A REPORT ON ORGANISATIONAL STUDY CONDUCTED IN MAYUR

UNIQUOTERS LTD.

Submitted in partial fulfillment of the requirement of the

POST GRADUATE PROGRAMME IN MANAGEMENT

Submitted by:
RAVI PATEL
Registration Number: PA 9046

Under the guidance of

Prof. BAGALKOT L. H.

RIMS
RAMAIAH INSTITUTE OF MANAGEMENT STUDIES

Evolving Leaders

RAMAIAH INSTITUTE OF MANAGEMENT STUDIES

193, NEW BEL ROAD,

M.S.RAMAIAH NAGAR,

BANGALORE –5600 54

2009-2011

1
 CERTIFICATE
This is to certify that the project report at

MayurUniquoters Ltd.
Rajasthan
submitted in partial fulfillment of the requirement for the award of the degree of

Post Graduation Programme In Management

TO

is a record of

bonafide training carried out by

RAVI PATEL

Under my supervision and the no part of this report has been submitted for

the award of any other Degree/diploma/fellowship or similar title or prizes.

FACULTY GUIDE

Signature:

Name:Prof. BAGALKOT L. H.

2
 STUDENT'S DECLARATION

I, MR. RAVI PATEL Student of PGPM (Post-Graduation Program in Management)

2009-2011 studying at RIMS (Ramaiah Institute of Management Studies), Bangalore,
declare that the project work entitled “Organization study of MAYUR UNIQUOTERS
LIMITED, RAJASTHAN” was carried by me in the partial fulfillment of PGPM
autonomous program under the RIMS.

This Organization study was undertaken as a part of academic curriculum of PGPM.

It has not commercial interest and motive. It is my original work. It is not submitted to
any other organization for any other purpose.

Date : Enrl. No: PA9046

Place :Bengalore

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 Acknowledgments

It gives me immense pleasure to present this report on organization study

carried out at MAYUR UNIQUOTERS LIMITED in partial fulfillment of Post
Graduate Program in Management.

No work can be carried out without the help and guidance of various persons. I
am happy to take this opportunity to express my gratitude to those who have
been helpful to me in completing this organization study.

At the outset, my sincere thanks to my internal guide Prof. BAGALKOT L. H. for

his remarkable and significant guidance and advice to speed up my project.

At the outlet I would like to thank MR. B S NATHAWAT (Dept. HR) for their
valuable advice and guidance during my organization study completion, also
thankful to the members of all the departments for timely help concerning
various aspects of study.

Lastly I would like to thank my parents, friends and well wishers who
encouraged me to do this work and all those who contributed directly or
indirectly in completing this organization study to whom I am obligated to.

Place:RAVI PATEL

Reg. No.PA9046

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 CONTENT

Chapter 1. Organizational Behavior………………………………………...6-10

Chapter 2. Study of the Industry

2.1 Industry Profile………………………………………………..…12-16

2.2 Porter’s Five Forces Model…………………………………..….17-19

Chapter 3. Organization Study

3.1 Company Profile…………………………………………….…....21-37

3.2 Organizational Structure and Its Analysis……………………...38-41

3.3 Study of Functional Departments………………………………..42-71

3.4 The Latest Audited Report………………………………………72-80

Chapter 4. SWOT Analysis…………………………………………………..81-83

Chapter 5. Discussion on Training

5.1 Student work Profile………………………………………………....85

5.2 Learning Experience……………………………………………...86-87

Chapter 6. Bibliography……………………………………………..…………..88

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 CHAPTER 1

ORGANIZATIONAL
BEHAVIOR

1.Organizational Behavior

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Introduction

Organizational Behavior (OB) is the study and application of knowledge about how
people, individuals, and groups act in organizations. It does this by taking a system
approach. That is, it interprets people-organization relationships in terms of the
whole person, whole group, whole organization, and whole social system. Its purpose
is to build better relationships by achieving human objectives, organizational
objectives, and social objectives.

Elements of Organizational Behavior

The organization's base rests on management's philosophy, values, vision and goals.
This in turn drives the organizational culture, which is composed of the formal
organization, informal organization, and the social environment. The culture
determines the type of leadership, communication, and group dynamics within the
organization. The workers perceive this as the quality of work life, which directs their
degree of motivation. The final outcomes are performance, individual satisfaction,
and personal growth and development. All these elements combine to build the model
or framework that the organization operates from.

Models of Organizational Behavior

There are four major models or frameworks that organizations operate out of:
Autocratic - The basis of this model is power with a managerial orientation of
authority. The employees in turn are oriented towards obedience and
dependence on the boss. The employee need that is met is subsistence. The
performance result is minimal.
Custodial - The basis of this model is economic resources with a managerial
orientation of money. The employees in turn are oriented towards security and
benefits and dependence on the organization. The employee need that is met is
security. The performance result is passive cooperation.
Supportive - The basis of this model is leadership with a managerial orientation of
support. The employees in turn are oriented towards job performance and
participation. The employee need that is met is status and recognition. The
performance result is awakened drives.
Collegial - The basis of this model is partnership with a managerial orientation of
teamwork. The employees in turn are oriented towards responsible behavior
and self-discipline. The employee need that is met is self-actualization. The
performance result is moderate enthusiasm.

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Although there are four separate models, almost no organization operates exclusively
in one. There will usually be a predominate one, with one or more areas over-lapping
in the other models.
The first model, autocratic, has its roots in the industrial revolution. The managers of
this type of organization operate out of McGregor's Theory X. The next three models
begin to build on McGregor's Theory Y. They have each evolved over a period of
time and there is no one "best" model. The collegial model should not be thought as
the last or best model, but the beginning of a new model or paradigm.

Social Systems, Culture, and Individualization

A social system is a complex set of human relationships interacting in many ways.

Within an organization, the social system includes all the people in it and their
relationships to each other and to the outside world. The behavior of one member can
have an impact, either directly or indirectly, on the behavior of others. Also, the social
system does not have boundaries...it exchanges goods, ideas, culture, etc. with the
environment around it.

Culture is the conventional behavior of a society that encompasses beliefs, customs,

knowledge, and practices. It influences human behavior, even though it seldom enters
into their conscious thought. People depend on culture as it gives them stability,
security, understanding, and the ability to respond to a given situation. This is why
people fear change. They fear the system will become unstable, their security will be
lost, they will not understand the new process, and they will not know how to respond
to the new situations.

Individualization is when employees successfully exert influence on the social system

by challenging the culture.

Organization Development

Organization Development (OD) is the systematic application of behavioral science

knowledge at various levels, such as group, inter-group, organization, etc., to bring
about planned change. Its objectives are a higher quality of work-life, productivity,
adaptability, and effectiveness. It accomplishes this by changing attitudes, behaviors,
values, strategies, procedures, and structures so that the organization can adapt to
competitive actions, technological advances, and the fast pace of change within the
environment.
There are seven characteristics of OD:

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Humanistic Values: Positive beliefs about the potential of employees
(McGregor'sTheory Y).

Systems Orientation: All parts of the organization, to include structure, technology,

and people, must work together.

Experiential Learning: The learners' experiences in the training environment should

be the kind of human problems they encounter at work. The training should NOT be
all theory and lecture.

Problem Solving: Problems are identified, data is gathered, corrective action is taken,
progress is assessed, and adjustments in the problem solving process are made as
needed. This process is known as Action Research.

Contingency Orientation: Actions are selected and adapted to fit the need.

Change Agent: Stimulate, facilitate, and coordinate change.

Levels of Interventions: Problems can occur at one or more level in the organization
so the strategy will require one or more interventions.

Quality of Work Life

Quality of Work Life (QWL) is the favorableness or unfavorableness of the job

environment. Its purpose is to develop jobs and working conditions that are excellent
for both the employees and the organization. One of the ways of accomplishing QWL
is through job design. Some of the options available for improving job design are:
Leave the job as is but employ only people who like the rigid environment or routine
work. Some people do enjoy the security and task support of these kinds of jobs.
Leave the job as is, but pay the employees more.
Mechanize and automate the routine jobs.
And the area that OD loves - redesign the job.
When redesigning jobs there are two spectrums to follow - job enlargement and job
enrichment. Job enlargement adds a more variety of tasks and duties to the job so that
it is not as monotonous. This takes in the breadth of the job. That is, the number of
different tasks that an employee performs. This can also be accomplished by job
rotation.
Job enrichment, on the other hand, adds additional motivators. It adds depth to the
job - more control, responsibility, and discretion to how the job is performed. This
gives higher order needs to the employee, as opposed to job enlargement, which
simply gives more variety.

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10
CHAPTER 2

STUDY OF THE INDUSTRY

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 2.1 Industry Profile:

At that time, though, the use of leather (in its crude form) was more for the purposes
of protection than fashion. As times changed and technology developed, we learned
how to preserve the material better, soften it, and dye it in vivid colors. When on one
hand the strength, durability, and versatility of leather made it very popular, on the
other the number of animals killed to manufacture the products and the pollution
created by the industry raised many eyebrows. This led to the hunt for alternatives to
leather.

The Market

Artificial leather looks and feels like natural leather, but is made on a fabric base
rather than from animal skin. The fabric, due to its leather-like finish, acts as a
substitute for leather and is fast replacing it in many industries such as footwear,
upholstery, and automobiles.

Today, the leather alternatives market in India and abroad is witnessing good growth,
and the demand is expected to further intensify in the future. According to Rishabh
Jain of RishabhVelveleen, “In the next few years, this industry is expected to boom,
thanks to better technology, animal cruelty issue, pollution, etc.” In comparison to the
demand, the current supply of synthetic leather lags far behind, especially in the
domestic market.” Says Jain, “Currently, nearly nine to 10 times of what is being
produced domestically is imported from China.” Moreover, of the synthetic leather
that is produced in India, only about 15 to 20 percent is exported; the rest is used for
domestic consumption. This demand–supply gap coupled with the fact that synthetic
leather is fast replacing natural leather from various industries is opening doors for
more entrepreneurs in this sector.

