4/19/2010

GRASIM WINTER INTERNSHIP PROJECT

INDUSTRI REPORT
ES AND
BIRLA
CELLULO
SE

REPOSITIONING BRAND, PLACING OF THE PRODUCT,

MARKET ANALYSIS & CONSUMER BEHAVIOUR
ANALYSIS OF KARA SKINCARE WIPES IN LUCKNOW |
SUBMITTED BY- DILEEP PANDEY
 ACKNOWLEDGEMENT

Nothing concrete can be achieved without an optimum combination of

inspiration and perspiration. No work can accomplished without taking
guidance of the import. It is not only the critiques for the ingenious
intellectual that helps transform a product into a quality product.

This work is synergist product of many minds. This began as a part a project
in my MBA program. I am grateful for the inspiration; encouragement
information and wisdom of many resource people who help me bring this
report into life.

I owe my sincere gratitude towards following personnel for their endeavors

guidance and sustain help extended to us during the course of this
work………………..
CERTIFICATE OF ORIGIN
 CHAPTER -1

EXECUTIVE SUMMARY
 EXECUTIVE SUMMARY:

A project means a task assigned by a company. My project topic comes

under Sales Management “Repositioning the Brand and studying the
consumer behaviour ” for Kara SkinCare wipes in Grasim Industries And
Birla Cellulose, Aditya Birla Group.

The objective of my research was to identify the various factors

responsible for the slow

progress of the product in the market. And to study the market for
KARA skincare

wipes and repositioning of the product launched by the company,

Also was

assigned to work on ways to highlight the product in the

corporate front

and give recommendations for the same.

By personally interviewing the customers and retailers of

almost all the markets

of Lucknow and Kanpur and also by secondary sources, I got the

whole of relevant data

according to the need of my project. My research is based on

Primary Data which was

collected by questionnaire method. So, in my training period

of 8 weeks, I

had prepared the questionnaire for the 200 consumer focusing

mainly on female

consumer and did survey by personally interviewing retailers in

Lucknow and Kanpur.
 CHAPTER-2

RESEARCH METHODOLOGY
 OBJECTIVE OF THE STUDY:

To study, the current situation of “Kara skincare wipes” in the markets

of Lucknow and
Kanpur from feb 2010 till the current date, how to place the product
keeping other brands
already established in the market in mind and how to promote the
brand.

RESEARCH DESIGN:

Research methodology is the arrangement of condition for collection

and analysis of data
in a manner that aims to combine the relevance to the research
purpose with economy in
procedure. Research is conceptual structure within which research is
conducted. It is way
to systematically study and solve the research problems.

The research can be viewed from the following parameters:

a) The research is exploratory in nature. Explorative studies valuable

means of finding out
‘what is happening’ to seek new insights to ask questions and to
access phenomenon in
a new light’. It also involves formulation of hypothesis.
The study involves finding out present data of demand for skincare
wipes and
prospective buyers and consumers of the skincare wipes.
 b) The research is also descriptive in nature. Descriptive study is an
extension of exploratory study. Research was done to find out
Market feasibility of Kara skincare wipes, so that we can make
strategies to establish our products in the market in a better way,
providing more awareness and place the product properly as well as
promote the brand and emerge as a competition in the market.

SAMPLE SIZE:

The data was collected through filling up the questionnaires, getting

data from retailers
and thorough market survey and market research study. The sample
size for the study
taken is 200.

SCOPE OF THE STUDY:

The data collected gives the clear picture of the product in the
markets of Lucknow and
kanpur, under study in this research, and gives the company an
indication about whether
it is feasible to move on with the persisting movements and marketing
strategies, and if
no, then how to go about it and make it worthwhile for the brand as
well as the
company and conclude on what should be the most favored deal.
Sampling Technique:

A close end questionnaire was constructed for my survey. A

questionnaire consisting
a set of questions was presented to respondents for their answers.

Data Collection:

Primary Data:
 The first hand information bearing on any research is the one which has
been
collected by the researcher. The data here is collected through:

· A structured questionnaire
· Personal interview of both retailer and consumers.

Secondary Data:

The data which has already been collected, complied and presented
earlier by any
agency may be used for purpose of investigation. The data collected
through: Various
publications in form of annual reports, various papers and journals
published from time to
time. Through internet and Books.

