemicals Limited ('TCL' or 'the Company') is a
sustainable chemistry solutions Company,
driven by science and powered by innovation. The Company stands tall on the chemicals
industry landscape as a business and
market leader. We have a global footprint spanning with customers in over 99 countries
across six continents.
Sustainability is woven into our strategy. We are focussed on harnessing green chemistry to
deliver long-term value to
our stakeholders.

BUSINESS MODEL
What does the company do?
Tata chemicals operate through two verticals - Basic Chemistry Products and Specialty
Products. The company's Basic Chemistry product range provides key ingredients to many
of the world's leading brands for glass, detergents, pharma, biscuit manufacturing, bakeries,
and other industries.
What makes it different from others?
The major drivers of their strong competitive edge are operational excellence,
customer-centric approach and sustainability focus.
Operational Excellence
Ÿ Green chemistry principles in design & development
Ÿ Access to low-cost feedstock / raw materials
Ÿ Operational efficiencies supported by automation and technology.
Ÿ Supply chain efficiencies: logistics and warehousing optimisation & costs.

Customer Centricity
Ÿ Innovation
Ÿ Customer relationship management (VoC / feedback)
Ÿ Value-added services: Just in Time
Ÿ Product customisation
Ÿ Quality and consistency.

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Sustainability
Ÿ Investors’ trust and support
Ÿ Product portfolio aligned to sustainability growth drivers
Ÿ Product portfolio with low environment footprint (carbon, water, energy etc.)
Ÿ De-risking from the carbon markets
Ÿ Strong linkages with value chain partners
Ÿ Access to sustainable capital.

PRODUCT PORTFOLIO
Basic Chemistry Business
Tata Chemicals is into Chemistry Business and is modelled to the evolving needs of industrial
customers around the globe. Their world-class manufacturing facilities are located
strategically across four continents, enabling them to provide high-quality products and
services to their growing customer network through a large and well-entrenched distribution
network. Apart from leading global and regional detergent and glass manufacturers, their
customer base is spread over diverse industries like food, animal feed, power generation,
pharmaceuticals and chemical manufacturing. We manufacture soda ash using both synthetic
and natural trona mining processes resulting in lower carbon emission intensity.
 Soda Ash
 Sodium Bicarbonate
 Salt

Specialty Products Business

Tata’s Specialty Chemistry business segment comprises Specialty Silica, Prebiotics,
Agrochemicals & Seeds.
The basic chemistry products is used to manufacture a range of Specialty Silica products.
Their foray into specialty products has been driven by Pune Innovation Centre’s focussed
R&D around chemistry-based material solutions. Their high-performance, differentiated
materials are essential inputs for varied industries. Tata’s specialty silica products are finding
great demand in the manufacture of high-performance and fuel-efficient green tyres amidst
tightening automotive emission standards, labelling requirement of tyres, and the growing
Electric Vehicles (EVs) demand. There is also a growing demand for these materials in other
application segments like silicone rubbers, battery separators, technical rubber goods and oral
care.

REVENUE ANALYSIS

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Revenue from the Products
The Basic Chemistry portfolio led by Soda Ash grew by 35% on the back of robust demand
across geographies and application sectors including demand from solar glass and lithium
carbonate. Salt and Sodium Bicarbonate also witnessed steady demand. The Company
recorded its highest ever sales of salt at 16.28 Lakh MT. With commissioning of carbon
capture utilisation plant, UK is now producing high grade Sodium Bicarbonate with own
CO2 and has also reduced process emissions by 10%, also making it a circular process. The
core portfolio led by Soda Ash and Sodium Bicarbonate is growing.
The Specialty Products revenue grew by 13% in FY 2022-23. Rallis' (A subsidiary of TCL)
business grew by 14% in a challenging business environment; however, margins were
affected due to steep cost volatility and price pressures mainly in exports business. Rallis has
set its ambition to emerge as partner of choice to Indian farmers by deeper engagement with
Agri-Ecosystem. Specialty Silica sales grew by 69% driven by emerging applications, such
as green tyres, silicones and battery separators. Prebiotics developed on a sustainable
fermentation platform, also improved its capacity utilisation. The Specialty Products
businesses need continued support and they have potential to deliver sustained growth.

Revenue from Other countries

TCL runs its business in the Indian subcontinent, Southeast Asia, Middle East, Africa, EU,
the UK and the America. It has manufacturing facilities in Winnington, Lostock and
Middlewich in UK.
Here’s the Revenue that TCL earns from its business in Asia and other countries.

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In the above infographics, we can infer that TCS earns most of its revenue from Asia, then
America followed by Europe and Africa.
Thus, its Revenue portfolio is diversified.

COST STRUCTURE ANALYSIS

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For each year, let’s express the total cost as a percentage of the total revenue.
= (Total expenses for the year/ Total revenue for the year)* 100
2019
(9478.46/10,746.18)*100 = 88.20%
2020
(9415.96/10,667.87)*100 = 88.26%
2021
(9825.85/10,434.22)*100 = 94.16%
2022
(11,426.45/12,878.1)*100 = 88.72%
2023
(14,265/17,007)*100 = 83.87%
From the above calculations, we can say that the cost-revenue relationship is better in the
year 2023 with total cost being 83.87% of the total revenue. Whereas, for the year 2021, The
cost-revenue difference is very small with the total cost being 94.16% of the total revenue.
This means that the cost is high for that year and the revenue is a little lower than the ideal
figure.
For the years, 2019, 2020 and 2022 the total cost and the total revenue proportions are the
same with the total cost being approximately 88% of the total revenue for those years.
Thus, ideally the cost must be as minimum as possible and the revenue/profit must be as high.

FINANCIAL RATIOS:
The financial ratios of TCL is displayed as follows:

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PROFITABILITY ANALYSIS
2023 2022 2021 2020 2019

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The profit is highest in the year 2020 and the lowest in year 2021, presumably due to covid-
19 effect. But after 2021, the profits started rising slowly and now stands at 2,317 Cr INR.
If we take 2020 as the base year, then the percentage decrease from 2020 revenue to 2023
revenue stands at 66.9%.
TCL is still keeping up and has a long way to go in order to increase profits.
Let’s look at the Profitability ratios of TCL for 2023 and compare it with previous year 2022.
Net profit Ratio
In 2022, the Net profit Ratio was 21.21% and in 2023, it is 20.9% there is a difference of
0.31%. we can say that the net profit ratio of 2023 is better than the previous year.
Return on Equity
In 2022, the ROE was 5.61% and in 2023, it is 6.56%. hence, we can say that the ROE of
2023 is better than that previous year.
Return on Investment
In 2022 – 5.61% ; in 2023- 6.56%
The ROI of 2023 is better than the previous year.

