Organisation Study Caress Beauty Care PVT - LTD

Organisation Study Caress Beauty
Care Pvt.Ltd
CHAPTER 1
INTRODUCTION
ABSTRACT
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Organisation study is identification of the working of a company. For the purpose of

organisation study I selected the company Caress Beauty Care Pvt. Limited Chennai. This is a
company in the Fast Moving Consumer Goods sector. It has been into the FMCG sector for the
last 12 years. So a project in this organisation provides a clear understanding about the
processing of sector to an extent.
In this project I cover the working of different departments in the organisation. Their
independent and interdependent working contributes success to the growth and development of
the company. Caress Beauty Care is a dynamic group company that manufactures high quality
range of hair and skin care products for Hindustan Unilever Limited, one of the leading players
in this sector.
The key strengths of this industry are transparency, quick responses and flexibility in
operations. This project was an opportunity for understanding and experiencing an organisation
and the trends in the market situation of a firm.
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INTRODUCTION
Meaning and definition of an organisation
According to Stephen P. Robbins, an organisation is “a consciously coordinated social unit,

composed of two or more people, which functions on a relatively continuous basis to achieve a
common goal or a set of goals”.
An organisation is a group of people who work together. A company, corporation, firm,

enterprise, or association, or part thereof, whether incorporated or not, public or private, that has
its own functions and administration are examples for business organisations.
Basically, an organisation is a group of people intentionally organized to accomplish an overall,

common goal or set of goals. Business organisations can range in size from two people to tens of
thousands.
There are several important aspects to consider about the goal of the business organisation.
These features are explicit (deliberate and recognized) or implicit (operating unrecognized,
"behind the scenes"). Ideally, these features are carefully considered and established, usually
during the strategic planning process.
Elements of an organisation
An organisation got both external as well as internal elements. External elements consist of the
business environment, technology, demographics, competitors, customers, suppliers, market
trends, economics, and regulations. The internal elements are core goals and values, people and
skills, business process, systems, strategy, culture and structure.
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Elements of organisation
Fig. 1.1 Elements of an organisation
Processes that Are Aligned With Achieving the Goals of an Organisation
Organisations have major subsystems, such as departments, programs, divisions, teams, etc.
Each of these subsystems has a way of doing things to, along with other sub systems; achieve the
overall goals of the organisation. Often, these systems and processes are defined by plans,
policies and procedures.
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How you interpret each of the above major parts of an organisation depends very much on your
values and your nature. People can view organisations as machines, organisms, families, groups,
etc.
Organisation as a System
It helps to think of organisations are systems. Simply put, a system is an organized collection of
parts that are highly integrated in order to accomplish an overall goal. The system has various
inputs which are processed to produce certain outputs, which together, accomplish the overall
goal desired by the organisation. There is ongoing feedback among these various parts to ensure
they remain aligned to accomplish the overall goal of the organisation. There are several classes
of systems, ranging from very simple frameworks all the way to social systems, which are the
most complex. Organisations are, of course, social systems.
Systems have inputs, processes, outputs and outcomes. To explain, inputs to the system include
resources such as raw materials, money, technologies and people. These inputs go through a
process where they're aligned, moved along and carefully coordinated, ultimately to achieve the
goals set for the system. Outputs are tangible results produced by processes in the system, such
as products or services for consumers. Another kind of result is outcomes, or benefits for
consumers, e.g., jobs for workers, enhanced quality of life for customers, etc. Systems can be the
entire organisation, or its departments, groups, processes, etc.
Feedback comes from, e.g., employees who carry out processes in the organisation,
customers/clients using the products and services, eta. Feedback also comes from the larger
environment of the organisation, e.g., influences from government, society, economics, and
technologies.
Each organisation has numerous subsystems, as well. Each subsystem has its own boundaries of
sorts, and includes various inputs, processes, outputs and outcomes geared to accomplish an
overall goal for the subsystem. Common examples of subsystems are departments, programs,
projects, teams, processes to produce products or services, etc. Organisations are made up of
people who are also systems of systems of systems and on it goes. Subsystems are organized in a
hierarchy needed to accomplish the overall goal of the overall system.
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The organisational system is defined by, e.g., its legal documents (articles of incorporation, by
laws, roles of officers, etc.), mission, goals and strategies, policies and procedures, operating
manuals, eta. The organisation is depicted by its organisational charts, job descriptions,
marketing materials, etc. The organisational system is also maintained or controlled by policies
and procedures, budgets, information management systems, quality management systems,
performance review systems, etc
CHAPTER 2
ORGANISATION AND
PROFILES
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2.1 INDUSTRY PROFILE
Fast Moving Consumer Goods industry, alternatively called as CPG (Consumer packaged goods)
industry primarily deals with the production, distribution and marketing of consumer packaged
goods. The Fast Moving Consumer Goods (FMCG) is those consumables which are normally
consumed by the consumers at a regular interval. Some of the prime activities of FMCG industry
are production, selling, marketing, financing, purchasing, etc. The industry also engaged in
operations, supply chain, production and general management
The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the
economy. A well-established distribution network, intense competition between the organized
and unorganized segments characterizes the sector. FMCG Sector is expected to grow by over
60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been
estimated that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores
in 2010. Hair care, household care, male grooming, female hygiene, and the chocolates and
confectionery categories are estimated to be the fastest growing segments. Though the sector
witnessed a slower growth in 2002-2004, it has been able to make a fine recovery since then.
FMCG Category and Products
Category Products
Household Care Fabric wash (laundry soaps and synthetic detergents); household
cleaners (dish/utensil cleaners, floor cleaners, toilet cleaners, air
fresheners, insecticides and mosquito repellents, metal polish and
furniture polish).
Food and Beverages Health beverages; soft drinks; staples/cereals; bakery products
(biscuits, bread, cakes); snack food; chocolates; ice cream; tea; coffee;
soft drinks; processed fruits, vegetables; dairy products; bottled water;
branded flour; branded rice; branded sugar; juices etc.
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Personal Care Oral care, hair care, skin care, personal wash (soaps); cosmetics and
toiletries; deodorants; perfumes; feminine hygiene; paper products
Growth Prospects
With the presence of 12.2% of the world population in the villages of India, the Indian rural
FMCG market is something no one can overlook. Increased focus on farm sector will boost rural
incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure
facilities will improve their supply chain. FMCG sector is also likely to benefit from growing
demand in the market. Because of the low per capita consumption for almost all the products in
the country, FMCG companies have immense possibilities for growth. And if the companies are
able to change the mindset of the consumers, i.e. if they are able to take the consumers to
branded products and offer new generation products, they would be able to generate higher
growth in the near future. It is expected that the rural income will rise in 2007, boosting
purchasing power in the countryside. However, the demand in urban areas would be the key
growth driver over the long term. Also, increase in the urban population, along with increase in
income levels and the availability of new categories, would help the urban areas maintain their
position in terms of consumption. At present, urban India accounts for 66% of total FMCG
consumption, with rural India accounting for the remaining 34%. However, rural India accounts
for more than 40% consumption in major FMCG categories such as personal care, fabric care,
and hot beverages. In urban areas, home and personal care category, including skin care,
household care and feminine hygiene, will keep growing at relatively attractive rates. Within the
foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth
categories in both rural and urban areas.
Indian Competitiveness and Comparison with the World Markets
The following factors make India a competitive player in FMCG sector.
 Availability of Raw Materials
Because of the diverse agro-climatic conditions in India, there is a large raw material
base suitable for food processing industries. India is the largest producer of livestock,
milk, sugarcane, coconut, spices, and cashew and is the second largest producer of rice,
wheat and fruits and vegetables. India also produces caustic soda and soda ash, which are
required for the production of soap and detergents. The availability of these raw materials
gives India the location advantage.
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 Labor Cost Comparison

