Project Report on Micro Inks Ltd and the Ink Industry

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A Project Report
AT
MICOINKS LTD.

CONTENTS
Serial No. Topics Page No.
1. Ink Industry
 Origins
 Global Ink Market
 Where we Stand
About Us
 Company
 Our growth
 Landmark & achievement
 Bilakhia Group
 People
 General information
 Mission & Vision
 Micro inks leadership Value
2. Organisational structure
3. Micro inks limited-Department
 Human Resources Department
 Production department
 Marketing Department
 Finance Department
4. Project work on Corporate Debt
Restructuring
5. Conclusion & Abbreviations
6. Bibliography

INK INDUSTRY
Origins:
Ink is essence of life. Life without ink is hard to
conceive. Centuries ago, it was used to express
thoughts and communicate. And even today, its
impact on our life is remarkable, crucial and
indelible.
Imagine a life where there are no books to
learn from. No morning newspaper to bring us the news.
No magazines to leaf through. No letters to be
exchanged. No fairy tales to read to our children as we put them to sleep. It's no wonder
they say; a world without inks is unimaginable. But where did the story of inks begin?
Perhaps from our desire to communicate with each other across the barriers of time and
space. Centuries ago, this was conducted through carving on stones, cave walls and tree
barks.
Later, history saw the invention of paper in 105 AD and the earliest use of
inks in the form of coal, gum rosin and tung oil. This was clearly amongst the major
influences that led to the rapid progress of human civilization. Despite its ancient origin,
little has been said or written about the influence of inks throughout history.
Today, inks are our silent companions present in our lives in some form or
the other in almost everything that we do. Thanks to modern printing technology in
particular. A saga, which began in 1450 AD, when Johan Gutenberg invented the
letterpress. Thereafter, ink technology evolved in tandem with the evolution of printing
technologies.
In the present day, Printing Inks are a blend of various ingredients,
formulated to create graphic design or text on a variety of substrates or surfaces ranging
from paper to polyfilms, foils and metals. These inks are a complex mixture of pigments,
flushes, resins, vegetable oils, waxes and solvents. Today, varieties in ink are as extensive
as printing methods themselves. Broadly, these consist of Lithography, Flexography,
Gravure, Screen printing etc.

Developments in printing technology and processes made it necessary for
Printing Inks to have very high quality. Fact remains, Printing Inks business, though
apparently simplistic, is a highly complex one. Truly an art and science in itself.
Global Ink Market:
The world market of Printing Inks is around US $15
to US $ 16 billion. The USA leads with a global
market share of 30%. Among the leading Ink
manufacturing companies worldwide, Dainippon Ink /
Sun Chemicals is the largest.
Micro Inks ranks the 15th
largest globally and No.1 in
India
Printing Inks technology has evolved in tandem with the growth of printing technologies.
Today, Printing Inks are a unique blend of various ingredients, which ultimately find
expression in creating exciting graphic designs or text, on a variety of substrates or
surfaces. Advancing printing technology has also accelerated the creation of high quality
inks. The global ink industry has matched progressing technology, stride for stride.
The world market for Printing Inks was valued at US $ 14.3 billion in 1999-2000 and is
growing at a rate of around 2% to 3%. It is estimated that by the year 2004 the world
market will be around US$15 to US $ 16 billion. The USA is by far the largest market for
Printing Inks with nearly 30%+ global share.

Where We Stand:
The best way to reach anywhere in the world is to get
started. With ambition we started. With vision we
grew. With efforts we succeeded.
Micro inks ranks 15th
largest in the world and No. 1 in
India.
RANK
The International Rankings
(Ink and Graphic Arts Sales)
SALE
(US $)
1 Dainippon Ink & Chemicals/Sun Chemical $4.78B
2 Flint Ink $1.45B
3
Toyo Ink
$1.12B
4 Sakata Inx $821M
5
BASF Drucksysteme GmbH
$746M
6
SICPA
$740M
7
Huber Group
$570M
8 Tokyo Printing Ink $503M
9 Siegwerk Druckfarben AG $490M
10 Inctec Inc. $333M
11 ANI Printing Inks $290M
12
Sericol International
$275M

13
T&K Toka
$240M
14 Dainichiseika Color & Chemicals $235M
15 Micro Inks $171M
16 Royal Dutch Printing Ink Van Son $150M
17 Apple Druckfarben $66M
18 Sanchez S.A. de C.V. $60M
19 Zeller+Gmelin $58M
20 Environmental Inks & Coatings $44M
21 Ruco Druckfarben $44M
22 Encres Dubuit $31M
23 Brancher Company $29M
24 Cromos S.A. Tintas Graficas $28M
Source: Ink world Magazine, November 2004

ABOUT US
Company:
Micro Inks Ltd (MICRO) is a part of US $ 239
million Bilakhia group, which has diverse
interests in printing inks, resins, flushed
pigments and crop protection chemicals.
Today,
through the
years of
growth,
MICRO has
transformed itself into a multi-dimensional,
multi-national company offering a
comprehensive range of quality products,
efficient customer service and a wide distribution
network.
MICRO is the undisputed market leader in the country commanding a market
share of 30%+ in the US $ 200 million domestic inks industry. In the process, it also
created an enviable track record of one of the fastest growing company. And took its
annual sales figures galloping from a mere US $ 5 million in 1993 - 94 to an astonishing
increase to US $ 146 million.
The meteoric ascent of MICRO to the position of a market leader was primarily
the result of the efforts of the people at the helm of affairs - The Bilakhia Group.

Through the years of growth, MICRO has transformed itself into a multi-
dimensional, multi- location company offering a comprehensive range of quality
products, efficient customer service and a wide distribution network. In India, It is a
marketing powerhouse with 12 branches, 5 technical centers and around 500 distributors.
Today, MICRO has spread its wings globally with a distribution network in more than
50+ countries.
MICRO is also the only Printing Inks Company in India, and amongst two or
three companies in the world, to have successfully implemented SAP / R3 solution,
integrating its marketing offices through satellite links.
Together all the elements will work as a single force to offer value to its customers.
Today the company with a modest beginning has grown and consolidated its
strengths, skills and people to achieve a unique enterprise. One which is on its way to
becoming a major player in the global market. A reality, which it achieved through a well
thought out and executed business strategy.
Setting up operations in the world's most highly competitive ink market, USA
with a company called Micro Inks Corporation is the first step towards MICRO'S vision
of leaving behind an impression of being the most dynamic inks company in the world.
Here the Company's core strategy is to offer better value to its customers on the
price quality matrix and participating in their programs to deliver better value to the
customers' customer. At MICRO we starve for having customers' delight and not only
customers' satisfaction.
To make this strategy a success, the Company has stepped up its R&D efforts
in order to develop superior products. On a parallel front, Micro Inks has developed
technology for backward integration into flushed colors, pigments, resins and additives -
the key raw materials for inks. By doing so, MICRO is today the only company in the
world to be self sufficient in all the critical raw materials of Printing Inks.
The next thing on its agenda was to accelerate its inks manufacturing capacities
to keep pace with the global demand. This was done with by MICRO with the setting up
of one of the world's largest ink manufacturing facilities at a single location, in India.
This plant at Silvassa has a world-size capacity of 60,000 metric tones. Here
MICRO manufactures a wide range of inks with innovative and unique process
technologies that have never been attempted before in the industry. Apart from this,
another world size plant has been set up at Vapi, which produces a wide range of flushed

colors, pigments and resins in a single-stream plant for 'seamless' manufacturing of
inks.
Finally, all this is to be backed by the best of technical support and customer service.
All translating ultimately into one fact, MICRO is poised to make an indelible mark on
the world.
Our growth:
In a short span of time, MICRO has transformed
itself into a multi-dimensional, multi-location
company, specifically aimed at reaching our desired
goal of becoming one of the top 5 ink suppliers in the
US in the near future.
MICRO - Then &
Now
1992-93 2003-04
Mfg. Units 1 5
Branches 1 12
Distributors 3 500
Customers 500 5000
Products 2000 24000
Sales People 10 >100
Tech. Service
Centres
--- 5
MICRO Inks - Growth Unlimited:
USD $ Million
1993 2003 CAGR
Sales 3.16 97.12 40%
EBDITA 0.26 20.35 53%
PAT 0.14 10.05 51%

Assets 0.62 60.86 52%
Equity/Reserves 1.28 125.63 52%
Exports -- 40.82 --
Landmarks & achievement:
MICRO has achieved leadership status in a very short
span. The creator of mega single-stream plant for
`seamless' manufacture of inks. We have implemented
SAP/R3 solutions in all areas of operations.
The chronology of a global surge:
1986 - 1992 Private company of the Bilakhia family.
1992 Makes its maiden IPO.
1994 Commissioning of Daman plant.
1998
Began implementation of SAP/R3 ERP solutions, the first in the printing ink industry.
Developed unique pigments and flush technology, and set up a plant at Vapi.
1999 Emerged as a market leader in India. Decided to expand the business globally.
Began the construction of the state-of-the-art R&D center at Daman.
1999 - 2000 Set up one of the world's largest, ink-manufacturing plant at a single location at Silvassa.
2000 Set up a large ink-manufacturing plant at Silvassa.
Implemented a world class plant for manufacturing Alkali Blue and a wide range of high
performance Resins, Waxes and Additives at Vapi II.
Established Micro Inks Corporation at Chicago, USA.
2001 Built world’s largest single stream completely integrated plant for manufacturing pigments,
Flushes, Resins, Varnishes & Inks at EOU, (Vapi III).
A unique concept ensuring product quality, consistency and cost leadership.
2002 Established strong position in USA and rest of the world as a high quality supplier with most

value addition.
2003
MICRO emerges as the top 15 Global Ink Companies.
Successful entry in around 50+ countries spread across all Continents.
Micro Inks Corporation, a wholly owned subsidiary of the Company becomes 12th biggest
company in USA
2005 Merges with The Huber Group, Germany to form world's fifth largest printing ink company
Bilakhia Group:
+ Mitsu Industry
+ Bilag Industry
+ Micro Inks Corporation
Vision tempered with the wisdom
accumulated over the years, has made Bilakhia
Group one of the fastest growing business
houses in the country growing from a base of
around USD 0.21 million in 1990 to more than
USD 2.38 billion in the recently closed financial
year.
The Bilakhia Group is the extraordinary vision of the dynamic first generation
entrepreneurs - the Bilakhia Brothers.
Founded in 1986, the first business foray was into the manufacture of liquid inks with
limited capital and the initial turnover was only a few lakhs of rupees, which started
growing rapidly.

