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CHAPTER-I INTRODUCTION

1.1 INTRODUCTIONTO THE TITLE


In management science, term operation is defined as an action to be performed in a planned manner with view to achieving the pre-determined goals of the organization. On the other hand, the term efficiency is a conventional measure of performance in terms of pre-determined standard or objective. It is very difficult efficiency in absolute terms. In fact, it depends entirely up on ones frame of reference and also on the socio economic value held in society at any particular moment of time. The goals of societies also differ because of their economic systems, like that of U.S.A may mean profitability and growth rate while in a planned economy, such as those of some eastern and western European countries it refers to increase in their total output .further efficiency with in a profit oriented business is again subject to various interpretations. The use of man power, materials equipment, land and building and other physical resource to the maximum extent. The volume of produce goods or service is assessed against the physical sources used. The concept of operational efficiency which is or recent origin signifies the quality or skill and degree of success attained in the management and performance of various activates an enterprise. Operational efficiency is a systematic analysis and evaluation of the techniques and function in the various spheres of an organization with a view of exploring channels of performance evaluation. The operational efficiency of an organization is its ability to utilize resource. Such as man- power materials to the maximum extent. In this regard P.Prasad rightly remarks in relation to operation of a business, term efficiency means different things to different things to different people success or failure of business in economic sense is judged in relation to operation, return on invested capital and objective of the business concern.

1.2 INDUSTRY PROFILE


Introduction: India is the second largest producer of quality cement in the world. Cement is one of the core industries which plays a vital role in the growth and expansion of a nation. The industry occupies an important place in the Indian economy because of its strong linkages to other sectors such as construction, transportation, coal and power. The cement industry is also one of the major contributors to the exchequer by way of indirect taxes. Indian Cement Industry is engaged in the production of several varieties of cement such as Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid Hardening Portland Cement, Sulphate Resisting Portland Cement, White Cement, etc. They are produced strictly as per the Bureau of Indian Standards (BIS) specifications and their quality is comparable with the best in the world. The cement industry in India comprises 139 large cement plants and over 365 mini cement plants. The initiatives provided by the Government of India to various infrastructure projects, road network and housing activities will provide required stimulus towards growth of cement industry in India. Currently, the top players-UltraTech, ACC, Ambuja Cements, L&T, India Cementsand Shree Cement, collectively control more than half of the cement market in the country. There are 40 players in the industry across the country. The cement industry in India is experiencing a boom on account of overall growth in the economy. The demand for cement, being a derived one, depends mainly on the industrial activities, real estate business, construction activities and investment in the infrastructure sector. India is experiencing growth in all these areas and hence the cement market is moving ahead in spite of the world-wide economic. Employment Opportunities: The Indian Cement industry in India consists of organized and the unorganized sector. Organized sector constitutes the cement producing industries
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while the main players of the unorganized sector are the regional and local cement producing units in various states across the state. Job opportunities are available in organized and the unorganized sector. In most cases, one needs to have some type of expertise in architecture in order to get a job in this sector. There are many opportunities for site engineer, packaging engineer, shift in charge, surveyor, geologist, contractor, supervisor and other posts. Pollution: In Pollution Category, the Indian Cement Industry is under the Red" Category which represents highly polluting industries. Latest Developments:

The Indian cement industry is expected to grow steadily in 2010-2011 and increase capacity by another 50 million tons in spite of the recession and decrease in demand from the housing sector.

The industry experts project the sector to grow by 9 to 10% for the current financial year provided India's GDP grows at 7%. India ranks second in cement production after China.

The major companies have made investments to increase the production capacity in the past few months, heralding a positive outlook for the industry.

The housing sector accounts for 50% of the demand for cement and this trend is expected to continue in the near future.

