“an in-depth study of laminates...
TRANSCRIPT
“AN IN-DEPTH STUDY OF LAMINATES INDUSTRY”
Management Research Project -I Submitted
In the partial fulfillment of the Degree of
Master of Business Administration
Semester-III
By
Name En. No. Brahmaniya Ravi R 13044311011 Chaudhary Dhaval D 13044311012
Oza Pintu J 13044311046 Patel Himanshu M 13044311072 Patel Nehal B 13044311094 Soni Dhruvil S 13044311134
Under the Guidance of: Prof. (Dr.) Mahendra Sharma
Dr. Harsha Jariwala Dr. Abhishek Parikh
Submitted To: V. M. Patel Institute of Management,
Ganpat University, Kherva.
December - 2014
CERTIFICATE BY THE GUIDE
This is to certify that the contents of this report entitled “In Depth Study of laminates Industry”
by Brahmaniya Ravi R, Chaudhary Dhaval D, Oza Pintu J, Patel Himanshu M, Patel Nehal B,
Soni Dhruvil S submitted to V. M. Patel Institute of Management for the Award of Master of
Business Administration (MBA Semester -III) is original research work carried out by them
under my supervision.
This report has not been submitted either partly or fully to any other University or Institute for
award of any degree or diploma.
Prof. (Dr.) Mahendra Sharma, Professor & Head, V. M. Patel Institute of Management, Ganpat University. Kherva. Date : 08/12/2014
Place : Kherva, Ganpat university
CANDIDATE’S STATEMENT
We hereby declare that the work incorporated in this report entitled “In Depth Study of
Laminates Industry” in partial fulfillment of the requirements for the award of Master of
Business Administration (Semester - III) is the outcome of original study undertaken by us and it
has not been submitted earlier to any other University or Institution for the award of any Degree
or Diploma.
Name En. No.
Brahmaniya Ravi R 13044311011
Chaudhary Dhaval D 13044311012
Oza Pintu J 13044311046
Patel Himanshu M 13044311072
Patel Nehal B 13044311094
Soni Dhruvil. S 13044311134
Date: 08/12/2014
Place: Kherva, Ganpat University
PREFACE
Practical study plays a vital role in the field of education. It has been introduced for the student
to get practical knowledge along with theoretical knowledge only bookish knowledge is not right
way of learning anything especially for the management students. How management principals
are implemented in business can only be known through practical study, students can be very
well aware about industrial environment like problems, opportunity, different situation etc. this
helps the student to have better understanding and also give them a chance to show their skills
and ability.
The principal concern of this report is to reveal our learning of practical business scenario. In
writing this report we have drawn vast amount of the information from various senior people and
simultaneously supplemented by various other people, annual reports, letters, journals etc.
Here, we are presenting a project on the different concept that we saw, fill and experience, while
the work on the project report. We have tried our level best to do the proper justification with our
work in this project.
Name En. No.
Brahmaniya Ravi R 13044311011
Chaudhary Dhaval D 13044311012
Oza Pintu J 13044311046
Patel Himanshu M 13044311072
Patel Nehal B 13044311094
Soni Dhruvil. S 13044311134
ACKNOWLEDGEMENT
It was really difficult for us to complete the management research project without getting co-
operation of certain people. In other words there are so many external people who directly or
indirectly help us in my management research project.
First of all, we are very grateful to our collage H.O.D. Prof. MAHENRA SHARMA for his able
leadership and our project Report who providing their valuable time and guideline to me
regarding the management Research project report.
We are also thankful to Dr. Harsha Jariwala and Dr. Abhishek Parikh who gives guideline our
group to do management research report in their college and helped us by giving all the required
information for a period. We are also thankful to our friends who help us and guide us.
Name En. No.
Brahmaniya Ravi R 13044311011
Chaudhary Dhaval D 13044311012
Oza Pintu J 13044311046
Patel Himanshu M 13044311072
Patel Nehal B 13044311094
Soni Dhruvil. S 13044311134
CONTENTS
Sr. No Particular Page No.
Certificate by the guide i
Candidate’s statement ii
Preface iii
Acknowledgement iv
1 Introduction of the industry 1
1.1 Introduction of Industry 2
2 Major players of the industry 16
2.2.1 Alfa IcaLaminates 17
2.2.2 GreenplyLaminates 21
2.2.3 Styalam Laminates 25
2.2.4 Rammaica Laminates 30
2.2.5 Rushil Décor Laminates 32
3 Competitive analysis 38
3.1 PEST Analysis 39
3.2 Porter’s Five Force analysis 43
3.3 SWOT analysis 49
3.4 Driving forces 54
3.5 Key success factor 56
3.6 The Competitive Profile Matrix 60
3.7 Strategic Group mapping 63
3.8 Industrial dominate economic features 65
4 Financial analysis 67
5 B-plan of Laminates industries 89
6 Conclusion 104
7 Suggestions 106
8 Limitation 108
9 Bibliography 110
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CHAPTER 1
INTRODUCTION
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History
Laminate flooring was invented in 1977 by the Swedish company Perstorp, and sold under the brand
name Pergo. They had been making floor surfaces since 1923. The company first marketed its
product to Europe in 1984, and later to the United States in 1994. Perstop spun off its flooring
division as the separate company named Pergo, now a subsidiary of Mohawk Industries. Pergo is the
most widely known laminate flooring manufacturer, but the trademark PERGO is not synonymous
for all laminate floors. Glue less laminate flooring was invented in 1996 by the Swedish company
Välinge Aluminum (now Välinge Innovation) and sold under the names of Alloc and Fiboloc.
However, a system for holding flooring panels together was also developed in parallel by the Belgian
company Unilin and released in 1997.The two companies have been in a great number of legal
conflicts over the years, and today most, if not all glue less locking flooring is made under license
from either Välinge, Unilin, or even a combination of both
The Benefits
There are many benefits to choosing a laminate floor over other types of flooring. Laminate flooring
is quite versatile and durable. Due to laminate flooring being a printed strip of vinyl over a composite
board many textures and styles of flooring can be replicated. Recently laminate floors have seen
success in simulating stone and tile patterns as well as wood.
Cleaning laminate floors is easy and comparable to cleaning other hard surfaces such as hardwood
floors. It is generally not recommended to mop laminate floors as this has been shown to cause
damage by soaking into the composite portion which allows warping over time. Most manufacturers
suggest using dry methods such as brooms to clean with occasional wet cleaning with more
specialized mop-type products that do not leave excessive water on the flooring. Installation is a large
benefit of choosing laminate flooring. A generally handy person is well equipped to install laminate
flooring as the locking and floating aspects of laminmostly self-explanatory.
Laminates is the technique of manufacturing a material in multiple layers, so that the composite
material achieves improved strength, stability, sound insulation, appearance or other properties from
the use of differing materials. A laminate is usually permanently assembled by heat, pressure,
welding, or adhesives.
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Material
There are different Laminates processes, depending on the type of materials to be laminated. The
materials used in laminates can be the same or different, depending on the processes and the object to
be laminated. An example of the type of laminate using different materials would be the application
of a layer of plastic film the "laminate" on either side of a sheet of glass the laminated subject.
Vehicle windshields are commonly made by laminating a tough plastic film between two layers of
glass. Plywood is a common example of a laminate using the same material in each layer. Glued and
laminated dimensioned timber is used in the construction industry to make wooden beams, Glulam,
with sizes larger and stronger than can be obtained from single pieces of wood. Another reason to
laminate wooden strips into beams is quality control, as with this method each and every strip can be
inspected before it becomes part of a highly stressed component such as an aircraft undercarriage.
Building Materials
Examples of laminate material include melamine adhesive countertop surfacing
and plywood. Decorative laminates are produced with Kraft papers and decorative papers with a
layer of overlay on top of the decorative paper, set before pressing them with them processing into
high-pressure decorative laminates. A new type of HPDL is produced using real wood
veneer or multi laminar veneer as top surface. Woodlam, Real wood, Alpikord produced by Alpi spa
and Veneer-Art, produced by Lamin-Art are examples of these types of laminate. High-pressure
laminates consists of laminates "molded and cured at pressures not lower than 1,000 lb. per sq.
in.(70 kg per sq. cm) and more commonly in the range of 1,200 to 2,000 lb. per sq. in. (84 to 140 kg
per sq. cm). Meanwhile, low Pressure laminate is defined as "a plastic laminate molded and cured at
pressures in general of 400 pounds per square inch (approximately 27 atmospheres or 2.8 × 106
Pascal’
Laminate flooring is a multi- layer synthetic flooring product fused together with a lamination
process. Laminate flooring simulates wood (or sometimes stone) with a photographic appliqué layer
under a clear protective layer. The inner core layer is usually composed of melamine resin and fiber
board materials. There is a European Standard No. EN 13329: 2000 specifying laminate floor
covering requirements and testing methods.
Laminate flooring has grown significantly in popularity, perhaps because it may be easier to install
and maintain than more traditional surfaces such as hardwood flooring. It may also have the
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advantages of costing less and requiring less skill to install than alternative flooring materials. It is
reasonably durable, hygienic (several brands contain an antimicrobial resin), and relatively easy to
maintain.
Contents
• 1 Installation
• 2 Care
• 3 Consumer advocacy
• 4 Potential health effects and LEED status
• 5 History
• 6 The Benefits
• 7 References
• 8 External links
Installation
Laminate floors are reasonably easy for a DIY homeowner to install. Laminate flooring is packaged
as a number of tongue and groove planks - these can be clicked into one another. Sometimes a glue
backing is provided for ease of installation. Installed laminate floors typically "float" over the sub-
floor on top of a foam/film underlayment, which provides moisture- and sound-reducing properties.
A small (1–10 millimeters (0.039–0.394 in)) gap is required between the flooring and any immovable
object such as walls; this allows the flooring to expand without being obstructed.
Baseboards (skirting boards) can be removed and then reinstalled after lying of the flooring is
complete for a neater finish, or small beading trims can be fitted to the baseboards. Saw cuts on the
planks are usually required at edges and around cupboard and door entrances.
Care
It is important to keep laminate clean, as dust, dirt, and sand particles may scratch the surface over time in high- traffic areas. It is also important to keep laminate relatively dry, since sitting water/moisture can cause the planks to swell, warp, etc., though some brands are equipped with water-resistant coatings. Water spills aren't a problem if they're wiped up quickly, and not allowed to sit for a prolonged period of time.
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Adhesive felt pads are often placed on the feet of furniture on laminate floors to prevent scratching.
Inferior glue less laminate floors may gradually become separated, creating visible gaps between planks. It is important to "tap" the planks back together using the appropriate tool as gaps are noticed in order to prevent dirt filling the gaps, thus making it more difficult to put into place.
Quality glue less laminate floors use joining mechanisms which hold the planks together under constant tension which prevent dirt entering the joints and do not need "tapping" back together periodically.
Consumer advocacy
The North American Laminate Flooring Association (NALFA) is a trade association of laminate flooring manufacturers and laminate flooring manufacturer suppliers in the United States and Canada. It is a standards developing organization accredited by the American National Standards Institute (ANSI) to develop voluntary consensus standards for laminate flooring materials, and it has established testing and performance criteria that are used in North America.
NALFA issues a certification mark named the NALFA Certification Seal which signifies that the product has passed 10 performance tests, has been proven to meet these standards by an independent, third-party testing lab, and has been manufactured in North America. The certification review includes:
1. Static Load – Measures the ability of laminate flooring to resist residual indentation resulting from a static load.
2. Thickness Swell – Measures the ability of laminate flooring to resist increase in thickness after being exposed to water.
3. Light Resistance – Measures the ability of laminate flooring to retain its color when exposed to a light source having a frequency range approximating sunlight through window glass. It is not intended to show the resistance to continuous exposure to outdoor weathering conditions.
4. Clean ability and Stain Resistance – Measures both the ease of cleanability and stain resistance of laminate flooring to common household substances.
5. Large Ball Resistance – Measures the ability of laminate flooring to resist fracture due to impact by a large diameter ball.
6. Small Ball Resistance – Measures the ability of laminate flooring to resist fracture due to impact by a small diameter ball.
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7. Water Resistance – Measures the ability of the surface of laminate flooring to resist abrasive wear through the décor layer.
8. Dimension Tolerance – Measures the dimensional variance between tiles of laminate flooring in a manufactured free standing (unrestricted) shape in respect to thickness, length, width, straightness and squareness.
9. Castor Chair Resistance – Specifies a method for determining the change of appearance and stability of a laminate floor, including joints, under the movement of a castor chair.
10. Surface Bond – Measures the force required to delaminate or split away the surface of laminate flooring plank or tile.
Potential health effects and LEED status
Laminate flooring is often made of melamine resin, a compound made with formaldehyde. The formaldehyde is more tightly bound in MF than it is in Urea-Formaldehyde, reducing emissions and potential health effects. Thus LEED v2.2's EQ Credit 4.4 precludes the use of UF, but allows the use
Types of Laminates
In this article are going to take a look at the various types of decorative laminates, and the different
ways in which these laminates are usually classified. But for starters here's a brief word first about
what laminates are.
Decorative Laminates (a blend of paper and plastic resins) are hard and brittle sheets having a
thickness of around 1 mm, and are widely used as an overlay over wood, such as in the case of
laminated table tops, wood panels, or other wooden furniture. The sheets have a decorative surface
(made using decorative printed paper) and are manufactured in a wide variety of colors, design
patterns and textures.
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Classification of Laminates based on Manufacturing Process
HPL and LPL
The decorative laminate manufacturing process involves soaking brown paper, decorative paper, and
translucent paper in plastic based resins. The brown paper which forms the base is soaked in phenol
formaldehyde, while the other two papers are soaked in melamine resin. The soaked papers after
drying become hard and brittle. These papers are then pressed and bonded together under high
pressure and temperature. Depending on the amount of pressure used in the bonding process,
laminates can be classified as HPL (High Pressure Laminates) or LPL (Low Pressure Laminates).
