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PLUMBING INDUSTRY
The plumbing sector is a growing one. According to the Global Construction 2020 Report
PWC, US $ 97.7 trillion would be spent on construction globally in the next ten years. The
report further says that current spending of $ 7.2 trillion per year would grow by 67% to 12
trillion per year by 2020, with half the amount being spent by three countries China, India
& USA.
Real estate is one of the fastest growing sectors of the Indian economy and contributes about
5 per cent to India's gross domestic product (GDP). Foreign direct investment (FDI) up to
100 per cent is allowed with government permission for developing townships and
settlements and in the hotel and tourism sector through the automatic route. The Government
of India (GOI) has raised the housing loan limit to US$ 52,080 for priority sector lending and
US$ 833 million has been allocated for rural housing fund (RHF) in FY13 budget. The real
estate sector is playing a significant role in the rising demand for plumbing products.
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Plumbing industry of India
By 2030, 590 million people will live in cities in India, nearly twice the population of
US, today.
2030.
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From 42 cities today (Europe has 35!) India will have 68 cities with a population of one
million plus.
India will need capital investment approx. $ 1.2 trillion to meet projected demand in
Indian cities.
Anything between 700 and 900 million sq m of commercial and residential space (This
figure is almost equivalent to entire Chicago!) will be required to be built, every year.
India will need to pave roads approx. 2.5 billion sq m by 2030, 20 times higher than
7400 km of metros and sub-ways will be required, 20 times the capacity added in the
past decade
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Finolex Industries Limited is Indias leading manufacturer of PVC-U Pipes and Fittings and
the second largest manufacturer of PVC Resin. The Company operates through polyvinyl
chloride (PVC), Pipes & fittings and Power segments. The Company offers its products in
categories, including Agricultural Pipes and Fittings, and Plumbing and Sanitation Pipes and
Fittings. Its products include Underground Sewerage Pipes, Female Threaded Adaptor,
Service Saddle, Fabricated Repair Coupler and Screen Pipes with Ribs. It offers chlorinated
polyvinyl chloride (CPVC) pipes and fittings, such as CPVC Pipes, Compact Ball Valve,
Coupler, Cross Tee, Transition Bush, Reducing Elbow, Tank Nipple, Step Over Bend, Male
Threaded Adaptor and others. Its PVC pipes and fittings are available in various sizes,
pressure classes and diameters, and are used in agriculture, housing, telecommunications,
Company also carries out distribution from warehouses in Chinchwad, Cuttack, Delhi, and
Indore.
FIL is the first Indian PVC-U Pipes manufacturer to get the coveted IS/ISO 9001:2008
certification. The Company is continuously increasing their product offering and production
capacity that will enable them to achieve their goal of becoming a 1 Billion USD company in
Our manufacturing plants in Pune, Ratnagiri, and Masar house all the modern day equipment
Finolex PVC Pipes and Fittings are available in numerous sizes, pressure classes and
diameters making them fit for diversified applications in both agricultural as well as non-
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We have been providing superior quality PVC-U and CPVC Pipes and Fittings all across the
PVC is the main ingredient for pipes. We have set up a resin manufacturing plant in Ratnagiri
spreading across an area of over 650 acres. The plant has been set in technical collaboration
with Uhde GmbH, Germany with Hoechst technology. This plant manufactures both
suspension and emulsion PVC and has an annual output of 272,000 m.t.p.a.
PVC finds applications in various areas, such as manufacturing of pipes, insulation of cables,
window profiles, flooring, blister packaging, etc. Being versatile in nature, PVC continuously
As a part of its PVC Complex, FIL has also set up an open sea cryogenic jetty, the first of its
1981- The company was incorporated on 28th March, in Maharashtra as a private limited company
On 1st December, 1988. It manufactures PVC Pipes and fittings. It was promoted by P.P. Chhabria
and his associates. The company acquired a manufacturing plant at MIDC Chinchwad, Pune and
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1983- 3,67,650 shares issued without payment in cash to members of FinolexPlastics Pvt. Ltd. on its
merger.
