SUMMER TRAINING REPORT

For
IDEAL FASTENER INDIA PVT LTD
By
SR.KHAIRUNNISA.

Reg No: 412816631046

Of
VALLIAMMAI ENGINEERING COLLEGE
Submitted to the
FACULTY OF MANAGEMENT STUDIES
In partial fulfillment of the requirements for the award of the degree
Of
MASTER OF BUSINESS ADMINISTRATION
ANNA UNIVERSITY CHENNAI – 600 025
JULY 2017

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 BONAFIDE CERTIFICATE

This is to certify that this summer training report is the bonafide work of

SR.KHAIRUNNISA. RegNo:412816631046 for IDEAL FASTENER INDIA PVT

LTD who carried out the work under my supervision. Certified further, that to the best of

my knowledge, the work reported herein does not form part of any other summer training

report on the basis of which a degree or award was conferred on an earlier occasion on

this or any other candidate.

______________________________ ______________________________

Mr. Anand M.B.A, M.COM, Ph.D Dr. J. Padmini M.B.A, Ph.D

Assistant Professor (O.G) Head of the department
Valliammai Engineering College Valliammai Engineering College
Kattankulathur Kattankulathur

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 DECLARATION

I, SR.KHAIRUNNISA. Student of the Department of Management Studies, Valliammai

Engineering College, Kattankulathur, declare that the Summer Training Report, for

IDEAL FASTENER INDIA PVT LTD is in partial fulfillment of Masters Degree of

Business Administration. This is my original work and not submitted for the award of any

degree, diploma, fellowship or other similar title or prizes.

Place: CHENNAI Signature of the Candidate

Date: 25-07-2017

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 ACKNOWLEDGEMENT

I would like to express my sincere thanks and gratitude to all those who made it

possible to complete this summer project. I am indebted to thank our principal,

Dr. B. Chidambararajan, M.E., Ph.D., for permitting me to do the summer training.

I furthermore thank the head of the department Dr.J.Padmini M.B.A., Ph.D for

the support and constant encouragement given to me.

I am deeply indebted to my project guide Ms.Anand MBA., M.COM., Ph.D

who gave valuable inputs and motivated me to complete this summer training internship.

I am bound to Mr. (name of the external guide) (department) of

M/S………….. for permitting to do the summer training internship in the company.

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 TABLE OF CONTENTS

CHAPTER NO. TITLE PAGE NO.

I INTRODUCTION

1.1 Profile of the Company

1.2 Vision, Mission statement
1.3 Product profile
1.4 Organizational chart
II PRODUCTION DEPARTMENT
2.1 Plant Location
2.2 Plant Layout
2.3 Production Planning Control (PPC)
2.3.1 Production Process
2.3.2 Machinery details
2.3.3 Type of production system
2.3.4 Flow chart
2.4 Quality policy & control
2.5 Maintenance
2.6 Inventory control & Management
2.7 Purchase
2.8 Materials Management

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CHAPTER NO. TITLE PAGE NO.

III HUMAN RESOURCE DEPARTMENT

3.1 Recruitment & Selection

3.2 Wages & Salary Administration
3.3 Performance appraisal
3.4 Industrial Relations
3.5 Training & Development
IV FINANCE DEPARTMENT

4.1 Capital Structure

4.2 Mobilization of funds
4.3 Cost of capital
4.4 Budgeting
4.5 Financial Statements
4.6 Dividend Policy
4.7 Investor Information
4.8 Working Capital
4.9 Credit Management
4.10 Collection Management
4.11 Costing

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CHAPTER NO. TITLE PAGE NO.

V MARKETING DEPARTMENT

5.1 Product Mix

5.2 Price Mix
5.3 Place Mix
5.4 Promotion Mix
5.5 Segmentation
5.6 Targeting
5.7 Marketing Strategies
5.8 Advertising Strategies
5.9 Sales Promotion
VI CONCLUSION

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 CHAPTER-1

INTRODUCTION

INDUSTRY PROFILE:

The study is conducted in IDEAL FASTENER INDAI PVT LTD The entire
organization is taken for the Study covering all the functional areas of the company. The
company was established in the year of 2006. The company has a great experience in
producing Zipper in all over the world they have the branches in some countries. The
company as the working hours around 8hours per day and they have the four kinds of
shifts along general shift. The raw materials will be getting from outside and then the
production process will takes place. The company will be producing three kinds of Zipper
like, Plastic, Polister and Metal for producing these three kinds of zipper will have
different process.

