Christ REPORT - For Merge

8/6/2019 Christ REPORT - For Merge

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Organization Structure

Training

ON

BINANI CEMENT

By

Atul Agarwal

1 MBA L

Christ University

1021209


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b

History

Binani Industries Limited (BIL) is all set for growth. From the time of its inception, BIL has been

an ambitious organisation and this attribute has helped it grow at a fast pace.

The BrajBinani Group traces its beginning to 1872, when Seth PragdasBinani, a trader in metal

utensils, began an enterprise with his son Seth Mathuradas to engage in the import and expor

of metals. The enterprise continued to grow from strength to strength. The year 1941 marke

an important phase in the evolution when Seth Mathuradas' son Seth Govardhandas made a

bold, but significant, move from trading to manufacturing.

Binani Metal Works got rolling with a plant at Howrah. Taking on the mantle from his father, it

was during the reign of son GhanshyamBinani, that Binani Zinc was born. Leading from the

front, the Company shifted its focus towards R&D thus modernising and expanding its capacity.

But it was with the advent of Mr.BrajBinani and his dynamic leadership that the Company truly

began to prosper and exploring uncharted horizons.

Following the restructuring of the BrajBinani Group, from 1996-2004,Binani Industries Limited

(BIL) was founded to serve as the holding Company for Binani Cement Limited, Binani Zin

Limited, Goa Glass Fibre Limited & BT Composites Limited. Today, the BrajBinani Group is a

multidimensional business conglomerate, with an asset value of Rs. 1968 crores, a turnover o

Rs. 2302 crores and a 1750-strong work force. And with a clear focus to adapt and execute the

best, the BrajBinani Group has not only attained major internationally accepted certifications

for its various ventures, but also has extended its reach well beyond Indian borders - to UAE,

China and is in the process of expanding into Africa and other countries.

BIL owes most of its success to its simple yet potent philosophy - honesty, transparency,

efficiency and its unflinching commitment to the customers, coupled with an inherent

determination to succeed. It is this vision that has dissolved all boundaries and has set BIL on

the never-ending path of growth and evolution


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Profiles of the product

BIL's epic story has been a unique compilation of the success stories of its four subsidiarycompanies- Binani Cement Limited, Binani Zinc Limited, Goa Glass Fibre Limited and BT

Composites Limited. It is moving ahead full stream in the direction of development and these

companies have indeed formed the pillars of strength of the BrajBinani Group.

NOW TALKING ABOUT THE BINANI CEMENT

PROFILE OF BINANIS CEMENT PRODUCTS

It consistently produces excellent quality cement having low alkali, negligible chloride, and low

heat of hydration. It produces following types of cement.

Sr.No

Type of Cement Grade IS Code specification

1 Ordinary Portland Cement 43,53 IS 8112:1989

IS 12269:1987

2 Portland Pozolana Cement IS 1489 : Part I :1991


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MISSIONS, OBJECTIVES AND

STRATEGIES OF ORGANISATION

Mission

1) To achieve leadership status in the core sector, across the world.

2) To employ frontline technologies to meet the highest global standards in products and services

3) The set benchmarks in manufacturing, while adhering to the most stringent environmental

rules.

4) To be a customer-first, quality obsessed, socially sensitive corporate entity

5) To achieve breakthroughs in manufacturing based in intensive R&D coupled with innovative

thinking

6) To assure the well-being of our people, living by such values as concern, empathy andcommitment

OBJECTIVES

1) to provide best quality cement in required quantity to the customers.

2) To enhance the share holder values in the company by making profits.

3)To satisfy the internal and external customers.