1987- Letter of Intent was obtained for the manufacture of 1,00,000tonnes per annum of PVC resin.
- The Company entered into a technical collaboration agreement with Uhde GmbH, West Germany
for licensing and technical know-how of Hoechst AGs process for manufacture of PVC resins and for
1989- With the public issue of equity shares in May, the Company offered 3,50,000-14% secured
redeemable partly convertible debentures of Rs 300 each of which 17,500 debentures were offered on
(only 3,070 debentures taken up). 3,32,500 debentures together with the unsubscribed 14,430
debentures of the employees' quota were offered and allotted to the Indian Public. Additional 52,500
- Conversion of debentures was to take place at two stages viz., (a)Aportion of Rs 50 of the face
value of each debenture into 5 No. of equity shares at par (Part `A') at the end of 6 months from the
date of allotment of the debentures and (b) a portion of Rs 100 of the face value of each debenture
into 10 No. of equity shares of Rs 10 each at par at the end of the second year from the date of
allotment of the debentures. The non-convertible part of Rs 150 of each debenture would be
redeemed at par on the expiry of 9th year from the date of allotment of debentures.
- 17,50,000 shares issued at par out of which 87,500 shares reserved for preferential allotment to
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employees, etc. but only 37,600 sharestaken up. The balance 16,62,500 shares, along with 49,900
shares not taken up by employees, were offered to the public in May 1990. Additional 2,62,500
shares allotted to public to retain oversubscription. 55,11,093 bonus shares allotted in prop. 3.907:1
- Company has effected an arrangement with LIC of India under group gratuity-cum-life assurance
convertible debentures of Rs 150 each of which the following debentures were reserved for allotment
on a preferential basis: (i) 10,73,333 debentures to holders of 14% debentures issued in 1989; (ii)
10,40,000 debentures to shareholders of Finolex Cables, Ltd.; (iii) 6,66,667 debentures to NRIs on
repatriation basis; (iv) 6,50,000 debentures to Financial Institutions/Mutual Funds and (v) 5,33,333
- The unsubscribed portion of 10,35,799 debentures of the preferential quota was offered along with
the public issue of 39,66,667 debentures. Additional 11,89,500 debentures were offered to retain over
subscription. These debentures were allotted as follows: 90,68,934on 30.11.90, 46,600 on 11.1.1991
- Rs 60 of the face value of each debenture was compulsorily and automatically converted into 4
Equity shares of Rs 10 each at a premium of Rs 5 per share at the end of 18 months from the date of
allotment of debentures.
- The remaining Rs 90 of the face value of each debenture was to be redeemed at par on the expiry of
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- Simultaneous to the rights issue in September, the Company offered 82,00,000-14% secured
redeemable non-convertible debentures of Rs 100 each on rights basis to the existing equity
shareholders in the ratio of 75 non-convertible debentures for every 100 shares held. Only 46,661
debentures were taken up. Out of the balance 81,53,339debentures, 78,39,095 debentures devolved
- As per the terms of issue, each debenture of Rs 100 will be redeemed in three equal instalments at a
premium of 5% at the end of 6th, 7thand 8th year from the date of allotment.
1991- 40,25,000 shares allotted at par on 2nd conversion of 14% convertible debentures.
- To part finance its PVC Resin Project (the project). The company had made , during the year under
review, right issue and public issue of 14% Secured Redeemable Convertible Debentures of Rs. 150/-
- The public and rights issues of Convertible Debentures were over-subscribed and the Company
retained over-subscription to the extent of 15% of the issue size as permitted by the Controller of
Capital Issues (CCI). The allotment of 1,21,61,917 Convertible Debentures was finalised in
- The Company signed during the year under review loan agreements with the Industrial Credit &
Investment Corporation of Inida Limited being Lead Financial Institution for DM 29.553 million and
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- The Company has signed Bridge Loan Agreement with industrial Development Bank of India for
- Rs. 100/- of the face value of the each of 14% Secured Redeemable Convertible Debentures (1989
series) have been converted into 10 Equity Share of Rs. 10/- each at par on 10th July.
