AN

INDUSTRIAL TRAINING REPORT

UNDERTAKEN AT

SAURASHTRA CEMENT LIMITED

RANAVAV.

1

PERSONAL INFORMATION

NAME : MAULIK H. JOSHI

CLASS : M.B.A.

SUBJECT : INDUSTRIAL

TRAINING REPORT

COLLEGE : SHRI. H.N.SHUKLA COLLEGE

ROLL NO. : 20

ACADEMIC YEAR : 2005-06

COMPANY VISITED : SAURASHTRA

CEMENT LIMITED

RANAVAV.

GUIDED BY : PROF. ALPESH SHAH

2

PREFACE

M.B.A. faculty is unique in itself. It satisfies almost all the

requirements which are necessary for the successful handling of any

business. While designing the syllabus of our M.B.A faculty the designer

kept in mind the purpose of making students efficient in every aspects of

the management. For this purpose industrial visit and its report making is

included in our syllabus.

The theoretical knowledge regarding business management can be

gained in the classroom. But practical knowledge is not accessible in the

classroom. For this purpose of practical training I visited the unit

“Saurashtra Cement limited”.

To the best information of my efforts to cover as much fresh

information available to prepare this project report with a very careful

study, I tried my best to highlight and include all kinds of information,

which is possible.

3

ACKNOWLEDGEMENT

In reference with practical training, I would like to express my sense

of gratitude to the management of Saurashtra cement limited. For giving

me this training opportunity for the days in its company.

I am particularly grateful to the principal Incharge of our college

Mr. Advani Nilesh and deep appraisal to M. B.A Incharge Mr. Alpesh

Shah for allowing and giving me valuable guidance concerning with

project report.

I also express my due thanks to Mr. G.M. Trivedi. Mr. Pankaj Vaja,

Mr. Siddharth Solanki and to the management of SCL for giving me all the

information.

Again I sincerely thanks to all who directly or indirectly contributed

to my in my report construction.

Place: - Porbandar

Date: -

Yours Faithfully,

(Maulik H. Joshi)

4

INDEX

Sr. No. PARTICULARS PAGE NO.

1. GENERAL INFORMATION 6

2. PERSONNEL DEPARTMENT 20

3. PRODUCTION DEPARTMENT 37

4. MARKETING DEPARTMENT 50

5. FINANCE DEPARTMENT 63

6. RESEARCH METHODOLOGY 81

7. FUTURE PLAN 84

8. CONCLUSION 86

9. BIBLIOGRAPHY 88

5

6

CONTENT

Sr. No. Particular Page No.

1. INTRODUCTION ABOUT

CEMENT INDUSTRY 8

2. INTRODUCTION ABOUT UNIT 9

3. HISTORY & DEVELOPMENT

OF THE UNIT 10

4. LOCATION FACTOS OF THE UNIT 12

5. MANAGING BODY OF THE UNIT 14

6. SIZE OF THE UNIT 15

7. FORM OF ORGANISATION 15

8. ORGANISATION CHART 16

9. TIME KEEPING SYSTEM OF

THE UNIT 17

10. SAURASHTRA CEMENT AT A GLANCE 18

7

1-INTRODUCTION ABOUT CEMENT

INDUSTRY

Cement is the basic raw material for all construction activities.

Cement plays vital role in manufacturing buildings, factory etc. today

cement graph goes up and up because now a days growth and development

activities doing more efficiently. The INDIAN CEMENT INDUSTRY is

the second largest in the world after china.

“Cement may be defined as a mixture of clinker, gypsum and other

material that is used in construction”. The Indian cement industry plays a

key role in the national economy in India there are more than 55 cement

industries producing 111 million tons of cement out of 108 million tons of

cement are consumed in India and 3 million tons are exported. In India

total investments of the cement industries s about 25 crores and 153

thousand people are employee because of cement industries. The

‘Ultratech’ (L & T) cement is the leading cement industry in India.

Today the use of cement has become so inseparably connected with

the social, economic and industrial fabric o a country, can your imagine

the world without cement?

8

2-INTRODUCTION ABOUT UNIT

SAURASHTRA CEMENT LIMITED was produced by Mehta

group is one of the leading players in the Indian cement industry. SCL

manufactures ordinary and pozzolano port land cement. HATHHI

CEMENT is the brand of itself over the decades as a “choice of every

generation for its strength and durability” it is situated at Ranavav near

Railway Station.

SCL exports its product i.e. clinker and cement in many foreign

countries. For this purpose SCL produces high strength cement. The major

strength of SCL in its brand name and strong quality.

Today SCL is the best cement plant in the world with compare to

the large scale modernization and expansion SCL has got award of ISO

9002 system. By its product quality, SCL enables term foreign exchange.

9

3-HISTORY & DEVELOPMENT OF THE

UNIT

HISTORY

Each and every business unit running from its own sweet and

memorable history. The word history means past performance of the

company.

At 11th June 1956 shri Nanji Kalidas Mehta give birth to the

Saurashtra cement limited. Obtained license at 9th January 1957

establishment under the company’s Act 1956. Production was started in

1959.

Previously eldest sons of late Shri Nanji Kalidas Mehta &

Khimjibhai Mehta managed the company. But in 1983 the management

was taken over by shri Mehandrabhai Mehta the youngest son of late Shri

Nanji Kalidas Mehta.

The SCL has certified for ISO 9002 from TUV Government. The

government of India has recognized the company as an export house.

10

DEVELOPMENT

Development is very important thing for any unit when

company starts it may face some problems but when problems are solved

company goes toward development.

The company starts its production in 1959, with installed capacity of

600 tons per day. As the high demand of cement SCL had increased their

installed capacity. Today company’s installed capacity is 4200 tons per

day.

Today unit is having turn over of cement more that 200 crores. Due

to increase in productivity effective marketing and quality control.

11

4-LOCATION FACTORS OF THE UNIT

Location is so much important for any business unit. Its plays vital

role in development of unit promoters who produce any business unit must

fixed a location where raw material, power supply, labour, transportation

facility and government allowed area is available.

