Cavinkare Project.pdf

About C K Ranganathan    In 1983, a 22-year-old young man from the small town of Cuddalore in Tamil  Nadu decides to leave his house with just Rs 15,000 in hand and a dream of  starting his own business.  The lad, C K Ranganathan, had lost his dad a couple of years ago; now he was  leaving behind his mom, five siblings he had grown up with, and the family  house located on a 30-acre farmland, where he had swum in the agriculture  wells for hours on end, fished in the ponds, reared hundreds of pigeons,  loitered around the coconut and mango groves, exercised on parallel bars with  friends, and lived a carefree life.  It was a tough decision to take for Ranganathan, following differences he had  had with his elder brothers on running the family business. (The family made  Velvette shampoo, a sachet product, which was quite popular those days.)  But in retrospect, Ranganathan, or CKR as he is fondly called, has no regrets.  For, 34 years later, the small-scale unit he started with a single product, Chik  shampoo, has metamorphosed into a Rs 1450 crore turnover company,  CavinKare Private Limited, with diverse interests in personal care, dairy,  snacks, beverages, and salons.  The beginning was humble, though. Walking out of his home with his savings  of Rs 15,000, Ranganathan had to first look for a place to stay - and he found  one, hardly 250 metres away from where his family lived.  "It was a single-room house and the monthly rent was Rs 250. I purchased a  kerosene stove, a foldable cot and a bicycle to move around. I was prepared to  face any difficulty when I chose to step out of my comfort zone.  “I didn’t repent for a minute the decision to come out of my house, though  some people at that time felt I had made a mistake,” Ranganathan reminisces,  as we chat one December evening at his office in Cenotaph Road, Chennai. 

From the early days, one of the hallmarks of Ranganathan’s successful  entrepreneurial journey has been his quick decision making skills.  Initially, he says, he was not in favour of making shampoo and competing  with his brothers. He had weighed some options – including, starting a  poultry unit – but soon realised that the only thing he knew was to make  shampoo.  His next crucial decision was to start the factory at Puducherry, about 20 km  from Cuddalore, where there would be less hurdles to obtain a manufacturing  license.  “I got the license within a week. Had it been Tamil Nadu, it would have taken  four to six months and I would have exhausted all my funds by then,” says  Ranganathan. His first product, Chik shampoo, priced at 75 paise per 7 ml  sachet, hit the market less than a month after he left his house.  The brand name Chik was coined from the first letters of his father’s name,  Chinni Krishnan. Chik shampoo with its different variants continues to be  CavinKare’s flagship brand and accounted for sales of Rs 300 crore in the  company’s current turnover of Rs 1450 crore.  Ranganathan’s business that began with four employees at Kanni Koil in  Puducherry where he rented a place for Rs 300 per month, and invested Rs  3,500 in machinery, has gone beyond the shores of India today.  CavinKare products are now available in many countries including Sri Lanka,  Bangladesh, Nepal, Malaysia and Singapore. The company has two overseas  subsidiaries - CavinKare Bangladesh Private Limited and CavinKare Lanka  Private Limited – and employs a total of around 4,000 people. The majority,  around 2,000 of them are employed in their salon chains, Limelite and Green  Trends.  In short, the boy from Cuddalore with rustic tastes, who chose to hang out  with folks from the fishing community, preferred to study in Tamil medium  because he could only cope with it and found English medium tough, and 

who was labelled ‘nee urupada maata’ (good for nothing) by his mother, has  courted success on his own terms.  So much so that he has recreated the farmland aura he was so fond of during  his younger days in Chennai city. At his beautiful home situated on a  sprawling 3.5 acre campus by the beachside at Injambakkam in Chennai, he  lives with hundreds of birds including cockatoos, pheasants and macaws that  are housed in aviaries, which create the ambience of a bird sanctuary.  Watching the birds and spending time with them is part of CKR's daily  routine.  To reach this level, Ranganathan worked hard and smart, making the right  choices all the time, quickly reversing decisions that were not yielding results,  learning all the while, and playing to his strengths.  In his early days in the business, he was in direct competition with Velvette  shampoo, his family owned brand, which also came in sachets.  When he launched Chik shampoo in 1983, he introduced a premium egg  variant that was priced at 90 paise per sachet, 15 paise more than Velvette  shampoo. “A distributor said that it was not a good strategy and I immediately  reduced the price to 75 paise,” recalls Ranganathan.  On the 26th day of leaving his house, he raised the first invoice for Chik  Shampoo and by end of the first year he had done sales worth around Rs six  lakh.  In 1987, the year he got married to R Thenmozhi, a granddaughter of former  Tamil Nadu chief minister, M Karunanidhi, the company was doing sales of  around Rs 3.5 lakh per month. It was an arranged marriage, says CKR,  though the couple belonged to different communities.  The big break for Chik India, as his company was called then, came in 1988  when it offered one Chik shampoo sachet free in exchange for five empty  sachets of any shampoo brand. 

It was a marketing masterstroke that hit Velvette shampoo hard and boosted  the sales of Chik shampoo. When Ranganathan tweaked the offer as valid for  only empty Chik sachets later, the sales increased even more and demand for  Chick shampoo shot up in the market.  “The scheme played havoc and pulverised Velvette. Godrej was distributing  Vevette then. I took on a very powerful distribution network… I disrupted the  market, gained grip, and discontinued the scheme after 10 months,” recounts  Ranganathan, clearly savouring the days when he turned into a giant killer.  The annual turnover crossed Rs one crore in 1989. Ranganathan roped in  Amala, the top heroine of the day in Kollywood as their brand ambassador,  and pumped in money on advertising in TV and print media.  The turnover touched Rs 4.5 crore and then Rs 12 crore a year later. In 1990,  Chik India became ‘Beauty Cosmetics Pvt. Ltd.’ By 1991-92, the company had  introduced jasmine, rose fragrances, and Meera herbal hairwash powder and  took the largest share of the shampoo market in South India.  In the years that followed more products were launched - Nyle Herbal  Shampoo in 1993, Spinz Perfume in 1997, Indica Hair Dye, and Fairever  Fairness Cream in 1998.  It was in 1998 that the company got its current name, ‘CavinKare’ – the CK in  it again tied to the first letters in his father’s name Chinni Krishnan, who  himself was a small-scale manufacturer of pharmaceutical and cosmetic  products. ‘Cavin’ is a Tamil word that means beauty.  In 2001, the turnover crossed Rs 200 crore and the next year Ranganathan  launched their salon chain, entering a segment he felt had huge business  potential.  "Whenever I went for a haircut, I used to ask the owners why they weren’t  thinking of opening more outlets. They would give any number of reasons for  not expanding. I saw an opportunity there and we ventured into the salon  business,” he says. 

