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CHAPTER - 1

1.1 INTRODUCTION TO THE STUDY

The new millennium is going to be the millennium of the

knowledge. Paper manufacturing and book printing mark the beginning

of the knowledge revolution. The amount of paper consumed is one of

the yardsticks of economic development. Paper is one of the

necessities of civilisation and it is almost impossible to imagine the

continuance of a world without a printed books and news papers.

Indian Paper Industry is worth Rs.225 billion. Indian Paper

Industry accounts for about 1.6% of the world’s production of paper

and paperboard. Indian Paper Industry has a production capacity of

90 lakhs tonnes per annum and requires additional $2 billion of

investment to meet the rising demand.

The domestic demand for paper is set to for surpass supply, with

the growing emphasis on education and alternative uses of paper. India

has emerged as fastest growing paper market in the world showing a

10% growth in per capita consumption from 7.5 kg in 2007 – 2008, the

figure has gone up to 8.3 kg in 2008- 2009.

India is the second largest populated country in the world and

the awareness towards education broadens the demand of the paper.

Though demand of paper is increasing the usage of paper has declined


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due to paperless office like mail transfer and storage of data in

electronic devices. SPB Ltd is one of the leading public limited

company situated near banks of river Cavery which performs well and

profit of the concern is also good.

Even though there is a stable demand for Indian paper industry,

the usage of paper has declined. Hence the study was undertaken in

SPB Ltd to know both monetary and nonmonetary factors. The

research study contains the analysis of ratio analysis, employee job

satisfaction and BCG matrix and this reveals the position of SPB Ltd.
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1.2 INDUSTRY PROFILE

PAPER:

Paper is essential requirement of modern life. The word "paper"

is derived from the word "papyrus," which was a plant found in Egypt

along the lower Nile River. About 5,000 years ago, Egyptians created

"sheets" of papyrus by harvesting, peeling and slicing the plant into

strips. The strips were then layered, pounded together and smoothed

to make a flat, uniform sheet.

ORIGIN OF PAPER:

The paper was first invented in china by Ts'ai Lun(about 104

CE). He took the inner bark of a mulberry tree and bamboo fibers,

mixed them with water, and pounded them with a wooden tool. He then

poured this mixture onto a flat piece of coarsely woven cloth and let the

water drain through, leaving only the fibers on the cloth.

Papermaking is considered to be one of the Great Inventions of

Ancient China, since the first papermaking process was developed in

China during the early 2nd century CE by the Han court eunuch Cai

Lun. China used paper as an effective and cheap alternative to silk,

letting them sell more silk, leading to a Golden Age.


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The use of paper spread from China through the Islamic world,

and entered production in Europe in the early 12th century. By the end

of the 7th century, process of paper making reached India. Mechanized

production of paper in the early 19th century caused significant cultural

changes worldwide.

PAPER INDUSTRY:

Indian Paper industry is the 15th largest paper industry in the

world. The first paper mill in India was set up at Sreerampur, West

Bengal, in the year 1812. The government regards the paper industry

as one of the 35 high priority industries of the country.

Paper industry is primarily dependent upon forest-based raw

materials. In 1951, there were 17 paper mills, and today there are

about 525 units engaged in the manufacture of paper and paperboards

and newsprint in India. Government has completely delicensed the with

effect from17th July, 1997. The pulp & paper industries in India have

been categorized into large-scale and small-scale. Those paper

industries, which have capacity above 24,000 tonnes per annum are

designated as large-scale paper industries.

The Indian Paper Industry is among the top 15 global players

today, with an output of more than 6 millions tones annually. The

estimated turnover of the industry is Rs 25,000 crores approximately


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and its contribution to the exchequer is around Rs. 2918 crores. Most

of the paper mills are in existence for a long time and hence present

technologies fall in a wide spectrum ranging from oldest to the most

modern.

With added capacity of approximately 0.8 million tons during

2007-08 the operating capacity of the industry currently stands at 9.3

million tons. During this fiscal year, domestic production of paper and

paperboard is estimated to be 7.6 million tons. As per industry

guesstimates, over all paper consumption has now touched 8.86

million tons and per capita consumption is pegged at 8.3 kg.

