Industry Profile .

Onam Agarbathi Company
EXECUTIVE SUMMARY
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Onam Agarbathi Company Industrialization plays an important role in the economic development of a country. The gap in percapita income between the developed and a developing country like India is a serious concern. This is mainly due to the disparity in the structure of their economies. The former are large industrial economies while the latter are mainly agriculture-based economies.
The distillery of Onam agarbethi private limited is situated in bangalore. It can be grouped under a mediumscale industry as the capital investment covers over crores of rupees and the number of labourers employed is also more in number..
Among all the functional areas of management, production is considered to be crucial in any industrial organization. Production is the process by which raw materials and other inputs are converted into finished products. The core of production system is its sub-system, where in workers, materials and machines are used to convert inputs into products and services. This process of conversion is at the heart of production function and is present in some form in all organization, every organization irrespective of its purpose, has production function where departments and personnel play a central role in achieving the objectives of the organization. Onam agarbathis private limited is one among those companies, who have really succeeded in production efficiency and has gained positive benefits in all the departments Onam agarbathis marketing verities of products for convenience and comforts of all the people all over the world, by considering the factors like price, quality, quantity etc.. And by also considering the economic condition of high and low income of the people. But now days their many companies exists and they produce many products different brands, that is why for competing in market.
INDUSTRY PROFILE Historical perspective ancient
Onam Agarbathi Company Our collection of fragrances has more than one hundred soothing aromas. We are continuously striving to add new fragrances to our portfolio by innovating newer aromas. Incense is the safest and the most convenient way to spread perfume and fragrances all around your atmosphere.The natural and environment friendly materials that go with making of incense sticks make them harmless and nature friendly aroma products.In the southern states of India. An innovative method of rolling fragrance emitting mixture(dhoop) over thin splenters or sticks of bamboo was practiced. Which when lit wrafted fragrance in the form of smoke. This came to be known as Agarbathi/Dhoops/Incense sticks The usage of Incense sticks/Agarbathies has been a part and parcel and in fact is woven in the fabric of Indian culture from time immemorial equally important, Incense sticks/Agarbathies has always been used on every and all occasions be it religious for joy and sorrow. In vedic times, Incense sticks/Agarbathis were not only meant a symbolize an occasion and an important event were also used to lend fragrance to the air. We breathe as well as to induce a state of mind conduction for the physical and mental well being of the person inhaling the fragrance emitted by the Incense sticks/Agarbathi. History of incense It is interesting to note that the sense of smell is more primitive than the other senses and is directly linked to that part of the brain which is older, in an evolutionary sense, as compared to the brain. Is it any wonder then, that incense, which has all to do with our sense of smell, dates back to the drawn of history itself and the burning of the incense is one of the oldest practice of mankind, The origin of using aromatic substances can be traced back to the stone age or probably even before that. In India, often considered the home of incense, It is eulogized in the Vedas, back in the era 5000 B.C. The traditional well known scents of ancint india were jasmine, rose and musk. Ancient Sanskrit texts contain many beautiful descriptions of festive occasions when incense was burned in homes and streets. Fragrant waters were sprayed on the thoroughfares and scented flower garlands adorned and decorated buildings and entranceways. In fact, flowers, which have deepspiritual connotations in hindu philosophy, are among chief sources of incense in India. Along with flowers, incense sticks and dhoop are part of the 16 essential offerings in a Hindu ritual- the others being betel leaf, betel nut, grain, clove, sandalwood paste, sweets and water, each having symbolic significance. Indeed, fragrance has played a dominant role in hindu religious rituals since vedic times and is intimately linked to the havan or yagna that is the sacrificial fire. Offerings consisting of aromatic and medicinal herbs, resins, barks, leaves and seeds along with foodstuffs and ghee were made to Agni, the god of fire who, according to mythology, carried them to the celestials. This was done to appease the gods for ushering in prosperity or avoiding disaster. The emanating fumes, with their unique aromatic properties, purified the environment and had a vitalizing and invigorating effect on individuals, besides acting as a natural disinfectant. They were said to ward off evil spirits, alleviate anxiety and create an aura of tranquility 4
Onam Agarbathi Company and help in expersing the divine presence. In favt, fragrance, considered a divine attribute, was said to manifest the presence of gods, as well as gratify them. Today agarbathis used in all temples and domestic offerings bymillions across the country. In other civilizations burning of incense hes been an integral part of all ancient civilizations. Fortunes were spent for incense and trade routes established with incense in mind. Among the most important ancient fragrances were frank incense(olibanum) and myrrh, but the resins of various other plants have also been collected and traded since approximately the year 3000 B.C. Gums and resins of aromatic trees were important from Somalia in the Arabian peninsula to ancient Egypt to be used in religious ceremonies. The tomb of titankhamun in the valley of the kings at Thebes was found to have huge quantities of perfumes, oils and incense surrounding his mummy. For Egyptains, incense held a direct connection with the dead. Each incense had a specific purpose and effect. The Babylonians used incense extensively while offering prayers or diving oracles. It was imported into Isreal in the 5th century B.C. where special gold altars were erected for it in the ancient temple of Isreal. According to one theory, it spread from there to Greece, Rome and India. The sophisticated Greeks appreciated aromatic sources such as the turpentine tree, myrrh, frankincense and cinnamon. Enormous amount were spent on these exotic imports. These were burnt as oblation and for protection. More precious perfumes, incense and spices came as imports through Arabia along with established incense routes, to be eagerly purchased by Mediterranean merchants to satisfy the increasing demands of European markets. In Rome it was an important element in public and private sacrifices, especially in the worship of the emperor. The old and new testament refer to the extremely powerful resin drop incense, whose receips were given through vision. Example- Moses was given receips by the creator during his encounters on the Mount. It is well known that when jesus was born, frankincense and myrrh were presented to him along with gold by the three wise men of the east. Today Roman Catholic as well as protestant and the eastern Orthodox churches use incense at mass and in many other rituals. As such, these aromatic substances have been of fundamental relevance to religious and cultural practices and developments through history and have been an inspiration for explorers, aristocrats, writers, artists, poets, merchants and priests and the world trade in these scents of nature has never declined.
Onam Agarbathi Company Development and growth of Incense sticks/Agarbathis The availability of Incense sticks/Agarbathies in the present form, to a large extent, has to be ascribed to the enterprising nature of the muslim community. Mainly form the south india. It was they, who started making use of bamboo stick as the core and a gummy wood powder as the binding medium to apply the mass to these sticks by hand rolling process. They had an intimate knowledge of perfumery materials like civet, musk, saffron, cloves, cassia, agar wood, sandalwood, gum, benzoine dry flowers and roots like rose and vettivert, leaves like davana, patchouli. besides attars of rose, sandal, khees and hina which they used to produce excellent Incense sticks/agarbathis of reputed qualities. One factor which has remained constant where this industry is concerned has been the fact that each individual manufacturers considered his product to be unique and different. Each Incense sticks/Agarbathi has always been hand rolled by the individual without in anyway using any mechanical device in its manufacture Incense sticks/Agarbathis-An handicraft industry Recognizing the unique nature of the units engaged in the manufacture of this product an acknowledging that Incense sticks/Agarbathis is a specality product, the ministry of commerce, government of india, accorded the status of handicraft industry-hand made typically indian They were mainly used on special occasions like poojas, prayers since they were beyond the reach of a common man History of perfumes Perfume is thousands of year old the word perfume comes from the latin per fume through smoke. One of the oldest uses of perfumes comes from the burning of incense and aromatic herbs used in religious services, often the aromatic gums, frankincense and myrrh, gathered from trees. The egyptains were the first to incorporate perfume into their culture followed by the ancient Chinese, Hindus, Israelites, Carthaginians, Arabs, Greeks and Romans. The earliest use of perfume bottles is Egyptain and dates to around 1000 B.C. The Egyptains invented glass and perfume bottles were one of the first common uses for glass.
