Organisational Study of Birla Corporation Ltd. free essay sample

ORGANIZATION STUDY OF BIRLA CEMENTS(SATNA DIVISION) Submitted in partial fulfilment of the requirements for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION of the Mahatma Gandhi University. Submitted by VISHNU VB 10313 Under the guidance of Mr. Umesh Neelakandan October 2010 DC School of Management and Technology Pullikkanam, Vagamon, Idukki 685503 Tel: 04869 – 248322, 248323 DECLARATION I hereby declare that the organization study of ‘Birla cements(SATNA Division)’ submitted to Mahatma Gandhi University is a record of the original work done by me under the guidance and supervision of Mr. Pramod Kumar and no part of it has been submitted earlier for any Degree, Post Graduation or similar of any other university or institution. Place : PullikkanamSignature : DateName : VISHNU VB CERTIFICATE This is to certify that the organization study titled †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. is a bonafide record of the work done by Mr†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 3rd semester MBA Student of DC School of Management and Technology, submitted in partial fulfilment of the requirements for the award of the Masters Degree in Business Administration of Mahatma Gandhi University , Kottayam, Kerala. Faculty Guide Principal Date : Place : Pullikkanam ____________________________________________________________ ____________ Examiner IExaminer II Signature Name Date Signature Name Date Certificate Acknowledgement I feel great pleasure in expressing my sincere gratitude to all those personalities without whose help this work couldn’t reach its completion. I acknowledge my sincere and profound gratitude to my guide Sir, UMESH NEELAKANDAN for providing me necessary formal sanction required for carrying out the study and also for his valuable guidance at each and every stage of the project without which this project wouldn’t have been have been a reality. I express my deep sense of gratitude to SUJITH TIWARI,HR Manager, Birla Corporation ltd, Satna, Madhyapradesh for giving me an opportunity to conduct the study by giving me valuable information and suggestions. I express my deep sense of gratitude to all the employees in the organization for giving their valuable support for the study. I would like to extend my sincere gratitude to all teaching, non teaching and library staff of DCSMAT for their constant support and co-operation Last but not least, my special debt to all respondent who have replied me to bring out this work successfully Above all, I thank God mighty for his grace, mercy and unseen guidance throughout without which this project would not have been possible. VISHNU VB INDEX 1DECLERATION 2ACKNOWLEDGEMENT 3INDEX 4CHAPTER ONE, INTRODUCTION7-8 51. 1IMPORTANCE OF STUDY9 61. 2 OBJECTIVES OF STUDY10 71. 3 METHODOLOGY11 81. 4 LIMITATIONS12 1CHAPTER TWO INDUSTRY PROFILE 122. 1 CEMENT INDUSTRY 132. 2 GLOBAL SCENARIO 152. 3 INDUSTRY STRUCTURE 162. 4 MAJOR DOMESTIC PLAYERS 172. 5 TOP TEN COMPANIES IN INDIA 18CHAPTER THREE COMPANY PROFILE 193. 1 BIRLA CORPORATION LTD 203. 2 HISTORY OF BIRLA CEMENTS(SATNA CEMENT DIVISION) 213. 3 CEMENT DIVISIONS UNDER BIRLA 223. 4 BUSINESS STRATEGY 233. 5 COMPANY PROFILE 243. 6 ADMINISTRATION SETUP 253. 7 ORGANIZATIONAL STRUCTURE 263. 8 DIFFERENT DEPATMENTS 273. 9 PROJECTS UNDERTAKEN 283. 10 FUTURE EXPANSION 293. 11 CORPORATE MISSION 303. 12 CORPORATE VISION CHAPTER FOUR SWOT ANALYSIS 4. 1 STRENGTH 4. 2 WEAKNESS 4. 3 OPPOURTUNITIES 4. 4 THREATS CHAPTER FIVE 5. 1 FINDINGS 5. 2 SUGGESTIONS 5. 3 CONCLUSION 5. 4 BIBLIOGRAPHY CHAPTER 1 INTRODUCTION An Organization Study means study of a particular Organization in detail, their operations, various departments of the firm, the way company works and the integration between the departments and their role in achieving the Organizational Objectives. Although it seems as a very simple and easy process it has its own advantage in giving a firsthand knowledge about an organization to a student. This firsthand knowledge could help the student in the future studies to link the theory learned and direct experience. Birla corporation ltd;a multi activity company and pioneer in many fields is committed to development of the nation with widespread operations spanning the whole country and beyond. The company’s turnover exceeds rs. 1900 crore in a diverse range of product which include Jute synthetic yarn, cement ,calcium, calcium carbide, industrial gases, Vinoleum floor covergings, PVC-coated cloth wallpapers as well as Auto trims(jute felt based car interiors manufactured with german technology). athered from the industry. 1. 1 IMPORTANCE OF THE STUDY. The study is about the major department and functioning of BIRLA CEMENTS, SATNA,MP. The study is mainly based on the details collected from each department. Each and every activities of the company is studied very carefully with the data available. This study is very beneficial to the future managers as they are put into the real life situations. A study on all the departments can help to improve the process and there by an overall improvements in the company’s performance can be made. The study will give an idea how effectively the client can utilize the services offered by BIRLA and how much satisfied they are. 1. 1. OBJECTIVES OF STUDY ?To understand about the organization. ?To get the practical awareness about organization ?To learn about the policies and functions of the organization ? To study about various department and its function ?To acquire knowledge about the managerial aspect of the firm ? To club the theoretical knowledge with the practical observations ? To build suggestions according to my knowledge. ?To analyze the present status and future strategy of the company ? To understand the different products and their position on the market ? To understand the objectives and the achievement of the organization. 1. 