The project was carried out in MEPZ by observing the entire departments in the
company. It was good experience to learn and had lot of things to know from the
company. Then I have learned many new things which was not known already. The
company rules and regulation was strict for the workers in the company. All the employee
should compulsory follow the rules and regulation in the company. The company timings
for the employee were from 9a.m to 5.30pm for the day shift and the other four shifts will
have the different timings.

The company as around more than 18 to 21 section were they have the Security,
Dieing, Maintenance, Metal chain, Tools room, Antique, Auto line, Painting, Quality
Assurance, Open end assembly, close end assembly, Stores, Textile, Slider assembly, Die
casting, Despatch, Plating, CFC chain, HR, Textile process. The company as the much
equipment for doing the production.

Manufacturing industry in India exports:

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 Exports of manufactured goods in India accounted for 75% in comparison to
exports of manufactured goods all over the world. Owing to the performance manifested
by the export sector in India, the scenario indicates that there is less competition in the
manufacturing segment. Absence of competition is also established by the fact that in
spite of reducing the tariff in the early and mid 90s, India continued to be one of the
protected economies of the world. Contribution of India’s export towards international
market grew from 05% to 0.7% during 990 to 2000. During the same period, Malaysia,
China, Thailand and South Korea, registered almost double increase in exports.

So let’s take stock of India’s manufacturing sector as it is poised today – The

country is increasingly getting recognized for high value requiring a fair amount of
engineering precision and quality. No wonder then that the export opportunity of
industries such as auto components (US $ 25 billion by 2015), and textile (US $50 billion
by 2010) is mind boggling to say the least.

ENVIRONMENTAL POLICY:-

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Water: Minimizing waste and wastage means so much to us that we spend vast sums of
money in recycling and purifying the water used in our production plans.

Social Commitment: We support World AIDS day on 1 st of December every year. In

support of this we donate clothing and food to a local aids orphanage in our area.

Recycling initiative: We are proud to advise that together with the recycling companies
we a re committed to reducing wastage of paper, plastic and glass at all our office.

Scope of the study:

The major scope of the project is to learn about the overall activities of the various
department and have the exposure in private ltd.

The second scope is to understand the needs and requirements of the company in various
departments and their activities.

Various Departments:
 Human Resources department

 Production department

 Dieing department

 Quality Assurance

 Open end and Close end department

 Stores department

 Despatch department

HISTORY OF THE COMPANY

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Established in 1936 by Elie Gut, IDEAL Fastener Corporation is the second largest zipper
famous zipper manufacturer in the world.

Our constant evolution has included revolutionary products such as Everzip (1956),
landmark clients like the Astrodome (1964) and national recognition by the Smithsonian
(1991). During the past five years, IDEAL has expanded its worldwide presence by
opening numerous international production facilities and sales offices.

Throughout our history we have had one goal: to make IDEAL Fastener Corporation
synonymous with the best quality, service and innovation. IDEAL zippers are available
for every applications: pants, jeans, jackets, skirts, dresses, sportswear, outerwear,
skiwear, luggage and sporting goods.

BRANCHES:
1. Oxford, North Carolina USA

2. Santiago, Mexico

3. Jiangyin, Jiangsu, China

4. Dongguan, Guangdong, china

AWARDS:
Ideal Fasteners has got a certificate of ISO 9001/2000 and ISO 9001 / AS9100
Registered.

Notable Moments in Our Long History:-

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1936 - IDEAL Fastener Corporation is founded in New York.

1956 - On its 20th anniversary, IDEAL introduces Everzip, the snag free zipper.

1959 - IDEAL introduces Mytie Mite, #2.2 miniature zippers in brass and nickel.

1964 - IDEAL zippers are used to zip together the Astroturf football field at the Houston
Astrodome, Houston, TX.

1966 - IDEAL moves its manufacturing headquarters to Oxford, North Carolina, and
builds a state-of-the-art zipper manufacturing facility.

