AN

INDUSTRIAL TRAINING REPORT

UNDERTAKEN AT

SAURASHTRA CEMENT LIMITED

RANAVAV.

1
 PERSONAL INFORMATION

NAME : MAULIK H. JOSHI

CLASS : M.B.A.
SUBJECT : INDUSTRIAL
TRAINING REPORT
COLLEGE : SHRI. H.N.SHUKLA COLLEGE
ROLL NO. : 20
ACADEMIC YEAR : 2005-06
COMPANY VISITED : SAURASHTRA
CEMENT LIMITED
RANAVAV.
GUIDED BY : PROF. ALPESH SHAH

2
 PREFACE

M.B.A. faculty is unique in itself. It satisfies almost all the

requirements which are necessary for the successful handling of any
business. While designing the syllabus of our M.B.A faculty the designer
kept in mind the purpose of making students efficient in every aspects of
the management. For this purpose industrial visit and its report making is
included in our syllabus.

The theoretical knowledge regarding business management can be

gained in the classroom. But practical knowledge is not accessible in the
classroom. For this purpose of practical training I visited the unit
“Saurashtra Cement limited”.

To the best information of my efforts to cover as much fresh

information available to prepare this project report with a very careful
study, I tried my best to highlight and include all kinds of information,
which is possible.

3
 ACKNOWLEDGEMENT

In reference with practical training, I would like to express my sense

of gratitude to the management of Saurashtra cement limited. For giving
me this training opportunity for the days in its company.

I am particularly grateful to the principal Incharge of our college

Mr. Advani Nilesh and deep appraisal to M. B.A Incharge Mr. Alpesh
Shah for allowing and giving me valuable guidance concerning with
project report.

I also express my due thanks to Mr. G.M. Trivedi. Mr. Pankaj Vaja,
Mr. Siddharth Solanki and to the management of SCL for giving me all the
information.

Again I sincerely thanks to all who directly or indirectly contributed

to my in my report construction.

Place: - Porbandar
Date: -

Yours Faithfully,

(Maulik H. Joshi)

4
 INDEX

Sr. No. PARTICULARS PAGE NO.

1. GENERAL INFORMATION 6

2. PERSONNEL DEPARTMENT 20

3. PRODUCTION DEPARTMENT 37

4. MARKETING DEPARTMENT 50

5. FINANCE DEPARTMENT 63

6. RESEARCH METHODOLOGY 81

7. FUTURE PLAN 84

8. CONCLUSION 86

9. BIBLIOGRAPHY 88

5
6
 CONTENT
Sr. No. Particular Page No.

1. INTRODUCTION ABOUT
CEMENT INDUSTRY 8

2. INTRODUCTION ABOUT UNIT 9

3. HISTORY & DEVELOPMENT

OF THE UNIT 10
4. LOCATION FACTOS OF THE UNIT 12

5. MANAGING BODY OF THE UNIT 14

6. SIZE OF THE UNIT 15

7. FORM OF ORGANISATION 15

8. ORGANISATION CHART 16

9. TIME KEEPING SYSTEM OF

THE UNIT 17

10. SAURASHTRA CEMENT AT A GLANCE 18

7
 1-INTRODUCTION ABOUT CEMENT
INDUSTRY

Cement is the basic raw material for all construction activities.

Cement plays vital role in manufacturing buildings, factory etc. today
cement graph goes up and up because now a days growth and development
activities doing more efficiently. The INDIAN CEMENT INDUSTRY is
the second largest in the world after china.

“Cement may be defined as a mixture of clinker, gypsum and other

material that is used in construction”. The Indian cement industry plays a
key role in the national economy in India there are more than 55 cement
industries producing 111 million tons of cement out of 108 million tons of
cement are consumed in India and 3 million tons are exported. In India
total investments of the cement industries s about 25 crores and 153
thousand people are employee because of cement industries. The
‘Ultratech’ (L & T) cement is the leading cement industry in India.

Today the use of cement has become so inseparably connected with

the social, economic and industrial fabric o a country, can your imagine
the world without cement?

8
 2-INTRODUCTION ABOUT UNIT

SAURASHTRA CEMENT LIMITED was produced by Mehta

group is one of the leading players in the Indian cement industry. SCL
manufactures ordinary and pozzolano port land cement. HATHHI
CEMENT is the brand of itself over the decades as a “choice of every
generation for its strength and durability” it is situated at Ranavav near
Railway Station.

SCL exports its product i.e. clinker and cement in many foreign
countries. For this purpose SCL produces high strength cement. The major
strength of SCL in its brand name and strong quality.

Today SCL is the best cement plant in the world with compare to
the large scale modernization and expansion SCL has got award of ISO
9002 system. By its product quality, SCL enables term foreign exchange.

9
 3-HISTORY & DEVELOPMENT OF THE
UNIT

HISTORY

Each and every business unit running from its own sweet and
memorable history. The word history means past performance of the
company.

At 11th June 1956 shri Nanji Kalidas Mehta give birth to the
Saurashtra cement limited. Obtained license at 9th January 1957
establishment under the company’s Act 1956. Production was started in
1959.

Previously eldest sons of late Shri Nanji Kalidas Mehta &

Khimjibhai Mehta managed the company. But in 1983 the management
was taken over by shri Mehandrabhai Mehta the youngest son of late Shri
Nanji Kalidas Mehta.

The SCL has certified for ISO 9002 from TUV Government. The
government of India has recognized the company as an export house.

10
DEVELOPMENT

Development is very important thing for any unit when

company starts it may face some problems but when problems are solved
company goes toward development.

The company starts its production in 1959, with installed capacity of

600 tons per day. As the high demand of cement SCL had increased their
installed capacity. Today company’s installed capacity is 4200 tons per
day.

Today unit is having turn over of cement more that 200 crores. Due
to increase in productivity effective marketing and quality control.

11
 4-LOCATION FACTORS OF THE UNIT

Location is so much important for any business unit. Its plays vital
role in development of unit promoters who produce any business unit must
fixed a location where raw material, power supply, labour, transportation
facility and government allowed area is available.