High pressure laminates (HPL) such as those manufactured under the brand names of Sunmica or
Formica, are hard decorative sheets that are commonly fixed by carpenters over plywood while
making the furniture. In the case of Low Pressure Laminates (LPL) only the decorative paper is
soaked in Melamine resin, and the laminated paper is then directly bonded to Particle Boards or Fiber
Boards (MDF and HDF).
Regular Laminate sheets and Compact Laminates
The regular laminate sheets usually have a thickness that ranges from 0.6 mm to 1.5 mm, and these
sheets are glued by carpenters to substrate materials such as plywood using common adhesives like
Fevicol. There are also other thicker types of laminates manufactured called Compact Laminates
which have a thickness ranging from 3 mm to 30 mm. These Compact Laminates are self-supporting
and hence do not need to be glued to woods or any other material. Both the top and bottom sides of
compact laminates have decorative surfaces.
Types based on usage
Based on the final or intended use of the product, the laminates are of two type’s viz. Decorative and
Industrial. For decorative laminates the look and feel are the important aspects as they are commonly
used to decorate and protect wooden furniture, while for industrial laminates the focus is more on
having a surface that has higher strength, higher resistance to scratches and wear and tear, and which
is very durable. Industrial use products such as circuit boards are made using industrial laminate
materials.
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Classification of Laminates based on Surface Finish
Since Decorative Laminates are artificially created surfaces, they have a large variety in colors,
patterns and textures. Based on the surface finishing of the sheets, decorative laminates can be
classified as solid colour, floral patterns, gloss finished, matt finish laminates, wooden finish
laminates (which has designs that look like wood).
Laminate flooring is available in a number of different types, based on how the floor is installed.
However, there is only one type of Baker Bros. showroom. It’s the flooring showroom that creates,
communicates and celebrates style. If a single word can capture the heart and spirit of Baker Bros.,
that’s it.
Style is all about fashion and we dedicate ourselves to it every day, every way and everywhere
through the Baker Bros. motto: “Where Fashion Meets Flooring”.
And nowhere is this commitment to style greater than in our product portfolio.
Here on our website, and at all seven of our showrooms, you’ll discover an entire spectrum of high
quality laminate flooring; the best brands in laminate: Wilson art, Columbia, Laura Ashley, Bruce
and Alloc.
So many styles, so much selection, So many choices that, at Baker Bros. You are assured of more
products per square foot. It’s all showcased with your need for variety and personalization in mind.
Our showrooms average more than 8,000 square feet. That’s five times larger than the average
flooring retailer all for your viewing pleasure.
And to help you find your type of laminate flooring, we’ve created these pages. Because the number
of laminate choices, patterns, colors, textures and price points can intimidate even the most
experienced shopper.
Knowing the basic types of laminate installation can provide you with a firm foundation upon which
to begin your laminate shopping journey.
Now, other sections in this website let you see numerous laminate styles up front and personal.
This section explains laminate flooring types, and offers you the information you need to make smart
choices for you and your home.
So please read on and we promise to be as clear and helpful as possible.
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Fake looking laminates are history. If laminates looked the last time you checked, it’s time to check
again!
Today’s laminates are looking better and better, and often need close examination to be identified.
Because of the growing popularity of laminates, manufacturers are creating an increasing array of
traditional, rustic, and exotic wood grain designs. In fact, presses have improved to the point where
the texture imprinted on top of the design looks more real than ever, even with distressed wood or
natural stone designs.
Quality is a snap with multiple photographs.
The visual quality of the laminate partially has to do with the photography and the number of
photographs per style, which is known as "screens".
Here’s an example for you. When laminate flooring manufacturers emulate a natural stone tile, they
try to recreate the variation in color, pattern and texture that is a result of cutting a natural product.
The more screens a product has, the more variation it can offer. And the more “authentic” the
laminate looks.
Color can make all the difference.
Like any floor, select the laminate color to compliment the size and décor of your room and the
activities taking place in it.
Remember that lighter colors will make a smaller room appear larger, while darker colors will absorb
the light and create a more intimate setting.
Choose a color that either coordinates or contrasts with your cabinets and other furniture.
Avoid matching everything to the same color and style. Let your creativity guide you! And
remember, contrasts can make your room more interesting.
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Laminate flooring types – yours will be installed in one of these 4 forms.
Glue less laminate Flooring.
No mess, glue less installation makes these floors quick and easy-to- install. Glue less laminate
flooring is the largest segment of all laminate flooring installation today.
They come in a variety of ceramic and wood designs and colorations, as well as some manufacturers
offer a real, hardwood veneer instead of a printed layer. It looks amazingly hardwood- like.
These floors come in both planks and tiles. A thin, plastic underlayment is needed to seal out
moisture from below. (Remember, moisture is the enemy of your flooring.)
In fact, most laminate floors require a plastic underlay sheet (4 mil poly) be installed directly
underneath the laminate planks or tiles.
This helps the floor float freely over the subfloor. Another option is to add a vapor barrier or noise
reduction underlay before installing the laminate flooring.
Laminate flooring with attached underlay.
These floors come with several different types of tongue and grooved locking systems and an
attached underlayment to reduce noise levels.
Glued laminate Flooring.
These are the original laminate floors that do require a special formulated glue to be applied to the
tongue and grooved areas for each plank.
Once the glue is dried the planks are almost impossible to pull apart. These floors are offered in both
planks and tiles.
Pre-glued laminate Flooring.
No mess, because the glue is already applied to the tongue and grooves which makes these floors
quick and easy-to- install.
A thin, plastic underlayment is needed to seal out moisture and prevent the glue from sticking to the
substrate.
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Top off your laminate flooring with moldings.
Laminate moldings also affect the overall style and give your room a beautiful finished look.
Moldings are important because they cover the space that is allowed for the flooring to expand and
move naturally on top of the subfloor, and they help with the transition to an adjacent floor.
Most manufacturers offer coordinating moldings for all styles and colors for any laminate flooring
you choose. Please note that these moldings are designed to coordinate with your floor and not
designed to be an exact match.
Also, be aware that moldings for laminates are slightly larger than their wood or ceramic tile
counterparts.
Here, to familiarize you with various standard moldings, are some styles and definitions.
The Step down Stair nose is a coordinating piece providing the proper transition for all the steps in
your home.
A Reducer Strip is the transitional piece our installers use to connect the laminate with another type
of floor covering such as vinyl, thin ceramic tile, or low-pile carpeting.
An End Molding or Carpet Reducer is used as a transition from laminate floors to different flooring
surfaces when the reducer does not allow enough height, such as on high-pile carpet or thick ceramic
tile.
T-Molding is commonly used in doorways to join two laminate floors in adjoining rooms. It's also
recommended when making transitions from a laminate floor to another floor that is approximately
the same height.
Finally, a Quarter rounds may be installed wherever the laminate floor meets the wall or baseboard.
We recommend that you work closely with us to become familiar with the moldings and transition
pieces.
Ask to see samples if possible, so there are no surprises come installation time.
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Those are the basics regarding laminate flooring types.
For more information, see the other laminate sections in company website. Or visit one of the seven
conveniently located Baker Bros. showrooms.
There you’ll find more showroom area than the typical flooring store. More knowledge and
experience per sales person.
If you are on a budget or want to avoid the hassle of a complicated installation but still want the look
of hardwood floors, tile or stone, laminate flooring may be the solution for you. It is durable, easy to
install and recreates the look of natural wood, stone, tile and more. Laminate flooring comes in a
wide range of styles to suit any décor, ensuring a perfect fit for any room in your home. Laminate
floors are made from sturdy, lasting materials and offer easy care and maintenance, making them a
perfect addition to high- traffic areas
Types, Uses, Construction and Tips
Laminate floors are designed for fast, easy installation. They utilize a simple floating method that is
not fastened to the surface below but is instead held in place by molding and room transition
pieces installed around the perimeter of the room.
Interlocking pieces join together to create a large covering over a thin layer of foam called
the underlayment.
Laminate floors can be conveniently fixed directly over most existing surfaces, including wood,
vinyl, tile and more.
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Types
Laminate flooring is sold as planks, tiles or squares, each with an interlocking tongue-and-groove
assembly.
Many flooring configurations utilize glue less method that makes installation free of complications
for faster and simpler construction.
• Laminate floors require a thin underlayment to help it float above the sub floor.
• Same laminates have an attached underlayment for easy installation and noise reduction.
Core Board Thickness
You will find variety when it comes to the thickness of laminates flooring. Thicker flooring is
indicative not only of quality construction but also of durability.
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Uses
Laminate floors can be used in places traditional hardwoods cannot. They are durable, long lasting,
and offer an attractive alternative to wood floors and carpeting.
Many laminates look close to real wood, marble and stone but also have realistic textures that mimic
the feel as well.
Laminates are also made to look like tile but without the worry of cracking, cleaning grout and other
complications that come with traditional tiling methods. And just like tile or stone, you can piece
them together to create decorative patterns.
• Choose from a variety of wood appearances, including pine, maple, cherry, oak and more
• Many premium laminates are embossed for realistic wood, stone and tile textures
• Laminates are stain- and fade-resistant for lasting use that retains its luster
• Laminate floors can be removed easily to replace a plank or change styles
• Easy cleaning and care make laminate floors an ideal choice for high-traffic areas
Construction
Laminate flooring consists of four key layers that help create a tough surface designed to withstand
the rigors of daily use. It is very similar to the durable plastic counters found in most modern kitchens
and provides the same lasting beauty and reliable performance. This chart highlights the four layers
along with their purpose and benefits
Tips
Laminate flooring offers a variety of benefits that make it a great choice for your next decorating
project. Not only is it available in just about any style you can imagine, it offers affordable solutions
and the opportunity to create more elaborate effects even if you're decorating on a budget. The highly
durable and impact-resistant materials will provide smooth, like-new floors for years to come. Follow
these simple instructions to get the most out of your laminate flooring
• Noise-dampening materials can be installed beneath the floor for added comfort
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• Homes with kids or pets will benefit from the extra protection of an extended warranty
• Use door mats at exterior doorways to reduce wear on the surface of the floor
• Always use floor protectors or casters on furniture legs to prevent scratching
Features
Wood Veneer
some laminates recreate the beautiful effects of a hardwood floor by including a layer of wood veneer
Molding
Laminate planks and tiles are held firmly in place by special molding positioned around the edges of
the room. Different molding styles create different effects or even help you install laminate.
Room Transition Pieces
Areas of the room where it meets other rooms or different types of flooring will require you to place
a proper room transition piece. Depending on the floor it is installed next to, as well as the height of
the floor will determine what type of transition can be used. Home Depot carries all types suitable
for matching in color and function for these areas.
Warranties
Laminate flooring manufacturers offer attractive warranties, some as long as 50 years. If you have
children, pets or you plan to stay in your home for many years, warranties ensure you get maximum
use out of your flooring.
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CHAPTER 2
MAJOR PLAYER OF
INDUSTRIES
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(1) Alfa Ica Ltd.
Alfa Ica Ltd. Is a public listed company having manufacturing facilities in Ahmadabad, a city in
Western India having dry port facility including custom clearances? The company produces about 6
million sq. mts Laminates in different varieties.
Alfa Ica is an ISO 9001: 2000 certified company assuring highest customers satisfaction & with
commitment of consistent innovation by introduction of new designs as well as finishes to feed the
creative mind of interior decorators and furniture.
Alfa Ica is seriously committed to environmental needs and holds ISO-14001-2004 certification.
Alfa Ica (I) Ltd. Is Government Recognized Star Export House, recognition provided by Government
of India to companies fulfilling certain credentials. Alfa Ica export high volumes to Europe, USA,
Australia, Hong Kong, Singapore, Taiwan, etc.
MISSION Alfa ica’s industry mission is “Designing For Life”. By providing a wide range of designs and color
patterns, we endeavor to create amazing life spaces. Wood, Stone, cloth, metal etc. Each year AICA
introduces new patterns, designs, and new materials for its melamine laminated sheets to meet the
fast changing trends and need of the times. AICA needs to be sensitive to the trends of the times and
the movement of society. ‘Life Coloring Chemistry’ is the key phrase of AICA which aims to color
people’s lives by using the power of chemistry. AICA makes sure it offers trendy designs
representing a superb balance of pattern, color and texture.
Vision
To establish a brand by creating environment-friendly products harmonising both Japanese and
Indian cultures.
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Technology
At Alfa Ica (I) Ltd, we pride ourselves in creating innovative Designs and Textures providing
inspiration to Designers.
Simultaneously improving chemistry of Laminates has always been primary focus of the company
and for this purpose New Technologies have been purchased by the company, including recently
from –
• Maxer Technology
• Pietro Cassaghi (through Tocchio, Italy.)
• Platts Laminates Technologies, USA.
• Life-Material for Anti-bacterial, Anti- fungus technology
Raw material
All the papers including overlay, decorative papers (printed or solid) are sourced from world’s best
European suppliers to ensure right product standards and satisfactory quality acceptable to European
and American markets. We source our decorative papers from Suddekor, Schatt decor, Chiyoda
(Japan), Chiyoda (Europe), e2p France, Arjo Wiggins and Techno cell.
Even Kraft paper for uniformity of resin absorption and for right cutting quality are sourced by us
from Enso – Finland and Kapstone, USA
Quality
All testing equipment’s are perfectly at place for entire testing of incoming raw material, in process
production as well as testing of final laminate product that goes to customers.
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All these parameters are strictly followed to ensure full customers satisfaction about quality.
Test Certificates from accredited European Laboratories available on request.
Alfa Ica is an ISO 9001: 2000 certified company assuring highest customers satisfaction & with
commitment of consistent innovation by introduction of new designs as well as finishes to feed the
creative mind of interior decorators and furniture designers. The company produces about 6 million
sq. mts. laminates in different varieties. It has manufacturing facilities in Ahmadabad, Gujarat. The
company export high volumes to Europe, USA, Australia, Hong Kong, Singapore, Taiwan, etc.
Alfa Ica is government recognized Star Export House, a recognition provided by Government of
India to companies fulfilling certain credentials. The company is well represented through its various
offices in Europe and agents / dealers in various countries. It also holds ISO–14001–2004
certification. The company has a variety of production line and products. All products are tested to
EN 438 generally and for specific requirement to Nema LD 3 and ISO 4586.
