Grasim Industries Limited -- Project Work

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22/8/2014 GRASIM INDUSTRIES LIMITED -- PROJECT WORK

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EXECUTIVE SUMMARY

Cement is one of the important materials in house construction and costs 12

to15% of cost. Cement is used in more of less all the important like Roof slab,

beams, columns, lintels, brickwork and flooring. Cement imparts both strength and

makes the building component strong. It is important to remember this happens only

if it thoroughly mixed, laid, compacted and cured properly. Different companies

supply different types of cement which has got different quality, strength and setting

time.

India viewed the cement production in the early 20th century, with first

cement industry set up in 1904 by south Indian industries. The 2ndunit, which came

up from the house of Tatas at Porbandar in 1904, started its operation in 1915 with

a combined capacity of 75000 tonnes per annum.

India with the capacity of 113.5MT is 3rdlargest producer of cement. The

industry has a turn over of around Rs 19500 Crore and accounts for direct and

indirect employment of 106 million persons. Private sector contributes over 85% of

cement out put in the country.

Currently, India has 109 large cement plants and more than 200 mini plants,

which includes 30 plants having more than 1 million ton capacity.

The study is conducted at Grasim Industries Ltd, Aditya Birla, marketing

(Cement Division), Bangalore. The study consists of two sections. The first section

covers the working of organization, Industry profile, company profile, product

profile, study of different departments in Grasim Industries Ltd Bangalore. The

second section relating to the marketing problem Factors Responsible for Growth

of Blended Cement Sales in Territory 3 of Bangalore City

1. INDUSTRIAL PROFILE

HISTORY OF CEMENT:

Romans have used naturally occurring cement 300 BC in Roman baths,

roads and the stadium. In1796, Jamea Parker of England patented natural hydraulic

GRASIM INDUSTRIES LIMITED -- PROJECT

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cement by calcining nodules of impure limestone containing clay called Parkers

cement or Roman cement.

Joseph Aspdin of England invented cement in 1824. He named it Portland

cement, as it resembled natural stone obtained from Portland, England, since there

has been a constant improvement in manufacture and quality. Its use has become

universal replacing lime as binding material since 1920.

THE ROLE OF CEMENT

Cement is one of the important materials in house construction and costs 12

to 15% of cost. Cement is used in more of less all the important like Roof slab,

beams, columns, lintels, brickwork and flooring. Cement imparts both strength and

makes the building component strong. It is important to remember this happens only

if it thoroughly mixed, laid, compacted and cured properly

AN INDUSTRY OUTLOOK

Cement- A high volume low value product is one of the high capital as well

as high power intensive industries (40% capital+ 40% energy costs). Cement

constitutes an important segment of modern industrial economy of India as it sets up

a strong and healthy infrastructure. The infrastructure strength of nation can be

determined based on the cement consumption, with construction a pre-cursor to the

economic development.

India viewed the cement production in the early 20th century, with first

cement industry set up in 1904 by south Indian industries. The 2ndunit, which came

up from the house of Tatas at Porbandar in 1904, started its operation in 1915 with

a combined capacity of 75000 tonnes per annum.

The post independence era brought new impetus to the cement industry.

One of the most notable developments was the first Indian Standard Specifications

of Portland cement by Indian Standard Institutes (ISI). The most important feature

of Indian specification was that the permissible limit of magnesia content in cement

was raised from 4% to 5%.

However until the year 1982, Indian Cement Industry was completely

controlled by the govt., which regulated both distributions as well as price of the

cement. During this control regime, freight pooling system was in vogue, which


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resulted in slow and stunted growth, as well as led to shortages in domestic

production. Partial decontrol in the year 1982, followed by total de control in 1989,

gave a boost to cement industry.

PRESENT SCENARIO

India with the capacity of 113.5MT is 3rdlargest producer of cement. The

industry has a turn over of around Rs 19500 Crore and accounts for direct and

indirect employment of 106 million persons. Private sector contributes over 85% of

cement out put in the country.

Currently, India has 109 large cement plants and more than 200 mini plants,

which includes 30 plants having more than 1 million ton capacity.

Per capita consumption of cement in India is near 82 kgs against worlds

average of 250kgs. The cement business has registered an impressive growth of

24% in realizations vis--vis the comparable quarter of previous year. Production at

2.57 million metric tones and sales volume at 2.55 million metric tones have risen.

Realizations, stronger at Rs 2046 per MT, have been major contributing factor in the

enhanced operating margin of business.

To grow its cement business and to sustain its market share, Grasim has

planned a total capital expenditure of Rs.530 crore. This includes:

Setting up of 4 Ready Mix concrete plants of which 3 have been already

commissioned at Hydrabad, Chennai and Noida. The fourth RMC plant at

Bangalore is slated for completion the second quarter of FY2002.

Modernization processes and capacity expansion through bottle necking, which

is ongoing.

CHARECTERISTICS OF CEMENT INDUSTRY:

Cement market at present is a buyers market then sellers market.

Cement is a bulk commodity.

Cement market in India is divided regionally.

Transportation cost prohibits inter region transportation on a large scale.

Distribution is a critical factor in cement marketing.

Prices are very volatile in nature.

DEMAND AND SUPPLY:


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Demand for cement can be broadly divided in two broad categories.

Indent 360 housing, offices, and maintenance and rehabilitation activities.

Infrastructure projects such as irrigation canales, railways, roads and ports.

Demand under category 1 is generally recurring and replacement in nature.

In the category 2 demand demands are determined by the creation of infrastructure,

which is crucial for emerging economies.

According to industry sources cement demand is price inelastic that is

demand is independent of price level. But on the other side the management passeson the rising cost to the end customer. Thus the demand supply equation has to be

more or less in equilibrium. As cement in India has no identifiable substitute the

prices are mainly determined by.

The industry demand and supply scenario:

The nature of demand in India is in sharp contrast to that of the developing

countries where ready mix concrete is the largest sector and bulk distribution the

norm, In India, cement is largely sold in the bag form and branding is prerequisite for

the retail market. Private construction firms are the largest end users of cement and

accounts for 55% of total demand. Government share is less that 30%.

MANUFACTURE OF CEMENT:

The main raw material for cement manufacturing is calcium carbonate in

some form (lime stone, Marls, Chalk, sea sand, sea shell and coral reefs), gypsum,

which is used as a retarding agent. The purer the gypsum, the better is a retarder.

Cement industry used lime stone as a major raw material, but the deposit of

lime stone is not evenly dispersed all over the country. Due to this, cement plants are

also located in this region and production is concentrated in this region.

Types of Cement:

Type 1: Ordinary Portland Cement

Type 2: Moderate Heat of Hydration

Type 3: High Early Strength (Rapid Hardening)

Type 4: Low Heat of Hydration

Type 5: High soleplate Resistance

Ordinary Portland Cement (OPC) It contains gypsum, coal and limestone. Has

faster setting time and less strength. Ideal application is for light construction.