Limitations of the study:

• Research is based on the collection of data from both primary and

secondary sources.
There may be a possibility of biasness on the part of some
respondents, but very much
care has been taken to make this report unbiased.
• Some respondents might not give the correct information due to their
lack of interest and shortage of time.
• Time constraint.
• All the information, which is taken, is biased on primary and secondary
data that has its own limitations.
Note:

Secondary data is taken only for the purpose of “Industry profile and
Company profile”.
Rest of the data collected is primary and exclusively of the beholder of
this project.
 CHAPTER-3

INDUSTRY PROFILE

COMPANY PROFILE:
 The Aditya Birla Group is a multinational corporation based in
Mumbai, India and
Operations in 20 countries including Thailand, Laos, Indonesia,
Philippines, Egypt,
Canada, Australia, China, USA, UK, Germany, Hungary, Brazil, Italy,
France,
Luxembourg, Switzerland, Malaysia and Korea.

A US$ 24 billion conglomerate, with a market capitalization of US$

23 billion. Over 50
per cent of its revenues flow from its operations across the world.
The group is a major
player in all the industry sectors it operates in. The Group has been
adjudged the best
employer in India and among the top 20 in Asia by the Hewitt-
Economic Times and Wall
Street Journal Study 2007.

Globally the Aditya Birla Group is:

 A metals powerhouse, among the world’s most cost-efficient

aluminium and copper producers. Hindalco, from its fold, is a
Fortune 500 Company. It is also the largest aluminium rolling
company and one of the 3 biggest producers of primary
aluminium in Asia, with the largest single location copper smelter.

 No. 1 in viscose staple fibre.

 The 3rd largest producer of insulators.

 The 4th largest producer

of carbon black.
  The 11th largest cement producer globally and the 2nd largest in
India.

 Among the world’s top 15 BPO companies and among India’s top
3.

 Among the best energy efficient fertilisers plants.

In India:

 A premier branded garments player.

 The 2nd largest player in viscose filament yarn.

 The 2nd largest in the Chlor-alkali sector.

 Among the top 5 mobile telephony companies.

 A leading player in Life Insurance and Asset Management.

Businesses:

Aditya Birla is organized into various subsidiaries that operate

across different sectors.
Among these are viscose staple fibre, non-ferrous metals, cement,
viscose filament
yarn, branded apparel, carbon black, chemicals, Modern retail
(under the 'More.'
brand of Supermarkets, and also under the Trinethra, and Fabmall
brands until
recently), fertilizers, sponge iron, insulators, financial services,
telecom, BPO and IT
services. The Group consists of four main companies, which operate
in various industry
sectors through subsidiaries, joint ventures etc. These are Hindalco,
Grasim, Aditya
Birla Nuvo, and UltraTech Cement.

Non Ferrous Metals:

The groups non-ferrous metals are under Hindalco. It is a dominant

player in aluminum
and copper. Its manufacturing locations are primarily in India, and it
owns mines in
 Australia. On February 11, 2007, the company entered into an
agreement to acquire
The Canadian company Novelis for U$6 billion, making the combined
entity the world's
largest rolled-aluminium producer. On May
15, 2007, the acquisition was
completed

with Novelis shareholders receiving $44.93 per outstanding share of

common stock.
Hindalco has also recently acquired Alcan's stake in the Utkal
Alumina Project Joint
venture in Orissa ,India. Hindalco is a Fortune 500 company. Hindalco
makes alumina
chemicals, primary aluminum, rolled products, alloy wheels, roofing
sheets, wire rods,
Cast copper rods, copper cathodes and several other products. But
the project has faced
massive protests from locals. On 16 Dec 2001 three tribal people
were shot dead
because they were opposed to the project. Pro company police,
administration and
goons have cause massive repression in the area and gross human
rights violations.

Cement:

The Groups cement business is under both Grasim

and UltraTech
cement. Together the two companies under the
group account for a
substantial share of the cement market in India.
UltraTech cement
comprises the erstwhile cement business of L&T which was acquired
by the group. UltraTech announced an increase in sales by 17% and
Profit After Tax by 46% for the quarter ending September 30, 2007
Carbon Black:
The Group is the fourth largest manufacturer of
Carbon Black
worldwide. It operates out of facilities in Egypt,
Thailand, India
and China. It is a major supplier to several major
automobile tyre
manufacturers worldwide.

Textile Business:

The Aditya Birla Group is the world's largest player

in the Viscose
Staple Fiber industry. It operates out of India, Laos,
Thailand,
Malaysia and China. It owns the Birla Cellulose
brand. Apart from
viscose staple fiber, the
group also owns acrylic fiber
businesses
in Egypt and Thailand,
viscose filament yarn businesses
and

spinning mills at several locations all over India and South East Asia.
The group has pulp and plantation interests in Canada and has
recently invested in
plantations in Laos The Aditya Birla group is also a major player in
the branded
garments market in India. Its subsidiary, Madura Garments, is a
major producer of
textile fabric as well as the brand licensee of Louis Phillip, Van
Heusen and Allen Solly in
 India. It operates company owned retail outlets in several cities in
India. and now
planning to go to Pakistan as well.