3RESEARCH METHODOLOGY The research is a process of defining and redefining problems, formulating hypothesis, collecting, organizing and evaluation of data to reach conclusions to see whether the formulated hypothesis matches with the conclusion. Research is actually search for knowledge or broadening the area of knowledge. It aims at discovering the truth. The very purpose of research is to find out the truth by systematic methods. research need not lead to an ideal solution. It’s done to find out new facts or to verify old ones METHODOLOGY USED IN DATA COLLECTION In this study, the following methods are used for collecting the data: 1. Primary Data The primary data are those collected by the investigation himself for the first time and thus is original in character. The primary data collected through: ? personal interview These are v ery useful to know about the personal opinion of the employees regarding their job problems. The success of this method largely depends on the proper drafting of questions. ?Observation This method implies the collection of information by way of researchers own observation. The information obtained relates to what is currently happening in the organization . The study needed to have a personal visit to the different departments of the company. †¢Direct interview with managers. †¢Direct interview with workers. †¢Through direct observation 2. Secondary Data It is the data are already available. In this project study the researcher has taken information from text book , magazine , internet and website of the organization as a source of secondary data. ?Published sources ?Official websites of the company,News paper magazine ? 1. 4. LIMITATION. ?Some of the data were treated confidential and hence refused to disclose ? Most of the data’s were collected through interviews and so the information is subjected to be biased. ?The information provided by the company is mainly assumed to be authentic. ?Time was limited, so it was not possible to make an extensive study. CHAPTER 2 INDUSTRY PROFILE . 1 CEMENT INDUSTRY INDIAN CEMENT INDUSTRY Backdrop The Indian cement industry also went through an extremely turbulent phase in the backdrop of a global economic slowdown revealing that the industry was now globally linked and was impacted by developments in international markets. As per the Ninth Plan (1997-2005) cement production targets the industry had started investing in fresh capacity. While the installed capacity of the industry went up to 35 MT, a slowdown in almost all industrial segments of the Indian Economy and depressed global demand resulted in mismatch between installed capacity and demand. This led to a crash in cement prices, which meant ever-decreasing price realization for all major cement producers. All major producers barring Sagar cement went into red and in 1999-2000 questions were being asked whether the cement industry would survive. 2. 2GLOBAL SCENARIO The cement industry, in general, is on the upswing, due to strong growth in demand propelled particularly by the demand for cement in China. The world scenario coupled with strong domestic demand has benefited the Indian cement Industry. The Indian economy remained upbeat during the year with brisk industrial activity in major cement consuming sectors like automobile and consumer durables. In line with global trends, domestic prices too ruled firm for the second year running India presently is going through an economic up-turn and at this particular time in the nations development, considerable attention is being paid to the creation of adequate infrastructure to meet the countrys development needs. Industry is also experiencing robust growth in several sectors and Indias agricultural sector has continued to show growth with improved productivity and product quality. It can therefore be assumed that if these trends continue, India will continue to enjoy healthy economic growth for some years to come. The demand for cement in India therefore, should continue to rise, both in construction cement and in flat products used in the automotive and consumer product sectors India also has a specific advantage in that its iron ore and related mineral resources are plentiful, which will provide the Indian steel industry with a particular global advantage. Starting with just the same level of production of less than 10 million tones in 1949 as India, Chinas cement production had gone ahead by leaps and bounds to 272 million tones as against Indias not more than 38 million tones in 2005-06. This is obviously because Chinas annual cement production was spread over a large number of big and small cement units while Indias production came mostly from the bigger, integrated and state-owned cement plants. The scene began changing only in recent years with more and more privately owned cement plants stepping into the arena under the policy of globalization. Among the reasons why this happened was that accelerated industrial and even agricultural production in China brought a huge increase in cement consumption while this did not happen in India. Indias cement industry will have to import its entire requirements of coking coal within 25 years from now since the country would by then have run out of its reserves. The excess global availability of cement with almost every country, including the developed and the developing, having gone over to the production of the metal and along with a sluggish world demand throws a big challenge to Indias cement industry. Among the challenges faced by the cement industry in India and also the rest of the world is the emergence of not only other light metals like aluminum and plastics in spite of the latter being not environment-friendly. Government Protection for Indian cement Industry Cement industry does not enjoy any unreasonable protection from the Government. Import duty on cement was reduced from 25% to 20% and has been lowered further to 15%. HR cement imports have become cheaper by almost Rs 6000 to Rs 8000. The Government has also suspended DEPB benefits on export of HR cement. The combined effect of this has practically abolished any meaningful protection. An appreciating Rupee has made exports even less viable for the industry and imports continue becoming cheaper. Numerous non-tariff barriers on cement exports have been put in place by other countries. Developed countries like US have imposed high anti-dumping duty as high as 60% on certain varieties of cement. While this is the case with Indian cement industry, user groups such the Indian automobile industry enjoys a high protection with 100% import duty on finished products. Despite these difficulties the Indian cement industry has managed to keep itself competitive. 2. 