1

PART-A
I. INDUSTRY PROFILE

HISTORY OF PAINTS
The group of emulsions generally consisting of pigments suspended in a
liquid medium for use as decorative or protective coatings. made its earliest
appearance about 30,000 years ago. Cave dwellers used crude paints to leave behind
the graphic representations of their lives that even today decorate the walls of their
ancient rock dwellings.

The paint and coatings industry, however, had to wait for the Industrial
Revolution before it became a recognized element of the American national
economy. The first recorded paint mill in America was reportedly established in
Boston in 1700 by Thomas Child. A century and a half later, in 1867, D.R. Averill of
Ohio patented the first prepared or "ready mixed" paints in the United States.

In the mid-1880s, paint factories began springing up in population and

industrial centers across the nation. Mechanization was making the manufacturing
process accessible to a larger and less specialized group of entrepreneurs. The
weight of prepared paint makes it expensive to transport, so a decentralized structure
of small manufacturers in discrete markets dominated the industry until the mid-
1900s.

That structure still continues to some extent today with the significant
industry segment of small- to medium-sized paint manufacturers who serve limited
regional markets.

Besides mechanizing and professionalizing the paint industry, the Industrial

Revolution also created vast new markets for paints and coatings. Virtually every
product created on an assembly line -- from the Model T Ford to the latest-model
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television -- makes extensive use of paints and coatings to beautify, protect and
extend the life of the manufactured goods.

Many of today's paints and coatings may go unnoticed by the consumer, but
play immeasurably valuable roles in delivering high-quality foodstuffs, durable
goods, housing, furniture and thousands of other products to market. Total sales for
the industry were approximately $16.4 billion in 1997.

As soon as the impact and potential risks of various paint components have
been quantified, paint manufacturers take action. Historically, the industry readily
responded to environmental and health concerns by altering the chemistry of its
products to control risks. Paint manufacturers started replacing lead pigments in
some paints, for example, before World War II, when more affordable and safer
alternatives began appearing.

The Indian paint industry has been growing at an average rate of 13 per cent
over the last five years. However, the per capita paint consumption in India is only
1.2 to 1.4 litres. The industry is less than half the size of the Chinese market (by
volume) and about one fifth of the U.S. market (by volume). Even Sri Lanka and
Pakistan have higher per capita paint consumption.

The Indian market is dominated by decorative paints (architectural coatings

largely used in households) which constitute almost three-fourths of the market (by
value). The other large segments are automotive OEM paints, automotive refinish
paints, protective coatings and powder coatings.

There are many players in the Indian paint market: The top four companies,
Asian Paints, Berger, Kansai Nerolac and ICI (India) — constitute over 55 per cent
of the domestic market. In addition to these, there are over a thousand other
companies in both the organised and unorganised sectors. The unorganised sector
itself constitutes 25 to 30 per cent of the market.
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A number of foreign players have subsidiaries in India — Jotun (powder,

marine, and decorative), Akzo-Nobel (powder, protective and automotive refinish),
Nippon Paints (decorative), Choguku (marine), Dupont (automotive refinish) and
Becker (coil coatings). Others like Sher-win Williams are in the process of entering
India. As a result, all the leading international players in the decorative, automotive
OEM, and automotive refinish paint markets will be operating in India.

India also imports a small volume of specialty wood finishes (polyester,

polyurethane, water-based coatings) and special effect emulsions. The Indian paint
market has the potential to grow over the next decade at 15 to 20 per cent per annum
as the current per capita consumption is much lower than other developing countries
and less than half of China.

The low per capita paint consumption till recently can be linked to the large
number of kuccha and semi-pacca homes, low purchasing power, the small size of
homes, the long repainting cycle, and use of chuna and French polish (paint sub-
stitutes).

In the decorative segment, the next decade should see a value growth in the
region of 15 to 20 per cent per annum due to reduction in poverty levels, construc-
tion of new homes, higher inclination to spend, increasing decor-consciousness and
gradual replacement of chuna.

The automotive OEM segment too should grow at least at 15 per cent per
annum powered by the projected high growth in the automotive segment. Thus if the
Indian economy maintains it growth rate at the recent high levels, we should see at
least 15 per cent (by value) annual growth in the paint industry over the next five
years. However, the Indian market is in many ways different from other markets.
Some features unique to the Indian market are:
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The large number of paints shops or outlets (over 50,000). Unlike in most of
the developed world, there are large number of small paint and hardware shops that
cater to the local population. There are no company owned outlets or large retail
formats for ‘Home Improvement’. (Although some would be operational from 2007)

The distribution policy of Indian paint companies to directly cater to most of

these shops (over 25,000) unlike in other industries where companies operate
through ‘distributors’. (Each company has a large number of depots to service these
outlets and a large sales force for this purpose)

A large number of shops have automated/manual dealer tinting system’ (over

20,000 in operation, probably the highest for any country. (In contrast, there are only
about 7000 tinting systems in China for a market tow and a half times India’s size).

The high volumes of low cost distempers sold in India (around 2 lakh tones
per annum) at an average cost of Rs 35 a kg. (significantly lower priced than
anything sold elsewhere in the world).

The high percentage of solvent – based alkyd enamels sold in India. (These
have been largely replaced by water – based systems across the developed world).

The absence of the ‘DIY’ or do – it yourself market which constitutes

between 25 percent and 50 percent of the decorative markets in the West. (Indians
depend on the skilled painter largely on account of lower labour cost, higher surface
preparation necessary and an ‘inherent laziness’.) Hence the range of products sold
and the manner in which they are sold and used are all different in India.
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Brief History of Milk Paint

Paint has been used by mankind since before recorded history, first as
decoration, and much later as a protective coating. The oldest painted surfaces on
earth were colored with a form of milk paint. Cave drawings and paintings made
8,000 years ago, even as old as 20,000 years ago, were made with a simple
composition of milk, lime, and earth pigments. When King Tutankhamen's tomb was
opened in 1924, artifacts including models of boats, people, and furniture found
inside the burial chamber had been painted with milk paint.