Quick to recognize and adapt to changing market and customer trends, the group
succeeded in fueling growth at a rapid pace. To sustain this impetus, the Group felt the
need to inject more capital.
In 1991 - 92, Micro Inks Limited (MICRO) was therefore consolidated. The IPO at par
was an overwhelming success and raised USD 0.4 million with the Promoters diluting
their stake to around 50%. Since then there has been no looking back.
Growth has spiraled upwards in the Group's inks business at a compounded rate of more
than 45%. Translating into increasing profitability, enhanced manufacturing facilities and
capacities and a well-rounded product portfolio.
In the meanwhile, the group in the early 1990’s also ventured in a small way into the
manufacture of Agrochemicals and intermediates. This venture was called Mitsu
Industries Ltd., Even in this field due to the Bilakhia's business acumen and vision, this
business in 7 years sprinted upwards at compounded rate of more than 100%. More
importantly, it gained global prominence for its mastery over complex chiral chemistry.
These strengths opened up new avenues for exploring promising opportunities on a
global platform. Keen on building on existing synergies, Mitsu soon discovered a like
minded partner in Aventis (Now Bayer Crop Science S.A.), a global life science giant.
Aventis in turn invested in a 51% stake in the synthetic pyrethroid division of Mitsu. In
2002 Avantis further invested a 23% stake in the synthetic pyrethroid division of Mitsu.
This joint venture was christened Bilag and this union of excellence brought forth the
largest synthetic pyrethroid complex in the world and catapulted the fledgling corporate
to the top three manufacturers in the entire range of its products.
All this brought numerous accolades to the Group and soon it achieved the distinction of
being the largest exporter of Agrochemicals from India, ranking amongst the top 5 - 6
manufacturing exporters of the country across all Industries.
Today, tempered with the wisdom accumulated over the years, the Bilakhia Group is 0ne
of the fastest growing business houses in the country growing from a base of around USD
0.21 million in 1990 to more than USD 2.38 billion in the recently closed financial year.
• Amongst the highest manufacturing exporters with exports valued at more than
USD 145 million.
• Products go to more than 50 countries across the World.
• Amongst the most profitable business houses in the country having a Group profit
of more than USD 44 million

• Amongst the top 2 or 3 players in the world in the chosen field in terms of
capacity or in market share and profits.
• Amongst the few Groups to achieve phenomenal growth rate rapidly overtaking
established multinationals in the chosen field.
• All facts that vindicate the commitment, perseverance and ambitious vision of a
group that's well set on the path to realizing its global dreams.
Mitsu Industry:
Mitsu is a progressive venture of Bilakhia
group into the manufacture of Agrochemicals
and intermediates.
Mitsu Industries Ltd., with Bilakhia's business
acumen & vision, sprinted upwards at a
compounded rate of more than 100%, within 7
years. More importantly, it gained global
prominence for its mastery over complex chiral
chemistry.
Mitsu was incorporated in 1990, as a move to diversify, by the Bilakhia Group.
It commenced operations in 1991, with the product Chloral and in the subsequent years it
kept on adding to its product portfolio. In 1993 by carrying out forward integration, it
became the largest exporter of Chlorpyriphos from India.
In the period spanning 1995 -96 it added intermediates and also two new
synthetic pyrethroids, Alpha Cypermethrin and Permethrin, to its portfolio. Its successful
launch of Lambda Cyhalothrin in 1999 reinforced Mitsu's mastery over complex chiral
chemistry.
All this, reflected on the financial stability of Mitsu and in a short span, its
turnover grew from USD 0.6 million to USD 80.67 million. With exports also surging,
Mitsu soon became a dominant global player in pyrethroids insecticides.

Bilag Industry:
Bilag Industries Private Limited is the largest
synthetic pyrethroid complex in the world.
It had also achieved the distinction of being
the largest exporter of Agrochemicals from
India, ranking amongst the top 5-6
manufacturing exporters of the country
across all Industries.
Bilag is a merger of Aventis (Now Bayer Crop Science S.A.), one of the top
five MNC's in the global crop protection industry and Mitsu Industries Ltd., the Rs. 225
crore company of the Bilakhia Group.
Focused totally on the Synthetic Pyrethroids business this venture will
combine Mitsu's manufacturing expertise in Pyrethroids with the worldwide marketing
and distribution of Aventis. Additionally, it will give Bilag access to the latest
technology, newer products and the latest safety and ecological measures adopted by
Aventis in its operations.
Bilag, consequent to the merger has also become the largest and most
integrated manufacturer of synthetic pyrethroids in the world.

Micro Inks Corporation:
A wholly owned subsidiary of Micro Inks
Limited. In the US. Micro Inks Corporation
is the first step towards establishing a
powerful global presence by Hindustan Inks
& Resins Ltd. Micro Inks creates a variety of
inks viz. web heat-set inks, new colors and
black inks, sheet fed inks, publication
gravure inks and many more. Micro Inks is
all set to be amongst the top five in the US
ink industry.
After achieving leadership status in the domestic industry, Micro Inks decided to take on
a much greater challenge. That of broadening its horizons and setting itself the corporate
vision of becoming a significant player in the global ink industry.
Having decided the course of action, Micro Inks promptly plunged itself into a thorough
study of the major ink markets of the world, covering U. S. A., Europe and Asia. Through
its study, the company gained valuable insights into the marketplace.
The world market for Printing Inks was valued at around US$ 14-15 billion in 1999 and
is growing at a rate of around 2%-3%. It is estimated that by the year 2004, the world
market will be around US$ 15 to US $ 16 billion. Of all the markets, USA was the largest
for Printing Inks, with a 30% global share.
For MICRO, this was the beginning. Set in its vision of becoming a truly world-class
company, it had a few things on its immediate agenda. Such as benchmarking quality and

cost, establishing a marketing and distribution network and building a team of people to
compete globally. With a clear focus on the challenges ahead, MICRO set its target on
the largest market for Printing Inks - that of United States of America.
than 45%.
As studies had revealed, the US market was rife with consolidations through acquisitions
leading to a few large players dominating the market. To penetrate this market, a sound
strategy was required along with determination.
A prime step in this direction was through the establishment of physical presence in the
market.
Micro Inks promoted a wholly owned subsidiary in USA by the name of Micro Inks
Corporation.
A company managed by a team consisting of individuals drawn from within the US
industry with ample experience and insight into the market. A company managed by a
team consisting of individuals drawn from within the US industry with ample experience
and insight into the market. The President & CEO of Micro Inks is Mr. James Mahoney,
who has around 37 years of experience in the coatings and printing inks industry. He was
the CEO & President of Flint Inks, Europe.
The Vice-President - Sales & Marketing is Mr. Ronald Douglass who brings with him
about 32 years of experience in companies such as 3M and The Ink Company, recently
acquired by Flint.
The US team comprises of around 50 experienced individuals each being a specialist in
his or her own field, and drawn from within the industry from marketing, technical
services, distribution as well as other relevant disciplines.
Micro Inks is having a factory near Chicago at Kankakee, having 2,68,000 sq. ft. built up
area on 44 acres of land.
Most important of all, Micro’s determination will ensure that it repeats its past growth
records, to emerge as a respected player in the global ink industry. And thereby leave
behind a distinct impression on the world

People:
+ Board of Director
+ Executive Board
A group of highly motivated and focused
team.
Being an organization firmly set on the
path of growth, MICRO naturally has many facets
to it. Bringing all these facets together cohesively is
the responsibility of a confluence of people, who
possess diverse and unique sets of skills. Tapping
into these skills, MICRO has forged a close-knit
world-class team, which is highly focused and goal
driven.
Gifted with intellect and determination this team has been at the forefront of
blending excellence into every level of functioning right from ideation to production.
And riding on the collective strength of this team, MICRO is today poised to bring to
reality a truly global dimension to its efforts.

Board Of Director:
High-caliber team. Widespread experience.
Role of the Board:
• Frame and implement corporate governance policy.
• Enhance shareholders' value.
• Approve strategic plans, directions and provide overall strategic inputs to the
Management Team.
• Create and maintain a high level of transparency.
• Comply with legal requirements and ethical corporate behavior.
• Discharge societal role responsibly.
Mr.Anjum Bilakhia -Chairman
A chemical engineer, having rich experience in the field of inks and
chemicals. Since inception has been looking after the operational issues of the Group. His
project management and operational skills has enabled the Company to emerge as a
leader in the chosen fields. He also looks after projects and operations of other Group
companies.
Mr.Yunus Bilakhia -Chairman
Founder of the Bilakhia Group. A science graduate with more than 18 years
of rich experience in the business of inks and chemicals, he looks after planning and
developmental activities of the Group.
In the year 1996, he was conferred "Outstanding Entrepreneur Award
-1996" by the Federation of Gujarat Industries and was amongst one of the Top 20
Entrepreneurs of India, named by Ernst and Young in 1999. Truly a visionary, with
excellent insight into the Industry.

Mr.Heiner Ringer -Executive Vice Chairman
Mr. Heiner Ringer joined the Huber group in 1979. He has held several
positions of responsibility including head of administration and finance, managing
director of Hostmann-steinberg GmbH and Michael Huber Munchen GmbH - both
subsidiaries of MHM Holding GmbH. He was appointed as the managing director of
MHM Holding GmbH in 1991. Prior to working for the Huber group, he was associated
with the Klinge group from 1970 to 1979 under various positions including head of
human resources development, managing director of the group's lrish subsidiary and head
of organization in Germany. Heiner Ringer obtained his MBA degree from LMU
University Munich/Germany in 1970.
Mr.Ashwani Bhardwaj -Managing Director
47, Science Graduate with MBA in marketing, he has 25 years experience
of which 15 years have been in the printing inks industry. He is with the company since
1995.
Mr.M.L.Bhakta - Director
A recognized corporate lawyer, a senior partner of Kanga & Company. He
is on the Board of several leading companies such as Reliance Industries Ltd. Gujarat
Ambuja Limited,. His vast knowledge and wide experience in the corporate field is an
asset to the Company.
Professor Pradi N Khandwalla -Director
A MBA from Wharton, Pennsylvania and Ph.D. from Carnegie-Mellon,
USA, he is an Associate Member of the Institute of Chartered Accountants of India. His
research and teaching contributions have been in organizational theory and design and
restructuring of organizations for management of excellence, innovative turnaround
management, effective management of public enterprises and governmental organizations
and creativity and innovation. He has been a consultant to many Indian and international
organizations in the areas of team building, innovative excellence, management and
organizational restructuring and creativity training.
Mr.Hasmukh Shah -Director
Currently the Chairman of Gujarat Ecology Commission. He is on the
Board of various companies such as Gujarat Gas Ltd., Sun Pharmaceutical Industries
Limited,. At the same time, he is holding steering positions in several researches,
academic and developmental institutions. He has been a Joint Secretary to the Prime
Minister of India and Chairman of Indian Petrochemical Industries Ltd. (IPCL). His rich
and varied experience in different spheres of business, society and public life, is adding
tremendous value to the Company.

