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AProject report
On
AtJ.K. Cement,
Nimbahera (Chittorgarh).
Submitted toRajasthan Technical University
In the partial fulfillment for the award of Master Degree of
Business Administration
Session 2007-2009
Submitted By: Under the Guidance of:Mr. Manu Vijay Mr. Rahul
JainMBA III sem.
Vision School of Management(Affiliated to Rajasthan Technical
University & Approved by AICTE)
Udaipur Road Chittorgarh (Raj.)E-mail:
[email protected]: www.visionmanagement.Org
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DECLARATION:
This is to certify that the MRP submitted by me in Masters of
Business
Administration Program from Vision School Of Management,
Chittorgarh [Rajasthan
technical university, Kota] embodies the original work done by
me under the ableguidance and supervision of Mr. R.P. Singh,
General Manager (HRD & RTC), at J.K.
cement, Nimbahera (Chttorgarh).
No part of this report has been produced from any other summer
project,
monograph, report or book and all facts and figures have been
confirmed by
organizational guide.
Manu Vijay
M.B.A. [RTU]
Vision School Of Management
PREFACE :
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This MRP is prepared as the partial fulfillment for Two-Year
degree
Program of MBA curriculum of Rajasthan Technical University,
Kota. It is
expected from an MBA to possess a good communication &
effective presentation
skills.
Objectives of the project report, these are:-
i.) To study the impact of employee engagement on productivity
of the organization.
ii.) To study the various methods of employee engagement
prevailing in the
organization.
The research provides an opportunity to a student to demonstrate
application of his/her
knowledge, skill and competencies required during the technical
session. Research also
helps the student to devote his/her skill to analyze the problem
to suggest alternative
solutions, to evaluate them and to provide feasible
recommendations on the provideddata.
Although I have tried my level best to prepare this report an
error free report every
effort has been made to offer the most authenticate position
with accuracy.
This report contains a number of additional features:
Chapter 1. Introduces cement industry in India, general
characteristic, key external
drivers, cement manufacturing process, swot analysis, price
& profit to the firm, trend
& players, domestic players, market opportunities for
investment & company profile
& objectives of the report.
Chapter 2. On conceptual framework which related to employee
engagement (in the
public sector, interpretative models, power of employee
engagement & 9 core
statement.
Chapter 3. On review of literature which consider Merit board
links employee
engagement & productivity, Engagement equals productivity,
Cambridgeshire
county council etc.
Chapter 4. On research methodology which consider definition,
sample size, types &
techniques, tools used & limitation of the study.
Chapter 4. On data analysis & interpretation related to
employee engagement &
productivity of J.K. cement.
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Chapter 5. On observation & finding, conclusions &
suggestion related to research
methodology, data analysis & interpretation which consider
the topic of Impact of
employee engagement on productivity ( with specific reference of
J.K Cement) of
organization.
A bibliography in project report is provided at the end that
should serve as good
sources of reference material for learners & researchers in
the area.
An annexure appears at the end of the report that provides some
useful sources of
information on the Internet regarding project report. This
should prove to be a
welcome features for those persons who would like to access the
net for more
information on issues covered in this project report.
ACKNOWLEDGEMENT :
The successful completion of a MRP requires guidance & help
from a number of people. I wasfortunate to have all the support
from my teachers. I therefore take this opportunity to express
my profound sense of gratitude to the all those who extended
their whole hearted help and
support to me in completing the project study report work on
Imapct of employee engagement on productivity ( with specific
reference of
J.K Cement) of organization.
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I also express my deep sense of gratitude to Mr. R.P. Singh,
General Manager
(HRD & RTC) , at J.K. cement, Nimbahera (Chttorgarh), who
has helped us to
do our project. We also thank to Mr. Narendra Vaishnav (Officer-
RTC). for
his valuable help in each stage of the project. Because of his
co-operation andcontinuous guidance successful completion of this
project study report was
made possible.
I am sincerely thankful to Dr. A.L. Jain (Director, Vision
School of Management) for allowingme to undertake the report and
making available all facilities for the successful completion of
the report
besides guiding me to pursue the study on proper line.
I also express my deep sense of gratitude towards Mr. Rahul Jain
(Guide, Faculty at VSM), Mr.
Vibhor Paliwal, Dr. Snehal Maheshkar, Ms. Pratibha Pagaria, Ms.
Shobhika Tyagi, P.L. Dashora
(Librarian) & all faculty members.
No Acknowledge would suffice for the support my family members,
my training
colleagues, classmates & friends.
Lastly, I extend my thanks to all those whose name have not been
mentioned way
in successfully carrying out the project report.
(MANU VIJAY)
CONTENTS
DECLARATION IPREFACE II-IIIACKNOWLEDGEMENT IVEXECUTIVE-SUMMARY
V-VIIITABLE-CONTENT XIPIE-CHART CONTENT XI-XII
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Particular Page No.Chapter 1 Company Profile 1- 42
1.1 Introduction of the Industry 11.2 History behind J.K. cement
191.3 Management Setup 221.4 J K Marketing Organization 231.5
Social Responsibility 231.6 Type of cement 261.7 Corporate Profile
271.8 Company Strength 291.9 Company Achievement 311.10 Corporate
Plan 331.11 Company Product 35
1.12 Information Required Under Section 217
(1)(e) of The Companies Act,
36
Chapter 2 Conceptual frame work 43-722.1 Introduction of
Employee Engagement 43
2.2 Understanding Employee Engagement in The Public
Sector
45
2.3 Interpretative Models of Employee
Engagement.
49
2.4 Power of Employee Engagement 582.5 The 9 Core Statement of
Engaged Employees 61
2.6 Four Fundamental Action Leading to +ve Results 622.7
Essential Reading 652.8 Latest on Employee Engagement 662.9 Earlier
Stories on Employee Engagement 70
Chapter 3 Review of Literature 73-893.11 Merit Board Links
Employee Engagement &
Productivity
73
3.12 Engagement Equals Productivity 743.13 Cambridgeshire County
Council 763.14 Rotherham Metropolitan Borough Council 77
3.15 CIPD (2006c): Employee variations78
3.16 B & Q 803.17 Towers Perrin 813.18 RBS - How a major
corporation uses its
employee data
82
3.19 Literature view on impact of engagement 87
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Particular Page No.
1.1 General characteristics2
1.2 Per Capital Consumption Of Cement (2003) 12
1.3 Capacity additions (million tones) 17
5.1 Employee engagement helps you a lot toincrease your
knowledge, skill, attitude & ability to
perform the job.
92
5.2 You had proper discussion with your head of
department on the topics of training or the areas of
production are decided after proper discussion with you.
95
5.3 The objective of the production were clear to
you.
98
5.4 The senior is able to provide you knowledge
about all the aspects, which you want.
101
5.5 The methodology of production was excellent. 1045.6 There is
open discussion between you & the
HRD.
107
5.7 You had achieved your learning goals from the
employee engagement.
110
5.8 The HRD department seriously follow-up the
suggestion provided by you for the improvement of the
production.
113
5.9 Is the employee engagement supportive? 116
5.10 If their any feedback system about the productionfrom the
production department.
119
5.11 What type of error may arise in your job, if youdont
involve in employee engagement.
122
5.12 What quality of production you are getting fromJ.K.
cement.
125
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Introduction :-
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Industry Profile:-
The Indian cement industry with a total capacity of 151.2
million tones (including
mini plants) in March 2003 has emerged as the second largest
market after China,
surpassing developed nations like the USA and Japan. Per capital
consumption hasincreased from 28kg in 1980-81 to 110kg in 2003-04.
In relative terms, Indias
average consumption is still low and the process of catching up
with international
averages will drive future growth.
Infrastructure spending (particularly on roads, ports and
airports), a spurt in
housing construction and expansion in corporate production
facilities is likely to
spur growth in this area. South East Asia and the Middle East
are potential export
markets. Low cost technology and extensive restructuring have
made some of theIndian cement companies the most efficient across
global majors. Despite some
consolidation, the industry remains somewhat fragmented and
merger and
acquisition possibilities are strong. Investment norms including
guidelines for
foreign direct investment (FDI) are investor-friendly. All these
factors present a
strong case for investing in the Indian market.
Cement industry trends in India:
Cement industry is growing at 10-12%YoY
There are over 125 large manufacturing plants and over 300 mini
cement
plants.
Over 180 million tonnes installed capacity and utilization is
over 90%.
Over 10 million tonnes exports.
Growth is driven by infrastructure and housing boom.Technology
changes in recent years towards modern and environmental
friendly.
General characteristics:
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Good made to stock
High capital intensiveLow labor intensiveHighly automated
End product is cheapLow differentiation
High weight/priceRatio, henceHigh freight cost
Cyclic industry,Demand related to economic activity .
