A REPORT ON SUMMER INTERNSHIP TRAINING

AT
RELIANCE HR SERVICES PRIVATE LIMITED
Submitted to

THE UNIVERSITY OF MADRAS

In partial fulfilment of the requirement
Of post Grade Degree in

MASTER OF BUSINESS ADMINISTRATION

BY
RAVI ANAND.R
Register Number: 711700388
2017-2018

Under the Guidance of

MR.NAGARAJ

THE DIRECTOR
NATESAN INSTITUTE OF COOPERATIVE MANAGEMENT
(An Institute of National Council for cooperative Training, New Delhi)
(Ministry of Agriculture and Farmers Welfare)
(Department of Agriculture and Farmers Welfare)
(Accredited by C-PEC- BIRD – Lucknow)
2377-A IV Avenue, Anna Nagar, Chennai – 600040.

I
Serial No:_________
 A REPORT ON SUMMER INTERNSHIP TRAINING
AT
RELIANCE HR SERVICES PRIVATE LIMITED
Submitted to

THE UNIVERSITY OF MADRAS

In partial fulfilment of the requirement
Of post Grade Degree in

MASTER OF BUSINESS ADMINISTRATION

BY
RAVI ANAND.R
Register Number: 711700388
2017-2018

Under the Guidance of

MR.NAGARAJ

DR P.JAGANATHAN
MBA.,M.COM.,M.Phil., Ph.D., PGDLA., DCO
DIRECTOR
NATESAN INSTITUTE OF COOPERATIVE MANAGEMENT
(An Institute of National Council for cooperative Training, New Delhi)
(Ministry of Agriculture and Farmers Welfare)
(Department of Agriculture and Farmers Welfare)
(Accredited by C-PEC- BIRD – Lucknow)
2377-A IV Avenue, Anna Nagar, Chennai – 600040.

II
Serial No:_________
 DECLARATION OF THE CANDIDATE

I RAVI ANAND.R

hereby declare that the Summer Internship report at CAPLIN POINT

LABORTORIES Is based on an original study conducted by me under the

guidance and supervision Mr.NAGARAJ. That has submitted for the

award of the degree of MASTER OF BUSINESS ADMINISTRATION

for the UNIVERSITY OF MADRAS, Chennai and this report has not

been previously submitted for the award of any other degree,

diploma, fellowship and other similar titles.

Signature of the

Candidate

PHOTO

Place: Chennai
Date:

III
 GUIDE DESK

Mr.NAGARAJ

The Summer Internship report CAPLIN POINT LABORTORIES LTDis

carried out under my direct supervision and guidance by MR RAVI

ANAND.R Register Number: 711700388, for the award of degree

master of business administration and the report is report is purely

original work at CAPLIN POINT LABORTORIESPRIVATE LIMITED,

PERUNGUDI, Chennai.

Place: Chennai
Date:
Signature of the Guide.

ACKOWLEDGEMENT
 I have great pleasure to study at the Department of
Management Studies in Natesan Institute of Cooperative
Management, Govt. of India, Chennai, Institute shaped me as a
complete intellectual candidate to work in the competitive world.
Therefore I would like to express my sincere regard and gratitude to
our beloved Director Dr.Jaganathan, MBA., M.Com., M.Phil., Ph.D.,
PGDLA., DCO., giving me an opportunity to conduct a study and
take part in this Summer Internship Training Programme.

I put for forward my sincere thanks to MBA

Programme Coordinator Dr.M.Parameswaran,
M.Com.,M.Phil.,MBA.,Ph.D., PGDLA., DCO., for giving me an
opportunity to conduct a study and take part in this Summer
Internship Training Programme.

I acknowledge my heartfelt thanks to my summer

internship guide Mr.NAGARAJ for his valuable guidance,
suggestions and encouragement from time to time throughout the
Summer Internship Training Programme.

I thank all the Deputy Director and Faculty Members

of the Institute for all the support provided related to the Summer
Internship Programme.

I convey my thanks to RELIANCE HR PERSONNEL for all

the support and information provided related to the Summer
Internship Training Programme.

I also like to record with gratitude to the Office staf

members, staf members of Department of Management studies
and the librarian for their timely assistance.
V
CONTENTS
 CHAPTER NO. CONTENT PAGE NO

CHAPTER I INDUSTRY PROFILE

CHAPTER II ORGANIZATION
PROFILE

CHAPTER III SWOT Analysis of the

Organization

Conclusion
CHAPTER IV

VII

CHAPTER-I
1. INTRODUCTION
The pharmaceutical industry in India is the world’s third-largest in terms of volume.
According to department of pharmaceutical of the Indian ministry of a chemical and
fertilizers, the total turnover of India’s pharmaceuticals industry between 2008 and September
2009 was US$ 21.04 billion. While the domestic mark was worth US$12.26 billion. The
industry holds a market share of $14 billion in the United States.

