SUMMER TRAINING REPORT ON

A COMPARATIVE STUDY ON THE consumer satisfaction

GLS Films Industries Pvt. Ltd.

A Project Report Submitted in partial fulfillment of the requirements for the Award of de-
gree Bachelor of Business Administration.

2016-2019

Submitted by Submitted to

Amarjeet Singh Shakti Sharma

BHARATI VIDYAPEETH DEEMED UNIVERSITY

School of distance education

NEW DELHI

(A Constituent Unit of Bharati Vidyapeeth University, Pune)

“A” Grade Accreditation by NAAC

An ISO 9001:2000 Certified Institute

1
 Student Undertaking

I Amarjeet Singh BBA 6th semester would like to declare that the project report entitled “A
STUDY ON THE EFFECTIVENESS OF WORKING CAPITAL MANAGEMENT” Sub-
mitted to Bharati Vidyapeeth University Pune, School of Distance Education Pune, Academic
Study Centre BVIMR New Delhi in partial fulfillment of the requirement for the award of the
degree.

It is an original work carried out by me under the guidance of Mr. Shakti Sharma.

All respected guides, faculty member and other sources have been properly acknowledged and the
report contains no plagiarism.

To the best of my knowledge and belief the matter embodied in this project is a genuine work done
by me and it has been neither submitted for assessment to the University nor to any other Univer-
sity for the fulfillment of the requirement of the course of study.

(Amarjeet Singh)

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 ACKNOWLEDGEMENT

It is indeed an opportunity to prepare a report on “A STUDY ON THE EFFECTIVENESS OF

WORKING CAPITAL MANAGEMENT OF GOPALJEE DAIRY FOODS Pvt. Ltd.”. Prep-
aration of such type of report calls for intellectual nourishment, professional help and encourage-
ment from many areas.

I would like to thank “BHARATI VIDYAPEETH DEEMED UNIVERSITY” for the compul-
sion of this most wonderful aspect of our BBA curriculum without which knowledge of manage-
ment studies is incomplete and futile. I would like to thank and express my gratitude to “Shakti
Sharma” for providing us his guidance and co- operation.

Further, I am thankful to all the respondents of our questionnaire who spared their time from their
busy schedule and obliged us by giving their co-operation and the information I needed.

Finally, I would like to state that the project not only fulfilled an academic requirement, but would
also help me in future endeavors in the years to come.

3
 PREFACE
It is designed in such a way that student can grasp maximum knowledge and can get practical
exposure to the corporate world in minimum possible time. Business schools of today realize the
importance of practical knowledge over the theoretical base. The research report is necessary as it
provides an opportunity to the researcher in understanding the industry with special emphasis on
the development of skills in analyzing and interpreting practical problems through the application
of management theories and techniques. It is a new platform of learning through practical experi-
ence.

4
 Table of Contents
Chapter 1: Introduction

1. About the Company (Formation, Vision, Mission, Objectives, Functions, Product &
services, Organizational Structure, SWOT Analysis)
2. Environmental Scanning –Political environment, Economic environment, Socio-Cultural
Environment, technological environment, environmental issues (Green environment) and
Legal environment.
3. Porters five forces model of competition –Michael Porter

Chapter 2: Research Methodology

1. Statement of the Problem

2. Objectives & Scope of Study
3. Managerial usefulness of study
4. Type of Research and research Design
5. Data Collection Methods
6. Limitations of Study

Chapter 3: Conceptual Discussion

1. Review of Literature (Discussion about the work done by others on similar issues and
published articles/books/research projects etc.)
2. Current Issues (From Newspaper, Journals –For Company and Industry)
3. History and Development of Company and Industry
4. New Development of Company and Industry

Chapter 4: Data Analysis

1. Methods and techniques of data analysis (Questionnaire, Graphs, Statistical Methods,

SPSS etc.)
2. Primary Data Analysis
3. Secondary Data Analysis

Chapter 5: Findings and Recommendations

Chapter 6: Conclusions and Suggestions

Appendices
Bibliography

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 Chapter 1: Introduction

1.1 About the GLS: Two decades ago, when the Indian packaging industry was still trailing in
the burgeoning demand for better packaging solutions, Mr. Sandeep Goyal envisioned a change.
With the mantra of going ahead of success, GLS emerged as one of India’s leading flexible pack-
aging company. This endeavor took flight with the confidence and vision of our prudent managers,
who skillfully achieved the rare balance between quality and optimal costs.

A BRC IoP, ISO 9001:2008, ISO 22000:2005 certified enterprise; GLS is based in Bilaspur, Gur-
gaon in Haryana, offering holistic flexible packaging solutions for a host of industries. We have
made inroads in the global markets owing to a strong infrastructure base and our unwavering com-
mitment for absolute quality. Standing true to our commitment, we have diversified our range of
products including flexible packaging, labels, holographic packaging, gravure cylinders, gravure
inks coatings and window metalized films to cover an array of industries.

Today, with the relentless efforts of our experienced and professional marketing team, we cater to
a host of industry segments including Food & Beverage, FMCG, Pharmaceutical, Industrial and
Agro Products. We ensure that the products we offer are not only limited to visual appeal but also
guarantee enhanced safety, hygiene, protection and convenience for all our customers. This prom-
ise of quality service continues with an effective and prompt after sales support.
GLS neither advocate maintaining status-quo nor encouraging exploitation of natural resources for
short term economic objectives. Instead, through sound and sustainable practices, we shall estab-
lish a creative partnership between development and environment. Increase in green cover, con-
servation of scarce resources, control of pollution, promotion of economic progress are important
guiding lights we will follow for nurturing such a relationship.

6
We, at GLS, manufacturing Laminates in Roll Form, Preformed Pouches, Printing Cylinders, Gra-
vure Inks, are committed to improve our environment and prevent pollution. We will try to make
the environment better by:
 Conserve natural resources by reusing and recycling materials.
 Develop, manufacture, and market products that are safe for their intended use.
 Use development and manufacturing processes that do not adversely affect the environ-
ment.
 Ensure the responsible use of energy.