Five years later, CavinKare launched Chinni’s Chikki, rebranding the  traditional ‘kadalai mittai’ (peanut candy bar) as a nutritious snack. This  product today accounts for a revenue of Rs 7 to 8 crore in the company’s  annual turnover.  One of the major strengths of the company is its R & D division, where  around 70 people are employed. Ranganathan, who holds a BSc in chemistry  from Annamalai University, has all along been a strong votary of this arm of  business.  “When I joined the family business (where he worked for about eight months  before launching his own company) I was the first one to establish an R & D  lab.  “Within five months of starting my business I set up an R&D unit in a  separate building, for which I paid a monthly rent of Rs 500, a huge expense  then. I hired two chemistry graduates to work in the lab,” says Ranganathan,  whose foresight has been an asset to him.  Having chosen to study in Tamil medium, unlike his siblings who studied in  English medium, CKR had realised quite early that to expand his business  pan-India he needed to have knowledge of English. Without wasting time, he  developed a customised plan to learn the language.  “I stopped reading Tamil newspapers, and started subscribing to English  papers. I bought an English dictionary, and started learning five new words a  day and writing five sentences of my own for each of the five words,” he says.  Today, he is a fluent speaker of English and uses it to communicate with his  colleagues in office, who come from every part of the country.  Ranganathan, the son of a small-town businessman, has fought the  multinationals to reach the stage where he is today. He has continually  evolved as an entrepreneur and has diversified his business through smart  acquisitions. 

In 2008 he ventured into the dairy business by acquiring a sick dairy unit in  Kanchipuram. He acquired Mumbai based Garden Namkeens Pvt Ltd, a  snacks and namkeens manufacturer in 2009. His other acquisitions include  Maa Fruit Drink and Ruchi pickles.  Ranganathan effectively owns 100 per cent of the company. Private equity  major Chryscapital infused Rs 250 crore in CavinKare in 2013 for around 13  per cent stakes, but he bought back the stakes for Rs 525 crore earlier this  year.  Ranganathan’s children Amutha, Manu, and Dharani, are now trying their  hand in their own businesses with papa’s seed money. After evaluating their  performance, CKR would name his successor at CavinKare. “The better of  them will assume the leadership role, and the rest would have to toe his or  her line,” he asserts.  Ranganathan might not have reached anywhere close to the stage of handing  over the baton to the next generation, but the foresighted man that he is, he  would be making mental notes of the business moves of his children to make  the right choice when the time comes.  HISTORY OF CAVINKARE:  The company was founded in 1983 by C. K. Ranganathan and initially  named as Chik India and then renamed to Beauty Cosmetics in 1990 and  again renamed as CavinKare Pvt Ltd in 1998 And was subsequently  rechristened as CavinKare Pvt. Ltd. in 1998. Ranganathan split with his  family after a feud with his elder brothers, leaving home with just Rs 15,000  in hand. He initially toyed with the idea of setting up a poultry farm but  decided to get in the shampoo business as that was what he knew, despite  the fact that he'd have to compete with the family business headed by his  brothers. Ranganathan set up his factory in the union territory of  Pondicherry as the process and bureaucracy would be easier to handle than  in his native Tamil Nadu. The company's first product was Chik shampoo,  sold in single use pouches priced at 75 paise which was released a month 

after he rented his office cum manufacturing facility for Rs 300 and invested  Rs 3500 in machinery. The first year's sales for the product was around  rupees six ​lakhs​.  By 1991 Chik shampoo overtook Velvet (the brand owned by Ranganathan's  family) and was second in market share in the country, after Hindustan  Unilever's Clinic Plus shampoo. Subsequently, the company launched new  products in related categories that included herbal wash powders and soaps  (Meera), herbal shampoos (Nyle), perfumes (Spinz), hair dyes (Indica), and  fairness creams (Fairever). The company typically followed the market and  that contributed both to its successes and failures. The fairness cream  product Fairever made significant inroads into the growing segment despite  the presence of well established players but that success was not seen in the  company's forays into the lower priced segments of perfumes and  deodorants.The company has presence in more than 21 countries and has  diversified into Personal care, dairy, foods, snacks, and beverages  businesses.    It has strategic partnerships with Coty Inc. for Adidas and Jovan brands.  The founder chairman, CK Ranganathan, was born in ​Cuddalore​, Tamil  Nadu. He set up CHIK India in 1983 with an initial investment of Rs. 15,000  with Chik Shampoo as its first product.                   

ABOUT CAVINKARE:    Vision :  “Our vision is to expand and out reach a wider audience by continuously  offering unique products and services that would give customers utmost  satisfaction and thereby be a role model.”    Success is a journey and not a destination  At CavinKare, we strongly believe that success is a journey and not a  destination. The very birth of the company was based on a young,  enterprising individual choosing the road less travelled and explored by  others. Over the years, CavinKare has become one of the most successful  home-grown FMCG companies. The company’s position as the brand of choice  among loyal customers emphasizes that it will continue to be rooted to its  heritage and traditional values while moving with the times which is the  company’s core strength.  CavinKare is one of India’s most promising enterprises today. Not only has the  company diversified interests and catered to varied customer bases,  CavinKare has constantly looked at how to better its range of offerings.  Innovation is the key to growth. The company continues to look at expanding  product portfolios while ensuring the use of smart marketing to maintain  clarity of product positioning. This means that captive markets are never lost  while the conglomerate reaches out to newer ones. CavinKare can attribute its  long time competitive edge to just the simple philosophy of listening to  customers and anticipating their needs as well as communicating with them  effectively.  The company’s long term vision is to emulate and better the achievements of  the past. Thirteen major brands form a part of the CavinKare umbrella today.  The company has a robust presence in India. In recent years, there has also 

