(History of perfume industry)

1.1760 1760 - In 1760, in London, James Henry Creed founded the House of Creed. filtered, all by hand in the highest tradition of the founder, James Henry Creed. Creed,cologne,designer perfume, Olivier Creed,Perfume,womens perfume,James Henry Creed,Empress Eugnie,discounted perfume,fragrance,Country,French perfume, perfume industry,Jasmine,womens fragrances,shopping cart,originality,scents,Master Perfumer,the French. 2.1921 1921 - Coco Chanel revolutionised the perfume industry by being the first to make a mass market scent for every woman when she launched Chanel No5 in 1921. You can still spritz on some of that vintage glamour today with your own bottle, 46 for 50ml EDT at House of Fraser 3.1987 Feb 28, 1987 - When perfumed gloves came into fashion in the 16th century, the town gradually developed a separate perfume industry. ... The Provencal Art and History Museum, originally the 18th century home of Louise de Mirabeau, houses a fine collection of Provencal art. The 17th century Fragonard. 4.1988 Nov 25, 1988 - It is one of the 200 fragrance-related art objects currently on view in the "Scents of Time" exhibit at the Museum of Science and Industry. The exhibit traces the history and evolution of fragrance, connecting each phase with the social, political and cultural trends of the time. ... 5. 1991 Feb 17, 1991 - Written in collaboration with Patricia Bayer, the book includes chapters on Rene Lalique's life, the development of the perfume industry, the history of the Lalique company, and collecting tips. An appendix provides information on dating bottles by the signature .

6. 1999 Dec 9, 1999 - of newly fragrances remain on the shelf after a year of launching," says international director for Antonio PUIG perfumes, Eugeni Majo. cosmetics industry is a dynamic one. it's competitive and only companies that manage to create an product that differs from the rest will remain" 7. 2000 Jun 20, 2000 - Halifax's eight-year-old "No Scents" policy is creating a big stink in the perfume industry. Representatives from the American and Canadian perfume industry were in Halifax Tuesday to launch a counter attack ad campaign as a way of stopping the campaign from spreading. 8.2001 Nov 23, 2001 - hitherto unknown insights into the use of perfumes through the ages and learn that "the history of perfume is often intertwined with the history ... But, it was the Arabs who linked "the past and present of the perfume industry", says the portal. "The process of extracting oils from flowers. 9.2002 Apr 11, 2002 - Scented oils and perfumes were stored in elaborate and beautiful pots and jars throughout Egyptian history. ... "Never before has a series of exhibitions in Egypt and abroad been devoted to a single industry, which has resulted in such a wide range of artistic and utilitarian objects,"

10.2004 Sep 22, 2004 - It was a scent that changed the American position in the perfume industry. Women across this nation began to forsake all of the costly and well- ... She offered her vast store of perfume knowledge and its history with great generosity.

COMPANY PROFILE
SOMABHAI FULABHAI PATEL (SFP)
SFP Sons (India) Pvt. Ltd established in 1992 is one of the leading manufacturers of Perfumes and cosmetics in India. SFP is located in Special Economic Zone, Chennai and was Formerly known as S. F. Patel & Sons (India).SFP manufactures wide range of over 1000+ products under its own brands 'Ahsan', 'Tara', 'Taibah', 'Malaki', 'Salaam', 'Silent Valley' and 'Crazy Moments'. These products are widely available in more than 20 countries. Product range includes Attars (concentrated perfume oils), Spray Perfumes (EDT, EDP, colognes and body mists), Perfume Gels, Creams and Gels for Hair and body, Cleansing lotion, Shower Gels, Shampoos, Hair Oil and Talcum powders. SFP is a ISO 9001 certified company and is committed to manufacture quality products. All products manufactured are skin friendly and abide by all international standards laid down by governing bodies like IFRA, FDA et al. SFP factory is spread over 100,000 sq. ft area and employees over 400+ people. It houses a well equipped R & D laboratory and highly qualified team to develop and manufacture high quality products. It has a sound infrastructure and modern facilities which helps every activity and product of SFP fulfill its brand promise and mantra

BRINGING FRANGRANCE TO LIFE

SFP processes are managed and controlled through SAP. The SFP team is skilled, trained and equipped to meet and deliver all customer expectations. VISION AND MISSION

Company vision becomes a globally leading company in perfumes and cosmetics industry. Company mission, delivers the quality product with protection of environment and protect The health of customer. SFP aims at attaining, commanding market position in supply of perfumery and cosmetic product by meeting the needs and expectation of customers and enhancing their satisfaction.

MANAGEMENT
SFP was started by its present Managing Director Mr. Dinesh S. Patel an entrepreneur with

dream and vision to make SFP a globally leading Company in perfumes and Cosmetics industry. He believes hard work, commitment and passion combined can enrich every individual's life.

