nirav final project report on uniflex

7/31/2019 Nirav Final Project Report on Uniflex

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ACKNOWLEDGEMENT

A Project Report is never successfully completed without the guidance from appropriate person. So

now its the right time to express my sincere gratitude towards all those, who have helped me to

complete the project.

I am thankful to the coordinator Mr. Patel Keyur, distinguished professor of LAXMI INSTITUTE

OF COMMERCE for giving me the opportunity to work on this project. It was a great learning

experience for me and I could actually put in practice, the learning acquired in the classroom.

Also, this project helped me in understanding the overall functioning of the industry. I am also

thankful to External Guide Mr. Nimesh Hindocha, A.G.M (Commercial) of UNIFLEX CABLES

LIMITED. And also the Internal Guide Mr. Patel Piyush, for giving me valuable suggestions

throughout the course of the project.

I am also thankful to entire faculty of the institute and staff members of Uniflex Cables Ltd. for the

advice and suggestions, without which this project would not be a successful one. Last but not the

least I would like to appreciate my parents who have always motivated me directly and indirectly

to do my work with utmost dedication.


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INDEX

SR. NO. PARTICULARSPAGENO.

1. INDUSTRIAL OVERVIEW2. COMPANY OVERVIEW

COMPANY PERFORMA ABOUT UNIFLEX CABLES LTD VISION & MISSION OF THE COMPANY ORGANISATION CHART QUALITY CONTROL ACHIEVEMENTS & CERTIFICATES

PRODUCT RANGE ENTERPRISE RESOURCE PLANNING (ERP) PLANNING DEPARTMENT PURCHASE DEPARTMENT STORE DEPARTMENT PRODUCTION DEPARTMENT DESPATCH DEPARTMENT EXPORTS

3. THEORY & LITERATURE REVIEW

4. RESEARCH METHODOLOGY5. DATA ANALYSIS & INTERPRETATION

ABC ANALYSIS EOQ ANALYSIS FSN ANALYSIS INVENTORY TURNOVER RATIO

6. FINDINGS7. SUGGESTIONS8. BIBLIOGRAPHY


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Industrialoverview


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INDIAN CABLE INDUSTRY9

Indian Cable Production US$ 2.2 billion:The Indian cable production in 2011 was US$ 2.2 billion. This means that the Indian production iscomparable to that of France or Mexico, for example. Chinas cable production in 2011 isestimated to be US$ 17 billion, nearly 8 times higher than India. This ratio is much higher than theratio of Chinas GDP to Indias, as (a) China has many manufacturing industries that are veryintensive in their consumption of cable, and (b) China is going through a sustained boom ininfrastructure development.

Very Large Number of Cable Producers:The Indian cable industry is highly fragmented with a very large number of cable producers

many hundreds of companies a larger total than can be found in any other country in the worldexcept China. Many of these Indian companies are small-scale cable producers, the smallest of which are family-run operations with only the most basic of production equipment.

Larger Indian Cable Producers:At the other end of the scale in the Indian industry are some relatively large cable producers, buteven amongst these larger players there are only a small number whose annual sales of insulatedwire & cable approach or exceed US$ 100 million. The larger Indian cable producers includeFinolex Cables, the Birla Group (including Universal Cables, Vindhya Telelinks and Birla EricssonOptical), Sterlite Optical Technologies, Havells India, Nicco Corp. and KEI Industries. These are

all listed companies. Polycab is a large privately owned Cable producer, while Hindustan Cables isa state-owned manufacturer of telecom cables.

Very Limited Consolidation:The Finolex group, accounts for only 5% of total Indian cable production. In mature markets itwould be more usual to find that the largest cable producer had 15% to 20% (and sometimes amuch higher percentage) share. There has been only very limited consolidation amongst the major

players in the Indian cable industry. The tendency of Indian cable companies to grow organically,rather than by acquisition of competitors, means that no clearly dominant groups have emerged inthe Indian cable industry.

Many Major Listed Cable Companies:Most of the major cable companies in India are listed companies or are part of large industrialgroups that are themselves listed companies. This bias in India towards listed companies contrastswith many other developing regions of the world where listed cable companies are not sowidespread as they are in India. In China, for example, only a few of the large cable companies are


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listed, as most of the others have developed from state owned enterprises or have been newlyestablished by private entrepreneurs.

Counterfeit Cables an Issue:

In mature markets, such as Western Europe, products such as building wire are generally regardedas commodities, with lowest price and availability being the key criteria for purchasers. Quality is asecondary consideration in mature markets, as purchasers usually assume that all cables that havethe appropriate product approvals meet the required performance specifications. In India, however,the market situation is different: domestic consumers (e.g. for building wire used in residentialconstruction) are likely to be quality conscious, aware of brands of cable that have a reputation for quality and wary of buying poor quality products.

Foreign Investment in JVs:There are a number of cable-making joint ventures in India involving foreign groups, but there hasnot been a big movement by foreign investors into Indian cable manufacturing. The track recordfor foreign investors in the Indian cable industry is generally poor. There are several examples of foreign companies that in the past have established joint ventures in India but which haveeventually withdrawn, either due to market conditions remaining poor over a number of years or toconsistently weak performance by the joint venture. Cable businesses in India that are whollyowned (or nearly so) by foreign groups are rare. It is interesting that some of the leading globalcable groups have no presence in India, except via trading companies.eg. Finolex joint venture with

Essar Group Inc., USA.

India is not a major cable exporter:India has not traditionally been a major exporter of wire & cable. Total Indian exports reported inthe countrys trade statistics for 2011 were US$ 148 million. This compares to 2011 exports fromChina under the same code of US$ 4.8 billion! The Chinese figure is particularly high, as exportsin this trade category include cable assemblies which have been growing very strongly in recentyears.