The Green Revolution

After World War II, chemists working for major paint manufacturers began
developing new formulas for paints. Along with these developments came a
burgeoning awareness among American consumers that many of these developments
posed a growing health problem. The lead and mercury in the paint was highly toxic,
as were the many solvents (now called VOCs and HAPs), mildewcides, germicides,
and numerous other additives.

The paint industry has a bright feature with the revival of the Indian
economy and emphasis on construction activity. However, the campaign to educate
people, particularly in rural areas about the use of paint is necessary

Global Market Players

• Nippon
• Dulux

• Wattyl

Nippon
The Nippon 2007 WorldCon will be an exciting. event filled convention.
Appealing to fans from all over the world. it will have the familiar parts of a
worldcon: Multiple SF and fantasy programming streams, guests, Hugo awards,
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masquerade, dealers room, art show. and exhibits all with an emphasis on
participation. Nippon 2007 will be the first time the WorldCon is held in Japan. The
combination of Japanese innovation and WorldCon tradition will make this a truly
unforgettable event.

The city of yokohama also beckons with its mix of modern and traditional
attractions .shops and restaurants. all accessible by efficient public transportation.

As this both a worldcon and a national convention, program items will be

held in either English or Japanese. With simultaneous translation provided for major
events. Traditional worldcon events like the Hugo awards will be run in English. But
with translation into Japanese. the Japanese national convention’s prestigious seiun
awards will be held in Japanese , with English translation.

Dulux History
Dulux has been involved with the manufacture and marketing of paint and
related systems in Australia since 1918 and is the largest manufacturer of quality
paint products in Australia.

Dulux Today
Dulux is an orica business orica is an Australian company with operations
around the globe. It manufactures and supplies industrial and specialty chemicals
agriculture chemicals and fertilisers, commercial explosives and mining chemicals,
as well as consumer products.

Dulux Australia is a part of the orica consumer products business which

consists of Dulux powder coatings. Selleys. Yates and wood care products. Dulux is
Australia’s largest manufacturer of surface coatings including the Dulux, Berger,
British paints, levene, and Acratex and walpamur brands.
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Wattyl
Is a paint and surface coatings company that produces a broad range of
paints, varnishes lacquers and special purpose protective coatings. Our products are
used by Individuals, contract painters and industrial customers.

With operations in Australia and New Zealand, wattyl employs over 2000
people. The company’s origins date back to 1915 where, in an Australian backyard,
H R Walters developed a treatment for reviving French-polished furniture. This
innovative product, known as ‘crystal veneer’ became an immediate success and laid
the foundation of wattyl’s future success.

Export Performance
According to sources, MPVL, which has started production of indelible ink,
has ordered for more raw material as the requirement has shot up this time round.
MPVL also supplies the ink for south Africa. The elections of which were recently
held. And other countries where the elections are slated at the same time.

Future Out Look

The paint industry has a bright future. The industry has progressed well and
is likely to be influenced by the changing global scenario and technologies. New
innovative products will characterise future development.
The Rs. 7740 – crore in Indian paint industry is estimated to have grown to
Rs 8200 crore in 2006. primarily driven by the decorative paints segment of the back
of increased consumer demand.

Further, to boost exports, the minister of commerce and industry Kamal Nath
while announcing the sops given to the trade and industry in the annual supplement
to foreign trade policy on april 19-2007 stated that exporters should make optimum
use of the scheme focus market. Where in 16 new countries including ten former
CIS countries will be added. The scheme allows duty credit facility at 2.5% of the
free – on – Board value of exports to the notified countries under the scheme.
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II. COMPANY PROFILE

2.1 BACKGROUND AND INCEPTION OF THE COMPANY

"Mysore Paints and Varnish" is the new name for "Mysore Lac and Paints
Works Ltd", "Mysore Lac and Paint Works Ltd.,", was established during 1937
under Late King Nalwadi Krishnaraja Wodeyar. The prince of Mysore province.

The King Nalwadi Krishnaraja Wodeyar established this factory to solve the
unemployment problem for the Mysoreans and for effective utilization of the natural
resources. The ‘Lac’ named object was used for the manufacturing of sealing
waxes. The companies paints were used to manufacture and supplied to the Govt.
departments and also paints supplied to military department for war tanks during the
period of wars.

The Mysore Lac and Paint Works Ltd., was converted into Govt. of Mysore
undertaking during 1947 as one of the public sector. Undertaking, Now it is one
among the prominent "A Govt. of Karnataka undertaking". Then the company name
was renamed from "Mysore Lac and Paint Work Ltd. to Mysore paints and varnish
ltd., on 30th May 1989, by registered of Companies in Bangalore at Karnataka
certificate is issued pursuant to section 23(1) of the Indian companies Act, 1956.

2.2 NATURE OF THE BUSINESS CARRIED

The company is manufacturing and suppling of Decorative coatings,
Industrial Paints, wood polishes, primers, varnishs and thinners. At present, the
company is meeting the requirements of all the Govt. Departments, Central Govt.
Private Industries and the various dealers.

The company is having its registered office at Mysore, 140 kms away from
IT capital of India, i.e. Bangalore city.
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MPVL Indelible " Ink" is having proven track record and support for
Democratic elections not only in India but also worldwide since 1962.

2.3 VISION, MISSION AND QUALITY POLICY

Vision
• To be the one stop shop firm for all types of varnish and paints.
• To be the prime sources for Paints and Varnish.
• Applied Research and Development capabilities to meet product
engineering and cost reduction.
• To achieve excellent rating from all customers respect to product delivery
and service.
• To be Globally preferred supplier.

