Nicholas Piramal and Its Relation with Coty

CONTENTS
CHAPTER 1 : INTRODUCTION
INTRODUCTION
The aim of this report is to provide an insight into Coty's success story, how
it moved from a small company to a famous multinational, since its
foundation in 1904 to date. Also it refers to the relationship that it has with
Piramal Group in terms of getting the volume of the bottles from the latter
PROBLEM ON HAND
Determination of volume of glass bottles required by Coty Inc company from Nicholas Piramal
Ltd.
to study the logistics and other operations involved between Piramal Glass and Coty
IMPORTANCE AND SCOPE OF THE PROBLEM
Importance
Gain key insights into the company for research purposes. Key elements such
as SWOT analysis and corporate strategy are incorporated in the profile.
- Identify potential customers and suppliers with this report’s analysis of the
company’s business structure,operations, major products and services and
business strategy.
- Understand and respond to your competitors’ business structure and
strategies with Our detailed SWOT
analysis. In this, the company’s core strengths, weaknesses, opportunities and
threats are analyzed,
- Examine potential investment and acquisition targets with this report’s
detailed insight into the company’s strategic, business and operational
performance.
Scope
- Business description – A detailed description of the company’s operations and
business divisions.
- Corporate strategy – Our summarization of the company’s business strategy.
- SWOT analysis – A detailed analysis of the company’s strengths, weakness,
opportunities and threats.
- Company history – Progression of key events associated with the company.

- Major products and services – A list of major products, services and brands of
the company.
- Key competitors – A list of key competitors to the company.
- Key employees – A list of the key executives of the company.
- Executive biographies – A brief summary of the executives’ employment
history.
- Key operational heads – A list of personnel heading key
departments/functions.
- Important locations and subsidiaries – A list of key locations and subsidiaries
of the company, including
contact details.
OBJECTIVES OF THE PROJECT
The project has the following objectives
(i)Nicholas Piramal glass
(ii)Study the global markets where they are present
(iii)Future of the Industry
(iv)Identify the branding strategy used by company COTY
(v)Study the value chain of a branded perfume to identify the logistics involved
(vi)Create a framework and Research question
(vii)Competitor Analysis
(viii)Consumer Perception(Survey)
(ix)Perceptual Map
(x)Data Analysis
(xi)Findings,Limitations of the Report
MODUS OPERANDI
Research through Internet on Coty and Piramal Group
CHAPTER2 -DETAILS OF THE ORGANISATION
PIRAMAL GROUP INTRODUCTION
Piramal is a diversified conglomerate with operations in over 30 countries.
It has brand presence across 100 markets around the world.
It is ranked amongst the leading business conglomerates in India
The Piramal Group operates across the sectors
(i)Piramal financial services
(ii)Piramal Health Care
(iii)Piramal Life Sciences
(iv)Piramal Glass
Leading global manufacturer of pharmaceutical and cosmetic glass packages.

Manufacturing footprint across countries-USA,India and Sri Lanka.Combined capacitites of
1335 TPD.Total turnover of the company is in excess of USD 294 mn.
Manufacturing footprint across countries - USA, India and Sri LankaCombined capacities
of 1335 Our Vision :To enhance the value of the product by providing speciality glass
packaging to fulfil people's aspirations.
Our Mission is to:
be a reliable partner for specialty glass packaging.,adopt cutiing edge business
processes,have engaged employees in top 80 percentile globally.be a global leader in
terms of market share by 2020.
GLOBAL NETWORK :
Exports to over 52 countries
70 percent of sales is out of India
Exports from India account for about 54% of sales
turnover of the company is in excess of USD 294mn.
PIRAMAL GLASS
Piramal Glass Limited-formely known as Gujarat Glass Ltd.-is an Indian Glass
packaging company providing packaging for Pharmaceutical and Perfume
industry.Prior to acquisition in 1984 by Piramal Group,the company located its
manufacturing plant in Kosamba,Gujarat .In 1990,Gujarat Glass Pvt Ltd merged
with its parent company Nicholas Piramal India ltd to become one of its many
divisions.Piramal Glass offers stuff like full bottle design capabilities,in- house
mould design,CNC machines for mould manufacturing,glass manufacturing and
dedicated ancillaries for decoration and accessories like caps,cartons and
business.
RECOGNITION FOR PIRAMAL GLASS
In 2013,Piramal Glass Ceylon(PGC) won the fourth consecutive Gold award in
the largest industry segment in the Ceramic sector at Annual National Chamber
of Exports Awards.PGC was also recognised as the overall winner of the “Most
Outstanding Exporter” in the Industry sector.
TOTAL QUALITY MANAGEMENT : Quality pervades our state-of-art
manufacturing plants done at Thane and Pithampur(Indore).Plant at Thane
have obtained the coveted ISO 9001 & ISO 14000 artifacts and also the SQF
2000 & HACCP Certification.The Pithampur plant obtained ISO?4000 certificate
from BVQl,making NPIL one of the first seven pharmaceutical companies in
India to do so.By implementing the principles of Gemba Kaizen,workers are

