1

A
PROJECT REPORT
ON
WORKING CAPITAL
OF

HINDUSTHAN NATIONAL GLASS & INDUSTRIES LTD.

In the Partial Fulfilment of the Degree of

MASTER OF BUSINESS ADMINISTRATION

From

COER SCHOOL OF MANAGEMENT,

(Affiliated to H.N.B.Garhwal University, Srinagar, U.K)

Submitted To:
H.N.G.I.L VIRBHADRA
BHANDARI
RISHIKESH
2rd year

Submitted by:
DEEPTI
M.B.A

FORWORD

In todays highly competitive and rapidly changing environment, the companies need welltrained and skilled worker to survive. India is a very rich country in terms of resources,
whether natural or technical but it very infortunate to state that India, till now, has not
perfectly learnt how to deploy its manpower and its human resources for the betterment of its
citizenry and business goal.
On the whole the condition of our nation is not as well as it should be the reason is that, we
have a great quantity of people but unfortunately it is not well trained. The only was to pull
out India from this condition is concerting the human resources of the country into human
capital.
Thats why management education has become more popular and important as well but no
education is complete without some practical knowledge. So to get the student familiar with
the real life situation, a summer training of 6-7 weeks duration has been kept in the MBA
course.
For my summer training, I chose the HINDUSTHAN NATIONAL GLASS &
INDUSTRIES LTD. It is well established and renowned in its field and is serious about
training its working and intend to make it understood that they really care for them.

CONTENTS

Acknowledgement
Preface
Experience during summer training
Introduction of HNGIL
HNGs Vision
HNGs Group profile

Board of Directors of the CompanyHistory

Hindusthan National Glass& industries Limited
Location Of The Company
Lab and machines equipments
Organizational chart
Bussiness standard
Welfare activities
SWOT analysis of the company
Safty measures
HNGs policies
Human resourse department activities
ISO awareness
Manufacturing process of glass
Veerbhadra unit profile
Performance appraisal system

Purpose of performance appraisal

Charecterstisc of performance appraisal
Objectives of system
Business progress (2011-2012)
Financial highlights of (2011-12)

Research methodology

Meaning
Objectives of research
Data collection of resousces
Data analysis and interpretation

ACKNOWLEDGEMENT
ANY ENDEAVOUR IS DIFFICULT TO EVEN INITIATE without the help of many good
souls, who are always there by the grace of God. This report is result of many helps provided
by many individuals, especially related with absenteeism problem in HNGIL.
I am grateful to HNGIL, Rishikesh, and (Uttarakhand) who allowed me to undergo my
summer training in their esteem organization.
I owe my sincere thanks to Mr. V.K. Chitturi (Vice President), Mr. B.D.Joshi (Officer, HR)
who not only helped and guided me but also encouraged me with their valuable suggestions.
The invaluable guidance of my project guide Mr. Charu Khurana, OIMT, has not only
helped in achieving this research study but also learn many aspects of this field.
I would be failing in my duty, if do not thank all those staff members who took pain to
cooperate while filling up the questionnaire and to my classmates who indirectly helped in
shaping my ideas and thoughts. Not forgetting my mother whose silent prayers and blessings
were always with me as a great support in completion of this report.

PREFACE
As a part of my M.B.A. (Master in Business Administration) program I
was asked to undergo forty five days summer training in any organization, so as to give
exposure to practical management and to get familiar with the various activities in the
organization.
I got an opportunity to undergo my summer training in the reputed organization Hindustan
National Glass& industries Limited in Virbhadra (Rishikesh); it is the leading genet
manufacturing company in India. In Hindustan National Glass and Industries Limited. I was
allowed to work on the project title interpretation of financial statement of Hindustan
National Glass& industries Limited.
Research gives an ample opportunity to apply once academic knowledge in the field of
substantiated by ones inactive and lesion capabilities.
The basic purpose of this project is to present the subject matter in simple language and
easily understandable style to assist the reader to develop through understanding about the
actual scenario of the financial position of the organization.
For analysis and interpretation, financial data has been taken from financial reports of the
concern and performance is evaluated by applying the tool of ratio analysis.

Experience During Summer Training

Experiences make life enjoyable and enriching just as my summer training in Hindustan
National Glass And Industries Limited proved to be an asset for me. I got practical exposure
in various aspects of finance and I also learnt the dynamics of work related behavior of the
people working in the organization.
In the Hindustan National Glass And Industries Limited, employees of all level are instructed
to use same dress, canteen and conveyance. I am very impress from this behavioral
approach used by organization. The employees of Hindustan National Glass And Industries
Limited are very helpful and cooperative with everyone. I never face any problem during my
training period.
The company provided me all type of facility that I needed in my training period. I learnt
various types of MIS reports like how to make profitability reports of various glasses. I
understood the process of glass manufacturing used by the organization. I also gained
knowledge about the purchase and payment system of factory.
Quality of every product is checked by senior officials of quality control department at every
step that provided me thorough learning about quality controlling mechanism. I hope all
these experiences would help me in near future. On the whole my summer training was an
enriching experience for my future and I am always obliged to them for giving me such type
of knowledge.