Formation: Since GLS started from 2003, Organization is ahead responsibly and building on our
strong heritage of professionalism, placing the highest value on merit and integrity, we would be
setting new goals and achieve them consistently. Keeping constant innovation and sustainable de-
velopment as the common denominator in our scheme of things, we are a leading compatible flex-
ible packaging Company. After all, the challenge is to constantly keep raising the benchmark of
excellence by learning from our past experience and continuously raising performance standards.
Competitive economic environment calls Since GLS started from 2003, Organization is ahead re-
sponsibly and building on our strong heritage of professionalism, placing the highest value on
merit and integrity, we would be setting new goals and achieve them consistently. Keeping con-
stant innovation and sustainable development as the common denominator in our scheme of things,
we are a leading compatible flexible packaging Company. After all, the challenge is to constantly
keep raising the benchmark of excellence by learning from our past experience and continuously
raising performance standards. Competitive economic environment calls for competitive edge,
minimum costs and consistent growth to survive into the future. We would focus not only on im-
proving our quality and minimizing costs and errors, but also on devising new methods and prod-
ucts to maintain a competitive advantage. for competitive edge, minimum costs and consistent
growth to survive into the future. We would focus not only on improving our quality and minimiz-
ing costs and errors, but also on devising new methods and products to maintain a competitive
advantage.

Vision

 We will make GLS a Globally recognized Flexible Packaging Company.

 Product Performance, Supply reliability, Global Capabilities, technical expertise, Market
know-how and Collaborative innovation will be our way of doing business.
 We will earn the respect of our Stakeholders – Customers, Suppliers, Employees, Share-
holders, through superior performance, continuous improvement, high growth and sus-
tained profits.
 To our customers, we will be a Company easy to do business with, recognized and re-
spected for its class.

7
  With our focus on innovation, GLS will provide Customers with real solutions not just
products, both today and tomorrow. As a leader, it's not only on promise, it is our respon-
sibility.

Mission: Every GLS employee is committed to achieve the Company’s vision. They have pledged
to achieve:
 Customer Satisfaction
 Fast to market
 Excellence in Quality, Service and Performance.
 To become lowest cost producer, in its competitive category.
 Company’s growth, resulting in personal growth.
 Continuous learning and continuous improvement.

Objectives: Company objectives are measurable and effectively describe the actions required to
accomplish a task. Objectives define the techniques your organization will use to achieve sales
success, customer service standards and branding opportunities as well as any other measurable
aspirations.

 Achieving Financial Success: Business managers must set clear financial objectives to
emphasize the financial targets of the company. Objectives should be ambitious, but also
measurable and realistic. An example of a financial objective could be the growth in com-
pany revenues and earnings. Attaching a quantifiable number, such as 15 percent growth
in revenues and earnings within the next 12 months, is ideal because it can be measured
and adjusted if necessary.

 Increasing Sales Figures: Sales objectives help companies measure their position against
industry competitors. These objectives tend to focus on ways an organization can surpass
the competition in market share, product quality, and brand recognition. For example, if
you own a comic-book store, one example of a sales objective could be to increase your
monthly sales by 10 percent over the course of the year. To do this, you may have to im-
plement a marketing strategy to attract new buyers or introduce new items that will allow
you to up-sell to your existing customers.

 Improving Human Resources: To operate effectively, your company must hire talented
employees who can implement your decisions and maintain productivity and efficiency.
Human resources objectives cover organizational structure and employee relations. They
also cover the employee training and development goals of the organization. A human re-
sources objective could be to reduce employee turnover by 20 percent by introducing a
new employee-assistance program.

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  Retaining Talented Employees: One of the often-overlooked objectives for small busi-
nesses is ensuring that talented and skilled employees remain with the company. As a busi-
ness owner, you know how challenging it can be to find employees that exceed perfor-
mance expectations. When you find these types of workers, your objective should be to
retain them by offering competitive salaries, incentives and a workplace environment that
is inclusive and harmonious. Investing in training programs that give your employees ad-
ditional education can also help achieve this objective.

 Focusing on Customer Service: Business managers establish objectives that focus on

providing quality customer service. These objectives attempt to measure customer satis-
faction with costs and overall quality of a product or service. A customer service objective
could be to reduce delivery and distribution time of products and services. Another could
be to reduce the number and frequency of customer returns and complaints or to improve
the response time of client inquiries.

 Establishing Brand Awareness: In the age of social media marketing, many small busi-
nesses are finding that brand marketing is another vital objective. Branding is all about
selling the experience of your product or service by communicating to your audience how
your business satisfies a want or need or makes their lives more convenient. One branding
objective could be to increase the number of social medias likes on influential platforms
such as Facebook and YouTube. Another branding objective could be to increase your
social media awareness by analyzing a metric such as website visits.

Functions
 Production function: Production is the creation of goods and services with the help of
certain processes. The production of goods depends essentially on the organization of men,
money, materials, and facilities into a smoothly operating business. In modern organiza-
tions, production is highly organized, mechanized, and specialized mass production, and,
therefore, its overall charge is entrusted to the Production Manager.

 Marketing function: Marketing is the process of getting goods and services into the hands
of the consumer with a view to satisfying the needs and desires of consumers and produc-
ers. In other words, the marketing function creates a process through which producers and
consumers are brought together in an exchange relationship and transfer of ownership takes
place.

 Finance function:

Finance function of business is basically responsible for three decisions and their proper
implementation, viz., (I) investment decisions (financial planning, capital budgeting, etc.)

9
 (ii) Financial decisions (capital structure—fixed and working; short and long-term and (iii)
dividend decisions.

Business maintains relationship with financial markets including institutions and major
shareholders and also takes care of other concerns such as share buybacks, capital raising
sources of borrowings and risk management.

 Human Resource (HR) function: The HR function deals with the human side of business.
It is concerned with increasing the effectiveness of human performance in any organiza-
tion. Specifically stated, the HR function aims at obtaining arid maintaining a capable and
effective workforce, motivating the employees individually and in groups to contribute
their maximum to the fulfilment of organisational goals.
 Information function: Like production, marketing, finance, and human resource, the
information function is equally important in a modern business. It is being increasingly
recognized that the modern business cannot be managed without the assistance of efficient
information function. The information function is basically concerned with records.
 Innovation: "An innovation is the implementation of a new or significantly improved
product (good or service), or process, a new marketing method, or a new organization
method in business practice, workplace organization or external relations." Thus, innova-
tion, which means creativity as well, is more of a philosophy and the entire business func-
tion needs to adopt it.