been an expansion drive into overseas markets, which has resulted in  successful ventures.    CavinKare’s goal is to remain the preferred choice for customers at home and  in every market, besides operating with conviction and leading certain chosen  sectors for innovation. In summary, CavinKare aspires to be known as the  epitome of excellence.    International Business:  23 countries and still counting…  After establishing a stronghold in the domestic markets, we had set up our  International Business division in 1999 and today we have spread well  beyond India’s geographical borders.  Understanding the consumer demand and adopting the best practices are the  key focus points of our International business. Our tailor-made Innovative  products are made to cater to the International markets.  In addition to domestic manufacturing plants and distributors in various  countries, we operate through its subsidiaries, ​Cavinkare Bangladesh Pvt.  Ltd​ in Bangladesh & ​Cavinkare Lanka Pvt. Ltd​ in Sri Lanka respectively.  Both the plants are wholly owned subsidiary of Cavinkare Pvt. Ltd. The  products are customized exclusively to cater to both the respective markets.    Achievements:  Ranked amongst the 50 homegrown champions in India  Harvard Business Review magazine has ranked CavinKare amongst the 50  homegrown champions in India.  Over the years, CavinKare has been felicitated for excellence in various fields.  Here is an elaborate list of all the awards presented to CavinKare 

Group companies:    ● CK Bakery  ● Trends in vogue      Brands:  Personal care  ● Chick  ● Nyle  ● Meera  ● Karthika  ● Indica  ● Spinz  ● Fairever    Professional care:  ● Raaga professional care  Dairy :  ● Cavins milk   ● Cavins milk shake  ● And other variants like curd, paneer, lassi, and butter    Food & Snack:  ● Ruchi  ● Garden  ● Hema’s idli dosa batter  ● Chinni  ● Pink of health  ● Maa  ● Chillout   

Trends in vogue :  ​ A group Company of CavinKare came into being in July 2002 with a  clear-cut focus on providing personal styling and beauty solutions to everyone  in the family. Having pioneered the concept of family salons, Trends In Vogue  has many other firsts to its credit. The company is the leader in the organized  salon retail chain with its flagship brands Green Trends Unisex Hair and Style  Salon and Limelite Salon and Spa. Backed by a team of professionals, strong  technical team, training academy and CavinKare’s R&D strength Trends in  Vogue has launched a wide range of innovative services delighting over 25  lakh customers every month through its 350+ salons across 50+ cities in  India. Trends in Vogue envisions the brand becoming the largest and  most-coveted chain of hair and beauty salons in India, and to be the first to  bring change in the industry through product innovations, customer-centric  service delivery mechanisms, and gratifying the ever-changing needs of the  customer.  Green Trends Unisex Hair & Style salon is the most preferred styling  destination delivering superior styling to every customer by expert stylists  and beauticians , using world-class products and industry-best techniques.  In addition to the pocket-friendly pricing, the personalized service, friendly  staff and the widest range of hair & beauty services is guaranteed to deliver a  salon experience like no other.  Limelite Salon and Spa caters to the premium segment with its best-in-class  infrastructure, international ambience and best-in-class service. 

 

 

 

               ABOUT GREEN TRENDS:    Vision : “we shall achieve growth by continuously offering unique  products and services that would give customers utmost satisfaction and  thereby, be a role model”  Owned by Trends in Vogue Pvt.Ltd., a Cavinkare group company.  Cavinkare is leading FMCG company with a turnover 1200 crores .  Outlets across India includes states like Tamil Nadu, Bangalore, Andhra  Pradesh, Telangana, Kerala, Kolkata, Odisha, Delhi and Pondicherry.  The staff Green Trends are chosen from amongst the best performing  students at Trends Academy- a- professional training unit of trends in vogue.  Backed by a decade of experience in organized salon retailing, Green  Trends has put in place management procedures and operational guidelines  that suit Indian customer and market trends.    Green  Trends  offers  trendy  haircuts  and  color  services,  complete  skin  care  solutions  and  bridal  packages,  at  affordable  rates.  Equipped  with  the  knowledge  on  a  wide  variety  of  professional  hair  &  skin  care  products,  our  well  trained  professional  stylists  provide  friendly  service.  Conveniently  close,  we're  located  right  in  your  neighbourhood.  You  can  also  find  your  favourite 

world  class  hair  care  brands,  like  L'Oréal,  Matrix,  Wella,  Schwarzkopf  and  many more at Green Trends.  ABOUT LIMELITE:    Limelite’s mantra - ‘Feel like a star’ – is about absolute pampering by experts  who put your needs above everything else. For those who want only the best,  Limelite offers its expertise in high fashion hair-cuts, makeovers and, luxury  spa and salon experiences.    Celebrities, socialites and trend seekers all come back for the Limelite  experience which puts customer satisfaction at the heart of the services  offered.  Limelite is part of CavinKare group. The brand has built a reputation for itself  as a unisex salon model where people can transform not just the way they  look but the way they feel.    SWOT Analysis of Trends in vogue :    Strength :  ● Strong customer relationship management  ● People are conscious about how they look  ● Well trained team  ● Good knowledge about hair and professional products     Weakness :  ● Lack of good stylist  ● Lack of innovation    Opportunity :  ● Evolving trends and style  ● More innovative professional products are being introduced  ● Introducing new cuts and techniques 

  Threat :  ● Competitors  ● Non involvement of SSP  ● Lack of CRM    Franchising :  The Entrepreneurial Walk  A brainchild of the renowned conglomerate, CavinKare Pvt Ltd, Trends in  Vogue was set afloat to handle the retail salon space. A pilot study of various  orientation and needs of the product and services business led R.  Gopalakrishnan - Business Head, to come up with an initial setup, a men’s  salon under the name ‘Greenie’ in 2000. The success recorded by the channel  triggered the brand to establish its first ‘Family Salon ‘in 2002. Since then it’s  been a journey to reckon with, and post a decade in the beauty business, the  brand rechristened itself as “Green Trends Unisex Hair & Style Salon” in 2010  to cater to the growing needs of its customers and operational expertise.  Though the plan was always on a salon chain model, it was only in 2011-12  that expansions took place; opening up to franchising the approach received  an overwhelming response with the brand, currently, housing 350+ salons of  which, 220+ are franchise owned.  The Stumble Blocks  The major challenges faced were a deficit in skilled manpower, low  concentration of training institutes and real estate upheaval. The brand  counterfeited the above by imparting regular training sessions to their staff  across India, upgrading them in current beauty and styling trends at par with  international standards. The brand took an extra step, working with colleges  to enhance the quality of beauty education. This apart, the brand associated 