encouraged to use their talent,initiative and ideas to improve their work and
workplace.Juran Quality improvement projects are also in use for continuous
improvement in the group activities.
Piramal Glass consists of top-notch clientele comprising 17 of the top 20
perfumery and pharmaceutical companies worldwide.Design Studio-global
leadership in the design and manufacture of the glass;Piramal glass is
committed to delivering innovative and creative packaging solutions to
customers in categories as diverse as perfumes,cosmetics,skin-
care,beverages,food,wine and pharmaceuticals.
Special glass packaging is provided in pharmaceutical,cosmetics and
perfumery business,specialty packaging for food and beverages and pharma
glass packaging.The fact that every third nail polish bottle in the world is
manufactured by Piramal Glass owners speak volumes of their expertise as
perfumes and cosmetic bottle manufacturers.Piramal Glass has manufacturing
facilities across India,the USA and Sri Lanka.Additionally a widespread
distribution network across Europe,SouthAmerica and Asiaexists. The Piramal
glass offices are located across Germany,the UK,France,Sweden
,Egypt,Nigeria,the UAE,Vietnam,Phillipines,Indonesia and Brazil
COSMETIC AND PERFUMERY
Piramal Glass is the second largest manufacturer of Flacconage glass for the
cosmetic and perfumery(C&P)business with a capacity of 545 TPD-youngest
player in the segment globally-has 6% of the USD 2.3 bn global market
share.The segment caters to customers across 44 countries including
L'Oreal,Yves Rocher,LVMH,Coty,Bogert,Elizabeth Arden,Estee Lauder.
C&P business further segmented as Color Cosmetics,Low Mass
perfumes,MNC,Mass Perfumes,Select Perfumes.Within the Colour Cosmetic (nail
polish)segment,Piramal Glass claims to be the world leader with a 50% market
share.The Premium business of C&P which includes the Select and MNC mass
segment is the prime focus of the Piramal Glass growth strategy.Piramal Glass
claims to be the fastest growing player in C&P business with a CAGR of 18.4 %
in last 5years.
MANUFACTURING FACILITY
Piramal Glass-has its manufacturing facilities in India(Kosamba and
Jambusar),Sri Lanka,USA.
The Kosamba facility has 6 furnaces- one for pharma and five(5)for C&P-with a
combined capacity of 330TPD.
The Jambusar facility is one of the world's largest installed capacitites for
pharmaceutical packaging in amber glass.It has 3 furnaces with a combined
capacity of 520 TPD.
The US gas plant in Missour has two furnaces with a combined capacity of 195
TPD for F&B and C&P products.The Decorative Unit is located in the state of
New Jersey.

In Sri Lanka,Piramal Glass has one furnace in Horana with a capacity of 250
TPD for producing both flint and amber bottles.
Piramal Glass is a solution player in the flacconage business.The company has
several trusted partneships.which include-An ancillary (ANSA)with facilities for
printing,etching,coloring ,coating and stamp foiling.A decoration facility in
Withamstown in the US for PVC coating .
An ancillary for the supply of caps,cartons and brushes.During the last
year,Piramal Glass got recognition with the Kosamba plant getting the Frost &
Sullivan Gold Certificate Award for Business Excellence and the Jambusar plant
getting the Golden Peacock Award for Quality.
We have two main facilities at Kosamba and Jambusar,both of which are
strategically located near three major seaports.
Kosamba Gujarat-The Kosamba facility has 6 furnaces-three each for Pharma
and C&P-with a combined capacity of 340 tonnes per day.These produce USP
Type I,II,III Amber and Flint Bottles and Vials for the pharmaceuticals
business.Type IIIglass for Nail,Enamel, Perfumes,Skin Care,Foundations,Arome
Oils,Miniature etc(from 5mL to 150 mL)Feeder coloured perfume bottles.
AZZARO -
The Azzaro brand was created in keeping with Loris Azzaro, its founder,who
hailed from Sicily and was born in Tunisia.It can be described as a typical sun
infused perfume brand of the Mediterranean region.Following are major brands-
Decibel,Chrome,Azaroo Pour Homme,Azarro Couture
BURBERRY-set up during 1856 by Thomas Burberry.Available in four major
varieties-Body Fragnance,Men's Fragnance,Women's fragnance and Fragnance
& Beauty Gifts
CHANEL- Chanel's fragnance is overseen by Jacques Polge.Following are
newest offerings
(1 )N'5 Eau Parfum Spray
(2)Coco Mademoiselle Parfum
(3)N'5 Eauv De Parfum Refillable Spray
(4) N'19 Poudre eau De Parfum Spray
(5)Coco noir Eau De Parfum Spray

