Navneet Report

DA-IICT

NAVNEET PUBLICATION

LIMITED

COMPANY ANALYSIS

GROUP 5 April 8, 2010

Elements Of Business Management

Prof. Nikhil Raval

Company Analysis NAVNEET PUBLICATIONS

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Group Members

1. RASTE JANAKEE 200801083

2. MEHTA PRIYANKA 200801084

3. SHIVANG AGARWAL 200801085

4. ROHIT DADHICH 200801090

5. APURV SHAH 200801092

6. ANIRVAN MANDAL 200801094

7. CHOWDHARY LALIT MOHAN 200801095

8. JITENDRA RATHORE 200801099

9. RUSHIRAJSINH YADAV 200801100

10. MAHITEJESH REDDY 200801102

11. DHAVAL THACKER 200801103

12. VACHANADITYA 200801106


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TABLE OF CONTENTS

1. INTRODUCTION ............................................................................................................................................. 4

2. PRODUCT PORTFOLIO .................................................................................................................................... 6

3. WORKING STRATEGY ................................................................................................................................... 7

4. PLANNING...................................................................................................................................................... 8

4.1. SHORT TERM PLANNING ........................................................................................................................ 8

4.2. LONG TERM PLANNING ........................................................................................................................ 10

4.2.1. BCG Matrix............................................................................................................................. 11

4.2.2. SWOT Analysis .......................................................................................................................12

4.2.3. PEST Analysis ......................................................................................................................14

5. ORGANISATION STRUCTURE AND CONTROL ............................................................................................... 16

5.1. Organizational Structure ................................ ...................................................................................... 16

5.2. Control .................................................................................................................................................. 17

6. LEADERSHIP .............................................................................................................................. 19


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1. INTRODUCTION

Navneet Publications India Limited,founded by the Gala Family in 1959, is in the business of Educational and children Books Publishing,E-learning, Scholastic paper stationery and non-paper stationery products. Over the decades, Navneet has emerged as a leading Educational Products and Services company in India. The company's products are sold under the 'Navneet', 'Vikas', 'Gala', FfUuNn', Boss' and Navneet Nxt' brand names. It's portfolio of syllabus based Books includes high quality supplementary books like Digests (Guides), Workbooks and 21 Question Sets, most of which are published in four languages - English, Hindi, Marathi and Gujarati. The company has a huge

Presence in Maharashtra and Gujarat with figures indicating a rather strong monopolistic position in those states (85% Market share). It has recently made an entry into the Andhra Pradesh and Madhya Pradesh publications sectors and has extended its stationery business to 22 other states.

Navneet also produces various titles in the Children and General books category, which are not based on syllabus, such as activity books for children, board books, story books, health related books, cookery books, mehendi & embroidery books, etc

In 1993 the promoters transfered their three brands Navneet, Gala and Vikas from a privately owned company to the listed company at a nominal cost of Rs1, re-iterating the management's commitment to increasing shareholder value.

Navneet saw opportunity in the exports of Stationery products for which it now has state-of-art manufacturing facilities. The company enjoys leading position in premiere stationery markets in India, the


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Middle East, parts of Africa, U.S.A. and Europe. With now more than 500 SKU's(stock keeping Unit), Navneet is one of the largest paper stationery brand in India.

To keep step with dynamic environment, NAVNEET launched Internet initiative called Navneet Publications (India) Limited, a subsidiary of the company to leverage the Net and provide superior localised educational content.

In 2006, taking the success of the Paper Stationery products further, Navneet launched it first range of non-paper stationery FfUuNn Pencils.

Navneets most recent new addition to its long fleet of educational products and services is e-Sense .It can be classified as distance learning and computer based teaching/learning. This market has a very huge potential in India and World over.

The firm has also set up windmills in West India with the intention of generating cost savings of ` 50 lakh on a yearly basis for the next 20 years.

Serving the Indian teacher-student community, Navneet Publications (India) limited has been a dominant player in the field of providing syllabus and non-syllabus based education material in English,Hindi,Marathi,Gujarati and foreign languages to students since 1959.


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2. PRODUCT PORTFOLIO

.

