Project on Ambuja Cement

AN INDUSTRIAL REPORT

ON

GUJARAT AMBUJA CEMENT LTD.

IS SUBMITTED TO

THE BHAVNAGAR UNIVERSITY OF BHAVNAGAR

PREPARED BY GUIDED BY

Bhadani Viral Nidhi Dave

S.Y.B.B.A (LECTURER)

ROLL NO: - 136 S.S.C.C.M

Swami Sahajanand College of Commerce & Management Affiliated By Bhavnagar University

Bhavnagar. (Gujarat)

Batch 2007-2010

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Project on


College Name: S.S.C.C.M Prepared By:- Bhadani Viral S.Y.B.B.A - (C)

R.NO. 136

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PREFACE

Now a day in modern business there is requirement of high skill. And

skill is referced to the practical as well as theoretical knowledge and to improve

skill both are important at high rate in the business. And in S.Y.B.B.A I get the

chance to improve my skill on the way of study.

I am really thankful to “Bhavnagar University ” because they included

one of the different subjects with the other six subjects. And the subject is “FIELD

PROJECT IN BUSINESS” as per the Bhavnagar university in S.Y.B.B.A the

student have to collect the information, and understand process of three

department like finance department, human resource depart department,

marketing department, production process and get a training after choosing a

one company. So, as a student I select “Gujarat Ambuja Cement Ltd.” Which is

situated at Kodinar?

I tried maximum as my level to collect information of all the department of

the company "GUJARAT AMBUJA CEMENT LTD". Like finance department, human

resource depart department, marketing department and production process. And

after complete this project I really understand the field work is really very

important in the business as well as in study to improve our skill. During the

project time I give maximum attention to understand function of management.

--- [Bhadani viral ]

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ACKNOWLEDGEMENT

I am really heartly thankful to our management of S.S.C.C.M of the

Bhavnagar because without their guidance I can not able to complete and submit

my project within the time period. I am also especially thankful to Principal Miss

Rachana Dhruv, Bakshi sir and Dhawni mam who provide very nice guidance to

full fill my project.

And as my duty I can not forget my duty to thankful to “GUJARAT

AMBUJA CEMENT LTD” company which is situated at kodinar, who provide me

better & latest information about all the department and process of all

departments. I am also thankful to branch of Bhavnagar, approved by ambuja

cement. Ltd. Because it is the link between us and “GUJARAT AMBUJA

CEMENT. LTD” .and it really works as a chain between us and “GUJARAT

AMBUJA CEMENT. LTD”.

--- [Bhadani viral ]

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No Particular Page No:

1 General Information. 7 to 19

2 Personnel Dept. 20 to 31

3 Marketing Dept. 32 to 44

4 Finance Dept. 45 to 62

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INDEX of general information

SR. NO. PARTICULAR PAGE NO.

1 Introduction 9

2 History of of the unit 10

3 development & Achievement of the unit 11

4 Size of the organization 13

5 Organization structure 13

6 Manufacturing process & product 14 7 Performance chart of production 18

8 Time keeping system 19


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1. INTRODUCTION It is says that as the famous proverb “NEED IS MOTER OF INVENTION”.

As the starting time of the earth, the man was live in jungal, after that because of

some invention he found cottage and he use it as their house. After that he made

a house by using brick, sand, and clay. After that time man makes great

invention and it is CEMENT. And it is also known as the great revolution in the

earth.

GUJARAT AMBUJA CEMENT LTD. was set up in 1986. The main

purpose of cement is construction of houses and buildings. Because of cement it

is possible to build up one floor to hundred floors. Once found of cement there

are arising thousands of company every after short time. And in it is one of the

best company of the world. And it is started in 1983. And now the details of the

company are as so on …………

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2. HISTORY OF THE UNIT

History:-

History means the pass events of the unit Gujarat Ambuja Cement

Ltd., (G.A.C.L.) it is handled by Sekhsaria & Neotia Group. Which has launched

in 1883? The project was decided to locate at Mahuva in Bhavnagar District and

unfavorable circumstance the location is change and it is establish in some other

place. And it is finallyestablish in the place at Vadnagar, Taluika Kodinar in

Junagadh District.

. Gujarat Ambuja Cement Ltd. is a Public Limited Company. It

purchased their new land for factory building and housing colony. They were

also motivated by the co-operation of G.E.B. who agreed to provide 19 MVA

power for the plant. Even our Railway provides transportation services between

Kodinar to Vadnagar plant.

The construction of entire plant commenced in March 1985 and

completed in August 1986. The company started its commercial production in

1986.

As passing of the time, the golden period came for the Ambuja

came into being "GUJARAT AMBUJA CEMENT LTD" (G.A.C.L.). They

developed its other branches in our country India. And it is great part of Indian

economy. Their plants are……………………

NO. NAME OF PLANT PLACE WERE SITUATED

1 Gujarat Ambuja Kodinar (Gujarat)

2 Him Ambuja Darlaghat (Himachal Pradesh) 3 Cement Ambuja Roopnagar (Punjab) 4 Guambuja (line 1) Kodinar (Gujarat) 5 Gujambuja (line 2) Kodinar (Gujarat)

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OBJECTIVE OF COMPANY :

The management of Gujarat Ambuja decided some objectives to

become topper in the market. And the objectives are……………

� Better quality then other company.

� Fair returns to share holders.

� A higher productivity to cover maximum market.

� Maximum customer satisfaction.

� Clean & healthy Environment for employee’s growth.

� Try to lower pollution to fulfillment of social responsibilities.

3. DEVELOPMENT OF THE UNIT

To decrease the transportation cost, they made a plat form on

the sea at Muldwarka, which 7 Kms. away from Kodinar So that they export

cement on the way of sea. Only the purpose of selling in other country.