Low labor cost gives India a competitive advantage. India’s labor cost is amongst the
lowest in the world, after China and Indonesia. Low labor cost gives the advantage of low
cost of production. Many MNC’s have established their plants in India to outsource for
domestic and export markets.
Fig. 2.1 Labor Cost Comparison

 Presence across value chain
Indian Companies have their presence across the value chain of FMCG sector, right from
the supply of raw materials to packaged goods in the food processing sector. This brings
India a more cost competitive advantage. For example, Amul supplies milk as well as
dairy products like cheese, butter, etc.
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2.2 COMPANY PROFILE
CLARION COSMETICS
When it comes to the manufacture of high quality personal care products and color cosmetics,
there is one name that leading organizations trust and rely on- Clarion Cosmetics.
Clarion is a leader in the manufacturing of cosmetics in India with an annual turn over of US$ 60
million. It all began as a small venture. Clarion the talcum manufacturing unit was established
in1993 by a professional team at Chennai in South India.
Over the past decade, the group has grown and diversified into manufacturing of various
cosmetic products. The range covers hair care, skin care, nail enamel, baby care and White
Petroleum Jelly Products. Apart from these, Clarion’s strategic diversification into the packaging
(tin containers) industry has helped widen the portfolio of products.
Behind Clarion’s rapidly growing basket of offerings are high quality standards and the
commitment to better the best. With a manufacturing facility for cosmetics with class100000
environment, Clarion has a fully equipped laboratory with advanced equipments, micro labs,
R&D labs and sachet, bottle, jar and tube filling lines conforming to GMP standard. Regular
quality and hygiene audits are conducted to maintain high standards of quality.
The group turnover in 1994 the first year of operations was about USD 220,000 and has since
grown to USD 44.5 Million in 2006. An ambitious expansion drive and diversification into new
growth areas will see Clarion cross USD 125 Million by the year 2010.
Built on a foundation of expertise
Clarion Cosmetics has been established by professionals with rich expertise in the manufacture
of cosmetics and personal care products. The Promoter’s in depth knowledge, wealth of
experience and deep routed commitment has seen Clarion grow form an enterprise with a single
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manufacturing unit to a dynamic group with five state-of-the-art cosmetic manufacturing

facilities across India.
Clarion takes pride in the fact that group is the largest private label manufacturer of personal care
products in India besides being the largest manufacturer of Nail Enamel in South Asia.
Handling Global Brands
With a vision to manufacture high quality products at zero environmental cost, Clarion’s
management work towards conforming to international standards in all products manufactured
and packaged. This delivery of superior quality products has won the trust of global giants like
Hindustan Unilever Limited, Sara Lee, Revlon, Yardley of London, Parfums Bleu, and Henkel
Spic India Ltd. Adherence to quality and high production standards has made them one of the
largest private label manufactures of India.
Clarion’s Clients
 Hindustan Unilever
 Godrej Sara Lee
 Modi Revlon
 Avon Beauty Products
 Shahanaz Hussain Group
 K K Modi Group
 Parfums Bleu
 ReAm GmbH
 Appolo Hospital Groups
Group of companies
1. Caress Beauty Care