Portland Pozzolana Cement (PPC) contains blended Pozzolona material

(claimed clay and fly ash) along with gypsum in clinker. It is of high strength and used

in heavy construction.

Moderate Host Portland cement (MHPC) By changing chemical composition

of cement the heat of hydration can be lowered. The type of cement is used for

mass concrete work.

Rapid Hardening Cement (RHC) gives strength in 24 hours with same setting

time of OPC. Therefore it is also called as High Early Strength Cement.


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Sulphate Resistance Cement (SRC) used for concrete and construction, and

are in prolonged contact with soils and water rich sulphates.

White Cement if iron content of grey cement is lowered too less than 0.4% the

color of cement becomes white. The cost of white cement is high and used for

decorative work only.

Portland Blast Furnace Slag Cement (PBFSC) the blast furnace slag when

mixed with Portland cement clinker gives PBFSC. It is suitable for construction of

dams, bridges, etc.

Masonry cement sand or granulated slag is mixed with OPC clinker on

proportion on about 1:1, to get Masonry Cement. Used for laying and bounding

bricks and for plastering.

The physical characteristics by which the quality of the cement is assured are

Fineness (specific surface)

v Soundness (expansion of unaerated of cement by lachaeler mould auto clay)

v Setting time (initial set and final set)

v Compressive strength (3 days, 7 days, 21 days)

v Heat of Hydration

v Sulphate resistance

v Drying shrinkage


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2. COMPANY PROFILE

Grasim Industries an overview

Grasim was incorporated on 25 August 1947, exactly 10 days after India

achieved independence.

Originally a textile manufacturer, Grasim has successfully diversified into

VSF, cement, sponge iron and chemicals.

I firmly believe that our people provide us with the cutting edge. For

sustainable success, their performance orientation and customer focus is

imperative. In my view, only where people grow, the organization grows."

- Mr. Kumar Mangalam Birla, Chairman, The Aditya Birla Group

2.1 BACKGROUND AND INCEPTION OF THE

COMPANY:

The Aditya Birla Group is India's first truly multinational corporation

operating in the country for over 5 decades and globally for nearly 30 years. A US$

7.59 billion conglomerate, with a market capitalization of US$ 7 billion, it is

anchored by an extraordinary force of 72,000 employees belonging to over 20

different nationalities. Over 30 per cent of its revenues flow from its operations

across the world. The Group's products and services offer distinctive customer

solutions. Its 66 state-of-the-art manufacturing units and sectoral services span India,

Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada, Australia and China.

The Aditya Birla Group is a dominant player in all of the sectors in which it

operates Such as viscose staple fibre, non-ferrous metals, cement, viscose filament

yarn, branded apparel, carbon black, chemicals, fertilizers, sponge iron, insulators

and financial services.The company is also a leading player in following:

The World no.1 in Viscose Staple Fiber.

The World's Largest Single Location Palm Oil Producer.

Asia's Largest Integrated Aluminum Producer.

A Globally Competitive, Fast-Growing Copper Producer.

The World's Third Largest Producer of Insulators.

Globally, the Fourth Largest Producer of Carbon Black.

The World's Eighth Largestproducer of Cement, and the Largest in

a Single Geography.

India's Premier Branded Garments Player.

Among India's Most Energy Efficient Private Sector Fertilizer Plants.

India's Second Largest Producer of Viscose Filament Yarn.

The no. 2 Private Sector Insurance Company, and the Fourth Largest

Asset Management Company in India.

Beyond Business:

A value-based, caring corporate citizen, the Aditya Birla Group inherently

believes in the trusteeship concept of management. Parts of the Groups profits are

ploughed back into meaningful welfare-driven initiatives that make a qualitative

difference to the lives of the people. These activities are carried out under the aegis

of the Aditya Birla Center for Community Initiatives and Rural Development, which

are spearheaded by Mrs. Rajashree Birla.


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2.2 NATURE OF THE BUSINESS

The roots of the Aditya Birla Group date back to the 19th century in the

picturesque town of Pilani set amidst the Rajasthan desert. It was here that Seth Shiv

Narayan Birla started trading in cotton, laying the foundation for the House of Birlas.

Through India's arduous times of the 1850s, the Birla business expanded

rapidly. In the early part of the 20th century, the Group's founding father,

Ghanshyamdas Birla, set up industries in critical sectors such as textiles and fibre,

aluminium, cement and chemicals. As a close confidante of Mahatma Gandhi, he

played an active role in the Indian freedom struggle. He represented India at the first

and second round-table conference in London, along with Gandhiji. It was at "Birla

House"in Delhi that the luminaries of the Indian freedom struggle often met to plot

the downfall of the British Raj.

2.3 VISION, MISSION AND VALUES OF GRASIM

INDUSTRIES

To be a premium global conglomerate with a clear focus

on each business.

MISSION:

To deliver superior value to our customers, Shareholders,

employees and Society at large.

VALUES:

Integrity

Commitment

Passion

Seamless nes

VISION:


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Speed

2.4 PRODUCT PROFILE:

Product mix 2005- 06 (by revenue):

Revenue (per cent)

1 Cement 46%

2 VSF 35%

3 Sponge iron 9%

4 Textiles 5%

5 Chemicals 5%

CEMENT:

Grasim is among the largest producers of grey cement in India with a total

grey cement capacity of 13.12 million tonnes per annum (tpa). All its plants are

located close to sizeable limestone mines and are fully automated to ensure

consistent quality. All the companys cement units are certified with ISO 9001 for

quality systems, and ISO 14001 for environment management systems. Its nationalbrands are Birla Plus, Birla Super and Birla Ready Mix concrete.

Cement VarietiesCatering to Different Segments:

Rajashree Cementfor residential and commercial construction

Birla Super Cementfor multi-storied buildings, dams and bridges

Birla Plusfor mass concrete laying and non-structural applications

Birla Coastalfor foundation work and for use in coastal areas as well as

sugar and fertilizer plants

Kamal Cement:

Acquired by Grasim in 1998, Shree Digvijay Cement Company Ltd

(SDCC) is situated at Sikka (Gujarat). It has an annual capacity of about 1.08million TPA. All of SDCCs products are marketed under the brand name 'Kamal'.

The company has ISO 9002 certifications for its clinker and cement

production and its oil well cement has been authorized for the use of the monogram

of the American Petroleum Institute.

Birla White Cement:

Architectural monuments have always played a significant role in marking the

progress of history. Take the examples of the Coliseum of Rome, the Leaning Tower

of Pisa and our very own Taj Mahal.

Grasim Products:

Sl.No Product


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In an endeavour to encourage young architects to push the boundaries of

design and creativity, Birla White a leader in the white cement industry has

been presenting a platform for the creative genius. Aimed at architectural colleges

across the country, Birla White has pioneered a design contest in search for talent in

design excellence. This year's Birla White Yuva Ratna Awards called for design

entries in two categories Designer Flooring and GRC (Glass Fibre Reinforced

Concrete).