Mission
“This company being chemical industry has taken adequate precaution to
ensure that exhausts. And chemical effluents are subjected to proper treatment
before discharging them into the river Kaveri”

Quality Policy
Mysore Paints and Varnish Ltd., is aiming to be the product quality leader in
the market. Mysore paints and varnish Ltd., premium quality or premium price
strategy has earned it a consistently higher than average rate of return in its industry.
• Quality awareness in all employees.
• Quality products with quality service to all customers.
• Co-ordination in all departments to serve customer, intime everytime.
• Quality maintenance and improvements throughout.
• Productivity through effective cost control mechanism.
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2.4 PRODUCT PROFILE

The company is manufacturing and Supply of Decorative coatings, Industrial
Paints, wood polishes, primers, varnishs and thinners. At present, the company is
meeting the requirements of all the Govt. Departments, , Central Govt. Private
Industries and the various dealers.

Decorative Coatings
 Mylac Synthetic Enamels
 Brindavan Synthetic Enamels
 Mysolin Acrylic Washable Distemper
 Mycem Cement Paint
 Brindavan Powdered Distemper

Industrial Coatings
 Epaxy Paints
 Chlorub & Chemical Resistant Paints
 Varnishes
 Aluminium Paints
 Bituminous Paints
 Other Anti Corrosive Paints
 Zinc Rich Primer & Coal Tar Epaxy Paints

Primers
 Wood & Cement Primers
 Red Oxide Steel Primer
 Zinc Chromate Redoxide & Yellow Primer

Wood polishes
 Brindavan Alchoholic Polishes
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 Elephant Non-Alchoholic Polishes

Specialties
 Indelible Ink (Vote’s Ink)
 Road Marking Paints
 Aluminium Paste
 Black Board Paints
 Tioxide Stiff Paste
 Knifing Paste Filler
 Sealing Waxes

2.5 AREA OF OPERATION

Regional level operations
There are six depots located at the following places
• Mysore
• Bangalore
• Shimoga
• Hubli
• Madurai
Own Distributions at Kolar, Davanagere and Chennai who deals on
Commission Basis.

Distribution Network
The company uses both direct and indirect channels of distribution. The
direct channel used is Company to Industries and Government.

Departments
The Indirect Channels used are:
• One way channel
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• Company -to-Agents -to- Consumers .Two way channel

• Company -to- Agents -to- Dealers -to- Consumers

Customers
The customers include government departments like PWD., KEB.,
Educational institutions, hospitals, corporations, TQ offices etc., and public
undertaking companies viz., N.G.E.F., B.E.M.L., K.S.R.T.C. and others.

Export Operations
The company's contribution to the national well being by earning precious
foreign exchange through the export of its products to different countries. The
company entered the export market through an order for indelible ink from
phillipines during 1977. Soon orders started to flow different and widely countries
like Nigeria, Ghana, Sudan, Papua, New Guinea, Sydney, Fiji Islands, Turkey, Nepal
and Bangladesh.

2.6 OWNERSHIP PATTERN

Mysore paints and varnish limited 92% of the shares will be held by
Government. Remaining 8% will be held by General public.
Sri MV. Ravi SHANKAR, Chairman.
Sri MV. Hemanth Kumar. Managing Director.

Directors
The company’s managed by the seven board of directors. Majority of
directors are nominees of government of Karnataka.

Bankers
State bank of Mysore
Market branch of Mysore
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2.7 COMPETITORS INFORMATION

The competitors are
• Asian Paints
• Nerolac Paints
• Berger paints
• Jenson and Nicholson
• Agsar Paints

Asian Paints
The Asian Paints group ranks among the top ten decorative coatings
companies in the world today, with a turnover of Rs 30.2 billion (around USD 680
million). It is also the fourth largest paint company in Asia

Asian Paints is India's largest paint company and ranks among the top ten
decorative coatings companies in the world today, with a turnover of Rs.22.6 billion
(around USD 513 million). The company has an enviable reputation in the corporate
world for professionalism, fast track growth, and building shareholder equity. Asian
Paints operates in 23 countries and has 29 paint manufacturing facilities in the world
servicing consumers in over 65 countries. Besides Asian Paints, the group operates
around the world through its subsidiaries Berger International Limited, Apco
Coatings and SCIB Chemicals.

Forbes Global magazine USA ranked Asian Paints among the 200 Best Small
Companies in the World for 2002 and 2003 and presented the 'Best under a Billion'
award, to the company. Asian Paints is the only paint company in the world to
receive this recognition.
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Nerolac Paints
At Kansai Nerolac, we stand by this. The success of Kansai Nerolac has
hinged on this philosophy since 1920, and being the second largest paint company in
India is the rightful tribute to its people's commitment and dedication.
Today, we are the second largest paint company and a recognized leader in
our chosen fields. The company was adjudged the fastest growing paint company in
the organized sector, not once but thrice-in consecutive years

Nerolac’s strength of wide spread distribution network is its right arm in

generating sales revenue from all parts of India. Nerolac has a wide distribution
network of over 11,000 dealers.

We have eight Sales Divisions and each division has depots to take care of
local needs. In all we have 66 depots.

Berger Paints
The Company was incorporated on 17 December, 1923, in the state of West
Bengal as Hadfields (India) Limited. The name of the Company was changed to
British Paints (India) Ltd. on acquisition of the Company by British Paints
(Holdings), U.K in 1947.

The Company is an existing profit making company having an uninterrupted

dividend record since 1981. The Company is presently engaged in the manufacture
and sale of paints, varnishes and enamels and powder coatings. The erstwhile
Rajdoot Paints Limited was merged with the Company effective 1 October, 1998
and the erstwhile Berger Auto & Industrial Coatings Limited was merged with the
Company effective 1 April, 2004. The Company has an extensive distribution
network consisting of depots located all over the country and over 10000 dealers.
Agsar Paints Pvt. Ltd. is the vanguard company of the Agsar group, a diversified,
multi-crore, business conglomerate. Agsar was founded in Tuticorin in 1964 by a
group of enthusiastic brothers.
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Agsar Paints
Agsar began its journey with manufacturing of chemicals for the match
industry. After a decade of growth and success, in 1974, Agsar started its Paints
division and hasn't looked back ever since!