According to India brand equity foundation, the India pharmaceutical market is likely to
growth at a compound annual growth rate (CAGR) of 14-17 percent in between 2012-16.
India is now among the top five pharmaceutical emerging markets of the world exports of
pharmaceutical products from India increased from US$ 6.23 billion in 2006-2007 to US$ 8.7
billion in 2008-2009 a combined annual growth rate of 21.25%. According to price water
house coopers (PWC) in 2010. India joined among the league of top 10 global
pharmaceuticals markets in terms of sales by 2020 with value reaching US$50 billion.

The government started to encourage the growth of drug manufacturing by Indian companies
in the early 1960s, and with the patents act in 1970. However, economic liberalization in 90s
by the former Prime Minister P.V. Narasimha Rao and the then finance minister composition
patents from food and drugs, and though it kept process patents, these were shortened to a
period of five to seven years.

1.2 Origin of the industry

The number of purely Indian pharmacy companies is fairly less. Indian industry is
mainly operated as well as controlled by dominate foreign companies having subsidiaries in
India due to availability of cheap labor in India at lowest cost. In 2002, over 20,000 registered
drug manufacturers in India sold $9 billion worth of formulation and bulk drugs. 85% of
these formulations were sold in India while over 60% of the drugs were exported, mostly to
the United States and Russia. Most of the players in the market are small to medium
enterprises 250 of the largest companies’ control 70% of the Indian market. Thanks to the
1970 patent act, multinationals represent only 35% of the market, down from 70% thirty
years ago. Most exclusively from the lowest ranks to high level management. Homegrown
pharmaceuticals, like many other businesses in India, are often a mix of public and private
enterprises.
PRODUCT DEVELOPMENT AND PRESENT STATUS OF INDUSTRY

Indian companies are also starting to adapt their product development processes to the new
environment. For years firms have made their ways into the global market by researching
generic competitors to patented drugs and following up with litigation to challenge the patent.
This approach remains untouched by the new patent regime and looks to increase in the
future. However, those that can offer it have set their sights on an even higher goal, new
molecule discovery.

Small and medium enterprises

As promising as the future is for a whole, the outlook for small and medium enterprises
(SME) is not as bright. The excise structure changed so that companies now have to pay a
16% tax on the maximum retail price (MRP) of their products, as opposed to on the ex-
factory price. Consequently, larger companies are cutting back on outsourcing and what
business is left is shifting to companies with facilities in the four tax- free states- Himachal
Pradesh, Jammu & Kashmir, Uttaranchal and Jharkhand.

Challenges

Even after the increased investment, market leaders such as Ranbaxy and Dr.Reddy’s
Laboratories spent only 5-10% of their revenues of R&D, lagging behind western
pharmaceuticals like Pfizer, whose research budget last year was greater than the combined
revenues of the entire Indian pharmaceutical industry.

Pharmaceuticals and biotechnology

Bio- tech there still plays the role of pharmacy little, but many out sides have high
expectations for the future. India accounted for 2% of the $41 billion global biotech market
and in 2003 was ranked 3rd in the Asia-Pacific region and 11 th in the world in number of
biotech. In 2004-2005, the Indian bio tech industry saw its revenues grow 37% to $1.1
billion. The Indian biotech market is dominated by bio pharmaceuticals.

Comparison with the overall biotechnology industry

The Indian biotech sector parallels that of the US in many ways. Both are filled with small
start-ups while the majority of the market is controlled by a few powerful companies. Both
are dependent upon government grants and venture capitalists for funding because neither
will be commercially viable for years. Pharmaceutical companies in both countries have
recognized the potential effect that biotechnology could have on their pipelines and have
responded by either investing in existing starts-ups or venturing into the field themselves of
growth potential.

Government support for biotechnology

The Indian government has been very supportive. It established the department of
biotechnology in 1986 under the ministry of sciences and technology. Since then there have
been a number of dispensations offered by both the central government and various states to
encourage the growth of the industry. India’s science minister launched a program that
provides tax incentives and grants for biotech start-ups and firms seeking to expend and
establishes the biotechnology parks society of India to support ten biotech parks by 2010, to
land to utilities.