LIQUIDITY ANALYSIS
Current ratio is one of the ratios to analyse liquidity of the company.
The higher the ratio is, the more capable you are of paying off your debts. If your current
ratio is low, it means you will have a difficult time paying your immediate debts and
liabilities. In general, a current ratio of 2 or higher is considered good, and anything lower
than 2 is a cause for concern.
In 2022, the Current ratio was 2.52 and in 2023, it is 2.20.
For TCL, the current ratio is quite good and hence it is capable of paying off its short-term
debts. But if we compare 2022 and 2023, then the current ratio of 2022 is better.

SOLVENCY ANALYSIS
Debt-Equity Ratio
The debt-to-equity ratio (D/E ratio) shows how much debt a company has compared to its
assets. It is found by dividing a company's total debt by total shareholder equity. A higher
D/E ratio means the company may have a harder time covering its liabilities.
For TCL, in 2023 this ratio is 0.319 which means that it does hold the ability to pay off long
term debts.
Interest coverage Ratio

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In 2022, this ratios for TCL is 8.46% = 0.0846 and in 2023, it is 9.95% = 0.0995.
a lower ratio indicates that less operating profits are available to meet interest payments and
that the company is more vulnerable to volatile interest rates. A higher interest coverage
ratio indicates stronger financial health – the company is more capable of meeting interest
obligations.
The ideal interest coverage ratio is 1.5. But in TCL’s case it is less than 1.5 which means that
its ability to repay long term debt and interest is weak.

CAPEX ANALYSIS
This analyses the long-term investments of the company.
Return on Assets
2022- 4.71%
2023- 5.74%
A ROA of over 5% is generally considered good and over 20% excellent.
For TCL, the ROA ratio is lesser than 5% and thus TCL is not generating good amount of
profit from its total assets.
Asset turnover ratio
The asset turnover ratio is a measurement that shows how efficiently a company is using
its owned resources to generate revenue or sales. The ratio compares the company's gross
revenue to the average total number of assets to reveal how many sales were generated from
every rupee of company assets.
2022 – 0.23
2023 – 0.28
A good asset turnover ratio is when it is above 1, since it implies that the company is fully
utilising its owned resources to generate sales revenue. The higher the ratio, the better. It
means that the company is earning more revenue by using its resources best.
In Tata’s case, the ratio is below 1 which is not a good sign.

COMPETITIVE ADVANTAGE
Well-entrenched position in domestic market
 Deep understanding and long association with the Indian farming community
 Closely connected with millions of farmers
 Extensive dealer network covering 80% of India’s districts
Innovative and sustainable solutions portfolio
 Wide range of safe and sustainable products in the relevant agri input value chain,
supported by strong pipeline
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  Diversified crop portfolio in seeds, covering both field crops and vegetables
 In-house R&D to leverage and enhance multiple partnerships in Indian and global
markets
Operational excellence
 Manufacturing capacity to serve Indian and global market
 Extensive dealer and retail reach
 Global leadership in most of the active ingredients it manufactures.

SWOT Analysis
Strengths:

1. The company holds a monopoly in some key products, such as iodized salt and water
purifier.
2. Strong R&D set up and patented products in both India (Tata Chemicals Innovation
Center) and Africa.
3. The brand name of Tata signifies trust and customer loyalty.
4. Export sales in diverse regions of Europe, East Africa, South East Asia, and the
Middle East
5. String brand equity and top brand recall in the industry
6. Has a strong workforce of around 5000 employees

Weaknesses:

1. Operations limited to India and Africa, limited global penetration

2. The facilities in India near Mithapur, Gujarat have witnessed several renovations due
to earthquakes, labor strikes, social upheavals, etc.

Opportunities:

1. Low penetration of agricultural products in order to minimize transmission and

distribution in the market
2. Implementation of Accelerated Power Development & Reforms Program (APDRP) to
prevent losses occurring due to power theft, pilferages and improper billing
3. Africa is a big prospect for future growth and initial setups in The dark continent can
bring revenue flows in the future, especially from the consumer goods segment.
4. Acquisitions of Brunner Mond of UK, General Chemical Industrial Products Inc. of
USA and the ammonia-urea fertilizer complex in Gabon have resulted in increased
capacities
5. Seed research and development is in full swing with the Joint venture between Tata
Chemicals and Singapore’s Temasek Life Sciences Laboratory.

Threats:

1. Contractors’ and labor strikes, especially in Eastern India at Haldia have resulted in
shutdowns and major reshuffling of the management.

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 2. African communities focused on preventing the industrialization of their environment
have launched small-scale uprisings on the construction of soda ash plants in
Tanzania.
3. Anti—dumping and trade regulations are becoming increasingly stringent and
prohibitory.

STAKEHOLDER ANALYSIS
“We believe we have an obligation to address the suggestions and concerns of our
stakeholders. We feel it is essential to build and nurture trusted relationships, and strengthen
our reputation as a responsible and sustainable organisation. This will help propel our
inclusive and sustainable growth objective, and help us transcend our business goals to
positively impact all our stakeholder groups. We undertake regular engagement exercises to
measure the quality of our relationships with our stakeholders and make informed decisions.
This is essential to our purpose of serving society through science, and creating value for our
stakeholders.”
- TATA CHEMICALS

Customers
KPI
Product quality and availability, responsiveness to needs, after-sales service, responsible
guidelines / manufacturing, climate change disclosures, life cycle assessment
Engagement Methods
Website ECRM, distributors / retailers/ direct customers / achievers’ meets, senior leader-
customer meets / visits, customer plant visits, COO club, key account management
workshops, focus group discussions, trade body memberships, complaints management,
helpdesk, conferences, joint BD plans, information on packaging, customer surveys, NPS.

Shareholders
KPI
Dividends, profitability and financial stability, robust ESG practices, climate change risks,
cyber risks, growth prospects.
Engagement Methods
Annual general meeting, shareholder meets, emails, Stock Exchange (SE) intimations,
investor/analyst meets/ conference calls, annual reports, quarterly results, media releases,
Company/SE website.