1972 - IDEAL acquires Prentice Zipper Company, a leading zipper manufacturer of metal
zippers for work-wear and denim jeans.

1985 - IDEAL manufactures the longest zipper in the world with over 12,640 teeth and
presents it to President Ronald Reagan.

1989 - IDEAL acquires Acme Die Casting & Slider Company.

1991 - On the fiftieth anniversary of US entry into WWII, IDEAL is recognized by the
National Air and Space Museum of the Smithsonian Institute, Washington, DC.

1996 - IDEAL acquires Scovill Zipper and Conmar Zipper from Scovill Fasteners.

1997 - IDEAL establishes IDEAL Fastener Asia Ltd., in Hong Kong.

2001 - IDEAL opens sales offices in Bangladesh, Dubai, India, Indonesia and Taiwan.

2001 - IDEAL highly technical and fire retardant zippers are used by NASA to launch the
TITAN IV missile.

2002 - IDEAL opens sales offices in Korea and Pakistan.

2005 - IDEAL opens sales office in The Netherlands.

2006 - IDEAL opens factories in Chennai, India and Jiangsu, China.

2007 - IDEAL opens sales office in the United Kingdom and Italy.

2008 - IDEAL opens sales offices in Vietnam, Thailand and Sri Lanka.

2013 - IDEAL opens factory in Jakarta, Indonesia.

1.1PROFILE OF THE COMPANY:

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 IDEAL Fastener Corporation was established in 1936 in New York and today we
have grown as a second largest zipper manufacturer in the world. Our zippers are used for
numerous applications such as apparel, automotive, furniture, luggage, military, and
specialty. Our zippers are offered in a vast collection of styles, colors and materials, as
per customer’s specifications. Innovation is the field where we truly excel. We provide
our customers with the best zipper products in the market. During the past decade our
company has a wide network of international production facilities and sales offices. We
run our factories, offices and distribution facilities in over 20 countries in North and
Central America, the Middle East, Europe, the Far East and Asia.

Our client list includes reputed apparel brands and retailers in United States and
Europe, world’s premiere luggage manufacturers, and US Armed Forces. We are able to
design as per the customer’s requirements just because of our committed engineering
team. Our customers receive the most technologically and sophisticated zippers in the
market as we prefer to do rigorous research and development. We are always committed
to excellence and doing everything at our best to ensure customer’s satisfaction. Quality
Assurance At IDEAL, we believe to be independent rather than being dependent on
outside resources.

IDEAL owns and operates 7 factories worldwide (over 2 million square feet of
manufacturing space). 100% vertical company-owned manufacturing facilities.

 Weaving factory,
 Dye house,
 Plating factory,
 Precision testing lab.
 Slider Making.
 Chain Making
 Zipper Assembly

1.2 VISSION MISSION STATEMENT:-

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OURVISION:
We Aspire to…

 At Brochures Montreal, we are totally committed to continually providing our

clients with the best possible products, customer and after-sale service.

 Moreover, we plan to continue investing in the diversity of our products in order

to satisfy the needs of both our individual and corporate client base.

 In order to meet our objectives, we commit ourselves to maintaining an industry-

leading website and to make it an indispensable source of information for our
client base.

OURMISSION:

To conduct our professional dealings with honesty, integrity and within the highly
ethical and moral standards that we have set for ourselves.
To ensure the safety of all our employees by providing them with machinery that
has been specially adapted with their health and safety as a priority consideration.
To distance and disassociate ourselves from any supplier or other party who
benefits from or makes use of child labor practices.
To positively contribute to the development, motivation and success of all our
stakeholders by putting in place systems that are designed to develop our employees to
their full potential.

1.3 PRODUCT PROFILE:

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 Our worldwide network and distribution facilities mean that our customers get
consistent quality worldwide. Our staff is always focused on one goal i.e. customer’s
satisfaction. Our expertise in customization is unmatched—from custom color matching,
to unique sliders and pulls, we can create nearly any zipper our customers require. We
develop new molds and special custom tapes usually in 3-4 weeks. IDEAL is a large
company we embody the family values of integrity and service; in other words, large
company expertise with small company attentiveness. At IDEAL we are committed to
excellence and doing everything in our power. If you need it than we can build it, nothing
is impossible for our team to ensure success.