Products offered by the company
• Standard Decorative Laminates (High Pressure Laminates)
• Post Formable Laminates
• Compacts
• Flooring Grade (High Wear Resistant) Laminates
• Solido 363
• Laboratory Grade Compacts
• Fire Retardant Laminate & Compacts
• Exterior Compacts
• Metal Covered Laminates
Financial Statements
We have audited the accompanying financial statements of Alfa lea (India) Limited (the "Company"),
which comprise the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended, and a summary of significant accounting policies and
other explanatory information, which we have signed under reference to this report.
20
Management's Responsibility for the Financial Statements
The Company's Management is responsible for the preparation of these financial statements that give
a true and fair view of the financial position, financial performance and cash flows of the Company
in accordance with the Accounting Standards referred to in sub–section (3C) of section 211 of the
Companies Act, 1956 (the "Act"). This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material misstatement, whether due to
fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditors consider internal control relevant to the
Company's preparation and fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of the accounting estimates made
by Management, as well as evaluating the overall presentation of the financial statements. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
21
(2) Greenply Industry Ltd.
The company was established as "Mittal Laminates Private Limited" on 28 November 1990. It
became a Mittal Laminates Limited in 1994, and finally Greenply Industries Limited in 1996. Its first
manufacturing plant was established in 1993 atBehror, Rajasthan, followed by one at Pantnagar,
Uttarakhand in 2006. Prior to which a manufacturing unit of erstwhile Greenply Industries Limited at
Tizit, Nagaland was taken over, along with the company itself in 1995.
Greenlam, the decorative laminate brand from Greenply is exported to more than 65 countries
including Thailand,Indonesia, Taiwan, Canada, Bahrain, HongKong, Malaysia, Singapore, Kenya, D
ubai, Russia, USA, Australia, Mexico,Saudi Arabia, China and Europe.
Green Panelmax, the medium density fiberboard from Greenply is fast entering into Indian homes.
Greenply Industries Ltd has also started commercial production of 'wooden flooring' with the brand
name Green Floormax at the existing MDF Unit at Pantnagar, Uttarakhand.
Our vision
• Make every house full of colors and life
• Help India gain a significant position globally
• Transform every house to a home
Executive
Shiv Prakash Mittal is the Founder of Greenply Industries Ltd. and has been serving as its chairman
since February 2007. He earned his bachelor's degree in science from the University of Calcutta and
has more than 35 years of experience in the plywood and laminate industry. He serves as a Director
of Greenply Industries, Greenply Leasing and Finance, Prime Holdings, Prime Properties, Greenlam
Asia Pacific, Galaxy Decor, and Platinum Veneers. With a strong retail network, 46 branches across
India and presence in over 300 cities across 21 states, Greenply Industries Limited is committed to
provide international quality products to its customers.
Greenply Industries Limited (GIL) is India's largest interior infrastructure company with a whopping
turnover of Rs. 1997.69 crore followed by a jump of 21.64% during the last fiscal. We stand at top
when it comes to plywood, decorative veneers and particle boards. We account for almost 36 percent
of the organized plywood and 26 percent of the organized laminate market in India.
22
Our continuous efforts towards achieving excellence helped us gain a significant position in the
thriving Indian economy. We are a partner of choice for a large number of office and home builders.
Greenply markets the most comprehensive portfolio of residential and commercial floor products
available - plywood & block boards, decorative laminates, decorative veneers, and MDF under the
brand names of Greenply Plywood, Green Club Premium Ply, Greenlam Laminates, Green
Decowood and Ecotec.
With a strong retail network, 46 branches across India and presence in over 300 cities across 21
states, Greenply Industries Limited is committed to provide international quality products to its
customers through more than 14,000 distributors, dealers, sub-dealer and retailers. The company has
six state of the art manufacturing facilities across the country manufacturing products of global
standards.
Greenlam, the flagship decorative laminate brand from Greenply is exported to more than 100
countries including Thailand, Indonesia, Taiwan, Canada, Bahrain, Hong Kong, Malaysia, Singapore,
Kenya, Dubai, Russia, USA, Australia, Mexico, Saudi Arabia, China, United Kingdom and Europe.
Our esteemed clients trust us by unfolding their vision to us, and we bestow the trust reclined in us by
converting their dreams into reality. So, if you're looking for an exquisite range of interior
infrastructure products, make sure to give us a call.
Greenply Industries (GIL) incorporated in 1990; is engaged in manufacturing plywood. GIL a US$
146.5 million company is largest interior infrastructure company in India.
The company manufactures plywood, laminates, decorative veneers, particle boards and prelam
particle boards/MDF.
The company has a pan-India presence in 300 cities. GIL has 26 branches in India and has marketing
network of over 8500 dealers/distributors and retailers.
It has marketing network of over 8500 dealers/distributors and retailers.
The company commands 25% of the market share under plywood segment and 15% under laminate
market in India.
23
Company’s laminate brand Greenlam is exported to more than 25 countries that include Thailand,
Indonesia, Taiwan, Canada, Bahrain, Hong Kong, Malaysia, Singapore, Kenya, Dubai, Russia, Syria,
USA, Australia, Mexico, Saudi Arabia, China and Israel.
Greenply has created brands such as Greenply Plywood, Greenlam Laminates, Green Lamieboard,
Ecotec, Green Club Premium Ply and Green Decowood.
The company has received various certifications such as OHSAS-18001, ISO-14001, ISO-9001 and
CBRI Certification for its quality management.
The company owns subsidiaries namely Greenlam Asia Pacific Pte to develop market in ASEAN
countries and Greenlam America Inc. for marketing and distribution of its laminate products.
Awards
Company received award for the best advertisement campaign in building material, real estate and
other related industries at Hind ware ArchiDesign Awards
GIL was awarded Abby Gold in the category of the homes, décor and leisure film.
Key Initiatives
The company has acquired two Gujarat based plywood units and is modernizing these units. This will
add capacity of 3 million sq. by second quarter of 2009
The company has started outsourcing of plywood which caters the need of specific requirements of
the markets.
The company is introducing new finishes and designs in Laminates like Ruffled Feather, Parallel
Streaks, Super Gloss, Contra Stripes, Cosmo Motifs, Hoopla, Soul Timber, Horizon Hues, Brush,
Magical flow and I finish.
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Outlook
The company will set up medium-density-fiber (MDF) plywood unit and a laminate unit in northern
India and for this it will invest Rs.3.7 billion in the period of two years. The production of laminate is
anticipated to start by October 2009 and MDF production will start by March 2010.
Greenply Industries Limited (GIL) is India's largest interior infrastructure company with a whopping
turnover of Rs. 1997.69 crore followed by a jump of 21.64% during the last fiscal. We stand at top
when it comes to plywood, decorative veneers and particle boards. We account for almost 36 percent
of the organized plywood and 26 percent of the organized laminate market in India.
Our continuous efforts towards achieving excellence helped us gain a significant position in the
thriving Indian economy. We are a partner of choice for a large number of office and home builders.
Greenply markets the most comprehensive portfolio of residential and commercial floor products
available - plywood & block boards, decorative laminates, decorative veneers, and MDF under the
brand names of Greenply Plywood, Green Club Premium Ply, Greenlam Laminates, Green
Decowood and Ecotec.
With a strong retail network, 46 branches across India and presence in over 300 cities across 21
states, Greenply Industries Limited is committed to provide international quality products to its
customers through more than 14,000 distributors, dealers, sub-dealer and retailers. The company has
six state of the art manufacturing facilities across the country manufacturing products of global
standards.
Greenlam, the flagship decorative laminate brand from Greenply is exported to more than 100
countries including Thailand, Indonesia, Taiwan, Canada, Bahrain, Hong Kong, Malaysia, Singapore,
Kenya, Dubai, Russia, USA, Australia, Mexico, Saudi Arabia, China, United Kingdom and Europe.
Our esteemed clients trust us by unfolding their vision to us.
25
(3) Styalam industry Ltd.
About Styalam
Styalam Industries Limited, creativity and skills meet with each other to change the definition of a
range of laminates. Styalam Industries Limited is name you can rely upon for unmatched laminates.
Incepted in the year 1991 as a private limited concern, Styalam Industries Limited has been rendering
quality and satisfaction to the clients within their budget. The foundation stone of the company was
laid down by the name of Golden Laminates Ltd. The company started its journey to success from
the manufacturing of Luxury decorative laminated sheets for both residential as well as industrial
applications. Combining industrious efforts and wide experience, now the company deals in
industrial as well as advanced laminates.
Backed with a state of the art infrastructural plant at Panchkula near the Beautiful City, Chandigarh,
in North India, the company has been developing high quality laminates that exceed the expectations
of the clients. The plant is loaded with advanced technology machines and equipment’s to assure
maximum production of laminates in minimum time. Latest sophisticated moulds of various finishes
from France & Germany are implemented in the production to make sure the development of the best
laminates to fulfill the requirements of the clients.
Styalam Industries Limited is an ISO 9001:2008 certified Company that itself shows the integrity,
quality and reliability of the company. The design and efficiency of the laminates have assisted the
company is winning the award of CE Marking. In addition to this, the company feels proud to be
recognized as an Export House by the Government of India.
With an experienced marketing team at the helm of affairs and a team of qualified professionals
overseeing the day to day activities, Styalam Industries Limited is rapidly covering the road of
success.
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MISSION
To retain and reinforce our position as a leading Indian manufacturer of Industrial Hydraulic Press
for diversified application and meet the aspirations of customers in domestic and export markets.
This will be achieved through in time supplies backed by superior service.
VISION
To enrich and satisfy the customer through our quality machines and services that matter. We shall
strive dynamically for our customers who are our very purpose, by pursuing continuous improvement
through committed team work. To become global player by improvising technical capability &
maintaining ethical business practices.
Infrastructure
Styalam Industries Limited formerly known as Golden Laminates Limited has been rendering quality
to the laminates industry. The company is engaged in the designing of a variety of laminates for
homes, offices and other places. The company is capable enough to design laminates in the size of
1220mm x 2440mm, 1225mm x 2500mm, 1300 x 2800mm, 1300mm x 3050mm in thicknesses
ranging from 0.4 mm to 20.0 mm in different finishes such as gloss, matt, suede & texture etc. in
more than 600 designs under the brand name “STYALAM”.
Management
Styalam Industries Limited, a public limited company listed in Bombay stock exchange of India, was
established in the year 1991 by the adept hands of Late Sh. N.R. Aggarwal. His sharp business
acumen gave a distinct edge to the organization in the domain of laminates. Today, the company is
flourishing under Mr. Jagdish Gupta, the Managing Director of the firm. The production and
marketing operations of the organization are managed by Mr. Satish Gupta, the Executive Director of
the company. The wide experience and right business ethics of the directors have assisted the
company to reach new heights of success in this dog eat dog world.
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Installation capacity
Styalam Industries Limited owns a well- furnished installation unit with a storage capacity of more
than 3.5 million sheets of laminates.
Resources
Styalam Industries Limited boasts of a sound infrastructural base that is equipped with latest
technology production machines. The company has imported moulds of various finishes from France
and Germany. The back sanding of the laminates is done by ITALIAN IMEAS Machine.
Quality
Quality is the forte of Styalam Industries Limited. Being a quality conscious firm, the company keeps
a strict vigil on every stage of production of laminates. With skilled quality controllers, the company
assures to deliver unmatched quality laminates within the stipulated time frame. The dedication to
quality has enabled the organization to earn ISO 9001 certification. Styalam Industries Limited is
honored to be the first in India and among very few in the world, who has been awarded with the CE
certification for its compact laminates.
Styalam Decorative Laminates
Styalam high pressure decorative laminates constitute specially selected decorative design papers and
high quality absorbent kraft paper impregnated with melamine and phenolic resins respectively, the pack
of which is baked and toughened under uniform heat and high pressure. This process inculcates critical
HPL properties likes strong bonding strength, better resistance to boiling water & stains and improved
dimensional stability and use of imported overlay makes Styalam laminates highly scratch
resistant.Styalam decorative laminates are suitable for a wide range of applications in both your home
furniture and professional environment like wooden claddings/lining of walls and columns, lift linings,
doors, shelves, vanity units, table tops, work-tops, office partitions, counters.
Styalam decorative laminates are available in wide range of colors in Solids and Woodgrains designs
and in many evergreen and new texture finishes and are available in 5 different sizes to cater to your
varying needs. In line with changing tastes and trends of the customer, Styalam introduces new designs
28
at regular intervals in the market. These designs, in combination with wide range of innovative textures,
make the product range very dynamic and trendy.
Styalam Metallic (metal foil) laminates provides a modern decorative and innovative appeal to your
interiors. Styalam Metallic laminates are manufactured with high quality metalized Aluminum Foil of
0.1mm thickness specially imported. This foil is uniformly bonded with phenolic saturated kraft and the
pack is baked and toughened under special heat and high pressure parameters. These metallic laminates
are recommended only for vertical applications as they have relatively lower wear resistance as
compared to Standard Laminates. These metallic laminates are available in wide range of colors and
standard size of 1220 x 2440 mm in special finishes.
Styalam Metallic laminates have bright and reflective surface aspects which render the ambience a
modern and sleek look. These laminates are ideal for use in the hospitality, interior design, gaming,
entertainment, retail, and signage display and furniture industries.
Styalam Exterior Laminates Styalam Exterior laminates are manufactured by European technique to withstand adverse
action of atmospheric Ultra Violet Rays and to withstand exterior atmospheric effects with
minimum fading of colors. Apart from the coveted CE certification, Styalam Exterior laminates
have also been certified with ETB certification for conformance to Exterior Balcony application
by MPA BAU Laboratory, Germany. And TNO Quality Service B.V. investigated the resistance
to artificial weathering according to EN 438-2 of our different kind of High Pressure Laminate
Sheets, Netherlands.
Styalam Exterior laminates are also used for building cladding as well as temporary houses/site-
offices systems.
