PROJECT REPORT

ON
NIKOLAS PIPES AND FITTINGS

SUBMITTED TO
ATMIYA INSTITUTE OF TECHNOLOGY AND SCIENCE.

IN PARTIAL FULFILLMENT OF THE

REQUIREMENT OF THE AWARD FOR THE DEGREE OF
BACHELOR OF MANAGEMENT (BM)
(Semester VI of Integrated Master of Business Administration)

UNDER
GUJARAT TECHNOLOGICAL UNIVERSITY
UNDER THE GUIDANCE OF

FACULTY GUIDE: COMPANY GUIDE:

Mr. Keyur Popat Mr. Haresh Pandya
(Professor) (Manager)

SUBMITTED BY
Vaibhav Parikh
ENROLL. NO-157870585033

I-MBA- SEMESTER VI

Gujarat Technological University

Ahmedabad
March-2018

1
2
 Preface

The knowledge and guidance about theoretical subject is given to us by professors. Practical
studies give us an opportunity to increase our knowledge and standard and also develop our skill.

I have studied all the managerial function over there i.e. Personal, Marketing, Production. I
had got a very good support from all the officers and manager over there.

I have subscribed all things in report which I have studied in ‘Nikolas Pipes and Fittings’ and
I have also included general information for company to describe the company more clearly.

3
 Acknowledgement
It is my great pleasure to present this report. I thank all the people who helped me in making
this project by providing necessary information.

I would like to thanks to Mr. Haresh Pandya, Mr. Mahesh Dave of “NIKOLAS PIPES AND
FITTINGS” to spare their most valuable time and provide me all necessary details regarding the unit.

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 Declaration

I Vaibhav Parikh, hereby declare that the report for “Project” entitled “NIKOLAS PIPES AND
FITTINGS” is a result of my own work and my indebtedness to other work publications, references,
if any, have been duly acknowledge.

PLACE: RAJKOT Signature

DATE: 23/03/2018 VAIBHAV PARIKH

5
 INDEX

Sr. no. Particular Page no.

PART- I Industry Study

1 Growth and evolution of Industry in India 9

2 Product profile 12

3 Demand determination of the Industry 14

4 Players in the Industry 17

5 Distribution channel in the Industry 21

6 Key issues and Current trends 24

7 PESTEL Analysis 29

8 Financial Analysis of the chosen Industry 32

9 Michel Porter's Five Force Model 36

10 Future Outlook 39

PART-II Company study

11 Company Information and Product Profile 42

12 Functional Departments 48

13 SWOT/TOWS Analysis 56

14 Conclusion & Suggestion 58

Annexure
Bibliography

6
 PART-I
Industry Study

7
1. Growth and Evolution of the
Industry in India

8
Introduction
The Indian plastic pipe market is forecast to grow at a CAGR of 10.4% from 2016 to 2021.
The major growth drivers for this market are the growth of government infrastructural spending,
increasing residential and commercial construction, industrial production, irrigation sector, and
replacement of aging pipelines.

Emerging trends, which have a direct impact on the dynamics of the Indian plastic pipe
industry, are the usage of anti-microbial plastic pipes to improve hygiene, consumption of CPVC
(chlorinated polyvinyl chloride) piping system in various applications of plastic pipes, and increasing
consumption of multilayer plastic pipe in gas distribution in the Indian plastic pipe market.

Opportunities for growth

•Market size estimates:

Growth opportunities in the Indian plastic pipe market size estimation in terms of value ($B)
and volume (MT) shipment.

•Trend and forecast analysis:

Indian plastic pipe market trend (2010-2015) and forecast (2016-2021) by material type and
applications.

•Segmentation analysis:

Indian plastic pipe market size by various material segments such as PVC, PE, PP, and
others in terms of value and volume shipment, by application segments such as potable water
supply, wastewater supply, electrical and telecommunication cable protection pipes, agriculture
sector pipe, chemical sector pipe, and oil & gas sector pipe in terms of value shipment.

9
•Growth opportunities:

Analysis on growth opportunities in different materials and applications.

•Strategic analysis:

This includes new product development, competitive landscape, and expansion strategies of
plastic pipe in the Indian plastic pipe suppliers.

•Emerging applications:

Emerging applications of plastic pipe in various markets.

10
2. Product Profile

11
Submersible pipes

This pipes are used for water supply, micro & sprinkler irrigation system, sewage pumping.

