The document provides an analysis of the manufacturing industry and 3M Company. It can be summarized as follows:
1) 3M Company is a leading American manufacturing company known for innovative products like Scotch tape and Post-it notes. Founded in 1902, it now has over $30 billion in annual sales and operates in over 70 countries.
2) The manufacturing industry faces challenges of global economic conditions, competition, and cost pressures. However, trends show a gradual recovery in manufacturing output led by the US and emerging markets.
3) 3M has a diverse portfolio of businesses and geographic presence. However, it faces threats such as rising costs and currency fluctuations. To maintain growth, 3M relies on innovation
Asian Paints - Strategies, Entry Mode, StructureTony Sebastian
This PDF file include the Strategies followed by Asian Paints world wide. It also includes the structure of their organisation and how they enter into other countries in a global perspective
Asian Paints - Strategies, Entry Mode, StructureTony Sebastian
This PDF file include the Strategies followed by Asian Paints world wide. It also includes the structure of their organisation and how they enter into other countries in a global perspective
In this work, we create an international marketing plan in order to extend the production and distribution of a famous sunglasses brand, Gentle Monster.
Introduction - History - Origin
Vision - Mission - Values of the company
Key Product - Key Market -Key Competitions
SWOT
Financials
Global turnover
Global net profits or
Turnover - Geographic
Corporate Governance & Ethical practice of company
CSR
Success Story
Failure & Setback Story
R&D
Future Global challenges
Acquisition and Divestment
Cesim Project management simulation game has been designed to capture the essence of project management in an environment of collaborative and competitive elements.
Find out more here: https://www.cesim.com/simulations/cesim-project-management-simulation
The three Enterprise Innovation Networks The Irish Software Association (ISIN), Industry Research & Development Group (IRDG) and the Construction IT Alliance (CITA) EIN, all funded by Enterprise Ireland hosted a joint seminar on Tuesday 23rd October 2012 in the Dublin City Council offices on Wood Quay from 08.00am - 11.00am. There were 80 delegates in attendance and an additional 20 viewing the event online. The intention of this event was to focus on the need to Collaborate to Innovate for a successful future.
The Opening address was given by Mr Greg Treston from Enterprise Ireland. Greg is Head of Research & Innovation. There was then a short Introduction to each of the Enterprise Innovation Networks. Speakers included Paul Sweetman of ISIN, Denis Hayes of IRDG and Suzanne Purcell of CITA EIN. This was followed by presentation on Collaborating with Third Level Research Institutes by John Whelan, Trinity College Technology Transfer Office and Tom Flanagan, DIT Hothouse. Three case Studies followed. Case Study 1: Dr. Yvonne Traynor, Henkel Case. Study 2: Sean Giblin, Cylon Controls. Case Study 3: Anthony McCauley, Fujitsu
In this work, we create an international marketing plan in order to extend the production and distribution of a famous sunglasses brand, Gentle Monster.
Introduction - History - Origin
Vision - Mission - Values of the company
Key Product - Key Market -Key Competitions
SWOT
Financials
Global turnover
Global net profits or
Turnover - Geographic
Corporate Governance & Ethical practice of company
CSR
Success Story
Failure & Setback Story
R&D
Future Global challenges
Acquisition and Divestment
Cesim Project management simulation game has been designed to capture the essence of project management in an environment of collaborative and competitive elements.
Find out more here: https://www.cesim.com/simulations/cesim-project-management-simulation
The three Enterprise Innovation Networks The Irish Software Association (ISIN), Industry Research & Development Group (IRDG) and the Construction IT Alliance (CITA) EIN, all funded by Enterprise Ireland hosted a joint seminar on Tuesday 23rd October 2012 in the Dublin City Council offices on Wood Quay from 08.00am - 11.00am. There were 80 delegates in attendance and an additional 20 viewing the event online. The intention of this event was to focus on the need to Collaborate to Innovate for a successful future.
The Opening address was given by Mr Greg Treston from Enterprise Ireland. Greg is Head of Research & Innovation. There was then a short Introduction to each of the Enterprise Innovation Networks. Speakers included Paul Sweetman of ISIN, Denis Hayes of IRDG and Suzanne Purcell of CITA EIN. This was followed by presentation on Collaborating with Third Level Research Institutes by John Whelan, Trinity College Technology Transfer Office and Tom Flanagan, DIT Hothouse. Three case Studies followed. Case Study 1: Dr. Yvonne Traynor, Henkel Case. Study 2: Sean Giblin, Cylon Controls. Case Study 3: Anthony McCauley, Fujitsu
Under the guidance of 3M’s Strategic Marketing Planner, we conducted a brand perception study and competitive analysis of 3M within the pharmacy channel. Through observational research, in-depth interviews, and our own survey design and analysis we were able to analyse how the brand is perceived by pharmacists in relation to their key competitors. Additionally, we identified key purchasing drivers and barriers. We leveraged our insights to offer recommendations regarding how 3M can be more impactful in this channel and where they can fill gaps in the market.