SCL is established at Ranavav because of the following factors

1. Availability of Raw Material

Raw material is the basis produces any product so raw

materials are most noticeable factor for location. SCL gets its raw material
from nearly areas of Porbandar District. So SCL gets its raw material
easily, fast and with large quantity.

2. Availability of Labour

The labour factor is so much important for location. SCL gets

sufficient labours educated, skilled unskilled labours because of SCL
located at near of Porbandar city so SCL has never face any difficulty for
the labours.

12
3. Transportation Facility

To carry goods from one region to another transport facility

must be needed. SCL’s location is suitable because roadways of the
Gujarat and by water ways of about from Porbandar port. So SCL have not
face any problem of SCL.

4. Availability of Electricity

Any business unit not runs without electricity. SCL purchases

electricity from GEB and company has also his DG set (Diesel Generator)
so electricity is not problem of SCL.

5. Government Support

The government policy of Gujarat is good and favorable.

Government provides schemes for development and promoting the
industries. Situated in Gujarat state Government also provides short term,
long term financial loans.

13
 5-MANAGING BODY

BOARD OF DIRECTORS
NAME DESIGNATION

Mr. M.N.Mehta Chairman

Mr. D.N.Mehta Dy. Chairman
Mr. Jay Mehta Exct. Vice Chairman
Mr. H.D.Mehta Director
Mr. M.N.Rao Director
Mr. S.U.S.Raghavan Director
Mr. Savita V. Pitte Director
Mr. Stephen Potter J.F.D.C.,Denmark
Nominne
Mr. Fring Frodse FC Smidth & Co.
A/s Denmark.
Mr. M.K.Charduke IFCI, Nominnee
Mr. S.Ramjee UTI, Nominnee
Mr. M.S.Gilotra Managing Director
Mr. R.K.Poddar Dy. Managing Director

14
 6-SIZE OF THE UNIT

In the consideration of the size of the unit there are three tools

1. Large scale industry

2. Medium scale industry
3. Small scale industry

At the birth SCL is large scale industry. The industry which is

having share capital more than Rs. 5 crore is the large scale industry. The
675 persons work in this factor

7-FORM OF ORGANISATION

There are so many forms of business organisation SCL is itself a

“public company. The company is only indirectly defined in the act sec 3
(I) (iv) states “public company means a company which is not a private
company”.

The company having a line and staff organisation

15
 8-ORGANIZATION CHART

SHARE HOLDER

v.p common v.p. finance v.p. operating v.p mark

Sr. Manager Sr. Manager Sr. Manager Sr. Manager

Dg. Manager Dg. Manager Dg. Manager Dg. Manager

As. Manager As. Manager As. Manager As. Manager

Person Accountist worker & labour sales pres.

Officer

Here
V.P. : - Vice President
Sr. : - Senior
D.G. : - Deputy General
As. : - Assistant

16
 9-TIME KEEPING SYSTEM OF THE
UNIT

Time keeping system is important function for any business unit.

The government rule says that every employee must work 8 hours not
more than 8 hours in a day.

So far as SCL is concerned it has a continues process i.e. it carries

24 hours unbroken manufacturing process. it must arrange big timing
system SCL time keeping system is classified into two parts.

Shifts Time
First shift 4:00 am to 12:00 pm
Second shift 12:00 pm to 8:00 pm
Third shift 8:00 pm to 4:00 am

During these workers get half an hour as a recess.

Time keeping for white collar Employee

For white collar employees of the manager levels company arranged

general shift
General shift : - 8:00 am to 5 pm

During this period white colloar employees get an hour as a recess.

17
 10-SAURASHTRA CEMENT LTD AT A
GLANCE

1. Registered office: - Saurashtra cement limited

near Railway station
Ranavav- 360550
Dist. Porbandar
Gujarat (India)

2. Corporate office: - Agrima Business centre

N.K. Mehta international
178 Backbuy reclumination
Mumbai – 400020.

3. Marketing office: - Pelican Building

7th floor
Nr. Gujarat chamber
Ashram road,
Ahemedabad – 380009

4. Auditors: - M/s. Bansi & Mehta company

Chartered Accountant

5. Bankers: - Central Bank of India

Dena Bank
Vijya Bank

18
 The Saurashtra cooperative Bank
Industrial Bank limited
Rajkot Nagrik Sahkari Bank

6. Name of Product Ordinary portland cement [opc]

53 grade cement
43 grade cement
33 grade cement
portland slag cement [PSC]
pozzolana portland [PPC]
sulphate portland [SRC]

7. Sister concern: - Gujarat siddhi cement ltd

Veraval.

8. Website: - www.Mehtagroup.com

9. No. of employees: - 675 employees

581 skilled, 94 unskilled

10. Share Department : - N.K. Mehta international house

5th floor, 178, Back bay
reclamation

11. size of the unit: - large scale unit.

19
20
 CONTENT
Sr. No. Particular Page No.

1. INTRODUCTION 22
2. ORGANISATION CHART 23
3. TRAINING & DEVELOPMENT 24
4. WAGES & SALARY
ADMINISTRATION 26
5. BONUS PROMOTION &
TRANSFER POLICY 27
6. RECRUITMENT, SELECTION &
INTRODUCTION 28
7. WORKERS BENEFITS & FACILITIES 31
8. OVERTIME PAYMENT TO
THE WORKERS 32
9. PERSONAL RECORDS 33
10. KAIZEN SCHEME 34
11. TRADE MARK 34
12. SAFETY OF WORKERS 35
13. SOCIAL RESPONSIBILITIES 36

21
 1-INTRODUCTION

In any business unit personal department must be because of

personal department is the heart of any business unit. Without this the
business can’t run.

The personal department is related with human beings. Personal

department has taken care of his employees. If employees and workers are
happy the production goes up and up. Today man power contribution for
any business unit is so useful for smooth and long run.

Personal department is also concerned with attaining of maximum

individual development, good working relationship between employees
and getting maximum efficiently of employees toward the working
organisation.

The main function of personal department is to appoint trained,

develop, motivate and compensate the employees of an organisation.