In India, the market for synthetic leather is highly unorganized; there are only a
handful of players in the organized sector. As Jain puts it, “At present there are 10
leading players constituting the organized market, and about 150 to 200 small or
medium level players who cater to the local market.” Among the major names are
MayurUniquoters, RishabhVelveleen, and Manish Vinyls. Indian synthetic leather is
exported to European countries and also to the US.

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The Business

Though many alternatives to leather are now available, most synthetic leather is made
from PVC and PU. On the basis of the process used, it can be classified into four
types. A process called ‘calendering’, in which the PVC sheet is laminated to a fabric,
makes the cheapest. “The other three are basically coating processes in which there
are three categories – 100% PVC, semi-PU, and 100% PU,” elaborates Jain. “In semi-
PU, there is one layer of PU mixed with a layer of PVC and then the skin is
transferred to a fabric. In 100% PU, there will not be any PVC but only layers of PU.”
Besides these, there is another type of artificial leather known as split leather or
pleather. However, its inclusion in the synthetic leather category is debatable as it
does not use a fabric base, but is manufactured from the second layer of skin (the first
layer is used for making natural leather) obtained from animals.

Compared to PVC, PU leather cloth is more flexible with a higher tensile, tearing, and
bursting strength. Due to this, PU leather cloth has an advantage when used in making
products with high stress tolerance like shoes and luggage bags. Another difference
between PU and PVC leather cloth is that the former is washable, can be dry-cleaned,
and allows some air to flow through. On the other hand, PVC leather cloth does not
breathe and cannot be dry-cleaned, because that can make it stiff.

Annual requirement for synthetic leather

Footwear industry - 2,60,00,000 meters

Automotive industry - 3,20,00,000 meters

Furniture industry - 1,10,00,000 meters

Luggage industry - 2,50,00,000 meters

The synthetic leather is made into different thicknesses depending on the end use. “If
you take shoes, the inner lining is around 0.6 mm and the outer cover is 1.3 mm. If

13
you take furnishings, it would be 1 mm. The general range of synthetic leather starts
from 0.6 mm to 1.4 mm. For the purpose of clothing, it can go as low as 0.4 mm,
which is rare. The thickness depends on how much PU or PVC you are coating,” Jain
adds. The companies manufacturing synthetic leather sell the product under a brand
name of their own.

Leather Vs Artificial Leather

The synthetic leather industry is now on a high growth trajectory. One of the reasons
for this is the high-pitched campaign against cruelty meted out to animals in the
leather industry. This has resulted in growing awareness for an alternative to leather.
The level of pollution (both air and water) created by tanneries has also led to an
increase in the popularity of alternative leather. Besides this, a huge demand–supply
gap exists in the natural leather industry. This, coupled with the high price of leather,
has also been a boon in disguise for the industry. On its part, synthetic leather is
cheaper and has a lower manufacturing cost.

Earlier inferior technology was one factor holding back the growth of the artificial
leather industry. However, with technological advancements, synthetic leather being
produced now is much smoother, looks similar, and feels like leather. The fabric is
versatile and is fast replacing leather in a number of industries.

Production Process

Synthetic leather can be made from several processes. Some of the common ones
include direct coating process; transfer coating process, and wet process.

Direct coating process: This was the original technology used to manufacture artificial
cloth. In this process the plastisol was directly coated to a woven fabric before passing
through the oven and then embossed. However, the end product made from this
process had limited use in industries such as the bag and luggage industry.

Transfer coating process: In this process the coating is done on a release paper and
then the film is released and laminated on to the fabric, usually knitted fabric. The end
product from this process can be used in several industries such as upholstery, shoes,

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bags, etc.

Wet process or coagulation: This process is used for producing PU cloth. The fabric is
dipped into a bath of PU and the PU is then impregnated into the fabric. Split leather
is also made using this process.

Challenges

One of the major challenges for this industry is competition from Chinese synthetic
leather. China is one of the major producers of synthetic leather, and up to 10 times
the amount produced domestically in India is imported from China. This is due to two
reasons – one, the demand for synthetic leather is high in India compared to the
supply, and two, India still does not produce good PU leather cloth, which accounts
for major imports. Another challenge is the sourcing for PU. Says Jain, “There are not
many good manufacturers for PU resin. It is generally imported from Italy or China.”
This also adds to the manufacturing cost of artificial leather. In India, another problem
is that there is no communication platform for manufacturers. No association or
industry body exists either. Besides these, this business also requires several
clearances from the government such a pollution certificate. There are other quality
certifications also, such as the ISO 14000 and ISO 9000, but they are not mandatory.

Current Scenario:
India accounts for approximately two percent of the world trade in leather and leather
products. To be on the fast track of growth and to have a larger cake in the
international business, continuous technology up gradation and modernization are the
most powerful driving forces like in any other manufacturing sector that dreams
steady growth and expansion. With this being the primary objective, India's Council
for Leather Exports (CLE) has taken a number of initiatives. To propel the combined
efforts of the tanning and manufacturing sectors, the Central Leather Research
Institute (CLRI), the Fashion Technology and Development Institute and CLE as the
main cog in the wheel, an action plan has been chalked out. The growing international
demand apart, the action plan also suggested measures to face Indian leather's
industry's major competitors in Asia: China, Indonesia, Korea and Taiwan. To boost
the country's leather industry, the Indian federal government has earmarked aRs 4.5

15
billion (US$ 95 mn) grant to be made available to the industry over a span of five
years but that's not without any string. The fund availability is conditional upon the
sector's attracting an annual investment of Rs 2.2 trillion. In 2002, investments in the
leather sector stood at Rs 410 million. Footwear and their components account for
about 25 percent of India's total leather products exports. These two markets also
offer Indian leather industry vast scope for exports of saddler and harness. Besides the
European market where Indian leather products already enjoy a strong presence, the
US too is emerging as a very strong and promising export destination for Indian
leather industry. US today accounts about 25 percent of a massive US$ 96 billion
global trade in leather and leather products. The importance of European market could
be gauged by the fact three major EU countries-Germany, Italy and UK- today
accounts for approximately 42-45 percent of leather and leather products exports from
India. These three countries together exported leather products worth US$ 814.82 mn
in 2001-02 against country's total leather and leather products exports valued at US$
1.93 bn.CLE is trying to make a dent in new markets. Focus countries include the
Latin American countries, Israel and Japan. Japan is the fifth largest importer of
leather & leather products in the world. Japan now imports over US$15 million worth
leather and leather products from India. In fact, between 1998-99 and 2001-02, India's
exports leather products to Japan have more than doubled. According to the latest
available provisional data, exports in the first 10 months in fiscal 2002-03 to Japan
stood at US$ 7.53 mn against US$ 7.30 mn during the comparable period of 2001-02.
CLE aims at raising India's share in Japan's total imports of leather and leather
products to 2 percent by 2005-06 from the current level of 0.5 percent which in other
words means forex earnings to the tune of US$ 70 mn in next three years from the
2001-02 level of over US$ 15 mn.

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 2.2 Porters Five Forces Model
Porter’s Five Forces analysis of MayurUniquoters Ltd.

Porter’s five forces Model is analyzed based on the following points:

Mayur has few competitors but it is a leading artificial leather-manufacturing firm,

which supplies its products in domestic market, but also it exports products.

The Threat of The Entry of New Competitors

Profitable markets that yield high returns will attract new firms. This results in many
new entrants, which eventually will decrease profitability for all firms in the industry.
Unless the entry of new firms can be blocked by incumbents, the profit rate will fall
towards zero (perfect competition).

The existence of barriers to entry. The most attractive segment is one in which entry
barriers are high and exit barriers are low. Few new firms can enter and non-
performing firms can exit easily.

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  Economies of product differences
 Brand equity
 Switching costs or sunk costs
 Capital requirements
 Access to distribution
 Customer loyalty to established brands
 Absolute cost advantages
 Learning curve advantages
 Expected retaliation by incumbents
 Government policies
 Industry profitability; the more profitable the industry the more attractive it
will be to new competitors.

The Intensity of Competitive Rivalry

The intensity of competitive rivalry is the major determinant of the competitiveness of

the industry. Mayur has following competitive advantage.

 Sustainable competitive advantage through innovation

 Competition between online and offline companies; click-and-mortar -v-
slags on a bridge
 Level of advertising expense
 Powerful competitive strategy
 The visibility of proprietary items on the Web used by a company, which
can intensify competitive pressures on their rivals. How will competition
react to a certain behavior by another firm? Competitive rivalry is likely to
be based on dimensions such as price, quality, and innovation.
Technological advances protect companies from competition. This applies
to products and services. Companies that are successful with introducing
new technology are able to charge higher prices and achieve higher profits,
until competitors imitate them.

The Threat of Substitute Products or Services

The existence of products outside of the realm of the common product boundaries
increases the propensity of customers to switch to alternatives:

 Buyer propensity to substitute

 Relative price performance of substitute

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  Buyer switching costs
 Perceived level of product differentiation
 Number of substitute products available in the market
 Ease of substitution. Information-based products are more prone to
substitution, as online product can easily replace material product.

The Bargaining Power of Customers (Buyers)

The bargaining power of customers is also described as the market of outputs: the
ability of customers to put the firm under pressure, which also affects the customer's
sensitivity to price changes. Bargaining power in Mayur is high because of the
following reasons

 Buyer concentration to firmconcentration ratio

 Degree of dependency upon existing channels of distribution
 Bargaining leverage, particularly in industries with high fixed costs
 Buyer volume
 Buyer switching costs relative to firm switching costs
 Buyer information availability
 Availability of existing substitute products
 Buyer price sensitivity
 Differential advantage (uniqueness) of company products

The Bargaining Power of Suppliers

The bargaining power of suppliers is also described as the market of inputs. Suppliers
of raw materials, components, labor, and services (such as expertise) to the firm can
be a source of power over the firm, when there are few substitutes. Suppliers may
refuse to work with the firm, or, e.g., charge excessively high prices for unique
resources. The suppliers power in the case of Mayur is high due to following reasons:
 Supplier switching costs relative to firm switching costs
 Degree of differentiation of inputs
 Impact of inputs on cost or differentiation
 Presence of substitute inputs
 Supplier concentration to firm concentration ratio
 Employee solidarity (e.g. labor unions)

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 Supplier competition - ability to forward vertically integrate and cut out
the buyer

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 CHAPTER 3

ORGANIZATION STUDY

What is an organization?
Organization is a tool used by people to coordinate their actions to obtain something

21
they desire or value- that is to achieve their goals.