3. WORKING STRATEGY

Navneet has two main Working Strategy:

1. One of its longest and most famous product,i.e, the Guides and Question paper set are set by expert teachers in that field today and updated frequently. This way the students get the best knowledge available which is up to date. The teachers are also

Navneet

Publications

21 Question Sets

Guides

Workbooks

Children Books and others

Children Newspaper

Stationary

Paper

Notebooks,Writing Pads,Conference

Pads,etc.

Non-Paper

Pencil,Eraser,etc.

Others

E-Learning

Cd's and Educational Softwares


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kept happy with the Royalty given to them. This has helped them remain in the top of this market in Gujarat and Maharashtra for so many decades.

2. Navneet is very particular about its product quality and standards. They have many machines which check the quality and standard of the raw materials used by them. The demand for branded stationery is increasing day by day and Navneet is catering to this need.

4. PLANNING

Navneet Publications has already started working in different curriculum outside Gujarat & Maharashtra. They have created many innovative ideas in to expand their business. They have been among the initiators who have started selling their products through Internet.

They are also planning to expand their business through Retail outlets of Navneet Publications. Besides their regular products they also plan to sell Child products such as toys & school bags. They have planned to open Retail Outlets everywhere in india and they have started implementing this in some parts of Gujarat.

They are also trying to enter into the Andhra Pradesh through CBSE and ICSE board. They also tried to enter into Rajasthan board but they didnt succeed, but the company is still trying to penetrate into that board to increase their business across India.

4.1. Short term planning


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Navneet is always looking for better value-added products for its consumers & mainly students. As we all know that Cricket is like a religion in this country. So, recently Navneet has tied up with Reebok in order to promote the stories of sportsmen like Sachin Tendulkar, MS Dhoni & Allen Everson through their books. Youngsters always look up to all the players. So they will be very interested to know more about all the players. So, this agreement is not only educative, but it is motivational also.

FundoO is a Creative Business Unit of Navneet Publications to market its exclusive range of innovative learning products in India catering the segment of kids between 3 to 10 years. Up till now these products are only being supplied in the international markets. The first franchised retail outlet of FundoO has been inaugurated in Ahmedabad on 15th Aug 2009 at Iscon Mega Mall, Ahmedabad. They are also planning to open this kind of outlets in different parts of Gujarat & Maharashtra firstly. And then, they will expand in other parts of the country.

Navneet has also started to distribute their products through a unique & creative idea. This idea is generally used for food & beverage industry. Basically the idea is to use Vending Machine to sell their products. Navneet has used it and they are successful also. They want to increase this idea in the coming one year in different parts of country for selling their products like stationery, different types of notebooks, drawing books etc.

They also installed the currency detector in it which detects which currency note is this and also checks the total amount for the product. This machine also accepts the credit card which enables the consumer to access the exclusive range of materials from Navneet. To develop these vending machines, Navnnet tied hands with Grabbit, the


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vending machine maker of Empire Industries Pvt. Ltd. In the initial phase they have placed these machines in 7 different places and now they wanted to increase these to as many places as possible.

4.2. Long term planning

Navneet has a clear and long term vision to establish FundoO in the Indian market. FundoO products shall be available through their exclusive franchisee stores, which will be present at strategic locations in leading cities.

They also have a long term vision for their programme which we have mentioned earlier named E-Learning. It is programme empowered by digital technology. E-Learning can broadly be classified as distance learning and computer based teaching/learning. Navneet being content company have focused integrated on computer based teaching/learning. Computer based teaching/learning is a very powerful medium and if with education will revolutionize the teaching methods as it would standardize teaching and will help in Learning Better, Understanding Faster and Remembering More.

The challenges with this approach are acceptance of technology by teachers as teaching tool, infrastructure to access technology in the classroom and access to relevant content. This is the main long term tool for Navneet as of now. They are trying to make this tool successful in as many ways as possible. This shouldnt be call as a tool but it should be called like a programme which helps the students and teachers to learn & understand better.

Navneet is also working towards student centric model and has conceptualized desktop based product called Top Scorer. The


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increasing PC penetration and awareness towards quality education will bring success to such offerings. This desktop based application will help student to learn better if they dont have an internet connection at home.Because E-Learning will require the Internet at home or at schools. This is also a good opportunity to expand their business

4.2.1. BCG MATRIX


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4.2.2. SWOT Analysis

1) Strengths of Company:- Navneets Brand name and the strong faith of customers on it.

The owners of the company have their great vision for the company as

well as for our country India.

They also believe in giving good quality books and papers to the

public rather than giving the quantity.

