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Page No. Introduction Manufacturing Unit 1 : Ghaziabad, Uttar Pradesh Manufacturing Unit 2 : Sonipat, Haryana Manufacturing Unit 3 : Chennai, Tamilnadu Manufacturing Unit 4 : Mumbai, Maharashtra Manufacturing Unit 5 : Hyderabad Andhra Pradesh Manufacturing Unit 6 : Wazirpur, New Delhi Manufacturing Unit 7 : Firozabad, Uttar Pradesh Manufacturing Unit 8 : Ghaziabad, Uttar Pradesh

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Case study Report

Productivity & Competitiveness of Utensils, Cutlery, and Glassware Sector

Diagnostic Case Studies


Introduction A case study is one of several ways of doing research whether it is social science related or even economic related. It is an intensive study of a single group, incident, community or sector. Rather than using samples and following a rigid protocol to examine limited number of variables, case study methods involve an in-depth, longitudinal examination of a single instance or event: a case. They provide a systematic way of looking at events, problems, analyzing issues, and reporting the results. This Report contains diagnostic case studies of the Utensils, Cutlery and Glassware manufacturing units selected from different product categories across India. The aim of these case studies is to understand the operation of units in this sector and figure out the factors critical to boost productivity and competitiveness of the units. The case studies presented in this report cover various aspects of the manufacturing units like unit profile, its background, the products manufactured, infrastructure and manpower issues, quality related policies SWOT analysis of the units, problems faced by the units and Government intervention required. Product Categories and the manufacturing units studied
S.No 1. 2. 3. 4. 5. 6. 7. 8. Product Category Cutlery, Kitchenware, Bar Accessories, Tableware Stainless Steel Kitchen/Table/Bar Accessories Cutlery, Kitchenware, Bar Accessories, Tableware Utensils, cutlery, Kitchenware, Bar Accessories, Tableware Utensils, Bar Accessories, Tableware Stainless Steel Utensils Glassware Glassware Manufacturing Units Ghaziabad, Uttar Pradesh Sonipat, Haryana Chennai, Tamilnadu Mumbai, Maharashtra Hyderabad, Andhra Pradesh Wazirpur, New Delhi Firozabad, Uttar Pradesh Ghaziabad, Uttar Pradesh

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Manufacturing Unit 1: Ghaziabad, Uttar Pradesh Product category: Cutlery, Kitchenware, Bar Accessories, Tableware
About the Unit This Manufacturing Unit is one of the most reputed companies engaged in the manufacture and export of a wide range of stainless steel cutlery, kitchenware, bar accessories and tableware in India. Established in the year 1977, the unit has succeeded in building an enviable reputation in the international market and is known for strong customer-centric approach and industry expertise. The business strategy of the firm is to keep delivery on time, and keep cost and quality of the good as desired according to customers need. With over thirty two years of experience, the units emphasis is on continually upgrading its manufacturing techniques and keeping abreast of the latest technology to further enhance the quality of its products. The company participates in various fairs organized by different industries group and associations. For example, the company does participate in EPCH Fair, which is held twice in a year, and also participates in industrial fair in the UP Stall. These fairs showcase products and give the firm a chance to publicize itself in foreign and as well as in domestic market. The firm has the quality certificate of: ISO- 9001-2000. Objective and Corporate Philosophy Customer satisfaction is the core of corporate philosophy and providing esteemed customers the best value for their money is the commitment of the unit. The large manufacturing and storage facilities enable the firm to produce a wide range of world class stainless steel house ware items which can be shipped out at a short notice. Due to the persistent efforts and commitment to perfection, units name has become a trust-worthy brand in the stainless steel house ware sector. Product Spectrum Constantly striving to design and manufacture products that meet clients taste and requirements of the unit, products are a fine blend of quality and innovation. The unit offers a comprehensive range of product that includes.

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Cutlery: Spoons, forks, knives, table knives, steak knives, fish forks, fish knives, cheese knives, coffee spoons, soup spoons, parfait spoons, syrup spoons, fruit forks, dessert spins, dessert forks, dessert knives, baby spoons, etc.

Kitchenware: Kitchen tools, spoon rest, ladle, skimmer, spaghetti server, salad server, cake server, colanders etc. Bar Accessories: Cocktail shakers, wine coolers, tool set, trays, stirrer jigger, ice buckets, ice tongs, ashtray. Etc. Tableware: Coaster, table trivets, salt and pepper shakers, paper napkin holders, flower vase, serving tray, etc

An alluring range of all-occasion gift sets is another specialty of the unit. Advantage of Infrastructure of the Unit The company has a strong and comprehensive infrastructure comprising of state-of-art technology and sophisticated machinery that makes each product a work of art. The modern facility in the manufacturing Unit also boasts of an in-house Research and Development wing. From rolling, cutting, polishing to finishing and packaging of the products, all activities are undertaken in-house to ensure strict adherence to the units own quality standards. Empowered By Skilled Workforce A pool of skillful and multi-tasking workforce that comprises of metallurgical experts, production and service personnel, and designers who, over the years, have gained experience in their respective fields is the main strength of the unit. The company is constantly engaged in conceiving innovative and creative designs that makes the unit, a trend setter in its chosen field of expertise. A Penchant for Quality The products of the unit confirm to the internationally prescribed standards of quality. Commitment to quality remains a prerequisite for the firms own self evaluation and motivation for progress. All products of the unit go through stringent checks, right from the procurement of raw material from reputed vendors to the final stage of packaging and

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delivery. The units own check and test facility helps ship only flawless and world class products. Foot Print across the Globe This has earned many accolades in its sphere of expertise by addressing the exact requirements of rapidly growing world-wide clientele. Since the inception of the firm, the firm has managed to outgrow the competition and capture the imagination of units esteemed clients across the Global Market. Annual Turnover The unit mainly deals in Cutlery, Kitchenware, Bar Accessories, and Table ware. The growth of the unit has been impressive in the past few years, but declined due to relocation of the unit from Delhi to Uttar Pradesh. The annual turnover for the last four years is given in the following table: Year 2005-2006 2006-2007 2007-2008 2008-2009 Annual Turnover (in crore Rs.) 4.5 3 4 4.5