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Employees
KPI
Responsible Care (RC), innovation, operational efficiencies, improvement areas, long-term
strategy plans, training and awareness, responsible marketing, brand communication, health,
safety and engagement initiatives.
Engagement Methods
Senior leaders’ communication/ talk/forum, town hall briefing, goal setting and performance
appraisal meetings/reviews, exit interviews, union meetings, wellness initiatives, engagement
surveys, emails, intranet, flat screens, websites, poster campaigns, house magazines,
confluence, circulars, quarterly publications, newsletters.

Suppliers/Partners
KPI
Quality, timely delivery and payments, ESG consideration (sustainability, safety checks,
compliances, ethical behaviour), ISO and OHSAS standards, collaboration and digitalisation
opportunities.
Engagement Methods
Pre-qualification/vetting, communication and partnership meets, plant visits, MoUs and
framework agreements, trade association meets/seminars, professional networks, Bhagidhari
Sabha, contract management/ review, product workshops/on-site presentations, satisfaction
surveys, Pro Care helpdesk.

Government
KPI
Strong ESG practices (climate change roadmap, frameworks for sustainability and beyond
compliance and RC, changes in regulatory frameworks, skill and capacity building,
employment, environmental measures), policy advocacy, timely contribution to
exchequer/local infrastructure, proactive engagement.
Engagement methods
Advocacy meetings with local/state/ national governments and ministries, seminars, media
releases, conferences, membership in local enterprise partnerships and industry bodies(ICC,
IMA, CII, CIA, ESAPA, RC, UNGC)

Community/Society
KPI
RC, waste management, integrated water management, clean water, climate change impacts,
community development, self-sustainability, livelihood support, disaster relief, support of the
UN SDGs building capacity of future leaders, digital eco-system development.

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Engagement Methods
Meets (of community/local authority and town council/committee/location head/SWOT
council), community visits and projects, partnerships with local charities, volunteerism,
seminars/ conferences.

BEST PRACTICES
 Sustainability
The sustainability scope at Tata Chemicals encompasses reduction of the
environmental impact of manufacturing and other business operations (led by Soda
Ash) while maintaining the economic viability of its products.

Tata chemicals follows sustainability at every point of place possible.

For eg. Recycling waste heat: TCL has initiated the installation of a
Steam Rankine Cycle System (SRC) for trapping waste and reusing it in the
manufacturing process. The production of cement is an energy-intensive process that
requires high fuel consumption in the kilns. Nearly 40-50% of total thermal energy is
ideally required for the clinker manufacturing process. Flue gases of preheater and
cooler being vented contain 30-35% thermal energy. In SRC, the exhaust gases
released from the rotary kiln pass through preheaters (PH) and reach the preheater
boiler.
The new system will reduce specific energy consumption by 18%, thus reinforcing
their theme of “Sustainable Chemistry”.

 Enabling 10% carbon footprint reduction

In 2020-21, TCE constructed the Carbon Capture and Utilisation plant (CCU) for
capturing CO2 from its gas-fired Combined Heat and Power plant (CHP) at
Winnington, Northwich. The plant was commissioned in August 2021 and the first
CO2 was captured in September 2021. EIGA quality approvals were obtained the
same month, after which all of the CO2 needs of the TCE Sodium Bicarbonate(SB)
plant at Winnington have been fulfilled from the new CCU plant. Initiated in 2018,
the project is the first industrial scale CCU plant in the UK.

The project has yielded excellent outcomes. Commissioned in an exceptionally short

period, the CCU has been reducing CO2 emissions from the CHP by 40,000 tonnes
per annum, which is equivalent to 11% of its total emissions.

 Leveraging Export opportunity

TCL’s presence across four continents gives them a unique position, and equips them
to synergise and deliver superior value to global and regional customers. TCL is
committed to investing in increasing our capacities to service the growing global
demand of soda ash, while focussing on increasing our productivity, cost
competitiveness and sustainability metrics.

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 The Soda Ash outlook in North America remains positive, with stable local demand
and continued ongoing recovery in export markets. Compared to the synthetic
production process Natural soda ash, process used in the USA, requires lower
amounts of energy and emits lower volumes of carbon dioxide. Energy costs in the
USA are expected to remain lower compared to other regions. Both coal and natural
gas prices are expected to reduce over the course of 2023, making exports from the
USA competitive in Latin America, Australia and South East Asia.

Tata Chemicals North America is one of the leading soda ash manufacturers in the
country, with 20% capacity share of the US domestic market. With TCL’s recent exit
from ANSAC, their direct connect with global customers has now increased allowing
them to focus on growing export opportunities.

Risk Management practices

TCL categorized risks into a risk category: sustainability, strategic, operational, Financial,
Regulatory and policy, Reputational.
TCL’s approach to risk management:
TCL’s Risk Management Framework has matured over the past several years. The framework
identifies, prioritises, manages, monitors and reports both, the key risks as well as the
emerging risks - that can impact the achievement of the organisation’s objectives. The
Company’s Risk Management Framework is founded on sound organisation design principles
and is enabled by an effective review mechanism. Risk management at Tata Chemicals forms
an integral part of the Management’s focus. TCL has adopted an integrated ERM framework,
which has been implemented across the organisation. We adhere to ISO 31000, and to the
Committee of Sponsoring Organisations (COSO) Enterprise Risk Management Framework.

ESG AND CSR

 Environmental
Towards a Sustainable Future.

Environment sustainability is a key metric of Tata Chemicals' ESG journey. They are
committed to creating a more sustainable and equitable future for all. TCL is investing
continuously in chemistries that drive sustainable growth for the company, and long-
term value creation for our stakeholders.
The environment commitments are inspired by Tata Group’s sustainability ambition,
as articulated in its Project Aalingana. They cover the critical areas of Climate,
Resources (Energy, Water & Material), Waste Management, as well as Nature and
Biodiversity.

The brief outlook is displayed below:

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Besides, this TCL is also working on sustainability and Reducing carbon footprints.
 Social
Ensuring a Safe and Healthy Work Environment

At Tata Chemicals, they have ingrained health and safety as an ethos across our
business systems and processes. They believe all accidents are preventable, and the
safety and well-being of people is vital for sustained and sustainable business
growth. Led by their focus on nurturing a Zero Harm workplace environment, TCL
has committed to the creation of organisation-wide culture of safety.
Below is the safety culture proposition of TCL:

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TCL has an integrated SHE policy (Safety, Health Environment) which it follows to ensure
the safety of its people.
 Governance
Promoting Transparent & Ethical Culture.
As a responsible and accountable corporate, TCL continues to enhance our
governance framework to make it more transparent and responsive. They proactively
promote the principles of ethics and integrity within the organisation to embed
sustained excellence in every facet of our business. Their strong governance
philosophy enables sustainable and resilient growth for the Company even in a
complex macro environment.