Industry demand supply outlook:
GeneralCharacteristics
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As on31 march FY04 FY05 FY06Current Capacity 144.5 151.3
157.1Capacity growth 4% 4%Cement demand 117.2 127.1 141.6Demand
growth 8% 8%Domestic
consumption
113.8 123.1 135.6
Growth domestic
consumption
7% 10%
Exports 3.4 4.1 6.0Export growth 21% 47%Cement capacity
utilization
81% 84% 90%
Indias per capita cement consumption of 110kg per year, whereas
chinas
figures of 659 kg per year. This clearly shows that demand of
cement in Indias
market has a lot to catch up.
During the tenth plan, the industry, expected to grow at 10% per
annum
adding a capacity of 40-52 million tonnes, according to the
annual report of the
department of industrial policy and promotion (DIPP). The report
reveals that this
growth trend is being driven mainly by the expansion of existing
plants.
The Indian cement industry not only ranks second in the
production of
cement in the world but also produces quality cement, which
meets global
standards. however , the industry faces a number of constraints
in terms of high
cost of power , high railway tariff; high incidence of state and
central levies and
duties; lack of private and public investment in infrastructure
projects; poor
quality coal and inadequate growth of related infrastructure
like sea and rail
transport, ports and bulk terminals .in order to utilize excess
capacity available
with the cement industry, the government has identified the
following thrust areas
for increasing demand for cement:
1. Housing development program.
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2. Promotion of concrete highways and roads.
3. use of ready mix concrete in large infrastructure projects;
and
4. Construction of concrete roads in rural areas.
Indian cement industry is modern and uses latest technology.
Efforts are
being made to recover waste heat and success in this area has
been significant.
India is also providing different varieties of cement like
Ordinary Portland
Cement(OPC), Portland Pozzolana Cement(PPC), Portland Blast
Furnace Slag
Cement (PBFS), Oil Well Cement, Rapid Hardening Portland Cement,
Sulphate
Resisting Portland Cement, White Cement, etc.
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CEMENT MARKET IN INDIA:
KEY EXTERNAL DRIVERS
Punjab, Delhi, Haryana, Himachal Pradesh, J&K and Rajasthan
.
Maharashtra and Gujarat
Tamil Nadu, Andhra Pradesh, Karnataka, and Kerela
Bihar, Orrisa, West Bengal, Assam and Meghalaya
Madhya Pradesh and Uttar Pradesh
NORTH
WEST
SOUTH
EAST
CENTRAL
P R I M
A R Y
D R I V
E R S
I N F R
A -
S T R U
C T U
R E
I N P U
T C O
S T
S E A S
O N A L
I T Y
SECOND-ARY
DRIVERS
*Bank
lending rate*Disposable
income*Government
initiative
*Raw
material cost*Fuel price
*Transportation cost
*Monsoon
*Festiveseason
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75-80% CaCO 3,
Chalk, Limestone,
20-25% Sio 2 + Al2O3 + Fe2O3, Clay,
Sand, Shale.
QuarryingQuarrying
Crushing
Additives
Crushing
Mixing
Burning to Clinker
Raw Grinding
Gypsum
Cement
Cement Grinding
A FLOW DIAGRAM OFCEMENT MANUFACTURING PROCESS:
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Profit does not provide the only clue to a companys true
performance.
This is because not all benefits and costs, arising from the
companys
operation, find their way to the balance sheet. For instance,
the positive impacts of
a companys operation on people in its vicinity, say the
establishment of ahospital, do not appear in its balance sheet.
Neither do the negative impact.
It is for such reason that J.K. Cement prefers to highlight its
performance
from three different angles, or what is called The Triple Bottom
Line
(1). Economic (balance sheet performance)
(2). Community (service to the society or community)
(3). Environmental (steps taken to nurture environment)
At J.K. Cement, we call them THE 3 Ps of Performance
Profit, People & Planet.
PROFIT:J.K. Cement way as far as profit is concerned besides
making efforts to
influence turnover J.K. Cement emphasize on cutting cost to cut
ahead. The reason
is simple turnover is an outcome of the price, price realization
and quantity sold
all factors dependent on externalities like government policies
and market cycles
which are beyond companys control. Cost, on the other hand, is
something J.K.
Cement can and does exercise a lot of control over.
Packing &
Transportation3 Ps of PERFORMANCE at J.K. CEMENT:
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PEOPLE:
The importance of the HR function lies in the fact that in an
extremelycompetitive industry like cement, the company's
performance depends on the
creativity, motivation and initiatives of the individuals.
Individuals comprise the
critical resource, instrumental in bringing about improvements
in the
manufacturing process thereby reducing operating costs and
maximizing gains.
To maximize gain from people side ASCENT GROUP has been
created.
Ascent group is a motley collection of individual who get
together to engage in the
self-development projects and motivate each other.Beside this an
IN-HOUSE MAGAZINE MANTHAN is published. The
simple objective of bringing out such magazine was to create a
regular forum for
people at J.K. Cement to interact and express ideas and
feelings. It is believed that
such an effort would have positive payoffs far beyond its
pages.
Beside this every year it organizes HANUMAN MANDIR CULTURAL
FIESTA.
PLANET:
Produce more with less has been J.K. Cements guiding philosophy
over
the years. The objective is to leave the minimum footprint, or
negative impact, of
its operations on the earths resources.
To protect environment J.K. Cement has taken various initiatives
in the field as
water conservation by Recycling of Waste Water , Rain Water
harvesting , by
reducing Co2 emission, by Green belt development and by energy
conservation
http://www.shreecementltd.com/story_main.asp?storyid=Web2000011shree5:48:55%20PM33&sitecode=shreehttp://www.shreecementltd.com/story_main.asp?storyid=Web2000011shree5:36:47%20PM32&sitecode=shreehttp://www.shreecementltd.com/story_main.asp?storyid=Web2000011shree5:36:47%20PM32&sitecode=shreehttp://www.shreecementltd.com/story_main.asp?storyid=Web2000011shree5:36:47%20PM32&sitecode=shreehttp://www.shreecementltd.com/story_main.asp?storyid=Web2000011shree5:48:55%20PM33&sitecode=shree
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SWOT- ANALYSIS:-
STRENGTHWEAKNESS
OPPORTUNITYTHREATS
Low cost productionLime stone reserves
Captive power plant
Low logistic cost
100% use of pet coke as fuel
No rail at Ras siteWaiting time of trucks adds to
extra cost
Explore new alternate fuel
Increase the sale of PPC
Explore new markets
Improve IT infrastructure
Rise in inflation
Gap in demand & supply
Increasing competition
Increase in fuel price
Reduction in cement prices
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Objective, CSI
The purpose of the Cement Sustainability Initiative is to:
Explore what sustainable development means for the
participatingcompanies and the cement industry.
Identify and facilitate actions that companies can take as a
group and
individually to accelerate the move towards sustainable
development.
Provide a framework through which other cement companies can
participate, and
Provide a framework for engaging external stakeholders.
Agenda, CSI
The 10 companies involved in the CSI have chosen to develop an
agenda for three
reasons:
To prepare for a sustainable future by making a more efficient
use of
natural resources and energy, and engaging with local issues in
emergingmarkets.
To meet the expectations of stakeholders and maintain their
license to
operate in communities across the world through a greater
transparency of
operations, effective engagement with society and initiating
actions, which
lead to sustained positive changes, and
To individually understand and build new market opportunities
through process innovations, which achieve greater resource/ energy
efficiency and
long-term cost savings; product and service innovations to
reduce
environmental impacts and work with other industries on novel
uses of by-
product and waste materials in cement production.
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The companies have identified six key areas where they believe
that the CSI
can make a significant contribution towards a more sustainable
society
Climate protection.
Fuels and raw materials.
Employee health and safety.
Emissions reduction
Local impacts.
Internal business processes.
A GLOBAL HEAVY WEIGHT
India is the second largest cement producing country in the
world. Cement
demand in the country grows at roughly 1.5 times the GDP growth
rate. The
industry had a turnover of around US$7.8 billion in 2003-04 and
according to
CRISIL is expected to grow at a CAGR of around 7per cent in the
next five years.
The demand for cement is closely related to the growth in the
construction sector.
Consequently, cement demand has been posting a healthy growth
rate of around
8per cent since 1997-98, propelled by the increased thrust on
infrastructure
development, and the higher demand from the housing sector and
industrial
projects. This trend is likely to continue in the coming
years.
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3.2 LOW PER CAPITAL CONSUMPTION A LONG TERM OPPORTUNITY
3.2.1 PER CAPITAL CONSUMPTION OF CEMENT (2003 )
1230
1030
830
630
430
230
0China India US Japan Korea Mexico
Germany Thailand France
Source: United States Geological Survey
Another factor that makes Indian cement an attractive investment
destination is the
combination of a lower per capital consumption and a faster
growth rate. The Indian
cement industry has registered a production of more than 100
million tones since 2001-
02.