Foreign investment in biotechnology

The government has been also taken steps to encourage foreign investment in to biotech
sector. An initiative passed earlier this year allowed 100%, foreign direct investment without
compulsory licensing from the government. In April, a delegation headed by the Kapil Sibyl,
the minister of science and technology and ocean development.

The government has addressed the problem of education but unqualified candidates in its
Draft National Biotech Development Strategy.

This plan include a proposal to create a national task force that will work with the biotech
industry to revise the curriculum for undergraduate and graduate study in life sciences and
biotechnology.

GROWTH AND DEVELOPMENT OF BIOTECH INDUSTRY

Not a biotech conference goes by these days without a discussion about new models for
financing of exiting companies, and Bio Pharm America in Boston this week is no difficult.
I’m on a panel discussing the topic on Wednesday afternoon.

New models come up all the time because were an industry in the midst of dynamic change
and adaption, changing(and shrinking) mix of venture funds, increasing role of
corprationorate venture and efforts, largely inaccessible IPO market, LP perception about life
science returns.

Tech offering asset class allocations, fund size math pressures, the capital efficiency
imperative, etc… Many of these topics have been discussed before in this belong.

Drug Discovery platforms; LLC Holding Company Model

Instead of building drug discovery plays as singular entities (simple C-crop), we believe that
taking a more modular approach to discovery engines through the creation of LLC holding
company structures can optimize value. The figure below captures the set up.Here’re the key
elements to the structure: The LLC itself is passive and non- operating. This makes for a
more tax efficient model for institutional investors (a straight LLC can work well if
individual investors are involved rather than VCs). The team and the technology platform
itself are housed in a subsidiary C-crop (“Mgmt.Corpration”), which sets up all the master
services agreements and such. Each drug program, right before generating valuable IP, should
be moved into its own C-crop subsidiary of the LLC- the data packages and IP related to a
program are all housed in their own entries. A variant of this subsidiary model is to put
several related programs into a single subsidiary- assuming that the “exit path” for that basket
of programs is the same then makes sense.

More importantly, this model also enables the potential for an “evergreen” biotech
model-since you don’t have to sell the entire company to generate returns, and you don’t need
to take a corporation company public to get liquid, this LLC holding company model enables
you to invest, build, and harvest returns out of a drug discovery engine over much longer time
frames. It’s basic to argue for “going longer” when you’re sitting on healthy return already.
This feature certainly has real appeal to many management teams that want to build a lasting
company is the current ecosystem.
 It’s worth nothing that is free, so this structure costs something, Care must be taken
track the flow of funds for accounting reasons across these entities- which requires more
sophisticated finance expertise. You also need more lawyer time to get this structure in place
and maintain the appropriate government. But these costs are dwarfed by the potential
benefits.

We set up our atlas venture development (AVDC) initiative to push these types of deal
forward in 2010, and our shire alliance in 2012 is a variant of this theme. Several other
groups have recently announced efforts to also seek deals of this type, including CMEA’s
velocity initiate. I’m not sure how many have been done in total across the industry, but to
date we’ve closed two such transaction.

1.2.4 BIOTECH PRODUCTS SURVEY AND FUTURE PROSPECTS OF

INDUSTRY

The survey addresses the following questions. What are the characteristics and activities of
firms that develop and/or produce bio products as an important part their use of biomass and
other renewable/ suitable biomaterial, the types and number of bio products being developed,
benefits and constraints related to developing bio products, human resources devoted to bio-
products, financial profile, business practices, access to financing capital and the use of
government support programs.

Examples of excluded bio-products are e.g. food, nutraceutical, feed, medicines, structural
lumber, dimensional wood products, paper, and conventionally made fiberboards, wood
pellets, parallel, oriented strand board (OSB), composite wood products, and compost.

The purpose of this program is to develop useful indicators of S&T activity in Canada based
on a framework that ties them together in a coherent picture.

Subjects

Biotechnology
 Science and technology
Data sources and methodology
Target population
Excluded from the survey were not-for-profit organizations, universities, government,
laboratories, hospitals, firms that provide only services, such as contract research
organization or consulting firms, firms the only provide technology to bio-products producers
and those firm involved in biomass improvement only.

Sampling

This survey is a census with a cross-sectional design

The frame is constructed from three sources

Enterprises from the BR that were in scope during the 2006 occasion of the bio-
product survey.
Lists of firms obtained from federal partners, provincial/ territorial bio-products
industry associations and industry.