Entrepreneurship Challenges Lessons from an Automotive Start Upijtsrd
"The present paper describes an automotive start up company, Quadratech Autocomp Private Limited. This company was established by four entrepreneurs in Pune city in the year 2010 and manufactures specialised starter motor housings required in two wheelers. The research paper gives an overview of the company, the driving force behind its establishment, the challenges faced in the initial years of establishment and how these were tackled to make Quadratech number 1 tier 2 supplier in Pune city. In the era of focus on start ups, the exposure of Quadratech gives a good lesson on challenges faced by new units and the strategies that can be adopted to overcome them. Mylavarapu Monika Jahnavi ""Entrepreneurship Challenges: Lessons from an Automotive Start-Up"" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Special Issue | Fostering Innovation, Integration and Inclusion Through Interdisciplinary Practices in Management , March 2019, URL: https://www.ijtsrd.com/papers/ijtsrd23057.pdf
Paper URL: https://www.ijtsrd.com/management/new-venture-start-up/23057/entrepreneurship-challenges-lessons-from-an-automotive-start-up/mylavarapu-monika-jahnavi"
The latest edition of Fastest Growing MSMEs In India 2022, highlights the prime leader Mr. Rajesh Kumar Gupta, MD of Sefar India, who provides a leading international manufacturing industry working with precision fabrics that are made up of monofilaments and serving through Indian Industrial filtration demands.
Unleashing the Growth Potential of Telecomm - The telecomm industry is taking a leap into new ways of defining and delivering its offerings. - The 10 Most Prominent Telecom Solution Providers of 2019
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
1. Project on
Cost & Management
Accounting Aspect of 3M
Submitted to:
Dr. Anupam Mitra
Group 5 Members
Pallavi Tulshiram Ghandat
Prabhash Babbar
Prashant Kumar Patro
Prithvi Rao
Priya N S
Priyanka Manchanda
Rahul Raju
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13020841092
13020841093
13020841094
13020841095
13020841096
13020841097
13020841098
2. ACKNOWLEDGEMENT
We would like to take this opportunity to thank Professor Anupam Mitra (Cost
&Management Accounting) for giving us such an interesting project to work on. This
project has made us more aware of the issues related to one of the biggest
manufacturing firm and has impregnated us with a sense of awareness not only towards
the immediate scenario but the entire trend in total. During the course of our research
we came across certain areas related to the ups and downs of the Manufacturing Secctor
and the potential implications. Our Project – “Cost & Management Accounting Aspect
of 3M” strives to imply, focus and elaborate all possible reasons and strategies followed
by 3M for maintaining its position in the industry.
Thanking You,
Group 5 Section B
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3. CONTENTS
Sl No
Contents
Page No
1
Company Analysis
4
2
Industry Analysis
9
3
Products & Services
15
4
Costing Mechanism
18
5
Pricing Mechanism
22
5
Cost & Management Techniques
27
6
Conclusion
31
6
References
32
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4. COMPANY ANALYSIS
Company Background
The 3M Company is one of the great examples of success through change and
Innovation, formerly it was known as the Minnesota Mining and Manufacturing
Company. The name 3M originates from it. 3M was founded in 1902 along the north
shore of Lake Superior in Minnesota by Henry Bryan, Herman Cable, John Dwan,
William McGonagle and Dr. J. Danley Budd. 3M is an American multinational
conglomerate corporation based in St. Paul Minnesota. It’s a diversified technology
company serving customers and communities with innovative products and services.
Each of their businesses is committed to making their customers lives easier and better.
3M makes everything from tape to high-tech security gear.
3M is the global innovation company that never stops inventing because they are
passionate about making progress possible. People at 3M capture the spark of new
ideas and transform them into thousands of ingenious products and practical
applications that help make people’s lives better. Culture of creative collaboration
inspires a never-ending stream of powerful technologies that combine in unique and
imaginative ways to create innovations that transform people’s experiences. With $30
billion in sales and operations in more than 65 countries, 3M employs more than 88,000
people worldwide who collaborate actively to design, manufacture and engage in the
delivery of products & services spread across 35 3M businesses. The original plan for
the company was to mine the mineral corundum which would then be sold to
manufacturers of grinding but now 3M sells more than 55,000 products worldwide in
about 200 countries and owns more than 45 technology platforms. 3M sells products
directly to users and through numerous wholesalers, retailers, distributors, and dealers
worldwide.
3M technology solutions, hold leading the position in a variety of markets like
Transportation, Hospitals, General Industry, Construction, Aerospace, Railways,
Highways, Defense, Security, Mining, Health, Oil & Gas, Telecom, Marine and Homes. Our
prominent brands include Scotch®, Post-it®, Scotchgard ™, Scotchprint®, Nexcare™,
Scotch-Brite®, Filtrete™, Command™ and Vikuiti™ which is very commonly found in
most homes, retail and office spaces.
Fact is, half the world's population today enjoys experiencing at least one of 3M's
50,000 products, either directly or indirectly, every day. So when you choose 3M, you
can rest assured that you have chosen a company that pursues international standards
of quality, reliability and consistency in every product & service detail, providing
customer value like never before.
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5. Values
•
•
•
•
•
•
Act with uncompromising honesty and integrity in everything we do.
Satisfy our customers with innovative technology and superior quality, value
and service.
Provide our investors an attractive return through sustainable, global growth.
Respect our social and physical environment around the world.
Value and develop our employees' diverse talents, initiative and leadership.
Earn the admiration of all those associated with 3M worldwide.
3M in India
3M India Limited, the Indian subsidiary of 3M Corporation was established in
1988. 3M India is the only Public company 3M has been a steadfast partner in India’s
progress for over 24 years, committed to solving problems unique to the Indian
customer. The Managing Director at 3M India is Mr. Ajay Nanavati.