Product & services

Providing you the best range of Three Side Seal Bag, Center Seal Bags, Stand Up Pouches and
Zip Lock Pouches with effective & timely delivery.
1. Center Seal Bags

 Pouch sealed in bottom or top with one center fin at the back.
 Optimum utilization of laminate area.
 Can be provided with round punch on top seal for hanging display.
 Suitable for powders, solids and pastes.
 Powders up to 10 Kg weight.

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  Solids and Paste up to 1 Kg
 All heat sealable laminates can be used.

2. Stand Up Pouches

 Custom
Stand up pouch can be displayed on a shelf increasing the visibility of your product. Stand up
pouches packaging fold flat before filling, thus saving on freight and storage space. As com-
pared to other pouches stand up pouches have a longer shelf life without refrigeration. It has
elliptical bottom, commonly known as "Doy-style" or K-style bottom featuring seals rising
from either side at angles of about 30 degrees.

These stand-up pouch packaging is appropriate for food, pharmaceutical and medical packag-
ing industries. These products have low density and moisture absorption capacity, together
with high stiffness and strength. Satisfaction

3. Laminates in Roll Form

Leading Manufacturer of Laminates in Roll Form from Gurgaon.

y GLS employee is
committed to achieve the
Company’s vision. They have
pledged to achieve:
Printed on PET, BOPP, PVC, Cello, Poster Paper, Glassine Paper, Chromo Art Paper Lami-
nated with various materials like CPP, EAA COEX, EVA COEX, SURLYN COEX, LDPE,
LLDPE, LDLLDPE COEX, LDHDLLDPE COEX, BOPP HS, PET HS, Aluminum foil, Met-
alized PET/BOPP, PVC, PVDC, Map litho/poster/craft paper etc.
 Minimum Roll Width: 35 mm
 Maximum Roll Width: 1000 mm

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  Maximum OD: 600
 Core ID: 70/150

4. 4. Gravure Inks

r Satisfaction

Fast to market

Excellence in Quality, Service

and Performance.

To become lowest
cost producer, in its
competitive cate-
gory.

Company’s

At GLS, we have in-house ink manufacturing capacity where top experts supervise the printing
and coating with gravure inks. Uniformity is ensured in the entire process and no traces of
smudginess is obtained.

5. Laminates Tube

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 GLS offers laminate tubes in both PBL and ABL technologies and to be used in personal care,
pharmaceutical & food products.
6. Flexographic Printing Machine

“Speed with Accuracy and ahead of Competition".

This is the Mantra that forms the essence of our DNA, and that is why our capabilities in
printing are way ahead of the industry standards.
Perfection and finesse in printing is achieved leveraging an advanced setup of 8 high speed
Rotogravure printing presses capable of printing up to 9 colors. Besides this, our sophisticated
printing technology is capable of flexible printing on both sides of the substrate - on the surface
as well as the reverse in the same run of varying widths.

Organizational Structure
 Board of Directors
GLS is legally governed by its Board of Directors, which consists of 5 members, including one
chair, one treasurer and 3 ordinary members. The Board of Directors is responsible for advising
and overseeing GLS’s operational and strategic direction, and for monitoring organizational per-
formance and the effective use of resources (financial and staffing resources).
 Executive Director
The Executive Director assumes overall management responsibility for the entire organization.
The Executive Director reports directly to the Board of Directors on GLS’s operations, financial
position and resources, and works closely with the Senior Management Team to ensure the organ-
ization is meeting its vision, mission and objectives.
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  Program Committee
The Program Committee assesses all new programs and projects being considered by the Senior
Management Team and ensures they align with the organization’s vision, mission, goals and ob-
jectives as outlined in GLS’s Strategic Plan 2013-2016. Recommendations are provided to senior
management on program design and implementation. The Program Committee meets every three
months and consists of senior managers, the Program Support Unit staff, and the Area Support
Unit team leaders.
 Senior Management Team
GLS’s Senior Management Team (SMT) consists of the Executive Director and other senior man-
agement staff – the Program Coordinator (Program Support Unit), the Finance and Administrative
Coordinator and the Human Resources Coordinator. The SMT is responsible for the day-to-day
management of staff and GLS’s program activities. The SMT assists the Executive Director in
setting the organizational vision, mission, goals and strategic direction.
The SMT also provides overall guidance, assistance and support to all staff and field offices to
ensure the effective operation of the organization.
 Program Units
GLS has three program units that are situated in GLS’s central office in Phnom Penh. These units
consist of the Program Support Unit, the Finance and Administrative Unit, and the Human Re-
sources Unit. All units work closely with the Executive Director, the Senior Management Team
and field offices. The Program Support Unit consists of the Program Coordinator and six staff
(Program Managers and Program Officers) with expertise in gender, livelihoods enhancement,
disaster risk reduction and climate change adaptation, community savings and microfinance, and
monitoring and evaluation. The Program Support Unit has overall responsibility for the planning,
delivery and management of GLS’s development programs and activities. The Unit provides es-
sential support to the field offices such as project monitoring, reporting and evaluation, training
activities, management support, and engagement with local authorities and target beneficiaries.
The Program Support Unit has direct contact to the Executive Director and also works closely with
the Financial and Administrative Unit and field staff. The Financial and Administrative Unit has
overall responsibility for the business operations and administrative management of GLS.
The Financial and Administrative Coordinator takes overall responsibility for financial strategic
planning and management, and reports directly to the Executive Director. The Human Resources
Unit is responsible for human resources management and the provision of employee services for
the organization. The Unit provides support in recruitment, performance management, employee
relations, staff benefits, and learning and development. The Human Resources Unit consists of a
Human Resources Coordinator and Human Resources Assistant who work together to oversee the
day-to-day HR tasks of the organization. The Human Resources Coordinator is directly responsi-
ble for HR strategic planning and management, and reports directly to the Executive Director.

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  Area Support Units
GLS has five field offices or Area Support Units (ASUs) that are based in our target provinces of
Prey Veng, Kratie, Kompong Speu, Oddar Meanchey and Siem Reap. Each ASU is managed by a
Team Leader who is responsible for the coordination and implementation of GLS’s programs and
projects in the target area, as well as the day-to-day management of the ASU office. Each Team
Leader is supported by project officers and field staff, a finance and administration staff member,
and other support staff. The ASUs receive regular support and guidance from the central office.

