A Project Report On A Study of Market Potential of conductive Bags in India Under The Guidance Of Mrs.

Ujjawal Jayswal Submitted To Gujarat Technological University In Partial Fulfillment Of Master Degree Course in Business Administration (2009-2011) Submitted By Mr. Krushnavadan P. Sadhu Enrolment no. 097750592060 Sigma Institute of Engineering (M.B.A. Program) Bakrol.Tal. Waghodia, Dist. Vadodara-

What is FIBC???
Flexible Intermediate Bulk Containers (FIBC) also known as Big Bags, Jumbo Bags or Bulk Sacks are made from polypropylene tape woven fabric Flexible cubicle containers designed to carry loads up to 2000 Kgs. Designed to be lifted from the top by means of integral lifting loops or straps. Has various filling and discharge arrangements to suit the tailor made requirement of the user. FIBCs are reusable and recyclable

Worldwide consumption and production Data source

FIBC- Major Producers and Exporters

Company Profile
Company Name: Business Type: Product/Service (We Sell): Address: Number of 1000 People Employees: Company Website http://Shankarpack.com Shankar Packagings Limited Manufacturer Poly Propylene Bulk Bags / Flexible Intermediate Bulk Containers 4-5-6, GIDC Estate, Vaghodia

URL:

Year Established Legal:

1976

Representative/Business Owner: Mr. V. S. Pandya

Business Type Capital in Dollars Export

Manufacturer , Exporter 34,74,665 82%

Import
Sales Volume Import Value No of Staff No of Production Lines Export Markets Import Markets

5%
36,30,77,305 INR 1,94,02,567 INR 185 1 USA and Europe Switzerland

Investment on Manufacturing Equipment 12,75,52,197 INR

No of Engineers

12

Product Profile
I. Conductive Bags

Conductive bags are bags that conduct the charges generated at the time of filling & emptying of the products. These are essential in explosive environments or where the products generate charges that could lead to explosion hazards.

2. Conical Bag A Conical bag is shaped as a cone at the bottom. These types of FIBCs are especially suitable to pack Tacky products which are not so free flowing e.g. Clay, Slurries etc. The Conical design provides a gradient for these materials to 'flow' towards the outlet spout.

3. Form Stabilized Bag

These are FIBCS with inner construction of baffles sewn to the main fabric so that the bags retain shape after filling. From Stabilized bags ensure... Saving in Space, Higher Stability after filling, and Retention of the rectangular shape.

4. Ventilated Bag

Ventilated or Breathable bags are FIBCs where the fabric has breathable stripes. This is useful for products that breathe while packed, especially fruits and vegetables.

5. UN Bag
These are special types of bags used for transportation of dangerous materials. The UN bags are designed and tested in accordance with the recommendation as laid down in the "United Nations Recommendations on the Transportation of Dangerous Goods (Orange Book)"

Market potential

The market forecast shows expected market demand, not maximum market demand. For the latter, we needed to visualize the level of market demand resulting from a very high level of industry marketing expenditure, where further increases in marketing effort would have little effect in simulating future demand as industry marketing expenditure approach infinitely for a given marketing environment.

Steps in Estimating Market Potential

Estimating the market potential for a business requires specific information on the number of people or potential buyers, an average selling price, and an estimate of consumption or usage for a specific period of time.

Key Steps in Estimating Market Potential:

1. Define your target market and market segments.
2. Define the geographic boundaries of your market. 3. Derive an average selling price. 4. Determine the average annual consumption.

Formula for Market Potential Estimating Market Potential: MP = market potential N = number of possible buyers P = average selling price Q = average annual consumption

MP=NPQ

Objectives of Research
The primary objective of the Research study is to know about the Market potential of Conductive Bags in India. With special regards of Shankar packagings ltd.

The secondary objective of Research study is to find out the Market position of Shankar packagings in national market for conductive Bags and to compare the position of Shankar packagings with its rivals.

Limitations of the Research Study

The first limitation of study is to difficulty faced to collect the data as I was targeted the rivals of Shankar packagings it was very difficult to collect the data. As the rivals of Shankar packagings was not convinced to give the authentic data. So it would be possible that research could be a tentative in nature.

As the sample size was taken 20 in Research it was limitation that 2 of the organizations are not producing conductive Bags and 3 of the organizations have not shown interest in giving the relevant information regarding the research.

Research methodology
Title of the study:
The title of the study is MARKET POTENTIAL OF CONDUCTIVE BAGS IN INDIA

Research Design:
In research exploratory research design have taken because result of research will be suitable for this kind of research design as research will generate somewhat new idea regarding the market potential and research has no predermined result with it. This is all about to know the market potential of conductive bags in Indian market. So from my point of view exploratory research design would be best suitable.

Data Collection:
Primary Data collection: To know about the market potential of conductive bags data will have to be collect from the market so data have collected from manufacturers of FIBC with the help of the telephonic interview with assistance of questionnaire.

Secondary data collection: In Research it was necessary to have the secondary data as well so research relevant data have collected from the various source of internet site as well as I have referred Shankars brochure as well.

Sampling Technique:
Sampling Technique was taken as Non Random Sampling.

Sample Size:
sample size is twenty.

Research tool:
questionnaire

Research Area:
Research area was INDIA

Time Duration:
The time duration of the project report is 45 days.

