Professional Documents
Culture Documents
INDUSTRY PROFILE
Fast Moving Consumer Goods (FMCG) are products that are sold quickly at relatively
low cost. Though the absolute profit made on FMCG products is relatively small, they
generally sell in large quantities, so the cumulative profit on such products can be large.
FMCG Products are generally replaced of fully used up over a short period of days weeks, or
months, and within one year. This contrasts with durable goods or major appliances such as
kitchen appliances, which are generally replaced over a period of several years.
FMCG industry provides a wide range of consumables and accordingly the amount of
money circulated against FMCG products is also very high. The competition among FMCG
manufacturers is also growing and as a result of this, investment in FMCG industry is also
increasing. The industry has a good market potentiality because of low operating cost and
strong distribution networks. Population growth is another factor which is responsible behind
the success of this industry. It creates a wide range of job opportunities. This industry is a
stable, diverse, challenging and high profile industry providing a wide range of job categories
like sales, supply chain, finance, marketing, operations, purchasing, human resources,
product development and general management.
FMCG industry is characterized as, a defensive sector with relative inelastic demand,
time –lag between expansion of income and impact on industry, low technological barriers in
terms of technology or investments, imagery and price premium central to FMCG marketing,
new customer acquisition through smaller-sized packaging and low unit prices, high
competition at various price points especially at the regional levels, enhanced bribing of
customers through freebies, focus on increasing reach.
Household care products are a major segment of the FMCG industry. Household care
comprises household cleaners, laundry care, toilet cleaners, air fresheners, insecticides,
Mosquito repellents, polishes and other products related to household care.
INDIAN OVERVIEW
The Indian FMCG sector is the fourth largest in the economy in globally. As per The
Federation of Indian Chambers of Commerce and Industry (FICCI) the estimated market size
of the FMCG segment in India is Rs 113,000-crore. Industry projections estimate growth at
30% in 2009-10. The industry recorded 17-18% volume growth in the last financial year. The
FMCG industry in India was worth around US$ 16.03 billion in August 2008.The middle
class and the rural segments of the Indian population are the most promising market for
FMCG, and give brand makers the opportunity to convert them to branded products. Most of
the product categories like jams, toothpaste, skin care, shampoos, etc, in India, have low per
capita consumption as well as low penetration level, but the potential for growth is huge.
The Indian FMCG industry is divided into five primary segments – personal care
products, household care products, packaged food products, branded spirit and tobacco
products as well as health care products.
GLOBAL OVERVIEW
Even as the Indian FMCG is governed by local, regional and national undercurrents, it
worked as a subset of the global FMCG industry as well. The global FMCG market was
valued at USD 230 billion. Almost 70% of the global FMCG market was accounted for by
developed geographies like the USA, Europe and Australia.
COMPANY PROFILE
Jyothy Laboratories Limited (JLL) is a fast moving consumer goods (FMCG)
company and caters to the fabric care, household insecticide, surface cleaning, personal and
air care segments of the Indian market. JLL’s products include fabric whitener, mosquito
repellent, dishwashing, bath and incense products. With 21 manufacturing units in 14
locations across India, JLL has a distribution sales network of over 1,500 people catering to
approximately 2,500 distributors. Its flagship brand, ‘Ujala’ a fabric whitener has a dominant
market share of 73.50 % and it had a growth of 13% in the last financial year 2008-09(March
ending). The other major brands Maxo and Exo had a growth of 30.8% and 98.7 respectively
in the FY 2008-09.
The Company’s future plans include, launching of Exo Round Dish Shine Bar,
increasing Ujala Stiff and Shine’s market presence, entering into joint ventures for sales and
marketing of branded products, pursuing selective acquisitions and concentrating on
supermarket and hypermarket sales.
Jyothy Laboratories Limited was listed on Indian Stock Exchanges in 28th June 1996
through an IPO with price band of 620-690. It issued 44,30,260 equity shares at Rs 5.00 each.