But Indian exports Are Growing:Though Indian exports of wire & cable are small compared to many other Asian countries, theyhave been growing in recent years. Increasing from US$ 38 million in 2005 to US$ 148 million in2011. One of the main elements of this growth has been cable exports from India to the UAE, upfrom US$ 8 million in 2005 to US$ 32 million in 2011, including US$ 19 million of winding wire.Part of this growth in trade will be due to booming cable consumption in the UAE, but Dubai isalso an important trading centre, so some of the wire & cable imports from India are likely to be re-exported.


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So Indian cable industries are in developing & competitive mode & will defeat China or Asianindustries on the bases of production & export.MAJOR COMPETITORS IN CABLE INDUSTRIES:

1) KEI Industries2) Birla Ericsson Optical Ltd3) Aksh Optifibre Ltd4) CCI Cables Ltd5) Delton Cables6) Icon Cables7) Reliance Cables8) Aerolex Cables Pvt. Ltd9) Bhawal Insulation And Engineering Ltd10) Bright Cable11) Cable Corporation of India12) Cords Cable13) Daksha Cables Pvt Ltd14) Famcom Rubber Products India Pvt Ltd15) Finolex Cables Limited16) Garg Associates Ltd17) Gemscab Industries Ltd18) Havells India Ltd19) Karnataka Cable And Metal Industries20) KMA Electricals (p) Ltd21) LC Premium Cables22) National Cables23) Nolex Cables24) Paradise Cables Limited25) Polycab26) Uniflex cables Limited27) Universal Cables


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Company Performa:

NAME OF THE UNIT UNIFLEX CABLES LIMITED

YEAR OF ESTABLISHMENT 1981

ADDRESSREGISTERED OFFICE

Apar House, Bldg. No. 5,Corporate Park,Sion-Trombay Road,Chembur,Mumbai 400 071Tel. : (022) 25263400 / 67800400Fax : (022) 25246326

WORKS Plot No. 158 to 163 and 153, GIDC,Umbergaon 396171Distt. Valsad (Gujarat)Tel. : (0260) 2562412Fax : (0260) 2562950

EMAIL ID [email protected]

WEBSITE www.unicab.com

FORM OF THE ORGANIZATION Public Limited Company

BANKERS Indian Bank Syndicate Bank

BOARD OF DIRECTORS Dr. Narendra D. Desai (Chairman)

Shri Kushal N. Desai (Director)

Shri Chaitnya N. Desai (Director)

Mr. Vishesh Bhatia (G.M)

Mr. Vijay Kumar Bajaj (COO)

AUDITORS M/s Rashmi Zaveri & Co.Chartered Accountants

REGISTRAR & TRANSFER AGENTS M/s Karvy Computershare Pvt. Ltd.

(Madhapur, Hyderabad 500 081)
mailto:[email protected]://www.unicab.com/mailto:[email protected]://www.unicab.com/


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ABOUT UNIFLEX CABLES LIMITED, UMBERGAON, (GUJARAT)

COMPANY PROFILE:

Uniflex Cables Ltd. is a state-of-the-art cable manufacturing Company, which has come a long

way from being a partnership firm in 1981 to one of the top rated cable Company today. The

Company is in a unique position to serve both the segments of cable industries i.e. Power as well as

Telecom. The Company has one of the most modern manufacturing facilities at its works at

Umbergaon, Gujarat which is 140 kms. from Mumbai (Bombay).

Uniflex cables limited , a publicly listed (BSE) entity one of the largest and leading Cable

Company in India serving its customers since 1981 with its wide range of cables by its well

known Trade name UNICAB & UNIFLEX .


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The Company markets its cables under its brand name "UNICAB" which is well known brand in

the industry today. The Company has a very wide and varied client profile which not only includes

The State Electricity Boards and Department of Telecommunications (DoT) but also The Defense,

Nuclear Power Corporation, Directorate General of Mines Safety, Railways and Navy.

The Company has imported the state-of-the-art technology from Royale Systems, USA for

manufacturing of XLPE Cables and in the Telecom cables for Optical Fibre Cable (OFC) the

Company has imported all the major items of Plant and machinery from Swisscab, Switzerland and

for Jelly Filled Telecommunication (JFTC) cables from Nokia Maillefer which are again the

leading suppliers of these kind of machines in the world. The Company has another advantage that

all its plants are strategically located at one site only which not only gives its flexibility of

operations but also provide the economics of scale.

The Company has achieved an ISO 9001 certification for the quality system related to its Optical

Fibre, XLPE, PVC and JFTC cable manufacturing. This certification has been received from NV

Kema, a member of the European Network for Quality Assessment and Certification EQNET ".

This speaks volume for Company's consciousness towards quality products at affordable prices for

its clients.

On successful completion of the open offer of its equity share in July 08, by Apar Industries Ltd(AIL) a profit making and dividend paying and listed entity, the Company has 1) become the

subsidiary of AIL 2) AIL has become Promoter of the Company and acquired the control and

management of the Company.

NEW PROMOTER & CHANGE IN MANAGEMENT

Apar Industries Ltd (AIL) a listed (BSE & NSE), profit making and consistent dividend paying

Company, acquired substantial equity shares with voting rights of the Company from Baid family

members, the then promoter group of the Company resulting in change in control and

management of the Company.


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AIL now holds 65.47% of the paid up Equity share Capital of the Company and has (i) become the

Promoter of the Company (ii) acquired control and Management of the Company and (iii) the

Company has become subsidiary of AIL.

Currently, AIL has two business divisions; (i) Transformer and specialty oils (ii) Conductor each

of which has significant market share position in its segment. AIL Conductor business is similar

to that of Company and its operations are complimentary to the Companys business.

VISION:

To become globally recognized by 2015 as an Indian cable manufacturer that provides best

quality product at competitive price.

MISSION:

To build a strong brand through business ethics, Technological expertise, long term relationship

with our esteemed customers and maintain superior quality product for customers satisfaction.