22
 2-ORGANISATION CHART

Managing Director

Director commercial

DY. Manager

L.W.O. Per. Off Law. Off T&D . off Man (adm)

Time ke Traince AL.O ASS Transect

Clerk Clerk Clerk

Typist
Here
Per. Off: - Personal Officer
Off : - Officer
T&D:- Training & Development
Man: - Manager
Admt: - Administrative
Ko: - Keeper
A.L.O: - Assistant Law Officer
Tra.Sec: - Transporting Security.

3-TRAINING & DEVELOPMENT

23
TRAININIG

Training is defined as the act of increasing the knowledge and skill

of an employee for doing a particular job. Training provides awareness of
rules and regulations, the ways of performing given task effectively and
prepares the employees improve the job performance.

SCL gives training to their employees. There are two principal

methods use by SCL.
C I : - on he job training method
C ii: - off the job training method

C (I) On the Job Training Method

Numerous training methods can be used while the man is engaged in

the process of productive work on the job training methods are suitable for
all levels of personal. On the job training methods new selected candidate
start his work without any performances.

As SCL cement it is labour oriented industry training given by job

trained method. The new workship has given training on the job under the
direct supervision of supervisor.

(ii) Off the Job Training

in this method trainer leave their work place and devote their
entire time to the development objective.

24
 The company uses the methods like lectures. Audiovisual
conferences, discussion, case study, role playing etc.

DEVELOPMENT

Development of employees mains those types of activities which are

help in future for developing they are doing this activities to the potential
from workers.

Periodically SCL workers meetings and invite professional experts

as well as experts of the similar company to express their opinions and
suggestions.

In SCL, the company does provide better and professional

management, development sources of all those levels of staff members.

25
 4-WAGES & SALARY
ADMINISTRATION

Today each and every person doing his work to get some return and
here that gets returns in the medium of money. Money is one of the
powerful motivations behind all activities. The term ‘wage’ is defined as
the remuneration paid to production and maintenance. The term ‘salary’ is
defined as the remuneration paid to the clerical and managerial personnel
employees on monthly or annual basis.

SCL pays salaries to 45 managers 48 supervisors and 365 workmen

and it pays wages to contractual labour. They pay wages according to all
India cement wage board and wages act. Cement wage board and wages
act. SCL pays salaries on 7th day of the month while wage payment is not
fixed they keep a record of absence and present of employees by punching
system. Time keeping office prepares this record.

26
 5-BONUS, PROMOTION & TRANSFER
POLICY

BONUS
Bonus is the extract payment to the employees for the better earning
of profit of company.
In Saurashtra cement limited bonus is given once a year. They pay
bonus unto 5000 to their employee.

PROMOTION POLICY
Promotion means go up or goes one step more than others with more
responsibilities and more no. of hour working and taking extra facilities.
SCL gives promotion on the basis of seniority, ability and
educational qualification, experience and also on the merits of the
employee. Thus SCL mainly promotes on the basis of Job knowledge and
skills of employees.
TRANSFER POLICY
Transfer means change in job but which job is provide is
subsequently equal to first one means plant and position salary, status
responsibilities are same

In SCL transfer are in lower level for solving his problem for
transfer his shifts and went to another shift. There is doing internal
transfer. But when company finds well knowledge persons who are
wrongly place then it transfers that employee to his knowledge
department.

27
 6-RECRUITMENT, SELECTION AND
INTRODUCTION

RECRUITMENT

Recruitment is the first step in the employment process which aims

at developed and maintaining sufficient manpower resources upon which
the organisation can depend when it needs additional employees.
Recruitment has regarded as important function of the personal
management.

There are mainly two type of recruitment sources.

1. Internal sources
2. External sources

Internal sources: -

Internal sources means whenever a company needs employee for

any post they promotes, transfers or demand. SCL either promotes
existing employee or from their relatives.

28
External Sources

External sources of recruitment means if company has vacancy

needed from out side than company gives advertisement in daily
newspaper, both in English or well as in Gujarati. Also it used the website
of their own. The SCL is widely used external sources.

SELECTION

When company gives advertisement for vacancy. They are many

applications comes from large numbers of people. At that time selection is
needed. So selection means to pick a right persons for job from number of
the peoples.

There are so many techniques to select the employee. Selection

process of SCL is as follows: -

(i) Written Test

With the help of written test we can know practical and

general knowledge of employees. SCL takes written test only for managers
and engineers. For officers it is not required.

29
(ii) Interview

Interview is a process between person to person means

employees and candidate with the help of interview one can get more
information about the candidate, after they decide some of are successful
and some of are unsuccessful.

(iii) Physical Examination

Candidates who are appointed from all above test after this
tests. that person must give medical examination. This is very important
because if a person having poor health he can not work efficiently and the
investment on him may go waste. As concerned to SCL it conducts
medical check up to see the person is medically suited or not.

INDUCTION

Induction is welcoming process of new employees. When a new

employer comes in the organisation the organisation arranged induction.
Make him to feel like home and generate him that his performance in the
company is significant. In SCL induction process is for 15 to 20 days and
the personal officer gives all details about organisation.

30
 7-WORKS BENEFITS & FACILITIES

Saurashtra cement limited provides following facilities and benefits

to their employees.

1. Housing facility
2. Medical facility
3. Travailing and transport facility
4. Canteen facility
5. Creational and entertainment facility
6. Death relief fund

Other facilities

1. SCL provides grays gratuity scheme for the employees

2. SCL provides provident fund scheme for the employees
3. SCL provides uniform, shoes, goggles and cap to its employees for
safety
4. SCL provides leave facility to its employees
5. SCL provides parking facility
6. SCL provides facility to withdraw amount in advance by the
employees as per their post and standard of wages.
7. Whenever company achieve it’s predetermine goal very effectively
management declare bonus to their employees as an additional.

31
 8-OVERTIME PAYMENT TO THE
WORKERS

Overtime payment is admissible to wage board workers only. The

overtime payment are made at double the normal rate on the basis of
overtime memo received is from the various department and as per the
duty approved by the concerned department heads.

No overtime is paid to manger level persons.

“According to bonus act o 1956 on organization has to pay bonus at

the end of 5 years of its operations.

Saurashtra cement limited pays double of basis salary to workers.

32
 9-PERSONAL RECORDS

Personal department must be record all the information about the

employees which are working in unit.

Personal record is systematically record of performance made by

employees. It is helpful in job analysis and promotion policy.