Company profile
The agarbathi and perfume industry includes the companies that are primarily engaged in manufacturing agarbathi it includes raw materials like bamboos, saw dust/wood dust, charcoal, jigate(gum). It is an global industry and during early years of 1978, world demand for its products has increased to 5 percent every year. Many of the participants in the industry competed on global basis. According to analysis, there is a firm 6
Onam Agarbathi Company correlation. The standard of living of a nation and its usage of agarbathi and perfumery products have increased. The analysts are expecting the industry to continue to grow in both the industrialized as well as developing nations. The industry includes about 2000 companies. Major companies in the consumer sector include Ashoka trading company, Sarathi fragrances, Sheshi fragrances and Darshan international. The industry is highly concentrated with the top 20 companies holding almost 80 percent of the market. In 1932 he was working in his grandfather company, there after getting experience. He started a new company as Onam in 1972. At that time marketing was very difficult so he started giving free samples for shops and houses and also marketed with the help of news papers magazines journals by using a packet of sample and they using slabs, schemes promotions to increase the sales. while starting it was a partnership company during that time they earned more profits. But once they got a problem regarding money and the company was in a loss position. So all the patners left the company and went. Hence it has been converted into sole trading concern. Where in Onam is a fragramanted industry. They are highest in 5% manufacturers and also less than 2% agarbathi manufacturers. They are in top 20 companies who are going to cover 30 percentage of total industry.Which has been registered under Export promotion council of handicrafts [EPCH]. This is a handicraft industry which has been registered under small scale industry. Started in 1972 with one brand - ONAM and a modest turnover of Rs. 4 lakhs, Onam can now boast of a many fold increase in growth with a current turnover of Rs. 60 crores plus. Onam started with one single brand namely. Onam and presently marketing 45 brands with excellent fragrances, Onam reaches to the nook and corner of India. On the export scene for over 40 years, Onams Customers now include countries from the Middle East, South East Asia and Western Europe, U.S.A and Latin American Countries. Onam now reached a remarkable export performance. Onam is recipients of so many awards in the field of Packaging, advertising and export performance.
Onam Agarbathi Company Mr. K.K.Rangaiah, President of this Company is Founder Director having Education of Bcom. B.L. and attended various training programmes in Indian Institute of Management, Ahmadabad, Administrative Staff College of India, Hyderabad, Indian Institute of Foreign Trade, Delhi to bring this Company to this level. He was also managing committee member of federation of Karnataka chambers and commerce and industry for 2 years and past president in All India Agarbathi manufacturers Association, Bangalore.He has traveled a lot in various countries like America, Europe, Gulf Region, Mauritius, South East Asian Countries, and has participated in various product promotion programs conducted by ITPO. Exotic world of fragrances-Agarbathis The very word agarbathis is deep rooted in the subconscious of all Indians is the world of exotic fragrance. It is a Rs.1000 crore industry, more than 50 odd fragrances available, and India is one of the biggest exporters of agarbathis in the world. Some 50 billion odd agarbathi sticks are sold per annum in india but these incense sticks have a long, deep and strong connection with Indian religious tradition and roots. Agarbathis are used at all the places of worship, religious functions, weedings irrespective of religions. Besides it also used as air freshener ans also as mosquito repellent. This itself speaks volumes of the paramount importance agarbathi has. Agarbathi industry is a potential employment generator and is capable of providing employement to the weaker sections of both the urban and rural populace. Most of the persons engaged in fasoonising agarbathis are women and work at homes to augment their income. No education/technical qualification or specialized experience is required. A salient feature of agarbathi industry not found in many other village industries is that this industry is ideally suitable for employment of women in very large number. Men, women, aged persons and even partially handicapped persons can be employed. This industry has got tremendous potentially for employment generation throughout the country because of ever increase in demand. Sweet fragrances notes like sandalwood, jasmine, cedar, cinnamon etc are some of the most famous adours are available. Several big countries like ITChave jumped in this sector to give it a more organized look. Concentration of agarbathi industry is basically in Karnataka, Uttar Pradesh, Tamil nadu and Gujarat but this industry is being given a boost by the state governments of Chhattisgarh, Madhya Pradesh etc. Advantages of agarbathi Varied kinds of fragrances are emitted by the incense each having its own unique vibration. Depending upon the vibrations that it transmits an incense can be used for a wide range of purposes. 8
Onam Agarbathi Company Selected to lift the moods of a person, to make one feel good. Help one relax by reducing ones mental stress which is prevalent everywhere today and to assist with personal development. It is also excellent in raising consciousness and purify the atmosphere in which one lives. Therefore, incense contributes significantly in creating a healthy environment for people seeking wisdom and truth.
Vision Mission and Objectives

Vision To become no.1 in India for Agarbhathi Manufacturing Mission Survival of the company in the market. Goals To maintain the quality of agarbathis Fragrance and religious products at the best price Objectives The main objective is to be a best product in the market To provide a quality service to the customers To maintain the brand loyalty of its customer.
To supply the products mentioned above at most reasonable and competitive rate. To promote and uphold its image as symbol of traditional products. To attain self reliance. To increase companies sales and also market share Explore new markets for the companys product
A rich tradition, a timeless art, handed down the ages. Nurtured with care, developed with the idea of giving sublime satisfaction. Bringing home the fragrances of nature, captured in a way that stirs your soul. Inspired by a team of dynamic, progressive men with years of experience in the field. Endowed with a knowledge of the subtle nuances of agarbathi making. All their skill and competence leading to fragrances that have the breadth of nature. And the touch of the masters. Go on, light up any one of these fragrant finds! See yourself carried into a world of your own.Fragrantly! Quality policy The quality control department critically monitors the quality of rawmaterial, process parameters packaging and odour performance of each batch The raw agarbathies are constantly checked on parameters which include burning tests, checks for uniformity and breakage. The perfume is checked for odour, stability and eco-friendliness. Besides this, the quality control department also check the packaging materials for its tensile strength, bursting factors. 9
Product profile 1972-Onam It is the first brand which came in to existence. An earthy fragrance, rich and sensuous that unfolds slowly and lingers on and on. As close to nature as you will ever want. 1976-vaishak Its the fragrance you find in nature-a bouquet. Blended as cleverly as nature does in her fields and gardens. At last vaishak became number one in India at that time they got many awards for packing the turnover was 15000000. 1981-chaitra The sensation of spring .Brought home in a fragrant way. Bringing back the joyous feeling of those immemorable chariot festivals. Chaitra - a pleasant experience .Its spring come alive fragrantly. It has got many awards for marketing this product. 1982-Gulmohar A buoyant new fragrance, bringing you the fresh breath of Gulmohar. Try it today, Youll unveil a new world of experience. It has given the best quality and created satisfaction among customers. 1984-85-Delika Its a vinature agarbathi which has been came into existence. They use to carry in the bags. The size of those agarbathi are just 5 inches and it costs one rupee only. 1987-Zoon The zoon is nothing but moon in Kashmir language. Here the product has been designed in a boat shape. 1989- Janthar manthar The size of the agarbathi is just 5 inches only. Here is one advantage that there is no need of carrying match box. All the features which are needed for burning the stick will be their itself. 1990- Thai pussam It is the product which has been made especially for Malaysia people. Agarbathi The term agarbathi originates from the Agar or Aloes wood, the original incense which became synonymous with the word and bathi meaning stick. Agarbathi/incense sticks is an item manufactured from aromatic biotic materials consisting of powered wood. Charcoal, barks, seeds, leaves, roots, rhizomes, flowers etc. with some essential oil, mineral oil, resins, gums and aromatic chemicals, the paste of applied on 10