3M Electro & Communications India Pvt. Ltd. is a privately owned subsidiary of
3M Corporation. Together, these two companies market over 7,000 products in India
with leading positions in health care, industrial, retail, construction, transportation,
energy, utilities, mining, general office and home. In India, the magic of 3M innovation
takes places at our R&D centers, situated at Bengaluru and Gurgaon, NCR (National
Capital Region). Our manufacturing facilities in India are at Bengaluru, Pimpri (Pune),
Ranjangaon (Pune), Ahmedabad & Pondicherry.
Company Performance
The Company registered an overall turnover growth of 17.30% at Rs. 141,036.81
Lakhs for the financial year ended March 31, 2012 compared to Rs. 120,240.89
Lakhs in the previous year.
The operating margin for the current year was at 8.96% compared to 13.82%
for the last year, down by 35.17%. Net Profit before Tax was lower by 35.09% at
Rs. 9,611.06 Lakhs compared to Rs. 14,806.47 Lakhs for the previous year.
1. Net profit after taxation was also lower by 34.45% at Rs.6,477.17 Lakhs
compared to Rs.9,880.72 Lakhs for the previous year mainly on account of:
higher input costs, adverse impact of depreciation of the rupee against all
currencies at Rs. 4,333.49 Lakhs, interest costs at Rs. 318.05 Lakhs and increase
in Corporate Management fee paid to the parent company.
Export Sales de-grew by 20.33% at Rs. 2,248.12 Lakhs for the year ended March
31, 2012 compared to Rs. 2,821.94 Lakhs in the previous year.
The Industrial and Transportation business grew by 24.56%; Health Care
business grew by 13.61%: Display and Graphics business grew by 5.67%;
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6.
Consumer and Office business grew by 24.78% and Safety, Security and
Protection Services business grew by 15.55%.
The EPS (Basic and Diluted) of the Company for the year 2011-12 de-grew by
34.44% to Rs. 57.50 per share from Rs. 87.71 per share.
3M Businesses in India
•
•
•
•
•
Consumer & Office
From simplifying life at home to keeping you organized at work; simplifying life
and work.
Display & Graphics
From signs on the road to the images on your phone; enhancing visual
communication and interactivity.
Electro & Communications
From connecting the world’s power grid to supporting high-tech electronic
devices; enabling tomorrow’s lifestyle today with electrical power,
communications and electronics.
Health Care
From preventing infections to making smiles brighter; promoting health and
improving quality care.
Industrial and Transportation
From underground to outer space, changing how industry works.
Safety, Security & Protection Services
From protecting information to protecting people at work and at play; protecting
people and facilities
3M at a Glance (Year-end 2012)
•
•
•
•
•
•
Global sales: $30 billion.
International (non-US) sales: $19.4 billion (65 percent of company's total).
Operations in more than 70 countries.
3M products sold in nearly 200 countries.
88,000 employees globally.
2012 3Mgives cash and product donations totalled $56.6 million.
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7. Awards and Recognition
The Company’s Electronic City (EC) plant has won the First Prize for Lean
Manufacturing at the National level Lean Six Sigma competition organized by CII
(Confederation of Indian Industry).
The 3M India team made it to the final 24 organizations despite a tough pan
India competition.
The EC plant had entered its lean project on the Sakurai line which won the first
prize in the Lean Manufacturing category, beating companies like Caterpillar.
Customer recognition is the best way to gain credibility for the brand. 3M India
recently received two awards from one of its biggest customers, Maruti Suzuki.
These awards were handed out as a way to recognize Maruti's vendors. The
awards were namely - Overall Star performance Award 2010 -11 Certificate
award for sincere and superior performance in the field of VAVE in the year
2010-11.
3M Competitors
The major competitors of 3M are General Electric, Johnson and Johnson, and
Kimberly Clark, Reliance Industries Ltd. Sintex Industries Ltd.
Name
Grasim
3M India
Voltas
Century
Nava Bharat Ven
Bombay Dyeing
Sintex Ind
NESCO
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Competition Analysis (India)
Market Cap.
Sales
Net Profit
24,454.25
3,847.70
3,775.39
2,610.86
1,523.70
1,522.16
1,063.01
1,056.83
(Rs. cr.)
5,255.01
1,225.99
1,574.13
52.27
5,565.43
180.07
5,949.47
-34.49
1,124.20
238.31
2,329.26
75.7
2,971.79
269.19
143.46
81.69
Total
Assets
11,293.60
674.55
1,694.59
6,204.40
2,432.07
2,648.68
5,384.24
366.04
8. SWOT Analysis of 3M
Strengths
•
•
•
•
Diversified businesses - industrial and transportation, healthcare, display and
graphics, consumer and office, safety, security and protection services, and
electro and communications.
Strong research and development capability
Diversified geographic presence
Solid revenue & profit growth
Weaknesses
•
•
•
•
Low inventory turnover which impacts inventories and margins
Weaker than expected performance in key segments
Not as nimble as smaller, more focused competitors
Lack of synergy between business units
Opportunities
•
•
•
•
•
Acquisitions in key operating areas
Continued global expansion.
Rising healthcare spending in the US
Security concerns with weaker economy in the US could present opportunities
for 3M's security business
Markets similar to areas it is currently in, such as renewable energy, water
infrastructure, architecture, and lighting.