The Indian Cement Industry with Modernization and technology up-gradation has become a continuous process for industry. At present international standards and benchmarks in the quality of cement and building materials produced are met in India and is able to compete international markets. Substantial technological improvements have been bought in the industry for which we can legitimately be proud of its stateof-the-art technology and processes incorporated in most of its cement plants. This particular technology up gradation is resulting in increased capacity, reduction in cost of production of cement. In 2003, a Cries Infar study mentioned that the cement industry could had the capacity addition of approximately 50 MT by 2008, of which Greenfield expansions would contribute 40 MT while debottlenecking of the plants

and increase in blending ratios would add another 10 MT, taking the total capacity of the cement industry to around 180 MT. Cement Industry - An Overview: Cement is the preferred building material in India. It is used extensively in household and industrial construction. Earlier, government sector used to consume over 50% of the total cement sold in India, but in the last decade, its share has come down to 35%. Rural areas consume less than 23% of the total cement. Availability of cheaper building materials for non-permanent structures affects the rural demand. Demand for cement is linked to the economic activity in any country. Broadly, it can be categorized into demand for housing construction (homes, offices etc.) and infrastructure creation (ports, roads, power plants etc). The real driver of cement demand is creation of infrastructure, hence cement demand in emerging economies is much higher than developed countries where the demand has reached a plateau. In India too, the demand for cement will be affected by spending on infrastructure (including housing). With the boost given by the government to various infrastructure projects, road network and housing facilities, growth in the cement consumption is anticipated in the coming year. The favorable housing finance environment is expected to fulfill the vast housing requirements, both in rural and urban areas. The increase in infrastructure projects by the government coupled with the construction of the Golden Quadrilateral and the North-South and East-West corridor projects have led to an increase in consumption of cement. This increase is expected to continue in the future. The reduction in import duties is not likely to affect the industry as the cement produced is at par with the international standards and the prices are lower than those prevailing in international markets. Technology Up-gradation: Cement industry in India is currently going through a technological change as a lot of upgradation and assimilation is taking place. Currently, almost 93% of the total capacity is based entirely on the modern dry process, which is considered as more environment-friendly. Only the rest 7% uses old wet and semi-dry process
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technology. There is also a huge scope of waste heat recovery in the cement plants, which lead to reduction in the emission level and hence improves the environment. Market Size: India's cement industry has performed better in 2011-12 (FY12), on back of robust demand revival in the second half of the financial year. The 330 MT industry grew by 6.4 per cent in 2011-12 as against less than 5 per cent in 2010-11. The industry sold 223.02 MT of the building material, compared with 209.5 MT in FY11. The cement production, too, rose to 223.6 MT against 210.5 MT in FY11. Cement Despatches: Cement industry in India has successfully maintained almost total capacity utilization levels, which resulted in maintaining a 10% growth rate. In 2006-07, the total despatch was 155 MT, which rose up to 170 MT in 2007-08. The month of October 2009 saw a cement despatch of 12.22 MT, which was almost 9% higher than the total cement despatch of 11.21 MT in the same The cement production increased from 137.16 million tonnes (MT) in April 2010 - January 2011 to 145.00 in April 2011 - January 2012. While cement despatches increased from 136.18 MT in April 2010 - January 2011 to 143.96 MT in April 2011 - January 2012, according to data provided by the Cement Manufacturers' Association (CMA). In addition, the eight key infrastructure industries posted a seven-month high growth of 6.8 per cent in February 2012, largely driven by robust performance in cement, electricity and coal. Cement output continued to post double-digit growth for the fourth consecutive month at 10.8 per cent. This was much higher than the 6.5 per cent growth seen in the same month last year. The cumulative cement output growth during April-February 2012 stood at 6.4 per cent (as against 4.3 per cent).

1.2.1 MAJOR PLAYERS IN CEMENT INDUSTRY:


There are a number of players prevailing in the cement industry in India. However, there are around 20 big names that account for more than 70% of the total cement production in India. The total installed capacity is distributed over around 129 plants, owned by 54 major companies across the nation.

Major players in cement industry


3.3 7.6 Madras cement Ltd 11.8 49.5 6.9 11.3 9.6 Gujarat Ambuja ct Ltd ACC India ct Ltd L&T Grasim Others

Following are some of the major names in the Indian cement industry:

Company ACC Gujarat Ambuja Ultratech Grasim India Cements JK Group Jaypee Group Century Madras Cements Birla corp.

Production 17,902 15,094 13,707 14,649 8,434 6,174 6,316 6,636 4,550 5,150

Installed capacity 18,640 14,860 17,000 14,115 8,810 6,680 6,531 6,300 5,470 5,113

Mergers and acquisitions in cement industry in india:

UltraTech Cement is going to absorb its sister concern Samruddhi Cement to become biggest cement company in India.