History
Year Events
MISSION
Provide brands that denote superior quality, to touch and positively impact the daily
lives of consumers. To ensure that our brands, business operations and corporate policies
translate the core philosophy of offering value for the money spent to experience our
products. Ensure that our people, processes and products reflect the ideals of integrity, ethics
and professionalism.
VISION
Develop innovative brands, tap high growth categories, reach untapped markets and
explore untapped segments to meet the day-to-day requirements of every Indian household.
QUALITY POLICY
The Company adhered strictly to R&D-defined quality norms for superior products.
The vendors’ site and raw materials were checked to match desired quality. In-process quality
checks monitored process effectiveness. End products were checked for proper packaging
and leakages. The Company’s strong quality discipline resulted in ISO 9001 and ISO 14001
certifications across most of its manufacturing units.
d. PRODUCT PROFILE
The entire production activities of the company having places under the production
department, JLL has a well-established production planning and control
system. The products are,
1. Ujala Supreme
Ujala is synonymous with the genesis of Jyothy
Laboratories Limited and has created history in more ways than
one. Ujala - the flagship brand of Jyothy Laboratories Limited
marked the beginning of endeavor to offer innovative and value
for money products to the Indian consumer.
The product category for a liquid fabric whitener was literally non-existent prior to
the advent of Ujala. While the “HAVE YOU CHANGED
OVER TO
UJALA”
punch
phrase
captured the
imagination
of people throughout the country, Ujala ushered in a revolution, with consumers shifting from
powder blue to liquid blue. Positioned on the platform of whiteness and brightness, Ujala is a
market leader in its category - the growing market share is a testimony to the brand’s
popularity.
Ujala Supreme - used as a post-wash application for brightening white clothes has an
instant whitening system that assures uniform and consistent results.
Ujala Supreme is available in 9ml, 30ml, 75ml ,125ml and 250 ml bottles.
specially formulated to maintain clothes at their crisp and shining best. It is suitable for
clothes of all fabric type and colours.
A post-wash liquid fabric enhancer, Ujala Stiff & Shine helps provide the stiffness for
that crisp look without the white patches and bad odour commonly associated with starch.
What’s more, unlike the inconvenient and messy experience of using starch, Ujala Stiff &
Shine is handy and easy to use. Ujala Stiff & Shine gives that special sheen to clothes,
making them as good as new - offering premium quality and utmost care for your laundry.
Ujala Stiff & Shine is available in 20gm sachets, 100ml and 200ml bottles.
4. Maxo Aerosal
Maxo Aerosol is a must have in your household kit – to ward off pesky pests. Fully
loaded with a potent combination to ward off cockroaches, ants, houseflies, lizards etc. Maxo
Aerosol is formulated to hunt out these pests from their hideouts and eliminate them.
Maxo Aerosol is presented in handy containers of 150ml and 300 ml.
Exo Dish Wash liquid presents all the potent qualities of the innovative Exo
formulation in a convenient to use liquid variant. Exo Dish Wash Liquid is the only anti
bacterial dish wash liquid with Cyclozan as the active ingredient. Convenient and handy, this
is ideal for stainless steel, crockery, cutlery and non-stick kitchen ware. Exo Dish Wash
Liquid ensures streak less glasses, gleaming cutlery and sparkling dishes while disinfecting
them.
Exo Dish Wash liquid is presented in elegantly designed 500ml bottles & 125ml bottles.
9. Jeeva Naturals
Jeeva Naturals is yet another special offering from Jyothy Laboratories Limited’s
Personal Care portfolio. This specially formulated beauty soap range is packed with hand
picked ingredients from nature to enhance the experience for the discerning consumer. Jeeva
Naturals is a range of soaps that encapsulates the goodness of coconut milk. Coconut milk is
nature`s treasure trove of minerals, vitamins, essential oils and proteins. This is further
enriched with other natural ingredients like Kasturi Manjal, Milk protein and Jasmine,
renowned for their skin nourishing benefits. Jeeva Naturals is available in three variants -
Coconut Milk with Milk Protein, Coconut Milk with Jasmine and Coconut Milk with Kasturi
Manjal, and is presented in 75gm packs.