DEMAND IN PAPER INDUSTRY:

Demand for paper, including writing, printing, industrial and

newsprint varieties, is growing at around 10% in India. Demand for

paper in India is projected to grow at a compounded annual growth rate

of 6.10 per cent from 2004-05 to an estimated 7.4 million tonnes in

2008-09. It is said that if the GDP grows at 10%, paper demand grows

at 8%. The per capita consumption of paper in India is barely 8 kg.

One of the demand drivers is the Government's commitment to

education and has increased the total outlay to that effect. A reduction

in excise duty on printing, writing and packaging papers from 12 per

cent to 8 per cent, robust GDP growth, increasing export thrust and the
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presence of a large modern retail formats and convenience stores also

will drive demand. So far, the growth in paper industry has mirrored the

growth in GDP and has grown on an average 6-7 per cent over the last

few years.

India is the fastest growing market for paper globally and it

presents an exciting scenario; paper consumption is poised for a big

leap forward in sync with the economic growth and is estimated to

touch 13.95 million tons by 2015-16. The industry growth, pegged now

at 7-8 percent annually, due to socio-economic development,

increasing literacy rates and increased government spending on

education.

The futuristic view is that growth in paper consumption would be

in multiples of GDP and hence an increase in consumption by one kg

per capita would lead to an increase in demand of 1 million tons. As per

industry estimates, paper production is likely to grow at a CAGR of

8.4% while paper consumption will grow at a CAGR of 9% till 2012-13.

Thus Indian paper industry has potential and also capabilities to

service the growing demand in domestic and international market and

also to create huge employment avenues in the rural-India through

agro/production – forestry and at mills, provided the competitiveness of

the value chain is encouraged by the government.


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1.3 COMPANY PROFILE

SESHASAYEE PAPER AND BOARDS LTD is one of the

leading paper industry in India. It is situated near the bank of river

Cauvery of Pallipalayam in Namakkal district of Tamil Nadu.

SPB is the flagship company of the "Esvin Group", a group that

consists of Esvin Advanced Technologies Ltd, Ponni Sugars (Erode)

Ltd, High Energy Batteries (India) Ltd and SPB-PC Ltd. SPB,

incorporated in June 1960, was promoted by Seshasayee Brothers

(Pvt) Limited in association with a foreign collaborator M/s Parsons and

Whittemore, South East Asia Inc., USA. Sri S Viswanathan was the

Founder of the Company. After commencement of commercial

production, having fulfilled their performance guarantee obligations, the

foreign collaborators withdrew in 1969. Main promoters of the

Company as on date are a group of companies belonging to the ESVIN

group headed by Mr. N Gopalaratnam.

VISION:

To excel as a trusted, socially responsible and customer driven

organization providing maximum value to all stake holders.


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MISSION:

To manufacture quality products at competitive cost through

technology and team work.

COMMUNITY DEVELOPMENT:

SPB is actively and effectively involved in the social, economic

and cultural development of the communities surrounding its

production facilities. Its community development measures include

 providing Protected and treated drinking water through a

network of about 240 water taps and 4 overhead tanks.

 Provision of Community Health Centres with a full-time

qualified physician, paramedical staff and free medical

facilities.

 Providing Education from the primary up to the secondary

level.

 Construction of rain water harvesting structures, public toilets,

village roads and culverts.

 Organising yearly Blood donation and eye camps.

Q-E-E-H-S POLICY:

SPB are committed to continually improve Quality, Environment,

Energy, Occupational Health and Safety Management Systems with a

view to promote:
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 trust of customers and other stakeholders

 abatement of pollution

 efficient use of energy and other resources

 well being of employees and safety of occupational work place

 competence and effective participation of all employees and

 service providers and

 compliance of all applicable legal and other requirements

Q-QUALITY S-SAFETY

Q-E-E-H-S
POLICY

E- ENVIRONMENT H- HEALTH

E-ENERGY

ISO 9001/ IS0 14001 ACCREDITATION:

The Company's quality systems continue to be covered by the

"ISO 9001" accreditation awarded by Det Norske Veritas, The

Netherlands. The Company has also been accredited with "ISO

14001" certification by Det Norske Veritas, The Netherlands, for its

Environmental Quality Systems.


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RAW MATERIALS:

In SPB Ltd wood and bagasse are the main raw materials for

producing paper. Apart from wood and bagasse mill uses waste paper.

Bagasse is the unconventional raw material for producing paper

which is used to reduce the wood consumption. The mill is procuring

bagasse from Ponni sugars, which is nearby SPB Ltd supplies about

60% bagasse and other 40% is procuring from other sugar mills in

Tamil Nadu.