Instituted in 2004, Birla White Yuva Ratna Awards is catalytic in providingan opportunity to aspiring and talented architects and designers to unleash their

potential by designing outstanding designer floor designs and GRC patterns. The

awards are the conduit for creating new trends and ushering in a new age with

limitless options. Birla White received an overwhelming response this year. In all,

there were 1054 entries from 34 colleges spread across nine states. Among the

various path-breaking entries presented, an artist has worked out an entire concept

for facilitating the movements of the visually impaired.

At the recently held Birla White Yuva Ratna Awards function, Birla White

felicitated 21 aspiring students from different states. The Chief Guest was Mrs.

Rajashree Birla, Chairperson of the Aditya Birla Centre for Community Initiativesand Rural Development. Says Mrs. Birla, "The range of eclectic designs have been

most impressive. It is a tribute to the innovative and creative spirit of the youngsters."

Viscose Staple Fibre :

Grasim is India's pioneer in Viscose Staple Fibre (VSF), a man-made,

biodegradable fibre with characteristics akin to cotton. Extremely versatile and

easily blended with other fibres, VSF is widely used to manufacture fabrics for

both woven and knitted garments. The range of applications extends from

apparel both top wear and bottom wear to home textiles, dress material,

knitted inner wear and outer wear, and non-woven fabrics.

Aditya Birla Group is today the world's largest producer of VSF,

commanding a 24 per cent global market share and meeting over 98 per cent of

India's VSF requirements.Grasim's VSF plants are located at Nagda in Madhya Pradesh, Kharach in

Gujarat and Harihar in Karnataka, with a combined installed capacity of 2,51,850

tonnes per annum. Nagda is its largest unit producing a wide range of VSF to suit

customer requirements in terms of length, denier and colour. Nagda is also the

largest producer of spun-dyed specialty fibre in the world.

The Harihar unit produces rayon grade pulp, the basic raw material for VSF

production and raw white VSF. The Company's rayon grade plant was the first in

India to use totally indigenous resources like eucalyptus. It uses an in-house

technology for producing rayon pulp with an innovative oxygen bleaching process to

reduce the use of chlorine.

The VSF plant at Kharach, set up in 1997, employs the most contemporarytechnology, and today overseas customers demand "fibre from Kharach". The AV

cell unit in Canada, an overseas joint venture, also supplies dissolving grade chemical

pulp to the Group's VSF units in India, Thailand and Indonesia.

This spread and scale of operations makes the Group's VSF operations

extremely cost competitive. In addition, vertical integration into production of various

principal raw materials required for VSF production caustic soda, CS2 and

rayon grade pulp heightens its competitive edge.

Grasim has earned prestigious awards for its technology and its innovative

range of fibres. Made from wood pulp through an eco-friendly, non-polluting

process developed and patented by the Aditya Birla Group, it is the world's only


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heavy-metal-free viscose fibre.

The Birla Research Institute for applied sciences at Nagda along with the

Company's R&D teams, endeavours to make technology work for improving

quality, lowering costs and optimising resources, the Company's Textile Research

Application Development Centre (TRADC), coming up at Kharach, will continually

develop new applications and products. It will also explore possibilities of strategic

alliances with downstream textile product manufacturers to commercialise the

applications, leveraging superior quality of VSF in terms of feel, comfort, hygiene

and aesthetics.All of the VSF business offerings have been branded under the 'Birla

Cellulose' umbrella. To penetrate into niche market segments, and to grow further,

the division has ventured into the production of high performance viscose fibres aptly

named Viscose Plus, High Wet Modulus Fibres (Modal) and Birla Excel, the new

generation solvent spun fibres.

Grasim is also the largest producer of sodium sulphate, a by-product of VSF

manufacture.

Sponge iron:

In 1993, Grasim ventured into sponge iron with the commissioning of

Vikram Ispat's gas-based sponge iron plant at Salav in Alibag, Maharashtra. Theplant has a current capacity of 900,000 tons per annum, and is the largest merchant

producer of sponge iron in India.

Textiles:

Grasim has a strong presence in fabrics, synthetic yarns, worsted yarn and is

well known for its branded suiting Grasim and Graviera, made from different blends

of polyester and viscose. Its textile plants are located at Bhiwani in Haryana and

Malanpur in Madhya Pradesh. Fabric operations are centralised at Bhiwani with a

processing capacity of 17 million meters a year, while the Malanpur unit

manufactures worsted dyed yarn spun from 100 per cent merino wool along with

polyester and other blends.

2.5 AREA OF OPERATION

A formidable force in Indian industry, Mr. Aditya Birla dared to dream of

setting up a global business empire at the age of 24. He was the first to put Indian

business on the world map, as far back as 1969, long before globalization became a

buzzword in India.

He had foreseen the winds of change and staked the future of his businesson a competitive, free market driven economy order. He put Indian business on the

globe, 22 years before the economic liberalization was formally introduced in India.

He set up 19 companies outside India, in Thailand, Malaysia, Indonesia, the

Philippines and Egypt.

Under his stewardship, his companies rose to be the world's largest

producer of viscose staple fibre, the largest refiner of palm oil, the third largest

producer of insulators and the sixth largest producer of carbon black. In India, they

attained the status of the largest single producer of viscose filament yarn, apart from

being a producer of cement, grey cement and rayon grade pulp. The Group is also


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the largest producer of aluminium in the private sector, the lowest first cost

producers in the world and the only producer of linen in the textile industry in India.

At the time of his untimely demise, the Group's revenues crossed Rs.15, 000

crore globally, with assets of over Rs.16, 000 crore, comprising of 55 benchmark

quality plants, an employee strength of 75,000 and a shareholder community of

600,000.

Under the leadership of the present Chairman, Mr. Kumar Mangalam

Birla, the Group has sustained and established a leadership position in its key

businesses through continuous value-creation. Spearheaded by Grasim, Hindalco,

Indian Rayon, Indo Gulf Fertilizers and companies in Thailand, Malaysia, Indonesia,

the Philippines and Egypt, the Aditya Birla Group is a leader in a swathe of products

viscose staple fibre, aluminium, cement, copper, carbon black, palm oil,

insulators, and garments. And with successful forays into financial services, telecom,

software and BPO, the Group is today one of Asia's most diversified business

groups.

The Brand "Aditya Birla":

The Name "Aditya Birla" evokes all that is positive in business and in life. It

Typifies Integrity, Quality, Performance, Perfection, and Above All character. Our

Corporate Logo, 'The Rising Sun', symbolizes these traits. ('Aditya' is the Sanskrit

Word for Sun).

The logo consists of an inner circle, symbolizing the internal universe of the

Aditya Birla Group, an outer circle, symbolizing the external universe, and a dynamicmeeting of rays converging and diverging between the two

'Aditya' is the Sanskrit Word for Sun

Social Activities: All efforts start from the earth. Only some reach the skies to light up and

dazzle. Gyanodaya, our Institute of Management Learning in Navi Mumbai, is

one such effort in spreading the light of knowledge.