The per capital consumption of 102kg as compared to the world
average of 260kg, 450kg
in China and 631kg in Japan underlines the tremendous scope for
growth in the Indian
cement industry in the long term.
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Prices and Profits to the Firm
Major players in the industry are not planning any significant
capacity addition for the
next two years. Considering the gestation period of setting up a
cement plant, additional
supply from new capacities, if any, will arrive only from
2005-06 onwards. Limitedcapacity additions and high demand will
narrow the demand supply gap, improve price
realizations and lead to higher profitability.
Any further reduction in import duties on cement and clinkers is
unlikely to affect the
industry as the cement produced is at par with the international
standards and the prices
are lower than those prevailing in other international
markets.
3.3.POLICY
Opening up the FDI Channel
The impact of government policies on cement demand has been
steadily decreasing with
the sector being gradually deregulated. At present, 100per cent
foreign direct investment
(FDI) is permitted in the cement industry. Lafarge was the first
foreign company to enter
the Indian market in 1999.
Easing Environment NormsTo set up a cement plant in India, with
an investment of over US$22million entrepreneurs
are required to obtain environmental clearance from the Ministry
of Environment.100per
centFDI is allowed for private cement companies to set up power
projects as well as coal
or lignite mines for captive consumption. State policies and
norms to encourage
investment.
Both the state and export policies promote cement production.
Exporters can claim duty
drawbacks on imports of coal and furnace oil up to 20 per cent
of the total value of
imports. Most state governments offer fiscal incentives in the
form of sales tax
exemptions in order to attract investment. In some states, this
applies only to intra-state
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sales, like Madhya Pradesh and Rajasthan. States like Haryana
offer a freeze on the
power tariff for 5years, while Gujarat offers exemption from
duty on electricity.
3.4.TRENDS AND PLAYERS
Cement production in India has increased at a CAGR of 8.1per
cent during the last
decade with a production level of 117.5million tones in 2003-04.
The cement
industry comprises 125 large cement plants (capacity more than
0.198million
tones per annum) with an installed capacity of 148.28million
tones and more than
300 mini cement plants (capacity less than 0.198million tones
per annum) with an
estimated capacity of 11.10million tones per annum.
The industry worked at an estimated 80.2per cent capacity in
2003-04. Small
plants, however, work at an installed capacity of around 40per
cent.
Among the different varieties of cement, India produces Ordinary
Portland
Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast
Furnace Slag
Cement (PBFS), Oil Well Cement, Rapid Hardening Portland Cement
and
Sulphate Resisting Portland Cement. The share of blended cement
in total cement
production has increased from 29per cent in 1997-98 to 54.5per
cent in 2003-04.
Deconstructing Costs
Energy (including the landed cost of coal), freight and
limestone costs are the
major cost components of the cement industry. These costs
account for around
35per cent, 22per cent and 9.5per cent of the total production
costs respectively.
Decline in energy cost
Indian cement companies have been able to curtail costs through
the setting up of captive
power plants. There has been a decline in the average coal
consumption from 0.18 tones per
tone of cement to 0.17 tones per tone due to pyro processing
systems, increased usage of
imported coal (with higher calorific value) and the higher
production of blended cement.
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The switch from the wet process to the dry process of cement
manufacturing has also aided
in saving energy costs.
DOMESTIC PLAYERS
Associated Cement Companies Ltd (ACCL)
ACC Ltd manufactures ordinary Portland cement, composite cement
and special
cement and has begun offering its marketing expertise and
distribution facilities to
other producers in cement and related areas. It has twelve
manufacturing plants
located throughout the country with exports to SAARC nations.
The company plans
capital expenditure through acquisitions. Non-core assets are to
be divested to release
locked up capital. It is also expected to actively pursue
overseas project engineeringand consultancy services.
Birla Corp
Birla Corps product portfolio includes acetylene gas, auto trim
parts, casting, cement,
jute goods, calcium carbide, yarn etc. The cement division has
an installed capacity of
4.78million metric tones and produced 4.77million metric tones
of cement in 2003-04.
The company has two plants in Madhya Pradesh and Rajasthan and
one each in West
Bengal and Uttar Pradesh and holds a market share of 4.1per
cent. It manufacturesOrdinary Portland cement (OPC), Portland
pozzolana cement, fly ash-based PPC,
Low-alkali Portland cement, Portland slag cement, low heat
cement and sulphate
resistant cement. Large quantities of its cement are exported to
Nepal and Bangladesh.
Going forward, the company is setting up its captive power plant
to remain cost
competitive.
Grasim Ultra Tech Cemco
Grasims product profile includes viscose staple fibre (VSP),
grey cement, whitecement, sponge iron, chemicals and textiles. With
the acquisition of Ultra Tech,
L&Ts cement division in early 2004, Grasim has now become
the worlds seventh
largest cement producer with a combined capacity of 31million
tones. Grasim (with
Ultra Tech) held a market share of around 21per cent in 2003-04.
It has plants in
Madhya Pradesh, Chattisgarh, Punjab, Rajasthan, Tamil Nadu and
Gujarat among
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others. The company plans to invest over US$ 9million in the
next two years to
augment capacity of its cement and fibre business. It also plans
to focus on its
international ventures, ramping up the capacity of Alexandra
Carbon Black in Egypt to
1,70,000 tones Per annum (from1, 20,000tpa) and raising the
capacity of the carbon
black plant in China from12,000tpa to 60,000 tpa.
Gujarat Ambuja Cements Ltd (GACL)
Gujarat Ambuja Cements Ltd was set up in 1986 with the
commencement of commercial
production at its 2million tone plant in Chandrapur,
Maharashtra. The group has clinker-
manufacturing facilities at Himachal Pradesh, Gujarat,
Maharashtra, Chattisgarh, Punjab
and Rajasthan. The company has a market share of around
10per
cent, with a strong foothold in the northern and western
markets. Its total sales aggregated
US$ 526million with a capacity of 12.6million tones in 2003-04.
Gujarat Ambuja is
Indias largest cement exporter and one of the most cost
efficient firms. GACL has a
14.45per cent stake in ACC, making it the second largest cement
group in the country,
after Grasim-Ultra Tech Cemco. The company has free cash flows
that it is likely to use
to grow inorganically. The company is scouting for a capacity of
around two million tone
in the northern and western markets. It has also earmarked
around US$ 195-220 million
for acquisition.
India Cements
India Cements is the largest cement producer in southern India
with a total capacity of
8.81million tones and plants in Andhra Pradesh and Tamil Nadu.
The company has a
market share of 5.4 per cent with a total cement production of
6.36 million tones in 2003-
04. Its product portfolio includes ordinary portland cement and
blended cement. The
company has limited its business activity to cement, though it
has a marginal exposure to
the shipping business. The company plans to reduce its manpower
significantly and exit
non-core businesses to turn around its fortune. It also expects
the export market to open
up, with the Gulf emerging as a major importer.
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JK Synthetics
JK Synthetics, a Singhania Group company, started manufacturing
nylon at Kota in 1962.
Subsequently, it diversified into PSY/PFY, nylon tyre-cord,
cement (in 1975), acrylic and
white cement (1984). The company has a market share of 2.7per
cent. JK Synthetics
Limited is restructuring its business divisions into two
separate entities- JK Cements and
JK Synthetics. After the restructuring, it will be left with a
cement plant at Nimbahera in
Rajasthan, with a capacity of 3.26 million metric tones and
manufacturing white cement.
3.4.MARKET OPPORTUNITIES FOR INVESTMENT
Growing demand-supply gap
Capacity additions (million tones)
Capacity additions (million tones)
250
200
195.2168.2
150146.4
117.3
100
1
50
02003.4 2006-07
According to CRISIL estimates, given the demand-supply gap of
roughly
40million tones, capacity addition is expected over the next
five years. Of this,
almost 30million tones will be met through Greenfield/Brownfield
expansions
Capacity demand
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and 10million tones through blending. The capacity addition of
30million tones
would require an investment of around US$ 2.2 billion.
Consolidation opportunity: Merger and Acquisitions
Cement capacity that can be sold million tones
Million tonesEast 1.20West 2.36North 10.37South 9.42Total
23.35
Consolidation is expected to increase further in the cement
industry. Around 23million
tones of additional capacity could be sold simply because on a
stand-alone basis these
units are unviable. As part of a larger group, their operations
could be cost effective. This
opens up a number of possibilities for acquisitions and
mergers.
The Infrastructure Opportunity
The National Highways Development Project (NHDP) includes the
5,846km Golden
Quadrilateral (GQ) and the 7,300km North-South, East-West
corridor. In addition, up-
gradation of rural roads, up-gradation to four/six lanes of
about 13,000km of National
Highways and 10,000km of additional highways have been
initiated.