The unit manufactures customized products on demand for both foreign and domestic markets. 80% of the units output is consumed by domestic market only. The unit exports mainly to USA, UK, and Turkey. Profitability in domestic market is higher as compared to foreign market. The firm has no foreign collaborations. The firm has not undergone any merger and acquisition. 5-star Hotels, restaurant encompasses majority of the domestic market. The unit has been the leader for its products especially for hotel industry. Now a days due to recession the unit has been facing low demand in terms of domestic and foreign demand for its products. Employment The firm employs local labour. There is no such problem with labour. The firm has 20-22 total numbers of workers. The firm does not give any incentive to its workers. But do pay extra wages for overtime of workers according to per hour wage rate plus dinner. National Productivity Council
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Problems faced by the unit Relocation of the unit Manufacturing Unit was relocated from Delhi to Uttar Pradesh in 2006. Relocation slowed down the growth of the unit. The cost of relocation (shifting cost + operations starting cost) put an extra burden on the unit and thus affected the growth of the unit negatively. Raw Material and Cartelization At present the per kg cost of steel is about Rs.80. The total cost of raw material as a share of total cost of production is about 80%.The unit uses steel (patta) as a raw material for the final product of the unit. One of the renowned company manufacture the steel rollers. The firm encountered the problem of shortage of raw material as this steel rollers manufacturing unit exported most of its steel products to China. Further these rollers are then turned into steel (Patta) as the raw material for the unit. Recently the factories which transform the steel rollers into steel (Patta), clubbed together and made their group, exactly a cartel. Now the supply of steel (Patta) totally depends on the decision of this group. In the recent past, they have shown spurious shortage of raw material and charged higher prices for their output. Furthermore, the partial treatment of state government in taxes like anti-tax on buying raw material from outside the state, stock transfer tax, etc. has been increasing the prices of the raw material and thus cost of production. The future paths will be impressive for the firm if Government provides help in setting up agency which will continuously monitor the steel (patta) prices and by not levying the partial taxes on the raw material. Infrastructural Issues The firm has no such problem in terms of power supply, transportation, road, etc. But the firm faces problem in road transportation at border areas of state, where the quality of roads is in deplorable condition. The firm requires space to expand its operations. Earlier the firm shifted to Uttar Pradesh from Delhi due to space constraints. In the present financial recession situation the firm has also been facing the problem of lack of enough funds to expand its business operations.

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Technological Constraints and Competitiveness The unit does not use automated technique to produce its final output. This restricts the firms capacity in production. On the other hand the foreign countries having automated techniques are able to fulfill the large order demand of the customer. Due to the problem of no automation technique the firm cannot produce with coils. Chinese products have much better quality as compared to the Indian firms because of lack of technological upgradation. But recent steps taken by Delhi government have helped the industries in adopting the automated techniques. Low Margin Low margins or profitability is a major cause of lesser number of firms in this industry. After going through the different processes of manufacturing a lot of steel becomes scrap. And the low price of this scrap increases the cost of raw material (steel) and thus shrinking profitability. Government Intervention Required The unit is satisfied with the Foreign Market Policy of the Government. The products of the unit come under the category of Duty Drawback (DPEB), therefore no export duty is levied. The Unit seeks from the state government (Uttar Pradesh) not to levy partial taxation system. The UP government has put anti-tax by putting tax on buying raw material from outside UP area. Similarly, government has put stock transfer tax of 4%, according to which if a firm wants to transfer its stock from UP to any other state then that firm has to pay 4% tax to government. The unit wants relief from this kind of partial taxation system.

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SWOT ANALYSIS
STRENGTHS Well educated and experienced value with products to Price WEAKNESSES sensitiveness of the Indian

management Strong R&D Good infrastructure Strong marketing network Well established brand in

customer Environmental hazards The problem of making cartel of steel (patta) producing factories Low/ limited capacity The prices of raw material are very high Low scrap items prices. Discrimination by state government in terms of taxes the best in class

international market Enhancing customer

innovation and design Delivering customers Developing organization quality

OPPORTUNITIES Huge potential in domestic market Favorable central government polices for SMEs Good consumer base in both

THREATS Fluctuation in dollar-rupee exchange rate Stringent countries Cheap imports from china and other Asian countries Cartelization of raw material producing firms quality norms of EU

international and domestic market Increasing demand in international market Align strategy for growth. Align and upgrade environment for future

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Conclusion In the present globalization period if a country wants to compete in the foreign market then it has to focus more to make its industry more efficient and competitive. This is what is needed for the manufacturing Unit. The partial taxation at state level and cartelization of raw material producer are hindering the growth as well as competitiveness of the unit. Therefore government has to withdraw from such taxation system and make a monitoring agency to help the firm and industry.

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Manufacturing Unit 2: Sonipat, Haryana Product category: Cutlery, Kitchenware, Bar Accessories, Tableware
About the Unit This manufacturing unit is 25 years old unit engaged in the production of premium stainless steel kitchen/ table/ bar accessories. It is promoted by a family having experience of three decades in the production of stainless steel products. Steel is a challenging material to play with, to craft as per ones creative needs. Its durability, shining and hygiene is not a new thing for all of us. But due to its toughness, very few have succeeded in moulding this material to their deep sense of creativity. Right from its inception in 1984, the unit has been breathing, sensing, imagining and admiring creativity and art of craftsmanship for stainless steel cutlery, kitchen tools and utensils. Three quarters of units total sale are attributable to international markets. The unit is, therefore, fully aware of the fact that differences in eating habits do not always run parallel to a countries border. The specialists monitor the changes taking place and often know from previous experience in which direction these changes are heading. The deep rooted melody of crafting cutlery and kitchen tool has given birth and a new meaning to the world of utensils. The long standing experience has nurtured the units new plant at Kundli for meeting the ever rising demand of its domestic as well as global customers. Situated at Delhi- Haryana border, manufacturing unit is well equipped with latest state of the art technology and knowhow. A world ever getting smaller increases the market opportunities. A coordinated effort combining people, location and time is the key to success. A separate and parallel R& D section is assisting the different manufacturing processes. The products of the unit impart pure look and originality in style. This high order of quality is achieved through stringent quality control at every step. Unit Profile Total Factory Area Year of Establishment Management Executives Research and development 80,000 sq. ft. 1984 20 5
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Sales and Marketing Production Staff Quality Control Applicable Standard Quality standard Total Annual turn over Product Category

8 700 20 AISI/JIS ISO 9001-2000 Rs. 400 crores

Unit offers creativity and art of craftsmanship for Stainless Steel Cutlery, Kitchen Tools and Utensils. The Unit has formulated the established most comprehensive technological process for the manufacturing of Kitchenware, Table Cutlery, Table top tools, Bar tools and Handcrafted cutlery. These include:

Regular Canister Cocktail Shaker 6 Pieces Kitchen Tools with Stand 5 Pieces Kitchen Tools with Square Caddy 6 Piece Tube Set Tea Spoon & Table Spoon Cake Fork & Table Fork Table Knife Oval Ring Kitchen Tool Spaghetti Server Basting Spoon Perforated, Slotted, Solid Masher & Sauce Ladle

Objective of the Unit To excel in the Global Market by having a competitive advantage over others. Organization Structure The responsibility and authority of the unit personnels, who manage, perform and verify work affecting quality is clearly defined with the organization structure with freedom and authority in terms of the following: National Productivity Council