- The non-convertible part of Rs. 150/- each of the aforesaid Debenture (1989 series) will be
redeemed in full at par on the expiry of nine years (i.e. 10th July 1998) from the date of allotment of
the Debentures.
- Each of 14% Secured fully Convertible Debenture of Rs. 100/- each shall be converted into such
number of Equity Share of Rs. 10/- each, credited as fully paid-up, as decided by the Controller of
Capital Issue between 2nd and 4th years from the date of allotment of the said Debenture namely
- Rs. 60/- out of the face value of Rs. 150/- each of 14% Secured Redeemable Convertible Debenture
(1990 series) will be converted into four Equity Share of Rs. 10/- each at a premium of Rs. 5/- per
- The non-convertible part of Rs. 90/- each of the afore said Debenture (1990 series) will be
redeemed in full at par on the expiry of nine years from the date of allotment of the Debenture (i.e.
- 14% Secured Redeemable Convertible Debenture (1989 series ) and 14% Fully Convertible
Debenture will be further secured by creating additional security as and by way of second and
subservient mortgage and charge on the immovable and movable properties of the company and also
such other properties which the company may acquire infuture in favour of the Trustees in such a
manner and to such an extent as the Board of Director and the Trustees may agree upon.
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- 14% Secured Redeemable Convertible Debenture (1990 series) will be further secured by creating
additional security as and by way of second and subservient mortgage and charge on the immovable
and movable properties of the companies relating to its project for the manufacture of 1,00,000 tpa of
Poly Vinyl Chloride (PVC) Resin and also on such other properties of the project which the company
may acquire in future, in favour of the Trustees, in such a form and to such an extent as the Board of
security by way of such a mortgageandcharge on the immovable and movable properties of the
companies relating to its project for the manufacture of 1,00,000 tpa of poly vinyl chloride (PVC)
Resin and also on such other properties of the project which the company may acquire in future , in
favour of the Trustee in such a form and to such an extent as the Board of Directors and the Trustees
1992- The Ethylene di-chloride (EDC) and ethylene unloading arms of the open sea cryopgenic jetty
with unloading of three chemical tankers carrying EDC and ethylene were commissioned.
- During September/October, the Company offered 428,59,570 Rights equity shares of Rs 10 each for
cash at a premium of Rs 30 per share in proportion 1:2. Additional 1,74,701 shares allotted to retain
oversubscription.
- Another 21,46,612 No. of equity shares issued to employees (only 49,400 shares taken up).
Unsubscribed portion of 20,97,212 shares allotted to UTI (10,00,000 shares) and ICICI (10,97,212
shares).
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- Also 5,72,670 shares issued to ICICI, IDBI and IFCI. Of these 1,90,000 shares each were taken up
- 109,46,662 Equity Shares of Rs. 10/- each existing at the beginning of the year, and pro-rata on
40,25,000 No. of Equity Shares of Rs. 10/- each allotted pursuant to the second compulsory
conversion, which took place on 10th July, 1991, of 14% Secured Redeemable Convertible
- Non-Convertible Debentures (1990 Issue) for making the respective Debentures fully paid-up.
Secured Fully Convertible Debentures (1989 Issue) and Secured Redeemable Convertible
Debentures (1990 series) have been converted into Equity Shares of the Company on 1st April, 1992
and 30th May, 1992 respectively in terms of the concerned consent orders received from the
- The Company signed during the year under review an agreement with the Industrial Credit and
Investment Corporation of India Limited and Industrial Finance Corporation of India for term loan of
- The Company proposes to issue 450,78,852 No. of Equity Shares of Rs. 10 each at a premium of
Rs. 30 per Equity Share to its shareholders on rights basis, to its employees and to financial
institutions
- The Company has received technical know-how from the collaborators namely UHDE GmbH,
Germany for the manfacture of PVC resin which project is under implementation.
1993- Sales of pipes and fittings were affected due to prolonged transporter's strike in two
consecutive months during the first half of the year and lower utilisations of production capacity.