The NHDP is expected to lay a significant part of the roads in
cement concrete. Thus, if
25per cent of the roads of East-West corridors are laid by
concrete, it is likely to lead to
an incremental demand of 5-6million tones of cement per annum.
Likewise, the Golden
Quadrilateral is expected to add 4-5million tones of demand per
annum. The total
demand from these road projects is expected to generate an
incremental growth of 4-5per cent per annum over the next 2-3
years.
Among other infrastructure sectors, construction and
modernization of four airports
and two seaports, railroad, power plants and water management
systems are also likely
to boost the demand for cement, in particular the ready-mix
cement.
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Company Profile
1.1 HISTORY BEHIND J K CEMENT
The initial "J.K." stands for a father- son team, namely:
Juggilal Kamlapath
Singhania
J .K. organization started in the year 1884 at Calcutta. J .K.
started their
business as a Financier, Investor, Trading Supplier of cotton
belts and
manufacturer of small machinery parts like V' belts, etc. They
established
few small cotton textile industries also.In the year 1914 they
shifted their business from Calcutta to Kanpur where
they established many big industries like J.K. cotton Mills,
Straw product
Co, Lohia Mach, J.K. Pulp and Raymonds Woolen, etc.
In the year 1934 J.K. organization started one more division, as
J.K.
Synthetics Ltd. They established various big plants of Nylon,
Acrylic fiber,
etc. at Kota and Tyre Cord, Chemical and Pesticides at
Jhalawar.In the year 1974 under the same division one more unit was
started for
manufacturing of Grey Cement at Nimbahera.
Expansion of this plant took place in the year 1979, when 2nd
kiln was
commissioned with a capacity of 1200 tone per day and 7-lakh
tones per
year. After modification in Preheater its present capacity is
1800 TPD.
Again in the third phase, a kiln was erected in the year 1982
and production
of this kiln was 1350 tone per day.
In the year 1988 a new technology was introduced in this 3rd
Kiln that
consisted of precalcination process, which raised the capacity
of this plant
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to 3400 tone per day,which was earlier 1350 tone per day.
Besides, J.K.
cement plant is having its own diesel generator sets, producing
power to
meet the power energy requirements.
Main raw material for cement is LIMESTONE, for limestone we have
our own open cast mines adjoining to the plant. Besides we have
developed few
more mines at Maliakhera, Karoonda and Tilakhera for producing
10,000
tones limestone per day as needed.
J .K. Cement erected one more plant from Jan. 2001 with the
capacity of
1400 tone per day at village Mangrol . In Nov.-2003 after
modification in
Preheater and installation of Mechanical elevator its capacity
increased to
2200 TPD.
Due to power shortage as imposed by Ajmer electricity supply
board J.K.
established its own Thermal Power Plant at village Bamania,
near
Shambhupura, which is generating 15 M.W. power every day, which
is
consumed by J.K. Cement Plant.
J K Cement also has a plant of 400TPD-installed capacity of
White Cement
at Gotan, Nagpur (Raj).
J.K. Cement has started the following projects:
Cement Project at Karnataka of over 5500 TPD and Thermal Power
Plant of
capacity 30 MW.
Thermal Power Plant at Nimbahera of 22 MW.
Waste Heat Recovery Plant at Nimbahera of 15 MW capacity.
Bhumi Poojan of Dr Gaur Hari Singhania Technical University
at
Bhatewar, Udaipur.
J.K. cement is one of the most productive, cost efficient cement
producing
plant in the country, a company, believing in corporate
responsibility to
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Year Turnover PBT
2005-06 1108.7 52.2
2006-07 1529.7 272.02007-08 1812.8 346.6
1.3. MANAGEMENT SET- UP
1.3.1 Corporate Level- Kanpur
Chairman - Dr Gaur Hari Singhania
Managing Director - Shri Y P Singhania
Group Executive President - Shri R G Bagla
1.3.2Unit Head Level- Nimbahera
President - Shri.D.Ravisankar
1.4. J K Marketing Organisation & R T C - North
J.K.Organization
J.K. Cement ltd.
J.K. Cement Works (Grey Cement)1. J.K. Cement works, Nimbahera2.
J.K. Cement works, Mangrol3. J.K. Thermal Power Plant, Bamania4.
J.K. Thermal Power Plant, Nimbahera
Project:J.K. Cement Project, Karnataka
J.K. White Cement WorksJ.K. Grey Cement Works
Gotan,Nagaur,
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1.4.1 J K MARKETING ORGANIZATION
The Head office of Marketing Department of J K Cement Ltd. is at
Delhi,
which is headed by Sr. V P (Marketing-Grey Cement) and Sr. V P
(Marketing-
White Cement). The White Cement is sold all over India and the
Grey Cement
is sold in the States of Rajasthan, M.P., U.P., Haryana, Punjab,
Gujarat and
Delhi. With the commissioning of J. K Cement Project, Karnataka
Southern
region will also be covered for Grey Cement .
1.4.2 Regional Training Centre
The Regional Training Centre - North is a premier training
centre of North
India promoted with assistance from World Bank, DANIDA and Govt.
of India
as a unique HRD project in Cement Industry is also attached with
J K cement
Works as Lead Plant. It is equipped with modern training aids
and caters to the
skill enhancement and competency developmental needs of more
than 20
cement and other plants. It has trained over 5000 technical and
managerial
personnel during the last 12 years.
The centre has conducted many tailor-made in-house programs for
cement and
other industries in India and abroad including for Oman Cement,
Oman and
Star Cement,
1.5. SOCIAL RESPONSIBILITY
Educational services:
Construction of rooms in Govt. College at Nimbahera.Running JK
Institute of Technology, ITI in five trades affiliated to
NCVT.Running 10+2 CBSE affiliated schoolRunning Regional Training
Centre for Cement technocrats aided by WB &DANIDA.Various
constructions in nearby govt. Schools of Chittorgarh district.
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We are involved in girls school (under construction) and
committedreasonable financial contribution for above
Medical services
Rs. 36 lacks contribution for the construction of govt. Hospital
at Nimbahera.Ambulance to govt. Hospital.Free facility of
pathological laboratory for the persons of surrounding
area.Financial contribution to various NGOS for medical camps in
the district.Financial contribution for construction of dispensary
& health centre innearby villages.Free Homeopathic
consultancy/medicines for the patients of nearby area.
Religious services
Radhakrishna temple at colony premises.
Prayer hall in hanuman temple in Nimbahera.
Bheemkeshwar temple in staff colony.
Dharmashala at Bhanwarmata (tourist/ religious place).
8 rooms for Dharamshala at Pashupati Nath temple in Mandsaur
(M.P.).
Various temples in number of nearby villages.
Sports services
Sports infrastructure like wooden badminton court, table tennis
court,
billiard room, and cricket ground, volleyball ground in colony
campus.
Sponsoring all India youth football, volley ball and badminton
tournaments.
Sponsoring inter-district tournaments.
Arranging summer camps for various sports.
Other social services
Construction of approach roads in
and around villages of mining area.
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Digging of tube wells.
Supply of tube well pumps.
Construction of water tanks.
Supply of drinking water in tankers innearby needy places during
summer.
Regular plantation in plant, colony
and nearby villages.
Direct and indirect employment to
thousands of persons of surrounding
area.
Financial helps to NGOS.
Financial aid to organize religious
festivals by municipals
Cement
Cement are bonding consisting essentially of compounds of
calcium oxide with
silica alumina and iron oxide which can harden in air and
water.
In general cement is a generic name for powdered materials,
which initially have
plastic flow when mixed with water or other liquid but form a
solid structure in
several hours with varying degree of strength & bonding
properties, which
continue to improve with age.
History of Cement
Joseph Aspendence discovered cement in1824.
Materials used were Lime, Brick bed marl volcanic lava ash and
water.
Burn these materials in furnace at 1200C and ground with
gypsum.
1897 wet process kilns came in existence.
Semi-dry process kiln slowly picked up.
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Dry process with two-stage kiln.
Four stage pre-heater with pre-calcinator.
Developed grinding process.
Types of Cement
Future Cement : - Portal cement tried cement and Soral cement,
Reactive belite
cement and rice husk ash cement.
BIS covers 14 types of cement.9 are commercially produced in
India.
Major cements are OPC, PPPC, PSC.Cements are classified into
four groups
o General purpose cement
o Cements to meet environmental & climatic needs.
o Cements to meet the service conditions in construction.
o New cements .
