c c ACKNOWLEDGEMENT There are number of people to acknowledge and thank for their contributions to this Project. Here is a consideration of all those esteemed people who provided not only their valuable time but also their views and transferred their knowledge and experiences, which further enhanced the project and made it more than what it would have been. I offer my special thanks to SHREE CEMENT LIMITED, Mr Gopal Tripathi , Mr Nemichand Jain (Financial Officer), Mr S R Singhi(HR) and for all his educative guidance and more support that they have provided during the preparation of the project. I would also like to thank my Mentor Prof Lakshman who provided his valuable guidance, which has helped me in enhancing the quality of the project report and also to deans for arranging organization study for all students. Also, please accept sincere apologies along with a thank you who have contributed but their names have not been included. Thank You… MATS INSTITUTE OF MANAGMENT Page 1
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ACKNOWLEDGEMENT
There are number of people to acknowledge and thank for their contributions to this
Project. Here is a consideration of all those esteemed people who provided not only their
valuable time but also their views and transferred their knowledge and experiences, which
further enhanced the project and made it more than what it would have been.
I offer my special thanks to SHREE CEMENT LIMITED, Mr Gopal Tripathi , Mr
Nemichand Jain (Financial Officer), Mr S R Singhi(HR) and for all his educative guidance
and more support that they have provided during the preparation of the project. I would also
like to thank my Mentor Prof Lakshman who provided his valuable guidance, which has
helped me in enhancing the quality of the project report and also to deans for arranging
organization study for all students.
Also, please accept sincere apologies along with a thank you who have contributed
but their names have not been included.
Thank You…
Yours faithfully,
Nitin Moyal
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DECLARATION
I hereby declare that this project has been prepared by me during the period 30th Oct to 8th Nov under the guidance of Prof. Lakshman MATS School of Business & IT, Bangalore I further declare that this project report is prepared from the information collected from the company, the sources available from the Company and the same is purely for academic purpose. This project has not formed the basis for the award of any other degree/diploma of any University/Institution.
I also hereby declare that all the information given in the report is true to my
knowledge.
Reg no.
Place: Bangalore
Date:
Nitin Moyal
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PARTICULARS Page No.
Chapter 1 Industry Profile Introduction Global Scenario Indian Scenario Key players in the Industry PEST Analysis
Porter’s 5 forces Analysis
Chapter 2 Organization Profile Introduction Vision and Mission Objectives and Goals SWOT Analysis Products and Markets Chapter 3 ORGANIZATION STRUCTURE Introduction Organization Structure Review of Organization Structure Chapter 4 Business Level Functions Marketing Function Finance Function Human Resource Function
Ambuja Cements Limited, formerly known as Gujrat Ambuja Limited is a major Cement
producing company in India. The Group's principal activity is to manufacture and market
cement and clinker for both domestic and export markets.
The Company also operates a hotel through its subsidiary GGL Hotel and Resort Company. It
has shown innovation in utilizing measures like sea transport, captive power plants, and
imported coal and availing of govt. sops and subsidies to constantly check the costs.
Ambuja Cements Limited was earlier known as Gujarat Ambuja Cements Limited (GACL).
The company was set up in 1986. In this short span Ambuja Cements has achieved massive
growth and presently, the total cement capacity of the company is 16 million tonnes. The
company has three subsidiaries, viz, Ambuja Cement Rajasthan Limited (ACRL), Ambuja
Cement Eastern Limited (ACEL) and Ambuja Cement India Limited (ACIL). Ambuja also
has a strategic investment in ACC through its subsidiary (ACIL).
Ambuja Cements is the most profitable cement company in India, and the lowest cost
producer of cement in the world. One of the major reasons that Ambuja Cements is the
lowest cost producer of cement in the world is its emphasis on efficiency. Power consists
over 40% of the production cost of cement. The company improved efficiency of its kilns to
get more output for less power. Thereafter Ambuja Cements set up a captive power plant at a
substantially lower cost than the national grid. The company sourced a cheaper and higher
quality coal from South Africa, and a better furnace oil from the Middle East. As a result,
today, the company is in a position to sell its excess power to the local state government.
Ambuja cement is the first company to introduce the concept of bulk cement movement by
sea in India. This resulted in speedier transportation and brought many coastal markets within
easy reach. Ambuja Cements has a port terminal at Muldwarka, Gujarat. It is an all weather
port that handles ships with 40,000 DWT. The port has a fleet of seven ships with a capacity
of 20500 DWT to ferry bulk cement to the packaging units. The company has bulk cement
terminals at Surat, Panvel, and Galle. The Surat terminal has a storage capacity of 15,000
tonnes and Panvel terminal has a storage capacity of 17,500 tonnes. Both the terminals have
bulk cement unloading facility. The port at Galle, 120 km from Colombo, Sri Lanka, handles
million tonnes of cement annually.