World's leading foreign funds like HSBC, ABN Amro, Fidelity, Emerging Market Fund and Asset Management Fund have together bought 7.5% of India Cements (ICL) at a cost of US$ 124.91 million.

Cimpor, a Cement company of Portugal, has bought 53.63% stake that Grasim Industries had in Shree Digvijay Cement.

French cement company Vicat SA bought 6.67% share of Sagar Cement at a cost of US$ 14.35 million.

Holcim now holds 56% stake of Ambuja Cement. Previously it held 22% of stake. The company utilized various open market transactions to increase its stakes. It invested US$ 1.8 billion for that.

LIST OF THE TOP 10 CEMENT COMPANIES TURNOVER IN INDIA: Following are the list of top 10 Cement Companys turnover in India: 1. ACC Limited 2. Ambuja Cements Limited 3. UltraTech Cement Limited 4. India Cement Limited 5. Shree Cement Limited 6. Rain Cement Limited 7. Prism Cement Limited 8. Madras Cement Limited 9. Birla Cement Limited 10. JK Cement Limited

1.2.2 MARKET SHARES OF EVERY CEMENT INDUSTRY:

SERIAL NO 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.

FIRM Grasim industries Ltd Ambuja Cements Ltd ACC Ltd Ultratech Cement Ltd Century Textiles&Indus.Ltd India Cements Ltd Birla corp. Ltd Madras Cement Ltd Shree Cement Ltd Dalmia Cement (Bharat)Ltd JK Cement Ltd JK Lakshmi Cement Ltd Sanghi Industries Ltd OCL india Ltd Chettinad Cement Corpn. Ltd Binani Cement Ltd Prism Cement Ltd Total