Threats
•
•
•
•
Rising commodity and energy prices
Exchange rates fluctuations
Environmental regulations
Consumer preferences and competitive conditions.
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9. INDUSTRY ANALYSIS
Manufacturing industry is the collection of all industries engaged in the
production of goods either for use or for sale, where production is done by mechanical
transformation, chemical or biological processing to obtain industrial goods.
According to North American Industry Classification System, manufacturing industry is
defined as follows:
The Manufacturing sector comprises establishments engaged in the mechanical,
physical, or chemical transformation of materials, substances, or components into new
products. The assembling of component parts of manufactured products is considered
also manufacturing. Establishments in the Manufacturing sector are often described as
plants, factories, or mills and characteristically use power-driven machines and
materials-handling equipment. Apart from these, establishments that transform
materials or substances into new products by hand or in the worker's home and small
stores like bakeries, candy stores, and custom tailors, may also be included in this
sector. Establishment that process materials is also included in manufacturing.
Manufacturing plays a central part in many different sectors such as the
industrial, automotive and food industries. Other market segments that involve a degree
of manufacturing include the chemical, aerospace and defense, electronics and
pharmaceutical industries. Manufacturing is used to produce materials such as paper,
wood, plastics and packaging. Specifically, industrial manufacturing covers the mass
production of finished goods from raw materials where machinery and materialshandling equipment are optimized for output. The main pressures for companies
operating in the global manufacturing industry involve the conception of innovative
products, competition from domestic and foreign companies, and making a profit while
satisfying the need for cost competitiveness.
Global Economic Overview
Global prospects have improved but the road to recovery in the advanced
economies will remain rough. World output growth is forecast to reach 3¼ percent in
2013 and 4 percent in 2014. In the major advanced economies, activity is expected to
gradually accelerate, following a weak start to 2013, with the United States in the lead.
In emerging market and developing economies, activity has already picked up steam.
Advanced economy policymakers have successfully defused two of the biggest threats
to the global recovery, a breakup of the euro area and a sharp fiscal contraction in the
United States caused by a plunge off the “fiscal cliff.” In the short term, risks mainly
relate to developments in the euro area, including uncertainty about the fallout from
events in Cyprus and politics in Italy as well as vulnerabilities in the periphery. In the
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10. medium term, the key risks relate to adjustment fatigue, insufficient institutional
reform, and prolonged stagnation in the euro area as well as high fiscal deficits and debt
in the United States and Japan. In advanced economies, the right macroeconomic
approach continues to be gradual but sustained fiscal adjustment, built on measures
that limit damage to activity and accommodative monetary policy aimed at supporting
internal demand. The euroarea needs to strengthen the Economic and Monetary Union
(EMU). In emerging market and developing economies, some tightening of policies
appears appropriate in the medium term.
Global Trends in Manufacturing Industry
World manufacturing output growth slightly improved in the third quarter of
2013, indicating that the recovery from recession is continuing to move forth. Some
positive changes in industrial growth were observed across the industrialized
economies. World manufacturing output grew by 2.4 percent in the third quarter
compared to 1.8 percent of the revised estimate for the second quarter. Industrialized
countries have maintained the upward growth trend in manufacturing, which was
initially observed in the previous quarter. Despite these positive indications, the pace of
global manufacturing output growth still remains low. Industrialized countries that
have recently gained some speed have not yet achieved higher growth, while the growth
of developing and emerging industrial economies, which account for most of global
manufacturing growth, has slowed
This is clearly reflected in PMI, an indicator of the economic health of the
manufacturing sector(JPMorgan Global Manufacturing Purchasing Manager’s Index,
Markit Eurozone Manufacturing PMI ). The PMI index is based on five major indicators:
new orders, inventory levels, production, supplier deliveries and the employment
environment. There is an increase in JPMorgan Global Manufacturing Purchasing
Managers’ Index (PMI) from 51.8 in September to 52.1 in October, its highest point
since May 2011 reflecting modest growth.
The Markit Eurozone Manufacturing PMI has shown modest expansion for four
consecutive months—a sign that Europe has begun to rebound after its deep two-year
recession. The story is similar in Canada, throughout Asia and in the emerging markets.
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11. The manufacturing output of the United States grew by 2.3 percent in the third
quarter, indicating sustained economic recovery.
According to the US National Association of Manufacturers, the US represents
more than a fifth of the global manufacturing industry, with China producing 15% and
Japan 12% of manufactured product.in global scenario TOYOTO leads with a revenue of
235,364 mil USD.
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12. Industry Challenges
Industrial-sector growth during the current financial year is expected to be
between 4 and 5 per cent. At this rate, the annual growth would be less than the
annual growth rates achieved in the recent past and far below the potential
growth rate.
The challenge in the short term would, therefore, be to shore up business
sentiment, spur investment in productive activities, and identify bottlenecks
That can be removed in a reasonably short period of time.
The government has already made some quick moves to clear bottlenecks in
some critical sectors such as coal and power and is also pushing forward project
implementation in some key infrastructure sectors.
With the easing of headline inflation, moderation in commodities prices in the
international market, and revival of manufacturing performance in recent
months in the major economies,
India’s industrial sector is expected to rebound during the next financial year.
