Industrial Visit Report

ON
(AKZONOBEL PLANT, MALANPUR)

Submitted to

Prestige Institute of Management and Research, Gwalior

For the partial fulfillment of the award of Master of Business Administration

(INTEGRATED)

(2022-2027)

Submitted By
(Abhishek Gurjar)

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 DECLARATION BY THE CANDIDATE

I hereby declare that this Industrial Visit report on AKZONOBEL PLANT, MALANPUR,
submitted by me to Prestige Institute of Management and Research, Gwalior in order to
fulfill the requirement for the award of Master of Business Administration
(INTEGRATED)

is a piece of my original work carried out by me under the guidance of Asst. Prof. Aabil
Husain.

I, further declare that the work reported in this report has not been submitted, and will not be
submitted, either in part or in full, for the award of any other degree or diploma of this
University or to any other institute or university.

Date: 9-12-2023

Place: Gwalior

Signature of the candidate

(Abhishek Gurjar)

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 CERTIFICATE

This is to certify that I’m the student of MBA (Int) 3rd Semester of Prestige Institute of
Management, Gwalior has completed the Report of Industrial Visit under my guidance.

Date: 9-12-2023 Asst. Prof. Aabil Husain

Place: Gwalior (Faculty Guide)

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 ACKNOWLEDGEMENT

The present work is dedicated to the person who not only taught us, but continue inspires us
in knowing the concealed facts of workmanship. I bow in honor before these great teachers.

The accomplishment of the present study became possible by the invaluable assistance and
guidance of our professional guides to whom I may gratefully indebted.

First of all, I would like to express my sincere gratitude to the Director, Dr. Nishant Joshi
sir, for providing computer lab and library facilities, in order to complete this Report of
Industrial Visit.

I express my sincere gratitude to my Faculty Guide Asst. Prof. Aabil Husain without Those
invaluable guidance, moral support and encouragement my work would have ever assumed
the present shape, research.

I’m also thankful to my friends, to all known and unknown individuals who have given me
their constructive advice, educative suggestion, encouragement, co-operation and motivation
to prepare this report.

Date: 9-12-2023 Name: Abhishek Gurjar

Place: Gwalior Class: MBA (Int) 3rd Semester

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 VISIT OVERVIEW

 Name of Organization Visited :-

Narmada Plant, Akzonobel Pvt. Ltd
 Sector :-
Manufacturing Sector
 Scale :-
Large Scale Industry
 Date of Visit :-
7 December 2023
 Location:-
Narmada plant,AkzoNobel India Ltd, Malanpur, Ghirongi, Madhya Pradesh 477117
 Number of Students who have visited :-
30
 Name of Faculty Coordinator :-
Asst. Prof. Aabil Husain
 Organized by:-
Training and Placement Department.

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 CHAPTER : 01

1. History of the Organization & Objectives of the organization:-

AkzoNobel is a multinational company with a long history and a diverse range of

objectives. Here's a brief overview of the history and objectives of AkzoNobel:

 History:

1. Early Foundations: The roots of AkzoNobel can be traced back to several Dutch
companies founded in the 18th and 19th centuries, including KZO (Koninklijke Zout
Organon or Royal Salt Union) and NV Organon. These companies were involved in
various industries, including salt production and pharmaceuticals.

2. Formation of AkzoNobel: The modern AkzoNobel was formed through the merger of
Akzo and Nobel Industries in 1994. Akzo was a major Dutch chemicals company, and
Nobel Industries was a Swedish explosives and arms manufacturer.

 Objectives:

1. Coatings and Paints: AkzoNobel is a leading producer of paints and coatings, serving
various industries such as automotive, aerospace, construction, and consumer goods. One
of its key objectives is to provide innovative and sustainable solutions in the coatings
sector.

2. Innovation and Sustainability: AkzoNobel places a strong emphasis on innovation and

sustainability. This includes developing environmentally friendly products, reducing the
environmental impact of its operations, and promoting sustainable practices in the
industries it serves.

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3. Global Presence: AkzoNobel has a global presence, and one of its objectives is to
continue being a key player in the international market. This involves serving customers
worldwide, adapting to regional demands, and maintaining a strong global supply chain.

4. Corporate Responsibility: Like many large corporations, AkzoNobel is committed to

corporate social responsibility. This involves initiatives related to environmental
stewardship, social responsibility, and ethical business practices.

2. Organizational Structure:-

 Akzonobel’s Organizational Structure’s overview till January 2022-

1. Executive Leadership: At the top of the organizational hierarchy, you have the executive
leadership team, which includes the CEO (Chief Executive Officer), CFO (Chief
Financial Officer), COO (Chief Operating Officer), and other top executives. The CEO is
usually responsible for overall strategic direction and decision-making.