They also brand name Boss having books which are of low price

which target the small section of the society.

Over 80% market share in Gujarat and Maharashtra for curriculum

based books.

Owns around 5,000 titles in English and 11 other national languages.

Navneet has about 300 products in the paper stationery segment and

about 50 in the non-paper stationery category.

Exports stationery to international retailers such as WalMart, Target

and Tesco.

2) Weakness of Company:- According to the HR manager of the company, the weakness of the

company is its Marketing Strategy.

In Indian Markets, their main business is from the state Gujarat &

Maharashtra.

Seasonality of sales (Most sales in publishing segment occur in the

first quarter of the financial year).

Can generate high sales in the curriculum based books markets only

in years when syllabus changes.

3) Opportunities for Company:- Their main opportunity recently is the awareness of their program

named E-Learning among the common people. This program helps

common public and their children to gain knowledge in different

topics through electronic media.


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They also have the opportunity to expand their business in states

other than Gujarat & Maharashtra. This can be achieved by publishing

books having CBSE and ICSE course.

They also have the opportunity for publishing the books at Under

Graduate and Post Graduate level.

Recently entered into Andhra Pradesh in curriculum based business.

India has the largest population in the 6-14 years (school going

children) which is benefitting Navneet.

4) Threats for the company:- Emerging of new competitors against this company may lead to major

threat to the company.

Like for stationery we have ITCs brand Classmate.

For Publications we have Bhavik Publications (for Gujarat board) and

Jeevandeep Publications (for Maharashtra board).

Second hand market for school books.

Mismanaging of funds by the employees which are raised by public for

the betterment of rural children can also be a major threat.

Immediate threats that Navneet faces are fluctuating raw material

costs, syllabus dependency and potential entrants.

Paper which is a key raw material is a cause for concern as paper

prices are fast increasing.

Import of cheap stationery from the Chinese market will take away

some market share from Navneet.

4.2.3. PEST Analysis

PEST basically stands for Political, Economical, Social & Technological. PEST analysis is also called STEP, PESTEL, PESTLE & SLEPT, where L stands for Legal & extra E stands for Environmental. The PEST analysis is carried out by a group of analysts before the business proposal comes into place. This is an integral part of the industry analysis where the group of founders, with the help of some experts, analyse the various aspects of a place to set up the business


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at. We can summarize the above mentioned points as follows:-

1) Political Aspects:-

Gujarat government has been always encouraging the study sector of the state. Navneet Publication has a Navneet News house for the children. It shows the news from various aspects of society like science, environment, sports & entertainment. This News House is a twelve page weekly newspaper since 1996 with circulation passing 20,000. The private final consumption expenditure on education increased by over 50% from 1bn ` to 1.52bn `, comparing remarkably against the 31% increase in the total private consumption expenditure.

2) Economical Aspects:- Navneet Publication House is a well-known publication house in all over

India. It has more than 400 employees working there. It targets the growth of

20% every year which is always almost achieved. Company also provides

20% bonus to every employee every year. It has a large area over which its

publication house has been made and they have four kinds of employee

namely workers, supervisors, mangers & officers.

3) Social Aspects:-

Navneet Publications has a plant in Dantali village near Ahmedabad. So, they distribute the basic books for studies to the village children. They are also conducting games, quizzes and many more things in that village to award children with different types of books. Their brand name Boss has a low price books specially made for middle-class people. Navneet Publications has a very strong CSR (Corporate Social Responsibility) agenda having made donations totalling 162 lakh ` in areas of education, rehabilitation and medicine.

4) Technological Aspects:- Navneet has many publication houses in and around Ahmedabad. They are

using many new technologies in producing the books and their paper

materials. They are using the paper made from bagasse which is a leftover

material from sugarcane which is Eco friendly method to make the paper.

They are not using trees to make the paper. They have also adopted the new


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technology for making good quality paper which increases efficiency of paper

production also.

5. ORGANIZATION STRUCTURE AND CONTROLS

5.1. Organization Structure

Vice President

(Production)

Unit Manager

(Deputy G.M.)