Saurashtra cement limited performs this function by keeping

separate file for each and every employee in which details regarding life
i.e. age, sex, date of birth, marriage, children, etc and details about Job
regarding job as date of recruitment, Experience, educational qualification,
leaves, health and safety, disciplined industrial disciplined etc. are clearly
recorded with a view to determine how to compensate the work.

33
 10-KAIZEN SCHEME

To invite various ideas of the employees SCL has developed a

totally new scheme i.e. Kaizen Scheme.

Rules & Regulation of Kaizen Scheme

1. Kaizen scheme was received I the month of January 2003.
2. Under this scheme various ideas are invited from the
employees addressing any are they deem fit
3. The suggestions as well as the coordinators not only get cash
rewards for good ideas but also get to implement their own
ideas once it gets approved by the management

11-TRADE UNION

A trade union is the combination of persons, whether temporary or

permanent preliminary for the purpose of regulation the relations between
workers and employees or between workers and workers.

Now a day there are hardly industries that consist no trade union. As
Saurashtra cements limited has 675 no. of workers and it is very difficult
to manage then at to satisfy their needs. If any problems arise in the
organisation there are two trade union namely Saurashtra kamdar union
and cement sarmic sangh they both are registered and connected with
INTUV.

34
 12-SAFETY OF WORKERS.

In simple terms, ‘safety’ means freedom from the occurrence or risk

of injury or loss. Industrial safety or employee safety refers to the
protection of the workers from the danger of life, damage of property, loss
of production, loss of man hours and loss of workers, employees and to the
nation. Thus to prevent the accident the need of safety is felt.

Safety is primarily the responsibility of the management to control

the number of accidents SCL becomes more conscious about safety
programs for its employees in which they provide training to them for
safety.

In the celebration of safety week the company put many slogans and
poems for safety one of them are as follows: -

“SAFETY IS A FOUNDATION OF
HEALTH AND WEALTH”

35
 13-SOCIAL RESPONSIBILITIES

Every business unit has to perform some social responsibilities

towards the society. The organisation doing noise pollution, air pollution,
garbage and many other disadvantages of organisation. Society of the
location accept all these things so organisation must have follow some
social responsibilities.

SCL provides following facilities: -

1 They help to control the air pollution by keeping bag house scheme
2 They make the area green by growing trees.
3 They provide employment to thousands of peoples.
4 They allow students to get his industrial training
5 They sponsor tournaments, events etc.

36
37
 CONTENT
Sr. No. Particular Page No.

1. INTRODUCTION 39

2. ORGANISATON CHART 40

3. NUMBERS OF THE PRODUCT 41

4. RAW MATERIALS AND OTHER

SOURCES OF MANUFACTURE 42

5. MAIN MACHINERIES 44

6. PRODUCITON PROCESS 45

7. QUALITY CONTROL 48

8. POLLUTION CONTROL 49

38
 1-INTRODUCTION

The production function of a business is concerned with the creation

of a product or services required to satisfy customer’s needs, wants and
desires. Production means creation of utilities and covers al the activities
of procurement, allocation labour, energy, materials, equipments,
machinery etc.

Production department is one of the most important parts of an

enterprise which is responsible for the actual transportation of materials
into finished products. It deals with many machine, organisation to
accomplish both productivity and satisfaction the desirable and results.

Thus, ‘PRODUCTION’ means to produce goods in required quality

at the required time and with the required quality in the most economic
manner.

39
 2-ORGANISTION CHART

Vice President

Sales Manager Sales & Advrts.

Manager

Deputy Manager Senior Executive

Area Sales Manager Sales Representative

Regional Manager Sales Man

Head Clerks

Dispatch Clerks

40
 3-TYPES OF PROCUCT

Each and every business unit may manufacture some type of

product. As concerned to SCL it manufactures only one product i.e. port
land cement, SCL provides high strength cement for exporting.

The numbers of the product manufactured by SCL are as follows

Types of product As per

1. Ordinary Portland Cement

53 Grade I.S. 12269 : 1987

43 Grade I.S. 8112 : 1889
33 Grade I.S. 269 : 1989

2. Pozzoland Portland Cement – 53 P Is

14889 (Part 1) : 1991

3. Portland Slag Cement -- I.S. 465 : 1989

4. Sulphate resisting port land cement

I.S. 12330 : 1988

41
 4-RAW MATERIALS AND OTHER
SOURCES OF MANUFACTURER

‘RAW MATERIAL’ is the foundation for manufacture a product.

Raw material is starting point so raw material is must be required to
produce a final product. SCL used various types of raw materials.

1. LIMESTONE
2. MARL
3. IRON ORE
4. SAND STONE
5. GYPSUM -- a MARINE
b CHEMICAL
c PITO

To provide a best quality product best quality of raw material with

large stock must be needed. SCL gets his raw material from following
places.
1. LIMESTONE
SCL ADITYANA MINES
2. MARL
SCL ADITYANA MINES
3. IRON ORE
BANGANAGA MINERALS
SHAHPUR, RAJASTHAN

4. SAND STONE

42
 SUNHEM MINERALS
CHOTILA

5. GYPSUM

a. MARINE
GANDHIGHAN, MORI, BHAVNAGAR, NAVLAKHI
1. SH. NATHJI TRADE CO. PBR
2. TATA CHEM, MITHAPUR

b. CHEMICAL

THAN, MORBI, KADI

1. SH. HARSIDDHI TRADE CO. PBR
2. MUNJAR ENTERPRISE PBR.

PHOSPHO
G.S.F.C.

c. COAL IMPORTED
SOUTH AFRICA

1. Esteco coal sup, Mumbai

2. M/s Glencore India, Mumbai,
3. APR Coal & Energy
4. Comtoir Balland, Geneva

5-MAIN MACHINERY

43
 Crusher
 Stacker
 Recliner
 Raw mill
 Blending silo
 Pre heater
 Clinerisation
 Coal mill
 Cooler
 Cement mill
 Packer
 Pre kilan

44
 6-PRODUCTION PROCESS

For the production Process Company has adopted dry process.

Following is the production process of cement of Saurashtra cement
limited.

