PREPARED BY
DODIYA JIGNESH K
MBA – (Sem – III)
ACADEMIC YEAR
2008-2009
PRO.JAGRUTI T THAKER
SUBMITTED TO
N.R.VEKARIA INSTITU OF BUSINESS MANAGEMENT,
SAURASHTRA UNIVERSITY, RAJKOT.
COLLEGE CERTIFICATE
Bilkha Road,
JUNAGADH - 362001
Date:
He has prepared project report and submitted a copy of the project report of
mentioned training to the institute.
DECLARATION
This is my real work and has not been submitted to any other university or
institute towards the award of any degree.
Date: -
ACKNOWLEDGEMENT
PREFACE
“Knowledge is one of the most important Treasures for any person”. The
amount of the knowledge in this world is a doubling every five years and with the end
of the 21st century it is now expected to double every two years. So if I plan to be in
this knowledge explosion means that I would be facing with unprecedented challenges
Learning is the process, which stops with the life; my variance visits to plant &
office of the company as filled our empty coffers with enlightening knowledge, which
will be the everlasting in our life.
All the valuable data are collected from reliable source of the company, which
are trustworthy. I will always remember my second year of MBA; especially because
it was privilege that I got opportunity in such a reputed company. An activity such a
project report gives lot of pleasure to me, as I enjoy living practical life.
CONTENT
1. INDUSTRY OVERVIEW 7
2. COMPANY OVERVIEW
3. PRODUCTION DEPARTMENT
5. MARKETING DEPARTMENT
6. FINANCE DEPARTMENT
9. BIBLIOGRAPHY
INDUSTRY OVERVIEW
Establishment :- 1988
E-mail :- info@amulind.com
Website :- www.amulind.com
The Indian Auto Component Industry had its small beginnings in the 1940s. If
the evolution of this industry is traced in India, it can be classified into three distinct
phases namely:
The period prior to the entry of Maruti Udyog Ltd was characterized by low
technology and assured business for most of the auto-component manufacturers who
used to supply to a handful of players in the Indian automobile market like Hindustan
Motors, Premier Automobiles, Telco, Bajaj, Mahindra & Mahindra etc.
With the liberalization of the Indian economy in 1991 and coming of many
foreign automobile manufacturers like Hyundai, Daewoo etc., the auto ancillary
industry witnessed huge capacity expansions and modernization initiatives in this
period. This also led to a tough competitive scenario, which saw a lot of consolidation,
technological collaborations and equity partnerships within the industry and with
leading global players abroad.
The performance of auto ancillary sector is closely linked to those of the auto
sector. Demand swings in any of the segments (cars, two-wheelers, commercial
vehicles) have an impact on auto ancillary demand. Demand is derived from original
equipment manufacturers (OEM) as well as the replacement market. Replacement
demand accounts for close to 57% of total demand, while OEMs account for 27%,
with exports accounting for the balance 16%.
PERFORMANCE OF COMPANY
The Indian auto industry produces an estimated 9.7 million vehicles, propelled
by a surging domestic demand, which has pushed the growth rate of the auto industry
to 20% in the last couple of years. The domestic industry is set to grow manifold over
the next few years as estimates point out that the Indian auto components industry will
invest about $1 billion towards ramping up capacities and acquiring newer
technologies every year for the next 10 years.
OBJECTIVE
POLICY
ORGANIZATION CHART
There is lot of positive factors - India has emerged as an outsourcing hub for
auto parts for international companies such as Ford, General Motors, Daimler
Chrysler, Fiat, Volkswagon, and Toyota. India enjoys a cost advantage with regard to
castings and forgings. The manufacturing costs in India are 25 to 30 percent lower
than its western counterparts. India's competitive advantage does not come from costs
alone, but from its full service supply capability.
Besides the burgeoning demand from global auto majors, there is also the
domestic car industry, which is growing at a spanking rate of over 16 per cent, driven
by a rising consumer base and affordable loans. Auto sales within India are expected
to touch 10 million by 2009 and Indian auto majors have registered a growth of over
24 per cent in vehicle exports in September 2006 alone. The industry displays
tremendous potential in generating employment and boosting entrepreneurship in the
country. The spate of new investment plans announced by global and domestic
automobile manufacturers promises the emergence of India as a global hub for auto
components.
COMPETITORS
STRENGTH:
"Amul Industry" has experience and qualified staff. Very high brand
identify. Very less dependent on government for wall and power. Sound to cope
up with the economic situation. High distribution efficiency. Excellent
management team to cope with changing environment.