INNOVATION OF PLANT:

To being echo friendly "GUJARAT AMBUJA CEMENT LTD" .

Installed pollution control equipments, by M/s. ABB & M/s. Thermex. The plant

achieved 148% productivity with lowest consumption of raw material & electricity

after innovation of plant.

GACL's first production - that was in 20th Sep. 1986 and the cement

grade was 33 grade cement which has comprehensive strength in 550 kg/cm2 &

by the passing time they have change technology of production & nowadays they

are producing 53 grades with 700 kg/cm2 comprehensive strength.

AWARDS: The company has achieved lot of National awards for quality

management every efficiency & productivity , pollution control etc…

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• Achievement of the AMBUJA CEMENT LTD.

Year Awarded By Awarded For

1989-90 The Economic Times Hayward

Business School Association of

India

Best Corporate Performance

award under Municipal

category.

1989-90 National productivity Council Certificate of Merit for

Productivity in the Cement.

1990-91 National productivity Council Second Prize for productivity in

the Cement Ind.

1991 Govt. of India National Award for the best

trade name.

1991 Gujarat pollution control board First prize for Environment

Management -1991

1992 Trade leader's club – Madrid,

Spain

International Award for the Best

Trade Name – 1992

1991-92 National Council for Cement &

Building materials

National Award for best Energy

performs. 1991-92

1991-92 Bureau of Indian Standard Rajiv Gandhi National quality

award

1993 Bureau of Indian Standards Quality Systematic certificate IS

– 14002-1986

ISO – 9002 -1987

1992-93 National productivity Council Second best productivity

1993-94 International Greenland Society

Hyderabad

Productivity, Gold award

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4. SIZE OF THE UNIT

There is no any fixed standard to measure the size of unit. but our

Govt. of India has made certain rules for measuring the unit, likewise, when the

investments of the company is above 100 laces, or total employment are more

than 400 then it is considered as a large scale industry. According to govt. rules

the "Gujarat ambuja cement ltd" is large scale company because of it `s forms of

company.

5. FORM OF COMPANY:

The G.A.C.L is a Public Limited Company. In Which ………

Share capital is ………………………………..304.48 Crores Rs.

Investment in plant & machinery is…………..1288.94 crores Rs.

Net current asset is ……………………………418.24 crores Rs.

CORPORATE OFFICE: SOLICITORS & ADVOCATES:

122, Maker Chambers III, Kanga & Co

Nariman Point,

Mumbai – 400 021. WORKS:

Ambuja Nagar P.O.

Taluka Kodinar, Dist Junagadh,

REGISTERED OFFICE: Gujarat – 362 715.

Ambujanagar P.O.

Taluka Kodinar, Dist. Junagadh, BHAVNAGAR OFFICE :

Gujarat – 362 715. 317/318 3RD floor

madhav darshan,waghavadi road

Bhavangar 364001.

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6. MANUFACTURING PROCESS:

Cement is manufactured by using the mixture of limestone, clay, sand,

literate, bauxite and iron and the mixture is burning at a high temperature of

1,400 to 1,500 degree Celsius and the resultant clinker (a final product) is made

then it mixed and grinding with gypsum to form cement for final use.

The process of manufacture is divided broadly into 3 stages…………..

Stages of process:-

1. Preparation of the raw materials

2. Burning process of the raw materials in kiln and

3. Grinding the clinker to the finished products

Type of Processes:-

There are mainly 3 types of processes to get the final product. These

processes are as follows…………….

A. Wet process.

B. Semi dry process.

C. Dry process.

A. Wet Process:-

This is the old process of manufacturing of cement. In this

process the raw material grinding with sufficient water, so that the mixture

contains 30% to 40% of water. But it is not useable because it use higher coal

consumption 30% to 35% as compared to dry process.

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B. Semi dry Process

In this process the raw material are processed in dry state and the

grinding raw meal is neutralized by addition of 10% to 20 % water, and it is final

by heat consumption process.

C. Dry process :-

This is the modern method of production. In the dry process limestone

and clay are fed into a grinding mill with passing hot air. The materials are heats

dried thoroughly and then reduced to fine powder know as raw meal.

the raw meal is mixed with a little water and formed into nodules in

nodulising fan. Their nodules are then fed into a moving grate through which the

hot gases from the rotary klin are passed. They are dried in pertically claimed.

The calcined nodules then fall into a short rotary klin of conventional

design where they are burnt to form clinker.

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(A). MINING STAGE :

The limestone is come out from mine by drilling and blast method. And

it is reach at plant by huge damper having carrying capacity of 35 tones.

(B). CRUSHER STAGE :

Limestone and marl are fed into the crusher plant which crushes the size

of 100 mm maximum. This crushed material is taken to the further stage.

(C). STACKER STAGE :

The stacker makes stock piles for pre blending in about 350 to 400

layers. Sample of limestone are taken out every 5 minutes for analysis in the

laboratory to determine their chemical properties, total carbonate. This analysis is

done to determine the composition of the stock pile correction where require are

done at this stage.

(D). RAW MILL STAGE :

Raw mill is a vertical roller mill in which crushes the material into fine

powder.

(E). BLENDING SILO STAGE :

In this stage silo blends material by clarification. Material gives correct

weight of the fed material or not.

(F). PRE-HEATER STAGE:

In this stage, passing the material from the top and the hot gases

upwards from the kiln so, the materials come down and take heat.

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(G). PRE-CALICIFATION:

In the pre-calcification the 5% of powdered coal is fired, Because of

the ore-heating and kilns are calceficated about 85 to 90 % materials is calcined

before the materials enter the coco3 with calcium oxide (quick lime) and carbon

dioxide.