Production

Manager

Commercial

ManagerEngineer

Manager

Value

Engineer

Preventive

Officer

Project

Officer

Production

Planning Officer

Printing

Officer

ORG

Officer

Binding

Officer

Administration

Officer

Purchase

Officer

HRD

Officer

Logistic

Officer

Trainee

Engineer

Engineering

Storekeeper

Navneet11/8/2010

Electricians

Mechanical

Engineer

Instrumentation

Technicians

Costing

Pre-Press

In-charge

Pai/Cover

Storekeeper

Quality

In-charge

Publication

Co-ordinator

Supervisors

Senior

Supervisor

Supervisors

Senior

Supervisor

Clerks

Clerks

Clerks

Clerks

Receptionist/

Tele. Operator

Workshop In-charge

Filters

Turners

Helpers

Aprentices

Clerks

Clerks

Clerks

Foreman

Apprentices

Operators

Asst. Operators

Helpers

Foreman

Apprentices

Operators

Asst. Operators

Helpers

Office-Boyes

Helpers

Drivers

House-keeping

Supervisor

Canteen

Supervisor

Security

Supervisor

Cash

Counter

GuardsFieldmen

Cooks/Service

Boys


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5.2. Controls

Link is maintained with Gujarat Pathya-Pushtak Mandal, so that they are always in touch with the latest updates regarding syllabus. Marketing department collects and analyzes the data regarding the need of the books every year. This data is used in advance to print and dispatch the books before the new academic year starts. The plants also have very large warehouses to store the raw material and printed books in large quantities so that no shortage prevents the plant from functioning fully.

They apply Business Process Reengineering methods to review the utilization of each machine. They also maintain statistical data regarding various reasons and timing for idling or any machine. They apply means of careful planning to minimize the idling time of any machine.

Different employees have different days off in the week. This is to ensure that no machine stays unused if one of the employees is not there to work on it.

They also apply Kaizen 1 activity to continuously improve the performance of machines and workers and thus increase productivity of the whole plant.

The price of any book is decided by four major factors: Quality of the paper used, quantity of the paper used, consumables and labor. Different quality of paper is used for books and stationeries used for reading and writing. Thicker and better quality papers are used to make books and stationeries to write in. Papers in huge quantity are bought from all over India and then stored in warehouses. These 1 Kaizen refers to activities that continually improve all functions, and involves all employees from the CEO

to the assembly line workers.


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papers are checked in their special quality checking labs to maintain the standard quality of their products.

Some of the Navneet products are Ecobuddy ; they are made from bagasse 2 . But another Navneet brand, Boss, which is of cheaper quality and price, does not use eco-buddy papers.

They use high quality packaging materials and machines for those goods, which are to be exported to foreign countries. Wood pallets are used to ensure minimum damage to the packages.

SAP solution manager is used in order to ensure high efficiency of the plant and centralize the whole management process.

They have a very highly skilled technical staff that can handle various problems occurring with their machines. Only during critical faults with the machine, they need to call expert from abroad.

There is a safety committee to ensure the proper working standards of the machines and safe working conditions for the workers.

6. LEADERSHIP

Every Navneet plant gives 20% bonus to all of its company employees every year. This trend is maintained since the starting of the Navneet publications. Apart from this bonus, they also have other incentives. Employees working on some machines get additional bonus if their production exceeds a certain target for that machine. This inspires them to give their best.

Employees get holidays once a week and there are 10 public holidays 2 Bagasse: Dry sugarcane pulp remained after extracting juice is chemically treated to make paper and

fuel.


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in a year when the entire plant remains closed. One-day picnics are also conducted every year for the employees and their families.

Navneet divides its employees in four major categories: Workers, Supervisors, Officers and Managers. Since Aug 2008, an evaluation scheme was started, according to which the employees are judged based on different parameters and are awarded points for their good performance and qualities. Incentives are decided based upon these points.

In some of the plants, libraries are created for employees, where Navneet books related to healthcare and other topics are made available to them. They can issue these books and share with their families.

They also have meditation sessions for 2 hours in a week for employees in slack seasons. These sessions are held by Bramhakumaris people who come to the plant campus.

Other activities like Experience Exchange program are used to improve harmony among the employees. Various training programs are also used in order to improve technical and conceptual skills of employees. A mess is there in each plant so that every employee gets to eat hot meals with his/her colleagues.

WCA policy for emps

ESI: Employee State insurance.

The management process of the plant is such that reports regarding every activities are made and presented to the managers every day. Directors visit various plants once a week and the goals are set to follow monthly and yearly targets.

Documents

Navneet Report