SUMMER INTERNSHIP PROJECT REPORT Ashish Thakran Section-FF1,Rollno-10
Work Carried at Thomson Press (I) Ltd., New Delhi Submitted in partial fulfillment of the requirement of Summer Internship Program Under the Supervision Of Mr.Abhhijit Bose Sales Manager Thomson Press (I) Ltd.
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Industry Overview
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PRINT INDUSTRY
The structure of the Indian print media industry is highly fragmented with importance to regional dominance. The Indian print media segment primarily comprises newspaper and magazine publishing. Book Publishing also forms part of the print media though currently the share is not substantial. As per PwC report, the print industry is expected to grow from Rs 128 bn in 2006 to Rs 232 bn by 2011, at 12.6% CAGR. While the newspaper industry is estimated at Rs 112 bn, the magazine segment is valued at Rs 16 bn. According to a recent survey, the Indian printing industry in India has consistently outpaced GDP growth. Since 1989, the printing and packaging industries‟ collective growth has had a compound annual growth rate of over 16.2%. The growth has always been in double digits and significantly, always more than twice the GDP growth rate. The Indian Printing Industry is poised to achieve 60% growth by the year 2010 and can generate phenomenal increase in employment opportunities. The printing and packaging industry in India has assumed growing significance during last decade. The printing industry is one of the biggest and fastest growing sectors in India. India has more than 1,50,000 printing presses actively in operation in all parts of the country, with a capital investment of over Rs 83,000 million. This industry provides employment to about 1.5 million people directly or indirectly. “It’s a fast growing economy and with consumption so robust and with incomes rising, it’s a fertile ground for the print media,” said Vivek Couto, executive director of Hong Kongbased research firm Media Partners Asia.
There is also buoyancy in print advertising that is encouraging new launches and niche publications in particular. Print publication‐advertising revenues in India generated $2.4 billion in 2007, or 48 per cent of all of the country‟s media advertising revenues, (PWC) said in a recent report. TV ads generated 41 per cent. With the economy having grown at an average rate of 8.75 per cent in the last four years, middle class incomes have risen, boosting demand for niche magazines on health, leisure and finances. Growing prosperity in rural areas is also encouraging demand for publications in India‟s more than 20 official regional languages. Revenue for newspapers and magazines in India — where reading at least one newspaper in the morning is sacrosanct — grew at an average rate of 15 per cent in the last four years, higher than anywhere in the world, PWC said. A young demographic, more workingwomen, rapid urbanization and smaller households helped in the growth, PWC added in its report. Boom:
India in 2005 allowed 100 per cent foreign investment in non‐news publications, keeping the cap for news at 26 per cent. Early investments included Independent News and Media‟s 26 per cent stake in newspaper publisher Dainik Jagran, Pearson Plc‟s 14 per cent in Business Standard newspaper, Henderson Ventures‟ investment in HT Media and BBC World wide magazine venture with Bennett, Coleman & Company. More recently, private equity firm Blackstone Group put $150 million in regional publisher Ushodaya
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Enterprises, Warburg Pincus moved $33 million into the Dainik Group and DE Shaw invested $39 million in Amar Ujala Publications, according to research firm Venture Intelligence. News Corp, which has a content alliance for The Wall Street Journal with HT Media‟s business daily, is keen on more launches. Pearson, which has sold its Business Standard stake, is reported to be in talks for a new venture. Glut:
But it‟s not all‐good news. The large number of players jostling in the market place could lead to a drop off in advertising revenues in the coming years, analysts say. “One of the worries is that publishers are taking ad revenues for granted,” Atul Phadnis, chief executive of consultancy Media e2e said. “Everyone thinks it will keep rising, but as early as 2009 we are going to see a glut in inventory in TV, print and the Internet because of so many players. We will see intense price competition, and smaller firms may be forced out”.
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Growth In Industry Due To Following Factors
Higher literacy levels:
In 2008, the literacy levels increased to 79.9% as compared to 69.9% in 2005. While rural literacy is at 64.8%, urban literacy touched 85.3%. Currently Indian print media is estimated to reach over 220 m people, and has immense growth potential since close to 370 m literate Indians are believed to not be served by any publication. Also, the reach of newspapers is only 27%, as compared to the global average of 50%.
Lower cover prices:
Earlier, due to strong hold over a region, the newspaper had higher cover charges. However, with increasing competition and venture into newer regions the companies have reduced the cover prices to augment more sales. Many English dailies are sold for as low as Rs 2 or Rs 3.5. The initial subscription offers of „DNA‟ and „Hindustan Times‟ (HT) in Mumbai, during their launch period, further reduced the cost of the newspaper to around fifty paisa for an average issue.