In the last 3 decades, Agsar Paints has steadily consolidated its position and
grown rapidly all over South India. Agsar is a house-hold name today - with
branches in the main cities of South India - including Chennai, Coimbatore,
Bangalore and Kochi.

Other group companies of Agsar include Agsar Chemicals, Agsar Match

Industry, Agsar Mineral Industry and Tuticorin Trading Company.

Jenson and Nicholson

Jenson & Nicholson, a leading paint company in the country today was
established in the year 1922. It has a country wide presence with 33 branches and
stock points across the country and manufacturing plants at Naihati (near Calcutta),
Sikandrabad (near Delhi) and Panvel (near Mumbai). The company reinvented itself
as a completely Indian company in 1973 when the foreign holding was bought over
by Mr. S. P. Sinha an industrialist with interest in cement and hotels. Jenson &
Nicholson manufactures almost every type of paint for the decorative and industrial
customer.

2.8 INFRASTRUCTURAL FACILITIES

The company is well equipped with all the basic as will as advanced
facilities. Which help the good work environment of company. As well as the
welfare of employees.
• First aid facilities.
• Hospital facilities.
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• Vehicle parking facilities.

• Planned building.
• Good interiors facilities.
• Advanced machinery

2.9 ACHIEVEMENTS
1. This is the only company supplying indelible ink to the democratic countries
in the world.
2. An ISO 900/2000 accredited company govt of Karnataka undertaking.
3. Payment of 30% constant dividend to share holders since from 3 years.

2.10 WORK FLOW MODEL

All paints manufactured by the Mysore paint & varnish company are
produced by traditional means, grinding pigment into the appropriate binder on
granite slabs, scraping the resulting paste through a screen into a container, ready for
thinning. By this archaic method the pigment remains more angular and the
manufacturer is better able to judge the amount of oil and grinding required and
avoids spoiling the appearance of the colour. For all our paints we take great care in
the procurement and processing of the materials we use to ensure that all our
products meet traditional standards and will stand the test of time. The life of paint
being that of its binder, we use only pressed, settled & filtered linseed oil in our
paints and our lime wash is based on our own traditional, pit- slaked, ‘high-calcium
lime putty matured in our vats- both processes take many months.

The first stage in traditional paint manufacture is the selection of appropriate

pigments to achieve the specific colour and texture required. Each pigment reflects
light in a different way and the shape and size of each particle and its ratio volume,
produces a different effect and appearance. where and when a match to a historic
colour and paint is required (for restoration after fire or flood damage for example)
we collect and investigate samples to assess the original pigments particle sizes,
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shapes and volume as a proportion of the whole, as well as the binder. The sample is
first examined by microscope to judge the pigments, characteristics on a
comparative basis. Chemical tests are applied for confirmation. Occasionally
samples have to be sent away for more advanced testing in specialist laboratories.
by applying our experience and knowledge of history and tradition to this
information, we can replicate any historic colour, texture and advise on repair or
restoration of period decorative schemes.

The second stage is the selection of the binder. For oil paints for interior use,
we use walnut oil but for most other traditional paints, the best linseed oil is
generally used. For distemper we generally use rabbit and hare skin glue. For lime
wash we produce our own tallow to add water -resistance out doors and lactic case
in to increase elasticity and permeability for indoor use .if a gloss finish is ordered
we make our own mixing varnish and boil linseed oil in the traditional way.

2.11 FUTURE GROWTH AND PROSPECTS

A new variety of paints based on modern technology like the coil coating
radiation cured coating, water borne coating, high solid coating etc., need to be
developed sector only in India. The government of India allows expansion of the
organized sector only in areas of manufacture based on new technology.

Higher assets utilization across plant location and taking steps to optimize
use of idle physical infrastructure assets and enriched product mix for higher return
for existing assets.

Cost control efforts including better logistics, higher operating efficiencies

and improved working capital management.

The paint trade in India has assumed a competitive nature, with a large
number of units both in the small-scale sector and in the organized sector, competing
with each other to sell their goods.
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PART - B
III. McKINSEY’S 7-S FRAME WORK

McKinsey’s company a very well known management consultancy in US,

developed the McKinsey’s framework. According to them in a company there are
seven elements, which lead to the success of the company. The first three elements
termed as the hardware of success includes strategies, system and structure. The
next four elements are style, staff, skills and shared values are considered as the
software of success. Fig. 3.1 shows McKinsey 7-S model.

3.1 STRUCTURE
“The organization chart & associated information that shows who reports to
whom and how tasks are both dividend up and integrated”.

Organization structure forms the backbone of an organization. It is the

structure for carrying out the function of planning, decision-making, control and
communication. Organization structure is the basic framework to designate
responsibilities and functions. It is in fact the only system that strengthens the
organization and bestows on in the level of authority and responsibility. Fig. 3.2
shows organization structure.

Functions of HRD department

Mysore paints & varnish limited has a separate HR Department, which looks
in to the daily administration and also in to the specific tasks of the company; it is
the Bridge between the production, employees, management and the outside world.
This department is concerned with implementation of the plans, with the welfare of
the plant, with the industrial relations and above all safety and security of the plant
and the work force is its prime concerns.
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• Recruitment and selection for the organization vacancies through various

external and internal sources.
• Industrial relations and labour/union related activities. Welfare and related
activities.
• Time and record keeping of the employees on the working days of the
organization.
• Organizing and conducting training to all staff and workers.

Functions of Quality Control Department

This department is concerned with control and maintenance of required
quality in products.
• Ensures quality of incoming materials.
• Verifies quality of final product before dispatch.
• To prepare and maintain specification for incoming materials and final
inspection respectively.
• Analyse customer complaints and initiate preventive action.