Imputation

Mandatory questions on the survey were not imputed. These questions deal with the type of
bio-products and the stage of development there were in. as well the type and amount (in
metric tonics) of biomass used. Imputation for partial or total non-response by a respondent
with similar characteristics, in this survey, the province, and the sector of activity and the size
of the firm.

Estimation

In order to palliate for non-response, an adjustment factor for weighting was applied to the
homogeneous response groups created from the sector of activity mentionable previously.

Quality Evaluation
 The data quality was insured by taking into account and applying throughout the survey
process all 6 dimensions of data quality control at statistics Canada, namely, relevance of data
collected their Accuracy, timeliness, accessibility, interpretability and coherence.

The bio products production and development survey response rate was 58.5%

Biotechnology product manufacturing report

Companies in this industry manufacture drugs, therapies, vaccines, genetically modified food
and fuel, and other products based on genetically manipulated compounds. Major companies
include US-based Amgen, Bio-gen idea, Genentech (owned by Switzerland-based Roche),
and Monsanto as well as Can gene (Canada). CSL (Australia), Merck KGAA (Germany), and
the biotech research arms of major international pharmaceutical companies such as sanofi
(France, own Genzyme)

Competitive Landscape

Demand for biotechnology in the fields of medicine, agriculture, food and science is driven
by insurer’s willingness to pay for new medical treatment, the global need to produce.

Products, operations & technology

Biotechnology is used to produce drugs, Therapies, vaccines, and diagnostic tests it’s also
used to produce genetically modified(GM) plants and crops; DNA fingerprinting;
environmental biotech products that aid in the clean-up of hazardous waste and industrial
biotech applications that help numerous sectors produce less waste and use less energy and
water.

Products, Operations & Technology

Biotechnology is used to produce drugs, therapies, vaccines, and medical diagnostic tests, it’s
also used to produce genetically modified (GM) plants and crops; DNA fingerprinting;
environmental biotech products that aid in the clean- up of hazardous wastes; and industrial
bio tech applications that help numerous sectors produce less waste and use less energy and
water.

Product life cycle

As part of our mission to help Canadians maintain and improve their health, we evaluate and
monitor the quality, efficacy and safety of biotechnology- based products throughout their life
cycle.

Product life cycle refers to all stages in the pre and post- market “life” of a health product,
including:

Pre-clinical studies
Clinical trials
Submission of product Information to health Canada for review and evaluations
Decision whether to authorized sale of the product in Canada
Public access to the product
Post-market surveillance, inspection and investigation.
Review and Evaluation
As with all health product, manufactures who want to sell biotechnology based health product
in Canada must submit detailed information to health Canada about

Packaging and labelling

Therapeutic or diagnostic claims for the product
Conditions for use and potential side effects
In the case of biologics, manufacturers must also provide samples of at least three lots of the
product for testing as part of our product evaluation activities

When we receive a new biotechnology based health product submission, we:

Screen the content to make sure it is complete and of suitable quality to be reviewed
Do a thorough review of all information to assess the potential benefits and risks of
the product, and
Review the information that the manufacturer proposes to give to health care
providers and consumers (for examples, on the later or in the product monograph)

Education, Consultation and information

We encourage industry, consumer and other stockholders to take part in developing health
and safety standards and policies for health products. We promote compliance through
educational activities and information sharing on regulatory issue.

When we have reason to suspect a product or activity may not be following regulations, we
investigate to verify the information. If there is a problem, we work with the party
responsible to correct it.

Enforcement

If a party is unable or unwilling to comply with regulations we take enforcement action. The
type of action depends on a number of factors, including.

2.2 CURRENT STATUS IN ORGANISATION

Production planning and control department is one of the important department for the
apparel manufacturing company. In the context of the apparel manufacturing primary roles of
the production planning and control (PPC) department has been listed below. Each functions
has been explained briefly just overview about the task. To know details about the task read
related articles.

Job or Task Scheduling: Preparation of time and action calendar for each order from order
receiving to shipment. The job schedule contains list of task to be processed for the styles.
Against each tasks planner mentions when to start a task and what is dead line for that task.
Name of responsible person (department) for the job is being listed. For example, scheduling
planned cut date (PCD), line loading date etc.

Material resource planning (inventory):

Preparation of material requirement sheet according to sample product and buyer

specification sheet. Consumption of material (fabric, thread, button, and twill tape) is
calculated and estimated cost of each material.

Loading production:

Planner defines which style to be loaded to the production line and how much quantity to be
loaded.

Process selection & planning:

Processes needed to complete an order very style to style. According to the order (customer)
requirement PPC department select processes for the orders. Sometimes extra processes are
eliminated to reduce cost of production.