CALVIN KLIEN
Calvin Klien offers separate products for Europe,the Americas,and the rest of
the world.3 major groups-women,summer scents and men.
Some of its leading products are
(1)Calvin Klein SHEER BEAUTY
(2) Euphoria Men
(3)Calvin Klein BEAUTY
(4)CKOne Summer
(5)Encounter
DIOR-Dior has following fragnances
(a)J'Adore
(b) Eau Sauvage
(c)Les Escales De Dior
(d)La Collection Pruce Chistian Dior
(e)Dior Home
ESCADA-introduced during 1976.Its fragnances are primarily for 100-men and
comes in 3 major classifications
(a)Classic
(b)Mc house
(c)Summer Fragnances
ESTEE LAUDER
perfumes are available in following scents
Fresh Floral,Citrus,Lush,Floral,Warm,Fruity,Woods
FUTURE PROSPECTS
Piramal Glass plans to raise upto Rs 200 crore through rights issues for further
expansion of its business.
Coty and Piramal to enter into the volume commitment for all SKU's of the
contract.
Piramal and Coty to review volume commitment every mid-year and
accordingly adjust volumes for achieving volume commitment
The contract should specify volume commitments based on location for all the
common SKU's .
PRICE-ESCALATION :COTY-PIRAMAL CONTRACT
Coty and Piramal to honour pricing for all the SKU's for the entire period of
contract from FY-15 to FY-17.
Piramal will not request for a price increase during the contract period
irrespective of input cost increase and inflation

Accordingly Coty will not entertain any offer from other glass suppliers for the
contract period
INFRASTRUCTURE
The ever-increasing demand fosted the tyranny of limited capacity on Piramal
Glass.Providentally ,land 26 acres in extent ,some 50 km South of Colombo was
available when the Piramal's new manufacturing facility capable of producing
250 tonness of glass has now been established.
This new plant is equipped with
(i)End -fired regenerative furnace capable of producing Flint and Amber glass
(ii)Five manufacturing lines
(iii)Two lines equpped with color feeder
Forhearth colouring-To produce new colors based on customer
requirements.Piramal Glass has a colouring feeder operation for the perfume
segment in technical collaboration with a world leader in coloring systems.It is
the first company in India to offer such a system to customers.PGL currently
produces 6 basic colors (blue,green,purple,lightgray,green,dark grey and
black)in 15 different shades.Infrastructure to produce bottles in the range of 50
ml to 205L.Hot end and Cold end coating.Later inspection machines on all
manufacturing lines.Self-sufficient glass laboratory -This chemical laboratory is
responsible for incoming RM inspection as well as constant improvement in
quality of the end product.
Separate shrink wrap packing machine for each line Palletizer.
In-house design centre
Silica mining and processing for captive consupmtion.
In-house Polythene manufacuring for captive consumption.
Dedicated in-house printing facility.
Ceramic printing in one or multiple colours.
Organic colour printing in one or multiple colours.
Fully automatic and semi automatic machines.
Inks sourced from Europe.
The Silica Mining and Processing Plant,including the polythene manufacturing
for shrink-wrapping facility,is located at Nallandiya which is 65 kms North of
Colombo.Administrative back-up centres in India are on a SAP-integrated
system and linked directly to multi-located offices in India,USA and SriLanka
Piramal Glass Ceylon has imbibed all the elements of a systematic approach to
excellence in results.Piramal Glass Ceylon is the first industry in Sri Lanka
belonging to Piramal Group to be awarded BVQ1 certification of ISO-9001:2000
in recognition of the quality management system for design
,development,manufacture and sale of glass containers
Piramal Glass-global leader in delivering world-class packaging solutions for the
perfumery and pharmaceuticals.Their end-to-end flacconage solutions include
full bottle design capabilities,in-house mould design,CNC machines for mould
manufacturing,high quality glass manufacturing and deducted ancillaries for
decoration and accessories like caps,cartons and brushes.Piramal Glass that is
meant for perfumes is among the top five manufacturers of perfumery bottles
in the world.It has a large geographical footprint,with a sales and distribution
presence in most major markets across the globe.
The significant marketing presence in Europe,USA and South America enables