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- The Company has successfully commissioned the ethylene di-chloride (EDC) and ethylene
unloading arms of the open sea cryogenic jetty with unloading of three chemical tankers carrying
- During the year under review, the Company made an issue of equity shares in terms of the letter of
offer dated 25th August, 1992. The issue of equity shares received an overwhelming response from
the members of the Company and was oversubscribed. The allotment of equity shares was made on
- The Company has signed during the year under review a foreign currency loan agreement with The
Industrial Credit and Investment Corporation of India Limited for term loan of Rs. 75 million under
IBRD Pollution Control Project Line already sanctioned for the PVC resin project.
- During the current year, a loan agreement has been also signed with Bank of Baroda, for a rupee
term loan of Rs. 142.3 million for the PVC resin project in accordance with the means of finance
- The Company set up during the current year its own R&T centre at its registered office at Pune.
- The Company has received technical know-how from the collaborators namely UHDE GmbH,
1994- The entire PVC plant was commissioned. The Company undertook debottlenecking and
- During September, the Company issued 40,000,000 warrants to the promoter group on preferential
basis. The warrants were to be converted into equal number of shares of Rs 10 each at a premium of
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Rs34.44 per share. Accordingly 178,07,850 warrants were converted into equity shares.
- The sales of pipes and fittings were affected principally due to prolonged transporters' strike in two
consecutive months during first half of the year under review and lower utilisation of productive
- The company has successfully launched its PVC resin on all India basis and the product has been
- The company will be introducing the emulsion/paste grade PVC into the market.
- The company will be launching during the year its new productdevelopedinhouse, namely SWR
- The company has been granted the highest category credit rating, namely P1+ credit rating, by
CRISIL for issue of commercial paper.Therating of P1 indicates that the degree of safety regarding
timely payment on the instrument is very strong. + (plus) sign for rating reflects a comparatively
- The company has tied up with banks for working capital requirements of PVC resin division.
1995- The entire PVC plant has got commissioned during the year under review.
- The Company has undertaken debottlenecking and balancing equipmentprogramme to enhance the
- The Company signed loan agreement with The Industrial Credit and Investment Corporation of
India Limited to meet a part of the cost of constructing additional storage facility for feed stock on
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site, forming part of the expenditure to be incurred on debottlenecking and balancing equipment
programme.
- The Company signed an amicable agreement with the workers' union on 6th October, 1994 which is
valid for a period of three and half years ending 31st March, 1998.
- The non-convertible part of Rs. 150/- each of 14% Secured Redeemable Convertible Debentures
(1989 Series) will be redeemed in full at par on the expiry of nine years from the date of allotment of
- The non-convertible part of Rs. 90/- each of 12,161,917-14% Secured Redeemable Convertible
Debentures (1990 Series) will be redeemed in full at par on the expiry of nine years from the date of
- The non-convertible part of Rs. 90/- each of 95,757-14% Secured Redeemable Convertible
Debentures (1990 Series) will be redeemed in full at par at the expiry of nine years from the date of
- 14% Secured Redeemable Non-Convertible Debentures of Rs. 100/- each will be redeemed together
with a redemption premium of Rs. 5/- per Debenture in three equal instalments at the expiry of 6th,
7th and 8thyear from the date of allotment i.e., 30th November, 1996, 30thNovember, 1997 and 30th
1996- The Company has introduced in the market five grades of suspension PVC and four grades of
emulsion/paste PVC.
- The Pipes Division of the Company has been granted Quality Systems Certification Licence as per
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IS/ISO 9002 by Bureau of Indian Standards, accredited by RaadVoor de Certificates, Netherlands.
- R.D. Aga, Director of the Company then, passed away on 16th February.
- In June, the Company allotted 1,145,340 equity shares to financial institutions, namely The
Industrial Credit and Investment Corporation of India Limited, Industrial Development Bank of India
and Industrial Finance Corporation of India Limited at a premium of Rs.5 per share, pursuant to the
- In November, the Company redeemed (with proportionate premium) 1/3rdof the aggregate face
value of 7,885,756 Non-Convertible Debentures of Rs. 100 each In accordance with the terms of
1997- The Company has installed jumbo bags unloading and raw material transportation system.