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CORPORATE SOCIAL RESPONSIBILITY
The Corporate Social Responsibility (‘CSR’) activities of the Company are governed through
the Corporate Social Responsibility Policy (‘CSR Policy’) approved by the Board. The CSR
Policy guides in designing CSR activities for improving quality of life of society and
conserving the environment and biodiversity in a sustainable manner. The CSR Committee of
the Board oversees the implementation of CSR Projects in line with the Company’s CSR
Policy.
The Company has adopted a participatory approach in designing need-based CSR
programmes which are implemented through Tata Chemicals Society for Rural Development
(‘TCSRD’) in partnership with the Tata Trusts and with various government and non-
government institutions. The Company’s CSR programme framework focusses on building
economic capital, ensuring environmental integrity, enablers for social, economic and
environmental development and building social capital.
Building economic capital: The Company focusses on poverty alleviation and creating
livelihoods, linked to farm and non-farm based activities.
Ensuring environmental integrity: The Company’s main focus is on management of natural
resources and conservation of environment. The key programmes include land and water
management activities, waste management, preservation of biodiversity and mitigation of
climate change impacts.
Enablers for social, economic and environmental development: The Company’s
programmes focus on health and nutrition, education and drinking water. The Company
conducts regular health and nutrition camps and also provides health care services. The
education programme focusses on students starting from primary to the post-graduation level.
Educational support is provided for enrolment of children and improving quality of
education. The Company helps to provide clean water through roof rainwater harvesting
structures, repair of hand pumps, installation and maintenance of drinking water pipelines,
supporting households with water purifier systems through Swach Tarang Project.
Building social capital: Building the social capital for long- term sustainability is a key
cross-cutting theme in all these programmes. Women empowerment, reducing inequality of
marginalised communities (through Affirmative Action), partnerships for achieving goals and
setting up sustainable social enterprise models (Okhai and Ncourage Social Enterprise
Foundation) are key initiatives for achieving the same. The Company also endeavours to
respond to disasters that affect any part of India and in the neighbourhood of all its
manufacturing plants.
The Company every financial year, spends at least 2% of the average net profits of the
Company made during the three immediately preceding financial years in pursuance of the
CSR Policy.
The Company will implement its CSR activities in a number of ways i.e. Directly through our
in-house teams and through qualified implementing agencies including our own Trusts,
societies and section 8 companies, TCL’s subsidiaries, The Tata Trusts, Tata Strive and
organisations set up to implement Tata Group Focus Initiatives, and through external expert

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agencies and partners. The Company may also collaborate with other companies for
undertaking projects or CSR activities.

CONCLUSION:
Finally, Tata chemicals as a Business is quite decent. It has a considerable number of products
and a good amount of revenue each year although, in the year, 2021 there was a slump in the
revenue, it is slowly picking up its pace. The financial state of Tata chemicals is quite okay.
Coming to what the company values the most: ‘Sustainability’, it is really appreciable
because being a chemical company it has to be socially responsible towards this planet and
that is why they have a good number of ESG policies and CSR policies.
Overall, with its policies and strategies Tata chemicals could do a great job in improving
itself.

EXECUTIVE SUMMARY

The purpose of this Report is to analyze the given companies carefully and stringently.
The company no. 2 in this report is Pidilite, the company which manufactures the famous
‘Fevicol’. We started this report by introducing the company and its approximate annual
revenue figure and then we moved onto the key personnel of the company and their profile.
The board of directors also include atleast 2 women as per the guidelines given by the
Government but in this company’s case only one female director could be found.
We have also covered the Business model of Pidilite, its revenue structure, and its product
portfolio which include: Adhesives, Textile and Paper Chemicals, Industrial Resins, Leather
Chemicals and more. pidilite gets most of its revenue from fevicol and it also operates in 70+
countries across the globe.
Besides these, the report also contains the cost-structure analysis and the analysis of various
financial ratios of the company such as profitability ratios, coverage ratios, turnover ratios etc
which determine the financial state of the company.
This report also contains the USP and the competitive advantage of the company and its
stakeholder analysis.
The best practices of pidilite is also explained here in this report.
Finally, the report also includes ESG framework and the CSR activities and initiatives taken
by pidilite is also explained in the report.

23
Company number - II
1. Introduction to the Company: PIDILITE
YOE - 1959
REVENUE - 11752 crore (fy23)
Operating income - 1723 crore (fy 23)
net income - 1282 crore (fy 23)
KEY PERSON - Madhukar Parekh and family
INDUSTRY – chemicals

2. Business Model:
Pidilite Industries Limited is an Indian adhesives manufacturing company based in
Andheri (East), Mumbai. The company is the dominant and leading adhesives company
in India. Pidilite also manufactures products across verticals such as art materials and
stationery; food and fabric care; car products, adhesives, and sealants; and speciality
industrial products like adhesives, pigments, textile resins, leather chemicals, and
construction chemicals.

24
3. Product Portfolio:
Pidilite markets the Fevicol range of adhesives. Its other brands are FeviKwik, Dr. Fixit,
Roff, Cyclo, Ranipal, Hobby Ideas, M-seal, and Acron. It also markets and manufactures
WD-40 in India.
The company has manufacturing facilities across India including in Mahad
(Maharashtra), Vapi (Gujarat), Baddi and Kala Amb (both in Himachal Pradesh). In 2022,
Pidilite Industries partnered with 100x.VC.

4. Management Profile:

● Meher Pudumjee - Independent Director

Pidilite Industries, a leading manufacturer of adhesives, sealants and construction chemicals

in India, has appointed Meher Pudumjee as an Additional Director (Independent) on its board
effective from may 18,2022. Pudumjee is the chairperson of Thermax Ltd, a Pune based
global conglomerate focused on providing energy and environmental solutions. A
postgraduate in Chemical Engineering from the Imperial College of Science & Technology,
London, Meher joined Thermax in 1990 and is widely credited for the turnaround of the
company.
Pudumjee represented India at the Asian Business Women Conference in Osaka in 2006. The
World Economic Forum in 2008 selected her as a Young Global Leader for her professional
accomplishment, commitment to society and potential to contribute towards shaping the
future of the world. In 2009, she was named CEO of the Year, by Business Standard.
Pudumjee has also served as the Chairperson of Pune Zonal Council of the Confederation of
Indian Industry (CII).