Mr. K. K. Unni -Director
Ex-Vice Chairman of Aventis Crop Science India Ltd., a part of Aventis Crop
Science the second largest crop protection company in the world, one of the biggest
multinational Group of the world. He is also on the Board of Hikal Chemical Industries
Ltd. and Bilag Industries Ltd., a joint venture between Bilakhia's and Bayer Crop Science
SA, France.
He has 33 years of experience in multinational companies to his credit. The Company is
immensely benefiting from his insight into the corporate world.
Ms. Ulla Borgmann -Director
Ulla Borgmann joined the Huber group in 1987. She held several
positions in the technical field, taking over responsibility for all offset development in
1993. She became head of the application lab and technical service for offset in 1998, and
technical director in 2002. She was appointed managing director of MHM Holding
in 2006.
Prior to working for the Huber group she was associated with a smaller
printing ink company from 1981 to 1987 in various technical positions. Ulla Borgmann
obtained her graduate degree in chemical engineering from the university of applied
science in Reutlingen/Germany in 1979 and worked for the university in Stuttgart from
1979 to 1981.
Mr. Shivram Angne -Director
A chemistry graduate with diploma in surface coating technology from
Mumbai. Has a rich experience of 23 years in the Printing Inks industry. Associated with
the Company since its inception. Worked very closely in the areas of quality initiatives,
Human Resource and Systems. He was in charge of the project of implementation of SAP
/ R3 ERP solutions in the organization.
Executive Board :
A young, dynamic team of professionals.
In order to provide a strong management, an Executive Board ( EB ) on
the model of European multinationals has been formulated, which essentially comprises
the Managing Director of the Company as its Chairman and the Heads of various
Functions and Divisions of the Company.
Mr. HeinerRinger -Executive Vice Chairman
Mr. Heiner Ringer joined the Huber group in 1979. He has held several

positions of responsibility including head of administration and finance, managing
director of Hostmann-steinberg GmbH and Michael Huber Munchen GmbH - both
subsidiaries of MHM Holding GmbH. He was appointed as the managing director of
MHM Holding GmbH in 1991. Prior to working for the Huber group, he was associated
with the Klinge group from 1970 to 1979 under various positions including head of
human resources development, managing director of the group's lrish subsidiary and head
of organization in Germany. Heiner Ringer obtained his MBA degree from LMU
University Munich/Germany in 1970.
Mr. Ashwani Bhardwaj –Managing Director
47, Science Graduate with MBA in marketing, he has 25 years experience
of which 15 years have been in the printing inks industry. He is with the company since
1995.
Mr. Ram Mohan V. Chari -Director Finance
41, a member of the Institute of Chartered Accountants of India and the
Institute of Company Secretaries of India and holds a degree in commerce from Gujarat
University, has more than 20 years of experience in finance, accounting, taxation and
corporate laws. He has been with the organization since June 2002.
Mr. Ramakrishna Kamat-Director -Domestic Sales
49, a science graduate with 23 yrs. of extensive experience in Printing Inks
industry. He is a specialized liquid ink technologist and responsible for sales in the
domestic market. He is with the organization since 1992 and has made major
contributions to bring MICRO to the forefront in the Indian market.
Mr. Vimal Mehra-Director International Business
A Bachelors in Economics from Bombay University and Diploma in
Business Management from Rajendra Prasad institute of Mass communications, Bombay.
He has sales and marketing experience of over 35 years in printing inks, of which past 6
years was in USA and Canada to establish Micro Inks sheet fed and raw material
business in North America. He was an Executive Director on the NAPIM (North
American printing ink manufacturers) board, USA from 2003 to 2006. He has been with
the company since 1996.
Mr. Zainul Lakdawala -Director Research
A post graduate in Surface coatings and management study with 35 years of
rich experience in printing ink industry. Well known for his interest and contribution in
the R&D of printing inks, coatings & resins with a wide exposure in various types of
inks/coatings technology and applications. He is an active member of Color Society,
UDCT, Mumbai. He has been with

General Information:
Name of Company : Micro inks LTD.
-----------------------------------------------------------------------------------------------------------
-
Board of Director : Mr.Anjum Bilakhia Chairman
Mr.Yunus Bilakhia Chairman
Mr.Heinrich Ringer Executive Vice Chairman
Mr.Ashwani Bhardwaj Managing Director
Mr.M.L.Bhakta Director
Prof.Pradip Khandwalla Director
Mr.Hasmukh Shah Director
Mr.K.K.Unny Director
Mr. Ursula Borgmann Director
Mr.Shivram Angne Non – Executive Director
Executive Board(EB) : Mr.Heinrich Ringer Executive Vice Chairman
Mr.Ashwani Bhardwaj Managing Director
Mr.Rammohan Chari Director – Finance
Mr.Ramkrishna Kamat Director – Domestic sales
Mr.Vimal Mehra Director – International
Business
Mr.Zainul Lakdawala Director – Research
Mr.Umesh Sharma Sr. Vice President – HR & IT
Dr.L.N.Chatuarvedi Vice President – Technology
Mr.Anil Jain Vice President –
Manufacturing
Mr.Anirudh Joshi General Manager –
Procurement
Vice President &
Company secretary : Mr.Hitesh Parikh
Auditors : Deloitte Haskins & Sells, Chartered Accountants
Bankers : Standard Charterd Bank
Bank of India
Citibank N.A.
UTI Bank Ltd.
State Bank of India
ICICI Bank Limited
BNP Paribas

Registered Office Club House
Bilakhia House
Muktanand Marg.
Chala Vapi – 396191
Works Plants
Vapi - 1 Vapi - 2
Plot No. 2803/2,
Plot No. 808/E

3rd
Phase, GIDC 2nd
Phase, GIDC
Vapi – 396195, Vapi - 396195
Gujarat (India) Gujarat (India)
Vapi – 3 (EOU) MorKhal - 1
Survey No.11,
Plot No.808/E/P, Village, Morkhal,
305/6,305/7 Silvassa,
(100% Export Oriented Unit) (U.T. of Dadara and Nagar Haveli)
2nd
Phase, GIDC
Vapi 396195
Gujarat India)
Morkhal - 2
Daman

Survey No. – 137/1
Survey No. 8/1/2/P
Jani Vankad, 9/P, 10/3, 10/4,
Daman (U. T.) Village, Morkhal,
India Unit 2 – Silvassa.
Micro Inks corporation USA:

The name of Micro Inks Corporation, USA has been changed to Hostmann-
Steinberg Inc. USA
Micro Inks Corporation is the first step towards establishing a powerful global
presence by Micro Inks Limited. Micro Inks creates a variety of inks viz. web heat-
set inks, new colors and black inks, sheet fed inks, publication gravure inks and
many more. Micro Inks is all set to be amongst the top five in the US ink industry.
After achieving leadership status in the domestic industry, Micro Inks decided to take on
a much greater challenge. That of broadening its horizons and setting itself the corporate
vision of becoming a significant player in the global ink industry.
Having decided the course of action Micro Inks promptly plunged itself into a thorough
study of the major ink markets of the world, covering U. S. A., Europe and Asia. Through
its study, the company gained valuable insights into the marketplace.
The world market for Printing Inks was valued at around US$ 14-15 billion in 1999 and
is growing at a rate of around 4-5%. It is estimated that by the year 2004, the world
market will be around US$ 18 billion. Of all the markets, USA was the largest for
Printing Inks, with a 30% global share.
For Micro Inks, this was the beginning. Set in its vision of becoming a truly world-class
company, it had a few things on its immediate agenda. Such as benchmarking quality and
cost, establishing a marketing and distribution network and building a team of people to
compete globally. With a clear focus on the challenges ahead, Micro Inks set its target on
the largest market for Printing Inks - that of United States of America.
than 45%.
As studies had revealed, the US market was rife with consolidations through acquisitions
leading to a few large players dominating the market. To penetrate this market, a sound
strategy was required along with determination.

A prime step in this direction was through the establishment of physical presence in the
market.
Micro Inks is having a factory near Chicago at Kankakee, having 2,68,000 sq. ft. built up
area on 44 acres of land. The plant has been successfully commissioned and product trial
runs carried out for customers have been successful.
Most important of all, Micro Inks determination will ensure that it repeats it's past growth
records, to emerge as a respected player in the global ink industry. And thereby leave
behind a distinct impression on the world.
Inter National Business Non US:
Regular business has already started in more than 50 countries, reflected in our
sales growing from USD 3.8 Million to USD 22 Million in nine months ended
December 2003.
The year gone by was not only remarkable for our US Operations, but also saw us
achieve a very encouraging response and business growth in the Rest Of the World.
MICRO Inks ventured into the global markets using a two-pronged strategy. The global
market was divided as US & Non-US markets, the strategies being different & tailor
made for different regions, taking into account the different market conditions. The world
offers a wide potential for growth that is yet to be tapped to its fullest. In fact, 80% of the
world's inks market is at present being held by just 8 key countries. Our objective for the
next few years would be to break into this stronghold using the valuable lessons learnt in
the U.S. market.
To this purpose, action plans have already been initiated. To tap the markets of Rest Of
the World, we have short-listed a few countries after detailed study. We have also put in
place a dedicated team to pursue this opportunity and they have already penetrated some
of the key markets like Far East, Europe, Russia, South-Pacific, Africa & Latin America.

Mission & Vision:
Misson:
“With utmost respect to human values, we promise to serve our customer with
integrity, through innovative practices/ solutions, on price quality matrix day after
day.”
Vision:

Mikro Inks Leadership Values:
The four implied values encapsulated in this promise represent our company values
are:
Human Value:

We respect the unique needs of customers and employees. We are sensitive to
their differing needs in our interactions with them.
Integrity :
We deliver what we commit with honesty, trustfulness, reliability and uprightness
in whatever we do.
Innovative solution :
We consistently offer novel and superior solutions to satisfy the needs of the
customer.
Price quality matrix ;
We will deliver higher values to the customer through continuous improvement in
quality, cost, speed and simplified processes.
ORGANIZATION STRUCTURE:

Mr.A.G. Bilakhia
Managing
Aswani Bharadwaj
Chief Operating
Umesh Sharma
Sr. V.P HR
R.G.Vyas
Director MFG &
Eng. Service
Snehal Shah
Director
R. Y. Kamat
Director
Domestic
R.V.Chari
Director
Mukesh Agrawal
GM
MIS/Business
Audit
S.J.Angne
Technology &
Innovation
Sanjay Shah
Director
Commercial
J.Mahony
CEO, Micro inks
Corp. USA

Personnel Management:
There is a constantly search for new talent and abilities that can contribute to the
betterment of its research, production, marketing, administration and finance functions.
The company has appraisal system so it keeps manpower data ready on yearly basis, it
includes non – financial enablers in its overall mechanisms for recognition and reward, so
that besides the present, adequate emphasis is placed on the future.
Manpower is important assets of any company. MIL works upon developing it through
training, seminars, etc. MIL values its employees and their bond with company is that of
family.
HR Certain Functions are:
Monthly meeting [Agenda is statutory compliance, Employee strength] with site person.