- In April, the Company signed loan agreement with Kredietbank N.V. for foreign currency loan of
USD 9.6 million, with Ministry of Finance's approval under the External Commercial Borrowings
(ECB) guidelines.
- The ECB facility has been set up in co-operation between IndusindBank Limited and Kuedietbank
- The Company has given donations, bought benches and done electrification of classrooms and
flooring for schools in Ranpar and Ratnagiri. The Company has also given donation to the remand
- 367,650 No. of Equity Shares have been allotted for consideration other than in cash to the
shareholders of the erstwhile FinolexPlastics Pvt. Ltd. pursuant to the scheme of amalgamation.
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- 5,511,093 Equity Shares have been issued as fully paid up Bonus Shares by capitalisation of
General Reserve.
- 2,012,500 No. of Equity Shares have been issued at par on 1stconversion of 14% Secured
1998- LPG import and storage facilities set up by the Company have been successfully
commissioned.
- The Company has developed specialty fittings for large diameter pipes with elastomeric sealing
ring joints.
- During the period under review, the Company redeemed 1989 SeriesDebentures fully and paid the
- On 13th February, the Company signed the Agreement with National Securities Depository Limited
- During the period under review, Mr. M.P. Modi was nominated as a Director on the Board of
- The Company has planted more than 30,000 trees near PVC plant to maintain ecological balance.
These trees are being grown on water treated in the effluent treatment plant of the Company.
1999- The Company was honoured with the Mahratta Chamber of Commerce, Industries and
Agriculture's prestigious Dr. R.J.Rathi 'Environmental Pollution Control' award for outstanding
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- The Company is setting up a PVC pipes plant of about 10,000 metric tons per annum capacity
- The Company signed during the year under review Tripartite Agreement with Central Depository
Services (India) Limited and MCS Limited for dematerialisation of equity shares.
2000- Crisil has assigned an `AA-' rating to the proposed Rs 50-crore NCD issue and `P1+' rating to
- The Company's PVC plant at Ratnagiri has received a `Safety Award' from the National Safety
Council, Maharashtra Chapter, for achieving the lowest accident frequency rate under the Chemicals
- The Board of the company proposed to buyback 10 per cent of its shares at a price not exceeding Rs
40 per share.
2001- The Company is introducing a stock option scheme for its employees.
2002-Finolex Industries has acquired 13.39% of the company's paid up capital from the open market
-Finolex Industries has witnessed 56.69% increase in the net profitatRs.59crs as against Rs.37crs.
-The Board of Finolex Industries have approved for the expansion of installedcapacityoc company's
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PVC plant at Ratnagiri by additional 130,000MT per annum.
2003-Finolex Industries Ltd have informed BSE that the company is buying backits ordinary shares
of Rs.10 each.
-Finolex Industries is increasing its capacity to produce Polyvinyl Chloride Pipes (PVC) to 52000
-Finolex Industries is investing Rs.500cr with a view of expanding its Ratnagiri facility.
-Finolex infused Rs 23 cr to increase output and has added a new extrusion line at its Ratnagiri
facility
2007-Finolex Industries Ltd (FIL) is close to signing a agreement with Tishman Speyer India
Ventures, a company engaged in real estate development, for the sale of its land in Chinchwad, near
Pune, which currently houses one of its PVC pipe manufacturing facility.
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2010-Finolex Industries Ltd has recommended dividend @ 30%.
-Mr. K Cherian Varghese has been appointed as additional director of the company.
2013-Finolex Industries Ltd has recommended dividend @ 55% (Rs. 5.50 pershare) for the financial
year 2012-2013
2014-Finolex Industries Ltd has recommended dividend @ 70% (Rs. 7.00 per share) for the financial
year 2013-2014
2015-Finolex Industries bags 2nd prize for product presentation at the 20th IPC
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MANAGEMENT OF THE ORGANISATION
Name Designation
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PORTERS FIVE FORCES MODEL
Porter's Five Forces is a framework for industry analysis and business strategy development
formed by Michael E. Porter of Harvard Business School in 1979. It draws upon Industrial
Organization (IO) economics to derive five forces that determine the competitive intensity
and therefore attractiveness of a market. Attractiveness in this context refers to the overall
industry profitability. An "unattractive" industry is one in which the combination of these five
forces acts to drive down overall profitability. A very unattractive industry would be one
approaching "pure competition", in which available profits for all firms are driven down to
zero.