Onam Agarbathi Company to a bamboo core stick or dipping an unscented blank into a mixture of perfumes and essential oils. Throughout the history, a wide variety of materials have been used in making incense. Dhoop/dhoopbathi The term dhoop originates from the dhoop tree, found in eastern india-where chips give out a rich fragrance when burnt. Dhoop differs from agarbathi/incense sticks in many senses. Physically, the two are compeletely different. Sticks are not used in dhoop and dhoop is a paste of the combustible material only.this paste is slightly damp unlike the incense sticks, which are compeletely dry. The chemical composition of dhoopattti is also different. But the popular dhoop-black-colored putty-is essential mixture of ghee, herbs and wood chips, it is , in effect, a miniature form of havan. Joss sticks Joss sticks means sticks used to bring joss that is good luck. The emanating fumes, with their unique aromatic properties, purify the environment and have a vitalizing and invigorating effect on individuals, besides acting as an natural disinfectant. Spiritual importance of agarbathi smell Agarbathi smell help us achieve meditation. Its used extensively in all religions while worshipping the god. Agarbathi smoke rises as cloud and carries our prayers to god. Use of agarbathy in aromatheraphy Burning agarbathies.creates aromatic fragrances. The fragrances is inhaled by us. It targets areas of brain involved in emotions and nervous system. It relaxes brain and triggers, it into recalling good memories of your life. Good memories make us feel good and help us in combating anxiety and depression. Chemical advances in perfumery The late 19th century was the first real era of perfume as we know it when new scents were created because of advances in organic chemistry knowledge. Synthetic perfume products were used in place of certain hard to find or expensive ingredients. At the same time a similar chemical knowledge development happened in textile printing dyes Market scenario of perfumes in india In the 20th century that scents and designer perfumes were really mass produced. Before that, the few trade names that existed were Coty and Yardley who made fairly light scents with familiar smells. Products manufactured Onam is the flagship brand of the Onam agarbathi private limited, situated in N.S.Palya. Onam agabathi is specialized in manufacturing agarbathi, perfumes, soaps, cones, dhoops, kumkum, vibhoothi, loban, havan samagri and turmeric .The company is one of the major agarbathi manufacturing industries owned by a single individual in Karnataka and is running independently. The products manufactured by the company are as follows. 11
Onam Agarbathi Company Agarbathi
SI.NO 1 2 3 4
NAME OF THE PRODUCT Onam Mogra-kewda Mogra-gulab Mogra-lavender
NETQUANTITY (GMS) 7,10,15,35 15 15 15 12
Onam Agarbathi Company 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Vaishak-sandal Vaishak-rose Musk Cinnamon Parijatha Champa Abishek Sindhu Tibe rose Mogra Lotus Gold Dance Bharat rakshak Lavender Super exclusive 3 fragrances Anusha Day+night 3in1 Super class Chandan Rose Navya Loban(export) Clove(export) Ganesh Lakshmi Onam-sandal Jai hanuman Massana kaly Royal(fluxo sticks) Sugandha pooja Oodh Sandal Sudharshan pooja royal Vishnu fragrances Rans dee.classic Surbahar Jai hanuman(20 sticks long) St.Michael (20 sticks long) ProsperitySt.antony(20 sticks long) 20,50 20 50,100 35,100 50,100 50,100 100 100 100 50,100 100 100 100 100 50,100 100 100 100 50,100 100 50,100 100 50,100 100 40 50 50 50 50 50 50 50 50 35 35 35 35 35 35 35
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Other products SI.NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Value chain analysis Value chain describes a way of looking at a business as a chain of activities that transforms inputs into outputs that is customer value. Customer value derives from product differentiation, less cost, high quality & meeting customers needs quickly. NAME OF THE PRODUCTS Cones Dhoops Sachets in floral Fruity Natural Herbals Exotic fragrances Kumkum Turmeric Vibhooti Loban Havan samagri Soaps Perfumes
Inbound Logistics: They will purchase bamboos from Hassam and also some have been imported. Rabhathis from local and also from tirputhur. Charcoal have been purchased from kerala. Perfumes from Bombay and also imported . were 14
Onam Agarbathi Company in some of the perfumes they themselves will introduce by testing them with help of research and development department. Boxes from ITC. Selfane plastic from reliance. Some of the chemicals which have been used to produce perfumes like bemzyl acctate, vanillin, lyral, clove oil, cedar wood oil, petitgram oil, patchonli oil, musk oil, orange oil etc.
Production inputs 1. Bamboos 2. Saw dust/wood dust 3. Charcoal 4. Jigate [gum]
The Indian agarbathi industry scenario The Indian agarbathi industry has been dominated by handful of companies such as 1. Active agarbathi association. 2. All india agarbathi manufacture association. 3. Mysore agarbathi assocaition. 4. Recent entrants include N.ranga roa and sons, - Darshan international, - Ashoka trading company, - sheshi fragrances. This agarbathi association also buys and manufactures which cannot be done by single person like importing rose oil from moraka,venelin from france. The Indian agarbathi industry continued to flourish very well, but suddenly their was increase in demand can be attributed to:1. Growth of population. 2. Income and consumption increase. 3. Increase in urbanization. Agarbathi manufacturers are Classified as, Organized and unorganized sector. Onam is under organized Sector. Present status The company is striving to develop new perfumes for agarbathies and deodorants. The company wants to improve the existing products in terms of quality.
Area of operation 15
Onam Agarbathi Company Incorporated name : Onam agarbathi private limited Address : ONAM AGARBATHI PRIVATE LIMITED No.35/36, N.S.Palya, Bannerghatta road, Bangalore-560 076(india) Ph:080-2678 3958/2678 3960, Fax:0091 80 2678 3959 Mob:98455 63633 E-mail:onamagarbathi@gmail.com Year of establishement : 1972 Weekly holiday : Sunday Working shift : 9:30 am to 5:30 pm Chairman : K.K.RANGAYA Managing director : K.R.RAVI KIRAN Production range : Products like Agarbathi Cones and dhoops Exotic fragrances Sachets in floral Kumkum Turmeric Vibhooti Loban Havan samagri Perfumes
Exports Onam exports their products to different parts of the world. They are Bahrain Belgium Canada Chili Colombia France Guyana Hong kong Kuwait Malaysia Maturities Nether lands Oman Panama Qatar Reunion Singapore Saudi Arabia Suriname U.A.E. United kingdom United states of America Venezuela West indies
Technology Development: 16
Onam Agarbathi Company At the corporate office it uses the internet, which acts as a conformation system in the organization. The company has its own E-mail (WWW.coffeeday.com). Through this e-mail id, the company can have direct contact with the customers. The company considers Research & Development a key to deliver superior consumer value through new technologies for all its products. A service of short, medium and long-term technology projects are being pursued vigorously and these are aligned with the business and consumer requirements.
Information technology The information technology was helped in develop new channels like modern trade, focus on rural market and supports various other sales initiatives. With information technology data-ware housing company is able to access consumer research library.
Procurement: An industrial enterprise is primarily meant for converting raw materials into finished goods. Hence, the procurement function is to make available the raw materials of right type and right quantity at the right time and at right place.
Ownership pattern A sole trading concern is a form of business organization, in which an individual alone invests his capital, uses his own skill and intelligence in the management of its affairs and is entitled to enjoy all the profits as also is soley responsible for all the risks of ownership. A sole trader is a person who carries on business exclusively by himself and for himself. Therefore they are sole trading concerns.