them to build more intimate relationships with customers,and respond to their
needs quickly and efficiently.
Flacconage is a labour and skill intensive industry.Manufacturing facilities are
there in USA, India and Sri Lanka.
USA (Missouri )
Flat River: 195 TPD with 2 furnaces and 8 lines
Flat River 195TPD with tw furnaces and 8 lines
Total Capacity: 12 furnaces (1335 TPD)
56 production lines in total with 34 dedicated to C&P and 22 to
Pharma and SF&B
56 production lines in total with 34 dedicated to C&P and
22 to Pharma and SF&B
Gujarat,India Missouri,USA
Sri Lanka (Western Province)
CORPORATE FACTS
India ( Gujarat )
Kosamba : 370 TPD with 6 furnaces and 23 lines
Jambusar: 520 TPD with 3 furnaces and 19 lines
Sri Lanka (Western Province )
Horana: 250 TPD with one furnace and 6 lines

GlobalListed on stock exchange in Mumbai,India
Cosmetics and Perfumery (C&P) is the growth driver of the company ,growing
at CAGR of 13percent leader with 50 % market share in color cosmetics
Market leader in Pharmaceutical in India
COTY INTRODUCTION
Coty is a new emerging leader in beauty.Coty is a pure play beauty company
with a
portfolio of well-known brands that compete in the three segments in which
they operate: Fragrances, Color
Cosmetics and Skin & Body Care. Coty holds #1 global position in fragrances,
#6 global position in color cosmetics and have a strong regional presence in
skin & body care.
HISTORY STARTED FROM FRANCOIS COTY

THE ORGANISATION-COTY
Coty's top 10 brands, which are referred to as “power brands”, comprises the
following
globally recognized brands: adidas, Calvin Klein, Chloé, Davidoff, Marc Jacobs,
OPI, philosophy, Playboy, Rimmel and Sally Hansen .
Coty brands compete in all key distribution channels across both prestige and
mass markets and in over 130 countries and territories.
We grow organically through our focus on supporting and expanding global
brands while consistently developing
and seeking to acquire new brands and licenses. Brand innovation and new
product development are critical
components of our success.
The “power brands”, are at the core of our accomplishments.
and have the greatest global potential, to enhance Coty's scale in the three
beauty segments.
viz fragrance, skin care, color cosmetics and body care.
PRODUCTS/BRANDS
The description of power brands are given as follows
adidas. adidas is one of the biggest licensed brands in the global mass skin &
body care market and
maintains a significant presence in deodorants and shower gels. Our adidas
products for both men and
women blend distinctive brand identity (through each fragrance and product
design) and aspirations of
performance (epitomized by the “developed with athletes” signature) to appeal
to a broad range of
consumers. The brand has been sold and enjoyed years of successful revenue
generation in developed
markets, such as Western Europe and North America, and emerging markets,
such as Eastern Europe,
including Russia, Brazil, China, and India.
• Calvin Klein. Calvin Klein is our largest brand by net revenues and one of
the largest fragrance brands by net
revenues in the world. It holds strong positions in most developed markets,
including the United States, the
United Kingdom, Germany and Spain, and in emerging markets, such as China
and the Middle East. The
brand is also sold in the travel retail sales channel, including duty-free shops.
The brand reaches a diverse

consumer base through several strong product lines, including ck one, Eternity
and Euphoria. In fiscal 2012,
we launched ck one color, a new line of color cosmetics under the ck one
product line sold in prestige
distribution channels. We intend to increase the consumer reach and market
share of our Calvin Klein brand in emerging markets.
• Chloé. Chloé is one of the fastest growing prestige fragrance brands for
women over the past four years and
is now one of the top 20 women’s fragrances in the global prestige market.
Chloe’s sales results are
particularly strong in the United States, China, France, Germany, Italy, Japan
and Spain.-
• Davidof. Davidoff is the #10 men’s fragrance brand in the worldwide
prestige market. Cool Water,
Davidoff’s most successful line, is the #2 men’s fragrance brand in the
German prestige market, and has been
one of the world’s leading prestige men’s fragrances since its initial launch in
1988. In 1996, we launched
our Cool Water women’s fragrance, which has enjoyed similar success. In fiscal
2013 we launched Game
under the Davidoff brand.
• Marc Jacobs. Marc Jacobs is an iconic fragrance brand, with Daisy Marc
Jacobs, Marc Jacobs Lola and Dot
Marc Jacobs. In calendar year 2012, Marc Jacobs was the #7 women’s
fragrance brand in the U.S. prestige
market and the #4 women’s fragrance brand in the U.K. prestige market. The
brand has been particularly
successful in certain Asian markets, including China, and has sold well in duty
free shops.
• OPI. OPI is the leader in professional nail care. With its portfolio of over 400
creatively-named unique
shades, OPI links fashion and entertainment with color cosmetics. OPI regularly
creates limited-edition
collections with celebrities and entertainment franchises and works with
fashion houses and fashion
publications to promote the brand. Our OPI brand product lines include OPI
(which is sold through salons,
travel retail and traditional retailers) and Nicole by OPI (which is sold through
mass retailers). OPI also
markets nail gels, nail care products and nail accessories through salons. OPI is
sold in over 100 countries
and territories.