Styalam Exterior Use Boards are one of the most durable and diverse panels available both in
vertical and horizontal designs give flexibility, sensuous & stylish look to the buildings. In a
modern designed home or large commercial project, the decorative applications of Styalam
Exterior use boards are unlimited.
29
Styalam Fire-Retardant Laminates Styalam Fire Retardant Laminates and compacts are manufactured by impregnating papers with
special of phenolic resin having imported fire retardant chemicals in its composition. This
special resin formula ensures high resistance to the flame propagation. These Laminates ensures
immediate full extinguish as soon as the flame source is removed thus eliminates the risk of
toxic smoke. Styalam Fire Retardant Laminates have been certified conforming to Euroclass-
Brequirement by Applus Laboratory, Spain. These laminates are designed for use requiring
flame and smoke resistance in all modern day furniture and industrial applications.
Styalam Industrial Laminates Styalam Industrial laminates include Drill and Entry Boards in both Phenolic and Melamine
faced surfaces. Styalam phenolic and melamine faced Drill and Entry Boards are manufactured
from phenolic and melamine resin formulation having special chemical additives that ensure
clear drill holes and minimum of burr during special technical purpose application of the PCB
drilling. Those boards are used in the assembly at both drill entry and drill backup levels for
protecting the drill bead while drilling the PCBs.
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(4) Rammaica Ltd
Rammaica India Limited (RMIL) was originally incorporated on 31st March, 1981 as "Ram
Decorative & Industrial Laminates Limited" and obtained certificate of commencement of business
on 1st May, 1981. The name of the company was changed to Rammaica (India) Limited and fresh
Certificate was obtained on 13th July, 1992.
The company has set up a plant at Plot No.F-9, MIDC Industrial Ares, Tarapur, and Maharashtra
with a capacity to manufacture 1500 tons per annum of Decorative Laminates of various designs and
thickness. The plant was commissioned during 1984 and the products are marketed under the brand
name "RAMMAICA" and "RAMOPAL".
The in-house technology has been upgraded from time to time and the Company's products are well
accepted and its brand names well known in the market.
RMIL, April 1, 1993 has taken over the activities of its group company, Ramglass (India) Limited,
engaged in the manufacturing and marketing of Decorative Fiber glass reinforced sheets under the
brand name RAMGLAS.
The Company has bought the machinery for manufacturing reinforced fiberglass sheets from Ram
glass (India) Limited at a cost of Rs.1.17 lacs. The machineries have been installed at Company's site
at Tarapur and production commenced since May 1993.
The Company belongs to the `RAMS GROUP OF COMPANIES' promoted by Mr Ramabtar
Jhunjhunwala alongwith his family.
Rammaica (India) Ltd. Fundamental Company Report provides a complete overview of the
company’s affairs. All available data is presented in a comprehensive and easily accessed format.
The report includes financial and SWOT information, industry analysis, opinions, estimates, plus
annual and quarterly forecasts made by stock market experts. The report also enables direct
comparison to be made between Rammaica (India) Ltd. and its competitors. This provides our
Clients with a clear understanding of Rammaica (India)Ltd...
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The report contains detailed information about Rammaica (India) Ltd. that gives an unrivalledin-
depth knowledge about internal business-environment of the company: data about the owners,senior
executives, locations, subsidiaries, markets, products, and company history.Another part of the report
is a SWOT-analysis carried out for Rammaica (India) Ltd... It involvesspecifying the objective of the
company's business and identifies the different factors that arefavorable and unfavorable to achieving
that objective. SWOT-analysis helps to understandcompany’s strengths, weaknesses, opportunities,
and possible threats against it.
The Rammaica (India) Ltd. financial analysis covers the income statement and ratio trend-chartswith
balance sheets and cash flows presented on an annual and quarterly basis. The report outlinesthe
main financial ratios pertaining to profitability, margin analysis, asset turnover, credit ratios,
andcompany’s long-term solvency. This sort of company's information will assist and strengthen
yourcompany’s decision-making processes.
In the part that describes Rammaica (India) Ltd. competitors and the industry in whole,
theinformation about company's financial ratios is compared to those of its competitors and to
theindustry. The unique analysis of the market and company’s competitors along with
detailedinformation about the internal and external factors affecting the relevant industry will help to
manageyour business environment. Your company’s business and sales activities will be boosted
bygaining an insight into your competitors’ businesses.Also the report provides relevant news, an
analysis of PR-activity, and stock price movements. Thelatter are correlated with pertinent news and
press releases, and annual and quarterly forecasts aregiven by a variety of experts and market
research firms. Such information creates your awarenessabout principal trends of Rammaica (India)
Ltd. business.
In the part that describes Rammaica (India) Ltd. competitors and the industry in whole, the
information about company's financial ratios is compared to those of its competitors and to the
industry. The unique analysis of the market and company’s competitors along with detailed
information about the internal and external factors affecting the relevant industry will help to manage
your business environment. Your company’s business and sales activities will be boosted by gaining
an insight into your competitors’ businesses.
32
(5) Rushil Décor Ltd
Rushil Decor Ltd is the flagship company of the Rushil Group. The company offers comprehensive
engineered interior products include Decorative Laminate Sheets and Plain Particle Boards. They
have an integrated multi-product modern facilities strategically located at Gujarat. Also, they operate
through 5 marketing offices, 14 Consignment agents and 70 distributors. Rushil Decor Ltd was
incorporated on May 24, 1993 as a private limited company with the name Rushil Decor Pvt Ltd.
During the year, the promoters of the company acquired the laminate manufacturing unit at
Gandhinagar in Gujarat having installed capacity of 840,000 Laminate sheets per annum. In the year
1994, the company received their first export order. In the year 1998, the promoters of the company
set up a manufacturing unit under the name, Mica Rushil Pvt Ltd for manufacturing decorative
laminated sheets having installed capacity of manufacturing 1,680,000 Laminate sheets per annum at
Dholakuva, in Gandhinagar. In the year 2002, the promoters of the company set up one more unit
under the name, Rushil High Pressure Laminates Pvt Ltd for manufacturing decorative laminated
sheets having installed capacity of manufacturing 480,000 Laminate sheets per annum at Itla, in
Gandhinagar. In order to consolidate the efforts and for better administration, the group companies,
namely Mica Rushil Pvt Ltd and Rushil High Pressure laminates Pvt Ltd engaged in the same line of
activity were amalgamated with the company with effect from April 1, 2005. In the year 2007, the
company signed a MoU with Government of Gujarat for new projects. The company was awarded
ISO 9001:2000 for Quality Assured. Also, they received ISO14001:2004 for Environmental System
for all the units. In December 4, 2007, the company was converted into a public limited company and
the name was changed to Rushil Decor Ltd. In September 2009, the company expanded their
activities and started manufacturing Plain Particle Board at Navalgadh in Gujarat with the installed
capacity is 1376000 Cubic Meter per annum. In November 2009, they commenced commercial
production. The company purchased a new land sight at Chikmagalur Karnataka for a new project.
The company is in the process of setting up Medium Density Fibre Board (MDF) plant with an
installed capacity of 90000 Cu M per annum for manufacturing Medium Density Fibre Board at
Chikmagalur, Karnataka.
33
Global Economic Conditions:
The global economy developed by 3% in CY 2013, supported by encouraging performance of the US
economy as per the World Economic Outlook (WEO) Report published by the International
Monetary Fund (IMF) published in the month of April 2014. However, global growth was weighed
down by modest growth in the Euro Zone, Japan and Emerging Market and Developing Economies.
Now the scenario is changing, with the advanced world, led by the US, contributing around 20% of
global economic growth. China’s growth is expected to be around 7.5% in2014, as the political
leadership is ensuring a gradual transition to a more sustainable growth path. Such a situation will
surface the way for a period of more balanced global growth.
Above and beyond, in India public has resoundingly voted for political stability and better
governance, the country’s economy is also likely to pick up pace and contribute significantly towards
global recovery.
Indian Economy Position in 2013-14:
During Financial Year 2013-14, the economy grew 4.7%, against 4.9% as estimated, pulled down by
manufacturing, mining, construction and logistics. The performance for 2013-14 is better than the
4.5% growth for 2012-13. It is still a far cry from the above 8% growths witnessed during some part
of years 2004 to 2011. The recovery in 2013-14 is largely on the back of revival in agriculture growth
due to a steady monsoon. However, recovery in the other areas of the economy appears to be feeble
with no clear signs of recovery. Industry continued to be in the midst of a slowdown.
Vision To be No. 1 Indian Brand in The Laminate Industry and to become most reliable Panel Board
supplier in India.
Mission To help customers in achieving their business objectives by providing innovative, best in class
products with expertise and excellence.
34
The first half of the year also saw the Rupee in a free fall under pressure from the worsening deficits,
current account deficit as well as the fiscal deficit. Coupled with fears of large fund outflows due to
the expected Fed tapering; the Rupee breached the Rs.68 level to the US Dollar in August, 2013. A
slew of measures taken by RBI and the Central Government saw the current account situation
improving significantly which helped the Rupee to recover from its all- time lows during the later part
of the year.
Industry Structure and Development:
The growth of Company’s products (Laminates Sheets, Panel Board & Allied Products) is based on
the push-and-pull effects of Demand and Supply determinants like the economic trends in India &
Outside, growth of infrastructure and housing. Company’s half of the market is also depend on export
sales, so it is also impacted by the global economy. It always remains key area of the Company to
provide innovative product in design and finishing to the customers without compromising with
quality.
Today, the per head income in India is increased which converted into purchasing power of a person
and finally resulted into increased spending on the home front. The Indian Laminate Industry, if we
compare the turnover with past few years, the growth has come down by 2 to 3%. However, looking
to the stability of Central Government, clear vision admission of Government to provide houses to
every family at possible level etc. the growth rate of this industry is expected around 7 to 8% in
coming year. The population in India has the youngest persons in the world. The mixture of newness
and economic productivity is catalyzing home ownership and investments in interior as well as
exterior decoration.
In India urbanization is the big matter which may generate more demand for infrastructure and
housing segment and will result into increase in demand of associated products like laminate sheets,
plywood, MDF board, veneer, readymade furniture etc.
35
Segment–Wise or Product-Wise Performance:
Laminates & Allied Products
Decorative, commercial and other Laminate products division is acting very soundly. The company is
also focusing to capture rural market along with urban market. The turnover of Laminate segment
was up from Rs. 144.76 Crores in 2012-13 to Rs. 155.58 Crores in 2013-14showing growth of over
7.47%.
Medium Density Fiber Board
Company started the production of MDF Board from the month of September, 2012. During the year
2012-13, the turnover of MDF was Rs. 14.08 Crores which is Rs. 78.06 Crores in the year 2013-14.
Export Performance
The Export of the Company including deemed export was up from Rs. 97.12 Crores in2012-13 to Rs.
99.63 Crores in 2013-14 showing growth of over 2.59% in value.
Future Outlook
The Company’s outlook for the year 2014-15 is to add more products in the product range as per
requirement in the market. After a long time, Country got a fully supported and stable government
which may benefit to the Housing, infrastructure and construction sectors. Present Government also
believes in development of all these sectors which will ultimately lead to the opportunities for
laminate and wood industries. However, there may be possibility of entrance of new organized and
unorganized industries in this sector, the supply may beat to demand which can cause price volatility
in the market. But, having modern technology and plants, valuable brands, the products of our
Company may be in position to capture emerging prospects and to face the market risk or
competition.
36
Risks and Concerns
The company is exposed to the normal industry risk factors of interest rate volatility, economic cycle,
and credit risk, Asset Risks (natural calamity etc.), Human Resource Risks, Foreign Exchange
Fluctuation Risk, Government Policy Change Risk, IT Risks, LocationalRisks, Transportation Risks,
Competition Risks and Raw Material Availability Risks. The Company manages these risks by
maintaining a conservative financial profile, by following prudent business and risk management
practices and your Company’s properties, including building, plant, machineries and stocks, among
others, are adequately insured against risks to the extent possible. The step taken by the company to
minimize the risks periodical reviewedthe board in its meeting.
Internal Control Systems and Their Adequacy
The Company has an adequate system of Internal Controls aimed at achieving efficiency in
operations, optimum utilization of resources and compliance with all applicable laws and regulations.
Company has internal control Department which is looking all the financial, operational and other
related transaction. Company also has the control system sat manufacturing plants. The products
manufactured by Company are regularly tested for chemical properties before it is approved for
dispatch.
The Internal control system in the Company is commensurate with the size and nature of business of
the Company. The Board of Directors verifying its adequacy, effectiveness and application at regular
intervals.
Discussion on Financial Performance With Respect To Operational Performance
The Revenue from operations (Excluding Excise Duty) of company was increased from Rs.182.02
Crores in 2012-13 to Rs. 255.67 Crores in 2013-14 showing growth of 40.46%.
The Profit before Tax of company was decreased from Rs. 862.34 Lacs in 2012-13 to Rs.652.96 Lacs
in 2013-14. The Profit is impacted mainly due to increase in manufacturing another expenses.
37
Material Developments in Human Resources / Industrial Relations Front, Including Number of
People Employed
The Company recognizes the importance of manpower. Company promotes employees to attend
outside seminars or programs related to their fields and motivational which encourage them to make
contribution toward company, family and nation at large. Company also encourages to the employees
to offer their creative suggestions for development in their respective areas which are thoroughly
discussed in periodical meetings. The company maintains absolute synchronization with its people.
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CHAPTER 3 COMPETITIVE ANALYSIS
39
PEST analysis:
The PEST analysis is used to assess the macro environment and identify the challenges faced with in
India market in order to make an appropriate suggestion.
Since this essay has analyzed the macro environment of the India flooring market, further looking at
the political, economic, social and technological factors of the help advance and strength the logic of
the whole assessment.
Political:
First of all, political factors refer to the stability of the political environment and the attitudes of
political parties or movements. This may manifest in government influence on tax policies, or
government involvement in trading agreements.