WEAKNESS:
OPPORTUNITY:
The receipts of the bulk order of customer are great opportunity for
industry. Company provides after sales service to their customer.
THREATS:
Major Players
INTRODUCTION: -
Amul Industries started its functions in 1988 as a small scale industry; today
we are manufacturing 175 different types of Connecting Rods and are considered one
of the biggest Connecting Rod manufacturers in India. Within a short span of 15 years
the company has been able to touch turn over of 40 corers with more than 400 people
working with it.
Our list of customers include almost all automobile giants in India including
Cummins India Ltd., L & T John Deere Ltd., Tata Motors, Ashok Leyland Ltd.,
Mahindra & Mahindra Group, Simpson & Co,. Swaraj Engines, Eicher Tractors as
well as Motors, Hero Motors, Greaves Ltd., Same Engines, New Holland Tractors
Ltd., Escorts Tractors etc. Also to include are the customers from other segments like
Generators, Air Compressors, Hermetically Sealed Compressors, Diesel Engines and
Hydraulic Motors. Ingersoll-Rand, Kirlosker Oil Engines, Voltas, Tecumseh Products
are to name some of them.
Our Products are also exported to overseas OEMs like Iveco-Italy, Lombardini
Italy, FMC-USA, and John Deere-USA etc. We are also exporting our products to
more than 20 countries in Europe and Middle East Countries for Heavy & Medium
Commercial Vehicles as well as compressors.
Our disciplined system of working, state of the art technology and high degree of
quality controls have fetched us ISO 9002 (1994), QS (1998) as well as TS 16949
accreditations.
Our manufacturing facilities are backed up with latest & precision measuring
systems. This facility is studded by specially designed UTM, Micro Scope, Spectro
Scope for Chemical & Physical testing and Latest CMM (Three Co-ordinate
Measuring Machine), ScanMax, Marposs Final Inspection Gauge (To check 19
parameters of Con Rod at a time), Electronic Torque Tester, Nut Runner, and
Calibration Masters for Dimensional Checking.
We are also equipped with Connecting Rod Fracturing (for Casting Connecting Rods)
and Crank Shaft Radius Rolling facility. We enjoy the status of being the only supplier
having these facilities in India.
PUNE OFFICE
"Safalya"-1103/A-9,
Adarsh Colony,
Opp. VidyaBhavanHighSchool,
Near, Model ColonyTelephone
Exchange,
Shivaji Nagar,
Pune - 411 016.
MUMBAI OFFICE
CHENNAI OFFICE
HYDERABAD OFFICE
8-2-293/174/a-27
B.N.Raddy Colony,
Road No.-14,BanjaraHills,
Hyderabad - 500 034
GROUP OF COMPANY
The major functions are grouped under 5 departments. The departments are:
1. Production Department
2. Marketing Department
3. Finance Department
4. Human Resource Department
5. Quality control Department
1.1 Introduction
1.2 Production Process
1.3 Types of plant layout
1.4 Plant Layout
1.5 Selection of Location
1.6 Material handling system
1.7 Production planning & control
According to E Buffa,
In deals with man, machine and by the help of both productivity and
satisfaction and desirable results.
Instead of wasting time for opening file, document to get information regarding
any product just fit on computers and within few minutes you can get detail
information.
The whole process is semi automatic, where process operating persons closely
monitor the whole plant operation through visual. Semi automatic machinery ensures the
steady and smooth operation of unit.
Different process can be done according to different product at Amul Industries Pvt.
Ltd. There are different products like:
a) Connecting road
b) Cam shaf
PROCESS:-
A. Connecting rod
A. Grinding
B. Drilling
C. Boring
D. Rib milling
E. Cap spot face
F. Final parting face grinding
G. B.E. pre boring (Ruf boring)
H. Bolt hole pre drilling
I. Bolt hole final drilling
J. Tapping
K. Oil hole top face
L. B.E. final boring
M. B.E. face & chamfer
N. Oil hole drilling
O. B.E. face groove
P. S.E. heating
Q. 1st & 2nd face
R. Bush boring
S. Rod opening
T. Rod notch milling
U. Weight greding
1. Process layout:-
In this type of layout all machines performing similar type of operation are grouped at
one location. In this layout several products may share a machine to make its full use. In
this type of layout, the process rather than the product has the dominating role. This type
of process is more suitable for job order type of production. In such production the
operation differs from product to product.