Manufacturing Sector Scenario
The manufacturing sector continues to be a mainstay of US economic
productivity, generating $1.8 trillion in GDP in 2011 (12.2% of total U.S. GDP). U.S.
manufacturing firms lead the Nation in exports: The $1.3 trillion of manufactured goods
shipped abroad constituted 86% of all U.S. goods exported in 2011. Moreover,
manufacturing has a larger multiplier effect than any other major economic activity – $1
spent in manufacturing generates $1.35 in additional economic activity.
The manufacturing sector employed 11.8 million workers in 2011, or 9% of total
employment, and supported additional non-manufacturing jobs up and down the supply
chain as well as in financial services. In 2010, total hourly compensation, which includes
employer-provided benefits, was $38.27 for workers in manufacturing jobs and $32.84
for workers in non-manufacturing jobs, a 17 percent premium.2 In addition,
manufacturing jobs translate into additional jobs in other parts of the economy. At
current manufacturing employment levels, almost 7 million additional jobs in other
sectors of the economy estimated to dependent on manufacturing. These additional jobs
do not include new employment created in the local service sector (or “non-tradable”
sector), such as teachers, doctors, landscapers, hair stylist. On average, one new
manufacturing creates 1.6 additional jobs in local service businesses. Jobs in high-tech
manufacturing industries, which require workers with high skill levels and pay aboveaverage wages, generate five local service jobs.
Increasingly capable global competitors are severely challenging American
leadership in manufacturing and innovation. After ranking as the world’s largest
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13. manufacturer for more than a century, the United States has lost ground to China in
terms of share of global manufacturing output. It also has slipped below Germany, South
Korea, and Japan in rankings of manufacturing intensity, a critical indicator of future
job-creating innovation.
The U.S. remains the largest producer of advanced technology products, but
competition in markets for these products also has ramped up over the last decade. In
2011, the U.S. ran a $99 billion deficit in trade of advanced technology products, an
increase of almost 25 percent over the previous year’s deficit. The U.S. has lost 687,000
high-technology manufacturing jobs since 2000,5 when the nation posted a $5 billion
trade surplus in advanced technology products.6 In 2011, imports of advanced
technology products accounted for 17 percent of the total U.S. trade deficit.
U.S. manufacturing has begun to rebound from the “great recession”. Since
December 2009, manufacturers have increased their payrolls by almost 500,000
workers. In the first four months of 2012 alone, the U.S. manufacturing sector added
139,000 jobs.
Some of these jobs were the result of on-shoring—the return of positions and
operations that had been transplanted to lower-wage nations. Shifting global conditions
and promising technologies could add momentum to these nascent trends, leading to a
healthy resurgence in U.S. manufacturing output and to new employment opportunities
across the economy.
In fact, several economic and technological trends are converging to create new
opportunities for U.S. manufacturing. Increasing U.S. manufacturing productivity, rising
labor costs in developing economies, prospective market-disrupting product and
process technologies, growing production of domestic natural gas, and the desire to
protect home-grown intellectual property are shifting the comparative advantages of
global competitors. The shifts, many predict, will favor the U.S. manufacturing sectors,
especially industries that produce high-value-added goods.
Manufacturing Companies of US And 3M
In US the largest manufacturing company by revenue is GENERAL ELECTRIC
(235,364 mil USD) followed by FORD (221,551 Mil USD).3M is currently ranked 33rd
generating revenue of 29,611 million USD.
3M has a majority of its manufacturing in the U.S., including operations in 28 U.S.
states and 33,000 employees. In addition, 3M conducts over 60% of its worldwide R&D
activities in the U.S. While its U.S. presence is strong, 3M is increasingly a global
company. Specifically, in 2012, approximately two-thirds of 3M’s sales were outside the
United States. Accordingly, being able to compete successfully in the global marketplace
is critical to 3M.
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14. Diagram: Competition Analysis (Global)
India’s Manufacturing Sector & 3M in India
India’s manufacturing segment is a crucial cog in the wheel of economic progress; the
sector’s contribution to the gross domestic product (GDP) being 16 per cent. With the
passage of time post 1990-economic liberalisation era, India has well realised the
importance of manufacturing for the overall industrial development. In this wake, the
Government has also been very pro-active, especially during the last decade.
The recent initiative counts back to the Manufacturing Policy that was announced in
2010. It was followed by the introduction of a systematic Manufacturing Plan for the
country, designed with extensive involvement of industry. Now India Inc. and the
Government are focusing their energies on implementation of this Plan.
Growth Trend
The HSBC India Manufacturing Purchasing Managers' Index (PMI) - a measure of
factory production - stood at 48.5 in August 2013. 3M India Limited, the Indian
subsidiary of 3M Corporation was established in 1988. 3M has been a steadfast partner
in India’s progress for over 24 years, committed to solving problems unique to the
Indian customer. The Managing Director at 3M India is Mr. Ajay Nanavati.
3M Electro & Communications India Pvt. Ltd. is a privately owned subsidiary of
3M Corporation. Together, these two companies market over 7,000 products in India
with leading positions in health care, industrial, retail, construction, transportation,
energy, utilities, mining, general office and home. In India, the magic of 3M innovation
takes places at our R&D centers, situated at Bengaluru and Gurgaon, NCR (National
Capital Region). Our manufacturing facilities in India are at Bengaluru, Pimpri (Pune),
Ranjangaon (Pune), Ahmedabad & Pondicherry.