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Ultra Tech Cement LimitedCompany Profile:
Ultra Tech Cement
Limited
Ticker: 532538
Exchanges: BOM
2008 Sales: 55,663,000,000
Major Industry: Construction
Sub Industry: Cement Producers
Country: INDIA
Employees: 3989
Ultra Tech Cement Limited. The Group's principal activities are to manufacture and market clinker and cement in India. The Group has intstalled capacity of 18.2 million tonnes per annum comprising 5 integrated Cement Plants, supported by 5 Grinding Units and 3 Terminals, one of which is located in Sri Lanka. The Group exports to the Middle East and Sri Lanka. It also exports in small quantities to Bangladesh and some European nations.
The Groups cement business is under both Grasim and UltraTech cement. Together the two companies under the group account for a substantial share of the cement market in India. UltraTech cement comprises the cement business of L&T which was acquired by the group. UltraTech announced an increase in sales by 17% and Profit After Tax by 46% for the current quarter ending.
PEST analysis
PEST analysis stands for "Political, Economic, Social, and Technological analysis" and
describes a framework of macroenvironmental factors used in the environmental scanning
component of strategic management. It is a part of the external analysis when conducting a
strategic analysis or doing market research and gives a certain overview of the different
macroenvironmental factors that the company has to take into consideration. It is a useful
strategic tool for understanding market growth or decline, business position, potential and
to Shree Cement Ltd in recognition of Overall Best Corporate Governance Practices and
Disclosures in Annual Report among all companies having registered office in Rajasthan.
-Delist from The Calcutta Stock Exchange Association Ltd (CSE).
2007
- Shree Cement Ltd has appointed Shri. Amitabha Ghosh as Director of the Company w.e.f.
May 14, 2007.
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LOCATION
Shree Cement Unit I & II is located at Beawar, 185 Kms. from Jaipur off the Delhi-Ahmedabad highway. Amongst the plants in the state it is nearest from its marketing centers. Bangur Cement Unit (III,IV,V & Vi) is lacated at RAS,28 Km from Beawar in pali Dist.Shree Cement Grinding Unit (KKGU) is located at Khush Khera Dist. Alwar Nearest to Delhi.
deepening relations), innovation (by new products and services) and regulatory & social (by
establishing good relations with the external stakeholders).
The Innovation & Learning Perspective is concerned with the jobs (human capital), the
systems (information capital), and the climate (organization capital) of the enterprise. These
three factors relate to what Kaplan and Norton claim is the infrastructure that is needed in
order to enable ambitious objectives in the other three perspectives to be achieved.
Note
The company shree cement do not follow the balance score card approach.
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Current Organization Structure
Types of Organization Structure
Functional Division Of Company
Critical Review
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ORGANIZATION DESIGN
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CHAIRMAN { SHREE B.G. BANGAR}
EXECUTIVE DIRECTOR { SHREE M.K. SHINGHI }
MR. R.C. GAGGAR
MR. O.P. SETIA
MR. S.K. SOMANI
MR. ABID HUSSAIN
MR. Y.K. ALAGH
MR. A.K. GHOSH
MANAGING DIRECTOR { SHREE H.M.BANGAR }
BOARD OF DIRECTORS
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ORGANIZATION DESIGN
Organization Design is a formal, guided process for integrating the people, information and
technology of an organization. It is used to match the form of the organization as closely as
possible to the purpose(s) the organization seeks to achieve. Through the design process,
organizations act to improve the probability that the collective efforts of members will be
successful.
Typically, design is approached as an internal change under the guidance of an external
facilitator. Managers and members work together to define the needs of the organization then
create systems to meet those needs most effectively. The facilitator assures that a systematic
process is followed and encourages creative thinking.
Hierarchical Systems
Western organizations have been heavily influenced by the command and control structure of
ancient military organizations, and by the turn of the century introduction of Scientific
Management. Most organizations today are designed as a bureaucracy in whom authority and
responsibility are arranged in a hierarchy. Within the hierarchy rules, policies, and procedures
are uniformly and impersonally applied to exert control over member behaviors. Activity is
organized within sub-units (bureaus, or departments) in which people perform specialized
functions such as manufacturing, sales, or accounting. People who perform similar tasks are
clustered together.