BOARD OF DIRECTORSChairman Dr. Narendra. D. DesaiDirector Mr. Kushal N. DesaiDirector Mr. Chaitanya N. DesaiDirector Mr. F. B. ViraniDirector Dr. N.K.ThingalayaDirector Mr. H. N. ShahName of General Manager of Marketing Mr. Vishvesh Bhatia

Manager & Chief Operating Officer Mr. Vijay Kumar Bajaj

STRUCTRE OF THE COMPANY

Uniflex Cables Ltd. act upon the rules & regulations of the Companies Act, 1948. The company

have well defined structure. It has the following departments:


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1. HR/ Personnel department

2. Accounts & COSTING departments

3. Purchase departments

4. Store department

5. Production department

6. Quality department

7. Sales & Excise department

Organization Chart:


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QUALITY POLICY:

At UNIFLEX, We believe in the Total Quality Management philosophy as a means for continuous

improvement, total employee participation in quality improvement and customer satisfaction. Its

concept of quality addresses people, processes and products.

QUALITY CONTROL: Uniflex believes in offering best quality products to customers at most competitive price The Technical Dept is manned by several engineers having rich experience who design

the cable before making a technical offer and issue technical manufacturing design for

production on receipt of order A centralized laboratory has been set up to support Incoming raw material testing, in-

process testing and finished goods internal & external inspection Senior and middle level engineer managers are responsible to ensure technical

compliance and quality Cables are periodically Type Tested in-house & at Independent laboratories for design

compliance In-house manufacture of PVC and Elastomeric compounds give a competitive edge to

ensure product quality The company lays emphasis on investing in latest test and measuring equipments and

training its personnel.


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GUIDING PRINCIPALS OF UNIFLEX CABLES LTD

1. We will conduct ourselves or business with the highest standards of honesty, integrity and

professionalism.

2. We will recognize the positive contribution that individuals & our team members to

produce business successfully.

3. We will encourage a learning environment where people can constantly grow, develop &

contribute.

4. We will strive for excellence and seek continuous improve in everything.

5. We will respect all stockholders including employees, customers and suppliers & still themwith a passion to deliver the highest quality goods services.

ACHIEVEMENTS THROUGH THE YEARS ...


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(Year 1981)

ESTABLISHED WITH ELASTOMERIC DIVISION

(Year 1990)

INCORPORATED AS UNIFLEX CABLES LTD

(Year 1993)

POWER CABLE DIVISION

(Year 1995)

OPTICAL FIBER CABLE DIVISION

(Year 1996)

JELLY FILLED (PIJF) CABLE DIVISION

(Year1996)

ISO 9002 CERTIFIED

(Year 1999)

ISO 9001 CERTIFIED

(Year 2003)

EXPORT HOUSE

(Year 2008) : BECAME A SUBSIDIARY OF APAR INDUSTRIES LTD. (AIL)


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Certificates & Credentials:

ISO 9001:2000 (KEMA) Bureau of Indian Standards (BIS) Bharat Sanchar Nigam Limited (BSNL-1) Bharat Sanchar Nigam Limited (BSNL-2) Bharat Sanchar Nigam Limited (BSNL-3) Bharat Sanchar Nigam Limited (BSNL-4) Department of Telecommunication (DOT-1) Department of Telecommunication (DOT-2)

Department of Telecommunication (DOT-3) Ministry of Defence (Indian Navy) National Thermal Power Corporation Limited (NTPC) Research Designs & Standards Organization (RDSO) Telecommunication Engineering Centre (TEC1-1) Telecommunication Engineering Centre (TEC1-2) Telecommunication Engineering Centre (TEC1-3) Telecommunication Engineering Centre (TEC1-4) Telecommunication Engineering Centre (TEC2) Telecommunication Engineering Centre (TEC3) Telecommunication Engineering Centre (TEC4) Telecommunication Engineering Centre (TEC5)


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Product Range:

ELECTRICAL CABLES:

HT & LT Power & Electric Cables : 1) HT XLPE CABLE

2) LT XLPE / PVC INSULATED CABLE

3) CABLES WITH FR / FRLS

4) HOUSE WIRE FR / FRLS

1) HT XLPE CABLE:

2) LT XLPE / PVC INSULATED CABLE:
http://www.uniflexcable.com/ht-and-lt-power-cables.htmlhttp://www.uniflexcable.com/ht-and-lt-power-cables.html


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3) CABLES WITH FR / FRLS:

4) HOUSE WIRE FRLS / FR:


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ERP - Enterprise Resource Planning:

Short for e nterprise r esource p lanning , ERP is business management software that allows an

organization to use a system of integrated applications to manage the business. ERP software

integrates all facets of an operation, including development, manufacturing, sales and

marketing.

ERP Modules

ERP software consists of many enterprise software modules that an enterprise would purchase,

based on what best meets its specific needs and technical capabilities. Each ERP module is focused

on one area of business processes, such as product development or marketing. Some of the more

common ERP modules include those for product planning, material purchasing, inventory control,

distribution, accounting, marketing, finance and HR.

As the ERP methodology has become more popular, software applications have emerged to help

business managers implement ERP in other business activities and may also incorporate modules

such as CRM and business intelligence and present them as a single unified package.

The basic goal is provide one central repository for all information that is shared by all the various

ERP facets in order to smooth the flow of data across the organization.
http://www.webopedia.com/TERM/I/integrated.htmlhttp://www.webopedia.com/TERM/E/enterprise_application.htmlhttp://www.webopedia.com/TERM/A/application.htmlhttp://www.webopedia.com/TERM/C/CRM.htmlhttp://www.webopedia.com/TERM/B/Business_Intelligence.htmlhttp://www.webopedia.com/TERM/U/unified.htmlhttp://www.webopedia.com/TERM/I/integrated.htmlhttp://www.webopedia.com/TERM/E/enterprise_application.htmlhttp://www.webopedia.com/TERM/A/application.htmlhttp://www.webopedia.com/TERM/C/CRM.htmlhttp://www.webopedia.com/TERM/B/Business_Intelligence.htmlhttp://www.webopedia.com/TERM/U/unified.html


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1) PLANNING DEPARTMENT:

Function of planning department:

The main function of planning department is to take the order report from the top

management & study it properly & make planning on it as in specific period they

have to complete this task.