 Quality: Unquestionable quality and the highest standards throughout our

products range.

 Integrity: Our world is our bond and our products prove it.

 Relationship: Time, Care, Commitment. Our business relationships are the corner
stone of our success.

 Service: Personal, Professional. We make it happen for you.

 Price: The best quality products at competitive price.

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1.4 ORGANIZATION CHART:-

EXPLANATION:
This is the organizational chart for this company. Under the chief executive
officer have the five separate departments like Marketing Plant Head Quality Personnel
and Stores & Purchase then under the Plant. The last level is under the Production have
five departments like Textile Processing, Metal Chain, Assembly and Painting.

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 CHAPTER-2

PRODUCTION DEPARTMENT

2.1 PLANT LOCATION:

IDEAL Fastener India Pvt Ltd

C-5, Phase II, 3rd Main Road,

Madras Export Processing Zone,

Special Economic Zone,

Tambaram, Chennai,

Tamil Nadu 600 045

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2.2 PLANT LAYOUT:

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2.3 PRODUCTION PLANNING CONTROL:
Production planning control is required for scheduling, dispatch, inspection,
quality management, inventory management, supply management and equipment
management.

Production control ensures that production team can achieve required production
target, optimum utilization of resources and quality management of cost savings.

2.3.1 PRODUCTION PROCESS:-

POLYESTER ZIPPER:

The key elements required for making a zipper is a stringer which consists of a
tape and teeth assembly, a slider to open and close the zipper and a tab to pull the slider.

A separating zipper has a box and a pin instead of a bottom stop.

The tapes are made either of cotton or polyester or a blend of both.

METAL ZIPPER:

The stringer is made by passing a wire through a rolling mill to form a Y shaped
wire.

The tooth is then punched into a scoop with a die and is put in a slot on a rotating
turntable.

PLASTIC ZIPPER:

Stringers for plastic zippers are similar to metal ones.

Two methods are prevalent to make plastic zippers.

In the first method, a round plastic wire is fed in between two heated screws.

In the second method, both left and right spirals are made from the same machine.

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2.3.2 MACHINERY DETAILS:

The supply of zippers, sliders, and zipper making material. Customized zippers
and sliders are available.

Zipper and slider making machine, all relevant spare parts, moulds and
equipment.

Special requirements for zippers and sliders are available by advanced order. Such
as colorfastness, AZO free, nickel free, low lead… etc

MACHINES USES FOR ZIPPERS:

 Zipper chain forming machine

 Zipper sewing machine
 Dyeing machine
 Plastic-injection zipper machine

SLIDER ASSEMBLY MACHINE

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ZIPPER MACHINE

21
ZIPPER CHAIN FORMING MACHINE

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 CLOTH SWEING MACHINE

PLASTIC INJECTION MACHINE

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2.3.3 TYPES OF PRODUCTION SYSTEM:-

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 Plastic Molded Zippers
 Polister Zippers
 Metal Zippers

PLASTIC MOLDED ZIPPERS

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 POLISTER ZIPPERS

METAL ZIPPERS

2.3.4 FLOW CHART:

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This will define the process flow chart for the company how it manufactured from
starting to an end. So that we can easily identify the process how a zipper is
manufactured which the process is based on all of the departments which represented in
the organizational chart. In this flow chart first it has the store and textile. Storing the raw
materials will be useful for the production process so the materials have been stored then
the textile process they will be having the colors based on the customer choice the color
will be chosen for the manufacturing in the textile processing.

In the textile processing they will be dieing the colors then it will be send for metal chain
process in this the tap like structure will be made and in that they will be having close end
and open end zips then it as metal finish process and then assembly after that inspection
in this the damage pieces will be rejected then the quality will be measured and finally it
will be send to dispatch.

STORES TEXTILES

CFC TEXTILES
PROCESSING

METAL
CHAIN

METAL
FINISH

PAINTING ASSEMBLY

INSPECTION

QUALITY

2.3.4 QUALITY POLICY OF CONTROL:

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We are committed to achieve total customer satisfaction through vigorous involvement of
our workforce and continual improvements of our business processes.