MARKET SHARE (%) 18.38 13.34 12.13 10.49 6.89 4.82 3.47 3.37 3.00 2.64 2.10 1.81 1.75 1.73 1.66 (3.06) 1.44 1.19 90.21

Business Strategies For The Indian Cement Industry: Consolidation and Globalization: Large cement players in India will use the acquisition route to enhance capacity and market share. It is clear that smaller plants will not survive in the long term. The top five players will hold 70-80 % of capacities and market in the next decade. There is an expectation that more global players would come into India as they would like to get a foothold in the market as the demand will propel in the emerging economies. As long as we have the emergence of serious, mature, long-term players, it would be good for the industry. Entry of smaller, non-serious and noncement players may pose a threat to others, as they do not have a long-term commitment to the industry and the customer. They may adopt different strategies not beneficial to the industry. In the Indian scenario, domestic players believe that acquisition is the quickest and the best route to cut competition and increase market share. In an industry, which is fragmented, consolidation appears to be an imperative strategy for the larger players. Acquisition appears a good route primarily because a Greenfield cement plant takes 34 years to build and another 3-4 years to break even at an operating level of even 7075 %. It is unlikely for new businesses to venture into cement owing to huge capital costs and therefore to meet increasing demand, existing players will either add capacity through the acquisition route or set up Greenfield plants. Large domestic players will acquire smaller or weaker plants in order to improve market share. The acquisition of the Larsen & Toubro cement (Ultra Tech Cement limited) business by Grasim Industries Limited in 2003-04 is a case in point. Till 2010, The Aditya Birla Group, has increased its capacity to 31MT and is currently a market leader in India and tenth in the World. Most players believe that it is good that an existing cement player has acquired the capacity. Had the capacity gone to someone who was not in cement, then this would have led to the emergence of a new player who may have not understood the business of cement. In cement, mergers and acquisitions do not happen when the going is bad. They happen when the going is good, as every seller in cement has a price tag in his mind. There is also the situation where there are no demanding lenders; even if the company is not making money, lenders do not want them to go out of business.
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The market share of the top twenty players in India has moved to 70 % of the Indian market in 2010.Secondly, with only a few players commanding a majority of the market, there is a clear advantage of exerting influence over the pricing of the product. As cement is a commodity product, manufacturers compete chiefly based on price. Production economies of scale are important, but are limited by the cost of transporting the finished product. The efficiencies that can be achieved with new energy-efficient (but capital-intensive) "dry" production technology are a major source of competition. Small manufacturers may not have the financial resources or production volume to justify investing in the most efficient technology, putting them at a competitive cost disadvantage. The worldwide consolidation of the cement industry is intensifying. Besides the established global competitors who are driving this process forward, there are a large number of new, large regional companies based in countries experiencing strong growth. Global players will play an active yet cautious role in this process of consolidation, on the basis of a solid balance sheet with significantly improved key financial ratios. Process Automation: The significant nature of changes to the Information technology area and the manner in which information will be processed will be drastic over the next 10-15 years. This will have some impact on the cement industry. Higher levels of technology, its seamlessness and functionalities that have wider acceptance and usage will also bring down operating costs considerably. It is envisaged that Indian companies, which operate several plants across states in India, will need to monitor plant operations on a centralized basis through the use of process automation. CRM (Customer Relationship Management) tools will now be used more effectively in the next few years, relevant information with Channel partners, dealers will be shared through the company network for enabling synergies. This will help to track profile of the actual user who the company is not aware of now. In the next decade, the company will have complete demographic data on the end user of cement irrespective of the quantity that is bought. This will enable proactively to size up the
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customer and determine future needs. For high productivity there is a need to deal with and implement optimization systems with the usage of mathematical programming. Effective usage of sensitivity analysis and a systems approach are also of paramount importance. With growth in organization and industry, the goals of the trading operations have also been redefined. The industry no longer looks just at maximizing domestic production capacity. The trade operations enable them to build international relations, explore new markets for establishing the demand in cement in a particular demographic, and balancing out regional supply and demand. Cement can be directed to a demographic, where its need is established, and consequently, gain flexibility to maximize worldwide production capacity. Technology: Use of technology in marketing will assume more changes with increase in both communication and information technological changes. Concepts will emerge such as phone-acement, or portraying a 3-D animation of the house prior to its construction in a library, providing responses to customers through mobile technology. Increasing customer expectations of adding greater value will ensure greater attention to this aspect. Necessary enhancement in using mobile and communication technologies will also be introduced. Value Activity has both a physical and an information processing component. Physical component involves all the physical tasks to perform the activity. The information processing component involves the steps to encapsulate, manipulate and guide the data necessary to perform the activity. It is everything that the buyer needs to know before buying the product to suit his expected result. The product includes information about its characteristics, and what can be, its possible uses. Computing power does this at a marginal cost relative to manual information processing. Cement Economics: Costs have a significant bearing on the performance of an industry and cement is no exception. The uptrend in costs is likely to continue, although the increase in input costs is expected to be neutralized by rise in prices owing to higher demand. Power and fuel costs have a strong influence on the operating expenditure of the
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company as they would account for about 32 % of total production costs. The overall costs are also determined by the economies of scale. The operating efficiencies of foreign players are better that that of the Indian counterparts. Companies such as Lafarge and Cemex fare better on energy costs and raw material costs when compared with Indian players. It will be necessary: 1) Large buyers of cement would align with cement producers for a long-term supply relationship; pricing will be determined by market and expected off take during a given period. 2) Region-wise strategy is likely to continue, unless state governments in surplus states along with business create a different growth strategy to boost infrastructure development. 3) Cement delivery will be made off city limits where the growth is expected to happen. The stocking points will be larger and fewer. Corporate Governance and Branding:

Corporate governance is as a set of systems, processes and principles, which ensure that a company is governed in the best interest of all stakeholders. The business environment has been changing over the years with increasing expectations from key stakeholders including regulatory bodies. Recent stock exchange regulations also require listed companies to enhance corporate governance and business practices and improved disclosure norms. While striving to achieve business objectives, companies and operating management are expected to enable a good working board and board committees, allow adequate transparency in operations, imbibe good business practices that are ethical, foster and institutionalize systems and controls in all spheres of activity. While cement is largely branded, there is a continuous effort to project the brand, improve brand recall by the customer across a wide geographical coverage and provide superior quality of product and service.