Organization Theory-
Study of how organization function and how they affect and are affected by the
environment in which they operate.

Organization Design-
The process by which managers select and manage aspects of structure and culture, so
than an organization can control the activities necessary to achieve it’s goals.

Organization Structure-
Organization Structure is the formal system of task and authority Relationship that
control how people coordinate their action and use resources to achieve organizational
goals.

Organization Culture-
The set of shared values and norms that controls organizational members interaction
with each other and with suppliers, customers and other people out side the
organization.

Organization Study:

3.1 Company Profile:

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MayurUniquoters is a reputed organization that excels in the manufacture and
export of all types of PU and PVC based synthetic leather (Artificial Leather).
Established in 1992, Mayur has successfully established itself as a reliable and
trustworthy organization. The company is committed to developing outstanding
quality products with widest choice.

MayurUniquoters, a high - tech enterprise has been a resounding success in the

field of superior quality synthetic leather in India. Driven by a vision to manufacture
world-class products for the leather connoisseurs and the trendsetters of the time,
Mayur was born out of high levels of competence, commitment, stringent quality
control measures and value addition. Thus a team of professionals planted a great
seed of possibilities. Today Mayur has made its mark as a manufacturer of PU, PVC
and PU-PVC Synthetic Leather under the seasoned guidance and support by a unit
of highly qualified engineers and technocrats who believe in delivering the best
always.

Mayur’s Mission And Vision:

Mission: “Improving life’s comfort and aesthetics of our customer’s homes, offices,
vehicles and dressing.”

We will achieve this: By being focused in every chosen business sector, and lead
the way. By being true to the laid down process. By continuous up-gradation of our
human resources. By committing to safety, health and environment to enrich quality
of life.

We Value-High Integrity and standards. Respect for each other, Passion, Teamwork.

Vision: -

 Make each employee to think decide to act by themselves.

 Motivated innovative satisfied employees who own each machine.
 To maintain perfect human machine work environment system for continuous
improvement.

Helps operators to: -

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  Understand their equipment.
 Get multi skill training.
 Discover and come out with new ideas.
 Enjoy new experience.
 Work as one team one family.

Policy: -

 Maximize overall equipment effectiveness.

 Establish positive work culture.
 Organize a work place to prevent losses.
 Involve all employees to work as one team.

Goals: -

 Productivity- increase by 40%

 Equipment- zero breakdown
 Quality-zero defects
 Safety-zero accidents
 Delivery-100% on time
 Cost-reduce by 10%
 Morale-suggestions per month.

CERTIFIED AS AN ISO 9001:2008, ISO 14001:2004 AND OHSAS

18001:2007.
ISO 9000

Set of international standards on quality management and Quality assurance, critical

to international Business .ISO 9001 series standards, briefly, require firms to
document their quality-control systems at every step (incoming raw materials, product
design, in-process monitoring and so forth) so that they’ll be able to identify those
areas that are causing quality problems and correct them.

ISO 9000 Registration Process:

24
When an organization feels that its quality system is good enough, it may ask an
accredited registrar or other third party audit team for pre-assessment. The final audit
begins with a review of the company's quality manual, which the accredited registrar
or third party audit team typically uses as its guide. The audit team checks to see that
the documented quality system meets the requirement of ISO 9000 and that the
organization is practicing what is documented. When the registrar is satisfied with the
favorable recommendation of the audit team, it grants registration and issues a
registration document to the company.

ISO 14000:

ISO 14001 is the series of the 14000 standard.

ISO 14000 - A set of international standards for assessing a company’s environmental

performance

Standards in three major areas

1. Management systems
2. Operations
3. Environmental systems
1. Management systems:Systems development and integration of environmental
responsibilities into business planning
2. Operations: Consumption of natural resources and energy
3. Environmental systems: Measuring, assessing and managing emissions,
effluents, and other waste

FROM THE DESK OF CHAIRMAN

MayurUniquoters Limited was established in 1992 by the present Chairman and

MD, Mr. S. K. Poddar. Since it's inception the basic Business driving force was a
continuous urge to excel through the distinction of producing Quality Products and
to be the Leaders.

LATEST PLANT: IMPORTED FROM MATEX, ITALY

With a large network of premium products for Footwear, Apparel, Luggage,
Furniture, Leather Goods, Upholstery and Automotive Industries, the guiding

25
principle of this enterprise has always been customer delight, beyond customer
satisfaction. And since the limits of technology can be challenged by the vitality of
progressive thinking, with constant research and development, Mayur marches on in
its global pursuit of opening up a new horizon to the Synthetic leather World.
Making use of the best technologies and raw materials available in the world, having
implemented the best management practices and always striving to be the best in the
business has been the principle of Mayur since it’s inception.

MONITORING, ANALYSIS, DISPLAY AND COMMUNICATION PANEL

Mayur has over a period of time developed and established it's set of product
recipies and customer support system.
The present Chairman and MD, Mr. S. K. Poddar, established MayurUniquoters
Limited in 1992. Since it's inception the basic Business driving force was a
continuous urge to excel through the distinction of producing Quality Products and
to be the Leaders.

 CLIENTS: Mayur has following customers of different sector in domestic as well as

outside.

 AUTOMOTIVE OEM’s
o OVERSEAS
o DOMESTIC
 REPLACEMENT MARKET
 FOOTWEAR OEM’s
 Chrysler
 Mercedes-Benz
 GM
 BMW
 Ford
Apart from above Mayur are exporting to Europe, Middle East, South Africa, Sri
Lanka, Malaysia and Mauritius etc.

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DOMESTIC
 MarutiUdyog Limited
 Tata Motors
 Honda Scooters & Motorcycles India Ltd.
 HMT Tractors
 Hero Motors
 Escorts – Yamaha
 Honda SIEL Car India Ltd.
 Mahindra & Mahindra
 Swaraj Mazda Limited
 Punjab Tractors Limited
 Sutlej Motors Limited
 Railway Coach Factory, Kapurthala
 Hero Cycles
 Sonalika Tractors

REPLACEMENT MARKET
Hideler
Ovion Seating
Elegant
Auto craft
Stanley Seating
Dolphin
Saddles Inc.
Art Auto
APN Automotives

Why MayurUniquoters:

Mayur in the face of tough global competition and in its pursuit for being "World-
class” has been cultivating a new world of artificial leather with an aid of
sophisticated specialized technology in every step of each operation.

Mayur has responded to changing customer needs of the hour by maintaining state-

27
of-the-art equipment and facilities like a modern 4 Head Italian Coating Line from
Matex, a fully new coating line, Embossing Machines, Printing machine, Sueding
Machine, Dry and Wet Tumbling Machines. Automated lab with lab-coater from
Werner Mathis, Switzerland, SATRA and Bally Flex Testers and other Laboratory
equipment for quality control. At Mayur the world renowned process of
“TRANSFER RELEASE PAPER COATING PROCESS " is used for Synthetic
Leather Manufacturing, Quality & excellence are natural outcome. The coating line
from Italy has special features like electronic thickness & coating weight controllers
and double ventilation ovens for than control with precision the work in progress.

The company regards product and development as a pivotal part of increasing growth
and significant emphasis laid on it with massive investments in modern technologies
and training, to meet the new age requirement of giving synthetic leather products a
natural feel. It has a complete R&D cell with dedicated people having accumulated
experience to render greater satisfaction and applicability to the products, which are
all set to storm the competition globally.

QUALITY LABS
R&D involves creating new or improving existing Products or processes in a
commercial facility or production environment; e.g. test production from an existing
or upgraded line. It usually results from experimental production or experimental
processes carried out either in conjunction or simultaneously with excluded
commercial work Furthermore, basic and applied research can also occur in the shop
floor environment. Experimental development is work undertaken for the purpose of
achieving technological advancement for the purpose of creating new or improving
existing products or processes, including incremental improvements.Mayuruniquoters
always strives to improve product quality and reliability. To meet the ever increasing
and ever changing demands of our valued customers.In R&D Labs, before producing
any product, Mayur always test its all attributes as per the international product
standards.

Fully Equipped Laboratory:

The Company possesses a fully automated lab, capable of testing nearly all the
properties artificial leather should have, for different segments and applications.

28
First Coating Line (Matex):Since: 1992
From MATEX s.r.l., Italy with special features like electronic programmable
thickness controllers and double ventilation ovens.
5 Million Linear Meters/ Annum (Plant Capacity)
The complete maching has been put on UPS for continuous, defect free working.
Second Coating LineSince: 2004
Latest state of the art imported Taiwan coating line (Yang sing).
Three head coating PU line with three printing heads and three laminators.
6 Million Linear Meters/ Annum.
The complete maching has been put on UPS for continuous, defect free working.
Third Coating Line (Matex)Installed (end of March 2008)
Commercial production started
Latest state of the art imported machine from MATEX Italy.
6 Million Linear Meters/ Annum.
The complete maching has been put on UPS for continuous, defect free working.

MAINTENANCE AND UTILITIES

Utilities & tools are managed and maintained on regular basis for quality control
and trouble free working. Tools are available all the time for all levels of
maintenance giving a supportive hand to company production.

Maintenance and tool room are inevitable part for any unit's smooth and efficient
working, hence, Mayur using its experience designed a highly equipped tool room
and maintenance floor which provides round the clock service. Tool room is
equipped to meet the requirements of

Total Productive Maintenance.

Efficient and experienced engineers use the tools for instant recovery and
maintenance giving a cutting edge support for top level quality control applied by
the company.

Maintenance are taken on regular basis for preventive purpose scheduled in such a

29
way that machines work more efficiently during the long run of production.

A complete team of qualified and skilled persons is dedicated to maintenance task in

all shifts including mechanical, electrical, electronics and instrumentation
engineering.