Wood varieties used in SPB Ltd – eucalyptus, casurina, hybrid.

The mill is procuring wood requirement from government and other

sectors.

PRODUCTS:

SPB produces a wide range of products such as printing and

writing papers, packing and wrapping papers and speciality papers.

SPB also has branded products namely, "SPrint", "Colour Sprint",

"Index", Sprint Plus", "Success" etc. Around 70 varieties of paper are

produced in SPB Ltd.

SPB produces high quality papers which are largely demanded

in national and international market. The motto of the company is zero

defect and zero complaint. The company has well developed


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marketing, sales, research and development section. The current

installed capacity of the Company stands at 1,15,000 tonnes per

annum.

LIFT IRRIGATION:

SPB introduced an innovative scheme for using its treated

effluent. Instead of letting water into the river, SPB diverts its treated

water for the cultivation of sugarcane, which has converted the

surrounding dry lands into wetlands providing a vast green belt. SPB

has entered into a tripartite agreement with the local farmers society

and its sister concern Ponni Sugars (Erode). Under this agreement the

treated water from SPB is supplied free to the local farmers for the

cultivation of sugarcane. The farmers in turn sell the sugarcane they

produce to Ponni Sugars. Ponni Sugars uses the sugarcane to produce

sugar and supplies its by-product bagasse to SPB.

SPB

PONNI FARMERS
SUGARS
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This unique model has transformed the livelihood of the local

farming community and has provided a reliable and continuous supply

of essential raw material for not only SPB but also Ponni Sugars.

CONTRACT FARMING:

SPB launched the Contract Farming Programme under which

SPB provides technical expertise for growing Eucalyptus and

Casuarina wood by marginal farmers with buy back guarantee. Over

20,000 acres of land are covered under the scheme.

WORLD CLASS MANUFACTURING:

WCM is a unique concept to achieve enterprise excellence

characterized by

 Zero complaints
 Zero defects
 Zero pollution
 Zero accident
 Zero breakdowns
 Innovativeness
 Cost effectiveness

CHAPTER – 2

MAIN THEME OF THE PROJECT


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2.1 RESEARCH PROBLEM

Paper industry is facing various problems like scarcity of raw

materials, government policy, pollution and the demand for paper is

reducing due to paperless office. In spite of these, SPB Ltd performs

well. Hence, the researcher made an attempt to study the general

performance of SPB Ltd.


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2.2 RESEARCH OBJECTIVES

PRIMARY OBJECTIVE:

 To study the financial, human resource development and

marketing analysis of SPB ltd.

SECONDARY OBJECTIVE:

 To study the ratio analysis of SPB ltd.


 To study the job satisfaction of employees.
 To analyse BCG matrix of SPB ltd.
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2.3 RESEARCH METHODOLOGY


Research is an art of scientific investigation. Research is a

common parlance refers to the search of knowledge.

Research Design:

Both Analytical and Descriptive research design has been

adopted to conduct the research study. Analytical research is the use

of facts or information already available. Descriptive research is

concerned with describing the particular characteristics of individual or

a group.

Sampling technique:

Simple Random Sampling is used for collecting the data.

Sample size:

The sample size is 140 and questionnaire is being collected

from 140 employees.

Time Period of the Study:

The undertaken study covers a period of 3 months from

May2009 to July2009.
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Data collection:

Both the primary and secondary data are used in this study.

 Primary data collection

Primary data has been collected through questionnaire.

 Secondary data collection

Secondary data was collected from company annual reports,

journals, magazines and web sites etc.

Tools used for analysis:

 Ratio analysis
 Simple percentage method
 Ranking method
 Chi-square
 BCG matrix

2.4 LIMITATIONS OF THE STUDY:


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 Only ratio analysis is used for the study.


 A financial period of 10 years (1998-1999 to 2007-2008) is used

for ratio analysis, hence time value of money is not applied.


 Sales values available in IPMA are taken for BCG matrix

analysis.
 A period of four years sales is only covered for analysis of BCG

matrix.
 Production and technical aspects were not included in the study.