Onam has the following departments:1. Marketing Department 2. Finance Department 17
Onam Agarbathi Company 3. Production Department 4. Quality control Department 5. Purchase Department 6. Research and developement Department 7. Materials Department. 8. Storage Department. 9. Security Department Competitors It is facing cut throat competition in national and international market. Some of the main competitors are 1. N. ranga roa and sons 2. Padmini fragrances 3. Shashi fragrances 4. Sarathi fragrances 5. Darshan international 6. Ashoka trading company 7. V.V Ashwathaih
Infrastructural facilities Waiting room facility Guesthouse facility Car stand facility Restroom facility Safety facility Insurance facility Education facility Hospital facility
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Onam Agarbathi Company Achievements and awards 1. Three National awards in 1977 from union minister of information and broadcasting- for excellence in packaging. 2. 11th All India award for excellence in advertising in1977 from the advertising club, Bombay. 3. India star75 award for excellence in packaging. 4. India star78 award for excellence in packaging. 5. A.R.Bhat enterpreneurship award 1984 for small industry. 6. Annual awards 1986 for excellence in advertising 1986 for television category. 7. Annual awards 1986 for excellence in advertising film category-gold certificate of merit. 8. Certificate of merit for outstanding export performance for the year 1986-87. 9. India star90 award for excellence in packaging. 10. The second award for export promotion for the year 1987=88. 11. Certificate of merit for outstanding export promotion for the year 1988-89. 12. Certificate of merit for outstanding export promotion for the year 1989-90. 13. Certificate of merit for outstanding export promotion for the year 1992-93.
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Work flow model 20
Onam Agarbathi Company The paste prepared with a combination of adhesive jigit, charcoal, sandal by products, halmaddi, aromatic roots, perfumes and other herbs[depending upon brand segmentation] The dough is handrolled on to neat and evenly slit bamboo sticks. These are the sun-dried for best results. Perfume is then applied to the dried agarbathies. The perfume could be a simple off-the-shelf blend and a sophisticated customized perfume. The finished products are then packed into pouches to retain their fragrance,crush-proof tubes and offered to the market. Future growth and prospectus Ensuring effective internal control. Timely introduction and implementation of market driven decisions. Instant decision making in certain procurement activities.
Marketing and sales Marketing is a Social and management process by which individuals and groups obtain what they need through creating and exchanging products and value with others. Onam agarbathi private limited uses different promotional measures in which it used the different media for its advertisements newspapers, magazines . It also have direct marketing especially during the new product introduction.
Marketing Mix Product Price Place Promotion
Product In Onam there are many agarbathis products as well as perfumes. Here the only company which produces agarbathi at different perfumes is onam agarbathi private limited and so most of the people prefer this company product.
Price The price of the agarbathi depends up on competition and prices of raw materials are also considered. 21
Onam Agarbathi Company Onam charges the exact price based on the quality of the product.
Place The Onam is situated in appropriate place in Bangalore. It is a having a very high quality, brand image and the products are sold through dealers and retail outlets and also through other distribution channels.
Promotion In this the Onam consist of personal selling, advertisements in local Magazines and it also advertise through various medias like T.V, Radios, Journals etc. And also while introducing new products the Onam sponsor sales promotion Champaigns like saying them the targets, providing them gifts.
Objectives of the marketing and sales Department To fulfill the consumer satisfaction To increase companies sales and also market share Explore new markets for the companys products To formulate all marketing plans policies, programmes and procedures. Distribute quality products in the market Ultimately to attain the companys objective Functions of Marketing and Sales Department To analyze the market opportunities To develop marketing strategies To plan marketing program
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Mckinseys 7s framework modelmc The 7-s framework of Mc Kinsey is a management model that describes the seven factors to organize a company in a holistic and effective way. Together these factors determine the way in which a corporation operates. Managers should take into account all seven of these factors, to be sure of successful 23
Onam Agarbathi Company implementation of a strategy, they are all interdependent, so if you pay proper attention to one of them, this may affect all others as well. On top of that, the relative importance of each factor may vary overtime. The outstanding feature of the 7-s model is that it has been tested extensively by Mc Kinsey consultants in their studies of many companies. At the same time this framework has been used by respected business schools such as Harvard and Standford. Thus theory and practice seem to support each other in the study of management perhaps the most surprising fact about the 7-s model is that it supports and is similar to the framework of the managerial functions planning, organizing, leading and controlling.
The Seven Factors are: Strategy - A set of actions that the organization starts with and must maintain.. Structure - How people and tasks / work are organized. Systems - All the processes and information flows that link the organisation together. Style - How managers behave. Staff - How the organization develops its managers (current and future). Skills - Dominant attributes or capabilities that exist in the organization. Shared values - Longer-term vision and the values of the organization that shape its destiny.
Those are briefly discussed in following diagram.
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Strategy Strategy refers to the set of decisions and actions aimed at gaining sustainable competitive advantages. Strategy includes vision statement, mission statement, objectives, goals and major action plans and policies. As the company was thinking to deal with 3 brands only, but it was not successful. So therefore they started adopting certain strategies. At last they took a decision that instead of dealing with 3 brands they can deal with different brands. But after adopting this strategy they were successful in business. Which helped them to recover all the amount which has been given in the form of loans. 25
Strategy is a choice of direction and action; the company adopts to achieve its objectives in a competitive situation. Any statements on overall of functional strategy that the company may wish to share are: Improvement in the existing products. Their future plans include launching of new products. The cost control exercise is in consolidation. Introduction of cost effective substitutes without compromising on quality. Development of new perfumes and Agarbathies.
Structure Organizational structure refers to the relatively more durable organizational arrangements and relationships. It is the skeleton of the whole organizational edifice. The design of organizational structure is a critical task for the top management of an organization. It prescribed the formal relationships among various positions and activities. Arrangement about reporting relationship how an organizational member is to communicate with others members, what roles he is to perform and what rules and procedures exist to guide the various activities performed by members are all part of the organizational structure. The various functional department of Onam are directly controlled and subordinated by the senior General Manager who is accountable for managing director of the organization. In this structure includes the different department heads like profit centre Head, Finance manager, Production manager, Marketing managers, Export manager and other are accountable for the senior General manager. Systems System refers to all the rules and regulations purchase and procedures and processes both formal and informal those represent the organization structure. The following systems of Onam are studied below. Onam has adopted the policy of TQM (Total Quality Management), which refers to the deep commitment of an organization to Quality. Onam has started providing training in problem solving, group decision making and statistical methods. Purchasing System If the company is manufacturing a product then the raw materials are purchased or collected at a place and than rent to factories for processing. Accounting System 26
Onam Agarbathi Company The financial systems of the company are prepared on historical cost convention and in accordance with generally accepted accounting principles. Revenue of the company is recognized and expenses are accounted on their accrual with necessary provision for all known liabilities and losses.