Facility location:

Where a company has multiple factories (facilities) for production and factories are set for
specific product, planner needed to identify which facility will be most suitable for new
orders. Sometimes there may be a capacity shortage in a factory, in the case planner needed to
decide which facility will selected for that orders.

\Estimating quantity and costs of production:

Planner estimate daily productions (units) according to the styles work content. With the
estimated production figure, production and manpower involvement planner also estimate
production cost per pieces.

Capacity planning:

PPC department plays a major role during order booking. They decide (suggest) how much
order they should accept according to their production capacity. Allocating of total capacity
or deciding how much capacity to be used for an order out of total factory capacity. Regularly
updating factories current capacity (production capacity).

Line planning:

Preparing detailed line planning with daily production target for the production line. Most
cases line planning is made after discussing with production team and industrial engineers.

Follow up and execution:

Whatever plan is made is executed by PPC department. PPC department keeps close whether
everything is progressing according the plan. Chasing other department heads on daily basis.

CHAPTER-II
COMPANY PROFILE

Caplin Point was established in 1990 to manufacture a range of ointments, creams and other
external applications.

The Company was listed in 1994 following its IPO which was oversubscribed 117 times, the
proceeds of which were deployed in setting up a manufacturing facility at Pondicherry.
Thereafter, the Company expanded its product range and increased its production capacity.

The Company focused on the emerging markets of Latin America, Caribbean, Francophone
and Southern Africa and is today one of the leading suppliers of Pharmaceuticals in these
regions, with over 2000 product licenses across the globe.

The Company is entering into the Regulated Markets for Injectable through its state of the art
manufacturing plant, capable of handling Liquid Injectable in Vials, Ampoules, and
Lyophilized Vials and Ophthalmic dosages. The facility is approved by US FDA, EU-GMP,
ANVISA-Brazil and INVIMA-Colombia.

VISION
Caplin Point aims to create new niches in our existing markets to ensure the current foothold
remains strong and innovative. We envisage implementing our unique business model across
the globe to ensure access to quality medicines at affordable prices.

MISSION
Innovate to change the rules of the game and not to compete in the game. Innovation
distinguishes between a leader and a follower.

MANUFACTURING FACILITIES
Caplin Point-I
Caplin Point Laboratories Ltd Unit-I (CP-I) is a WHO-GMP approved facility, situated in
Suthukeny, which is about 20 km from Pondicherry.

The company has the facilities to manufacture:

Sterile Penmen Injectable

Tablets

Capsules

Liquid Orals (Syrup & Suspension)

Soft Gelatin Capsules

Dry powder for Oral Suspension

Suppositories and Ovules

Location: Suthukeny, Pondicherry

Caplin Point-II
Caplin Point has set up a dedicated pharmaceutical R&D facility with capabilities to develop
safe and effective formulations. Sophisticated facilities and resources are available to develop
dosage forms like Tablets, Capsules, Semi-solids (including suppositories), Liquid orals,
Granules and Soft Gel tin Capsules. The R & D facility is having separate teams for
formulation development and analytical development. R & D scale stability studies, forced
degradation studies, method development and validations are carried out in-house.

Locations of plants
The following range of services are provided:

Design and development of new dosage forms as per customer needs

Process improvements and optimization

Stability studies as per ICH guidelines

Analytical development and Method validations as per ICH

Technology transfer of new developed formulations

Dissolution profiles as per CDER/EU guidelines

 Location: Gummidipoondi, Chennai

Caplin Point-IV
Caplin Point Laboratories Limited, Unit – IV (CP-IV) is a US FDA, EU-GMP,
ANVISA and INVIMA approved manufacturing facility handling Pharmaceutical
formulations in Specialized Injectable dosage forms and Ophthalmic drops. The facility is
designed with a high level of sophistication and automated process control and is in
compliance with norms stated by US FDA, UK MHRA and other regulatory bodies belonging
to PIC/s.

The Site has a dedicated facility for formulation development, analytical development and
stability department for product development in sterile dosage forms.

CP-IV is capable of handling general category and specialized category injectable dosages in
Vial, Ampoules, Lyophilized Vials and Ophthalmic dosages.