The Indian political system characterized as one-party communist dictatorship makes a great
contribution to national stability, enabling the economy keep dynamic and sustainable. Nevertheless,
when the economic system was deregulated from the command economy to market economy since
1978, the power of economic management was increasingly decentralized, raising the issue of
uncoordinated development of regional economy. Currently, though the central government has made
effort to alleviate the gap among different areas in terms of developing standards, provinces tend to
give a priority to local profits rather than considering the integrated advancement of the whole
country. Local protectionism exerts detrimental influences upon market expansion of Laminates
Company in nationwide and deters the establishment of a comprehensive distribution channel.
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Economical:
Economic factors represent the wider economy so may include economic growth rates, levels
of employment and unemployment, costs of raw materials such as energy, petrol and steel, interest
rates and monetary policies, exchange rates and inflation rates. These may also vary from one
country to another.
India is valued as one of the most vibrant countries in terms of economic development among the
world. The reform & opening up in 1978 accelerated India’s GDP growth from within a 30-year
period. Based on these statistics, judgment can be made that manufactures in India including flooring
industry may keep an optimistic attitude to their future prospects in some extent.
Indian economy may suffer unpredictable circumstance in the future. Labor resource is one double-
edge sword. Once being an advantage of India, abundant labor resource and economical labor price
make a great contribution to progress of those labor- intensive manufacturing industries. This is also
the primary reason that India flooring industry is quite profitable though India is a net importer of
timber.
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Social:
Social factors represent the culture of the society that an organization operates within. They may
include demographics, age distribution, population growth rates, level of education, distribution
of wealth and social classes, living conditions and lifestyle.
It is claimed Littlefield (2001) that India is an extremely high-context country where people prefer to
receive implied messages. For establishing a business in India, strong private-relationships with
different stakeholders is the key to success. However, this is extremely time-consuming while the
maintenance is also expensive. Potential conflicts in interest may easily erode it.
Besides the “relationship”, corruption is another issue in India. However, damages caused by
corruption may be far more hazardous than anticipated, particularly to the economic development.
Corruption has been treated as a vital barrier for operating in Indian market due to enormous back-
stage expenditures as well as resulted injustice. For Laminates to gain more import quotas and pay
less tariff, costs may be made up of not only normal ingredients such as transporting, but also implied
expense for ‘smoothing the network.
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Technological:
Technological factors refer to the rate of new inventions and development, changes in information
and mobile technology, changes in internet and e-commerce or even mobile commerce, and
government spending on research. There is often a tendency to focus Technological developments on
digital and internet-related areas, but it should also include materials development and new methods
of manufacture, distribution and logistics.
India wood flooring industry is experiencing a relatively laggard technological standard in its initial
stage of development. According level of timber utilization was 61% in 2004 with a considerable
disparity with developed countries (nearly 90%). Additionally, imbalanced technological support
aggravates the long-term conflicts between wood supply and demand in Indian domestic market. In
2004, though the total domestic timber supply is 273.6 million cubic meters and exceeded the total
consumption of 241.5 million cubic meters, scarcity of raw material still existed in some parts of
timber manufacturing industry.
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Portal’s five-force model:
These forces determine an industry structure and the level of competition in that industry. The
stronger competitive forces in the industry are the less profitable it is. An industry with low barriers
to enter, having few buyers and suppliers but many substitute products and competitors will be seen
as very competitive and thus, not so attractive due to its low profitability.
After analyzing the macro-environment of both countries, it is reasonable and necessary to apply
Porter’s five-force model in order to provide a thoroughly understanding of the India flooring market
before the company entering into it. According to this model, the competitiveness of an industry is
influenced by such five forces and their collective strength and thus determines the ultimate profit
potential of this targeting industry. These five forces covered in the analysis are competitive rivalry,
supplier power, buyer power, the threat of substitution and the threat of potential new entry.
However, the five-forces framework is not a set of principals per se, instead is a tool for
systematically use these principals to assess the current status and likely evolution of an industry.
Rivalry among Existing player:
The internal competitive rivalry in India flooring market seems high. There are three main reasons.
First, the switching cost is low because flooring products are homogenous with little product
differentiation. Another reason is that the India flooring market is saturated with a relatively low
growth rate. Also the number of competitive industry in India flooring market and the intensity of
rivalry also determine the high threats of rivalry. There are a large number of companies competing
in the India flooring market and these companies are divided into three categories, they are Small and
Medium Sized Enterprises (SMEs), Domestic Leading Manufacturers (DLMs) and Niche Market
Brands (NMBs).
First of all, SMEs has the largest number in the India flooring market. These SMEs are often
manufacturers provide low-grade flooring with low price. Their marketing strategy is just reverse.
Thus laminates is suggested to treat them in an abstemious way.
It is suggested by India Timber that few DLMs account for the majority of the total market share.
These companies usually possess strong competencies, highly recognized reputation and well-
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established brand image. One main rivalry is the samay Group, who is one of the world leading
producers of high-quality flooring.
• There are many competitors;
• Exit barriers are high;
• Industry of growth is slow or negative;
• Products are not differentiated and can be easily substituted;
• Competitors are of equal size;
• Low customer loyalty.
As the competition is fierce in India flooring market, laminates is suggested to adopt a niche strategy
and doing effective promotion after entering the market. To explain, the original India wood flooring
manufacturers already gains economy of scales and undeniably enjoys a cost advantage. Advanced
distribution channel comparing with those new entrants also allows them first mover advantages.
Cost disadvantage and lacking reliable cooperators are main barriers for Golden Bridge to survive in
India market. Insufficient in capital determines that an aggressive expansion strategy is also
irrational. However, one advantage occupies is that it has been doing export business within India
importers for couple of years and its products did have certain reputation in this highly competitive
market. By offering additional value, can efficiently differentiate itself among the rivals with a brand
image of ‘reliability, valuable, and symbol of statuses. This may help obtain sustainable brand loyalty
among India customers.
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Threat of Substitutes:
The Threat of substitutes refers to the extent to which different products used in place of a company’s
products or offered by other industrials. Flooring is not restricted on only wood but other materials
such as laminates are also widely used. For instance, in India market in laminates took the largest raw
material market share for making flooring. This is followed of 28.6%. Comparably, the laminate only
had a market share of 13.9%, ranked in the third place.
In terms of switching cost, the result can be distinct regarding to different objects of study. To
individual consumers, there is almost no switching cost exists because choose one kind of material
instead of another is just a matter of personal taste. However, this can be criticized in depth for the
reasons that wood-made flooring has its own characteristics and functions that other materials may
not have. To some extent and to specific customer groups, for instance, those who have fixed-
decoration style, the switching cost can be relatively high.
However, to large wholesalers previously dedicated in wood-made flooring, the switching cost would
be extremely high, as they may lose the stable distribution channels with their current wholesalers or
retailers, and also the price advantage provided by the long-term cooperative producers. This means
the substitution threat is less considerable because their past investment in developing stable
distribution channels with retailers and producers offers them an advantage in current market and this
may make them unwilling to undertake risks of operating and competing in a new and highly
competitive market.
Summing up the above, it is the end-user customers that should pay close attention to. First of all, it
is advised that a regular customer survey to be conducted to make a comprehension of customers’
preferences and what they really appreciate. The company should also emphasize the exclusiveness
and unique utilities of their products, making it cost more for the customers to switching to other
substitutes. Thus in order to avoid sudden shock of new technologies that brings in comparable
substitutes, laminates should invest continuously in Research and Development to keep pace with the
times.
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Threat of New Entrants:
Threat of new entrants is moderate. As put by main barriers to enter India market include certification
approval and the quality standards and label, while the incentive to enter India market depends
mainly on its impeccable infrastructure system.
The extensive unified intensification, which has been mentioned before in PEST Analysis of India,
increase the starting investment of new entry, accordingly has negative effect on new entrants to the
market. Under the Single Indian Market policy, twelve of them have reached an agreement on
moving goods, service and capital freely internally, giving companies in these markets strong
mobility. Thus it can be expected that in order to harmonize to Indian standards, a large quality of
funds will be needed to invest in order to fulfilling the standards ranging from environmental
protection to individual healthcare.
• Low amount of capital is required to enter a market;
• Existing companies can do little to retaliate;
• Existing firms do not possess patents, trademarks or do not have established brand reputation;
• There is no government regulation;
• Customer switching costs are low (it doesn’t cost a lot of money for a firm to switch to other
industries);
• There is low customer loyalty;
• Products are nearly identical;
• Economies of scale can be easily achieved.
What is more, the sophisticated infrastructures that India possesses nationwide make the market
considerably attractive to those adventurous entrepreneurs.
Therefore the threats of new entrants would be moderate in India flooring market. For the corporate
should create a marketing and brand image and keep customers’ loyalty, tie up to both suppliers and
distributors. More important, it should sign a patent to protect the intellectual property of their high-
tech products.
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Bargaining Power of Buyer:
Buyer power, which is determined by the individual customers’ ability in negotiating purchase prices
with suppliers, is at an intermediate level in India market basing on four crucial reasons. Firstly,
according to the previous analysis, competition in the wood flooring manufacturing is largely
intensified by a large amount of incumbents. Hence, purchasers are more unrestricted in choosing
their suppliers with considering competitive advantages of products, and price may be a decisive
factor for some customers. However, it is important to note that Wholesalers have more bargaining
power than individuals. Being the large-volume buyers, they are not only main customers where
companies earn profits from, but also controllers of dominant distribution channels. By stark contrast,
individual customers with smaller purchase volume may be positioned less vitally in suppliers’
minds. Secondly, the buyer power is attenuated by the availability of substitutes of wood flooring in
India market. Except for this category of flooring, more choices are supplied on the market.
• Buying in large quantities or control many access points to the final customer;
• Only few buyers exist;
• Switching costs to other supplier are low;
• They threaten to backward integrate
• There are many substitutes;
• Buyers are price sensitive.
Despite competition reinforces customers’ bargaining power, the phenomena of demand surplus in
India wood flooring alleviates this circumstance. In additionally, India culture also plays a significant
role in lessening customers’ bargaining power. The spirit of the nation, such prudence and fixation
lead to a fairly strict standardization in both work and life. Indians are used to calculating a precise
price based on all dimensions. Hence, they dislike dealing with situations out of their planning,
enabling bargaining become very difficult. Ten percentage cut in price is the biggest range they will
agree in the dealing with foreign buyers.
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Bargaining Power of Supplier:
Supplier Power refers the power of suppliers to drive up the prices of raw materials, supplies,
equipment or inputs. Your company purchases the glue, paint and equipment, and employs labors
from India and imports the wood from Russia.
There are some crucial factors performing low supplier power of your company. Firstly, India is not
used to bargaining, which is mentioned in Buyer power. Hence, it is meaningless for India suppliers
to drive up the price of material and equipment. On the other hand, many substitutes with lower
expenditures are becoming increasingly prevalent such as laminates flooring. High standard of
substitutes’ threat can restrict the suppliers to drive up the price and reduce the power of suppliers.
• There are few suppliers but many buyers;
• Suppliers are large and threaten to forward integrate
• Few substitute raw materials exist;
• Suppliers hold scarce resources;
• Cost of switching raw materials is especially high.
However, high labor cost strengthens the supplier power. The India labor cost is one of the highest in
world. According to Common Protocol of Salary, Labor wage need be determined by the negotiation
between wood flooring industry and backwards industry (Fact about India, 1996). Therefore, the
security of labor force is quite completed. Unions are powerful to argue with unfair wage or welfare.
Supplier power and buyer power, which exert a moderate threat on Golden Bridge’s development in
India, can be alleviated through several ways. From one aspect, to limit bargaining power of large-
volume wholesalers, the company should give priority to building up a distribution network itself by
developing new franchisers rather than depending on the primary channels of wholesalers. In terms
of individual customers as well as challenges from substitutes, enhancing the products’ benefits
would be the most efficient way to reduce their bargaining desire as most of affluent people value
quality more important than price.
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3.3 SWOT analysis:
SWOT analysis is a structured planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture. A SWOT analysis can be
carried out for a product, place, industry or person. 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.
SWOT analysis
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STRENGTHS: -
• Existence of more than sufficient productive capacity in tanning.
• Easy availability of low cost of labor.
• Exposure to export markets.
• Managements with business background become quality and environment conscious.
• Presence of qualified laminates technologists in the field.
• Comfortable availability of raw materials and other inputs.
• Massive institutional support for technical services, designing, manpower development and marketing.
• Exporter- friendly government policies.
• Tax incentives on machinery by Government.
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WEAKNESSES: -
• Low level of modernization and up gradation of technology and the integration of developed technology is very slow.
• Low level of labour productivity due to inadequate formal training / unskilled labour.
• Horizontal growth of tanneries.
• Less number of organised product manufacturers.
• Lack of modern finishing facilities for laminates.
• Highly unhygienic environment.
• Unawareness of international standards by many players as maximum number of leather industries are SMEs.
• Difficulties in accessing to testing, designing and technical services.
• Environmental problems.
• Non availability of quality Flooring components
• Lack of fresh investment in the sector.
• Uneconomical size of manufacturing units.
• Competition among units for export orders leading to undercutting.
• Little brand image.
• Poor labour productivity. Lack of awareness about consistent in plant training and retraining- Inconsistent quality high rejection rate
• Low machine and material productivity.
• Lack of quality job work units
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OPPORTUNITIES: -
1. Abundant scope to supply finished laminates to multinationals setting up shop in India.
2. Growing different design of laminates consciousness globally.
3. Use of information technology and decision support software to help eliminate the length of the production cycle for different products
4. Product diversification - There is lot of scope for diversification into other products.
5. Growing international and domestic markets
6. Retain customers through quality supplies and timely deliveries
7. Aim to present the customer with new designs, infrastructure, and country industry profiles.
8. Use of modern technology
9. Exhibit strengths in manufacturing, for example, strengths in classic laminates manufacturing, hand crafting etc.
10. De-reservation of the Laminates sector.
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THREATS: -
• Entry of multinationals in domestic market.
• Stiff competition from other countries. (The performance of global competitors in laminates and wooden products indicates that there are at least 5 countries viz, China, Indonesia, Thailand, Hongkong and Brazil, which are more competitive than India.)