2. Product layout:-
In this type of layout the machines are arranged in sequence as required by the particular
product. This is also known as “The Product Line Layout”. In this layout one product
goes through all the machines lined up, in the manufacture required by its manufacture.
In this type of layout, the product is dominating over the process. Product is more
suitable for continuous flow production with few items of production.
Generally pure process or pure product is not found in practice. So a proper combination
is made in order to best suit the production process. A proper compromise reaping the
benefits of both is made possible in this type of layout.
Process layout:
As Amul practices continuous flow of production and the process is arranged based on
the next process, so it is organized in a process layout form, which facilitates the
production of Automobile parts in a systematic way.
1. Power:
We know that power is basic element for running smooth activity for any
industry. So generally people choose such a place where power is easily available
2. Labor:
On growing modernization of plants, the requirement for skilled man power has
increased then that of unskilled man power. The cheap availability of labour from the
near by areas has proved to be great help for the company.
3. Transportation: -
It is a very important thing to be kept in mind while deciding the location. It cost widely
affects the overall cost. Rakot is centre area which is connected through National
highway 8-B and 8-A and Airport facility also available so it is helpful to reduces cost of
transportation for the company.
In a manufacturing firm, the raw materials are obtained from the suppliers and are stored
in the storeroom. These raw materials are then issued to purchase Department and are
moved inside the plant from one process to another till they are converted into finished
goods.
Thus material handling involves movements of materials from one place to another for
the purpose of processing. They are moved either manually or mechanically. The job
tackled by material handling equipment like lift and trolley etc.
Amul has also quality control department. In this department quality of the
entire product is checked. If there is something defect then it sends to back for
to improve the product.
1. RECEIVING INSPECTION:
In this process they checking randomly any piece at every hour to know
product is produced at uniformly.
In this step randomly three to five pieces selected for various parameter
check when it goes from forging to dispatch.
Definition:
Marketing is the process of planning and executing the conception, pricing, promotion,
and distribution of ideas, goods and services to create exchanges (with customers) that
satisfy individual and organizational objectives.
Some of the factors like competition create awareness of product to customer, market
penetration, to achieve goal for selling in particular segment, to establish good image
of brand of product to customer, etc are driving force behind marketing task.
As additional companies are coming up in the other region, there is stiff competition.
This companies need to adjust themselves to changing situation by upgrading the
technology, widening product range, developing new market segments, improving
existing, channel of distributions etc.
o Price differentiation
M.D.
MARKETING DEPARTMENT
DEVELOPMENT REGULAR
MARKETING MARKETING
A company, which decides to operate from some part of market normally, can not
serve all the customers in market. To maximum utilization of available market &
resources to the sales the company adopts the market segmentation policy.
3. Car segment
4. Diesel engine
5. Earth mover
6. Tractor segment
Price is the only element of marketing mix that produces revenue. So we can say that
price is one of the most important element determining company’s market share and
profitability.
When it comes to setting up the price, it is the most crucial decision. Price decides the
market share and profitability. So any mistake in deciding price will affect too much to
unit.
It is the simplest method for price. It also says as cost plus & target pricing. AMUL
Ind. keeps the following point in mind while deciding on cost base.
1. Raw material
2. Machining cost
4. Packing cost
5. Transportation cost
When producer relinquishes some control over how and to when products are sold to
marketing intermediaries, it is said to be the channel of distribution.
A. Sales Promotion:
Definition:
With the help of various auto fair AMUL Ind. make sales promotion.
B. Advertising:
In the present period of business management, advertising is the most important media
to stay in the market. To earn profitability in business it is very necessary to advertise
our product of doing its publicity. Through advertisement one can differentiate its
product from the product of the other company.
LIST OF CUSTOMER
Thus in short, it is concerned with the obtaining and maintaining of satisfactory and
satisfied work costs. The main objectives of personnel department are:
OBJECTIVE OF HRM:
SOCIATEL OBJECTIVE:
This refers to be ethically and socially responsible to the needs and challenges of the
society while minimizing the negative impact of such demands upon the
organization.
ORGANIZATIONAL OBJETIVE:
FUNCTIONAL OBJECTIVE:
It refers to assist the employees in achieving their personal goals, at least in so far as
these goals the individual’s contribution to the organization. Personal objective if the
employees must be met if worker are to be maintained, retained and motivated.