The plant capacity is:

Ampoules: 25 Million units per annum

Vial: 25 Million units per annum

Lyophilized Vials: 1.2 Million units per annum

Ophthalmic: 12 Million units per annum

Location: Gummidipoondi, Chennai

RESEARCH & DEVELOPMENT

 Caplin Point has 2 DSIR approved dedicated R&D setups with capabilities to develop
safe and effective formulations. Caplin Point has a team of over 80+ scientists working on
development of varied dosage forms such as injectable, Soft Gelatin Capsules, Suppositories,
Tablets, Capsules, Semi-solids and Liquid orals.

Separate teams work on formulation development and analytical studies of molecules for
Regulated and Emerging markets. R & D scale stability studies, forced degradation studies,
method development and validations are carried out in house. The Caplin R&D teams
continue to grow in strength each year, taking on complex challenges across varied
formulations.

GLOBAL INFRASTRUCTURE
 Caplin Point is headquartered in the Southern Indian city of Chennai, with close
access to its manufacturing units and the Chennai seaport. Corprationorate team of 140+
personnel handle various areas from Finance, Administration, Regulatory, HR, PPIC, Supply
Chain and Corprationorate QA from Chennai.

Caplin Point has branches and subsidiaries established in China and Hong Kong, and
is in the process of establishing more subsidiaries in Colombia and other locations, as part of
its expansion strategy.

PRODUCTS
Product list shall be shared on execution of CDA.

All Products

Tablets

Liquid Orals

Capsule

Soft gel Capsules

Suppositories & Ovules

Powder for Injection

Dry syrup

Topical
Liquid Injections

Inhalers

Ophthalmic

IV Infusion

Lyophilized Products

Branded Products

Derma Cosmetics

Other Products

OUR BUSINESS
The success of Caplin Point is primarily attributed to its unique business model. Starting of as
an SME, Caplin Point decided at an early stage that the conventional style of exports would
mean diminishing margins and reduced opportunities for expansion, and had taken the unique
step of creating last mile logistical solutions for its exclusive distributors across Latin
America and various parts of Africa. This way, Caplin Point is able to generate adequate
revenue and cash flow to remain debt-free with benchmark receivables, and also continue to
invest in state of the art manufacturing facilities from internal accruals. One of the main
reasons for the success can be attributed to the wide range of products offered across diverse
geographies. Caplin Point has over 2000 products licenses across the globe with a further 300
in the pipeline for emerging markets.

Caplin Point has made a foray into the regulated markets with its latest manufacturing facility
that is already approved by EU-GMP and ANVISA-Brazil. The facility is awaiting the
coveted US FDA approval for injectable in the near future.

CHAPTER - III
SWOT ANALYSIS
STRENGTHS:

 Abundant raw material availability that helps industry to control costs and
reduces the lead-time across the operation
 Availability of low cost and skilled man power provides competitive
advantages to industry
 Availability of large varieties of cotton fiber and has a fast growing
synthetic fiber industry
 The company has great advantages in spinning sector and has a presence in
all process of operation and value chain
 The company has large and diversified segment that provide wide variety
of products
 Growing economy and potential domestic and international market
 The company has manufacturing flexibility that helps to increase the
productivity

WEAKNESS:

 The company is highly dependent on cotton

 Lower productivity in various segments
 There is declining in mill segment
 Lack of technological development that affect the productivity and other
activities in whole value chain
 Lack of proper modes of distribution and time consumed in transmit

 Lack of trade membership, which restrict to top other potential market

 Lacking to generate economic of scale
 Higher indirect taxes, power and interest rates.

OPPORTUNITIES:

 Large potential domestic and international market

 Product development and diversification to cater global needs
 Market is gradually shifting towards branded readymade garment
 Increased new market development
 Emerging retail industry and malls provide a huge opportunities fair the
apparel, handicraft and other segments of the industry
 Greater investment and FDI opportunities are available
 THREATS:

 Competitive from other developing countries, especially chain

 Continuous quality improvement is need of the hour as there are different
demand patterns all over the world
 Threats for traditions product diversification
 Geographical disadvantages
 International labor and environment laws
 To balance the demand and supply

FINANCIAL DEPARTMENT

The part of an organization that manages its money. The business functions of a
finance department typically include planning, organizing, auditing, accounting for and
controlling its company’s finances. The finance department also usually produces the
company’s financial statements.

Strategic Budgeting

One of the main goals for your finance department should be to create and
monitor not only your overall company budget, but a variety of functional or department
budgets, as well. Budgeting requires research to estimate accurate revenue levels based on
demand forecasting. Using annual budget projections, your accounting staff can help you
targets for profits goals and for overhead and production spending levels.

Overhead includes costs such as phones, rent and margining, while production
costs are those related to marketing your product. Create monthly or quarterly budget
variance analyses to see if you’re on track with your revenues and spending or if you need to
make changes before expenses get out of hand.