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ORGANIZATION DESIGN AND STRUCTURE


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i)ORGANISATION HIERARCHY

Management Comm

ttee

membe

s(Worksmanager)

Ass

stant VP/GM/Dy GM

Senior Manager/ Manager/

Dy Manager

Senior Engg/ Engg, Senior

Officer/ Officer

Work Men- Grade1,2,3,4


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ii)STRUCTURE OF COMMERCIAL DEPARTEMENT


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POLICIES AND PROCEDURES

FOLLOWED

Binani Industries Limited (the Company) is committed to conducting its business in accordance

with applicable laws, rules and regulations and the highest standards of business ethics and ethical

conduct.

This Code of Conduct (Code) reflects the business practice and principles of behaviour that

support this commitment. The Board of Directors (the Board) is responsible for setting the

standards of conduct contained in the Code and for updating these standards as appropriate to

reflect legal and regulatory developments. The Code is intended to provide guidance and help in

recognizing and dealing with ethical issues and to help foster a culture of honesty and

accountability.

Some OF THE POLICIES ARE:

(i) Represent the interests of the shareholders of the Company;

(ii) Exhibit high standards of integrity, commitment and independence ofthought and judgement;

(iii) Dedicate adequate time, energy and attention to ensure the diligent

performance of his/her duties including make all reasonable efforts to attendBoard or committee meetings; and

(iv) Comply with every provision of this Code.

(v) In marketing our products ,we deal with cash only .

(vi) We maintain a Transparent policy for all our customers .

(vii) We deal fairly with the Companys customers, suppliers, competitors, officersand employees.


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FUNCTIONS OF VARIOUSDEPARTEMENTS

1) HR &OHS DepartmentTheHR &OHS Departmentof Binani Cement has two main functions- Human Relation

Management and Occupational Health Service.

The major functions of the HR department in Binani Cement are divided into:

Industrial Relation:- Industrial Relation deals with trade union management, contract labour

management, compliance with statutory requirementsetc. If a worker has a problem, he has

to first give a complaint to the trade union leader. If theproblem is not settled there, hecan

move to the next level i.e.concerned department head and then to the HR Manager, Labour

Court and finally theSupreme Court of India.

Recruitment, Training, Appraisal :- For a new vacancy in thecompany the first preference

goes to thecompanyemployees. Through internal notification theeligibleemployees are

given a chance for writing thepromotion test, or internal transfer. Promotion of internal

staff will be based on performance. If there are no eligiblecandidates inside, then the

company goes for recruitment from outside

Welfare:-All statutory functions according to the Factory Act like canteen, rest rooms,

drinking water, health centre etc are provided. Apart from these employees are provided with

uniform, footwear, umbrella, soap, towel, shoes, transportation etc are provided by the

company. Recreation room is equipped with various indoor games like table tennis, chess etc.

Various cultural events are held. Festivals like Diwali are celebrated where various

competitions for the staff and children are held.

Safety: The main objective of the department is to ensure safety activities and ensuring

statutory compliance, development of safety systems and implementation, taking care of the

housekeeping activities, ensuring conformance to safety regulations, accident Investigation

Analysis and remedial measures etc.


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2) COMMERCIAL DEPARTMENT/ MARKETING

PURCHASE

All the purchases in the company has to move through the purchase department be it raw

materials or spare parts. A purchase requisition form is generated for each purchase.In case

the amount and cost associated with the material is large, the purchase department invites

quotation from the suppliers by publishing the requirement in the newspaper. After

negotiations, the supplier who agrees to provide the material at minimum cost is given the

contract. Most of the materials are insured through the New India Assuarance Company.

PROMOTION

Promotion of the product does not only take place through media or by any other means. But

Promotion of products in Binani CEMENT takes place verbally through customers. A

potential customer can tell his friends and acquaintance about the quality product that they

get from Binani CEMENT.

Its interesting to know that BINANI CEMENT is promoted by AMITABH BACHHAN

SALES:

Sales are done through variouschannels. Thesechannels includeSales through dealers,

distributers, direct selling and indirect selling.BINANI CEMENT deals only in cash no credit is

accepted.Sales are also carried out through sales agents.Both thecompany and the agents

keep in constant touch with thecustomers. Customer feedback iscollected everyyear

towards theend of March and it isprocessed by June. Thepurpose of this is to improve the

quality ofcustomer service by2% and to reduce thecomplaints by 5% annually. The

company has been successful in achieving its objectives and thecustomers are happy with

thequality ofproducts, services and handling ofcustomer complaints.