Telecom Services:

Aditya Birla Group holds a 98.3% stake in Idea

Cellular, a leading
telecom operator in India. Idea Cellular started off
as a joint
venture with the group, AT&T and the Tata Group.
However the
stakes of the remaining partners was eventually acquired by the
group. After an Initial Public Offering on the Indian Stock Markets,
Idea Cellular now accounts for a third of the group's market
capitalization.

Other Businesses:

Apart from the above businesses, the group is a major player in industry
sectors like
Insulators, Fertilizers, IT (It owns PSI Data Systems Limited -
http://www.psidata.com),
ITeS (It owns Transworks and recently acquired the Canadian BPO Firm
Minacs),
Chemicals, Mining, Sponge Iron, Financial Services (A joint venture with
Sunlife) and
more recently, Retail.

Philanthropy:

The Group actively involves itself in several community development

initiatives -in
particular around its manufacturing locations . The group also supports
development
activities in areas like healthcare, education, sustainable livelihood,
infrastructure and
social causes. It works in 3700 villages, reaching out to 7 million people
annually through
the Aditya Birla Centre for Community Initiatives and Rural
Development.It runs 45
Schools and 18 Hospitals.
Birla Cellulose:

Birla Cellulose is the Aditya Birla Group's umbrella brand for its range of
cellulosic fibers. It
comprises versatile sub-brands; Birla Viscose, Birla Viscose Plus, Birla
Modal, and Birla Excel.
These brands offer a wide range of functional benefits such as soft feel,
high moisture
absorbency, bio degradability and comfort to the wearer. These fibers’
have multiple
applications including apparel, home textiles, dress material, knitwear,
nonwoven etc.

Fibre is one of the oldest businesses of the Aditya Birla Group that
commenced in 1954.
Birla Cellulose is a world leader in viscose staple fibre (VSF). Its production
is spread across
six countries, viz. Canada, Thailand, India, Indonesia, China and Laos. The
Group
independently fulfills India's entire VSF requirements. With a strong focus
on Research and
Development (R&D), the Group's R&D initiatives span the entire value
chain.

o Grasim Forest Research Institute — pulp to plantation research

 o Birla Research Institute for Applied Sciences — pulp to fibre
research

o Textile Research & Application Development Centre (TRADC) —

value chain from
fiber to garments / made

"Nature is the genesis of all that surrounds us, therefore, what other
than nature could
Be the origin of Birla Cellulose." Nature is the source of Birla
Cellulose and herein lies
The inspiration of their logo.

'Fibres from Nature' is the theme and the message: Leaves fall
and grow all over again,
they are a renewable resource of nature. Birla Cellulose is much like
these leaves and is
made from the same trees. The floating leaves symbolise the key
characteristics of Birla
Cellulose which are "comfort and lightness".

The vibrant green indicates that Birla Cellulose can take on vibrant
colours. The circle
signifies the cycle of nature and sustainability.

Nature remains the underlying theme for all the brands:

 Viscose is symbolized by the fresh green of summer

 Modal is symbolised by the burnt orange of autumn

 Excel is symbolised by the deep pink of spring

Birla Cellulose is:

 Natural - Soothing, comforting and elevating, Birla cellulose exhibits all
qualities of its source
nature.

Stylish - The drape and fall of Birla Cellulose with its natural inheritance is a
fashion statement.

Timeless - Just like nature, Birla Cellulose, is timeless and shall always
remain in vogue.

A fashion catalyst - A hint of Birla Cellulose in your wardrobe brings in the

glamour that
differentiates between mundane and fashionable

Versatile - Birla Cellulose combines the best properties of all fibres. It is

extremely blendable
hence enhancing the
realms of possibilities in clothing.

The characteristics:

Viscose is a 100 per cent natural fiber sourced from wood pulp, a
natural and
Renewable resource. Over the years it is being widely recognized
as a 'Fibre of choice'
by fabric producers.

Birla Cellulose - Fibers from Nature : Contributing to a green world

Preserving our environment has always been the inspiration behind

Birla Cellulose. It
Has successfully achieved this goal through the following initiatives:

Nurturing and building the green cover

Over a million plantlets are being produced from identified superior

clones for
 development of clonal orchards and plantations.