For plastics producers worldwide, India represents a range of highly new opportunities for
growth. The plastics industry in India has made significant achievements ever since it made a
Indian plastic industry conforms to the levels of sophistication required to produce plastic and
The consumption of plastics in 1998 is estimated at 25 million tons by the year 2015. The
demand for plastics is growing approximately @ 22% annually and plastic consumption in
India is expected to increase from almost 2.5 million tons every year .
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During the marketing research undertaken in Ajay pipes, New delhi, the information
collected regarding its competitors, products and the suppliers and the intensity of
competitive rivalry has been analyzed using Porters five forces model and is as follows:
Profitable markets that yield high returns will attract new firms. This results in many new
entrants, which eventually will decrease profitability for all firms in the industry. Unless the
entry of new firms can be blocked by incumbents, the abnormal profit rate will tend towards
zero (perfect competition). Finolex Industries Ltd is the largest manufacturer of rigid poly
vinyl chloride (PVC) pipes and fittings in India having a market share of nearly 10 per cent.
The company's manufacturing capacity of 36,000 tons for PVC pipes and fittings is likely to
be increased to 50,000 tons by the end of next year. Recently, FIL commissioned an ultra-
modern PVC pipes plant at Ratnagiri in Maharashtra. The company also has a plant in Pune.
The main competitors for Finolex pipes in the market now are:
ASTRAL
Astral was set up in 1996 as a private limited company by Mr. Sandeep Engineer as Astral
Poly Technik Private Limited. The name of the company was subsequently changed to Astral
Poly Technik Limited in 2006. It manufactures and trades in CPVC and lead-free poly vinyl
chloride (PVC) plumbing systems for residential, commercial and industrial applications.
Astral entered into a licensing agreement with Lubrizol Corporation (USA) and a techno-
financial joint venture with Specialty Process LLC, USA to manufacture products under the
flow guard brand and for obtaining necessary technical expertise for manufacturing CPVC
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pipes and fittings. The company started its CPVC production in 1999 and subsequently
entered into lead-free PVC pipe manufacturing in 2004. The company operates two plants,
one in Gujarat and the other in Himachal Pradesh to manufacture plumbing systems from 1/2'
to 8' diameter. As on March 31, 2010, Astral has total manufacturing capacity of 30,867
tonnes of pipes and fittings per annum (TPA). The company has a variety of product portfolio
of higher and lower range of pipes and fittings suitable for value as well as premium markets.
The Supreme Industries Ltd is Indias leading plastic products manufacturer. The company
operates in the injection moulding and extrusion segments. Supreme has the largest capacity
Segment Products
handling products
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Consumer
products Furniture
In 1961 AICL started its operation in the Flagship area of Plumbing pipes, in new delhi and
afterwards, AICL became an important PVC pipes and fittings manufacturer of India and it
has also received various Prestigious awards , including one of the best ISI mark for quality.
Afterwards more organizations came into the plastic (PVC) manufacturing industry and so
Ashirwad
Ashirwad is the licensee of Lubrizol, USA to manufacture and market FLOWGUARD CPVC
(Chlorinated Polyvinyl Chloride) plumbing systems in India. Ashirvad uses N.S.F listed
compound ( Temprite 88628 Tan 309 and Tan 311) from Lubrizol to manufacture a world
chloride (CPVC) for use in single and multi family homes, apartments, high-rises,
In a sentence Ashirvad Flowguard is the highest quality and best-valued hot and cold potable
water piping system available. Ashirvad has a Design registered for alignment on the plastic
fittings.