Our quality policy and quality objectives will be reviewed periodically to ensure their
continuing suitability and to drive quality improvement.

We are always committed to work closely with our suppliers as they make the road for us
to achieve our mission.

With the commitment of top management and through the active involvement of all
employees continually improve the effectiveness of our quality management.

There will also be communicated internally to ensure understanding and to define

accountability at all levels of the company.

2.5 MAINTAINENCE:

The system department in the plant solved network problems as well as computer
problems. Regular backups were taken daily, weekly and monthly for providing
reliability in the SAP system.

Proper authentication was given to each department members using a user ID and
passwords.

Attendance will be maintaining in security room and HR office.

Leave records, company timings, wages, salary, and bonus, are maintained in note
correctly.

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2.6 INVENTORY CONTROL & MANAGEMENT:-

 Static and dynamic models

 Selective control

 Inventory control under constrains

 Store functions and records

 Fundamental of supply chain management

 Spare parts

 In- process inventory.

2.7 PURCHASE:-

IDEAL purchase only the slider machines and the all production inside the
company itself.

2.8 MATERIALS MANAGEMENT:-

ZIPPER MATERIAL:

 Metal tooth zippers

 Molded tooth zippers

 Coil tooth zippers

 Water resistant zippers

 CHAPTER-3

HUMAN RESOURCE DEPARTMENT

3.1 RECRUITMENT & SELECTION:

The IDEAL candidate should:

1) Be self Motivated/able to work independently.

2) IDEAL has handled over 100 projects, both globally as well as in India and
is a leader in this space and hire over above 20-25 people every year.

3) IDEAL recruiting solutions that optimize candidate quality, improve time to

hire, significantly reduce hiring cost.

4) Our proven global recruitment solutions for permanent and blended

workforces are designed to improve productivity and business performance.

OUR IDEAL MODEL INCLUDES:

 Scalable, Global delivery model

 Unique virtual recruiting network
 Selective materials

SELECTION:
 Both educated and uneducated
 Age minimum 18 years should be completed
 Training for the period of 6 to 1year
 Medical certificate and school certificate to be submitted
 Following the company rules
3.2 WAGES AND SALARY ADMINISTRATION:

Procedures for wages Fixation:

The employees always have high expectations regarding their compensation

packages. Compensation packages vary from industry to industry. So an attractive
compensation package plays a critical role in retaining the employees.

Compensation includes salary and wages, bonuses, benefits, prerequisites, stock

options, bonuses, vacations, etc. While setting up the packages, the following
components should be kept in mind.

Salary and monthly wage:

It is the biggest component of the compensation package. It is also the most

common factor of comparison among employees. It includes;

 Basic wage

 House rent allowance

 Dearness allowance

 City compensatory allowance

 Education fee for employee children

 Monthly without taking leave incentives

Wages increment & incentives and its administration:

Salary increases recognize the employee’s contributions to the achievement of

the organization’s objectives. In most organizations, salaries are reviewed annually. It
does not mean everyone is guaranteed an increase every twelve months. The systematic
review of salaries is facilitated by having all the necessary information presented in a
logical format. In most organizations, merit increases are a composite of payments for
merit, cost of living and inflation. The system used will depend on factors such as the
organization’s strategic objectives, culture, compensation philosophy, business results,
competitiveness in the salary market and the age and growth rate of the organization

Structure of the organization:

Unskilled workers Rs. 366 per day

Semi skilled workers Rs. 398 per day

Skilled workers Rs. 547 per day

Supervisors / Clerical Rs. 594 per day

3.3 PERFORMANCE APPRAISAL:

The performance is measured against such factor as;

 Job knowledge
 Quality
 Quantity of output
 Initiative
 Supervision etc…

Performance appraisals describe the job relevant strengths and weakness

of each individual.

Administration of the above methods and its problems:

HR Managers are responsible for conducting substantive discussions and

taking conclusive performance-related actions. These actions include selecting or

 Developing performance plans,

 Communicating outcomes and expectations to employees,
 Establishing employees' development plans,
 Providing performance-related feedback to employees at prescribed
intervals,
 Preparing end of summaries etc..
3.4 INDUSTRIAL RELATION:

Study on standing order of the organization and its administration:

IDEAL FASTENER SYSTEM

1.1 APPLICATION:

These Standing Orders apply to all persons who come within the definition of ‘Workman’
in the Industrial Employment ( Standing Orders) Act, 1946.