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R&D and Innovation: Companies do not have much of application-oriented research and development

efforts but this will become critical for future success. To a large extent, this is related to creating the application and customer of the future and understanding customer needs based on the emerging environment. Companies will need to create niche products and develop the market for such products by providing solution-based offerings to the customer. Innovation will be very important, to create high-grade and cheaper quality of cement. Indian companies have been moving from lower grade cement to higher over the years, and would have to continue to roll out even better quality to compete with the global players, and local competition. New cement products like RMC (Ready Mix Concrete) will help create a company carves out a niche in the market. With the surge in world population, and continuously increasing pressure on natural resources, there is a need for using new technologies that make Cement production environment friendly. It is imperative for innovators in the concrete and cement industry to consider a heterogeneous approach to materials and to integrate knowledge of other fields under a triple bottom-line of economic, social and environmental criteria. Stakeholder concerns have increased over the years and there are questions raised as regards sustainable development. While the world is conscious of the problem, there is a need to act now owing to better eco efficiency, industrial ecology, design for a better environment.

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INDUSTRY SWOT ANALYSIS Strengths High selling prices and profitability levels due to supply shortage. Relatively low energy costs. Tax-free environment. Taxes and restrictions set on imported cement. The cement business is a $10 billion industry, measured by annual cement shipments. There is also a strong reputation behind the cement industry Almost every building constructed relies on cement for its foundation. Natural hedge from outside competition arising from high transportation costs. Capital-intensive industry with long construction periods, creating natural barrier to new entrants. Weaknesses High oil prices, significantly increasing production and transportation costs. Proximity to lower cost export markets in Indian subcontinent, Egypt and Turkey, increasing competition in both local and export markets. Fragmented regional industry with no economies of scale. Non-optimal capital structure driven by the relatively low debt levels maintained by most companies in the region. Opportunities Construction boom in all GCC countries that is expected to continue in the short to medium term. Reconstruction in Iraq opens a window for dumping possible future excess capacities. A number of M&A transactions might take place in the near future. The cement industry has recently streamlined its production efforts, using dry manufacturing instead of wet, which is heavier and more time-consume. Projections show that by 2012, the cement industry will have 25 percent more production capabilities. India cement export many countries likes Malaysia, united arab emirates (UAE), germany, Maldives, united states of America (USA)

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Possible entry of multinational companies, increasing efficiency and opening new export routes. Threats Several capacity upgrades are planned, raising the possibility of oversupply situation. Increased competition in local markets post joining WTO and/or opening up for foreign investments. Further hikes in oil prices could negatively affect companys profitability if they cannot pass increase in production costs onto customers. The current economy has lessened the number of construction jobs, which in turn hurts the cement industry.

INDUSTRY GROWTH AND FUTURE PROSPECTS Performance: India is the worlds 2nd largest producer of cement after China with an industry capacity of over 200 MT. The cement industry in India is one amongst the fastest growing sectors due to the rapid development of infrastructure and real estate projects in the country, with 2008s domestic consumption growing ~10% YoY. The Southern and Central regions saw maximum consumption growth (~16% and ~14% respectively) whereas the North and Eastern lagged behind, with lacklustre growth (~4% and ~2% respectively).

The industry consists of both the organized sector and the unorganized sector. The largest organized sector companies include Ambuja Cements Ltd, J.K Cement Ltd, Grasim Industries Ltd, Associated Cement Company Ltd (ACC) and Madras Cement Ltd. while the main players of the unorganized sector are the regional and local cement producing units across various states. Some of the states where the cement industry is booming are Gujarat, Madhya Pradesh, and Rajasthan.