with various Academies, government bodies and NGOs to extend Skin and  Hair Certification Courses to salon service providers.    The Defining Factors  Green Trends caters to the needs of over three lakh customers each month via  its centres spread across 55 cities. Offering a wide range of innovative  services, the brand delivers current styling trends using best-in-class  products at prices 25-20% lower than premium salons in an equally good  ambience. The courteous staff and their dedication to abide by company  values, striving towards customer satisfaction, are applauded.  A Moment of Reckoning  While the brand has several memories itched fresh in its scrapbook, the most  special remains the launch of its 100th centre, a major feat since its  inception. The salon chain went ahead to be the industry firsts to produce a  TV commercial besides providing Employee Welfare benefits (PF, ESI and  medical claim) to its employees. Associations with industry experts like  Blossom Kochhar, Mary Ann, Jawed Habib, Marvie Ann Beck etc and the  success of its employees at organizations and brands such as CMO Council  Asia, NDTV, Franchise India, L’Oreal, NSIC ICRA and CRISIL Rating are  milestones the brand stands proud of.    Course of Expansion:   For the financial year 2017-18, Green Trends has plans to launch new  services and products besides expanding 75 salons through COCO-FOFO  ((Franchise Owned franchise Operated). “As a corporate we provide  360-degree support to our Franchise Partners, offering a foolproof business 

model with assured business opportunity. We also work towards helping them  have an operational break even within six months of starting the business,”  asserts Gopalakrishnan.    Green Trends signature services :    Oxygen Facial:  A popular choice of skin care regime with international celebrities, green  trends brings the concept of Oxygen Skin Care across its salons. The  invigorating facial works by delivering oxygen to the skin cells that leaves your  skin glowing and younger looking. The delivery of Oxygen not only promotes  the overall well being of the skin but also offers solutions to specific skin  problems such as dehydration, hyper-pigmentation and premature ageing.    2-Step Safe Straightening  Catering to a predominantly widespread customer worry against the damage  that that could accompany Hair Straightening, green trends unique 2-STEP  SAFE  STRAIGHTENING  PROCESS  which  provides a two-fold benefit for the  customer.  Combining  pre-straightening  damage  protection  and  a  post-straightening  nourishment  process,  the  2-step  safe  straightening  protects  and  nourishes  your  hair  before  and  after  straightening,  leaving  it  healthy, shiny and silky smooth like never before.  Crystal Crush Manicure & Pedicure  A  range  of  aromatic  manicure  and  pedicure  services  comes  in  4  potent  flavours  of  Rose,  Aloe  Vera,  Chocolate  and  Strawberry.  Its a 6 step intense  procedure infusing your hands and feet with the natural goodness of each of  its  core  ingredients.  The  highlight  of  this  experience  is  the  crystal  soak  which  in  water  turns  into  a  gelatinous  foot  bath  creating  a  stimulating  sensory experience like no other. 

      THE GREEN TRENDS PROMISE  Green  trends  follows  a  3-fold  approach  to  ensure  customers  have  100%  customer satisfaction.  1.​Consult  Green  trends  team  of  certified  professionals  understand  each  customers  unique  and  specific  hair/skin/body  needs  and  personal  requirements  in  detail to recommend a service that perfect for them.  2. ​Deliver  The  stringent  training,  industry  class  standard  operating  procedures  and  the  products  used  of  international  repute,  ensure  that  the  service  is  delivered with absolute precision for the desired result.  3. ​Care  Green  trends  cares  not just about the outcome of the service itself but also  on  the  long-lasting  results  and  long-term  benefits  to  the  customer.  Their  wide  range  of  post-care  products  will  ensure  that  ones  skin/body/hair  are  continually taken care of.    FRANCHISING :  Green Trends Franchise  ‘Look Stylish and Feel Good’  The  beauty  and  grooming  industry  is  expanding with tremendous potential  for  the  growth  in  India.  Green  Trends  owing  to  the  growing  desire  among 

both  men  and  women  to  look  stylish  and  feel  good.  Green  Trends  Salon  franchise  business  opportunity  is  a  profitable  and  rewarding  option  for  entrepreneurs  looking  for  a  retail-based  service  franchise  opportunity.  In  this  article,  we  look  at  the  procedure  for starting a Green Trends franchise  in detail.     GREEN TRENDS IS KNOWN FOR :  A  chain  of  high-end styling and spa services offered in a stylish and serene  environment. Green Trends is known for:  ● ● ● ● ● ●

Highly Professional and Affordable services  Friendly and courteous staff  Consistent customer delight  Constant product and service innovations  Latest styling  Clean & Hygienic ambiance 

Space Requirements  Prime  commercial  area  and  residential  area  with  high  visibility  are  preferable  to  establish  a  Green  Trends  Franchise  outlet.  The  ground  floor  must  be  with  the  car  parking  facility  in  a  prime  location.  The  minimum  carpet  area  required  would  be  1200-1400  sq.ft  and  the  minimum  frontage  should be 15 ft. to 20 ft.      Investment Details 

Aspiring  entrepreneurs  are  required  to  invest  the  below-mentioned  sum  in  launching a Green Trends franchise.  Fee 

Green Trends Parlour 

Franchise Fee 

Rs. 6 Lakhs 

Architect Fees 

Rs. 0.60 Lakhs 

Investment in Interiors 

Rs. 20 Lakhs 

Investment  in  Equipment  /  Rs. 4 Lakhs  Furniture  Visual Merchandising 

Rs. 1 Lakhs 

Pre-operative  Expenses-Brokerage,  Rs. 1 Lakhs  Marketing Expenses  Royalty fees 

15% of the Net sale 

Return Of Investment 

Estimated ROI is 36% per year 

Others–Generator  Computer, Linen,  Rs. 6 Lakhs  stationary, Uniform and Gadgets  Total Capital Investment 

Rs. 40-45 Lakhs 

    Agreement and Term Details  A standard franchise agreement which contains the contract for the  specified term period of five years from the date of the contract signed. One  can also renew the franchise once the agreement period is terminated.  Locales of Operation  Green Trends has enlisted the locations for the franchise all over the  country, with more than 400 salons spread across 55 cites in Tamil Nadu,  Karnataka, Andhra Pradesh, Telangana, West Bengal, Odisha, Kerala,  Puducherry, Delhi & Lucknow.  Franchisee Profile  To emerge with Green Trends, the candidates must meet the following  criteria listed below:  ● ● ● ● ● ● ● ●