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Some major Players going to Launch:
TATA PIPES
RELIANCE PIPES
The threat of substitute is high when the price of that substitute product falls or it is
easy for consumers to switch from one substitute product to another or when buyers
are willing to substitute. The development of PVC pipes and all type of Plastic fittings
and equipments over the world is by using the organochlorine called Poly Vinyl
Chloride (PVC). Finolex is also developing all type of pipe products (rigid pipes,
flexible hoses etc.) using the same organochlorine PVC. The competitors are also
using the same technology. So there is no substitute products made from other
organochlorine, the plastic products are all made from the same organochlorine PVC,
But quality of moulding machines and processing technology that are used by this
Buyers or customers can exert influence and control over an industry in certain
There is little differentiation over the product and substitutes can be found easily.
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Switching to another product is not costly.
Nowadays customers have the buying power and they have the choice in the market to
Suppliers are also essential for the success of an organization. Raw materials are needed to
complete the finished product of the organization. Suppliers do have power. This power
comes from:
If they are the only supplier or one of few suppliers who supply that particular raw
material.
If it costly for the organization to move from one supplier to another (known also as
switching cost
If entry to an industry is easy then competitive rivalry will likely to be high. If it is easy for
customers to move to substitute products for example from coke to water then again rivalry
It is costly to leave the industry hence they fight to just stay in (exit barriers).
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In India the PVC industry is going through high competitive rivalry. As too many
organizations are coming to PVC pipes & Fittings manufacturing industry yearly, the
Assigning targets to each Distributors and as such rewarding them with attractive
prizes.
These all , help them to overcome the intensity of competitive rivalry in the PVC plumbing
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Objective of the Project
To find out the potential dealers and retailers in Delhi NCR region who are giving
a market presence and can be approved by the company to expand its market.
To find out the major competition who are dealing with CPVC pipes in NCR
region and at what prices different Brands or the distributor are giving to different
To find out the visibility of different outlets so that the branding techniques could
be identified.
To analyse the data and recommendations so that the demand for Finolex Pipes
To know the number of dealers that are interested to do business with Finolex
Pipes.
The questionnaire filled will help them to have the complete analysis of the
The dealers dealing with Finolex Pipes are asked about the distributors response
To let the people know about what Isflowguard who is lubrizol and what they
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People were not even aware about the fact that astral is no longer working with
flowguard the plumber still think that its flowguard by guiding the retailers
about the flowguard they can help us letting the plumbers know.
Expected outcomes
Knowing the CPVC market of Finolex industries and other brands competing
Identifying the price of the different Brands which will analyse the competition
Company.
The main expectation would be to know the brands which is giving competition
in Finolex price range because the Flowguard and Finolex tie up has made the
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Methodology Used
Research Methodology
The research used is of exploratory Type because Finolex pipes is in expansion mode They
Sources of Data
Primary Data- Primary Data was collected From the market Directly by interacting with the
dealers and the retailers through the survey method Questionnaire were filled with each
retailers separately
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DATA ANALYSIS
PHASE 1
In phase 1 of the project we need to find the hardware shops in the regions which
After finding the shops we just need to note down the area wise address and take the
After completing the work we need to send the total outlets area wise which we have
This phase continued for a week and it was very nice to explore the markets and
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PHASE 2
TO THE BEAT PLAN AND INTERACT WITH THE OWNER OF THE OUTLET.
TO GET FILLED WITH THE SHOPKEEPER AND PROVIDE THEM WITH OUR
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PHASE 3
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35
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THIS IS THE QUESTIONNAIRE WE HAVE TO FILLED WITH THE OWNER OF THE
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Limitations/Challenges Faced
Biased response- Some retailers were unwillingly providing the information which
Lack of proper Resources-At Some phase of the project The management of the kits
to be Given yo the retailers were not properly arranged and which engages the work.
Lengthy Questionnaire- The questionnaires given to us was bit lengthy for some
retailers at work because some were engaged in their work and gritting irritated with
Time wastage- At some phase of the project We need to visit the same counter again
The guidance provided by the Team E4 which was led by Mr BhushanLavande Sir
along with PrashantMandke sir Who were always there to help Us with their time and
The Finolex Sales executive Who guided me at every phase of the Project. My Sales
executive was AshishRastogi Sir Who was there for me always help me even I have
called him 5 times in an hour but he was there to guide everything properly.