Higher ad spends:
Print media accounts for 48% of the total Rs 137.5 bn advertising spend in the country. However, the ad spend in India is just 0.4% of GDP as against 0.5% in China, 1.3% in the US and a world average of nearly 1.0%. With rising consumerism and growing interest from domestic and global brands in Indian market, the growth in ad segment is expected to be strong. As per the registrar of newspapers, there were approximately 6,529 daily newspapers as of March 2005. No single newspaper had a national circulation. In 2006, India had the second largest circulation of newspapers with 88.9 m copies per day; second only to China with 98.7 m copies a day.
Fragmented Industry:
The regionalism aspect is clearly visible in the newspaper sector. The print media is further divided on the basis of the languages. Of the daily newspapers, about 46% are vernacular, 44% are in Hindi and 10% are English. Hindi and vernacular language newspapers offer a local and regional flavor to their readers. The content and circulation of English‐language newspapers, on the other hand, are largely focused on the primary urban centres. Approximately 7% of the population in urban areas read English language newspapers, compared to a readership of only 0.3% of the population in the rural areas. (Source: IRS 2005) In contrast to this, Hindi‐language newspapers have a proportionately larger readership in rural areas, in addition to their strong presence in urban areas, with a readership of approximately 15% and 5% of persons in urban and rural areas, respectively. The newspaper industry is regionally divided, with existing players enjoying strong brand loyalty. For e.g. Times of India follows strong brand loyalty in Mumbai and it was difficult for Hindustan Times to enter Mumbai.
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The newspaper industry has relatively high entry barriers due to the strong brand equity of existing players. Also, existing players have strong control over the distribution network, making it difficult for new players to enter. Attracting foreign investment:
Most Indian print players continued to dominate the local regions and did not enter new territories, mainly due to lack of funds. However, foreign investment regulations were relaxed in 2002. Currently, up to 26% foreign direct investment (FDI) is permitted in newspapers and periodicals dealing with news and current affairs. In non‐news publications, 100% foreign investment is permitted. Since the changes in the regulation many foreign investors have taken strategic stakes in the domestic print media companies. And Growth will be there …
A booming Indian economy, literate population on the rise, increasing consumerism, entry of global brands in the country and opening of the sector to foreign investors would drive the growth in print media. Also with newspaper companies entering into newer regions and segments would lead to stronger growth.
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Company Profile
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Welcome to Thomson Press Thomson Press at a Glance:
Thomson Press has been in operation for over 40 years and is part of the India Today Group a major multimedia company having interests in printing, publishing, Internet, television and radio. Thomson Press is:
The Largest Commercial Printer in South Asia Offering both Printing and Typesetting services Having five Printing Units, two Repro Units and two Typesetting Units Having sales Offices in major Indian and International cities Having revenue of over US $ 200 million on an asset base of US $ 160 million A member of two prestigious world bodies GATF and PIRA.
It is a service industry and not a manufacturing as it provides end‐to‐end solution to the clients, right from designing to delivery of the materials. In one we can say, “It‟s the one stop‐shop for the printing solutions”. The only press in India, which have its own, Design Studio and a Testing Lab. In brief, Design Studio has a team of well qualified designers and they design the contents as per user‟s requirements, which is later sent for printing. Testing Lab takes care for testing the materials that is received from suppliers and they can reject the whole material if it is not as per the ordered one.
The Vision:
“To maintain and be acknowledged leader in printing through improvement in quality” The Mission:
social, personal conscience framework
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Quality at Thomson Press
Quality is one thing, which is not compromised in Thomson Press and this makes it a market leader in commercial press, it‟s a prestige for companies to get their work done by Thomson Press as they are assured that they will get a good quality in return even if they are paying a little high than what is offered by other press.
Quality policy:
“We pledge to achieve Customer satisfaction by continual improvement in our processes and excellence in quality”
This is achieved by: Setting Standards: been set as per the ISO 9001‐2000 international Quality System and has been certified from BSI India Pvt. Ltd. The standard is being revised from time to time whenever there is some improvement or modification in the system. Ensuring adherence of the standards:
to check the compliance of the standard. Preventive and corrective actions:
Every customer complaint is being thoroughly investigated by QA for its origin and reason. iers to continually work on improvement in quality standards.