On that collected order report they study deeply & make PDS (Production Data

Sheet) from that with the help of ERP (Enterprise Resource Planning) system.

PDS contains whole technical specification of the particular order report.

After making PDS they will check in the ERP system as required raw-materials &

equipments etc is available on that quantity or not, if it is adequate then ok, & if it is

inadequate then they will make PI (i.e. Purchase Indent).


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P.I. is a sheet which contains the list of required raw-material & spare parts which

will useful in completion of the task.

Then they will submit it to the top management who will study on it & will pass the

P.I. to the purchase department for purchase these items in a specific period of time.

Then the planning department will make the monthly plan (schedule) as per the

delivery date of the customer.

Then they will inform in a written form to the production department as prepared

schedule they have to produce these quantity in a particular time.

After that they will prepare M.I.S. (Monthly Information Summary) report in detail

as quantity of the raw-material consumed & quantity of the goods produced in a

month & it will submitted to the H.O.D. (Head Of Department).

So these all process is done & maintain in E.R.P. system.

2) Purchase Department:

Function of purchase department:


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The main function of the purchase department is that as they will receive the P.I.

(Purchase Indent) from the planning department & they will find the suppliers (3 &

4) suppliers who can provide the goods and services as per their requirements and

as far as possible.

After finding the suppliers they will send the P.I. to them & after that they will send

the quotation to the company with their price.

After the collection of the quotation from the suppliers they will submit to the

management who will decide from which supplier they will purchase goods and

services.

After selection of the supplier purchase department will make P.O. (i.e. Purchase

Order) with the help of E.R.P. system & send it to that selected supplier.

So these all process is done & maintain in E.R.P. system.

3) Store Department:


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4. Aluminum wire rode

5. Copper wire rode

6. Polyester tape & water blocking tape

7. G.I. (Galvanize Iron) wire & strip (For Armoring)

8. Polyethylene master batch (for colour insulation)

9. P.V.C. (Poly Vinyl Chloride) compound.

10. X.L.P.E. (Cross-linked Polyethylene) compound

Photos of raw materials:

Aluminum tape: S.S. (Stainless Steel)wire:

Copper tape:


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Aluminum wire rode:

Copper wire rode:


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Polyester tape & water blocking tape:

G.I. (Galvanize Iron) wire & strip (For Armoring):

Polyethylene master batch (for color insulation):


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4. After accepting they will prepare a G.R.N. (Goods Receipt Note) through

the E.R.P. system, in that they will fill all the details have ion the invoice

such as, suppliers name and address, material name, quantity & quality,

rate, challan & invoice number, challan & invoice date, transporter, vehicle

number, inward date, gate entry number, etc.

5. So, all this details are filled in G.R.N. (in E.R.P. system) & take printout in

triplicate form, from which one copy will keep in store, one will send to

purchase department & one will send along with original invoice to the

account department.

6. After preparing and submitting the G.R.N. to the account department than

only company will do payment to the suppliers.

7. After preparing G.R.N. they have to prepare I.O.M. (Inter Office Memo), in

which they have to fill those G.R.N. which are cleared, & after that they

have to submit & mail it to the head of department & A.G.M (Commercial)

etc, so they can get the clear record of the goods are received & stored in the

company warehouse.

8. In store they are also preparing Gate pass through the E.R.P. system. The

gate pass is useful when company wants to send some goods, raw-materials,

spare parts etc outside the company.


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9. Store department issue the goods by receiving the Store Requisition Cum

Issue Slip, in which user have to write product or materials names & their

size, quantity as per their requirements.

10. After that only store holder will give the products or materials to the user.

11. After that requisition slip will be entry on the E.R.P. system for maintaining

the actual stock.

12. After that store holders will take the stock physically in a monthly basis &

then again that figures will be entry on the E.R.P. system so they will get the

actual stock.

13. So, in store they maintain their whole record in E.R.P. system & run their

business efficiently.

4) Production Department:

Manufacturing Process of H.T. & L.T. Power Cables: The manufacturing process of cable includes eight main stages they are

as follows:

Flow Chart:


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Aluminum wire rods are using in more quantity because it cheaper, light in weight,

easily available & easily processable.

Copper wire rode conductors are the best conductor but it is costly. Customers first

requirement is copper but for cheaper rate they manage in aluminum conductors.

Copper wire rods come in 7 mm form.

Aluminum wire rods come in 9 mm form.

A) Wire Drawing / Rode breakdown machine (RBDM):

The main function of the RBDM machine is to drawing the copper & aluminum

wire rods into customers required size or we can say as per customersrequirements.

The wire drawing process is quite simple in concept. The wire is prepared by

shrinking, so that it will fit through the die, the wire is then pulled through the

die. As the wire is pulled through die, its volume remains the same, so as the

diameter decreases. E.g. 7 mm to 5 mm & 9 mm to 4 mm.

Lubrication: lubrication in the drawing process is essential for maintaining good

surface finish & long die life.


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Wet drawing: the dies and wire or rode are completely immersed in lubricant.

Dry drawing: the wire or rod passes through a container of lubricant which

coats the surface of the wire or rod.

For lubrication they are using oil.

B) Stranding Machine:

The main function of stranding machine is to prepare conductor as per customer

requirement.

They can make single conductor from 7 to 91 bobbins as per customer

requirements.

2) Core / Insulation:

Core means insulated conductors, we can say insulation done on the conductor is

called core. This process is done on the extruder machine.