2. Lotus Beauty Care
3. Cool Cosmetics
4. Fiabila India
5. Nikita Metal Containers
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CARESS BEAUTY CARE
The Clarion Group comprises of dynamic companies that manufacture high quality cosmetics
and personal care products by leveraging world class expertise at their state-of-the-art facilities.
Caress Beauty Care is another dynamic group company that manufactures high quality range of
hair and skin care products. Caress Beauty Care blends technological expertise with product
understanding to deliver high quality range of hair and skin care products to fulfill the stringent
requirement of brand owners like Hindustan Unilever Limited. A dynamic company, Caress is
equipped with ultra modern facilities and the latest machineries to meet the requirements of
India’s leading FMCG companies. Automation of operations such as cold cream jar capping
enables us to maximize productivity and maintain quality and produce 0.6 million units of cold
cream per day. Capacity expansion plans are on the anvil with a new, modern factory building
and enhanced facilities being part of the expansion drive.
Caress beauty Care covers an area of about 3400 square feet. The number of employees working
there is about 200 per day.
COMPANY STRENGTHS
Capability
Customers benefit from Caress Beauty Cares commercial and logistics expertise backed by
strong supply chain management capability.
Flexibility
With the flexibility to scale up operations, Caress delivers multi-product, multi-variant

manufacturing with a quick change over capability.
Cost and Variety
Caress Beauty Cares strong processes help achieve volume manufacturing at a competitive cost.
Customer Focus
Innovating through R & D to meet the current and expected needs of the customer is the priority
at Caress Beauty Care.
Quality
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A strong culture of compliance is visible at all levels. Continuous training and technology up
gradation programs supported by independent audit systems results in continuous process and
product improvements.
Caress is committed to product safety and quality evident through the implementation of GMP &
HACCP. Multilevel quality assurance processes and total productive maintenance (TPM) enable
100% first time acceptance.
Caress has the capability to manufacture products to meet BIS, EEC and CFTA norms.
PLANT CAPACITY
Shampoo – 18000 ton per year
Ponds Moisturizing Cold Cream – 1000 ton per year
SAFETY HEALTH ENVIRONMENT POLICY (SHE)
A focus on these three aspects forms the cornerstone of Caress’ path to success.
The organization promotes a culture of safety by ensuring the quality of its equipments and
facilities. More importantly, the health and competence of personnel is ensured through routine
medical check-ups for all the employees.
CORPORATE SOCIAL RESPONSIBILTY
Going Green
Caress Beauty Care believes in being responsible towards the environment and has made a heavy
investment of time and resources to protect the same. About 40% of the power used for the
manufacturing activities is generated using windmills.
Social Conscience
Other social activities include weekend classes organized by executive level employees for the
students in the vicinity of manufacturing centers. During calamities the company volunteers to
help villages surrounding the factory. Distribution of saris and dress materials to destitute people
in the area is an ongoing activity.
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LOTUS BEAUTY CARE
Lotus Beauty Care products is Clarion’s state of the art cosmetics manufacturing facility in
Haridwar (Uttarakhand).
In a smooth and seamless expansion, the annual installed capacity of this facility was recently
increased from 6000MT in 2004 to 25000MT in 2007. The enhanced volume meets the exclusive
demand of Hindustan Unilever Limited and was achieved without any interruption in ongoing
production activities.
The capacity is dedicated to Hindustan Unilever Limited and produces shampoos and Lakme
Lever’s premium range of hair-care and skin care products. Ponds and pears range of face
washes, Skin and Pore Care products, high end shampoos like Instant Bounce, Snap Shine and
color cosmetics like Perfecting Liquid Foundation and Souffle, are manufactured here.
Lotus is equipped with high speed packaging lines and handles varied packaging formats such as
sachets, tubes, plastic bottles and glass bottles in pack sizes ranging from 3.5ml to 400ml. Lotus
infrastructure is vast and this is being augmented continuously to maintain the standards on par
with contemporary international norms.
COOL COSMETICS
Cool Cosmetics manufactures Vaseline white Petroleum Jelly for Hindustan Unilever Limited.
The company has achieved amazing productivity and operating efficiency standards starting
from 50000 pieces per day in 2002 to 1.4 million pieces per day in 2008. Continuous plant level
R&D and automation have contributed to this record being achieved.
FIABILA INDIA
Fiabila India is a joint venture of Clarion Cosmetics set up by leveraging the expertise and
technical know-how of Fiabila France. A fast growing group company, Fiabila India
manufactures a wide range of Nail Care products including Base, Gel, Nail Enamel, Colour
Solution and Nail Care Products. Fiabila India’s bulk manufacturing capabilities for base and
shades, meets the requirements of leading names like Hindustan Lever Ltd, Avon Beauty
Products Pvt.Ltd, Oriflame, Modicare, Color bar, Revlon, Gala Of London, Amway, Biotique
and other brands.
Fiabila India’s state of art analytical laboratory enables it to monitor quality through stringent
test at various levels. The facilities are geared to offer range of more than 100000 shades of nail
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polish and related products. It is the second largest manufacturer of nail polish and related
products. Fiabila has the distinction of producing patented formulations and environment
friendly products.
CLARION FOODS
Clarion, a leader in the manufacture of cosmetics, extended its capabilities to other segments.
The fact that Clarion entered into the food segment shows its strength in the safety and hygiene
aspects of manufacturing.
Using state-of- the art manufacturing facilities, Clarion foods manufactures squash, a fruit
flavored beverage for a leading Indian FMCG company. The unit has an installed annual
capacity of 8000 MT. It is equipped with best in class equipment for manufacturing, bottle
washing, filling, and capping. The unit has also an ETP with RO filtration designed keeping in
mind present and future needs.
NIKITA METAL CONTAINERS
The Clarion Group tryst with packaging goes back to the time of inception when it set up a unit
in Gujarat for Aluminium Collapsible Tubes. The success of the unit gave the confidence and
expertise.
Nikita Containers forerunners in custom tin packaging and decorative tin containers. Quality,
Delivery, Service is their motto. Devising new ideas to solve your specialty needs gives
satisfaction and pride to the company. They have state-of-the-art machinery and to offer custom
tin packaging and decorative designer. They have high-speed printing and assembly lines apart
from solid fabrication infrastructure.
In a short span of 12 years, Nikita containers have built a reputation for excellent quality, lead
time, delivery and customized solutions in tin packaging and that, too, at best available prices
Nikita was founded in 1995- promoted by Mr. K N Lakshmanan, a science graduate and Mr.
Yogesh Korani, a chartered accountant. The combined industrial experience of the promoters
and their unflinching commitment to quality has given Nikita the cutting edge over competition
in terms of Customer trust. A valued possession that drives Nikita to greater heights year after
year.
In the intermediary years the packaging industry witnessed a total revolution where traditional
packaging material gave way to plastics. Steadfast in their belief that the characteristics of tin-
especially in areas of perfume and flavor retention-will overcome temporary hiccups, Nikita
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aggressively marketed the idea to customers and developed, over the years, a wide clientele with
varied end applications.
Today Nikita is on the threshold of a quantum leap both in technology and quantity. The new
state of the art factory near Chennai will, along with modernization of the existing facility at
Pondicherry which is set to get ISO certification, enhance Nikita’s capabilities in its ongoing
export initiative.
VISION
The vision of the company is to set new benchmarks in the manufacture of high quality
cosmetics and personal care products that will result in value for the customer.
MISSION
The mission of the company to deliver the benefits of innovation to the customer as a
manufacturer of high quality cosmetics products with a responsible approach to the environment.
MILESTONES
Yea Achievements
r
1993 Clarion Cosmetics set up in a record 41 days(commercial production)
1994 Enter into tin packaging.
1996 Clarion achieves record production 5.08 million pieces/month.
1997 Caress Beauty Care set up to manufacture high quality shampoos and creams.
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1999 Joint Venture established with Fiabila of France. Fiabila India is born.
2001 Cool cosmetics go on stream- Manufactures white petroleum jelly.
2003 Foray into retail- Franchise established for Lakme Lever’s Lakme beauty salons in
Chennai and Mumbai and Hindustan Unilever’s Ayush therapy centers in Chennai.
2004 Lotus Beauty Care commences production in Haridwar- group’s state of the art
cosmetics manufacturing facility.
2006 Caress touches the highest annual production of shampoo-13723 MT.
2007 New tin packaging unit near Chennai to go on stream.
2008 Lotus team has achieved a record of 512 tons than produced by any of the HUL 2p
factories in India.
2009 Lotus team has achieved the highest ever production that is 565 tons in stitch line.
PROMOTERS
Caress Beauty Care is a privately - held company promoted by Mr. K N Lakshmanan, a science
graduate and Mr. Yogesh Korani, a chartered accountant. The combined industrial experience of
the promoters and their unflinching commitment to quality has given the company the cutting
edge over competition in terms of Customer trust.
TOP MANAGEMENT
The top management consists of Managing Director, Director and the Executive Directors.
Caress Beauty Cares current board of directors consist of
o K.N Lakshmanan
o Raji Lakshmanan
o Vaishali Korani
o Zaveerbeen Korani
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The Board is ably assisted by a council of eminent professionals who provide guidance and
knowledge to the working directors as required.
2.3 PRODUCT PROFILE
Product/ services
Caress Beauty Care Private Limited manufactures high quality range of hair and skin care
products. Caress Beauty Care’s ultra modern facilities house the latest machinery that enables it
to fulfill the stringent requirement of brand owners like Hindustan Unilever Limited. These are
the products that are manufactured by the Caress Beauty Care.
1. Shampoo
 Sunsilk Shampoo (7ml, 4ml)
 Sunsilk Pink Shampoo (40ml)
 Clinic Plus Protein Shampoo (3.5ml, 4.5ml, 9ml)
 Lux Shampoo (8ml, 7ml, 4ml)
2. Ponds Moisturizing Cold Cream (PMCC)- 8gm
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CHAPTER 3
ANALYSIS OF
ORGANISATION STRUCTURE
AND FUNCTIONS
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3.1 PLANNING IN THE COMPANY
Planning is a process for accomplishing purpose. It is blue print of business growth and a road
map of development. It helps in deciding objectives both in quantitative and qualitative terms. It
is setting of goals on the basis of objectives and keeping in view the resources.
In Caress planning is done weekly. The factory receives the plan according to the capacity of the
factory. On every Tuesday HUL sent a plan to the store head and if he approves the plan, it was
given to the factory on every Thursday. Based on this plan they manufacture the products.
3.2 IMPORTANCE OF ORGANISATIONAL STRUCTURE
The importance of organizational structure is to provide order and accountability to an