R & D Lab
SFP has well equipped laboratory and research section, equipped to carry out in-house development and testing required as per laid down standards. Latest GC, refract meters, SG meter, Ph meters, Viscometers and other Instruments are manned by trained personnel.SFP is committed to quality through its strict quality control methods. Using latest technology every component and product are tested as per international standards at all stages of manufacturing to ensure high quality perfumes and cosmetics.

BLENDING
SFP also blends some of its Own fragrances. It has 8 nos of blending tanks of capacity 1 ton with cooling lines. It has DM Water plant and a RO water plant. SFP has two tanks for alcohol storage which can hold 50000 liters.

COSMETIC MANUFACTURING
Cosmetic products manufacturing is done is well equipped modern facilities. This plant has oil phase vessel, water phase vessel and a main homogenizing vessel of capacity 1 ton. SFP also has 50 liter plant to cater to smaller needs

DISTILLATION
SFP also houses a unique and traditional perfume oil

extraction unit from natural ingredients. Here by distillation oils are extracted which are used in fragrance blends.

FILLING AND PACKING Production facilities are well laid down with separate buildings for Attars, Sprays, Creams and Gels, Hair oils and Talcum powder. A total of 12 production lines have a capacity to fill and pack 120,000 units every day per shift.

WAREHOUSE The newly constructed ware house has area of over 20000 sq. ft and is well arranged to monitor and move material with ease. All products are bar-coded for efficient identification. SFP is well connected by road, sea and air to have excellent supply chain.

TRAINING
SFP Training Centre provides trainings to all its employees on regular basis. The training is totally based on skill and personality development to drive individuals and the company forward.

SHOWROOM

The showroom within the factory premises displays a range of products. It also displays packaging material components. Here customers can select items of their choice for their markets.

QUALITY OBJECTIVES OF SFP On-time delivery of final product to customer. Zero level of non-conformity at In-process and final stage of the product. Zero level of customer complaint to enhance customer satisfaction.

QUALITY POLICY OF SFP SFP committed to the aim and objectives of the company to manufacture products that are satisfy customers needs and expectations. SFP shall implement the quality management system to meet agreed requirements to enhance customer satisfaction and improve its effectiveness continually. SFP commit to highest levels of integrity and professionalism in all aspect of our business.

Credentials of SFP Raad voor accreditatie, Netherland has licensed SFP Sons (India) Pvt. Ltd and listed in the bureaus register of licensees of Quality management system certification in respect of the products and services in accordance with ISO 9001:2008 and also ISO 14001: 2004 for Environment management system. SFP is a member of export promotion council.

 SFP has been recognized as one star export house having the certificate issued by the ministry of commerce & industry, government of India. In 2007 RAJIV GANDHI national quality award panel has awarded SFP with a Commendation certificate for quality standard of the company at all India level. SFP is a member with Essential oil association of India. SFP is register with IFRA and FDA.

FACILITIES AND TECHNOLOGY OF SFP Well planned perfume blending set up with the required vessels, tanks and all relevant accessories. Traditional fragrance extraction set up for manufacturing special attars. Well-equipped cosmetics manufacturing unit with boiler etc. D.M. water plant R.O. water plant. Well-equipped packaging section having bottles and tubes filing and wrapping machines. Well-equipped talc manufacturing unit.

 Hair oil unit with automatic filling, capping machines, shrink wrapping and labeling machine. Alcohol(perfumery grade) storage tanks Quality control laboratory with advanced GC machine and relevant testing apparatuses. Well-equipped in built R&D centre. Design and development department which consistently create packaging design which customers purpose and also innovates new designs and present to them. The company has warehouse having a large space and materials handling equipments and forklift. The plant has 12 filling lines and a capacity of 1, 20,000 bottles per shift. All the activities of company are done in the world class software SAP business 1.

The perfume industry in India has come of age. From a cottage industry it has become fullfledged industry in the last two decades. The industry is growing at 125 percent annually. The growth is attributed to an increase in disposable income. WITH GLOBALIZATION, liberalization and the IT revolution, living standards of the Indians have increased manifold. The demand for fashionable products has increased too. That is why; all global players are eyeing the subcontinent for business purpose. The illegal flow of lifestyle products confirm the great demand for these products in India. The affinity of the Indians for foreign goods also compels the indigenous manufacturers to tie-up with international brands to tap this segment of people. The fragrances industry is big business, very big business. It includes much more than retail sales of fragrances. Related industries such as chemical companies supply the chemicals and the fragrances are made from it. Most fragrances chemicals are synthesized from petroleum

