Tci Packaging

1. OVERVIEW OF THE CASE

TCI Packaging Division case basically describes a situation faced by individual manager or by an organization at the strategic, functional or operational level in a global environment to cope up with the changing needs of the market. Products may be marketed worldwide without significant changes, but most companies will find that global success depends on willingness to adapt to local market requirements. To be successful in global markets, companies often need to be flexible in product offerings. Companies that overcome these international markets requirements can have global success which increases their profits and lead to more secure market positions both domestically and globally.

2. CASE FACTS

2.1 TCI and its Growth

TCI was established in 1910 as a cigarette manufacturing and marketing organization. TCI is now more than eight decades later, a 1.5 billion dollar enterprise and a multi-product, multi-technology, and multi-market group. TCI is one of the most diversified and professionally managed business houses in India and has investments in seven main businesses. These are tobacco, cigarettes, packaging and printing, hotels, seeds and edible oils, paper and board, financial services, and international trading. It has a distribution network that encompasses the entire sub-continent. The annual report for the year ending 1992-93 showed that the company had earned a profit after tax of Rs 155 crore from a gross income of Rs 3810 crore.

2.2 TCI’s Packaging and Printing Division

TCI's Packaging and Printing Division [PPD] is presently India's largest manufacturer of value added folded cartons. It meets not only the packaging needs of the cigarette division wide range of brand leaders in domestic and export markets covering industries like liquor, foods, detergents, personal products and matches. PPD's facilities have been upgraded with new computer-controlled machinery to meet international standards. PPD had technical...