10. Maya
Maya is a fragrant offering from Jyothy Laboratories Limited comprising of a wide
range – an ideal fragrance for every occasion in the form of agarbathis (incense sticks).
Inspired by nature, the enchanting array of incense sticks provides the perfect ambience and
enhances the experience to match every mood.
Carefully selected, each fragrance from the exotic collection is formulated to spread
faster and linger longer. The Maya bouquet comprises of a wide range of floral, traditional
and aromatic fragrances like Rose, Jasmine, Sandal, Sarvasugandhi, Magic, Milan, Prarthana
and Raaga 4-in-1, with many more varieties collection.
The Maya range is presented in attractive pouches and cartons containing 8, 15, 20, 40 and
100 sticks.
e. AREA OF OPERATION
Jyothy Laboratories Limited is operating in the FMCG industry in India. It has a well
established distribution network and very skilled manufacturing units across in India. It
manufactures the products through manufacturing facilities in 14 locations across India, eight
of which are tax efficient units. Tax efficient facilities are set up to take advantage of certain
tax breaks offered by the central and state governments. Manufacturing facilities located in
these geographical locations are granted the following
• Exemptions from income tax on profits made from these facilities.
• Exemptions and refunds of excise duty on products manufactured at those
units.
• Exemptions from payment of VAT on sales of products of these units within
specified areas by concerned state governments.
Jyothy laboratories esatablished a distribution network across india with a sales staff
of over 1500 people servicing approximately 2500 distributers, Ujala fabric whitener was
available in approximately 2.80 million outlets in india as June 30, 2007.
f. OWNERSHIP PATTERN
Jyothy Laboratories Limited incorporated as Jyothi Laboratories Private Limited on January
15, 1992. It became a public limited company further the name was changed as Jyothy
Laboratories Limited on October 6, 1995. Further the name changed to Jyothy Laboratories
Limited on August 12, 1996. Now the copmany is operating as a public limited company in
the industry. The initial authorised capital of company was Rs. 2,000,000 comprising 400
equity shares with a face value of Rs. 5000 each.
Board of Directors
Mr. M. P. Ramachandran……………Executive Director (Chairman and Managing Director)
Mr. K. Ullas Kamath………………...Executive Director ( Deputy Managing Director)
Ms. M. R. Jyothy…………………….Executive Director
Mr. Nilesh B. Mehta…………………Non-executive independent Director
Mr. K. P. Padmakumar………………Non-executive independent Director
Mr. Bipin R. Shah………………....Non-executive independent Director
g. COMPETITORS INFORMATION
• Hindustan Unilever Limited
• Procter & Gamble
• Godrej Group
• Cholayil pvt ltd
h. INFRASTRUCTURAL FACILITIES
Medical Facilities
• First aid appliances
• Ambulance
• Doctors
Well furnished office buildings
• Sitting arrangements
• Lunch room
• Ventilation/lighting
• Toilet
• Lighting
• Drinking water facilities
• Seminar hall
• Lifts
• Racks
• Telephone facilities
• Generator arrangements
• Bottling machine
Storage
• Packing Department
• Warehouse
• Fire extinguish
• Emergency Exit
• Security Guards and cameras
• Transportation facilities
ACHIEVEMENTS
1. Jyothy Laboratories releases its first print advertisement in the Kerala- based
Mathrubhoomi newspaper in 1986.
2. Ujala becomes a INR 100 crore Brand in1999.
3. Diversified into the household insecticide and untensil care segments with
the launch of Maxo and Exo new brands.
4. Acquires trademark and copyright for the More Light and Ruby brands.
5. Moves its registered office to its own building ‘UJALA HOUSE’ in Mumbai at
2008.
6. Forays into service sector through new venture ‘ Jyothy Fabricare Services Limited’
to provide worldclass laundry at affordable price at consumer doorstep.
AWARDS
1. Awarded the ‘AAA Brand Performance Award’ for Maxo by the All India
Advertisers Association in 2003.