CHAPTER - 3

3. ANALYSIS AND INTERPRETATION

3.1 RATIO ANALYSIS

LIQUIDITY RATIOS:
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TABLE NO - 1
(Rs. In Lakhs)

CURRENT LIQUID ACID TEST


YEAR
RATIO RATIO RATIO
1998-99 2.13 1.99 0.87
1999-00 1.40 1.02 0.17
2000-01 1.49 0.86 0.16
2001-02 1.58 1.20 0.31
2002-03 1.80 1.45 0.58
2003-04 1.45 1.03 0.46
2004-05 1.41 1.03 0.49
2005-06 1.41 1.02 0.49
2006-07 1.54 1.14 0.51
2007-08 1.42 0.99 0.48
Source: Annual Reports of SPB Ltd

INTERPRETATION:
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 Current ratio is not good.

 Liquid ratio is satisfactory.

 Acid test ratio should be increased to maintain cash balance.


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TURNOVER RATIOS:

TABLE NO - 2

(Rs. In Lakhs)

INVENTORY DEBTORS WORKING FIXED ASSET


YEAR TURNOVER TURNOVER CAPITAL TURNOVER
RATIO RATIO TURNOVER RATIO RATIO
1998-99 27.00 5.04 3.23 1.16
1999-00 7.26 7.79 6.96 0.78
2000-01 4.38 6.69 5.65 1.11
2001-02 10.07 6.72 6.54 1.65
2002-03 11.90 8.28 5.28 1.85
2003-04 7.93 7.79 7.36 1.87
2004-05 7.55 8.20 7.06 1.57
2005-06 7.65 8.52 7.32 1.70
2006-07 7.60 8.21 5.57 1.18
2007-08 6.47 9.14 6.61 0.90
Source: Annual Reports of SPB Ltd

INTERPRETATION:

 Inventory turnover ratio is satisfactory.

 Debtors turnover ratio is not good.

 Working capital turnover ratio is satisfactory.

 Fixed asset turnover ratio should be increased for efficient use

of fixed asset.
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PROFITABILITY RATIOS:

TABLE NO - 3

(Rs. In Lakhs)

SHARE
GROSS PROFIT OPERATING NET PROFIT
YEAR HOLDERS
RATIO PROFIT RATIO RATIO
FUND RATIO
1998-99 33.93 16.11 2.18 0.05
1999-00 30.74 16.55 3.44 0.07
2000-01 18.72 18.27 1.31 0.04
2001-02 34.28 13.25 0.87 0.05
2002-03 34.13 20.90 5.07 0.25
2003-04 29.98 16.17 5.71 0.23
2004-05 22 .88 8.34 1.86 0.07
2005-06 27.18 12.57 4.69 0.17
2006-07 28.01 15.19 9.91 0.29
2007-08 30.95 18.16 10.03 0.25
Source: Annual Reports of SPB Ltd

INTERPRETATION:

 Gross Profit Ratio is satisfactory.

 Operating Profit Ratio is good.

 Net Profit Ratio is also good.

 Share Holders Fund Ratio has to be improved so as to maintain

enough dividend to share holders.


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SOLVENCY RATIO:

TABLE NO - 4

(Rs. In Lakhs)
FIXED
DEBT CURRENT ASSET
PROPRIETORY SOLVENCY ASSET TO
YEAR EQUITY TO PROPRIETORY
RATIO RATIO NET WORTH
RATIO FUND RATIO
RATIO
1998-99 1.40 36 64.01 186.24 126.27
1999-00 1.96 32 68.44 264.36 103.08
2000-01 2.35 30 70.42 264.60 158.45
2001-02 3.28 21 69.55 354.32 244.11
2002-03 2.21 27 59.85 266.51 208.93
2003-04 1.23 36 46.59 216.63 177.84
2004-05 1.50 32 51.98 252.87 192.57
2005-06 1.00 37 44.05 215.12 171.83
2006-07 1.54 32 55.93 250.96 152.48
2007-08 1.71 31 58.57 277.04 129.23
Source: Annual Reports of SPB Ltd

INTERPRETATION:

 Debt equity ratio is satisfactory.

 Proprietory Ratio is good.

 Solvency Ratio has to be reduced as the company is liable to

pay more to outsiders.

 Fixed Asset to Net worth Ratio is not satisfactory as

shareholders fund are less.

 Current asset to Proprietory fund ratio is good.