DATA ANALYSIS & INTERPRETATION

Table number one shows: age of the organizations
Sr. number 1. 2. 3. 4. criteria 0 to 5 years 6 to 15 years 16 to 25 years Above 25 years Number of Resonance 5 4 2 4

Table no. 2: shows the qualities of organizations which make them better than their rivals
Sr. number 1. 2. 3. 4. Options Quality assurance Brand image Service Reliability Response 10 2 8 5 Percentage 66% 13% 53% 33%

Qualities of organisation
12

10

0 Qualities of organisation

Quality assurance 10

Brand Image 2

Service 8

Reliability 4.5

Table number 3: Shows the industries which are the major users of conductive Bags

Sr. number 1. 2. 3. 4. 5. 6.

Options Food Chemical Cement Pharmaceutical Mineral Other

Response 5 8 3 10 5 1

Percentage 33% 53% 20% 66% 33% 7%

Table number 4: shows the average selling price of the conductive bags
Sr. number 1. 2. 3. 4. Options 250 to 300 301 to 350 351 to 400 above 400 Response 5 4 3 3 Percentage 33 27 20 20

Table number 5 : shows the satisfaction level of resonance in the current market position
Sr. number 1. 2. 3. 4. 5. Options Extremely satisfied Satisfied Neutral Dissatisfied Extremely dissatisfied
Options

Response 8 3 2 2 00

Percentage 53 20 13 13 00

20%

Extremely satisfied satisfied Neutral 54%

13%

Dissatisfied Extremely dissatisfied

13%

0%

Table number 6: Shows the response of organizations whether they are capable enough to compete their rivals
Sr. number Options Response Percentage

1.
2.

Yes
No

13
2

87
13

Shows the response of organizations whether they are capable enough to compete their rivals

13% Yes NO

87%

Table no 7: Shows the organizations competitive threats

Sr. number 1. 2. 3.
4.

Options Potential rivals Rising price of polypropylene Economic Downturn

Change in taste of customer

Response 2 15 3
00

Percentage 13 100 20
00

Table number 8: Shows the work done by organization to turn those threats in to the opportunities
Sr. number 1. 2. 3. 4. Options Market Research Expert opinion SWOT analysis To follow the rivals Response 9 2 2 2 Percentage 60 13 13 13

Shows the work done by organization to turn those threats in to the opportunities
Options

Market Research

Expert opinion

SWOT analysis

To follow the rivals

Table number 9: Shows the expectation of organizations from their potential customer.
Sr. number 1. 2. 3. 4. Options No negotiation Loyalty maintain relationship On time payment Response 4 3 12 2 Percentage 27 20 80 13

Shows the expectation of organizations from their potential customer.

12

10

8
Options

No Negotiation

Loyalty

Maintain relationship

On time Payment

Table number 10: Shows the organizations preference over customer

Sr. number 1. 2. 3. Options Loyal customer with less demand New customer with more demand First in first serves Response 10 3 2 Percentage 67 20 13

Shows the organizations preference over customer

Loyal cutomer with less demand

10

New customer with more demand First come first serve

ESTIMATION OF MARKET POTENTIAL

Sr. no. Name of the organization Potential price number of buyers 30 32 25 480 390 450 average quantity Market purchased by buyer potential (Tons') 36 32 30 518400 399360 337500

1. 2. 3.

Emmbi polymers ltd Kanpur plastic ltd. Jumbo bags limited

4.
5. 6. 7. 8. 9.

Shankar packagings limited

Texplast industries limited Bulk container limited Flexi tuff India limited Big bags limited Rishi FIBC limited

28
35 20 20 15 15

375
350 330 330 360 350

25
20 20 18 20 15

262500
245000 132000 118000 108000 84000

10.
11. 12. 13. 14. 15.

Muscat polymers limited

Vindhya polymers limited True pack international limited Maris associate limited Sub bulk container limited Polychornic petrochemical limited

18
15 12 4 10 8

290
300 300 740 280 300

15
14 15 16 12 11

78300
63000 54000 47360 33600 26400

FINDINGS
In last five years 33% of the new organizations have come up in market. Most of the organizations emphasis on Quality assurance and then after service. Chemical and Pharmaceutical Industries are major buyers of conductive Bags. Half of the organizations are extremely satisfied with their current market position. 100% of organizations do have threat of rising price of polypropylene and second is economic downward.

CONTINUE
80% of organization expect from their potential customers to maintain relation with them. 60% of the organizations prefer Market research to turn threats in to the opportunities. 1/3 the organization would like to serve loyal customers even though they have less demand. The market potential of conductive bags of Shankar limited ranked 4th in the market

RECOMMENDATIONS
Shankar Packing Ltd. should have to be more watchful on the market and its new rivals because by the time new rivals are getting more threatening and can affect their business as well. Apart from Quality assurance and service Shankar should also emphasize on reliability because if the customer start relying on you it shows you are increasing the loyal customer and their satisfaction level as well. As Shankar also having a threat of rising price of polypropylene. They should have to purchase polypropylene in bulk so that they can reduce the threat of the rising price of polypropylene.

CONTINUE
Shankar should have to develop the customer relationship management so that they can maintain the relationship with their loyal as well as new customers. As the Shankar have the policy of first come first serve instead of that they should have to be agile to getting order as per the demand of the customer so that they can generate more purchase order. As the analysis shows that the Shankar secures fourth position for market potential of conductive bags in India it is not that much of possible to be a number one but for that they should have to be more consistent and accurate in their business.

QUESTIONS

AND SUGGESTIONS

ARE WELCOMED

THANK YOU