Land conservation
Efforts are on to encourage tree-farming practice on marginal, sub -
marginal and fallow
lands to the best advantage of the country. The yield of Viscose is
seven times that of
cotton for the same land area. Thus significantly contributing to
conservation of land,
and reaping maximum results from this limited resource.

Water conservation

Birla Cellulose Viscose is highly environment friendly. Every kilogram

of viscose
produced saves 200 buckets of water when compared to cotton. Thus
it preserves one
of the most valuable natural resources.

Zinc free product

Results in, manifold benefits through the value chain due to the
unique cross section.

Process friendliness

The process being followed for production is environment friendly

and green due to
The following advantages:

Non toxic effluent as a result of replacement of zinc by alum

Less solid waste generation due to reduced lime consumption
Reduced risk of fouling biological microorganism in reactor
SpunShades

This variant is environment friendly and results in conservation of

water throughout the
value chain. It is Okeo Tex certified, i.e. it meets the ecological
requirements set for
baby articles

Heavy metal free Viscose Plus:

Cross section differentiation

Despite its known toxicity, zinc has remained an indispensable input

to VSF
 Birla Cellulose is the only heavy metal / zinc free viscose with the
following green
properties:

Reduced effluent load

Improved fibre properties
Reduced production cost
Technological adaptability

Birla Cellulose : The perfect blend

Birla Cellulose fibres are the perfect blend with all types of fibres.
The benefits of using
Birla Cellulose as a blend are as below:

Birla Cellulose blends Benefits of

blending with Birla Cellulose
Birla Cellulose- cotton Makes cotton soft and
supple
Improves fabric
uniformity
Imparts sheen and
colour brilliance
Birla Cellulose- wool Improves wear
properties
Imparts softness
Enhances skin
friendliness
Adds shine and luster
Birla Cellulose-silk Maintains sheen of
silk
Improves comfort
Economical and
fashionable
Birla Cellulose-synthetics Improves comfort,
breathability,
lustre and skin
friendliness
Birla Cellulose-elastane Offers excellent
sheen, comfort
and stretch
Vision and values:

To be the world leader in man-made cellulosic fibre .

The company believes in value-creation for all its stakeholders,

through innovative
research and development initiatives which in-turn develop the
market for man-
made cellulosic fibres.

Companies and units:

An integrated outlook
Birla Cellulose is growing by leaps and bounds through both organic
and inorganic route.

The efforts towards integration and self sufficiency are as follows:

Backward integration into pulp and plantation

Captive power plant at all locations
In house manufacturing of all major chemicals and auxiliaries used in
VSF manufacturing.
In house engineering division that caters to new project
implementation

A global corporation rooted in Indian soil:

The Aditya Birla Group is India's first truly multinational corporation.

Global in vision,
rooted in values, the Group is driven by a performance ethic pegged
on value creation
for its multiple stakeholders. A US$ 24 billion conglomerate, with a
market capitalization
of US$ 31.5 billion and in the League of Fortune 500, it is anchored by
an extraordinary
force of 100,000 employees belonging to over 25 different
nationalities. Over 50 per cent
of its revenues flow from its operations across the world.

The Group's products and services offer distinctive customer solutions

worldwide. Its 85
 state-of-the-art manufacturing units and sectoral services span 20
countries — India,
Thailand, Laos, Indonesia, Philippines, Egypt, Canada, Australia, China,
USA, UK,Germany,
Hungary, Brazil, Italy, France, Luxembourg, Switzerland, Malayasia and
Korea.

A premium conglomerate, the Aditya Birla Group is a dominant player

in all of the
sectors in which it operates. Among these are viscose staple fibre,
metals, cement, viscose
filament yarn, branded apparel, carbon black, chemicals, fertilisers,
insulators, financial
services, telecom, BPO and IT services.

The Group has been adjudged the best employer in India and among
the top 20 in Asia by
the Hewitt-Economic Times and Wall Street Journal Study 2007.

