Objective

Establish effective supply system of packing material to USL and grow with them from Rs 374 m to Rs 750 m with in 3 years period by reducing cost factors and improving communication method and direct business relationship.

USL Turnover Rs Billion

Year 2010/11 2011/12 2012/13 2013/14 2014/15 45 40 Rs Billion 24 28 31 35 41 % 19 11 13 17
41 35 31 28 24

35
30 25

20
15 10 5 0
2010/11 2011/12 2012/13 2013/14 2014/15
3

Phoenix Turnover Rs m
Year 2010/11 2011/12 2012/13 2013/14 2014/15 PC 72 114 168 180 300 TB 95 95 98 114 150 Food 2 8 49 80 150 Tube Total 169 217 315 374 750 %
22 45 19 101
PC TB Food Tube

150

800 700 600

150

500
400 300
80 49 2 95 72

150

150

200
100 0

8 95
114

98

114 300

168

180

2010/11

2011/12

2012/13

2013/14

2014/15
4

Current Situation
Operating in two different location
PC and Food items at Makandura Tooth brush at Welisara

PC Production
PRODUCT QTY MC CT MC HR CAPACITY UTILIZATION

1 PBC 50 ml 2 PBC 100 ml 3 PBC 200 ML 4 Vaseline 100 ml 5 Vaseline 300 ml 7 Ponds 100 g 8 Lux 120 ml 9 lux 220 ml

150,000 BM - 19 270,000 BM - 03 30,000 20,000 50,000 20,000 50,000 BM - 28 BM - 28 BM - 12 BM - 12 BM - 12 300,000 BM - 15

300 550 400 550 360 550 550 360

588 BM - 19 - 82 % 578 BM - 03 - 89 % 88 642 BM - 15 - 89 % 65 43 163 BM - 28 - 66 % 107 BM - 12 - 43 %

10 Ponds TV100 ml
11 Domex 250 ml 12 Domex 500 ml 13 PBC Lids 14 Ponds Lids

30,000
30,000 50,000 500,000 30,000

BM - 03
BM - 28 BM - 28 IM - 50 IM - 50

550
300 250 1200 400

64
118 235 490 IM - 50 - 90 % 88
6

Current Labour Allocation

Machine MC No
BM - 03
BM - 12 BM - 15 BM - 19 BM - 28 IM - 50 Total Other RM QC Prod; Super: Maintenance

Labour Allocation
01
01 01 0.5 1.5 02 07 01 0.5 0.5 2.5

QC
Total Printing Labeling & Sleeving Prod; Super; FG Total

0.5
05 09 0.5 1.0 10.5

Per shift Production -07 Supporting service - 05 Shift total - 12 Total - 36 (3 shift) Day shift - 10.5 Total - 47 nos

Project Plan
Including 4 no of steps
Shifting all FG stock to Horana and supply to USL as a daily basis Relocate BM and IM Relocate Tooth brush operation Establish new Tube machine

FG Storage
Maintaining 2 weeks buffer stock To eliminate delivery issues Reduce our stock holding cost Minimize the communication gap Hand over pallet by pallet Use fork leaf

2 week buffer stock and required space

ITEM QTY No of Items per pallet 12096 9216 4320 10368 3348 5760 5760 4800 6912 2304 1152 96000 72000 2700 44 No of SKU 4 8 4 3 3 2 3 4 1 3 3 4 1 1 No of Pallets 5 14 3 13 3 4 2 5 2 11 22 3 0 19 106 Required Pallet with SKU 8 21 6 15 5 5 3 8 2 12 22 6 1 19 133 Required Space Sq feet 162 425 122 304 101 101 61 162 41 243 446 122 20 385 2,693
1 2 3 4 5 7 8 9 10 11 12 13 14 15

PBC 50 ml PBC 100 ml PBC 200 ML Vaseline 100 ml Vaseline 300 ml Ponds 100 g Lux 120 ml lux 220 ml Ponds TV100 ml Domex 300 ml Domex 500 ml PBC Lids Ponds Lids Phoenix Jar