TEAM AND MANAGEMENT

MayurUniquoters Limited was established in 1992 by the present Chairman and MD,
Mr. S. K. Poddar. Since the inception the basic Business driving force was a
continuous urge to excel through the distinction of producing Quality Products and to
be the Leaders.

Mr. ManavPoddar has initiated TQM practices, targeting the highest levels of
efficiencies in the whole of business process including product innovation, better
customer responsiveness as well as operational and plant efficiencies. He has led the
team of MayurUniquoters to the best of Lean Management Principles.

Continuous efforts since being has given us a name in the market to reckon with and
Mayur have become the undisputed Quality Leader. We strive to be a World Class
Company and the most admired one in this sector.

TEAMS

Following the basic concept of TQM i.e. Involvement of People all activities are
managed by identified teams. For all major processes their performance is
measured and monitored. Presently the participation of workers in various activities
through teamwork is around 60 %, which is targeted to 75 % by the end of 2008.

SOME OF THE CENTRAL TEAMS ARE

Non Conformance Review Team- a cross functional team meeting daily to review
all process product trends, Corrective action / preventive action  

5 S and Kaizen Teams– Relatively new teams, in the process of grooming Though
they have successfully implemented 5 S, the big challenge given to them is the
Kaizen Initiative.

30
TS 16949 Team - A newly formed team as a part of the Top management’s initiative
for certifying our organization with TS 16949 by March 2009. HR &
Administration, the People's Team- This team is involved in managing the most
precious of resources, the Human Resources. They are also an integral part of 14/18
Team. All training and development activities of the organization are planned and
executed through them.

QUALITY ASSURANCE ACTIVITIES AT MAYUR

There are three fully equipped labs.

 Raw Material Testing QA Lab

 Finished Goods Testing Lab
 R & D Lab

QA Labs are the heart of MUL manufacturing activities. Qualified, experienced and
dedicated staff carries out daily routine testing work. Lab is fully equipped with test
facilites like Brookfield’s Viscometer, “Satra’ flex machine, cold chamber,
hydrolysis test oven etc.

Raw Material at all stages are tested as per the defined Quality Plan. Finished goods
are dispatched to our valued customers after complete inspection at inspection tables
and through checking at physical testing lab. The records for traceability are
maintained on ERP and are available on-line for ready reference.

Lot of emphasis is given on testing as per world-renowned car manufacturer’s

specifications such as JASO, GM etc as per theircustomer’s requirement. All
upholstery material is being tested as per BIS, BS specs as per requirement as
applicable and as per the requirement of customer.

With the help of ERP module- electronic order review is done and shade code
numbering and traceability is followed. Shade code are given for every shade party
wise and record of master sample is maintained. Maintaining traceability from raw
material to finished store is our endeavor at Lab.

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TOTAL QUALITY PEOPLE
We value and believe in people, the Total  Quality People (TQP) with cultural
quotient and they are the driving force of all the milestones set

QUALITY CONSCIOUSNESS
Recently tied up with an American company TBM Inc. for TQM consultancy for
three years.
Already taking consultancy on TQM from a firm called QEMS Ltd.
Company is ISO 9001:2000 Certified since Year 2001.
Planning to be ISO 14001 & OHS Certified by March 2007

ACHIEVEMENTS &ACCOLADES : ERP IMPLEMENTATION

ERP System Implementation-

ERP is now a part and parcel of all activities at MayurUniquoters. Like most
organisations we too at Mayur faced initial hiccups but with time and constant
persistence the employees were able to understand and also found that it is a better
way to stay organised and improve productivity. Be it order enquiry, order review, or
processing; Product / Release paper Inspection and checking for Quality or dispatch,
all major areas have now been linked through ERP.  With the steady progress in
these areas and accruing benefits there is a lot of enthusiasm amongst employees and
Management alike to link all the remaining areas.

ERP linkage has given Mayur a definite edge which means a lot in this competitive
environment, for MayurUniquoters it translates into -faster Communication, within
and outside the works including customer communication faster and accurate of
review of order and on line validation of all components of product improved
planning with on line availability of consumption patterns and stocks on line
availability of validated product and process standards at work station on shop floor,
ensuring product traceability till dispatch stage, which in-turn ensures better process
control product and process non-conformance  trend identification and control
detailed defect analysis enabling  timely Corrective or Preventive actions  

ERP implementation has taken us one step ahead in our TQM initiative. ERP
advantages to Mayur are not only recognized by Mayur but the Rajasthan (State)

32
Chambers of Commerce and Industry and CIOL, Hyderabad for its business
advantages and they have chosen MayurUniquoters Ltd. for “IT Power User award”
in Dec. 2005.

PRODUCTS: -Mayur has following types of products in different segments:

FOOTWEAR
Mayur is an established and renowned name in footwear sector for it’s synthetic
shoe upper, lining and socking materials. We offer synthetic leather for footwear
application, which replicates high-end genuine leather. Our products are technically
perfect and follow SATRA specifications. Our versatile range of grains, finishes and
colors offers you variety of products is PU and PVC.Our shoe upper materials
satisfy need of the customers as far as flex, thickness, finish and feel is concerned.
our shoe linings in PU/PVC are highly in demand we follow all European standards
of chemical testing in footwear items.

AUTOMOTIVE

Mayur is approved supplier to various automotive companies like MARUTI,

SWARAJ TRACTORS, HONDA SCOOTER, and HONDA SIEL CARS etc. We
have been successfully servicing them by supplying problem free materials, strictly
as per their delivery schedule. Cars/two-wheeler seating has been given a new look
and definition by mayur

33
UPHOLSTERY / FURNISHING

The latest range of PU and PVC upholstery / furnishing items are creating news in
the markets in India and Overseas. Our animal print furnishing items are the most
adorable products in PU. Non-Woven based and polyester fabric based upholstery
products represent the latest and fashionable items. We take utmost care of Physical
property and performance of our furnishing products. The properties like Fire
Resistant, Anti fungal, Anti bacterial etc. give an extra edge to our products over the
competitors.

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GARMENTS

Mayur is an established and renowned name in Garments sector for it’s synthetic
Garments material. We offer synthetic leather for Garments application, which
replicates high-end genuine leather. Our products are technically perfect and follow
international specifications. Our versatile range of grains, finishes and colors offers
you variety of products for readily emerging leather garment fashion industry.

35
 LUGGAGE / LEATHER GOODS

We have a strong presence in the leather goods market, and offer a range of products
for wallets, purse, portfolio and complimentary items. Mayur successfully replaced
genuine leather with it’s artificial leather.

36
SPORTS GOODS

Mayur is an established and renowned name in Sports Goods for it’s genuine leather
replacement material. We offer synthetic leather for Sports Goods, which replicates
high-end genuine leather. Our products are widely accepted and meet international
standards. Our versatile range of grains, finishes and colors offers you variety of
products for readily expending leather Sports Goods industry.

PRODUCT DEVELOPMENT & CUSTOMER SERVICE

Since product development is the backbone of any organization to push to the

international height, Mayur is equipped with a Werner Mathis Lab coater to help in
making A-4 size lab samples, Spectophometer for accurate and computerized color
matching. Apart from this, the Bally and SATRA flex machines, Abrasion-Tensile-
Light fasteners-Bursting Strength and flammability Texters help in giving key inputs
for development. The latest international standard machinery, keep Mayur ahead of
competition as an icon of a leader in the industry of artificial leather.

The best raw material procurement at low cost and a chain of good supplier base

37
since its incorporation, have also accounted for its goodwill to develop quality
products in keeping with paradigms in demand worldwide.

CUSTOMER SERVICE
Mayur is objectively a customer-driven enterprise. It encouragesto have a single-
point solution to any problem related with any of its products in prompt, effective
and systematic customer query resolution system. It aims at giving customized
technical solutions and support to the customers, which would improve their
profitability. Mayur has developed its unique Customer Relations & Service
department (CRS) into an IT-driven orientation for profitable product mix
information, quality improvement indicator, troubleshooting at customers and, new
product innovations, new end use applications and immediate dispatch information
with order status. At Mayur, CRS has set an example, which is the driving force of
the whole marketing operations.

3.2Organization Structure& Chart:

38
MayurUniquoters has Functional Structure in the organization. Employees within the

39
functional divisions of an organization tend to perform a specialized set of tasks, for
instance the engineering department would be staffed only with software engineers.
This leads to operational efficiencies within that group. However it could also lead to
a lack of communication between the functional groups within an organization,
making the organization slow and inflexible.

As a whole, a functional organization is best suited as a producer of standardized

goods and services at large volume and low cost. Coordination and specialization of
tasks are centralized in a functional structure, which makes producing a limited
amount of products or services efficient and predictable. Moreover, efficiencies can
further be realized as functional organizations integrate their activities vertically so
that products are sold and distributed quickly and at low cost. For instance, a small
business could start making the components it requires for production of its products
instead of procuring it from an external organization. But not only beneficial for
organization but also for employees faiths.

Span of Control

Span of control refers to the number of people who report to onemanager or

supervisor.
Span of Control is following types:
1.Wide Span of Control: A wide span of control results in a flat organization—
that is, a large number of employees reporting to one supervisor.
2.Narrow Span of Control: A narrow span of control results in a tall organization,
in which a small number of employees report to asupervisor, necessitating a
larger number of supervisors.
Mayur has Narrow Span of Control. All the subordinate have to report to concert
department head for their daily report. If the supervisor-subordinate relationship
requires frequent interaction, the span of control must be narrow. If interaction is
infrequent,the span of control can be wide. For example, the hotel controllermust
review regularly the status of collections and payments with staff.

Advantage & Disadvantages of Functional structure:

40
The most important strength of a functional organizational design isefficiency. The
performance of common tasks allows for work specialization, which increases overall
productivity. Workers develop specialized skills and knowledge more rapidly.
Training is easier because ofthe similarity of tasks and the resulting opportunities for
inexperiencedworkers to learn from experienced workers. This helps new employees
quickly learn the kinds of behavior that lead to success and promotion. Coordination
of activities within functional departments is easier than in more broadly based
organizations.