As a conglomerate with a diverse business portfolio, no single set of

competencies will do each business requires a unique skill set. The challenge is to

identify these skills. Also, with speed being of essence, organisations and employees

need to continuously learn and perform soaking in new modules of success,

adapting them to our advantage, keeping a step ahead of the competition.

Gyanodaya has been envisioned as a hub, the backbone of a process that

sharpens our Group's competitive edge. Closely linked to the vision of the Group is

the Gyanodaya vision: 'To be at the core of an effective learning network that, as a

strategic business partner, harnesses knowledge and intellectual capital, to contribute

to Aditya Birla Group's vision of being a premium conglomerate.'

At Gyanodaya, learning happens in two ways:


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1. G-Learning which takes place at Gyanodaya. The training calendar is accessible

to employees via Aditya Disha, the group-wide intranet. The participant can choose

the programme that s/he would like to participate in. Some programmes are by

invitation only.

2. E-Learning where learning is just a click away.

Gyanodaya has created an environment for delivering high quality learning,

with the help of a highly-qualified and experienced external faculty. This imparts a

larger perspective to the programmes, which consist of a mix of classroom,outreach, and e-learning initiatives.

Grasim, Nagda has been involved in various meaningful, welfare-driven

initiatives that distinctly impact the quality of the weaker sections of society in the

Ujjain district of Madhya Pradesh. In working with the communities, the company

gauged their real needs and identified these as access to potable water, sustainable

livelihood, healthcare, education and infrastructure.

Grasim's community development programme encompasses 55 villages and

some adjoining urban localities. It has helped more than 1.4 lakh people in this area

and is implemented under the aegis of the Aditya Birla Centre of CommunityInitiatives and Rural Development. The major programmes include watershed

management including drinking water provision in 20 villages and two townships, and

running three schools for ensuring quality education to over 5,000 children.

The Rural Development section is well equipped with vehicles, ambulances,

tractors, training centres and other necessary infrastructure with doctors,

paramedical staff and workers. Under the sustainable livelihood schemes, more than

600 families are covered through self-help groups and income generation activities;

over 1,600 persons are trained in 30 different trades each year; and increased crop

productivity in 1,750 hectares has enhanced the livelihood options for 3,500

households.

Several other accolades have been conferred on Grasim in recognition of itscontribution to rural development.

2.6 OWNERSHIP PATTERN:

Grasim is family owned business unit. MD is Kumar Mangakam Birla. It has

52% of share holders. They have a good profit and the payment is made to every

share holder each year without fail.

They have issued no debentures for raising capital. The companys quality

share are listed on the following stock exchanges.

Name of Stock Exchange Stock Code

Madras Stock Exchange Limited 00513

The Stock Exchange, Mumbai 43214

Bangalore Stock Exchange Limited 67148

The Stock Exchange, Ahmedabad 4871

The Culcutta Stock Exchange Association 8777

The Delhi Stock Exchange Association Limited -- -- -

Cochin Stock Exchange Limited -- -- -

National Stock Exchange of India GIL

2.7 COMPETITORS INFORMATION:


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Plant Location Capacity

(In million tones)Rajashree Cement Malkhed and Hotgi 4.20

Vikram Cement Jawad and Bhatinda 4.20

Grasim Cement Raipur 2.06

Aditya Cement Shambhupura 1.50

Cement Division South Reddipalayam 1.16

Shree Digvijay CementGujarat

1.08

Total :14.00

Historically, the Indian cement sector has been highly fragmented comprising

54 players that operate 124 plants. The majority of plants are small sized and well

spread through out the country. The cement industry is cyclical and capital intensive.

A new plant typically has a gestation period of 3-4 years.

The industry is rapidly consolidating with Mergers & Acquisitions activity. In

the recent past, Gujarat Ambuja acquired control of ACC and Grasim has acquired

control of L & T. These 2 players are dominant in the industry.

Amongst the MNC players, Lafarge has acquired a capacity of 4.5 MTpa

and Itali Cement has a capacity of 2.7 MTpa.

ASSOCIATED CEMENT COMPANIES (ACC):

ACC is one of the leading cement producer in India came in to existence

consequent to the amalgamation of ten cement companies in 1936. Manufacturing

and marketing of cement, ready mix concrete refractory products are main business

of ACC. Further the company is in to consultancy and engineering services.

ACCs manufacturing base consists of 14 cement plants spread well all over

India. It has 2 refractory plants, one each at Maharashtra and MP and 6 RMC

plants near to four metros of India.

GUJARAT AMBUJA CEMENT:

Gujarat Ambuja Cement was set up in 1986.in the last decade the company

has grown tenfold. With the commencement of commercial production at its 2Mn

tonnes plant in Chandrapur, Maharashtra Ambuja will become Indias 3rd largest

cement company, with the capacity of 12.5Mn tonnes and revenue in excess of

2,500 crore.

The companys most distinctive attribute however is its approach to the

business. Ambuja follows a unique homegrown philosophy of giving people the

authority to set their own targets, and freedom to achieve their goals and has proved

to be the powerful engine of growth for company.

THE INDIA CEMENTS LTD:

The India Cements Ltd. was established in 1946 and the first plant was

setup at Sankarnagar in Tamilnadu in 1949. Since then it has grown in stature to 7

plants spread over Tamilnadu and Andhra Pradesh. The company is largest

producer of cement in South India.

2.8 INFRASTRUCTURE FACILITIES


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RajaShree and Birla Super cement:

Commissioned in 1984, Rajashree Cement has a capacity of 4.20 million

TPA.

The salient facts about Rajashree Cement are:

Coal-based thermal power plant with a 38.5 MW capacity

Modern dry process technology from KhD, Germany, with a state-of-the-artprocess control system

First in India to achieve Certification ISO 9001:2000 by DNV, Netherlands, 2001

Vikram Cement:

The first production line of this unit at Jawad (Madhya Pradesh) went on

stream in 1985, with a capacity of 0.5 million tpa. Today, with a capacity of a 4.20

million tpa, Vikram Cement has emerged as a premium regional brand, well-reputed

for its strength and consistently superior performance. The Vikram Cement unit is

one of the few plants to have its own Central Research and Development Centre.

The first ISO 9001 cement plant in the country, Vikram Cement has also taken thelead in innovative raw mix designs and process conditions.

Vikram Cement has won several accolades at the national and international

level for its quality, efficiency and environmental initiatives. These include

Grasim Cement:

Grasim Cement was set up as a Greenfield cement plant at Raipur,

Chhatisgarh, in 1995. Based on the most advanced technologies, this plant has an

annual installed capacity of 2.06 million TPA.

The Grasim industry plants unique features include:

Asias first gamma ray belt analyser from Gamma Matrix (USA) ensuring the

highest standards in online quality control.

Indias first polycom (blast furnace slag grinder) with a dynamic air separator

from Krupp Polysius Germany, which helps to generate the desired

homogeneous particle size distribution.

One of the few single kiln cement plants producing more than eight varieties of

cement.

Emerging as the largest producer in India and 7th largest in the World.