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1. Execute all the action needed to discharge the authority and Responsibility in performing there process and quality system. 2. To ensure that quality system is established, implemented and maintained in accordance with the international standard. 3. To liaison with external parties on matters relating to quality system. 4. To identify and record any problems relating to the products process and quality system. 5. To initiate, recommend or provide solution to designated channels. Human Resource Management Policies Participation of workers and inviting views of its customers have been a tradition for the unit. Resultantly, low priced, functional products with modern designs have become a normal phenomenon. Above all regular quality audit has had an added advantage on increasing the working efficiency of the unit. An integrated team of designers, products developers and purchasers are formed for discussing design, materials and suitable suppliers in achieving specialization for each and every product of the unit. Radiantly, these fully awakened efforts are breathing fresh oxygen into the lungs of its workmen. The unit has established strict norms for health and safety of its workers by taking precautions on all health hazards factors. Prohibition of child labour has always been given a top priority. Business Strategy The unit has been in process of shifting its distribution channel from Importer based network to Agency based network. The unit has already set up its authorized agents in Italy, Israel, Greece and many more are under their process of formation. This allows the products to reach the market with a competitive price tag inspite of their good quality. The products are regularly updated, modified and further improved to respond to customers needs and latest design trend. To meet the changing expectations of its customers and environmental policies of the Government the unit is putting its consistent efforts for an all round development like: Cost reduction. Cost control fixation of new standards in production National Productivity Council
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Quality and innovative designs are evolving as a major concern for shaping a better dayto-day life for a common man. Modern manufacturing facility giving a thrush of relief from polluted environment. Most competitive prices offered have already been set an example to be followed by others. Technological Manufacturing Process The unit has formulated and established most comprehensive technological process for the manufacturing of products. A Good Management Practice Press Working Technology The raw material is further processed into various sheet metal press, working technological operations by means of precession press tools/sheet metal dies, designated, developed and manufacture in tool room, leading to successful contribution to achieve quality products during production stages. In-Process Production Quality Inspection During each stage of press working, the quality control engineers carry out vigilance inspection of all products to ensure dimensional accuracy, free from any manufacturing defects. Non-confirming products are RED-MARKED and kept in rejected material bins for rejected storage areas. Only quality-inspected products are further allowed to process into subsequent manufacturing operations with Inspection Tags. Store-Handling Black production materials are sent to Store for storage and handling for further issue of materials to polishing contractors under Store Requisition Form.

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Polishing/Satin Operations Quality control engineers carry out 100% vigilance inspection of polished materials with regards to 1. External finished surface quality. 2. Material defects such as Dents, scratches, Marks, Unfinished polish areas, Etc. 3. Fixation of Bar codes/labels/Electrical Stamping/Stickers, etc. 4. Accessories-Any packing special material requirements. Packing Carton Marking/Weight Marking Special care is taken by the packers to ensure that only quality approved materials are packed in required packing cartons. Weighing of Materials Each master cartons are marked with respect to:1. Net weight in kgs. 2. Gross weight in kgs. Marking of Carton Nos. According to the packing list each master carton are marked by respective nos. to avoid any short shipment of supply. Transportation of Material Forwarding Division Finally forwarding division transports the packed cartons as per packing list for onward containerized loading to Mumbai port for final destination as per invoice details.

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Labour Productivity Year 2003-04 2004-05 2005-06 2006-07 2007-08 No. of Employees 50 80 110 120 180 Annual Turnover (in Lakhs) 134 1321 1916 2820 2987 Turnover/Wor ker (In Lakhs) 2.68 16.51 17.42 23.50 16.59

Environmental Norms and Relocation The patti-patta is manufactured through rolling process and in this process the pickling process is also involved. This combined process is called as Stainless Steel Pickling. During this process acid is evolved. This acid is neutralized by mixing alkali (caustic soda) in it. New Delhi Pollution Control Committee, Department of Environment, Govt. of NCT of Delhi has issued a notice saying, It is hereby directed that all such units, engaged in the activities falling under prohibited/ negative list shall stop their activities and relocate themselves outside Delhi on or before 6th February 2010, without fail. Failure to do so will invite strong regulatory action as per provision of Air (Prevention and control of Pollution) Act, 1981 and Water (Prevention & Control of Pollution) Act, 1974.If these manufacturing units which are engaged in the production of patti-patta are closed on the basis of above notice then not only these units will be effected but those units which are engaged in the manufacturing of utensils, cutlery and kitchen tools will also be closed down. Although the pollution created by the pickling process is neutralized by mixing alkali in it, but even then if the Government does not agree with it then the time period of minimum of two years may be given to these units and the alternate site may be allotted to these units. If this problem is not taken seriously, then the Indian market will be flooded with China made utensils, cutlery and kitchen tools. Impact of this order is minimized in case of the unit as it is not involved in production of patti-patta but unit purchase it from other manufacturers. If these manufacturing units will be closed down then it can make impact on cost of patti-patta, which will hit directly the profit of the unit.

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SWOT ANALYSIS
STRENGTHS Well educated and experienced WEAKNESS Negligence toward domestic market Power cuts Customers negligence toward brand Price sensitiveness of the Indian

management Strong R&D Good infrastructure Strong marketing network

customer Environmental hazards

Well established brand in international market Enhancing customer value with

innovation and design Delivering customers Developing organization the best in class quality products to

OPPORTUNITY Huge potential in domestic market Favorable government polices for SMEs Availability financing Increasing demand in international market Align strategy for growth Align and upgrade environment for future of cheap source of

THREATS Fluctuation in dollar-rupee exchange rate Stringent quality norms of EU countries Higher export duties on final products Higher import duties on raw material Cheap imports from China and other Asian countries

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Government Intervention Required Although there exists various clusters of cutlery sector in India, but they are not given due recognition and facilities. Government should strengthen its cluster development policy. Some special attention needs to be provided to these clusters in order to ensure further growth in these sectors. Conclusion The unit is among the leading manufactures & exporters of stainless steel cutlery, Kitchen tools Barware, Utensils etc. and handcrafts of India, they always strive for the excellence in style and function. It exports to more than 40 country across globe and also have strong presence in Indian market. Units major market include Germany, U.K., France, Italy, Australia, Middle East, North America and Latin America. Units experience of more than two decades always aspire to meet the identical demands of the customer and have endeavored to find a way by offering fancy and elite products to satisfy long standing requirements of the customer. Unit has annual turnover of Rs. 400 crores and running successfully in profit since inception. Unit has gained the global status in quality, profit, customer satisfaction, widening of markets and export to China.