INTRODUCTION TO HNGIL
HNGIL is manufacturer of all varieties of glass bottles/vials. Manufacturing
facilities are strategically located at Rishra near Calcutta (since 1952) and
Bahadurgarh near Delhi (since 1964), Rishikesh, Pondicherry and Nashik
with state-of-the-art induction furnace for manufacturing of castings in its own
foundry. HNGIL has incorporated its technology from the best suppliers in
Europe and USA. HNG Group operates 10 furnaces and 42 production lines with
fully automatic IS (Individual Section) machines up to 12 Sections operating on
Double and Triple Gob.
All the Plants have a thorough electronic inspection system right from the batch
mixing till the final packing. Quality control and R&D Sections are well
equipped with sophisticated instruments enabling production of international
quality glassware.
Well-equipped workshop to manufacture moulds for bottles of all designs &
shapes, backed up by own Power Generating Plants.
The far-sighted and dynamic approach of Mr. C.K. Somany, the highly focused
management strategies and the leadership qualities of his sons Mr. Sanjay
Somany and Mr. Mukul Somany have turned every challenge into a winning
formula.

HNGS Vision
To strive to be a major international producer of quality
containers glass by consistently following and adopting the most
modern methods and techniques in an environment friendly
manner with active involvement of its employees to meet the
needs of its customers and stakeholders so as to achieve
sustainable development and long term growth.

COMPANY
PROFILE

10

HNGIL Group Profile

A NAME TO RECKON WITH: HNGIL, the largest and most prolific producer of
glass containers, operating at present 10 furnaces at five locations (Rishra, Bahadurgarh,
Pondicherry, Rishikesh, & Nasik) and production lines. In addition HNG has acquired a
Glass Container manufacturing unit of M/s Haryana Sheet Glass Limited at Neemrana,
Rajasthan. A fully integrated Group having its own foundry for casting, well equipped
workshop for moulds and spare parts and captive power plants and quarries for sand with
fleet for finished goods movement has given competitive advantage to its customers.

A MARKET LEADER : In the 5 ml - 3200 ml segment, HNG Group is the

undisputed market leader catering to around 70% of the Domestic Market in the
pharmaceutical, beverage, processed food, cosmetic and liquor sectors covering industry
majors like, Coca-Cola, Dabur, Glaxo Smith Kline Beecham, Nestle, Pepsi, Reckitt
Benckiser (India) Ltd., Smith Kline Beecham, UB Group etc. Exports to South East, Middle
East, Africa and First World Countries in Europe & North America.

ON SUPER FAST GROWTH TRACK: Its spirit to ascend newer parameters

remains
as insatiable as ever. The days ahead are gleaming with promise. With
modernization, up gradation and foresight to meet the emerging and more distinctive
demands of the customers, the Group is all set for unprecedented achievements. With
projected planned investment of Rs.3000 million in the next three years. Touching life in
more ways than one and in total tune with the harmony of nature.

11

History
It was in 1952 that visionary entrepreneur Chandra Kumar (CK) Somany laid the
foundations for the HNG Group, with the inauguration of Eastern India's fully
automatic glass container manufacturing plant at Rishra, near Kolkata (Calcutta).
Today, a family dynasty has been created that leads the way in the local market,
catering to the needs of a diverse range of industries, from liquor and
pharmaceuticals to soft drinks and cosmetics. The far-sighted and dynamic
approach of Mr. Somany, coupled with the highly focused management strategies
and leadership qualities of his sons Sanjay and Mukul have turned HNG into a
recognized international player.
Hindustan National Glass & Industries Ltd (HNGIL) is a rare breed in the
international glass container community of the 21st Century, an extremely
successful family-owned and run business, market leader and owner of four
significant manufacturing plants. With a total melting capacity of 2300 tones/day,
the company is constantly in search of improvements. In total, 38 highly
productive lines are operated, from which pack efficiencies of better than 90%
are now standard. Introduction of the latest automation practices has also led to
reduced labour costs, workforce having dropped by two-thirds in the past 15
years to approximately 4000.

12

Diversified production capabilities

Alongside the original Rishra factory near Kolkata, since 1964 HNG has operated a plant at
Bahadurgarh, close to New Delhi. Flint, amber and green colors are produced on 13 Lines at
Rishra, while the larger Bahadurgarh facility melts flint, amber and cosmetic-grade
compositions, operating a total of 15 lines. Associate company Ace Glass Containers Ltd has
manufacturing capacity at Rishikesh (flint and green, six lines) and Pondicherry (flint, four
lines). Formerly a 100% subsidiary of USA-based Owens-Illinois Inc, Ace was acquired in
2002, when 0-1 took the unexpected decision to exit the Indian market. Prior to the HNG
takeover, production at a third factory in Pune had ceased. With the recent acquisition of the
container glass unit of Larsen & Turbo, situated at Nashik in Western India, HNG has now
established its presence in all the four zones of India. The Nashik plant has a melting
capacity of 330 tones per day, operating a total of four lines (flint).