● Bharat Puri - Managing Director

Bharat’s association with Pidilite began as an Independent Director of the company in 2008.
His career has witnessed many achievements during his tenure at leading Indian and Global
companies. In his last assignment, he was President - Global Chocolate, Gum and Candy
Categories at Mondelez International, Zurich with worldwide responsibilities for the growth
of these categories. Bharat started his career with Asian Paints in 1982 and rose to the
position of General Manager - Sales & Marketing. He then moved to Cadbury in 1998 as
Director of Sales and Marketing for Cadbury India. In 2002, he was appointed Managing
Director South Asia, after which he moved to Singapore in 2006 where he was responsible
for Strategy, Marketing and Sales for the Asia Pacific region. From then onwards, a series of
senior leadership positions at the country, region and global level shaped his career. Bharat
has completed his MBA from the Indian Institute of Management, Ahmedabad.

● Joseph Varghese - Director Operations

Joseph Varghese is the current Director of Operations at Pidilite Industries. Joseph has
previously held the position of Head of Regional logistics for South Asia Pacific at
AkzoNobel Paints Singapore from April 2018 to May 2022. From March 2012 to March
2018, they were the Head of Integrated Supply Chain, Decorative Paints at AkzoNobel India

25
limited. And from March 2006 to February 2012, they were the Manufacturing Manager at
Castrol India Limited.Joseph Varghese has a BSc. Tech in Intermediates & Dyestuffs from the
Institute Of Chemical Technology in Mumbai, a Post Graduate diploma in Supply Chain
Management from the CII Institute of Logistics, and a Bachelor of Science (BSc) in
Chemistry from College. Joseph Varghese reports to Bharat Puri, Managing Director. They
are on a team with Prabhakar Jain - Chief Strategy and Business Development Officer,
Pioneering Businesses, Mayur Danait - Chief Information Officer, and Yogesh Anand -
President, International Business.

● Sandeep Batra Director Finance & Chief Financial Officer

A Chartered Accountant and Company Secretary by qualification, Sandeep joined ICI straight
after qualifying as a CA in 1988. He worked with ICI for 21 years in various business and
corporate roles including running a few businesses of ICI. In 2009 he moved to Pidilite
Industries as their CFO with responsibility for Finance, Legal and Secretarial functions for all
the group companies in India and overseas. In Sep 2015 he joined Crompton Greaves
Consumer Electricals Limited as their CFO. An alumni of South Point School and St.Xaviers
College in Kolkata, he has deep roots in Kolkata the City of Joy. Pastimes include reading,
music and golf.

● Meera Shankar Independent Director

Meera Shankar (73) was appointed as a Non-Executive Independent Director on the Board of
ITC effective September 6, 2012.A Postgraduate in English Literature, she joined the Indian
Foreign Service in 1973 and had an illustrious career spanning 38 years. She served in the
Prime Minister's Office for six years from 1985 to 1991 working on foreign policy and
security matters. Thereafter, she led the Commercial Wing in the Indian Embassy in
Washington as Minister (Commerce) till 1995. She returned as Director General of the Indian
Council of Cultural Relations overseeing India's cultural diplomacy. She has had extensive
experience in South Asia having worked on Bangladesh, Sri Lanka and Maldives as Under
Secretary and Deputy Secretary in the Ministry of External Affairs. Later as Joint Secretary,
she headed divisions dealing with neighbours, Nepal and Bhutan, and the South Asian
Association for Regional Cooperation ('SAARC'). As Additional Secretary, she handled the
UN and international security issues. She served as Ambassador of India to Germany from
2005 to 2009 and then to the United States from 2009 to 2011.She is also an Independent
Director of Pidilite Industries Limited and Adani Transmission Limited, amongst others.

5. Revenue Analysis:

The company's revenue came in at Rs 3,275.1 crore for the first quarter of the current
financial year, as against Rs 3,101.1 crore for the year-ago period, according to a
regulatory filing. Pidilite said the revenue was underpinned by strong growth in volumes.

The most profitable product of Pidilite is fevicol. Fevicol has a 70% share in the
Domestic Market.

Pidilite currently has operations in more than 70 countries with eight facilities outside of
India, including in Bangladesh.

26
 Some of the other countries are Sri Lanka, Nepal, UAE, Egypt ,Kenya ,Ethiopia,
Thailand, Brazil, Singapore, USA, Myanmar, Madagascar, Mauritius, Oman, Qatar,
Bahrain etc.
Total revenue from Overseas subsidiaries of Rs. 575 Cr in FY20.

6. Cost structure analysis:

27
For each year, let’s express the total cost as a percentage of the total revenue.
= (Total expenses for the year/ Total revenue for the year)* 100
2019
(5868.56/7224.6)*100 = 81.23%
2020
(5921.97/7443.9)*100 = 79.55%
2021
(5849.98/7372.11)*100 = 79.35%
2022
(8355.36/9957.26)*100 = 83.91%
2023

28
(10,132.11/11,8848.71)*100 = 85.51%
From the above analysis, we can say that the cost-revenue relationship is the best in the year
2021. This is because the difference between the revenue and total expenses of that year is
high and the total expenses is 79.35% of the total revenue in that year which means 20% is
what we are earning.
On the other hand, the cost-revenue difference is the highest in the year 2023. This means
that the company spent a lot and is earning just the bare minimum, meaning that they would
have to level up and reduce their costs and increase their profits.

FINANCIAL RATIOS ANALYSIS

The important financial ratios of pidilite is as follows:

7. Profitability Analysis:

Net profit Ratio

In 2022, the Net profit Ratio was 17.97% and in 2023, it is 15.82% there is a difference of
0.31%. we can say that the net profit ratio of 2023 is better than the previous year.

Return on Equity

29
 In 2022, the ROE was 20.02% and in 2023, it is 18.69%. hence, we can say that the ROE
of 2022 is better.

8. Liquidity Analysis:

Current ratio is one of the ratios to analyse liquidity of the company.