     

Passion to be a successful entrepreneur  Honesty and Integrity  Willingness to work in a systematic and structured environment  Involvement in operating the business  Investment  Interpersonal skills to manage staff and customers  Passion for Business Development Result Orientation  Networking 

Making a Proposal  The interested party may take their interest forward by visiting the official  website of the establishment and submitting the required details in the  space provided at the bottom of the page. The details to be offered include  the name of the applicant, his/her mobile number, e-mail address, state of  residence, current city, the affordable range of investment, and other details  (optional). Post submission of these particulars, the entity will contact the  applicant for further proceedings.  TRAINING AND DEVELOPMENT :    Training isn’t just important to any company, it is vital.    Although there are many categories of training such as management  training and or sales training, employees with Project Management  skills are an important asset to any organisation.      But what does training and development, mean to your organisation?    Training presents a prime opportunity to expand the knowledge base of  all employees, but many employers in the current climate find  development opportunities expensive. Employees attending training  sessions also miss out on work time which may delay the completion of  projects. However despite these potential drawbacks, training and  development provides both the individual and organisations as a whole  with benefits that make the cost and time a worthwhile investment.  The return on investment from training and development of employees  is really a no brainer.     

So what are the benefits?    Improved employee performance – the employee who receives the necessary  training is more able to perform in their job. The training will give the  employee a greater understanding of their responsibilities within their role,  and in turn build their confidence. This confidence will enhance their overall  performance and this can only benefit the company. Employees who are  competent and on top of changing industry standards help your company  hold a position as a leader and strong competitor within the industry.    Improved employee satisfaction and morale – the investment in training that  a company makes shows employees that they are valued. The training  creates a supportive workplace. Employees may gain access to training they  wouldn’t have otherwise known about or sought out themselves. Employees  who feel appreciated and challenged through training opportunities may feel  more satisfaction toward their jobs.    Addressing weaknesses – Most employees will have some weaknesses in  their workplace skills. A training program allows you to strengthen those  skills that each employee needs to improve. A development program brings  all employees to a higher level so they all have similar skills and knowledge.  This helps reduce any weak links within the company who rely heavily on  others to complete basic work tasks. Providing the necessary training  creates an overall knowledgeable staff with employees who can take over for  one another as needed, work on teams or work independently without  constant help and supervision from others.    Consistency – A robust training and development program ensures that  employees have a consistent experience and background knowledge. The  consistency is particularly relevant for the company’s basic policies and  procedures. All employees need to be aware of the expectations and 

procedures within the company. Increased efficiencies in processes results  in financial gain for the company.    Increased productivity and adherence to quality standards – Productivity  usually increases when a company implements training courses. Increased  efficiency in processes will ensure project success which in turn will improve  the company turnover and potential market share.    Increased innovation in new strategies and products – Ongoing training and  upskilling of the workforce can encourage creativity. New ideas can be  formed as a direct result of training and development.    Reduced employee turnover – staff are more likely to feel valued if they are  invested in and therefore, less likely to change employers. Training and  development is seen as an additional company benefit. Recruitment costs  therefore go down due to staff retention.    Enhances company reputation and profile – Having a strong and successful  training strategy helps to develop your employer brand and make your  company a prime consideration for graduates and mid-career changes.  Training also makes a company more attractive to potential new recruits  who seek to improve their skills and the opportunities associated with those  new skills.  Training can be of any kind relevant to the work or responsibilities of the  individual, and can be delivered by any appropriate method.    For example, it could include:  ● On-the-job learning  ● Mentoring schemes  ● In-house training  ● Individual study 

    Blended learning is becoming more and more popular and as a company we  have seen a definite increase in this method of training over the last year.  Blended Learning is the effective combination of online learning and  classroom learning. Many of 20|20’s clients prefer their staff to learn on-site  rather than attend off-site training programmes – especially in industries  like oil and gas where it is often very impractical to attend off-site courses.  On-site learning programmes like the blended learning approach, allow  20|20 to train more people working across a larger international footprint  than just the UK. This makes it much more cost-effective and allows for  greater process consistency.    The importance of training your employees – both new and experienced –  really cannot be overemphasized.    Training Details  The company offers unparalleled support to their franchise to establish their  business. The support system that includes,  ● ● ● ● ● ● ●

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Induction & Training  Proper help and guidance in site selection  In finalising architect and layout of the outlet  Advice is the recruitment of staffs and training them  Pre-launch promotions  Staff Assessment & appraisal process  Software and hardware support by providing the point of sale software  and business information system  Vendor management  A quality tracking system  Guidance in legal & Statutory requirements 

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Other advice in establishing the business. 

  TRAINING AND DEVELOPMENT IN CAVINKARE:  Roles and Responsibilities:  ● ● ● ● ●

Providing training for employees  Feedback Analysis  Retail Management development programs  Employee Engagement activities  Policy Deployment 

PROVIDING TRAINING FOR EMPLOYEES:  Training constitutes a basic concept in human resource development. It is  concerned with developing a particular skill to a desired standard by  instruction and practice. Training is a highly useful tool that can bring an  employee into a position where they can do their job correctly, effectively,  and conscientiously. Training is the act of increasing the knowledge and  skill of an employee for doing a particular job.    Need for Training:  Every organization should provide training to all the employees irrespective  of their qualifications and skills.  Specifically the need for training arises because of following reasons:  1. Environmental changes:  ADVERTISEMENTS:  Mechanization, computerization, and automation have resulted in many  changes that require trained staff possessing enough skills. The organization 