Ducting HDPE pipes

These pipes are used in telephone cable ducting, gas pipelines drainage etc.

Smartfit CPVC

Plumbing system is designed for Hot & Cold water which is suitable for all plumbing and
potable water application. It has a proven hot & cold water performance from 0° C to 93°C. Its
corrosion resistance property makes it usable in all weather & ensures constant flow over lifetime.
This system is used in industrial, residential, commercial & public complexes.

Easyfit UPVC

Plumbing system is a ‘LEAD FREE’ solvent weld system designed for distribution of potable
water that is technically superior and offers many advantages over conventional G.I. Piping system.
This system is easy to install and offers a long service life. It is used mainly for cold water application
in residential, Commercial and public complexes.

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3. Demand determination of the
Industry

13
Meaning

When price changes, quantity demanded will Change. That is a movement along the same
demand curve. When factors other than price changes, demand curve will shift. These are the
determinants of demand curve.

There are 5 determinants of an individual’s demand;

I. Price

Price, in many cases, is likely to be the most fundamental determinant of demand, since it's
often the first thing that people think about when deciding how much of an item to buy. The vast
majority of goods and services obey what economists call the law of demand- that, all else being
equal, the quantity demanded of an item decreases when the price increases and vice versa.

II. Income

People certainly look at their incomes when deciding how much of an item to buy, but the
relationship between income and demand isn’t as straightforward as one might think. Do people
buy more or less of an item when their incomes increase? As it turns out, that's a more
complicated question than it might initially seem. For example, if a person were to win the lottery,
he would likely take more rides on private jets than he did before. On the other hand, the lottery
winner would probably take fewer rides on the subway than before.

III. Price of Related Goods

When deciding how much of a good they want to purchase, people take into account the
prices of both substitute goods and complementary goods. Substitute goods, or substitutes, are
goods that are used in place of one another. For example, Stell pipes substitutes because
people tend to, well, substitute one for the other. Complementary goods, or complements, on
the other hand, are goods that people tend to use together.

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IV. Tastes

How much of a particular good or service also depends on an individual's taste for the item?
In general, economists use the term "tastes" as a catchall category for consumers' attitude
towards a product. In this sense, if consumers' tastes for a good or service increase, then their
quantity demanded increases, and vice versa.

V. Expectation

Today's demand can also depend on consumers' expectations of future prices, incomes,
prices of related goods, and so on. For example, consumers demand more of an item today if
they expect the price to increase in the future. Similarly, people who expect their incomes to
increase in the future will often increase their consumption today.

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4. Players in the Industry

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 1) ASTRAL POLY TECHNIQUE LTD.

Corporate office: Thaltej, Ahmadabad

Business: manufacturing and trading of pipes, fittings and adhesive solutions.

Website: www.astralpolypipes.com

Astral Poly Technique Limited was established in 1999 with the aim to manufacture pro-India
plumbing and drainage systems in the country. While serving the plumbing needs of millions of
houses, the company adds extra mileage to India’s developing real estate fraternity. Our contribution
to the plumbing industry in the form of being pro-innovative bears the hallmark of unbeaten quality.
Astral Poly Technique is equipped with production facilities at Santej & Dholka (Gujarat), and Hosur
(Tamil Nadu) to manufacture Plumbing systems, Drainage systems, Agriculture, Industrial and
Electrical Conduit Pipes with all kinds of necessary fittings.

2) FINOLEX INDUSTRIES LTD.

Corporate office: 26-27, Mumbai-Pune Road

Business: manufacturer of PVC pipes and fittings

Website: www.finolex.com\

1981

Finolex Industries Limited (FIL) was incorporated and had a modest beginning as a rigid PVC
(Poly Vinyl Chloride) pipes manufacturer with manufacturing plant in Pune.

Finolex Industries Limited is India’s leading manufacturer of PVC-U Pipes and Fittings and the
second largest manufacturer of PVC Resin. We have state-of-the-art manufacturing plants in Pune
that serves as our headquarter, Ratnagiri in Maharashtra and Masar in Gujarat. We also carry out
distribution from our warehouses in Chinch wad, Cuttack, Delhi, and Indore.

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 3) JAIN IRRIGATIONS SYSTEMS LTD.

Corporate office: Bambhori Jalgaon-425001, Maharashtra

Business: Manufacturer of all drip irrigation system components, PVC pipes, HDPE pipes.