2. Company was awarded the ISO-14001 Certificate and a ISO 9001 certification for
all of its manufacturing facilities & R & D Centre.
The 7-s framework of MCKENSY ‘S is a value based management (VAM) model that
describes how one can effectively organize the company. Together these factors determine
the way in which a corporation operates.
The 7-S framework was first mention in the art of Japanese management by the Richard and
Antony Athens in 1981. They had been investigation how Japanese industry had been so
successful. At around the same time that Tom Peters and Robert Waterman where exploring
what made a company excellent.
The seven S model was born at a meeting of these four authors in 1978 it appeared also in
research in search of excellent by Peter Sand Waterman, and was taken up as a basic tool by
the global management consultancy since then it is known as 7-S model.
SOFT Ss
The 4s across the bottom of the model are less tangible, more cultural in nature, and were
termed soft ‘Soft Ss’ by McKensy.
Skills: The capabilities and competencies that exist within the company.
Shared values: The values and beliefs of the company. Ultimately they guide the employees
towards ‘valued’ behavior.
Staff: The Company’s people resources and how they are developed, trained and motivated.
Style: The leadership approach of top management and the company’s overall operating
approach.
HARD Ss’
The 3 Ss across the top of the model are described as ‘Hard Ss’.
Strategy: The direction and scope of the company over the long term.
Structure: The basic organization of the company, its departments, reporting lines, areas of
expertise and responsibility (and how they inter relate).
System: Formal and informal procedures that govern everyday activity, covering everything
from management information systems, through to the systems at the point of contact with
the customer (retail systems, call centre systems, online systems, etc)
STRUCTURE
BOARD OF DIRECTORS
CHAIRMAN &
MANAGING DIRECTOR
DEPUTY MANAGING
DIRECTOR
GM -
NORTH Rajiv GandhiCFO
Institute
& CS Of Technology, Bangalore
DIRECTOR VP- R&D 20
JLL
GM -
WEST
GM-
GM OPERATIONS
GM -
EAST
MGR-
GM - AGM MARKETING MGR- HR
SOUTH
CS – Company Secretary
DEPARTMENTS
An organization to perform efficiently goes for the diversion of work. Dividing of work
naturally means identifying of individual activities, which in turns helps in organization
goals.
But once the various activities are identified then that has to be grouped on some logical
base so that group can be organized “Departmentation refers to process of growing
activities into units for the purpose of administration
1. Finance
2. Marketing
3. Human Resources
4. Research and Development
5. Production
6. Sales
7. Quality Control
ASSISTANT GENERAL
MANAGER FINANCE
ACCOUNTS OFFICERS
Rajiv Gandhi Institute Of Technology, CLERKS
Bangalore 22
JLL
Jyothy Lab Limited follows a centralized Accounting system. It’s having its own
policies. A part of profit is used as working capital. Chef Financial Officer is the head of
this department. Jyothy Lab maintains proper books of account every year
1) Planning of funds:
Careful estimation of total funds require by the manager is called planning of funds.
It can be either fixed or current asset or also working capital requirement. The working
capital estimation is made by deep analysis as the BSP which deals with the steel
production which needs more capital.
2)Allocation of Funds
Not only planning of funds but also to provide the funds to the proper place at
proper time are also an important task to be done by the financial manager the financial
manager first studies the requirement and then distributes funds.
It spends most of the amount for the improvement of the company’s services and
also for fixed assets like machinery.
4. DIVIDEND DECISION
3) Investment Decisions
4) Recording of Information
All the transactions are recorded in the journal and posted to ledger. Each pin of
transaction is recorded that takes places as it helps in better control and effective
supervision of funds.
The financial department will prepare the year ending financial statement to check
the profit and loss of the dairy of that particular year. It also evaluates the post
performance and the present and takes the corrective messages if required.BSP submits
its annual reports to the concerned departments regarding its financial strengths and
weakness of the firm by properly establishing relationship between the items of balance
sheets, profit and loss account.