The significant growth trajectory of the industry has attracted a lot of foreign interest in the recent few years, with Holcim increasing its stake in Ambuja Cement from 22% to 56% and leading foreign funds investing in a 7.5% stake in Indias 3d largest cement company, India Cements (ICL) valued at US$125 million.
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Growth Potential: Prospects for the industry remain bright over the coming years, given Indias dominance of global markets and relatively low cost of production. Also, the overall economic prosperity of the country, with a burgeoning middle class, growing infrastructure demand, significant technological change and increasing government spending all bode well for the future. On the flip side, some caution has to be maintained due to the current demand- supply gap leading to over capacity and falling margins and prices. Also, given the close linkages between them, the effect of a slowdown in global real estate and infrastructure demand or hike in interest rates should also be evaluated. Future Prospects: According to the recent surveys, one metric ton of cement generates job opportunities for around 1.4 million people. In most cases, one needs to have some type of expertise in architecture in order to get a good job in this sector. Given that most of the jobs for qualified graduates have a good pay package with other benefits and perks coupled with positive growth prospects, working in the cement industry is considered a lucrative career option for new graduates, especially for those with an interest in architecture. It is believed that in the coming years, more than 2.5 million people will be directly employed by cement companies. To cater to this growing demand, a number of colleges and educational institutes have introduced various courses and study programs related to the cement industry such as a Post Graduate Diploma in Cement Technology.

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1.3 COMPANY PROFILE


COMPANY HISTORY: The House of Chettinad began its journey in a humble way in the year 1912 by its founder Dr. Raja Sir AnnamalaiChettiar, who was a Visionary, Idealist, Entrepreneur, Educationist and Philanthropist of 19th century, who envisioned that the future of his group is to improve the society economically by providing industrial and business development. The core values of the House of Chettinad Strive, Save & Serve continue to remain the same since 1912 with its dynamic vision changing according to times. The group continued the legacy, made the dreams of our beloved founder into reality and reached further heights by another Visionary, Idealist, Entrepreneur, Educationist and Philanthropist by Dr. Raja Sir MuthiahChettiar, the son of the founder. The growth of Chettinad Group was taken forward with the untiring efforts by the grandson of the founder, Dr. M.A.M. Ramaswamy, a multi faceted personality an Entrepreneur, Educationist, Philanthropist, Sportsman and his love towards protecting the arts, culture and values of Tamil, is the present Chairman of the group. The House of Chettinad is successfully marching towards a centennial year with the hard work and dedication of three generations of the family which stand for its Quality, Integrity and Reliability of the Products, Services and Trading that are being dealt by the group. In 2000, the present Managing Director, Mr. M.A.M.R. Muthiah took over the management of the group, has further expanded the nature and scope of the groups activities. The group is professionally guided and managed by its ambidextrous and dynamic Managing Director Mr.M.A.M.R. Muthiah, a professionally qualified individual, having work experience in the United States by having professionals with rich experience. Visioning for the new millennium, the present Managing Director envisaged Industrial, Infrastructural Development, Education and Health Services are the need of this century in which he wanted his group to participate and contribute. Accordingly, planned and increased the production capacity of the existing cementplant in Puliyur at Karur.

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Various new plants started:


The two new green site cement plants were commissioned in Ariyalur and Karikali near Dindigul. A new cement plant is being set up at Kallur in Karnataka. For developing infrastructure, the Ennore Coal Terminal was commissioned under Public Private Partnership with Ennore Port Limited. The group is also in the process of putting up coal power generation plant near Tharangambadi in Tamil Nadu, which will produce 1320 MW of power per annum. The vision of our Managing Director is to take the business forward across India within next 5 years and become an all India player. Our Managing Director has been elected unanimously as a president of the cement Manufacturers Association - India in January 2012 and he will continue to hold this position for a term of 2 years. Establishing company: Chettinad cement is operating its cement business spanning three generations. Since its establishment in 1962 with a wet process cements plant at Puliyur near Karur, Chettinad cement has been expanding and making itself versatile in the field of cement products. Major supplier of Southern India cement needs, Chettinad Cement supplies the "glue" upon which many residential, commercial and engineering projects are built. Chettinad Cement has established its position in the southern market by innovatively aligning its products and services to the needs of cement users.Chettinad Cement's modern, flexible manufacturing plant produces a wide range of cements which can be delivered in bulk using reliable road tanker fleet. Under its Builders Choicebrand name, Chettinad Cement offers an extensive range of bagged products that includes Ordinary Portland cements and blended cements to suit most building and construction applications. For over four decades, the Chettinad cement companies have built a reputation for serving the construction industry with high-performance products that encourage creativity and ensure longevity. As the creative use of cementitious materials continues to grow in popularity, in both masonry and concrete applications, so too, does our commitment to providing customers with the widest range of cements to achieve the maximum in creativity, versatility and integrity.
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Chettinad Cements are carefully proportioned, highly accurate blends of quality materials including blended cement& Portland cement are manufactured under controlled conditions assuring reliable performance, and providing consistent quality. Chettinad Cement has always strived for high quality production and maintained international standards. The company has won many laurels for its cement production and has ISO 9001/2008, ISO 14001/2004 and IS 18001/2007 certifications. It has grown steadily from time to time through its consistent quality and customer service. COMPANY FACT SHEET Name of the company Type Founded Managing Director Chairman Head quarters Production plant Revenue Employees : Chettinad Cement Corporation Ltd : Public. : 1962 : M.A.M.R.Muthiah. : M.A.M.Ramaswamy. : T.Nagar Chennai. : Puliyur, Karikkali, Ariyalur and kallur. : 4.5 (crores) : below 600.