• Non- tariff barriers - Developing countries are resorting to more and more non – tariff barriers indirectly.
• Improving quality to adapt the stricter international standards.
• Fast changing fashion trends are difficult to adapt for the Indian leather industries.
Limited scope for mobilizing funds through private placements and public issues, as many businesses are family-owned.
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3.4 DRIVING FORCES:
While it is important to judge what growth stage an industry is in, there is most analytical value in
identifying the specific factors causing fundamental industry and competitive adjustments. Industry
and competitive conditions are change because forces are in motion that creates incentive or pressure
for change. These dominant forces are called driving forces.
The most common driving forces for Indian Laminates industry are. Product innovation.
Product innovation can shake up the structure of competition by broadening an industry’s customer
base rejuvenation industry growth, and widening the degree of product differentiation among rival
sellers. Successful new product introductions strengthen the market position of the innovation
companies, usually at the expense of companies that stick with their old products or are slow to
follow with their own versions of the new product.
Technological change.
Advances in technology can dramatically alter an industry’s landscape, making it possible to produce
new and better products at lower cost and opening up whole new industry frontiers. The Laminates
industry is highly depending on the technology now. Right now we have so many latest technologies
available which are becoming expire due to the newly coming technology every day in products,
services, networking and every dimension.
Marketing innovations.
The marketing innovations are also very important driving forces as so many international companies
as well as other national private companies enter in the industry. We have the example ofGreenply
marketing strategies, after the entry of different designs of laminates product and other players.
Entry or exit of major firms.
The entry of one or more foreign companies into a market once dominated by domestic firms nearly
always sakes up competitive conditions. Likewise, when an established domestic firm form another
industry attempts entry either by acquisition or by launching its own start-up venture, it usually
applies its skills and resources in some innovative designs that pushes competition in new direction.
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The classic examples are the Indian laminates sector after entry of Maica, Airolam, and other big
giants.
Diffusion of technical know-how across more companies and more countries.
As knowledge about how to perform a particular activity or execute a particular manufacturing
technology spreads, any technically based competitive advantage held by firms originally possessing
this know-how erodes. The diffusion of such knowledge can occur through scientific journals.
In the Indian Laminates industry, we can see the effect of this factor
Regulatory influences and government policy changes.
Government regulatory actions can often force significant changes in industry practices and strategic
approaches. Deregulation has proved to be a potent precompetitive force in the leather footwear
industry.
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3.5 Key Success Factors
Technology
The entire sector is technologically intensive. Rapid advances made in the developed countries have
changed the dynamics of the sector. The design and quality changed the laminates industry as,
bandwidth up gradation and Internet is all example of this. By the quick, easy to connect with
customers there are drastic improvements are being carried out in the Indian.
Capital Requirement:
The capital requirement for the industry is very high as India is developing country still it requires a
new development in laminates sector to become world most seller country of industry.
Government policies:
The earnings of the sector hinge on government policies. The formation of FTA (Free trade
Agreement) is a right step. The role of FTA spread over tariff fixation as a regulator and arbitrator. In
a business where government is both a service provider and a policy maker, independent regulator is
key if interests of the private companies are to be taken care of.
Service:
A service is one of the key components for success for the industry. As price of the service is also a
major one, price reduction holds another key for the success of the industry. Value-added services
and network are some other success factors.
Service charges and Network:
The industry has to operate on a twin objective of reducing service charges on the one side, and
improve infrastructure network on the other hand. Prices of laminates product is governmental and
politically sensitive.
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Acquisition and Mergers:
Acquisition and mergers with giant companies is also considered as a key success factor because by
this way companies can expand their networks smoothly in the country and share the investments as
well as other expertise.
Key Success and Risk Factors
To take advantage of the potential opportunity, the following are key success factors for firms in the
Laminates industry:
• Focusing on exports by developing international quality products
• Developing new designs to be in touch with the latest trends
• Being quality conscious - Quality of the product is critical as customers, especially
international, are extremely quality conscious
• Branding is one of the important factors to distinguish the product and thus would be one of
the key success factors
• Proper distribution channel to ensure smooth supply is also an important success factor.
The laminates industry is exposed to the following risks:
• Fluctuating laminates prices exposes the manufacturer to significant risk
• Stricter international standards as a result of increasing environmental awareness
• Skills shortages resulting in high labour charges could affect the laminates industry
• Lower productivity in India compared to other countries such as Indonesia & Hongkong
• Lack of strong presence in the global laminates design market
• Lack of awareness of international standards by many players
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VRIO
Definition
“VRIO framework is the tool used to analyze firm’s internal resources and capabilities to find out if
they can be a source of sustained competitive advantage.”
Understanding the tool
In order to understand the sources of competitive advantage firms are using many tools to analyze
their external (Porter’s 5 Forces, PEST analysis) and internal environments. One of such tools that
analyze firm’s internal resources is VRIO analysis. The tool was originally developed by work ‘Firm
Resources and Sustained Competitive Advantage’, where the author identified four attributes that
firm’s resources must possess in order to become a source of sustained competitive advantage.
Valuable
The first question of the framework asks if a resource adds value by enabling a firm to exploit
opportunities or defend against threats. If the answer is yes, then a resource is considered valuable.
Resources are also valuable if they help organizations to increase the perceived customer value. This
is done by increasing differentiation or/and decreasing the price of the product. The resources that
cannot meet this condition, lead to competitive disadvantage. It is important to continually review the
value of the resources because constantly changing internal or external conditions can make them
less valuable or useless at all.
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Rare
Resources that can only be acquired by one or very few companies are considered rare. Rare and
valuable resources grant temporary competitive advantage. On the other hand, the situation when
more than few companies have the same resource or uses the capability in the similar way, leads to
competitive parity. This is because firms can use identical resources to implement the same strategies
and no organization can achieve superior performance.
Even though competitive parity is not the desired position, a firm should not neglect the resources
that are valuable but common. Losing valuable resources and capabilities would hurt an organization
because they are essential for staying in the market.
Imitate
A resource is costly to imitate if other organizations that doesn’t have it can’t imitate, buy or
substitute it at a reasonable price. Imitation can occur in two ways: by directly imitating (duplicating)
the resource or providing the comparable product/service (substituting).
A firm that has valuable, rare and costly to imitate resources can (but not necessarily will) achieve
sustained competitive advantage. Barney has identified three reasons why resources can be hard to
imitate:
• Historical conditions. Resources that were developed due to historical events or over a long
period usually are costly to imitate.
• Causal ambiguity. Companies can’t identify the particular resources that are the cause of
competitive advantage.
• Social Complexity. The resources and capabilities that are based on company’s culture or
interpersonal relationships.
Organized
The resources itself do not confer any advantage for a company if it’s not organized to capture the
value from them. A firm must organize its management systems, processes, policies, organizational
structure and culture to be able to fully realize the potential of its valuable, rare and costly to imitate
resources and capabilities. Only then the companies can achieve sustained competitive advantage.
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3.6 The Competitive Profile Matrix (CPM)
Itis a tool that compares the firm and its rivals and reveals their relative strengths and weaknesses.
Understanding the tool
In order to better understand the external environment and the competition in a particular industry,
firms often use CPM. The matrix identifies a firm’s key competitors and compares them using
industry’s critical success factors. The analysis also reveals company’s relative strengths and
weaknesses against its competitors, so a company would know, which areas it should improve and,
which areas to protect.
Weight
Each critical success factor should be assigned a weight ranging from 0.0 (low importance) to 1.0
(high importance). The number indicates how important the factor is in succeeding in the industry. If
there were no weights assigned, all factors would be equally important, which is an impossible
scenario in the real world. The sum of all the weights must equal 1.0. Separate factors should not be
given too much emphasis (assigning a weight of 0.3 or more) because the success in an industry is
rarely determined by one or few factors. In our project, the most significant factors are ‘Market
share’ (0.13), ‘Price Competitiveness’ (0.10), ‘Strong Connectivity’ (0.09).
Rating
The ratings in CPM refer to how well companies are doing in each area. They range from 4 to 1,
where 4 means a major strength, 3 – minor strength, 2 – minor weakness and 1 – major weakness.
Ratings, as well as weights, are assigned subjectively to each company, but the process can be done
easier through benchmarking.
Score & Total Score
The score is the result of weight multiplied by rating. Each company receives a score on each factor.
Total score is simply the sum of all individual score for the company. The firm that receives the
highest total score is relatively stronger than its competitors. In our Project, the strongest performer in
the market is Bharti Airtel (3.46 points) and its main competitor is Vodafone (3.04 points)
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Benefits of the CPM:
• The same factors are used to compare the firms. This makes the comparison more accurate.
• The analysis displays the information on a matrix, which makes it easy to compare the
companies visually.
• The results of the matrix facilitate decision-making. Companies can easily decide which areas
they should strengthen, protect or what strategies they should pursue.
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Competitive Profile Matrix of laminates industry:-
CRITICAL SUCCESS FACTOR
Weight Greenply Rushil decor Styalam
Rating Score Rating Score Rating Score
Market share 0.13 3 0.36 4 0.48 3 0.36
Customer service 0.11 4 0.4 3 0.3 2 0.2
Customer Loyalty 0.07 2 0.12 4 0.24 2 0.12
Financial Position 0.08 4 0.28 3 0.21 4 0.28
Strong online present
0.06 2 0.1 4 0.2 3 0.15
Profit Margin 0.11 3 0.33 4 0.44 3 0.33
Price competitiveness
0.10 3 0.33 3 0.33 2 0.22
Value added service
0.04 4 0.16 3 0.12 2 0.08
Proper speed and bandwidth
0.09 4 0.48 3 0.36 2 0.24
Strong connectivity
0.09 4 0.4 4 0.4 1 0.10
Billing Transparency
0.04 2 0.04 3 0.06 1 0.02
Technical competence
0.03 2 0.04 4 0.08 1 0.02
Handling of complaints
0.05 4 0.32 3 0.24 2 0.16
Total 1 3.04 3.46 2.28
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Strategic Group mapping:-
Y
X
National Global
Geographical Scope
Figure: Strategic Group Mapping of Laminates industries
Interpretation
In order to visualize the segmentation of strategic groups, it is useful to design a "map" (Müller-
Stewens 2005):
• For this purpose we have determine two variable which is helpful in classify the strategic
groups. These criteria form the X axis, where we have sketch as the geographical scope i.e
national and global. We have use these criteria, which are of high importance in terms of the
behavior of the competitor’s presence.
2500
500
1000
1500
2000
Net sales (in crores)
Rushil decore
Styalam
Greenply
Alfa Ica Rammaica
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• Thereafter on Y axis we have took different variable that is net sales are in crores of
companies in the sector has been positioned on the map.
• Net sales of following companies :
• The last step is to divide the companies into strategic groups. The companies which are
closest to each other form a strategic group. Additionally we have illustrate the netsales of the
strategic groups by the size of the circles.
Note: the size of the circles does not represent the market shares in this figure.
Company’s name Net sales
Alfa Ica 57.84
Greenply 2159.52
Rushil Décor 244.08
Rammaica 10.13
Styalam 187.45
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Industrial dominate economic features
Market size and growth rate:
Market sizes refer to the total number of firm operating in the industries. It’s also important to know whether organization is in growing, static or decaling. Its depend on the industries business life cycle ex earlier development repaid growth early maturity.
Number of rivals, organization should also know the industry contains too many small rivals or it is dominated by few large firms.
Scope of competitive rivalry:
Scope of competitive river is an important factor for the organization to know the level of competition industries member must know about the nurture of future competition for i.e. if a company realize that its future success depend upon the diversification product development.
Buyer needs and requirements :
Industry member must take in to consideration the need and taste of final buyer as well as the middle man so organization have to do a lot of periodic research in order to know the major shifts in buyer need and requirement.
Degree of product differentiation:
Degree of production is also an important factor to see all over industry situation If all the product of industries are not fully differentiated than it will increase competition among the member of organization.
Product innovation:
Product innovation can be use as a measure to know dominates industries feature if the industries categorizer by rapid product innovation and short product life cycle than the research and development is very import for the successes of industry.
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Pace of technological change :
If the industry differentiated by rapid face of technologic change than the art of state technology is imperative for the success of organization.
Vertical integration:
It is important to know that the compatriot industries are party or fully integrated finally the competitive advantage and disadvantage of fully or partly and non integrated firm should be taken into consideration.
Economies of scale,
Organization must know the different economic scale in purchasing, manufacturing and other activities they should analyzed whether the competitor with high scale or low scale operation.
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CHEPTER 4 FINANCIAL ANALYSIS
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4.1TREND ANALYSIS
4.1.1 Total Income:-
YEAR 2009-10 2010-11 2011-12 2012-13 2013-14 Greenply industry 941.68 1,235.22 1,670.27 2,021.28 2179.86 Alfa Ica (India) ltd 35.45 43.19 45.65 56.17 60.37 Rushil décor ltd 96.79 102.61 129.78 150.24 186.96 Rammaica (India) ltd 0 0 4.53 1.33 8.18 Styalam industry 66.19 87.89 102.04 148.57 191.26 Total 1140.11 1468.91 1952.27 2377.59 2626.63 Average 228.022 293.78 390.45 475.52 525.326
Interpretation:-
The Industry has a fluctuating flow of income over the 5 years. The industry has been able to improve its sell much. After 2011-12 the income decrease in Rammaica. But Greenply, Rushil, Styalam and Alfa Ica’s income continues increase. This is a good sign for the industry having such a reputed name in the market. Also it affects the earnings of shareholders.
0
100
200
300
400
500
600
2009-10 2010-11 2011-12 2012-13 2013-14
Average
69
4.1.2 Total Expenses:-
YEAR 2009-10 2010-11 2011-12 2012-13 2013-14 Greenply industry 836.2 1116.67 1494.58 1754.21 1911.73
Alfa Ica (India) ltd 32.88 40.29 42.42 52.58 56.92
Rushil décor ltd 86.09 88.74 114.54 131.66 162.04
Rammaica (India) ltd 0.03 0.29 4.01 1.06 8.13
Styalam industry 66.19 87.89 102.04 148.57 191.26
Total 1021.39 1333.88 1757.59 2088.08 2330.08
Average 204.278 266.776 351.518 417.616 466.016 (www.capitaline.com)
Interpretation:-
Above graph show the industry fluctuating of expenses over the 5 year. The industry has not able to decrease their expenses. The expenses of last 5 years is continually increase. In 2012-13Rammaica total expenses decrease and then after increase.