(H). CLINKERISATION:

This material then enters the kiln, which rotates it with slow speed.

The material then enters the sintering zone where. In it the temperature is around

1400 c to 1500 c. Then the clinker is become cooled and it is taken in big for

bucket storage.

(I). CEMENT MILL:

In this stage the gypsum is added in cement about 4% to 6%.The

gypsum is added because this has effect regarding the setting time of cement

thereby providing time for work to be performed in planning the concrete. Then it

is gone for packing department as a when required.

(K). QUALITY CONTROL:

To maintain quality it is required that every stapes of manufacturing

process is cheek by proper measurement and in ambuja the whole process right

from feeding of raw materials to manufacturing of cement is controlled by

Japanese computers. Because of that it is possible to manufacture better than

better quality of cement.

It use CCU (Close Circuit Unit), in the manufacturing process so, that

they have improved their quality of cement and productivity of cement and it is -

9000 metric tones per day.

(J). PACKING:

The final stapes of cement is packing. The capacity of each packer is

120mt/hour or 2400 bags per hour the total capacity is 240 tones or 4800 bags

per hour. Then they are carried by trucks of wagons for one place to other place.

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Performances of Net Profit of G.A.C.L

0

5

10

15

20

25

2002 2003 2004 2005 2006 2007 2008

YEAR

PR

OD

UC

TIO

N in

m

illio

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nes

Production

Performances of Net Profit of G.A.C.L

0

5

10

15

20

25

2002 2003 2004 2005 2006 2007 2008

YEAR

PR

OD

UC

TIO

N in

m

illio

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nes

Production

Performance of G.A.C.L in Production

Chart

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7. TIME KEEPING SYSTEM:

The time keeping system is required for the entire department for

the entire worker, manager and a manager. There are various methods for time

keeping but Gujarat Ambuja Cement Ltd. Running with scientific system for time

keeping they use 2 methods for time keeping system and it is ….

(1) The register Roll system - in which the managerial staff has to

maintain the data of their arrival, exit, leave, and presents of all the days. It is

completely manual work.

(2) The other time keeping system is Punch Card System . In this each

employee has their own cards and each card has different coad. They are

inserting the card in punch machine, which is organized automatically. The punch

cards are so organized that an employee can enter his card only 4 times in a day

so, there were not problem about cheating. The punch machine is put on main

gate, one in main department, one in administration office. The punch cards are

also meant for truck drivers for counting on the exits and entries of number of

travels.

The punch card system is very scientific; it is less time consuming and

reduces the possibility of mistakes.

For better performance, arrangement, account of employees working

limit, and take care health of employee & worker. The plant of G.A.C.L. works for

24 hours divided in to three shifts of 8 hours each. And it is as……………...

FOR PLANT: FOR ADMINISTRATION STAFF :

Shift A: 6.00 A.M. To 2.00 P.M. 8.00 A.M. To 12.00 P.M

Shift B: 2.00 P.M. To 10.00 P.M. 12.00 P.M. To 2.00 P.M (Lunch Time)

Shift C: 10.00 P.M. To 6.00 A.M. 2.00 P.M. To 6.00 P.M

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Index of Human Resource Management


1 Introduction 21

2 ORGANISATION OF PERSONNEL DEPARTMENT 22

3 RECRUITMENT AND its PROCEGER. 24

4 Promotion & transfer policy 25

5 Wage & Salary Administration 26

6 PROVIDEND FUND SCHEME. 27

7 COLLECTIVE BARGAINING SCHEME. 27

8 TRADE UNION. 27

9 PERSONNEL RECORDS. 28

10 EMPLOYEE BENEFIT SERVICES. 28


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1. Introduction

Definition:-

A Human Resource Management can be defining as “H.R.M is

Managerial function which concurred with hiring, motivation, directing and

maintaining the people in the organization. – It is known as Human Resource

Management.

Human Resource Management (H.R.M) is also known as personal

management. Without H.R.M a company can not achieve their goal easily. All the

company has H.R.M department.

� Highlight on Human Resource Management

1) It is managerial and top level function.

2) It is concerned with employees, both as individuals as well as a group.

3) It is try to develop employee skill and better performance.

4) Personnel Management is a continuous process.

5) Without H.R.M a company can not achieve their goal easily.

Gujarat Ambuja Cement Ltd has H.R.M department having a

experienced Vice President.

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2. ORGANIZATION STRUCTURE

Gujarat Ambuja Cement Ltd established the line and staff type of

organization. Personnel department is under direct control of vice president

Senior Manager is responsible to vice president.

The main functions of personnel department of Gujarat Ambuja Cement

Ltd. Is…………………

1) To recruitment of employee.

2) To conduct interview for selection of efficient person.

3) To make man power planning.

4) To give gudence, and motivation to the employee.

5) To dealing with transfer and promotion.

6) Wage and salary administration.

7) To maintain the personnel records.

The organization chart of personnel department of the G.A.C.L is as under:

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Organization chart of H.R.M

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3. RECRUITMENT, & PLACEMENT

Recruitment:-

Employee are the asset of the company, so it to get skillful person for proper

management of man, machine, money and material.

This process is held by Personnel Department. The process of recruitment gets

started because of transfer, dismissal or promotion of the employee. The person

in charge gives advertisement through various means of communications like

new paper, Television, Magazine etc.

The recruitment is may be on……………….

(1) At management and administration level. (2) At staff level. (3) At worker level.

Selection process:-

Generally the following procedure is taken into consideration while

selection the member.

1) Choose proper media for Advertisement.

2) Accept all the application, and analysis them.

3) Select applicant on the basis of application.

4) Sand them call latter.

5) Conduct personal interview.

6) Then selected employees is given an

Appointment letter and make induction in the organization.