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Manufacturing Unit 3: Chennai, Tamil Nadu Product category: Cutlery, Kitchenware, Bar Accessories, Tableware
About the Unit This Manufacturing Unit is a 50 years old unit engaged in the production of premium stainless steel kitchen/ table/ bar accessories. Product Spectrum Constantly striving to design and manufacture products that meet clients taste and requirements of the unit, products are a fine blend of quality and innovation. About 200 products are being manufactured by the unit. The unit offers a comprehensive range that includes: Cutlery: Spoons, forks, knives, table knives, steak knives, fish forks, fish knives, cheese knives, coffee spoons, soup spoons, parfait spoons, syrup spoons, fruit forks, dessert spins, dessert forks, dessert knives, baby spoons, etc. Kitchenware: kitchen tools, spoon rest, ladle, skimmer, spaghetti server, salad server, cake server, colanders etc. Bar Accessories: Cocktail shakers, wine coolers, tool set, trays, stirrer jigger, ice buckets, ice tongs, ashtray. etc. Tableware: Coaster, table trivets, salt and pepper shakers, paper napkin holders, flower vase, serving tray, etc Objective of the Unit To excel in the Global Market by having a competitive advantage over others. Human Resource Management Policies There are about 280 employees working in the factory. Out of the total 280 employees, 200 are permanent and about 80 are on contract basis. The wages paid to the workers are as per norms of the factory act. The wages have gone up by 1.5 times in the past five years. There is no category of skilled labour in the factory.

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Labour Productivity No. of Employees 120 140 170 190 200 240 280 Annual Turnover (Crores) 420 500 530 600 600 700 750 Labor Productivity (per person) Rs Crores 3.50 3.57 3.12 3.16 3.00 2.92 2.68

Year 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Antidumping Duty State (Tamilnadu) Government has imposed Anti Dumping Duty on the raw material. Because of this prices have become 30% higher within the last three months. For the manufacturing of good quality products, 40% of the material goes as wastage (30% in cuttings and 10% in the process). This degrades the cost competitiveness of the unit. At present the China Made kitchen products are flooded in Indian market as well as in the World market and it has become very difficult to compete with the China Made products in the local market as well as in the international market due to the imposition of Anti Dumping Duty. It is also pointed out that the non stick utensils are available in the market which has no brand. These non sticky utensils are so cheaply available in the market that the Indian Manufacturers cannot compete with it. These are approximately 30% cheaper than the Indian products.

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SWOT ANALYSIS
STRENGTHS Well educated and experienced customer value with the best in class WEAKNESSES Price sensitiveness of the Indian customer Low/ limited capacity The prices of raw material are very high Low scrap items prices. Discrimination by state government in terms of introducing the Anti Dumping Duty. products to Wastage is on a very higher side. The wastage cost is very low

management Strong R&D Good infrastructure Strong marketing network Well established brand in international market. Enhancing

innovation and design Delivering customers Developing organization. Availability of electricity is sufficient. quality

OPPORTUNITIES Huge potential in domestic market Favorable central government polices except the Anti Dumping Duty Good consumer base in both

THREATS Fluctuation exchange rate Stringent quality norms of EU countries Cheap imports from China and other Asian countries Monopoly for the supply of raw material in dollar-rupee

international and domestic market Increasing demand in international market Align strategy for growth. Align and upgrade environment for future

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Findings The firm has the automated technique, which provides quality products to the firm. The sufficient space is available for the working. The cartelization of important raw material producers. No Monitoring agency for the steel prices. Intense competition in terms of quality from other countries, especially from China.

No extra taxation system at the state level except Anti Dumping Duty. Transportation facilities provided are sufficient and cheaper
The power supply is sufficient.
Conclusion

The introduction of Anti Dumping Duty by the state government has resulted in increasing the cost of production and thereby creating a problem for the competition in the local as well as in the international market especially with China made products. Therefore government has to withdraw such taxation system and make a monitoring agency to help the firm and industry.

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Manufacturing Unit 4: Mumbai, Maharashtra Product category: Utensils, Cutlery Kitchenware, Bar Accessories, Tableware
About the Unit The unit is a manufacturer and exporter of a number of stainless steel products of flatware and hollow ware for institutions, households, gifts, sales promotion users and restaurant supplies like bars, desserts, table, bathroom accessories and gift wares. Unit profile Total Factory Area Year of Establishment Number of employees Total Annual turnover Manufacturing facilities at the Unit The unit owns one of the finest manufacturing facilities and state-of-the-art machinery to meet the escalating demands of the competition. The factory covers approx. 30,000 sq.ft. area. Some of the manufacturing facilities comprise of the following: Operation Blanking (30 150T) Shearing (3mm x 1m) Deburring Vibrator Embossing Deep Drawing (50T 150T) Rolling / Spinning Lathe Stamping Spot Welding Pulse TIG Welding Electric Arc Welding Chemical Etching National Productivity Council No of Machines 6 3 3 12 12 25 6 9 4 2 3 30,000 sq. ft. 1994 331 Rs. 40 crores

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Plastic Coating Plant Lacquering Plant Shaping, Milling, Surface, Drilling etc.

1 1 11

Besides this, the unit has separate in house tool manufacturing section comprising of CNC WIRE EDM cutting and supporting machines with 23 skilled tool makers. Experience of the Unit With the experience of seven generations in this business of Sheet Metal Forming and the present infrastructure of over 700 products, 2000 tools and in house quality control department, the unit is maintaining Uniform Superior Quality and timely shipment for bulk quantities and are confident to satisfy the customers need. The entire process is executed under expert supervision of trained supervisors. Foot Prints across the Globe The high quality products are in demand all over the world and are manufactured by the unit. 99% of the products are being exported to different countries. The unit supplies to more than 185 customers in 45 countries like USA, UK, West European, East European, Australia, Far East, South Africa, CIS countries and others with a customer retention ratio of 95% and growth rate of 40-45% every year. Quality Policy The unit believes that quality is a combination of stringent and disciplined evaluation. It is a decisive factor in the success of a unit and its products. The unit believes that a satisfied client is the first step towards repetitive orders. To match with the expectations of their clients and ensure only the best reaches their customers, the unit constantly upgrades the quality checks. The unit has underlined the following 3-Point Quality check process. 1. Inward Raw Material Inspection Inward raw material inspection constitutes the first phase of the quality check. Every raw material entering the production premise is checked for its quality. The raw materials are only added to the raw stock after the quality check professionals are convinced of its quality. National Productivity Council
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2. Online Inspection Online Inspection forms the second phase of the quality check program. The engineers keep a vigilant check on every stage of the production process. This online monitoring of the production process helps unit control the quality at vital junctures, ensuring right actions at the right time for best results. 3. Pre-packaging Inspection Pre-packaging Inspection forms the final phase of the quality inspection process. In this stage each and every product is personally checked for any physical irregularity in the shape, size, finish and a host of other criterias specially laid down to ensure only the best products reach the clients. Further, the units management is currently undergoing extensive learning to implement KAIZEN and SIX SIGMA process improvement techniques for better management of the resources and profitability. Anti Dumping Duty The basic raw material used for the manufacturing of utensils, cutlery and kitchen tools is flat stainless steel. Industries located in Maharashtra buy it from Jodhpur, Ahmedabad and Delhi. On the raw material (flat stainless steel) Anti Dumping Duty has been imposed by the Maharashtra Government. At present the China Made kitchen products have flooded Indian markets as well as the World markets and it has become very difficult to compete with the China Made products in the local as well as in the international markets due to the imposition of this Anti Dumping Duty by the Maharashtra government. It was also pointed out that the non sticky utensils are available in the market which has no brand. These non sticky utensils are so cheap in the market that the Indian Manufacturers cannot compete with it. These are approximately 30% cheaper than the Indian products.

