A project report on

“Prabhat Chemiorganics Limited”

Subject:-
Strategies for MSMEs

Prepared by:
Vala Dilip Kalubhai(Finance)

[S.Y. M.B.A. SEM-III- section-B]

Submitted to

Dr. V.B. Patel

Department of Business and industrial Management

Veer Narmad South Gujarat University,

Surat.

Year: 2020-2021

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 TABLE OF CONTENT

1.INTRODUCTION ................................................................................3
1.1INTRODUCTION OF INDUSTRY................................................................................. 3
1.2 INTRODUCTION OF ORGANIZATION ....................................................................... 6
 History & Introduction............................................................................................. 6
 Branches and Location:-........................................................................................... 7
 Details of Owners and Employee............................................................................... 8
 Research Methodology ............................................................................................ 8
 Organization Structure:-........................................................................................... 9
 Plant Layout:-........................................................................................................10
 Mission:- ..............................................................................................................11
 Vision:- ................................................................................................................11
 Quality objective:-..................................................................................................11
 achievement of the company:-..................................................................................11
 Product Of The Company:-......................................................................................11
 Manufacturing process:-..........................................................................................16
 ORDER PROCESSING SYSTEM :- ........................................................................18
 Pricing Policy:-......................................................................................................19
 Work shift & Time Of PCL:- ...................................................................................19

2. Role of various Institutions in the company......................................... 20

3.Channels to Reach Buyers................................................................... 22
4. Service of Intermediaries ................................................................... 25
5. Conclusion & Recommendation ......................................................... 26

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1. INTRODUCTION
1.1INTRODUCTION OF INDUSTRY

The chemical industry comprises the companies that produce industrial chemicals. Central
to the modern world economy, it converts raw materials (oil, natural gas, air, water, metals,
and minerals) into more than 70,000 different products.

One of the first chemicals to be produced in large amounts through industrial processes
was sulfuric acid. In 1736, the pharmacist Joshua Ward developed a process for its
production that involved heating saltpeter, allowing the sulfur to oxidize and combine with
water. It was the first practical production of sulphuric acid on a large scale. John
Roebuckand Samuel Garbett were the first to establish a large-scale factory in Prestonpans,
Scotland, in 1749, which used leaden condensing chambers for the manufacture of su lfuric
acid.

In the early 18th century, cloth was bleached by treating it with stale urine or sour milk and
exposing it to sunlight for long periods of time, which created a severe bottleneck in
production. Sulfuric acid began to be used as a more efficient agent as well as lime by the
middle of the century, but it was the discovery of bleaching powder by Charles Tennant that
spurred the creation of the first great chemical industrial enterprise. His powder was made by
reacting chlorine with dry slaked lime and proved to be a cheap and successful product. He
opened a factory in St Rollox, north of Glasgow, and production went from just 52 tons in
1799 to almost 10,000 tons just five years later.

The Indian chemical industry is among the fastest growing Indian industries. Majority of the
chemicals produced in India comprise either upstream products or intermediates, which go
into a variety of manufacturing applications including fertilisers, pharmaceuticals, textiles
and plastics, agrochemicals, paints and dyes. Over the last one and a half decade, the Indian
chemical industry has transformed from manufacturing principle chemicals in a highly
regulated market to being a mature industry in a liberalised economy.

Indian Chemical Industry – Segments

The Indian chemical industry comprises a wide and varied spectrum of products that can be
sub-categorised into inorganic and organic chemicals, drugs and pharmaceuticals, plastics

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and petrochemicals, dyes and pigments, fine and speciality chemicals, pesticides and agro
chemicals, and fertilisers.

Indian Chemical Industry – Market Size

Post independence era has witnessed a significant contribution of Indian chemical industry to
both industrial and economic growth. Accounting for 18 per cent of the output of
manufacturing sector, the chemical industry forms 14-15 per cent of total exports and 8-9 per
cent of the total imports in India. Chemicals including petrochemicals sector contributes 3 per
cent to India’s GDP.