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15. PRODUCTS & SERVICES
Making life easy where 3M solution excel, today everyone experiences 3M innovation
right from mobile phone to vehicle. Innovative strategies employed by 3M lead to
various product and service development which are as follows:
1. Displays & Graphics
3M is one of the world leaders in films that brighten the displays on electronic
products, such as flat-panel computer monitors, cellular phones, PDAs, and LCD
televisions.
Architectural Markets
Commercial Graphics
Computer Privacy Filters
Digital Signage & Narrowcasting Solutions
Mobile Interactive Solutions
3M Touch Systems
Traffic Safety Systems
2. Manufacturing & Industry
Our innovative products and services help
manufacturers improve their businesses. With a global
network, we meet needs of both multinational and local
customers.
Abrasives
3M Adhesives & Tapes
3M™ VHB™ Tapes
3M™ Purification
Dyneon™ Fluoropolymers
Energy Markets
3. Electronics, Electrical & Communications
3M is a leading supplier of innovative solutions to the
electrical, electronics, and telecommunications
industries.
Electronics Design & Manufacturing
Electrical Markets
Telecommunication Solutions
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16. 4. Office
We continue to rejuvenate products for the office. An example of this is the Postit brand which includes notes, flags, easel pads. Today more than 1,000 Post-it®
products are sold in more than 100 countries.
Scotch® Products
5. Health Care
3M Health Care is committed to providing the health care community with
innovative solutions, based on 3M's diversified technologies, that help improve
the quality of life.
Dental (3M ESPE)
Food Safety
Infection Prevention Solutions
Orthodontics (3M Unitek)
Skin and Wound Care
Stethoscopes (Littmann®)
6. Safety, Security, and Protection
We produce products that increase the safety, security, and productivity of
workers, facilities, and systems around the world.
Building & Commercial Services
Corrosion Protection Products
Food Safety
Mining Market Center
Personal Safety
Security Systems
Track & Trace Solutions
Traffic Safety Systems
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17. 7. Home & Leisure
Some of the world’s best-known consumer brands, Scotch®, Post-it®, ScotchBrite®, and Scotchgard™, are household names. 3M people
find ways to make life better and easier.
Scotch-Brite®
Nexcare™
8. Transportation Industry
We provide high-quality abrasives, tapes, films, adhesives, and specialty
materials for the manufacture, repair, and maintenance of autos, aircraft, boats,
and other vehicles.
3M Automotive OEM
3M Automotive Aftermarket
3M Car Care
Traffic Safety Systems
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18. COSTING MECHANISM
Process Costing
Process costing is a form of operations costing which is used where standardized
homogeneous goods are produced. This costing method is widely used in the cement
industry. Process costing is also used in the assembly type of industries also. It is
assumed in process costing that the average cost presents the cost per unit. Cost of
production during a particular period is divided by the number of units produced
during that period to arrive at the cost per unit.
Items on the Debit side of Process A/c.
Each process account is debited with –
Cost of materials used in that process.
Cost of labour incurred in that process.
Direct expenses incurred in that process.
Overheads charged to that process on some pre determined.
Cost of ratification of normal defectives.
Cost of abnormal gain (if any arises in that process)
Items on the Credit side:
Each process account is credited with
Scrap value of Normal Loss (if any) occurs in that process.
Cost of Abnormal Loss (if any occurs in that process)
Guidelines Used In Preparing Cost Sheet
•
Materials
Proper records shall be maintained showing separately all receipts, issues and
balances both in quantities and cost of each item of direct materials required and
actually used in the production, processing or manufacture of products referred
to in rule 2, in any form or any type. These records for direct materials shall
contain such details as to enable the company to determine the quantity and cost
of receipt (including all direct charges upto the works in respect of all major
direct materials), separately for imported and indigenous supplies. Proper
records shall be maintained indicating the quantity and cost of by-product
recovered in the different processes having significant value say five per cent or
above of the cost of input of materials. Proper records shall be maintained to
show the receipts, issues and balances, both in quantities and cost of each item of
any process material or chemicals, consumable stores, small tools and machinery
spares. The cost shall include all direct charges upto works. The cost of
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19. consumption of consumable stores, small tools, and machinery spares shall be
charged to the relevant cost centres on the basis of actual issues.
•
Salaries and wages
Proper records shall be maintained to show the attendance and earnings of all
employees of the cost centres/ departments and the work on which they are
employed. The records shall also indicate the following separately for each cost
centre/ department:
•
•
•
•
•
Piece rate wages earned (wherever applicable);
Incentive wages earned, either individually or collectively as production
bonus or
under any other scheme based on output;
Overtime wages earned;
Earnings of casual labour;
Idle time shall be separately recorded under classified headings indicating the
reasons therefor. The method followed for accounting of idle time payments in
determining the cost of product shall be disclosed in the cost records. Any wages
and salaries allocable , to capital works such as additions to plant and machinery,
buildings or other fixed assets shall be accounted for under the relevant capital
heads.
•
Service department expense
Detailed records shall be maintained to indicate expenses incurred in respect of
each service department or cost centre like laboratory, welfare, transport etc.
These expenses shall be apportioned to other services and production
departments on equitable basis and applied consistently.
•
Utilities
• Water
• Steam
• Power
• Others
•
• Maintenance
Proper records showing the expenditure incurred by the workshop under
different heads and on repairs and maintenance by the various cost centres/
departments shall be maintained. The records shall also indicate the basis of
charging the workshop/ tool room expenses to different cost centres/
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20. •
departments and units. Where maintenance work is done by direct workers of
any production cost centre, the wages and salaries of such workers shall be
treated as direct expenses of the respective cost centre
Depreciation
The basis on which depreciation is calculated and allocated/ apportioned to the
various cost centres/ departments and absorbed on the products shall be clearly
indicated in the cost records. The cumulative depreciation charged in the cost
records, against any individual item of asset shall not, however, exceed the
original cost of the respective asset.