Future plans
HNGs endeavor to cater for the entire Indian market has been successful but the quest for
further expansion has not ended as plans for a new facility between Mumbai and Baroda are
expected to be progressed within the next two years. When operational, this plant will be
larger than any of HNG's existing facilities, although precise details are still under wraps.
The origins of this collaborative approach stem from CK Somany's plans to develop the
business in the 1950s.
Alongside HNGs expansion of glass manufacturing expertise is a commitment to maximize
the capabilities and efficiencies of its support services. Apart from owning sand quarries, the
company operates a state-of-the-art induction furnace to make castings in its own foundry.
Located at Bahadurgarh, this operation complements a well-equipped mould production shop
and the latest CAD/CAM facility to design articles in a variety of shapes.
Also situated at Bahadurgarh is subsidiary company Glass Equipment (India) Ltd. GEIL was
created in 1974 and specializes in the manufacture of glass forming equipment. Currently
operating at full capacity to keep pace with HNG's own requirements as well as satisfying
orders from other glassmakers, GEIL produces complete IS machines as well as conversions,

13

electronic timing systems, feeders, conveyors, ware transfers, stackers, motor-driven presses
and spare parts.
Future successes
In recent years, the HNG group has emerged as India's leading glass container manufacturer,
expanding and modernizing its production expertise to keep pace with growth in the local
market. Demand is expected to grow by a further 8% in the next 12 months and while
smaller players become increasingly regionalized and unable to compete on an effective
level, there can be little doubt that HNG--led by the Somany family-can look forward to
continuing success in the future.

Hindustan National Glass & Industries Limited

It is the pioneer in Glass container manufacturing in India.
AGCL was formed in 1994 as Owens Bilt Ltd. (OBL), a joint venture between OwensIllinois inc. (OI), USA and Ballarpur Industries Ltd. (BILT), is currently owned by the C.K.
Somany group. After the takeover, OBIL was renamed as Ace Glass Containers Ltd. Since
inception, AGCL is engaged in manufacturing container glass & tumblers. Currently, the
company has three manufacturing plants at Rishikesh (Uttranchal), Pondicherry and Nasik
(Maharashtra) with an aggregate capacity of 366825 TPA. All the three units have ISO
9001:2000 accreditations.
Prior to the takeover by the C.K Somany group, the company had suffered huge operational
losses mainly on account of substantial overheads and tremendous competition from HNG in
respect of product pricing. The new management was able to address the overhead issue
effectively by adopting various cost cutting measures and leveraging on groups strong
position in the container glass market. Consequently, AGCL started earning profits
immediately after takeover (from financial year 2003 onwards). However in FY2006, the
company had suffered a loss on account of production loss, rise in the raw material prices
and increase in the capital charge.
In the organized segment of the domestic glass container industry, AGCL is the second
largest glass manufacturer after HNG with a market share of about 25%. It manufactures
about 300 types of glass containers, at an average of 15 lakh pieces per day, for industrial
customers. Its major customers include United Breweries, McDowell & company, Bacardi
Martini India, Nestle, GlaxoSmithKline and Seagram. AGCL uses state-of-the-art technology
for glass manufacturing. Since AGCL alone has a market share of about 25% and along with
its parent company, HNG, the group has a share of 65% in the domestic market.
In the FY06, AGCL refurbished the second furnace at Rishikesh Unit at a cost.

14

Lab and machine equipments

Groups of companies

Glass Equipment ( India ) Ltd.

Incorporated in 1974, Glass Equipment ( India ) Limited is a reputed Indian container glass
manufacturing company, which accounts for the manufacture of sophisticated equipment for
glass plants. It is also an expert in manufacturing critical spares for Glass container
manufacturing industries and provides solutions in setting up glass plants on a turnkey basis.
GEIL not only provides the equipments for the glass industries; it provides expert guidance
in the entire process of glass container manufacture.
Glass Equipment ( India ) Limited is located in New Delhi (on National Highway No. 10) at
a proximity to the Bahadurgarh Plant.

AMCL Machinery Ltd.

AMCL Machinery Limited is based in Butibori ( Nagpur ) on a prolific area of 5000 square
meters. It is one of the well known companies in India that deals with the design and
production of machineries for the Rubber & Tyre Industry, Transit Mixers, Cement Industry
and Bulk Handling System. It also accounts for the supply and installation of mechanical

15

equipments in the given industries. The company is certified with ISO 9001:2000 and is
looking forward to technical collaborations with the Japanese manufacturers.

Somany Foam Ltd.

Somany Foam Limited was set up at BHEL Industrial Area, Haridwar with a
capital outlay of INR 360 million. It is one of the fastest growing in India that
specializes in the manufacture of the different types of foam, especially
Polyurethane Foam.

HNG Float Glass Ltd.

HNG Float Glass Limited was incorporated in 2006 in Halol ( Gujarat ) under the flagship of
the HNG Group to manufacture the different varieties of float glass. The company started
with a capital outlay of INR 550 Cr and has an installed capacity of 600 TPD.
HNG Float Glass Limited was established by the HNG Group for a synergic diversification
of their line of business. This business initiative gave the Group an opportunity to explore the
new arenas of the glass business, which is booming at present.