SCL is established at Ranavav because of the following factors

1. Availability of Raw Material

Raw material is the basis produces any product so raw

materials are most noticeable factor for location. SCL gets its raw material

from nearly areas of Porbandar District. So SCL gets its raw material

easily, fast and with large quantity.

2. Availability of Labour

The labour factor is so much important for location. SCL gets

sufficient labours educated, skilled unskilled labours because of SCL

located at near of Porbandar city so SCL has never face any difficulty for

the labours.

12

3. Transportation Facility

To carry goods from one region to another transport facility

must be needed. SCL’s location is suitable because roadways of the

Gujarat and by water ways of about from Porbandar port. So SCL have not

face any problem of SCL.

4. Availability of Electricity

Any business unit not runs without electricity. SCL purchases

electricity from GEB and company has also his DG set (Diesel Generator)

so electricity is not problem of SCL.

5. Government Support

The government policy of Gujarat is good and favorable.

Government provides schemes for development and promoting the

industries. Situated in Gujarat state Government also provides short term,

long term financial loans.

13

5-MANAGING BODY

BOARD OF DIRECTORS

NAME DESIGNATION

Mr. M.N.Mehta Chairman

Mr. D.N.Mehta Dy. Chairman

Mr. Jay Mehta Exct. Vice Chairman

Mr. H.D.Mehta Director

Mr. M.N.Rao Director

Mr. S.U.S.Raghavan Director

Mr. Savita V. Pitte Director

Mr. Stephen Potter J.F.D.C.,Denmark

Nominne

Mr. Fring Frodse FC Smidth & Co.

A/s Denmark.

Mr. M.K.Charduke IFCI, Nominnee

Mr. S.Ramjee UTI, Nominnee

Mr. M.S.Gilotra Managing DirectorMr. R.K.Poddar Dy. Managing Director

14

6-SIZE OF THE UNIT

In the consideration of the size of the unit there are three tools

1. Large scale industry

2. Medium scale industry

3. Small scale industry

At the birth SCL is large scale industry. The industry which is

having share capital more than Rs. 5 crore is the large scale industry. The

675 persons work in this factor

7-FORM OF ORGANISATION

There are so many forms of business organisation SCL is itself a

“public company. The company is only indirectly defined in the act sec 3

(I) (iv) states “public company means a company which is not a private

company”.

The company having a line and staff organisation

15

8-ORGANIZATION CHART

SHARE HOLDER

v.p common v.p. finance v.p. operating v.p mark

Sr. Manager Sr. Manager Sr. Manager Sr. Manager

Dg. Manager Dg. Manager Dg. Manager Dg. Manager

As. Manager As. Manager As. Manager As. Manager

Person Accountist worker & labour sales pres.Officer

Here

V.P. : - Vice President

Sr. : - Senior

D.G. : - Deputy General

As. : - Assistant

16

9-TIME KEEPING SYSTEM OF THE

UNIT

Time keeping system is important function for any business unit.

The government rule says that every employee must work 8 hours not

more than 8 hours in a day.

So far as SCL is concerned it has a continues process i.e. it carries

24 hours unbroken manufacturing process. it must arrange big timing

system SCL time keeping system is classified into two parts.

Shifts Time

First shift 4:00 am to 12:00 pm

Second shift 12:00 pm to 8:00 pm

Third shift 8:00 pm to 4:00 am

During these workers get half an hour as a recess.

Time keeping for white collar Employee

For white collar employees of the manager levels company arranged

general shift

General shift : - 8:00 am to 5 pm

During this period white colloar employees get an hour as a recess.

17

10-SAURASHTRA CEMENT LTD AT A

GLANCE

1. Registered office: - Saurashtra cement limited

near Railway station

Ranavav- 360550

Dist. Porbandar

Gujarat (India)

2. Corporate office: - Agrima Business centre

N.K. Mehta international

178 Backbuy reclumination

Mumbai – 400020.

3. Marketing office: - Pelican Building

7th floor

Nr. Gujarat chamber

Ashram road,

Ahemedabad – 380009

4. Auditors: - M/s. Bansi & Mehta company

Chartered Accountant

5. Bankers: - Central Bank of India

Dena Bank

Vijya Bank

18

The Saurashtra cooperative Bank

Industrial Bank limited

Rajkot Nagrik Sahkari Bank

6. Name of Product Ordinary portland cement [opc]

53 grade cement

43 grade cement

33 grade cement

portland slag cement [PSC]

pozzolana portland [PPC]

sulphate portland [SRC]

7. Sister concern: - Gujarat siddhi cement ltd

Veraval.

8. Website: - www.Mehtagroup.com

9. No. of employees: - 675 employees

581 skilled, 94 unskilled

10. Share Department : - N.K. Mehta international house

5th floor, 178, Back bay

reclamation

11. size of the unit: - large scale unit.

19

20

CONTENT

Sr. No. Particular Page No.

1. INTRODUCTION 22

2. ORGANISATION CHART 23

3. TRAINING & DEVELOPMENT 24

4. WAGES & SALARY

ADMINISTRATION 26

5. BONUS PROMOTION &

TRANSFER POLICY 27

6. RECRUITMENT, SELECTION &

INTRODUCTION 28

7. WORKERS BENEFITS & FACILITIES 31

8. OVERTIME PAYMENT TO

THE WORKERS 32

9. PERSONAL RECORDS 33

10. KAIZEN SCHEME 34

11. TRADE MARK 34

12. SAFETY OF WORKERS 35

13. SOCIAL RESPONSIBILITIES 36

21

1-INTRODUCTION

In any business unit personal department must be because of

personal department is the heart of any business unit. Without this the

business can’t run.

The personal department is related with human beings. Personal

department has taken care of his employees. If employees and workers are

happy the production goes up and up. Today man power contribution for

any business unit is so useful for smooth and long run.

Personal department is also concerned with attaining of maximum

individual development, good working relationship between employees

and getting maximum efficiently of employees toward the working

organisation.

The main function of personal department is to appoint trained,

develop, motivate and compensate the employees of an organisation.

