Madras Rubber Factory

& Asian Paints

BY TEAM :- 9

RADHIKA CHHABRA 102

SHREYANSH NAHATA 117
SHAMBHAVI SOMVANSHI 115
AMIT RAWAT 62
SHUBHAM BANSAL 119
PRADYU SHENDYE 97
Contents
Company Profile........................................................................................................................2
Company Profile........................................................................................................................4
Demand for paints comes from two broad categories:.......................................................4
ORGANISATION STRUCTURE OF MRF. LTD. (18SE6).....................................................5
 MRF TYRES is facing competition with the above listed companies on the following
basis:- (18SE7)............................................................................................................................6
ORGANISATION STRUCTURE OF ASIA PAINTS LTD. (18SE8)......................................7
COMPETITORS OF ASIAN PAINTS: - (18SE5).................................................................8
MARKET SHARE OF ASIAN PAINTS IN RESPECT TO IT’S ABOVE SHOWN
COMPETITORS:-.....................................................................................................................8
From the above pie chart we can see that Asian Paints has the largest share in market
because of :- (18SE9).................................................................................................................8
WHAT IS THE MEANING OF INEFFICIENCY.............................................................9
Following are the same reasons of inefficiency.........................................................................10
*MRF RANKS HIGHEST IN CUSTOMER SATISFACTION IN INDIA FOR A 5TH
CONSECUTIVE YEAR..........................................................................................................10
Following are the some reasons of inefficiency:- (18se2).........................................................11
IN ORDER TO DECREASE LEVEL OF CONSUMER EXPLOITATION ASIAN
PAINTS HAVE FORMULATED SOME POLICIES:- (18SE11)......................................12
Initiatives taken by competition commission of India..........................................................13
References.....................................................................................................................................13
CURRENT STATUS...............................................................................................................14
Financial Results..........................................................................................................................15

 OVERVIEW OF THE INDUSTRY

Madras Rubber
Factory
Madras Rubber Factory also known as MRF, in an
Indian multinational and one of the largest
manufacturers of tyre in India. It holds 14th rank in
terms of the largest manufacturer of tyres in the world.
The Headquarters of MRF is situated in Chennai, India.
The Company was founded by K.M Mammen Mappillai in 1946
(almost 72 years ago).

Company Profile

Company name:  MRF

Type                     Public Ltd
Industry                Tyres and Rubber products    
Founded               1946
Headquarters        Chennai, Tamilnadu, India
Products               Tyres, Toys, Sports equipment etc.
Website                www.mrftyres.com
Workforce             16,194

No. of Tyre Companies: 39

No. of Tyre Plants: 60

Industry Turnover 2014-15 Rs. 50000 crores (US$ 8.5 Bn)

(est.):

Exports 2014-15 (est.): Rs. 10500 crores (US $ 1.7 Bn)

The Indian Tyre industry is supplementing the automobile industry. Annual changes in demand
of the Auto segment have a direct impact on the Tyre industry.
Indian tyre industry has a massive share of 54% of two & three-wheeler tyres, followed by
passenger cars 23%. Tractor and farm equipment tyres only account for 3%.
The Indian Tyre industry has been very quick in adopting the latest technology trends with the
help of foreign collaborations and ultimately helping Indian needs. The Manufacturers are also
investing in the development of “Green Tyres”. Green Tyres are different from normal rubber
tyres. They are also known as environmentally friendly rubber tyres. These tyres are meant to
save fuel by retaining more energy while driving. The industry is also considering innovative
technologies like self-inflation and run flat tyres (RFT) and they are also gaining popularity in
the Indian Market.
 Industry Turnover - Rs, 13,500 crores per annum.
 Total Number of Companies (large and medium) - 40 having 47 tyre factories location
across India.
 Tyre Exported from India amounting to 1400 crores annually to over 65 countries
worldwide, including several developed countries too.
 Top 7 large tyre companies in India account for over 85% of the total tyre production.
 Indian Tyre Industry plays a vital role in the movement of common man (through buses
and public transportation) and goods (through trucks).
 Indian Tyre Industry provides employment to nearly 1 million people by the means of
direct and indirect employment.
 Tyres companies have built a vast and spider form of marketing network all over the nation
resulting in easy availability of them in almost every remote area as well as the villages also.