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3.2 EMPLOYEE JOB SATISFACTION:

DEMOGRAPHIC FACTORS OF RESPONDENTS - 1:

TABLE NO - 5

NUMBER OF
FACTORS PARTICULARS PERCENTAGE
RESPONDENTS
Male 147 98
GENDER
Female 3 2
Below 25 yrs 18 13
AGE LEVEL 25 yrs - 35 yrs 16 11
36 yrs - 45 yrs 33 24
Above 45 yrs 73 52
School level 78 56
ITI 0 0
EDUCATIONAL Diploma 32 23
QUALIFICATION Under graduation 25 18
Post graduation 5 3
MARTIAL Married 109 78
STATUS
Unmarried 31 22
Below Rs 10000 36 26
MONTHLY Rs 10001 – Rs 15000 45 32
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Rs 15001 – Rs 20000 44 31
INCOME Above Rs 20001 15 11
Source: primary data

INTERPRETATION:

GENDER:

From the above table it is inferred that 98% of the respondents

belongs to the category of male and 2% of the respondents belongs to

the category of female.

AGE LEVEL:
13% of the respondents belongs to the age group of “below 25

yrs”, 11% of the respondents belongs to the age group of “25 yrs – 35

yrs”, 24% of the respondents belongs to the age group of “35 yrs – 45

yrs” and 52% of the respondents belongs to the age group of “above

45 yrs”.

EDUCATIONAL QUALIFICATION:

56% of the respondents belongs to the category of “School level”,

23% of the respondents belongs to the category of “Diploma”, 18% of

the respondents belongs to the category of “Under graduation”, and 3%

of the respondents belongs to the category of “Post graduation”.

MARTIAL STATUS:
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78% of the respondents were “married” and 22% of the

respondents were “unmarried”.

MONTHLY INCOME:

26% of the respondents receive below Rs 10000 as their monthly

income, 32% of the respondents receive monthly income between Rs

10001 to Rs 15000, 31% of the respondents receive monthly income

between Rs 15001 to Rs 20000 and 11% of the respondents receive

monthly income above Rs 20000.


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DEMOGRAPHIC FACTORS OF RESPONDENTS - 2:

TABLE NO – 6

NUMBER OF
FACTORS PARTICULARS PERCENTAGE
RESPONDENTS
FAMILY Below 5 members 133 95
MEMBERS Above 5 members 7 5
Staff 76 54
Worker 28 20
CATEGORY OF
JOB Executive 19 14
Trainee 17 12
Below 5 yrs 33 24
5yrs – 10 yrs 13 9
EXPERIENCE IN
SPB LTD 11 yrs – 15 yrs 21 15
Above 15 yrs 73 52
None 121 88
EXPERIENCE IN 1 13 9
OTHER 2 4 3
ORGANISATION Above 2 2 1
ALTERNATE Yes 11 8
PROFESSION No 129 92
Source: primary data

INTERPRETATION:

FAMILY MEMBERS:
From the above table it is inferred that 95% of the respondents

family members are below 5 and 5% of the respondents family

members are above 5.

CATEGORY OF JOB:
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54% of the respondents are “staff”, 20% of the respondents are

“workers”, 14% of the respondents are “executive” and 12% of the

respondents are “trainee”.

EXPERIENCE IN SPB LTD:

24% of the respondents experience is “ Below 5 yrs”, 9% of the

respondents experience is between “5 yrs – 10 yrs”, 15% of the

respondents experience are between “11 yrs – 15 yrs” and 52% of the

respondents experience is “Above 15 yrs”.

EXPERIENCE IN OTHER ORGANISATION:

88% of the respondents have experience only in SPB Ltd, 9% of

the respondents have experience in only one organization other than

SPB Ltd, 3% of the respondents have experience in two organizations

other than SPB Ltd and 1% of the respondents have experience in

more than two organization other than SPB Ltd

ALTERNATE PROFESSION:

8% of the respondents have alternate profession and 92% of the

respondents do not have any alternate profession.


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SATISFACTORY LEVEL OF THE RESPONDENTS - 1:

PERCENTAGE
PARTICULARS
HS S D HD

WORKING HOURS:

Flexibility in working hours 40 51 5 4


Paid vacation / sick leave
19 69 10 2
offered
Breaks offered during working
32 62 6 0
hours
Refreshment provided during
51 45 3 1
working hours
PAY:

Salary 8 57 31 4

Increment 16 56 19 9

Leave with pay 70 24 6 0

Benefit package 24 61 10 5
Connection between pay and
11 31 39 19
cost of living
USE OF ABILITIES AND SKILLS:
Opportunity to utilize your skills
25 54 17 4
and talents
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Opportunity to learn new skills 26 44 17 13


Encouragement provided to
31 54 9 6
develop skills and abilities
Ur present job makes you good
36 60 3 1
use of skills and abilities
TABLE NO - 7

Source: primary data

INTERPRETATION:

From the above table, it is interpreted that 51% of the

respondents are satisfied with their working hours, 69% of the

respondents are satisfied with their vacation/sick leave offered, 62% of

the respondents are satisfied with breaks offered and 51% of the

respondents are highly satisfied with refreshment offered to

employees.