The same basic organizational form is assumed to be appropriate for any organization, be it a
government, school, business, church, or fraternity. It is familiar, predictable, and rational. It
is what comes immediately to mind when we discover that ...we really have to get organized!
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As familiar and rational as the functional hierarchy may be, there are distinct disadvantages
to blindly applying the same form of organization to all purposeful groups. To understand the
problem, begin by observing that different groups wish to achieve different outcomes.
Second, observe that different groups have different members, and that each group possesses
a different culture. These differences in desired outcomes, and in people, should alert us to
the danger of assuming there is any single best way of organizing. To be complete, however,
also observe that different groups will likely choose different methods through which they
will achieve their purpose. Service groups will choose different methods than manufacturing
groups, and both will choose different methods than groups whose purpose is primarily
social. One structure cannot possibly fit all.
Organizing on Purpose
The purpose for which a group exists should be the foundation for everything its members do
— including the choice of an appropriate way to organize. The idea is to create a way of
organizing that best suits the purpose to be accomplished, regardless of the way in which
other, dissimilar groups are organized.
Only when there are close similarities in desired outcomes, culture, and methods should the
basic form of one organization is applied to another. And even then, only with careful fine
tuning. The danger is that the patterns of activity that help one group to be successful may be
dysfunctional for another group, and actually inhibit group effectiveness. To optimize
effectiveness, the form of organization must be matched to the purpose it seeks to achieve.
The Design Process
Organization design begins with the creation of a strategy — a set of decision guidelines by
which members will choose appropriate actions. The strategy is derived from clear, concise
statements of purpose, and vision, and from the organization’s basic philosophy. Strategy
unifies the intent of the organization and focuses members toward actions designed to
accomplish desired outcomes. The strategy encourages actions that support the purpose and
discourages those that do not.
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Creating a strategy is planning, not organizing. To organize we must connect people with
each other in meaningful and purposeful ways. Further, we must connect people with the
information and technology necessary for them to be successful. Organization structure
defines the formal relationships among people and specifies both their roles and their
responsibilities. Administrative systems govern the organization through guidelines,
procedures and policies. Information and technology define the process (es) through which
members achieve outcomes. Each element must support each of the others and together they
must support the organization’s purpose.
Exercising Choice
Organizations are an invention of man. They are contrived social systems through which
groups seek to exert influence or achieve a stated purpose. People choose to organize when
they recognize that by acting alone they are limited in their ability to achieve. We sense that
by acting in concert we may overcome our individual limitations.
When we organize we seek to direct, or pattern, the activities of a group of people toward a
common outcome. How this pattern is designed and implemented greatly influences
effectiveness. Patterns of activity that are complementary and interdependent are more likely
to result in the achievement of intended outcomes. In contrast, activity patterns that are
unrelated and independent are more likely to produce unpredictable and often unintended
results.
The process of organization design matches people, information, and technology to the
purpose, vision, and strategy of the organization. Structure is designed to enhance
communication and information flow among people. Systems are designed to encourage
individual responsibility and decision making. Technology is used to enhance human
capabilities to accomplish meaningful work. The end product is an integrated system of
people and resources, tailored to the specific direction of the organization.
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TYPES OF ORGANIZATION STRUCTURES
1. Functional structures
Early organizational design divided enterprises into relatively simple parts, splitting them into
defined activities such as production, marketing or personnel. Functional organizations have
the advantage of being simple to understand with clear lines of command, specified tasks and
responsibilities. Staff can specialize in a particular business area such as production or
marketing and follow well-defined career paths. This is equally true of human resource
specialists who can develop expertise in specific areas such as employee relations or reward
management.
There are also major disadvantages to functional structures. People managers have to tread
carefully because this form of organization is prone to interdepartmental conflict, often
degenerating into 'them and us' tribal warfare. Coherence and good communication are
particularly hard to achieve between virtually independent functions.
2. Divisional organizations
Split into self-contained units, able to react to environmental changes as quickly as small
companies, they are also described as multidivisional or 'M-form' organizations. Divisions
encourage team spirit and identification with a product or region. Managers can develop
broad skills as they have control of all basic functions. Each division is likely to have a
devolved human resource function. But there is a risk of duplicating activities between head
office and divisional human resource departments and of conflict between staff in successful
and unsuccessful divisions. The divisional function may play a coordinating role, reconciling
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decisions taken at the corporate and business unit levels. This results in a complex picture of
people management.