22

2-ORGANISATION CHART

Managing Director

Director commercial

DY. Manager

L.W.O. Per. Off Law. Off T&D . off Man (adm)

Time ke Traince AL.O ASS Transect

Clerk Clerk Clerk

Typist

Here

Per. Off: - Personal Officer

Off : - Officer

T&D:- Training & Development

Man: - Manager

Admt: - Administrative

Ko: - Keeper

A.L.O: - Assistant Law Officer

Tra.Sec: - Transporting Security.

3-TRAINING & DEVELOPMENT

23

TRAININIG

Training is defined as the act of increasing the knowledge and skill

of an employee for doing a particular job. Training provides awareness of

rules and regulations, the ways of performing given task effectively and

prepares the employees improve the job performance.

SCL gives training to their employees. There are two principal

methods use by SCL.

C I : - on he job training method

C ii: - off the job training method

C (I) On the Job Training Method

Numerous training methods can be used while the man is engaged in

the process of productive work on the job training methods are suitable for

all levels of personal. On the job training methods new selected candidate

start his work without any performances.

As SCL cement it is labour oriented industry training given by job

trained method. The new workship has given training on the job under the

direct supervision of supervisor.

(ii) Off the Job Training

in this method trainer leave their work place and devote their

entire time to the development objective.

24

The company uses the methods like lectures. Audiovisual

conferences, discussion, case study, role playing etc.

DEVELOPMENT

Development of employees mains those types of activities which are

help in future for developing they are doing this activities to the potential

from workers.

Periodically SCL workers meetings and invite professional experts

as well as experts of the similar company to express their opinions and

suggestions.

In SCL, the company does provide better and professional

management, development sources of all those levels of staff members.

25

4-WAGES & SALARY

ADMINISTRATION

Today each and every person doing his work to get some return and

here that gets returns in the medium of money. Money is one of the

powerful motivations behind all activities. The term ‘wage’ is defined as

the remuneration paid to production and maintenance. The term ‘salary’ is

defined as the remuneration paid to the clerical and managerial personnel

employees on monthly or annual basis.

SCL pays salaries to 45 managers 48 supervisors and 365 workmen

and it pays wages to contractual labour. They pay wages according to all

India cement wage board and wages act. Cement wage board and wages

act. SCL pays salaries on 7th day of the month while wage payment is not

fixed they keep a record of absence and present of employees by punching

system. Time keeping office prepares this record.

26

5-BONUS, PROMOTION & TRANSFER

POLICY

BONUS

Bonus is the extract payment to the employees for the better earning

of profit of company.

In Saurashtra cement limited bonus is given once a year. They pay

bonus unto 5000 to their employee.

PROMOTION POLICY

Promotion means go up or goes one step more than others with more

responsibilities and more no. of hour working and taking extra facilities.

SCL gives promotion on the basis of seniority, ability and

educational qualification, experience and also on the merits of the

employee. Thus SCL mainly promotes on the basis of Job knowledge and

skills of employees.

TRANSFER POLICY

Transfer means change in job but which job is provide is

subsequently equal to first one means plant and position salary, status

responsibilities are same

In SCL transfer are in lower level for solving his problem for

transfer his shifts and went to another shift. There is doing internal

transfer. But when company finds well knowledge persons who are

wrongly place then it transfers that employee to his knowledge

department.

27

6-RECRUITMENT, SELECTION AND

INTRODUCTION

RECRUITMENT

Recruitment is the first step in the employment process which aims

at developed and maintaining sufficient manpower resources upon which

the organisation can depend when it needs additional employees.

Recruitment has regarded as important function of the personal

management.

There are mainly two type of recruitment sources.

1. Internal sources

2. External sources

Internal sources: -

Internal sources means whenever a company needs employee for

any post they promotes, transfers or demand. SCL either promotes

existing employee or from their relatives.

28

External Sources

External sources of recruitment means if company has vacancy

needed from out side than company gives advertisement in daily

newspaper, both in English or well as in Gujarati. Also it used the website

of their own. The SCL is widely used external sources.

SELECTION

When company gives advertisement for vacancy. They are many

applications comes from large numbers of people. At that time selection is

needed. So selection means to pick a right persons for job from number of

the peoples.

There are so many techniques to select the employee. Selection

process of SCL is as follows: -

(i) Written Test

With the help of written test we can know practical and

general knowledge of employees. SCL takes written test only for managers

and engineers. For officers it is not required.

29

(ii) Interview

Interview is a process between person to person means

employees and candidate with the help of interview one can get more

information about the candidate, after they decide some of are successful

and some of are unsuccessful.

(iii) Physical Examination

Candidates who are appointed from all above test after this

tests. that person must give medical examination. This is very important

because if a person having poor health he can not work efficiently and the

investment on him may go waste. As concerned to SCL it conducts

medical check up to see the person is medically suited or not.

INDUCTION

Induction is welcoming process of new employees. When a new

employer comes in the organisation the organisation arranged induction.

Make him to feel like home and generate him that his performance in the

company is significant. In SCL induction process is for 15 to 20 days and

the personal officer gives all details about organisation.

30

7-WORKS BENEFITS & FACILITIES

Saurashtra cement limited provides following facilities and benefits

to their employees.

1. Housing facility

2. Medical facility

3. Travailing and transport facility

4. Canteen facility

5. Creational and entertainment facility

6. Death relief fund

Other facilities

1. SCL provides grays gratuity scheme for the employees

2. SCL provides provident fund scheme for the employees

3. SCL provides uniform, shoes, goggles and cap to its employees for

safety

4. SCL provides leave facility to its employees

5. SCL provides parking facility

6. SCL provides facility to withdraw amount in advance by the

employees as per their post and standard of wages.

7. Whenever company achieve it’s predetermine goal very effectively

management declare bonus to their employees as an additional.

31

8-OVERTIME PAYMENT TO THE

WORKERS

Overtime payment is admissible to wage board workers only. The

overtime payment are made at double the normal rate on the basis of

overtime memo received is from the various department and as per the

duty approved by the concerned department heads.

No overtime is paid to manger level persons.

“According to bonus act o 1956 on organization has to pay bonus at

the end of 5 years of its operations.

Saurashtra cement limited pays double of basis salary to workers.

32

9-PERSONAL RECORDS

Personal department must be record all the information about the

employees which are working in unit.