16

Milestones

17

New Developments
NNPB Technology
NNPB is a revolutionary process that not only controls the distribution of glass
inside the container, but also reduces the weight of glass by 33% without having any
adverse effects on the performance of the glass containers. HNG is the first to
introduce and commercialize this technology in India. .
HNG introduced the narrow neck press and blow (NNPB) technology in 2007-08,
which lead to the reduction in the consumption of molten glass per bottle without
compromising on product strength. Facilitating superior glass distribution, this
technology reinforces the bottle's resistance to pressure on the filling line. It also
leads to a decrease in logistics cost and increase in consumer acceptability of the
bottles
HNG invested a capital of Rs. 100 Cr. to introduce this technology in India. On one
hand, this technology enabled the company to reduce production costs and wastages;
and on the other, it strengthened capacity utilization. Through NNPB, HNG strives
to remain competitive with other packing alternatives and continue to be the market
leader in India.
Narrow Neck Press and Blow Vs Blow and Blow technology:
The parison facilitates precision in control
Enhanced glass distribution throughout the bottle
Lighter in weight, hence a lower consumption of molten glass
Lower cost

18

Business Summary
HNGIL, the largest and most prolific producer of glass containers, operating at present 10
furnaces at five locations (Rishra, Bahadurgarh , Pondicherry, Rishikesh, & Nashik ) with
42 production lines. In addition HNG has acquired a Glass Container manufacturing unit of
M/s Haryana Sheet Glass Limited at Neemrana, Rajasthan. A fully integrated Group having
its own foundry for casting, well equipped workshop for moulds and spare parts and
captive power plants and quarries for sand with fleet for finished goods movement has
given competitive advantage to its customers. In the 5 ml - 3200 ml segment, HNG Group
is the undisputed market leader catering to around 70% of the Domestic Market in the
pharmaceutical, beverage, processed food, cosmetic and liquor sectors covering industry
majors like, Coca-Cola, Dabur, GlaxoWellcome, Nestle, Pepsi, Reckitt Benckiser (India)
Ltd., Smithkline Beecham, UB Group etc. Exports to South East, Middle East, Africa and
First World Countries in Europe & North America.
Its spirit to ascend newer parameters remains as insatiable as ever. The days ahead are
gleaming with promise. With modernization, upgradation and foresight to meet the
emerging and more distinctive demands of the customers, the Group is all set for
unprecedented achievements. With projected planned investment of Rs.3000 million in the
next three years. Touching life in more ways than one and in total tune with the harmony of
nature. In order to keep pace with changing technology and demands, the Group has
acquired the Glass Division of L & T at Nashik in October 2005, having one furnace of 320
TPD melting capacity. HNGIL has also entered into a scheme of amalgamation with Ace
Glass Containers (ACE) which scheme has been sanctioned by the Hon'ble High Courts of
Kolkata and Delhi. Post amalgamation HNGIL's un-audited turnover as on 31.03.2008
stands at a figure more than Rs. 1100 crore.

Products Summary
Our Products
Beverages
Cosmetics
Pharmaceuticals
Liquor

Processed Food

19

Machines and Warehouses images

IS machine

Lab equipment

Lab equipment

On line inspection

On line inspection

Packing

Power Generation

Power Generation

wherehouse

On line inspection

Plant overview

Warehouse

20

ORGANIZATIONAL CHART

21

LOCATION OF THE COMPANY

The picturesque surroundings against the backdrop of Himalayas on side and the shivalik hill
on others, the healthy river Ganga flanking the area abundant supply of pure and cool water,
coupled with the low dust contained and negligible bacterial count of the atmosphere makes
the site on ideal one for the manufacturing and finishing of the bottles.
This plan is 222 km from Delhi. It is located at Haridwar- Rishikesh road near I.D.P.L. This
is about 6 km from Rishikesh & 17 km from Haridwar. In India, except Rishikesh unit ACE
Glass Container (I) Ltd. has 2 more units that are Pune and Pondicherry.
Organizational Set Up Of Hindusthan National Glass and Industries Limited Glass
Container Limited
In the functioning of any organization, the role of human being is an important factor.
According to the size of an industrial unit, the workforce is placed into different position.
Their areas of responsibilities and accountabilities and the channels of communication are
defined and recorded for display so that everyone in the organization understands the clarity
regarding horizontal & vertical communication. This clarity else the way to whom help in
carrying out the respective function.
In Hindustan National Glass And Industries Ltd. Rishikesh, whole activity is under the
control of chief General Manager, who has Deputy General manager under him and then we
have horizontal line of authorities like production manager, commercial manager, accounts
manager, design & workshop manager, sales & purchase manager, personnel manager,
quality control manager, chief glass technologist, chief engineer & many more also.

IMPORTANT DEPARTMENT AND

DESIGNATION

Department

Designation

Plant Head
Production Department
Quality Assurance Department
Finance Department
Personnel & Administration
Purchase Department
Sales/Warehouse & Stores Department
Batch House &,Furnace & Cullet Manager

Vice President
Dy.General Manager
Dy.General Manager
Manager
Sr. Manager-HR
Asstt.General Manager
Sr.Commercial Manager
Senior Manager Glass

22

Raw Material Used & Its Sources

Raw Materials required in the organization are ore obtained from various
mines & other places or areas: Silica sand (mineral) former material (main agent) >
SIO2 from Allahabad, Ghaziabad, Faridabad and jaipur.
Soda ash (chemical)-flux material to lower down melting >
Al2O3, Fe2O3 from Jaipur and other places also.
Lime stone + dolomite (mineral): both are used as stabilizers (stability)>
Cao+ MgO from Jaipur & Dehradun.
Feldspar used for durability>Na, K20 from Jaipur;
Fine Chemicals-De->Selenium from special markets; and

23

BUSINESS STANDARD
A Name To Reckon With
HNGIL the largest and most prolific producer of glass containers, operating at present
10 furnaces at five locations (Rishra, Bhahadurgarh, Pondicherry, Nasik, & Rishikesh) and
production lines. In addition HNG has acquired a glass container manufacturing unit of M/S
Haryana Sheet Glass Limited at Neemrana, Rajasthan. A fully integrated group having its
own foundry for casting, well equipped workshop for moulds and spare parts captive power
plants and quarries for sand with fleet for finished goods movement has given competitive
advantage to its customers.