Security at site
Contract labour Administration
Office equipment [Fax machine, Canera, Computer]
Men wage schedule
Disciplinary action [absentees]
All issue at soft floor
Site Visiting [Weekly, Alternant day]
Statutory compliances
Government Rules & Regulation
Documents [Accident report, Contractor valid license, Legal requirements]
Liaison with government
Yearly Budgeting
Facilities to Employees:
Travel facilities
Fuel reimbursement
Cars
Cell phone
Laptop
Manpower Planning
Manpower Planning is made on the basis of individual department
requirement done by his head. The head of the department gives information about his
department personnel requirement to the HR department. The head of the department
gives information to the HR department in structure of the PERSONNEL
REGUISITION FORM.
The contents of personnel requisition form are:
Form : Department Name
Location : Name of the unit
To : Human Resource Department
Nature of vacancy : Permanent/Temporary/Casual Trainee/Contract
Requirement is : Additional/Replacement of Mr. /Ms
Position Specification:
Position : For which position person required
Age : What is the age limit?
Qualification : What are the qualifications required
Experience : What kind of duration needed & time of experience needed
Personnel Requisition form received on : Position Approved/Not Approved

This personnel requisition form is filled by the department of the
head and send to the HR department. In this nature of vacancy means which kind of
employee permanent, temporary, Casual, trainee or contract. If the requirement is
matched with above category as the department head is feel he mention properly in the
personnel requisition form and then after head of the department mention he need
additional employee from another department or unit. If excess employee exists at
another unit this employee is replaced at his proper require place. Department of the head
also mention about for which position employee is required like for executive level,
worker level or which level employee is needed and denoted about age limit. Require
employee age limit also given by head and what kind of experience and duration
of his experience for e.g.5 years or 7 years which mention the duration of the experience
and then after properly specified about job specification, what kind of work is needed
from require employee, what are the role and responsibility about job and what are the
working area and than after HR department taken decision about approved or not
approved the requirement of employee.
The HR departments on the basis of the personnel requisition form
which send by the respective head of the department make decision about approved or
not approved the requisition. The HR department to find out the balance between the
requirement of respective department and the performance of this department means HR
department take decision that the requirement is properly match with the actual need or
not HR department seen the performance of the department on the basis of given a target
to department. The respective department completed his target or not and basis of this
performance, HR department taken decision.
Recruitment and Selection Procedure:
The HR department form from head of the department duty
approved by the director. Suitable application are not available the vacancies are
appropriately advised. The interviews are conducted by the interview committee
comprising of respective head of the department, an expert and HR representative the
short listed candidates are finally interviewed by Sr. Vice President and director. Finally
the approval of the sought.
 Recruitment process in MIL:
Micro inks Ltd. Make recruitment by adopt standardize
recruitment procedure micro inks ltd. Make a recruitment from the following sources.
 Internal Resourcing:
By internal Resourcing MIL recruitment within the enterprises
Internal Recruitment made by MIL (Micro Inks Ltd.) by two ways.

1. Transfer:
Transfer involves the shifting of an employee from one job to
another. In MIL when recruitment is conduction by Internal Resource, the HR
department seek the need of transfer of employees from one place to another place
required of transfer are made on the basis of the competency and knowledge of
employee at the required place.
2. Promotion:
Promotion leads to shifting of employee to higher position carrying
higher responsibilities, facilities, status and pay.
In micro inks ltd. When recruitment is conduction by Internal
Resource HR department seek if internally any employee is eligible for this vacant
post. If any succeeding employee is competent and eligible for this vacant post HR
department give him promotion and filled the post by given promotion.
In micro inks ltd. Most probably recruitment are made by internal
resources and get the following benefit.
 Employees are motivated to improve their performance.
 Morale of the employees increased.
 Industrial peace prevails in enterprises.
 Filling of job from internally is cheaper as compared to getting candidates
from external resources.
 Databank:
In micro inks Ltd. Databank are made for the purpose of
recruitment. In Databank the applicant Bio – data (who make application in advance for
particular post) is stored in databank and whenever is conduction the HR department go
to databank and relevant bio-data is found for vacant post and called upon the applicant
for interview.
 E-Recruitment:
In Micro inks Ltd. Recruitments are also mea by E-Recruitment
Micro inks Ltd. Registered at naukari.com for the purpose of recruitment of component
and new talent from everywhere. By E-Recruitment company received the application
and bio – data and recruits the candidate through E- Recruitment.
 Campus:
Micro inks Ltd. Also go for campus recruitment for the purpose of
getting the fresher on the basis of as a trainee. Company go to relevant Institutions
collage and university for campus interview.
Selection Process of Micro Inks Ltd:

1) Interview call:
After the application is received they are screened by the
(screening committee) HR department and a list is prepared of the candidates to be
interviewed and interview letters are dispatched by registered post or any other
sources.
2) Written Test:
Written test are made on the basis of relevant post.
The question of this test is different to different kind of post. The question paper is
objective type. This is prepared by HR.
3) Personal Interview:
The Interviews are conducted by the interview committee
comprising of respective head of the department an expert and HR representative.
4) Short listing:
After the interviews were conducted by the interview committee,
then after interview committee short listing the competent candidate for final
interview.
5) Final Interview:
The short listed candidates are finally interviewed by Sr. Vice
President and Director. In Micro Inks Ltd. One best thing is that every selected
candidate personally met with company Directors MR.ANJUM BILAKHIA,
MR.YUNUS BILAKHIA ORMR.ZAKIR BILAKHIA in Micro Inks everybody
before joining personally met with company Directors.
6) Salary Fitment:
After the final interview HR person make salary fitment with
selected candidate. When salary fitment made the HR person consider the lots of
criteria like the growth and prestige of the company competitor of the company’s
salary structure, Difference of Salary between existing employee and new selected
employee at some kind of job.
7) Offer Letter:
The HR department sends the offer letter to the selected candidate.
In offer letter denotes about joining condition and required to joining duration the
offer letter is basically inform or offer about joining our Organization (Micro Inks
Ltd.)
8) Joining formalities and Documentation:
In Micro Inks ltd. Selected candidate is invited first of all at
corporate office (Vapi) for joining formalities. The HR persons give him employee
code no. provided fund procedure for give him P.F.No. In documentation process HR

personal file of selected employee in Which put the employee bio data, copy of
appointment letter, copy of qualification and previous experience certificate.
: - In selection procedure one good thing about MIL is that they have their own
format for the applicant which consists of.
Probation and Confirmation:
In Micro Inks which employees recruited in regular grades up to
general manager should under go six months probation. During this period, the
performance of the employees should be evaluated and competent employee’s
services should be confirmed in the company by HR department conformation letter
should be given.
In Micro Inks Ltd. In case of trainee service to regularize in the
regular grade, the probation would commence on the day following the date of
completion of the training.
In Micro Inks Probation of an employee can maximum be
extended tow more times, normally for a period of six months each time, even after
the above extensions period, the employee fail to perform up to expected level, a
service termination letter will be given at the end of the second extension, with a
notice period of one week, No increment is to be granted to a person whose probation
is extended or his services are not confirmed.
Training and Development:
In Micro Inks Ltd. All training and development activities handle
by Mr. Vinit Bisht HR manager at corporate office Mr. Vinit Bisht found the training
need Identification amongst the group employees of the Micro Inks he make training
action plan for the training programme and make contact with external training
agencies, effective training programme.
Mr. Vinit Bisht explained us about distinction between training and
development. Training is short term process by which non – managerial personnel
learns technical knowledge and skills for a definite purpose.
Development is long term education process by which managerial
personnel learns conceptual and theoretical knowledge for general purpose.
Training is designed for non managers while development involves
managerial personnel. As there is requirement of training, quality training programme
training is given to the employees as per the requirement and fulfillment of the
organization goals. Behavioral training, technical training, on the job training are
some of the QTP’S which are conducted in MIL.

Training Effectiveness and Application:
After the completion of every training programme it is evaluated
on the basis of effectiveness of the training on the work and also on the basis of
application of the skills which are effective to carry out the job successfully and
without defect.
Also the feedback of every training program is to send to the HR
manager specifying how much helpful and effective was the training program.
Training Agencies:
To make the training program successful and to get the right
feedback from the training program, most experienced programme, most experienced
external training agencies are appointed by MIL.
To change the mind set of the employees and to make the
employees understand the importance of the work from reputed institutes are called
upon MIL.
There are also many national and international consultants who are
appointed to conduct training in professional fields and to improve working skills.
Employee Welfare:
One great thing about MIL is that it takes great care about its
employees. MIL gives many facilities and adopted no of schemes for the welfare of
the employees.
Mediclaim Facility:
 Medical expenses reimbursement is done as per the entitlement of old
employees according to their salaries.
 The medical expenses reimbursement is subject to income tax rules and
original medical bills are to be submitted by the employees for the
reimbursement.
ESIS:
 All the units of MIL are covered under the ESIS Employee state
insurance schemes. With the help of ESIS the employees insured can
attend the dispensary for treatment and for the treatment he can collect
drugs from the ESI approved chemist.
The ESI scheme produces following benefits to the employees of all the units
of MIL.
o Medical Benefits.
o Sickness Benefits.
o Employment Injury Benefits.

o Maternity Benefits.
o Dependent Benefits.
Health Insurance/Medi claim:
All the employees of the MIL not covered under the Healthy
Insurance scheme of the new India Assurance company, provided that they have
completed at least one year of service.
For claiming the benefits under these Insurance schemes, all
intimation should be given to the insurance company within seven days of the
hospitalization and final claim should be filled within sixty days from date of
discharge.
Asset Creation Schemes:
In MIL great care is taken for assets creation of the employees.
The employees coming from far away places are given free accommodations, it is an
the gases of the designation of the employees.
For industrial tours of the employees the organization provides
first lass reservation and for international tours plane tickets are also provided.
The lodging and boarding expenses are also given to the
employees when the submit the bills to the HR department at the corporate house of
MIL.
The employees of the manager attaining certain grades and the
directors and the units heads are provided cars to maintain the level of their assets.
Informal Gathering:
MIL is always keen to maintain its culture. This organization has a
great respect for its employees. MIL also gives chance to each and every employee to
know about their colleges for which MIL keeps informal gatherings through some
function or during festivals.
Family Involvement In Events:
During the informal gatherings or functions MIL also invites the
family members of the employees. Such involvement of the family members gives
them the feeling of self respect and increases the loyalty of the employees towards the
organization.
In House Magazine’s:

MIL to keep its employees in touch with the current events,
business information, modern technology and to adopt latest skills to increase
productivity and scales gives its employees subscription of in house magazines.
Transportation Facilities:
MIL runs buses for its employees at all the units for the employees
at its own cost. Each and every employees at all the units according to their shifts
takes the advantages of there transportation facility.
Working Conditions:
In MIL to care up with the stress and burden due to work there are
limited working condition. If any Employee has some serious problems with their
family members and themselves they are given half an hour or hours break during
their working hours and again continue their jobs.
Fun Atmosphere and Personal Touch:
The work at all the units of MIL is such that they have to do the
same job the whole day and due to such work the employees’ get bored. As result
there is fun atmosphere maintained at all the units. At the Silvassa unit there music
systems at all the plants which are internally aerated by Administrative office which
creates a fun atmosphere and all the employees gets the feeling of personal touch.
Automation:
1. Attendance and Level Management:
In the attendance of each and every employee is done through
electronic punching machine which identifies the figure print of the employees
when the employees’ code no. is pressed placing the figure on the machine by the
employee. The safe ware which converts the records into data is named as print
electronic safe ware.
In MIL three types of leaves are attached to the employees named
(1) Casual Leave (2) privilege leave (3) Sick Leave. All the data above these
leaves are managed in computers by the HR department.
2. Training of employees in IT:

In MIL mostly all the office work & clerical works are done
through computers. It is necessary for all the employees to have knowledge of
computers. Most of the work is done through EXCEL so all the employees
engaged in such daily work are given training in IT field.
3. Automation of communication E – MAIL:
MIL is very keen about saving its time in doing any task. Other
means of communication are very much time consuming so in MIL for
communicating with each other all the employees make use of E – MAILS.
4. Paperless Office:
MIL has adopted the motto of paperless offices; as a result all the
datas and records are stored in computers and works through computers.
Work Culture:
MIL also takes great care about its work culture. The most
important think about the work at MIL is that the working conditions are very lenient
and pleasant but along with such work culture each and every employee take care that
their work has been completed.
1. Group initiatives:
At MIL due to group initiatives all the employees enjoy working.
In group initiatives all the employees having the capability are given the chance to
lead in the form of promotion or giving more responsibility.
2. Sports and recreation:
In MIL all the employees relive the mental stress due to heavy
work load by sports and recreation activities. The employees who are interested in
sports like cricket, volley ball, badminton, Golf, Carom etc. are free to informally
arrange matches on holidays or after duty. The equipments are given to them at
the organization cost.
Many other recreation activities are also organized by MIL to all
the employees.
3. Suggestion Schemes:

MIL never underestimates its employees. MIL believes that each
and every employee is capable of taking decisions. In such scheme any employee
having effective suggestions are free to mail their suggestion to the HR manager;
if the suggestion is beneficial to the organization to the MIL then it is
implemented.
4. Celebrations:
In MIL if the Organization touches some peak or becomes
successful in some field celebration is done in the organization evaluating all the
employees.
5. Team work, Less hierarchy:
MIL believes that to achieve any goal or objective team work is
very necessary so it always suggests team work instead of individual
performance.
At all the units of MIL there is less hierarchy due to which each
line manager can directly contact their unit head and solve the problem or
suggestions.
6. House keeping:
The HR department of MIL takes great care about having house
keeping at all the units. They believe that good house keeping leads to safe and
easy work.
Social Responsibilities:
1. Social Welfare
Our humble contribution to the society,
enhancing the standards of living of
fellow human beings.
The Bilakhia Group, since inception, has
focused on fulfilling its obligations to

society. As a responsible citizen, efforts have been made to improve the standard of
living in and around Vapi, and to ensure the upliftment of society at large.
2. Education:
One of the major factors for success
can be attributed to good education. Apart from
imparting the skills and knowledge required for the
means to sustain, it also effectively cultivates
awareness.
With a view to promote
awareness for the need of good education,
Bilakhia group had taken measures to
improve education of Employees children.
In order to encourage and motivate the
children to aspire higher achievement, Bilag
has instituted the following incentive
A. Merit Award:
Incentive awarded to children of employees for achievement of higher
percentage of marks in their studies. During 2003-04, the company distributed
cash awards of Rs. 2,27,550 to children of 241 Employees. We are sure that this
will encourage the children of the employees to compete well and score better in
their studies.
B. Education Fees:
Distributed to employees for meeting education fees of their children.
Since April 1, 2002, a total amount of Rs. 16,84,825 has been distributed as per
the details hereunder :

Year
No. of Employees
Benefited
No. of Children
Amount
distributed (Rs.)
2001-2002 248 367 3,00,400/-
2002-2003 417 664 7,23,450/-
2003-2004 358 591 6,60,975/-
C.In addition to the above, since 2001-2002, the company distributed books,
pens, pencils, etc worth Rs. 1,41,304 as per the details hereunder :-
Year
Amount distributed
(Rs.)
2001-2002 31,128/-
2002-2003 77,694/-
2003-2004 32,482/-
Total till date 1,41,304/-
3. Employee welfare:
As a part of development of the
employees, the company strongly believed
in the importance of providing Employee
welfare schemes.
The booming population is
a cause of primary concern for any
developing economy. It has been a
fact that many development plans
has been rendered by ever increasing
population. Acknowledging the fact
and with a view to contribute its

share towards controlling population, the company had initiated family planning
among its employees.
Year Name of Scheme
No. of
Employees
Benefited
Amount spent
by company
(Rs.)
2000-2001
Family planning
aid & Cu-T
20 81,800/-
2001-2002 56 1,73,900/-
2002-2003 57 2,49,250/-
2003-2004 58 2,27,550/-
Total
amount
spent till
date
7,32,500/-
ADHOC Help:
It has been the culture of the company that each employee has been
treated as part of its family. The Group considers looking after welfare of its
employees as its responsibility and extends helps to the employees in times of
need. Towards this objective, the company extends help by settling medical
expenses and also distributes money to employees' family in the event of death of
an employee.
Year No. of
Employees
benefited
Amount distributed
(Rs.)
2000-2001 4 2,55,000/-
2001-2002 1 50,000/.
2002-2003 5 1,43,000/-

2003-2004 6 58,000/-
Total amount distributed till
date
16 5,06,000/-
4. Health Care:
Realizing the importance of Healthcare,
company has initiated Mediclaim
facility and covered the employees
including their family members.
The below mentioned chart explains
the details:
Year No. of
Employees
Benefited
No. of family
members
covered
Total Premium
Paid (Rs)
Total Claims
Settled (Rs.)
2001-
2002
824 2384 7,82,195/- 4,24,046/-
2002-
2003
1459 3118 16,30,125/- 8,11,517/-
Total
till date
24,12,320/- 12,35,563/-

New Initiatives:
To improve the grade and quality of the products MIL has adopted
new initiatives.
1. Six Sigma:
Six Sigma is nothing but a constant figure like value of sigma is
3.14. The product which is produced at MIL must be close to there constant which
decides the level of defect in the product. More or less difference between their
values they decide the level of defect.
2. Kaizen:
Kaizen is also one of the schemes to improve the quality of the
product.
3. ISO 9001 – 2000, 14001:
MIL has also received ISO 9001 – 2000, 14001 certificates for the
quality of the product.
4. Benchmarking:
MIL dose the benchmarking of all its plans. In benchmarking the
organization decide to achieve a higher level in its success. To achieve these
benchmarking the organization tries its best to achieve the level and apply all its
efforts.
The benchmark of MIL in next 5 to 6 years is to achieve the 5th
position in the world ink market.
PRODUCTION
DEPARTMENT

Introduction:
Production is the basic activity of all the industrial units. All other
activities revolve around this activity. We can say that Production activity is nothing but
the step conversion of one form of material into another either chemically or
mechanically. The end product of the production activity is the creation of goods or
services for the satisfaction of human wants. The production activity is process by which
the goods are produced or utility enhanced.
Main elements of producing inks are:
Pigment – colors (mainly red, yellow, blue, green)
Flush – Concentrated form of ink
Resins – Content in ink

Solvents – Drying speed
Addivtives – Despersion
There are 3 kinds of Inks:
Kinds of Inks are:
Liquid
Inks
Paste Inks
News
Black
Solvent Water Cold Set Heat Set

Liquid Inks:
Solvent Base – Solvent are required for manufacturing of Ink.
Water Base – Water is required for manufacturing Ink.
Paste Inks:
Headset Ink – Heating Chamber is attached to the Printer. Print has to pass through the
chamber for complete Drying.
Coldest Ink – No need of heating chamber. The substrate absorbs ink and so it doesn’t
require much drier for its drying.
Black Ink:
All waste are colors are send at this plant where its treated with carbon black
for black ink.
Uses of Ink:
Liquid Ink: Packaging material like Wrappers, Cans, FMCG, PVC Films, BOPP
Films, Polyester Films,
Poly Films, Metallized Poly Films, Foils, Boards, HDPE and HDPP
Films.
Paste Ink: Printing Magazines, Books, Calendars, Brochures.
Heat set Ink: Art papers, Glance newspapers, etc.
Cold set Ink: Newspapers including SNP, Stationary papers etc.
Products

• Pigments / Flushes
Micro Inks proudly introduces a range of Alkali Blue pigments. Micro
Inks is only among a handful of companies worldwide to offer the Alkali Blue pigments,
which are manufactured in its 'state-of- the-art' plant at Vapi, in Gujarat, India.
Alkali Blue: - It is a unique pigment with a highly complex chemistry, is
manufactured by HIRL meeting the stringent quality standards and specific requirements
of its valued customers. Product details:-Alkali Blue pigment is Tri-Amino derivative of
Triphenyl methane with very high tinctorial strength but moderate to poor fastness
properties. They cover a wide range of shades from Greenish Blue to Reddish Blue.
Flushed colors:-
Micro ink offers a complete range of high
quality Azo, Phthalocyanine and Alkali Blue Flushed colors.
These have a distinct qualitative advantage like improved
gloss, transparency, color strength and total dispersion. HIRL's
Flushed colors offer ease of handling and are economical in
converting into finished inks. Applicable for sheet fed offset
inks, heatset inks and no heat web inks.
• Synthetic Resins
Also offered are varieties of high
performance visco-elastic resins for printing inks, such as
Phenolic Modified Rosin Esters, Hydrocarbons, Cyclic
Hydrocarbons and Hybrid resins. HIRL also offers versatile
resins like Polyvinyl Butyrals and Ketone Resins for
Flexo /Gravure inks & speciality coatings.

Micro Inks create a variety of high performance and visco-elastic resins
for printing inks, such as Phenolic Modified Rosin Esters, Hydrocarbons, Cyclic
Hydrocarbons and Hybrid resins. We offer versatile resins like Polyvinyl Butyrals and
Ketone Resins which are recommended for Flexo / Gravure inks and speciality coatings.
• Ink Vehicles
Micro Inks offers a complete variety of Ink Vehicles that include
Heatset/Quickset/Soya/Coldset Vehicles, Soya/Linseed Alkyds and Hybrid Alkyds.
• Wax Compounds
MIL manufacture wax compounds such as microcrystalline waxes and
micro/PTFE blends, polyethylene blends, PTFE concentrates. We also recommend our
speciality additives like Water Repellent Wax Compounds and Skin Retardant
compounds for Heatset and Sheet fed inks.
Waxes, vehicles, additives
A variety of ink vehicles that include Heatset/Quick set vehicles,
Soya/Linseed Alkyds and Hybrid Alkyds. Wax compounds such as microcrystalline
waxes and micro/PTFE blends, polyethylene waxes
And polyethylene blends, PTFE
concentrates. Speciality additives like water repellent wax
compounds and Skin Retardant compounds for Heatset and
Sheet fed inks.
• Plastic Colorants
Micro Inks Limited has launched a range of "HIPLAST" pre-dispersed
Mono concentrate pigments, with innovative technologies, for use in plastic compounds
or master batches. These HIPLAST color concentrates are available in coarse granular
powder form.

Rosins, Oil, Sulpher
Salts, Copper, Soya, Mote then 500- Bona CID Carbon
Etc. Black, Phenol,
4Bacid, ONGB,
Soya Oil, Etc.
Natural
Products
Chemical
Product
Pigments Resins Solvent Oils Additives
Inks
Flushes Varnishes
Press /
Customer
Printer
Packing
Material

Printing Inks:
Types of printing Inks
Contents of Ink [Liquid / Paste / Printing] Are
Mixture of Pigments, Intermediaries [Resins, Vegetable oil, Mineral oil] & Additives.

• Offset Inks:
Offset Inks are inks that can be used for a
broad spectrum of printing jobs on a variety of papers and
corrugated surfaces. These inks find application for a
range of commercial jobs and adapt to various printing
speeds and conditions. Apart from this, these inks also
offer a blend of good color, print finish and also value for
money. Micro Inks range of Offset Inks blends versatile
application with a high quality finish. Based on the most
modern technology, they can be used for complex
printing jobs on a variety of substrates like coated and
uncoated papers, matt coated art paper, duplex boards, corrugation sheets, etc.
These inks can be used in the printing of Magazines, Catalogues,
Brochures, Danglers, Cartons, Food Packaging, Stickers and Greeting Cards.
1) Web Offset Inks:
These inks are manufactured in the most ultra modern plant which
operates on the unique concept of "Seamless" manufacturing.
a) Coldest News Inks: -Coldest inks are carefully formulated with viscoelastic
resin based vehicle technology for different rheological properties, keeping in
mind its application on variety of printing machines including the faster machines.
b) Heat set Inks: - Heat set inks are available in different tack values and can be
used for all type of paper stocks such as GNP, SNP, LWC, SUPER CALENDER
& MWC art paper.
2) Sheet fed inks:
It is used for commercial application and packaging application. It is used
in magazines and books, news papers, yellow pages, brochures, calendars.
3) Uv Inks:
Micro Inks is proud to introduce UV inks for various printing processes and
different substrates. These inks have been made from UV flush pigments which are
developed indigenously through in-house technology.