Cost Containment

To ensure you get the best quality at the lowest price for material, suppliers and
service, make purchasing management one of the duties of your finance department. Require
that employees get multiple or present some justification for large purchases and have your
vendors, suppliers and contractors their contracts each year. Look for trends in spending
levels to determine where you can cut costs without sacrificing quality.

Cash flow management

 The bill are due and when you can export payment from customers you have
billed or others sales revenues is critical for any small business. It’s not enough to show a
profit on pare and your finance function should help you manage your working capital and to
ensure you have enough to pay your bills at all times. Make receivables management a key
role for your finance department.

Debt service

The debt get out of control can have serious long-term impacts on your business.
Keep an eye on your credit use, including interest an units you are generating the scheduling
of your payments and the status of your credit report and scores.

Tax planning

Don’t wait until the end of the year to find out what your income tax liability is
USA proactive strategies to lower your tax burden, such as depreciating assets and offering
voluntary benefits to employees that help you lower payroll tax.

Accurate record keeping

The most important objectives of any finance department is to keep accurate

financial records. This includes helping you meet your legal requirements and ensuring you
don’t spend more than you have by accident. Consider external audits to prevent fraud and
institute policies and procedures for controlling contracts and payments.

1. Investment decision

The investment decision involves the evaluation of risk, measurement of cost of

capital and estimation of expected benefits from a project. Capital budgeting and liquidity are
the two major components of investment decision. Capital budgeting is concerned with the
allocation of capital and commitment of funds in permanent assets which would yield
earnings in future. Capital budgeting also involves decisions with respect to replacement and
renovation of old asset in order to maximize profitability and to maintain desired liquidity in
the firm.

2. Financing decision
 The investment decision involves decision with respect to composition or mix of
assets, financing decision is concerned with the financing mix or financial structure of the
firm. The raising of funds requires decisions regarding the methods and sources of finance,
relative proportion and choice between alternative sources, time of floatation of securities etc.
In order to meet its investment needs a firm can raise funds from various sources.

The finance manager must develop the best finance mix or optimum capital
structure for the enterprise so as to maximize the long-term market price of the company’s
shares. A proper balance between debt and equity is required so that the return to equity
shareholders is high and their risk is low.

3. Dividend decision

In order to achieve the wealth maximization objective an appropriate dividend

policy must be developed. One aspect of dividend policy is to decide whether to distribute all
the profits in the form of dividends or to distribute a part of the profits and retain the balance,
while deciding the optimum dividend payout ratio (preparation of net profits to be paid out to
shareholders).

The finance manager should consider the investment opportunities available to the
firm, plans for expansion and growth etc. Decision must also be made with respect to
dividend stability, from of dividends, i.e., cash dividends or stock dividends, etc.

4. Working Capital Decision

Working capital decision is related to the investment in current assets and current
liabilities. Current assets include cash, receivables, inventory, short-term securities, etc.
Current liabilities consist of creditors, bills payable, outstanding expenses, bank overdraft,
etc. Current assets are those assets which are convertible into a cash within a year. Similarly
current liabilities are those liabilities, which are likely to mature for payment within an
accounting year.

MARKETING DEPARTMENT

The marketing department has overall responsibility for growing revenue,

increasing market share and contributing to company growth and profitability. In a small
business, the marketing department may just be one person it may include a marketing
director or manager plus marketing executives responsible for functions such as advertising,
publications or events.

Strategy

The senior member of the marketing department takes responsibility for setting
marketing strategy in line with overall company strategy and objectives. The marketing
department reaches agreement on strategy with the board or senior management team before
planning campaigns detail.

Market Research

The market research is a key responsibility for the market department. Research
helps the company identify market opportunities and gain a better understanding of customer
needs. It also helps them understanding competitor’s strengths and weakness so they can take
action to protect business with existing customers or win business from weaker competitors.

The department can carry out its own research by studying industry reports,
markets data on website or by contacting customers and prospects to survey their needs and
attitudes. Alternatively they can brief a market research firm to carry out the research the
marketing department workers with internal or external product development teams to
develop new products or improve existing ones. The department analyzes sales of existing
products and identifies in the product range where there may be opportunities for the
company.

Marketing employees provide development teams with information on customer

needs and preferences to help them identify the features or improvements to incorprationorate
in new products. Later in the product development process, the marketing department sets
prices and prepares plans to launch the product.