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SWOT ANALYSIS
STRENGTHS Well educated and experienced WEAKNESSES Price sensitiveness of the Indian customer The prices of raw material are very high Low prices of scrap items Discrimination by state government in terms of introducing the Anti Dumping Duty.

management Strong R&D Good infrastructure Strong marketing network Well established brand in international market Enhancing customer value with

innovation and design Delivering quality products to customers Minimum wastage/scrap.

OPPORTUNITIES Huge potential in domestic market both Favorable central government polices except the Anti Dumping Duty Good consumer base in

THREATS Fluctuation in dollar-rupee exchange rate Stringent quality norms of EU countries Cheap imports from China and other Asian countries Monopoly of the suppliers of raw material

international and domestic market Increasing market Align and upgrade environment for future demand in international

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Findings The firm has been using automated technique and processes, which manufactures quality products to the market. The sufficient space is available for the working. No Monitoring agency for the steel prices. Intense competition in terms of quality from other countries, especially from China.

No extra taxation system at the state level except Anti Dumping Duty. Transportation facilities provided are sufficient and cheaper
The power supply is sufficient
Conclusion

The introduction of Anti Dumping Duty by the state (Maharashtra) government increases the cost of production and thereby degrading the competitiveness in the local as well as in the international market especially with China made products. Therefore. government should withdraw such taxation system and make a monitoring agency to help the unit and industry. In the state of Maharashtra the government is helping and providing sufficient facilities to every industry and industries engaged in the manufacturing of utensils, cutlery and kitchen tool is also one of them. The industry engaged in the production of utensils, cutlery and kitchen tools are quite satisfied with the supply of electricity.

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Manufacturing Unit 5: Hyderabad, Andhra Pradesh Product category: Utensils, Bar Accessories, Tableware
About the Unit The unit is engaged in the manufacturing of Aluminum utensils meant for daily household use. The main items manufactured by the firm are Thali, Patila, Mug, Drums etc. The manufacturing unit has always aspired to meet the demands of customers and has endeavored to satisfy the long standing requirements of the customers by offering good quality products for the last three decades. Production and Turn over The unit has been engaged in the production of Aluminum utensils for more than 30 years. The unit started working in the year 1976 with gross target of 5-8 tonnes per month and progressed slowly and steadily to achieve the target of 15 tonnes per month in 2008. During the last 10 years the increase in production has been only 5 tonnes per month. The main reason for such a slow increase in production is that the unit takes care of the local consumption only and has never endeavored to explore the markets beyond Hyderabad and Andhra Pradesh. The unit has not done any innovation to introduce any new designs or shapes of the utensils and the same old designs/shapes are in the process since the inception of the unit. The production of utensils remains stable throughout the year but the sales see a surge during Diwali festival. There is no R&D division in the unit and the owners/Partners of the unit do not feel any need for a R&D division. The manufacturing/Sale process adopted is quite old. The unit belongs to the category of Small scale industries with an annual turnover of approximately Rs. 75 lacs. Resources for the Unit Total Factory Area Year of establishment Management executives Research and development staff Sales and marketing staff National Productivity Council 21000 sq.ft. 1976 8 Nil 3

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Productivity staff Quality control staff Quality standard Total annual turnover

30 Nil Nil 75 lacs

Human Resource Management (Management, Employees, Incentives system etc.) At present the number of employees working in the firm is 41. The monthly pay of these workers ranges from Rs 4000 to Rs.10000 per month according to the work assigned. The wages paid to the workers are as per norms of the Factory Act. The wages have gone up by 1.5 times in the past five years. The raw hand labor is picked up, work is assigned to the person and after acquiring the requisite skills, the labour is called the skilled labour. There are no as such targets for any worker for the completion of job either on a daily basis or on a monthly basis. The unit employs a special incentive scheme for outstanding workers in the form of extra pay of one month. The firm has given a top priority for prohibition of child labour. Business Strategy & Productivity The firm aspires to grow using its own resources and thus reinvests the profit generated in the firm. To meet the market competition and production the unit is making efforts on the following grounds 1. Maintaining Cost competitiveness 2. Providing good quality products Plant & Machinery The three machines naming Rolling Mill, Press and Spinner machines are deployed for manufacturing aluminum utensils. The unit has not upgraded its machinery since long. The unit is of the opinion that its work is going on smoothly with the old machines and thus there is no need to make investments in upgrading and buying new machines Waste Minimization: A Good Practice The volume of production by the factory is between 10 tonnes to 15 tonnes per month. The unit doesnt follow any fixed targets for the production. The raw material is easily available National Productivity Council
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within Andhra Pradesh State. The raw material is purchased at the rate of Rs.74/- Kg. and utensils are being sold in the market at Rs.150 per Kg. The process of cutting the aluminium sheets into circles for the manufacturing of utensils involves wastage of about 45% of the materials, though this wastage can again be converted into sheet after melting and circles can again be cut out of that sheet for the manufacturing of utensils. In general there is no wastage at all in the process employed by the unit. The process of melting and converting this wastage into sheet results in increased production cost. Problems faced by the Unit Relocation The unit has been facing the pressure of relocation from the state government. The area in which the unit is located in Hyderabad was declared as an industrial area 30-40 years ago, but with the development of residential inhabitation, this area has been declared a residential area. Govt. of Andhra Pradesh is forcing the factory to relocate to a place 50 km. away from this residential area. No industrial plot or industrial area has been allotted for relocation of such units. Relocation of the units to the new place has become a threat to the unit as the new areas are generally not easily approachable. Central Sales Tax (CST) On purchase of raw material outside the state (Andhra Pradesh) the CST needs to be paid by the unit which is quite high. CST along with high transportation cost increases the cost of production of the utensils thereby reducing the profitability. Furthermore, if once the CST is paid , then it would be imposed regularly on the unit. The unit is supposed to pay CST, even if the unit is shut down for some time for any reasons.. Apart from CST, the unit has to pay VAT @ 2% to the State Govt. on sale which is also quite high. Shortage of Resources The production cost of aluminum utensils is quite high as there is a shortage of electricity and its supply is irregular. So the factory has to run on generators which increase the cost of production manifold. Also, Labor is very costly in Hyderabad as compared to the rest of the Andhra Pradesh.