Personal record is systematically record of performance made by

employees. It is helpful in job analysis and promotion policy.

Saurashtra cement limited performs this function by keeping

separate file for each and every employee in which details regarding life

i.e. age, sex, date of birth, marriage, children, etc and details about Job

regarding job as date of recruitment, Experience, educational qualification,

leaves, health and safety, disciplined industrial disciplined etc. are clearly

recorded with a view to determine how to compensate the work.

33

10-KAIZEN SCHEME

To invite various ideas of the employees SCL has developed a

totally new scheme i.e. Kaizen Scheme.

Rules & Regulation of Kaizen Scheme

1. Kaizen scheme was received I the month of January 2003.

2. Under this scheme various ideas are invited from the

employees addressing any are they deem fit

3. The suggestions as well as the coordinators not only get cash

rewards for good ideas but also get to implement their own

ideas once it gets approved by the management

11-TRADE UNION

A trade union is the combination of persons, whether temporary or

permanent preliminary for the purpose of regulation the relations between

workers and employees or between workers and workers.

Now a day there are hardly industries that consist no trade union. As

Saurashtra cements limited has 675 no. of workers and it is very difficult

to manage then at to satisfy their needs. If any problems arise in the

organisation there are two trade union namely Saurashtra kamdar union

and cement sarmic sangh they both are registered and connected with

INTUV.

34

12-SAFETY OF WORKERS.

In simple terms, ‘safety’ means freedom from the occurrence or risk

of injury or loss. Industrial safety or employee safety refers to the

protection of the workers from the danger of life, damage of property, loss

of production, loss of man hours and loss of workers, employees and to the

nation. Thus to prevent the accident the need of safety is felt.

Safety is primarily the responsibility of the management to control

the number of accidents SCL becomes more conscious about safety

programs for its employees in which they provide training to them for

safety.

In the celebration of safety week the company put many slogans and

poems for safety one of them are as follows: -

“SAFETY IS A FOUNDATION OF

HEALTH AND WEALTH”

35

13-SOCIAL RESPONSIBILITIES

Every business unit has to perform some social responsibilities

towards the society. The organisation doing noise pollution, air pollution,

garbage and many other disadvantages of organisation. Society of the

location accept all these things so organisation must have follow some

social responsibilities.

SCL provides following facilities: -

1 They help to control the air pollution by keeping bag house scheme

2 They make the area green by growing trees.

3 They provide employment to thousands of peoples.

4 They allow students to get his industrial training

5 They sponsor tournaments, events etc.

36

37

CONTENT

Sr. No. Particular Page No.

1.INTRODUCTION 39

2.ORGANISATON CHART 40

3.NUMBERS OF THE PRODUCT 41

4.RAW MATERIALS AND OTHER

SOURCES OF MANUFACTURE 42

5.MAIN MACHINERIES 44

6.PRODUCITON PROCESS 45

7.QUALITY CONTROL 48

8.POLLUTION CONTROL 49

38

1-INTRODUCTION

The production function of a business is concerned with the creation

of a product or services required to satisfy customer’s needs, wants and

desires. Production means creation of utilities and covers al the activities

of procurement, allocation labour, energy, materials, equipments,

machinery etc.

Production department is one of the most important parts of an

enterprise which is responsible for the actual transportation of materials

into finished products. It deals with many machine, organisation to

accomplish both productivity and satisfaction the desirable and results.

Thus, ‘PRODUCTION’ means to produce goods in required quality

at the required time and with the required quality in the most economic

manner.

39

2-ORGANISTION CHART

Vice President

Sales Manager Sales & Advrts. Manager

Deputy Manager Senior Executive

Area Sales Manager Sales Representative

Regional Manager Sales Man

Head Clerks

Dispatch Clerks

40

3-TYPES OF PROCUCT

Each and every business unit may manufacture some type of

product. As concerned to SCL it manufactures only one product i.e. port

land cement, SCL provides high strength cement for exporting.

The numbers of the product manufactured by SCL are as follows

Types of product As per

1. Ordinary Portland Cement

53 Grade I.S. 12269 : 1987

43 Grade I.S. 8112 : 1889

33 Grade I.S. 269 : 1989

2. Pozzoland Portland Cement – 53 P Is

14889 (Part 1) : 1991

3. Portland Slag Cement -- I.S. 465 : 1989

4. Sulphate resisting port land cement

I.S. 12330 : 1988

41

4-RAW MATERIALS AND OTHER

SOURCES OF MANUFACTURER

‘RAW MATERIAL’ is the foundation for manufacture a product.

Raw material is starting point so raw material is must be required to

produce a final product. SCL used various types of raw materials.

1. LIMESTONE

2. MARL

3. IRON ORE

4. SAND STONE

5. GYPSUM -- a MARINE

b CHEMICAL

c PITO

To provide a best quality product best quality of raw material with

large stock must be needed. SCL gets his raw material from following

places.

1. LIMESTONE

SCL ADITYANA MINES

2. MARL

SCL ADITYANA MINES

3. IRON ORE

BANGANAGA MINERALS

SHAHPUR, RAJASTHAN

4. SAND STONE

42

SUNHEM MINERALS

CHOTILA

5. GYPSUM

a. MARINE

GANDHIGHAN, MORI, BHAVNAGAR, NAVLAKHI

1. SH. NATHJI TRADE CO. PBR

2. TATA CHEM, MITHAPUR

b. CHEMICAL

THAN, MORBI, KADI

1. SH. HARSIDDHI TRADE CO. PBR

2. MUNJAR ENTERPRISE PBR.

PHOSPHO

G.S.F.C.

c. COAL IMPORTED

SOUTH AFRICA

1. Esteco coal sup, Mumbai

2. M/s Glencore India, Mumbai,

3. APR Coal & Energy

4. Comtoir Balland, Geneva

5-MAIN MACHINERY

43

Crusher

Stacker

Recliner

Raw mill

Blending silo

Pre heater

Clinerisation

Coal mill

Cooler

Cement mill

Packer

Pre kilan

44

6-PRODUCTION PROCESS

For the production Process Company has adopted dry process.

Following is the production process of cement of Saurashtra cement

limited.