1. Raw material Input: -

The main raw material i.e. line stone and marl fed into the
crusher by the dumper. This raw material input before laboratory test.

2. Crusher

Lime stone and marl are fed into the crusher at where they are
transferred into crushed. Now the crusher material is taken to the stacker
by mean of belt.

3. Sacker

This sacker makes stock pile for pre building whole sample of
limestone and marl are taken our every five minutes for determine and
correlation of material.

4. Recliner

Raw material of limestone and marl are reclaimed for the

stockpiles by recliner which collect the raw material through the cross
action.

45
5. Raw mill

Lime stone sweetener and additive like sand stone and literate
are fed into raw mill by feeders in which quantity are mixed.

6. Blending slid

Now the material from the raw mill is taken into blending
silo. In this silo material is separated. Separated material is fed in
preheated by plod which gives correct weight of fuel.

7. Pre heater

The raw material enter into pre heater from blending silo in
the first stage in the first stage the material travel from work because of
gravity and gain temperature approximately 800 to 900 degree Celsius at
the last stage calciner fuel is introduce.

46
8. Clinkerisation

Raw material coming from the pre heater and kiln, which
rotates at very, slow speed and power call is fixed from the other hand.

9. Cooler

The raw material coming from clinerisation the temperature

of this is round about 1400 to 1300 degree celsius in the cooler clinker is
got cool.

10. Cement Mill

The material which is cooled now in cement mill 4% to 6% of

gypsum is added in it, then it comes in grinding mill at there the clinker
with gypsum is grinded and finish product comes out.

11. Packer

The cement is automatically packed in 50 kgs plastic bag in

packer machine. There are four packer machine each packer has capacity
to pack 1400 plastic bag of 50 kgs.

47
 7-QUANLITY CONTROL

Quality control is an essential part of producing the best quality of

the product. Most of the customers prefer the quality of the product. The
customers never accept any fluctuations in the quality of the product. If the
quality of the product is not as per the requirements, it is very necessary to
control the quality of the product.

SCL is producing cement and to check its quality after it is being

produced is very difficult as it takes 28 days to show its strength. Quality
control department has developed a special technique to solve this
problem. So they stated the backward process i.e. to manufacture particular
quality of cement, particular quality of raw material and process is needed
so they start checking quality of raw materials are checked by the quality
& control department.

The SCL follows the easy method to control the quality of cement.

To check the water pollution by dissolving of chemicals, some

chemicals may be mixed with the water so that the water may be used of
drinking or industrial use.

Land Degradation

When the land is being damaged by mining, it is to be

reclaimed and forestation is to be done so that environment balance may
be restored

48
 8-POLLUTION CONTROL

Every business unit which are doing large production. It must

create pollution so SCL also creating pollution in nature. They can control
this pollution by following ways.

To control Air Pollution

The air pollution can be controlled by making the use of

explosive, various types of fuels. The smoke and dust coming out of
chimneys can be controlled by using recycling plant, installation of dust
collector etc.

To control Water Pollution

To control water pollution they should not allow the bathing

and washing of clothes near the water storage. They should also take care
that garbage and waste is also not being dumped inside the water.

49
50
 CONTENT

Sr. No. Particular Page No.

1. INTRODUCTION 52

2. ORGANISATION CHART OF
THE MARKETING DEPARTMENT 53

3. PRODUCT PLANNING 54

4. MARKET SEGMENTATION 54

5. PRICING POLICY 57

6. CHANNELS OF DISTRIBUTION 58

7. SALES PROMOTION 59

8. MARKETING RESEARCH 60

9. COMPETITORS 61

10. ADVERTISING 62

51
 1-INTRODUCTION

Today in this competitive market one can not sale its product
without marketing. “Marketing is a human activity directed at satisfying
needs and wants through exchange process”. Described by Phillip Kotler.
Marketing involves the activity like planning, pricing, determination,
advertisement etc.

Marketing department plays a vital role in the organisation.

Marketing management represents and important functional area of
business management efforts for the flow of goods and services from the
producers to the consumers.

Some one has rightly said “Nothing happen in our economy until.
Somebody sales something”

In this competitive market each firm tries to increase sales volume

and market reputation by providing consumer satisfaction and qualitative
products.

52
 2-ORGANIZATION CHART OF THE
MARKETING DEPARTMENT

The organization chart of the marketing department is as follow: -

Marketing Department

Vice president

Senior manager Sales & Adv. Manager

Deputy Manager Senior Executive

Area Sells Manager Sales representatives

Regional Manager Salesman

Head clerk

Dispath Clerk

53
 3-PRODUCT PLANNING

Product planning means to think about present market of the

product and from that deciding about future and takes decision about the
types of product, quality of product. Quality of product designs of product
etc. the present market of competitors. In every business we can see the
cutthroat competition to satisfy the consumer company has to do
something new or different to his product.

In SCL, product planning is done keeping in view the demand as

well as supply factors.

If the company finds that the demand for cement is increasing than
automatically it increases the production and vice versa. However there are
so many other factors which are also considered while planning the
product like availability of raw material, availability of manpower,
electricity etc.

54
 4-MARKET SEGMENTATION

Market segmentation represents an important recent advancement

on marketing thinking and strategy. The modern marketing is consumer
oriented. So producer must know which are not alike, customers are differ
in their wants, purchasing power, geographic locations, buying attitudes,
tastes, habits nature, interest etc. so al the needs of a consumer cannot be
satisfied with the same product. Such selection of subjects as a
homogeneous group is called market segmentation.

As concern to SCL, the customers who require cement in bulk

quantity can buy Hathi Cement and those who want cement in small
quantity can have Chottu Hathi Cement available in kg, 5 kg, and 10 kg.
Packs. Generally, builders use Hathi Cement but sometimes small packs
are also required for repairs so they can go for Chottu Hathi.

SCL has segmented its market as per the quantity of the cement in
the following way

55
 As per the quantity of the cement

HATHI CEMENT CHOTTU HATHI CEMENT

For constructions for repairs & small uses
Cement product
Manufactures, bulk buyers

Market of SCL is also segmented according to demand

Market Sh. Segmentation

50% Government of India

30% Export Market
20% Scattered Market

56
 5-PRICING POLICY

Price means the value of the product in terms of money. Some times
price is the dependable factor for the success of the product of failure. It is
difficult to sale a product with high price and if product is said at low
prices it will affect the profitability, more over the main objective of the
firm, that is to earn a profit very much depends upon the correct price
decision.