Company secretary:S.Hariharan Associated companies : Granite, Engineering. Silica

Information Technology, Plantations, Shipping, Transpiration, Stevedoring, Website : www.chettinad.com

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MAJOR PRODUCTS OF CCCL


Ordinary Portland Cement (OPC) Portland Pozzolana Cement (PPC) Parithram Chettinad Royal Grade 53 Chettinad Grade 43 White cement

Ordinary Portland Cement (OPC) : Our Gray Ordinary Portland Cement is a high-quality, cost-effective building material mainly composed of clinker that meets all applicable chemical and physical requirements and is widely used in all construction segments: residential, commercial, industrial, and public infrastructure. Chettinad cement is the result of careful effort in the research and development of our cement engineers and scientists. It is specially blended with good quality control monitoring systems, high quality cement engineered for use in all structural, building and particularly useful in marine and hydraulic construction. Chettinad Cement is extremely easy to work with and produces consistently excellent results every time. This consistent quality, versatility and proven strength make it the choice for builders, architects, engineers, contractors. The composition of the cement is constantly monitored and maintained to guarantee high quality performance as per cement class specs requirements. Portland Pozzolana Cement (PPC) - Blended Cement: This Blended hydraulic cements are produced by intergrinding or blending Portland cement and supplementary cementitious materials such as fly ash. The use of blended cements in ready-mix concrete reduces mixing water and bleeding, improves workability and finishing, inhibits sulphate attack and the alkali-aggregate reaction, and reduces the heat of hydration. Depending on the constituents, blended cements can confer desirable qualities to concrete such as lighter colour, workability, or low heat of hydration. Slag from steel making and fly ash from the power industry are two commonly added materials in blended cements. By putting waste to work, blended cements contribute to sustainable development. We have made blended cements for over 20 years.

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Parithram: Unique cement manufactured at puliyur works having very high quality for special concrete applications. Chettinad Royal Grade 53: Superior finely ground cement, suitable for plastering works, giving a silky finished look. For RCC applications laster controlled manufacturing would yield best results. Chettinad Grade 43: Multipurpose cement, suitable for plastering and binding. White cement: It is a kind of Ordinary Portland Cement. The ingredients of this cement are inclusive of clinker, fuel oil and iron oxide. The content of iron oxide is maintained below 0.4% to secure whiteness. White cement is largely used to increase the aesthetic value of a construction. It is preferred for tiles and flooring works. This cement costs more than grey cement MISSION: To achieve and sustain cost leadership in cement market. To hard new technology to its full potential in a safe and clear environment in entire business cycle and integrate quality with continuous implementation. To became a vibrant, hearing, organization by building skill and companies of employees for growth. To be the most respectable corporate citizen. VISION: With almost a century of continuous growth & prosperity behind us, we envisage our future as another opportunity to reach greater heights and to perfect the art of perfectionism, upholding the vision of our founder Dr. Rajah Sir Annamalai Chettiar "STRIVE, SAVE and SERVE". The nature, ethics and style of business have undergone a world of change in the past century. We at "House of Chettinad" believe that nothing can supplement the idealism, which motivates the business. We fall back on the time-tested principles of Total Customer Orientation, Technology in service of man and Business as an instrument of social service. To these timeless truths, we remain steadfast forever.