AMUL Ind. consists of line and staff type of organization. Personnel Department is
under direct control of senior general Manager who is responsible to managing
director in AMUL Ind. Here the main functions followed by personnel department are:
o Job description
Recruitment can be actually defined as “the generation of the application for specific
post” thus it is a searching of prospective candidates, a process of getting potential
employees who are willing to apply for the job in the company.
In India, the skilled employees are not available vary easily, one can not find a right
person at right time, at right place.
When vacancy is found in any of the organization department, the department heads
fills up a requisition form in which all age, duty, every qualification, and experience is
being sent to the personnel department and after it is being approved is being
advertised on the notice board of unit or in newspaper, magazines, etc. while selecting
the means of communication for recruitment emphasizes is given on targeting proper
personnel.
In AMUL Ind. for selection of technical staff first they take their practical test and if
they satisfied than company take their feedback and for non-technical staff they check
computer literacy and English fluency.
Once the candidate is selected, he has to go for the probation (induction) perform,
which is generally for one year. To facilitate the selected candidate to have
introduction with the organization, its structure, behavior, rules, regulation, the
induction period is very necessary. The employee has to fill various forms regarding
PE, EST, etc and is provided with “Induction kit”, containing the information as
above. He is also being given the general idea a responded to his duties, work,
responsibilities, for which he has been selected. The reason behind induction program
is to make the employee well set with new environment speedily.
Training means “Any process by which the aptitude, skill, ability of a person to
perform a specific job can increase”.
AMUL Ind. has given specific importance to training and development program
because,:
The seminar and training program one also held within the campus premises. The
training needs one determined by the departmental needs and the concerned officers.
Development is a related process but can be rather be more important for managerial
level employees, who require much of theoretical knowledge and for a long duration
of period.
Job description:
Job Description is a written documentary outline of the principle facts about individual
jobs. In short, it refers to the data obtained through of the analysis process.
When any candidate is selected at that time information is given to him about his/her
job. This information includes following points.
a) Working condition
f) About superior from whom he/she will have to control and guide.
In AMUL Ind. there is no policy of following written job description as they don’t feel
it important. Generally it is being performed orally.
Promotion means to uplift of an employee within the organization and advance him in
the direction of top level. Thus it means to increase in authority, responsibility, status,
salary, etc. in AMUL Ind. there is one specific criteria and system and program to
transfer the person from one job to another higher job. In normal courses employees
are promoted on the basis of seniority and work performance for helper and behavior,
education and work experience for official staff. Their skills and performance within
the organization in job. So here the promoting system is subjective not the objective.
This policy increases the interest and efficiency of the person who is working in the
organization.
e) To serve as a controlling/measure.
In AMUL Ind. wages & salaries are paid on 7th day of every month. This unit is
making cash payment.
A separate salary call has been maintained to the salary records. The amount of salary
paid depends on the post of the employees.
Provident fund is a statutory obligation of cost of the employees by the act. Any
employee who has 120 days of continues job, a financial scrutiny on the part of
employees, after retirement from job. It is applicable to the unit which engaged more
than 50 employers within its organization.
As par company act 1956, AMUL Ind. also provides facility of Provident fund to their
Employee.
According to Amul it is our best policy that in our organization grievances are
never happened. If this type of situation occur in organization we can solved it within
our four walls.
1) Name of Employee
2) Employee Number
3) Designation
4) Department
6) Application form
7) Interview letter
8) Appointment letter
Personnel Policy:
c) To advice and assist for high moral and better human values by sustaining and
improving the conditions which has been established so that employees may
stick their jobs a longer period.
f) To fulfill legal compliance in time and maintain good relation with government
authorities, other agencies and local bodies to enrich companies vision and
mission.
Employee Welfare:
The management of AMUL Ind. wishes to inside employee to his organization and
also they provide many benefits to the employees which are as under.
AMUL Ind. Possesses good industrial relations. All the employees are quite satisfied
with wage rate and other facilities offered by the organization. The unit provides the
beneficial activities to each of the employees and his family member as mentioned.
A. Medical Facilities:
AMUL Ind. has Tie up with one private hospital and when any employee is sick and
injured, goes to hospital and gets the necessary treatment.
In case of accident, the company pays the full expenditure, incurred for the treatment
of workers. The accident was occurred within the organization, while performing duty
then the workers will get salary too for the days of rest advised by the doctors.
B. Leave facility:
b. Sick Leave: The unit grants sick leave to the employees. He can take
leave for 20 days and time during a year.