A Market Leader
In the 5ml 3200 ml segment, HNG Group is the undisputed market leader catering to
70% of the Domestic Market in the pharmaceutical, beverage, processed food, cosmetic and
liquor sectors covering industry majors like, coca-cola Dabur, Glaxo Smith Kline Beecham,
Nestle, Pepsi, Reckitt Benckiser (India) Ltd., Smith Kline Beecham UB Group etc. Exports
to south east, Middle East, Africa and First world countries on Europe & North America.

On Super Fast Growth Track

Its spirit to ascend newer parameters remains as insatiable as ever. The days ahead are
gleaming with promise. With modernizations, up gradation and foresight to meet the
emerging and more distinctive demands of the customers, the group is all set for
unprecedented achievements. With projected planned investment of rs.3000 million in the
next three years. Touching life in more ways than one and in total tune with the harmony of
nature.

24

Milestones
In order to keep with changing technology and demands , the group has acquired the glass
division of L & T at Nasik in October 2005, having one furnace of 320 TPD melting capacity
. HNGIL has also entered into a scheme of amalgamation with ACE GLASS CONTAINERS
(ACE) which scheme has been sanctioned by the Honorable High Courts of Kolkata and
Delhi. Post amalgamation HNGILs un-audited turnover as on 31.03.2008 stands at a figure
more than Rs. 1100 crore.

Rishikesh

2 Furnaces; Combined melting

capacity of 340 MT per day
Furnace II used for manufacturing of
Green glass.
6 Lines of Glass making IS Machines
Off-site printing facility with 3
decorating lines

25

Board of Directors of Hindustan National Glass and

Industries Limited

Shri C.K. Somany

Shri Sanjay Somany
Shri Mukul Somany
Shri Bhart Somany

Chairman
Managing Director
Joint Managing Director
Head of Director

26

MAIN CLIENTS OF THE COMPANY

27

ETC

WELFARE ACTIVITIES

HNG Industries limited provides various welfare facilities for the employees which are
enumerated as follows:
Provide uniform and shoes to the employees according to their department as per the
term of general agreement.
Provide PPEs to the employees.
Provide Welfare facilities.
Provide canteen and mess facility.
Provide medical coverage to the employees.
Club facility.
Providing ambulance and first aid facility.
Time to time various awards and rewards given to employees.

28

SWOT ANALYSIS OF THE COMPANY

Every organization has some strength, weakness, opportunities and threats:
Hindusthan National Glass And Industries Limited has some strength,
weakness, opportunities and threats. These are follows.

STRENGTHS

The company is strong and well established company;

The company is customer oriented company;

It exists From 30 years;

Company produces good quality of glass bottles;

It has dynamic and forward looking management;

Up gradation & modernization of existing machine resulted in higher

speed & efficiencies;

Company has attained ISO-9001 certificate for quality; and

Goodwill in the eyes of public.

WEAKNESS

29

At present the factory business strategies are not driven by core

competency;
Absence of long terms planning;
Absence of raw material near the factory place;
Locus of control is absent;
Less space & less number of godowns;
Financial weakness (lack of working capital);
Overstaffing; and
Lack of good marketing strategies.

OPPORTUNITIES

Suitable glass factory norms of government;

Increase in demand in existing line of business; and

THREATS

Emergence of new competitive pressure example L&T ;

Due to the introduction of plastic & disposable cold drinks & beer
bottles, glass product demand somewhat decreases;

Companies based on single product (bottles) only; and

Import of finished product to India due to less government
regulation.

30

SAFETY MEASURES
HNG Industries Limited lays utmost care towards health and safety of all
personnel. Central safety committee at the apex level and the department safety
committee at the shop floor are formed to review and monitor the safety activity.
Training on safety, fire fighting is given to all level of employees at the regular
intervals. The company is generally providing Personal Productive Equipments
like helmets, ear plugs, safety shoes, goggles etc. to their employees.
Employees are working in Batch Mixing/Furnace Area are provided 160 gms
Coconut oil per month and 100 gms Gur per day.

31

HNGs policy
Export and import policy:
Hindustan National Glass And Industries Limited exports their glass products to South East,
Middle East, and Africa & First Word Countries in Europe &North America. It follows the
EXIM Policy which has some principal objects:
To accelerate the countrys transition to a globally vibrant economy with a view to drives
maximum benefit from expanding global market opportunities;
To stimulated sustained economic growth by providing access to essential raw materials,
components, consumable and capital goods required for augmented production.
a)

To enhance the technological strength and efficiency of Indian industry

and services, there by improving their competitive strength while
generating new employment opportunities and encourage the attainment
of internationally accepted standard of quality; and

b)

To provide consumer with good quality product at reasonable price.