organization. By creating specific job categories for specific task the efficiency of the Labor
needed to accomplish the task increases. It would not make sense to have your Accountants
repairing pumps at your facility while your Maintenance staff shipped out product. Dividing the
labor by function then adding employees to the organization by matching their skills with the
function needed is the way an organization can experience the highest level of efficiency.
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ORGANISATIONAL STRUCTURE
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3.3 FUNCTIONAL AREA ANALYSIS
According to the good vision of the Company and the modern managerial systems that the
Company follows in its organisational structure, it clarifies its all main departments and all the
sub-departments. The Company states the aims, objectives, activities, functions, and
responsibilities of each department so as to ensure clear and non-overlapping of the duties of the
various departments. This structure will positively be reflected in organisation and development
of work within the same department besides the development of work processes within the
Company in general.
The Caress Beauty Care is made up of ten functional Departments; each headed by a Manager
and segmented into Divisions.
The various departments of Caress are:
Production
Marketing
Finance
Human Resource
Purchase
Stores
Manufacturing
Safety
Maintenance
Logistics
The Procedures and Processes of each department will be explained in detail below
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PRODUCTION DEPARTMENT
The Caress Beauty Care produces the following products:
1. Shampoo
 Sunsilk Shampoo (7ml, 4ml)
 Sunsilk Pink Shampoo (40ml)
 Clinic Plus Protein Shampoo (3.5ml, 4.5ml, 9ml)
 Lux Shampoo (8ml, 7ml, 4ml)
2. Ponds Moisturizing Cold Cream (PMCC)- 8gm
Production Planning
On every Thursday the production head receives plan from HUL. Before 3.30 pm he should
prepare a plan for production and he should conduct meeting with all the department heads. The
production head shows the plan for production to all department heads during the time of the
meeting and asked them to co-operate for executing the plan. This plan of production is issued to
all the departments.
Machineries
The machines that are used for production process can be classified as:
1. Machine for producing 5 tons of shampoo