The SCL has followed such a pricing policy, which can promote the
scales considerably while fixing the right price the company takes into
account cost of production. Prevailing market trend pricing policy of
competitors etc.

SCL has adopted flexible and reasonable pricing policy. At the end
of every month, directors of each zone, marketing officers meet together at
the marketing office. They check the suitability of the current price in the
right of current degree of competitors, changes in demand advertising and
other services etc. then thy fix up their product price.

57
 6-CHANNELS OF DISTRIBUTION

Channel of distribution means the proper way through which the

goods & services can reach to customer. In this channel-authorized dealer,
retailer, wholesaler, distributors, stockiest etc are included.

In the SCL channel of distribution is very short and simple. The

channel of distribution can be understand by the following.

Company

Distributors/Stockiest/Dealer

Sub Dealers

Customers

58
 7-SALES PROMOTION

The meaning of sales promotion is clear from name itself sales

promotion means to increase or to promote the sales.

In this competitive market sales promotion is necessary for boosting

up the sales and contribution more in market share. In sales promotion
customer is attracts by some special incentive like advertising and
publicity, personal salesmanship etc.

Company promotes the sales at two levels, which are as follows: -

(i) At Dealer level: -

At this level to promote the sales company gives many incentives
they give the target of selling to the dealer for this they give some gifts.
They also organize the meeting of dealer to increase the sales.

(ii) At Customer Level: -

Customer is important for any business SCL issues some scheme,
gifts and other incentives to attract the customers, SCL knows very well
their consumer to get the retailer market recently they introduced “Chottu
Hathi Cement” in packing of 3 or 5 kgs.

59
 8-MARKET RESEARCH

The American marketing Association has defined marketing

research as “The gathering recording and analyzing of all facts about
problem relating to the transfer and sale of goods and services from
producers to consumers”. Marketing research involves a study of
consumer performances, habits and attitudes. It helps us to decide how
market operations should be directed. It also involves an examination of
trends, so that its findings indicate, the future pattern of the market and
assist in shaping marketing policies.

In SCL, regular survey of dealers and customers are done to identity

the need and expectation of the customer to mark positive and negative
points of their marketing strategies and products. By this way, company
comes to know about the marketing problems and remedies of it.

60
 9-COMPETITORS

In the world of today, there is a competition in each and every

business. Hence, the firm first objective is not to make profit but to survive
in the market. Competitors are those who sell the goods and service of the
same and similar description in the same market.

According to Philip Kotler “The best way for a company to grasp

the full range of its competitors is to take the view point of buyer, what
does a buyer think about that which eventually leads to purchasing
something.

Main competitors of SCL is as follows: -

1. GUJARAT AMBUJA CEMENT

2. ADITYA BIRLA’S KAMAL CEMENT
3. L & T CEMENT
4. TATA SUCH CEMENT

61
 10-ADVERTISING

The American marketing Association has defined advertising as “

any paid form of non personal presentation and promotion of goods,
services or ideas by an identified sponsor”

SCL advertise their product by the means like newspaper, wall

paints, and hoarding etc. with effective slogans, to stand first in the market
and increase popularity SCL has adopted many advertising media.
SCL advertise by distributing gifts to masons, contractors etc. i.e.
actual users of cement.

SCL celebrate THE HATHI UTSAV on the festivals like Navratri.

Company distributes audiocassettes of Ras Garba free of cost and in that
cassettes slogans are also recorded for advertisement.
SCL uses so many other advertising media also

1. Newspapers
2. Magazines
3. Radio
4. Wall Paintings
5. Hoardings
6. Audio Visual Advertisement
7. Gift Articles
8. Posters

62
63
 CONTENT
Sr. No. Particular Page No.

1. INTRODUCTION 65

2. ORGANSISATION STRUCTURE 66

3. FINANCIAL PLANNING 67

4. CAPITAL STRUCTURE 68

5. RATIO ANALYSIS 69

6. MANAGEMENT OF FIXED ASSETS 75

7. MANAGEMENTOF WORKING
CAPITAL 77

8. LEVERAGE ANALYSIS 78

9. PROFITABILITY & DIVIDING 80

DISTRIBUTION

64
 1-INTRODUCTION

Finance department is very important part for every organisation.

Success of any business depend upon the finance. It we say is the business
is the body then finance would be blood. As the blood is required to live a
body then to run the business finance plays important role.

Someone rightly defines “if you have money, and you manage it
properly, you will make more money” this means management is
necessary for any industry.

In economic activity finance is essential part. Finance management

is concerned with controlling and planning of the firms financial resources.
According to Joseph and Massie, “financial management is the operational
activity of a business that is responsible for obtaining and effectively
utilizing the funds necessary for efficient operations.

So we can say that finance is the central point of any organisation.

65
 2-ORGANISATION STRUCTURE

SCL has kept separate department of finance. The organisation chart

of finance department of SCL is as follows: -

Vice President (finance)

General Manager (finance & A/c)

Dy. General Manager (finance & A/c)

Sr. Manager (Accountant)

As. Manager Sr. Officer Dy. Manager

(Finance) (Costing) (Finance)

Sr. Officer Gr. Officer Cashier

(Finance) (Costing)

Ass. Officer Ass. Officer

66
 3-FINANCIAL PLANNING

Financial planning is very necessary for smooth running of business.

Business small or large cannot be carried on successfully without proper
arrangement of capital in the finance planning not only the planning is
done for spent of money but also planning is made for sources of finance
and fund. In all the organisation finance planning policies of finance,
delegation of finance are planned.
SCL plans finance as follows
1. Determining Financial Objectives
SCL firstly determines for how long period the finance is requiring
i.e. for short term of long term objectives. By considering the financial
objective, SCL makes a determined effort to arrange the necessary funds at
proper time, which is necessary for the business.

2. Formulation Financial Policies

After words, SCL formulates financial policies to be followed by the
planners to achieve the financial objectives.