0
50
100
150
200
250
300
350
400
450
500
2009-10 2010-11 2011-12 2012-13 2013-14
Average
70
4.1.3 Operating Profit:-
(www.capitaline.com)
Interpretation:-
Above graph show the industry different year operating profit over the 5 year. The graph show the first 5 year operating profit continually decrease. The industry show, they have achieved good market share over the first 5 year. Only the year of the 2010-11 the Alfa Ica’s operating profit was increase. After 2010-11 the operating income is more decrease than 2009-10.
0
5
10
1.55 1.09 0.95 0.98 0.94
Total
YEAR 2009-10 2010-11 2011-12 2012-13 2013-14
Alfa ica 3.45 3.59 3.23 2.9 2.57
Greenply 268.12 267.07 175.69 118.55 105.48
Rushil décor 24.92 18.58 15.24 13.87 10.7
Rammaica 0.06 0.27 0.52 -0.29 -0.03
Styalam 22.46 13.9 10.56 7.58 7.12
Total 319.01 303.41 205.24 142.61 125.84
Average 63.802 60.682 41.048 28.522 25.168
71
4.1.4 PBT:-
YEAR 2009-10 2010-11 2011-12 2012-13 2013-14
Alfa ica 0.81 0.31 0.33 0.88 1.00
Greenply 56.98 30.86 64.92 151.38 149.37
Rushil decor 4.54 6.74 6.64 7.87 8.63
Rammaica -0.03 -0.42 0.52 0.27 0.06
Styalam 4.47 5.32 4.19 6.17 9.99
Total 66.87 42.81 76.6 166.57 169.05
average 13.354 8.562 15.32 33.314 33.81
(www.capitaline.com)
Interpretation:-
Above graph show the industry fluctuating of PBT over the 5 year. The industry has able to improve their PBT in 2011-12 to 2012-13 but then after PBT not improve in 2013-14 . The first 3 year industry has increase PBT But suddenly in the year of 2009-10 the Alfa Ica and Greenply is downfall. Because in the year 2011-12 and 2012-13 the three company Rushil decor, Rammica, Styalam suddenly down their PBT.
0
5
10
15
20
25
30
35
40
2009-10 2010-11 2011-12 2012-13 2013-14
average
72
4.1.5 Total Share Capital
(www.capitaline.com)
Interpretation:-
Above graph show the industry fluctuating of Total share capital over the 5 year. In first three year the total share capital of the industry is near to equal, but in 2011-12 the share capital is increase the reason is Rushil decor share capital is increase. This is a good sign for the industry having such a reputed name in the market. Also it affects the industry volume and profit.
YEAR 2009-10
2010-11
2011-12
2012-13
2013-14
Alfa ica 5.04 4.64 4.64 4.04 4.04
Greenply 11.05 12.07 12.07 12.07 12.07
Rushil decor 8.76 8.76 8.76 14.40 14.40
Rammaica 3.20 3.20 3.20 3.20 3.20
Styalam 7.32 7.32 7.32 7.32 7.32
Total 35.37 35.99 35.99 41.03 41.03
Average 7.074 7.198 7.198 8.206 8.206
6.46.66.8
77.27.47.67.8
88.28.4
2009-10 2010-11 2011-12 2012-13 2013-14
Average
73
4.1.6 Total Liability:-
(www.capitaline.com)
Interpretation:-
Above graph show that the industry total liability continually over the 5 year. The industry liability is continues increase in all 5 year the reason is all four company increase the liability but in a year 2012-13. Rammaica’s liquidity is decrease in 2009-10 to 2011-12 than increase.
0
100
200
300
400
2009-10 2010-11 2011-12 2012-13 2013-14
Average
YEAR 2009-10 2010-11 2011-12 2012-13 2013-14
Alfa ica 21.67 24.94 25.76 21.81 21.08
Greenply 679.86 935.41 1075.65 1144 1285.06
Rushil decor 66.05 80.54 133.55 184.37 204.29
Rammaica 4.99 0.17 -3.64 3.64 6.89
Styalam 34.92 55.4 68.17 94.05 107.95
Total 807.49 1096.46 1299.49 1447.87 1625.27
Average 161.498 219.292 259.898 289.574 325.054
74
4.1.7 Investment:- YEAR 2009-10 2010-11 2011-12 2012-13 2013-14 Alfa ica 0.25 0 0 0 0 Greenply 4.13 8.74 8.74 17.53 31.29 Rushil decor 0.01 0.01 0.01 0.01 0.01 Rammaica 0.4 0.4 0.4 0 0 Styalam 0.15 0 0 0 0 Total 4.94 9.15 9.15 17.54 31.3 Average 0.988 1.83 1.83 3.508 6.26
(www.capitaline.com)
Interpretation:-
At the initial level the industry is very poor in making investments at the starting year 2008 -09 industry sold its investments And the year 2011-12 industry had decrease their investment the reason is Alfa Ica, Styalam and Rammaica sold his investment. But in 2012-13 and 2013-14 industry had done good business
0
1
2
3
4
5
6
7
2009-10 2010-11 2011-12 2012-13 2013-14
Average
75
4.1.8 Inventories:-
YEAR 2009-10 2010-11 2011-12 2012-13 2013-14
Alfa ica 12.41 13.92 15.08 12.33 13.32
Greenply 199.75 229.28 277.29 327.91 382.88
Rushil decor 28.56 30.88 38.64 39.25 50.26
Rammaica 1.56 1.56 0.00 0.00 0.24
Styalam 11.88 19.61 24.95 31.10 24.64
Total 254.16 295.25 355.96 410.59 471.34
Average 50.832 59.05 71.192 82.118 94.268
(www.capitaline.com)
Interpretation:-
From the above trend of inventories the industry cost of inventories is continues increase in 2009-10 to 2013-14 the reason is Greenply and Rushil’s inventories cost increase. It is because of increased price level of raw material and stores.
0
10
20
30
40
50
60
70
80
90
100
2009-10 2010-11 2011-12 2012-13 2013-14
Average
76
4.1.9 Total Assets:-
YEAR 2009-10 2010-11 2011-12 2012-13 2013-14
Alfa ica 21.67 24.94 25.76 21.81 21.09
Greenply 679.86 935.41 1075.65 1144.01 1285.06
Rushil decor 66.05 80.54 133.55 184.37 204.29
Rammaica 4.99 0.17 -3.64 3.64 6.88
Styalam 34.92 55.4 68.17 94.05 107.94
Total 407.49 1096.46 1299.49 1447.88 1625.26
Average 161.498 219.292 307.83 289.576 325.052
(www.capitaline.com)
Interpretation:-
From the above trend of total assets of the company we can say that company has a good growth rate. It has increased in first 3 year the reason is Rushil, Greenply and Styalam assets are more increase compare to other company. It is because of company overvalued its fixed assets and investments.
050
100150200250300350
2009-10 2010-11 2011-12 2012-13 2013-14
Average
77
4.2 RATIO ANALYSIS
4.2.1 Current ratio:-
It is a measure of general liquidity and is most widely used to make the analysis for short term financial position or liquidity of a firm. It is calculated by dividing the total of the current assets by total of the current liabilities.
CURRENT ASSETS CURRENT RATIO = _____________
CURRENT LIABILITY
YEAR 2009-10 2010-11 2011-12 2012-13 2013-14
Alfa ica 1.77 1.45 1.38 1.48 1.63
Greenply 1.30 1.06 0.99 1.00 1.00
Rushil decor 1.20 1.14 0.96 0.92 0.95
Rammaica 0.30 0.33 0.16 0.59 4.41
Styalam 1.55 1.09 0.95 0.98 0.94
Total 6.12 5.07 4.44 4.97 8.93
Average 1.224 1.014 0.888 0.994 1.786
(www.capitaline.com)
78
Interpretation:-
The current ratio is a financial ratio that measures whether or not a industry has enough resources to pay its debts over the next 12 months. It compares a firm’s current assets to its current liabilities. Above graph show the current ratio in the year of 2009-10 was 6.12 and suddenly next 3 year falls down the reason is Greenply and Rushil décor decrease the ratio continues. It means the industry next 3 year current assets and current liability was decrease.
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
2009-10 2010-11 2011-12 2012-13 2013-14
Average
79
4.2.2DEBT/ EQUITY RATIO:-
A measure of a company’s financial leverage calculated by dividing its total liabilities by stockholders’ equity. It indicates what proportion of equity and debt the company is using to finance its assets.
TOTAL LIABILITIES
DEBT/EQUITY RATIO = ____________________
SHAREHOLDERS EQUITY
YEAR 2009-10 2010-11 2011-12 2012-13 2013-14
Alfa ica 1.13 1.25 1.44 1.28 1.00
Greenply 1.47 1.69 1.85 1.56 1.24
Rushil decor 2.10 2.43 3.08 2.10 1.69
Rammaica 0.00 0.00 0.00 0.00 15.45
Styalam 0.68 1.26 1.78 2.15 2.23
Total 5.38 6.63 8.15 7.09 21.61
Average 1.076 1.326 1.63 1.418 4.322
(www.capitaline.com)
80
Interpretation:-
A measure of an industry financial leverage calculated by dividing its total liabilities by stockholders' equity. It indicates what proportion of equity and debt the industry is using to finance its assets. Above graph show the industry debt equity ratio was increase in the year of the 2009-10 to 2011-12 and the decrease in year 2012-13 and then also highly increase in year 2013-14 the reason is Rammaica the ratio is increase. it is good position in the market.
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
2009-10 2010-11 2011-12 2012-13 2013-14
Average
81
4.2.3Inventory Turnover Ratio:-
Inventory turnover is the ratio of cost of goods sold by a business to its average inventory during a given accounting period. It is an activity ratio measuring the number of times per period; a business sells and replaces its entire batch of inventory again.
INVENTORY TURNOVER COST OF GOODS SOLD RATIO = ________________
AVERAGE INVENTORY
(www.capitaline.com)
YEAR 2009-10 2010-11 2011-12 2012-13 2013-14
Alfa ica 2.93 3.32 3.24 4.40 4.74
Greenply 5.30 5.93 6.77 6.87 6.34
Rushil decor 2.95 3.33 3.70 4.13 4.29
Rammaica 0.00 0.00 0.00 0.00 65.83
Styalam 6.81 5.48 4.85 5.22 7.00
Total 17.99 18.06 18.56 20.62 88.2
Average 3.598 3.612 3.712 4.124 17.64
82
Interpretation:-
A ratio showing how many times a inventory is sold and replaced over a period. Here the graph show the higher inventory turnover ratio is 17.64 in the year of the 2013-14 the reason is the all four company inventory turnover ratio is increase. It means the industry inventory is more sold and replaced over a period.
0
2
4
6
8
10
12
14
16
18
20
2009-10 2010-11 2011-12 2012-13 2013-14
Average
83
4.2.4DEBTOR TURNOVER RATIO :-
Debtors Turnover ratio is a test of the liquidity of the firm. This ratio establishes the relationship between net credit sales and accounts receivables. The objective of this ratio is to determine the efficiency with which the debtors are being managed. It suggests the number of time the amount of credit sale is collected during the year.
DEBTOR TURNOVER NET SALES RATIO = ________
DEBTOR
YEAR 2009-10 2010-11 2011-12 2012-13 2013-14
Alfa ica 9.94 9.58 8.32 10.07 10.31
Greenply 6.77 7.00 6.81 6.55 6.50
Rushil decor 3.38 3.24 4.63 5.41 5.25
Rammaica 0.00 0.00 0.00 2.00 2.82
Styalam 11.32 9.43 7.95 8.17 8.34
Total 31.41 29.25 27.71 32.2 33.22
Average 6.282 5.85 5.542 6.44 6.644
(www.capitaline.com)
84
Interpretation:-
Debtor turnover ratio or accounts receivable turnover ratio indicates the velocity of debt collection of an industry. In simple words it indicates the number of times average debtors (receivable) are turned over during a year. The graph show debtor turnover ratio in the year 2010-11 is decrease the reason is Alfa Ica and Styalam ratio is decrease. It is the benefit of the industry. But in 2012-13 the ratio is increase the reason is all 3 company debtor turnover ratio is increase.
4.8
5
5.2
5.4
5.6
5.8
6
6.2
6.4
6.6
6.8
2009-10 2010-11 2011-12 2012-13 2013-14
Average
85
4.2.5 TOTAL FIXED ASSEST TURNOVER RATIO :-
A financial ratio of net sales to fixed assets. The fixed-asset turnover ratio measures a company's ability to generate net sales from fixed-asset investments - specifically property, plant and equipment (PP&E) - net of depreciation. A higher fixed-asset turnover ratio shows that the company has been more effective in using the investment in fixed assets to generate revenues.
TOTAL FIXED ASSET TURNOVER RATIO = NET SALES
____________________
TOTAL FIXED ASSETS
YEAR 2009-10 2010-11 2011-12 2012-13 2013-14
Alfa ica 2.28 2.39 2.28 2.79 2.98
Greenply 2.14 1.87 2.27 2.52 2.48
Rushil decor 3.42 2.66 2.52 2.87 1.71
Rammaica 0.00 0.00 0.00 4.76 35.11
Styalam 2.28 2.39 2.28 2.79 2.98
Total 10.12 9.31 9.35 15.73 45.26
Average 2.024 1.862 1.87 3.146 9.052
(www.capitaline.com)
86
Interpretation:-
The total asset turnover ratio measures the ability of a industry to use its assets to efficiently generate sales. This ratio considers all assets, current and fixed. The graph show the industry total assets turnover ratio is decrease in 2010-11 and 2011-12, the reason is a Greenply, Rushil and Styalam fixed turnover ratio is decrease. In the year of 2012-13 and 2013-14 the total turnover ratio is increase.