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4. PROMOTION AND TRANSFER POLICY

PROMOTION POLICY:-

"Promotion" is referce to the more authority, salary, and more responsibility.

In Gujarat Ambuja Cement Ltd., they use only only performance basis

promotion. So, employees are promoted on the basis of their skill, performance

and their achievement level.

TRANSFER POLICY:-

"Transfer referce to the transfer of person in other department, or on

other site with same authority, risponsibiliy\ty, and same salary.

In Gujarat Ambuja Cement Ltd., the workers are shifted internally -in

shift A to B, B to C, and C to A.

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5. WAGE AND SALARY ADMINISTRATION

Wage and salary are most use full to give motivation to the employee.

Wage and salary means the monitory reward paid to the employee on behalf of

his work.

In Gujarat Ambuja Cement Ltd. they pays salary to Employees and Wages

to labors And other allowances are paid. The amount of wage & salary paid

depends on grades.

A Grade / Management Category are…..

Basic salary + house Rent Allowance + 10% provident Fund + Medical

Allowance + medical Allowance + Vehicle Allowance + Bonus + D.A.

OVERTIME PAYMENT :-

Overtime payment is admissible toward wage board workers only. The

overtime payment is made on the basis of overtime memo received from the

department head.

EXTRA DUTY INTIMATION:-

If In accident case worker may loose his efficiency of performing the

present job. In such cases company make transfer of the employee and if he is

not able to work at all the units, the unit pays a reward to employee.

On the event of death of a workman the wages and other dues shall be

paid to the nominee as declared under the provident fund Act.1952.

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6. PROVIDENT FUND POLICY

The Gujarat Ambuja Cement Ltd. Has to follow Provident fund Act 1952.

Provident fund will be deducted from salary of employee at a rate of 12%.

DETAILS ARE AS UNDER :-

� Employee’s contribution @ 12% will be deposited in provident fund

account.

� Employer’s contribution @ 12 will be deposited in two different accounts a

follows.

• Deducting 8.33% goes to pension account.

• And 3.67% goes to P.F. Account.

7. COLLECTIVE BARGAINING:-

Collective bargaining is negotiation between an employer or a group of

workers to reach at agreement on working condition. It is also considered as one

of the remedial measure to set industrial dispute.

There is no formal collective bargaining in Gujarat Ambuja Cement Ltd. If

their were Any problem arise it is solved by management and lab our unions. By

meeting and the decisions making.

8. TRADE UNION:

According to Section 2(b) of Trade Union Act of 1926.

Gujarat Ambuja Cement Ltd. has no formal trade union. There is one

active labour union known as "Gujarat Ambuja Cement Karmachari Sangh".

It is only the union which fights for the rights of workers & solves the disputes.

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9. PERSONNEL RECORDS

Personnel record is a very important thing which includes name,

address, date of birth, qualifications, hobby, experiance etc. and as it helps to

take timely decisions. It also preserves evidence for future reference or use.

Looking to the importance of personnel records Gujarat Ambuja Cement

Ltd. has maintained separate file for each and every necessary details.

10. EMPLOYEES BENEFICIAL SERVICES

The personal management is tried to focus on employee and employer to

give best services. Thus it increases the satisfaction and the long run income of

the company.

The Gujarat Ambuja Cement Ltd., provide the best services to their

employee. The facilities provided by the organization to the employees is as

under……………………….

(A) EDUCATIONAL FACILITIES :

The Gujarat Ambuja Cement Ltd. has its own English medium school

situated in Kodinar city. The fees are very normal so, that a common person can

able to provide their child a better education.

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(B) MEDICAL FACILITIES :

The unit has its own medical center established in colony when any

family member of employee or himself is sick he can directly visit to the nearby

hospital and can go under Medical treatment. In case of any injury or accidents

the company pays the full expenditure, incurred for the treatment of worker.

During his rest period he would get the salary of those days.

(C) LEAVE FACILITIES :

The following are the leave facilities provided by the company to

the employees:

• Festival Leave :

All the workmen are granted National and social Festival

holidays

• Sick Leave :

The unit grants 12 days as a sick leave to the employees.

He can take leave for 12 days in one year for his sickness.

• Casual Leave

A workman may be granted Casual leave of absence

with pay not exceeding 7 days.

• Privilege leave :

Privilege leave is the leave for workers only. The

workers can get a privilege leave if he works for continuous 209

days.

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(D) CANTEEN FACILITIES :

The Gujarat Cement also provides a good canteen, where every

worker can go and take refreshments and snacks at cheap rates and

hygienic than other stuffs available in the market.

(E) OTHER ALLOWANCE :

1) Health Allowance :

Health allowance is provided 5 % of the basic salary to

the worker who works near the boiler, kiln etc. where the

temperature is very high.

2) House rent allowance :

The unit has its own residential building constructed within the

unit. This makes the workmen easy to reach. It can provide

quarters to all workmen.

(F) TRANSPORT FACILITY :

Gujarat Ambuja Cement Ltd. has its own bus which traveling

from Gujarat Ambuja Cement Ltd. to Kodinar and Veraval. In workers

bus they travel freely (no fare). There is even one school bus facility

provided too.

(G) BANKING FACILITY :

Gujarat Ambuja Cement Ltd. has its own banking facility

provided.

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(H) RECREATION AND SPORTS :

In its residential colony the unit has build up a recreation and

sports club. The club is facilitated by out door & in door games. The

club has a library too.

(i) LIBRARY FACILITIES :

The unit has its well developed library. This has many types of Newspapers in May languages and many magazines Indian and Abroad.

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INDEX of marketing management.

SR. NO. PARTICULAR

PAGE NO.