Website: www.jainpipe.com

Our journey began in 1887 when our forefathers left the deserts of Rajasthan, their home state,
in search of water and food and reached Wakod, at the foothills of the famous Ajanta Caves. They
started farming as a means of livelihood.

Jain Irrigation Systems Ltd is a diversified entity with turnover in excess of one billion dollars. We
have a global presence with 30 manufacturing bases spread over four continents. Our products are
supplied to 126 countries with able assistance from 6700 dealers and distributors worldwide. We
have reached over 4.5 million farmers.

4) RESPONSIVE INDUSTRIES LTD.

Corporate office: Colaba, Mumbai

Business: manufacturer of PVC based products

Website: www.responsiveindustries.com

Responsive Industries Ltd was incorporated in the year 1982 with the name Sinhala Holdings
Ltd. In the year 1992, they acquired and undertook expansion of facilities to cater to increasing
demand. They imported machinery to set up the plant. In the year 2000, they increased their focus
on exports markets and undertook international certifications of products and processes.

5) KANKAI PIPES AND FITTINGS PVT. LTD.

Corporate office: Rajkot, Gujarat

Business: manufacturers and suppliers of plastic pipes, CPVC pipes, PVC pipes, etc.

Website: www.kankaipipes.com

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 Kankai Pipes & Fittings Private Limited has been established in 2013. We are manufacturer and
exporter small group of people who is working continuously and consistently towards the growth of
our company. We specialize in the manufacture of various kinds of Pipe and Fittings.

The raw materials used for the manufacture are brought from reliable vendors and trusted
sources. This helps us maintain the high quality of our products, and hence making them long lasting
too. We are exporting our quality products in Romania, Nigeria, United Arab Emirates and Kenya.

6) PRINCE PIPING SYSTEMS

Corporate office: Dadar (West), Mumbai

Business: Trading Company of PVC pipes and fittings

Website: www.pricepiping.com

Prince Pipes and Fittings Pvt. Ltd. is committed towards constant innovations in plumbing,
irrigation and sewerage technologies. Innovations that meet the nation’s constantly increasing water
demands. Innovations that pave the way for a future that provides clean water for everyone and
everywhere; from the smallest villages to the largest cities.

With the use of a Zero Defect Manufacturing process to create extremely efficient piping
systems, Prince aims at low-cost, non-contaminated water transport in every part of the country.
Prince Pipes has evolved not only in being a pioneer of agricultural fittings but also has become a
one-stop-shop for all plumbing needs.

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5. Distribution Channel of the Industry

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Meaning

A distribution channel is the network of individuals and organizations involved in getting a

product or service from the producer to the customer.

Distribution channels are also known as marketing channels or marketing distribution

channels.

Distribution Channels

A. Direct Channel

The manufacturers perform all the functions.

Approach is viable when

• The value of each transaction is large

• The selling includes extensive technical and commercial negotiations at various levels

• The buying process lengthy

• The industrial buyers insist on buying directly from the manufacturers

B. Indirect Channel

The manufacturer and the intermediaries share the tasks between them.

Approach is appropriate when;

• The value of transactions or sales are low

• The manufacturer has limited resources

• The industrial buyers purchase many product items in one transaction

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 As the industrial goods have quite different nature and more or less fixed patterns, the
channels used by them are less complicated. Major channels of distribution, which are commonly
used in the distribution of industrial goods, are as follows:

Producer -> Industrial User

Producer -> Wholesaler -> Industrial Users Producer -> Agent -> Industrial Users

Producer -> Agent -> Industrial Distributor -> Industrial User

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6. Key Issues and Current Trends

23
 Issues

1) Rising raw material costs.

Commodities associated with packaging have risen dramatically over the last 2 years. Oil,
pulp, and chemicals have increased significantly over this time period.

Many suppliers have held out as long as they could; double‐digit increases are the norm. If
you are not raising your prices, you will most likely find yourself out of business in a very short period
of time. Raising prices is seen as a non‐productive activity. Use the opportunity to develop your
differentiated position as a solutions provider. The increases cannot be avoided, but they can be
mitigated. Are there opportunities to change processes? Don’t just focus on material substitutions.
Yes, those opportunities most likely exist, but real savings will come from helping your customer
improve his business processes.

2) “Just in time inventory” at the supplier level means longer lead times.