Aditya Cement:

Commissioned in a record time of 22 months as a Greenfield 1.0 MTPA

plant in 1995 in Shambhupura, Rajasthan, and its current capacity is about

1.50 million TPA.

Grasim acquired Dharani Cements (since merged with the company) in April

1998. The company has a cement plant at Ariyalur, Tamil Nadu. In April 2000,

Grasim South:


15/33



among the most modern in Asia, was commissioned at Reddipalayam, Tamil Nadu.

This unit now has a capacity of 1.16 million TPA.

This is the only plant to be equipped with an auto/ robot lab system for

consistent quality and optimizing cost.

2.9 AWARDS

National Award for Quality Excellence in the Indian Cement Industry by theNational Council for Cement and Building Materials, for the year 2000-01

IMC Ramakrishna Bajaj National Quality Award (certificate of merit) in

1999

Jamnalal Bajaj Uchit Vyavahar Puraskar for Fair Business Practices in 1995

Rajiv Gandhi National Quality Award in 1993

Birla Super Cement received the Environment Excellence Award under the

silver category by GreenTech Foundation

Birla Super Cement certified with the OHSAS 18001:1999 for their

occupational health and safety management system by Det Norske Veritas.

The first Indian unit to win the coveted TPM award from the Japan Institute

of Plant Maintenance, Tokyo, in 1995 The first cement unit in the world to receive IQRS level 5 rating from Det

Norske Veritas, The Netherlands.

The first cement unit in India to be certified ISO 14001 (1997) and OHSA

18001 (certifications from DNV, Rotterdam, The Netherlands, in 2001)

FICCI Annual Corporate Social Responsibility Award 2004, the 2004

Stockholm Industry Water Award and the Asian CSR Award 2005.

WORK FLOW MODEL

BIRLA SUPER BULK TERMINAL:

The plant is the unit of Grasim Industries Ltd. BSBT started its operation

from May 1999 onwards. It is situated 40 Km away from Bangalore city. AtDoddaballapur which is also called the SILK CITY. The plant is located in the

Veerapura, Doddaballapur tq, and Bangalore dist.

The plant was constructed with an investment of 12 cr. It is also the

packaging and distribution plant. This plant caters the requirement of cement all over

Karnataka. The market share of this cement is suitably increasing annually because

of the product quality, timely supply, customer satisfaction and after sales service.

BSBT is the only unit located in Karnataka, which supplies cement

requirement of the southern districts. To this unit, cement comes from its parent unit


16/33



Rajashree cement, Malkhed, situated in Gulbarga. The cement is brought in specified

railway wagons. The company has its own locomotive engine and a separate railway

sliding which is deviating from Doddaballapur railway station. There are totally 3

rakes shuttling between the production plant in Gulbarga and BSBT.

The plant constructed on an area of 40 acres of land, which includes,

Main package plant

Railway sliding

Truck yard

Office, canteen etc

Green belt

3. THE MCKENSEYS 7S MODEL

McKinseys 7S model provides a useful framework for analyzing the

strategic attributes of an organization. The McKinseys 7S model developed by two

persons Tom Peters and Robert Waterman. They were working as consultants at

McKinsey and Co. at that time. The McKinsey Consulting Firm identified strategy

as only one of seven elements exhibited by the best-managed companies.

Strategy, structure and systems can be considered as the hardware of

Success while style, staff, skills and shared valued can be seen as the software.

Companies, in which these soft elements are present, are usually more successful at

the implementation of strategy.

The hard elements of Mckenseys 7S model are feasible and easy to

THE MCKENSEYS 7S MODEL IS AS FOLLOWS


17/33



identify. They can be found in strategy statements, corporate plans, organizational

charts and other documentations.

The four soft Ss however, are hardly feasible. They are difficult to describe

since capabilities, values and elements of corporate culture are continuously

developing and changing. They are highly determined by the people at work in the

organization. Therefore it is much more difficult to plan or to influence the

characteristics of the soft elements. Although the soft factors are below the surface,

they can have a great impact of the hard structures, strategies and systems of

organization.

The 7Ss are:

Structure

Skills

Style

Strategy

Systems

Staff

Shared Values

The organization (e.g. hierarchical or flat ) as well as the group and

ownership structure is included here. Also note Porters categorization of group

structure: Efficient Allocation of Capital, Allocation of Resources, etc.

Mr. Kumar Mangalam Birla is the Chairman of the Company, the company

board also includes Executive Directors, Directors, Advisor and Company

Secretary in the board.

MANAGEMENT:

The Aditya Birla Management Corporation Limited is the Group's apex

decision-making body and provides strategic direction to Group companies.

Board of Directors:

Mr. S. Aga

Mr. D. Bhattacharya

STRUCTURE:

Dr. Kumar Mangalam Birla, Chairman


18/33



Mr. S. K. Jain

Dr. S. Misra

Mr. S. Misra

Mr. S. K Mitra

Dr. B. K Singh

Mr. Deepak Mittal

Mr. K. K. Maheshwari

[file:///F:/SACHIN%20ADITYA/k_k_maheshwari.htm]

Mr. Vikram Rao

Business Heads:

Mr. Shailendra K. Jain, VSF

Mr. Saurabh Misra, Cement

Mr. Ravi Kastia, Sponge iron

Mr. S. K. Saboo, Textiles, Spinning

Mr. Vikram Rao, Textiles, Fabrics

Mr. K. K. Maheshwari, Chemicals

Whole-time Director and Chief Financial Officer:

Mr. D. D. Rathi

Company Secretary

Mr. Ashok Malu

OBJECTIVES:

To define the rules and responsibilities of an employee in the organization.

To ensure a flat organizational setup.

To analyze the manpower requirement.

To define the hierarchy, level of authority, vertical and horizontal relationship.

Skills refer to the fact that employees have the skills needed to carry out the

companys strategy. Training and Development- ensuring people know how to do

their jobs and stay up to date with the latest techniques.

The company requires technical skills for production and manufacturing

divisions. Also it requires strong management skills in marketing and H.R. divisions.

The marketing executives must have good communication skills and better

knowledge of the company and its product. Many marketing executives have the

engineering background with MBA degree.

ORGANIZATION STRUCTURE AND CHART

SKILLS:
http://f/SACHIN%20ADITYA/k_k_maheshwari.htm


19/33



Marketing executives are also required to have very strong verbal and

written communication skills, especially presentation skills as most of the time they

have to do the presentation for their clients and for the higher authorities.

Senior level executives must be good analyzing individual strength and

weakness, so that they can allocate work to individuals effectively. They also must

have strong skills of analyzing the market situation and changes.

STYLE:

Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behavior and thought:

Leadership Style

Organizational Culture

The company culture is very informal, youthful and dynamic. It encourages

free and participative thinking. The Grasim Industry has the participative type of

leadership style in practice. The top and middle executives of the management tend

to be totally accessible and encourage the participation in decision-making, by

conducting the debate and discussion.

This type of leadership style attracts talented people to enter the company

and make them to feel company as their family. Also this style motivates the

employee to stay in the company.