SWOT Analysis
SWOT analysis is a strategic planning tool that can be used by GLS Limited managers to do a
situational analysis of the firm. It is a useful technique to map out the present Strengths (S), Weak-
ness (W), Opportunities (O) & Threats (T) GLS Limited is facing in its current business environ-
ment.
The GLS Limited is one of the leading firms in its industry. GLS Limited maintains its dominant
position in market by carefully analyzing and reviewing the SWOT analysis. SWOT analysis an
immensely interactive process and requires effective coordination among various departments
within the organization such as – marketing, finance, operations, management information systems
and strategic planning.
1. Strengths
 Successful track record of integrating complimentary firms through mergers & acquisition.
It has successfully integrated number of technology companies in the past few years to
streamline its operations and to build a reliable supply chain.
 High level of customer satisfaction – the company with its dedicated customer relationship
management department has able to achieve a high level of customer satisfaction among
present customers and good brand equity among the potential customers.
 Highly skilled workforce through successful training and learning programs. GLS Limited
is investing huge resources in training and development of its employees resulting in a
workforce that is not only highly skilled but also motivated to achieve more.
 Strong dealer community – It has built a culture among distributor & dealers where the
dealers not only promote company’s products but also invest in training the sales team to
explain to the customer how he/she can extract the maximum benefits out of the products.
 Highly successful at Go To Market strategies for its products.
 Automation of activities brought consistency of quality to GLS Limited products and has
enabled the company to scale up and scale down based on the demand conditions in the
market.
 Superb Performance in New Markets – GLS Limited has built expertise at entering new
markets and making success of them. The expansion has helped the organization to build
new revenue stream and diversify the economic cycle risk in the markets it operates in.
 Successful track record of developing new products – product innovation.

15
2. Weakness
 Not very good at product demand forecasting leading to higher rate of missed opportunities
compare to its competitors. One of the reasons why the days inventory is high compare to
its competitors is that GLS Limited is not very good at demand forecasting thus end up
keeping higher inventory both in-house and in channel.
 Not highly successful at integrating firms with different work culture. As mentioned earlier
even though GLS Limited is successful at integrating small companies it has its share of
failure to merge firms that have different work culture.
 Need more investment in new technologies. Given the scale of expansion and different
geographies the company is planning to expand into, GLS Limited needs to put more
money in technology to integrate the processes across the board. Right now, the investment
in technologies is not at par with the vision of the company.
 High attrition rate in work force – compare to other organizations in the industry GLS
Limited has a higher attrition rate and have to spend a lot more compare to its competitors
on training and development of its employees.
 Financial planning is not done properly and efficiently. The current asset ratio and liquid
asset ratios suggest that the company can use the cash more efficiently than what it is doing
at present.
 Days inventory is high compare to the competitors – making the company raise more cap-
ital to invest in the channel.
 Limited success outside core business – Even though GLS Limited is one of the leading
organizations in its industry it has faced challenges in moving to other product segments
with its present culture.

3. Opportunities
 New environmental policies – The new opportunities will create a level playing field for
all the players in the industry. It represents a great opportunity for GLS Limited to drive
home its advantage in new technology and gain market share in the new product category.
 New trends in the consumer behavior can open up new market for the GLS Limited. It
provides a great opportunity for the organization to build new revenue streams and diver-
sify into new product categories too.
 New customers from online channel – Over the past few years the company has invested
vast sum of money into the online platform. This investment has opened new sales channel
for GLS Limited. In the next few years the company can leverage this opportunity by
knowing its customer better and serving their needs using big data analytics.
 Organization’s core competencies can be a success in similar another products field. A
comparative example could be - GE healthcare research helped it in developing better Oil
drilling machines.
 Stable free cash flow provides opportunities to invest in adjacent product segments. With
more cash in bank the company can invest in new technologies as well as in new products
segments. This should open a window of opportunity for GLS Limited in other product
categories.

16
  Economic uptick and increase in customer spending, after years of recession and slow
growth rate in the industry, is an opportunity for GLS Limited to capture new customers
and increase its market share.
 Lower inflation rate – The low inflation rate brings more stability in the market, enable
credit at lower interest rate to the customers of GLS Limited.
 Government green drive also opens an opportunity for procurement of GLS Limited prod-
ucts by the state as well as federal government contractors.

4. Threats
 The demand of the highly profitable products is seasonal in nature and any unlikely event
during the peak season may impact the profitability of the company in short to medium
term.
 Rising pay level especially movements such as $15 an hour and increasing prices in the
China can lead to serious pressure on profitability of GLS Limited.
 No regular supply of innovative products – Over the years the company has developed
numerous products but those are often response to the development by other players. Sec-
ondly the supply of new products is not regular thus leading to high and low swings in the
sales number over period of time.
 Liability laws in different countries are different and GLS Limited may be exposed to var-
ious liability claims given change in policies in those markets.
 New technologies developed by the competitor or market disruptor could be a serious threat
to the industry in medium to long term future.
 Imitation of the counterfeit and low-quality product is also a threat to GLS Limited’s prod-
uct especially in the emerging markets and low-income markets.
 Growing strengths of local distributors also presents a threat in some markets as the com-
petition is paying higher margins to the local distributors.
 New environment regulations under Paris agreement (2016) could be a threat to certain
existing product categories.

1.2Environmental Scanning
Political environment: - Political environment highlight the probable government laws and reg-
ulations, Security measures and restrictions that can apply to the industry as a whole. The probable
environments that affect the GLS Ltd. (MNC) are:
 Laws & regulation had affected the Flexible packaging industry since its outburst. These
laws generally revolved around the environmental norms that were to be fulfilled by any
packaging industry had to take care of the environmental issues during Flexible packaging
of products.
 Taxes and Government foreign policies are critical for the packaging industry. The foreign
policies help to us decide the probability of success in the global market.
 Introduction of new Flexible packaging of products in the international market wherein
regulation led to packaging of product with increase in sales & production.