products. Some companies formulate fragrances and flavours for other companies. Marketing and advertising are used to create and promote the image of a fragrance. The perfume industry, basically, was just a cottage industry some two decades ago. But now, due to the huge demand among the people, it has blossomed into a full-fledged industry. Recently, Alcome Perfumes and Cosmetics, declared a plan to set up a Rs. 100 crore green field perfume plant in and around Noida Special Economic Zone. The domestic perfume market is estimated to be worth Rs.300 crore and is growing at around 125 percent annually. The forecast is that it may grow at a rate of 200 percent in the coming years, with fast changing consumer behaviour and habits. Geneva-base International Fragrance association has estimated that the global perfume market is worth $ 40 billion, out of which the mass market has a 70 percent share. In this, India, China has a considerable share. With the growing demand for fragrance, the Indian perfume companies are planning to change their strategies by utilizing their resources mainly for the domestic market and a meager portion for exports. Apart from that these that these companies are also planning a multiple marketing and distribution strategy to foray into a market with huge potential. The potential is immense as the middle class is growing rapidly and disposable incomes are increasing.

LIMITATION OF STUDY

It consumes more time and requires lots of expenditure. More time is needed to do this study. Study is based on secondary data only. The quality of inventory is not compared in analysis. The analysis is based on figures present in the internal records only. The study is based on two year reports given by marketing and finance department that has its own limitation. Working environment didnt permit more involved way of collecting data.

FINDINGS

Company is maintaining zero safety stock it cause production loss. The inventory turnover is in decreasing order in 2008-09 it is 3, but in 2009-2010 it is 2.4. By ABC Analysis we can say that there is a little difference between A B & C class items so every product is important for company.

There is positive correlation between sales to inventory. The percentage of raw material from total inventory is 23.94% in 2009 and 19.73% at 2010. The percentage of finished goods, semi finished good, packaging material from total inventory is 34% ,5%,37% in 2009 but in 2010 40%, 4%, 34%. Companys aim to achieve more sale it may require huge amount of inventory in future. Company is concentrating on domestic market and first time they achieve the target of 10 crore, that is good sign of establishment of domestic market. Economic order quantity (EOQ) in year 2009 is 109.526 units EOQ for year 2010 is 320.76 units, it shows that company can place more orders at one time. There is good relationship between company and their distributors, vendors and sales executives.

SUGGESTIONS

There can be a system where in periodical review (twice in a month) of inventory could be carried out so that the inventory can be kept under control. There should be periodical review of movement of items so that any non moving items can be identified and suitable action can be done.

At present the company is maintaining zero safety stock for all items, if the safety stock is maintained for important items, delay in production can be eliminated and orders can be supplied in time which will result in a better credibility in both international and domestic market.

It has been predicted that if company is planning to achieve more sale it may require huge amount of inventory in future. So the company has to arrange capital to meet future requirement.

It is suggested that they can have close monitoring of receipts and issue for A class items in order to have control of inventory.

To increase the inventory turnover ratio by increasing the sales level and maintaining the required level of inventory.

To maintain the Re-order level, Min-stock level and Economic order quantity company should consider the demand of the product.

There should be proper communication between purchase and production department.

There is no communication from dispatch section to store department, about quantity wasted. Feedback about the quantity wasted will help the store department to forecast future requirements and to focus on minimum possible waste.

Improve the minimum value of product C up to 5%-8% in total sale value by increasing market level of these products. It helps to get min return on investment in these products as soon as possible.

There is one warehouse for keeping the finished good and packaging material and packaging material are not arranged in good manner so it should be in order wise.

CONCLUSION

Inventory control is exercise when you order an item. If you do a poor job then everything after is inventory correction GORDON GRAHAM

Inventory is the physical asset of a company that can create problem if there is shortage, while in production and also if its in excess even after production. Inventory is constantly changing as quantities are sold and replenished. Hence it can be understood that efficient inventory management can take the company to new heights and inefficient inventory management can ruin the company. Company is highly concentrated on domestic market, it increase the market level of company because trend of domestic market is changing. The study on Inventory management in SFP Sons (India) Pvt. Ltd about A BC analysis for items is predicting future inventory requirements etc. From the study it is predicted that future sales have to be achieved and inventory level have to be maintained. ABC Analysis was carried out to identify the fast moving and important items. The company has to periodically review the inventory to avoid production loss. The results of the study can be further extended for future research.

BIBLIOGRAPHY Financial Management- Theory And Practice- Prasanna Chandra Management Accounting- R.K. Sharma and Sashi. K. Gupta Financial Management I. M. Pandey Ninths Edition Financial Management S.C.Kuchhal MATERIAL MANAGEMENT BOOK BY RAJENDRA MISHRA OPERATION AND PRODUCTION PLANNING BOOK LOGISTICS MANAGEMENT BY K. SHRIDHARA BHAT MATERIAL MANAGEMENT BY S. D. APHALE PRODUCTION AND MATERIAL MANAGEMENT- P. SARVANAVEL ,S. SUMATHI
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