• philosophy. philosophy enjoys strong market position in skin & body care in
the U.S. prestige market and
leverages multiple distribution channels, including direct television sales, such
as QVC, and e-commerce.
philosophy’s miracle worker line, launched in calendar year 2010, was
reported to be one of the most
successful skin care launches in the U.S. prestige market in the past few years.
In recent years, Coty commenced distribution of philosophy in certain
international markets, including Canada, the Netherlands,
the United Kingdom, Singapore and South Korea.
• Playboy. Playboy has quickly become one of the top-ranked brands in the
European mass market, and
Playboy is now the #2 fragrance brand in the combined North American and
European mass retail markets. Playboy enjoys strong market positions in both
men’s and women’s markets.
Playboy has recently begun expanding into deodorants and shower gels.
-playboy is coming as question mark
• Rimmel. The Rimmel brand comprises a broad line of color cosmetics
products covering the entire range of
women’s color cosmetics needs, including eye, face, lip and nail products.
Rimmel is sold in drugstores and
other mass distribution channels. Rimmel is the #3 color cosmetics brand in
the European retail mass market
and is rapidly increasing net sales in the Americas and Asia. Rimmel has been
represented for more than ten
years by Kate Moss, who has also recently developed and promoted her own
signature line of Rimmel lipsticks.
• Sally Hansen. Sally Hansen is the #1 nail care product brand in North
America. We believe that Sally Hansen
has the most diversified and successful line of nail products in the U.S. Products
in our Sally Hansen line
include nail care products, nail color lacquers and nail and beauty implements.
We also sell a broad range of
depilatory and wax products through our Sally Hansen brand. Sally Hansen is
sold in drugstores and other
mass retailers. Although Sally Hansen is currently primarily a North American
brand, we have begun
successfully expanding its presence in Europe, Asia and South America by
focusing on nail care and color.
In addition to our power brands, we have a broad and deep portfolio of over 50
other brands. These include regional brands such as Joop!, Jil
Sander,Lancaster and Manhattan, celebrity brands such as Beyoncé and
Jennifer Lopez and emerging brands such as

Roberto Cavalli, Bottega Veneta and Balenciaga.
PROCESSES
Investments in mould manufacturing
Mould Polishing Machine-SPM,Italy,Quality and Uniformity in polishing
Latest Mould Scanning devices,Reading Complex Shape and drawing
development
Mould Manufacturing capability has improved
Improvement in Lead Time and OTIF
INVESTMENT IN COLD END

PGL plans to introduce 100% automatic inspection for 3 nail polish lines .
Vendors :Argos-UK and Keyence-Japan
Besides this ,we have below m/c installed at cold end on specific lines
Argos :Neck Checking like Pin crack,ring crack,shoulder crack
Astra :Body Checking like body crack,bubble,blister,black-spot,lap mark
Jar Inverter Machine:For Online bottle cleaning
Veritas IB :Sealing surface and base surface (Bottom defect)
NEW INITIATIVES FOR DECORATION-PRINTING
Flamers and de-ionizers are installed before bottle printing
Air-conditioned environment and restricted entry for dust control
Single pack organic inks for smoother and uniform color printing
Screen making procedures has been upgraded and streamlined
Improvements planned:
Double bottle printing on single Kammann machines whereever possible
High speed nail polish machine for printing
Automated sorting for single color printing is being explored.
NEW INITIATIVES FOR DECORATION-COATING