2. Business Units or Divisions: Large companies often organize themselves into business
units or divisions based on products, services, or geographical regions. AkzoNobel, for
instance, may have divisions focused on Paints and Coatings, Specialty Chemicals, or
specific markets.

3. Functional Departments: Within each business unit, there are functional departments
such as marketing, finance, human resources, research and development, and operations.
These departments ensure that various aspects of the business are managed effectively.

CHAPTER: 02
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 PERSONNEL:-

I. RECRUITMENT PROCESS:-

 Job Posting and Application: AkzoNobel likely posts job vacancies on its official
website and other relevant platforms. Prospective candidates can submit their applications
through the company's online portal.

 Screening and Shortlisting: HR professionals or hiring managers review applications to

shortlist candidates based on qualifications and experience.

 Interviews: Shortlisted candidates may go through multiple rounds of interviews,

including initial screenings, technical interviews, and possibly a final interview with
senior management.

 Assessment: Depending on the role, candidates may be required to undergo assessments,

such as skills tests, personality assessments, or other evaluations.

 Offer and Onboarding: Successful candidates receive job offers, and the onboarding
process begins, which includes orientation and training to integrate new employees into
the company.

II. PERSONNEL POLICIES:-

 Employee Code of Conduct: Companies typically have a code of conduct outlining

expected behavior, ethical standards, and compliance with company policies and legal
regulations.

 Compensation and Benefits: Personnel policies cover aspects of compensation,

including salary structures, bonuses, benefits, and other perks.

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 Performance Management: Policies related to performance evaluation, feedback
mechanisms, and potential career advancement are established to ensure employees
understand expectations and have opportunities for growth.

 Work-Life Balance: Policies may address work hours, leave policies, and flexible work
arrangements to promote a healthy work-life balance.

III. TRAINING AND DEVELOPMENT:

 Training Programs

 Career Development

IV. WELFARE ACTIVITIES:

 Health and Wellness

 Employee Assistance Programs (EAP)

 Social and Recreational Activities

PRODUCTIONS/ OPERATIONS:

1. PRODUCTS/ SERVICES OFFERED:-

I. Paints and Coatings:

 Decorative Paints: AkzoNobel is known for its extensive range of decorative paints,
including interior and exterior paints for residential and commercial use. Well-known
brands under this category may include Dulux, Sikkens, and Trimetal.

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 Performance Coatings: AkzoNobel produces coatings for a wide array of industries,
including automotive, aerospace, marine, and industrial applications. These coatings are
designed to provide durability, protection, and aesthetic appeal.

II. Specialty Chemicals:

 AkzoNobel has historically been involved in the production of specialty chemicals for
various industries. This includes chemicals used in the manufacturing of products such as
plastics, pharmaceuticals, and agricultural products.

III. Chemical Solutions:

 AkzoNobel provides chemical solutions for different sectors, addressing specific needs
within the chemicals industry.

IV. Wood Coatings and Finishes:

 The company offers coatings and finishes specifically designed for wood surfaces,
catering to industries such as furniture manufacturing and construction.

V. Powder Coatings:

 AkzoNobel produces powder coatings that are applied as a dry powder and then cured to
form a protective and decorative finish. These coatings are used in a variety of
applications, including appliances, automotive parts, and architectural elements.

VI. Vehicle Refinishes:

 AkzoNobel provides coatings and solutions for vehicle refinishing, addressing the needs
of automotive repair and repainting.

2. LAY OUT OF THE FACILITY:-

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 I. Production Areas:

 Manufacturing Units: These are the core areas where paints, coatings, or chemicals are
produced. This includes mixing, blending, and processing areas with specialized
equipment.
 Quality Control Labs: Spaces dedicated to quality testing and assurance to ensure that
products meet specified standards.
 Warehousing: Storage facilities for raw materials, intermediate products, and finished
goods.

II. Research and Development (R&D):

 Laboratories: Facilities for research and development activities to innovate and improve
existing products or develop new ones.

III. Administration and Offices:

 Office Spaces: Administrative offices for management, marketing, human resources,

finance, and other corporate functions.

IV. Logistics and Distribution:

 Loading Docks: Areas for loading and unloading goods, especially important for
distribution.
 Distribution Centers: Spaces for organizing and dispatching finished products.

V. Utilities and Maintenance:

 Utilities Area: Houses equipment for utilities like water, electricity, and HVAC (heating,
ventilation, and air conditioning).
 Maintenance Workshops: Spaces for the maintenance and repair of equipment.

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 VI. Safety and Compliance:

 Emergency Response Centers: Areas dedicated to managing emergencies, including

firefighting and spill response.
 Compliance and Safety Offices: Spaces for managing health, safety, and environmental
compliance.