The higher the ratio is, the more capable you are of paying off your debts. If your current
ratio is low, it means you will have a difficult time paying your immediate debts and
liabilities. In general, a current ratio of 2 or higher is considered good, and anything
lower than 2 is a cause for concern.

In 2022, the Current ratio was 1.71 and in 2023, it is 1.86.

For pidilite, the current ratio is not quite good and hence it is not very capable of paying
off its short-term debts. But if we compare 2022 and 2023, then the current ratio of 2023
is better.

9. Solvency Analysis

Debt-Equity Ratio
The debt-to-equity ratio (D/E ratio) shows how much debt a company has compared to
its assets. It is found by dividing a company's total debt by total shareholder equity. A
higher D/E ratio means the company may have a harder time covering its liabilities.
For pidilite, in 2022 this ratio is 0.02 which means that it does hold the ability to pay off
long term debts.

10.CapEx Analysis:
This analyses the long-term investments of the company.

Return on Assets
2022- 14.05%
2023- 12.98%

A ROA of over 5% is generally considered good and over 20% excellent.

For pidilite, the ROA ratio is greater than 5% and thus it is generating good amount of
profit from its total assets.

Asset turnover ratio

The asset turnover ratio is a measurement that shows how efficiently a company is
using its owned resources to generate revenue or sales. The ratio compares the
company's gross revenue to the average total number of assets to reveal how many sales
were generated from every rupee of company assets.
2022 – 1.04
2023 – 1.17

A good asset turnover ratio is when it is above 1, since it implies that the company is
fully utilizing its owned resources to generate sales revenue. The higher the ratio, the
better. It means that the company is earning more revenue by using its resources best.

30
 In pidilite’s case, the ratio is above 1which is a good sign.

11.Competitive Advantage:
● Strong brand value.
● Effective advertising and marketing (Fevicol ads have become a viral hit among the
masses)
● Market leaders in adhesives, sealants, polymer emulsions, hobby colors and
construction chemicals in India.
● Loyal customers- (Fevicol has become synonymous with adhesives) Strong R&D
center to cater growth and innovations.

Pidilite Industries is one of the leading brands in the industrial products and chemicals sector.
Pidilite Industries SWOT analysis evaluates the brand by its strengths & weaknesses which
are the internal factors along with opportunities & threats which are the external factors. Let
us start the SWOT Analysis of Pidilite Industries:
Strengths
Weaknesses
Opportunities
Threats

•Pidilite Industries Strengths:

The advertising and marketing of Pidilite has been very strong, especially the Fevicol ads
have become a viral hit among the masses.
The name Fevicol has become synonymous with adhesives and has almost become a generic
for anything that sticks. This also has helped other brands of Pidilite such as Fevistik,
Fevikwik, etc. in their sales.
Fevicol and M-seal alone account for more than 50% of the total revenue of Pidilite, which
eases the pressure on the sales of other brands and businesses.
Brand recall and value are extremely strong for Pidilite and have become the star attraction
for many television commercials.
Fevicol ads have also won accolades and awards at major advertising award festivals and
shows.
Strong R&D center to cater to the growing need for innovative products and services.
Above are the strengths in the SWOT Analysis of Pidilite Industries. The strengths of Pidilite
Industries looks at the key internal factors of its business which gives it competitive
advantage in the market and strengthens its position.

•Pidilite Industries Weaknesses:

Acquisition of the Cyclo brand of car care products is a weak factor as India exhibits a very
fragmented market for the same with very little customer loyalty.
Revenue generation is over dependent on Fevicol and M-seal which results in reduced
investments on other brands and businesses.
These were the weaknesses in the Pidilite Industries SWOT Analysis. The weaknesses of a
brand are certain aspects of its business which it can improve.

•Pidilite Industries Opportunities:

31
Pidilite organizes many creative competitions for students and young scholars, such as the
'International Creative Contest' where approx. 800,000 students from 3000 schools
participate. It also helps in promoting the brand very well.
The chemical industry in the world in growing very strongly and focus on emerging
economies in other parts of the world such as Brazil, South Africa, China, Singapore,
Thailand and East Africa is a great opportunity to establish stronghold in the international
market.
Above we covered the opportunities in Pidilite Industries SWOT Analysis. The opportunities
for any brand can include prospects of future growth.

•Pidilite Industries Threats:

The manufacturing cost of Pidilite’s products is largely dependent on crude oil and petroleum
prices which are fluctuating by the minute.
Competitors are equally hard pressed on delivering innovative products and services.
The threats in the SWOT Analysis of Pidilite Industries are as mentioned above. The threats
for any business can be external factors which can negatively impact its business.

12.Stakeholder Analysis:

The process of stakeholder engagement involves identifying key internal and external
stakeholders followed by analyzing the impact of each stakeholder group in our business and
vice versa. Based on the exercise carried out, the Company has prioritized its key
stakeholders to understand their expectations and concerns. Through regular interactions with
the stakeholders across various channels, the Company has been able to strengthen its
relationships and enhance the organizational strategy.

Stakeholder whether Channels of Frequency of purpose and

group identified as communication engagement scope of
vulnerable (annually/half engagement
& yearly/quarterly/ot including key
marginalised hers-please topics and
group specify) concerns raised
(yes/no) during such
engagement

workforce no • Meetings • Ongoing • Skill

• Email development
interaction • Workplace
• Employee satisfaction
satisfaction • Healthy and
survey safe
• Employee operations
engagement • Employee
activities engagement
• Open forums and involvement
• Live chat • Career
progression

32
 • Emotional

customers no Telephone • Ongoing • Availability of

• Email the product
• Customer • Pricing of the
meets product
• Personal visits • Quality of the
• Advertisements product
• Customer • New product
satisfaction development
reports • Logistics
• Efficient
service
• Grievance
redressal and
transparency

investors and no • Media releases •Ongoing/quarterly • Financial

shareholders • Annual reports performance
• Investor meets • Business
• Analyst meets growth
• Contact • Business
through strategy
investor service • Future
centers investments
• Annual general • Transparency
meeting • Good
• Company governance
website practices
• Social
responsibility

dealers no Helpdesk • Ongoing • Product

• E-business availability
portal • Product
• Personal portfolio
interaction • New product
• E- development
communication/ • Market trend
telephonic
conversations
• Dealer
visits/meets

suppliers no • Personal • Ongoing • Long-term

interaction association
• Telephonic • Innovation
conversations opportunities
• Email
communication