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SWOT ANALYSIS
STRENGTHS Easy availability of raw material within in the state Low transportation costs because of location WEAKNESSES Negligence towards markets out of Andhra Pradesh. Regular power cuts. Negligence towards branding Weak R&D activities No innovation. new machines have been introduced Negligence towards new designs and models of utensils OPPORTUNITIES Potential in the markets outside the state Availability financing of cheap source of THREATS There is a threat from the State Govt. to relocate the unit 50 kms. far from the residential areas. By making circles the excise duty is to be paid. The CST is to be paid if raw material is bought from outside of Andhra Pradesh. Conclusions The process adopted by the unit is not highly technical, though some technicalities are observed for the manufacturing of utensils to control the weight of the units. The owners/partners do not accede in expanding the business and are satisfied with the current size of the firm. The unit has to pay CST if it purchases raw material from outside Andhra Pradesh which puts an extra burden and increases the cost of production. The unit faces an acute shortage of electricity which acts as another factor in increasing costs and reducing competitiveness. Finally, the unit is under immense pressure from the state government to relocate the unit far from its present location and the units future is quite uncertain unless some help is offered by the state government in this regard. National Productivity Council
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Manufacturing Unit 6: Wazirpur Industrial Area, Delhi Product category: Stainless steel utensils
About the Unit The unit is a 23 years old company engaged in the production of raw material for the manufacturing of utensils, cutlery and kitchen tools which is called patti-patta. The unit started working in the year 1986 taking a production target of 30 tons per month and progressed gradually to achieve till the above mentioned date a target of 300 tons per month. Thus the unit has increased its production by 10 times with in a short span of 23 years. This production level has been achieved due to the fact that the units working in the manufacturing of utensils, cutlery and kitchen tools have also increased by 8-9 times since 1986. The raw material for the manufacturing of patti-patta is purchased from the renowned steel manufacturing company which is in the form of long stainless steel sheets. These stainless steel sheets are further processed and cut into smaller pieces according to desired weight and size. Further through the process of Stainless Steel Pickling the patti-patta is made which is the real raw material for the manufacturing of utensils, cutlery and kitchen tools. A separate and parallel R& D section is assisting the different processing units. Unit Profile Total factory area Year of establishment Management executives Research and development staff Sales and marketing staff Productivity staff Quality control staff Quality standard Total annual turnover 72,000 sq. ft. 1986 10 3 8-10 35 4 ISO 9001-2000 Rs.900 Crore

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Products Unit offers creativity and art of craftsmanship for the raw material for the manufacturing of stainless Steel Cutlery, Kitchen Tools and Utensils.
Human Resource Management (Management, Employees, Incentives system etc.)

At present there are 60 employees working in the factory. The wages paid to the workers are as per norms of the factory act. The wages have gone up by 1.5 times in the past five years. There is no category of skilled labors in the factory. The raw hand labour is picked up, work is assigned to him and after learning the specified job the labour is called a skilled labour. There is no target fixed for any worker for the completion of job either on daily basis or on monthly basis. The routine work is being done by every worker. There is no special incentive provision for any worker except on the occasion of Holi/ Diwali a bonus is provided, equivalent to one months extra pay. Production and Turnover The production of patti- patta is 9-10 tonnes daily. There is no such target fixed for the production. The raw material is available easily and it is purchased from one of the leading steel manufacturing industry. The total cost of production on patti-patta comes out to be Rs. 18/- per kg excluding the cost of the raw material and the cost of patti-patta is Rs. 40/- per kg. while its cost was RS. 55/- in October 2008. Problem faced by the unit Environmental Regulation The patti-patta is manufactured through rolling process and in this process the pickling process is also involved. This combined process is called as Stainless Steel Pickling. During this process acid is evolved. This acid is neutralized by mixing alkali (caustic soda) in it. Now DELHI POLLUTION CONTROL COMMITTEE, Department of Environment, Govt. of NCT of Delhi has issued a notice saying, It is hereby directed that all such units, engaged in the activities falling under prohibited/ negative list shall stop their activities and relocate themselves outside Delhi on or before 6th February 2010, without fail. Failure to do so will invite strong regulatory action as per provision of Air (Prevention and control of Pollution) Act, 1981 and Water (Prevention& Control of Pollution) Act, 1974. If these manufacturing National Productivity Council
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units which are engaged in the production of patti-patta are closed then not only these units which are in the production of patti-patta will be affected but those units which are engaged in the manufacturing of stainless steel utensils, cutlery and kitchen tools will also be effected. Although the pollution created by the PICKLING process is neutralized by mixing alkali in it, but even then if the Government does not agree with it then the time period of minimum of two years may be given to these units and the alternate site may be allotted to the units. If this problem is not taken seriously, then the Indian market will be flooded with China made utensils, cutlery and kitchen tools as Indian products would be taken out of the market..

SWOT ANALYSIS
STRENGTHS Well educated and experienced WEAKNESSES Negligence toward domestic market Power cuts Customers negligence toward brand Price sensitiveness of the Indian with customer Environmental hazards quality products to Weak R&D

management Good infrastructure Not so strong marketing network Enhancing innovation Delivering customers Developing organization OPPORTUNITIES Huge potential in domestic market Availability financing Increasing demand in local market Align strategy for growth. Align and upgrade environment for future of cheap source of the best in class customer value

THREATS There is a threat of DELHI

POLLUTION

CONTROL

COMMITTEE notice for the shifting of the industry within a limited time period and without allotting any space for the industry.

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Conclusion Although the unit is a leading firm for the manufacturing of raw material for stainless steel utensils, cutlery and kitchen tools which is known as patta-patti (re-rolled steel), but there is no skilled labor used by the firm for any operation used for the manufacturing of patta-patti. Some of the processes involved for this production are highly technical like press work where weight and thickness of the patta-patti sheet is controlled. In this process also the firm is taking work from the unskilled labor. In the last 23 years the production of the firm has been increased about 10 times and like wise the production of the stainless steel utensils, cutlery and kitchen tools has increased about 10 times. The production wing is quite strong of the firm, but sale wing is quite poor from the administrative angle. There is no R&D wing in the unit on the marketing side. Due to notice issued by DELHI POLLUTION CONTROL COMMITTEE, Department of Environment, Govt. of NCT of Delhi there is a threat to these manufacturing units which are engaged in the production of patti-patta and may be closed on the basis of above notice. If this happens, then not only these units which are in the production of patti-patta (re-rolled steel) will be affected but those units which are engaged in the manufacturing of stainless steel utensils, cutlery and kitchen tools will also be affected.