1 Introduction. 33

2 ORGANISATION OF MARKETING DEPARTMENT. 34

3 PRODUCTION PLANNING. 35

4 MARKETING SAGMENTATION. 36

5 PRICING POLICY. 38

6 CHANNEL OF DISTRIBUTION. 39

7 SALES PROMOTION. 41

8 Performance Chart of Selling of G.A.C.L 42

9 ADVERTISING. 43

10 MARKETING RESEARCH. 44


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1. INTRODUCTION:

The term marketing is derived from Latin word ‘marcutus’ which means a

place were business is conducted.

Market : - The market means a place where buyer and seller meet each

other and the deal finalize.

Marketing : - marketing means to delivered goods and services at a

right time, at a right place, and to the right person. – it’s known as marketing.

The bases of marketing are selling of the product. But the term

marketing is very wide and various.

The marketing head office of Gujarat Ambuja Cement Ltd. at Mumbai

which includes the Marketing Department of Gujarat Ambuja Cement Ltd. Is in

Gujarat, Maharashtra, Rajasthan and other stat of the country and also in foreign

country.

Gujarat Ambuja Cement Ltd.covers sales area in South Gujarat, Mid

Gujarat, North Gujarat, Saurashtra and Kutch, Gandhinagar and Kheda.

Marketing is starts with human’s needs and wants. People wont their

basic need like food, air, water clothing & shelter to survive. The human wants

are unlimited, various, and wide so, the marketing process will never become

stop.

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2. ORGANISATION OF MARKETING DEPARTMENT

it is true that the human wants are unlimited, verious, and wide so, it is a

responsibility of Marketing Department to organization it’s department in such a

way that it can help to satisfy the human wants. It does not help in the sales and

distribution of the goods and services only but it also help to customers satis

faction.

Gujarat Ambuja Cement Ltd. has its head marketing office at Mumbai.

The unit has adopted the marketing strategy of Geographical area wise.

In Gujarat the burden of marketing is carried by private marketing agency

MITCO which is situated at Ahmedabad.

The Organisation structure of Marketing department of G.A.C.L .

MANAGING DIRECTOR

MANAGING MARKETING MANAGER

ASST. MANAGER

SENIOR SALES OFFICER

SALES OFFICER

SENIOR EXECUTIVES

MARKET REPRESENTATIVE

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3. PRODUCT PLANNING

To satisfy customer needs and wants product planning is essential. Many

products affect some factor like geographic factor, cultural factor, social factor,

demographical factor, psychological factor, and many others.

Product planning is related following matters…………..

1. Product mix { Product width, line, depth, & distribution

Channel}

2. Packing

3. Labeling

4. Branding

5. After sales service

6. Organizing

7. Product research

The main product of G.A.C.L is cement and Product planning of G.A.C.L

is as under…………………………

� Port land pozoland cement [PPC]

� High strength ordinary port land cement [HSOPC]

� 53 grade cement.

� Special cement for railway etc.

in product planning the product, which is demanded the most is paid

more attention. G.A.C.L. has also done the same. This unit has paid more

attention to OPC because it is demanded more G.A.C.L. products other types of

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also but only anticipation of its demand for e.g. in Narrmada Project, PPC was

demanded which was fulfilled only by G.A.C.L.

G.A.C.L. has paid special attention for the quality maintenance. The

quality test is held everyday and every after one hour taken by G.A.C.L. for only

maintaining a standard quality, and because of this it got the ISI mark. It has

been given……….

� ISO 2000 [ For pollution free production ]

� ISO-9002 [ For quality ]

4. MARKET SEGMENTATION

Market Segmentation is a process of dividing total heterogeneous

market into various segments. Each segments tends to be homogeneous in all

significant accepts, for the purpose of selecting one or more segment as a target

market for a company and separate marketing mean is a reward to be developed

for even segment.

It is an act of classifying consumers on the basis of their characteristics

to select target market.

There are two type of market segmentat ion in G.A.C.L :

1. Consumer Oriented Segmentation.

2. Product Oriented Segmentation.

Market can be divided on Geographic Segmentation, Psychographic

Segmentation and Demographic basis.

G.A.C.L. has adopted market Segmentation mainly on two bases.

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(1). Consumers. Segmentation.

(2). Geographic Segmentation.

(1) consumer Segmentation : it is divided in 3 division in G.A.C.L .

A. The general public segment.

B. The Government segment.

C. The contractor segment.

(2). geographical Segmentation:

it is divided in 2 division in the G.A.C.L. at Bombay covers the region

of Rajasthan, M.P., Maharashtra etc. while Ahmedabad covers only Gujarat

because it forms the major part of G.A.C.L. market.

Because of quality G.A.C.L. taking maximum benefits of market

response. As a result G.A.C.L. is the market leader in Gujarat.

Market segmentation are use full as under…………………..

1. Maximum market for the product can be achieved.

2. Market gets new opportunities.

3. Selecting of channel of distribution.

4. Selecting advertising media.

38

5. PRICING POLICY:

Price is the main factor to satisfy the customer. Prices are known by

different names like - fees, fare, rant, commission etc. The pricing policy is

directly or indirectly affects the fixed cost, variable cost, Government policy etc.

(A) COST ORIENTED PRICING:

in this product the price is decided as per the cost of product and it is also

known as target pricing.

(B) DEMAND ORIENTED PRICING :

in this product the price is decided as per the consumer demand.

Gujarat Ambuja Cement Ltd. has many competitors in India and other

country also. So, they have set prices taking into consideration all of them. Thus,

the prices are always fluctuating it is also fluctuated by government.

Gujarat Ambuja Cement Ltd. looks upon following factors for determining

prices :-

(1) Cost of production.

(2) Advertising.

(3) Distribution cost.

(4) Sales promotion cost.