3. Developing Financing Procedure

Developing financial procedure relates to the control and
administrative of financial activities. SCL subdivides financial activities
and delegates authorities to subordinates to perform such activities.
4. Reviewing Financial Plan
SCL reveals plan for time to time in the light of changing economic,
social and business environment.

67
 4-CAPITAL STRUCTURE

Capital structure is the important aspect of the financial

management. Accordingly to Gerstenberg. “The make up of firm’s
capitalization”.

The company procures funds by issuing various types of securities

i.e. ordinary, shares, preference shares, bonus and debentures.

In broader sense, capital structure includes all the long term capital.
It decides the proportion of funds to be raised by issue of ownership
capital i.e. ordinary share capital and preference share capital and the
amount to be raised by borrowings. i.e. debentures, bonds, public deposits
etc. taking into account the cost of capital i.e. (Dividend or interests) and
its impact on income and stability of the company.

Primary duties are original and first hand information. Previous data
means those data, which have to analyze, and second one it means
secondary data are directly analyzed to some extent. Thus, secondary data
are second hand information.

We got information at general data about the company.

Generally even company would by maintaining optimum capital

structure which means an idea combination of borrowed and owned capital
that may attain the marginal goal. I.e. maximum the market value of share
of minimization of cost of capital.

68
SCL framed its capital structure as follows: -

Particulars Amount (in lacs)

Share capital 4,247.26

Reserve & Surplus 8,685.88
Secured loan 26,894.34
Deferred Payment Credits 594.60
Unsecured Loan 244.00

TOTAL 40,665.68

69
 5-RATIO ANALYSIS

Ratio is the measured of relation between two accounting figure.

We can know the financial position of the firm and also the performance
can be measured with the help of the ratios.

Let us know the finance position of the SAURASHTRA CEMENT

LTD.

CURRENT RATIO

Current Ratio = Current Assets / Current liabilities

For the year 2003 = 8556.43 / 15952.44

= 0.536 : 1

For the year 2002 = 8303.61 / 19091.43

= 0.43 : 1

Comment : It is generally between the 2 : 1 ratio shows a

comfortable working capital positions. The current ratio of
SAURASHTRA CEMENT LTD. for 2003 & 2002 is 0.53 & .43
respectively. This indicates that the financial position of the company is
not so good. But the ratio of 2003 is greater than 2002.

70
LIQUID RATIO

Liquid Ratio = Liquid Assets / Liquid Liabilities

Where,

Liquid Assets = Current Assets - Inventories

For the year 2003 = 8556.43 - 2420.35

= 6136.08

For the year 2002 = 8303.61 - 2406.86

= 5896.75

Liquid Liabilities = Current Liabilities - Bank Overdraft

For the year 2003 = 15952.44 - 65.13

= 15887.31

For the year 2002 = 19091.43 - 89.57

= 19001.86

71
Liquid Ratio

For the year 2003 = 6136.08 / 15887.31

= 0.38 : 1

For the year 2002 = 5896.75 / 19001.86

= 0.31 : 1

Comment : Liquid ratio indicates the cash available to meet the

immediate payments. The ideal liquid ratio is 1 : 1. The liquid position of
the SAURASHTRA CEMENT LTD. is not so good but the position in
2003 is better than in 2002.

FIXED ASSETS TURNOVER RATIO

Fixed Assets Turnover Ratio = Sales / Net Fixed Assets

For the year 2003 = 20337.35 / 36962.40

= 0.55 : 1

For the year 2002 = 21845.61 / 41108.61

= 0.53 : 1

72
Comment : This ratio indicates the conversion of fixed assets into sales
during a year. The ratio of SAURSHTRA CEMENT LTD. indicates that
for 1 unit of sales 0.55 unit of fixed assets is consumed in the current year.

WORKING CAPITAL

Working Capital = Net Sales / Net Working Capital

For the year 2003 = 20337.35 / 7396.01

= 2.74 : 1

For the year 2002 = 21845.61 / 10787.82

= 2.02 : 1

Comment : From the above calculation it can be seen that for 1 Rs. of
sales 0.36 Rs. and 0.49 Rs. of working capital is required.

73
DEBT EQUITY RATIO

Debt Equity Ratio = Total Long Term Debt /

Share Holder Funds

For the year 2003 = 20608.53 / 12933.14

= 1.59 : 1

For the year 2002 = 18609.74 / 12645.14

= 1.47 : 1

Comment :The debt equity ratio is determine, how to ascetain the

soundness of the long-term financial policy of the company.

74
 6-MANAGEMENT OF FIXED ASSETS

In all business there are two types of assets one is fixed and other is
current assets. The assets which can be transferred into cash within year,
are called current assets. And assets which cannot be transferred into cash
within year are called fixed assets. As the time passed the values of fixed
assets is described as the company depreciates them. The amount of fixed
assets is very large so they must be invested with well planning and great
thinking. Fixed assets generally, consist of land, building plant &
machinery etc.

SCL maintains proper records showing particulars about

quantitative details and condition of fixed assets. In annual report of SCL
every year creditors give report about the condition and quantitative details
of fixed assets. And whenever auditors found any dissatisfaction about it,
they inform the company and company takes necessary steps to remove
dissatisfactions.

As on 30th June 2004 SCL shows balances of its Fixed assets are as
follows: -

75
Fixed Assets Gross Block Depric Net Block

Freehold land 172.82 -- 172.82

Buildings 1337.42 632.52 1304.86
Leasehold land 21.45 -- 21.45
Jetty- civil work 1781.35 320.55 1460.80
Railway sidings
Weigh bridge 247.71 166.93 80.78
Water supply
Installations 185.08 139.70 45.38
Electric installation 186.50 867.43 947.07
Plant & Machineries 31689.53 14084.32 17605.21
Rolling stack &
Locomotive 61.50 41.53 19.97
Furthur & office
Equipments 161.41 769.45 391.96
Ship, Motorcars &
Trucks 456.01 242.58 213.43

Total 39530.78 16227.89 18725.22

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 7-MANAGEMENT OF WORKING
CAPITAL

If the fixed assets are bond of the company then current assets
would be circulating blood of the company.
Current assets mean the assets, which can easily be transferred into
cash with in the year. In company number of transactions are made i.e.
related with the current assets for example purchasing of raw material,
salary, wages etc.
There are two concept of working capital is as follows.
1. Gross Concept
According to gross concept the firm’s total investment in
current assets.
2. Net Concept
According to net concept excess of current assets over the
liability.

