PURCHASE AND SALES

PROCEDURE OF CAMPHOR &

ALLIED PRODUCTS LTD

Prepared By :-
Priyanka Tandon
MBA III Semester
OBJECTIVES OF THE STUDY
 To Study the Purchase Procedure at Cap.

 To study the sales procedure at Cap.

 To find out loopholes in their procedures.

GENERAL PROFILE OF THE COMPANY
 Camphor and allied products ltd (CAP) was founded in 1961
by SHRI JAYANT DALAL, a man largely responsible for
breakthrough in the Indian Turpentine industry, as the first
Camphor and terpene based chemicals producing company
in India.
 CAP started production in 1964 with very few items in its
product range. Soon after CAP took strides of development
and rapidly enlarged its scale of operations in both facilities
and personnel.
 Subsequently, within short span of time through combination
of technical and creative competence, CAP has received
tremendous qualitative and quantitative growth
CONTD…..
 CAP products have wide and variety of uses. Its
products are mainly used in other industries as raw
materials.
 Its star products are- camphor, menthol, thymol,
astrolide, pine oil, resins, terpineols.
They impart the gloss to painted surfaces, the
softness to rubber mattresses, the tenacity to tyres,
suppleness to leather and fragrance to soaps,
cosmetics and perfumes.
CAP’s products also find application in
pharmaceuticals. Its products are also used in
medicines, cough syrups, Vicks, balms etc.
PURCHASE PROCEDURE OF CAP
The purchase department carries purchase of raw
material, packing material, spare parts and components,
electrical appliances, plant and machinery items,
laboratory chemicals and equipments, safety
equipments, consumable items of day-to-day use and
stationery etc.
 In order to affect such purchase, the purchase
department receives requisitions from different
department of the company. The purchase order is
placed with the party for supply of material.
CONTD……
 The requisitions come from various departments
signed by the head of the department and sent to the
stores department which then gives consumption trend
of the current year and two past years of the particular
item on the requisition.
 . The requisitions are then forwarded to the purchase
department, which consults the concerned departments
for any change in their requirements. It then gives item
wise rates on the requisition and are sent for purchase.
SALES PROCEDURE OF CAP
 Sales are important for the well being of an
industry. Without affecting optimum sales, a
company cannot survive because all the activities
of an organization move around the potentiality of
the market for sales.
 There are two modes of selling in CAP. Either the
company dispatches the goods from the campus to
their branch offices and then the branch office
markets the products to the customers or the
company directly transports the products to the
customers on their requirements.
CONTD……
 Sales of CAP’s products of Central Marketing is
governed by the Head Office in Delhi, which is
supported by Regional Office in Mumbai,
Calcutta and Chennai.
 Sales is being done by :

 Factory
 Branch Go down
SALES FROM FACTORY
 On receipt of Indent from Branches, Data given therein is
being entered in Camphor which lead to generation of
product choice pending Indent statement.
 As per stock of finished goods available which is being
informed by sales warehouses every day and considering
schedule of dispatch, dispatch instruction (Sales Release
Memo) contains all relevant details essential for dispatch
of material.
 Transportation is provide by approval transporters
having contact with us or as per advice of Branch Office.

 
SALES FROM WAREHOUSE
 On receipt of Indent from Branches, Data given
therein is being entered in Camphor which lead to
generation of product choice pending Indent statement.
 As per stock of finished goods available which is
being informed by sales warehouses every day and
considering schedule of dispatch, dispatch instruction
(Sales Release Memo) contains all relevant details
essential for dispatch of material.
 Transportation is provide by approval transporters
having contact with us or as per advice of Branch
Office.
SWOT ANALYSIS
The overall evaluation of the company’s strength, weakness, opportunities and
threats is called SWOT analysis.

STRENGTHS:-

Strongbrand image.
Good range of product.

No competitors.

Wide distribution network.

WEAKNESSES -
Lack of advertisement.

Lack of customer’s feedback.

.
 
CONTD….
 OPPORTUNITIES:-
 Brand image can be change into volume.
 Huge market potential.
 THREATS:-
 Raw material is being imported that reduced the
profit volume
RESEARCH METHODOLOGY
 A Research Methodology defines the purpose of
the research, how it proceeds, how to measure
progress and what constitute success with respect
to the objectives determined for carrying out the
research study.
 Exploratory research: This kind of research has
the primary objective of development of insights
into the problem. It studies the main area where
the problem lies and also tries to evaluate some
appropriate courses of action.
CONTD….
 The research methodology for the present study
has been adopted to reflect these realties and help
reach the logical conclusion in an objective and
scientific manner.
 The present study contemplated an exploratory
research.
DATA COLLECTION

 Sources of data:
Primary Data which included the input received
from directly the officials and employees through
questionnaire and interview.
Secondary Data: From the books and internet
etc.
 Method of collecting data:Questionnaire
schedule & Interview method
SUGGESTING FOR PURCHASE PROCEDURE

 The purchase procedure adopted by CAP Ltd. is very

complicated so according to me all the department
should be inter linked through computer mainly with
the stores so that they can get the real picture of their
stock.
 The company should give some gift/presents to their
suppliers so to get preference in the near future.
 During the emergency requirement of any material,
every department should be given authority for the
purchase of the material directly.
 The imprested money amount should be increased.
CONTD…..
 Company should move wherever possible towards
backward integration, to get the benefit of self
manufacturing.
 Through the Company’s purchase procedure is broad based
but still an improvement is needed and better co-operation
between different department may solved the purpose.
 Company should purchase in bulk, those raw materials the
cost of which is likely to be increased. Though the company
may have the same criteria but continues surveillance is
required.
SUGGESTION FOR SALES PROCEDURE
 Company should expand its market and try to attract
more and more industrial consumers of its products
and by products, not only in domestic but also in
foreign market.
 Company should better complete with imparting of
similar product at lower price.
 Company should refer its distribution system and
ensure prompt and safe delivery of the required
/demanded product.
 Company should try to create a customer loyalty
towards its products and its functioning.
CONTD….
 Company should try to eliminate the adoption of unfair means
in/during important of similar products by its competitors or
exportation by foreign company just to dump their products in
the market.
 Company should adopt cost reduction techniques to increase the
gross profit.
 Company should give the proposal of anti dumping duties to the
central government just to increase the cost of import products.
 While going for any sales of product, company should try to
take into consideration the market rates that have been given by
the competitors.
 Company should maintain its image quality of all the products.
Thank
You