3. Federations
One variant of the divisional form which has a particular relevance because of its human
resource implications is the 'federation', a loosely connected arrangement of businesses with a
single holding company or separate firms in alliance. This form of organization has attracted
criticism from stock market analysts who find difficulty in comprehending its subtle
informality.
4. Matrix organizations
Matrix forms of management can be regarded (arguably) as an early form of 'network'
structure. They focus on project teams, bringing skilled individuals together from different
parts of the organization. Individuals were made responsible both to their line manager and
the project manager involved. Before the advent of network technology, many matrix
organizations were dogged by duplication and confusion: the 'matrix muddle'.
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FUNCTIONAL DIVISION MARKETING
MR. NARIP BAJWA(HEAD)
MR. DIWAKAR PAYAL( Sn V.P.) MR. VINAY WADHVE ( Sn V.P.) MR. A.B. REDDY ( Sn V.P.)
FIANANCE
MR. ASHOK BHANDARI( HEAD )
MR. N.C. JAIN ( Sn G.M. ) MR. L.K. BHANAWAT ( Sn G.M. ) MR. SUBHSH THAJO ( Sn G.M. )
HR
MR. S.R. SHINGHI ( HEAD )
MR. ALOK MOROLIYA ( Sn Mgr ) MR.GOPAL TRIPATHY (Dept Mgr)
TECHNICAL
MR. SANJAY JAIN ( MECHANICAL ) MR. RAMAN MAHAJAN ( ELECT ) MR. ANIL SHARMA ( INSTRUMENT ) MR. C.K. KHATRI ( LAB ) MR. R.K. BHARGAV ( R&D ) MR. R.K. MANAWAT ( PROCESS )
COMMERCIAL
MR. SANJAY MEHTA ( V.P. )
MR. R.C. GAUR ( Sn GM )
MR. K.K. JAIN ( GM )
MR. ARVIND KHICHI ( JT V.P. )
OPERATION
MR. P.N. CHHANGANI ( V.P. ) MR. P.K. TRIPATHY ( WORKS )
PURCHASE AND SALES
MR. K.C. GANDHI ( V.P. ) MR. ANIL SHUKLA ( Sn Mgr)
PRODUCTION
MR. S.C. SUTHAR ( JOIN VP ) MR. C.B.K. NAIDU ( Mgr proc )
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CRITICAL REVIEWThe most common complaints by the users have been:
1) Lack of Advertisement:-
There is no brand visibility of Bangur cement as a company. Advertisement ultra tech can be
seen overall on Rajasthan at public places but hardly any advertisement on Bangur Cement.
Thus we can say that marketing department is not working at its level best.
2) Less Wall-painting:-
Many sub dealers have not got any shop paintings. While carrying the survey it was
sometime difficult to locate the dealer’s shop which shows that the company need to increase
the promotion to make its presence felt.
3) Absence of company literature:-
There has been a limited company literature and stationary material and this had led to low
recognition for the brand.
4) Online payment system:-
The dealers are finding it difficult to send the demand drafts for the payment of purchased
material on the same day because of slow courier service. The dealers have suggested that
they will make the DD on the same day but there should be at least 24 hours time before the
DD reaches to the region.
5) Low margins:-
As compared to the others brands Bangur provide very low margins, so dealers are less
interested in the bangur cement.
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PURCHASE AND SALES
MR. K.C. GANDHI ( V.P. ) MR. ANIL SHUKLA ( Sn Mgr)
PRODUCTION
MR. S.C. SUTHAR ( JOIN VP ) MR. C.B.K. NAIDU ( Mgr proc )
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6) Quality of bags:-
It was often found during the survey that the quality of bags were inferior due to which the
dealers faces problem while handling.
7) Delivery problem:-
Company should appoint people who ensure that the dealer & builders will get their product
as per the same shown to them and in pre decided time because they complained of delivery
problem and sample not matching.
Marketing Function
HR Function
Operation & Quality Funtion
Finance Function
ERP
Logistics
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The advent of globalization has brought marketing to the forefront of all the business activities. Increased competition has resulted in a customer driven market with ever rising
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consumer expectations. At SHREE, marketing is not merely identified innovative measures to sell its products, but to proactively gauge their changing needs and produce accordingly.
Indian cement industry clocked an impressive growth of 9.8% during FY 07-08. As against it , SHREE registered a growth of 31% in sales volume. Net sales value showed rise of 51%.
Market share
Shree’s strategy of quality advertising combined with active field marketing helped it
increase its market share in north India. Company maintained its leadership position in the
key market of Rajasthan, Delhi & Haryana. Company increased its market share in North
India to 16.4% against 13.9% of last year.