A functional organization fosters efficiency, teamwork, and coordination of activities

within individual units. However, the functionalorganization’s most important
strength is also the source of its great-est shortcoming. The success of a hotel as a
business is measured byits overall performance and not by the performance of any
one department. A hotel with spotless guest rooms will not be successful ifguests’
front desk experiences are not up to par. Even if guests’ dining experiences are
superb, the hotel will fall flat on its face if its roomsare dismal. It is sometimes
difficult for each department to fully appreciate its role in the overall success of the
organization. It is vitalthat each department keep in mind the hotel-wide goals of
customerservice and profitability rather than focus narrowly on its own concerns.
Some means must be found to coordinate the activities of functional departments and
to set hotel-wide strategies and goals. A hotel’sfunctional organization demands
strong leadership.
New initiatives in hotels often require cooperation and coordination between
functional departments. New ideas tend to be stillbornif department heads lack a
hotel-wide perspective or have difficulty coordinating their activities. The tendency to
concentrate on doingthings right often overshadows the organization’s ability to do
the rightthing.

Ownership Pattern:
The delegation of authority creates a chain of command, the formalchannel that
defines the lines of authority from the top to the bottomof an organization. The chain
of commandconsists of a series of relationships from the highest position in the
organization to the lowest. The chain of command specifies a clear reporting
relationship for each person in the organization and shouldbe followed in both

41
downward and upward communication.
When designing an organizational structure, managers must consider the distribution
of authority. Defined simply, authority is the organizationally sanctioned right to
make a decision. Authority can bedistributed throughout an organization or held in the
hands of a fewselect employees.
Decentralizationis the process of distributing authority throughout an organization.
In a decentralized organization,an organization member has the right to make a
decision without obtaining approval from a higher-level manager.
Centralizationis the retention of decision-making authority by a high-level manager.
MayurUniquoters Ltd. follows Decentralization Authority. All the decision-making
problems are discuss with all the level of organization.

Advantages of Decentralized Authority:

Decentralization has several advantages. Managers are encouragedto develop
decision-making skills, which help them advance in theircareers. The autonomy
afforded by this style of operation also increasesjob satisfaction and motivation. When
employees are encouraged toperform well, the profitability of the organization
increases.

3.3 Functional Departments:

MayurUniquoters Ltd. has following functional departments:

42
 1. Raw Material Store Department
2. Research And Development Department
3. Chemical Lab Testing Department
4. Physical Lab Testing Department
5. Electronic Data Processing Department
6. Production Department
7. HR Department
8. Marketing Department
9. Finance Department

1. Raw Material Store

43
Raw Material Store stores all the raw material required like chemicals, fabric,
release papers etc. Purchase department makes a deal with the suppliers. When
raw material comes to the company first gate entry procedure like checking all
the documents, all other documents. Gatekeeper informs to the maintenance
department for the receiving of the order.

Fabric is three types:

1. Knitted fabric: It is a thin layer and have elasticity

2. Woven fabric: It is the normally used fabric.
3. Non-woven fabric: It is the thick layer of the fabric.

80% fabric comes from import and rest 20% comes from Gujarat (India).
Imported countries are USA, Malaysia, Korea, and Germany.

Chemicals are different types but mostly used are:

1. DOP: It comes from Malaysia, Germany, and USA. BASFA is the main
supplier from USA.
2. DINP: It is imports from Korea.
3. CPW: It comes from Korea. LG chemical is the only supplier.
4. Resin-124: Resin also comes from Korea

Release paper is imported from Hong Kong. Different type of release paper
imports according to the customers requirements. Customer also tells the
supplier which they have selected for their product so company has to purchase
from that supplier only.

Classification of release paper:

 Lintec
 Arjo
 Binda/ Favini
 Ajinomoto
 Sapi/Warrini
 Asani

44
After gate pass all the documents are checked and container send for weight.
After weight container unloaded. R&D takes samples from the unloaded material
for testing. R&D gives the report within 24 hours. When all the conditions match
with the requirements then order is accepted otherwise it is rejected and after
approval from the higher authority material send back to the supplier.

Raw Material Store receives order through Material Received And Inspection
Report (MRIR). MRIR consists all the requirements according to the customers.
Fabric inspected immediately after unloading and all the observation shows
through Fabric Inspection Report.

Raw Material Store basically stores fabric and unexploited chemicals. All the
explosive or flammable chemicals are stored in the Explosive Go down. Resin is
stored in another storeroom called Resin Store. Explosive Go down have
minimum temperature of 18C. Suppliers of the chemical also check the
conditions require for the material and after approval from them they export
their material.

Raw material stores according to the Store Layout Plan and Chemical Layout
Plan. Store also consists KANBAN Board first entry of material receiving done on
the board. Raw Material Store follows FIFO method. According to the FIFO
method first that material issues which received first.

Advantages of FIFO method:

1. The valuation of closing inventory tends to be nearer current market

prices as well as at cost since closing stock consists of most recently
acquired units,
2. Being based on cost, no unrealized profits enter into he financial results of
the period.
3. If prices of materials or goods do not fluctuate very frequently, this
method is easy to operate.
4. This method is realistic as it assumes that units sold or issued to
production are in order of their purchases.

Limitations of FIFO method:

45
1. On a rising market (or inflationary market reflected by rising prices), it
reports larger profits because the lower priced lots were used first.
2. Calculation becomes cumbersome if there are violent fluctuations of
prices of goods or material purchased.
3. In times of rising prices, charges to production are unduly low.
4. Comparison between different jobs executed by the concern as rendered
difficult because the prior jobs might have used the supply of lower-
priced stock.

46
2. Researchand Development Department

Research and Development department is the first processing department of the

company. Any order received from the customer is prepared as a sample in this
department then after it is sends for production. R & D dept. has two types of
process

1. New product development

2. Existing product development

Marketing department receive the order from the customer. If it is existing

product then a sample is prepared and sends for the production. And if it is new
product then it is send to new product development team. They prepare samples
according to requirement of the customer.

Marketing department receive order through First Request Form. This form
includes the requirements of the customer. Then after R&D Department
formulation (Paste) for the product. Formulation is the basic raw material for the
product then it sends through the sample preparation process. A sample is
prepared and it sends to the lab for the testing of the sample. Lab department
gives the report of the testing. The test reports send to the marketing
department and shows to the customer. After approval from customer it send for
production. If it is rejected from the customer then renew process.

If it is the new product development then new product development team

prepare the new product according to the requirement of the customer. Sample
is prepared and it sends for the testing. After the approval from the customer
production process starts.

Specific customer have specific requirement for the product like BMW, Mercedes,
Maruti, Tata , Bata, Liberty etc. This company manufactures following qualities of
leather:

 100% PU
 PVC

47
  PU & PVC

All therequest from the customers is enter into the Product Modification request
Form. This form includes area of the customer, color of the leather , Design of the
product , thickness, sample testing method etc.

3.Chemical Testing Lab Department

It is a raw material testing lab. They have 2-3 raw material suppliers for each
product. When company gets raw material from the suppliers it has a certain
procedure for its acceptance. After getting test report of the raw material from
the Chemical Lab testing Department Company accept the order. If the supplier
fails to fulfill the requirements of the company it can reject the orders.

This lab is containing various machines for testing of chemicals and raw material.
Following are the machines:

1.Bomb Calorimeter: It is use in the high temperature testing. It does coal

testing of raw material.

2.Digital Oil Bath: It is use in the testing of uniform temperature of raw

material. It checks color migration of finished goods.

3.Oven: Low degree raw material testing is done in the oven.

4. Decomposition Temperature Apparatus: It converts solid form of raw

material to vapor form. The process done through a chemical agent (this
company use ADC for chemical agent).

5.Magified Lens: It is use for checking uniformity of the FG.

6. Hot Plate: Chemical boiling test is done through this machine.

7.Viscometer: It checks Viscosity of the chemical.

8.Hammer: It converts powder form of raw material to tablet form for further
testing.

48
9.Moister Meter: It tests moister content in the mixture.

10.Refractrometer: Degree of purity of raw material is tests by the help of

refractrometer.

11.Cold Chamber: Cold chamber tests raw material till -50C. ( For ford motor
Company it tests till -30C). It also done according the requirements of the
customers.

12.Humidity Control Oven: sample of raw material is tests for the duration of
168 hours at 90% humidity and 70% temperature or according to the customer’s
requirements.

13.Spectrometer: It checks color related properties of the products like

lightness, darkness etc.

After doing all these testing if raw material suitable for the next process the
order is accept. This department is requiring receipt of the entry of the container,
Party Report and Sample for the testing.

49
4. Physical Lab Testing Department

It is a finished goods testing lab. After manufacturing a sample from the R & D
Department product runs through a systematic process of testing. It gives a
feedback report to the R&D Department about the product then after they issue
order of mass production. This department contains various machines for testing
of FG.

Following are the Machines, whichuse:

1.Breaking Load Machine: It test weight power of product, which should be

according to the customer requirements. It is done through two types of
machines (A) Computerized tester Machine (B) Manual
Machine

2.Tear Machine: It test tear strength of the product.

3.Martindale Abrasion: It checks abrasion and color transfer of FG.

4. Crackometer: It test rubness of the FG.

5. Belly Flexing Machine

6.Flexing Machine

7 Strata Flexing Machine

8.Color Matching Machine: It tests the look and feel of product during different
effect of light.

9.Traverse Thread Counter: It counts vertical and horizontal thread in the

products.

50
If the product fails in the specific requirements it sent back to raw material
department.

5. Electronic Data Processing Department

MayurUniquoters Ltd. have its own Software development team. They develop
their needed software in this lab. Every software develops through an ERP
procedure. They have license of Microsoft other than it they develop their own.

5.Kitchen Department

Kitchen department prepares the raw material for coating. It has two parts:

1. MB Department
2. Mixing Department

MB (Master Base) Department prepares the color pigments for the product.
Some customers demands specific color for that they already have standard
color so that they don’t have any mismatching between requirements and
preparation.