Pressure variations ,temperature variations and coating line jerks were
minimized through technical improvements
Dust control-restricted entry,booth closure,deionizers,flamers and filter cloth
First article system inspection strengthened
For two coating jobs Qa of first quote and second Quote sampling is compulsory
Improvements planned
Better control of bottle rotation through spinner drive and spindle
improvements
Air conditioned environment for dust control and better working
PROCESS IMPROVEMENT IN DECORATION
NPD Structure changed for better co-ordination between glass and deco, NPD
Team strengthened for printing & coating for shorter NPD lead time
For Printing: Height Gauge developed for all Premium market jobs
Frosting: Controlled mixing of frosting chemicals for smoother finish
Improvements planned :
More educated (Diploma holder) Auto Printing machine operators
Individual department wise training programs in progress & role and
responsibility clarity
PROCESS IMPROVEMENT IN DECORATION
Up-gradation of Kammann machines for half round and non symmetric bottles
UV ink trials for frosted and coated bottles for process validation
Spindle material, design and timely replacement online
DECAL development
Hand Polishing: New polishing technology to improve bottle aesthetics
FUNCTIONAL VALUE CHAIN

Within the value chain, one can find two types of activities:
Roles & responsibilities of Supporting departments:
 Corporate caucus with two adjacent poles :
 The executive committee (operational management) grouping 5
operational divisions which differ from one another by their
distribution channels;
 The functional management committee is composed of 6
transverse branches providing support to the operational
divisions.
Operationnal
divisions
General Management
( Functional divisions)
Geographic
divisions
Fragrance products Administration &Finance Western Europe,North
America
Cosmetics Production & technologie (R&D,
industry)
Latin America
Skin and body care Human relations (Human
resources)
Asia
Designer Communication &external
relations
The Body Shop Strategic development
The three dimensions of COTY organisation
The goal of these multi-divisions is to better coordinate activities within

the given geographical zone in order to steer off competition. This is
clearly a brand (business) exploitation approach.
 The Human Resources management which, groups:
 International strategy,
 Corporate training
 Social relations,
 HR support (Mobility, personal fulfillment, …)
 Operational divisions’ HRM supervision.
The HR policy amounts as follow: « Develop our activity. Recruit,
integrate, form and develop the talented women & men’s career,
imaginative and enthusiastic, who contribute to the growth of
Coty».
 Purchase management, which are in narrow collaboration with the
suppliers.
 The management of Information Systems is aligned on the
structure of operational divisions (“computing for the business
services”).
Main activities
 R&D: with 3,095 researchers and scientists, Piramal creates its own
molecules to develop new products. Therefore Piramal registers
every year numerous patents to protect its research results.
 Marketing: teamworks with the R&D department in order to
finalize products in perfect harmony with the brand image as well
as the client’s expectations.
 Production: organized all over the world with 34 cosmetics
factories technologically specialized.
 Logistics: in charge of optimizing the management of the physical
streams, the streams of information since the source up to the
consumer. Its main mission are the knowledge of details, reactivity,
productivity and service but also to reduce the “time to market”,
the costs and the stocks.
 Distribution: presence over all networks, targeting different and
complimentary customers
PROCESS VALUE CHAIN
Purchases/ Suppliers
Upstream to the production, Coty is dealing with a wide range of
suppliers:

 Raw materials: Coty products require the use of a large pallet of
raw materials entering the composition of their formulas.
(Polymers, fat, natural products, perfumes, solar filters, vitamins,
…)
 Packaging Development: in association with the marketing teams in
order to respond, in an optimal and innovative way, to their
objectives in this domain.
 Industrial equipments: weighing, washing, packaging …
 Indirect purchases in the structuring of the general costs:
intellectual services, lodging and travel expenses, meetings/
events, buildings cost, temporary work, IS telecommunication....
 Set-up of merchandising, collaboration in partnership with
specialists of the domain. The purpose is to value the selling points
and to capture consumers.
Production of finished products
To realize its production,Coty mainly leans on its factories, which assure
the production of finished products, according to the specifications, and
in the respect of customers deadline.
The production function is in charge of the continual improvement of
processes and performances for means of production, to maintain the
competitiveness and improve the working conditions.
Distribution
For its products distribution, Coty leans on its own warehouses.
Sales
Coty products are present on all the sales channels:
supermarkets, perfume shops, department stores, e-business,
etc
IS ENVIRONMENT
Our marketing eforts also benefit from cooperative advertising
programs with retailers, often in connection
with in-store marketing activities. Such activities are designed to attract
consumers to our counters, displays and
walls and make them try, or purchase, our products. We also engage in
sampling and “gift-with-purchase” programs
designed to stimulate product trials.Coty has more recently been expanding
their digital marketing efforts, including
through websites which they do not control or operate, with a multi-pronged
strategy that ranges from brand sites, social