17
Economic environment: - Economical environment related to the exchange rates, economic growth
globally and the business setting prevailing in the industry. Economic environment for the Flexible
packaging industry is:
 There was excess capacity of flexible packaging thus giving rise to high amount of revenue
in marketing & new product design. Thus, there was lot of revenue withheld even through
demand was less supply.
 It rising slightly in 2014, to 2.6 percent, world GDP will grow by an estimated 3.0 percent
in 2015 and 3.3 percent in 2016, supported by gradual recovery in high-income countries,
low oil prices, and receding domestic headwinds in developing countries.
 Surplus capital and buying power in the developing economies like India and China and
their personal emergence in the global market place.

Socio-Cultural Environment: - Socio-cultural environment include the changes in cultures and

demo graphics globally apart from change in buying pattern and capacity of the customer. Socio-
cultural environment having an impact on the packaging industry are:
 Changes in the customer predilection from flexible packaging being a status symbol to
unique or innovative design.
 Changes in buying pattern of the consumer due to recession in mature market.
 Environmental issues and awareness of the harmful chemical through flexible packaging.

Technological environment
 Increase in use of technology to gain a clear competitive advantage.
 Use of new and sophisticated design to overcome the decreased margins in the industry.
 Modification or restriction on technology causing environment pollution.
Environmental issues (Green environment)
 Sustainability is fast gaining favors among companies, with consumers increasingly look-
ing to buy products that are 'green'. A recent report highlighted the growing trend of sus-
tainable packaging in growing markets of China and India. The cause is attributed to a
growing middle class who is aware of health and environmental issues of flexible packag-
ing. It is forecasted that by 2018, Asia will become the largest market for sustainable pack-
aging in the world accounting for 32% of the overall market share. In the same year con-
sumer demand, technological advancement will push sustainable packaging to a $244 bil-
lion mark.
 Packaging companies in India like the GLS Ltd., which is India's largest flexible package
provider, has always been committed towards sustainable options of flexible packaging.
Being on the edge of innovation they provide packaging that keeps the products safe, fresh
and devoid of any harmful reactions. With the constant R&D for safer and environment
friendly packaging, the company is dedicated to bring safer, better and sustainable pack-
aging solutions.

18
  Their Green pet and rPET techniques ensure that the plastic is manufactured in an environ-
ment friendly manner without compromising on the quality of the product and the recycling
and reprocessing of the plastic waste is done in a safe and non-hazardous manner.

Legal environment
 Restriction and strict pollution norms set up in European and US markets.
 Strict implication of the EURO norms in developing countries e.g. Formation of BHARAT
norms in India.

1.3Porters five forces model of competition –Michael Porter

The Porter Five Forces that determine the industry structure in Containers & Packaging are -
(i). Bargaining power of buyers of GLS and Basic Materials sector – If the buyers have strong
bargaining power then they usually tend to drive price down thus limiting the potential of the GLS
to earn sustainable profits
(ii). Threat of new entrants in Containers & Packaging industry – If there is strong threat of
new entrants in the Containers & Packaging industry then current players will be willing to earn
lower profits to reduce the threats from new players

19
 (iii). Threat of substitute products and services in Containers & Packaging sector – If the
threat of substitute is high then GLS has to either continuously invest into R&D or it risks losing
out to disruptors in the industry.
(iv). Rivalry among existing players in Containers & Packaging industry – If competition is
intense then it becomes difficult for existing players such as GLS to earn sustainable profits.
(v). Bargaining power of suppliers in Containers & Packaging – If suppliers have strong bar-
gaining power then they will extract higher price from the GLS. It will impact the potential of GLS
to maintain above average profits in Containers & Packaging industry.

ledged to achieve:
 Customer Satisfaction
 Fast to market
 Excellence in Quality, Service and Performance.
 To become lowest cost producer, in its competitive category.
 Company’s growth, resulting in personal growth.
 Continuous learning and continuous improvement.
very GLS employee is committed to achieve the Company’s vi-
sion. They have pledged to achieve:
 Customer Satisfaction
 Fast to market
 Excellence in Quality, Service and Performance.
 To become lowest cost producer, in its competitive category.
 Company’s growth, resulting in personal growth.
 Continuous learning and continuous improvement.

20
 Chapter 2: Research Methodology
2.1 Statement of the Problem
Approaching half of India's population is under the age of 25 compared with only around one third
in China where the one-child family planning policy is resulting in an increasingly ageing popula-
tion. India's much larger youthful population is increasingly receptive to buying and consuming
pre-packaged products.
Also, India's fast growing and increasingly sophisticated middle class is driving demand for an
ever-growing range of higher value processed food products which utilize flexible packaging. Cur-
rently barely 5% of food in India reaches the consumer in pre-packaged form.
As a result of poor distribution infrastructure nearly 40% of fresh food in India is estimated to
perish before reaching the consumer, resulting in lost income for small farmers and higher prices
for consumers. This presents huge opportunities for rapid flexible packaging growth.
The growth is projected to continue because flexible packaging, particularly pouch packaging,
uses less energy and materials and has lower transport costs, environmental impact and carbon
footprint than its rigid counterparts.
These current trends concerning flexible packaging and rapid growth are anticipated to continue
and increase over the next 10 years to 2023. High growth is expected in Europe and North America,
as well as in the emerging markets of Asia and Central and South America.

2.2 Objectives & Scope of Study

 The main objective of the study is to find out the level of satisfaction among the internal
customers.
 To know the present status of the suppliers in terms of their supplied material & services.
 To collect and evaluate ideas/views and expectations of the internal customers for the im-
provement in supplier’s performance.
 To make company's internal suppliers aware about the dissatisfaction part of their custom-
ers.
 To find out the most prominent area of dissatisfaction.
 To enhanced the communication & co-operation between the internal suppliers and their
customers.
The study helped in managing the finances for profit society. The findings can be generalized from
regional level. The product offerings of different companies to create awareness and to increase
market share were studied. The awareness of endowment policies in particular was also studied.
This provided scope for understanding the consumer preferences and retaining present customers
while adding new ones.
The study helped to understand the customer expectations, the potential customers' requirement
and customers' problems and has helped to keep customers highly satisfied.
21
2.3 Managerial usefulness of study
The study gives the information regarding the market competition, innovative products offered by
competitors, present demand of the products in the market etc.
The main usefulness of the study on the managerial level is:
 Market survey will help to know the prevailing market condition and also help in framing
the policies accordingly.
 The study will help the management to understand the customer mindset and also estimat-
ing the present and future market demand for the products.
 It will help to estimate the level of awareness established in the market and in deciding the
extent of promotion required.
 It will help in finding out the customers' expectations about the product and also help to
know the customer physiology.