0
1
2
3
4
5
6
7
8
9
10
2009-10 2010-11 2011-12 2012-13 2013-14
Average
87
4.2.6 EARNING PER SHARE:-
The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability.
NET INCOME- DIVIDENDS ON PREFERRED STOCK EARNING PER SHARE = ____________________
AVERAGE OUTS TANDING SHARES
YEAR 2009-10 2010-11 2011-12 2012-13 2013-14
Alfa ica 5.95 5.33 2.42 4.69 3.91
Greenply 6.01 7.22 4.92 5.15 5.32
Rushil decor 0.00 0.00 0.00 36.69 6.75
Rammaica 0.00 -5.52 9.92 11.50 494.93
Styalam 6.51 2.58 2.73 2.20 1.53
Total 18.47 9.61 19.22 60.23 512.44
Average 3.694 1.922 3.998 12.046 102.488
(www.capitaline.com)
88
Interpretation:-
Financial analyst considers the earning per share as an important measure of profitability. EPS measures the profit available to the equity share holders on a per share basis. That is the amount that they can get on every share held.
The earnings per share has increase rapidly from 2008-09 to 2010-11. In 2010-11 it was lowest at 1.922 and it has increase to in 2011-12 to 2013-14. And that’s reason is Rammaica. This lower ratio will not attract investors. This ratio shows that company fails to increase profitability in 2012-13 and 2013-14.
0
20
40
60
80
100
120
2009-10 2010-11 2011-12 2012-13 2013-14
Average
89
CHEPTER-5 B-PLAN
90
5.1 Company Profile Business plan on Dealership
Name, Address and Contact Detail.
• Name: Samay laminates Pvt ltd
• Address: C/O Samay Pvt Ltd.
Samay Group,
Motipura road,
Himmatnagar Road,
Gujarat
E-mail Id – [email protected]
• Logo of Samay industry:
• Partners:
Mr. Nehal Patel
Mr. Himanshu Patel
Mr. Pintu Oza
Mr. Dhaval Chaudhary
Mr. Ravi Brahmaniya
Mr. Dhruvil Soni
91
Authorized Dealership of: Deep enterprise
Vision – To become the leading laminates in Himmatnagar and other district in Gujarat State in
coming years.
Mission – To obtain and empower the consumer loyalty towards our industry through superior
quality of services, and satisfy consumer demand at extreme level.
5.2 Facility Required for Samay Group
• Raw Material
• Government approval area
• Showroom
• Workshop
• Working capital
• Manpower
5.3 DOCUMENTATION
VAT registration number.
Nagarpalika corticated.
Bank a/c statement.
Address Prof of office and warehouse.
Partnership stamp.
C.S.T VAT tin number.
92
5.4 PRODUCTS OF “Samay laminates”
Door Screen
SF series
Glossy
Mate
Strecture
Digital
5.5 Chart of Samay Group of laminates
Showroom manager
General Manager
Cashier Spare staff Rural salesman Showroom Salesman
Computer operator Cleaner
93
5.6 Distributing channel
Customer
Whole seller
Dealer/Agent
Company
94
5.7 OTHER COMPETITOR DEALER IN MAHESANA DISTRICT
DEALER NAME COMPANY
Dhanlaxmi Greenply
Swastic Greenply
Sadguru Greenply
5.8 Marketing Strategies of Samay group Laminates
Advertising is one of the most common ways to make buyer aware of the new launch of
Samay Laminates special price available or special offer available on shoes.
Local TVC
Hoardings
Paper advertisement in local newspapers.
Focus on the rural and urban area
Relations with the customers and other
95
PromotionStrategies of Samay Group laminates:
Promotional Strategies also plays very important role in increasing sales. The Samay Group can
use below types of Promotional Strategies which can help us.
Special Gifts
Discounts
Special Sale strategy
Exchange Benefits
Marketing areas: -
• Gozariya city
• Ahemdabad city
• Palanpur city
• Himmtanagar city
• Mahesana city
• Patan city
• Unjha city
• Visnagar city
• All Rural and Urban area near by city
For the above all sales area there is a special marketing men we appointed. These marketing and
sales on daily basis. It is decided that everyday each man will go to in two areas, for this, as a
transportation facility we allotted the truck and other travel expenses to man.
96
5.9 EXTRA SALES FACILITY AVAILABLE
• Replace of laminates in 2 years grantee after sale
Salary structure
Designation No of
Persons
Monthly
expenditure
Total
Expenditure
Yearly
expenses
General manager 01 17,000 17,000 2,04,000
Showroom manager 01 15,000 15,000 1,80,000
Showroom Salesman 05
4,000 + 10%
Comm. On
sales
20,000 2,40,000
Rural Salesman 02
5,000+10%
commission
on sale +
allowance
10,000 1,20,000*
Cashier 02 3200 6400 76,800
Spare staff 02 2875 5750 69,000
Cleaner 02 2,500 2,500 30,000
Computer Opt &
Accountant 01 4,000 4,000 48,000
Showroom Rent (1600 sq.
feet) 10000 10000 1,20,000
Total Salary 16
10,25,700*
97
5.10 Sales Outline
SALES OUTLINE:
Sales Forecast
Product 1st Year 2nd Year 3rd Year 4th Year 5th Year
Door Screen 200 225 215 250 275
SF series 325 350 330 360 330
Glossy 175 160 200 180 220
Mate 250 275 320 310 350
Strecture 150 155 200 225 200
Digital 750 850 1000 950 1100
Total 1,850 2,015 2,265 2275 2475
SERVICE CHARGES
Product Out of warranty In warranty
Door Screen 200 -
SF series 150 75
Glossy 200 -
Mate 100 -
Strecture 150 -
Digital 100 -
98
Dealer Margin
MODEL MARGIN
SF 9% (on latest price)
Other 7%
(Depends on Achievement Additional 1.0% margin)
5.11 Fix Assets
Sr. No. Description Amount
1. Service Equipment
a. Tools repair
b. Laminates Components
c. Other
50,000
60,000
20,000
Total Service Equipments (A) 1,30,000
2. Other Fixed Assets
a. Field Bikes (Rs.45,000 X 2 bikes)
b. Vehicles Heavy
c. Computers
d. Air Conditioner & Television
e. Water Purifier
f. Mobile
90,000
3,00,000
50,000
90,000
10,000
40,000
Total Other Fixed Assets (B) 5,80,000
Total Fixed Assets (A)+(B) 7,10,000
99
SOURCE OF FINANCE AT STARTING TIME
(Amount in )
PARTICULARS AMOUNT
Promoters Contribution
Nehal Patel 1,50,000
Himanshu Patel 1,50,000
Pintu Oza 1,50,000
Dhaval Chaudhary 1,50,000
Ravi Bramaniya 1,50,000
Dhruvil Soni 1,50,000
TOTAL 9,00,000
100
5.12 Profit & Loss account for the year ended 2013-14 to 2017-18
Particular 2013-14 2014-15 2015-16 2016-17 2017-18
Income: -
Commission on selling
Laminates
16,00,000 20,00000 24,00,000 27,32,000 30,00,000
Incentives on achieving
target
75,000 1,25,000 1,50,000 1,65,000 1,93,000
Repairing & service
charges
20,000 3000 45,000 7,000 87,500
Total (A) 1695000 21,28000 25,95000 2905000 3280500
Expenses: -
Office rent 1,20,000 1,20,000 2,00,000 2,50,000 2,50,000
Salary 10,25,700 12,25,500 15,22,500 16,22,500 18,49,914
Electricity bill 18,000 32,000 35,000 36,500 40,500
Telephone bill 25,000 34,000 38,000 38,500 39,300
License fees 30,000 16,000 22,000 23,300 28,800
Stationary expenses 10,000 47,000 58,000 63,000 78,000
Dep. on vehicle 45,000 38,250 32,512 57,635 48,990
Advertising expenses 50,000 65,000 71,000 72,000 74,000
Fuel expenses 30,000 56,000 59,000 64,000 86,000
Dep. on assets 28,000 25,200 22,680 20,412 18,370
Dep. on furniture 13500 11,475 9,753 8,290 7,047
Dep. on tools &
equipments 20,600 18,540 16,686 25,017 22,515
101
Dep. on computer 5,000 4,500 4,050 3,645 3,080
Total (B) 14,20,800 16,93,465 20,91,181 2284799 2506516
PBT (A-B) 27,4200 4,34,535 50,38,19 620201 773984
Tax on profit 82260 130360 151145 186060 232195
Net profit 191940 304175 352674 434141 541789
102
5.13 Balance sheet for the year ended 2013-14 to 2017-18
Particular 2013-14 2014-15 2015-16 2016-17 12017-18
Assets: -
Other assets 2,80,000 2,52,000 2,26,800 2,26,800 3,33,708
Vehicles 3,00,000 2,55,000 2,16,750 4,16,750 3,26,603
Furniture 90,000 76,500 65,025 65,025 2,46,981
Computer 50,000 45,000 40,500 40,500 32,805
Cash balance 1,00,230 1,23,585 2,24,080 2,24,080 2,24,080
Bank balance 1,00,000 3,00,000 4,62,000 2,92,126 3,59,255
Tools and equipment 2,06,000 1,85,400 1,66,860 2,66,860 2,25,157
Deposits 2,00,000 2,00,000 2,00,000 2,00,000 2,00,000
Total 13,26,230 14,37,485 16,02,015 17,32,141 19,48,589
Liabilities: -
Owner funds 9,00,000 9,00,000 9,00,000 9,00,000 9,00,000
Net profit 191940 304175 352674 434141 541789
Total 1091940 1204175 1252674 1334141 1441789
103
5.14 PROJECTED CASH FLOW
Net present value (NPV)
YEAR
CASH
FLOW DEPRECIATION
NET CASH
FLOW
P.V. FACTOR
@10%
P.V. OF
CASH FLOW
1 191940 112,100
79840 0.909 72574.56
2 304175 97,965
206210 0.826 170329.46
3 352674 85,681
266993 0.751 200511.743
4 434141 114,999
319142 0.683 217973.986
5 541789 100,002
441787 0.620 273907.94
Total
935297.689
Here cash outflow = Rs.9,00,000
Required rate of return= 10%
NPV= P.V of cash flow- cash outflow
935297.689-.9,00,000
35297.689
Here we can say that if NPV is greater than 0 then the project is accepted and we can see that in
our project NPV is greater than 0 i.e. 35297.689 our project is accepted.
104
Chapter 6 Conclusion
105
Conclusion
An attempt has been made through this report to study the present position and prospective
future growth of laminates industries in the India. The report tries to give an overall view of
these industries and investigates their possible growth. An attempt has also been made to focus
the of raw materials, chemical, manpower, technology requirements, for laminates industries
The study on existing as well as the future market has been included in this report, which will be
useful for the existing as well as prospective entrepreneurs of the region. The problem faced by
the local entrepreneurs along with the suggestions regarding these problems has been included in
this report which will be beneficial to the existing as well as the prospective entrepreneurs.
The brief status report contemplates to focus the health of the laminates industries by looking
into various technical and economic aspects, the future growth potential of these type of the
industries have also been dealt with in this report. For the benefit of those entrepreneurs who are
planning to set-up laminates and laminates based industries in the near future we have given it a
scientific outlook.
106
CHAPTER 7
SUGGESTION
107
SUGGESTIONS AND RECOMMENDATIONS FOR DEVELOPING LAMINATES
INDUSTRIES IN INDIA
A few suggestions have been made in this chapter to overcome these problems and also to
develop laminates industries in the India
The Government and Non-Government organizations engaged in the promotion of small scale,
tiny and village industries, they should formulate a policy to restrict the sale of local hides and
skins to the outside the Country. This would ensure that the existing tanneries do not face
scarcity of raw hides and skins. The concerned India Government should encourage the
establishment of new laminates company in the Country so as to cater the needs of the local
people who want laminates. The Government can set-up raw material banks in certain central
areas to make the raw material available for laminates industries at a comparatively cheaper
rates. This will enable to bring down the cost of raw material and prevent blockage of working.
The Government may take some effective steps to revive the training centre for laminates
industry.
The proposed Corporation will be very much useful for providing the basic infrastructure
required for laminates industries in the state. The corporation may provide raw materials required
by the local entrepreneurs for their respective units at a reasonable price and thus ensuring easy
accessibility of the raw material. Corporation may provide common facility services to the
laminates industry units of the state. For this purpose the government can take the help of the
central government. This would create more job opportunity for the unemployed youth in this
and contribute to the economic development of the state.
108
CHAPTER 8 LIMITATION
109
LIMITATION OF THE REPORT
• In this report we are assuming that selected five companies are representing the whole
industry but it may not be.
• We select five companies on the basis of available financial data it may be possible that
major companies remain unconsidered because of lack of financial data.
• Here we selected five major companies on the basis of only net profit ratio so it may be
possible that other parameters of the companies are good compare to selected companies.
• In the PEST and porter’s five force analysis we include all possible as per our
understanding but there may be chances of missing some variable.
• In case of financial analysis we had done five year financial analysis from 2009-2010 to
2013-2014.
• We try our best effort to apply all possible strategic tools and financial data to study the
performance of laminates industry but it may possible that some portion of the industry
remain unanalyzed.
110
CHAPTER 9 BIBLIOGRAPHY
111
BILIOGRAPHY
• Book:
Authur A. Thomopson, Jr, A.J. Strickland III, John E. Gamble, Arun K. Jain “Crafting
and Executive Strategy” 16th edition.
• http://info.shine.com/company/alfa-ica-india-ltd/104.html
• http://en.wikipedia.org/wiki/Greenply
• http://info.shine.com/company/greenply-industries-ltd/1169.html
• http://www.indiamart.com/greenply-inds/
• http://www.stylam.com/
• https://in.linkedin.com/in/laminatesandadhesives
• http://www.hdfcsec.com/company/Rammaica-(India)-Ltd.html
• http://krupathakkar.trustpass.alibaba.com/company_profile.html
• http://www.indiamart.com/
• http://www.moneycontrol.com
• http://www.capitaline.com/