2. Machine for producing 3 tons of shampoo
3. Machine for producing Ponds Moisturizing Cold Cream (PMCC)
There are two side pots for three and five tone capacity machines. There is one main mixture for
both each. There are six storage tanks. Out of those tanks, first three tanks is for storing
chemicals. Remaining three tanks is used for storing demineralised water (DM water). The
fourth tank is used to store 80 degree Celsius water and the fifth and sixth tank is used to store 65
degree Celsius. For PMCC two side pots and one main mixture is used for production process.
Source of Machineries
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The machineries that are used in the factory are imported from other countries like China and
Honkong and they use the Indian made machineries also.
Raw Materials
The important raw materials needed for manufacturing the shampoos are Texapone, Galaxy 100,
DC1788, HL999, Jasmeio perfume, perfume 6971 etc and for manufacturing PMCC are LLP,
Cresmer 72 SS, Lanolin, Trend Perfume, GMS etc. All this raw materials are purchased within
India and some from other countries like Thailand also.
Production Process
For the production of shampoo, the raw materials accepted by the lab after testing are used.
Batch wise production is taking place in the factory. As per the product changes, the time taking
for each batch will also change. The manufacturing department keeps the details of each batch.
After producing shampoo a sample given to lab for testing. The produced shampoo will be stored
in the storage tank till the completion of the testing.
If the sample is accepted by the lab, then it will be moved to the Form Fill Sealing Machine (FFS
Machine). The shampoo came from the manufacturing department was kept in a portion called
‘hopper’ from which it pumps the shampoo to the nozzles (total there are 8 nozzles in one
machine) and through this nozzles shampoo is filled in the packets. It is sealed and cut them
separately and then the packing takes place.
Totally there are 13 FFS machines. Out of that one to five is for 3.5ml and six to thirteen
machines are for 9ml.
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Production Process Flow Chart
Fig. 3.2 Production Process Flow Chart
Manpower Required
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There are 13 machines used for the production purpose and the manpower required per shift is 26
workers for packing and re-working.
MARKETING DEPARTMENT
Since Caress Beauty Care manufactures products for Hindustan Unilever Ltd they do not need to
market their products directly to the customers. It will be done by the HUL itself.
FINANCE DEPARTMENT
Finance Department is the vital department of the company. The Department is headed by the
financial controller. He is vested with the authority of governing the financial requirements of all
the departments of the organization. The top management of every department has to report
indirectly to the financial controller. He is followed by General Manager- Finance department,
Senior Manager Accounts and Senior Manager Treasury, Manager, Assistant Manager and
Assistants. They are responsible for arranging finance and monitor the Cash flow and allocation
of fund to each department of the company and controlling overall finance of the company.
Functions of Finance Department
The main functions of finance department are
 Raise necessary fund for the company business operation

 Arrange finance for each department
 Prepare budget for every year
 Take control measures in order to check accounts
 Prepare Balance Sheet of the company for every financial year.
 Finance Department shall be in charge of all matters relating to the service of loans or the
discharge of guarantees.
 Ensure that proper financial rules are framed for the guidance of other departments and
that suitable accounts, including commercial accounts, whatever necessary, are
maintained by other departments and establishments subordinate to them.
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Structure of Finance Department
The finance department of Caress Beauty Care is headed by the General Manager who controls
Accounts and Treasury Departments. The GM finance is followed by the Senior Manager
Accounts and Senior Manager Treasury. They are followed by Manager, Assistant Manager and
Assistants.
The structure of finance department of Caress is as follows:
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Fig 3.3 Structure of finance department
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HUMAN RESOURCE DEPARTMENT
At Caress Beauty Care, they believe that human resources are the most important valuable assets.
They ensure that the work environment provides ideal support for nurturing and grooming talent.
For this they have human resource policies that provide:
 Equal opportunity without discrimination on grounds of gender, religion, etc.

 Ample growth opportunities and rewards for performers.
 Lateral repositioning opportunities for personnel requiring additional support.
 Personal attention to individual problems.
 An informal and inclusive atmosphere.
 Continuous training to achieve individual and organizational goals.
 A strong welfare policy and infrastructure.
Number of Workers
Cares Beauty Care consists of 90 regular employees, 90 temporary employees working in a shift
basis and 12 securities.
Factory Working Time
 First Shift -6 am to 2 pm
 Second Shift -2 pm to 10 pm
 Third Shift -10 pm to 6 am
The office time is from 9.00 am to 5.30 pm.
Records and Registers
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The factory is maintaining the following records and registers, according to the factory act:
According to the Factory Act:
 The License Renewal

 Plan Approval
 Half-Yearly and Annual Returns
Other Records are:
 Accident Records
 Fine Records
 Advance Register
 Attendance Register
 Leave Register
Pay for the Workers
For the office staff the salary will be given at last day of every month and for the contract labors
the pay will be paid before seventh of every month. They also get the PF and ESI. The company
pay directly to the contract labors and the contractors receives a service charge. The contractors
enter with in a contract and it is signed once in a year. Every 3 months, free medical checkup is
available for all the employees. The records and registers under the factory act will be verified
monthly to make the renewals at the right time.
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PURCHASE DEPARTMENT
Raw Materials
The company always store raw materials required for 15 days. Most of these raw materials are
purchased from other places like Mumbai etc and sometimes it is imported from countries like
Thailand also.
Process in Purchase of Raw Materials
Plan Receiving
The factory receives the plan according to the capacity of the factory. On every Tuesday
HUL sent a plan to the store head and if he approves the plan, it was given to the factory
on every Thursday.
Purchase of Materials
There is a procedure followed by the company to purchase the raw materials. The store in
charge daily updates the inventory and according to the next third week plan the store in
charge forward the demand to the Department Head. Department Head forwards the
requirement of raw materials to the Head Office and the Head Office forwards the
purchase order to the respective suppliers and organize materials to reach the factory on
time.
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STORES DEPARTMENT
Workings
Stores department always plan their works for the third week also. That means the store
supervisor plans for third week’s raw material and packing material.
Working for New Product
The company manufactures the product on the basis of the order given by HUL. Minimum 3
weeks are given by the HUL for manufacturing the new product because the store department
wants to collect the raw material for the product and they want to get the approval from the
Control Drug Inspector (CDI) for storing the drugs that is used in manufacturing the products.
Production Capacity Of The Machines
8 ml Shampoo – 45 tons/day
3.5 ml Shampoo – 10 to 12 tons/day
Stores
Factory is maintaining three types of stores. They are
1. Raw Material Store