2.4 Type of Research and research Design

A research design is the blue print" of the study. The design of a study defines the study type
(descriptive, correlational, semi-experimental experimental, review, meta-analytic) and sub-type
(e.g., descriptive-longitudinal case study), research question, hypotheses, independent and depend-
ent variables, experimental design, and, if applicable, data collection methods and a statistical
analysis plan, Research design is the framework that has been created to seek answer to research
questions.
Research design is the first and foremost step in methodology adopted and undertaking research
study. It is overall plan for the collection and analysis of data in the research project. Thus, it is an
organized, systematic approach to be the formulation, implementation and control of research pro-
ject.
In this project we used descriptive research with the instrument of questionnaire. Descriptive re-
search is used to find out the perception of customer. There are various elements used in descriptive
research. Which are following as under: -
 Quality and price
 Demand and supply
 Purchasing power
 Branding
 Advertising
 Satisfaction level
 After sales service

22
2.5 Data Collection Methods
Data collection is the process of gathering and measuring information on variable of interest, in an
established systematic fashion that enables one to answer stated resear hypotheses, and evaluate
outcomes. The data collection components of research is common to all field of study including
physical and social sciences, humanities, business, etc.
Registration: registers and licenses are particularly valuable for complete enumeration, but are
limited to variables that change slowly, such as numbers of fishing vessels and their characteristics.
Questionnaires: forms which are completed and returned by respondents. An inexpensive method
that is useful where literacy rates are high and respondents are co-operative.
Interviews: forms which are completed through an interview with the respondent. More expensive
than questionnaires, but they are better for more complex questions, low literacy or less co-opera-
tion.
Direct observations: making direct measurements is the most accurate method for many varia-
bles, such as catch, but is often expensive. Many methods, such as observer programs, are limited
to industrial fisheries.
Reporting: the main alternative to making direct measurements is to require fishers and others to
report their activities. Reporting requires literacy and co-operation, but can be backed up by a legal
requirement and direct measurements.

2.6 Limitations of Study

The process used to collect information and data for the purpose of making business decisions.
The methodology may include publication research, interview, surveys and other research tech-
niques, and could include both present and historical information.
As the study made with Primary and Secondary research, there are certain limitations to the study
to be noticed.
 Main limitation to the study was the time available to conduct it, which affected the pro-
cessing and analyzing of the data.
 Sufficient number of respondents from all the GLS products could not be included.
 Due to time constrain the researcher covered only a limited period of study i.e. 2005-2006
to 2009-2010
 Sample size is limited to 300 people only. The sample size may not adequately represent
the whole market.
 It is difficult to know if all the respondents gave accurate information, some respondents
tend to give misleading information.

23
 Chapter 3: Conceptual Discussion
3.1 Review of Literature
The GLS Packaging Market report is a recent research added by DecisionDatabases.com, offers
critical insight into the market dynamic. This report also assays delicate market issue such as
drivers, restraints, and opportunities along with their effect on the growth of the market. The re-
port also discloses the analysis of present industry trends and opportunities of the market. Fur-
thermore, the market insight offered in this report covers exhaustive study and valuable insight
on comprehensive profiles of the key players in the market and crucial view of the competitive
landscape worldwide.

With changes in demographic factors such as an increase in single-person households and rise in
working population, the demand for convenience food and packaged food is growing. This is re-
sulting in the steady growth of this market. The flexible paper packaging segment held the high-
est share of the global food packaging market.

This Americas market will grow moderately during the forecast period because of increased de-
mand for small packs or single-serving packaging. The growing demand for boxboard and con-
tainerboard in the food industry will drive the growth of this market. The US will continue to be
an important revenue contributor on account of increasing concerns about sustainability among
consumers and growing infrastructure of contract packagers.

GLS Packaging market size will increase to xx Million US$ by 2025, from xx Million US$ in
2018, at a CAGR of xx% during the forecast period. In this study, 2018 has been considered as
the base year and 2019 to 2025 as the forecast period to estimate the market size for GLS Pack-
aging.

This report researches the worldwide GLS Packaging market size (value, capacity, production
and consumption) in key regions like United States, Europe, Asia Pacific (China, Japan) and
other regions.

This study categorizes the GLS Packaging breakdown data by manufacturers, region, type and
application, also analyzes the market status, market share, growth rate, future trends, market
drivers, opportunities and challenges, risks and entry barriers, sales channels, distributors and
Porter's Five Forces Analysis.

This report focuses on the top manufacturers' GLS Packaging capacity, production, value, price
and market share of GLS Packaging in global market. The following manufacturers are covered
in this report:
 Bemis
 Sealed Air Corporation
 Amcor
 Mondi Group
 Sonoco Products Company
 Wihuri
 Coveris

24
  Lock&Lock
 Huhtamaki
 Sabert
 Printpack
 Visy Proprietary Limited
 Tupperware
 Silgan
 Consolidated Container
 Reynolds
 PakPlast
 LINPAC Packaging
 Dart Container
 D&W Fine Pack
 Genpak
 Bryce Corporation

3.2 Current Issues

Over the last six months GLS has been the third-worst stock (before dividends) in the ASX 50,
falling by some 14 per cent. This makes the stock interesting given most large companies mean-
revert as their cycles turn and their capable management teams solve problems. We like GLS for
its attractive total shareholder returns of 13.7 per cent per annum over the last 10 years and 14.9
per cent over the last five years, and became increasingly interested as the stock trended lower
from its $16.78 peak in June last year. This month the shares fell to levels of three years ago at
$13.71.
GLS appeals to us below $14.00. The attractions are the range of growth avenues available to the
company, the skilled management, its ability to offset cost pressures and the 10 per cent discount
at $14.00 to our $15.70 valuation. We think most of the risk is now out of the stock and the under-
valuation compensates investors for the remaining downside risks, which centre on the earnings
outlook in emerging markets.
Global leadership in rigid and flexible packaging is a solid business model for conservative long-
term investors and GLS’s current management has delivered on its potential. Organic revenue
growth is slower than GDP but earnings volatility is low because the fast-moving consumer goods,
food and healthcare products sold in the company’s packages are not particularly sensitive to eco-
nomic cycles. The fragmented industry landscape in most countries presents options for growth by
acquisition and the synergies with existing plants become an annual source of earnings growth.
The supply of very large volumes to major consumer brands creates the pricing power to pass on
raw material cost increases, admittedly with a lag. The company’s large size means cost savings
can be found elsewhere in the group to help offset raw material price rises. Most years should see
higher dividends.