Gujarat Ambuja Cement Ltd. provides some motivation like gifts,

discounts; commission etc. for increases the efficiency of the dealers, stockiest to

selling more.

39

6. CHANNELS OF DISTRIBUTION:

A channel of distribution refers to a process of distribution goods and

services to the consumers by producer. It is known as distribution channel

because there were made channel between producer and consumer while the

selling and buying process is doing the market and it is as………………

1. Zero level distribution.

Producer Consumer

2. One level distribution.

Producer Retailer Consumer

3. Two level distribution.

Producer Wholesaler Retailer Consumer

4. Three level distribution.

Producer Agent Wholesaler Retailer Consumer

In G.A.C.L. the main channel of distribution is three level of distribution.

In G.A.C.L. marketing agency MITCO is engages in performing marketing

activities in Gujarat. They have their sales representatives in Gujarat appointed

by MITCO. It collets the order from the Gujarat and provide them their stock by

transport facility.

40

TRANSPORT FACILITYS:

in G.A.C.L. the transportation of cement bag is done by two ways………

(1). one is roadways (name of the road)

� Rajmoti Roadways

� Autohires Roadways

� Abhishek Rodways.

(2). other is sea ways (name of the ship)

� Ambuja Kirit

� Ambuja Shakti

� Ambuja Vaibhav

� Ambuja Shikar

� Ambuja Gaurav

41

7. Sales Promotion:-

Sales promotion is a key which opens the door of selling in the competitive

market. Sales promotion is help full for incress the selling because it is one type

of advertisement for EX: giving a free shample and sales promotional services.

To increase selling G.A.C.L. has applied sales promotional stapes at three

level like……….

1) AT DEALERR LEVEL :

The unit offer some benefit like cash discount, quality discount,

training to their dealers for dealing properly with consumer.

2) AT SALESMAN LEVEL :

Different skims offers to the salesman for increase the sales

volume by giving fixed target,If he is able to complete his target, he will be

rewarded monetary, non monetary or he got gift by the company.

3) AT CONSUMER LEVEL :

By G.A.C.L. consumer gets benefit of different types of cement at

high quality and gats other social benefit.

Sales promotion is not expenditure, it is an investment which is an

integral part of marketing to beat competitor.

42

performances of selling in G.A.C.L

01000200030004000500060007000

2002 2003 2004 2005 2006 2007 2008

YEAR

RS

.in c

aror

es

Sales

performances of selling in G.A.C.L

01000200030004000500060007000

2002 2003 2004 2005 2006 2007 2008

YEAR

RS

.in c

aror

es

Sales

Performance of G.A.C.L in selling

Chart

43

8. Advertisement.

Advertising is the modern medium of communicating between buyer and

seller. Advertising is a process of increasing customer tasted towards products. A

better advertisement can work as neculier bomb to beat the competitor in the

market. The G.A.C.L. has separate advertising budget committee and the budget

is fixed. Advertisement may be on quality, new idea, their services etc….

The main objective of G.A.C.L. to making advertisement of ambuja cement is

quality and strength.

The G.A.C.L. has made contract with "TRIKAYA" - A private

advertisement agency and it is make advertisement by…………….

1) Print Media :

G.A.C.L. gives advertisement in the news paper and Magazines. By

regular period.

2) Out Door Media :

G.A.C.L. gives advertisement on poster, holdings, wall painting, T.V, radio

and internet by regular period.

44

9. MARKETING RESEARCH

Marketing research is very important element to find out the customer

satisfaction, product sales, distribution channels, pricing, advertising. It also

helpful to sales fore casting for company's product which is related to future

planning.

In G.A.C.L marketing research is held and controlled by the Bombay head

office. Marketing research is also giving the idea about fashion, taste, social

factor, physiographic factor etc.

The G.A.C.L. makes marketing research by two ways

(1). Experimental method

It is making for check the distribution channel, advertising strategies etc.

(2). Survey method :

The G.A.C.L. make survey method By conducting the personal interviews,

by research marketing to find out effect of advertisement, sales volume,

distribution channel etc.

45

Index of financial management


1 Introduction 46 2 Organization structure of Finance Department 47 3 Bankers 47 4 Capitalization 48 5 Capital structure 49 6 Management of asset 50 7 Management of working capital 51 8 Performance chart of net profit of G.A.C.L 52 9 Analysis of Financial Ratio & Leverage 53

10 P&L statement of G.A.C.L 59 11 Balance sheet of G.A.C.L 61


46

1. Introduction

“Money is the life blood of business”

Money is one type of factor of production which is known as capital. It is

sure that the money is required for starting of the business, expantation, for

development of new unit, and liquidation of the business.

Thus the money is required the starting of business to liquidation of

business of the business. The money is work as lubricant oil in the business. So,

without money the business can not even start. So the company has to attention

on how they get money, how they utilize the money, how they invest it to get

maximum interest……this all the thing is known as financial management.

FINANCE means procurement of fund and maximum utilization of

fund which available in the business. So, it is required to control on the money

and it known as financial management.

Financial management is a planning, efficient allocation of funds and

control on the money. Financial information is required for :

1. Share holder.

2. Creditors

Looking to the importance of financial management G.A.C.L.

has established a separate financial department which is made financial budget

for all over the company and solves the problem of finance in the company.

47

2. ORGANIZATION OF FINANCE DEPARTMENT

In Gujarat Ambuja Cement Ltd., the finance & account department

is headed by the Vice President (Finance). Under him there are 2 group of

executive and its chart is as……….

In G.A.C.L all the authority is establish to the vice president of finance and he

has to maximum utilization of fund.