Asian paints limited

 Asian paints limited is an Indian multinational paint company which was founded in the year
1942. The headquarter of Asian Paints is situated in Mumbai, Maharashtra, INDIA.

Company Profile

Company name: Asian Paints.

Type                     Public Ltd
Industry                Chemicals
Founded               1942
Headquarters        Mumbai, India
Workforce             4700
Website                 www.asianpaints.com

Industry Overview
The Indian Paint Industry started around in 1902 and completed over 100 years of manufacturing
paints The Indian paint industry is the only segment of Indian chemical industry that has been
sharing a double-digit rate of growth in the last 5 years.
The Indian paint industry has seen a tremendous increase in the preference of the people from the
traditional whitewash to higher quality paints like enamel paints, emulsion etc.
The size of the Indian Paint Industry is around 1 billion litres and is valued at approximately $2
billion.
India is the 2nd largest paint market in Asia with an annual demand of over 2 million tonnes.
This industry is growing over last few decades.
Indian Paint industry stand for 26,040 crore which include share of decorative paint 18490 crore
(71%) and share of Industrial paint 7550 crores (29%). In volume terms the size of the industry is
3.1 million tonnes with decorative paints being 2.4 million tonnes and industrial paints being 0.7
million tonnes.
On an average the Indian Paint Industry has been growing constantly and this growth has caught
the attention of many international players worldwide.

Demand for paints comes from two broad categories:

  Decorative:
The major segment in decorative includes interior wall paints, wood finishes, exterior wall
paints, enamel and ancillary products such as primers, putties etc. Decorative paints account for
of the total paint market in India.
This segment of the market is price sensitive and is highly recommended for profit making as
compared to the Industrial segment.

·         Industrial:
The industrial sector includes 3 sub-segments known as Automotive coatings, powder
coatings, and protective coatings. This sector (industrial) is far more technology intensive than
the decorative segment. I.e. using less manpower and more machine and tools in order to get the
work done.
 INDUSTRY STRUCTURE
(LEVEL OF COMPETITION)
Q.WHAT IS INDUSTRY STRUCTURE?
Q.WHAT ARE THE 5 COMPETITIVE FORCES THAT SHAPE INDUSTRY
COMPETITION ACCORDING TO INDUSTRY STRUCTURE?
ANS. According to Porter’s model:-
*Competitive Rivalry
*Bargaining power of suppliers
*Bargaining power of customers
*Threat of new entrants
*Threat of substitute products or services

INDUSTRY 1:-

ORGANISATION STRUCTURE OF MRF. LTD.

[ CITATION 18SE6 \l 1033 ]
CHAIRMAN AND MANAGING DIRECOR
JOINT MANAGING DIRECTOR
WHOLE TIME DIRECTOR
DIRECTOR MARKETING
DIRECT MATERIAL & EXPORT DIVISION
DIRECTOR ENGINEERIN
DIRECTOR ACCOUNTS

DIRECTOR R & D
DIRECTOR MNUFACTURIN
MANUFACTURING UNITS
GOA
KOTTAYAM
MEDAK
PARAMBALUR
PONDICHERRRY, etc.,
SOME COMPETITORS OF MRF LTD.: -
*Apollo tyres
*Ceat
*JK tyre & Ind
*Balkrishna Ind
*Dunlop
*Goodyear
*Yokohama
MRF TYRES is facing competition with the above listed companies on the following basis:-
[ CITATION 18SE7 \l 1033 ]
1.Price wars
2. Stiff competition from national and international brands
3. Cheaper technologies
4. Volatility in prices and availability of raw material as India’s rubber production is less than its
demand.
5. Government Policies w.r.t export duties, import duties, tax levied on automobile industries and
economic condition of nation as it determines the sale of automobiles.
OTHER REASON: -
6. Introduction of other transport facilities like metro, monorails and local trains keeping
pollution hazards caused by combustion of automobile fuels.