It is interpreted from the above table that 31% of the

respondents are dissatisfied with their salary received, 19% of the

respondents are dissatisfied with their increment received, 61% of the

respondents are satisfied with their benefit package and 39% of the

respondents are dissatisfied with their pay and cost of living.

It is inferred from the above table, that 54% of the respondents

are satisfied with their opportunity of using their skills and talents, 17%

of the respondents are dissatisfied with their opportunity of learning


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new skills, and 54% of the respondents says that they are satisfied with

the encouragement offered.


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SATISFACTORY LEVEL OF THE RESPONDENTS - 2:


TABLE NO - 8

PERCENTAGE
PARTICULARS
SA A D SD

SUPERVISOR:
My supervisor praises and
27 59 10 4
recognizes me when I do a good job
My supervisor treats employees with
25 66 8 1
fairness
My supervisor is a role model of
20 79 1 0
quality work and a high work ethic
My supervisor is available when I
23 77 0 0
need help
My supervisor considers the opinion
of others before making important 21 68 11 0
decision
My supervisor gives me a
34 60 2 4
constructive feedback
INTERPERSONAL RELATIONSHIP:

I like the people I work with 31 69 0 0

My work is interesting 38 59 3 0
I have opportunity to interact with my
61 39 0 0
colleague during working hours
WORK ENVIRONMENT:
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My work area is neat & clean 41 55 0 0


Leaders in work environment are
35 55 6 4
positive role models
Team spirit in your work environment 41 53 4 2
My work environment allows me to
32 63 2 3
be highly productive

Source: primary data

INTERPRETATION:

From the above table, it is interpreted that 59% of the

respondents are satisfied with their supervisor’s praises and

recognitions, 66% of the respondents are satisfied with their supervisor

fair treatment, 79% of the respondents says that, their supervisor is the

role model, 68% of the respondents says that, their supervisor

considers the employees before taking decision and 60% of the

respondents says that, their supervisor gives constructive feedback.

It is inferred from the above table that 69% of the respondents

are satisfied with the people they work with, 59% of the respondents

says they are satisfied with their work and 61% of the respondents

highly satisfied with the opportunity of interacting with their colleague

during working hours.

It is interpreted from the above table that 41% of the

respondents are highly satisfied with their clean work place, 55% of the
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respondents are satisfied that leaders are their role models and 53% of

the respondents are satisfied with team spirit in work environment and

63% of the respondents opinioned that their work environment allows

them to be highly productive.


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RANKING FACTORS RELATED TO JOB SATISFACTION

TABLE NO - 9

RANKING FACTORS RELATED TO JOB SATISFACTION

S.NO. FACTORS 8 7 6 5 4 3 2 1 MEAN RANK

1 Salary 18 14 20 27 4 12 9 36 16.75 7

2 Promotion 28 17 11 10 5 8 46 15 16.94 6

Flexibility of
3 working 99 9 3 16 6 5 0 2 27.61 2
hours

4 Job security 132 3 4 0 0 0 0 0 30.58 1

5 Motivation 45 16 9 15 25 18 3 9 21.39 4

6 Safety 48 39 8 18 6 9 8 4 24.06 3
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Relationship
7 with the 26 19 12 18 24 16 5 20 18.81 5
supervisor

Opportunity
8 for 18 6 4 7 25 3 19 58 12.50 8
advancement

Source: primary data

INTERPRETATION:

The above table shows the various factors ranked by

respondents that influence job satisfaction. Among these job security

ranked first, flexibility in work hours ranked second, safety ranked third,

motivation ranked fourth, relationship with the supervisor ranked fifth,

promotion ranked sixth, salary ranked seventh and opportunity for

advancement ranked eighth position.


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EXPERIENCE AND SALARY OF THE RESPONDENTS:

CHI-SQUARE TEST:

HYPOTHESIS:

There is no significant relationship between experience and

salary.