• Flexo & Gravure Inks:
With the aim of catering to every printer's
demand, Micro Inks has created a diverse set of liquid inks
which conform to global standards. This means that
everything from pouches for food products, pan masala, oil
and vanaspati, soap wrappers, detergent bags, cement and
fertilizer bags etc. can be printed to complete an excellently
packaged product.
1) Solvent Based
There are different kinds of solvent based inks which have its own
importance for different printing purpose. Multigloss/Dynaflex is a solvent based ink
suitable for printing on various films and foil. Polyfresh is a solvent based ink
suitable for printing various on films, Paper and foil. Hiflon is a common ink suitable
both surface and reverse prininting/lamination applications. Microlam is a solvent
based Lamination ink suitable for printing on various types of films.
2) Water Based
Water based ink suitable for printing on various types of Paper and Board.
It is used on Label Printing, Packaging paper, Paper bags, General Purpose, Corrugated
Cartons.
• Adhesive:
Solvent based used in Lamination of Polyester,
Polyethylene, Cellophane, Aluminum Foil and various types
of paper. Water based applications are such as, industrial and
packaging tapes made with Polyolefin films, Polyester, Foil,
Paper, Tapes and are also used in floor and wall covering.

• Screen Inks:
These inks are created to meet application demands
on a variety of substrates and provide for speedy manual print
production of diverse products. These inks can be used on
visiting cards, letter heads, paper, boards, sun boards, PVC,
Acrylic, Metal, Glass, Polystyrene, Polycarbonate, HDPE,
LDPE, etc. Its features are High quality, Bright colors, excellent
print sharpness, and excellent print finish.
• special range:
Micro inks developed in-house a range of specialty
inks like security inks, invisible inks & penetration inks.
Security Inks are Quickset Intaglio Inks for printing of
currency notes. Invisible Inks are Suitable for printing by
letterpress. One grade is available for long life security
documents like share certificates and the other grade is
available for short life documents like lottery tickets.
Penetration Inks are Suitable for printing by letterpress the
backside of the printed area shows the pink color penetration.
Properties of Ink:
Viscosity
Tack
Stability
Rub resistance
Water resistance
Take-up
Light
Fastness
Chemical Resistance
Soap
Strength
Gloss

Printability
Wire Enamels:
World without Electricity is unimaginable. The mankind of today’s globe
would not have reached to this level of knowledge, technology, & comfort. Electronic
transformation is the chief mean adopted in the Generation, Distribution and Utilization
of electrical energy.
The super enameled wire consisting of current carrying conductor – Copper
or Aluminum & thin insulation in the form of enamel makes the electronic transformation
possible with great efficiency.

In 1994 the company started manufacturing Wire Enamels for insulation of
Copper & Aluminum conductors. The Wire Enamels of Micro Inks covers a broad range
based on Modified Polyester, Polyurethane & Polyesterimide and i.e. from class B
(130degree) to class H (180 degree) and Polyamide imide (Top Coat) suitable for fine &
thick wires, including strips.
• Modified Polyester Based Wire Enamels
o MITSHINE R
o MITSHINE RH
o MITESTER FF
o MITCUT F
o MITESTER M/M
o MITSUPER F 39
• Polyurethane Based Wire Enamels
o MITSOLD S 30
o MITSOLD F 30
• Polyesterimide Based Wire Enamels
o MITMID 35
o MICROMID 39
• Polyamide Imide Based Wire Enamel
o MICROTHERM 35 DC
Manufacturing Units at Vapi 3 [Export Oriented Unit]:
Power Plant
MIL has its own power plant in this unit which supplies power to Vapi 1, Vapi 2, Vapi 3.
Powers are generated by help of furnace oils where temperature and Viscosity are
maintained, with two generators.

The capacity of plant is 6. 5m Watt/ Hour. That is 14000 KW/ Day.
Pigment Plant
Tow types of pigments are manufacturing:
Wet Cack – 80% Water.
Bits – 50% Water.
Total capacity of plant is 400 Tons/ Month that has 25% Wet Cack and 75% Bits.
Ice Plant
Most Important part of plant where ice is manufactured with help of Ammonia.
Total Capacity of plant is 100 metric tons / Month.
Inks that impart an exciting dimension to packaging:
The art of packaging is closely connected to the poetry of color. In fact, it is color that
wraps packaging with personality. Something that inspired our spectrum of packaging
inks. Blessed with gift of infinite color possibilities, the range is superbly compatible
with a variety of substrates.
Glamorous
That sleek, magnetic appeal that our inks gift packaging
with. Ample reason for heads to turn.
Intense

The touch of every hue and shade of our inks, to bring that all round depth to
packaging.
Vibrant
The energy that flows from the palette of our inks, to add to
packaging a truly multi - hued splendor
Hypnotic
The effect of our color range that define imagination. Giving packaging looks, best
describes as arranging.
Lusrous
The look of the class that our inks bring to packaging, ensuring a
timeless elegance that says pick me up.

Market:
The word market is derived from the Latin word ‘marcatus’ meaning merchandise ,wares
traffic trade or a place where the business is conducted.
Social Definition:
“Marketing is a societal process by which individuals and groups obtain what they need
and want through creating, offering and freely exchanging products and services of
values with others.”
Managerial Definition:
Marketing has often been described as “The art of selling products.”
“Marketing is a total system of business activities designed to plan, price, promote and
distribute want – satisfying goods and services to customers.”
The company’s business operations consist of 6 manufacturing unit. First Export
Company in more then 70 countries. Largest market share in Indian market.
Micro Inks Objective Of Marketing:

1. To identify the concept of printing inks used in our daily life.
2. To know the various types of printing inks used for different printing industries.
3. To have the total know – how about the printing ink’s based on its properties,
behavior and end – use of the printed product.
4. To study the customer’s behavior and its requirement using inks in different types
of printing press.
5. To study market demand for the different packaging product via inks.
6. To collect the data regarding the customers.
7. To study the different types of printing process and methods used by the
customers.
8. To study each pattern of ordering the inks for different print jobs taken up by the
customers depending upon their end – use of the product.
9. To study the basic colors of the printing inks.
The product division is as follows:
Wire enamels 20 products
PU adhesive 05 products
Resins 03 products
Liquid inks 12000 products
Offset inks 5000 products
Screen inks 1000 products
Metal Deco 250 products
The sales Potential of the region is as follows:
Product planning:
Product Potential Micro inks ltd.
Liquid inks 3634.816667 2180.89
Metal deco inks 243.0333333 145.82
Printing inks 191.45 114.87
Screening inks 196,1666667 117.7
Total 4265.466667 2559.28
Percentage 60%

Planning – Sales forecast – Production.
Monthly targets are set – Raw material procured – order received – Dispatch.
Product is designed according to customers:
Use – Plastic, Metal, Papers, Etc. , specification, Climatic condition.
Before production product is planned with help of technical expert and sales manager to
meet requirement and maintain quality.
Target market:
MIL has export in more then 70 countries outside India [ Middle East, North Africa,
Brazil, China, Etc.]
In India more then 500 distributors all over [Delhi, Mumbai, Ludhiana, Etc.]
2001 – 4.5 Crore
2006 – 253 Crore
Pricing Policy:
MIL has a unique method of pricing inks.
They look out for market condition, Competitors share, Companies share, Opportunity
market, Quality, Profit level.
1 Million – 5% Discount
100 ton Sheet Fed – 3% Discount
Channels of Distribution:
MIL has very easy distribution channel.
Liquid Inks Paste Inks News black Inks
Customers Distributors Press
Competitors:

Coats
Sakata
Inco Wax
Dic
Sun chemical
Flint Group
Toyo Ink
Sicpa
Tokyo Printing Ink
Inctec Ink
T & K Toka
Apple Druckfarhen
Ruco Druckfarhen
Customers:
Business today
Economic times
National Geographic
Cola
Bisleri
Kellogg
Mc Donald’s
Cadbury
Tata
Etc.
Advertising:
Inks are Industrial product.
Direct Market
Trade events
Trade magazines
Annual Report
Presentation to organization
One to one meeting
Trade fare [Drupa – Germany worlds no.1, IGAS – Japan, FESPA – Delhi, China,
Amsterdam, Turkey, Russia, Etc.]
Movies
Website
Logo
Lamp stand at Vapi

Island traffic at Vapi
Sales:
Revenues grew by 14% to Rs. 10822 mn as compared to Rs. 9473 mn previous year on
higher volumes due to overall market growth and deeper penetration.
Market Segementation
Market segmentation of the products is done into 2:
Regional market
Domestic and international market
Domestic market – 16%
International – 13%
Generak Inks – 20%
Liquid Inks – 12%
Printing Inks – 15%
The ongoing initiative of ATM in domestic markets increased regional spread and
enhanced customer servicing.
Revenues – Rs mn
10822
12000
9473
7796
8000
6469
4739
4000
0
2002 2003 2004 2005 2006

Sales Promotion:
MIL Provides:
Training to press [Product efficiency]
Trade Show,
Seminars,
Gifts,
Discounting price or Bulk purchase,
Direct Mail,
Product Launch.
Market Research:
Company has continuous research for trapping new market abroad.
It looks for potential of country, companies in Inks, their capacity and market share,
profitability level.
Customer support associate:
MIL has unique feature of customer associate for accessing MILS, order
processing, reports, customer complaints. It works to make work faster and customer
satisfaction by personal contact.
Any Time Micro [ ATM ]:
MIL is first company to start ATM.
It is color matching zone where you get color you want. Shades are matched with
software great Macbeth spectro eye. Color combination in 15 minutes and bulk in less
then hour.
Different types of bits mixer for proper grinding and blending of pigments for
proper dispersion. ATM helps in a accuracy, consistency, No loss stock, Saving of
money.
Research & Development:
MIL has tremendous invention (Technique, Efficiency, Quality, Various properties, in
Inks for varied uses)
It takes place at Daman plant with various imported sophisticated equipments.

It is on – going process.
Technical experts, Doctorate, Etc. work for reaching new invention every year.
Expenditure for year 06 was Rs. 66 mn.
Ecological friendly liquid packaging ink system with excellent bond strength for food
packaging.
Heat set web inks with instant ink and water equilibrium to minimize the paper wastage.
Eco base sheet fed process color inks for high hold out paper and board for packaging
and commercial printing.
Every curable scorn printing inks on various plastics for OEM.
Water base textile inks developed and introduced in domestic market.
PVC and phthalate free plastisol inks and screen inks for textiles introduced.
The state of the art liquid ink and sheet fed plant in silvassa has boosted company’s
capabilities to cater to rapidly growing global markets.
Operational efficiency and productivity gains were achieved through improvement in
manufacturing process, vendor development, cycle time improvement and value
engineering initiatives and cost optimization measures.