Indian tyre industry is booming, especially in the last decade or so, a number of tyre companies
have started operating in the Indian tyre market. These include foreign stalwarts like Goodyear,
Michelin, etc. as well as trusted Indian giants such as Apollo, JK Tyres.
INDUSTRY 2:-

ORGANISATION STRUCTURE OF ASIA PAINTS LTD.[ CITATION

18SE8 \l 1033 ]

COMPETITORS OF ASIAN PAINTS: -[ CITATION 18SE5 \l 1033 ]

*BERGER PAINTS
*KANSAI NEROLAC
*SHALIMAR PAINTS
*SIRCA PAINTS
*JENSON NICHOLSO
MARKET SHARE OF ASIAN PAINTS IN RESPECT TO IT’S ABOVE
SHOWN COMPETITORS:-

MARKET SHARE From the above pie chart we can see that Asian
1% 8% 1% Paints has the largest share in market because of :-
3%
16% 53% [ CITATION 18SE9 \l 1033 ]
1. It is the largest paint company in India and third
18%
largest company in Asia

ASIAN PAINTS BERGER PAINTS

2. They have over 50% of market share and are clear
KANSAI NEROLAC SHALIMAR PAINTS leaders decorative paints and are strong competitors to
SIRCA PAINTS JENSON NICHOLSO Kansai Nerolac Paints to be leaders in Industrial paints
OTHERS and coatings.
3. They operate in 17 countries and have 24
manufacturing facilities providing service to 65 countries all over the world.
4. Asian paints has strong international presence with its four 4 subsidiaries; Berger International
Limited, Apco Coatings, SCIB Paints and Taubmans.
5. Most renowned brand in Indian Paint Industry & its strong customer focus and innovative-
spirit has made it market leader since 1968.
6. Superior technologies deployed to achieve maintain the competitive edge for eg. Supply chain
management system that integrates plants, regional distribution centers, outside processing
centers etc. hence they have strongest supply chain system with
7. They have maintained their brand name and increased awareness by unique ways of
advertising and roping in celebrities like Saif Ali Khan.
8. The company has strong financials.

Name Last Price Market Cap. Sales Net Profit Total

Assets
Asian Paints 1,333.90 127,947.39 14,167.86 1,894.80 7,808.03

Berger Paints 311.3 30,228.32 4,723.79 431.84 2,286.88

Kansai Nerolac 480.8 25,911.26 4,586.57 516.4 3,134.83

 Akzo Nobel 1,712.35 7,989.88 2,719.35 400.57 1,293.10

Sirca Paints 237.15 433.26 -- -- -

Shalimar 118.95 309.87 271.19 -45.42 296.06

Paints
Jenson 3.2 11.98 7.65 3.28 -265.7
Nicholso

Competitve structure
140,000.00

120,000.00

100,000.00

80,000.00

60,000.00

40,000.00

20,000.00

0.00
Last Price Market Cap. Sales Net Profit Total Assets
-20,000.00

Asian Paints Berger Paints Kansai Nerolac Akzo Nobel

Sirca Paints Shalimar Paints Jenson Nicholso

EFFECTS OF THE INDUSTRY STRUCTURE ON OUTPUT AND QUANTITY

WHAT IS THE MEANING OF INEFFICIENCY

Under some type of situations, firms and industries in market economies might got fail to
produce efficiently. Inefficiency means that scarce resources are not being put to their best use.
In economics, the concept of inefficiency can be applied in different type of situations.