1.2 DEFINITIONS:

In these Standing Orders unless there is anything the subject or context:-

(a) “Company” means IDEAL Fastener System

(b) “Management” means the Company’s Managing Director and includes all officers
to whom any of the functions, in relation to which the term used in these Standing
Orders, is delegated by the Managing Directors.

(c) A “Casual” workman is one whose employment is of a casual nature.

(d) “Leave Salary” means the amount paid to a workman for the period.
3.5 TRAINING AND DEVELOPMENT:

Techniques used to assess the training needs of the organization and

preparation of training budget and its calendar:

 Get the details of a training program

 Assess the need for providing the training of that particular program

 Sending suitable candidate/s concerned in that particular stream or area for the
program.

Training Methods practiced in the organization:

 Co-ordinate with seniors about training schedule

 Inform Trainers about the training schedule

 Get the trainers feedback form filled from Trainees

They also maintain monthly training programmers were conducted to develop the
employee’s knowledge in the job.

 In company efforts.
 Out company efforts.
 Factory visits.
 Apprenticeship training.
 In plant training, project work
 CHAPTER-4

FINANCE DEPARTMENT

Functional Areas of Finance Manager:

 Determining Financial Needs

 Selecting the Sources of Fund
 Financial Analysis and Interpretations
4.1 CAPITAL STRUCTURE:

Capital Structure (IDEAL FASTENER)

Period Instrument Authorized Issued - PAI D U P -

Capital Capital

From To (Rs. cr) (Rs. cr) Shares (nos) Face Capital

Value

2015 2016 Equity Share 325 121.77 608852126 2 121.77

2014 2015 Equity Share 325 120.44 602195408 2 120.44

2013 2014 Equity Share 325 117.14 585687862 2 117.14

2012 2013 Equity Share 325 58.47 292327390 2 58.47

2011 2012 Equity Share 325 56.65 283270748 2 56.65

2010 2011 Equity Share 325 27.48 137385777 2 27.48

2009 2010 Equity Share 325 25.98 129924182 2 25.98

2008 2009 Equity Share 325 24.88 124401796 2 24.88

2007 2008 Equity Share 325 249.06 248668756 10 248.67

2006 2007 Equity Share 325 249.05 248660346 10 248.66

2005 2006 Equity Share 325 249.05 248650346 10 248.65

2004 2005 Equity Share 325 248.95 248545098 10 248.55

2003 2004 Equity Share 325 248.95 248516393 10 248.52

4.2 MOBILIZATION OF FUNDS:

  Activities which are not likely to generate revenue

 Activities which would have a revenue stream or could be sponsored.

 Activities which would require capital investment but would generate

substantial revenue.

4.3 COST OF CAPITAL:

The cost of capital is the rate of return that capital could be expected to earn in
the best alternative investment of equivalent risk; this is the opportunity cost of capital. If
a project is of similar risk to a company's average business activities it is reasonable to
use the company's average cost of capital as a basis for the evaluation. However, for
projects outside the core business of the company, the current cost of capital may not be
the appropriate yardstick to use, as the risks of the businesses are not the same.[

4.4 BUDJETING:
Budgeting is an important component of financial success. It's not difficult to
implement, and it's not just for people with limited funds. Budgeting makes it easier for
people with incomes and expenses of all sizes to make conscious decisions about how
they'd prefer to allocate their money. It can also help people save for retirement,
emergencies, a new car or just about anything.

4.6 DIVIDEND POLICY:

 The Directors recommend payment of dividend of Rs 14.50 per equity share of
Rs 2/- each.
DEPOSITORY SYSTEM:
As the members are aware, the Company’s shares are compulsorily tradable in
electronic form. As on March 31, 2016, 83% of the Companies total paid-up Capital
representing 20,00,0000 shares is in dematerialized form. In view of the numerous
advantages offered by the Depository system, members holding shares in physical mode
are advised to avail of the facility of dematerialization from either of the Depositories.
CAPITAL & FINANCE:
During the year under review, the Company allotted 25,674525 equity shares
upon exercise of stock options by the eligible employees under the Employee Stock
Option Schemes.