Functions of Marketing Department

Marketing is a comprehensive term and it includes all resources and set of
activities necessary to direct and facilitated the flow of goods and receive from the
producer to consumer in the process of distance human efforts finance and
management institute are the primary resources of marketing. The terms activities
which more significant in marketing.
• Identifies potential business opportunities and develop new customer.
• Follow up activities in relation to sales/orders including collection of sale
proceeds.
• To supply the finished good for sale to the customers at demanded period
with appropriate channel of the distribution.
• Reviews pending orders and anticipated sales.
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• Maintain records of customer feed back/attending to after sales.

• Plan production schedule on monthly basis.

Functions of Material Department

Material management department is responsible for the co-ordination of
planning, purchasing and moving, storing and control of material in an optimum
manner so as to provide a pre- decided service to customer at minimum cost.
• Controlling of all stores functions and its maintenance
• Plan and procure materials to meet specified requirements.
• Maintain minimum stock level for effective operation.
• Ensuring procurement of materials only from approved suppliers.

Functions of Production Department

Production department perform the function of producing finished goods
from the basic raw materials. The manufacturing is headed by a group head whose
main objective is to plan, execute, co-ordinate and control all production activities
with available resources, inputs, equipment and facilities.
• Improving volume of production
• Reducing rejection rate
• Controlling idle machine and manpower hours
• Eliminating accidents
• Total quality management
• Minimizing re-work rate
• Updating processes & procedures
• Minimizing inventory and achieving better yields
• Efficient training and team building
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Functions of Finance Department

The main activity of the Finance department is to keep all the accounts of the
Financial matters it is responsible for maintaining up to date accounts
• To maintain accurate and up to date information regarding the financial
conditions of the company.
• To maintain transparency in making their financial statements.
• To plan and manage working capital, fixed assets.
• To reduce financial expenses and assist in improving the profitability.
• To handle various tax matters effectively so as to take benefits provided as
per the laws.

3.2 SKILLS
“An organization’s dominant capabilities and competencies”.

Managerial Skills
Management skills identify those abilities or behaviour that are crucial to
success in a managerial position.

Conceptual Skills
A manager’s mental ability to co-ordinate all of the organization’s interests &
activities. the ability to comprehend abstract or general ideas and apply them to
specific situations.

Inter- Personal Skills

A manager’s ability to work with, understand, mentor and motivate others
both individually and in groups the ability to understand, motivate and get along
with other people.
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Technical Skills
The manager’s ability to use the tools, procedures and techniques of a
specialized field, the ability to use specific knowledge, methods and techniques in
performing work.

Training
The following training are conducted to the Employees the main training
given is on the job training. The other training are
• Induction training
• Need based training
• Core training like personality development soft skills etc

On the Job Training

The job instruction training method is a four step instructional process
involving preparation, presentation performance. Tryout and follow up. It is used
primarily to teach worker how to do their current jobs, a trainer supervisor or to
worker acts as the coach. The four steps followed in the job instruction training
methods are
1. The trainee receives over views of the jobs its purpose and its desired
outcomes with a clear focus on the relevance of training.
2. The trainer demonstrates the job to give the employees a model to copy the
training however a right way to handle the job.
3. Next the employees is permitted to copy the trainers way demonstrations by
the trainer and practice by the trainer are repeated until the trainer masters
the right way to handle the job
4. Finally the employee does the job independently with out supervision.

Employee Motivation and Empowerment

Following are the welfare schemes provided with a view to motivate and
empower employees of Mysore paints and varnish ltd.,
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• Suggestion scheme
• Welfare scheme
• Incentive scheme
• Employee satisfaction survey
• Statutory and regulatory compliance

3.3 STYLE
Style refers to how managers collectively spend their time and attention and
how they use symbolic behaviour. How management acts is more important than
what management says. It also refers to the style of working reporting relationship.

Top Level Management

It consists of chairman, chief executive officer etc. In Mysore paints &
varnish limited. Top management has the ultimate level of authorities. Since they
are responsible for taking major decision regarding the organization.

Middle Level Management

Middle management consists of departmental heads and other executive
officers attached to the different department. Their level of management is
responsible for implementing the policies and plans decided by the top management.

Lower Level Management

Lower level management is also called as “supervisory management”
consists of senior supervisors, intermediate supervisors and frontline supervisors.

Participative Style
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Mysore paints and varnish ltd., follow participative style. Instruction flows
from top management to the end worker and vice versa. There is participation of
middle management as well as lower level management in decision making. The top
management takes the strategic major decisions:

 Formulating the new plans for up gradation of technology.

 Formulating the good communication among the staff members.
 Plan on new investment.
 Decision about selection of department heads etc.

3.4 STRATEGIES
Strategy is a coherent set of actions aimed at gaining a suitable advantage
over competition, improving position and allocating resources.

Pricing Strategy
A price is an important element in the Marketing mix, Right price can be
determined through pricing research and by adopting the test marketing techniques.
Arrival at the right selling price is essential in a sound marketing mix.

The basic pricing policy of the concern is based on the demand for the
product, acceptance of the product, prevailing prices of the competitors and existing
market conditions. Based on such sound marketing study, this concern has its price
fluctuation and fixation at Market value plus or pricing above the market.

The sales above the market prices under free competition are profitability
only when the product is distinctive, unique and it has a prestige or status in the
market. The customer is inclined to put a together a greater value on the product if
the package is very good and if it is well known. Price of every product is associated
with value quality, durability, performance, service, counter sale and many other
 25

attributes. All these factors have led the concern to select a market plus pricing
policy.

3.5 SYSTEM
The flow of activities involved in the daily operation of a business, including
its core processes and its support systems. Systems in the 7’s framework refer to all
the rules, regulations and procedures, both formal and informal that compliments the
organization structure.

Training System
A final consideration is where the training and development programme is to
be conducted. Actually, the decision comes down to the following choices;
• At the job itself.
• On the site but not on the job-for examples, in a training room in the
company.
• Off the site, such as in a university or college classroom, hotel or a
conference centres.