3 Industry Structure The Indian cement industry can be divided into two distinct producer groups: Major producers: Also known as Integrated cement Producers (ISPs), this group includes large cement producers with high levels of backward integration and capacities of over 1 MT. Industries form this group. Other producers: This group consists of smaller stand-alone cement plants that include producers and processors of cement. Way forward for the Indian cement Industry We should be ready to compete in outside markets†¦If our cement industry gears up in about 3 to 4 years, Indian cement can be both in Indian and foreign markets. Our vision should be towards this. Indian 2020: A vision for the new millennium by APJ Adbul Kalam and YS Rajan The Government envisions India becoming a developed nation by 2020 with a per capita GDP of $1540. For a nation that is economically strong, free of the problems of underdevelopment and plays a meaningful role in the world as befits a nation of over one billion people, the groundwork would have to begin right now. The Indian cement Industry will be required and is willing to play a critical role in achieving this target. With abundant cement resources and well-established base for cement production in the country, cement is poised for growth in the coming decades. Production has increased from 17 MT in 1990 to 38 MT in 2005-06 and 66 MT is targeted for 2011. While cement will continue to have a stronghold in traditional sectors such as construction, housing, ground transportation, special cement will be increasingly used in hi-tech engineering industries such as power generation, petrochemicals, fertilizers etc. Cement will continue to be the most popular, versatile and dominant material for wide ranging applications. While India may not become a leader in world cement market, it can become a powerful force. To help the Indian cement Industry achieves its potential and play a meaningful role in India’s development some steps need to be taken During 2005-06domestic cement production and apparent cement consumption increased by 5. 1% and 7. 1% respectively. Export volume increased by 18%. ement demand is expected to grow at the rate of 8%in the Asia pacific region. For India demand is predicted to grow at the rate of 8% in 2006 and 2007. †¢Cement is yet to touch the lives of millions of people in India. Per capita consumption of cement in India is only 29 kg and has to go a long way to reach consumption levels of around 400 kg in developed countries like USA and world average of 140 kg. †¢There is a need to continue the current thrust on infrastructure related activities and e xtend them to rural India. Rural Indian today presents a challenge for development of the country and the opportunity to increase usage of cement in these areas through projects such as rural housing etc †¢Current shortage of inputs has pushed up the costs for the cement industry. Government should ensure that quality raw material such lime stone and gypsum are available to the industry. With Ministry of cement targeting an output of 110 MT of cement by 2020 there is an urgent need to develop raw material resources for inputs like within or outside the country. Countries like Japan have already taken similar steps to safeguard their industries. †¢Adequate enabling infrastructure such as power, ports, roads, rail transport is pre-requisite for the Indian cement industry to remain competitive. †¢Government should not regulate prices and free market forces should prevail. Intervention by the Government is only a short-term solution to the issue of cement prices in the country. Once left alone, market dynamics will automatically ensure price corrections and determine the optimum price of cement. The Indian cement Industry is amongst the least protected in the world. While developed countries have put numerous tariff and non-tariff barriers on cement exports from the country, the domestic industry is exposed to cheaper imports from competing nations. As in case of other important industries, the Government should give reasonable levels of protection to the domestic cement industry, which is just starting to get back on its feet Industry should be allowed to have a fair return on investment and contribute to the overall health of the Indian manufacturing segment. The cement industry has invested a capital of over Rs 10 cores (for a capacity of 36 mt). in a recent study has concluded that given the large exposure that banks and financial institutions have to the cement industry, a healthy cement sector is in the interest of the economy. Cement industry still continues to be unattractive for investors and a recent study by CRIS INFAC suggests that any new projects with target price below $270/MT will be economically unattractive. Today, Indian producers employ world-class standards of technology. cement from Indian finds growing acceptability in international markets. But despite this India’s share in world trade cement is a miniscule 2%. Given the capabilities of the Indian cement industry there is tremendous scope to increase this share further. While the cement industry will continue servicing the domestic demand there is a lot of untapped export potential with the industry. The Government, in line with EXIM policy 2002-07, should take steps to make Indian exports more competitive. China’s soaring demand (over the past five years China’s demand for cement has risen at more than 15% percent as compared with just 4 percent for the rest of the world . he growth rate in China’s demand for cement is expected to come down to 8 percent during 2003 through 2010) which had revived the long term suffering industry will eventually be satisfied by additional domestic capacity-hardly a long term solution to the fundamental problem of worldwide capacity. The basis for such a conclusion is the estimated lower cost of construction o f cement mills in China by some 30 to 50 percent than comparable facilities in the developed world and the fact that currently the global flat cement industry has at least 100 million tons of overcapacity. Add to this the worry of economists of slower economic growth in China and the fact that the country can become a net exporter with telling effects on future international prices. Adequate steps must be taken right now to make the Indian cement industry more competitive in order to meet these challenges. The Indian cement industry may not be able to afford another crisis similar to the one between 1997-2001. Domestic cement prices moved in tandem with international prices showing a downward trend as compared to the previous year Established in 1985 by its Founder Shri. S. VEERA REDDY is the flagship of Sagar group,, the most trusted corporate name in the country. It has one of the most modern cement making facilities and is also one of the lowest cost producers of cement in the world. It currently produces 2. 5 million tones of cement per annum at its mattampally plant and has recently invested, which has a capacity of about 2. 5 million tones per annum of finished cements. The cement company is focused on the sophisticated projects and the construction sectors. A benchmark in corporate social responsibility and corporate governance, it believes in improving the quality of life of its employees and the communities it serves 2. 