Further the Company tied up long term foreign currency loans equivalent to
approximately USD 25 Billion, half of which was drawn during the year, the balance
to be drawn in 2016.

4.9 CREDIT MANAGEMENT:

1. Distributors:
Money is collected from Distributors on cash and carry basis The company has tie
up with banks where they are financed through a bank; a policy known as channel
financing.

2. OE Customers:
For these customers, IDEAL is paid by the bank on the date of invoicing and the
customers pay to the bank on due date as per terms of credit sales. Bank financing
charges at an agreed rate of 9% is borne by IDEAL.

3. Tender Sales:
Maximum of 45 days credit are extended for these customers. Credits are secured
by LC or bank guarantee if it is felt necessary.

4.10 COLLECTION MANAGEMENT:

  IDEAL FATENER recommends customers along with their credit limits and
provides necessary details to INDAIN BANK.
 New India Assurance Co Ltd. will do a credit appraisal and inform IDEAL
FATENER the percentage of whole turnover that they will insure(insurable
turnover) & charges IDEAL a premium on insured turnover.
 INDIAN BANK does a credit appraisal and informs the company about the
category in which the customer shall fall.
 On completion of the documentation, the transaction starts.
 IDEAL sends a soft copy of the invoices uploaded through Ethernet and follow
up mails.
 The company retains the original invoices with it.
 The Bank makes the payment to the company for the sale value on behalf of the
customer.
 The Bank deducts invoice discounting charges from the companies account for
the number of days of discounting made.
 The Bank confirms the transaction through MIS reports to IDEAL.
 The Bank receives the payment from the customer after the expiry of the credit
period.
 The company has entered into an insurance arrangement with New India to
safeguard its interest in case of a default being made by the customer to pay the
bank after the expiry of the credit period.

4.11 COSTING:
 TheMinistry of Corporate Affairs (MCA) has introduced The Companies (Cost
Audit Report) Rules, 2015 vide its notification no GSR 430(E) dated June 3, 2011. These
rules make it mandatory for industries to appoint a Cost Auditor within 90 days of the
commencement of the financial year. The Cost Audit Order No. 52/26/CAB/2010 dated
January 24, 2016 covers engineering machinery (including steel products & Machinery
spare products) due to which some of the Company’s manufacturing operations will get
covered W.e.f. April 1, 2016.

Based on the Audit Committee recommendations at its meeting held on May2,

2016, the Board has approved the appointment of M/s R.CHOUDRY as the Cost Auditors
of the Company for the financial year 2015-2016, subject to approval of the Central
Government.

CHAPTER-5
 MARKETING DEPARTMENT

5.1 PRODUCT MIX:

The word “product” implies either a physical object or service rendered to customers.
The first component in 4Ps of marketing mix is “product”. This includes many attributes
such as variety, quality, design, features, brand name, packaging, size, service, warranty,
repairs etc. Each and every product in market is having its own product lifecycle. This
life cycle will have both boom and doom stage. To be a key player in market IDEAL are
having their own research and development team operating in many parts of the country.
Continuous process of product development and innovations keep it as lively players in
market.

5.2 PRICE MIX:

Pricing is an important indicator which decides the bottom line of any organization. The
major attributes of price are list price, discounts, allowances, payment period, credit
terms etc..

5.3 PLACE MIX:

This is a highly significant aspect in arriving at the selling decisions. Many factors are
involved in explaining place few of them are medium, area covered, place where the store
is located, goods transit etc. They are well conscious about their places of trade and
studying the market for many years, confining the new brands to enter the market place.

5.4 PROMOTION MIX:

Promotion is a method of creating the consumer consciousness of the scrupulous product

or a service. This expenditure is in a straight line to sale amount. There are a variety of
features illuminating the endorsement of a meticulous product. They are marketing,
advertising, persons employees for sales, civic affairs, direct marketing etc.
 MIX VARIABLES OF INDUSTRY

5.5 SEGMENTATION:
 A market segment is a small unit within a large market comprising of like minded
individuals.

One market segment is totally distinct from the other segment.