3. BANKERS

The G.A.C.L is gating finance or banking facility by……………

Bank of India

Dena Bank

Bank of Baroda

Punjab national Bank

ANZ Grind lays Bank

48

4. CAPITALIZATION

Capitalization means total funds required for doing business, funds like

equity fund, borrow fund, fixed asset, current asset etc…as per financial point of

view capitalization is required for earning fair rate of return on the investment. In

other word, the Capitalization refers to the decision regarding the total

requirements of long term funds

Types of capitalization :

There are three type of capitalization

(1). OVER CAPITALIZATION.

It Means the real value of share is reduced then the book value of

the asset. It occurs when the real value of the assets is less than the long

term funds of company.

(2). UNDER CAPITALIZATION

It Menace real value of share is higher than book value of the

assets. It occurs when the real value of the assets are more than the long

term funds of company.

(3). FAIR CAPITALIZATION

It menace real value of share & book value asset is equalize each

other.

49

5. CAPITAL STRUCTURE

The G.A.C.L is public limited company so the company has issued the

equity share capital which is known as long term capital. To handle capital

structure is very difficult task. Capital structure of the company involves many

functions like borrowed capital, owner's capital, share capital. Borrowed capital

means the capital borrowed from the out spiders. It may be an other company,

some banks or from some industries share capital means capital gain from funds

and shares.

The capital structure of GUJARAT AMBUJA CEMENT LTD. Is as….

50

6. MANAGEMENT OF FIXED ASSETS

Generally there are two types of assets:

(1). Fixed Assets :- The fixed asset are those asset which gives long time

benefit in the business like plant, machinery, equipment, building etc.

The investment in fixed asset of G.A.C.L. is RS. 3469.89 (in cores). The design

of plant is derived from the Germany; it was the latest cement plant in Asia.

(2). Current Assets :- The current asset are such asset which gives short time

benefit and which are use day to day in business. Like inventories, cash and

bank, loan and advance.

51

MANAGEMENT OF WORKING CAPITAL

Working capital means short time assets and liabilities. To done the

continuous routine activity we need some working capital so, in simple word

working capital is nothing but analysis of Current Assets & Current Liability.

There are mainly two concepts of working capital.

(1) Gross Working Capital

(2) Net Working Capital

Gross working capital is the capital investment in the term current

assets i.e. cash, short term securities, debtors, bills receivable and stocks etc.

Net working capital is the difference between current assets and

current liabilities.

Working capital management mainly on three bases……..

(1) Management of inventory.

(Value of raw material, working process, finished goods and scrape)

(2) Management of receivables.

(3) Management of Cash & Bank.

52

performances of Net Profit of G.A.C.L

01000200030004000500060007000

2002 2003 2004 2005 2006 2007 2008

YEAR

Net

Pro

fit

Net Profit

performances of Net Profit of G.A.C.L

01000200030004000500060007000

2002 2003 2004 2005 2006 2007 2008

YEAR

Net

Pro

fit

Net Profit

PERFORMANCE OF G.A.C.L IN NET PROFIT

CHART

53

7. FINANCIAL RATIO ANALYSIS

Financial ratio is one of the most important tools to analysis and

criticizes the account prepared by the business. A financial ratio means relation

between two or more related item of financial statements known as ratio. The

ratio may be in proportion or in percentage (%).because of ratio analysis the

company can make future estimation and take step for future.

RATIO ANALYSIS

There are three branches of accounting:

(1) Financial Accounting.

(2) Cost Accounting.

(3) Management Accounting.

In Management Accounting Manager has to prepare various

statements. Manager has to do some analysis & interpretation of various

data. Through this analysis manager has to evaluate past information,

current position and predict future position. So, this purpose he has to do

analysis of various financial situations.

54

Ratio Analysis

[For year 2006-07 only]

(1). NET PROFIT RATIO :-

= 100Sales

)Profit(PATNet x

Net Profit (PAT) = 1769.10

Sales = 5705

= 1005705

10.1769 x

= 31.10 %

This ratio gives the information about actual margin of profit realized from

routing activity. Generally standard margin is 10% to 15%. But t is 31.10 % so,

company has good profitability.

(2) Current ratio :

=LiabilityCurrent

AssetsCurrent

Current Assets: - Inventories, sundry debtors, Cash and Bank Balances, other

current assets, loans and advances.

Current liability: Liabilities, Provisions.

55

09.116933.1587

= 1.36:1

This ratio gives the actual information about the liquid position of the

company. Standard margin of this is 2:1. Here, it is actually 1.36:1 which near

the standard margin so, presenting good liquidity of the company.

(3) Liquid ratio

Liquid Assets

Liquid Liability

Liquid Assets = Current Assets – Stock

Liquid Assets = 1587.33 – 317.00

Liquid Liability = Current Liability – Bank Over Draft

= 395.75 – Nil

= 395.75

09.1169

33.1267

= 1.08: 1

This ratio gives the information above actual liquidity of the company.

Standard margin of this is 1: 1 and here, it is 1.08: 1 so company ha good liquid

position.

56

(5) Return on share holder fund.

= x100FundHolder Share

(PAT)Profit Net

Net Profit) PAT) = Equity Share Capital + Pre.

Share Capital + Reserve & Surplus –

Miscellaneous

= 270.38 + 1908.01 -9.72

= 2168.67

= 10025.4661

1769x

= 37.95%

This ratio gives the information about net margin on profit realized on

share holder investment her it is 21.593%.

57

LEVERAGE ANALYSIS

The term LEVERAGE may be defined as the employment of assets or

sources of funds for which the firm's pay fix cost or fix return.

TYPES OF LEVERAGES

1. Financial Leverage

2. Operating Leverage

3. Composite Leverage

FINANCIAL LEVERAGE

It may be defined as % change in profit before tax (PBT) as a result of a

% change in earning before interest and tax. It is known as financial leverage.

58

FINANCIAL LEVERAGE.