The procedure for the Pigment preparation is following:

i. Rinse the vessel thoroughly with plasticizer given in information

ii. Taken approved formulation supplied by R&D
iii. Weight required quantity of plasticizer at given in the formulation
supplied by the R&D
iv. Add required quantity of dispersing agent as per the solution
v. Rinse the mixer set up with plasticizer given in the formulation

51
 vi. Take it under stirrer and start stirrer at lower speed
vii. Gradually add required quantity of pigment powder as peer the
formulation
viii. After complete addition stir foe at least another 10 min so all the
ingredients are properly mixed
ix. More the grinding before grinding check grinding roll for clean surface
x. Use only clean vessels
xi. Take the grinding at least two times
xii. Check the fineness of the grinding by Hegmann Scale
xiii. After completing grinding cover the drum as per the procedure
identification.

Kitchen process flow chart

Receiving of BRM & production plan

Review of stock

Update KANBAN Board

Paste preparation slip generate (ERP)



Vessel Cleaning

RM weighing & pouring as per mixing slip

52
 (Weighing Balance)

Weighing of ingredients & vessels

Mixing (Mixer)

Color Matching (Lab coater & spectrophotometer)

Grinding & Checking (Grinding machine)

Filtering & Checking

Filteration (Shade Checking)

De- aeration (De-aerator)

Weighing & Supply to production Line

Return Paste Weighing Recorder

(Register)

53
Mixing department mix all the raw material chemicals e.g. DOP, DINP, Pigments and other
chemicals. PPC department prepares daily planning for production. According to the PPC
report R&D department prepares BRM (Bill of Raw Material). Then it sends to Kitchen
they maintain KANBAN board basis on the report. KANBAN Board shows the availability
of raw material required. BRM shows the requirements of the customer e.g. Thickness,
softness heat stability etc. Based on the BRM executive makes Paste Preparation Slip. PPS
include the standard set by the R&D for the particular product.

Kitchen: Mixing Process

Weighing a Clean Empty Vessel


Ingredient Weighing

(M-1)


Mixing (Twin Shaft Mixer)

(M-2)


Grinding (Triple Roll Mill)

(M-3)


Color Matching & Checking

(M-4)


De-Aeration

(M-5)

54
 Checking of Paste

(Finished Ready)


Weighing of Vessels with Ready Paste


Ready Material Waiting for Coating Line

6. Production Department

Production Department receive the manufacturing order from the R&D

department and start production by following process :

55
56
Production starts from the design require on the leather. According to the design
paper is imported and it stores in the raw material store. Papers send to through
the inspection process. All the defaulted paper are rejected and other are sending
to next process. Then paper sends for unwinding. It stores in the accumulator for
the emergency requirement. Accumulator stores 60-meter paper. After paper
kitchen department according to the R&D department prepares process paste

57
and paste is tested through online testing. Paper passes through first coating
called pre skin coating then it pass through oven, and then passing through
cooling drums for the next stage. Next stage is skin coating. All the coating
chemicals are prepare according to the standard set by R&D. After second
coating it send for heating to oven and after for cooling to the cooling drum. It
sends for third coating called foam coating. And pass through oven for swelling
supported by chemical agent. After that it send to cooling drum. Then it passes
for adhesive coating and it help in fabric lamination. Then it passes to the
pressure machine and oven. After all the GSM (Gram Per square) thickness is
checked. The release paper winded and the roll called Jumbo Roll. Released
paper can be use 3 times. Jumbo Roll sends for inspection and inspection
department check for any fault. Jumbo Roll convert into small Roll according to
the customers requirement.

Packaging of the Roll depends on the thickness of Roll:

THICKNESS COLOR
0.4 to 1.15 cm product White
1.20 to 1.75 cm product Light Blue
1.80 & Above Light Green
Coag Base Pink
Trial Product Yellow
22/4 Hock Black Dark Blue
22/4 PDLR Black Green Color
22/4 Gray Products White Color

Packaged material send to the Finished Good store and from there it transports
to the customers. Export material packed in the other packet also.

PPC department:

It plans daily planning for the production. MayurUniquoters Ltd. Have three
plants. All the three plants have same procedure for the production. PPC
department check the raw material available in the Raw Material Store and if all
the materials are available then they plan for the day. Daily planning displays on
KANBAN Board next planning display only when previous planning completed.

58
Plant also have Policy Deployment Matrix, Prevent maintenance etc. PPC
department responsible for the following activities:

—Materials Planning

—Purchasing

—Raw Material Inventory Control

—Coordinate Customer Orders

—Finished Goods Inventory Control

—Capacity Planning

—Scheduling Machine and People

—Inventory Control

59
 Fig. PPC Process

Online Lab. Test.: -

Online Lab Testing done during the production process. A big sample paper
comes from each plant. Lab Executive test the sample by following procedure:

 Big sample
 Cutting small sample of the product
 Testing of those pieces in the lab
 Preparing the report of the product

60
After the approval from the online testing lab, production starts on large scale.

Maintenance Department:

Maintenance Department keeps the record of incoming and outgoing materials.

Incoming material called Raw Material. Raw Material have certain procedure of
acceptance first it passes through gate entry. Then sample is taken for quality
check. R&D department checks the quality and other requirement of the
material. After all the checking it is accepted and store in the Raw Material Store.
Rejected material send back through Purchase Return Voucher to the supplier
after the discussion with the higher authority.

Maintenance department works on the EOQ model. They order before the
reorder level. For the emergency requirements it have safety stock level. When
the stock reaches to the safety stock level it order for the raw material. It issues
raw material to the production department through Issue Slip. Unused material
return to maintenance store by the production department through Stock Return
Voucher.

Maintenance department classify the goods basis on the following:

1. ABC Analysis
2. VED Analysis

1.ABC Analysis: ABC analysis classify the goods basis on the usage, like

 A- Highly used
 B- Moderate used
 C- Low used

2.VED Analysis: VED analysis divide the goods basis on requirements:

 V- Vital goods
 E- Essential goods
 D- Desirable goods

61
Maintenance department also maintain the machinery of all the three plants. It
has mechanical engineers for the maintenance of machinery. They work 24 hrs
for all the three plants.

TPM (Total Productive Maintenance):

Total Productive Maintenance (TPM) is an equipment management program that

emphasizes operator involvement and ownership of equipment performance.

The goals of a TPM program are to maximize equipment productivity, maximize

equipment availability and make quality product by eliminating causes of
equipment defects, losses and wastes through expanding and engaging the
knowledge, skills and abilities of the front-line people running the process.

Goals of TPM

 Zero accidents
 Minimum life cycle cost
 Zero unplanned downtime
 Zero speed losses
 Zero defects
 Zero waste

MayurUniquoters Ltd. is totally based on TPM and KAIZEN. In the TPM it has
own TPM team. Team members are responsible for all the preventive measures.
They analyze problem in all three plants and take preventive steps for
maintenance so that it can improve productivity of the firm. For e.g.

 Before TPM: Chemical were stored in the drums so lot of chemical

wastage during the transfer in other vessel.
After TPM: chemical stored in the boxes so it minimizes the wastage.

 Before TPM: Open wired was used in the plant so indicates the accidents.
After TPM: wires were covered so it prevents accidents.

62
KAIZEN:

KAIZEN composed with two words it means continuous improvement. . Kaizen

is Japanese ‘Quality Control System’ for continuous improvement in quality,
technology, processes, company culture, productivity, safety and leadership in an
organization.

It emphasizes the well-being of the employee, working smarter, not harder and
developing best practices so that workers don't have to think.The kaizen
philosophy lies behind many Japanese management concepts such as total
quality control, quality circles, small group activities, labour relations.

THE KAIZEN 5 S FRAMEWORK FOR GOOD HOUSEKEEPING:

1. Seiton (Sort): Sort out what is needed and what not needed, when is
doubt tag it out.
2. Seiri (Straighten): Keep everything that is needed in an orderly fashion so
that things can be access easily.
3. Seiso (Sweep): Clean the machine, floors and walls, looking for source of
filth.
4. Seiketsu (Standardize): Make standards so that any abnormality becomes
obvious.
5. Shitsuke (Self –Discipline): Sustain the improvement to prevent
backsliding.

3Ms of work

Muda :meaning waste

Mura :meaning irregular, uneven or inconsistent

Muri :meaning unreasonable or excessive strain

The goal of Kaizen is to eradicate these three Ms.

7 Wastes (MUDA) :

63
TaichiOhno of Toyota identified what are called the seven wastes or seven
mudas, being the most common form of muda found:

Muda means waste, where waste is any activity that does not add value.
Reducing or eliminating muda is, of course, one of the fundamental objectives of
any quality-oriented person. Following are the seven type of wastage:

Waste-1:Overproduction

Waste-2: Waiting

Waste-3: Transportation

Waste-4: Process

Waste-5 :Inventory

Waste-6: Operator Movements

Waste-7: Defects

7. HR Department

HR VISION: -

Create a company we are proud of.

HR STRATEGY: -

 A place where people work with a smile on their face and Dreams in their
eyes.

64
  A place where your views can be freely voiced and are with an open mind.
 A place where you know whenever you need help. There is family of 400
members waiting to help you out.
 A place where you would like to be associated, grows, nurtured and excel.

Notice Board: -

1. Thought of the day-Quotation

2. Birthday
3. Training
4. Self introspection-motivation pictures
5. Communication.

They have motivational ppt’s print out in the plant to motivate the employees to
increase the work efficiency.

HRM FUNCTIONS: -

HRM: The policies and practices involved in carring out the people or human
resource aspect of management position including recruiting , screening, training ,
rewarding and appraisal.

Managerial functions:-
Planning: -Establishing goals and standards; developing rules and procedures;
developing plans and forecasting.

Organizing: - Giving each subordinate a specific task; establishing departments;

establishing channels of authority and communication; coordinate the work of
subordinates.

Staffing: - Recruiting prospective employees; selecting employees; setting

performance standards; compensating employees; evaluating performance; counseling
employees; training and developing employees.

Directing: -Directing employees for right job; maintaining morale; motivating

employees.