C. canteens Facility:
b. Three time tea provided for all the worker per day.
D. Other Facility:
b. Entertainment Facility.
c. Festival celebration.
d. Tour.
e. Yoga classes
Finance department
Financial Planning means planning of finance. In the planning of finance not only
planning is done for spending the money but also planning is done for finding and
evaluating source of finance.
As per Government rules and regulations AMUL Ind. has the financial year from April
to March and on that basis at the year, Balance sheet is prepared and net profit is find
out.
1. INTERNAL SOURCE:
2. EXTERNAL SOURCE:
Secured Loans
Unsecured Loans
It is tried to collect the fund at very cheap rates & utilized in the best possible manner.
For best utilization of funds, AMUL prepares two types of plan. Two are as below:
Financial planning is done for less than once in a year, so it is known as short-term
planning.
AMUL does it annual planning and quarterly basis they compare actual result with
standard which predetermined and than find deviation and try to solve for it by many
ways like.
2. Control on rejection.
Planning done for more than one year then it is called long term planning.
Amul’s financial year is April to march so; Amul generally does its long term planning
in the month of April. Amul does its financial planning on yearly, two yearly, and five
yearly.
The capital structure is made of debt and equity securities, which compromises a
firm’s finance of its assets. It is permanent financing of firm, represented by long
term’s debt plus preferred stock plus net worth.
Particulars Rs.
31-03-2006
(A) Share capital 30,000,000
TOTAL 355,891,760
1] SOURCE OF FUNDS
a) Shareholder’s funds
Share capital 30,000,000 30,000,000
Reserve funds 49,224,410 27,200,730
b) Loaned funds
Secured Loans 154,282,283 93,241,376
Unsecured Loans 122,385,067 122,517,674
c) Deferred taxes 11,919,945 12,193,721
367,811,705 285,153,501
2] APLICATION OF FUNDS
[1] INCOME
[2] EXPENDITURE:
Material consumed & 640,701,834 453,261,886
Direct taxes
Personnel expenses 25,045,868 22,781,091
RATIO ANALYSIS:
81705290 49767480
780138569 555353785
10.473177 8.9614011
Amul industries pvt. Ltd. Was the sufficient gross profit ratio
The Ratio measures the relationship between net profit and net sales
of the firms obtained through divided by the net profit by net sales. It indicates the
proportion of the net profit after deducting all the expenses including tax
22023680 8586767
780138569 555353785
=2.8230472 =1.5461796
Sundry
Debtor X 360 Sundry Debtor X 360
Total sales Total sales
[4] CURRENT
RATIO
408748714 295483632
195715110 132032996
2.0884883 2.2379529
The current asset ratio measures the short term solvency of the firm.
In a sound business the current ratio is considered ideal as a one. If currentratio is
lower than short term solvency of the firm is not in a position to meet its current
liablity in time.
In Amul Industries Pvt. Ltd. The current ratio is higher thanthe standard
ratio
Fixed assets are the tangible assets, which cannot be turned into cash on short period
of time. Management of fixed assets is the most important decision in the field of
finance for any organization and especially in cement industry, which has its most of
investment in fixed assets.
Building 39151122.17
Land 2943086.10
Vehicle 5209067.77
Capitalization refers to the decision regarding the total requirements of the long term
funds. Any imbalance between realization value of assets and total capitalization i.e.
long term funds results is over or under capitalization.
Over Capitalization:
Over capitalization means real value of shares is higher than book value. It occurs
when the realizable assets are less than the long term funds of the company.
Under Capitalization:
Under capitalization occurs when the real value of the shares is less than the book
value. It occurs when realizable values of assets are more than the long term fund of
the company.
AMUL is under capitalization this reflect the progressive and healthy stock of the
company.
Management of Receivables:
In the present period of the competitive market to increase sales to meet competition it
has become necessary to provide credit facility but it is also essential to receive the
bills as speedily as possible.
Management of Inventories:
My visit to AMUL Industries Pvt. Ltd. has become the one memorable thing and as
well as useful also .I never forget it and I really feels that AMUL Industries Pvt. Ltd. is
the NO.-1 Connecting rod manufacturing company in India. This training helps me a
lot to get the practical knowledge of the organization. Every people peon to manager
helps me to know me to know the company and also help in prepare the project. It was
a nice experience and I never forgot it.
BIBLIOGRAPHY
A. Reference Books:
1. www.amulind.com
2. www.google.com
3. www.chacha.com
4. www.mahalo.com