33
 local no • Visits • Ongoing • Health
communities • Meetings • Education
• Medical camps • Indirect
• Need economic
assessment impact
• Sanitation

NGOs no • CSR initiatives • Ongoing • Support on

• Telephonic implementation
discussions of
program in
Company's
focus areas
• Support for
community-
based
organizations

14. Best Practices:

Risk Management In compliance with Regulation 21 of the Listing Regulations, a Risk
Management Committee has been constituted by the Board. The Risk Management
Committee, also known as The Risk Management Oversight Committee, is entrusted with
roles and powers as specified in Part D of Schedule II of Listing Regulations. The Company
has laid out a risk management policy for identification and mitigation of risks. The
Company has also constituted a Management Risk Committee which is chaired by the
Managing Director and has Senior Leadership of the Company as its members. The
Management Risk Committee identifies the key risks for the Company, develops and
implements the risk mitigation plan, reviews and monitors the risks and corresponding
mitigation plans on a regular basis and prioritises the risks, if required, depending upon the
effect on the business reputation.
15. ESG AND CSR :
the heightened significance of global climate change, sustainability has emerged as a key
priority. Pidilite Industries Limited ("Company") is committed to comprehensive
organizational development, clearly focusing on embedding Environmental, Social and
Governance (ESG) considerations throughout its value chain. The environmental
performance of the Company was primarily driven by the focus on reduction in consumption
of fresh water & energy, reduction in Greenhouse Gas Emissions, increasing the usage of
renewable energy and reduction and recycling of waste with focus on plastic packaging.
The Corporate Social Responsibility (CSR) initiatives were directed towards the wellbeing of
the vulnerable and marginalised communities and focused on issues such as education,
women empowerment, skill development, agriculture, water management and sanitation. By
incorporating ESG principles into these critical areas, the Company aims to foster a
sustainable business model that creates long-term value for its stakeholders.

34
Over the past few years, the Company has been monitoring its ESG parameters and
publishing its Sustainability Report since FY 2018-19. With a strong foundation in place, the
transformation is based on the concept of sustainable development at the core of its
operations. The leadership sets the tone of the Company’s culture and the practices are
followed across the organisation. The Company has broadened its perspective and
consequently, the strategy is to inculcate more stringent environmental targets along with
social and governance aspects with special focus on climate risks.
This report has been developed in accordance with the guidelines set forth by the Securities
& Exchange Board of India (SEBI) for Business Responsibility and Sustainability Reporting
(BRSR).

CONCLUSION:
Pidilite as a Business is quite decent. It has a considerable number of products and a good
amount of revenue each year. The company especially is good in the liquidity department as
it is very capable of repaying its short-term and long-term debts. The financial state of pidilite
is good. Overall, with its policies and strategies pidilite could do a great job in improving
itself.

EXECUTIVE SUMMARY

This section of the report covers the Business plan that we created on a cosmetics brand that
we want to launch.
The cosmetics brand is an affordable, good quality and cruelty free brand. Our aim is to
position ourselves into customer’s minds in such a way that it creates impact on them. This
impact will make them loyal to the brand.
The company sells cosmetic products such as foundation, compact, lipstick, lip gloss,
eyeliner, mascara etc. besides this, we also sell nail polishes and clip-on fake nails. This is
what differentiates us from the competitors.
The company is strictly against animal testing and instead uses its alternatives.
The report also covers a detailed market study of cosmetics segment and the management
profile required to be working in this business. In the end, we have also covered the
profitability of this business by presenting a forecasted profit and loss statement and a
forecasted balance sheet.

35
 BUSINESS PLAN

INTRODUCTION:
Business idea
Our basic Business idea is ‘cosmetics’.
A "cosmetic" is any substance used to clean, improve or change the complexion, skin,
hair, nails or teeth. Cosmetics include beauty preparations (make-up, perfume, skin cream,
nail polish) and grooming aids (soap, shampoo, shaving cream, deodorant).
Cosmetics is a very large market with huge potential and a huge customer base. We want our
business to be an affordable and good quality beauty brand that is cruelty-free.

Why would it work?

Our business idea will work because it has huge potential.
One of the reasons is because it is a very large market with a large audience. The global
cosmetics market size was valued at USD 262.21 billion in 2022 and is expected to expand
at a compound annual growth rate (CAGR) of 4.2% from 2023 to 2030. Since this market
will keep growing, new entrants like us will have a lot to benefit from this.
Moreover, in today’s generation of social media, appearance very much matters, and good
quality and affordable make-up is a necessity.

36
Besides, with an efficient marketing strategy it will be even more simpler to grow the
Business.

BUSINESS MODEL
What does the company plan to do?
Our Business definitely plans to sell cosmetics such as Foundation, compact, lipstick, primer,
lip glosses, eyeliner, mascara, concealer, kajal etc. Besides this, we also plan to sell nail
polishes and fake clip-on nails of good quality.
But the real question is how are we going to manufacture cosmetics and distribute them. So
here is the basic outline of how we are going to do it:
 Formulation and raw materials acquisition
The very first step of any cosmetics production is to decide on the raw materials that
will be used to create the product.
 Testing and quality control
Once the raw materials have been acquired, they can be tested for quality in order to
ensure that all specifications have been met. Since we are a cruelty-free brand, we
won’t be testing on animals but instead we will be using alternatives such as In-vitro
testing.

 Production and packaging

This phase involves using machines to blend and mix all of the ingredients together
and then packaging them in appropriate colors.
 Distribution and Marketing.
The final step of cosmetic manufacturing is getting the products into stores or online
for customers to purchase. A distribution and marketing plan is necessary to ensure
that the products get into right hands at the right time.
After this production process, we will create an efficient marketing strategy for our beauty
brand so that it can be promoted well.
As a part of marketing, we can use social media platforms such as Instagram to promote our
business. We can also create relevant and viral content by collaborating with influencers as
this is going to get our beauty brand recognition. Besides this, Billboard ads can also be
placed on the busy roads. We can also sell our products on platforms such as nykaa and
amazon.

What makes it different from others?

Our unique selling proposition is that besides selling make-up products, we are also into the
nail department where we sell nail polishes and fake nail clip-ons that can be temporarily put.
Selling clip-on nails is an additional source of revenue as it is cheaper in price and would
attract a lot of customers. These days, where gen-z is living, they focus on every bit of their
appearance from nails to outfits. And so, that is why it would be a hit product for us because
not many make-up brands sell clip-on nails.