The Indian chemical industry, an important constituent of the Indian economy, is valued at
around US$ 35 billion. The industry, the 12th largest in production globally, and third largest
in Asia, is growing at an average rate of 12.5 per cent. Modernisation of existing technology
through foreign collaborations could further enhance growth.

India is a promising economy that holds potential to produce quality chemicals for world
consumers because of its diversified manufacturing base.

A network of 200 national laboratories and 1,300 Research and Development (R&D) centers
provide a strong base to the Indian chemical industry to become innovation-oriented. Shifting
focus towards R&D would also facilitate growing opportunities for R&D hubs and industry-
specific institutes.

In India a number of recent developments, such as establishment of intellectual property

rights (IPR), a rapidly growing middle-class population, emerging rural markets and
improvements in medical infrastructure have benefitted foreign manufacturers.

Indian Chemical Industry - Market Dynamics

Base Chemicals form the largest segment of the Indian Chemicals Industry (53 per cent),
followed by pharmaceuticals (24 per cent). While base chemicals are raw material oriented
and involve bulk manufacturing through standardised reactions, pharmaceuticals and
specialty chemicals are more R&D intensive, high value and low-volume. Petrochemicals
(Olefins and aromatics) are the major sub-segment of the base chemical industry. Olefins

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demand in India is anticipated to grow at 10 per cent per annum while aromatics demand is
expected to grow at 12 per cent per annum over 2010-2015.

Pharmaceuticals industry, forming the second largest segment with 24 per cent share, has
evolved over past 30 years from a marginal global player to becoming a world leader in the
production of high quality generic drugs. India exports pharmaceutical products to over 200
countries. Spurred by a strong domestic market and enhancing exports, the Indian
formulations market is expected to reach US$25.6 billion in 2013-14 from about US$ 12.6
billion in 2008-09.

End-use industries like automotives, electronics, packaged food, textiles et all are driving
Indian specialty chemicals industry. Strong domestic demand coupled with huge investments
by domestic and foreign players, is making the industry scale new heights. Many
international companies have pledged substantial investments in potential Indian markets
because of availability of vast pool of skilled and cheap labour and resources.

Biotechnology, accounting for 3 per cent of the total chemicals industry, is currently pegged
at US$ 4 billion. It is estimated to be worth around US$ 10 billion by 2015. New
opportunities across various sectors including bio-pharma, agri-biotechnology and industrial
biotechnology are expected to help the industry grow rapidly in the near future.

India is the fourth largest producer of agrochemicals in the world. The Indian Agrochemicals
Industry is expected to grow at 7.5 per cent, to reach over US$ 1.7 billion by 2012, driven by
various factors including need for food grain self-sufficiency and the momentum in
floriculture and horticulture sectors. India’s 60 per cent of agrochemicals’ production is
exported to countries like USA, UK, Russia, Europe, South Africa, Bangladesh, Malaysia etc.

Industry experts expect per capita consumption of plastics in India at 27 kilograms (kg) by
2020 from 8 kg in 2010; thereby aligning the consumption with global standards.

Indian Chemical Industry - Exports

During April-February 2011, exports of chemicals increased 22 per cent to US$ 7.5
billion.India has emerged as an exporter of dyes, exporting dyes to Germany, U.K., U.S.,

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Switzerland, Spain, Turkey, Singapore and Japan. The export of dyes is expected to increase
from US$ 1.5 billion in 2005–06 to US$ 2.6 billion in 2020.

Indian Chemical Industry – Road Ahead

Overall, the Indian chemical industry has attained a critical size and has the potential to build
a US$ 80 - 100 billion specialty chemical industry by 2020. Asia Pacific region now forms
nearly 42 per cent of the global market for chemicals, clearly making it the largest
contributor.

India has great opportunity to leverage on its talent pool and resources to attain a successful
position in specialty chemical landscape. In addition, India has been increasing its export of
chemical products in the recent years, so growth will also be a factor of buoyant exports.

Exchange Rate used as on June 30, 2011: 1 USD = 44.7330 INR

1.2 INTRODUCTION OF ORGANIZATION

 History & Introduction

Prabhat chemiorganics limited is one of the leading & oldest manufactures of synthetic in
India. Prabhat chemiorganics limited has been exporting their products to European market
since late 1992. The company is in 6030 sq.m in sachin GIDC. The company export 10%
total production of their product in Japan , US and Italy and They Export 50% of total
production In hyderabad City.