networking campaigns and blogs, to e-commerce. Forty-four of our brands
currently have marketing sites, 45 have
social networking activities and the philosophy brand website, which they own
and operate, has e-commerce
capabilities. Coty also partners with key “brick and mortar” retailers in their
expansion into e-commerce.
FACILITIES
Coty manufactures approximately 71% of their products in ten facilities around
the world. These facilities are
located in the United States, Europe and China. Several of these locations
provide multi-segment manufacturing.
Approximately 29% of our finished products are manufactured to our
specifications by third parties.
We continue to streamline our manufacturing processes and identify sourcing
opportunities to improve
innovation, increase efficiencies and reduce costs. We have a dedicated
worldwide procurement team that we
believe follows industry best practices and that is making a concentrated effort
to reduce costs associated with our
third-party suppliers. While we believe that our manufacturing facilities are
sufficient to meet current and
reasonably anticipated manufacturing requirements, we continue to identify
opportunities to make improvements in
capacity and productivity. For example, we are streamlining our manufacturing
facilities to make distribution more
efficient. To capitalize on supply chain benefits, we will continue to utilize third
parties on a global basis for
finished goods production.
The principal raw materials used in the manufacture of our products are
essential oils, alcohol and specialty
chemicals. The essential oils in our fragrance products are generally sourced
from fragrance houses. As a result, we
realize material cost savings and benefits from the technology, innovation and
resources provided by these fragrance
houses.
We purchase the raw materials for all our products from various third parties.
We also purchase packaging
components that are manufactured to our design specifications. We work in
collaboration with our suppliers to meet
our stringent design and creative criteria. In fiscal 2013, no single supplier
accounted for more than 6% of the
materials used in the manufacture of our products.
We regularly benchmark the performance of our supply chain and change
suppliers and adjust our distribution
networks and manufacturing footprint based upon the changing needs of our
business. We are always considering
new ways to improve our overall supply chain performance through better use
of our production and sourcing
capabilities. We believe that we currently have adequate sources of supply for
all our products. We have not

experienced disruptions in our supply chain in the past, and we believe we
have robust practices in place to respond
to any potential disruptions in our supply chain.
We have established a global distribution network designed to meet the
changing demands of our customers
while maintaining service levels. In calendar years 2010 and 2011, we received
recognition from two of our largest
retail customers for our superior performance, including a Wal-Mart Supplier of
the Year Award, and in calendar
year 2013, we received a Manufacturing Leadership 100 award for leadership
in global manufacturing. We are
continuing to evaluate and restructure our physical distribution network to
increase efficiency and reduce our order
lead times.
We also recognize the importance of our employees and have programs in
place designed to ensure operating
safety. We also have in place programs designed to ensure that our
manufacturing and distribution facilities comply
with applicable environmental rules and regulations.
ORGANISATIONAL STRUCTURE
The Piramal Group has derived insight and strength from Indian culture and
philosophy. Our path is
guided by our core values: Gyana Yoga (knowledge and learning), Karma Yoga
(dynamic action and
entrepreneurial spirit) and Bhakti Yoga (care and compassion), which are
embodied in our new visual
identity, our logo – the Gyan Mudra.
We are confident that our new corporate identity and our values
Knowledge, Action and Care, will spur us to empower the community and in
return create value for our
shareholders going forward.
Cosmetic & Perfumery division:
PGL’s Cosmetic & Perfumery business grew by 16.3% to Rs.3,529.8 million in
FY2008 on back of robust
growth in global sales which stood at Rs.3,305.2 million registering growth of
18.1 % over FY2007.
Pharmaceutical division:
PGL continued to consolidate its position in the domestic pharmaceutical glass
packaging market. The
focus during the year has been to rationalize customers and products in
domestic market and increase
sales outside India and thereby increase profitability. Total sales grew by 10.0%
to Rs.3,006.9 million in
FY 2008.
Specialty Food and Beverages division:
During the year we commenced a new 205 TPD furnace in Horana, Sri Lanka to
replace the old 100
tonnes production facility in Ratmalana, Sri Lanka. This furnace can further be
expanded to 250 TPD.
Sales of Specialty Food and Beverages division were affected by this transition.