1.5.1 Types of cementCEMENT SYMBOL STANDARD
Ordinary Portland Cements 33 grade 33OPC IS: 269-1989Ordinary
Portland Cements 43 grade 43OPC IS: 8112-1989Ordinary Portland
Cements 53 grade 53OPC IS: 12269-1987Portland Slag Cements PSC IS:
455-1989Low Heat Portland Cement LHC IS: 12600-1989Rapid Hardening
Portland Cement RHC IS: 8041-1990Sulphate Resisting Portland Cement
SRC IS: 12330-1989Portland Pozzolana Cement
(Fly ash based)
PPC (Fly ash
based)
IS: 1489(Part1)-1991
Portland Pozzolana Cement(Calcined clay based)
PPC (Calcinedclay based)
IS: 1489(Part2)-1991
Masonry Cement MC IS: 3466-1988High Alumina Cement HAC IS:
6452-1989Supersulphated Cement SSC IS: 6909-1990White Portland
Cement WPC IS: 8042-1989Oil Well Cement OWC IS: 8229-1989
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Hydrophobic Cement HC IS: 8043-1991
CLASSIFICATION OF CEMENT
S.No CLASSES OF CEMENT CEMENT1. General purpose cement OPC, PPC,
PSC, HSC2. Cements to meet environmental & climatic
condition needs
SRC, HAC, SSC, HC
3. Cements to meet the service conditions in
constructions
HAC, LHC, RHC, HSC,
OWC, WPC4. New cements Portal cements, trief
cement and soral cements
and rice husk ash cement4.1.CORPORATE PROFILE
Vision
To be a premium conglomerate with a clear focus on each
business.
Mission
To deliver superior value to our customers, shareholders,
employees and society at
large.
Values
Respect for the individual, integrity, speed, simplicity,
seamlessness, self
assuredness and a 100per cent commitment are the values we
value.
Management Philosophy
Customer Satisfaction
Always invest in latest technology
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Huge distribution network creation
Expansion through balancing equipment
Constant focus on cost control & quality
Invest in Managers & Develop people skills
Stability of Executive Management & Low Employee
Turnover
Social Welfare A Priority
Salient Features
1. First dry process plant in India.
2. Latest process precalcinator technology for clinker.
3. UNT II was first PLC controlled cement plant in India.
4. Most modern and sophisticated central control room for entire
process
control from one point.
5. First Fuzzy Logic Control kiln and Cen-scanner for monitoring
of kiln
shell temperature in India.
6. On-line quality control by X-ray analyzer.
7. First computerized management system in Indian cement
industry.
8. Now computerized management system extended to stores,
purchase,
sales, accounts, and personnel functions.
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9. Continuous on going process of training &
development.
4.2.COMPANY STRENGTH
We enjoy a number of key competitive advantages, which have
helped us maintain our
position as one of the leading cement manufactures in the
Northern Indian cement
market. Our principal strengths and competitive advantages are
as follows:
Leading position in attractive Northern India grey cement
market:
Based on CMA data, Northern Indian cement manufacturers have
consistently
operated at the highest levels of capacity utilization among
Indias five regions. We
believe this reflects the strong demand in Northern India for
cement products relative
to supply. Further, based on capacity expansions announced by
cement manufacturers,
we except cement plants in Northern India to continue to operate
at high utilization
levels and anticipate continued strong demand for our grey
cement products in the
near and medium-term. We believed that we are well positioned to
take advantage of
this demand, as the fourth largest grey cement manufacturer in
Northern India, and thelargest grey cement manufacturer in the
state of Rajasthan.
Second largest white cement producer in India:
White cement accounted for 16.6% of our total revenue and 35.2%
of adjusted EBITDAfrom our cement operations in fiscal 2005, and
15.5% of revenues and 26.7%of our adjusted EBITDA from our cement
operations in the six months endedSeptember 31,2005.
Unlike grey cement, the white cement industry in India is highly
concerned with the two
largest players accounting for the substantial majority of
Indias production capacity.
Consequently, prices of white cement have been relatively less
volatile and sales of white
cement have generated more stable cash flows for us even during
industry downturns in
grey cement. We also believe our position as the second largest
producer of white cement
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in India, together with our nationwide delivery network,
significantly enhances the
overall brand image of JK Cement.
Proximity and access to large reserves of high quality
limestone:
We have access to large reserves of limestone for both our grey
and white cementoperations, which we believe are sufficient to
sustain our operations well intothe future. Based on independent
geological surveys of different mines during1996 to 2001, we
believe that our limestone reserves are sufficient to supportour
current and planned capacity for approximately 40 years for both
greyand white cement. (Put in risk assuming we are able to renew
our existingleases upon their expiry). As one of the first cement
producers in NorthernIndia, we were able to choose our limestone
reserves in an area with highquality limestone resources. In
addition to allowing us to produce whitecement, which requires high
quality limestone, it also provides us with a costadvantage, as we
are not required to purchase sweeteners to improve the
quality of limestone.
Further, our manufacturing plants are in close proximity to our
limestone reserves,resulting in lower transportation costs.
Finally, our mines that supply our white cement plant at Gotan also
have a supply of white clay, an importantadditive necessary for
white cement production.
Experience and technical know-how:
We have 30 years of experience in the Indian cement industry,
which we believe providesus with the skills to maximize production
efficiency, expand production capacity quickly
and reduce costs. Over the years, we believe that we have
developed long-term customer
relationship and a strong reputation for quality.
Further, we have a stable and experienced middle and senior
level management team,
many of whom have been working in our cement operations for more
than 20 years. Our
Nimbahera manufacturing facility was chosen by World Bank and
the Danish
International Development Agency as one of the four training
centers in India to serve asthe Regional Training Center for
Northern India.
There are only four regional training centers for the cement
industry in India, and we
believe our operation of the training center provides us with
access to state of art training
aids, live working models, and technical expertise developed by
well known national and
international cement producers.
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4.3.COMPANY ACHIEVEMENTS
The key events in respect of the JKSL Cement Division and the
Company are set forth
below:
YEAR
1975
The grey cement plant at Nimbahera, with an initial capacity of
0.3 MnTPA, commenced
commercial production
1979
A second production line was added at Nimbahera, increasing the
capacity from 0.3
MnTPA to 0.72 MnTPA
1982
A third production line was added at Nimbahera, increasing the
capacity from 0.72
MnTPA to 1.14 MnTPA
1984
Lime-based white cement plant was established at Gotan, with an
initial capacity of 0.05
MnTPA
1987
A captive thermal power plant was installed at Bamania
1988
A pre-calciner was installed at Nimbahera, increasing the total
capacity to 1.54 MnTPA
1990
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The JKSL Cement Division instituted Architect of the Year
award
1994
(i) The Company was incorporated
(ii) The Regional Training Centre for Northern India, which was
established at the
Nimbahera plant of the JKSL Cement Division with aid from the
World Bank and the
Danish International Development Agency, commenced service
2000
The total capacity of the white cement plant at Gotan was
increased to 0.3 MnTPA as a
result of continuous modernization and up gradation
2001
A new grey cement plant with a capacity of 0.75 MnTPA was
installed at Mangrol
2004
(i) The Company acquired the JKSL Cement Division
(ii) The total capacity of the grey cement plant at Nimbahera
was increased to 2.8
MnTPA as a result of continuous modernization and
upgradation
2005
(i) The Company allotted 7,426,950 Equity Shares to the
shareholders of JKSL pursuant
to the AAIFR order dated January 23, 2003
(ii) The Company was listed on the BSE
2006
-JK Cement has finalised the issue price of its recently
concluded initial public offering
(IPO) at Rs 148 per share.
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-Jk Cement Limited has informed that w.e.f. 16.12.2006 Mr.
Manish Bajpai Company
Secretary and Compliance Officer of the company has resigned and
in his place Mr.
Ashish Sabharwal has been appointed as Company Secretary.
2007
-Jk Cement Limited has appointed Dr. K.B. Agarwal as Additional
Director of the
Company to hold office until the conclusion of next Annual
General Meeting.
4.4.CORPORATE PLAN
Increase Power generation capacity to 50MW by 2006-2007.
Establish one
R&D center for cement & its applications such as
concrete, tiles etc. To achieve
specific power consumption level of 85units per tone of cement.
O.k. Cement
has excellent track record of HR Planning and Development. The
initiative
taken for setting up Regional Training Center (RTC) as Nimbahera
(in the
campus of J.K. Cement works) is an indication of Managements
commitment
towards HRD. The Center at Nimbahera is one of the four Rats in
India andcaters the manpower development needs, not only to J.K.
Cement Works, but
also supports cement industry in Western M.P., Rajasthan,
Haryana, Jammu &
Kashmir, Himachal Pradesh and Punjab (i.e. Northern Region).
1. First Five-Year Plan (1951-56): -
In the beginning of the first five-year plan, there were 22
factories with a
production was 2.69million tones only. The target set for the
first five-year plan
was 5.02million tones. Therefore, capacity enhancement was the
main objective
of this plan.