2. Packing Material Store
3. Finished Goods Stores
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Raw material store
Raw material store is able to store one month stock inside the store safely. The materials stores in
a raw material store have a minimum expiry date of six months.
Packing Material Store
Packing store has a capacity of storing 3 days carton and 15 days laminate inside the store.
Finished Goods Store
Finished goods store has a capacity to store three days production. All these finished goods are
stored compulsory for 48 hours for clearing the lab test.
Types of materials
There are three types of materials available in stores.
a) Raw Materials
b) Packing Materials
c) Finished Goods
Issuing Of Materials
Raw materials are issued to the store as per the demand of the manufacturing department.
Packing materials are issued according to the order which is given to the packing materials
stores by the production department.
Finished Goods are issued according to the plan which is given from the HUL. The factory
stores department gives the next day despatch available to HUL. According to that they issue the
despatch plan to the factory.
Registers and Records
The store has to maintain the following registers.
Manual
i. Stock register –FIFO

ii. Indent
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iii. Weighing register

iv. Washing register
System
i. Receipt Note
ii. Purchase booking
iii. Stock maintenance
iv. Cartons and laminate rejection
Receiving of Raw Materials
At the time of receiving the goods which is sent by the suppliers an inspection notice is given to
the lab for checking the quality of the product. There are four types of stickers are used by the
store department. They are
a. Inspection pending
b. Accepted
c. Rejected
d. Hold do not use
Receiving Process
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Expiry Information
Fig 3.4 Receiving Process
Caress Beauty
Once in a month the lab department gives an expiry date details of the raw materials to the store-
in-charge. The store-in-charge works based on this information and three months before expiry
date the goods are sent to the needy ones.
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QUALITY CONTROL
Caress Beauty Care was driven by high standards and they are producing superior quality
products that are very safe and trusted by end-users. They have a clearly laid out quality policy
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that conforms to global standards of major players like Unilever, Sara Lee, Yardley of London,
Revlon, Oriflame, etc.
Highlights of Caress Beauty Care’s Quality Policy
 Product quality that conforms to BIS.

 Capability to meet EEC and CFTA standards.
 Quality assurance system that guarantees 100% adherence to protocols, accommodates
continuous improvements, and emphasizes defect prevention and reduction of waste.
 Multi-level quality assurance processes and Total Productive Maintanence (TPM)
enables 100% First Time Acceptance (FTA).
 Routine Hazard Analysis Critical Control Points (HACCP) to eliminate the hazards of
physical, chemical and microbiological contamination.
 Systematic and periodic audits and checks.
S.H.E POLICY
Caress Beauty Care is dedicated to the safety, health and welfare of its employees, stakeholders
and the community at large. The organization promotes a culture of safety by ensuring the
quality of its equipment, facilities and importantly, the health and competence of personnel.
The company believes in being responsible towards the environment and has made heavy
investment of time and resources in ensuring that it upkeeps the environment and does not in any
way contribute to the degradation of nature. The Group has an active afforestation program and
plants at least 300 saplings every year at its manufacturing facilities. Their Safety standards are
periodically audited to conform with British Safety Council’s Five Star Audit Management
System.
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Fig 3.5 Quality Control
Packing Material
The testing of packing material contains laminate testing and box testing.
Laminate testing contains the testing of the product cover.
Box testing is done by applying pressure on box used for packing.
Raw Materials
Once the raw material reaches the factory, an inspection notice is given to the lab for checking
the quality of the product. There are four types of stickers are used by store department such as
 Inspection Pending
 Accepted
 Rejected
 Hold do not use
Finished Goods
Line quality – It checks the color, print, batch number, manufacturing date, barcode etc of the
product.
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Finished product quality –It checks certain features of the product such as smell, consistency,
pH of the product.
Micro Testing – It test the presence of micro organisms. The product should be free from micro
organisms.
Lab
All specifications of the product are given by Hindustan Unilever Limited. Testing is done for
both raw materials and for finished goods. Checking is done keep the products free from micro
organisms.
The things that are needed for proper checking are good water, good environment, good packing,
good personal hygiene, equipment design, and good raw material. By combining all these things
we get 100% micro free substances.
Rules followed by the lab
 Disinfect the hands before entering the area for killing micros in hands. For disinfecting
hand 70% isopropyl alcohol and soap oil are using.
 Raw materials and finished goods should not keep in the floor or close to the wall
directly, because the presence of moisture will help the micros to increase by 20%.
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MANUFACTURING DEPARTMENT
The factory has the facility to manufacture the following products.
a) Shampoo
b) Ponds Cold Cream
Manufacturing Capacity
The machines have the following capacity to produce the shampoo and ponds cold cream.
Shampoo
There are two capacity machines are used. Each machine having two side pots, one mixture
machines and one storage tank. The two types capacity machines that are used for shampoo
production are
1) 5 tons manufacturing /batch