VII. Employee Facilities:

 Cafeteria and Break Rooms: Spaces for employees to take breaks and have meals.
 Training Centers: Facilities for employee training and development.

3. QUALITY CONTROL:-

Quality control is a critical aspect of AkzoNobel's operations, ensuring that its products meet
the required standards and specifications. While specific quality control measures can vary
based on the type of products being manufactured, here are some general aspects of quality
control that are commonly implemented in industries like chemicals and coatings:

I. Testing and Inspection:

 Raw Materials Inspection: Rigorous inspection of incoming raw materials to ensure

they meet quality standards.
 In-Process Testing: Regular testing during the production process to identify and address
any deviations from quality standards.
 Final Product Inspection: Thorough examination of finished products to verify that they
meet specifications.

II. Quality Assurance Programs:

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  Implementation of quality assurance programs to maintain consistency and reliability in
manufacturing processes.
 Continuous monitoring of key parameters to ensure that the production process is within
specified tolerances.

III. Compliance with Standards:

 Adherence to national and international standards relevant to the industry, such as ISO
standards, to ensure product quality and safety.

IV. Quality Control Laboratories:

 State-of-the-art laboratories equipped with advanced testing equipment for analyzing the
physical, chemical, and performance characteristics of materials and products.
 Highly trained personnel responsible for conducting tests and ensuring that the results
comply with established standards.

V. Documentation and Record Keeping:

 Detailed documentation of quality control procedures, test results, and any corrective
actions taken.
 Traceability of materials and products throughout the production process.

VI. Employee Training:

 Ongoing training programs for employees involved in the production process to enhance
their understanding of quality control measures and standards.

VII. Continuous Improvement:

 Implementation of continuous improvement initiatives to enhance processes and address

any identified areas for improvement in quality control.

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VIII. Customer Feedback and Complaint Handling:

 Establishing mechanisms to collect and analyze customer feedback.

 A structured approach to handling and addressing customer complaints, ensuring quick
resolution and prevention of recurring issues.

IX. Supply Chain Quality Management:

 Collaborative efforts with suppliers to maintain high-quality standards for raw materials
and components.

X. Regulatory Compliance:

 Ensuring compliance with relevant regulatory requirements and environmental standards.

4. MATERIAL PLANNING:-

I. Demand Forecasting:

 Analyzing historical data and market trends to predict future demand for products.
 Collaborating with sales, marketing, and other relevant departments to gather input for
accurate demand forecasts.

II. Inventory Management:

 Determining optimal inventory levels to balance the costs of holding inventory against the
costs of potential stockouts.
 Implementing inventory control measures to avoid excess stock or shortages.

III. Supplier Relationship Management:

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 Establishing and maintaining strong relationships with suppliers to ensure a steady and
reliable supply of materials.
 Collaborating with suppliers on lead times, quality standards, and other key factors.

IV. Order Planning:

 Developing order plans based on demand forecasts and inventory levels.

 Optimizing order quantities and frequencies to minimize costs and align with production
schedules.

V. Technology Integration:

 Leveraging technology, such as Enterprise Resource Planning (ERP) systems, to

streamline materials planning processes.
 Implementing tools for real-time tracking of inventory, order status, and supplier
performance.

VI. Risk Management:

 Identifying potential risks to the supply chain, such as geopolitical events, natural
disasters, or supplier issues.
 Developing strategies to mitigate risks and ensure continuity of supply.

VII. Sustainability Considerations:

 Integrating sustainability goals into materials planning by considering eco-friendly

sourcing, reducing waste, and optimizing transportation for lower environmental impact.

5. CONTROL FUTURE PLANS:-

They have declared intentions to expand in specific regions and sectors, including the Asia
Pacific market and the marine and protective coatings industries. Moreover, they have
established goals to decrease their environmental footprint, such as minimizing CO2
emissions resulting from their operations.

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 MARKETING:-

 Branding: AkzoNobel has several well-known brands under its umbrella, such as Dulux
in the decorative paints segment. These brands are carefully marketed to convey quality,
innovation, and reliability.
 Product Promotion: Marketing efforts focus on promoting a wide range of products,
including paints, coatings, and specialty chemicals. This involves highlighting product
features, benefits, and applications.
 Digital Presence: AkzoNobel maintains a strong digital presence through its official
website and social media channels. These platforms are used to engage with customers,
showcase products, and share industry insights.
 Trade Shows and Events: Participation in industry-specific trade shows, exhibitions,
and events allows AkzoNobel to showcase its innovations, connect with potential clients,
and stay updated on industry trends.
 Sustainability Communication: Given the increasing emphasis on sustainability,
AkzoNobel communicates its commitment to environmental responsibility. This includes
promoting eco-friendly products and sharing sustainability initiatives.
 Customer Education: AkzoNobel provides resources and educational content to help
customers understand product applications, proper usage, and the benefits of choosing
AkzoNobel's solutions.
 Collaborations and Partnerships: The company may engage in partnerships or
collaborations with other businesses, industry associations, or research institutions, which
can be part of its marketing strategy to enhance its reach and influence in the market.
 Customer Support and Services: AkzoNobel emphasizes providing excellent customer
support and services. This can include technical assistance, product information, and
after-sales services.