4 MAJOR DOMESTIC PLAYERS CompanyInstalled CapacityProduction ACC18,64017,902 Gujarat Ambuja14,86015,094 Ultratech17,00013,707 Grasim14,11514,649 India Cements8,8108,434 JK Group6,6806,174 Jaypee Group6,5316,316 Century Textiles6,3006,636 Madras Cements5,4704,550 Birla Corp. 5,1135,150 Lafarge5,0004,573 Source: ICRA ACC Limited ACC Limited is the oldest and the largest cement manufacturer in the country. The company has a total consolidated capacity in the region of 19 MT (million tonnes) and commands a near 12 per cent industry capacity share. With 14 plants and a 9,000 strong dealer network, ACC is one of the few companies to have a pan-India presence. It is particularly strong in the northern and eastern regions. Gujarat Ambuja (GACL), one of the leading players in the industry, in consortium with Switzerlands Holcim, has acquired over 34 per cent stake in the company. Gujarat Ambuja Cements Ltd. Gujarat Ambuja Cements Ltd was set up in 1986 with the commencement of commercial production at its 2 million tonne plant in Chandrapur, Maharashtra. The group has clinker manufacturing facilities at Himachal Pradesh, Gujarat, Maharashtra, Chhattisgarh, Punjab and Rajasthan. The company has a strong foothold in the northern and western markets. Gujarat Ambuja is Indias largest cement exporter and one of the most cost efficient firms. Ultratech Cement Limited Ultratech (ULT), an Aditya Birla Group Company and a 51 per cent subsidiary of Grasim, has a consolidated capacity of 17 MT, thus making it the second largest cement producer in the country. The company has presence in western, eastern and southern regions. It has 5 integrated plants, 5 grinding units, and 4 terminals – three in India and one in Sri Lanka. It exports over 3 MT per annum, which is about 30 per cent of the countrys total exports (cement and clinker). India Cements India Cements is a southern player with an installed capacity of about 9 MTPA. The company is the largest producer of cement in the South and a leading exporter. The company has access to huge limestone resources and plans to expand capacity by de-bottlenecking and optimization of existing plants as well as by acquisitions. The company has 7 plants out of which 3 are in Tamilnadu and 4 in Andhra Pradesh. The company caters to all major markets in South India and Maharashtra. The company’s product portfolio comprises of Ordinary Portland Cement (OPC) and Pozzolona Portland Cement (PPC) in the ratio of 53. 4 per cent and 46. per cent. However, the company is increasing its focus on blended cements. MAJOR. GLOBAL PLAYERS Holcim: Swiss cement major Holcim has picked up 14. 8 per cent of the promoters stake in Gujarat Ambuja Cements (GACL). In January 2006, Holderind Investments (Holcim Mauritius), an indirect, wholly-owned subsidiary of Holcim, acquired 200 million equity shares of GACL at a price of US$ 2. 28 per share from the promoters. Earlier, Holcim ha d entered into a strategic alliance with GACL, and acquired a 67 per cent controlling stake in Ambuja Cement India. Through this holding company, Holcim acquired a majority in Ambuja Cement Eastern and a substantial stake in ACC. Holcims acquisition has led to the emergence of two major groups in the Indian cement industry, the Holcim-ACC-Gujarat Ambuja Cements combine (capacity of 33. 5 mt) and the Aditya Birla group through Grasim Industries and Ultratech Cement (combined capacity of 31. 1 mt). Lafarge: The French cement major has acquired the cement plants of Raymond and Tisco in the recent past, and has an installed capacity of 5 mtpa. Its current cement operation comprises a modern split location cement facility located at Sonadih (District Raipur, Chhattisgarh) and at Jojobera (District Singhbhum, Jharkhand) and an integrated cement facility located at Arasmeta (District Janjgir-Champa, Chhattisgarh). It has an extensive dealer network in the eastern states of West Bengal, Jharkhand, Bihar, North-Eastern States and Chhattisgarh. Its products are available in parts of Orissa, Madhya Pradesh and Vidarbha (Maharashtra). It uses India as a base to export high quality clinker and cement to Bangladesh and Nepal. Italcementi: Italy based Italcementi has acquired a stake in the K. K. Birla promoted Zuari Industries cement plant in Andhra Pradesh, with a capacity of 3. 4 mtpa. Heidelberg: Heidelberg Cement too has entered into an equal joint-venture agreement with S P Lohia Group controlled Indo-Rama Cement. Heidelberg Cement is expected to take a 50 per cent controlling stake in Indo-Ramas grinding plant of 0. 75 mtpa at Raigad in Maharashtra. Heidelberg is also taking over Mysore Cement of S K Birla group at a consideration of US$ 93 million India, worlds second largest cement producer after China, is the home to a number of top cement companies. As various infrastructure projects, road networks and housing projects are coming up, many of which are backed by the government, the cement industry in India is growing at a great pace these days. With the capacity of 151. 2 Million Tones (MT), the Indian cement industry is truly big in size and hence accommodates a number of cement companies in the market. Not only that, more growth is further expected in the coming years, which will also lead to the growth of top cement companies in India. Lets have a look at the top 10 cement companies in India. The Indian cement industry is largely dominated by a few companies. The top 20 cement companies account for almost 70% of the total cement production of the country. During April-September 2009, the Indian cement companies produced 11 MT cement, whereas the total cement product in the country in FY09 was 231 MT. It is further expected to reach 236. 16 MT in FY11 and 262. 61 MT in FY12. 2. 5List of Top 10 Cement Companies in India Following are the list of top 10 cement companies in India: †¢ACC Limited †¢Gujarat Ambuja Cements Limited †¢Ultratech †¢Grasim †¢India Cements †¢JK Cement Ltd †¢Jaypee Group Century Cement †¢Madras Cements †¢Birla Corp. NameACC Limited Production17,902 Installed Capacity18,640 Net Profit (Quarter ended Sep 30, 2009)41,550. 89 lakhs NameGujarat Ambuja Cements Limited Production15,094 Installed Capacity14,860 Net Profit (Quarter ended on Sep 30, 2009)31,848 lakhs NameUltratech Production13,707 Installed Capacity17, 000 Net Profit (in 2008-09)97,700 lakhs NameGrasim Production14,649 Installed Capacity14,115 Net Profit (in 2008-09)1,64,800 lakhs NameIndia Cements Production8,434 Installed Capacity8,810 Net Profit (in 2008-09)43,218 lakhs NameJK Cement Ltd Production6,174 Installed Capacity6,680 Net Profit (in 2008-09)14,234. 