2. Second Five-Year Plan (1956-61): -
Due to the rising demand a the end of the first plan period
government imposed
a sort of control of issuing an order under section 18G of the
industries
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(Development & Regulations) Act, 1951, making it necessary
for all cement
producers to sell their total production to State Trading
Corporation of India for
distribution to consumers at uniform price fixed by the
Government from time
to time on F.O.R. destination basis.3. Third Five-Year Plan
(1961-66): -
This plan marked for industrial growth led the government to
anticipate a heavy
shortage of cement and to meet this challenges. Expansion
programs were
undertaken:
To make survey for the prospecting and providing cement grade
limestone
in the country.
To set up unit in public sectors to achieve plan targets.
To support all the ancillary and subsidiary activities connected
with cement
and make efforts for its growth and development.
4. Policy of 1980:
National Highway Project, new railway lines, bridges, irrigation
canals and
dams reshaped the country and projected a new face of the
industrialists
scenario. The government of India had to decide start a partial
decontrol of
cement industry and subsequently to fuller decontrol of it. The
new policy
granted cement manufactures a profit of about 12% in their
investments so that
rapid increase in cement production can take place to bridge the
gap of demand
and production capacity.
Greenfield Grey Cement at Karnataka in Jaykaycem Ltd A
Greenfield Grey Cement project is being set up in Jaykaycem Ltd.
(wholly
owned subsidiary of the Company) at Mudhol in the State of
Karnataka with a
capacity of 3.5 million tones at an estimated project cost of
Rs.1050 crores
(Rs.950 crores to be spent in first phase and Rs.100 crores in
second phase for
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putting up a Grinding Unit at Bellary). The project cost
includes cost of Captive
Power plant of 50 MW. Foundation stone of the plant was laid on
8th December;
2007.The Company is in process of obtaining various approvals.
Necessary land
has already been acquired and orders for long delivery items of
plant andequipments have already been placed. Financial closure of
the project is likely to
be completed by end of September 2007. The Company proposes to
invest about
Rs. 400 Crores in the said project from its internal accruals. A
total sum of
Rs.76.40 crores has already been spent on the project. Barring
unforeseen
circumstances, the project is expected to be on stream in first
quarter of 2009.
During the year, the Company has acquired from IDBI the assets
of Nihon
Nirmaan Ltd. at Gotan for Rs.42 crores. The Company has decided
to utilize thisfacility to produce Grey cement. It has been decided
to revenue these facilities at
an estimated cost of Rs.70 crores the capacity of plant is
expected to be 4 Lacs
Tons Revamping has already started and it is likely to be
completed by December
2007. In the meantime, the Company has already started grinding
facilities at the
plant w.e.f. 19.3.2007.
4.5.COMPANY PRODUCTS
We produce grey cement and white cement. Grey cement produced by
us consists of
Ordinary Portland Cement (OPC) and Portland Pozzolana Cement
(PPC). OPC has
three principal grades that are differentiated by their
compressive strengths, and consists
of 53-grade, 43-grade and 33-grade OPC.
All our products comply with the quality standards specified by
the Bureau of Indian
Standards (BIS). Our cement products are marketed under the
brand names J.K.
Cement and Sarvashaktimaan for OPC products, J.K. Super for PPC
products and J.K.White and Camel for white cement products, which
we believe are well known brands in
their respective markets.
Types of Cement
Grey Cement White Cement J.K. Wall Putty
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GREY CEMENT:
SPECIFICATION GREY CEMENTRAW MATERIAL LIMESTONE &
GYPSUMTRADE NAME SARVASHAKTIMAANTRADE MARK VIJAYSTAMBHPRODUCTS
GRADES 43, 53, PPCPACKAGING CAPACITIES 50 Kg per bag
During the year under report, the production of Grey cement at
Nimbahera and Mangrol
plants were higher at 3.64 million tons compared to 3.51 million
tons in the previousyear. Sales volume also increased in tandum
with production. Higher realizations during
the current year coupled with increase in production of blended
cement resulted in
substantially higher profits after setting of price increase of
various inputs.
INFORMATION REQUIRED UNDER SECTION 217(1)(e) OF THECOMPANIES
ACT, 1956
A. CONSERVATION OF ENERGY
(a) Energy conservation measures taken:
* Installation of Cement Mill 5 to increase production of Cement
Mill 4 along with close
circuiting.
* Installation of Cement Mill 6 to increase production of Cement
Mill 3 along with close
circuiting
* Enlargement of down comer duct of PH 2 to save power.
* Replacement of Cement Mill 4 separator
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* Feeding of fly ash at outlet of Cement Mill 3 from fly ash
silo
* Close circuiting of 1 & 2 Cement Mills.
* ESP up gradation work at Kiln 4
* Additional Elevator for Cement Mill No.8
* Dust & Spillage Control System
* Installation of 13.0 MW waste heat recovery power plant.
* Installation of 20 MW Pet coke based captive power plant.
* Installation of 10 MW Turbine at Bamania to replace existing
7.5 MW Turbine.
* Installation of control & automation system at Kiln
-3.
B. TECHNOLOGY ABSORPTION (i) Research & Development,
specific area in which R & D has been carried out.
* Increase in fly ash in PPC production
(ii) Benefits Derived as a result of above R & D
* Fly ash addition has been increased from 18.44% to 24.08% at
NBH and from 17.72%
to 21.56% at Mangrol
* Reduction in cost
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* Cleaner Environment
* Smooth & continuous running of Kiln & raw mill
(iii) Future Action Plan
* Size reduction of clinker granule and limestone
* Mechanical transport system for Kiln 1&2 CM 3&4
(iv) Expenditure on R & D
The Research & Development activities are carried out by our
own team under
the advice and consultancy of foreign consultant. Apart from
regular expenditure
on research activities debited to profit & loss account
under different heads, the
company has paid contribution of Rs. 29 lacs to Research
institutes for carrying
out research and development work related to Company's
products.
(v) Efforts in brief, made towards Technology Absorption,
Adaptation and
innovation.
* Daily monitoring of power consumption
* Preventive monitoring of all critical equipments.
WHITE CEMENT:
The production of white cement at 248880 M.T. during the year
under review
against 226729 M.T. in 2005-06 recorded growth of 9.77%. This
was mainly on
account of robust growth of around 65% recorded in export
volumes (37294 tonsvs. 22472 tons). The growth in domestic market
(including Nepal) was 3.59%.
Increased market of value added products mainly wall putty also
contributed to
additional profits.
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A. CONSERVATION OF ENERGY
(a) Energy conservation measures taken:
* Steam exhaust cyclone dust collection arrangement modified for
online re-
feeding, eliminating the operation of additional drug chain to
conserve energy
* Calciner installed to enhance kiln capacity and achieve
further reduction in
energy consumption.
* A clay crusher was developed and installed at raw mill to take
care of large sizelumps and to cater demand for increased capacity
resulting in smooth operation
and energy conservation.
(b) Additional Investments & proposals being implemented for
reduction in
conservation of energy.
B. TECHNOLOGY ABSORPTION
(i) Research & Development, specific area in which R & D
has been carried out.
* Clinker dryer circuit optimization to achieve homogeneous
seasoning resulting
in improved cement quality
* Kiln inlet modified with improved seal to reduce the fresh air
entry to improve
the Clinkerisation process
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* The clinkerisation process controls switched to free lime
control in place of
clinker litre weight control by installing latest X-Ray analyzer
having XRF &
XRD features
(ii) Benefits Derived as a result of above R & D
*Consistency in quality with increased whiteness
*Consistency in kiln operation and clinker quality
(iii) Future Action Plan*Complete automatic Putty manufacturing
plant keeping the specialities of
imported high-speed mixers, batch controller, to cater the
increased market
demand and consistency in quality.
*Upgrading of Packing machines with check weigher arrangement
for 50 Kg.
Cement bags.
*Petcoke/Coal/Lignite based thermal power plant.
(iv) Expenditure on R & D
The Research & Development activities are carried out by our
own team under
the advice and consultancy of foreign consultant. Apart from
regular expenditure
on research activities debited to profit & loss account
under different heads, the
company has paid contribution of Rs. 29 lacs to Research
institutes for carrying
out research and development work related to Company's
products.
(v) Efforts in brief, made towards Technology Absorption,
Adaptation and
innovation.
* Monitoring of energy consumption
* Proactive approach towards Environmental Management
System.
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J.K. Wall Putty:
White cement based putty for luxurious and silky interior/
exterior finish of our
dream home. J.K. Wall Putty is White Cement based putty for
cement plastered
walls and ceilings. J.K. Wall Putty is used to fill the uneven
surfaces of cement plastered walls and concrete walls. Application
of J.K. Wall Putty provides
smooth and strong finish to the walls for further application of
all kinds of
paints. The smooth finish gives better look to interiors and
exteriors.