1. Raw material Input: -

The main raw material i.e. line stone and marl fed into the

crusher by the dumper. This raw material input before laboratory test.

2. Crusher

Lime stone and marl are fed into the crusher at where they are

transferred into crushed. Now the crusher material is taken to the stacker

by mean of belt.

3. Sacker

This sacker makes stock pile for pre building whole sample of

limestone and marl are taken our every five minutes for determine and

correlation of material.

4. Recliner

Raw material of limestone and marl are reclaimed for the

stockpiles by recliner which collect the raw material through the cross

action.

45

5. Raw mill

Lime stone sweetener and additive like sand stone and literate

are fed into raw mill by feeders in which quantity are mixed.

6. Blending slid

Now the material from the raw mill is taken into blending

silo. In this silo material is separated. Separated material is fed in

preheated by plod which gives correct weight of fuel.

7. Pre heater

The raw material enter into pre heater from blending silo in

the first stage in the first stage the material travel from work because of

gravity and gain temperature approximately 800 to 900 degree Celsius at

the last stage calciner fuel is introduce.

46

8. Clinkerisation

Raw material coming from the pre heater and kiln, which

rotates at very, slow speed and power call is fixed from the other hand.

9. Cooler

The raw material coming from clinerisation the temperature

of this is round about 1400 to 1300 degree celsius in the cooler clinker is

got cool.

10. Cement Mill

The material which is cooled now in cement mill 4% to 6% of

gypsum is added in it, then it comes in grinding mill at there the clinker

with gypsum is grinded and finish product comes out.

11. Packer

The cement is automatically packed in 50 kgs plastic bag in

packer machine. There are four packer machine each packer has capacity

to pack 1400 plastic bag of 50 kgs.

47

7-QUANLITY CONTROL

Quality control is an essential part of producing the best quality of

the product. Most of the customers prefer the quality of the product. The

customers never accept any fluctuations in the quality of the product. If the

quality of the product is not as per the requirements, it is very necessary to

control the quality of the product.

SCL is producing cement and to check its quality after it is being

produced is very difficult as it takes 28 days to show its strength. Quality

control department has developed a special technique to solve this

problem. So they stated the backward process i.e. to manufacture particular

quality of cement, particular quality of raw material and process is needed

so they start checking quality of raw materials are checked by the quality

& control department.

The SCL follows the easy method to control the quality of cement.

To check the water pollution by dissolving of chemicals, some

chemicals may be mixed with the water so that the water may be used of

drinking or industrial use.

Land Degradation

When the land is being damaged by mining, it is to be

reclaimed and forestation is to be done so that environment balance may

be restored

48

8-POLLUTION CONTROL

Every business unit which are doing large production. It must

create pollution so SCL also creating pollution in nature. They can control

this pollution by following ways.

To control Air Pollution

The air pollution can be controlled by making the use of

explosive, various types of fuels. The smoke and dust coming out of

chimneys can be controlled by using recycling plant, installation of dust

collector etc.

To control Water Pollution

To control water pollution they should not allow the bathing

and washing of clothes near the water storage. They should also take care

that garbage and waste is also not being dumped inside the water.

49

50

CONTENT

Sr. No. Particular Page No.

1. INTRODUCTION 52

2. ORGANISATION CHART OF

THE MARKETING DEPARTMENT 53

3. PRODUCT PLANNING 54

4. MARKET SEGMENTATION 54

5. PRICING POLICY 57

6. CHANNELS OF DISTRIBUTION 58

7. SALES PROMOTION 59

8. MARKETING RESEARCH 60

9. COMPETITORS 61

10. ADVERTISING 62

51

1-INTRODUCTION

Today in this competitive market one can not sale its product

without marketing. “Marketing is a human activity directed at satisfying

needs and wants through exchange process”. Described by Phillip Kotler.

Marketing involves the activity like planning, pricing, determination,

advertisement etc.

Marketing department plays a vital role in the organisation.

Marketing management represents and important functional area of

business management efforts for the flow of goods and services from the

producers to the consumers.

Some one has rightly said “Nothing happen in our economy until.

Somebody sales something”

In this competitive market each firm tries to increase sales volume

and market reputation by providing consumer satisfaction and qualitative

products.

52

2-ORGANIZATION CHART OF THE

MARKETING DEPARTMENT

The organization chart of the marketing department is as follow: -

Marketing Department

Vice president

Senior manager Sales & Adv. Manager

Deputy Manager Senior Executive

Area Sells Manager Sales representatives

Regional Manager Salesman

Head clerk

Dispath Clerk

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3-PRODUCT PLANNING

Product planning means to think about present market of the

product and from that deciding about future and takes decision about the

types of product, quality of product. Quality of product designs of product

etc. the present market of competitors. In every business we can see the

cutthroat competition to satisfy the consumer company has to do

something new or different to his product.

In SCL, product planning is done keeping in view the demand as

well as supply factors.

If the company finds that the demand for cement is increasing than

automatically it increases the production and vice versa. However there are

so many other factors which are also considered while planning the

product like availability of raw material, availability of manpower,

electricity etc.

54

4-MARKET SEGMENTATION

Market segmentation represents an important recent advancement

on marketing thinking and strategy. The modern marketing is consumer

oriented. So producer must know which are not alike, customers are differ

in their wants, purchasing power, geographic locations, buying attitudes,

tastes, habits nature, interest etc. so al the needs of a consumer cannot be

satisfied with the same product. Such selection of subjects as a

homogeneous group is called market segmentation.

As concern to SCL, the customers who require cement in bulk

quantity can buy Hathi Cement and those who want cement in small

quantity can have Chottu Hathi Cement available in kg, 5 kg, and 10 kg.

Packs. Generally, builders use Hathi Cement but sometimes small packs

are also required for repairs so they can go for Chottu Hathi.

SCL has segmented its market as per the quantity of the cement in

the following way

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As per the quantity of the cement

HATHI CEMENT CHOTTU HATHI CEMENT

For constructions for repairs & small uses

Cement product

Manufactures, bulk buyers

Market of SCL is also segmented according to demand

Market Sh. Segmentation

50% Government of India

30% Export Market

20% Scattered Market

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5-PRICING POLICY

Price means the value of the product in terms of money. Some times

price is the dependable factor for the success of the product of failure. It is

difficult to sale a product with high price and if product is said at low

prices it will affect the profitability, more over the main objective of the

firm, that is to earn a profit very much depends upon the correct price

decision.