Globally the group is:

· A metals powerhouse, among the world’s most cost-efficient

aluminium and copper
producers. Hindalco, from its fold, is a Fortune 500 company. It is also
the largest
aluminium rolling company and one of the three biggest producers of
primary aluminium
in Asia, with the largest single location copper smelter

 No.1 in viscose staple fiber

 The fourth largest producer of insulators

 The fourth largest producer of carbon black

  The eleventh largest cement producer and the second largest in
India

 Among the best energy efficient fertiliser plants

 Among the world's top 15 and India's top three BPO companies

In India, the Group holds a frontrunner position as:

 A premier branded garments playe

 The second largest player in viscose filament yarn

 The second largest in the chlor alkali sector

 Among the top five mobile

telephony players

 A leading player in life insurance and asset management

 Among the top three supermarket chains in the retail business

Beyond business

A value-based, caring corporate citizen, the Aditya Birla Group

inherently believes in
The trusteeship concept of management. Part of the Group's profits
are ploughed back
Into meaningful welfare-driven initiatives that make a qualitative
difference to the lives
Of marginalised people. These activities are carried out under the
aegis of the Aditya
Birla Centre for Community Initiatives and Rural Development, which
is spearheaded by
Mrs. Rajashree Birla.

Grasim Industries Limited:

 Grasim Industries Limited was incorporated in 1948; Grasim is the
largest exporter of
Viscose Rayon Fiber in the country, with exports to over 50 countries.
This, along with
Aditya Birla Nuvo can be considered as the flagship companies of the
AV Birla Group.
Grasim is headquartered in Nagda

Global footsteps

Indo-Thai Synthetics Company Ltd was incorporated in 1969 in Thailand,

started
operations in 1970, this was Aditya Birla Group’s first foray into
international venture.
Aditya Birla Group incorporated P.T. Elegant Textiles in 1973 in Indonesia.
Thai Rayon
incorporated in 1974, this was the second company in Thailand,
operating in Viscose
Rayon Staple Fiber. Century Textiles Co. Ltd. is taken over by Aditya Birla
Group in 1974;
this company is a weaving and dyeing plant manufacturing and exporting
variety of
synthetic fabrics. PT Sunrise Bumi Textiles incorporated in 1979, it
produces yarn
exported over 30 countries in 6 continents. P.T Indo Bharat Rayon
incorporated in 1980
produces Viscose Staple Fiber in Indonesia to become a dominant player
in the domestic

market as well as export markets. Thai Polyphosphates and Chemicals

was started in
1984 in Thailand to produce Sodium Phosphates, presently merged with
Thai Epoxy and
Allied Products Company Limited
(1992), Thai Sulphites and Chemicals
Company Limited
 (1995) to form Aditya Birla Chemicals Ltd. This company supplies to
sectors such as food,
textiles, electrical and electronics, composites, leather, plastics and
automobiles. PT Indo
Liberty Textiles was incorporated in 1995 to manufacture synthetic
spun yarn.

Focus of Growth Post MFA

In late 1990’s and later, the focus was the textile business because of
the end of Multi-
Fiber Arrangement (MFA) which opened a host of opportunities to
Indian exporters. In
this period, Aditya Birla Group took a three route strategy for growth.

o Rapidly enhance existing capacities

o Acquire and Build Garment brands for local and international
markets

Jayashree textiles was acquired by Aditya Birla Nuvo (formerly Indian

Rayon), is a
leading producer and exporter of yarns and fabrics to 50 countries
with a turnover of
$413 million. It acquired Madura Garments in 2000 to enter the
branded garments
business. Has brands such as Louis Philippe, Van Heusen, Peter
England, Allen Solly, SF
Jeans among others and also a global supplier to global buyers such
has Marks &
Spencer’s, Polo etc.
·
Vertical integration to get cost advantage

AV Cell Inc., a joint venture between Aditya Birla Group and Tembec,
Canada,
established operations in 1998 to produce softwood and hardwood pulp for
the purpose of
internal consumption among different units of the Group.
Together, Aditya Birla Group and Tembec, Canada have acquired AV
Nackawic Inc.,
which produces dissolving pulp, as a further step to integrate. Grasim
industries Ltd. is a
leading player in the Viscose Staple Fiber (VSP). The Aditya Birla Group's VSF
manufacturing plants straddle Thailand, Indonesia, India and China. At each
of these
locations, further capacity expansions are under way — in Thailand by 31
ktpa; in
Indonesia by 37 ktpa; in India by 64 ktpa and in China by 30 ktpa. These
brownfield
expansions, slated to be completed by the second quarter of 2008, will
further notch up
the Group's VSF production from 566 ktpa to 727 ktpa and entail an
investment close to
US$ 260 million.
Grasim wants to follow a strategy of backward integration, right from
plantation stage to
the final VSF stage. The Group's VSF business operates through its three
companies —
Grasim Industries in India, Thai Rayon Corporation in Thailand and Indo
Bharat Rayon
in Indonesia, which also oversees its Chinese operations at Birla Jingwei
Fibres, China.