The management of working capital of SCL limited. Is done as

follows: -

1. Inventory Management
In Saurashtra cement ltd. the record of investment is kept
separately. In this record the receipt of inventory, uses of inventory and out
department to control the inventory.
2. Cash & Bank
In SCL, to manage the cash & bank there is to separate
department but this work is done by the finance manager.

77
3. Receivable
Now days credit policy is exit every where. In SCL they also
keep record of credit sales separately.

8-LEVERAGE ANALYSIS

The dictionary meaning of leverage refers to “an increased means

for accomplished some purpose”. Now a days the term leverage has
special meaning. It is used to describe the firms ability to use fixed cost
assets or funds. To magnify their return to its owners. Christy and Roden
define leverage as the tendency for profits to change at a faster rate than
sales.

There are fundamentally two types of leverages.

1. Operating Leverage
2. Financial Leverage

1. Operating Leverage

The operating leverage may be defined as “ as the firm’s

ability to use fixed operating costs to magnify the effects of changes in
sales on its earning before interest and taxes (EBIT). The operating
leverage takes place when a change in sales produces a greater change in
EBIT.

Operating leverage results when changes in value of sales produces

a wide fluctuation in the operating profits of the firm.

78
 The firm is solid high degree of operating leverage when employs a
greater amount of fixed cost and a smaller amount of variable cost. On the
other hand, a firm will have a low operating leverage when it employees a
great amount of variable cost and a smaller amount of fixed costs.

Operating Leverage : - Contribution

EBIT

Degree of Operating leverage: - Percentage change in EBIT

Percentage change in sales

SCL suffers the looses, so it is not possible to calculate operating

leverage.

2. Financial Leverage
Financial leverage results from the presence of fixed financial
changes in the firm’s income statement. These fixed changes are to paid
regardless of the amount of EBIT available to pay them. Financial leverage
is concerned with the effects of changes in EBIT on the earnings available
to equity share holders.
In simple words, the effects on earning by the use of fixed cost
security (Preference SH & Deben) are called financial leverage.

Financial leverage : - EBIT

EBT

Degree of financial leverage : - Percentage change in EPS

Percentage change in EBIT

79
 SCL suffers the losses, so ti is not possible to calculate financial
leverage.

9-PROFITABILITY & DIVIDENT

DISTRIBUTION

The main object of any company or business unit is to earn profit. In

the joint stock company when company makes profit this profit is divided
into the owners i.e. share holders.

In the presence it is not wrong to say that cutthroat competition

prevails in the cement industry. Because government provides various
incentives to the new entrepreneur who is interested to establish cement
industry.

As far as Saurashtra cement ltd. is concerned the plan is old so the

cost of production is very high and because of competition they follow
demand and competition. Pricing policy moreover marketing is not so
good they suffer from the competitive so they are marking loss.

Saurashtra cement ltd. has not made any profit for the last five years
so there is no distribution of dividend.

80
81
 RESEARCH METHOLOGY

Research is the application of human intelligence in systematic

manner to a problem. According to C.A. Moster “ Research includes a
study of human group relationship.
According to P.V. Young, we may be define, research methodology
as scientific undertaking which means of logical and systematized method,
aims to discover new facts or variety old facts and to analyze their
sequence interrelationship case of explanation and natural terms which
govern them.
Research methodology means the way through which a research
progress or a job data collecting goes on. There are so many types of
research methodology. Some of them are as follows: -

Questionnaires
Checklist
Observation
Interview
Record
Participation
Technical conferences
Out of them we prepare the method of questionnaires.

Sources of Data
There are different sources of collection of data. Before deciding the
sources to collect the data, one has to make a proper planning of
investigation and purpose of inquiry. Following are the sources of
collection of then

82
 Sources of Date

Internal sources External source

Primary sources secondary source

Internal Sources
Such type of data’s are always available in the books of organisation
e.g. sales production, salary, wage, dividend profit etc.

External Sources
When the data are collected from the outside the organisation
without the support of records of the company, they are called external
sources. The external sources. The external sources fall into two
categories.

I Primary data
II Secondary data

Primary data are original and first hand information. Primary data
means those data which have to analyze and second one it means
secondary data are already analyzed in some extent. Thus, secondary data
are second hand information.

We got information at general data about the company.

83
84
 FUTURE PLAN

The future plan means the project that will be undertaken in future.
In other words it means the object. I.e. determine now and gets its result in
future.

Now a days the company suffers from the losses. But it does not
mean that there is no chance of future progress.

As we all know that the cement is a basic necessity of and

constructional activity. The need or demand of cement increases day by
day from this angle we may say that SCL would have better prospect in
future. Also SCL exports its products in many foreign countries. It is
considered that SCL enables to earn precious foreign exchange which
makes its future bright.

From seeing the above we can say that company’s future is bright
and its market will increase.

85
86
 CONCLUSION

Conclusion is the final touch or finishing line of the whole report

and for the visitor unit. It was great and memorable visit. Which imparted
a lot of knowledge.

The SCL is the company which suffers losses since few years. It
doesn’t mean that the working condition of the company is not good.

I found that there is a good administration in the firm and good

utilization of total capacity. Its personal department suggests that they are
aware from the value of personal and so manage them very systematically.
Its production department makes determine effort to maintain the best
quality of the product. Marketing department always shares beyond doubt.
We can say that financial department works so well bet finance position of
the company is not so good.

Now a days company suffers losses due to many reasons. But it tries
to progress slowly and gradually by reducing the losses. We may say that
the present working condition of the SCL is well.

I will give them all my heartiest best of luck for their future.

87
88
BIBLIOGRAPHY

PERSONAL MANAGEMENT
 C.B. MEMORIA

MARKETING MANAGEMENT
 PHILIP KOTLER & KINGS

FINANCIAL MANAGEMENT
 I M PANDEY & BILL SHAH

ADVANCE ACCOUNTANCY
 M. RADHASWAMI &
S. MAHESULAMI

89