Planning System The managing director takes the leading role in organizational planning. This organizational planning includes marketing planning, advertisement planning, research planning, sales planning and others. Research Planning The marketing research department is responsible for marketing research. Depending upon the sales and demand this department plans to why, where and how the research is to made, and assigns the job to particular Research Company. Style The style refers to the leadership style of the management. The style of management at Onam is closely associated with team building, interpersonal interaction and human skills. The employees participate through various committees like work councils, joint councils and committees. The staff councils as work councils are bodies in which the representation is entirely of the employees. The joint councils at Onam comprise representatives of employers and employees. The management of Onam is employee oriented. They receive the feedback from the workers and decide on the change in the strategies. Regarding the style of production, Onam has adopted the policy of TQM (Total Quality Management), which refers to the deep commitment of an organization to Quality. Onam has started providing training in problem solving, group decision making and statistical methods. Staff Staffing is the process of acquiring human resource for the organization and assuring that they have the potential to contribute to the achievement of the organizational goals. It includes the selection, placement and training etc. Personal and administration department looks after the activities like selection, placement, training and development etc. The company fills its vacancies on the basis of educational Qualification prescribed by the company for various jobs. The vacancies for various jobs will be published in newspapers to attract candidates. The personal and administration department conducts tests and interviews to select suitable people. After the interview appropriate candidates will be selected and they are given the training and developmental programs. 27
Classification of employees: 1. Permanent: - a permanent employee is an employee who has been employed on a permanent basis against permanent vacancy by an order in writing by an authorized officer of a company. 2. Probationary: - Probationer is an employee who has been provisionally employed to fill a permanent vacancy and has not completed the period of probation. 3. Temporary/ Contractual: - A temporary employee is an employee who has been engaged for a specified limited period, for work which is essentially of a temporary nature or who is engaged temporarily as an additional employee in connection with a temporary increases in work of permanent nature Skills Skills refer to an organizations dominant capabilities and competence with employee. A skill is an individual ability translates knowledge into action. At Onam, right from the top level management till the lower level, the employees perform with high efficient and effectively. The middle level managers are highly skilled in the area of their discipline. The Accounting and financial manager acquires complete knowledge and updates the some in all financial aspects. The marketing research head is skilled with the different aspects of marketing like advertising, promotional etc. The senior General Manager gives valuable suggestions and guidelines to all the heads regarding the activities they are concerned. The relationship between the employers and employees is very healthy. Employees enjoy their benefits. Workers participation is also being practiced. The management seeks the views of the workers and the trade union whenever necessary. Company gives more importance to its personnel activities, which enables the organization to carry on in a smooth manner. Skills in relation to onam agarbathi private ltmited Skills are much needed for employees to carry out the company strategy. Thus the required skills for employees in order to enhance their job efficiently namely; 1. Interpersonal skills. 2. People management skills. 3. Process knowledge. 28
Onam Agarbathi Company 4. Good product knowledge. 5. Analytical thinking innovations Shared Values It refers to set of value and aspirations that goes beyond the Conventional formal Statement of corporate objectives. The employees of Onam at each level of organizational structure are conscious about delivering customer value for his money. Onam aims at safe products and operations for the environment using standards of environment safety, which are commonly sustainable and commonly acceptable. Investing in the core brands to meet ever changing consumer expectations. Offering quality products and value for money to the consumers. Constantly controlling costs to be the lowest cost producer. Participating with the Government in policy formulation.
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ORGANIZATION STRUCTURE
INTRODUCTION Organization is structural relationship between the factors in an enterprise. It involves the determination of duties and their assignments among the various personnel of the enterprise and co-ordination and combining all such activities for achieving the enterprise objectives. There are several functional departments in Onam agarbathi private limited which are handling various operations are shown below. 1. Marketing Department 2. Finance Department 3. Production Department 4. Quality control Department 5. Purchase Department 6. Research and developement Department 7. Materials department. 8. Security department. 9. storage department. Workers participation in the management In Onam workers participation in the management is very active. Suggestion are Invited, Analysis and if found worthy are duly implemented by the management . Workers are encouraged by the management to participate in the working channel planning. environment. Functions of personnel manager 1. Discipline maintenance. 2. Grievances Handling. 3. Communication Network in the organization 5. Employee Safety and Industrial Health. 6. Co-ordination between workers management, government and outside agencies. Benefits Employees are receiving following benefits, Accident insurance Policies Free periodic Medical care Overtime pay Holidays Festival bounces. This also initiates the workers interest in the working
ORGANISATIONAL CHART 31
vicePresident (K.K.Rangaya) president (K.R.Ahoda)
Managing Director (K.R.Ravi kiran ) Production department Materials department
Marketing department Zonalsales manager Ares sales manger Production management
QCD
Finance Department
Sales officer Sales representatives
Rawbathi Manager Material Manager Packers
Managers of all the departments
Assistant Manager Employees
counters sealers Sales officer Quality inspection Purchase Department Storage Department Research and development Department
Security Department
MARKETING DEPARTMENT
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Onam Agarbathi Company The company main products are agarbathis vibhuhidi kunkam dhoops and cones soaps perfumes which are sold in different parts of India. There are depots at various places of the country which are controlled by 3 branches. The role of each branch is to ensure that sales activities coming under their control. As the company was thinking to deal with 3 brands only, but it was not successful. So therefore they started adopting certain strategies. At last they took a decision that instead of dealing with 3 brands they can deal with different brands. But after adopting this strategy they were successful in business. Which helped them to recover all the amount which has been given in the form of loans. In champas product they got 60 crores as turnover. Actually they are covering whole market area. With the help of sales men. they are going to invest on sales men people only one crore and they get return of ten crores. They conduct the market research with the help of dealers only. They provide up to date information about the company. Their main targets in house wifes and next comes the religious institutions. The positioning strategies entirely depends on market situation. They conduct the sales meetings on every one month based on the expenditure, targets and dozens. That will be given by the sales officer. Some times they will give discounts based on lump sum purchase. Once in a month they conduct South Indian meeting for all the dealers. Where in that meeting they motivate all the sales managers by giving them awards, schemes, gifts, good lunch for families and trip for 5 days will be provided. ORG: Operational Research Group report main source of marketing research private agency which study the competitors consumer demand, market etc that generates the report. Channels of distribution onam manufactures their products i.e. soaps & detergents. After this sent to various distribution points through agents. The stockiest sells to various retailers hence it reaches to the consumers.
Distribution channel Manufacture 33
Agents
Stockiest (Wholesalers)
Retailer
Consumers As the company markets their products, it ensures that there is proper description of their product & its distinct features. So that the consumer can be position to understand its components. Functions of marketing department 1. Marketing Mix : It is the policy adopted by the manufactures to get success in the field of marketing 2. Product Policy: It includes both the turns of development & improvement in produced and existing products. This all totally done by onam both marketing & research and developement department. 3. Distribution Policy: The manufactured product of onam is supplied and distributed through various channels and dealers. 4. Sales & Promotion: The drawback is poor advertising & sales promotion. 5. Packing: Uses different materials for different products, card board boxes synthetic covers. 6. Improving the consumer satisfaction index
Exports Onam exports their products to different parts of the world. They are Bahrain Belgium Canada Chili Colombia France Guyana Hong kong Kuwait Malaysia Maturities Nether lands Oman Panama Qatar Reunion Singapore Saudi Arabia Suriname U.A.E. United kingdom United states of America Venezuela West indies 34
Hireachy structure of marketing department Were in this method have been adopted to kerala, tamil nadu and karanataka.
Zonal sales manager
Area sales manager
Sales officer
Sales representatives
FINANCE DEPARTMENT Finance department is very important in an organization A company needs funds for various types of requirements.. Some funds are required for long periods for the purpose of acquiring fixed assets, and some more are required in order to carry on day to day work.
Functions of Finance Department Fixation of rent and rates of recovery in respect of services / Suppliers / disposals by the company Preparation of performance budget Control of foreign exchange and reporting for exchanging commitment and expenditure Financial concurrence for various activities in terms of delegation of powers. Preparation of finance reports & annual budgets
Preperations of final accounts The profit and loss account is prepared every month by highly experienced accountants. This enables effective monitoring of financial position and preparation of final accounts after the accounting year
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Production department
Production is the conversion process to get desired output of goods and services. The function of this department is planning and executing the process of production to produce the desired output. It is the basic line activity, which forms various businesses. In every organization production is an important activity which deals with the accomplishment of organizational goals. If there is an accurate and good production department, the half work is done. The production department is the actual beginning of its work. It is the only department where the labors are huge in nature and it allows the management to determine the productivity and new technologies. The usual ordering practice in the organization is based on enterprise resource planning system. The volume of purchase of raw materials in a year is 80%. The production capacity of the company is 50 tons for one month. Objectives of production department Decrease the cost of production and wastage in the production process as much as possible Also ensure that the production meets the planned requirements. To increase the output as far as possible. Quality control. Effective employee relation. Cost control of labor. Profit and loss can be determined. Execute, co-ordinate, organize and monitor the production activities.
Hierarchy structure of production department
Production manager
Rawbathi manager
Material manager 36 Packers
Counters
Sealers
Quality inspection
Functions of production department Avoid wastage of raw materials to extent possible Carry on production as for the production schedule To maintain Quality & Quantity production To prepare Bills of material stating Quality of raw materials.