Our focus on increasing marketing share in areas which are closer to their plants offer them
the advantage of low radius. The strategy benefited them in significantly increasing their
market share in the nearer markets of Rajasthan and Haryana. Going forward they aim to
further consolidate and increase our presence to attain the leadership mantle in the entire
North Indian market.
Rich dividends from Multiple Brands Strategy
Shree’ s strategy of multiple competing brands paid rich dividends in term of achieving
by the company build a large network of dealers & retailers and other marketing
infrastructure. Total number of dealers and retailers stood at 4275 & 12157 respectively.
The sales force was suitably assisted by quality advertising and sales promotions activities.
TV commercials, hoardings as well as print media were used to create and brand awareness.
Total advertising spending was increased by 29%.Company’s multiple efforts towards
marketing excellence have resulted in the trade sales increase from 35.72 lac tons to 41.13lac
tons- an increase of 15% over the previous year.
Institutional sales
The institutional sales segment witnessed increased demand due to heightened activities in
infrastuctureand commercial real estate such as multiplexes, malls, IT office space etc.
Considering the high demand potential of this segment, they stepped up their efforts to
increase sales, to institutional customer. The results were encouraging as the institutional
sales witnessed a massive 76% rise during the year. They were able to acquire quality
conscious and prestigious customer.
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Empowering People
At SHREE they consider their people as their greatest assets. They drive growth and achieve long term sustainability of their business. Their culture fosters differential thinking, empowering people by investing in their professional growth. The company strives to be recognize as the best place for the best people to do the best work.
Promoting Progress
SHREE cement was awarded the best employer award for 2007 by the employer’s association of Rajasthan. Shree prides itself in promoting progress by creating and maintaining a work environment which is conducive to both professional and personal growth. The exceptional performance of people manifest itself in the overall performance of the company and growing outlay for human resources.
Training & Development
SHREE’s HR policies are directed towards enhancing knowledge, experience & skill of its
people and retain a skilled workforce. Various multi skills training programs are arranged to
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acquire cross-functional expertise. These are put to use through job enlargement and increase
responsibilities. It leads to an all round development of the employees, such programmes
benefit the company through cost reduction, improved processes and overall enhanced
productivity. Employees also gains through knowledge enrichment and career progression.
Talent Management
SHREE believes the right mix of talent is the key to rip the benefit and avail of the business
opportunities presented by current pace of globalization. SHREE has an excellent
combination of professional competencies in its workforce be in managerial and technical.
Encouraging Innovation
At SHREE, spirit of innovation permeats through every rung of employees. Company
encourages original thoughts which translates into action that yield benefit. A unique scheme
“JO SOCHE WO PAVE” has been running for past many years to encourage the employees
to suggest innovative ideas towards cost reduction, process improvement, energy &
environment conservation. Good ideas are recognized and rewarded at company gathering.
Record Kiln OperationsGood practices in utilizing men and machinery have resulted in outstanding kiln operations.
Kiln-II achieved the twin distinctions of the longest runtime of 337 days as well as the
longest continuous running of 105 days in 2006-07. Highlighting the benefits of sustainable
operations is another fact. A common problem with kilns is stoppage every 3 or 4 months
because of refractory failure. But, at Shree, Kiln-II ran continuously for 9 months without any
shutdown due to refractory failure.
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Raw Material Management
Commodity business is dependent upon naturally procured resources for its manufacturing.
The real challenge for SHREE is thus to manage costs and seek alternatives wherever
possible.The fundamental strength of SHREE’s business model starts from its core
competence in raw material management. Its innovative approach and excellent risk taking
capability has its business sustainable.
HiTech Mining
Limestone is the principal raw material in the cement production. The company is committed
to conserve this natural mineral resources to ensure sustainability for long term operations.
Company has been consistently deploying latest technology newer methods of mining.
Company also deployed imported Hi-Tech blast-hole drill machines for improving its
efficiency in its drilling activites.
Manufacturing Practices
Their cement and clinker production exhibit a steady increase over last two years. Cement
production increased 32% to 6.3 million tonnes in FY 07-08. They pursue manufacturing
practices which compare well with world cement industry. They have been awarded highest
rating for the 7th consecutive year by White Hoplema, UK. With continual capacity
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expansion, they have gained expertise and knowledge to quickly put new units into stabilized
output mode.
Product Mix
Production of Pozzolona Portland cement (PPC) is both value assertive and eco-friendly. At SHREE
their production of PPC is increasing over the last many years, mirroring industry demand.