For insulation they are using P.V.C. (Poly Vinyl Chloride) & X.L.P.E. (Cross-

linked Polyethylene) as a material & these both are called as polymers.


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Curing means one type of heat treatment in which they keep insulated conductors in

90 degree hot water for 3 to 8 hours.

So this is called insulation of the conductors.

3) Laying up / Tapping:

The laying up or tapping is done on the laying machine.

The function of the laying up is to bunch the required number of cores through the

tapping.

Company using copper tape, aluminum tape, polyester tape, water blocking tape etc

as a tapping material.

4) Inner-sheathing ( Inner Coating ):

This process is done on the Extruder machine.

Inner-sheath is done on the laid up core.


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They use P.V.C. as a material for inner-sheathing.

We can say it is a one type of coating or insulation.

The basic purpose of laid up core sheathing is to protect & prevent the core from

moisture, water, chemicals to reach the core during the process, so the main motto

is to protect the core.

5) Armoring:

Armoring is done on the armoring machine.

Company is using G.I. (Galvanized Iron) strip & wire & aluminum strip & wire as a

material for armoring.

The main purpose of the armoring is to protect insulated cores, & to provide

mechanical strength to cable, 7 as a earthing.

For single core cable company uses aluminum strips & wire for armoring.


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According to the capacity of the machine, it can hold up to certain number of

bobbins, e.g. armoring machine can hold up to 24, 36, 48, & 72 bobbins.

6) Outer-sheathing ( outer coating ):

Outer-sheathing is also called as jacketing or final coating.

For outer-sheathing company are using P.V.C. as a material.

Company are using three types of P.V.C. materials as per customers requirements.

Few customers want simple P.V.C. coating i.e. first type.

Few customers want that type of P.V.C. materials which contains the quality of fire

resistance (F.R.) contents.

Few customers want that type of P.V.C. materials which contains the quality of fire

resistance & low smoke (F.R.L.S) contents.


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(b) Conductor Resistance (C.R.) test.

(c) Volume Resistance (V.R.) test.

After all these tests they will send Quality Measure Report (Q.M.R.) to the

customer & then they will declare these goods as a finished goods & then go for the

packing & dispatching.

So, this is the manufacturing process of the power cables at Uniflex Cables Ltd,

Umbergaon.

5) Dispatch Department:

The function of Dispatch Department

The function of the dispatch department is to collect the finished goods from the

production & quality checking department with one sheet of paper which contains

the customers name, quantity, size, etc from which they have to pack those

finished goods and do arrangements for dispatching it through the truck, ship, or

through airways as per condition.

After all these they will make report on dispatched goods in detail & submit it to the

head of department & higher authority of the company.

So these all process is done & maintain on the E.R.P. system very efficiently.


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EXPORTS (INTERNATIONAL BUSINESS)

Uniflex Cables Ltd is a leading manufacturer of Telecom & Power Cables in India. After serving

the domestic market for more than 20 years, Uniflex entered the International Market last year.

Today, the cables are being exported to more than 25 countries in Middle East, South East Asia,

Africa, Australia, Russia and Europe. Backed by its dedicated Export Department & its

representatives in various countries, Uniflex Cables has, the ability to dispatch material and &

ensure that the immediate & ongoing needs of the clients are met- WORLD WIDE.

EXPORT PERFORMANCE:


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CUSTOMERS OF THE UNIFLEX CABLES LTD:

OUR ESTEEMED CUSTOMERS: ENERGY SECTOR

Our Esteemed Customers: Industry sector


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INTRODUCTION OF THE TOPIC

INTRODUCTION:

Inventories constitute the most significant part of current assets of a large majority of companies in

India. On an average, inventories are approximately 60% of current assets in public limited

companies in India. Because of the large size of inventories maintained by firms. It is therefore,

absolutely imperative to manage inventories efficiently in order to avoid unnecessary investment. It

is possible for a company to reduce its levels of inventories to a considerable degree e.g. 10 to 20

percent, without any adverse effect on production and sales, by using simple inventory planning

and control techniques. The reduction in excessive inventory carries a favorable impact on acompanys profitability.

MEANING OF INVENTORY:-

Inventory is the physical stoke of goods maintained in an organization for its smooth running. In

accounting language it may mean stock of finished goods only. In a manufacturing concern, it may

includes raw materials, work-in-progress and stores etc. In the form of materials or supplies to be

consumed in the production process or in the rendering of services. In brief, Inventory is

unconsumed or unsold goods purchased or manufactured.

NATURE OF INVENTORIES:-

Inventories are stock of the product a company is manufacturing for sale and components that

make up the product. The various forms in which inventory exist in a manufacturing company are

raw materials, work in progress and finished goods.

RAW MATERIALS:-

Raw materials are those inputs that are converted into finished product though the manufacturing

process. Raw materials inventories are those units which have been purchased and stored for future

productions.


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WORK IN PROGRESS:-

These inventories are semi manufactured products. They represent products that need more work

before they become finished products for sales.

FINISHED GOODS:-

Finished goods inventories are those completely manufactured products which are ready for sale.

Stock of raw materials and work in progress facilitate production. While stock of finished goods is

required for smooth marketing operation. Thus, inventories serve as a link between the production

and consumption of goods.

The level of three kinds of inventories for a firm depends on the nature of its business. A

manufacturing firm will have substantially high levels of all three kinds of inventories, while a

retail or wholesale firm will have a very high and no raw material and work in progress

inventories. Within manufacturing firms, there will be differences. Large heavy engineering

companies produce long production cycle products, therefore they carry large inventories. On the

other hand, inventories of a consumer product company will not be large, because of short

production cycle and fast turn over. Firms also maintain a fourth kind of inventory, supplies or

stores and spares.