2) 3 tons manufacturing /batch
The time used for manufacturing 5 tons batch is about 2.45 hrs to 3hrs/batch and the time used
for manufacturing 3 tons batch is about 1.30 hrs to 2hrs/batch
Ponds Cold Cream
The machine capacity is to produce 1 tons per batch. Each batch consumes near 1 hr to 1.30 hrs.
Hierarchy
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Fig 3.6 Hierarchy of Manufacturing Department
Manpower Required
The manufacturing department requires four workers are there to collect material from stores,
totally there are three chemists, one per shift and one in charge in general shift.
Process of New Batch
An official from HUL will come to the factory and then they start the new batch. There will be
six new batches and HUL takes the sample from six batches for their testing purpose and if the
product quality is good they give the approval within 10days.
Sanitation
Different products are manufacturing so after every change over these machines need to be
cleaned. If there is no change over sanitation is done once in a week. The sanitation is required
when the product is changed for instance that is from clinic plus to Sunsilk shampoo.
Difficulties
For manufacturing shampoo, hot water at 60 degree Celsius is needed. Sometimes it is very
difficult to maintain water at this temperature and this was the difficulty faced by the
manufacturing department. This is overcome by setting a timer. This timer will work according
to the sensor in the water heating tank.
Records and Registers
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The manufacturing department maintains the following registers and records. They are:
 Opening stock
 Water stock
 Batch record
 Indent
 Sanitation report
Accidents
Water splash – Hot water for manufacturing purpose is passing through the rubberized cotton
pipes and these pipes are tightened using single clip. But it is very dangerous and to avoid
accidents, where ever pipe connection is there, double clippings are used in that place.
Using Hazardous Chemical – To avoid this type of accidents while dealing with this dangerous
chemicals the workers are use safety equipments like gloves, respiratory masks, helmets etc.
Audit
The manufacturing department in charge do an audit of the machines once in a week so that they
will give a report to the maintenance department and then if any machine parts need to be
replaced this will be done based on this report.
Achievements
The manufacturing department reduces a diesel cost during the time of PMCC manufacturing. So
that the cost more than a lakh per annum is saved.
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SAFETY DEPARTMENT
As per the Indian Companies Act, the safety measures are there in the factory. The factory
manager, all the department heads and the entire security people in the factory constitute the
members of the safety department. There is an inward register which is kept by the security
officers and all the workers’ name is mentioned in it. If any accident occurs all the wokers
gathered at the safety point which is located in the factory entrance and this security people cross
check the name of the people with the register and this is to ensure safety of workers.
Safety Audit
A person will come from outside for audit that means for checking whether the factory should
have safety measures as per the rules and he will interview the safety department members and
these members are supposed to submit all the records regarding the safety measures in the
company to this person. If there any accidents occurred in the company, the details of that
accident and what measures are taken to prevent that accidents being happened again. All these
details should be maintained in those records.
MAINTENANCE DEPARTMENT
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Maintenance department will take care of all the maintenance activities within the factory. If
there any problem with the machineries then it will looked up by this maintenance department
people. Some of the machineries that are used for the production purposes are imported from
other countries and if any problem with these machines occurs, these maintenance department
need to repair it. For this, the engineers will give special training to deal with this machine at the
time of Purchase.
LOGISTICS DEPARTMENT
Logistics department is related to the supply chain management. It deals with the movement ,
handling and stocking of goods. Sales forecasting is also done in this department. The target for
production is given based on the last year benchmark and planning team will plan and this plan is
given to the factory for production.
3.4 STAFFING
Recruitment Procedure
The recruitment procedure starts by giving resume by the applicant to the company. After
submitting the resume, HR manager will go through it and if satisfied they will send a call letter.
The applicant has to fill the application form given from the company. The applicant form
covers the details such as
 Personal details
 Education and training
 Employment and attributes (experience)
 Health and physical
 General (hobbies, reference, social activities etc.)
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After this interview will takes place and if the interview panel is satisfied they send one call
letter to the selected candidate and it include all the details regarding the salary. For temporary
appointment the procedure taking place is same but the format of application form is different.
Performance Appraisal
Yearly once the appraisal has been done on the performance of each employee and promotions
and increments are given on the basis of their performance. The increment will be decided by the
head of the HR department and this is done by using the Key Performance Information Report
(KPIR).
Job Training
On job training is providing in the company. In addition to this training programs such as Fire
and Safety Training, First Aid Training, Manufacturing techniques, sampling and testing etc.
3.5 BUDGETING
Budgeting is done both monthly and yearly. It is done by finance department. If the budget is
exceeding then review meetings are conducted for discussing about the exceeded budget and
actions will be taken for reducing the budget.
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CHAPTER 4
SWOT ANALYSIS
4.1 SWOT ANALYSIS- INTRODUCTION
SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture. It involves specifying
the objective of the business venture or project and identifying the internal and external factors
that are favorable and unfavorable to achieving that objective.
A SWOT analysis must first start with defining a desired end state or objective. A SWOT
analysis may be incorporated into the strategic planning model. An example of a strategic
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planning technique that incorporates an objective-driven SWOT analysis is Strategic Creative

Analysis (SCAN).
 Strengths: attributes of the person or company that is helpful to achieving the

objective.
 Weaknesses: attributes of the person or company that is harmful to achieving the
objective.
 Opportunities: external conditions that are helpful to achieving the objective.
 Threats: external conditions which could do damage to the objective.
Identification of SWOTs is essential because subsequent steps in the process of planning for
achievement of the selected objective may be derived from the SWOTs.
4.2 SWOT ANALYSIS OF CARESS BEAUTY CARE
Strengths
 Caress Beauty Care’s ultra modern facilities and these latest machineries that they use
enable them to fulfill the stringent requirement of brand owners like Hindustan Unilever
Limited.
 The organization promotes a culture of safety by ensuring the quality of its equipment,
facilities and importantly, the health and competence of personnel.
 Quality assurance system that guarantees 100% adherence to protocols, accommodates
continuous improvements, and emphasizes defect prevention and reduction of waste.
 Continuous training to achieve individual and organizational goals.
Weakness
 Since Caress manufacture products only for HUL and they are the only one buyer of the
products.
 Most of the customers do not know the fact that Clarion group is manufacturing these
goods for HUL.
 There are no advertisements for the Caress Beauty Care products.
Opportunity
 Usages of cosmetic products are increasing.