MANAGING DIRECTOR
DIRECTOR OF MARKETING
MARKETING MANAGER
MARKETING OFFICER
MANAGING DIRECTOR
H R MANAGER
Executives
Dept. Staff
Jyothy Labs a professionally managed company that has sought to build for itself a
stimulating work culture that empowers people, promotes team building, encourages new
ideas and motivates performance. JLL belive in meritocracy and this policy commeneces
with hiring individuals with the right experience while ensuring that progress in the
organization is not dependent solely on tenure.
As at July 31, 2007, JLL had over 3,400 employees in ndia . The number of
employees in each of divisions as of that date is follows:
As at july 31, 2007, approximately 475 of employees at two locations were members of trade
unions and JLL entered into wage settlement agreements with then. JLL have had no recent
strikes or work stoppages and JLL have a good relationship with the workforce.
MANAGER PRODUCTION
TECHNICAL OFFICER
PLANT SUPERVISORS
ADMINISTATIVE ASSISTANT
TECHNICIANS
PLANT OPERATIONS
HELPERS
Production refers to the transformation of various raw materials inputs into physical outputs
or finished products.
Among all the functional area of management production is considered to be crucial in any
industrial organization. All other activities revolve around this activity. The end product. Of
the production activity is the creation of goods and services for the satisfaction of human
wants. Production activity is the step-by-step process by which raw material and other
inputs are converted into finished goods or products.
RAWMATERIALS: Across the products that JLL makes, some of the major raw
materials include HDPE, acid slurry, synthetic organic dye, Koylene, LABSA,
Esbiothrin and brown saw dust. High Density polyethylene (HDPE) is used for
packaging purposes and it is the largest raw material consumed by the
company. Brown saw dust, required for the mosquito repellent coils is a
JLL is a large consumer of plastics. The costs of this packaging material are
directly linked to global crude oil prices. A spurt in the same could lead to
reduced margins.
SKILL
Jyothy laboratories belives that employee base is a key compitative advantage. The senior
management team has a breadth of experience in the FMCG industry. The skills and
diversity of employees gives the flexibility to respond to the needs of our customers and
customers. The company dedicated to development of expertise and know-how of the
employees and continue to invest in them through training and skills.
JLL’s well-qualified and experienced management team has played a key role in the
development of good corporate governce, effective internal controls and accounting
policies, strong employee relation s, and stable supply chain relationships. The
organization provides different types of training for the employees in the different
jobs. They are
INTERNAL TRAINING:-
EXTERNAL TRAINING:-
STYLE
The organization has a Top down style of management. It also has a Participative
style of management where the orders flow from the superior to the subordinate. It
has a two-way communication from both the direction in the organization. The
management gives more importance to the employee’s views while the decision is to
be taken it also considers the farmers views while taking some decision as it is a co-
operative society.
• Fixing the targets to the employee and the workers who are working in the
organization.
• Reducing or increasing the price of the product
• Policy issues
LEVELS OF MANAGEMENT
TOP LEVEL
It includes board of directors, chairman, managing director and chief general manager and
senior executive come under this level. They are concerned in determining policies, plans and
procedures of the Union
MIDDLE LEVEL
It includes all the department heads, Such as, General Manager for personnel, Financial and
Processing department, marketing department.
LOWER LEVEL
It includes all the clerks and employee working under different department. These clerks and
employees are working under the guidance and control of the departmental heads i.e., of
General Manager.
STRATEGY
Jyothy Lab intends to work toward achieving the vision and to grow business by
implementing the following key strategies.
1. Leverage the dominant Ujala brand with other branded fabric care products, the Ujala
Stiff and Shine and Ujala Washing Powder. JLL believe that the well-known brand
eqity of ujala and wide distribution reach will help successfully develop ujala stiff and
shine as a national brand and ujala washing powder as a strong regional brand.
2. JLL plan to increase the market share and presence of the Maxo products those liquid
vaporizers, aerosol spray and coils.