Introduction:
Finance is regarded as the life blood of a business enterprise. This is
because in the modern money-oriented economy, finance is one of the basic foundations
of all kinds of economic activities. It is the master key which provides access to all the
sources for being employed in manufacturing and merchandising activities. It has rightly
been said that business needs money to make more money. Hence, efficient management
of every business enterprise is closely linked with efficient management of its finances.
Financial Management:
Financial management is concerned with the managerial decisions that
result in the acquisition and financing of long-term and short-term credits for the firm. As
such it deals with the situations that require selection of specific assets, the selection of
specific liability as well as the problem of size and growth of enterprise. The analysis of
these decisions is based on the expected inflows and outflows of funds and their effects
upon managerial objectives.
Capitalization:
It comprises of ownership capital which includes capital stock and surplus
in whatever form and borrowed capital which consists of bond or long term debt.”
Treasury operation handles capital requirement of every department. They
have budget of every department, Any further need of capital fulfilled by treasury
department. They decide sources of funds – loan, Reserves, Etc

Every department has budget and operates on budget but sometime budget falls short that
time treasury department fulfills shortfall for department with approval of required
authority.
Capital Structure:
Capital Structure ordinarily implies the proportion of debt and equity in
the total capital of a company. The term ‘structure’ has been associated with the term
‘capital’. The term ‘capital’ may be defined as the long-term funds of the firm. The
management strives to achieve optimum capital structure in order to achieve wealth
maximization.
The company has no debentures only equity and preference shares.
75% Huber Company
4.5% Bilakhia company
20.5% Financial Institution/ Shareholders
(Rs. in million)
Share Capital 31/3/2006
Authorized
30,000,000 Equity Shares of Rs. 10/- each
5,500,000 Preference Shares of Rs. 100/- each
300.00
550.00
850.00
Issued Subscribed and Paid-up
24,871,941 Equity shares of Rs. 10/- each, fully paid-up 248.72
248.72
Company does not raise capital through public deposit. Ones company had declared
bonus share 6.83 million shares are allocated as fully paid up by way of capitalization of
security premium. Ones company declared right issues (every share holder on equal
basis).

Profit and Loss Account:
(Rs.in million)
31/03/2006 31/03/2005
INCOME
Sales and Other Operating Income (Gross) 9,866.72 9,011.30
Less: Excise Duty 685.7 595.97
Sales and Other Operating Income (Net) 9,181.02 8,415.33
Other Income 42.3 31.14
Increase/(Decrease) in Semi-Finished and Finished Stock 182.16 137.43
TOTAL 9,405.48 8,583.90
EXPENDITURE
Materials Consumed 6,083.84 5,130.68
Manufacturing and Other Expenses 2,136.42 1,784.75
Interest 216.67 166.4
Depreciation/Amortization 246.31 206.06
TOTAL 8,683.24 7,287.89
(Loss)/Profit Before Tax 722.24 1,296.01
Less: Provision for Taxation 77.61 165.31
Less: Provision for Fringe Benefit Tax 8.1 ----
Less: Provision for Deferred Tax 27.5 55
(LOSS)/PROFIT AFTER TAX 609.03 1,075.70
Balance Brought Forward 1,850.85 1,133

Profit Available for Appropriation 2,459.88 2,208.70
APPROPRIATIONS
Preference Dividend 12.11 55.14
Provision for Dividend Distribution Tax on Preference
Dividend 1.71 7.21
Proposed Dividend 149.23 149.23
Provision for Dividend Distribution Tax on Proposed Dividend 20.93 20.93
Payment of Corporate Dividend Tax on Proposed Dividend 0.34
Transfer to General Reserve 250 125
Transfer to Capital Redemption Reserve 435
Balance Carried to Reserves and Surplus 1,590.80 1,850.85
2,459.88 2,208.70
Basic and Diluted Earnings Per Share of Rs. 10 each (in Rs.) 23.93 44
Balance Sheet:
(Rs.in million)
31/03/2006 31/03/2005
SOURCES OF FUNDS
SHAREHOLDERS’ FUNDS
Share Capital 248.72 683.72
Reserves and Surplus 7,476.90 7,476.90
7,725.62 8,050.67
LOAN FUNDS
Secured Loans 1,716.65 1,232.24
Unsecured Loans 100 530
1,816.65 1,762.24
Deferred Tax Liability 413.7 386.2
TOTAL 9,955.97 10,199.11
APPLICATION OF FUNDS
FIXED ASSETS
Gross Block 4,434.44 3,886.78
Less: Depreciation/Amortization 1,103.70 868.59
Net Block 3,330.74 3,018.19
Capital Work-in-Progress 68.97 91.87
3,399.71 3,110.06
INVESTMENTS 3,691.56 3,655.93

CURRENT ASSETS, LOANS AND ADVANCES
Interest Accrued on Investments 0.01 0.01
Inventories 1,422.69 1,271.34
Sundry Debtors 2,664.11 3,003.65
Cash and Bank Balances 395.46 552.06
Loans and Advances 840.62 906.4
5,322.89 5,733.46
LESS: CURRENT LIABILITIES & PROVISIONS
Current Liabilities 2,275.32 2,114.50
Provisions 182.87 185.84
2,458.19 2,300.34
NET CURRENT ASSETS 2,864.71 3,433.12
TOTAL 9,955.97 10,199.11
Cash Flow Statement:
31/03/2006 31/03/2005
(A) CASH FLOW FROM OPERATING ACTIVITIES
Net (Loss)/Profit Before Tax 722.24 1,296.01
Adjustment for:
Depreciation/Amortization 246.31 206.06
(Profit)/Loss on Sale/Retirement of Fixed Assets (Net) 2.92 1.6
Provision for Diminution in value of investments ---- ----
Interest Expenses (Net) 216.67 166.4
Provision for Gratuity 0.3 ----
Provision for Leave Encashment 3.66 0.51
Write-off for obsolescence of Inventory 12.44 11.25
Unrealized Exchange Loss/(Gain) (Net) -38.34 ----
Write-off of Export Benefits ---- ----
Provision for Doubtful Debts (Net) 11.5 28.59
Dividend Received -2.55 -0.55
Operating Profit before Working Capital Changes 1,175.15 1,709.87
Adjustment for:
Inventories -158.1 -397.79
Trade and Other Receivables 349.04 -1,237.06
Trade and Other Payables 150.9 751.94

Cash Generated from Operations 1,516.99 826.96
Direct Taxes Paid (Net) -30.38 -217.01
Cash Flow from Operating Activities (A) 1,486.61 609.95
(B) CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets -550.99 -558.58
Sale of Fixed Assets 19.65 8.24
Investment in Subsidiary -35.63 -20.47
Dividend Income 2.55 0.55
Net Cash used for Investing Activities (B) -564.42 570.26
(C) CASH FLOW FROM FINANCING ACTIVITIES
Issue of Equity Shares & Premium thereon ---- 1,805.02
Redemption of Preference Shares and Premium thereon -750 ----
Borrowings/(Repayment) of Term Loans (Net) -42.09 -903.47
Movement in Working Capital Borrowings 104.59 -596.02
Securities Issue Expenses -45.6
Payment of Interest -200.14 -166.65
Payment of Preference Share Dividend (including Dividend Tax) -21.13 63.65
Payment of Dividend (including Dividend Tax) -170.02 147.99
Net Cash used for Financing Activities (C) -1,078.79 118.36
Net (Decrease)/Increase in Cash and Cash Equivalents
(A+B+C) 156.6 78.67
Opening Cash and Cash Equivalents 552.06 630.73
Closing Cash and Cash Equivalents 395.46 552.06
Management of Fixed Assets:
The whole process of fixed assets is:
Production Capacity
Capex (Approval form for assets)
Capitalization

Monitering
Follow up
Capital budgeting is done on yearly basis by finance department.
Any new purchase requires order of coo.
Form is filled up and approved by required authority and then cost is tracked,
Then negotiation,
Then purchase,
Then implementation for production.
Any selling of asset also requires approval of higher authority.
Form filled up and approved by director.
Asset cost, Nature, Location, Depreciation, Etc.
Quotation by different parties.
Sell.
Particulars Net Block
31/03/2006 31/03/2005
Free Hold Land 108.35 108.35
Lease Hold Land 33.37 33.77
Buildings 1,055.98 946.21
Plant and Machineries 1,899.38 1733.38
Laboratory Equipments 70.58 64.07
Wind Mills 0.01 0.04
Computers 30.72 33.61
Furniture and Fittings 43.42 48.66
Vehicles 77.27 47.83
Intangible Assets (Software) 11.66 2.27
Total 3,330.74 3018.19
Reserves and Surplus:
Particulars 31/03/2006
Capital Reserves
State cash Subsidy 1.62
Capital redemption reserve 450

Security Premium account 4,177.43
General Reserve 1,257.05
Profit and Loss Account 1,590.80
Total 7,476.90
Financial Highlights:
Particulars
9 Months
period
ended
December
2006
2005-
06
2004-
05
2003-
04
2002-
03
Sales and other operating income(Gross)
7653.20 9866.7
9011.3
0
6732.1
2
6363
Sales and other operating income
(Net of Excise)
7104.28 9181 8415.3
6224.7
5
5921.6
Export (FOB)
3493.10 4512.7 4227.2
2614.7
1
2700.9
PBDIT
8.71 1185.2 1668.5
1242.9
7
1134.5
Interest 230.06 216.67 166.40 174.99 416.04
(Loss)/Profit Before Tax
(437.62
)
722.24 1296 882.87 551.61
Tax (57.19) 113.21 220.31 150.50 111.20
(Loss)/Profit After Tax
(380.43
)
609.03
1075.7
0
732.37 440.41
Dividend (Equity) 111.92 149.23 149.23 131.15 54.65
Dividend % 45 60 60 60 40
Retained (Loss)/Profit
(380.43
)
424.95 842.85 509.48 301.77
Earnings Per Share (Rs.) (15.30) 23.93 44.00 37.62 25.64
Book Value (Equity)(Rs.) 289.01 310.62 293.53 214.95 164.42
Sources of Fund:
Share Capital 248.72 248.72 683.72 653.58 571.62
Reserves
6939.44 7476.9 7367
4794.8
1
3924.7
Shareholders’ Funds
718.16 7725.6 8050.7
5448.3
9
4496.3
Loan Funds 1832.47 1816.7 1762.2 3261.7 3722.5

3
Total
9020.63 9542.3 9812.9
8710.1
2
8218.8
Uses of Fund:
Net Fixed Assets
3421.42 3399.7 3110.1
2798.4
1
2773.5
Investment
3710.34 3691.6 3655.9
3635.4
6
2849.5
Net Current Assets
1888.87
2451.0
0
3046.9
2276.2
5
2595.8
Miscellaneous Expenses - - - - -
Total
9020.63 9542.3 9812.9
8710.1
2
8218.8
Particulars
2001-
02
2000-
01
1999-
00
1998-
99
1997-
98
Sales and other operating income(Gross)
5631.7
3
3843.3
6
2194.3
2
1751.3
8
1184.45
Sales and other operating income
(Net of Excise)
5217.8
4
3471.1
3
1901.1
1
1492.5
8
1003.59
Export (FOB)
2221.4
3
855.62 49.39 26.95 31.54
PBDIT
1152.4
7
604.27 409.59 323.98 184.50
Interest 422.11 172.31 69.11 66.89 69.38
(Loss)/Profit Before Tax 601.35 345.58 292.95 238.09 98.14
Tax 118.26 29.30 49.63 3.40 0.68
(Loss)/Profit After Tax 483.09 316.29 243.32 234.69 97.46
Dividend (Equity) 54.65 54.55 42.32 23.00 13.80
Dividend % 40 40 75 50 30
Retained (Loss)/Profit 377.47 242.44 194.79 206.66 79.41
Earnings Per Share (Rs.) 31.54 22.21 21.56 25.51 10.60
Book Value (Equity)(Rs.) 142.80 124.92 92.28 69.99 47.41
Sources of Fund:
Share Capital 586.62 186.62 62.69 46.00 46.00
Reserves
3264.3
0
2020.3
9
1094.2
1
609.31 392.64
Shareholders’ Funds
3850.9
2
2207.0
1
1156.9
0
655.31 438.64
Loan Funds
3803.7
5
2049.0
8
914.42 431.61 375.26
Total
7654.6
7
4256.0
9
2071.3
2
1086.9
2
813.90