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Manufacturing Unit 7: Firozabad, Uttar Pradesh Product category: Glassware


About the Unit The unit has been engaged in the manufacture of Doubled Walled Glass Refills (Glass Liners) for Vaccum Flasks since its inception in 1946. Manufacturing Unit 6is today the largest Manufacturer-Exporter of Glass Refills from India with a share of about 75% of India's export of this product. Under the leadership of its owners, who have long experience of over 4 decades in different spheres of glass production and under their management the unit thrives to be a forward looking and a market driven unit. Other interventions of the unit involves glass production for lighting industry and Table Ware, bangles, lead tube, bulb shells, soda lime tube and glass ware. The manufacturing plant is spread over 25000 sq. meters of land at Firozabad about 250 Kms away from New Delhi, India's capital and 40 Kms from Agra, City Of Taj. The plant has state-of-art glass refill production facilities including Tank Furnace, Silvering and also vaccuming facilities. The unit uses the original German 'Einedrucker Technology' which has been further refined over years of producing the glass refills consistent with continuously upgraded international standards. Unit Profile Total Factory Area Year of Establishment Management Executives Productivity Staff Quality standard Total Annual turn over Objective of the Unit Assurance to provide the best quality product 25000 sq. meters 1946 40 260 ISO 9001-2000 Rs.12 crore

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Quality Standards The unit employs a workforce of about 2500 people including technical and commercial staff. The unit is an 'equal opportunity employer' and uses healthy adult work force. Manufacturing Unit 6 recognizes that quality man power is the main asset of any unit. The unit is an ISO 9001-2000 Certified Unit. It follows the following Quality Standards & Inspection Procedures:1. The company uses a standard Glass Batch, which ensures consistent Glass Composition and percentage of vital parameters such as B2O3, Al2O3 and also Alkalinity. 2. The glass produced is absolutely free from Lead, Cadmium and other hazardous materials. 3. The test procedures and the products conform to EN 12546-1:2000 in addition to Indian Standard No. IS3702:1989. Human Resource Management The unit employs mainly daily wage labour and almost 100% of the labor is unskilled but experienced in this type of work. The unit complies with the minimum wage laws for making wage payments to its labor force. Problems faced by the unit Raw Material (Soda Ash and Cartelization) The main inputs for the final products of the unit are: glass broken, Silica, Soda ash and Natural Gas. Besides these, some chemicals are also used. E.g. Borax, Selenium etc. which are mainly imported from other countries. These inputs are mainly brought from other areas to the location of the unit, like silica is brought from Rajasthan, Soda ash brought from Gujarat (provided by 3 major companies in the field of Chemical viz. TATA chemicals Ltd., Saurashtra chemicals Ltd. and Gujarat chemicals ltd.). The unit has a problem of monopolistic behavior from the Soda ash producing in India. Natural gas is mainly used for the fuel requirements.

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Power Shortage Infrastructure is not a problem for the firm, i.e., it is moreover satisfied with the infrastructure arrangements around the unit. But firm does face problem of electricity shortage. Impact of Government Policies 1) Foreign sector: The firm has been a major exporter in this sector and has been an important forex earner for the country, but due to the global slowdown, the firm is facing a shortage in demand and thus shifting to domestic market to keep its growth intact. The firm complains of higher export taxes, inspection fees and most importantly procedural delays for hindering the exports. The firm demands ease of procedures for exporting the items, especially in these gloomy times if we have to stay competitive in the international markets. 2) Taxation: The firm is of the opinion that excise duties should be reformulated on the basis of compound taxation and there should be any limits as is the case now.

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SWOT ANALYSIS
STRENGTHS Reputation and goodwill in the market Strong marketing network Enhancing customer value with products to class WEAKNESS Continuous Power cuts Price sensitiveness of the Indian customer High price of soda ash as

innovation and design Delivering customers Developing organization No foreign competition in domestic market Huge market share of firm OPPORTUNITY Huge potential in the domestic market Align and upgrade environment for future Creating a bigger brand image may help the best in quality

compared to other competing countries Fall in demand due to global slowdown

THREATS Tough competition from China in the international market High cost of production as compared to competing countries like China Acute shortage of natural gas, the main fuel for the furnace Low labor productivity

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Findings The unit has progressed at a good pace and keeping its commitment of providing quality product at competitive prices. The unavailability of power supply, poor road infrastructure, transportation and port related problems hinder not only the growth of the firm but also affects competitiveness and efficiency of the firm. Soda ash is one of the important raw materials for the industry and the cartel formed by the 3 major companies providing this raw material reduces the cost competitiveness of the industry as compared to the competing countries. The unit faces several procedural delays in process of exporting its products, which can be detrimental for the growth of the industry especially in the times of global slowdown. Conclusion In the present globalized environment if a country wants to compete in both domestic and foreign market fronts then it has to play an important role to make its industry more efficient and competitive. The unit has progressed at a good pace in the past and keeps its commitment of providing quality product at competitive prices. But the high prices paid for important raw material like soda ash and natural gas reduce the competitiveness of the industry. Further, the procedural delays accompanied with high taxation for exports hinder not only the growth of the firm but also affecting competitiveness and efficiency of the firm. The production of chandeliers has been ceasing in Firozabad cluster due to availability of low cost Chinese products in the domestic as well as international markets. The unit perceives an overtake by Chinese companies in other glassware products as well if appropriate actions are not taken by the government. In the present competitive world to protect the domestic industry, government has to look at all these problems and help the industry as much as possible, so that the domestic industry can grow and compete in the world market.

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Manufacturing Unit 8: Ghaziabad, Uttar Pradesh Product Category: Glassware


About the Unit The unit was setup in 1974, at Uttar Pradesh and commenced manufacturing of glass containers in June 1976. The Unit manufactures Glass bottles and Jars of various sizes for liquor, soft drinks, food products and pharmaceuticals. In 1982 the unit underwent merger with another bigger unit and became a subsidiary unit under that. The annual turnover of the unit is around 100 crore. The unit is a medium scale enterprise with an annual turnover of around 100 crores. Objective of the Unit Consistently deliver enhanced value to its customer. Sales and Production More than 50% of the production of the unit is consumed for distilleries. Remaining about 50% is used for soft drink (Pepsi, Coke, etc.), Food Products and Pharmaceuticals. The unit produces all kinds of bottles and items made by glass both for domestic and foreign market. But unit produces mainly to meet the demand of domestic consumers and a small part goes to satisfy the demand of foreign customers. The unit produces 7-8 lakh bottles per day; depending on the demand and order size. The demand for the product that firm produce do vary with season. The sale and production of bottles increases by 20% in summer and rainy seasons. The unit mainly caters to corporate customers. Hindustan Sunglasses, Hindustan Sanitary ware, AGI, Somani, Gujarat Glass, etc. are other big players in the Glassware market. The consolidation process in the past reduces the number of firms for the glassware in the industry. The unit has no collaboration either with domestic or foreign entity. But takes technical help from outside for the designing purposes. Presently the unit is growing at good pace and has nearly a market share of 5% in the glassware industry. FDI was allowed in the glassware industry but Indian market situations did not suit the foreign players.