1. AREAS OF OPERATIONS:-

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 AkzoNobel operates in the chemicals and coatings industry, specializing in the production
of paints, coatings, and specialty chemicals. The company serves various sectors,
including decorative paints, automotive, aerospace, marine, and industrial applications.
With a global presence, AkzoNobel is involved in manufacturing and providing solutions
for a diverse range of industries and markets.

2. COMPETITIONS:-

In India, AkzoNobel faces competition from other major players in the paint and coatings
industry, including:

 Asian Paints
 Berger Paints
 Kansai Nerolac

These competitors, among others, contribute to a dynamic and competitive landscape in the
Indian paint and coatings sector.

3. MARKET SHARES:-
In India, AkzoNobel is one of the leading paint companies, ranking within the top four,
and it holds a 6% market share in the decorative paint sector, primarily recognized for its
popular brand, "Dulux."

4. ADVERTISING:-
AkzoNobel has been active in digital advertising, with campaigns running on platforms
/such as YouTube, Facebook, and Instagram. The company has also launched a number
of online initiatives, such as the Dulux Visualizer, which allows users to see how different
colors will look on their walls.

5. SALES PROMOTION:-
AkzoNobel India offers various sales promotions throughout the year, including:

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 I. Discounts:
 Seasonal discounts
 Bulk purchase discount
 Promotional offers
II. Additional incentives:
 Contests and giveaways
 Loyalty programs

CHAPTER : 03

1. STRENGTHS OF THE COMPANY:-

AkzoNobel India's Top 3 Strengths:

 Strong Brand Recognition: AkzoNobel is a global leader in the paint and coatings
industry with a long history and strong brand recognition in India. This allows them to
command premium pricing and attract customers who value quality and reliability.
 Extensive Distribution Network: AkzoNobel India boasts a vast network of distributors
and retailers, ensuring widespread availability and access to its products across the
country. This allows them to reach a large customer base and maintain a competitive
edge.
 Focus on Innovation: AkzoNobel India invests heavily in research and development,
continually innovating and introducing new products to cater to evolving market demands
and customer preferences. This focus on innovation keeps them ahead of the competition
and drives future growth.

2. WEAKNESSES OF THE COMPANY:-

3 Potential Weaknesses of AkzoNobel India:

 Significant Reliance on Traditional Sales Channels: While AkzoNobel India has begun
to embrace digital marketing, its sales still heavily rely on traditional channels like
distributors and retailers. This might limit its reach to younger, tech-savvy consumers and
make it slower to adapt to changing market trends.

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 Competition from Local and Regional Brands: AkzoNobel faces stiff competition
from local and regional paint manufacturers who often offer competitive prices and cater
to specific regional preferences. This could put pressure on AkzoNobel's market share
and profitability in certain segments.
 Limited Brand Awareness in Rural Markets: While AkzoNobel enjoys strong brand
recognition in urban areas, its awareness in rural markets remains limited. This could
hinder its growth potential in these areas, where a large portion of the Indian population
resides.

3. SPECIAL OBSERVATION:-
 Safety Protocols:
The industry implements a comprehensive security system, ranging from Personal
Protective Equipment (PPE) Kits to emergency exits. The PPE Kit includes a life jacket,
helmet, protective glasses, and boots, ensuring the well-being of employees. Additionally,
a fully operational alarm system is in place; when activated, every worker promptly
assembles at the cafeteria, where the safety team assesses the area where the alarm
originated.

 Location of the plant in India:

1. Narmada Plant in Malanpur, Gwalior.
2. Thane, Mumbai.
3. Mohali.
4. Hyderabad.

 Out of total supply in India, 16-18% of the supply is done from Narmada plant.
 The annual revenue for this facility amounts to 600 crore rupees. The operational
expense is 2.47 rupees per liter, with the cost breakdown as follows: 75% for raw
materials, 10% for logistics, 14% for manufacturing, and 1% for marketing.

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 CHAPTER : 04

1. CONCLUSION:-

AkzoNobel stands out as a paint industry leader, boasting a strong brand, broad
distribution, and a focus on innovation. Challenges include adapting to digital trends
and facing local competition. The company prioritizes safety with comprehensive
protocols. Learning points encompass strategic vision, sustainability goals, and a
commitment to growth in diverse markets.

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