32

PURCHASE POLICY

The purchase policy of the HNG Industries Limited includes the following :
a) Company maintains the goodwill of approval vendors.
b) Purchase preference is given to those who have adopted internationally known quality
management system.
c) There are continuous checks on inventory levels so as to avoid the situation of over
stocks.
d) Purchases are done keeping the quality aspect in view.
The company aims at producing the higher quality of glass to satisfy his customers. This is
achieved by :
Adoption and implement of quality utilization of requirement of ISO: 9001.
Continuous upgradation of technology for optimum utilization of resources and
manufacturing products in cost effective manner.
Imbibing the culture of continuous quality improvement through motivation and plant
training of all employees.
Specimen of various standardizes forms being used in this company for carrying out the
various functions of purchase department as describe is enclosed at the end.

33

SALES POLICY
The sales policy of HNG Industries Limited includes the following:
a) Company maintains the goodwill of all the customers.
b) Sales preference is given to those who have adopted internationally known quality
management system.
c) There are continuous checks on inventory levels so as to avoid the situation of
overstocks.
d) Sales are done keeping the quality aspects in view.

34

QUALITY ASSURANCE AND QUALITY CONTROL IN

BOTTLE FORMING
In Quality Assurance,

Dimensional:
Performance;
Weight; and
Capacity.

In Quality Control

Annealing (Temperature Setting) & Monitoring;

Lehr Speed Adjustments;
Online Inspection (Sorting);
Lehr End Cavity(Mould) Inspection by Lehr checkers;
Lot Sampling;
Weight & Capacity;
Pressure Testing;
Thermal Shock Testing;
Bottles Dimensions Checking; AND
Resorting.

35

QM Overview at HNG
Process Control <--------------------------> Product Control

Forming Process
(At I.S. Machines)

Final QC

Quality Assurance

36

Glass (Green/flint) Manufacture of container

The manufacture of glass is based on utilization of the most widely occurring natural raw
materials. After oxygen, silicon and aluminium are the most widely represented elements in
the earth crust. The minerals composed of these elements e.g. (quartz, silicate, alumina
silicate) Also dolomite the essential raw material for the glass industries. The Manufacture
silicate were from these and some other raw material belong to The technology of silicate. In
the sense of the term glass is an inorganic product of fusion which has been cooled to a rigid
Condition without crystallization. Melting is in fact the large scale industrial method of glass
making.
The main operations in making a soda lime glass (green /flint glass).
A.
B.
C.
D.
E.

Batch preparation.
Melting.
Forming.
Annealing.
Quality checking.

%) of raw materials needed for manufacturing of;

37

A. For green glass;i. Sand (amber) (70-72%).

ii. Soda ash (10-15%).
iii. Lime stone (8-9%).
iv. Dolomite (1-2%).
v. Feldspar (3-4%).
vi. Sodium sulphate (0.2-0.3%)
vii. Chromite (15-18%).
viii. Charcoal (0.2-0.3%).
ix. Cullet (40-50%

B. For flint glass;i.

Sand (flint) (70-72%).
ii.
Soda ash (13-14%).
iii.
Lime stone (9-10%).
iv.
Dolomite (3-4%).
v.
Feldspar (4-5%).
vi.
Sodium sulphate (0.3-0.4%).
vii.
Hematite (0.002%).
viii.
Charcoal (0.001-0.002%).
ix.
Cullet (40-50%).

How bottles are made

The entire process of bottle making is almost fully automated. An automated
feeder separates a stream of molten glass into individual gobs. These are then
dropped through tubes in a moving track. The gob is shaped into what looks like
a short bottle with thick walls and is called a person. The person is transferred to
a final mould made of iron, which moves up and clamps around the glass. Air is
blown into the glass till it acquires the final shape of the mould. This procedure
involving expansion is called blowing. The bottle is then released from the mould
and annealed.

38

Bottle Making (Moulding Process)

Annealing is done by reheating the glass and gradually cooling it. Such a process removes
the stresses and strains in the glass after shaping. This is an important step and if not done
may cause the glass to shatter as a result of the build-up of tension caused by uneven
cooling. After the bottles have cooled to room temperature, they are inspected and finally
packaged.
Plastic bottles may be made from polyethylene, polypropylene or polyvinyl chloride. Large
cold drink bottles are made of polyethylene terephalate (PET). These bottles are designed in
such a way that the gases used to carbonate the soft drinks are unable to escape.
There are three different methods used for processing plastic bottles extrusion blow
moulding (in which the parison is tube shaped), injection blow moulding (in which the
parison is prepared by injecting molten plastic through a small hole) and injection stretch

39

blow moulding (in which the plastic is blown into the mould while it is simultaneously being
stretched by a metal rod).

ISO AWARENESS

Standards

System

Significance

40

ISO 9001:2000

Quality Management
System (QMS)

System to ensure quality objectives

for the process in totality to achieve
customer satisfaction in through
continual ; improvements in the
process & having proper
methodology to assess & measure
the results .

ISO 14001

Environmental
Management System
(EMS)

System co-related with QMS ; to

measure & controls the effects of
the process , its products &
wastages on the environment ; with
a view to conserve & preserve
energy & environment .

ISO 18001

Occupational Health &

Safety Assessment Series
(OAHSAS)

Safety system co- related with QMS

; to ensure health & safety
conditions in the process & its
products which calls for proper
working conditions for everyone
involved in the process .