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C) INSTRUMENTATION DEPARTMENT

Instrumentation maintenance of the plant

Preventive Maintenance

Reactive Maintenance

Modification/Improvement aspects (Minor)

(Major improvements/modifications done by Maintenance Dept)

Indigenization of imported instruments

Finding substitutes by developing similar models

Reduction in cost factor,

General Administration

Automation (Part of maintenance)

Budget Preparation (for management systems)

Log Report (Log report, done manually on a daily basis)


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FINANCE DEPARTMENT

The companys finance department was computerized in 1983. The major functions of the

department are:

Purchase bill accounting:All the payments related to purchase are dealt here. It makes use of

computerized cheque leafs issued from the bank to make payments to the suppliers, agents

etc.

Sales accounting: Agents accounts related to stationary, printing, transportation etc are

maintained here.

Stores accounting: It deals with the reception, issue and storage of materials.

Raw material accounting: The raw material imported from various places comes by ship to

the port. The material is unloaded using barges to a space that is rented by the company for

temporary storage of the material. The charges for the whole activity include the cost of the

material which is based on dispatch money, customs duty, handling charges at the dock plus

the rent to the port.

HRD Package: The main purpose is to take care of the salary payment to the employees. It

makes use of a payroll package in association with the HRD.

Corporate office setup: It takes care of the cash and bank operations and the statutory

remittances like the sales tax, income tax, ESI, PF etc.

Auditing: Auditing includes Annual Financial audit, Income Tax audit, Cost audit, Sales Tax

audit. Each serves different purposes. It is done from professionals outside the company but

monitored by the finance department. Internal audit is done on contract basis. Finance

department helps them in giving the necessary information and data.

Budgeting: Budget allocation starts with the marketing department. The marketing

department estimates the sales for a particular year. Based on that the budgets of the other

departments are allocated as of how much raw material is to be purchased, how much should

be spent on maintenance research etc. About 60% of the total cost is allotted to raw material,

20% to electricity and 20% to labour and administer


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RESEARCH $ DEVELOPMENT DEPARTMENT

Research & Development has three sections

1. Development Section: This sections deals with projects for process modifications and

improvements and trouble shooting. There is no fundamental research going on in this

department. Only research related to process improvement are carried out here. Another

major function is the evaluation of raw materials, and its inspection for suitability in process.

2. Assay Section(Quality Control Section) : This section deals with the analysis of raw

materials, finished products etc. Analysis has two main objectives-commercial payment and

analysis for process.

3. Environmental Section: This section deals with the environmental aspects like getting

approval from the pollution control board, inspections, analysis, monitoring and reporting to

pollution control board.


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SWOT ANALYSIS

Identification of the threats and opportunities in the environment and the strengths and

weakness of the firm are the factors which determine the course of action to ensure growth

of the firm.

STRENGTHS

Binani CEMENT has always been in the forefront of the technical up gradation to match

the industry standards and has emerged as the NO.1 in terms of customer delight with

unwavering commitments and focus on quality.

Dedicated and recognized in-house R&D cell has provided necessary technical support

right from the basic engineering to the quest for operational excellence.

The competent managerial staff and workers in the company help in the smooth

functioning of the company.

First to install high productivity energy saving jumbo cell house technology.

WEAKNESS

Small unit compared to world standards.

The other weakness can be that BINANI cement deals only in cash, so in cases it loses its

potential customers sometimes.

OPPORTUNITIES

Strong customer base and brand image in market.The company has diversified into cement manufacturing in north India and a glass

factory in Goa as independent groups. Hence there is much scope for product

diversification .