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 Company’s objective is to build confidence among our customers by regular and
reliable supplies at completive prices and constant quality, complying with their
technical requirements. Company’s purpose is to build a comprehensive range of
products for each specific market. Backed by team of technically qualified personals
with an attitude to excel, Company assures you of quality products and timely
delivery as scheduled. PCL is one of the leading exporter in our product category.
PCL abide to long lasting corporate relationship with the processors, buyers and
consumers of USA, Europe and Asia-Pacific countries.

 Branches and Location:-

REGISTERED OFFICE :

228, Sarita, Prabhat Ind. Estate,

W. E. Highway, Near Check Post,
Dahisar (E), MUMBAI - 400 068,
Maharashtra, INDIA

Tel : 91-22-4086 1600 Fax : 91-22-2896 5669

E-mail : sales@prabhatchem.com

MANUFACTURING UNIT :

Plot No. 2404/2406/2408, Road No. 24,

Phase I, G.I.D.C. Ind. Estate,
Sachin - 394 230, Dist. Surat,
Gujarat, INDIA

Tel : 91-261-239 7590 Fax : 91-261-239 7971

E-mail : factory@prabhatchem.com

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 BRANCH OFFICE :

501, Pent House,

Prabhat Enclave, Plot No. D-133,
Madhura Nagar, Yousufguda, Hyderabad - 500 038,
Andhra Pradesh, INDIA

Telefax : 91-40-2370 1600

E-mail : contact@prabhatchem.com

 Details of Owners and Employee

CURRENT POSITION NAME

In Charge Sales/Marketing/R&D Mr. Piyush Savani

In Charge Factory Mr. Ramesh N. Kakadiya

In Charge Purchase Account/Officer Mr. Kaushik Savani

Asst. R&D Mr. Dilip Borad

 Research Methodology
Title
Project Report on MSME with special reference to Prabhat Chemiorganics Limited

Objective
o To Know about Prabhat Chemiorganics Limited
o To identify Factor Affecting Sales
o To find the strategies that can be adopted by Prabhat Chemiorganics Limited

Data Collection
Secondary Data

Limitation of Study
1. As the study is based on secondary data, all the limitations applicable to secondary
data are inherent in this study.
2. In some cases, Data are historical in nature.

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 Organization Structure:-

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 Plant Layout:-

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 Mission:-
PCL company’s mission is to Expand their Business in Chemiorganics industry and
also Export their products in to major counties of world.

 Vision:-
PCL holds the promise of creating extraordinary value for customers. It is the
constant focus on consistent quality products and systems that has enabled PCL to
provide the guarantee of reliability. PCL well equipped laboratory ensures adherence
to the most stringent analytical compliance to international standards.

 Quality objective:-
PCL holds the promise of creating extraordinary value for customers. It is the
constant focus on consistent quality products and systems that has enabled PCL to
provide the guarantee of reliability. PCL well equipped laboratory ensures adherence
to the most stringent analytical compliance to international standards. In-process
quality checks during manufacturing and independent quality assurance further
enhance PCL quality policy.

 achievement of the company:-

1) GUJARAT GAS SAFETY AWARD(2010)
2) Appreciate award By Ami Organics Ltd Which is come on 2nd place in
MSME in all over india.

 Product Of The Company:-

PRODUCT NAMES CAS No. STRUCTURE

Bromobenzene 108-86-1

m-Bromo Anisole
1-Bromo-3-methoxybenzene 2398-37-0
3-Bromo Anisole

m-Chloro Anisole
1-Chloro-3-methoxybenzene 2845-89-8
3-Chloro Anisole

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o-Chlorobromobenzene
1-Bromo-2-chlorobenzene 694-80-4
2-Chlorobromobenzene