65
Controlling: -Setting quality standards, or production levels; taking corrective action
as needed.

Operational functions: -

The basic operational function of HR department is HR planning. After HR planning

they starts other activities.

HR Planning:

The process of deciding what position the firm will have to fill and how to fill them.

1.Recruitment & Selection: -Recruiting qualified candidate to a particular job and

making hire or no hire decision regarding each applicant for job. Recruitment and
selection is done on the basis of interview methods.

Recruitment is done by the following methods:

 Notices
 Circular
 Through Job Posting: Publishing public job to employees indicating attributes,
Qualification, Supervisors payroll etc.
 Rehiring: Taking back people which left the company.
 Advertising
 Employment agencies
 College recruiting

Recruitment yield Pyramid:

66
 I n va
M idt de de
N e w
G e n ee sr a t e
O
C a f f
L ne d e r s
a idd sa t

Selection Procedure:

 Completion of application form

 Preliminary interview
 Selection test
 Interview
 Checking reference
 Background investigation
 Final selection
 Job offer
 Job contract: Mayur has 3 years Job contract

2.Training & Development: -

Providing the training to new employees with specific skills or helping them correct
deficiencies in their performance and developing the new skills required by job. For
the effectiveness of the employees Mayur conducts weekly training programs like

67
Kaizen training classes, TQM classes , TPM etc. so that they can implement the
things what they learnt in the training schedule.

Principles of Training:

 Every person must have a goal

 Meaningful presentation
 Modeling
 Active participation
 Reputation
 Making people active for participation
 Feedback
 Reinforcement

Mayur uses different types of training programs:

 Cooperative Training
 Classroom instruction
 Audio visual method
 E-learning
 On the job experience
 Staff meeting
 Seminars
 Conferences
 Management games

3.Performance Management:

A process that consolidates goal setting, performance appraisal and development into
a single common system, the aim, which ensures the employee performance, is
supporting the company’s strategic aim.

68
Performance Appraisal: -Evaluating the employee’s current and past performance
relative to his/her performance standards.

Mayur uses following types of performance appraisal system:

 Self-Appraisal: Performance appraisal done by employee evaluated generally

by appraisal from completed by employee prior.
 Subordinate Appraisal: The performance of a superior by employee, which is
more appropriate for development and administrative purpose.
 Peer Appraisal: The performance appraisal done by one’s fellow employee.
 Team Appraisal: The PA based on TQM concept and recognized team
 360 Appraisal: Rating are collected overall an employee from subordinates,
supervisor, peers, internal and external customer.

4.Industrial relationship & Labor laws:-

Relationship between employer, employee & government. Company follows all the
labor laws in the favor of employees for care of their salaries, bonus, compensation
etc.

69

















8. Marketing Department

MayurUniquoters Ltd. Distributes its market into following parts:
1. Delhi-Punjab-Agra-Kanpur
2. Export
3. Automotive
4. OEM Export
5. South Region
6. Rajasthan-Bihar-Mumbai-Kolkata

The structure in the marketing department is flatter rather than hierarchy.

Director/CMD/ GM/ DGM



Executive
(Marketing)


Manager/Assistant Manager

70


The process of marketing is

1. Order Received
2. Order Generate
3. Authorized by QC/R& D/PROD.
4. Order by PPC
5. Production (Jumbo Roll)
6. Inspection
7. Dispatch

Financial
Strength

Conservativ Agressive
e
Competi Industry
tive Strength
Strength
Defensive Competiti
ve

Environment
stability
Fig: SPACE Matrix

71


Fig: PLC

9. Finance Department:

Finance really needs to understand its wide-ranging role and set of responsibilities
more clearly, and then make this relevant to the business that it operates in.
The reality is that the finance function provides a broad range of different services to
meet corporate, legal, statutory, tax and compliance… requirements, to provide
transactional, administrative, professional and technical services to the business, and
to deliver financial and management reporting and value add decision support.
It is critical that each requirement is clearly understood and that organizational and
specific job roles, responsibilities and activities are clearly defined and aligned
appropriately. Only then can the finance function across all its responsibilities really
achieve the triple benefit of world class service levels, at lowest possible cost, while
ensuring an effective and efficient enterprise wide control environment.

Duties & Responsibilities:-

 Maintaining of the Company Accounts.

 Preparation of the Budget for the Year.

72
 Salary Disbursement and Claim Settlement.
 Auditing of the Accounts.

ACCOUNTING POLICY

(A)System of Accounting:

The Company generally follows the mercantile system of accounting except stated
otherwise.

(B) Fixed Assets:

Fixed Assets are stated at Cost. The Company capitalizes all costs relating to Fixed
Assets acquisitions and installation. The direct cost and financial cost incurred up to
the date of commissioning is also capitalized in respect of Fixed Assets.

(C) Depreciation:

(i) Depreciation has been provided at the SLM rates as prescribed by Schedule XIV
of the Companies Act, 1956.

(ii) Depreciation has been provided on Double Shift Basis for existing plants and on
Single Shift Basis for New Matex Plant installed, during the current year.

(iii) Depreciation on additions and deletion during the year has been provided with
reference to the date of addition and deletion.

(iv) Land& Site development has not been depreciated.

(D) Foreign Currency Transactions:

(i) Cost of imported material is converted to Indian currency at the rates applied in
Bill of Entry for custom purposes.

(ii) The expenditure in Foreign Currency is accounted at the rates prevailing on the

73
date of transaction.

(iii) The Export sales are accounted for at the actual rates prevailing at the time of
transaction.

(iv) Exchange fluctuation arising on repayment of Long Term Liability incurred for
the purpose of acquiring Fixed Assets is charged to Profit & Loss A/c as per the
provisions of AS-11.

(v) Balances of Monetary items in, Foreign. Currency outstanding at the close of the
year is converted in Indian currency at the appropriate rates of exchange prevailing on
the date of the Balance Sheet.

(vi) Exchange rate difference between the prevailing rate on the date of transaction
and on the date of settlement as also on conversion of monetary items in Current
Assets and Current Liabilities at the end of the year are recognized as Income &
expense as the case may be.

(E) Inventories:

(i) Raw material, stores, spares, consumable work-in-process and other goods are
valued at landed cost or Net Realizable Value, whichever is lower.

(ii) Finished goods are valued at Cost or Net Realizablevalue, whichever is lower.

(iii) The cost of imported raw material includes custom duties and other direct
expenditure.

(iv) The cost of finished goods comprises of Raw Material Cost (proportionate of
selling price), Manufacturing Expenses, Payment to & provision for employees,
Depreciation on Plant & Machinery and factory building (as cost per linear meter on
production).

74
 3.4 AUDIT REPORT

We have audited the attached Balance Sheet of MAYUR UNIQUOTERS LIMITED,

JAIPUR, as at 31st March, 2008, the Profit and Loss Account and also the Cash Flow
Statement for the year ended on that date annexed thereto. These financial statements
are the responsibility of the
Companys management. Our responsibility is to express an opinion on these financial
statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in

India. Those Standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also include assessing
the accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.

75
 1. As required by the Companies (Auditors Report) Order, 2003 issued by the
Central Government of India in terms of sub-section (4A) of Section 227 of the
Companies Act, 1956, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.

2. Further to our comments in the Annexure referred to above, we report that:

(i) We have obtained all the information and explanations, which to the best of our
knowledge and belief were necessary for the purposes of our audit;

(ii) In our opinion, proper books of account as required by law have been kept by the
company so far as appears from our examination of those books.

(iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with
by this report are in agreement with the books of account.

(iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report comply with the Accounting Standards referred to
in sub-section (3C) of Section 211 of the Companies Act, 1956,except otherwise
stated.

(v) On the basis of written representations received from the directors, as on 31st
March, 2008, and taken on record by the Board of Directors, we report that none of
the directors is disqualified as on 31st March, 2008 from being appointed as a director
in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956;

(vi) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts give the information required by the
Companies Act, 1956, in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:

a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st
March, 2008;

76
b) in the case of the Profit and Loss Account, of the Profit for the year ended on that
date; and

c) in the case of Cash Flow Statement, of the Cash Flows for the year ended on that
date.

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF AUDITORS REPORT OF

EVEN DATE TO THE MEMBERS OF MAYUR UNIQUOTERS LIMITEDON
THE ACCOUNTS FOR THE YEAR ENDED MARCH 31, 2008.

1 (a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.

(b) Fixed Assets have been physically verified by the management during the year at
reasonable intervals. No material discrepancies were noticed on such verification.

(c) Substantial parts of fixed assets have not been disposed off during the year.

2. (a) The inventory of the Company has been physically verified by the
Management during the year. In our opinion, the frequency of verification is
reasonable.

(b) In our opinion, the procedures of physical verification of Inventory followed by

the Management are reasonable and adequate in relation to the size of the Company
and nature of its business.

(c) The Company has maintained proper records of inventory and the discrepancies
noticed between the physical stocks and the book record were not material.

3. (a) The Company has not granted any loans unsecured or secured to companies,
firms or other parties covered in the register maintained under Section 301 of
Companies Act, 1956. Hence requirement of clause 3(b), 3(c) and 3(d) is not
applicable.

77
 (e) The Company has not taken any loans unsecured or secured from Companies,
Firm or other parties covered in the register maintained under section 301 of the Act.
Hence requirement of clause 3(f) and 3(g) is not applicable.

4. There is adequate internal control procedure commensurate with the size of the
Company and the nature of its business with regard to the purchases of inventories,
fixed asset and for the sale of goods. We have not observed any continuing failure to
correct major weaknesses in internal control system.

5. (a) According to the information and explanations given to us, we are of the
opinion that the transactions that need to be entered into the register maintained under
section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in the register
maintained under Section 301 of the Companies Act, 1956 and exceeding the value of
rupees five lakes in respect of any party during the year have been made at prices
which are reasonable having regard to prevailing market prices at the relevant time.

6. As informed to us, the Company has not accepted any deposits under the
provisions of Section 58A and 58AA of the Act and the rules framed there under.