should train the employees to enrich them with the latest technology and  knowledge.  2. Organizational complexity:  With modern inventions, technological upgradation, and diver​sification most  of the organizations have become very complex. This has aggravated the  problems of coordination. So, in order to cope up with the complexities,  training has become mandatory.  3. Human relations:  Every management has to maintain very good human relations, and this has  made training as one of the basic conditions to deal with human problems.  4. To match employee specifications with the job requirements and  organizational needs:  An employee’s specification may not exactly suit to the requirements of the  job and the organization, irrespective of past experience and skills. There is  always a gap between an employee’s present specifications and the  organization’s requirements. For filling this gap training is required.  5. Change in the job assignment:  Training is also necessary when the existing employee is pro​moted to the  higher level or transferred to another department. Training is also required  to equip the old employees with new techniques and technologies.  IMPORTANCE OF TRAINING :  Training of employees and managers are absolutely essential in this  changing environment. It is an important activity of HRD which helps in  improving the competency of employees. Training gives a lot of benefits to 

the employees such as improvement in efficiency and effectiveness,  development of self confidence and assists every one in self management.  The stability and progress of the organization always depends on the  training imparted to the employees. Training becomes mandatory under  each and every step of expansion and diversification. Only training can  improve the quality and reduce the wastages to the minimum. Training and  development is also very essential to adapt according to changing  environment.  FEEDBACK ANALYSIS:  Feedback analysis is used for better performance. It leads to more informed  decisions. Best Practices is feedback analysis in aggregate. It is the  conclusion from experiments across an industry.  Know the value of a customer  If you do not know the value of a customer and the value of moving them  along the customer feedback scale, be that Net Promoter, Customer Effort  Score, or others, then you have no way to prioritise your change  management efforts.  For example nib health funds know the impact of changing a customer  feedback score by one point. They know for instance that “A one point  increase in “Would Recommend” score results in a decreased of risk of  termination by 7.8%”  This information is the basis for your business cases: if you want to invest x  thousand dollars in a change to your business because it will drive up  customer loyalty, the first question management will ask is how much is  that worth to the business. 

So you need to have an answer for both (I)investment and (R)return in the  ROI calculation. Knowing the value of a customer will give you that (R).    The Trend is Your Friend  One of the things we need to be very careful about when we do any time  based analysis of customer feedback, including Net Promoter Score, is  determining what is a real change and what is probably just a statistical  aberration. This is not as simple as it might seem.  One approach that can help is to look at the longer term trend. If the score  is repeatedly going up, or down, that will increase the likelihood that the  change is real.  There are some rules of thumb you can use based on the statistics of control  charts. For example: if the score rises or decreases seven times in a row  then you have a pretty good indication that the change is real and not  statistical chance. Note that this is more than most people would guess. It  takes longer to be certain than you might expect.  If you can’t wait for a row of seven rising or falling you can do the statistics  on your data but that is often complex and for NPS even more challenging.  You can download this free tool where we have done all of the difficult maths  for NPS. Just enter the number of Promoters, Neutrals and Detractors for  each sample and it will tell you if the change is probably real. The urge to  compare data from different parts of the business or geographies or surveys  is very hard to resist but resist you should.  The chart below shows the difference between Australian and European Net  Promoter scores for a couple of different industries. If you were to compare 

your NPS in Australia against another business unit in Europe you can see  you’d be at a disadvantage; and for no good reason.      RETAIL MANAGEMENT DEVELOPMENT PROGRAMS:  Retail management means running a store where merchandise is sold and  Retail Management Information Systems include using hardware, software  and procedures to manage activities like planning, inventory control, financial  management, logistics and point of sale transactions. You can use a retail  management information system in your business to manage your store,  finances and inventory from one office.  What are the features of Retail Management Information Systems?  Retail management information systems support distributed stores by  linking them. By allowing information to be exchanged instantly, store  managers can stay in contact to more effectively control profits for the whole  company. RMIS should support product management and should also  enable a detailed analysis of customer data. It is a flexible system that  allows managers to set prices for variable time periods based on the store  location and to meet the needs of sales and inventory managers, retail  management information systems involve the use of a mobile user interface.  How do Retail Management Information Systems function?  Retail Management Information Systems support the basic functions of  procurement, storage and delivery. With a retail management information  system a manager can manage customers, inventory, suppliers and product  sales. The system also allows you to track purchase orders and update  inventory records with dynamism. Moreover, you can analyze cash, check  and credit card transactions to reconcile information and improve efficiency 

by examining overage and shortages to reveal developments that can be  remedied.         What types of Retail Management Information Systems are there?  Retail management information systems can be customized for each  industry. For example it can be customized for sports, department stores,  supermarkets, furniture, fashion, jewelry or for prescription drugs. Some  systems also support multiple languages, currencies, tax systems and cost  structures. With retail management information systems there is support for  different business models and can accommodate franchise, consignment,  direct sales or online business models.     What are the benefits of Retail Management Information Systems?  Operations are improved and costs are reduced by preventing duplicate  entries because RMIS facilitates the integration between payments,  inventory and transactions. By effectively tracking inventory, customer  requests can be dealt with faster. With expedient responses you can also  improve service, expand your customer base and increase profits. Easy  access to data allows you to identify opportunities to improve waste  reduction, recycle materials and choose environmentally friendly packaging.  These strategies pave the way for profitable business. With system  safeguards adherence to legal restrictions on pricing, promotion and other  policies are ensured. 

  What considerations do Retail Management Information Systems require?  To identify new customers and personalize their service, exploit your  databases and utilize sophisticated data mining techniques. Also avoid  overstocking by analyzing customer behavior to predict sales and the market  need. RMIS are essential for managers in a complex, dynamic global  marketplace.   EMPLOYEE ENGAGEMENT ACTIVITIES:  Engaged employees provide companies with crucial competitive advantages,  such as higher productivity, greater revenues, and lower employee turnover.  The more employees feel engaged with their companies, the more likely they  will deliver above and beyond job performance.  This report examines some of the benefits organizations gain by including  employee engagement as part of their human capital strategy. It provides  information on how increased employee engagement affects the bottom line,  how companies are managing employee engagement, and how the  responsibility for employee engagement is managed within companies.  1.

2.

Clear Role Definition -​ Engagement begins even before the employee  joins work. Carving out a clear job description will actively engage a  potential hire and help convert him/her into an enthusiastic joiner  and then engaged employee.  Paint the Larger Picture -​ During the peak of hiring activity, my  team and I were given a tough time about new joiner renege and  attrition of existing employees. Most of the time, we oscillated between  bearing the brunt and/or retaliating by throwing our hands up,  buying time or throwing industry data points as reference but never  did we understand the true impact till one of the business leads sat us 

down and connected the dots for us and articulated the $(dollar)  impact of each of our activity. That day, we graduated to truly  becoming business partners.  3.