TABLE NO – 10
EXPERIENCE AND SALARY OF THE RESPONDENTS

Salary
Highly Highly
Satisfied Dissatisfied Total
Satisfied Dissatisfied
Experience
Below 5 yrs 2 (1.3) 6(9.7) 6(5.2) 3(0.7) 17

5 yrs - 10 yrs 3(2.2) 11(16) 13(8.6) 1(1.2) 28


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11 yrs - 15yrs 1(1.5) 10(10.9) 8(5.8) 0(0.8) 19

Above 15 yrs 5(6) 53(43.4) 16(23.3) 2(3.3) 76

Total 11 80 43 6 140
Source: Primary data

INFERENCE:

From the above table it is observed that 2, 3, 1 and 5

respondents belong to experience of below 5yrs, 5 yrs - 10 yrs, 11 yrs

– 15 yrs and above 15 yrs respectively and they are highly satisfied

with salary. 6, 11, 10 and 53 respondents belong to experience of

below 5yrs, 5 yrs - 10 yrs, 11 yrs – 15 yrs and above 15 yrs

respectively and they are satisfied with salary. 6, 13, 6 and 16

respondents belong to experience of below 5yrs, 5 yrs - 10 yrs, 11 yrs

– 15 yrs and above 15 yrs respectively and they are dissatisfied with

salary. 3, 1, 0 and 2 respondents belong to experience of below 5yrs, 5

yrs - 10 yrs, 11 yrs – 15 yrs and above 15 yrs respectively and they are

highly dissatisfied with salary.

Level of significance: 5%

Degrees of Ho
Critical value Table value
Freedom Accepted/Rejected

9 20 16.91 Rejected
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The above table shows that calculated value is higher than table

value at 5% significant level. So the hypothesis is rejected.

RESULT:

There is significant relationship between experience and salary.

AGE OF THE RESPONDENTS AND THE OPPORTUNITY

TO LEARN NEW SKILLS:

CHI-SQUARE TEST:

HYPOTHESIS:

There is no significant relationship between age of the

respondents and the opportunity to learn new skills.

TABLE NO – 11

AGE OF THE RESPONDENTS AND THE

OPPORTUNITY TO LEARN NEW SKILLS


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Satisfactor
y
Highly Highly
level Satisfied Dissatisfied Total
Satisfied Dissatisfied

Age level
Below 5 yrs 2 (4.6) 9(8) 1(3.1) 6(2.3) 18

5 yrs - 10 yrs 3(4.1) 2(7.1) 7(2.7) 4(2.1) 16

11 yrs - 15yrs 24(13.1) 15(22.6) 9(8.7) 3(6.6) 33

Above 15 yrs 7(14.1) 36(24.4) 7(9.4) 5(7.1) 73

Total 36 62 24 18 140
Source: Primary data

INFERENCE:

From the above table it is observed that 2, 3, 24 and 7

respondents belong to age level of below 5yrs, 5 yrs - 10 yrs, 11 yrs –

15 yrs and above 15 yrs respectively and they are highly satisfied. 9, 2,

15 and 36 respondents belong to age level of below 5yrs, 5 yrs - 10

yrs, 11 yrs – 15 yrs and above 15 yrs respectively and they are

satisfied. 1, 7, 9 and 7 respondents belong to age level of below 5yrs, 5

yrs - 10 yrs, 11 yrs – 15 yrs and above 15 yrs respectively and they are

dissatisfied. 6, 4, 3 and 5 respondents belong to age level of below


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5yrs, 5 yrs - 10 yrs, 11 yrs – 15 yrs and above 15 yrs respectively and

they are highly dissatisfied.

Level of significance: 5%

Degrees of Ho
Critical value Table value
Freedom Accepted/Rejected

9 45.23 16.91 Rejected

The above table shows that calculated value is higher than table

value at 5% significant level. So the hypothesis is rejected.

RESULT:

There is significant relationship between age of the respondents

and the opportunity to learn new skills.

3.3 BCG GROWTH SHARE MATRIX: [IPMA MILLS]

The BCG matrix is a chart that had been created by Bruce

Henderson for the Boston Consulting Group in 1970 to help

corporations with analyzing their business units or product lines.

The BCG matrix is the simplest way to portray a company’s

portfolio of investments. The BCG matrix method is based on product

life cycle theory that can be used to determine what priorities should be
49

given in product portfolio of a business unit. This helps the company to

allocate resources.