Surface Preparation:
The surface should be cleaned to make it free from dirt, dust,
grease, oil and
paint. All foreign impurities should be removed with a
wire-brush. Wall
surfaces should be cured so that the surface is saturated with
water yet in touch
dry condition.
Treatment of New Surface:
The new surface requires only soft treatment such as removal of
dust, dirt and
foreign matter. In case of cracks, voids and damages; it should
be patched up
prior to application of J.K. Wall Putty with grey/white
cement.
Treatment of Old Surface:
All loose material and/or organic growth must be removed with
putty blade or
brush. In case of old painted surface scrub the surface with
course emery
stone/paper.
Preparation of J.K. Wall Putty Paste:
J.K. Wall Putty is a fine powder. Mix slowly J.K. Wall Putty
with approx.40%
water by volume to prepare paste of desired consistency. Mix
vigorously for 5-10 minutes lump free, uniform and smooth putty
paste. Product should be
mixed in required quantities to be used within 2-3 hrs. of
preparation.
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Application:
Apply uniformly the first coat of J.K. Wall Putty with blade/
trowel on the wall
from bottom to top. Apply second coat after the first coat has
dried completely.
Limit the total thickness of 2 coats to 1.5mm. Allow completely
drying andthen use fine emery paper to remove the application mark
if any. Any kind of
paint can be applied on this surface. Use water for curing
before applying paint.
Precaution:
Although J.K. Wall Putty does not contain any toxic material,
use rubber gloves
while mixing, as prolonged exposure with water may soften the
skin resulting
in fine cuts/legions due to cement particles. Precaution should
be taken to avoiddust inhalation while handling the powder
putty.
Storage:
Store J.K. Wall Putty in a dry place and open the pack just
before use. Keep out
of reach of children.
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Theoretical frame work :-
Employee Engagement:-
For several years now, 'employee engagement' has been a hot
topic in corporate circles.
It's a buzz phrase that has captured the attention of workplace
observers and HR managers, as well as the executive suite. And it's
a topic that employers and employees
alike think they understand, yet can't articulate very easily.
employee engagement as "a
heightened emotional connection that an employee feels for his
or her organization, that
influences him or her to exert greater discretionary effort to
his or her work".
At least four of the studies agreed on these eight key
drivers.
1. Trust and integrity how well managers communicate and 'walk
the talk'.
2. Nature of the job Is it mentally stimulating day-to-day?
3. Line of sight between employee performance and company
performance
4. Does the employee understand how their work contributes to
the
company's performance?
5. Career Growth opportunities
6. Are there future opportunities for growth?
7. Pride about the company
8. How much self-esteem does the employee feel by being
associated with
their company?9. Coworkers/team members
10. significantly influence one's level of engagement
11. Employee development
12. Is the company making an effort to develop the employee's
skills?
13. Relationship with one's manager
14. Does the employee value his or her relationship with his or
her manager?
We define employee Engagement as a psychological state in which
in which employees
feel a vested interest in the company s success and are both
willing and motivated to
perform to levels that exceed the stated job requirements.
Its reflects how employees feel about the overall work
experience
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Employee Engagement foster & drives discretionery behaviour,
eliciting employees ,
highest productivity, their best ideas & their genuine
commitment to the success of the
organization.
Employee engagement , also called Work engagement , is a concept
that is generally
viewed as managing discretionary effort, that is, when employees
have choices, they will
act in a way that furthers their organization 's interests. An
engaged employee is a person
who is fully involved in, and enthusiastic about, his or her
work. Employee Engagement
is now measured by items which have been linked to key business
outcomes.
In a study of professional service firms, the Hay Group found
that offices with engaged
employees were up to 43% more productive
The most striking finding is the almost 52% gaps in operating
incomes between
companies with highly engaged employees and companies whose
employees have low-engagement scores. High-engagement companies
improved 19.2% while low-
engagement companies declined 32.7% in operating income during
the study period. For
example, New Century Financial Corporation , a U.S. specialty
mortgage banking
company, found that account executives in the wholesale division
who were actively
disengaged produced 28% less revenue than their colleagues who
were engaged.
Furthermore, those not engaged generated 23% less revenue than
their engaged
counterparts. Engaged employees also outperformed the not
engaged and actively
disengaged employees in other divisions. It comes as no
surprise, then, that engaged
employees have been statistically linked with innovation events
and better problem
solving.
Arnold is more likely to define engagement as a beneficial
two-way relationship where
employees and employers 'go the extra mile' for one another.
Companies that get it right
reap the rewards and so do their employees, he said.
The benefits of having happy staff are well-documented. But the
challenge for many
organisations is showing that engagement brings a tangible
return on investment - a
process many companies find elusive.
"Engagement means different things to different people," Arnold
said. "There was a risk
that it would become just another buzzword, so settling on a
definition gave us a lot of
debate."
http://en.wikipedia.org/wiki/Employeeshttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Wage_labourhttp://en.wikipedia.org/wiki/New_Century_Financial_Corporationhttp://en.wikipedia.org/wiki/Employeeshttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Wage_labourhttp://en.wikipedia.org/wiki/New_Century_Financial_Corporation
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UNDERSTANDING EMPLOYEE ENGAGEMENT IN THE PUBLIC SECTOR
Introduction
3.1 The objective of this review the extent to which employee
engagement varies between the public and private sectors. This was
examined on two levels:
Are there any fundamental differences in how employee engagement
operates between the public and private sectors that would impact
on interpretativemodels? In particular, do the drivers of employee
engagement vary between thetwo sectors? And
What evidence, if any, is there on the effectiveness of employee
engagement between the public and private sectors? Are there any
marked differences betweenthe sectors in terms of how engaged staff
are?
Variations in employee engagement process
3.2 From our analysis of the models presented the differences
between the public and private sectors have no impact whatsoever on
how employee engagement works. Thisreflects the fact that the
positive factors impacting on employee engagement apply withequal
weight to the public and private sectors. In particular this
includes:
The importance of providing high quality management, especially
at supervisoryand immediate line management level
The importance of having a strong organisational vision and
clarity in goals thatare clearly articulated and communicated to
staff at all levels
The importance of engaging in effective two-way communication
between theorganisation and its staff
3.3 No interpretative model of the employee engagement process
assessed as part of theliterature review has drawn any sectoral
distinction: they are generic across allorganisational types in the
public and private sectors. This is a key finding of theliterature
review.
3.4 However, the employee engagement outcomes do vary according
to a range of factors reflecting organisational and employee
characteristics. The aspiration to find a'one size fits all' model
does not apply, either to all individual employees or to
allorganisations. These variations are discussed below.
Variations in employee engagement outcomes
3.5 There is a surprisingly limited amount of research
commenting on variances inemployee engagement between the public
and private sectors. This may relate to the factthat there is more
in common between the sectors than there is variation and the
principles of engagement tend to be generic across both sectors.
The literature reviewedtends to highlight the relatively strong
performance of the public sector in terms of job
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specific parameters ( i.e. public sector workers are more likely
to receive compensationfor working extra hours, and find their work
more worthwhile and personallymeaningful) but its weaker
performance in the critical employee engagement drivers suchas
strategic vision and management. For example, CIPD (2006c) in a
national survey of 2,000 UK employees found the following:
Hours worked - there are no differences between the public and
private sectors interms of hours worked. However, public sector
workers are more likely to receivesome compensation for working
extra hours than those in the private sector;
Work-life balance - one would have expected that public sector
workers would be receiving more help from their employer to achieve
a good work-life balance, but actually there is no difference;
Employer negatives - public sector employees are more negative
about their employers than their private sector counterparts,
reporting that:
o They experience more bullying and harassment than those in the
privatesector
o They are less satisfied with the opportunities they have to
use their abilitieso They are more stressed and under more
pressureo They are more critical of their organisationo They are
less likely to feel their senior managers have a clear vision
for
the organisationo They have less trust and confidence in their
senior managers; ando They are also less likely to believe
organisational communication.
Job positives - however, the public sector ethos is reflected in
the fact that more public sector workers find their work worthwhile
and personally meaningful. Thisis an important finding, that Penna
(2007) presents a model whereby 'meaning at
work' is at the apex of the model, and one of the most important
factors in drivingengagement. Individual/employee performance
outcomes - public sector workers rate their
own performance lower than private sector employees and are more
likely to havetaken more sick leave in the last year.
3.6 Ipsos MORI (2006) has highlighted the need for public sector
organisations toimprove the way in which they manage change and
develop leadership capability. It isdiscussed later how engagement
can help organisations manage change (see theCambridgeshire County
Council case study which highlights how engagement was
brought in to assist a large and difficult change in the
Council). Drawing upon research
data from over 200 of the UK's leading organisations, an
analysis by sector shows that inmany areas there is typically
little difference in employee attitudes. However, in coreaspects of
working life (ref. 'job positives' above), public sector staff tend
to be happier with:
Job security Being paid fairly and their pay reflecting level of
performance Training and development opportunities
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The feedback they receive from line managers Working hours.