QUALITY CONTROL DEPARTMENT The quality control department in the plant performs the function of using the best raw materials and other inputs, measuring and checking for maintaining then assured standards. As it known that Onam represents for quality. The quality policy of Onam is to maintain a leading position and international standards and also to build high level of customers over their products by providing high consumer surplus. Consumer satisfaction is the main objective of Onam agarbathi private limited and consumer are kept satisfied with various efforts like different schemes and offer and discount etc. But still the basic effort to make the consumer satisfied is to serve the best product , for which quality of the product should be standardized. 37
Onam Agarbathi Company Brand image is also affected by quality standard. Onam is enjoying a high brand image in the market .But for achieving this state the quality maintenance is the basic thing which is the specialty of Onam. It has been consumed by customer which directly related to the health of the consumer .Hence ,quality assurance is what they desire. It is necessary to maintain the quality of the product .Proper attention should be given to maintenance the quality, standard of the product. Quality counts rather than quantity. Producing at a higher quantity is not the matter, producing high quality products does matter in all cases. These is a need to have control on the quality does not deteriorate. In Onam perfumes plays a significant role. In order to maintain the quality of the perfume, the quality control department strives a lot and this is also a need to discover new types of fragrances and to avoid importing the perfumery materials. Objectives of Quality Control department 1. Providing best quality products 2. Improvement in product process 3. To maintain consumer satisfaction at the optimum level 4. Check the quality of the produced products 5. Cost reduction Functions of Quality Control Department It has better skills and gives the best quality products to the market The department has raw materials lots, which checks the quality of raw materials with respect to required specifications. RESEARCH AND DEVELOPMENT DEPARTMENT Research and development is one of the important sections of the unit. It mainly focuses on the chemicals which have to be added in order to make the perfume. Research has been conducted toward sustained quality through advanced technology. Full-fledged research and development department focuses on innovation, improvisation and process. Behind every agarbatty lies an underlying science of creating the right fragrance. The broad parameters for the fragrance is arrived based on the brand positioning and the ambience to be created. Unlike fine perfumery ,the odour for agarbathies, must emanate from the smoke during burning without leaving any bio-odours. With over 2500 different natural oils, resinoids and aromatic chemicals , besides forest based gums and herbs are used to achieve the right fragrance. Achieving this is a mighty challenge for the research and devepolment department. 38
Onam Agarbathi Company Objectives of research and development department To create perfumes. To maintain quality. To see latest technologies.
MATERIALS DEPARTMENT Materials are obtained at right time, right quality at right place from right source &at right cost which leads smooth flow of production. Objectives of materials department Maintaining continuity of flow of materials Effective control of inventories Co-ordination Growth of the organization Maintaining ethical organization
It has been divided into 5 sections Perfumery & aromatically section Packing materials section Chemical section Stores section
STORAGE DEPARTMENT
After inspection the purchase material are taken to store for preservation, if they are meant for stock. Non-stock item are directly taken to the assembly lines from the inspection. Preservation or storage is another aspect of material management. With proper management and co-ordination (particularly with purchasing, receiving and inspection) store can contribute effective operations.
Meaning of storage Storage means store as a building where goods are kept. In store all kinds of goods, products are kept. Raw material, processing/products and finished goods are kept in the storeroom. The Onam also has a storeroom and Onam as kept various products like raw materials finished goods in this storage. 39
Raw materials The main raw materials of Onam are bamboo, charcoal, perfumes and selfane plastic etc these are all raw materials of Onam.
Finished products Finished goods of Onam are agarbathi, kumkum, vibhooti, loban, cones, turmeric, dhoops and havan samagri All products can kept in storage department. . Importance of storage department Ready accessibility of major material permitting efficiently service to users. Efficient space utilization and flexibility of management. A reduced need for materials handling equipment & Easy to physical counting.
Functions of the stores department Make proper arrangements to retain the goods in a perfect condition till they are needed by any of the users section. Maintain a up to date stock ledger. Bring to the notice of the lower amount of stock of any kind in the stores.
SECURITY DEPARTMENT Security department is also one of the important for each and every organization. Security department of Onam is in charge of overall security of the plant site. There are all together 4-security staffs who are working under 2 shifts. Always there will be one staff at loading section and one will be at the gate. The security department will look after overall discipline in the compound and it prevent and detect. Then it registers the name of persons who visited the plant and register the number of vehicle which intended into the plant. 40
HUMAN RESOURCE DEPARTMENT It is mainly concerned with developing skills, knowledge and competencies of people and it is people oriented concept. It is a continuous process for the development of technical, managerial and behavioral skills. It helps in motivating and hiring the employees in the organization. It also helps in achieving the organization goals. They have provided leadership training course for all the employees. Grievance handling measures are by not wasting time. Procedure adopted for attendance is finger prints. They use to provide education for all the employees childrens. Importance of HRD Department 1) Management of human resources. 2) Co-operation 3) Assisting the management in human resource matters 4) Development of work force. 5) Work together to achieve organizational goals and 6) Profit and growth.
Key functions of HRD 1) Recruitment and Selection 2) Training and Development 3) Promotions 4) Wages and salary administration 5) Performance Appraisal 6) Industrial Relations 7) Disciplinary Action and 8) Welfare Measures
FRINGE BENEFITS PAYABLE TO THE EMPLOYEES 1. Washing Allowance: The company provides two sets of uniform once in a year. For this a washing allowance of Rs.25 per month is paid to every worker. 41
Onam Agarbathi Company 2. Leave: The company provides: Earned Leave (EL): Workman who wishes to avail privilege leave shall apply at least 3 days in advance to General Managers. This leave can be accumulated and encased. 18 days EL is credited to an employee. Casual Leave (CL): The leave is to meet unforeseen circumstances and is granted for 3 days at a time and 7 days CL is given to an employee per year. Sick Leave (SL): Workman who avails sick leave exceeding 3 days at a time should produce medical certificate from Doctor. 15 days of sick leave is given for an employee per year and it can be encashed. 3. Family Travel Allowance: This allowance is paid at the rate of Rs.1000 per employee per year who has put a minimum three years of service. 4. Canteen Facilities: All employees are provided with canteen facility at highly subsided rate. 5. Annual Bonus: It is agreed to pay the profit sharing bonus in terms of the provisions payments of Bonus Act 1965. They are going to pay bonus according to the government rules and regulations. 6. Attendance Bonus: It is paid equivalent to one days basic pay subject to minimum of Rs.75 per month. 7. Welfare activities: Once in a year they will conduct welfare activities for all the employees like sports, small games and trip to any place. 8. Festival and National Holidays: They have been provided all the national holidays according to the rules and regulations and also festival holidays have been provided for all the employees. 9. Medical Reimbursement: With regards to hospitalization treatment, the company has taken mediclaim policy from Insurance Company for a sum of Rs.1,50,000 per employee, which includes spouse and two children. TIME OFFICE DEPARTMENT: The main function of this department is to maintain the records such as attendance leaves and pay roll. They also maintain records of the facilities provided by the management. Such employees are maintained by issuing the swap cards depending on the acts performed by the government. 1. Attendance Systems are followed to note or keep a record of the attendance of the employees. Signing system is maintained for assistant managers and above. Registers are provided at appropriate point to facilitate
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Onam Agarbathi Company signature; punching system is followed for the employees below the category of assistant manager. The punching system is different for staff from that of workers. 2. Leave
Leave cards of all workmen are maintained department wise in steel rack in grasiline. Leave cads are issued to workmen on demand half an hour prior to each shift. 3. payroll On the basis of designation, seniority and job assigned, every employee and workmens pay roll is derived and certain increments are made every year. Time office department gets the appointment letter from the HR department with all the specification regarding the employees. Then the concerned person has to count total number of workmen present department wise and maintain log book provided for that purpose.
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Accounting and financial practices

Finance department has the responsibility to maintaining the accounts and exercising financial control. The function of the account section is to record the various transaction of the company in financial terms, apart from the quantitative record necessary records to be maintained. The accounting information so gathered can be used for Submitting to the government and tax authorities Effective management of finance.