40 lakhs NameJaypee Group Production6,316 Installed Capacity6,531 NameCentury Cement Production6,636 Installed Capacity6,300 NameMadras Cement Production4,550 Installed Capacity5,457 Net Profit (in 2008-09)49,081 lakhs NameBirla Corp. Production5,150 Installed Capacity5,113 Net Profit (in 2008-09)9,061 lakhs CHAPTER-3 COMPANY PROFILE 3. 1 BIRLA CORPORATION LTD Birla corporation ltd;a multi activity company and pioneer in many fields is committed to development of the nation with widespread operations spanning the whole country and beyond. The company’s turnover exceeds rs. 1900 crore in a diverse range of product which include Jute synthetic yarn, cement ,calcium, calcium carbide, industrial gases, Vinoleum floor covergings, PVC-coated cloth wallpapers as well as Auto trims(jute felt based car interiors manufactured with german technology). Counted amongst the larger plants of the cement division,satna cement works and birla vikas cement at satna(mp) have an installed capacity of 2. 18 million tons at present which is projected to riseto 3. 0 million tons in the near future. Birla cement samrat and birla cement khajuraho are already leading brands and fortuners of company activities. Riding on the glory of very high standards of quality, the company products are premierly priced in all the markets where it is available. 3. 2 HISTORY OF BIRLA CORPORATION LTD Time talks long years ago ,in 1919, a young man named ghanshyam das birla set up the first indian-owned jute mill near kolkatta. He called it birla jute manufacturing company. Time watched as the small unit prospered. It also earmarked a young man to beacon the new industrial india. Shri madhav prasad birla,shri gd birla’s nephew,was born in 1918. Under his uncle’s tutelage he also inculated the timeless values that his uncle held so dear to life:integrity and enterprise. It was these very values that helped shri MP birla transform the humble jute manufacturing company into a mightyconglomerate: birla corporation ltd. Under the chairmanship of Late Shri R. S Lodha, the company has crossed the 1990- crore plusturnover mark and has widespread interests in: Cement,jute,auto trims,cushioned vinyl floor covering,PVC coated wallpaper etc. Today individual division is independently charting its own path driven by some value system as envisaged by the visionary who laid the first bricks. Amongst, widespread product range,cement is our core business. Cement produced by us also follows same value system as it has strength, integrity and trust in terms of quality. Birla Corporation Limited has products ranging from cement to jute goods, PVC floor covering, as well as auto trims (jute felt-based car interiors). ProductInstalled Capacity (2009-2010)Production (2009-2010) Cement6. 07 Mill. Tons. 5. 69 Mill. Tons. Jute Goods38000 M T27,300 MT PVC Floor Covering48. 60 lakh sq. Mtrs1. 09 lakh sq. mtrs. Auto Trim Parts7. 80 lakh Pcs0. 64 lakh Pcs Iron Steel Casting3,750 tons1,078 tons 3. 3 CEMENT DIVISIONS UNDER BIRLA Satna (Madhya Pradesh), Chanderia (Rajasthan), Durgapur (West Bengal), Raebareli (Uttar Pradesh) The Cement Division of Birla Corporation Limited has seven plants, two each at Satna (M. P. ) Satna Cement Works Birla Vikas Cement, Chanderia (Rajasthan) Birla Cement Works Chanderia Cement Works, Durgapur (W. B. ) Durgapur Cement Works Durga Hitech Cement and one at Raebareli (U. P. )-Raebareli Cement Works. They manufacture varieties of cement like Ordinary Portland Cement (OPC), 43 53 grades, Portland Pozzolana Cement (PPC), Fly Ash based PPC, Low Alkali Portland Cement, Portland Slag Cement, Low Heat Cement and Sulphate Resistant Cement. State Town Madhyapradesh Satna Uttarpradesh Raebareli RajasthanChanderia West Bengal Durgapur 3. 4 BUSINESS STRATEGY The company is committed to become a technology- driven, customer- oriented one where passion for excellence is a way of life, innovation is a tradition, commitment to values unshaken and customer loyalty is abiding. The long- term corporate objective is to emerge as the most preferred cement company in India. In the ardent pursuit to innovate and to think in a different way BIRLA group is in a unique position and the best in the industry. They are dedicated to provide quality service to their customers and maintain high standards in corporate responsibility. 3. COMPANY PROFILE(SATNA DIVISION) The cement is marketed under the brand names of Birla Cement SAMRAT, Birla Cement KHAJURAHO, Birla Cement CHETAK, Birla Cement and Birla Premium Cement, bringing the product under the common brand of Birla Cement while retaining the niche identity of SAMRAT for blended cement, i. e. PPC PSC, for all the units, KHAJURAHO (for the OPC product of Satna) and CHETAK (for the OPC product of Chanderi a). The Division exports large quantities of cement to Nepal, under the brand names of Birla Cement Samrat, Birla Cement Khajuraho and Birla Cement. The special variety of Birla Cement SAMRAT, being produced by the company, is ideal for mass concrete, RCC/pre-stressed/precast structure (for reduced thermal crack), increased water tightness of concrete, increased resistance to sulphate soils and aggressive water and increased resistance to alkali aggregate reaction besides corrosion resistant properties. All our cement plants are ISO 9001:2000 Certificated, covering the entire range of production and marketing. SCW BVC have received the IS/ISO 14001 certificate, an international recognition for Implementation of Environmental Management System. SCW has been awarded GREENTECH Safety Silver Award 2009 and GREENTECH Environment Excellence Award 2008 by GREENTECH Foundation, New Delhi. It has also received the First Prize for Maximum Reduction in KWH/ton of cement in M. P. from FLS Energy Award, Bhopal, in 2008. The Satna units received the Quality Circle Excellence Award from Quality Circle Forum of India, Durgapur Chapter; Quality Circle Excellence Award and Quality Circle Distinguish Award from Quality Circle Forum of India, Kanpur Chapter, both in 2008, and Quality Circle Forum of India, Baroda. SCW has received the National Award for Excellence in Water Management from CII, Hyderabad and First Prize for Lowest Thermal Energy Consumption K. Cal/kg clinker under the 10th FLS Energy Award 2007. BVC has received the National Award for Excellence in Water Management from CII, Hyderabad, National Award for Energy Efficiency in Indian Cement Industry from NCCBM, New Delhi and Lowest Electrical Energy Consumption K. cal/kg clinker under the 10th FLS Energy Award in 2007. NCBM has given BVC the Second Best Improvement in Electrical Energy Performance Award for 2006-07. SCW received the