The SCL has followed such a pricing policy, which can promote the

scales considerably while fixing the right price the company takes into

account cost of production. Prevailing market trend pricing policy of

competitors etc.

SCL has adopted flexible and reasonable pricing policy. At the end

of every month, directors of each zone, marketing officers meet together at

the marketing office. They check the suitability of the current price in the

right of current degree of competitors, changes in demand advertising and

other services etc. then thy fix up their product price.

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6-CHANNELS OF DISTRIBUTION

Channel of distribution means the proper way through which the

goods & services can reach to customer. In this channel-authorized dealer,

retailer, wholesaler, distributors, stockiest etc are included.

In the SCL channel of distribution is very short and simple. The

channel of distribution can be understand by the following.

Company

Distributors/Stockiest/Dealer

Sub Dealers

Customers

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7-SALES PROMOTION

The meaning of sales promotion is clear from name itself sales

promotion means to increase or to promote the sales.

In this competitive market sales promotion is necessary for boosting

up the sales and contribution more in market share. In sales promotion

customer is attracts by some special incentive like advertising and

publicity, personal salesmanship etc.

Company promotes the sales at two levels, which are as follows: -

(i) At Dealer level: -

At this level to promote the sales company gives many incentives

they give the target of selling to the dealer for this they give some gifts.

They also organize the meeting of dealer to increase the sales.

(ii) At Customer Level: -

Customer is important for any business SCL issues some scheme,

gifts and other incentives to attract the customers, SCL knows very well

their consumer to get the retailer market recently they introduced “Chottu

Hathi Cement” in packing of 3 or 5 kgs.

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8-MARKET RESEARCH

The American marketing Association has defined marketing

research as “The gathering recording and analyzing of all facts about

problem relating to the transfer and sale of goods and services from

producers to consumers”. Marketing research involves a study of

consumer performances, habits and attitudes. It helps us to decide how

market operations should be directed. It also involves an examination of

trends, so that its findings indicate, the future pattern of the market and

assist in shaping marketing policies.

In SCL, regular survey of dealers and customers are done to identity

the need and expectation of the customer to mark positive and negative

points of their marketing strategies and products. By this way, company

comes to know about the marketing problems and remedies of it.

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9-COMPETITORS

In the world of today, there is a competition in each and every

business. Hence, the firm first objective is not to make profit but to survive

in the market. Competitors are those who sell the goods and service of the

same and similar description in the same market.

According to Philip Kotler “The best way for a company to grasp

the full range of its competitors is to take the view point of buyer, what

does a buyer think about that which eventually leads to purchasing

something.

Main competitors of SCL is as follows: -

1. GUJARAT AMBUJA CEMENT

2. ADITYA BIRLA’S KAMAL CEMENT

3. L & T CEMENT

4. TATA SUCH CEMENT

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10-ADVERTISING

The American marketing Association has defined advertising as “

any paid form of non personal presentation and promotion of goods,

services or ideas by an identified sponsor”

SCL advertise their product by the means like newspaper, wall

paints, and hoarding etc. with effective slogans, to stand first in the market

and increase popularity SCL has adopted many advertising media.

SCL advertise by distributing gifts to masons, contractors etc. i.e.

actual users of cement.

SCL celebrate THE HATHI UTSAV on the festivals like Navratri.

Company distributes audiocassettes of Ras Garba free of cost and in that

cassettes slogans are also recorded for advertisement.

SCL uses so many other advertising media also

1. Newspapers

2. Magazines

3. Radio

4. Wall Paintings

5. Hoardings

6. Audio Visual Advertisement

7. Gift Articles

8. Posters

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63

CONTENT

Sr. No. Particular Page No.

1. INTRODUCTION 65

2. ORGANSISATION STRUCTURE 66

3. FINANCIAL PLANNING 67

4. CAPITAL STRUCTURE 68

5. RATIO ANALYSIS 69

6. MANAGEMENT OF FIXED ASSETS 75

7. MANAGEMENTOF WORKING

CAPITAL 77

8. LEVERAGE ANALYSIS 78

9. PROFITABILITY & DIVIDING 80

DISTRIBUTION

64

1-INTRODUCTION

Finance department is very important part for every organisation.

Success of any business depend upon the finance. It we say is the business

is the body then finance would be blood. As the blood is required to live a

body then to run the business finance plays important role.

Someone rightly defines “if you have money, and you manage it

properly, you will make more money” this means management is

necessary for any industry.

In economic activity finance is essential part. Finance management

is concerned with controlling and planning of the firms financial resources.

According to Joseph and Massie, “financial management is the operational

activity of a business that is responsible for obtaining and effectively

utilizing the funds necessary for efficient operations.

So we can say that finance is the central point of any organisation.

65

2-ORGANISATION STRUCTURE

SCL has kept separate department of finance. The organisation chart

of finance department of SCL is as follows: -

Vice President (finance)

General Manager (finance & A/c)

Dy. General Manager (finance & A/c)

Sr. Manager (Accountant)

As. Manager Sr. Officer Dy. Manager

(Finance) (Costing) (Finance)

Sr. Officer Gr. Officer Cashier

(Finance) (Costing)

Ass. Officer Ass. Officer

66

3-FINANCIAL PLANNING

Financial planning is very necessary for smooth running of business.

Business small or large cannot be carried on successfully without proper

arrangement of capital in the finance planning not only the planning is

done for spent of money but also planning is made for sources of finance

and fund. In all the organisation finance planning policies of finance,

delegation of finance are planned.

SCL plans finance as follows

1. Determining Financial Objectives

SCL firstly determines for how long period the finance is requiring

i.e. for short term of long term objectives. By considering the financial

objective, SCL makes a determined effort to arrange the necessary funds at

proper time, which is necessary for the business.

2. Formulation Financial Policies

After words, SCL formulates financial policies to be followed by the

planners to achieve the financial objectives.