•
Other overheads
Proper records shall be maintained showing the various items of expenses
comprising the other overheads. These expenses shall be analysed, classified and
grouped according to functions, viz. works, administration, selling and
distribution. Basis of apportionment or absorption of overheads to the cost
centres and products shall be indicated in the cost records.
•
R&D Expenses
Expenses incurred by the Research and Development department for furnishing
technical knowhow to outsiders shall be recorded separately and excluded from
the cost of product(s).
•
Interest
The basis of apportionment of interest shall be spelt out clearly in the cost
statements.
•
Packing
Proper records shall be maintained showing the quantity and cost of various
packing materials and other expenses incurred for packing the finished products
for the marketing of the product. Where such expenses are incurred in common
for other products also, the basis of apportioning the expenses between the
relevant products shall be clearly indicated in the cost records and applied
consistently. Detailed records of the expenses incurred on export packing, if any,
shall also be kept separately and exhibited in the relevant cost statements for
exports.
•
Work in progress and finished goods stock
The appropriate share of conversion cost upto the stage of completion shall be
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21. •
taken into account while computing the cost of work in progress. The method
adopted for determining the cost of work in progress and finished goods shall be
followed consistently.
Cost statements
The product emerging from a process which forms raw material for a subsequent
process shall be valued at the cost of production upto the previous stage. If the
company is operating more than one factory, separate cost statements as
specified above shall be maintained in respect of each factory.
•
Production records
The cost of all finished and packed production shall be kept in detail for each
type of product or in the form of control accounts provided the value of the
balances according to such control accounts are reconciled periodically at least
once in a year with the value of the Quantities shown in the quantitative account
maintained for each type of products.
•
Reconciliation of cost and financial accounts
Cost records shall be reconciled with the financial books of account for the
financial year so as to ensure accuracy. Variations, if any, shall be clearly
indicated and explained. The reconciliation shall be done in such a manner that
profit of the product under reference can be correctly arrived at and reconciled
with the overall profit of the company.
•
Adjustment of cost variances
Where the company maintains cost records on any basis other than actual such
as standard costing, the records shall indicate the procedure followed by the
company in working out the cost of product under such system.
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22. PRICING MECHANISM
Factors That Will Influence Your Product Pricing Mechanism
1. The level Of Competition
Most entrepreneurs fancy the concept of selling their products with a very high
margin. This idea can only be realistic when you have a monopolistic hold on the
market. But if not, you can’t sell with your desired profit margin without getting a sting
from competition.
When trying to adopt a product pricing strategy or determine the right price for
your product, the issue of competition is a factor that must be trashed out effectively.
The more intense the competition in your industry is, the more flexible your product
pricing strategy and policy will have to be.
2. Perceived value of your product
This is another factor you must take into consideration before setting a price for
your product. Your first step is to ask this question “what is the perceived value of my
product in the heart of the customer? You must strive to find a good and definite answer
to this question before fixing a price for your product.
The reason perceived value is a critical factor to consider in a product pricing
strategy is because customers
often associate low price with
low quality. Meaning, if your
product is priced too low, the
customers tend to feel the
materials used in producing the
goods is inferior and so
therefore, the product is of low
quality. So before fixing a price
for your product, make sure you
strike a balance between the
price of your product and its
perceived value.
3. Product development cost
This is definitely a factor you cannot turn a blind eye to. With respect to normal
business and market economics, you should never price your product below its actual
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23. cost price. Your actual product cost price is determined by the total cost of production
including tax, divided by the total number of products produced.
But in this case, I am not talking about production cost. I am talking about
product development cost; a cost incurred from research and experimentation, a cost
that’s usually incurred when bringing an innovative product to the market. If you are a
business owner, you should know that newly introduced products usually command a
high price. This high introductory price is based on two reasons:
a.
The first reason for the high product price is due to lack of competition.
Since the product is the first of its kind in the market place, there will be less or no
competition thereby giving room for the company to fix price.
b.
The second reason is this; a high price will enable the manufacturer
recover the heavy investments channelled into the research and development of the
product.
However, I have seen some company successfully use the product pricing
strategy of losing on the front end by pricing below cost price only to recoup you losses
and pick up some profits from the back end. So whatever product pricing strategy you
choose; just make sure it positively adds to your bottom line.
4. Economic trend
This is another unavoidable factor that can influence the pricing of your product.
I don’t even need to stress much on this. As an entrepreneur, you should know that
economic factors such as taxation rate, labor cost, inflation rate, and currency exchange
rate, government’s fiscal and monetary policy will definitely influence your adopted
product pricing strategy either positively or negatively.
5. Level of market demand
This is the fifth factor that can greatly affect your product pricing strategy. Just
like economic factor, I feel this point is self explanatory. In business economics, if
demand exceeds supply, there tends to be a mad rush for the few available products,
thus inflating the price of the product and vice versa. Some companies even go as far as
creating artificial scarcity in order to gain a stronger hold on the industrial price level.