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Currently the core business of the firm is production of bottles mainly for corporate customers. To expand, the glassware industry requires huge investment. The unit has not been able to raise the required finance for the unit. This affects the productivity and competitiveness of the unit in the present scenario, but still the unit has managed to withstand the peer pressure with good market share in the glassware industry. Technological Capability The unit has two natural gas fire furnaces. There are five fully automatic I.S. Glass forming machines capable of manufacturing bottles and jars with the capacities ranging from 100ml to 1400ml. This division has installed micro process based computerized batch house. It has an automatic weighing and feeding systems to ensure quality glass. The in-house power generating capacity is sufficient to operate the plant in case the power supply from State Electricity Board fails. This unit receives continuous supply of natural gas from the Gas Authority of India Limited (GAIL). Supply Chain Inefficiency- A bottleneck The main inputs for the final products of the unit are: Silica, Lime-Soda, and Natural Gas. These inputs are mainly brought from other areas to the location of the unit, like silica is brought from Rajasthan and Allahabad and Soda bring from Gujarat, Soda-Ash is imported from Kenya. Silica is the main input for the final product of industry, and it is used near about 80 tonnes per day and 35000 tonnes annually. Silica shares about 5% of total cost and Soda part nearly 25% of total cost. Natural gas is mainly used for the burning purpose. All kinds of raw material cost near about 35% of total cost. The uploading of major input (Soda-Ash) for the unit from Kenya to the Nevashera port located in Gujarat, takes 15-30 days delay which is a major hindrance in supply chain. This problem leads to affect the cost of producing the final output in the firm. If this problem is solved then it leads to improve the productivity and efficiency of the firm to a large extent.

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Infrastructural Issues Infrastructure has not been a major problem for the firm. But firm has to manage with some lacuna in terms of transportation costs and water availability. The unit has to arrange drinking water from outside. The transportation costs are a major part of total cost. These transportation cost is borne by firm while bringing various inputs like soda-ash, silica, etc from other areas to factory location. The firm faces some problem at port while importing its important inputs. Stringent Labour Laws Stringent Labour laws causes problem for the firm. The labour availability has not been a problem with the unit rather it is the labour laws regarding the permanency of labour, which are affecting the unit. The unit used to employ all categories of labour viz. skilled, unskilled, workers, etc. The firm also employs contractual labour. These contractual labours are employed based on the work allocation criterion. Contractual workers comprise of about 2530% of total labour force in the firm. To improve the efficiency of the manufacturing unit follows the following rule: Total Wages= Fixed Wages + Incentives. So firm pays fixed wage upto some threshold level of output produce by the labour and pays some incentives if output exceed that threshold level. So workers total salary depends on output produce by him. This incentive system leads to improvement in output level of the firm. Government Intervention Required 1. Infrastructure: The erratic power cuts are a major problem in the smooth production. This is a major concern of the unit as it requires continuous power supply. 2. Labour Reforms: Although labour is available to firm, it is the permanency of labour according to old labour laws which are affecting the working of the unit. Thus, the firm is looking forward for labour reforms on the part of Government. To minimize the labour problems, the unit uses the contractual labour which solves this problem only to a limited extent. Thus to make the unit efficient and competitive the labour reforms should be made flexible. National Productivity Council
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3. Foreign sector: The firm is dependent for its key inputs on other foreign markets. Thus it needs help of government to foster its growth and competitiveness. Although unit is benefiting with the excise duty policy of the government on soda, which according to the firm is an important step taken by government to overcome backlash of slowdown of U.S., Japan etc and is also helping the unit in competing with imported foreign goods. The firm does not face much foreign competitor in the market for bottles. But it faces problems when importing its key raw material, like importing the soda-ash from Kenya, as firm quotes from one of its experience that it takes a long time in delivery and then reaching at the unit area. 4. Supply Chain Bottleneck: Higher cost of raw materials particularly soda-ash, which is a major input, according to the manufacturers, is a major factor contributing to higher cost of production. The manufacturers claim that the three major producers of soda-ash have cartelized the market which has also contributed to the rising costs. The uploading of major input (Soda-Ash) for the unit from Kenya to the Nhava Sheva port located in Gujarat, takes 15-30 days delay which is a major bottleneck in supply chain. This problem leads to affect the cost of producing the final output in the firm. If this problem is solved then it will improve the productivity and efficiency of the firm to a large extent. 5. Manufacturers also claim that government should ban the reuse of glass containers as it is not quite possible to decontaminate all types of glass containers and reuse them safely. They suggest that to take full advantage of Indias integration with the world economy the government should adopt uniform standards, which would pass not only in India, but also in the developed countries. They also suggest that in case the total ban on reuse of glass bottles is not immediately possible, then it the suggested to immediately prohibit re-use of bottles.

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SWOT ANALYSIS
STRENGTHS Well educated and experienced WEAKNESS Continuous Power cuts Price sensitiveness of the Indian customer Continuous labor problem Face problem in importing critical raw material at port (Soda-Ash) products to The unit is a part of bigger conglomerate the best in class and the fund

management Strong R&D Strong marketing network Enhancing customer value with innovation and design Delivering customers Developing organization Immunization to recession No foreign competition in domestic market especially for bottles. Huge market share of firm quality

allocation is insufficient Mainly concentrate on domestic market

OPPORTUNITY Increasing demand in international market Align and upgrade environment for future Strong brand of the parent firm. Mainly focus on corporate customer so still huge scope in domestic market as far as small customers is concerned.

THREATS Second usage of firms output hurting the firm FDI may affect the firm in future. Foreign competition Duty on Soda Ash which is a major raw material

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Conclusion The unit is progressing at a good pace and keeping its commitment of providing quality product at competitive prices. But the discontinuity of power supply and transportation problems at the Nhava Sheva port located in Maharashtra in importing its key imports hinders not only the growth of the firm but also affecting competitiveness and efficiency of the firm. The permanency of labour is another problem that firm is facing. To solve this problem the firm is looking towards the government for the labour reforms. In the present competitive world to protect the domestic industry government has to look at all these problems and help the industry as much as possible, so that the domestic industry can grow and compete in the world market.

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