7. In our opinion, the company’s present internal audit system is commensurate with
its size and nature of its business.

8. As informed to us, maintenance of cost records has not been prescribed by the
Central Government Under Section 209(l)(d) of the Companies Act, 1956, for the
products of the Company.

9. (a) According to the books and records as produced and examined by us in

accordance with generally accepted auditing practices in India and also based on
Management representations, undisputed statutory dues including Provident Fund,
Employees State Insurance dues, Investor

78
The Company has generally regularly deposited education and Protection Fund,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom duty, Excise duty, Cess
and other material statutory dues, during the year with the appropriate authorities in
India.

(b) As at March 31, 2008, there have been no disputed dues which have not been
deposited with the respective authorities in respect of Income Tax, Wealth Tax, Sales
Tax, Service Tax, Custom Tax, Excise Duty and Cess.

10. The Company has neither accumulated losses as at March 31, 2008, nor it has
incurred any cash loss either during the financial year ended on that date or in the
immediately preceding financial year.

11. In our opinion and according to the information and explanations given to us, the
Company has not defaulted in repayment of its dues to any financial institution or
bank or to debenture holders during the year.

12. The Company has not granted any loans or advances on the basis of security by
way of pledge of shares, debentures, and other securities.

13. Considering the nature of activities carried on by the Company during the year,
the provisions of any special statute applicable to chit fund / nidhi / mutual benefit
fund/societies are not applicable to it.

14. The Company has not dealt or traded in shares, securities, debentures or other
investments during the year.

15. The Company has not given guarantees for loans taken by others from banks or
financial institutions.

16. The Company has not taken any term loan during the year.

17. On the basis of review of utilization of funds, which is based on overall

examination of the balance sheet of the company, related information as made

79
available to us and as represented to us by the Management, funds raised on short-
term basis have not been used for long-term investments.

During the year the Company has allotted 150000 Equity Share to Mrs. PujaPoddar,
a party covered in the Register maintained under Section 301 of the Companies
Act, 1956 on conversion of Equivalent number of Convertible Warrants issued at
a price of Rs. 38/- per Warrant decided in accordance with the requirements of
SEBI (DIP) Guidelines 2000 relating to the Preferential Issue.

19. The Company has not issued any debentures during the year.

20. The Company has not raised any money by public issue during the year.

21. As per the information and explanations given to us and on the basis of
examination of records, no fraud on or by the Company was noticed or reported
during the year.

In the audit report they enclosed the consolidated Balance Sheet and P&L account as
well as capital structure of the company. These are the report of year 2008-2009.

Balance sheet

Balance Sheet of MayurUniquoters  

------------------- inRs. Cr.

-------------------  

  MAR'09

Sources Of Funds  

Total Share Capital 5.21

Equity Share Capital 5.21

Share Application Money 0.23

Preference Share Capital 0

Reserves 18.99

Revaluation Reserves 0

80
Networth 24.43

Secured Loans 8.98

Unsecured Loans 0

Total Debt 8.98

Total Liabilities 33.41

   

Application Of Funds  

Gross Block 32.4

Less: Accum. Depreciation 11.08

Net Block 21.32

Capital Work in Progress 0.14

Investments 0.07

Inventories 7.2

Sundry Debtors 20.4

Cash and Bank Balance 2.26

Total Current Assets 29.86

Loans and Advances 3.02

Fixed Deposits 2.15

Total CA, Loans & Advances 35.03

Deffered Credit 0

Current Liabilities 22.19

Provisions 0.96

Total CL & Provisions 23.15

Net Current Assets 11.88

Miscellaneous Expenses 0

Total Assets 33.41

   

Contingent Liabilities 0.15

Book Value (Rs) 46.47

81
Profit & loss account

Profit & Loss account of MayurUniquoters  

------------------- inRs. Cr.

-------------------  

  MAR'09

Income  

Sales Turnover 97.81

Excise Duty 7.57

Net Sales 90.24

Other Income 0.45

Stock Adjustments 0.27

Total Income 90.96

Expenditure  

Raw Materials 70.08

Power & Fuel Cost 0.99

Employee Cost 3.78

Other Manufacturing Expenses 1.4

Selling and Admin Expenses 3.33

Miscellaneous Expenses 0.81

Preoperative Exp Capitalised 0

Total Expenses 80.39

   

Operating Profit 10.12

PBDIT 10.57

Interest 1.17

PBDT 9.4

Depreciation 1.39

Other Written Off 0

82
 Profit Before Tax 8.01

Extra-ordinary items -0.01

PBT (Post Extra-ord Items) 8

Tax 2.89

Reported Net Profit 5.11

Total Value Addition 10.31

Preference Dividend 0

Equity Dividend 1

Corporate Dividend Tax 0.17

Per share data (annualised)  

Shares in issue (lakhs) 52.07

Earning Per Share (Rs) 9.82

Equity Dividend (%) 20

Book Value (Rs) 46.47

Capital Structure:

Capital
Structur
e            

Instrumen Authorized Issued -PAIDU

Period t Capital Capital P-    

Shares Face Capita

From To (Rs. cr) (Rs. cr) (nos) Value l

2007 2008 Equity Share 7 5.21 5206600 10

2006 2007 Equity Share 7 5 5000000 10

2005 2006 Equity Share 5.5 5 5000000 10

2004 2005 Equity Share 5.5 5 5000000 10

2003 2004 Equity Share 5.5 5 5000000 10

2002 2003 Equity Share 5.5 5 5000000 10

2001 2002 Equity Share 5.5 5 5000000 10

2000 2001 Equity Share 5.5 5 5000000 10

1999 2000 Equity Share 5.5 5 5000000 10

83
1994 1999 Equity Share 5.5 5 5000000 10

1993 1994 Equity Share 5 1.75 1750870 10

CHAPTER 4

SWOT ANALYSIS

84
STRENGTHS

 Existence of more than sufficient productive capacity in tanning.

 Easy availability of low cost of labour.
 Exposure to export markets.
 Managements with business background become quality and environment
conscious.
 Presence of qualified leather technologists in the field. Comfortable
availability of raw materials and other inputs.
 Massive institutional support for technical services, designing, manpower
development and marketing.
 Exporter-friendly government policies.
 Tax incentives on machinery by Government.
 Well-established linkages with buyers in EU and USA.

WEAKNESSES

 Low level of modernisation and upgradation of technology, and the

integration of developed technology is very slow.
 Horizontal growth of tanneries.
 Less number of organised product manufacturers.
 Highly unhygienic environment.
 Unawareness of international standards by many players as maximum number
of leather industries areSMEs.
 Difficulties in accessing to testing, designing and technical services.
 Environmental problems.

85
OPPORTUNITIES

 Abundant scope to supply finished leather to multinationals setting up shop in

India.
 Growing fashion consciousness globally.
 Use of information technology and decision support software to help eliminate
the length of the production cycle for different products
 Product diversification - There is lot of scope for diversification into other
products, namely, leather garments, goods etc.
 Growing international and domestic markets.

THREATS

 Entry of multinationals in domestic market.

 Stiff competition from other countries
 Non- tariff barriers - Developing countries are resorting to more and more non
– tariff barriers indirectly.
 Improving quality to adapt the stricter international standards.
 Fast changing fashion trends are difficult to adapt for the Indian leather
industries.
 Limited scope for mobilising funds through private placements and public
issues, as many businesses are family-owned.

86
 CHAPTER 5

DISCUSSION ON TRANING

87
5.1 Student work profile:

I was assigned to work with raw material store department with organization study. I
have to do the entries of raw material according to the FIFO method in the raw
material store books.

Process of raw material store:

 Purchase department makes the deal with the suppliers of raw material
according to the requirement.
 When raw material comes to the gatekeeper based on the suppliers report does
the plant first gate entry procedure. Then it sends for weight. After that
maintenance department take over the charge and unloaded it
 From the raw material R&D department takes the samples for testing. After
the report of R&D material is accepted.
 Raw material stores consists fabric and release paper. It is received on the
basis of MRIR. MRIR consist the requirements of the customers.
 First entries of the receiving are done on the KANBAN board and in the books
of raw material store according to FIFO method.

In the store I was supposed to do maintain the record of raw material based on FIFO
(first in first out method).

88
5.2 Learning Experience:

MayurUniquoters Ltd. is the large-scale firm of synthetic leather manufacturing. It

has 3 plants for different types of leather manufacture. I studied all the departments of
the company. My learning experience was to know the practical implication of the
theories in the real world. As an organization follows all the theoretical part of the
academics which I have studied in my theory classes.

Production Department:

It is a manufacturing firm so it implants all the quality improvement terms like

KAIZEN, TQM and TPMetc. So I came to know the importance of all the terms.

It has separate raw material test lab which ensure the quality check before the
production starts. For a manufacturing firm it is very necessary to continuous
improvement in the product. That’s the reason it has different types of labs. I
understood the customer importance and giving value to the customer through this
type of satisfaction.

Marketing Department:

It has different divisions of marketing function like exports, imports and other
different section. I came to know through marketing department about distribution
channels, 4P’s of marketing, how to adopt the different type of marketing strategy
according to the situation, many more concepts of marketing.

89
Finance Department:

I came to know the knowledge of the capital structure using financial leverage,
accounting policy, strategic cost management, allocation funds, payment procedure to
employees and suppliers.

HR Department:

During my training recruitment of new candidates were going onwhich helped me in

understanding the recruitment and selection policies of the company. They provide
weekly training to improve skills and knowledge of employees. It also provides
rewards in terms of monetary or non-monetary for their effectiveness.

Organization:

I also learnt about the advantages of having an organization structure, organization

culture, organization design etc.

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 CHAPTER 6

BIBLIOGRAPHY

A) Websites
 www.mayuruniquotersltd.com
 www.moneycontrol.com
 www.wikipedia.com

B) Books
1. Marketing Management (2009 13th Edition)
Philip Kotler, Kevin Lane Keller,
Abraham Koshy, MithileshwarJha.
(PEARSON Prentice Hall)
2. Human Resource Management (2009 11th Edition)
Garry Dessler
(PHI Learning Private Limited)

C) Annual report of the company

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