25
In the recent interim result GLS downgraded its full-year guidance for Rigids and Flexibles. The
share price anticipated this. There are three problems: the first temporary, another manageable and
the third a question mark. In North American rigids, GLS maintained share and the category grew
at normal rates but a major customer, PepsiCo, lost share and destocked, which weighed on GLS’s
volumes. Pepsi faces the decline of carbonated sugary drinks (CSDs) but can also improve its
execution in innovation and marketing of CSDs and non-sugar alternatives. Better brand support
of CSDs, for example at this year’s Super Bowl, and the launch of a new label in the fast-growing
sparkling water segment are encouraging signs of a turnaround.
The manageable problem is raw material input cost inflation in developed markets as the price of
resin, a synthetic polymer used to make flexible plastic packaging, rises with the price of oil, an
input to the manufacture of resin. This detracted US$20 million from Amcor’s US$330 million
interim result. CEO Ron Delia said industry price recovery mechanisms in developed markets are
working as they should and expressed confidence GLS will recover the full extent of raw material
price rises, admittedly with a lag. We expect the oil price will trend slowly higher with strength-
ening world economic growth but also think the US resin sector will respond to higher prices by
lifting output, which should then restrain prices. The return of production from plants compro-
mised by Hurricane Harvey should add to this effect.
The question mark is GLS’s emerging markets exposure, which contributes around 30 per cent of
earnings but is underperforming despite the longer-term appeal of faster economic growth than
developed markets. In the Asia-Pacific countries where GLS makes flexible packaging, raw ma-
terial price recovery mechanisms are weaker than in developed markets and GLS as the industry
leader will have to work harder to encourage the industry to pass on cost increases. In Latin Amer-
ica, rigids earnings were flat due to mixed economic conditions though volumes seem to have
bottomed for the moment. Overall the last two years have been difficult for GLS in emerging
markets and the key risk is this extends.
GLS’s earnings are defensive, so the stock falls out of favour when bond yields rise and the market
wants reflationary, growth-oriented stories like resources and industrial cyclicals. These periods
tend to coincide with the cost headwind of rising oil prices. Given we are now in such a period,
the returns on an investment in GLS should be adequate for the risk assumed, but longer-dated.

3.3 History and Development of Company and Industry

Founded in 1983, as Flex Industries by the Flex Group to manufacture multilayer laminated rolls
of plastics, paper, cloth or metal foils that are used separately or in combination for various pack-
aging application, GLS is India's largest flexible packaging major with large manufacturing ca-
pacities of plastic film and packaging products providing end-to-end solutions to client across more
than 140 countries. GLS has vast capacities for production of Polyester Chips, Biaxially Oriented
Polyethylene Teraphthalate (BOPET) and Biaxially Oriented Poly Propylene (BOPP), Cast Poly-
propylene (CPP) films, Printing & Coating Inks, adhesives, facilities for Holography, Metalliza-
tion & PVDC coating, Gravure Printing Cylinder, Gravure Printing, Lamination and Pouch for-
mation. GLS today has state of the art packaging facilities in India with installed capacity of 99,000
26
TPA. After having established a leadership position in India, GLS set up its first overseas operation
in 2005 at Dubai, UAE. This was followed by expansion there and new facilities at Mexico, Egypt
and Poland that were commissioned in 2009, 2010 and 2012 respectively. Today GLS has 18 state-
of-the-art film lines located in 6 countries that run 24x 7. The cumulative installed film manufac-
turing capacity in excess of 337,000 TPA.

Flexible Packaging
Uncertainties, volatility and major bank failures dominated global economic scenario during 2008-
2009, resulting in steep fall in global real GDP and affecting sustained growth of emerging market
economies. Albeit strong financial sector and resilience of the economy, the global slowdown af-
fected Indian external sector specifically exports and impacted industrial slow down due to reduc-
tion in consumption demand. Indian economy is estimated to slow down with a GDP growth of
6.5% to 6.7% during 2008-09 as against 9.0% in 2007-08 while the projected GDP growth for
2009-10 stood at 6.0%. India's strong domestic consumption and investment drivers will continue
to support healthy rates of growth over the medium term. India has weathered the global storm
with a high degree of resilience and we expect the Indian economy to return to a robust growth
path ahead of other economies that are experiencing recessionary conditions. Flexible packaging
and printing is the fastest growing segment of the packaging industry worldwide. The growth rate
of flexible packaging in global market, more particularly in developed markets such as USA and
Europe has been around 5-6% per annum, which is expected to grow at least at the same rate in
future.
Packaging, as distinct from mere "packing", plays its most visible and catalytic role in a modern
economy with widespread adoption of branding of products and development of consumer prefer-
ences, Packaging consumer products safely, conveniently, attractively and in environment friendly
packaging improves brand value which in turn increases market share. In the aggregate, packaging
as sectorial activity boosts consumption and economic growth. Increased competition in all prod-
uct sectors within the country as also the need to look for export markets have contributed to the
rising demand for appropriate and cost-effective, packaging material and technologies. Growth of
the packaging industry has led to greater specialization and sophistication in addressing host of
environmental issues. The need for addressing environmental issues is more in food and pharma
industry. The World Packaging Organization's (WPO) slogan, “Better Quality of life Through Bet-
ter Packaging", sumps up the important place that packaging occupies in a modern economy. To
ensure that public appreciation of this role and the policy-makers' support to the industry are not
diluted, attention should be paid to basic issues like collection, segregation and reuse of synthetic
packaging material and observation of regulatory requirements. Indian packaging industry, pres-
ently at about USD 14 billion is growing at 14%-15% on annual basis. Growth is expected to
double in next couple of years. It is estimated that more than 80% of the total packaging in India
constitutes rigid packaging, which is the oldest and the most conventional form of packaging. The
remaining 20% comprises flexible packaging. Rigid packaging constitutes glass bottles, metal
cans, aerosol cans, battery cell cans, aluminum collapsible tubes injection mounded plastic con-
tainers made of PVC, PET, HOPE barrels, paperboards, and corrugated boxes. However, with the