Uses of Fund:
Net Fixed Assets
2741.4
6
1934.6
9
1278.6
3
472.73 301.99
Investment
1754.6
0
501.98 6.51 .05 .05
Net Current Assets
3158.6
1
1819.4
2
786.18 612.72 509.40
Miscellaneous Expenses - - - 1.12 2.46
Total
7654.6
7
4256.0
9
2071.3
2
1086.9
2 813.90
Ratio Analysis:
 Return On Investment
It is also called as Return on Capital Employed. It indicates the percentage
of return on the total capital employed.
Formula: - Operating profit / Capital employed * 100

20.26
27.10
24.49
21.13
19.53
16.10
19.84
29.85
22.74
0
5
10
15
20
25
30
35
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
1998-99
1997-98
From the graph, 1998-99 gives highest return than other years but in the
current year the ratio is not that much enough to satisfy.
 Return On Shareholder’s Funds
It shows the profitability of the company from the shareholder’s point of
view. The net profit after interest and tax will be considered because the shareholders are
interested in total income.
Formula: - Net Profit after Interest and Tax / Shareholder’s funds * 100

7.88
13.36 13.44
9.79
12.54
14.33
21.03
35.81
22.22
0
5
10
15
20
25
30
35
40
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
1998-99
1997-98
The maximum return on shareholder’s fund is on 1998-99 in the
comparison of that year in current year this ratio is very much low.
 Return on Total Assets
This ratio is computed to know the productivity of the total assets.
Formula: - Net Profit after Tax / Total Assets * 100

6.38
10.96
8.41
5.36
6.31
7.43
11.75
21.59
11.97
0
5
10
15
20
25
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
1998-99
1997-98
 Earning Per Share
It helps to determine the market price of the equity shares of the company.
A comparison of earning per share of the company with another will also help in deciding
whether the equity share capital is being effectively used or not. It also helps in
estimating the company’s capacity to pay dividend to its equity shareholders.
Formula: -Net Profit after Tax and preference dividend / Number of equity Share
23.93
44.00
37.62
25.64
31.54
22.21 21.56
25.51
10.6
0
5
10
15
20
25
30
35
40
45
50
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
1998-99
1997-98
The graph shows us that the company is effectively using its capital as it is
giving good earning per share. There is fluctuation in graph among the 9 year data. 2004-
05 gives good earning than any other year, in the comparison of it’s the current years
return is going down.
 Net Profit Ratio

This ratio indicates net margin on a sale of Rs. 100.This ratio helps in
determining the efficiency with which affairs of the business are being managed. The
ratio is thus an effective measure to check the profitability of business.
Formula: - Net operating Profit / Net sales * 100
6.63
12.78
11.77
7.44
9.26 9.11
12.8
15.72
9.74
0
2
4
6
8
10
12
14
16
18
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
1998-99
1997-98
The ratio is fluctuating among those years. 1998-99 have the good NPR
ratio which shows the 15.72. An increase in the ration over the previous period indicates
improvement in the operational efficiency of the business provided. But the last year ratio
shows decreasing value of profit as on 6.63.
 Fixed Assets Turnover

This ratio indicates the extent to which the investments in fixed assets
contribute towards sales. If it compared with a previous period, it indicates whether the
investment in fixed assets has been judicious or not.
Formula: - Net sales / fixed assets
2.70 2.71
2.22 2.14
1.90 1.79
1.49
3.16
3.32
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
1998-99
1997-98
There is major decline in ratio in 1999-00 which shows absolute figures of
sales have gone up. After that there is constant increase in fixed assets contribute towards
sales.
 Working Capital Turnover
The excess of current assets over current liabilities of the business is called
working capital. It means the portion of funds invested in current assets. This ratio

indicates whether or not working capital has been effectively utilized in making sales. In
case a company can achieve higher volume of sales with relatively small amount of
working capital, it is an indication of the operating efficiency of the company. Here net
working capital is considered as net current assets.
Formula: - Net Sales / Working Capital
3.75
2.76 2.73
2.28
1.65
1.91
2.42 2.44
1.97
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
1998-99
1997-98
Financial Highlights of 2006:
Consolidated Financial FY 06 FY 05 % Chg
Revenues 10822 9473 14%
Domestic 4443 3844 16%
Exports 6379 5629 13%
EBITDA 1218 1419 -14%
EBITDA(%) 11% 15%
PAT 468 662 -29%
PAT(%) 4% 7%
Cash profit 865 1036 -16%
Key Ratios FY 06 FY 05
Operating profit ratio (%) 11% 15%
Return on Net worth (%) 9% 12%
Return on cap. Employed (%) 10% 13%
Sales to cap. Employed.(times) 1.32 1.10
Consolidated EPS (Rs) 18.27 26.05
Standalone EPS (Rs) 23.93 44.00
Revenues Segment wise:
(Rs. in million)

0
1000
2000
3000
4000
5000
USA Non US DOM
FY 05 FY 06
Revenues from International markets grew by 13% of which printing inks
segment grew by 18% backed by new customer additions in US and increased sales to
existing customers.
 Buoyancy and growth in domestic market drives Revenues.
(1) Domestic sales up 16% at Rs 4443 mn compared to FY05.
(2) Sales for the year in General inks up 23% in Liquid inks 12%, pigments by
74% compared to FY05.
(3) New publication launches, new customer breakthroughs, dominant
participation in the expansion plan of major existing customers generated
additional revenues.
(4) 18 ATM installations in place driving customer servicing and sales.
(5) 2 new customer additions during the year with annual sales potential of Rs
100 mn.
 Non-US sales steady but lower than expectations.
(1) International Sales recorded growth of 13% to Rs 6379mn as against Rs 5629
mn.
(2) Growth across geographies with sales in USA up 25%, Europe remained flat,
Asia pacific up 5%, Latin Americas by 11%, Africa was up 38%, Middle East
up 91% compared to FY2005.
(3) Sales up by 19% in General inks, 7% in Liquid inks, 6% in Resins and wire
enamel up 21% compared to FY05.
(4) In the first full year of operation subsidiary in china registered a steady progress
and achieved a sales of RMB 33mn (Rs 175 mn).
 Sales trend of MIC USA
(1) MIC USA achieves Ebitda breakeven. Growth momentum continues with
higher volumes and customer additions.
(2) Sales from US subsidiary to end customers were at USD 85 mn as against USD
68 mn up 25% in dollar terms and 22% in rupee terms.
(3) The US sales in the heat set segment grew 24% to USD 61.2 mn and sheet fed /
RM segment grew by 26% to USD 21.8 mn compared to FY05.
Operations & Profitability:
FY 05 FY 06
USA 3049 3719
Non US 2580 2660
DOM 3844 4443

Consolidated capital employed, debt & Net Working capital
0
2000
4000
6000
8000
10000
Capital
employed
Debt. NWC
2005 2006
 Capital base strengthened, debt Equity ratio improves, stood at 0.55 as at 31.3.06.
Preference shares of Rs 750 mn redeemed during the year. Debt reduction by Rs 127
mn.
 Sales to capital employed improved to 1.32 times from 1.10 times PY on increased
revenues and better working capital management. Overall capital employed decreased
in absolute terms by Rs 413 mn on account of reduction in net working capital by Rs
578 mn and increase in net fixed assets by Rs 165 mn.
Key performance highlights Q1 of 2007:
Consolidated Financial Q1 07 Q1 06 % Chg
Revenues 2727 2472 10%
Domestic 1187 1069 11%
Exports 1540 1403 10%
EBITDA 102 319 -68%
EBITDA (%) 4% 13%
PAT -126 164 -177%
PAT (%) -5% 7%
Cash profit -39 249 -116%
 Domestic Sales actual growth of 11% Increased offtake in volumes and realizations
in Heatset, coldset and Sheetfed segments.
 Non US sales including supplies to Huber stood at Rs 598mn.
 MIC USA sales registered a growth of 9% in dollar terms QoQ on back of Volumes
growth from existing customers and better sales realizations in Sheetfed segments.
 Unabated Increase in Raw material cost on back of higher crude oil prices
impacting Ebitda by 5% despite selling price hikes.
 Debt to Equity stood at 0.6 and Sales to capital employed improved to 1.36 times.
Net working capital cycle was 3.12 times.
2005 2006
Capital
employed 8620 8207
Debt. 3045 2918
NWC 4486 3908

Revenues Segment Wise:
0
200
400
600
800
1000
1200
1400
USA Non US DOM
Q1 06 Q1 07
Geographical spread of international sales:
USA, 62%
Africa, 2%
Asia Pac., 12%
Europe, 17%
Mid. East, 4%
Latin Amer., 3%
INTEREST V/S SALES:
Q1 06 Q1 07
USA 815 942
Non US 588 598
DOM 1069 1187

Year Sales Interest Interest/Sales
2005-06 9181.02 216.67 42.37
2004-05 8415.33 166.4 50.57
2003-04 6224.75 174.99 35.57
2002-03 5921.6 416.04 14.23
2001-02 5217.84 422.11 12.36
2000-01 3471.13 172.31 20.14
1999-00 1901.11 69.11 27.51
1998-99 1492.58 66.89 22.31
1997-98 1003.59 69.38 14.47
Interest/Sales
42.37
50.57
35.57
14.23 12.36
20.14
27.51
22.31
14.47
0
10
20
30
40
50
60
2005-
06
2004-
05
2003-
04
2002-
03
2001-
02
2000-
01
1999-
00
1998-
99
1997-
98
Years
%
Interest/Sales

As depicted in graph, interest to sales has increase from 14.47% in FY 1997-98 to
27.51% in FY 1999. Thereafter interest line starts declining and comes down to 12.36%
of sales in FY 2001-02 and again increase from 50.57% in 2004-05 as a result of Debt
Restructuring, which reduced interest burden.
NET PROFIT TRENDS:
Rs. In Cr.
Year
Net
Profit
1998 97.46
1999 234.69
2000 243.32
2001 316.29
2002 483.09
2003 440.41
2004 732.37
2005 1075.70
2006 609.03
Net Profit
97.46
234.69243.32
316.29
483.09440.41
732.37
1075.7
609.03
0
200
400
600
800
1000
1200
1998
1999
2000
2001
2002
2003
2004
2005
2006
Years
Rs.inCr.
Net Profit

Project Report on Micro Inks Ltd and the Ink Industry

Project Report on Micro Inks Ltd and the Ink Industry

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