SUPPLIES:

It includes office and plant cleaning materials like XLPE & PVC compound, S.S. & G.I wires

aluminum, copper etc. These materials do not directly enter production, but are necessary for

production process. Usually, these supplies are small part of the total inventory and do not involve

significant investment. Therefore, a sophisticated system of inventory control may not be

maintained for them.


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MANAGEMENT OF INVENTORY

Inventories constitute the principal item in the working capital of the majority of trading and

industrial companies. In inventory, we include raw materials, finished goods, work-in-progress,supplies and other accessories. To maintain the continuity in the operations of business

enterprise, a minimum stock of inventory required. However, the physical control of inventory

is the operating responsibility of stores superintendent and financial personnel have nothing to

do about it but the financial control of these inventories in all lines of activity in which they

comprise a substantial part of the current assets is a frequent problem in the management of

working capital. Management of inventory is designed to regulate the volume of investment in

goods on hand, the types of goods carried in stock to meet the needs of production, and sales

while at the same time, the investment in them is to be kept at a reasonable level.

CONCEPT OF INVENTORY MANAGEMENT

The term inventory management is used in two ways- unit control and value control.

Production and purchase officials use this word in term unit control whereas in accounting this

word is used in term of value control. As investment in inventory represents in many cases, oneof the largest asset items of business enterprises particularly those engaged in manufacturing,

wholesale trade and retail trade. Sometimes the cost of material used in production surpasses

the wages and production overheads. Hence, the proper management and control of capital

invested in the inventory should be the prime responsibility of accounting department because

resources invested in inventory are not earning a return for the company. Rather, on the other

hand, they are costing the firm money both in terms of capital costs being incurred and loss of

opportunity income that is being foregone.

OBJECTIVES OF INVENTORY MANAGEMENT


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The basic managerial objectives of inventory control are two-fold; first, the avoidance over-

investment or under-investment in inventories; and second, to provide the right quantity of

standard raw material to the production department at the right time. In brief, the objectives of

inventory control may be summarized as follows:

A. Operating Objectives:

1) Ensuring Availability of Materials: There should be a continuous availability of all typesof raw materials in the factory so that the production may not be help up wants of any

material. A minimum quantity of each material should be held in store to permit production

to move on schedule.

2) Avoidance of Abnormal Wastage: There should be minimum possible wastage of materials while these are being stored in the godawns or used in the factory by the workers.

Wastage should be allowed up to a certain level known as normal wastage. To avoid any

abnormal wastage, strict control over the inventory should be exercised. Leakage, theft,

embezzlements of raw material and spoilage of material due to rust, bust should be

avoided.

3) Promotion of Manufacturing Efficiency: If the right type of raw material is available to

the manufacturing departments at the right time, their manufacturing efficiency is alsoincreased. Their motivation level rises and morale is improved.

4) Avoidance of Out of Stock Danger: Information about availability of materials should be made continuously available to the management so that they can do planning for

procurement of raw material. It maintains the inventories at the optimum level keeping in

view the operational requirements. It also avoids the out of stock danger.

5) Better Service to Customers: Sufficient stock of finished goods must be maintained tomatch reasonable demand of the customers for prompt execution of their orders.

6) Highlighting slow moving and obsolete items of materials.


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B. Financial Objectives:

1) Economy in purchasing: A proper inventory control brings certain advantages andeconomies in purchasing also. Every attempt has to make to effect economy in purchasing

through quantity and taking advantage to favorable markets.

2) Reasonable Price: While purchasing materials, it is to be seen that right quality of materialis purchased at reasonably low price. Quality is not to be sacrificed at the cost of lower

price. The material purchased should be of the quality alone which is needed.

3) Optimum Investing and Efficient Use of capital: The basic aim of inventory control fromthe financial point of view is the optimum level of investment in inventories. There should

be no excessive investment in stock, etc. Investment in inventories must not tie up funds

that could be used in other activities. The determination of maximum and minimum level of

stock attempt in this direction.

IMPORTANCE OF INVENTORY CONTROL:

The importance or necessity of inventory control is well explained in the terms of the objects of

inventory control, which are obtained through it. A proper inventory control lowers down the

cost of production and improves profitability of enterprise.

ADVANTAGES OF INVENTORY CONTROL:

1) Reduction in investment in inventory.

2) Proper and efficient use of raw materials.

3) No bottleneck in production.

4) Improvement in production and sales.

5) Efficient and optimum use of physical as well as financial resources.

6) Ordering cost can be reduced if a firm places a few large orders in place of numerous small

orders.

7) Maintenance of adequate inventories reduces the set-up cost associated with each

production run.


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Risk and cost Associated with Inventories:

Holding of Inventories expose the firm to a number of risks and costs.

Major risks are :

1) Price decline : They may be due to increase in market supply of the product, introduction of a new competitive product, price-cut by the competitors etc.

2) Product deterioration: This may due to holding a product for too long a period or improper storage conditions.

3) Obsolescence: This may due to change in customers taste, new production technique,improvements in product design, specifications etc.

The Costs of holding inventories are as follows:

1) Material Cost: This include the cost of purchasing the goods, transportation and handlingcharges less any discount allowed by the supplier of goods.

2) Ordering Cost: This includes the variables cost associated with placing an order for thegoods. The fewer the orders, the lower will be the ordering costs for the firm.

3) Carrying Cost: This includes the expenses for storing and handling the goods. Itcomprises storage costs, insurance costs, spoilage costs, cost of funds tied up in inventories

etc.


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RESEARCHMETHODOLOGY


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1) OBJECTIVE OF THE STUDY:

To know the company plan and business operations.

To study the way to ensure uninterrupted supply of materials for continuous operations.

How to achieve the target production by using various techniques of inventory control.

To know how management concepts applied in practical field.

How the company plan and control the operations with the help of inventory techniques by

applying inventory management techniques in practical scenario.

Here, I attempted to know how the company is functioning and how systematic formats

maintain internally and externally and which communication network works effectively &

how the records are been maintained and also the new technology that has been introduced

in current area.