INDUSTRY 1:- MRF TYRES

Following are the same reasons of inefficiency

 Lack of volatility: MRF still lacks a lot of volatility, when it comes to the consideration
of relations based on industries, for example, the unrest of the labors of MRF.
 Being in a very strong competition: MRF has a lot of competition in market, which is
very intense and does somewhere affects the good going of MRF, especially after the
presence of some of the worldly renowned global brands of the industry of tyres.
 An on-going strike: An on-going internal strike in MRF along with the entire automobile
industry in Chennai has traumatized the company to a very great extent. It has hampered
the manufacturing badly, and production is almost dead in Chennai.
   Constantly increasing the price of Raw Materials: The price of essential raw
materials for manufacturing the goods like natural rubber and crude oil is constantly
increasing, both nationally and internationally. This can create a lot of difficulties to get
the supply of rubber in next two years as said by ANRPC.
 Availability of cheaper goods: In a comparison of MRF, cheaper goods are available in
market imported from China. Though the quality is nowhere to MRF, it has been
observed that it made 5% of business in the entire industry.

*MRF RANKS
HIGHEST IN
CUSTOMER
SATISFACTION IN
INDIA FOR A 5TH
CONSECUTIVE
YEAR[ CITATION
18se \l 1033 ]
MRF ranks highest in overall
customer satisfaction for a fifth
consecutive year, with a great
score of 850 points. MRF
performs particularly well in the appearance, durability and ride factors. Bridgestone ranks
second with a score of 848. This is the eleventh time MRF has won the JD Power Award. The
2014 India Original Equipment Tire Customer Satisfaction Index Study is based on 4,449
responses from new‐vehicle owners who purchased their vehicle between May and August 2013.

Name Last Price Market Cap. Sales Net Profit Total Assets

MRF 70,244.30 29,791.61 14,821.92 1,092.28 11,151.90

Balkrishna Ind 1,161.10 22,446.06 4,464.46 739.25 4,713.80

Ceat 1,389.25 5,619.53 6,161.34 278.72 2,962.76

JK Tyre & Ind 117.5 2,665.06 6,453.35 43.09 4,624.42

TVS Srichakra 2,826.05 2,163.92 2,152.25 117.61 955.13

PTL Enterprises 47.5 314.4 60.26 45.83 472.04

Elgi Rubber 33.7 168.67 185.89 1.93 374.88

 competive analysis
80,000.00
70,000.00
60,000.00
50,000.00
40,000.00
30,000.00
20,000.00
10,000.00
0.00
MRF Balkrishna Ceat JK Tyre & TVS PTL Elgi
Ind Ind Srichakra Enterprises Rubber

Last Price Market Cap. Sales Net Profit Total Assets

INDUSTRY 2:- ASIAN PAINTS LTD.

Following are the some reasons of inefficiency:-[ CITATION 18se2 \l 1033

]

1. Being an international standard paint company it should look for more opportunities abroad.
2. There is a good scope for growth especially in paint industry.
3. Needs to have more focus on Automobile industry in industrial paints segment.
4. Competitors are going for Hi-tech process and Asian paints with good financial and
intellectual capital.
IN ORDER TO DECREASE LEVEL OF CONSUMER EXPLOITATION ASIAN
PAINTS HAVE FORMULATED SOME POLICIES:-[ CITATION 18SE11 \l
1033 ]

PRIMARY OBJECTIVES:
*To find out which factors has got influence on customer awareness in Paints Industry.
*To know the awareness level of “Asian Paints” customers as well as other customers
SECONDARY OBJECTIVES:
*To identify the customer requirements
*To analyze the customers perception regarding the preference of Asian Paint Products

INITIATIVE TAKEN BY THE

COMPETITION COMMISSION

SEBI
 SEBI(Securities and Exchange Board of India ) was
established in 1988 but it was only in 1992 that it got
statutory powers through SEBI ACT,1992.
 Controller of capital issues was the predecessor of SEBI
with SEBI deriving much of the authority from Capital
issue(Control) ACT,1947.
 SEBI has its headquarters in Bandra Kurla complex in Mumbai, while its branches are
spread over cities like Kolkata, Chennai, New Delhi, etc responsible for Eastern,
Southern, Northern respectively.
Competition commission of India
 CCI was established to enforce the Competition Act,2002 preventing the activities having
an adverse effect on competition amongst companies.
 It was established in 2003, but it became fully functional in 2009.