Power Consumption
SHREE cement strives to reduce power consumption. It regularly invest in adoption of new
technology and practices for reducing its usage of power. Its unstalled and replaced a range of
energy efficient equipments in the year such as high efficiency fan and motors, VFD etc. it
continually looks at the ways to reduce the idle running of equipment. More finer grinding of
cement lead to more power consumption. The additional cost well recovered through better
price realization.
Quality Philosophy
The company's quality obsession covers the following:
Holistic perspective covering all organisational functions.
Continuous improvement in standards.
Continuous reduction in cost
Strong focus on start of the pipe solutions instead of end-of-th-pipe reviews.
Lapse prevention focus as opposed to a fault-finding culture.
Strong documentation process that enables product complaints to be traced swiftly
and effectively to the root problem.
Performance improvement through knowledge sharing with other plants.
Quality Assurance
Shree markets cement with certificates that testify to the high production standards achieved by the company.
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The company's technical officers reach the customer's site to inspect the performance of the material.
Shree conducts special meetings with masons and architects, impressing upon them the quality of its product.
Quality Initiatives
Shree Cement possesses one of the few R&D centres in the Indian cement industry. This
center has been recognised by the DSIR, Government of India. The research team is headed
by a highly qualified and experienced scientist. Shree's R&D center has directly contributed
in the conservation of electrical and thermal energy, an improvement in product quality, cost
reduction, mineral conservation through the intelligent use of fly ash and a waste reduction in
mines through the use of low ash coal.
Computer Aided Mine Planning System
Stacker-Reclaimer for homogenization of lime stone
On-Line Sampling System by Auto Samplers
X Ray Analyzers
Automatic Raw Mix Design Controls by Ramco-Software
On Line Raw meal Blending Control in C.F. Silos
Coal homogenization (Stacker-Reclaimer)
Gypsum homogenization
Fuzzy Logic Control for Kiln operation
Roller Press Control & High Efficiency Separator for particle size distribution
Packing by Automatic Electronic Packers
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FINANCE DEPARTMENT
The account department is involved in monitoring the functions of other department thus
ensuring that the unit is functioning as per plan though with minor deviation.
Important functions constitute the following:
o Planning and budgeting
o C.V.A [cash value Added] calculations
o Bill passing for the supplier as well as the contractors.
o Cash as well as bank transactions
o MIS related activities such as generation of MIS and review meetings from
corrective actions.
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Planning and budgeting activities are done once a year and budgets so formed are reviewed
quarterly. Quarterly revisions or estimates are essential to transform the yearly data contained
in the budget to operational data pertaining to the immediate quarter incorporating there in
any factors that might have escaped notice during the budget preparation due to the any
reason. Deviations from the budgets are reported in the MIS (CVA is calculated annually for
assessing the performance of the unit in cash terms. Delta C.V.A gives the idea of the cash
value additions done during a year.
Separate cash affiliated to the accounts department does bill passing activity. The payment of
the bill is done in the accounts department. MIS generated from accounts department contains
details of the functioning of all the departments in the line of the consumption patterns of all
the products as well as the by – products etc.
If there are any deviations from the budget or the quarterly estimates that are serious in
natural then there deviations are discussed in the monthly review meetings.
performance has posted a good performance with all round improvement production, sales
and in profitability. A strong demand for celluloic fibre coupled with the company’ strategy
on specilty fibres has driven the performance. The above table gives the details of
performance .
Time office:
The main function of this department id to maintain the records such as Attendance ,Leave and Pay role. They also maintain records of the management, such as the Employee State Insurance (ESI) Provident Fund (PF), Attendance of each employee is maintained by issuing the SWAP cards to the individuals. The time office workers depending on the rules of the government body.
There are 4 major shifts for the workers to work at different time intervals.
Shifts Timings
General 8.30 AM to 5.30 PM
‘A’ Shift 7.00 AM to 3.00 PM
‘B’ Shift 3.00 PM to 11.00 PM
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‘C’ Shift 11 PM to 7.00 AM
As on date 155 crore Rs from fund basis limit and 60 crore loan fund basis in which 40 crore is letter of credit and 20 crore is bank guarantee.
Out of 155 crore, 36% is secure from state bank of Bikaner and jaipur.
Working capital demand loan is 90% and cash credit is 10% for which they pay high interest.