2) STATEMENT ABOUT THE PROBLEM:

In Uniflex Cables Ltd, Umbergaon the inventory management is good but in some cases I

found the problems regarding the inventory management are as follows

Company is using the ERP system, it is good but in that System Company is not

maintaining the ID of all the goods with their size & codes, so in that case they are

facing problems.

Company is not maintaining the minimum & maximum level of the stock.

In engineering store department company is not keeping the one or two supervisors for

night shift, so for that they face problems sometimes.


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preparation of the project report. Online search was the main reference to the study of whole

cable industry. (Firms 21 st annual report, www.unicab.com)

5) Duration of the project:

I have done my project work on the topic of Inventory Management in Uniflex Cables Ltd,

Umbergaon, Gujarat from 10 th December, 2011 to 10 th march, 2012.

6) Limitation of the study:

Staff of the company was very co-operative as well as understanding. I must specify that

Uniflex culture I heard was well maintained there but then too certain limitation had to be faced

such as.

Due to certain information being confidential on the companys behalf they couldnt

disclose it. (suppliers name)

In some departments I have to face some problems for collecting or understanding data.


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DATAANALYSIS

DATA COLLECTION:

In analysis of inventory of Uniflex Cables Ltd, We collect the data by the different sources. We

collect the primary and secondary data.

SECONDARY DATA:

The secondary data are those data the already in presence for specific purpose we use the

secondary data about inventory to looks old records of the company. For the daily information

about the items I see the daily issue slip of materials and other documentary evidence used for

the findings.


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In the analysis of inventory the secondary data are not sufficient then we collect primary data.

PRIMARY DATA:

Primary data are those data that are originated very first time or fresh data with the help of

primary data formulated the research objectives. Primary data are the accurate attainable

reliable and useful data.

Inventory control techniques used by the company

Inventory systems as perpetual and periodic systems.

Stock levels etc.

1) ABC ANALYSIS (Always Better Control):

The main objective of ABC analysis is to vary the expenses associated with maintaining

appropriate control according to the potential savings associated with an appropriate of inventory

level. It is also known as Selective Inventory Control Method. In an organization there are certain

items (High Value) which are less than 10% items but the consumption value of it will be more


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than 75% they are known as "A" Category Items. Similarly there may be large number of items

(Low Value) 75% of the items but the consumption value would be low may be above 10-15% of

the total consumption value are known as "C". And the items whose share 20-30% as well as

consumption is round the same are "B" Items

The list of ABC analysis of Uniflex Cables Limited is as under:

Category Items Included % Value out of TotalInventory

A

1) Copper 2) Aluminum wire rode3) P.V.C.

4) X.L.P.E.5) Steel 70 %

B

1) Copper tape2) Aluminum tape3) Polyester tape4) Polyethylene master

batch20 %

C

1) packing material

2) Drum3) Stores & Spares 10 %


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Interpretation:

We study ABC Analysis in Production Management, in which we calculating ABC Analysis in

both value & quantity wise. Company is using ABC Analysis but they are calculating only value

wise. So, I suggest them to calculate ABC Analysis in both value & quantity wise, so they can

know how much value & how much quantity in A, B, & C category. I found that value wise

percentage is different but the quantity is almost same in A & B category. So, they have to clarify

that & calculate that data in both value & quantity wise.

2) ECONOMIC ORDER QUANTITY (EOQ):


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Definition and Explanation:

Economic order quantity (EOQ) is that size of the order which gives maximum economy in purchasing any material and ultimately contributes towards maintaining the materials at theoptimum level and at the minimum cost.

In other words, the economic order quantity (EOQ) is the amount of inventory to be ordered atone time for purposes of minimizing annual inventory cost.

A = Annual Demand

Q = Quantity Ordered

O = Cost Per Order

C = Carrying Costs Per Unit

Given the above assumptions & symbols, the total costs of ordering & carrying inventories areequal to

TC = QC / 2 + AO / Q

In the equation, the first term on the right hand side is the carrying cost, obtained as the product of average value of inventory holding & the carrying cost per unit. The second term on the right handside is the ordering cost, obtained as the product of the number of order. The total cost of ordering& carrying is minimized when,

Q = 2AO

C

Example:


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A = Annual Demand / usage of oil seal = 2000

O = Ordering cost per order = 200

C = Carrying cost per unit = 25% of inventory value

P = Purchase price / unit = Rs. 8

Here, carrying cost / unit is = Rs 8 * 25% = Rs. 2

Q = 2*2000*200

2

= 632 units

Graphic approach :

The economic order quantity can also be found out graphically. Figure illustrates the EOQ function. In the

figure, costs-carrying, ordering and total- are plotted on vertical axis and horizontal axis is used to

represent the order size. We note that total carrying costs increase as the order size increases, because, on

an average, a larger inventory level will be maintained, and ordering costs decline with increase in order

size means less number of orders. The behavior of total cost line is noticeable since it is a sum of two

types of cost which behave differently with order size. The total costs decline in the first instance, but theystart rising when the decrease in average ordering cost is more than offset by the increase in carrying

costs. The economic order quantity occurs at the point Q* where the total cost is minimum. Thus, the

firms operating profit is maximized at point Q*.


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Minimum total cost

Carrying cost

Costs Ordering cost

Q* order quantity (Q)

Interpretation:

The EOQ occurs at the point Q* where the total cost is minimum. Thus the firms operating profit is

maximized at point Q*. it should be noted that the total cost of inventory are fairly intensive to moderate

changes in order size. It may be appropriate to say, therefore that there is an economic order range, not a

point. To determine this range, the order size may be changed by some percentage & the impact on total cost

may be studied. If the total cost do not change very significantly, the firm can change EOQ within the range

without any loss.

3) FSN Analysis:


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It is categorizing the items into fast moving F, slow moving S, & non-moving N

categories on the basis of consumption pattern of the items under consideration.