‐house training programs for technological improvement. ‐knit team to ensure that our quality objectives are met. By gathering data constantly on the occurrence of the defect By sending information about the defect to different departments
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Product Lines
Thomson Press is most diversified premier commercial printer in India. Pioneering in the field of printing offering complete solutions from Design to Dispatch. Product Quality and multi‐location gives Thomson Press over competitors. Apart from the pre‐press, press and post‐press facilities, Print‐on‐Demand facility is also provided to the customers and their short‐run needs are executed rapidly. Moreover, Variable Data Print with complete color personalization level provides more flexibility to the customers. Products:
Reference books
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SERVICES PROVIDED
Pre-press
• Highresolution scanning on drum, copy dot andrlat bed scanners • Automated page planning, image retouching and manipulation • Outputting in conventional and and FM screens • Fully equiped for PDF and PS riles for outputing and digital impositioning • CTP along with conventional plate making • Remote profring with Renderview
Press
• High volume multi‐coloured magzines, saddle stitched or perfect bound. • Quality multi‐coloured calendars, brochures, folders, learlets • Paperback and hardcase books including diaries, children books, bibles etc. • Sheet fed and web offset printing upto 6 colours, including hexacrome printing. • Online dryers for Matt art paper
Post‐Press
• UV varnish application by screen or offset and online aqueous varnish • Water, Solvet ‐based and thermal • All types of foil stamping, gilding, index cutting and embossing. • Intricate die fabrication
• 48‐Station gathering for perfect binding
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SWOT ANALYSIS
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Strengths
Weakness
• Complete Solution under one roof • Own Design Studio • Own Testing Lab • Have best printing machines like GOSS • High quality
• Less motivated sales force • More Manual work • No incentive Scheme for sales people • Capacity is not utilized at its best • Timely Delivery
Threats
Opportunities
• Unorganized sector. Large number of small players • Low rates available in market • Customers compromises on Quality for low prices
• Already set goodwill • Great infrastructure so new markets can be taken up • Low operating cost in India • Wide Scope for annual report printing
What is an annual report
An Annual report is a comprehensive report on a company's activities throughout the preceding year. Annual reports are intended to give shareholders and other interested persons information about the company's activities and financial performance. Most jurisdictions require companies to prepare and disclose annual reports, and many require the annual report to be filed at the company's registry. Companies listed on a stock exchange are also required to report at more frequent intervals (depending upon the rules of the stock exchange involved). Typically annual reports will include:
Chairman's report CEO's report Auditor's report on corporate governance Mission statement Corporate governance statement of compliance Statement of directors' responsibilities Invitation to the company's AGM
as well as financial statements including:
Auditor's report on the financial statements Balance sheet Statement of retained earnings Income statement Cash flow statement Notes to the financial statements Accounting policies
Other information deemed relevant to stakeholders may be included, such as a report on operations for manufacturing firms. In the case of larger companies, it is usually a sleek, colorful, high gloss publication. The details provided in the report are of use to investors to understand the company's financial position and future direction. The financial statements are usually compiled in compliance with IFRS and/or the domestic GAAP, as well as domestic legislation
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Area covered under research
The project is confined to DELHI and NCR region. There are lot of regional head offices of companies in and around Delhi, so it also gives a big market to target. Also, there is diversity in the sectors as there are so many sectors using annual report and have their own preferences, like some wants less quality and more quantity and some do not compromise on quality. This makes important to identify some sectors and then channelize the research work, as there is a time constraint. So following are the sectors, which were chosen for the research work. Private Insurance Companies Private Limited Companies
Objectives of the Project The main objectives of the Study are: customers in corporate sector
Limitations associated with the Project
Time constraints: As is expected during any study there was very less time to do a comprehensive study for annual report printing Thomson Press. Divisional boundary: Area selected was Delhi with main focus being Delhi and NCR base private limited companies Information Asymmetry: It is not easy to get information from the corporate people about their annual report printing and budget over it. Vertical Specific: The research study was based on several verticals so the potential for Annual report printing for whole market will not come out. But we also have a good mix of verticals, which give a fair view of requirements of market when combined. Operational Delays: Due to waiting for appointment from companies for research had made some delay.
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COMPANIES VISITED
E T C india L.td Action Construction Equipment L.td I C R A L.td Punj Lloyd L.td HCL Clay Telecom Services Bose Corporation India Pvt L.td AT&T Global Network Service india Pvt L.td Clay telecom services R . System Intervention L.td ICRA L.td Soma Coya staring System L.td
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