p-Chlorobromobenzene
1-Bromo-4-chlorobenzene 106-39-8
4-Chlorobromobenzene

o-Dibromobenzene
583-53-9
1,2-Dibromobenzene

m-Dibromobenzene
108-36-1
1,3-Dibromobenzene

p-Dibromobenzene
106-37-6
1,4-Dibromobenzene

o-Bromotoluene
2-Bromotoluene 95-46-5
1-Bromo-2-Methylbenzene

m-Bromotoluene
3-Bromotoluene 591-17-3
1-Bromo-3-Methylbenzene

p-Bromotoluene
4-Bromotoluene 106-38-7
1-Bromo-4-Methylbenzene

2-Bromo Benzoic Acid

88-65-3
o-Bromo Benzoic Acid

3-Bromo Benzoic Acid

585-76-2
m-Bromo Benzoic Acid

4-Bromo Benzoic Acid

586-76-5
p-Bromo Benzoic Acid

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3-Bromo Benzaldehyde
3132-99-8
m-Bromo Benzaldehyde

4-Bromo Nitrobenzene
1-Bromo-4-nitrobenzene
586-78-7
p-Bromonitrobenzene
p-nitrobromobenzene
1-Bromo 3-Chloro Propane
Trimethylene chlorobromide
109-70-6
Trimethylene bromochloride
I-BCP

2,5-Dibromo Nitrobenzene
3460-18-2
1,4-Dibromo-2-nitrobenzene

2,5-Dibromo Aniline 3638-73-1

Ethylene Dibromide
1,2-Dibromoethane 106-93-4
EDB

Ethyl Bromide
74-96-4
Bromoethane

Pyridine hydrobromide
18820-82-1
Pyridinium bromide

Isobutyl bromide
78-77-3
1-Bromo-2-methylpropane

1,3-Dibromopropane
109-64-8
Trimethylene dibromide

3-Bromophenol
591-20-8
m-Bromophenol

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4-Bromophenol
106-41-2
p-Bromophenol

(2-Bromoethyl)benzene
103-63-9
2-Phenylethyl bromide

1-Bromopropane
106-94-5
Propyl bromide

3-Bromoaniline
591-19-5
m-Bromoaniline

Benzyl bromide 100-39-0

4-Bromoaniline
106-40-1
p-Bromoaniline

4'-Bromopropiophenone 10342-83-3

4-Bromoacetophenone
99-90-1
1-Acetyl-4-bromobenzene

2-Bromo-3’-Chloro Propiophenone 34911-51-8

4-Bromobenzyl cyanide
16532-79-9
4-Bromophenylacetonitrile

4-Bromophenylacetic acid
1878-68-8
p-Bromophenylacetic acid

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4-Chlorobenzyl cyanide
140-53-4
4-Chlorophenylacetonitrile

1-Bromo-4-fluorobenzene
4-Bromofluorobenzene
460-00-4
p-Bromofluorobenzene
p-Fluorobromobenzene

2-Mercaptobenzimidazole
583-39-1
2-Benzimidazolethiol

3-Methoxythiophenol
3-Methoxybenzenethiol 15570-12-4
3-Mercaptoanisole

3-Bromo Nitrobenzene
1-Bromo-3-nitrobenzene
585-79-5
m-Bromonitrobenzene
m-nitrobromobenzene

4-Bromo Benzaldehyde
1122-91-4
p-Bromo Benzaldehyde

2-Bromopropionic acid 598-72-1

2-Bromobenzyl alcohol
18982-54-2
o-Bromobenzyl alcohol

Sodium 2-bromopropionate
56985-74-1
2-Bromopropanoic acid sodium salt

4-Bromo-N,N-dimethylaniline 586-77-6

2-Bromohexanoic acid
616-05-7
2-Bromocaproic acid

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 3-Dimethylamino-1-propyl chloride
hydrochloride
3-Chloro-N,N-dimethylpropylamine
5407-04-5
hydrochloride
N,N-Dimethyl(3-chloropropyl)amine
hydrochloride

 Manufacturing process:-
 Bromobenzene

2600 kg Benzene is charged in the jacketed glassline reactor with 4 kg Fe

Catalyst. 6 Bottle each having 3kg Br is fed and it is fed slowly upto 1500 kg in order to
maintain the pressure and prevent the formation of dibromobenzene . Between the process
sample is taken for QC. Br is added till we attain the desired composition. And then after
attaining desired composition we increase the temperature upto 10 C in oder to get HBr gas.