ISO 22000

Hazard Analysis of
Critical Control Points
(HACCP)

System co- related with QMS ; to

detect & control critical points in
the process & sub Processes and
establish a standard to ensure its
prevention with a view of complete
safety .

MANUFACTURING PROCESS OF THE GLASS

Process:
Modern glass container factories are broadly divided into three parts: the batch house, the
hot end and the cold end. The batch house is concerned with raw materials. In the hot end
are furnaces, machines that produce the containers (forming machines) and annealing
ovens. In the cold end there are the inspection and packaging equipment.

41

Batch house
The batch house holds the raw materials for glass, primarily sand, soda ash, limestone,
feldspar (as well as others). These materials are received (typically by truck or rail
transport) and elevated into storage silos. From the silos they are weighed out into a batch
of several tones, using common glass batch calculation procedures. The batch is mixed
and sent to silos over the furnace.

Hot end
The common viscosity fix points, applicable to large-scale glass production and
experimental glass melting in the laboratory T

Furnace
The hot end of a glassworks is where the molten glass is formed into containers,
beginning when the batch is fed at a slow controlled rate into the furnace. The furnaces
are natural gas or fuel oil fired and operates at temperatures up to 1675C. The
temperature is limited by the quality of the furnace superstructure material and by the
glass composition. Glass furnaces typically operate an energy recovery scheme known as
regeneration. The hot exhaust gas flow back over one of two piles of loosely packed
bricks, called regenerators. These bricks become hot and every 20-30 minutes the flow of
the combustion system is changed over so that the combustion air, which is mixed with
the gas, is drawn through the heated bricks, and the combustion exhaust flows through
the other pile of bricks. The batch melts inside the furnace which is maintained as a pool
of molten glass, perhaps 1200mm deep by 50 to 150 m. The molten glass flows from a
sub ducted channel known as the furnace throat into the refiner and fore hearth channels.
These channels, 1200mm wide and 400-150mm deep transport the glass to the glass
bottle forming machines. These channels cool the glass very precisely so that the glass at
the forming machine is of a uniform and exact temperature.

Forming process
There are currently two primary methods of making a glass container - the blow and blow
method and the press and blow method. In all cases a stream of molten glass at its plastic
temperature (1050C-1200C) is cut by a shearing blade to form a cylinder of glass called
a gob. Both of the processes start with this gob falling by gravity and guided by troughs
and chutes into the blank moulds. In the blow and blow process, the glass first is blown
from below into the blank moulds to create a parison or pre-container. This parison is
then flipped over into a final mould, where a final blow blows the glass out in to the
mould to make the final container shape. In the case of press and blow, the parison is
formed by a metal plunger which pushes the glass out into the blank mould. The process

42

then continues as before, with the parison being transferred to the mould, and the glass
being blown out into the mould.

Forming machines
The forming machines hold and move the parts that form the container. Generally
powered by compressed air, the mechanisms are timed to coordinate the movement of all
these parts so that containers are made.
The most widely used forming machine arrangement is the individual section machine
(or IS machine), invented in 1903 by Michael J Owens in Illinois. This machine has a
bank of 5-16 identical sections, each of which contains one complete set of mechanisms
to make containers. The sections are in a row, and the gobs feed into each section via a
moving chute, called the gob distributor. Sections make either one, two, three or four
containers simultaneously. (Referred to as single, double, triple and quad gob). In the
case of multiple gobs, the shears cut the gobs simultaneously, and they fall into the blank
moulds in parallel.

Internal treatment
After the forming process, some containersparticularly those intended for alcoholic
spiritsundergo a treatment to improve the chemical resistance of the inside, called
internal treatment or dealkalization. This is usually accomplished through the injection of
a sulfur- or fluorine-containing gas mixture into bottles at high temperatures. The gas is
typically delivered to the container either in the air used in the forming process (that is,
during the final blow of the container), or through a nozzle directing a stream of the gas
into the mouth of the bottle after forming. The treatment renders the container more
resistant to alkali extraction, which can cause increases in product pH, and in some cases
container degradation.

Annealing
As glass cools it shrinks and solidifies. Uneven cooling causes weak glass due to stress.
Even cooling is achieved by annealing. An annealing oven (known in the industry as a
Lehr) heats the container to about 580C then cools it, depending on the glass thickness,
over a 20 60 minute period.

Cold end
The role of the cold end is to inspect the containers for defects, package the containers
for shipment and label the containers.

43

Inspection equipment
Glass containers are 100% inspected; every container is inspected. Automatic machines
inspect for a variety of faults. Typical faults include small cracks in the glass called
checks, foreign inclusions called stones, bubbles in the glass called blisters and
excessively thin walls. In addition to rejecting faulty containers, inspection equipment
gathers statistical information and relays it to the forming machine operators in the hot
end. Computer systems collect fault information to the mould that produced the
container. This is done by reading the mould number on the container, which is encoded
(as a numeral or a binary code of dots), on the container by the mould that made it.
Operators carry out a range of checks manually on samples of containers, usually visual
and dimensional checks.