27
expanding middle class and rising income levels, the patterns of consumption are bound to change
substantially and the demand for quality and convenience-based products will increase. Concur-
rently, the increased interaction with the developed world will considerably influence the aesthetic
and quality norms of the Indian consumer and leads to better consumption standards. This is ex-
pected to stimulate greater consumption of branded products and thus increase the use of flexible
packaging. Flexible packaging contains multi-layered laminated sheets of single or a combination
of substrates such as plastic, paper and aluminum. Flexible packaging finds preferred use because
of its ability to provide strength, moisture resistance, aroma retention, gloss, grease resistance, heat
retention, printability and low dour. Flexible packaging has gained vast acceptability because of
the protection it offers to the product against environmental threats like moisture, heat, and chem-
ical reaction. Convenience in handling the product and the cost benefits are added advantages.

Packaging Raw Materials - Poly Condensation (PET Chips)

PET chips are mainly classified as polyester chips of film grade, yarn grade and bottle grade. These
chips are used as raw material for manufacturing of polyester films, polyester yarn and PET bottles.
The market for fi Im grade chips in India has grown beyond expectation. However, installation
and commissioning of number of production facilities by new entrants as well as end users them-
selves, has led to disbalancing of supply demand ratio and has resulted in steep drop in price and
margins. The yarn grade chips market in India is going through a dull and difficult phase. Though,
there has been demand for yarn grade chips, the falling price and margins and competition from
countries like China and Indonesia have made it quite unprofitable. The market for bottle chips in
India is very competitive with exceptionally low margins. The Company has therefore, strategi-
cally decided to mainly concentrate on production of film grade polyester chips.
Packaging Raw Materials - Inks & Adhesives
Printing ink, colour material in form of a fluid or paste which is used for printing on a substrate
and then dried. Depending on the process and end use, inks are classified into letterpress, litho-
graphic, flexographic, rotogravure, and others. Although most of the raw materials used in ink
manufacture are available in India, a large percentage is imported due to vast demand. The growth
of the printing ink sector had been very fast. Adequate quality control through research and devel-
opment can help the industry in meeting future requirements. For increased qualitative and quan-
titative production, absorption of imported technology and its upgradation is essential Manufac-
turers shall follow standard tests and procedures for proper quality inks. The use of enviro-friendly
inks reduces and controls pollution to a great extent. Research efforts in India, on this aspect, have
just been initiated.
Printing inks are formulated from three basic components: a colorant, a vehicle system to carry the
colorant, and additives such as waxes and driers. Colorants may be dyes, but are typically t-based.
They may be in powder form (dry toner), in a concentrated paste dispersion known as a flush, or
in a liquid dispersion. Additives can include waxes, driers and other materials that add specific
characteristics to an ink or the dried ink film. Together, these ingredients produce the key proper-
ties of printing ink: visual properties, runnability properties and end-use performance properties.

28
Printing Ink industry has witnessed an encouraging growth in domestic market during the year
under review, but having pressure on the margins in view of the increase in input costs and rising
other costs. The growth of the printing ink sector including that of rotogravure and flexographic
inks has been very fast. Many new and innovative products are being introduced on a regular basis
to meet the specific requirements of customers and other factors such as environmental concerns.
Adhesives have a variety of applications in the packaging industry for a broad range of materials.
Different applications require different adhesive systems. Globally, solvent less adhesives are the
fastest growing adhesive technology in film laminating. The application process involves metering
a curable adhesive onto a multiple application roll configuration that applies the adhesive to pri-
mary substrate, which is then mated to a secondary substrate via a heated nip. Your Company has
confined itself to the production and marketing of flexographic used by flexible packaging indus-
try. With increase in demand of flexible packaging material, due to shift in customer preference
and opening up of organized retail, the demand for flexographic inks is increasing. Further, the
Company has indigenously produced the new generation cost effective polyether base solvent less
adhesive system for flex pack, new ink system for PVC profile and special coating for producing
matt effect in laminates. These products are now well established in the market against competi-
tions.
Packaging Machinery
The Indian capital Industry has played a key role in achieving the industrial growth rate. The cap-
ital goods sector has been on the upswing since 2002, due to investment in infrastructure, oil and
gas sector steel plant, automobile industries etc. The demand for capital goods is going to be large
in the coming years and the industry needs to invest more in order to meet the demand.

3.4 New Development of Company and Industry

GLS has presence in all major segments of the value chains that allows the company to present
itself as 'one stop shop' for customer's packaging needs. The distinct feature and key growth drivers
for GLS are vertical integration providing complete flexible packaging solution, world class man-
ufacturing facilities at strategic location globally with reliable quality, new product development
and assured timely delivery. GLS is setting up one BOPET film line (30,000 TPA) at Poland to
cater large markets of Central and Eastern Europe and one BOPET film line (30,000 TPA) at
Kentucky (USA) to cater American markets. It has also been adding up capacity for flexible pack-
aging materials and its intermediary products in Jammu, India. These investments are intended to
cope with the growing demand of flexible packaging materials in national and international mar-
ket.
Over the last couple of years, GLS has developed several innovative products such as Green PET
films, Antimony free Pet film, rPet films, direct embossable PET films and special heat sealable
PET films amongst others. Some of the other recent innovations in the packaging products segment
includes, slider zipper with diaphragm, 3D Bags, WPP Bags, Eco-friendly flexi tube for cosmetic
& paste, spot hologram products and non-plastic laminates for mouth freshener industry. GLS has
been awarded Flexible Packaging Award, AIMCAL award and Plastindia foundation Silver award
for one of its newly developed product -Land of Sybaris stand up bag. Moreover, it has also been

29
awarded AIMCAL award for its innovative stand up pouch which is developed for Cadbury India
for its product Eclairs.

30
Chapter 4: Data Analysis

31