Performance Appraisal System

• Determination of specific skills and abilities required for the desired
performance in the job for which training may be required now and for the
foreseeable future.
• Assessing the abilities possessed by employees or potential employees as
related to the job or occupation.
• From the information obtained in the previous steps-determining precise
training requirement for individuals and groups.
• Assessing the available training resources.
• Directing and evaluating the training programme in operation.
• Planning of detailed programmes to develop the required skills.
 26

• Evaluation of the results of training through measurement of post-training

job performance.

3.6 STAFF
Duties and Responsibilities
Board of Directors
The Business of the company is managed by the Board of Directors.

Chairman
He is the chairman to the board of directors exercise such powers as are
confined on him by the board from time to time.

Managing Director
• He is a chief executive officer of the company. He is responsible for
formulating the overall policies and goals of the company
• He is the responsible for conducting management review meeting to ensure
effectiveness of quality system.
• Setting up the standards, coordination and reviewing with all the department
heads.

Manager-HRD
• Responsible for all personnel functions including attendance, salary, time
office security, etc.
• To maintain employee records.
• Organizing and conducting training to all staff and workers.
• To maintain the records of training and appraisal of all the employees.
• Legal matters pertaining to labour cases.
• Liasoning.
 27

Manager - Marketing
• Coordinates all functions relating to marketing.
• Follow up activities in relation to sales/orders including collection of sale
proceeds.
• To order corrective and preventive action.
• Reviews pending orders and anticipated sales.
• Legal matters connected to marketing.

Manager - Materials
• Maintain minimum stock level for effective operation.
• Procurement of materials at competitive price.
• Supplier identification development and evaluation based on their quality,
supply schedule and price.
• Return of rejected materials to supplier.
• Controlling of all stores functions and its maintenance.

Manager - Production
• He has the responsibility of ensuring production on time within budget and
while optimally using all resources to meet the set targeted and quality
parameters.
• Ensure deployment of trained personal for various operations.
• Provide adequate work instruction to cover every operation.
• Co-ordinate all activities upto dispatches.

Manager - Quality Control

• Calibration of testing and measuring instruments.
• Maintainance and upkeep of inspection and test records.
• Analyse customer complaints and initiate preventive action.
• Verifies quality of final product before dispatch.
 28

Manager - Finance
• To plan and manage working capital, fixed assets.
• To monitor and assist other departments in financial planning and control.
• To reduce financial expenses and assist in improving the profitability.
• To handle various tax matters effectively so as to take the benefits provided
as per the laws.

3.7 SHARED VALUES

A shared value refers to the set of values and aspirations that go behind the
formal statement of company objective.

Integrity
Mysore paints must conduct their business fairly will honesty and
transparency.

Leading Change
Mysore paints aims to be the organization always leading change.

Respect for the Individual

At Mysore paints all are treated equal and there is respect for every
individual especially elders.
 29

PART-C
IV. SWOT ANALYSIS

Business based upon the SWOT Analysis. This analysis is an excellent

technique for strategic planning. Business firms undertake SWOT Analysis to
understand the external and internal environment. SWOT, which is the acronym for
strengths, weaknesses, opportunities and threats, it also known as WOTS-Up
analysis.

4.1 STRENGTHS
♦ The company got the ISO certificate for producing quality products.
♦ The company Research and development function focuses continuously
on profession and its products engineering and application research
laboratory.
♦ High quality products with lower cost
♦ Production through advanced Technology which minimizes the cost.
♦ Huge demand for the products in the abroad
♦ Single manufacturer of indelible inks (voter’s ink)

4.2 WEAKNESS
♦ More competitors are entering to the market due to liberalization and
globalization policies.
♦ Fail to create awareness about company products in the market.
♦ Less promotional programs to increase and create awareness about the
products

4.3 OPPORTUNITIES
♦ Create the demand for product through investing more in product
promotional activities.
 30

♦ Development in construction of buildings creates demand for products

♦ Availability of labour at less cost
♦ Product innovation
♦ To capture market and increase their markets share
♦ The company has more demand for products
♦ Development of more product research and development activities
♦ To open the new branches in interior part of the company/states

4.4 THREATS
♦ Fast changing market condition
♦ High competition by capital rich MNC’s
♦ Slow growth rate in profit expected
♦ Poor marketing strategy adopted
♦ Competitor’s coming with similar products
 31

PART – D
SUMMARY OF ANNUAL REPORT OF THE MYSORE
PAINTS AND VARNISH LIMITED

5.1 SUMMARY OF BALANCE SHEET AND PROFIT AND LOSS ACCOUNT

Summary of balance sheet of Mysore paints & varnish Ltd, for the year
ended 31-3-2007 & 31-03-2006.

The balance sheet is to taken at Rs. 109849533 for the year ended 31-03-
2007 & it was Rs.120589983 in 31-3-2006. The total Asset of the company includes
fixed assets, which were Rs. 1476282 in 2007 & Rs. 1663568 in 2006. The assets of
the company including inventories sundry debtors cash & bank balance loans &
advances etc is Rs. 144933994 in 2007 & it was 157773034 in 2006.

The liability side of the balance shows that the shareholders fund & reserves
& surplus is Rs. 105299008 in 2007 & it was Rs.120589983 in 2006. secured loan
is Rs. 00 in 2007 & 18351052 in 2006.