Secondary processing
Sometimes container factories will offer services such as labeling. Several labeling
technologies are available. Unique to glass is the Applied Ceramic Labeling process
(ACL). This is screen-printing of the decoration onto the container with vitreous enamel
paint, which is then baked on. An example of this is the old Coca-Cola bottle. The
Absolute Bottles have various added services such as: Etching (Absolute Citron) Coating
(Absolute Raspberry/Ruby Red) and Applied Ceramic Labeling (Absolute
Blue/Pears/Red/Black)

Packaging
Glass containers are packaged in various ways. Popular in Europe are bulk pallets with
between 1000 and 4000 containers each. This is carried out by automatic machines
(palletisers) which arrange and stack containers separated by layer sheets. Other
possibilities include boxes and even hand sewn sacks. Once packed the new "stock units"
are labeled and warehoused.

DATA ANALYSIS AND INTERPRETATION

1.

The basic objective of performance appraisal?

44

si.no.
1
2
3

description

no. of respondents

fully
partially
No
total

38
12
50

percentage
76
24
100

Interpretation:
This analysis abdicates that majority of employee fully understand the basic
objectives performance appraisal and only 24% of respondents partially understand
the objective of performance appraisal.

2. Your performance is appraised as-

si.no.
1

Description
Individually

no. of respondents
40

percentage
80%

45
2

in team

Both
Total

10

20%

50

100%

Interpretation:
The analysis raveals that maximum no of employees performance is
appraised is individually and about 20% of respondents performance is appraised in
team.

3. Your performance is appraised by:

46

no. of
Respondents

percentage

si.no.

Description

manager
personal
deptt.specialist

42

84%

high level manager

total

8
50

16%
100%

2
3

Interpretation:
This answer shows that 84% of respondents performance is appraised by
manager while 16% of respondents performance is appraised by high level
managers.

The system of appraisal provides the real measurement of the

performance of the employee.

Si.No.

Description

No.of respondence Percentage

Correct

37

74%

partially correct

10

20%

47
3

Incorrect

6%

Total

50

100%

Interpretation:
The analysis shows that maximum number of employees thinks that appraisal
provides real measurement of performance while 20% think that it provides partial
measurement and 6% were of the opinion that it does not provide real measurement.

4. Appraisal system shows any scope of improvement in ones

performance.

si.no.
1
2
3

description
agreed
partially agreed
disagreed

no. of respondents
32
10
8

percentage
64
20
16

48

total

50

100

Interpretation:
The analysis reveals that 60% of respondents are of the openion that
performance appraisal shows scope of improvement in ones performance while 20%
of them are partially agreed and 16% of them think it does not help.

5. Performance appraisal helps you in:

si.no.
1
2
3

description
promotion
career planing
goal achivement
total

no. of respondents
39
7
4
50

percentage
78
14
8
100

49

Interpretation:
This analysis implies that 78% of respondent think that it helps in promotion, 14%
of them think that it helps in career planning and 8% of them think that it helps in goal
achievement.

6. Appraisal system helps you to know your progress in achiving the

set target.

50

si.no.
1
2
3

description
TRUE
partially true
FALSE
total

no. of respondents
42
8

Percentage
84
16

50

100

51

Interpretation:
This analysis indicates that maximum no. of employees think that appraisal system
helps in achieving the set target and 60% respondents think that this system is not much
helpful in achieving the set targets.

7. To what extent you are satisfied with the existent performance

appraisal system.

52

si.no.
1
2
3

description
to a great extent
to a little extent
to some extent
total

no. of respondents
35
5
10
50

Percentage
70
10
20
100

53

Interpretation:
This analysis implies that 70% of respondents are satisfied with the existing
performance appraisal to a great extent, 10% of them are satisfied to a little extent and 20%
of them are satisfied to some extent.

8. Time spend on your feedback.

54

si.no.
1
2
3

description
30 min
60 min
more then 60
min
total

no. of respondents
10
40

Percentage
20
80

50

100

55

Interpretation:
The above table and pie chart reveals that almost 80% employees in the sample
indicated that organization give almost one hour to take their appraisal. However it is
significant to note that 20% employees feels that they get less then half an hour to be
appraised.

9. Is the performance appraisal system is transparent.

56

si.no.
1
2

description
yes
no
total

no. of respondents
46
4
50

Percentage
92
8
100

57

Interpretation:
This analysis shows that 92% of respondents think that performance appraisal system
is transparent and 8% of them think that the system is not transparent.

10.
Do you feel that rewards are given according to your
performance?

si.no.
1
2

description
yes
no
total

no. of respondents
36
14
50

Percentage
72
28
100

58

si.no.
1
2

description
yes
no
FALSE
total

no. of respondents
41
9

Percentage
82
18

50

100

Interpretation:
As per the analysis 72% of respondents think that rewards are given according to their
performance while 28% of them think that rewards are not given to them according to their
performance.

11.

Is honest feedback given to you ?

59

Interpretation:
This analysis shows that majority of employees said that honest feedback is
given to them and 80% of them says that feedback given to them is not honest.

12.
If any development is required after performance appraisal then
proper training is given to you?

60

si.no.
1
2

description
yes
no
total

no. of respondents
42
8
50

Percentage
84
16
100

Interpretation:
This analysis shows that 84% of respondents says that training is given to them if any
development is required after performance analysis.

a. Do you think performance appraisal is necessary in the

organization?

61

si.no.
1
2

description
yes
no

no. of respondents
38
6

Percentage
76%
12%