Best Energy Conservation Implementation Gold Award from Rajiv Gandhi Memorial National Award, Hyderabad, in 2004. BCW CCW have received the IS/ISO : 14001 Certification for Environmental Management System. BCW CCW have bagged various awards from the NPC NCCBM. CCW has won the Lai Bahadur Shastri Memorial National award for Excellent Pollution Control Implementation for 2001-02 by International Greenland Society. VEC, Chennai, chose the Chanderia units for s stained implementation of condition monitoring and continued Machine Health Improvement award during 2001-02. The Workers Education Trophy was awarded by the Central Board for Workers Education, Udaipur, Ministry of Labour, Government of India, for excellent contribution and implementation of workers training programmes during 1998-99 again in 2001-02. The laboratories of BCW CCW have been accredited by NABL (National Accreditation Board of Testing and Calibration Laboratories) as per ISO/IEC 17025. BCL has regularly been receiving CAPEXIL awards for cement exports since the last more than 15 years. Power Plants : The Cement Division has two high-ash coal-based captive power plants at Satna (27 MW) and Chanderia (29. 8 MW) each. The power plant at Chanderia received the FIVE S Workplace Management System Certification from QCFI, Secunderabad. 3. 6 ADMINISTRATION SETUP BRIEF FINANCIAL INFORMATION †¢Date of Establishment 1919 †¢Revenue532. 471 ( USD in Millions ) †¢Market Cap28353. 3687654 ( Rs. in Millions ) †¢Corporate AddressBirla Building 3rd 4th Floor,9/1 R N Mukherjee Road, Kolkata-700001, West Bengal www. birlacorporation. com Management Details Chairperson Harsh V Lodha Directors Anand Bordia, B B Tandon, B R Nahar, D N Ghosh, Deepak Nayyar, Girish Sharma, Harsh V Lodha, Mahendra Kumar Sharma, N K Kejriwal, Nandini Nopany, P K Chand, Pracheta Majumdar, Vikram Swarup Business Operation Background Cement Construction MaterialsBirla Corporation (BCL), a flagship company of M P Birla Group, operates four division cement, jute, vinoleum and auto trim division. It was incorporated in 1919 by Madhav Prasadji as Birla Jute Manufacturing Company. Later its steadily grew in a multiproduct corporation. In the year 1998 the name was changed to Birla Corporation. The MP Birla group owns 500 factories in industry segments like tex Financials:Total Income Rs. 22953. 428 Million ( year ending Mar 2010) Net Profit Rs. 5571. 809 Million ( year ending Mar 2010) Company Secretary Girish Sharma Bankers No Bankers Details in A. R Auditors HP Khandelwal Co 3. 7 ORGANIZATION STRUCTURE 3. 8 DIFFERENT DEPARTMENTS 1. Finance Department 2. Marketing department(Sales and Distribution) 3. Production department 4. HR department 5. Purchase Department 6. Fire and Safety Department 7. Engineering department Marketing Department Cement Marketing is different from other product marketing. Cement has a high demand. Therefore, it can be termed as a seller’s market.. Market penetration is very difficult, the brand image plays an important role. The whole market is also dependent on Customers awareness about different grade of cements. All of these call for a planned marketing effort and huge requirement of funds . Objectives 1. Monitoring of sales distribution 2. Study respond adequately to the information from market research department and from field establishment 3. Liaison with bulk buyers, central and state government officials and officials of Indian cement association Functions of Marketing Department 1. Sales 2. Market Research 3. Preparation of sales report 5. Processing and sending replies to audit queries. Liaison with bulk buyers, central and state government officials . 6. Sales force motivation through internal and external training programmes 3. 1PRODUCTION DEPARTMENT Objectives †¢Production planning †¢Co-ordination of production function †¢Co-ordination with Maintenance and Production department. Functions of Production Department . Planning daily production according to annual target 2. Submitting Plan to govt. and getting approval 3. Monitoring actual production checking any deviation 4. Making revision plans according to actual production 3. 2FINANCE DEPARTMENT Objectives †¢To Manage account for the financial resource of the Organization, to forecast its requirement in the future and plan accordingly and to check for deviation. †¢Report the financial performance of the company to Management, stakeholders and to comply with the Govt. rules and regulations Functions of Finance Department Some of the main functions are Payroll, billing, Preparation of journal, ledger and trial balance, Banking, Financial resources materials accounting, Budget preparation, Cost accounting, Auditing, Preparation of financial statements reports, Corporate Planning. Finance department in Birla(satna division) is divided into five sections for carrying out its process. They are †¢BILLS MATERIALS The main functions are Stores accounting and Receiving, Dispatch and holding of bills †¢SALES ACCOUNTING Some of the functions are 1. Accountability for selling and distribution of products by-products 2. Recording the transaction 3 Compilation of reports †¢THE COSTING AND BUDGET SECTION is concerned with ascertaining the cost of production, providing information, helping to prepare a budget, forecasting the performance and finally making a plan. †¢THE CASH, BANK AND PAYROLL SECTION is concerned more with the day to day activities and less of future forecasting planning. Cash and Bank Accounts Section functions include: 1. Receipt of cash, cheques, bank drafts, and postal money orders 2. Payment of cash, cheques, bank drafts, and letters of authority 3. Handling of bank deposits/withdrawals, custody of cash and inter unit ransfer of funds 4. Maintenance of petty cash books and cash books 5. Reconciliation of bank accounts 6. Security arrangement of cash handling 7. Safe custody of valuable documents 8. Cash interests calculation 9. Any other duties assigned by authorized officer Payroll Section’s functions are: 1. Preparation and disbursement of salaries and wages to managerial and non-managerial employees 2. Effect various recoveries through payroll and remit the same too concerned agencies 3. Processing of various personal payments advances 4. Keeps books of account for the above transaction TAX DUTIES SECTION is concerned with calculation payment of various taxes and duties to the Government. 3. 6HUMAN RESOURCE DEPARTMENT Objective of HR Department 1. To maintain the optimum manpower required to sustain the growth of Organization. 