We all fell in love with just in time inventory when the economy was good. We reduced
inventories and knew we could get product when we needed. Now, we face rampant inflation and
Component shortages. Additionally, cutbacks at the customer level have resulted in new people
handling tasks they did not handle in the past. Cutbacks at the supplier level mean they do not have
capacity to meet your customers’ emergency requests. It all means you are stuck in the middle
between a customer that needs product and a supplier that can’t provide it.

Here is again where your differentiation strategy pays off. With your customer, you should
manage inventory of all products you sell to them. That is a critical function you can play. With your
vendors, does not be the boy who cried wolf. Vendors understand emergencies and will work with
you. However, if every order is an emergency, you will have zero credibility.

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 3) Weak growth

Times are tough. Unemployment remains high, incomes are flat and a recessionary mindset
continues to influence consumer behavior in terms of higher coupon usage, increasing market-share
for deep discounters and the growing popularity of lower cost private label brands.

4) Margin pressure

Margins are under siege tracing to rising input costs and limited pricing power due to retailer
consolidation and pricing pressure from discounters. Emerging market growth was supposed to
offset this funk. However, emerging markets have become more competitive due to slowing growth
rates and the rise of viable, more competitive local brands. This profit challenge comes at a time
when managers need to boost their capital and marketing spend to drive product & manufacturing
innovation and next generation IT capabilities.

5) Growing role of regulators and activists

Governments are getting more involved in what goes into our bodies and households.
Increased oversight has important implications in terms of regulatory compliance, product
development and marketing messages. Some regulators are trying to levy higher taxes on products
that are considered unhealthy; introducing measures to improve product safety; scrutinizing product
claims and labels and; discouraging marketing to children. Moreover, there are increasing consumer
demands for transparency on how companies perform when it comes to sustainability and corporate
social responsibility as well as where products are made distributors, value added resellers and
other label converters.

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 Trends

1) Economic trends

The economy is the single most important influence on packaging consumption. The level of
economic activity has a fairly direct influence on demand for bulk/ transport packaging in particular
and indirectly provides the right or wrong climate for investment into packaging material research
and development.

2) Demographic trends

Much is said about the potential of India’s one billion consumers, but demographic factors
often have a much more complex effect on demand trends. In the packaging market, a great deal of
attention has been devoted to ensuring that the offer responds to the demands of particular
demographic segments, and takes into account the ageing of the world’s population that is now
occurring.

3) Lifestyle trends

It is difficult to ignore lifestyle trends that are today impacting upon consumer purchasing
decisions. For the packaging industry, these trends are positive, encouraging innovation and
expansion of chilled cabinet selections in supermarkets. Consumers are becoming increasingly
demanding and short of time, seeking out convenience food solutions that represent an advance on
more traditional processed foods. The expectations of food quality are rising and growing awareness
of health and other issues present new challenges to retailers, packers and packaging suppliers
alike.

4) Brand trends

Plastic is a major aspect of differentiation in most industrial goods; where differentiation

competition is intense then prices are low, and packaging provides a marketing advantage at the
point of sale. Packaging is also a major cost component in the majority of consumable products.

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 5) Retail trends

The retail industry is increasing in power and diversity. Hypermarkets are usually sited outside
the city center, while discounters can be found everywhere and speciality stores are usually in the
larger cities. Convenience stores continue to make headway, located in airports, train station and
city centers. Various issues will affect future retail trends, including technology, service, quality and
trust, lifestyle and emotions, store/ concept innovations and globalization.

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7. PESTLE Analysis

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 1) Political

Every project has both internal politics and external politics. The internal politics like team
jealousies, cohesive projects, and personal interests occur in all projects and must be considered
and managed by stakeholders. The external politics refer to those which the stakeholders do not
control. These events include all political events like employment laws, tax policies, trade
restrictions, trade reforms, environmental regulations, political stability, tariffs, etc.

2) Economic

This factor takes into consideration all events that affect the internal and external economic
environment. The internal or Micro-economic events relate to the project viability and internal
soundness of the project. Financial models and Accounting techniques need to be used during the
evaluation phase to ensue viability of the project. The external or macro-economic events include
interstate taxes, embargoes, interest rates, economic growth, recession, inflation rate, exchange
rate, minimum wage, wage rates, unemployment, cost of living, working hours, credit availability,
financing availability, etc.