A market segment comprises of individuals who think on the same lines and have
similar interests.

The individuals from the same segment respond in a similar way to the
fluctuations in the market.

Segmentation comprises identifying the market to be segmented; identification,

selection, and application of bases to be used in that segmentation; and development of
profiles.

Positioning comprises identification of optimal position and development of the

marketing program.

5.6 TARGETING:

 Criteria size

 Difference

 Money

 Accessible

 Focus on different benefits

5.7 MARKETING STRATEGIES:

 Market penetration strategy

 Market development strategy
 Product development strategy
 Diversification

Market Penetration Strategy:

The strategy involves achieving growth through existing products in existing

market. IDEAL market penetration strategy involves its expanding its customer base in
the existing market.

Market Development Strategy:

This strategy is concerned with creating business through developing new markets
with existing products in hand. The major brands are using this strategy to capture new
and unexplored sectors without creating new products. They are now shifting their focus
from urban to rural markets and smaller towns. They are capturing the market of small
masons and engineers in rural areas.

Product Development Strategy:

Product development deals with producing new products for the existing customer
base. These Industrial companies have vastly capitalized on this strategy by constantly
coming up with newer products.

Diversification Strategy:

Diversification is a very important part for any business organization. It is the

development of new products by using the older technology directed for the benefits of
newer segments. Many Industrial engineers have identified a segment for the civil
engineers where the product plays a vital role in market.
PORTER GENRIC STRATEGIES:

As the strategic planners we have decided to use the Porter’s generic strategy to
understand what would be our strategy move to enter this particular industry. The scope
of the Industrial industry is narrow as there are many players in the market.

PORTERS 5 FORCES MODEL:

5.8 ADVERTISING STRATEGIES:
 Target the audience

 Measure and track the advertising

 Know when to advertise

 Brand well

 Use your resources well

 Show up in the right places.

5.9 SALES PROMOTION:

Sales promotion includes several communications activities that attempt to
provide added value or incentives to consumers, wholesalers, retailers, or other
organizational customers to stimulate immediate sales.

Sales promotion implemented to attract new customers, to hold present customers,

to counteract competition, and to take advantage of opportunities that are revealed by
market research.

CONSUMER SALES PROMOTION TYPES:

 Price deals

 Loyal reward program

 Cents-off deal

 Price-pack

 Coupons etc….
 CHAPTER-6

CONCLUSION
Employee motivation is a very important concept in every organization. Each and
every employee is considered as a valuable asset in the organization. Organization work
out a strategy of combining intrinsic and extrinsic rewards for individuals and teams.
Training is offered to boost expectancy and linking valet our comes to high performance.
The employees in IDEAL FASTENER are satisfied and highly motivated in their jobs.
Understanding employees needs and building their skill and confidence leads to
motivation and trust. Devoted and loyal employees are rewarded by giving trophies and
other forms and recognition. The problem with human relations is this undue reliance on
social contacts at work situation for motivating employees. Social contacts, though
desirable by themselves will not help motivate workers. Managers should be sensitive to
individual difference. Employee should have firm, specific goals, and they should get
feedback on how well they are fairing in pursuit of those goals.

 A bit more promotional activities could enhance building brand image

 Maintain a healthy relationship with trade unions.
 Workers should be given chances to express their ideas through
suggestions system and quality control.
 BIBLIOGRAPHY
BOOKS REFFERED:
 Kothari. C.R, “Research Methodology”, Wishwa Prakasham, 1999.

 Ashwathapa K., Human Resources Management (third edition), Tata Mc Graw

Hill Publication Company Ltd.

 S.Stephen Rabin, Organizational Behavior, 8th edition 2000, Himalayan

Publishing house

WEBSITES REFFERED:

 http://www.hrsdc.gc.ca/en/cs/sp/hrsd/prc/publications/research/2000-
002584/page03.shtml.

 http://www.mckpeople.com.au/Sitemedia/w3svc161/Uploads/Documents/2
aflel30-34a7-4c38-9415-b7fala52c.pdf.

 http://www.referenceforbusiness.com/small/Di-Eq/Employee-
Motivation.html#ixzz2MjJ6PHfl