2. To motivate manage human resource and train them to ensure their personal and organizational development. Functions of HR Department 1. Organizational human resource planning development 2. Retirement selection 3. Wage Salary administration 4. Employee records maintaining 5. Performance appraisal 6. Welfare programme 7. Job evaluation 8. Handling employee grievances . Handling the legal issues within outside the Organization Process of HR Department The human resource department has 3 blocks which are: 1. Establishment Section The main functions are: 1. Recruitment selection 2. Transfer, rotation and placement of employees . 3. Wage and salary administration 4. Performance Appraisal 5. Retrenchment 2Industrial Relation Industrial relation operates only within the Organization. The Inter-organizational relation is handled by the corporate cadre. 60 to 70 % of management time is lost in resolving IR issues. Therefore the H. R department is of paramount importance. The main functions are: 1. Communication between management and trade unions 2. Grievance handling 3. Settlement of dispute 4. Handling disciplinary action 5. Safeguarding Employee rights 6. Career related issues like promotion, transfer rotation 7. Resolving daily petty issues INDUSTRIAL ENGINEERING The main objective of this section is to make effective utilization of the manpower resources and restructure it for the benefit of the organization. The main functions are: 1. Manpower planning that composes of Manpower audit Forecast future requirements 2. Custodian of manpower inventory 3. Work study a. Removing system bottlenecks b. Production incentive etc. 4. Maintenance scheduling 5. Work environment study 6. Employee problem analysis 3. 6FIRE AND SAFETY DEPARTMENT As per the factory’s ACT 1948, any organization with more than 1000 employees or for Industries classified as Major hazardous unit (MHU) by the Govt. of India, requires a safety department. BIRLA has well established safety departments to look after the needs of respective divisions. It is the firm policy of the company that no operation is so important and no job is so urgent that one cannot find time to perform it safely. Further, it aims to see that an employee remain as healthy as he entered the plant, by providing safe environment and safe working conditions, safe tools and procedures to carry out all operations. Objectives 1. To ensure safety of the organization and of its employees and to act under emergency 2. Train the employees for ensuring safety and to prevent accidents. 98% of the accidents are due to unsafe conditions. Therefore, they are avoidable and only 2% accidents are unavoidable. The department aims at avoiding unsafe condition and reducing unavoidable accidents. Functions 1. Training Activity 2. Checking compliance with the safety measures . Acting in case of emergency Purchase Department This is the department which purchases the required raw material for the production of cement. So this department can be said as the back bone of Birla. The store keeper verifies the raw material and if goes beyond the minimum required level he will inform it to the accounts officer and he will pa ss information to the General Manager. The General Manager then takes further actions to buy the required raw materials. The main function of purchasing department is to ensure buffer stock of material for production to ensure uninterrupted flow of production. Structure of Purchase Department Purchase Officer Jr. Clerk Jr. Clerk Functions †¢Source identification Source identification involves the identification of suppliers from which purchase are to be made. †¢Source selection Source selection involves selecting the best suppliers from which suppliers which based on desired quality, quantity and service etc. †¢Receipt of Material Materials are collected by the receipt store and the details will be given to the section for inspection if any will be specified. Receipt store will prepare material receipt report and sent to concerned section, i. e purchase and accounts original copy will be retained by receipt store. †¢Import Materials Some chemicals, machinery, spares for specific machinery ? Purchase proposal ?Purchase order ?Purchase of consumerable and stationary Purchase procedure Requisition The power of approving material requisition is with Birla cement grade qualities Purchase proposal After fixing the right supplier purchase order is prepared an d placed with the proposed order rate, quality delivery schedule and terms of payments will be mentioned. AWRADS WON †¢Birla Corporation Limited has made it to the prestigious list of 200 Best Under a Billion $ companies in the Asia-Pacific region, published by Forbes Asia, in its October 9, 2009 issue. Birla Corporation Limited received the Best Corporate Ethics Award for 2008 from the Indian Institute of Planning and Management. Satna Cement Works Birla Vikas Cement have received the IS/ISO 14001 certificate, an international recognition for Implementation of environmental management system. SCW has received National Award for Excellence in Water Management from CII, Hyderabad First Prize for Lowest Thermal Energy Consumption K. Cal/kg clinker under the 10th FLS Energy Award 2007. SCW received the Best Energy Consumption Implementation Gold Award under the Rajiv Gandhi Memorial National Award, Hyderabad, in 2004. It also received the First Prize for Maximum Reduction in KWH/Ton of Cement in M. P. under FLS Energy Award, Bhopal, in 2008. †¢SCW has been awarded Green Tech Environment Excellence Award in 2008 by Green Tech Foundation, New Delhi. †¢SCW has received the National Award for Excellince in Water Management from CII, Hyderabad National Award For Energy Effiency in Indian Cement Industry form NCCBM, New Delhi, Lowest Electrical Energy Consunption K. Cal/kg clinker under the 10th FLS Energy Award in 2007. The Satna Unit received the Quality Circle Excellent Award from Quality Circle Forum of India, Dugapur chapter Quality Circle Excellince Award and Quality Circle Distinguish Award From Quality Circle Forum of India, Kanpur Chapter, in 2008. †¢All our cement plants are ISO 9001:2000 Certificated, covering the entire range of production and marketing. SCW also got IS/ISO : 14001 Certification for Implementation of Environmental Management System. †¢The laboratories of SCW have been accredited by NABL (National Accreditation Board of Testing and Calibration Laboratories) as per ISO/IEC 17025 w. . f. 07. 07. 