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Job Rotation -​ The grass on the other side is always greener. While  the revenue generating/client facing entities believe that the support  staff (like admin, human resources, finance) has a cushy job, the  support staff often complains of a vendor like treatment at the hands  of the former. An employee can contribute his best if he/she can see  how his/her role ties in with the larger organization goals or explore  linkages of his/her role with other teams in the organization. For this  purpose, tools such as job-rotation, multi team projects, best practice  sharing by teams can be leveraged effectively by organizations. Such  interactions help create an informal and seamless source of  information across teams which helps employees to perform effectively  and efficiently.  Goal Setting -​ A realistic and time bound goal that clearly mentions  linkage to the organization goal is an important aspect in building an  engaged workforce. This will be dealt with in greater depth in the  following chapter which deals with Performance Management as a  driver of engagement.  Job Loading -​ Organizations can effectively use both ‘vertical-loading’  i.e. job enrichment and ‘horizontal-loading’ i.e. job enlargement to  motivate employees. Both these approaches allow an employee to  explore and use their strengths and also beat work monotony. These  also help skill development and enhancement which in turn helps  employee output, team output and eventually organization output. 

POLICY DEPLOYMENT:    Hoshin Kanri (also called Policy Deployment) is a method for ensuring that  the strategic goals of a company drive progress and action at every level  within that company. This eliminates the waste that comes from  inconsistent direction and poor communication.  Hoshin Kanri strives to get every employee pulling in the same direction at  the same time. It achieves this by aligning the goals of the company  (Strategy) with the plans of middle management (Tactics) and the work  performed by all employees (Operations).  IMPLEMENTING HOSHIN KANRI  One way to understand Hoshin Kanri is to walk through a typical set of  implementation steps.  Step One – Create a Strategic Plan  Hoshin Kanri starts with a strategic plan (e.g. an annual plan) that is developed  by top management to further the long range goals of the company. This plan  should be carefully crafted to address a small number of critical issues. Key  items to consider when developing the strategic plan are:  Focus on Five  Focus on five goals (or less). The mere act of writing down goals can create a  (false) feeling of progress – and more goals feels like more progress. In reality, a  goal only expresses intent. Taking action is the hard part. Every company has  finite resources and energy…and a limited attention span. Focusing on a small  number of goals makes success far more likely than dissipating energy across  dozens of goals. Or looking at it another way…if everything is important; nothing  is important.  Effectiveness First 

There is a well-known distinction between efficiency and effectiveness: efficiency  is doing things right while effectiveness is doing the right things. Strategic goals  need to be effective – doing the right things to take the company to the next  level. If a goal doesn’t have that kind of broad impact it’s probably not strategic.  Evolution vs. Revolution  Goals can be evolutionary (incremental goals usually achieved through  continuous improvement) or revolutionary (breakthrough changes with dramatic  scope). Both are legitimate and important forms of improvement.  Top Down Consensus  Top management is responsible for developing the strategic plan – it’s one of  their most important responsibilities. But taking the time to consult with middle  management serves two useful purposes:  ●

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It provides additional perspective and feedback that helps craft stronger,  more informed strategies  It creates a sense of shared responsibility for the plan and significantly  more buy-in from middle management 

Careful KPIs  Key Performance Indicators (KPIs) provide the means for tracking progress  towards goals. They also have a considerable ability to drive behavior. So choose  KPIs with care. It is essential to think through whether the selected KPIs will  drive the desired behavior without unintended side effects. For example, more  than one company has found that a single-minded pursuit of efficiency can lead  to unintended consequences such as excess inventory (larger batches means  less changeovers) and reduced quality (a subtle “fix it later” pressure creeps in  to keep lines running).  Own the Goal  Every goal should have an owner – a facilitator and coach who has the skills  and authority to successfully see the goal through to conclusion. 

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As a facilitator, the goal owner will remove roadblocks and smooth the  path to progress  As a coach, the goal owner will track progress and intercede if things get  off track 

Step Two – Develop Tactics  At a departmental level, mid-level managers develop tactics that will best  achieve the goals as laid out by top management. One of the most important  aspects of this process is “catchball”…a back and forth exchange with top  management to ensure that the strategy and goals are well understood, that  there is strong alignment between strategy and tactics, and that the KPIs are  meaningful and appropriate.  Tactics may change throughout the course of fulfilling the strategy; flexibility  and adaptability are important characteristics of the process. As a result it is  helpful to have regular progress reviews (e.g. monthly), at which time results are  evaluated and tactics are recalibrated.  Step Three – Take Action  At the plant floor level, supervisors and team leaders work out the operational  details to implement the tactics as laid out by mid-level managers. Once again,  the principle of catchball applies, to ensure that activities at the plant floor (and  other areas of the company) are strongly aligned with tactics and strategy.  This is the level where goals and plans are transformed into results. This is  Gemba (the place where real action occurs). Therefore, managers should stay  closely connected to activity at this level (e.g. regularly practicing “management  by wandering around”).  Step Four – Review and Adjust  So far the steps have focused on cascading strategic goals down through levels  of the company; from top management all the way down to the plant floor.  Equally important is the flow of information in the other direction – information 

about progress and results. It is this second flow that creates a closed loop  system – enabling control and adjustment of the entire process.  Progress should be tracked continuously and reviewed formally on a regular  basis (e.g. monthly). These progress checkpoints provide an opportunity for  adjustment of tactics and their associated operational details.  ADDITIONAL CONSIDERATIONS  It’s for Everyone  Hoshin Kanri is not as well-known or “popular” as some of the other lean tools –  but it is an extremely valuable tool. Although it fits most naturally within a  well-developed lean culture, where continuous improvement is firmly ingrained  at all levels of a company, virtually any organization can benefit from its core  principles:  ● ● ●

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Visionary strategic planning (focusing on the things that really matter)  Catchball (building workable plans through consensus)  Measuring progress (carefully selecting KPIs that will drive the desired  behavior)  Closing the loop (using regular follow-up to keep progress on track) 