3) Sociological

The sociological factor takes into consideration all events that affect the market and
community socially. Thus, the advantages and disadvantages to the people of the area in which the
project is taking place also need to be considered. These events include cultural expectations,
norms, population dynamics, healthy consciousness, career altitudes, global warming, etc.

4) Technological

This factor takes into consideration all events that affect technology. Since technology often
becomes outdated within a few months after it is launched, it is important to consider this. This factor
could also take into consideration all barriers to entry in certain markets and changes to financial
decisions.

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 5) Legal

This factor takes into consideration all legal aspects like employment, quotas, taxation,
resources, imports and exports, etc.

6) Environmental

This factor takes into consideration ecological and environmental aspects that could be either
economic or social in nature. These include temperature, monsoons, natural calamities, access by
rail, air, and road, ground conditions, ground contamination, nearby water sources, and so forth.

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8. Financial Analysis of chosen
Industry

31
 1) MANAGMENT OF WORKING CAPITAL

Working capital is a financial metric which represents operating liquidity available to a

business, organization other entity, including governmental entity. Along with fixed assets such as
plant and equipment, working capital is considered a part of operating capital. Net working capital is
calculated as current assets minus current liabilities. It is a derivation of working capital,that is
commonly used in valuation techniques such as DCFs (Discounted cash flows). If current assets are
less than current liabilities, an entity has a working capital deficiency, also called a working capital
deficit.

A company can be endowed with assets and profitability but short of liquidity if its assets
cannot readily be converted into cash. Positive working capital is required to ensure that a firm is
able to continue its operations and that it has sufficient funds to satisfy both maturing short-term debt
and upcoming operational expenses. The management of working capital involves managing
inventories, accounts receivable and payable, and cash. Decisions relating to working capital and
short term financing are referred to as working capital management. These involve managing
the relationship between a firm's short-term assets and its short-term liabilities.

The goal of working capital management is to ensure that the firm is able to continue its
operations and that it has sufficient cash flow to satisfy both maturing short-term debt and upcoming
operational expenses By definition, working capital management entails short-term decisions-
generally, relating to the next one-year period, which is "reversible". These decisions are therefore
not taken on the same basis as capital-investment decisions (NPV or related, as above); rather, they
will be based on cash flows, or profitability, or both.

i. Cash management

Identify the cash balance which allows for the business to meet day to day expenses, but
reduces cash holding costs. It includes controlling cash inflow and outflow, ascertaining minimum
cash, optimum utilization of resources. Cash management assures that the business has sufficient
cash flow to meet its short & long term needs. “NIKOLAS PIPES AND FITTINGS” maintains its
accounts in HDFC, ICICI, and SBI & Bank of Baroda. It prepares a cash budget for examining the
next quarter sales; it also takes loans from the bank to fulfil its working capital requirements.

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 ii. Inventory management

Identify the level of inventory which allows for uninterrupted production but reduces the
investment in raw materials - and minimizes reordering costs - and hence increases cash flow.
Besides this, the lead times in production should be lowered to reduce Work in Process (WIP) and
similarly, the finished goods should be kept on as low level as possible to avoid over production.
“NIKOLAS PIPES AND FITTINGS” uses ABC inventory control system, in this system 'A' includes
those items which are of high value and important, 'B' includes those items which are of regular
use; 'C' includes those items which are of least importance. This system helps in reduction of
wastage and is helpful to the firm.

iii. Receivable management

Identify the appropriate credit policy, i.e. Credit terms which will attract customers, such that
any impact on cash flows and the cash conversion cycle will be offset by increased revenue and
hence return on Capital (or vice versa). This firm provides 30 days credit facility to its customer,
generally it does not face any problem regarding receivables but in case of any delay in payment it
charges 20% interest on receivables.

2) PROFITABILITY AND Demand DISTRIBUTION

It is the state or condition of yielding a financial profit or gain. It is often measured by price to
earnings ratio Profitability is the primary goal of all business ventures. Without profitability the
business will not survive in the long run. So measuring current and past profitability and projecting
future profitability is very important.

Profitability is measured with income and expenses. Income is money generated from the
activities of the business. For example, if crops and livestock are produced and sold, income is
generated. However, money coming into the business from activities like borrowing money does not
create income. This is simply a cash transaction between the business and the lender to generate
cash for operating the business or buying assets Expenses are the cost of resources used up or
consumed by the activities of the business.