2005. †¢SCW has won the Lal Bahadur Shastri Memorial National award for Excellent Pollution Control Implementation for 2001-02 by International Greenland Society. VEC, Chennai chose the Chanderia Units for sustained implementation of condition monitoring and continued Machine Health Improvement award during 2001-02. The Workers Education Trophy was awarded by the Centr al Board of Workers Education, Udaipur Ministry of Labour, Government of India, for excellent contribution and implementation of workers training programmes during 1998-99 again in 2001-02. BCL has regularly been receiving CAPEXIL awards for cement exports since the last more than 15 years 3. 9 PROJECTS UNDERTAKEN †¢CHANDERIA †¢Delhi Airport Project, Delhi †¢Delhi Metro Rail Project, Delhi †¢Aravali NTPC Power Project, Jharli †¢Telecomunication MBL Power Project, Barwala – Haryana †¢Cipla Ltd. SEZ Project, Pithampur †¢Lupin Pharma Care Ltd. SEZ Project, Pithampur †¢NHAI Projects, Rajasthan / M. P. / Jhansi †¢DLF Housing Society, Gurgaon †¢HZL All Projects, Chanderia / Rajpura Dariba (Rajsamand) †¢SATNA †¢Mukund Limited, Bhadohi NH-Road Projects (U. P) †¢Ban Sagar Nahar Nirman Khand, Mirzapur, Construction of Dam Kalptaru Power Transmission Ltd. Patna, Civil Construction work for Power †¢Transmission Line †¢NTPC Ltd. Kahalgaon, Civil Construction work at plant †¢UAL-Bengal (Utkal Asbestos Ltd. ), Tungadhowa (W. B), Manufacturer of Cement Sheets †¢U. P. Asbestos Ltd. Lucknow, Manufacturer of Cement Sheets †¢Bihar Rajya Pool Nirman Nigam Ltd. Patna, Govt. Projects in Bihar †¢Ashok Leyland Limited, Pantnagar, Construction of Plant Building †¢Gayatri Projects Limited, Jhansi, NH-Road Projects (U. P) †¢Madhucon Projects Limited, Chakia/Darbhanga, NH-Road Projects (Bihar) †¢Nagarjuna Construction Company Ltd. Orai/Basti, NH-Road Projects (U. P) Progressive Construction Limited, Chakia, NH-Road Projects (Bihar) †¢NBCC Limited, Parichha, Construction Of Chimney †¢BSC-C C JV, Muzaffarpur, NH-Road Projects (Bihar) †¢B. Seenaiah Co. (Projects) Ltd. Khalilabad, NH-Road Projects (U. P) †¢DURGAPUR †¢Tollygunge Garia Metro Extention †¢Dum Dum Circular Rail Bridge †¢South City †¢Sagardighi Thermal Power Station †¢Barasat Bus Stand †¢Tata Motors Factory, Singur †¢Pandabeshwar Bridge †¢Building construction – Rajarhat †¢Dankuni Durgapur Road †¢Dankuni Kolaghat Road †¢Durgapur Project †¢Lake District, Kolkata †¢Hotel Kalinga, Malda †¢Pannagarh Moregram Road †¢Spencer Plaza, Siliguri . 10 FUTURE EXPANSION The company is planning to invest Rs1200 crore to set up a 3 million tonne cement plant in Madhya Pradesh. The plant will increase the company production capacity to 10 million tonne by 2011. VISION AND MISSION 3. 11 Corporate Vision â€Å"To emerge as the most preferred bank in the country In terms of brand, values, principles with core competence in fostering customer aspirations, to build high quality assets leveraging on the strong and vibrant technology platform in pursuit of excellence and customer delight and to become a major contributor to The stable economic growth of the nation† . 12 Corporate Mission â€Å"To prov ide a secure, agile, dynamic and conducive banking environment to customers with commitment to values and unshaken confidence, deploying the best technology, standards, processes and procedures, where customer convenience is of significant importance and to increase the stake holders’ value† CHAPTER 4 SWOT ANALYSIS 4. 1 SWOT ANALYSIS Here we have to analyse the strength, weakness, opportunity and threats of the organisation. Strengths The strengths of the organisation are; a)The organisation is blessed with a dedicated workforce )The organisation is situated in the middle of the city c)The organisation is providing a lot of products and services to the society d)The dedicated workforce of the organisation is successful in serving their customers satisfactorily e)This increases the reputation of the organisation in the mind of its customers f)The organisation is computerised since 2002 with ‘Finacle’ software Weakness a)The total number of employees are not able to meet the workload in the organisation b) The prices of raw materials are uncontrolled. So some times satna division forced to operate in an uneconomic situation. )The average age of employee is very high (50 Yrs). The number of younger professionals is decreasing and some managerial personnel are forced to handle more than one position due to freeze on recruitment. d)Several unskilled jobs, which could be sub contracted are undertaken by the permanent employees at high cost Opportunities a)Wide area of operation b)Saving and investment are increasing c)Wide scope of banking operations like internet banking, interbank transfers etc. d)New investment opportunities e)Incoming boom in the market f)New innovations and technology )Diversified products and services Threats a) Recession in the market b)High competition in the market c)Lack of good investment opportunities d)Inflation also increases the price level in the market. CHAPTER 5 FINDINGS ,SUGGESTIONS AND CONCLUSION 5. 1FIN DINGS †¢Birla Cements lacks to influence the southern region markets †¢Distribution system is perfect as Railwayother transportation Facilities are within 5 kms of Satna cement Division. †¢ISO certification to most of the divisions †¢The company is operating above 90% capacity utilization. †¢Planning on reduction in manpower. Presence of good industrial relations with local unions and there is greater co-operation between management and employees. †¢Wage system is fair in BIRLA CEMENTS. †¢Workers health and safety are given prime importance. †¢A good coordination exists between different departments. †¢Trade unions play a vital role as bargaining agents. The management is sometimes forced to accept unreasonable demands made by the Unions. 5. 2SUGGESTIONS †¢It is better to dispose the non-performing assets of the company †¢The cost of production can be reduced by using most modern methods and modify plants to become more efficien t. Re-organization is very necessary in organizational level †¢Try to make delivery at correct time. †¢Undertake training programmes for the employees on the latest technologies to upgrade their skills †¢Motivation is the one of the important factor which stimulates the sales. Hence the organization should take steps to improve motivation provided to the sales person †¢Exporting of Birla Vikas Grade cement should be exteneded to other countries(now only in Nepal) †¢Temporary employees of 2-3 yrs of experience should be made permanent . 3Conclusion Birla Group is one of the greatest business brands in India that have a wide fame both in India and abroad. But due the high competition and various other challenges, the group is now facing some adversities in the business. So with the implementation of proper and adequate measures, their market share can improved particularly in the manufacturing industry. 5. 4BIBLIOGRAPHY