THREATS

Competition from JK cement and Ultratech Cement.

Limestone prices on the downtrend compared to last years.

Proposed steep hike in power tarrif in state.

Non Availability of concentrate.

Reduction in import duty.


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Keys Result Areas(KRAs) Of The

Organization

1) To utilize the full capacity ofplants.

2) To createstrong band equity in themarket

3) To enhance theprofit of the organization in themarket.

4) To explore the overseaspossibility for setting of new plants.

5) To satisfy itspotential customers.

Key Result Activities

1) To employefficient people in the organization so that theycan be the

pillars in the organization growth. 2) To promote the brand in an effective and efficient manner. For example :

endorsement of AMITABH.

3) To get thepremiumprice in themarket.

4) To ensure that thequality of theproduct issupreme in itsprice range.


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Organisation design factors andapproaches

For a organisation to work properly it isvery important that it has a proper

organization structure. A good structurecan ensure organisation growth

whereas a bad structure or design can lead to its downfall.

Some of the design factors and approaches of binani cement are :

1) Best qualityproducts : by using the best qualityproducts weensure

that our customers are fully satisfied.

2) Ontime delivery : for company growth it isvery important that it

delivers themanufactured products on time ascommitted.

3) Rational pricing : by rational pricing wemean the best pricepossible

for both company and customer.

4) Transparent policy : We usesame and transparent policies for all our

customers ie our policies does not change with customer to

customer.

5) Profitability to dealers/retailers : it isvery important that

dealers/retailers areprofited and promoted to sell our products

because they are the onlypersons who deals with customers directly,

so without profiting them organization cannot think of itsprofit.


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Organisation Structure Factors

ORGANISATION STRUCTURE

The organisation must have a proper hierarchical structureso that each person is aware of his own

responsibilities in the organisation. Thestructureshould beso transparent that everyperson knows

the responsibility of his immediate head and tail.


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Significant factors for success

The core strategy is based on consolidation and sustainable growth. Theinvestment strategy of the company aims at becoming a low cost

producer in all its business and in upgrading technology to meet stringent

product quality requirements. Quality is the manthra of the organization.

Ever since its inception it has been in the forefront of providing quality

products and services to its customers with equal emphasis on

environmental pollution control and energy conservation. It maintains

commendable grade of quality in all levels of its operation and high level

of its productivity by adaptation of state of art technology. The customer

centric manufacturing and satisfaction are the main forte of the quality

management satisfaction.

The company interact with its customers to continuously asses their needs and

expectations and ensure total customer satisfaction by maintaining consistentquality of its products and services with the involvement of its employees.

The company promote transparency and openness in its relationship with its

employees and the community and treat them in a fair and respectful manner


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Product Promotional Measures

Binani is onesuch player who has taken up branding in a seriousmanner. Thebrand is relying on thecelebritypower to build itsequity.Binani Cement used

thecricketing master Sunil Gavaskar to promote its brand during the launch

phase in 1997. After a long period ofsilence, the b rand began to invest heavily

in brand promotion from2007.

The brand chose theever green Amitabh Bachchan as the brand ambassador in

2007. There was lot of buzz during the time big B waschosen to endorse a

cement brand.

Binani Cement started using Big B in the television commercials in a dignifi ed

manner. This is one of those brands that tried to make use ofBachchan's

charisma to the brand's advantage. The ads were laden with subtle humor and

according to the reports, Binani cement'ssalessurged during thesecampaigns.

The brand did a smart move by taking advantage of the fact that both the

brand and the brand ambassador namestarts with B. Thecement brand began

to call itselfBig B.While the brand gains by the association, there weremanycritics who argued that now Big B will be associated with cement rather than

celebrity.

Binani cement has the tagline " Sadiyon Ke liye" which means " for centuries ".

Although the ads featuring Bachchan was well made, I felt that it lacked a

punch. The brand lacked a powerful message.


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Training Measures

The Company follows different training schemes for different category ofemployees.