STRATEGY:

The integrated vision and direction of the company, as well as the manner in

which it derives, articulates, communicates and implements that vision and direction.

The Grasim Industry is a worldwide leader in viscose staple fiber (VSF),

and it is a largest producer of white cement in India. The Birla White Cement

division changed its slogan from Whitest White Cement to My Kind of Design.

The company is having many products, which are produced by using the white

cement, differentiates company products from competitors product.

The company is having strategy of going for more tonnage; better quality and

customer service rather than more margin.

The focus is on the all-round development of the communities around the

plants located mostly in distant rural areas and tribal belts. All the group companies-

Grasim, Hindalco, Indian Rayon, Indo Gulf & Indal have Rural Development Cells,

which are the implementation bodies.

Projects are planned after a participatory assessment of the communities

around the plants. Each project has a one-year and a three-year rolling plan, with

milestones and measurable targets. The objective is to face out the companies

presence over a period of time and handover the reins of further development to the

people.


20/33



MARKETING STRATGY:

Grasim Industries have always endeavored to stay ahead in the competition

by adopting innovative ways of marketing and at the same time maintaining premier

pricing policies of brands.

The cement industry in India has come along way since the deregulation and

subsequent liberalization. The Indian consumers have been hit by tidal waves of

cement brands. This phenomenon of industry consolidation is increasing competition

at the top end. These developments spell increased choice and better quality to

customer.

To serve consumer the best, they started providing knowledge on good

quality concrete and mortar making practices. This led to the launch of

TECHNICAL ASSISTANCE AND SEVICE TO CUSTOMER (TASC) CELL.

Large-scale training programs are organized for masons, site supervisors, and

builders. The cell advises the customers about the availability of different types of

cement, their advantages, and method of proper application.

Cement belongs to the product category where distribution plays a crucial

role in marketing, and then says FMCGS where advertisement plays an equally

important role. So the importance of distribution channel for Grasim Industries

Limited has been rendered in following 3 ways.

Direct marketing where the product is dispatched from factory or the goods

shed to direct customers, this channel is followed only when large quantity is

required for customers.

Indirect marketing Either through trade or non-trade Birla super retail shops

with suitable technical devices.

Usual distribution channel i.e. wholesaler retailer customer network.

SYSTEMS:

The decision-making system within the organization can range from

management intuition, to structured computer systems to complex expert systems

and artificial intelligence. It includes

Computer systems

Operational Systems

Marketing Systems HR Systems etc.

Grasim industry is having its branch office at many places in India so as to

ensure that the required information has been gathered at the right time and at the

right place.

In Grasim Industry the rules governing the employees are explained to each

employee on joining the company. They will be provided with the handbook, which

will be having all the information regarding the company. There are detailed

procedures laid out by the corporate office on procurement of items and supplies,

making travel arrangement, allowances, reimbursements, leave and other

arrangements. In general HR department and the unit heads are responsible for


21/33



ensuring that the staff follows all procedures.

With regard to office systems, all the offices are computerized for the

purpose to enable greater speed and timeliness of the completion of the projects. All

the entries regarding marketing are done online with the help of Internet. So that

there will not be any delay in communication and flow of information.

With regards to performance appraisal system, the company has been

providing many good opportunities to employees for their carrier development. The

company does the performance appraisal by conducting Induction training program

for employees who joins thecompany. Also company conducts training program for

the executives of all the levels one or two times a year. This is conducted in well

known H.R. and Training institute of the company.

QUALITY SYSTEMS

Birla White is the first cement plant to get ISO 9002 QMSCertification

from RWTUV, Germany. It is also IQRS Level-5, Certified from DNV,

NetherlandsQuality is the key-stone for the companys business excellence and

our ultimate goal of total customer ( Internal / External/hidden) satisfaction.

STAFF:

Staff means that the company has hired able people, trained them well and

assigned them to the right jobs. Selection, training, reward and recognition, retention,

motivation and assignment to appropriate work are all key issues.

Grasim Industry entry-level staff are recruited from premier Management

and Engineering institutes through campus recruitment. Each regional unit head visitsthe management and an engineering institute located in their area and does the

recruitment for the company. In entry-level fresher and people with one year or less

than that also considered. Each unit specifies the number and type of people

required

and the recruitment is done as per that specification. The candidates are placed

usually according to their location preference to particular unit or location. The entry-

level recruitment process involves short listing and selecting the candidates based on

resumes group discussion and personal interview.

Middle level staff is recruited from the competing companies in the industry

and also from company within itself. This involves personal interview and usuallygroup discussion.

Senior level recruitment takes place by taking help from marketing

companies or advertising companies or market research companies in the country.

SHARED VALUES:

Shared values means that the employees share the same guiding values.


22/33



Values are things that you would strive for even if they were demonstrably not

profitable. Values act as an organizations conscience, providing guidance in times of

crisis. Identifying corporate values is also the first essential step in defining the

organizations role in the larger community in which it functions.

Shared Values are what engender trust. Values are the identity by which a

company is known throughout its business areas. These values must be explicitly

stated as both corporate objectives and individual values.

The Aditya Birla Group is India's first truly multinational corporation. Global

in vision, rooted in Indian values, the Group is driven by a performance ethic peggedon value creation for its multiple stakeholders. A US$ 8.3 billion conglomerate, with

a market capitalization of US$ 12 billion, it is anchored by an extraordinary force of

82,000 employees belonging to over 20 different nationalities. Over 23 per cent of

its revenues flow from its operations across the world. The Group's products and

services offer distinctive customer solutions. Its 74 state-of-the-art manufacturing

units and sectoral services span India, Thailand, Laos, Indonesia, Malaysia,

Philippines, Egypt, Canada, Australia and China.

A premium conglomerate, the Aditya Birla Group is a dominant player in all

of the sectors in which it operates. Among these are viscose staple fibre, non-ferrous

metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals,fertilizers, sponge iron, insulators, financial services, telecom, BPO and IT services.

S W

O T

STRENGTH:

Emerging as the largest producer in India and 7th largest in the World.

Growing to 31 Mn. TPA with CemCo acquisition.

11 composite plants, 7 grinding units, 4 bulk terminals, 6 RMC plants

Captive power plant at all locations.

Strong national brands. Birla Plus, Birla Super, Birla Ready Mix and Birla

White Leading player in key consuming states of Maharashtra, Karnataka,

Rajasthan, Punjab, Western U.P., Tamilnadu and Western M.P.

Market leader in viscose staple fiber

The fourth largest producer of insulators

The fourth largest producer of carbon black

The eleventh largest cement producer


23/33



Among the most cost-efficient aluminum and copper producers. The fourth

largest aluminum producer in Asia and the largest single location custom

copper smelter

Among the best energy-efficient fertilizer plants

Excellent market position

Domestic market share exceeds 10%

North (12.7%), East(9.2%),West(9.2%) and South(9.6%)

Largest producer of White Cement in India with capacity of 400,000 TPA

(57% market share), 6th largest in the World Asias first gamma ray belt analyzer from Gamma Matrix (USA) ensuring the

highest standards in online quality control.