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 For example, seed corn is an expense of a farm business because it is used up in the
production process. A resource such as a machine whose useful life is more than one year is used
up over a period of years. Repayment of a loan is not an expense; it is merely a cash transfer
between the business and the lender Profitability is measured with an "income statement". This is
essentially a listing of income and expenses during a period of time (usually a year) for the entire
business.

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9. Michel Porter’s Five Force Model

35
 The model originated from Michael E. Porter's 1980 book "Competitive Strategy: Techniques
for Analyzing Industries and Competitors." Since then, it has become a frequently used tool for
analyzing a company's industry structure and its corporate strategy.

In his book, Porter identified five competitive forces that shape every single industry and
market. These forces help us to analyze everything from the intensity of competition to the
profitability and attractiveness of an industry.

1) Threats of new entrants

This business requires a huge investment and therefore not many entrants jump into this
market. But still industry face a threat from the local industries such as Astral poly technique ltd.,
Finolex Industries ltd. who enter into the market with low priced products. Both entry and exit barriers
are very high in the market and hence firm faces less threats from the new potential entrants.

Change in competitive conduct

 Foreign investments and the attractiveness of Indian markets

 Modernization of existing assets and capital need
 Development of pulp and paper industry in South East Asia
 Consolidation and acquisitions as growth vehicle

2) Threats of substitute products

In the paper industry now-a-days internet work is as a substitute product. But still there is
requirement of hard copy in the offices and educational institute. So the industry faces a less threats
from the substitute product. And also in comparison to past the use of plastic products increase
vastly like plastic pipes.

Change in industry performance

 Global competitiveness
 Improvement of profitability
 Increased capital intensity
 Tax incentives
36
 3) Bargaining Power of Buyers

The packaging industry first buyer is manufacturers, which have bargaining power depending
upon the market conditions. When the market is up the manufacturers have less bargaining power
and when the market is down they have more bargaining power. During downturn there is less cash
liquidity into the market and hence the dealers get upper hand in terms of bargaining power.

External driving forces

 GDP growth and increased standard of living

 Development of export-led industry

4) Bargaining Power of Suppliers

The main suppliers of the packaging industry is paper manufacturers, Pulp manufacturer,
aluminum Foil manufacturer etc. are the main suppliers of raw materials like wood, aluminum, pulp,
Plastic etc.

5) Threats of intense segment rivalry

There are many strong competitors like astral poly technique ltd., Finolex Industries ltd. etc.
Produces a large number of packaging products products like different types of films and etc. face
much stiff competition among them.

37
10. Future Outlook

38
 Every unit has its own dream and plan. Continuous planning in specific direction for
expanding activities is quite essential thinking of future plans and as each and every individual,
even every company is ambitious.

NIKOLAS PIPES AND FITTINGS has some sound planes for expanding their unit.

 They intend for apex satisfaction of their customers.

 They wish to have continual improvement in quality and productivity.

39
 PART-II
COMPANY STUDY

40
11. Company Information and
Product Profile

41
SR.NO. PARTICULARS.

1 Industry Profile

2 Introduction of Company.

3 Brief History and Development

4 Company Profile

5 Products of Company

6 Objectives of the company

7 Organization Structure

8 Present Scenario

9 Time keeping System

10 Size & Form of Organization.

11 Contribution of Industry Towards Society

42
Industry Profile

Name of Unit NIKOLAS PIPES AND FITTINGS

Atika Industrial Area

Road no. 15
Address Dhebar Road (south)
Rajkot
Gujarat – 360002

Phone Number (0281) 2712551

Website www.nikolaas.com

Size of Organization Medium Scale Industry

Form of Organization Partnership Company

Establishment of year 2000

Total Area in sq. Feet 4541 square meters

Present Investment 25 crores

Breaking time 1 pm to 2 pm

Time keeping 9 am to 7 pm

HDPE Pipe
Products
Sprinkler Pipe
Accounting system DOUBLE Entry System

Champak Chopra
Promoters/Partners
Mahesh Dave
Haresh Pandya
Viren Shah

Bankers HDFC Bank

Week Off Wednesday

No. Of Shifts 1 shifts

Accounting year 1st April To 31st March

43
Introduction of Nikolas Pipes and Fittings

NIKOLAS PIPES AND FITTINGS was established in year 2000. It is privately held
organization. They established company at Atika Industrial Area. The total area is 4541 square
meters. They are manufacturing different types of HDPE pipes. They are manufacturers,
wholesalers and exporter of industrial pipes, HDPE pipes, water supply pipes, agriculture pipes,
sprinkler pipes etc.