 Market is moving towards quality and brand consciousness
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Threat
 Any downfall of HUL in the business, affects the firm.

 New firms may do business with HUL.
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CHAPTER 5
SUGGESTIONS AND
CONCLUSIONS
SUGGESTIONS AND CONCLUSIONS
5.1 Findings
The main findings of the study are
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 Caress Beauty Care manufactures products only for HUL.

 The organisation chart of the company is functional.
 Company follows strict quality policy.
 Company conducts mock drill for employees.
 Company is providing Personnel Protective Equipment (PPE) for ensuring the safety of
the employees.
 Fire and safety training is not given to all employees.
5.2 Recommendations
Based on the study the following are the recommendations
 Fire and safety training should be given to at least half of the employees.
 Should market their products directly.
 Proper advertisement should be given so that the customers should aware of the
company.
5.3 Conclusion
“The Organisation Study on Caress Beauty Care Pvt. Ltd.” was a general study regarding all
functions and aspects, giving more importance to its departments. It is found that the company
have a good working environment and cordial relationship is maintained between all departments
for the smooth functioning. They have achieved the enviable heights by their strong employer-
employee relationship, hard work and commitment of quality besides rendering quality services
at the right time to the clients. The study gave me an opportunity to experience, understand and
also to improve my practical knowledge about the internal functioning of an organization.
Caress Beauty Care Pvt Limited is one of the leading cosmetic manufacturing companies in the
respective field. They had established and is maintaining a system for monitoring and measuring
the process, product, activities and aspects. This will provide the information to confirm the
suitability, effectiveness of the system and efficiency of the resources. Management of Caress
Beauty Care utilizes this information to set objectives, targets and program for continual
improvement.
REFERENCES
Text Books
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1. Chhabra T.N. (2007), “Principles and Practices of Management”, Dhanpat Rai & Co.
2. Koontz Harold, Wiehrich Heinz (2007), “Essentials of Management”, Seventh Edition,

An International Perspective.
3. Robbins P. Stephen, Judge A. Timothy and Sanghi Seema, (2008),“Organisational

Behavior”, Pearson Education.
4. Peter F Drucker (2007), “Management-Tasks,Responsibilities,Practices”; Allied
Publishers Pvt. Ltd.
Websites
1. www.clarionindia.com visited on 15/01/2009

2. www.nikitacontainers.com visited on 15/01/2009
3. http://managementhelp.org visited on 17/01/2009
4. http://wiki.answers.com visited on 17/01/2009
5. http://static.seekingalpha.com visited on 19/01/2009
6. http://indianeconomy.org visited on 21/01/2009
7. www.naukrihub.com/india/fmcg/scope visited on 24/01/2009
8. www.etstrategicmarketing.com visited on 02/01/2010
9. www.learnmanagement2.com visited on 02/01/2010
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Organisation Study Caress Beauty

Organisation study is identification of the working of a company. For the purpose of

Meaning and definition of an organisation

According to Stephen P. Robbins, an organisation is “a consciously coordinated social unit,

An organisation is a group of people who work together. A company, corporation, firm,

Basically, an organisation is a group of people intentionally organized to accomplish an overall,

Fig. 1.1 Elements of an organisation

Processes that Are Aligned With Achieving the Goals of an Organisation

2.1 INDUSTRY PROFILE

FMCG Category and Products

Indian Competitiveness and Comparison with the World Markets

The following factors make India a competitive player in FMCG sector.

 Availability of Raw Materials

 Labor Cost Comparison

Fig. 2.1 Labor Cost Comparison

2.2 COMPANY PROFILE

Built on a foundation of expertise

manufacturing unit to a dynamic group with five state-of-the-art cosmetic manufacturing

Handling Global Brands

1. Caress Beauty Care

CARESS BEAUTY CARE

With the flexibility to scale up operations, Caress delivers multi-product, multi-variant

Cost and Variety

Shampoo – 18000 ton per year

Ponds Moisturizing Cold Cream – 1000 ton per year

SAFETY HEALTH ENVIRONMENT POLICY (SHE)

CORPORATE SOCIAL RESPONSIBILTY

LOTUS BEAUTY CARE

NIKITA METAL CONTAINERS

1993 Clarion Cosmetics set up in a record 41 days(commercial production)

1994 Enter into tin packaging.

1996 Clarion achieves record production 5.08 million pieces/month.

2001 Cool cosmetics go on stream- Manufactures white petroleum jelly.

2006 Caress touches the highest annual production of shampoo-13723 MT.

2007 New tin packaging unit near Chennai to go on stream.

2.3 PRODUCT PROFILE

3.1 PLANNING IN THE COMPANY

3.2 IMPORTANCE OF ORGANISATIONAL STRUCTURE

The importance of organizational structure is to provide order and accountability to an

3.3 FUNCTIONAL AREA ANALYSIS

The various departments of Caress are:

The Caress Beauty Care produces the following products:

1. Machine for producing 5 tons of shampoo

Production Process Flow Chart

Fig. 3.2 Production Process Flow Chart

Functions of Finance Department

The main functions of finance department are

 Raise necessary fund for the company business operation

Structure of Finance Department

The structure of finance department of Caress is as follows:

Fig 3.3 Structure of finance department

HUMAN RESOURCE DEPARTMENT

 Equal opportunity without discrimination on grounds of gender, religion, etc.

Factory Working Time

The office time is from 9.00 am to 5.30 pm.

Records and Registers

According to the Factory Act:

 The License Renewal

Other Records are:

Pay for the Workers

Process in Purchase of Raw Materials

Working for New Product