Indias first polycom (blast furnace slag grinder) with a dynamic air separator

from Krupp Polysius Germany, which helps to generate the desired

homogeneous particle size distribution.

One of the few single kiln cement plants producing more than eight varieties of

cement.

Group With Diversified portfolio certification by quality check leaders like

ISO and TQM

In India, the Group holds a frontrunner position as: A premier branded garments player

The second largest player in viscose filament yarn

A leading player in life insurance and asset management

Among the top three BPO companies

Among the first five mobile telephony players

WEAKNESS:

Supply is not adequate to meet the increasing demand

Stringent Credit Policy

No participation of lower workers in process of strategic planning fixing of

goals and objectives.

No uniform distribution channel for rural areas

Communication between company and local people is not satidfactory

OPPORTUNITIES:

Increase the Manufacturing plants

Increase the Distribution Network

Untapped Rural and Urban Market

Competing with global SMT ( Surface mount technology, Manufacturers)

Entering into inventors and rectifies business.

Opportunity to tap the untapped domestic market and local market (The local

procedures constitute about 30-40% of domestic market)

THREATS:


24/33



Sever competition in Local as well as Global market

Wastage n normal loss is in high quantity

Less number of marketing executives

Demand for computer peripherals is not independent. It depends on the

information technology industry.

As most of raw material are imported their prices and supply depends on the

international market conditions.

In the industry technology changes very rapidly. As a result new and

advanced machines will become absolute in very short period.

5. SUMMARY OF ANNUAL REPORT

BALANCE SHEET AS 31STMARCH, 2006 (Rs. in

Crore)

PARTICULORS 2005-2006 TOTALPrevious Year

SOURCES OF FUNDS

Shareholders Funds

Share CapitalShare Capital Suspense

Reserve and Surplus

Loan Funds

Secured Loans

Unsecured Loans

Document Bills Discounted with

Banks

Deferred Tax Liabilities

TOTAL :-

APPLICATION OF FUNDS

Fixed Assets

Gross BlockLess: Depreciation &

Amortization

Net Block

Capital Work in Progress

Fixed Assets held for disposal

Investments

Current Assets, Loans and

Advances

Interest Accrued on Investments

Inventories

Sundry Debtors

Cash and Bank Balance

Loans and Advances

91.67

0.02

4,890.39

1,331.08

586.27

62.32

6,114.12

3,109.49

3,004.63

293.64

4,982.08

1,979.67

584.38

7,546.13

3,298.27

12.76

3,481.71

91.67 0.02

4,890.39 4,328.35

1,439.02

535.79

33.53

2,008.34 599.50

6,936.19

5,897.04

2,848.17

3048.87 145.94

3,194.81

13.73

2,982.02

1.09

678.59

522.01

86.70

565.54

1.853.93


25/33



Less :

Current Liabilities and Provisions

Liabilities

Provisions

Net Current Assets

TOTAL :

1.46

750.73

413.45

155.58

705.54

2,026.76

969. 15

304.22

1,273.37

753.39

7,546.13

827.89

280.41

1,108.30

745.63

6,936.19

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31STMARCH,

2006

PARTICULORS 2005-2006 TOTALRs. in Crore

PreviousYear

INCOME

Gross Sales

Less : Excise Duty

Net Sales

Interest & Dividend Income

Other Income

Increase / (Decrease) in stocks

EXPENDITURE

Raw Materials Consumed

Manufacturing Expenses

Purchase of Finished & Other

Products

Payments to Finished for other

Products

Payment to & Provisions for

Employees

Selling Distribution, Administrative

&

Other Expenses

Interest

Depreciation and Amortization

Profit before Tax &Exceptional

Items

Surplus on prepayment of sales tax

loan

Provision for diminution in value of

Investment and loans

Profit Before Tax

Provision for Current Tax

Deferred Tax

Profit After Tax

Debenture Redemption Reserve no

Longer Required

Investment Allowance Reserve no

7,607.20

986.69

6,620.51

67.53

136.71

(43.27)

6,781.27

1,822.69

1,580.34

240.15

407.64

1,139.59

97.32

291.64

5,579.37

1,201.90

7,201.06

971.80

6,229.26

114.75

72.44

100.67

6,517.12

1,873.05

1,498.77

49.02

373.13

938.46

138.76

284.57

5,155.76


26/33



Longer Required

Balance B/F from Previous year

Profit available for appropriation

appropriations

Proposed Dividend

Corporate Dividend Tax

General Reserve

Balance carried to balance sheet

Basic and diluted earning per share

(in Rs.

4.13

.

1,206.03

(369.82)

27.00

863.21

8.62

0.25

815.35

1,687.43

183.35

25.71

600.00

878.37

1,687.43

94.14

1,361.36

34.35

(92.00)

1,303.71

(451.00)

33.00

885.71

6.86

0.16

790.20

1.682.93

146.68

20.90

700.00

815.35

1,682.93

96.60

RATIO ANALYSIS:

PARTICULORS 2004-05 Previous Years Absolute ChangeIn Ratio

Profitability Ratio %:

20.88

22.55

13.00

7.00

16.06

2.20

25.89

25.79

14.53

6.81

11.95

2.05

-5.01

-3.24

-1.53

0.19

4.11

0.15

Operating Profit Ratio-

(Net IBIT / sales)

Gross Profit Ratio-

(Gross Profit/Total Revenue)

Net Profit Ratio-

(Net Profit / Net Sales) X 100

Turnover Ratio:

Inventory Turnover Ratio-

(Cost of Goods Sold / Average

Inventory)

Debtors Turnover Ratio-

{(Average Debtors / Sales )x 365}

Fixed Assets Turnover Ratio-

(Net sales / Net Property, Plant &


27/33



1

GRASIM INDUST

1

Equipment)

1.09

0.40

14.25

19.94

17.36

2.00

1.09

0.46

11.64

25.53

20.99

1.60

0.00

0.06

2.61

-25.59

-3.63

0.40

Solvency Ratio:

Current Ratio-

(Current Assets/Current Liabilities)

Debt Equity Ratio-

(Total Liabilities/Shareholders

Equity)

Interest Covering Ratio-

Performance Ratio%:

Return on Investment-

(Net PBT / Shareholders Equity)

Return on Net worth-

Dividend Yield-(Annual Dividends Per Share/Price

Per Share)

INTERPRETATION OF RATIOPROFITABILITY RATIO:

Operating Profit Ratio:

The operating margin is another measurement of managements efficiency. It

compares the quality of a companys operations to its competitors. A business that

has a higher operating margin than its industrys average tends to have lower fixed

costs and a better gross margin, which gives management more flexibility in

determining prices. This pricing flexibility provides an added measure of safety during

tough economic times.