MRF TYRES
 MRF tyres has managed to comply with all the requirements of SEBI in terms of capital
markets for the last three years, with no penalties and strictures imposed.
 Corporate governance: Giving back to the society and helps in management of the
company.
 In the tyre business, MRF derives 80% of revenues from the market.
  In the segment ,the company faces a big competition from Michelin, Apollo Tyres so a
healthy competition is maintained.
 The company unperturbed by the competition faced is retaining its market standing
(market share)
 Maximum of the MRF business comes from tyre market (MRF tyres) about 80%.
 The company holds a strong position in the tyre business.

Asian paints
 The company’s total assets are valued at Rs.11,587 which
shows the company is on the right path.
 The company faces a competition with companies such as
Berger, Bombay paints Ltd, Mitsi India Ltd.
 Recently, Asian Paints has acquired 96.48% stake in Berger, which will have a huge
impact on the market share.
 Competition commission of India(watchdog) rejected unfair biz. Practice against Asian
paints, it was said the company used its market position and did not complete painting a
house in Kolkata.

Initiatives taken by competition commission of India

For Mergers and Acquisition
Do it Yourself:
Aim: Whether a transaction is notifiable by the commission or not. It comprises of GOI
notification rules and regulations at the time of acquisions, mergers and amalgamation.

References
competition commission of India. (n.d.). competiton commission of India. (c. c. India, Ed.)
Retrieved september 16, 2018, from efilingcci.gov.in:
https://efilingcci.gov.in/DIY/#/ImportantInstructions
India Today. (2016, january 27). India Today. Retrieved september 16, 2018, from
www.indiatoday.in: https://www.indiatoday.in/pti-feed/story/cci-dismisses-complaint-
against-asian-paints-544747-2016-01-27
the economic times. (2013, november 11). Asian paints aquire 96.48%stake in berger. Asian
paints aquire 96.48%stake in berger. Retrieved september 16, 2018, from
https://economictimes.indiatimes.com/markets/stocks/news/asian-paints-acquires-96-48-
stake-in-berger-open-offer-ends/articleshow/25600460.cms
[ CITATION the13 \l 16393 ]
[ CITATION com18 \l 16393 ]

CURRENT STATUS
MRF TYRES

This Year 2018 marks the Company’s consolidation of its fourth decade of leadership in the
Indian Tyre Industry. MRF Company also faces his first half in the Implementation of Goods and
Services Tax (GST).
In this year the company’s total income was Rs. 15510 crores as against Rs. 15507 crores in
the previous year  and the net
profit of current year is Rs. 1092
crores, there was an overall
increase in all the segments adding
up to a 8% increase in total tyre
production. The Company
witnessed higher raw material
prices in 2017-18 as compared with
the previous year. The Company’s
exports stood at Rs. 1353 crore for
the financial year ended 31st March
2018, as against Rs. 1316 crore for
the previous year. The Company has developed and Implemented a Risk Management Policy for
the Company including identification therein of elements of risk, if any.
The Company has been awarded the Highest Export Award 2016-17, by All India Rubber
Industries Association (ARIA).
The First Quarter of 2017-18 there is an Impact of Demonetizations settling down. In the next
quarter, the company introduce the Landmark Goods and Services Tax (GST) brought in some
uncertainties as Businesses Adjusted to the new regime. However, a good Monsoon resulted in a
healthy upswing in the agrarian economy and stoked a recovery in rural demand. Sizeable state
spending on infrastructure reaffirmed the Government’s commitment towards supporting long-
term growth and firing up economic activity that was adversely impacted by major policy
initiatives. After Registering GDP growth of over 7% for the third year in Succession in 2016-
17, the Indian Economy registered somewhat slower growth, estimated to be 6.5% in 2017-18 on
an annualized basis, though growth rates in the last quarter are expected to be around 7.5% per
annum.
Particulars Number of Members Number of Shares Aggregate number of shareholders and the
outstanding shares lying in the suspense account 982 and number of shares 26435 Number of
shareholders who approached the Company for transfer of the shares from suspense account
during the FY 2017-18 25 and number of shares 738 Shareholders to whom shares were
transferred from the suspense account during the year 25 738 Shares transferred to Investor
Education and Protection Fund Authority as required by Section 124 (6) of the Companies Act,
2013 read with rules thereunder. 616 and number of shares 16201 Aggregate number of
shareholders and the outstanding shares lying in the suspense account as on 31 st March is Rs. 341
9496.