Management Training Programs: Management staffs are given one year

training after which they enter probation for the next six months. During the

training program, they are given a stipend of Rs.7000 per month. After the

probation they are absorbed into the respective department.

Workman Training: The workmen are given a training for 2 years in which

they are given a stipend of Rs.2000 per month the first year and Rs.3000 the

second year. After the probation, are absorbed into the respective departments.

Apprenticeship training: The Company facilitates apprenticeship training

for one year as per the Apprenticeship Act. It is categorized into three different

types- Graduates, Technicians and trade Apprentice. Graduates get a stipend of

Rs.1930, Technicians who are Diploma holders get a stipend of Rs.1400 and

Trade apprentice (ITI holders) get a stipend of Rs.800.

Paid Trainees: As a welfare function, children of employees holding

professional degree are given training in the company with a stipend of

Rs.1500. But it is not necessary to absorb these candidates into the company.

Unpaid Trainees: Diploma holders are given training, but they are not paid

any stipend. At the end of the training program a company certificate is issued.


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Cross Functional Exchange Program: This facility is also for the

management staff to get familiarize with the departments apart from the

department in which he works. It is a 4 month training program. It is intended to

enhance multiple working skills in a person.Knowledge and Skill Up gradation Program: This is a program in which high

grade employees belonging to the non-management staff are trained and

promoted to lower level management staff.


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System Followed for Purchase Of

Materials

First the respective department employee generat es a query regarding its

requirement. Thisquery is then sent to the Respective head of the

department. If thequery is been accepted by the head , then thequery is

forwarded to the Purchase department. Now thepurchase department asks

for thequote and when thequote is finalised then thepurchase is done. And

when thepurchase is done it is then transferred to the respected department.


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HRD Measures

Welfare:All statutory functions according to the Factory Act like canteen, restrooms, drinking water, health centre etc are provided. A part from these

employees are provided with uniform, footwear, umbrella, soap, towel, shoes,

transportation etc are provided by the company. Recreation room is equipped

with various indoor games like table tennis, chess etc. Various cultural events

are held. Festivals like Diwali are celebrated where various competitions for the

staff and children are held.

Employee Motivation: To motivate the employees Best PerformanceAward

is given to the best employee.

Health Center: Specialist Medical Camp is held every month where free

consultation is provided for the employees, their family and local residents. A

compulsory medical checkup for all the employees is held annually.

Safety: Themain objective of the department is to ensuresafety activities and

ensuring statutory compliance, development of safety systems and

implementation, taking care of the housekeeping activities, ensuring

conformance to safety regulations, accident Investigation Analysis and

remedial measuresetc.


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Performance Appraisal

The main objective of the appraisal is to identify if employees need any further training,

identify the eligible people for promotions and salary increment. In case of trainees under

probation, monthly assessment is done where the quality and quantity of work, attendance,

relationship with the other employees etc are assessed. In case of permanent employees a

closed appraisal system is adopted where only the respective department head and the HR

department is present.


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Binani cement uses 360 degree appraisal system

The highlights of this type ofsystem are:

360 degree feedback is the most comprehensive and costly type of

appraisal. It includes self ratings, peer review, and upward assessments;feedback is sought from everyone. It gives people a chance to know howthey are seen by others; to see their skills and style; and may improvecommunications between people.

360 degree feedback helps by bringing out every aspect of an employee'slife. Cooperation with people outside their department, helpfulness towardscustomers and vendors, etc. may not be rewarded by other types ofappraisal. This system also helps those who have conflicts with theirmanager.

360 degree feedback generally has high employee involvement andcredibility; may have the strongest impact on behaviour and performance;and may greatly increase communication and shared goals. It providespeople with a good all-around perspective.


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Some suggestions Given by me To the

Organization

1)To start the advertisement campain again.

2)They have largemarket share in North theyshould

expand it to other parts also.

3)Exploremore overseasmarket.

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