PROFIT AND LOSS ACCOUNT

The companies total income for the year ended 2007 is Rs.119590499 & it
was Rs.122788648 in 2006. The companies’ total expenditure is Rs. 12627934 in
2007. And it was 17188358 in 2006. So the company is profit is Rs. 48684121 in
2007 & it was Rs.42373519 in 2006. So the earning per share is Rs is 12 in 2007 &
it was 16 Rs in 2006.
Table shows balance sheet of the company and profit and loss Account for
the year ended 31st March, 2007
 32

Balance Sheet as at 31st March, 2007

PARTICULARS Sch As at 31.03.2007 As 31.03.2006
No Rs. Rs. Rs. Rs.
SOURCES OF FUNDS
Shareholder’s Funds
Share Capital 1 10,365,500 10,365.500
Reserves and Surplus 2 99,484,033 109,849,533 91,873,431 102,238,931
Loan Funds
Secured Loans 3 0 18,351,052
Total 109,849,533 120,589,983
II.APPLICATION OF
FUNDS
Fixed Assets
Gross Block 5 12,437,246 12,431,586
Less: Depreciation till 10,960,964 10,768,018
date
1,476,282 1,663,568
Net Block:
Current Assets, Loans
& Advances:
Inventories 6 8,559,470 13,375,796
Sundry Debtors 7 26,591,078 31,722,831
Cash & Bank Balance 8 82,928,691 81,913,933
Interest Accrued 1,198,568 4,160,857
Loans & Advances 9 25,118,817 26,249,417
Deferred Tax Assets 4 537,370 350,200
Total Current Assets 144,933,994 157,773,034
Less: Current Liabilities
& Provisions:
Current Liabilities 10 12,464,142 17,325,671
Provisions 11 27,170,844 24,846,150
39,634,986 42,171,821
Net Current Assets 105,299,008 115,601,213
Miscellaneous Expenses
Deferred Revenue 3,074,243 3,325,202
Expenditure
Total 109,849,533 120,589,983
 33

Profit and Loss Account for the Year Ended On 31st March, 2007

PARTICULARS Sch 31.03.2007 31.03.2006

INCOME:
Turnover (Gross) 130,566,916 125,167,095
Less: Excise Duty 16,667,605 9,681,850
Turnover (Net) 113,899,311 115,485,245
Other Income 12 6,962,957 5,966,086
Increase (Decrease) in Stock 13 (1,271,769) 1,337,317
Total (A)) 119,590,499 122,788,648
EXPENDITURE:
Raw Materials & Other Items Consumed 14 76,439,465 72,013,510
Manufacturing Expenses 15 7,229,071 7,961,297
Trade Expenses 16 6,859,042 7,336,910
Administrative Expenses 17 10,476,474 10,651,764
Depreciation 5 207,378 490,398

Total (B) 101,211,430 98,453,870

Profit before Taxation (A-B) 18,379,069 24,334,778
Less: Provision for Current Tax 64,70,000 82,30,000
Less: Deferred Tax Liability 42,600 39,000
Add: Deferred Tax Assets 229,770 110,200
Profit / (Loss) after Tax, before Prior 12,096,239 16,175,978
Period Expenditure
Add: Deferred Tax Liability Added back 0 14,01,800
Add: Adjustment Pertaing to earlier years 531,695 -389,420
12,627,934 17,188,358

Surplus brought Forward from last year 42,373,519 30,201,388

Profit Available for appropriation 55,001,453 47,389,746
Appropriation:
Transfer to General Reserve 1,300,000 1,300,000
Proposed Dividend 4,146,200 3,109,650
Corporate Dividend Tax 704,647 436,128
Fringe Benefit Tax 166,485 170,449
Balance Carried to Balance Sheet 48,684,121 42,373,519
Earnings per Share-Basic & Diluted 12 16
 34

5.2 RATIO ANALYSIS

Ratio analysis is a technique of interpretation of financial statement of the
company. The analysis of the financial statement is the form of ratios indicates the
financial strength and weakness of the company.

1) Liquidity Ratios
Liquidity ratios are those ratios, which are intended to measure the liquidity
of the short -term solvency.

a) Current Ratio
Current ratio measures the ability of the company to meet its short-term
obligation. The ideal current ratio is 2:1. The company’s current ratio is 3.63:1 in
2007 and 4.91:1 in 2006. Even though current ratio of the company is decreasing
short- term solvency is satisfactory.

b) Quick ratio
Quick ratios express the relationship between quick assets and quick
liabilities. The ideal quick ratio is 1:1. The company quick ratio is 4.50:1 in 2006
and it is 3.3:1 in the year 2007. It shows the liquidity position of the company is
satisfactory.

2) Leverage Ratios
Leverage ratios are those ratios, which measures the relative interest of the
owner and creditor of the concern.

a) Net Worth Ratio

Net worth ratio measures amount invested by the owners on the total assets
of the concern. The ideal ratio is 0.75:1. The company’s net worth ratio is 0.97:1 in
2006 end 0.84:1 in 2007. It shows that less stronger financial position.
 35

b) Fixed Assets to Net Worth Ratio

It establishes the relationship between fixed assets end net worth of the
company. The ideal ratio is 67%. The company’s ratio is 20.26% in 2006 end 16.04
in 2007. It shows that financial weakness or the concern and creditors risk will
increase.

c) Current Assets to Net-worth Ratio

It is the ratio between current assets and net worth of the concern. The
company ratio is 1.17% in the year 2006 and 1.50% in 2007. It shows the financial
strength of the company.

d) Current Liability to Net Worth Ratio

The ideal ratio is 33% and company’s ratio is 23% in 2006 and 41% in 2007.
It shows that less stronger financial position.

e) Fixed Assets Ratio

It is the relationship between fixed assets and capital employed. The ideal
ratio is 0.67 and company’s ratio is 0.023 in 2006 and in 2007 is 0.013. It shows the
financial fixed assets of the long-term funds and short-term funds are satisfactory.