Financial Results

Crores                                2017 – 2018 2016 - 2017

Total Income                        15510 15078
Profit before tax                 1602 2066
Provision for taxation         510 615
Profit for the year               1092 1451

ASIAN PAINTS

As we know Asian Paints ltd is India’s Top

and Largest as well as Asia’s Third
Largest Paint Company. The Current
Scenario of Asian Paint then in 2017-18, it
was Started slowly-retailer offtake due to the
impact of GST as a result the very first
quarter sales fell short of Expectations and
due to which The Home Improvement
Business, Waterproofing Business was
severely affected by GST Implementation.
The Company is in the midst of its large
Manufacturing Capacity expansion due to this two Mega Plants with the initial Capacity of
3,00,000 KL per annum so, these largest Plants would give the Ability to the company to
Manufacture Paints at the lowest cost in Future.
In the Current Year Cash Generated from Operation Increased 37.9% on an Account of growing
Profitable Earnings. Net Revenue from Operation is 11.2% this year and Net Profit Growth is
5.2% and the Market Capitalization as on 31st March 2018 is Rs. 1,07,469.
As Asian Paints are continuously researching an Innovating to develop World-Class products
year after year. Asian Paints focused on inclusive growth according to the need that is based
social interventions to enhance the quality of live across communities.
In recent year the total amount spend by Asian Paints is 46.51 crores that is 4.85 crores on
Health and Hygiene, 22.33 crores on Skill and Development, 6.53 crores on Water
Management and lastly 12.80 crores on Education. Core Interior Emulsions registered good
growth in current year 2017-18 by new launches in the Royale Range as well as new sheen
variants across all Emulsion paints. The Company has gained market share in the crowded
luxury good finish segments and grew in the waterproofing and adhesives segment in a big way
in 2017-18.
              However, 2017-18 has been Watershed year in the domestic economy with the
Government of India affecting a unified Tax regime, Goods and Services Tax from July 2017
because the overall annual growth is 6.5% in 2017-18 as compared to previous year which is
7.1%.
 MARKET ANALYSIS
COST STRUCTURE

MRF

Assumption
1. Total Cost: Cost of goods sold taken as a variable cost which is increasing as the firm’s
production increases.
2. Fixed Cost: Property, plant and equipment considered as Fixed Cost which bear
company

output is assumed

COGS = Beginning Inventory + Purchases during the period – Ending Inventory.

Average Cost fixed cost Average Total Cost Total Cost

output Output
AverageVariable
Cost Variable Cost Marginal Cost change in total cost
Output change in total output

Total Average
Outpu Total Fixed Variable Average Variabl Marginal
Year t Cost Cost Cost Cost e cost Cost
2018 20000 9519.94 6057.84 3462.1 0.4760 0.1731  
2017 15000 7801.22 5474.35 2326.87 0.5201 0.1551 1718.72
2016 10000 6313.16 4584.74 1728.42 0.6313 0.1728 1488.06
2014 5000 8727.65 3421.65 5306 1.7455 1.0612 -2414.49

Yea Total Variable Cost Total

r Cost
2018 3462.1 9519.94
2017 2326.87 7801.22
2016 1728.42 6313.16
2014 5306 8727.65