For 2006-07 Year

= EBT

EBIT

EBIT = 603.29 (Carors)

- Interest and finance charges = 84.75 (Carors)

----------

EBT = 518.54 (Carors)

- TAX = 50.25 (Crores)

-----------

PAT = 468.29 (Crores)

= EBT

EBIT

= 1769

2712

= 1.53 TIMES.

59

8. Profit & loss statement

Ambuja Cements Limited Profit & loss Account

for the year ended 31stDecember,2007

Rs. in Crores 2007 2005-2006 (12 months) (12 months)

Rs. in Crores

Rs. in Crores

INCOME

Sales Including VAT / Sales tax remission

Rs 73.08 crores; 31.12.2006 Rs 87.03 crores

6,469.68 - 7,016.70

Less: Excise duty 764.84 742.18 5,704.84 6,274.52 Other Income 193.53 94.11 5,898.37 6,368.63 EXPENDITURE Manufacturing Expenses

2,135.06 - 2,514.54

Variation in Stocks -56.82 - 9.94 Employee's Cost 208.62 233.08 Administrative, Selling and Other Expenses

1,382.33 - 1,388.46

Interest and Finance Charges

75.85 - 113.23

Depreciation and Amortization

236.34 - 326.12

3,981.38 4,585.37 Less Self consumption of clinker cement

(net of excise duty Rs 2.23 crores: 31.12.2006 - Rs 3.09 croes)

-9.4 -10.82

3,971.91 4,574.55

60

Profit before Tax and exceptional items

1,926.46 1,794.08

Exceptional items 785.89 47.52 Profit before tax 2,712.35 1,841.60 Provision for Taxation

- -

-- Current Tax {Refer Note 25}

737 - 392

Income Tax for earlier year {Refer Note 25}

202 -

Mat credit entilement - 62 939 330 - Deferred Tax (Refer Note 10)

0.90 3.07

-Deferred Tax Share in joinr venture

(0.01) 0.06

- Fringe Benefit Tax 5.15 5.28 943.25 338.35 Net Profit 1,769.10 1,503.25 Balance as per last account

272.06 151.38

2006 of erstwhile ACEL (Refer Note 14)

- 71.31

Limited {INSCL} {Refer Note 26}

0.21

0.21 71.31 Transferred from Debenture Redemption Reserve

30.00 72.05

Transferred to general Reserve

1,100.00 1,.000.00

Interim Dividend on Equity Shares

380.41 339.89

Dividend Distribution Tax on above

64.65 47.67

445.06 387.56 Proposed final dividend on equity Shares

152.24 121.35

Dividend Distribution Tax on above

25.87 - 17.02

178.11 138.37

61

Balance carried to balance sheet

384.20 272.06

Earnings per share in Rs. (Refer Note 8)

Rs Rs Basic 11.64 10.12 Diluted 11.61 10.09 Notes forming part of the accounts

62

9. The Balance sheet of ambuja cement Ltd.

Ambuja Cements Limited Balance Sheet

as on 31st December 2007 Rs. in Crores As on

31.12.2007 Rs. in Crores

As on 31.12.2006 Rs. in Crores

SOURCES OF FUNDS

Shareholder's Funds

Share Capital 304.48 - 303.37

Share Application Money, pending allotment

- 0.05

Employee Stock Option outstanding (Refer Note 8)

0.38 - 1.09

Reserves & Surplus 4,356.39 - 3,187.21

4,661.25 3,491.72 Loan Funds

Secured Loans 100.00 317.77

Unsecured Loans 230.42 - 547.61

330.42 865.38 Deferred Tax Liability, net{Refer Note 10}

378.38 383.86

Total 5,370.05 4,740.96 APPLICATIONS OF FUNDS

Fixed Assets Gross Block 5,23.05 4,542.50 Less: Depreciation 2,271.19 2,053.32

Net Block 2,959.86 2,489.18 Capital Work in Progress (Refer Note 28)

510.03 541.92

3,469.89 3,031.10

63

Advances against Capital Expenditure

186.76 93.01

3,656.65 3,124.11 Investments 1,288.94 1,133.12

Current Assets, Loan and Advances

Inventories 518.60 408.82 Sundry Debtors 145.68 89.95 Cash and Bank balances

650.79 378.10

Other Current Assets

3.91 5.04

Loans and Advances 205.35 - 295.70 1,587.33 - 1,177.61 Less Current Liabilities and Provisions

Liabilities 675.54 532.91 Provisions 493.55 168.68 1,169.09 701.59 Net Current Assets 418.24 476.02 Miscellaneous Expenditure (to the extent nor written off or adjusted)

6.22 7.71

Total 5,370.05 4,740.96 Notes forming part of the Accounts

64

BIBILIOGRAPHY

To prepare this project I have taken the guidance of some books for

Theoretical concepts & definitions which are listed below:

Sr. No. Name of the Book Author

1. Personnel Management k. aswathappa

2. Marketing Management Philip Kotlar

3. Financial Management Prof. S.P. shah

Prof. J.M. shah

65

CONCLUSION

Today, G.A.C.L. has become one of the larger and profitable cement units

in the Indian Cement Industry. It has done his job within a very short time

by providing itself as an efficient unit.

From the very beginning it has maintain high quality standard and it

has been approved by granting it ISO 9002. Now slowly it is going

towards the international market and has started to spread its wings over

there. It is slowly and steadily moving towards the grand success.

G.A.C.L. is not only enveloping its own firm, but is also developing

the Kodinar Taluka. It has awareness towards environment by achieving

zero level pollution.

At last, I really feel very good, because I get best opportunity to

make project and get practical knowledge of G.A.C.L. It has really played

an important role in developing our country.

*********************************************

Documents

Project on Ambuja Cement