Allocation of funds
FMP= 70%
FD= 20%
Liquid funds= 5%
Debt fund= 5%
KEY PEOPLE
Mr. ASHOK BHANDARI ( CFO- KOLKATA )
Mr. NEMICHAND JAIN ( Sn. General Manager of Finance )
Mr. L.K. BHANAWAT ( Sn. Manager of finance )
Mr. SUBHASH YAJOO ( Sn. Manager of finance )
Mr. S.S. KHANDELAWAL ( C.S. )
M/S B.R. MAHESHWARI & CO. NEW DELHI ( Auditor )
M/S K.G. GOYAL & ASSOCIATES, JAIPUR ( Cost Auditor )
M/S P.K. AJMERA & COMPANY ( Internal Auditors )
BANKERS
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SBBJ, SBI, ICICI, IDBI, AXIS,PNB,STANDARD & CHARTED, HSBC, CITI BANK
11 Net Profit from Ordinary Activities after tax (9-10)
10,749.27 10,623.35 21,839.27 22,314.67 26,037.20
12 Extraordinary Items (net of tax expense)
- - - - -
13 Net Profit for the period (11-12)
10,749.27 10,623.35 21,839.27 22,314.67 26,037.20
14 Paid up Equity Share Capital (Face value Rs. 10 per share)
3,483.72 3,483.72 3,483.72 3,483.72 3,483.72
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15 Reserves as per balance sheet of previous accounting year
63,796.81
16 Earnings per share (EPS) (Rs.) -
Cash 45.78 50.85 90.54 94.68 207.94
Basic & Diluted 30.86 30.49 62.69 64.05 74.74
17 Public shareholding
- Number of Shares 1,26,39,468
1,26,39,418
1,26,39,468
1,26,39,418
1,26,39,468
- Percentage of shareholding 36.28% 36.28% 36.28% 36.28% 36.28%
Cement Production in lac ton 17.36 14.52 34.98 28.52 63.37
3358.65 4535.42
Enterprise Resource planning
ERP is actually a process or approach which attempts to consolidate all of a company's
departments and functions into a single computer system that services each department's
specific needs. It is, in a sense, a convergence of people, hardware and software into an
efficient production, service and delivery system that creates profit for the company.
While the idea is easy to grasp in theory, the reality has been different. Most companies have
a conglomeration of different systems and procedures (as well as hardware and software)
designed 'specifically' for their own needs. Employee records (including payroll, medical and
other benefits) are held by Human Resources. Financial data and processing, which includes
payroll computations and employee compensation as well as invoicing and billing for
company products and services, are held by the Finance Department. Production data is held
by manufacturing. Inventories are held by warehousing. Customer orders are held by
Customer Relations, and so on.
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The 'dream' of ERP is to have a single software solution integrating the different functions
and activities into a seamless whole where information needed for decision-making is shared
across departments, and the action taken by one department results in the appropriate follow-
up action up and down the line.
The most often-cited example of an ERP software is customer ordering and delivery where a
customer's order moves smoothly from Sales, where the 'deal' is consummated, to Inventory
and Warehousing, which retrieves and packages the order for delivery, to Finance, where
invoicing, billing and payments are handled, and on to Manufacturing, where replacement of
the bought-and-paid-for product is done.
Primary Benefit
Prior to ERP, each department may be considered an independent fiefdom. Once a department's particular function is completed, it no longer cares for what happens afterwards. A customer following up with Sales for his product will be told, "Check with Warehouse", who will then say, "Check with Delivery", who can tell the customer, "Please check with Finance to see if your invoice has been cleared".
Efforts to integrate the system before always met with the stumbling block of different software and procedures. A sales person could not access the finance database to find out the customer's billing status, nor can he easily access the warehouse, inventory or delivery to find out the status of the customer's order.
With ERP, all elements in the supply and production chain can be easily accessed by all those who need the information. This leads to efficiency in customer management and perceived company effectiveness in delivering on customer expectations.
Other Advantages
An oft-overlooked advantage in having a workable and efficient ERP system in place is savings in relation to energy consumption and data management.
Having an ERP system in place implies having a single hardware system to handle the different requirements, translating into reduced power consumption operating off a single database which translates into savings on storage.
The savings generated from a minimum of hardware and storage, coupled with operational efficiencies created from a single system across all departments, translates into measurable profit for the company.
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During the year Company has undertaken implementation of an “Enterprise Resource Planning” (ERP) Project with Oracle E-Business Suite to manage its expanding business operations. ERP Project shall help it in improving its business matrices by process optimization, improving logistics and integration across disciplines. The project is expected to be operational in FY 2008-09.
Logistic management
In a material business such a cement,efficient logistic management is the key of higher profitability.when million of tons of low absolute unit cost input and output have to be handle,every penny counts.on an average shree handles approximately 43000 tons of material in a day across 3 location.