3. JLL intend to utilize wide distribution network and marketing expertise to attract joint
venture partners with existing branded products as well as new and innovative product
ideas.
4. JLL seek to improve effeciencies and cost from the sourcing of the raw materials to
the supply of products to consumers.
6. JLL intend to make acquisitions in the future as part of our growth strategy in India
and intend to target acquisitions which will strengthen market position in key product
areas or manufacturing capabilities.
SYSTEM
Information technology systems are important to the business. JLL is heavily reliant on
information technology system in connection with
• Order booking
• Accounting
• Production
• Distribution
Information technology system is a very efficient system which helps JLL to work more
effectively and faster as much accurate in the operations, quality control, finance, marketing
and all in the business activities. Information technology system is very sensible so any
failure in IT systems could result in business interruption, adversely impacting the reputation
and weakening if our competitive position and could have a material adverse effect on the
financial condition and results of operation but JLL have many experienced employees to
maintain the information technology systems very smoothly, so the information technology
system is very effectively applicable in JLL.
STAFF
The success of JLL is dependent on the expertise and services of the management team it
includes all employees and staffs in the organization. It has over 3,400 employees in india
and the organization has established a distribution network across india with a sales staff of
over 1,500 people serving approximately 2,500 distributers.
The sales force headed by four general managers included 36 state managers, 165barea
officers and 1,165 market intelligence assistants.
All the employees are given “PUNCH CARD” to use it as a record of their presence. It also
owns a ‘time recording machine’ for employees.
SHARED VALUES
The basic philosophy of Jyothy Laboratories Limited is to achieve business excellence and to
create and enhance the value for its share holders, Customers, Employees and Business
Associates and thereby to make a significant contribution to the Economy. The company
SWOT ANALYSIS
After a keen observation over the organization and the various departments of Komul,
the following strength, weakness, opportunities and threats are known
Strengths
• Good reputation among customers.
• Well-established distribution network extending to rural areas.
• Strong brands in the FMCG sector.
• Low cost operations.
• Quality
Weaknesses
• Low export levels.
• Small scale sector reservations limit ability to invest in technology and achieve
economies of scale.
• Several ‘me-too’ products.
• Advertisement spending etc is limited.
Opportunities
• Large domestic market.
• Export potential.
• Increasing income levels will result in faster revenue growth.
• Mid class buying behavior
Threats
• Imports
• Tax and regulatory structure.
• Slowdown in rural demand.
• Emergence of new competitors.
LEARNING EXPERIENCE
The in-plant training at Jyothy laboratories limited was very much useful for me for
knowing about organizational structure and formations and it’s working. It helped me gain
practical knowledge about different functions of various departments of the company. All the
staff in the company was very much cooperative and very keen to explain each and every
aspect. Thus through training I was able to make a thorough study of the company’s activities
in each section and was able to acquire practical knowledge in this field. This study was of
great benefit for me to my future career.
The great thing about the company is that they were really making use of the
motivational theories to motivate the people in the organization. They concentrate on
motivating the people towards the organizational goals. They motivating and managing the
people without any conflict. Since the company is a government enterprise, they follow
autocratic style of leadership. Then also they take feedbacks from the employees and consider
those aspects in decision making process. In the nearby future the company is going to be a
joint venture. All the employees of the organisation are well trained to adapt any changes
made by the organisation.
Finance department
Production department
Each department plays an important role for the success of the organization. Even one
department not functioning properly definitely the working efficiency will come down of that
company.
Also in today’s competitive world all company should follow the Integrated
Marketing i.e. all the departments must be tightly integrated keeping the market as pivotal in
order to beat the competition..
To conclude it was a great experience for me for the entire four weeks in the Jyothy
Laboratories Ltd. The practical experience gained by me during my in-plant training is a lot.
It is entirely different from the theory what one learns in the class room. The situations read
and explained theoretically are fully different when it comes to the practical. The practical
situation broad in nature and they are entirely different from one situation to another. I felt it
as a golden opportunity to inter link what I have learned in the class room with practical
functions of an organization.