Total Cost Curve

10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
2018 2017 2016 2014

Total Variable Cost Total Cost

CAPITAL UTLISATION

CAPTIAL UTILIZATION = actual level of output

maximum level of
output

CAPACITY Outpu
Year UTLIZATION t
2018 2.5 20000
2017 3.333333333 15000
2016 0.2 10000
2014 10 5000
 CAPACITY UTLIZATION
12
10
10

4 3.33
2.5
2
0.2
0
2018 2017 2016 2014

Marginal Average
Cost Cost MR
  0.475997  
0.52008133
1718.72 3 431.54
1488.06 0.631316 -5350.86
-2414.49 1.74553 7165.67

Chart Title
8000

6000

4000

2000

0
1 2 3
-2000

-4000

-6000

Marginal Cost Average Cost MR

 Average Average Variable Marginal
Cost cost Cost
0.475997 0.173105  
0.52008133
3 0.155124667 1718.72
0.631316 0.172842 1488.06
1.74553 1.0612 -2414.49

Chart Title
2000
1500
1000
500
0
0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2
-500
-1000
-1500
-2000
-2500
-3000

Average Variable cost Marginal Cost

profit
5989.61 output
7276.79 3
14115.71
4535.55 2.5

1.5

0.5

0
4000 6000 8000 10000 12000 14000 16000 18000 20000 22000
 ASIAN PAINTS

Assumption
1. Total Cost: Cost of goods sold taken as a variable cost which is increasing as the firm’s
production increases.
2. Fixed Cost: Property, plant and equipment considered as Fixed Cost which bear
company

output is assumed

COGS = Beginning Inventory + Purchases during the period – Ending Inventory.

Average Cost fixed cost Average Total Cost Total Cost

output Output
AverageVariable
Cost Variable Cost Marginal Cost change in total cost
Output change in total output

Total Average
Yea Outpu Total Fixed Variable Average Variabl Marginal Average
r t Cost Cost Cost Cost e cost Cost Fixed Cost
2018 20000 11579.53 3960.37 7,619.16 0.5790 0.3810   0.1980185
2,824.4
2017 15000 10,290.56 4 7,466.12 0.6860 0.4977 1,288.97 0.19
2,717.9
2016 10000 10,428.08 3 7,710.15 1.0428 0.7710 -137.52 0.27
2,105.0
2014 5000 9,888.55 3 7,783.52 1.9777 1.5567 539.53 0.42

Total Cost TR
11,579.53 13,937.48
10,290.56 12,448.81
10,428.08 12,458.65
9,888.55 11,485.67
 Chart Title
16,000.00
14,000.00
12,000.00
10,000.00
8,000.00
6,000.00
4,000.00
2,000.00
0.00
1 2 3 4

Total Cost TR

Price OUTPUT
0.696874 20000
0.83 15,000.00
1.25 10,000.00
2.30 5,000.00

OUTPUT
2.5

1.5

0.5

Marginal
Average Cost Average Variable cost Cost
 0.5789765 0.380958  
0.69 0.50 1,288.97
1.04 0.77 -137.52
1.98 1.56 539.53

Chart Title
1400
1200
1000
800
600
400
200
0
0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 2.2
-200
-400

Average Variable cost Marginal Cost Average Cost

profit(TR- profit(TR-TC)
2500
TC)
2357.95
2000
2,158.25
2,030.57
1500

1,597.12
1000

500

0
1 2 3 4

CAPITAL UTLISATION

CAPITAL UTLISATION = actual level of output

maximum level of
output
 Year CAPACITY UTLIZATION Output
2018 5 20000
2017 6.666666667 15000
2016 0.1 10000
2014 20 5000

Chart Title
25

20

15

10

0
2013.5 2014 2014.5 2015 2015.5 2016 2016.5 2017 2017.5 2018 2018.5

CAPACITY UTLIZATION