3. Developing Financing Procedure

Developing financial procedure relates to the control and

administrative of financial activities. SCL subdivides financial activities

and delegates authorities to subordinates to perform such activities.

4. Reviewing Financial Plan

SCL reveals plan for time to time in the light of changing economic,

social and business environment.

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4-CAPITAL STRUCTURE

Capital structure is the important aspect of the financial

management. Accordingly to Gerstenberg. “The make up of firm’s

capitalization”.

The company procures funds by issuing various types of securities

i.e. ordinary, shares, preference shares, bonus and debentures.

In broader sense, capital structure includes all the long term capital.

It decides the proportion of funds to be raised by issue of ownership

capital i.e. ordinary share capital and preference share capital and the

amount to be raised by borrowings. i.e. debentures, bonds, public deposits

etc. taking into account the cost of capital i.e. (Dividend or interests) and

its impact on income and stability of the company.

Primary duties are original and first hand information. Previous data

means those data, which have to analyze, and second one it means

secondary data are directly analyzed to some extent. Thus, secondary data

are second hand information.

We got information at general data about the company.

Generally even company would by maintaining optimum capital

structure which means an idea combination of borrowed and owned capital

that may attain the marginal goal. I.e. maximum the market value of share

of minimization of cost of capital.

68

SCL framed its capital structure as follows: -

Particulars Amount (in lacs)

Share capital 4,247.26

Reserve & Surplus 8,685.88

Secured loan 26,894.34

Deferred Payment Credits 594.60

Unsecured Loan 244.00

TOTAL 40,665.68

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5-RATIO ANALYSIS

Ratio is the measured of relation between two accounting figure. We can know the financial position of the firm and also the performance can be measured with the help of the ratios.

Let us know the finance position of the SAURASHTRA CEMENT LTD.

CURRENT RATIO

Current Ratio = Current Assets / Current liabilities

For the year 2003 = 8556.43 / 15952.44

= 0.536 : 1

For the year 2002 = 8303.61 / 19091.43

= 0.43 : 1

Comment : It is generally between the 2 : 1 ratio shows a comfortable working capital positions. The current ratio of SAURASHTRA CEMENT LTD. for 2003 & 2002 is 0.53 & .43 respectively. This indicates that the financial position of the company is not so good. But the ratio of 2003 is greater than 2002.

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LIQUID RATIO

Liquid Ratio = Liquid Assets / Liquid Liabilities

Where,

Liquid Assets = Current Assets - Inventories

For the year 2003 = 8556.43 - 2420.35

= 6136.08

For the year 2002 = 8303.61 - 2406.86

= 5896.75

Liquid Liabilities = Current Liabilities - Bank Overdraft

For the year 2003 = 15952.44 - 65.13

= 15887.31

For the year 2002 = 19091.43 - 89.57

= 19001.86

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Liquid Ratio

For the year 2003 = 6136.08 / 15887.31

= 0.38 : 1

For the year 2002 = 5896.75 / 19001.86

= 0.31 : 1

Comment : Liquid ratio indicates the cash available to meet the

immediate payments. The ideal liquid ratio is 1 : 1. The liquid position of

the SAURASHTRA CEMENT LTD. is not so good but the position in

2003 is better than in 2002.

FIXED ASSETS TURNOVER RATIO

Fixed Assets Turnover Ratio = Sales / Net Fixed Assets

For the year 2003 = 20337.35 / 36962.40

= 0.55 : 1

For the year 2002 = 21845.61 / 41108.61

= 0.53 : 1

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Comment : This ratio indicates the conversion of fixed assets into sales

during a year. The ratio of SAURSHTRA CEMENT LTD. indicates that

for 1 unit of sales 0.55 unit of fixed assets is consumed in the current year.

WORKING CAPITAL

Working Capital = Net Sales / Net Working Capital

For the year 2003 = 20337.35 / 7396.01

= 2.74 : 1

For the year 2002 = 21845.61 / 10787.82

= 2.02 : 1

Comment : From the above calculation it can be seen that for 1 Rs. of

sales 0.36 Rs. and 0.49 Rs. of working capital is required.

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DEBT EQUITY RATIO

Debt Equity Ratio = Total Long Term Debt / Share Holder Funds

For the year 2003 = 20608.53 / 12933.14

= 1.59 : 1

For the year 2002 = 18609.74 / 12645.14

= 1.47 : 1

Comment :The debt equity ratio is determine, how to ascetain the soundness of the long-term financial policy of the company.

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6-MANAGEMENT OF FIXED ASSETS

In all business there are two types of assets one is fixed and other is

current assets. The assets which can be transferred into cash within year,

are called current assets. And assets which cannot be transferred into cash

within year are called fixed assets. As the time passed the values of fixed

assets is described as the company depreciates them. The amount of fixed

assets is very large so they must be invested with well planning and great

thinking. Fixed assets generally, consist of land, building plant &

machinery etc.

SCL maintains proper records showing particulars about

quantitative details and condition of fixed assets. In annual report of SCL

every year creditors give report about the condition and quantitative details

of fixed assets. And whenever auditors found any dissatisfaction about it,

they inform the company and company takes necessary steps to remove

dissatisfactions.

As on 30th June 2004 SCL shows balances of its Fixed assets are as

follows: -

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Fixed Assets Gross Block Depric Net Block

Freehold land 172.82 -- 172.82

Buildings 1337.42 632.52 1304.86

Leasehold land 21.45 -- 21.45

Jetty- civil work 1781.35 320.55 1460.80

Railway sidings

Weigh bridge 247.71 166.93 80.78

Water supply

Installations 185.08 139.70 45.38

Electric installation 186.50 867.43 947.07

Plant & Machineries 31689.53 14084.32 17605.21

Rolling stack &

Locomotive 61.50 41.53 19.97

Furthur & office

Equipments 161.41 769.45 391.96

Ship, Motorcars &

Trucks 456.01 242.58 213.43

Total 39530.78 16227.89 18725.22

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7-MANAGEMENT OF WORKING

CAPITAL

If the fixed assets are bond of the company then current assets

would be circulating blood of the company.

Current assets mean the assets, which can easily be transferred into

cash with in the year. In company number of transactions are made i.e.

related with the current assets for example purchasing of raw material,

salary, wages etc.