37
Besides this, we also sell products that are affordable in price and of good quality.
One of the other things which makes us different is that we do not use animal testing.
Many famous beauty brands today use animal testing in their production process which
tortures and kills animals.
Instead of animal testing, we plan to use a method called in-vitro testing.
Researchers have created “organs-on-chips” that contain human cells grown in a state-of-the-
art system to mimic the structure and function of human organs and organ systems. The chips
can be used instead of animals in disease research, drug testing, cosmetic testing and toxicity
testing and have been shown to replicate human physiology, diseases, and drug responses
more accurately than crude animal experiments do. This method is called in vitro testing.

MARKET STUDY
 Operational efficiency
We plan to source our raw materials by bargaining with our suppliers and get them at the
lowest price possible. Besides, in order to save time and reduce waste, we will follow an
efficient manufacturing process by reusing the extra materials for another product and give
the workers a set time goal.
 Marketing Feasibility
The global cosmetics market size was valued at USD 262.21 billion in 2022 and is
expected to expand at a compound annual growth rate (CAGR) of 4.2% from 2023 to 2030
and hence it is a huge market with a huge audience.
The target market for this segment is women.
As a part of marketing, we can use social media platforms such as Instagram to promote our
business. We can also create relevant and viral content by collaborating with influencers as
this is going to get our beauty brand recognition. Besides this, Billboard ads can also be
placed on the busy roads. We can also sell our products on platforms such as nykaa and
amazon.
 Technical feasibility
The technical part of the production process in this segment is quite complicated as it
involves complex machinery and working. Hence, current and new technology has to be
taken into consideration for this.
 Manpower feasibility
For this, we are going to employ efficient and productive workers with good skill set and
knowledge.

MANAGEMENT PROFILE
 Factory manager

38
Factory Managers oversee plant operations and supervise workers. Their responsibilities
typically include areas such as manufacturing, filling, packaging, assembly, quality control
and safety for the Cosmetic and Beauty products. Candidates are generally expected to have 5
GCSEs minimum, ideally A levels and technical or business degree.
 Logistics Manager
A Logistics Manager manages the supply chain and movement of raw materials, packaging,
bulk, finished Cosmetic and Beauty products and Point of Sale. Everything that comes in and
goes out of the factory. Candidates are generally expected to have 6 GCSEs minimum, ideally
A levels and technical or business degree.
 Head of operations
An operations Manager oversees plant or factory operations and supervises workers. Their
responsibilities typically include supply chain, manufacturing, filling, packaging, assembly,
quality control and safety for Cosmetic and Beauty products. Candidates are generally
expected to have 4 GCSEs minimum, ideally A levels and Technical or Business degree.
 Packaging technologist

Packaging Managers or Packaging Technologists look after the inner and outer packaging
making sure the Cosmetic product is safe, easy to use and attractive to the consumer.

Candidates are generally expected to have 11 GCSE minimum, ideally A levels and
Technical or Business degree.

 Cosmetic production jobs.

A Cosmetic Production Manager manufactures the bulk and often oversees the filling and
packing of the bottles or tubes of Cosmetic, hair, skin, sun and Cosmetic products.

Candidates are generally expected to have 7 GCSEs minimum, ideally A levels and Technical
or Business degrees. Contact us here to find out more about our Cosmetic Production Jobs.

 Purchasing manager

A Buyer or Purchasing Manager helps to ensure the right products are selected to bring into
the business. They are responsible for selecting new products and reviewing the old,
negotiating prices, finding the right suppliers, ensuring products are delivered on time, stock
control, budgeting and maintaining relationships with existing and new suppliers.

 Supply chain manager

A Supply Chain Manager manages the movement of raw materials, packaging, bulk, finished
Cosmetic and Beauty products and Point of Sale. They transfer products from manufacturing
to the retailers to ensure the stores are fully stocked with products on their shelves.
Responsibilities include planning delivery timetables, ensuring stores have enough stock,
over seeing the ordering, manufacturing, packing and delivery of shipments of Cosmetic

39
products. Candidates are generally expected to have 13 GCSEs minimum, ideally A levels
and Technical or Business degree.

 Warehouse manager

A Warehouse Manager receives stock, stores the raw materials, packaging and finished
Cosmetic products before they are despatched to the stores and retailers. Candidates are
generally expected to have 8 GCSEs minimum, ideally A levels and Technical or Business
degree.

 Marketing Manager

A marketing specialist ensures efficient marketing process.

FINANCIAL ANALYSIS

India's beauty and personal care market, presently valued at $16.8 billion, is poised to grow at
a compound annual rate of 11% and hence, the profitability of our company is expected to be
quite decent.

For a start-up cosmetics company, the projected profitability in terms of P&L account and
balance sheet is displayed as follows:

40
we can see in the forecast, the net profits keep increasing as it keeps going on to the year-3.

CONCLUSION:

Overall, the business idea of a cosmetic company is quite decent as it is a very profitable
segment. Despite, there being a lot of competition in this segment, start-ups can still compete
to make a name for themselves by using effective marketing techniques and campaigns which
make impact. Since, Today’s world is largely broad-minded, people will accept and will be
willing to try on new products. Hence, this business is fruitful but only when done with a lot
of research, planning and perfect execution.

REFERENCES

file:///C:/Users/Sharanya%20Beri/Downloads/integrated-annual-report-fy-2022-
23.pdf
https://www.moneycontrol.com/financials/tatachemicals/consolidated-profit-
lossVI/TC#TC
https://ir.tatachemicals.com/2022-23/pdf/Management-Discussion-&-
Analysis.pdf
https://www.tatachemicals.com/about-us/leadership-team/key-management
https://www.tatachemicals.com/about-us/leadership-team/board-of-directors

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https://pidilite.com/wp-content/uploads/2023/07/Annual-Report-2022-2023.pdf
https://www.mbaskool.com/brandguide/industrial-products-and-chemicals/
3499-pidilite-industries.html
https://tradebrains.in/case-study-pidilite-industries/#:~:text=Competitive
%20advantage%3A&text=Strong%20brand%20value.,has%20become
%20synonymous%20with%20adhesives
https://www.moneycontrol.com/financials/pidiliteindustries/profit-lossVI/PI11
https://pidilite.com/our-brands/
https://www.peta.org/issues/animals-used-for-experimentation/alternatives-
animal-testing/

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