Benefits of a Flat Management Structure  It should be pretty obvious that a flattened management structure is beneficial  to Hoshin Kanri. The fewer levels there are, the easier it is to cascade goals  down and the fewer opportunities there are for strategy to be diminished  through successive layers of translation. Fewer layers also means faster decision  making.  Some very large organizations have flat management structures. One of the best  known is Nucor Steel, which has approximately 12,000 employees and only four  layers of management between the CEO and line-level employees. In fact, a  common joke is you can go from Janitor to CEO at Nucor with only five 

promotions. In contrast, a typical Fortune 500 company has 8 to 10 layers of  management.  Create a Shared Vision  People perform best when they have a purpose. When they understand not just  what to do – but why it’s important. One of the benefits of Hoshin Kanri is that  it can help to create that purpose; providing focus and drive towards specific  and important goals.  So, it’s worth putting some effort into creating a shared vision of the strategic  plan (the future state; the destination) and associated tactics (the path to get  there). Make sure as many employees as possible are given an opportunity to  understand why the strategic goals are important and how the tactics and  operational details support those goals.  CORPORATE SOCIAL RESPONSIBILITY:  To recognize and reward the  achievements of differently abled people  The awards have been organized for the past 16 years in succession  CavinKare Ability Awards  We believe in the saying “be the change you want to see in the world” and we  are changing for the betterment of our human society. At CavinKare, as  part of our Corporate Social Responsibility (CSR) initiatives, we are closely  associated with Ability Foundation, an NGO that works toward promoting  and supporting the empowerment, betterment, and rights of the  differently-abled people.  For the first time in the history of Indian awards, we launched the  CavinKare Ability Awards to recognize and reward the differently-abled  people who have always been shunning backward. The time has come to 

recognize and appreciate them for helping them rise and exhibit to the world  that they are no lesser than others. Since the past 16 years, the awards and  recognition are being handed over to the right ones honoring their  achievements. The awards have grown in stature and recognition.  CavinKare Ability Awards have sparked a fire of achievement in the hearts of  these differently abled individuals showing them the path to exhibit their  excellence fight all odds and prove to the world that they can do beyond  what they can.  It has helped the differently abled people to take up challenges and move  ahead in life helping them realize that nothing can deter them when they  can make it happen.    CavinKare Ability Award for Eminence  It is a single award, comprising a memento, a citation and a cash prize of  Rs.2 Lakhs, awarded in recognition of exemplary achievement and service to  a person with disability.  It is awarded to an achiever, who has demonstrated a commitment and  service to others beyond his/her individual personal achievements in a  particular area.  CavinKare Ability Award for Mastery  Three entitlements, comprising of a memento, a citation and cash prize of  Rs.1 Lakh are awarded in recognition of exemplary achievement to three  people with disability who have set a high standard for themselves and gone  on to achieve it. This is awarded to people who are a source of inspiration to  a whole generation in need of motivation.   

Champions of Rural Markets Award  CavinKare has been awarded with Champions of Rural Markets Award at  the recently conducted prestigious 6th Edition of The Economic Times Rural  Strategy Summit 2018. 

Over the years, CavinKare has been felicitated for excellence in various  fields. Here is an elaborate list of all the awards presented to CavinKare  2018:  ●

Recipient of Zee Business channel as part of the Dare to Dream  Awards powered by SAP. 

2014:  ●

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CavinKare won the "Global Awards for Excellence in Quality  Management and Leadership" in World Quality Congress for  "Excellence in Quality Planning, Process and Systems"  CavinKare received Employer Branding Award for Talent Management  by Employer Branding Institute under the auspices of World HRD  Congress. 

2012:  ●

At the 'India Human Capital Awards 2012', held in Hyderabad on  December 7, 2012, CavinKare won the award under the Category  'Outstanding Contributions of Human Resources to Organizational  Development.' This was organized by the Employer Branding Institute.  The core objective of these awards is the benchmarking of talent and  HR practices. 

  2011:  ●

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CavinKare was ranked the '23rd Best Employer Brand' in the country  by the World HRD Congress.  CavinKare won the award for 'Innovation in Recruitment' at the 2nd  Asia's Best Employer Brand Awards, 2011 held at Suntec Singapore.  CavinKare was conferred with the 'Best HR Strategy in Line With  Business' award from the renowned HR forum, World HRD Congress. 

  2010  ●

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CavinKare was featured in the list of top 100 best employers in the  Asia Pacific region.  Brand Meera won the 'Abby Award' (Bronze) at the Goa fest media  innovation.  Brand Chik won the bronze medal for 'Khwaish Puri Karo' activation  organized by the Advertising Club, Bangalore.  CavinKare won the 'Worldstar Award' for Spinz Talcum Powder pack.  CavinKare won the 'Indiastar 2010' and the 'National Awards for  Excellence in Packaging' for Fairever Anti Ageing Cream and Spinz  Talcum Powder.  CavinKare won the 'Excellence in HR through Technology Award' and  the 'Best Talent Management Practices Award' at the regional level. At  the national level, the 'Excellence in HR through Technology Award'  was presented to CavinKare at the Employer Branding Awards  conducted by the World HRD Congress.  CavinKare Accounts and Finance team has won the CII award for total  cost management maturity model (Level 3).  CavinKare received commendation for a strong commitment towards  excellence in human resource from the Confederation of Indian  Industry in the 'National CII HR Excellence Awards.' 

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        2009  ●

CavinKare won the 'IIMM-Tecpro SCM Award', 2010 for Supply Chain  Performance Excellence (corporate category) awarded by the Indian  Institute of Materials Management, Chennai.  CavinKare's quality circle team at the Haridwar factory won the  runners up award in the 'National Quality Circle Finals' at the  National Quality Circle contest organized by the Confederation of  Indian Industry. 

CavinKare was ranked 10th, all over India, in the category 'Excellence  in HR Through Technology' at the Employer Branding Awards  conducted by the World HRD Congress. 

2008  ●

CavinKare was honoured with the 'Corporate Social Responsibility  Award' by the Rotary Club of Chennai. 

2004  ● Economic Times ranked Chik Shampoo in their list of ‘Top 100 Brands in India.’ 

2003 ● Chik Shampoo won the ‘AAA Award’ bestowed by the Advertisement Association of Chennai.

REFERENCES: ● https://cavinkare.com ● https://timesofindia.indiatimes.com/life-style/fashion/style-guide/green-tr ends-bags-the-best-salon-chain-south-2018/articleshow/65177050.cms ● http://www.theweekendleader.com/Success/2685/the-giant-killer.html