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Wednesday, June 15, 2011

KEMWELL International Pvt. Ltd.

COMPANY PROFILE
KEMWELL International Limited :
Steels Worth International Pvt. Ltd. took birth in 1980 & was into manufacturing balloons. After 9 years, the company decided to enter into the glove business & renamed itself as KEMWELL International Pvt. Ltd. After 2 more years, manufacturing of surgical gloves commenced. In 1994 KEMWELL converted into public Ltd. Company. It installed 3 additional dipping lines in 1995 by floating 7,65,000 shares worth Rs. 45.9 millions.

In the year 1998, the company underwent a massive change by combining forces with Ansell Ltd, a huge Australian based business conglomerate established in the field of barrier protection products investing in 75% of the company’s shares & thus becoming the major share holder in this joint venture. In 1999, a capital expenditure of US $ 860k was invested to upgrade the manufacturing facilities – the 1st dip line. KIL a 100% - Export Oriented unit has also venture into domestic sales by joining hands with JK Ansell in the year 2000.

The business processes comprises of executing the customer specific order by utilizing the state-of-the-art production facility to maximum & dispatch of goods with highest standard of quality & maintaining strict delivery schedules without any delay as per the customer specifications & require team holding the reins of the company & driving it to new heights.

KEMWELL International Ltd – Today :
KIL is located at a sprawling 5.07 acres in Peenya Industrial area, Bangalore with a capital investment of Rs.30 Millions & a team of 395 employees. The production facility spins out 2,200 pairs of high quality gloves per day. The company has full fledged chemical laboratory, well-equipped microbiological laboratory & other state – of – the – art manufacturing facility capable of producing 144 Million pieces of gloves.

Product Profile :
KIL deals in the manufacturing of latex gloves, initially it started manufacturing examination gloves. But, factors like low demand & low prices have resulted in scraping its further production of examination gloves. The company has restored to product featuring & production of synthetic gloves that has a vibrant market with the same dip line. The 2 types of gloves manufactured in KIL are:

Surgical gloves (pre - powdered).
Nitrile gloves.

Features of the Product :
Made from high quality natural rubber latex.
Anatomical shape.
Beaded cuff for secure fit.
Easy wear ability for maximum comfort & sensitivity.
Micro- rough surface in palm area.
Tear resistant.
Pre-powdered with absorbable dusting powder(USP).
Protein content with in ASTN recommended limits.
Free from allergy including chemicals.
Tested for dermal irritation & sensitization by consumer product testing company, USA.
Compliance with ASTM – D 3577 & EN 455 standards.
510 k pre-market clearances from US FDA.
Packed in dramatically sealed & easily peel open or cut open pouches.

Competitors :
KEMWELL enjoys privilege of being a part of the world class health care MNC. A sell has 36% of market share & it is way above the competitors. However, companies like Baxter International Ltd, London rubber company & safe skin corporation are competing for the coveted position of being the Global leader in the glove industry. Domestically too, Kanam Latex Pvt. Ltd of Cochin is proving to be a contender to watch out for in future.

Market / Sales :
KIL is presently making its presence felt in the overseas market with 100 % exports. It has been able to penetrate into the vibrant markets of Netherlands, US, Africa, Italy, UK, Middle East, South America, France.

The Vision :
To be known as the world’s leading manufacturer of barrier protection products for occupational, professional and consumer healthcare markets.

To make the company the No. 1 source for high quality, yet not-so-expensive, medical gloves that is affordable by one and all at all ports of the world.

The Mission :
ANSELL global operations will produce and source world class barrier protection products, which will always.

Be meeting all expected customer value elements.
Be compliant to all global quality and regulatory standards.
Be most competitive at a maximum value for money.
Be delivered on time and in the quantity required.
Be known as the best solution available for barrier protection.

The Driving Strategies :
Focus on quality.
Institutionalize operational effectiveness (six sigma).
Maximize utilization of invested capital (ROA)
Capitalized on opportunities and cost structure.
Intelligent ‘make or buy’ decisions.
Invert in and develop people.

Quality Policy :
KEMWELL INTERNATIONAL LTD.,
being a 100%-EOU stands by the word quality. The quality policy of the company is :

To safely manufacture & supply quality barrier devices at competitive price which meet the customer expectations & comply with the applicable product standards.

In order to ensure consistent good quality & their by to ensure customer satisfaction, the company shall operate under a dynamic quality management system characterized by continual improvement & complying with the requirements of ISO 9001:2000, EN 46001 & ISO 13485.

In addition for manufacturing & supply of medical devices, the company shall comply with the requirements of EU medical directive 93/42/EEC & US 21 CFR part 820 (quality system regulations).

Strengths :
The company already has a strong market position of 36 per as compared to its competitors who jointly hold the rest of the share.
The produce of K/L is considered as world-class quality product adhering the to the world quality standard.
The company strives to maintain highest quality at all levels of operation.
The company has managed to curve a nine around the world with strong brand reputation.
Implementation of six-sigma strategy for improved operational efficiency.
Embarking upon “plan-do-check-act” (PDCA) process, approach for effectiveness in quality management system.
Excellent co-ordination between parent and sister concerns unifying the companies world operations.
Management review group-to-reviews opportunities for improvement and the need for changes is the driving force of the company making vital decisions that includes intelligent “make or buy” company’s profits.
The company sources on the customer requirement as such has been maintaining a 95 percent customer satisfaction level which is a fact by itself.
In spite 8 heavy competition the company has been performing well in terms of healthy balance sheet
Improved cash generation good economies of foals and reduced cost of production.
The company has been successful in cutting all its overheads to minimum by following effective cost reduction at all process level.
The company takes pride in its team and able and efficient employees.

Weakness :
The trend and the future of gloves industry is shifting where the surgeons world over are switching from prepowdered to powder free gloves safety for reasons concerning high levels of health consciousness in the wake of health hazards such as AIDS, But KIL has not made any suitable changes and is still manufacturing pre-powdered gloves.

The company produces gloves that is thicker in the finger tips whereas the surgeons world over prefer gloves that have then ginger to enhance sensitivity. This feature has been over looked. In fact, the company sadly lucks product extensions that would not only offset new competition but also cater to the new needs of the market.

Opportunities :
Growth :
The growth of the gloves industry is assessed as long as the need to wear gloves as a “protective barrier protection” remains, with an increasing population. The increasing wealth and nations and even-higher levels of health consciousness. The demand for gloves is bound to grow. KIL can capitalize by utilizing the ni-fi existing manufacturing faculty and also by the max utilization of the other Invested capital.

Automation :
Automation refers the technique of operation or controlling a productive process by electronic devices, reducing human efforts to the minimum. It remains the single most effective method of gaining a cutting edge in the competitive world. In glove manufacturing the recent innovations such as automatic stripping, online, chlorination process, automatic stamping have proved to be cost and time effective. This cereal lead to minimizing. The cost of production and ace the problem of price was head on.

Effective Strategy :
The company has to implement strategies to maintain its status qwo and to sustain growth. The company already boasts of good market share therefore the need of the have to capitalize opportunity through intensive feasible strategy.

Threats :
Emergence of new players and increasing competition.
Undercutting of prices by manufacturing and price was has resulted in low prices.
Increasing costs of procurements of raw materials especially latex.
The need to produce gloves with ‘zero’ protein level due to role in the allergy levels for sensitive skin.
The growing pressure to make technological breakthrough in terms of better products feature than the existing in the wake of health plagues such as AIDS.
The regulatory bodies creating more stringent regulation is terms of quality these creating market entry barriers.

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