6. Demographics
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24. The demographics of the targeted customers will indisputably influence the pricing
of your product. Demographic factors to consider before taking a stand on your product
price include:
The age bracket of the customers you are targeting
Your business location and customer’s location
Educational status of your targeted market
7. Class of targeted customers
The class of customers you are targeting will greatly influence the pricing of your
product. In the society, there are three classes of people. The rich, the middle class and
the poor or more preferably “low income earners,” who are always the majority in
terms of population. A product targeted at the rich will surely command a higher price
than those targeted at the middle class. If products targeted at the rich commands a low
price, it will be tagged valueless by the rich. So when devising your product pricing
strategy; consider the societal class of your targeted customers first. It’s very important.
For instance, there are cars for the rich and cars for the middle class; both can’t be can’t
be sold in the market place with the same product pricing strategy.
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25. PRICING EXAMPLES
1. 3M Electrical Market Divisions
3M produces over 70,000 existing products many of which are designed specifically
for the electrical, electronics and telecommunications industries. It invests in over
$1 Billion a year on R & D and employ over 7,000 research engineers dedicated to
meeting customer’s needs. By working closely with its customers 3M is able to apply
its vast experience in cutting edge technologies where it counts the most: optimizing
their product or system capabilities. In 3M, the employees on the receiving end of
the unrivalled support of a global company, with a strong local presence. Moreover,
all its products are independently tested to the major industry standards. They have
all their products marketed under four major categories: Heat Shrink, Tapex, Pushon
and Scotchcast 450. The product is priced according the lot size, category, after sales
services and logistics charges. Pricing of a few products in India can be shown as
below:
(Source: http://www.indiancables.net)
2. 3M Optical Systems
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26. At 3M Optical Systems, 3M lead the world in creating boundary-pushing display films
that optimize light and advance the performance of LCD displays. Light-optimization
technology from 3M Optical Systems can help make LCD displays brighter, thinner and
more efficient than ever before. It's a difference customers experience and believe – and
it's designed especially for customers favorite every day devices. The pricing for
different products is as follows:
(Source: http://solutions.3mindia.co.in)
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27. COST & MANAGEMENT TECHNIQUES
Major Cost Components of 3M
The major cost components for 3M India may be listed as follows:
Assets Taken On Lease:
The Company has taken office premises, warehouse, residential premises,
vehicles and office equipment under operating lease agreements that are
renewable on a periodic basis at the option of both the lessor and lessee. The
initial tenure of the lease is generally for eleven months to ninety six months.
Presently, the Company's operating results were managed on the basis of its
existing segment structures viz., Industrial and Transportation, Health Care,
Display and Graphics, Consumer and Office and Safety, Security and Protection
Services.
Inventories:
Inventories are valued at the lower of cost and estimated net realizable value,
after providing for cost of obsolescence and other anticipated losses, wherever
considered necessary. The costs of raw materials and traded goods are
ascertained on FIFO basis, whereas manufactured work-in-progress and finished
goods are ascertained on weighted average method.
Finished goods and work-in-progress include costs of conversion and other
costs incurred in bringing the inventories to their present location and condition.
Net realizable value is the estimated selling price in the ordinary course of
business, less the estimated costs of completion and the estimated costs
necessary to make the sale.
Raw Materials Consumption for 2013
6%
Others
9%
12%
46%
Self Adhesive Lables
Abrasives
Tapes
27%
Epoxy Resins
Major costs for the year 2013 are as follows (Source: 3M Annual Report 2012-13)
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29. The Supply Chain of 3M India follows a complex network starting from
mining to distributions among the clients. The following departments head all
daily business operations at 3M India.
Corporate Office:
UB City, Bangalore
R & D Office:
Electronics City, Bangalore
Udyog Vihar, Gurgaon
Manufacturing Cites:
Electronics City, Bangalore
Shirur, Pune
Sanad, Ahmedabad
Pimpri, Pune
Mettupalayam, Pondicherry
Distribution Centres:
Udyog Vihar, Gurgaon
Bandra, Mumbai
Anna Salai, Chennai
Upper Wood Street, Kolkata
Senapati Bapat Road, Pune
Major production include raw materials such as abrasives, rubber, adhesives,
epoxy, chemicals etc are obtained from various locations in India which are then
manufactured to required products. The R & D office keeps on innovating new products
based on needs, demand and trends in the market.
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30. Sales Contribution (2013)
1%
1%
0%
0%
4%
Self Adhesive Lables
10%
Others
Abrasives
41%
13%
Surgical & Dental Products
Epoxy Component
Other Operating Revenue
Paint Polishes
Duty Drawback
30%
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Scrap
31. CONCLUSION
3M, as a diversified global technology company their businesses draw on the
creative thinking of their employees to churn out game-changing technologies, initiate
sound practices and invent sophisticated manufacturing processes that ultimately help
our customers be successful in their own businesses. This 3M culture fosters a spirit of
entrepreneurship and perseverance that outside organizations have come to recognize.
3M captures the spark of new ideas and transforms them into thousands of ingenious
products. The culture of creative collaboration inspires a never-ending stream of
powerful technologies that make life better & It's the innovation company that never
stops inventing.
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32. REFERENCES
Annual Report of 3M India 2012-13
www.solutions.3mindia.co.in/wps/portal/3M/
www.moneycontrol.com
www.economictimes.indiatimes.com
Trends in Manufacturing Sector across Globe, 2012, Wall Street Journal
www.investopedia.com
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