(Outer view of GLR) (Inner view of GLR)

 This HBr gas is dissolved in another vessel having water to form Liquid HBr.
Dissolution is allowed till specific gravity of liquid HBr becomes 1.48. Hence the
liquid HBr is produced as a byproduct.

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 Now the water is charged into the product stream and stirred it for 15 minutes. Then
separate the organic layer.

 Organic layer is send for distillation. Benzene recovered in distillation is recycled in

the reactor.

 And the final product bromobenzene is obtained.

Benzene

Bromobenzene

Bromine

Raw Material
1. Liquid TATA
Bromine Chemicals
(Porbandar)
2. Benzin Reliance
(Hazira)

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  ORDER PROCESSING SYSTEM :-
A. Stores and Production:
There are two-store department in PCL
1. Store department for raw material.

2. Store department for finished goods.

• For raw material

Whenever the production department needs something from the stores stock it
sends a person, who shows the quality demand and it is to be signed by the authorized
person of that department. The store in-change will provide the demanded stock and
make an entry in the bin card which shows the quality received and stored.

• For Finished material

When the production process is completed, the finished goods are sent to the
stores department, with the permission of production manager. The store in-charge
checks the production and then gives an entry in his register about the quality received
and stored.

B. Purchase and Production

Whenever the production department wants some goods to be purchased, it
sends an indent letter to purchase reference to store department for verification.
The store department verifies the stock position and later on by giving code
numbers, last purchase reference is sent to purchase department. After necessary
process, the purchase activity is done. When purchase procedure is completed, the
production department is informed and the purchased goods are sent by the stores
department.

C. Purchase and Dispatch

When the production of chemical products is completed they are sent to

the store department and whenever demand arises, these products are dispatched

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 from this department. The sale order id received through phone from distributors.
Accordingly the production and dispatch procedure take place.

D. Production and Engineering

The co-ordination between production and engineering department is very
important. Especially when any problem arises in any machine of production
department, the authorized person of that department informs the engineering department
on phone and the concerned engineer is sent for repairing the machine.

 Pricing Policy:-
Generally the pricing policy is not disclosed to anyone and so I was also not disclosed the
pricing policy. General information regarding to setting of price is it has decided By Directors
And Marketing department.

 Work shift & Time Of PCL:-

SHIFT TIME

1. General Shift 7a.m. to 7p.m.

2. First shift 7a.m. to 3p.m.

3. Second shift 3p.m. to 11p.m.

4. Third Shift 11p.m. to 7a.m.

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2. Role of various Institutions in the company
 CHEMEXCIL(Basic Chemicals, Cosmetics & Dyes Export Promotion Council)

Basic Chemicals, Cosmetics & Dyes Export Promotion Council popularly known as
CHEMEXCIL is set up by the Ministry of Commerce & Industry Government of India in the
year 1963 with the objective of promoting exports of the following items from India to
various countries abroad. These items have been grouped into IV separate Panels:

Panels:
Panel - I : Dyes and Dye Intermediates
Panel - II : Basic Inorganic & Organic Chemicals, including Agrochemicals
Panel - III : Cosmetics, Soaps, Toiletries & Essential Oils
Panel - IV : Speciality Chemicals, Lubricants And Castor oi