Communications

The marketing departments plan company and develop communications material

to promote products and services to customers and prospects. Depending on their available
budgets, they may plan advertising campaigns, develop e-mail marketing programs, create
promotional content for the company website, write press release or product publications,
 such as product leaflets, company brochures, products data sheets or customer newsletters.
They may write and design the promotional material if they have skills within the department
or they may appoint advertising agencies or design firms to produce the work.

Sales support

The sales and marketing departments can improve sales performance and speed up
business growth. The marketing department can provide sales teams with high-quality leads
by running advertisement that include a reply mechanism, such as a coupon or telephone
number, or by encouraging visitors to the company website to register their details in return
for a free newsletter or special report.

Marketing department organizational structure

The organizational structure of the marketing department of a company can very

according to the individual company. Small companies may consist of one or two marketing
employees and larger organizations may have dozens of marketing employees on staff person
is in the marketing department.

Vice president

The person in charge of the entire marketing department is generally known as the
vice president of marketing. The vice president is involved in planning and creating the
marketing strategy for the company, its products or its service. The vice president is also the
person that the order marketing employees ultimate report. The liaison between the marketing
department and upper management or the owners of the company.

Marketing department

The marketing manager and marketing director are often interchangeable in the
world of marketing. A marketing manager typically has the responsibility of carrying out the
company. This includes creating marketing messages, choosing mediums such as website
advertising and print advertising and carrying out other marketing campaigns and programs
to reach the target audience of the company.
 The marketing manager reports to the vice president and generally managers the
rest of the marketing employees. In product based companies that have different product lines
a marketing manager may exist for each product line.

Marketing researchers

The companies also employ market researchers. Market researchers find out
information about the target audience of the company as well as the company’s competitors.
Market researchers can employ tools, such as surveys and focus groups to help them uncover
information and statistic or use publications, such as the US census to obtain information.

The research information and statics found by the market researchers are used by
the marketing manager to create the programs and messaging. Small to medium size
companies tend to hire a third party source for market research rather than have a full-time
market research staff. Large organizations employ its own market researchers.

Public relations

The employees that handle public relations in the organization handle the non-paid
forms of advertising the company utilizes to promote the business. Public relations is a subset
of marketing, but while a marketing manager focuses on managing the marketing budget by
choosing the right forms of advertising, public relations is generally free. Public relations
may produce and submit press release to the local or national media in an effort to attract
attention to the company.

HUMAN RESOURCES DEPARTMENT

As employees are the key to the organization’s success, the company has shown
its utmost commitment towards its employees by providing welfare activities are given by the
company to its employees.

Human resource management serves these key functions

 Recruitment and selection

 Training and development
 Performance evaluation and management
 Promotion
 Redundancy
  Industrial and employee relations
 Record keeping of all personal data
 Compensation, pensions, bonus etc., in liaison with payroll
 Confidential advice to internal customers in relation to problems at work
and career development

Welfare measures

Employee’s welfare:

 Urinal and latrines

 Washing and bathing facilities
 Canteens
 Good drinking water
 Health service
 Industrial safety
 Protective clothing

Administrative welfare:

 Maternity benefits
 Social insurance measuring like gratuity, provident fund etc.,
 Medical facilities
 Educational facilities
 Housing facilities
 Leave and travel facilities
 Recreations facilities

Labor welfare:

 Statutory welfare works

 Mutual welfare works

Staff and workers

AEON Fashion industry has 100 employees totally. Out of which 56 male and 44
female employees are working. It includes skilled employees, unskilled employees, labor and
technicians. Labors are engaged at contract basis based on seasonal and demand basis.

Number of working hours and number of shifts

1. 8.30am to 4.00pm
2. 5.00pm to 11.30pm
3. Breaks two times for 10 minutes and rest time is % hours for every shift
4. The total working time is 8 hours and for the extra working time the
employees are given salary who are working for the welfare of the company willingly.
 CHAPTER-IV
CONCLUSION

The processing unit of AEON industry is very well organized with each
department talking care of specific tasks. There is good networking between each department
which adds to the smooth working of knitting. AEON industry also has an effluent treatment
plant and the operations of AEON industry are very friendly.

Achieving energy efficiency in corprationorative set up has implications. The

tradeoff between energy concern and livelihood concerns are at the core of these implication.

AEON industry has taken this perspective very seriously and hope to mix the
welfare concerns of human population as well as environmental concerns of mother earth in
the future too. The training session was very motivating for instrumentation management
students and gives and overview about how instrumentation career is implemented in the
industry and hoe and manager can work for common man.
.