They use high grade materials and components. Manufactured in compliance with quality
standard, their range is acknowledged in market for long time service life, trouble free installation,
flexibility, and flexibility and corrosion resistance.

NIKOLAS PIPES AND FITTNGS has completed 16 years. Because of international market
the change of growth is very good. The company has sold in wide market is very good
accomplishment of the company.

They have the trade membership of Gujarat State Plastic Manufacturing Association.

Location of the Company

When a business unit is expanding or when new industry is to be established the main
decision to be taken about location of the plant is a vital factor deciding the profitability of
company. There are many factors, which are to be in mind while selecting location of the plant. It
includes both internal and external factors. Even if promoters has best ability to invest and has
effective managerial skills but if does not take care of location, it will decline prosperity of the
company.

NIKOLAS is located in;

Atika Industrial Area,

Road No. 15,

Dhebar Road (South),

Rajkot-361002

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Time Keeping Policy

As “Time is Money” time keeping system becomes one of the very important functional
activities in the organization. For the regulation of the employee, & production it is adopted each &
every worker is required to work in shifts.

So far as NIKOLAS PIPES AND FITTINGS is concerned there is only one working shift

09:00 a.m. to 01:00 p.m.

01:00 p.m. to 02:00 p.m. (Lunch Time)
02:00 p.m. to 07:00 p.m.

It is to be noted that here, first prayer is done and then all the workers go to their respective
department supervisors take attendance of the workers. Each department has its own muster which
entry & exit of each employee in the organization is noted i.e. all the workers are given numbers
along with identity card, which indicates their department.

In case of executives, they have to obtain exit card if they go for any personal or official work
during the working period.

Thus, here is a nice time keeping system in this unit. It produces “time shower” so to utilize the
time in the best way is the main aim.

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Size and Form of the Organization

According to Company’s act 2013, company is classified in to three scales according to size of the
unit and investment done, and they are mentioned below,

 Small scale unit

 Medium scale unit
 Large scale unit

NIKOLAS PIPES AND FITTINGS is equipped with latest machineries. Km.

Form of Organization

Business unit can mainly be classified in 4 ways,

(1) PRIVATE LIMITED COMPANY

(2) PUBLIC LIMITED COMPANY
(3) JOINT STOCK COMPANY
(4) PARTNERSHIP COMPANY

A private limited company is an organization formed by the members of a family or a group of

friend’s .Its membership is not open to the general public. The minimum number of members
required to form an enterprise is two but it should not exceed fifty.

Thus NIKOALS PIPES AND FITTINGS is Partnership Company.

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12. Functional Department

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 1) Production Department

It produces many products which are as under:

• PVC Pipes
• Sprinkler Pipes
• HDPE Pipes

It Implement about 6 to 7 process to produce these products. It uses many different types of
plastics as raw material. It produces qualitative and quantitative products. They produce different
types of films as per customer’s demand.

It produces wide range of plastic pipes. It uses 50 to 100 tons of raw material on daily basis
for its production of different types of films. Size of pipe width is 1500mm and thickness is 40 to 200
microns. Production capacity of PVC Pipes is 12.5 MT per day.

Factors Affecting to the Location:

a. Availability of raw materials

b. Availability of labour supply
c. Availability of land
d. Availability of electricity
e. Transportation facility

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Manufacturing Process Chart

Receiving Order

Raw Material

Crushing &
Mixing

Processing

Cutting

Rolling

Printing

Packaging

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 2) Marketing Department

Marketing department is essential to operate every activity of marketing of the product. The
marketing department of the firm should be well organized. Thus a firm can smoothly perform
marketing activities.

Each and every firm has its own marketing structure to complete the task of product's
marketing. The firm should maintain the proper marketing organization because marketing is the
only task which can lead the firm to its goal.

In “NIKOLAS PIPES AND FITTINGS” marketing has also important. Its marketing department
is run very smoothly and clearly. Mr. Haresh Pandya is very hard working and experience person.
He controls the marketing department. He manages all marketing activities with smartly.

Marketing department is concerned with distribution of a good and services produced

production department. It fixes the prices of various products produced by the business. Again it
promotes the sale of goods through advertisement and sales promotion devices such as distribution
of as sample.