Shree witnessed a significant price in logistic cost per ton from rs.324 in the previous year to rs. 484 in the current year.while a part of this was due to increase in fuel cost a majority of this rise isw due to change in pattern of sales.
Challenges
1.the growth in production volumes meant higher dispatches which grew by almost 34%.\
2.the commissioning of the graining unit is almost 6000 tons of clinker had be transopted from Ras on a daily basis. A dealy could mean are shut down at plants as it operated on just in time inventory system .
3 the increase in fuel prices meant that per tone transportation costs would be significantly impacted as company’s new capacity came up at RAS from where rail transport was not possible.
Logistics innovations at shree
Clinker transport to grinding unitThey took several initiatives for economies in freight cost of clinker to their grinding unit commissioned during the year. A separate system of loading at RAS and unloading at KHUSHKHERA , independent from cement loading was established.
Truck turnaround timeThe time that a truck takes to load and unload at the plant premises is directly proportional to the efficiency of the logistics system. In case of road transportation of cement , truck loading time came down from 15.45 hours to 12 hours. For rail transportation loading time for cement was reduced to 10 hours from 10.45 hours and for clinker, it was down to 13 hours from 17 hours.
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Benefiting from inbound logisticsThey produce petcoke from Panipat, fly ash from Suratgarh, kota, Panipat and Dadri and gypsum from Jaisalmer and Bikaner. They make sure that these truks are given return load of cement ,so that overall fat is reduced.
Specially designed vehiclesShree devised special closed body trucks designed which can be used to transport multiple materials. They made full use of their railway siding facility available at Beawar. Plants and increased rail loading from 13.67 lac tone to 16.84 lac tone during the year.
A proposal to link Ras plants with Beawar railway siding is under consideration which will pave the way rail transportation from RAs as well in future.
SUGGESTION & RECOMMENDATIONS
Advertising strategies should be revised. More focus should be given on publicity and
awareness among customer should be there.
A price of Bangur Cement is much higher than other competitor’s brands and this lead
to very less margin of profit for retailers. To prevent this type of problem company
should provide more margins of profit & incentives to defer it.
The main & lucrative factor may for Bangur cement is contracted , relation will create
a smooth flow of sales for Bangur cement. So they should make more frequent in
contractor’s meeting.
We often see that retailers would like to sale only that product in which he gains more
profit, so we should give a good margin of profit to retailer.
In sales promotion activity, we should focus on counter meeting, contractor’s meeting
& retailer meeting, in which we can give some gifts and refreshments to contractor,
dealer and retailers.
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They should offer POP material and other incentives to push the confidence in Bangur
cement dealers and contractor.
Literature can be provided to stockiest and retailers. This written material will also
help them to advertise and promote the product.
The major problem faced by the retailers is great transparency in prices so company
should make a policy for stability in prices at every stockiest in jaipur city.
Company should also provide more technical services, so they can visit every site &
solve the customer’s problem.
FINDINGS & CONCLUSIONS
Learning is a never ending process which continues from birth of human being to his/her death. It can also be done by reading book and through training and work. Spending 6 days in SHRRE CEMENT LTD. was good learning experience for me. After completing the organization study I come to know that academic learning is different and working in organization and learning is different. After spending such precious time in an organization my major finding in that particular organization are as follows:
Firstly, organization culture of Shree Cement is formal, where every person cannot directly meet to High authority with out any systematic way which I considered was good because it encourages employees at work.
Secondly, organization structure of Shree Cement is well formatted in which each and every department plays important role.
Thirdly, in the organisation structure is divided into to 4 part one is in Finance, Marketing, Operation & Quality, Human and Resources These all departments are headed by different persons but at the same time they work for same objective with full co-ordination which shows the unity level about the organisation.
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Fourthly, all the employees and labourers work very hard towards achieving the goal. Even the higher authorities work very hard without wasting time towards the organization goal
Fifthly, security concern in shasun chemicals. doesn’t allow the outsiders to enter into the factory without prior appointment or consulting the higher authorities. They have a very effective security system.
Sixthly, Administrative head role in an organisation very important to make good working environment the practice which I observed was that he was very hard working person and he does his work very efficiently.
Seventhly, marketing department made me to learn about, how the customers can be attracted by giving him innovative thoughts and ideas and benefiting to both the organization and the common people.
Eighthly, an organisation study also makes me learn that any objective cannot achieve with a short span of time it has to be done through systematic ways.
Finally, in any organisation time management play important role because each activity should be done at a right time at right place.