Therefore the accounting practice is very important and it must be correct and accurate. The company prepares a budget for every year and the finance department plays an important role in this.
STEPS INVOLVED IN ANALYSIS OF FINANCIAL STATEMENTS It involves three steps 1. Analysis Analysis of financial statements refers to the splitting up or regrouping of the figures found in the financial statements into the desired homogenous and comparable component parts. Eg: The amount of current assets in the balance sheet may be regrouped as Debtors, Cash, and Inventories etc. 2. Comparison Comparison is the process of ascertainment of the relative magnitudes of the component parts or the study of the extent of relationship of the component parts. 44
Onam Agarbathi Company 3. Interpretation Interpretation refers to the formation of rational judgment and the drawing of proper conclusions of the business through careful study of the relationship of component parts obtained through analysis and interpretation. Analysis and interpretation go in hand-in-hand. Interpretation cannot be done without analysis and comparison, and mere analysis without interpretation is of no value. Other Financial and Accounting Practices 1. Stores record The company keeps all the stock of raw material keeps book in the store to enter the incoming and outgoing of raw material. These records also help the company for the valuation of stock and raw material.
2. Sales The accountant records all the selling activities of the company in the prescribed manner. 3. Cash transactions Finance manager controls the whole cash transaction of the company with the assistant of cashiers. An executive coming under the cashier makes the petty cash transactions and they keep vouchers for all the cash transaction. The major payments are made through check. 4. Depreciation The company charges depreciation for all its fixed assets including, machines, land and building, vehicles, furnitures etc. 5. Insurance The company insured all of its assets with an insurance company. 1. Payments All the payments of the company is made only through cheque and cash is paid for low payments. 7. Working capital Working capital is the fund, which is required for day- to- day operation of the company. They raise the working capital by way of loans and also through depreciation.
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Onam Agarbathi Company 8. Inventory section The person in charge of inventory section would look after the daily production, opening and closing stock. For this purpose he should keep daily stock register. The closing stock in the storeroom and in the stock register will be equal. 9. Analysis of financial statement The financial statements provide rich information about the operation and result of business unit and much can be learn from a careful examination. The main function of financial statement analysis is pinpointing of the strength and weakness of a business unit by regrouping and analysis of components and examining their content. Objectives of Financial Analysis 1. Estimate the earning capacity of firm 2. Judge the solvency of firm 3. Determine the debt capacity of firm 4. Know the progress of firm. Important accounts prepared by the company Manufacturing account Profit and loss account Balance sheet. Ratio anaylsis.
1. Manufacturing account Manufacturing account is an account prepared by all the manufacturing concerns to find the manufacturing cost. The balance of this account is transferred to the trading account. Trading and Profit and loss account is prepared like other organization. 2. Income statement or profit and loss account It is a statement, which matches the revenues of a concern with the costs incurred in earning those revenues, and thereby, reveals the net profit or the net loss of an enterprise for an accounting year. It is the score-board of the firms performance during a particular period of time. The income statement reflects the earning capacity and potential of the firm. It represents the summary of revenues, expenses and net income/loss of a firm for a period of time. 46
Onam Agarbathi Company 3. Balance sheet or position statement It is a statement, which indicates the financial position of the business as on particular date. It discloses the assets and liabilities of the business and also the owners capital in the business as on the last date of the accounting year. It contains information about the resources and obligations of a business entity and about the owners interest in the business. 1. Ratio analysis Financial statements, no doubt, contain the items related to profit and loss and financial position of a concern, but the items found in financial statements will not be of much use, if they are considered independently. They will be very useful only when one item is considered in the light of another, i.e., compared. In this regard, ratio analysis is a powerful tool. A ratio is defined as The indicated quotient of two mathematical expressions and as the relationship between two or more items.It is used as an index or yardstick for evaluating the financial position and performance of a firm. Ratio analysis is the technique of the calculation of number of accounting ratios from the data found in the financial statements. Ratios can be expressed in two ways: In the terms of time. Eg.: current assets to current liabilities = 1.36 times In terms of percentage. Eg.: net profit to net sales = 50% 1. Current ratio It is the ratio, which expresses the relationship between current assets & current liabilities. Current Assets: Includes cash & other assets which can be converted into cash with in an year, such as marketable securities, debtors, inventories, prepaid expences, o/s or accured incomes, advances to staff & others, provisions for bad & doubtful debts. Current Liabilities: All obligations maturing within a year are included in current liabilities. They include bills payable, creditors, bank overdrafts, accrued expenses, short term bank loans, provision for income tax, dividend payable, incomes received in advance and long term debt maturing in the current year. Interpretation As a conventional rule, a current ratio of 2:1 or more is considered satisfactory. If the actual current ratio is less than 2:1, the logical conclusion is that the concern doesnt enjoy sufficient liquiddity & there is shortage of working capital.
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Onam Agarbathi Company 2. Quick/ Acid Test Ratio Quick ratio is the ratios, which express the relationship between quick or liquid assets & quick or liquid liabilities. Quick assets include all the current assets excluding stock or inventory & prepaid expenses.Quick liabilities include all the current liabilities excluding bank o/d & cash credit. Interpretation The ideal quick ratio is 1:1. If the quick ratio is equal or more than the standard ratio, it is satisfactory.
3. Debt Equity Ratio This is the Ratio of total outside liabilities to total owners funds. The ratio reflects the relative claims of creditors & shareholders against the assets of the firm. Interpretation The ideal Debt Equity Ratio is 2:1. As such, if the debt is less than two times of equity, the logical conclusion is that the financial structure of the firm is sound & the stake of long term creditors is relatively less.
4. Proprietary Ratio This is the Ratio, which express the relationship between net worth and equity & total assets. Net worth/ Equity mean the excess of total assets over total liabilities. It means proprietors funds. Total Assets refers to all realizable assets, both tangible & intangible except goodwill. Interpretation Ideal ratio is 0.50:1. Higher the Proprietary Ratio, the stronger is the financial position of the concern & vice versa.
5. Inventory Turnover Ratio This is the ratio, which indicates the number of times the stock is turned over during the year. This ratio indicates the efficiency of the firm in selling its products. It is the ratio between stock & cost of goods sold. Interpretation A stock turn over Ratio of 8 times a year is considered ideal. The ratio higher than the ideal rate 48
Onam Agarbathi Company indicates the efficient sales of the concern i.e., the business is expanding & lower ratio indicates the inefficient in sales of the products i.e., business is not prosperous.
6. Debtors Turnover Ratio It is the ratio, which indicates the relationship between debtors & sales. It is the ratio, which indicates the number of times the debts collected in a year. Debt Collection Period This indicates the average time taken by the firm to collect debts. Interpretation If the actual period of credit allowed is more than the normal period of credit or ideal period of credit (30 days) the indication is that credit collection is not efficient. In the adverse case, it is the indication of efficient credit collection.
7. Working Capital Turnover Ratio This is the ratio between working capital & turnover Interpretation Higher Working Capital TOR Ratio indicates the efficiency & low ratio indicates the inefficiency of the management in the utilization of working capital.
8. Gross Profit Ratio This is the relationship between gross profit & sales Interpretation A high Ratio of G/P to sales is a sign of good management, as it implies that the cost of production of the firm is relatively low. It may also be indicative of higher sales price without a corresponding increase in the CGS. 9. Net Profit Ratio This is the ratio between net profit & sales. Interpretation A high Ratio indicates that profitability of the concern is good & vice versa in adverse cases. 49
Onam Agarbathi Company 10. Operating Expenses Ratio This is the ratio of operating expenses to sales. Interpretation A low Ratio is an indication of operating efficiency of the business.
I 1. 2. II 1. 2. 3. III 1. 2. 3. 4. 5. IV 1. 2. 3.