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6

6

1

1

3

1

Gross Profit Ratio:

Although we are only a few lines into the income statement, we can calculate

our first ratio. The gross profit margin is a measurement of a companys

manufacturing and distribution efficiency during the production process. The gross

profit tells an investor the percentage of revenue / sales left after subtracting the cost

of goods sold. A company that boasts a higher gross profit margin than its

competitors and industry is more efficient. Investors tend to pay more for businessesthat have higher efficiency ratings than their competitors, as these businesses should

be able to make a decent profit as long as overhead costs are controlled [overhead

refers to rent, utilities, etc.]

Net Profit Ratio:

The net profit margin ratio is the most commonly used profit margin ratio. A

low profit margin ratio indicates that low amount of earnings, required to pay fixed

costs and profits, are generated from revenues. A low profit margin ratio indicates

that the business is unable to control its production costs. The profit margin ratio

provides clues to the company's pricing, cost structure and production efficiency.The profit margin ratio is a good ratio to benchmark against competitors.

TUNROVER RATIO:

Inventory Turnover Ratio:

The actual ratios calculated indicate that the total share holders funds are

much lower than total assets which imply that the position of the creditors is safe as

share capital including reserves is lower. In 2004-05 the ratio has been slightly

increased but it does not affect the position of debenture holders.

Debtors Turnover Ratio:

The significance of this varies according to the proportion of cash sales and

account sales. If retail business only sells cash (includes credit cards and cheques)

then this ratio is not relevant at all, as debtors at any point in time will be zero.

However, if sales are all the account customers then the number of days it takes to

collect your debtors is probably the most important key management ratio.

Fixed Assets Turnover Ratio:

The higher the Fixed Asset Turnover ratio, the more effective the company's

investments in Net Property, Plant, and Equipment have become. It may have

to search for the explanation in the financial statements to find out what investments

were made, as large capital investment purchases may not immediately yield higher

sales. It may take a year or more for the company to fully utilize those investments.

If you can clearly see the company invested in major improvements heavily one year,

it would be wise to watch the Fixed Asset Turnover closely over the next year to see

if those investments actually helped the company.

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1

SOLVENCY RATIO:

Current Ratio:

Current Ratio indicates the relation between C.A & CI and it shows the

firms financial stability or short term solvency of business. The ratios calculated

above clearly indicated that CA are more than CL and the firm is solvent but when

actual are compared to standard i.e. 2:1. They are below the industry standard,steps may be taken to improve current assets to reach the std. Ratio.

Debt Equity Ratio:

This establishes the relationship between outsiders funds and shareholders

funds the acceptable norm for this ratio is 2:1. The actual ratios calculated for the

year 04-05 are 0.40:1 and 0.46:1 respectively and they are above the std. ratio a

low ratio indicates lower claims by creditors than owners. The company has less

claim from creditors than owners as it is apparent from ratios calculated.

PERFORMANCE RATIO:

Return on Investment:

A performance measure used to evaluate the efficiency of an investment or

to compare the efficiency of a number of different investments. To calculate ROI, the

benefit (return) of an investment is divided by the cost of the investment; the result is

expressed as a percentage or a ratio. Return on investment is a very popular metric

because of its versatility and simplicity. That is, if an investment does not have a

positive ROI, or if there are other opportunities with a higher ROI, then the

investment should be not be undertaken.

Return on Net worth:

Return on Net Worth : Net After Tax Profit divided by Net Worth, this is

the 'final measure' of profitability to evaluate overall return. This ratio measures return

relative to investment in the company. Put another way, Return on Net Worth

indicates how well a company leverages the investment in it. May appear higher for

startups and sole proprietorships due to owner compensation draws accounted as

net profit.

Dividend Yield:

Dividend yield is a way to measure how much cash flow you are getting for

each dollar invested in an equity position - in other words, how much "bang for your

buck" you are getting from dividends. Investors who require a minimum stream of

cash flow from their investment portfolio can secure this cash flow by investing in

stocks paying relatively high, stable, dividend yields
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LEARNING EXPERINCE

1. I have learnt about the implication & importance of product layout which is

followed in aditya birla cement.

2. I gained the practical knowledge of 6 Sigma

3. Through the study I got the knowledge of how heterogeneous market is divide

into homogenous market.

4. I came to know about the logistic management which is success performed in the

Grasim Industry.

5. Grasim has an exposure to global market through which I understood the

marketing operation in international market.

6. I gained the knowledge of resolving grievance handling through collective

bargaining.

7. Monetary benefits are given to employees for motivation. This help me to gain

knowledge of techniques of motivation.

8. I got the partial knowledge of forecasting future sales for a companys products

9. Performance of understood about the various techniques of performance

appraisal i.e. 360 appraisal, comparison method which is successfully

implemented

10. I have gained the practical knowledge regarding various training method such as

vestibule training lecture method.etc.

11. The study helped me to understand participative style of management which as

followed in Grasim.

12. In Grasim trade union is affiliated to AITUC. I got the knowledge of functioning

of trade union in industry.

13. I got the practical knowledge of FIFO method for material handling.


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14. Grasim uses both internal and external sources for recruitment this helped me to

know which source should be used for gaining quality work force.

15. I gained the knowledge regarding distribution strategy that has to be

implemented in the industry.

16. The study tells that how the company sales executives, marketing managers are

handles the market

17. As per study I understood that the marketing manager gets the target and reach

there targets

18. I got the knowledge of the company forecast the market according to there

demand and there sales

BIBLIOGRAPHY

Organization Behavior 6thEdition Himalaya Publishing House

by K. ASHWATHAPPA.

Organization Behavior 11thEdition

by Stephon P. Robins

Strategic management, By Alex Miller.

Annual Report of Grasim Industries Limited

Web Sites:

www.aidityabirla.com[http://www.aidityabirla.com/]

www.grasimindustries.com

www.google.com [http://www.google.com/]

www.wikepedia.com[http://www.wikepedia.com/]

CONCLUSION
http://www.wikepedia.com/http://www.google.com/http://www.aidityabirla.com/


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Cement is one of the important materials in house construction and costs 12 to15%

of cost. Cement is used in more of less all the important like Roof slab, beams,

columns, lintels, brickwork and flooring. Cement imparts both strength and makes

the building component strong.

There are many companies which produce cement and sell the same under different

brand name. The cement produced by the different companies differ in some

attributes like quality, setting time, strength etc and they sell it at different prices.

So it is up to the organization to find out why customer buys particular brand of

cement at particular price. This study helps the organization to find out the main factors considered while

buying the particular brand of cement. The results of the study can be used to align

the production and supply to be in line with customers expectations. By doing so

company can increase its market share by adding more customers and can retain

them very easily.

Posted 9th February 2012by advaitha

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Imagelabels June 26, 2012 at 3:29 AM

IMAGE LABELS PVT LIMITED was established in the year 1996.The

products manufactured are Automotive Decals,Auto Instrument

Dials,Barcode Labels,Membrane Overlays,PU Dome Lables,Insulators

& Gaskets, Aviation Labels,Brand Logos & Warranty Void Labels

Membrane Switches

PU Dome Labels

Dials Automotive

In mould Products

Warranty Void Labels

For More details visit :- http://www.imagelabels.in/

Reply
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Documents

Grasim Industries Limited -- Project Work