The matrix classifies the business of a firm into four distinct

categories they are

 Stars

 Question marks

 Cash cows

 Dogs

It uses two parameters

 Market Share

 Growth Rate

STARS:

A business unit that has a large market shares in a fast growing

industry. Stars are net users of resources. Stars are market leaders

typically at the peak of their product life cycle and are usually able to

generate enough cash to maintain their high share of the market.

CASH COWS:
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Cash Cows are net generators of resources. A Cash Cow brings

a lot of cash to the company. It does not need heavy investments,

being in a low growth market, expansion possibility and hence

investment needs of a Cash Cow would be minimal. It also brings in

higher profit.

QUESTION MARKS:

A business unit that has a small market shares in a high growth

market. Question Marks are net users of resources. Question Marks

are new products with the potential for success, but they need a lot of

cash for development. If such a product is to gain enough market share

to become a market leader, money must be taken from more mature

products and spent on question marks.

DOGS:

Dogs (pets) are units with low market share in a mature, slow-

growing industry are generally a drag on the company and its

resources. They are generally cash traps for the company.

CALCULATION OF BCG MATRIX:

TABLE NO - 12
51

SPB SALES IPMA SALES (IN GROWTH MARKET


YEAR
(IN TONNE) MILLION TONNE) RATE SHARE
2004-05 118264 2259534 - 0.0523

2005-06 121332 2406972 6.53 0.0504

2006-07 123199 2523245 4.83 0.0488

2007-08 124181 2689875 6.60 0.0462

ADVANTAGES OF BCG MATRIX:

 The model is simple and easy to understand.

 It provides the base for the management to decide and prepare

for future actions.

 BCG model is helpful for the managers to evaluate balance in

the firm’s current portfolio of stars, cows, question marks and

dogs.
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53
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INTERPRETATION:

From the above charts it is interpreted that in the year

2007 – 2008 market share is 6.60 and growth rate is 0.04, in the year

2006 – 2007 market share is 4.83 and growth rate is 0.04 and in the

year 2005 – 2006 market share is 6.53 and growth rate is 0.05. As both

the market share and the growth rate are low for all the three years,

SPB Ltd position is in dogs.


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4.1 FINDINGS

 Liquidity ratios show a lower ratio than its standard.


 Inventory turnover ratio shows a decreasing value.
 Fixed asset turnover ratio falls only in the years 1999-00 and

2007-08.
 Gross profit ratio, operating profit ratio and net profit ratio are

increasing.
 Shareholders fund ratio shows a lower value for all the years.
 Debt value is higher which is not good for the concern.
 10% of the respondents are not satisfied with paid vacation and

sick leave offered.


 31% of the respondents are dissatisfied with the salary paid to

them.
 19% of the respondents are dissatisfied with the increment paid

to them.
 39% of the respondents say that their pay is not sufficient to

meet their cost of living.


 Majority of the respondents are satisfied with their interpersonal

relationship.
 Majority of the respondents are satisfied with their work

environment.
 66% of the respondents say that their supervisor treats all the

employees in an equal manner.


 In ranking method, job security holds first position and

Opportunity for advancement holds last position.


 There is significant relationship between experience and salary.
 There is significant relationship between age level and

respondents opportunity to learn new skills.


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 The BCG matrix shows that for all the 3 years SPB Ltd position

is in dogs where the market share of the company is low and the

industrial growth is also low.

4.2 SUGGESTIONS

 Current Liability values have to be reduced for better liquidity

ratio.
 Inventory is to be reduced, so as to maintain break even

inventory.
 Debt amount should be decreased because if it is higher more

amounts have to pay to outsiders.


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 SPB Ltd must take measures to improve the salary amount paid

to employees.
 If a large amount is invested for the upliftment of the company

with the efficient distribution channels along with increased

promotional activities, SPB Ltd can recover from dogs.

4.3 CONCLUSION

Every body works under a certain set of handicaps.


And the worst handicapped are those with no
awareness of their potential, no desire to do
anything much. We quads at least know what your
weaknesses are, and are trying to overcome them.

-Eugene Williams

SPB Ltd is one of the leading public company in India. Though it

performs well, the company has certain drawbacks. If the drawbacks


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are overcomed efficiently and the suggestions and adhered to and

considered positively, then SPB Ltd can move towards the market

leader in Indian paper industry.

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