As a result net sales of
SF&B segment were stable at Rs. 1,249.2 million during FY 2008.
a new business structure was unveiled, organizing its products under the categories: fragrance, skin
care, color cosmetics and body care. The company also organized itself along four geographic
markets.
ORGANISATIONAL GROWTH THROUGH VARIOUS PARAMETERS OVERTIME
With respect to expansion in the emergingMarket Overview:
Market Size
The market size is as follows
• Pharma Global market size is estimated to be US$ 2.0 bn.
• Cosmetic & Perfumery Global market size is estimated to be US$ 1.9 bn.
Pharmaceuticals Business :
It caters to the requirements of pharmaceutical industry in the product lines
like moulded vials, injectables and bottles. In domestic market PGL
enjoys about 40% market share.
Major customers of containers for pharmaceutical industry are Glaxo
Smithkline, Pfizer, E-Merck, Alembic, Aventis, Dabur (India), Ranbaxy, Cipla,
Himalaya drugs, Dr. Reddy’s Laboratories, and Piramal Healthcare Limited.
Cosmetics and Perfumery Business:
The glass containers manufactured in Cosmetics and Perfumery are used to fill
nail polish, perfumes, foundations, attars, etc. The main raw materials
used are semi snow quartz, soda ash, lime stone powder.
This market is classified into six segments:
• Select
• Mid-mass
• MNC mass
• Low mass
• Cosmetics
• Nail polish
markets, M&A will be a key driver
OTHER RELEVANT INFORMATION

POLICY
A STRONG AND MOTIVATING HISTORICAL VISION
To enhance the value of the product by providing speciality glass packaging to fulfil people's
aspiration

THE CORPORATE CORE VALUE AND MISSION STATEMENT
be a reliable partner in speciality glass packaging
adopt cutting edge business processes
have engaged employees in top 80 percentile globally
be a global leader in terms of market share by 2020
ORGANISATIONAL LEARNING
(II) Try and investigate the turnover of Coty in fragrance and Nail polish division.
Turnover of COTY in fragrance is 54% i.e. $2.491 bn
Turnover of COTY in Nail Polish Division is 31% i.e. $1.468 bn
(III) Based on that try and estimate the glass procurement of Coty globally
For Eye 3688*100/39962=9.2%
For Face 3208*100/ 35964=8.9%
For Nails 1706*100/18246=9.3%
For Lips 1519*100/16553=9.1%
Total = 36.5% Coty share globally
(IV) Try and find the manufacturing locations of Coty
The company has manufacturing plants in the US, Europe and China. It delivers products in over
130 countries. Coty is headquartered in New York, the US.
(V) Coty procures glass from Europe, Taiwan and India, Do check the distance of Coty
locations from these 3 procurement locations.
(VI) Try and find the approximate cost of logistics based on the procurement cost of glass to
Coty.
Retail Price per unit of bottle X number of bottles = total market value.
269 X number of bottles=$2.491bn+$1.468bn
269 X number of bottles=$3.959bn
Therefore number of bottles = $3.959bn /269
=0.016bn apprx

CHAPTER-3
ANALYSIS OF DATA OR TASKS PERFORMED : RESEARCH MODE
CHOICE AND TECHNIQUES OF DATA/INFORMATION COLLECTION
Through internet,newspapers
COTY COMPETITIVE CONTEXT
I expect competition in Coty's developed markets to intensify, which would result in either market
share loss or higher advertising expenses incurred.
Coty's peers include Estee Lauder (NYSE: EL ) and Inter Parfums (NASDAQ: IPAR ) .
COTY PLC

However, the luxury products division could become a DOG for
COTY if its market share decreases as a consequence of the
erosion of its old fragrance portfolio.
PORTER'S NETWORK MODEL

SWOT COTY
SWOT analysis of COTY BRAND :CALVIN KLEIN
Strength
Strong brand
Global distributed system
High quality of all products
Various products for men and women
A portfolio of strong, well recognized beauty brands anchored by our “power
brands” across three key
beauty segments .
Global leader in fragrances.
Licensee of choice
One of the fastest growing players in color cosmetics.
Superior innovation driven by entrepreneurial culture
Product, channel and geographic diversity
Compelling financial profile
Successful integration of acquired brands and companies
Experienced management team with proven industry track record
Weakness
Expensive products
Seriously Compete
Lacking advertisement on TV or other mass media
there is little brand loyaltyor customer stickiness when it comes to perfumes.
the shelf life of fragrances tends to be short, given consumers' preference for
novelty, particularly for fragrances
near-term market share trends are negative
Revenue concentrated in slower growth, developed markets
low profit
less market share
Opportunities

population growth rapidly
development and economic integration
The development of Internet, mass media and technology
Threats
Customer needs
High tax
High inflation
CHAPTER-4 CONCLUSIONS AND RECOMMENDATIONS
Overall the project was successfully completed to the best possible way it could be.
BIBLIOGRAPHY/REFERENCES
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Nicholas Piramal and Its Relation with Coty

Nicholas Piramal and Its Relation with Coty

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