There were many times I feel like that I have chosen the difficult Job but the work
which I did will surely help more than any other job because I have learned the
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PROFIT AND LOSSES
Mar- Mar- -
Y/e 31 Mar( In .Cr) -
2017 2016
--
Revenue 2,988 2,843
--
--
yoy growth (%) 5.08 --
--
--
Raw materials (1,995) (2,009)
--
--
As % of sales 66.80 70.70
--
--
Employee costs (105) (92)
--
--
As % of sales 3.51 3.25
--
--
Other costs (325) (337)
--
--
As % of sales 10.90 11.90
--
--
Operating profit 563 404
--
--
OPM 18.80 14.20
--
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--
--
Interest expense (15) (45)
--
--
Other income 32.50 49.20
--
--
Profit before tax 525 358
--
--
Taxes (170) (125)
--
--
Tax rate (32) (35)
--
--
Minorities and other -- --
--
--
Adj. Profit 355 233
--
--
Exceptional items -- 24.50
--
--
Net profit 355 258
--
--
yoy growth (%) 37.70 --
--
--
NPM 11.90 9.07
--
42
BALANCE SHEET
Mar '17 Mar '16 Mar '15 Mar '14 Mar '13
Sources Of Funds
Mar '17 Mar '16 Mar '15 Mar '14 Mar '13
Application Of Funds
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Inventories 557.40 447.22 558.65 505.95 482.78
Total CA, Loans & Advances 853.49 675.19 801.32 751.85 748.78
44
45
CASH FLOW
Mar- -
Y/e 31 Mar ( In .Cr) Mar-2017 -
2016
-
Profit before tax 525 358 --
-
-
Depreciation (55) (51) --
-
-
Tax paid (170) (125) --
-
-
Working capital 134 -- --
-
-
Other operating items -- -- --
-
-
Operating cashflow 433 -- --
-
-
Capital expenditure 59.40 -- --
-
-
Free cash flow 493 -- --
-
-
Equity raised 3,302 -- --
-
-
Investments 410 -- --
-
Debt (117) -- -- -
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Mar- -
Y/e 31 Mar ( In .Cr) Mar-2017 -
2016
financing/disposal -
-
Dividends paid -- -- --
-
-
Other items -- -- --
-
Net in cas
-
4,087 -- --
-
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RESULTS
Mar-
Particulars ( Rupees In Crores.) Mar-2017 Mar-2015 Mar-2014
2016
Excise Duty -- -- -- --
48
Mar-
Particulars ( Rupees In Crores.) Mar-2017 Mar-2015 Mar-2014
2016
Calculated EPS (Adj) (Ann.) (Unit Curr.) 28.40 20.50 3.85 13.70
Face Value 10 10 10 10
49
Mar-
Particulars ( Rupees In Crores.) Mar-2017 Mar-2015 Mar-2014
2016
PRODUCT DESCRIPTION
MATERIAL ALSO.
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51
52
53
54
55
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CONCLUSION
The communication Skills and the Patience level are surely improved very much
Which will Give me With Great Opportunities and better Enhance my Future.
In the Last phase in which We need to interact with the Sales executive to the
retailers In this phase we got the Practical knowledge That how to deal with different
type of retailers and what prices to be offered to different outlets according to their
In phase 2 we were representing A big brand and letting the people know about the
new product and the flow guard so we should be justifying the Company.
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Suggestions/ Recommendations
Phase1 and 2 can be done at the same point of time because just simply going
through outside of shop and taking picture rather we could talk to then and if
Most of the retailers were Asking For the Price list though I told them that I
am from marketing they said that without price list this kit is of no use
because everyone was keen to know the prices of Finolex CPVC pipes
Every retailer was very happy with the Quality and The brand name that Finolex has started
Thankyou so much for giving me with such a great opportunity and starting my career in such
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BIBLIOGRAPHY
BOOK REFERRED
WEBSITES VISITED
Profit.ndtv.com
Finolexwater.com
Google.com
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