Fast moving: They are actively purchased & actively consumed items.

Slow moving: They are those items consumed occasionally but rate of consumption is very

slow. For e.g. Stock is total 800 kgs, & monthly average consumption is only 20 kgs. (up

to 1 year)

Non-moving items: They are those items which are found in stock but they are not at all

consumed or used by any one. (more than 1 year)

Reasons of accumulation of non-moving inventories:

When old machines are sold, care is not taken to sell old spare parts laying in store. These

spares become non moving items.

When new raw material or packing material is introduce care is not taken to consume old

material stock.

The finished product is suddenly discontinued by marketing department & hence all raw

materials meant for that finished products becomes non moving items.

How to dispose non moving items?

Give it back to supplier at discounted rate. If he is your active supplier & if he is your

active supplier & if he knows other users, he will co-operate.

Directly try to contact other users.


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Sell to employees if the item has a domestic application.

Purify or sort out good pieces if items are non moving because of quality problems.

Set it as scrap.

Destroy them.

FSN ANALYSIS IN UNIFLEX CABLES LTD:

FAST MOVING GOODS:

Copper, aluminum

GI wire & strip

PVC

SLOW MOVING GOODS:

XLPE

Spare parts

Screws

NON MOVING GOODS:

Old machine spare parts

Some of the raw materials

Interpretation:

Companys fast moving goods are those which are used in day to day production, & slow moving

goods are those goods which are used within one year, & non moving goods are those goods which

are not useful for the company so they will dispose these materials as per situation.


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7) INVENTORY TURN OVER RATIO -

Average inventories & sales onwards 2008-2009

yearAverage

Inventory in Rs.(in corers)

total sales in Rs.(in corers)

2008-2009 16,07,00,000 90,00,00,000

2009-2010 26,45,00,000 150,00,00,000

2010-2011 47,50,00,000 275,00,00,000

Inventory turnover ratio = Total sales

Average Inventory

Year 2010-2011

Thesale of Uniflex cables ltd in year 2010-2011 is 275,00,00,000 & its Averageinventory is 47,50,00,000 .


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Then,Inventory turnover ratio = 275,00,00,000 / 47,50,00,000

= 5.79: 1

Year 2009-2010

Inventory turn in year 2009-2010

Total sales in 2009-2010 = 150,00,00,000

Average inventory = 26,45,00,000

Turnover ratio = 150,00,00,000 / 26,45,00,000 = 5.67:1

Year 2008-2009

Inventory turnover in year 2008-2009

Total sales in 2009 = 90,00,00,000

Average inventory = 16,07,00,000

Turnover ratio = 90,00,00,000/ 16,07,00,000

= 5.60: 1


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Interpretation:

Generally, a high inventory ratio means that the company is efficiently managing & selling its

inventory. When company investing their fund in inventories their sales also increases. Every year

companys inventory increases so their sales also increases, so company is in good position.


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Dispatch Department:

2008-2009

Sales: 90,00,00,000

Domestic (44 %): 39,60,00,000

Export (56 %): 50,40,00,000

India 44%U.K 15%

south Africa 10%Nigeria 8%

Zimbabwe 8%Kenya 7%Iraq 6%

Spain 2%


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2009-2010

Sales: 150,00,00,000

Domestic (40%): 60,00,00,000

Export (60%): 90,00,00,000

India 40%U.K 17%

South Africa 8%Nigeria 7%

Zimbabwe 7%

Kenya 8%Iraq 7%Syria 3%Spain 3%


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2010-2011

Sales: 275,00,00,000

Domestic (30%): 82,50,00,000

Export (70%): 192,50,00,000

India 30%U.K 20%

south Africa 10%Nigeria 9%

Zimbabwe 8%

Kenya 8%Iraq 7%Syria 4%Spain 4%


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Interpretation:

As per the above detail we can know that companys sales increases year by year because of their

performance & their quality consciousness & preparation of goods & services as per customers

requirements & wants. And also I found one thing is that their export ratio is also increases year by

year, so it is good for the company.


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Findings

Findings:

1) Inventory management in uniflex is up to the mark so there less chances to stoppage of

production due to inventories.

2) Company find problems regarding suppliers sometimes at the time of shortage & the

suppliers are far from the factory.


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3) Uniflex meets the demand of the customer due proper maintain of inventory.

4) The firm uses ABC & FSN control techniques to control inventories but they are not

maintaining ABC Analysis in quantity wise.

5) This helped the company to categorize its inventories in order of its priority.

6) Company has kept their non moving goods in store up till now.

7) ERP is also followed in the firm, as it is computerized system the firm can effectively

maintain its inventory.

8) The company is facing shortage of manpower in engineering store department.

9) Company is not maintaining the carrying & ordering cost so they are not using EOQtechnique.


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SUGGESTIONS


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Suggestion:

1) The company should search for any new & close suppliers who can give them raw-

materials at low price with good quality & service.

2) The storage room, where the most of the scrap, wastages, & obsolete items are being

stored, it is necessary for them to reduce the disposable items & should make cash out of it

as soon as possible.

3) Company has to recruit one or two supervisors for engineering store department so they can

reduce their cost.

4) Company has to maintain their minimum level & maximum level stock.

5) Company has to recruit experienced employees in store & production department for

maintaining the inventory in proper way.

6) Company has to make ID of all the goods with their full detail i.e. name, size etc in ERP

system.

7) Company have to maintain their the carrying & ordering cost so with that they can use

EOQ technique.

8) Company should use the SAP program for their inventory management & also they have to

train their employees for How to use & maintain all the record in the SAP.


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BIBLIOGRAPHY


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BIBLIOGRAPHY:

Firms 21 st Annual Report

Production Management

www.unicab.com

www.icf.at

www.indiainfoline.com
http://www.unicab.com/http://www.unicab.com/

nirav final project report on uniflex

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