3.7 As a result of the research, Ipsos MORI (2006) conclude that
public sector employeesare more likely to feel that the work they
do is interesting and, in general, perceive a
greater feeling of morale where they work.
3.8 In contrast, the public sector usually trails the private
sector in two key areas: changemanagement and leadership capability
(this is despite the fact that public sector employees report a
greater level of contact with senior management). The Ipsos
MORI(2006) research found that whilst around three-quarters of
employees in both sectorsunderstand the need for change, there is a
large disparity in terms of those who support the need for change -
with 75 per cent of employees in the private sector supporting
theneed for change, compared to 65 per cent in the public sector.
Moreover, public sector employees are significantly more likely to
feel that some of the changes beingimplemented are unnecessary:
they believe that " there is too much change for change's
sake ". Thus it is imperative that managers fully engage staff
in understanding therationale for change, rather than just
communicating the change to them, and supportemployees through the
change process.
3.9 In terms of the more practical aspects of change management,
again public sector employees are more critical. A quarter of
private sector employees, compared to just 15
per cent of public sector employees, believe that change is well
managed in their organisation: see Figure 3.1.
Figure 3.1 Perceptions of Change Management by Sector
Source: Ipsos MORI (2006)
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3.10 The Ipsos MORI (2006) research highlights other areas in
which public sector staff are usually more critical than their
private sector counterparts:
Receiving recognition for good performance and providing
opportunities for employees to let the organisation know how they
feel about things that affect
them in their work Having adequate /sufficient facilities or
resources to do their work effectively The belief that their
organisation puts customers first Confidence that they are working
for a successful organisation.
3.11 As a consequence, the public sector tends to trail the
private sector in core areas thatcan lead to enhanced employee
engagement, such as clarity of direction, effectivecommunication
and management. The conclusion of this research is that the public
sector needs to concentrate more on how it manages change and
develops leadership capability,to contribute to delivering the
Public Sector Reform Agenda effectively.
3.12 These findings in the UK are supported by research in
Canada conducted by theAuditor General of British Columbia (Office
of the Auditor General of British Columbia,April 2002). The British
Columbia public service received an engagement rating of 59
per cent compared to 79 per cent for the top 50 companies to
work for in Canada (HewittAssociates: The 50 Best Companies to Work
for in Canada, as cited in Office of theAuditor General of British
Columbia 2002). In comparison to the leading private sector
companies, British Columbia's public service employees are
relatively happy with their work, are just as committed to staying
with their employer, but due to a climate of distrust, a lack of
confidence in their managers, and a feeling that the public hold
anegative view of them as workers, they are not as proud of where
they work. Only 43 per cent would highly recommend their department
to a friend seeking employment,
compared to 86 per cent in the comparison group. Again the
public sector comparesfavourably in job content, but is weak in
terms of organisational identity and advocacyamongst staff.
Summary and key findings
No interpretative model of the employee engagement process that
has beenreviewed has drawn any sectoral distinction: they are
generic across the publicand private sectors.
However, the employee engagement outcomes do vary according to a
range of factors reflecting organisational and employee
characteristics. The aspiration to
find a 'one size fits all' model does not apply. In general,
public sector employees are more satisfied with their
jobcharacteristics, but are significantly less satisfied with key
drivers of employeeengagement compared to the private sector.
These weaknesses include lack of orientation to organisational
objectives and lack of advocacy.
However, variations in employee engagement within sectors are
far moresignificant and important than any reported variations
between the public and
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private sectors. The challenge is for employers to understand
the importance of employee engagement within their own organisation
and to address it effectively.
INTERPRETATIVE MODELS OF EMPLOYEE ENGAGEMENT
Introduction
4.1 This chapter looks at the models of engagement as found
throughout the literature. Anemployer's point of view, engagement
is often about employees 'going the extra mile' or exerting
'discretionary effort'. It was also discussed that many of the
factors that driveengagement are under the control of the
organisation. However, employees will placedifferent emphasis on
the extent to which they value each of these factors in exchange
for their discretionary effort. This chapter therefore examines the
models of engagement inthe literature to determine what the key
drivers of engagement are, and the extent towhich employees value
these, and what employees find connects them to theorganisation,
motivates them to perform above and beyond expectations and
compels
them to actively promote the interests and objectives of the
organisation.
4.2 Although the organisation has primary responsibility for
leading engagement, thereare also secondary employee and job
specific factors which can affect levels of engagement. These are
also discussed in this chapter to provide a more comprehensive
picture of the factors that determine engagement. The findings
are presented under thefollowing headings:
Modelling Engagement - a series of the most relevant
interpretative engagementmodels are presented.
Role of Engagement in Organisational Outcomes - this section
illustrates the
mechanisms through which engagement can impact on organisational
outcomes. Organisational Variations - an analysis of the extent to
which engagement
varies between organisations. Employee Variations - an analysis
of the extent to which engagement varies
between employees.
Modelling engagement
4.3 As highlighted by CIPD (2007a) there is no definitive
all-purpose list of engagementdrivers. There are many individual
and organisational factors that determine whether employees become
engaged, and to what extent they become engaged. This
sectionhighlights the models that illustrate these factors and the
importance that employees placeon them in becoming engaged.
4.4 The approach to employee engagement, discussed by Robinson
et al (2004), stressesthe importance of 'feeling valued and
involved' as a key driver of engagement. Withinthis umbrella of
feeling valued and involved there are a number of elements that
have avarying influence on the extent to which the employee will
feel valued and involved andhence engaged. Figure 4.1, which is
based on a diagnostic model in Robinson et al
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(2004), illustrates the drivers of engagement suggested through
a survey of over 10,000 NHS employees. Robinson et al (2004) state
that this can be a useful pointer toorganisations towards those
aspects of working life that require serious attention if
engagement levels are to be maintained or improved.
Figure 4.1 Robinson et al (2004) model of the drivers of
employee engagement
Source: Robinson et al (2004)
4.5 Although tested within the NHS, the authors suggest that
many of the drivers of engagement will be common to all
organisations, regardless of sector. However as isdiscussed later
in this chapter, engagement levels can vary according to
demographic and
job related factors. What is noted from the model above is that
some of these factors arewhat would be fundamental or contractual
requirements for the organisation (the
'hygiene' factors), such as pay and benefits and health and
safety, whereas others are theareas where the organisation must 'go
the extra mile' to ensure effective communication,management and
cooperation.
4.6 Penna (2007) presents a hierarchical model of engagement
factors (see figure 4.2),which illustrates the impact each level
will have on the attraction, engagement andretention of talent.
They propose a model with "meaning at work" at the apex, which
theymaintain is borne out by the research carried out into meaning
at work. In this context,Penna (2007) defines meaning at work as
the situation where a job brings fulfilment for the employee,
through the employee being valued, appreciated, having a sense
of
belonging and congruence with the organisation and feel like
they are making a
contribution. In this model, as the hierarchy ascends and the
organisation successfullymeets each of these engagement factors,
the organisation becomes more attractive to new potential employees
and becomes more engaging to its existing staff.
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Figure 4.2 Penna (2007) model of hierarchy of engagement
Source: Penna (2007)
4.7 Interestingly in this model the 'hygiene' factors appear at
the foundation of the model,indicating the nature of these factors
as a necessary, but not sufficient, building block upon which the
organisation must further develop in order to engage staff.
4.8 Work by Schmidt (2004) (see figure 4.3) frames engagement
within the context of organisational health and Workplace
Well-Being 4 ( WWB). Engagement is defined bySchmidt (2004) as the
overarching label that brings employee satisfaction andcommitment
together. This model highlights the importance of commitment to the
job asdriven by job satisfaction, and also notes the importance of
the supportive organisation.By creating the right conditions to
generate high levels of employee engagement, theorganisation can
drive high performance - with high performance being defined as
theachievement of the overarching public sector goal of advancing
the public good. Themodel depicts the flow of organisational
dynamics that begins with recruitment andmoves through support for
work, to workplace well-being, to engagement and finally to
high levels of organisational performance.
http://cci.scot.nhs.uk/Publications/2007/05/09111348/12http://cci.scot.nhs.uk/Publications/2007/05/09111348/12
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Figure 4.3 Schmidt (2004) model of organisational dynamics in
the public sector
Source: Schmidt (2004)
4.9 This model implies that the foundations of engagement lie in
policies to recruit andretain the right workforce ( i.e. in terms
of employing specific competences, knowledgeand experiences
required for success as well as diversity) and to promote health,
safety,and well-being. Schmidt (2004) bases the model on a variety
of studies and writings,implicit in which is the notion that it is
WWB that drives engagement.
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