Stages of Product Planning

a. Developing the product concept

b. Studying the market
c. Market research
d. Product Introduction
e. Product life cycle

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 Sales Promotion

Sales promotion means steps taken to increase the sales promotional activities. It is the
process of creating demand for the commodity. But it is totally different form advertisement and
publicity. Due to sales promotion activity the company gets the benefit of awareness of product
towards the customers. The main purpose of sales promotion activity is to stimulate consumers and
dealers effectively.

Today sales promotion is necessary and it is not expense for the company but it is an
investment, which can pay high dividend in future. It is integral part of marketing efforts. Sales
promotion is a vital bridge or a connecting link that removes gap between personal selling and
advertisement.

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3) Personnel Department

Organizational Structure

DIRECTOR
⇩
MANAGER
⇩
PERSONNEL
MANAGER
⇩
⇩ ⇩
OPERATOR SUPERVISOR

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 4) Financial Department

MANAGMENT OF WORKING CAPITAL

Working capital is a financial metric which represents operating liquidity available to a

business, organization or other entity, including governmental entity. Along with fixed assets such
as plant and equipment, working capital is considered a part of operating capital. Net working capital
is calculated as current assets minus current liabilities. It is a derivation of working capital that is
commonly used in valuation techniques such as DCFs (Discounted cash flows). If current assets are
less than current liabilities, an entity has a working capital deficiency, also called a working capital
deficit.

A company can be endowed with assets and profitability but short of liquidity if its assets
cannot readily be converted into cash. Positive working capital is required to ensure that a firm is
able to continue its operations and that it has sufficient funds to satisfy both maturing short-term debt
and upcoming operational expenses. The management of working capital involves managing
inventories, accounts receivable and payable, and cash. Decisions relating to working capital and
short term financing are referred to as working capital management. These involve managing the
relationship between a firm's short-term assets and its short-term liabilities. The goal of working
capital management is to ensure that the firm is able to continue its operations and that it has
sufficient cash flow to satisfy both

Maturing short-term debt and upcoming operational expenses.

By definition, working capital management entails short-term decisions-generally, relating to

the next one-year period, which is "reversible". These decisions are therefore not taken on the same
basis as capital-investment decisions (NPV or related, as above); rather, they will be based on cash
flows, or profitability, or both.

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 Organizational Structure

DIRECTOR
⇩
MANAGER
⇩
FINANCE
MANAGER
⇩
⇩ ⇩
ACCOUNTANT COMPUTER
OPERATOR

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 13. SWOT Analysis

Strengths:

•Loyal Employees
•Qualitative Products
•Reliable Consumers
•Powerful Consumers

Weaknesses:

•Weak updating of website

•Less promotional activities

Opportunities:

•Good scope of international market

•Better financial capacity to expand its market

Threats:

•Cut-throat competition in the market

•Financial losses
•Lack of the proper planning implementation

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14.Conclusion & Suggestion

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Conclusion

India is a very fast-developing country and it has adopted free economy. As per going
development, new technology is adopted and progress is carried forward as a prime object for
development. Modernization is the main task today for every firm.

In the conclusion I would like to say the “NIKOLAS PIPES AND FITTINGS” is a leading
manufacturer of different types of plastic based pipes in whole of Rajkot. They have a very finely
developed market. They have a good reputation in national & international market.

The firm was started on a very low capital basis & today it is at its peak of development. It
issuing the latest technology for production. It is on a pace of development along with the country.
Today the firm is a matter of pride for our nation. I wish my best regards to the company for
continuous prosperity.

Suggestion

 Company should focus on health and safety of employees working in mixture department by
hand cap and distribute GUR every month to avoid lungs diseases.

 Company should use the natural sources of energy like solar energy, wind mill etc. To
reduce the manufacturing cost.

 Company having lots of labour who belongs out of states (Bihar, Uttar Pradesh, Orissa). So
canteen facilities should be there so they can easily good and hygienic food within company
premises only.

 There should be 8 hours shift for employees even this can results into more productivity.

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 Bibliography

For the completion of my project I have referred to the following:

Training at the Industry: NIKOLAS PIPES AND FITTINGS

Website: www.nikolas.com

Books:
Personnel Management- Arun monappa
Marketing Management- Philip kotler
Financial Management – Prasanna candra

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