Ratios Liquidity ratio Current ratio Quick ratio Turn over ratio Inventory turnover ratio Debtors turnover ratio Working capital turnover ratio Profitability ratio Gross profit ratio Net profit ratio Operating cost ratio Return on working capital ratio Return on investment Solvency ratio Debt-equity ratio Proprietary ratio Excess of income over expenditure
Standard Ratio 2:1 1:1 Percentage Days Percentage
2010 1.46:1 1.28:1 55.69 62.81 13.98
RATIO ANALYSIS FOR THE YEAR 20092020
Percentage Percentage Percentage Percentage Percentage 2:1 Percentage -
50 3.59 96.41 50.16 41 0.01;1 0.12 0.44
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PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MAR 2010 (In the form of percentage) PARTICULARS Rs. Sales Less: cost of goods sold Raw materials(rabathi) Perfumes and chemicals Boxes Contribution Less :sales and distribution Less: Financial expenditure Less: Administration expenditure Net profit 25 30 8 63 34 14 20 2 18 10 8 AMOUNT Rs. 100
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Balance sheet of 31st march 2010 (In crores)

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SWOT
What is swot SWOT and helps marketers to focus on key issues.
ANALYSIS
Analysis? analysis is a
tool for auditing an organization and its internal and external environment. It is the first stage of planning
A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths(S) or weaknesses(W), and that external to the firm can be classified as opportunities(O) or threats(T). such an analysis of the strategic environment is referred to as a SWOT Analysis. The SWOT analysis provides information that is helpful in matching the firms resources and capabilities to the competitive environment in which it operate. As such, it is instrumental in strategy formulation and selection. The following diagram shows how a SWOT analysis fits into an environmental scan. SWOT Analysis Framework 54
Environmental Scan
Internal Analysis
External Analysis
Strengths
Weaknesses
Opportunities Threats
SWOT Matrix
Simple rules for successful SWOT analysis The organization should be realistic about its strengths and weaknesses. Analysis should distinguish between where the organization is today, and where it could be in the future. Organization should be specific in its approach towards what they do.
Organization should always embrace competition analysis. i.e. where they stand in relation to its competitors. It is not simply enough to identify the strengths, weaknesses, opportunities, and threats of a company. In applying the SWOT analysis it is necessary to minimize or avoid both weaknesses and threats. Weaknesses should be analysed to convert them into strengths. Likewise, threats should be converted into opportunities. Lastly, strengths and opportunities should be matched to optimize the capacity of a firm. Applying SWOT in this fashion can obtain leverage for a company. As can be seen, SWOT analysis can be extremely beneficial to those who objectively analyze their company. The marketing manager should have rough outline of potential marketing activities that can be used to take advantage of capabilities and convert weaknesses and threats. However, at this stage, there will likely be many potential directions for the managers to pursue. Due to the limited resources that most firms have, it is difficult to accomplish everything at once. The manager must prioritize all marketing activities and develop specific goals and objectives for the marketing plan. 55
Strength Brand name Hard working and committed employees Providing the necessary welfare facilities for the employees. Thus employees in the comfort zone and increasing the retention level of employee. Adequate production capacity. Skilled manpower. Good manufacturing practices quality assurance and quality control. Availability of top research and development personnel. Wide distributed network. Motivated staff. Good location. Consistency of earning profits. Ability to maintain uniform quality. Onam attends the complaints from consumers immediately.
Weaknesses Skilled labourers. Low awareness of the company in rural sectors. Tough competitors such as agarbathi playing predominant role. Non-availability of raw materials. Rising cost operations.
Opportunities Improvement in quality of production / operations / services through systems approach. To gain the upper hand in market share in India. Demography- building network in order to capture rural areas. Strengthening of Union Management relationships to achieve organizational objectives. Growing population. Availability of appropriate technology. Presence of favorable cultural environment. Favorable government policy.
Threats 56
Onam Agarbathi Company Healthy competition within the group in terms of quality / quantity / cost. Decline economy of manufacturing sectors in general. Changing customer tastes and preferances. Unawareness about the various products of Onam among the people
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FINDINGS Work flow model helps in organizing work by determining authority and responsibility for staff. Importance of different management functions such as planning, organizing, staffing, directing and controlling was known which guide the organization in facing stiff competition from competitors Knowing the importance of group effort when compared to individual effort in organization. Also importance of human relations was known which help in getting things done through and with others. Employees/ workers have different skills, talents, abilities, attitudes etc and how they are being utilized in optimum manner in achieving organization goals. Individual should be dynamic in corporate sector which guides in career planning and development. By products are further utilized for production. Most of the customers give more preference to fragrance. Another findings is with respect to the price. The customers are more satisfied with respect to the price of a product. Price discounts and free samples are the most appropriate sales promotion technique.
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Onam Agarbathi Company It is very hard to satisfy the customers since the behaviors, tastes and preference changes from a customer to customer. Quality control and assurance guide entire organization in providing quality product to customer and thereby improving the loyalty from customer side. Most of the customers give more preference to fragrance. Another findings is with respect to the price. The customers are more satisfied with respect to the price of a product.
SUGGESTIONS
As per the survey it is clear that customer is giving more preference to the brand. And it is found that Onam brand name is very good in customers mind. So I suggest the company that they should make available each of their products in each and every shop. In terms of overall satisfaction the Onam has to maintain same services in future. The Onam has to make sure that customer should not feel that selected product is not available in the store. During festivals Onam has to give some innovate promotion, to attract customers. The packing of the products is quite effective. A slight improvement in the color & design is suggested. This is because the MNCS in the FMCG sector are making their packs attractive with bright colors & to compete with them an effort in this direction is appreciable. The advertisements of the company should be improved more and more different media for advertisement should be chosen .In the current context, advertising through internet is appreciable. Sales promotion tool should be still more effective utilized. currently, sales promotion seems to be in the second agenda of the company. The company should, in order to improve sales must offer reasonable offer in the market. 59
Onam Agarbathi Company Price discounts must be frequent to satisfy and retain the customers. Should make efforts to promote positive word of mouth . Better training should be given to all the sales employees in the store so that the communication between the customers and the sales person should be easy. It is better to conduct a continuous or periodic market research to identify the position of the market and to know about the changes the customers want
CONCLUSION
From the above study we can conclude the Onam agarbathi private limited. retailers are satisfied with service provided by the company. One of the important element in keeping and enhancing relationship customers is the providing good quality agarbathi and keeping good contact with the existing customer. It also reveals that there are some good opportunities to become a market leader in agarbathi industry.
The company is fully computerized so effective contact with employee will be maintained. Information technology is very useful to company to provide quick service to customer.
The success of any business depends on the understanding customer needs and expectation. This is possible only where there is an understanding in the staff, that customer satisfaction is the key to success to provide quick service.
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LEARNING EXPERIENCE Systematic and committed working is the most important lesson that, I have learned by studying the entire organization. I have also understood that organization do not exist only to make profit but also to serve the society. The company is having flexibility products and service.Which will target each and every segment of potential customers. The important thing, I observed here is skills needed for doing the manager job.where it is not a easy matter for unaware customers. The unit manager should be present for the products details and benefit illustration very effectively. So as to convince the customers. I was thinking that, what I have some of basic skills is sufficient to enter the corporate world. But after observing the skills which Onam company is demanding. I came to know that the skills presently. I am having, is not sufficient. So it is eye opener for me. All together, I have experience to enter to corporate world with determination as nothing is impossible as long as you want to do it.
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BIBLIOGRAPHY
Text book Financial Accounting Marketing Author I.M.Pandey Edition 1st
th
Publishers Vikas publishing house Pvt ltd Abraham koshy mithileshwar jha Himalaya publishers &
Philip kotler & Kevin 12 6th
management lane keller Human resource Ashwathappa Management 1. Journals 2. Brouchers of the company. 3. Website: www.google.com E-mail id: onamagarbathi@yahoo.co.in.
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Onam Agarbathi Company

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