There are two concept of working capital is as follows.

1. Gross Concept

According to gross concept the firm’s total investment in

current assets.

2. Net Concept

According to net concept excess of current assets over the

liability.

The management of working capital of SCL limited. Is done as

follows: -

1. Inventory Management

In Saurashtra cement ltd. the record of investment is kept

separately. In this record the receipt of inventory, uses of inventory and out

department to control the inventory.

2. Cash & Bank

In SCL, to manage the cash & bank there is to separate

department but this work is done by the finance manager.

77

3. Receivable

Now days credit policy is exit every where. In SCL they also

keep record of credit sales separately.

8-LEVERAGE ANALYSIS

The dictionary meaning of leverage refers to “an increased means

for accomplished some purpose”. Now a days the term leverage has

special meaning. It is used to describe the firms ability to use fixed cost

assets or funds. To magnify their return to its owners. Christy and Roden

define leverage as the tendency for profits to change at a faster rate than

sales.

There are fundamentally two types of leverages.

1. Operating Leverage

2. Financial Leverage

1. Operating Leverage

The operating leverage may be defined as “ as the firm’s

ability to use fixed operating costs to magnify the effects of changes in

sales on its earning before interest and taxes (EBIT). The operating

leverage takes place when a change in sales produces a greater change in

EBIT.

Operating leverage results when changes in value of sales produces

a wide fluctuation in the operating profits of the firm.

78

The firm is solid high degree of operating leverage when employs a

greater amount of fixed cost and a smaller amount of variable cost. On the

other hand, a firm will have a low operating leverage when it employees a

great amount of variable cost and a smaller amount of fixed costs.

Operating Leverage : - Contribution

EBIT

Degree of Operating leverage: - Percentage change in EBIT

Percentage change in sales

SCL suffers the looses, so it is not possible to calculate operating

leverage.

2. Financial Leverage

Financial leverage results from the presence of fixed financial

changes in the firm’s income statement. These fixed changes are to paid

regardless of the amount of EBIT available to pay them. Financial leverage

is concerned with the effects of changes in EBIT on the earnings available

to equity share holders.

In simple words, the effects on earning by the use of fixed cost

security (Preference SH & Deben) are called financial leverage.

Financial leverage : - EBIT

EBT

Degree of financial leverage : - Percentage change in EPS

Percentage change in EBIT

79

SCL suffers the losses, so ti is not possible to calculate financial

leverage.

9-PROFITABILITY & DIVIDENT

DISTRIBUTION

The main object of any company or business unit is to earn profit. In

the joint stock company when company makes profit this profit is divided

into the owners i.e. share holders.

In the presence it is not wrong to say that cutthroat competition

prevails in the cement industry. Because government provides various

incentives to the new entrepreneur who is interested to establish cement

industry.

As far as Saurashtra cement ltd. is concerned the plan is old so the

cost of production is very high and because of competition they follow

demand and competition. Pricing policy moreover marketing is not so

good they suffer from the competitive so they are marking loss.

Saurashtra cement ltd. has not made any profit for the last five years

so there is no distribution of dividend.

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81

RESEARCH METHOLOGY

Research is the application of human intelligence in systematic

manner to a problem. According to C.A. Moster “ Research includes a

study of human group relationship.

According to P.V. Young, we may be define, research methodology

as scientific undertaking which means of logical and systematized method,

aims to discover new facts or variety old facts and to analyze their

sequence interrelationship case of explanation and natural terms which

govern them.

Research methodology means the way through which a research

progress or a job data collecting goes on. There are so many types of

research methodology. Some of them are as follows: -

Questionnaires

Checklist

Observation

Interview

Record

Participation

Technical conferences

Out of them we prepare the method of questionnaires.

Sources of Data

There are different sources of collection of data. Before deciding the

sources to collect the data, one has to make a proper planning of

investigation and purpose of inquiry. Following are the sources of

collection of then

82

Sources of Date

Internal sources External source

Primary sources secondary source

Internal Sources

Such type of data’s are always available in the books of organisation

e.g. sales production, salary, wage, dividend profit etc.

External Sources

When the data are collected from the outside the organisation

without the support of records of the company, they are called external

sources. The external sources. The external sources fall into two

categories.

I Primary data

II Secondary data

Primary data are original and first hand information. Primary data

means those data which have to analyze and second one it means

secondary data are already analyzed in some extent. Thus, secondary data

are second hand information.

We got information at general data about the company.

83

84

FUTURE PLAN

The future plan means the project that will be undertaken in future.

In other words it means the object. I.e. determine now and gets its result in

future.

Now a days the company suffers from the losses. But it does not

mean that there is no chance of future progress.

As we all know that the cement is a basic necessity of and

constructional activity. The need or demand of cement increases day by

day from this angle we may say that SCL would have better prospect in

future. Also SCL exports its products in many foreign countries. It is

considered that SCL enables to earn precious foreign exchange which

makes its future bright.

From seeing the above we can say that company’s future is bright

and its market will increase.

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86

CONCLUSION

Conclusion is the final touch or finishing line of the whole report

and for the visitor unit. It was great and memorable visit. Which imparted

a lot of knowledge.

The SCL is the company which suffers losses since few years. It

doesn’t mean that the working condition of the company is not good.

I found that there is a good administration in the firm and good

utilization of total capacity. Its personal department suggests that they are

aware from the value of personal and so manage them very systematically.

Its production department makes determine effort to maintain the best

quality of the product. Marketing department always shares beyond doubt.

We can say that financial department works so well bet finance position of

the company is not so good.

Now a days company suffers losses due to many reasons. But it tries

to progress slowly and gradually by reducing the losses. We may say that

the present working condition of the SCL is well.

I will give them all my heartiest best of luck for their future.

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88

BIBLIOGRAPHY

PERSONAL MANAGEMENT

C.B. MEMORIA

MARKETING MANAGEMENT

PHILIP KOTLER & KINGS

FINANCIAL MANAGEMENT

I M PANDEY & BILL SHAH

ADVANCE ACCOUNTANCY

M. RADHASWAMI &

S. MAHESULAMI

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