65000 130000 13000 135000 10000 25000 10000 25000 13000 25000 25000 250000 13000 50000

10

Requirements
No of pallet required 140 nos Required space - 6800 sqft

11

Relocate BM & IM Machine

Option 1 BM separate production line and printing separate production line
Machine MC No Labour Allocation 0.5 0.5 0.5 0.5 1.0 1.0 04 01 0.5 0.5 1.0 3.0 7.0 9.0 2.0 11.0 21.0 32.0 Remarks

Other

Printing

BM - 03 BM - 12 BM - 15 BM - 19 BM - 28 IM - 50 Total RM QC Prod; Super: Maintenance Total Shift Total Labeling & Sleeving FG Total Shift total Grand Total

Conveyor with deflashing Conveyor with deflashing Conveyor with deflashing Conveyor with deflashing Deflashing Lid closing unit

12

Option 2 BM machine couple with online printing

Machine MC No BM - 15 BM - 03 BM - 19 BM - 12 BM - 28 IM - 50 Total RM PS QC Maint: Remarks Direct couple with labeling MC Couple with shrink tunnel -1 Couple with shrink tunnel -1 Couple with shrink tunnel - 2 Labour Allocation BM 0 01 01 01 01 01 05 01 0.5 0.5 1.0 03 11 33 02 35 Labour Allocation Printing 01 0.65 0.65 0.65

03

Other

Day

Total Shift Total Total 3 shift FG & RM Total

13

Option - 3
BM 28 replaced by New 3 layer machine In addition to other product Can be produced Dove containers Carder not change BM 28 can be used for another products

14

Comparison of labour allocation Present ,Option 1 & Option 2

Present Carder
Shift - Prod Shift - Others Shift - Total Total 3 shift Day - Printing Day FG Grand Total 07 05 12 36 9.5 01 47

Option - 1 Reduction % Option - 2 Reduction %

04 03 07 21 09 02 32 43 40 44 42 05 (100) 32 08 03 11 33 02 35 (13) 40 8.33 8 (100) 25.53

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Potential New Business

Containers Lids Tube

16

Containers
Product Domex 300 ml Monthly Qty Monthly Turn Annual Over Rs Turnover Rs 25,000 200,000 2,400,000

Dove 200 ml

25,000
Total

225,000
425,000

2,700,000
5,100,000

These moulds can be produced on new 3 layer machine USL will provide the Domex mould and Dove mould we have to make.
17

Lids
Product Monthly Qty Monthly TO Rs 1,320,000 770,000 990,000 Annual TO Rs 15,840,000 9,240,000 11,880,000 Moulds Cost USL USL USL Vaseline 100 ml 240,000 Sunslik 100 ml 144,000

Lifebuoy 100ml 180,000

Domex lids
Total

80,000

320,000
3,400,000

3,840,000
40,000,000

USL

USL will provide the mould cost, but we have to bear the machine cost Refurbished MC will be ready on mid-June
18

Tube
USL agreed to give us a 50 % of orders Annual Turn over 150 m We have to purchase a Machine

19

Phoenix Market Share

PC & Food

Description USL packing buy Phoenix supply Share - % TB Description USL packing buy Phoenix supply Share - %
Tubes Description USL packing buy Phoenix supply Share - %

2012/13 500 217 43.4

2013/2014 560 260 46.42

2014/2015 672 450 with promotion 66.96

2012/13 400 98 24.5

2012/13 288 0

2013/2014 460 114 24.78

2013/2014 322 0

2014/2015 552 150 27.17

2014/2015 386 150 39
20

Cost Benefit
Description Man Power Transport Makandura 47 Rs 1,175,000 Rs 400,000 Horana 32 Rs 800,000 Rs 100,000 Saving per month Rs 375,000 Rs 300,000 Rs 675,000

21

Investment
Required cost per
To start step 1 Rs. To start step 2 Rs

22

Our Vision by end 2015

23

Thanks

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