The Main roles of CHEMEXCIL are briefed below:-

To be an interface with the Industry and the Government of India to formulate Export-
oriented Policies and also to create a favourable environment to augment exports of the
above items from India.
Participates in international exhibitions being held abroad and invites overseas delegations
to India to promote our exports and establish long term strategic alliances
Assists its members in locating and pinpointing the source of their requirements. It also
helps to effect a smooth trade deal between buyers and sellers to offer a total service
package, completely free.
Is the Nodal agency appointed by the Ministry of Commerce & Industry for compliance of
REACH legislation of the European Union.
Participates in the Grievance Committee Meetings organized by the DGFT from time to
time and take up issues of the member-exporters connected with Customs, Central Excise,
Port Authorities, etc. and try to resolve the same
Participates in the Review Meetings as well as Task Force Meetings being organized by the
Ministry of Commerce & Industry from time to time to chalk out strategies for promotion of
exports of the items coming under the purview of the Council with presentations covering
suggestions/views being received from its members.
Prepares and submit to the Ministry of Commerce & Industry Annual Action P lan for
promotion of exports of the items coming under its purview, covering Budget Proposals for
participation in various international exhibitions/Buyer Seller Meets/ being held abroad as
well as in India for the benefit of its member-exporters.
Issues Recommendation letters addressed to various overseas Consulates/Embassies in India
for issue of Visas for the member-exporters for attending Exhibitions/delegations as well as
export/business promotion tours abroad.
Has been authorized by the Ministry of Commerce & Industry to issue Non-preferential

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Certificates of Origin to its member-exporters for export of their items to various countries
abroad on the condition that the said items are covered under our purview and are
manufactured in India.
Organises Export Award Function to felicitate outstanding exporters on their excellent
export performance.
In short, it is ‘one contact point’ for sourcing information on any of the above products from
India.

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3. Channels to Reach Buyers

PCL

Distributor

Dealer

Consumer

Direct selling Indirect selling

PCL PCL

Sales
Consumer
Representative

Consumer

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 Classification Of Products Or Goods:-

Production
department

Marketing department

Agent/Dealers

Consumer

The management of dispatching Chemical from production to dispatching chemical

to the distributors is done in the following three main stages, which are as follows.

1. Production to finished product system,

2. Marketing to finished product system,

3. Final product system to final dispatch.

Production to finished product system Steps:

• Goods are produced in production department as per the demand estimated by the
marketing department. (Demands are estimated yearly, monthly and weekly).
• Final products are sent to laboratory for testing.

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• If sample product is not satisfactory it is sent again back to the production.
• After testing the final product are packed in the Drums.
• These Drums are sent to the finished product system
• FPS checks the receipt of the goods sent by the production and collects the goods.
• Finally the No. of Drums is counted and this information is entered into the oracle system.

Steps :
• Marketing department takes the order from distributor on phone or E-mail.
• Marketing department can access the quantity of the goods which are available with the
finished product system.
• According to the order marketing department prepare the party wise bill.
• These bills are sent to finished product system.
• FPS sees the bill and loads the truck accordingly.
• After goods are dispatched the closing stock is counted and the information is entered into
the register by the FPS

Final product system to final dispatch Steps :

• FPS loads the truck according to the demand.
• Driver of the respective vehicle signs the bill of the goods that is loaded in his truck at the
gate of the Company.
• Again all the Drums are counted by the employee of Company at the gate.

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4. Service of Intermediaries

Distributors
Distributors function similarly to wholesalers in that they take ownership of the product, store
it, and sell it off at a profit to retailers or other intermediaries. However, the key difference is
that distributors ally themselves to complementary products. For example, distributors of
Coca Cola will not distribute Pepsi products, and vice versa. In this way, they can maintain a
closer relationship with their suppliers than wholesalers do.

Agents/Brokers
Agents or brokers are individuals or companies that act as an extension of the manufacturing
company. Their main job is to represent the producer to the final user in selling a product.
Thus, while they do not own the product directly, they take possession of the product in the
distribution process. They make their profits through fees or commissions.
•The main responsibilities of these intermediaries include
1. To provide security to the goods that it has been safely reached from seller to buyer.
2. To take care of the payment transactions to be initiated within the time period and no
late payments happen.
3. To solve any other dispute if arises in the parties included in the transaction.

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5. Conclusion & Recommendation

 The drop in sales in not only restricted to the company but the pandemic is affected
the entire industry.

 PCL is leading exporter of many countries of their product. They have to find New
customer in other countries to increase their sales in this pandemic.

 The company does not have any problems and issues in its internal environment;
rather it is affected by its external environment.

 So, the company should more focus on the payment collection side since sales figures
will get moving once things will become normal but money is the first priority for any
profit-oriented business unit.

 In order to give a boost to sales, the company should focus on finding new Customer.

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