3) Performance Ratios
This ratio indicates the effective utilization of the various assets by the
concern.

a) Cash Turnover Ratio

The ratio expresses the relationship between cash and net sales. The ideal
ratio is 10:1 and company’s ratio is 1.42:1 in 2006 and 1.52:1 in 2007. It shows that
the inefficient utilization of cash.
 36

b) Fixed Assets Turnover Ratio

This ratio expresses the relationship between fixed assets and net sales. The
ratio in the year 2006 is 44.77 and it is 75 in the 2007. It shows that utilization of the
fixed assets increasing year by year.

c) Current Assets Turnover Ratio

It is the relation between current and net sales. The ratio in the year 2006 is
0.89 and 0.81 in the year 2007. This shows less efficient utilization of current assets.

d) Total Asset Turnover Ratio

It is the relation between assets and net sales. The ratio in the year 2006 is
1.03 and 1.03 in the year 2007. This shows efficiency in the use of total resources of
a concern.

e) Sales to Net worth Ratio

This ratio expresses the relationship between sale and owners funds. The
ratio in 2006 is 1.05 and it is 1.22 in 2007. It shows the utilization of owner’s funds
in relation to sales more efficiently.

4) Profitability Ratios
This ratio shows profitability of company.

a) Net Profit Ratio

It expresses the relationship between net profits and sales. The net profit ratio
is 9.46 in 2006 and 12.96 in 2007. It shows the net profit is increased when compare
to previous year.

b) Gross Profit Ratio

It shows the relationship between profit before tax and sales of the company
during a year. It is 19.44 2006 and 15.63 in 2007. It shows the profitability position
of the company.
 37

c) Return on Share Holders Fund

It establishes relationship between net profit after tax and net worth of the
company ration in the year 2006 10.02% and it is 15.82% in 2007. It shows fair
divided on the shareholders funds.

d) Return on Total Resource

It express the relationship between net profit and total assets ratio, in the year
2006 is 9.77% and in 2007 13.41%. It shows that the higher productivity of
company.

Mysore paints and varnish limited –Mysore works overall financial position
shows very well financial strengthen. As compare to the previous year return on
shareholder fund is increasing. Short-term solvency of the company is satisfactory.
 38

Table 5.3: Ratio Analysis of Mysore Paints and Varnish Ltd. on the Basis of
Annual Financial Report

Ratios Ideal Ratio Actual in 2006 Actual in 2007

1) Liquidity ratios
a) Current ratio 2:1 4:91:1 3.63:1
b) Quick ratio 1:1 4.50:1 3.33:1
2) Leverage ratios
a) Net worth ratio 0.75:1 0.97:1 0.84:1
b) Fixed Assets to net worth 67% 20.26% 16.04%
ratio
c) Current assets to net worth 1.17% 1.50%
ratio
d) Current liability to net 33% 23% 41%
worth ratio
e) Fixed assets ratio 0.67 0.023 0.013
3) PerformanceRatios
a) current assets turn over - 0.89 0.81
ratio
b) Fixed assets turn over ratio - 44.77 75
c) Cash turnover ratio 10:1 1.42:1 1.52:1
d) Sales to net worth ratio - 1.05 1.22
e) Total assets turn over ratio - 1.03 1.03
4) Profitability ratios
1) Gross profit ratio - 15.63% 19.44%
2) Net profit ratio - 9.46% 12.92%
3) Return on total resource 12% 9.77% 13.41%
4) Return on share holders 15% 10.02% 15.82%
fund

PART – E
VI. LEARNING EXPERIENCE

The Mysore Paints and Varnish Ltd. – Mysore works was established in 1937
under late king Nalwadi Krishnaraja Wodeyar. The prince of Mysore province. The
king Nalwadi Krishnaraja Wodeyar established this factory to solve the
 39

unemployment problem for the Mysoreans and for effective utilization of the natural
resources.

It has provided opportunity to witness the day to day activities. This was
very valuable practical experience of management aspects of the plant. It utilizes
human, financial, raw material and technological resources fullest extent through
sufficient planning, organizing, leading and controlling.

Mysore paints and varnish limited has got the ISO certificate for producing
quality products. Their Research &Development function focuses continuously on
profession and its products engineering & application research laboratory. They
produce high quality products at lower cost. Their goodwill is helping to get new
customers. They use advanced technologies which minimizes the cost, their
expenses incurring for sales promotion is very less. The company has a consistent
track record of growth, performance and profitability. They have well equipped
quality control department for inspecting the quality of incoming of raw materials
and final products. Demand of their products in abroad is huge. They have high
motivated work force

Human resource departments play an important role in any of the

organization. H.R. department is connected with all other departments under this
department how they monitor manpower and absenteeism, how it organize training
programme for its employees and how H.R. department will monitor the
performance appraisal, how it will conducts the interview and recruitment and
selection aspects.

The goods are then dispatched to various branches of Mysore Paints &
Varnish Limited across India and various distributors and dealers through the
marketing channel, the company also exports its products to various countries across
the globe, the goods thus rejected are returned back and undergo inspection, the
products which can be repaired, will be repaired and sent to inspection .the rejected
 40

ones are considered as scrap. Finally the quality is tested by quality control
Manager through statistical control techniques or by visual inspection.

Mysore Paints and Varnish Limited reveals that the company depends upon
sales promotional activities. They have found to be efficiently effective. In addition
the company undertakes separate promotional activities to popularize itself. The
company with the help of effective promotional activities has become well-known
outside the state and internationally.

The sales promotion tools adopted by Mysore Paints and Varnish Limited are
as, sample, price packs, discounts exhibitions, quantity rebate, and seminars and
meeting website, e-mail ID, customer relationship.

It is well established with store room as well as equipped with all necessary
machines advanced technology is used in order to eliminate wastage and reduce the
cost of production.

It often said that finance is the lifeblood of any business organization without
any business can exist. The finance department of Mysore Paints and Varnish Ltd.-
Mysore unit takes care of the both. The financial and accountant work. It includes
payroll, account payable, account receivable etc., opportunity to learn about ways of
fund raising and how efficiently financial resources are maintained. Finance
department functions are working capital management, funding capital equipment
etc.

The company tries to be frequently in touch with the customers. Company

try to get through are the minor as well as major complaints for the customers and
try to solve the problems. So these efforts pure up the company’s reputation in the
market.