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1.2 ORGANIZATIONAL STRUCTURE


An organization is a group of individuals co-ordinate into different levels. Levels and segments of specialization are for the purpose of achieving the goals and objectives of the organization. An organization structure is a description of a type of co-ordination used to organize the action of individuals and departments that contribute to achieving a common goal. Organizational structure allows the expressed allocation of for different functions and process of different entities such as branch, departments, work groups and individuals. 1.2.1 Top level Management The top level management consists of General Manager, Chairman and Managing Directors. The functions of this level include determination of organizational objectives and goals, overall planning, organizing, staffing, directing and controlling. 1.2.2 Middle level Management The middle level management stands between top level and supervisory level management. This level co-ordinate the functions of both supervisory and top level management. It consists of departmental heads and their immediate subordinates. The departmental heads includes the company secretary, Marketing Manager, Financial Manager, Production Manager, and HR Manager. 1.2.3 Supervisory level It is concerned with efficiency in using resources of the organizational. It consists of maintenance and several of assistance. It is an executer of policies and procedure making serious decision with well defined and specified promises.

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1.3 ORGANISATION CHART

CHAIRMAN

MANAGING DIRECTOR

GENERAL MANAGER

Purchase Manager

Production Manager

Quality Control Head

Finance Manager

Sales Manager

Personnel Manager

Supervisor

Maintenance Supervisors

Asst. Officer

Head clerk

Territory Officers

Secretary

Workers

Workers

Lab Technicians

Subordinates

Sales Executives

Staffs

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DEPARTMENTS 2.1 PURCHASE DEPARTMENT


2.1.1 INTRODUCTION The basic raw materials used for manufacturing soap noodles a white wax like pieces of different composition 70:30, 80:20, 10:90 of palm. Palm kernel combinations are available locally in Indian market as well as they can be imported from Malaysia and Indonesia. Other than soap noodles it also requires perfumes, chemicals such as Titanium Dioxide, soap stone powder or talc, Chelating agent like Tetra Sodium EDTA, anti oxidant like BHT and skin softening agent like Lanolin, aloe-Vera which are available in local market. 2.1.2 MODE OF PURCHASE The company purchases raw materials based on getting quotation and tender of best quality and of low price. 2.1.3 MODE OF PAYMENT The payment for the purchase of raw materials is by check, NEFT and through online banking. 2.1.4 MODE OF DELIVERY Based on the quotation given the materials are delivered directly to the factory or in some cases the raw materials are taken from suppliers godown and in both the ways the quality of materials are verified before taking it. 2.1.5 TYPE OF FORMS Purchase department generally uses purchase form for ordering raw materials which includes the address of the company with requirements and of delivery.

2.1.6 PLACE OF PURCHASE

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The basic raw material called Soap Noodles is a composition of palm. It is available in North Indian Market other than that it can be imported from Malaysia and Indonesia. And other chemicals, perfumes and softening agents are available in local market. 2.1.7 GRADING OF MATERIALS The soap noodles are of different composition 70:30, 80:20 and 90:10 and the soaps of three grades can be manufactured like soaps with 76 and above TFM is 1 st grade, TFM with 70-76 is of 2nd grade and below that is of third grade. But as it is Government manufacturing concern all quality material is ordered. 2.1.8 ISSUE OF MATERIAL Purchase department issues the materials to the production department based on the material required for the production which is in written and has signed from the production head. 2.1.9 WASTE MANAGEMENT Mainly the soap items will have minimum waste. The waste may arise due to the damage in the product. The damaged product are again recycled and made into fresh one. The damaged products are brought into simplex refiner. In simplex refiner the damaged products are crushed and powdered, which mixes along with raw materials. Thus the waste is recycled. 2.1.10 LEVEL OF STOCK The industry norms for raw materials storage are 30 days. Before 30 days of production begins, all the materials are been stored. 2.1.11 DISPOSAL OF SCRAP Mainly the soap items have minimum waste. And that scrap can be reused for further process of manufacturing soaps. Hence, the scrap will not be there in soap manufacturing.

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2.1.12 ORDER PROCESSING The processing of orders is done in a systematic way. The purchase head analyzes how much to be produce and in what time and on that basis it invites quotation from its regular suppliers or through online or inviting suppliers in newspapers.

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2.2 PRODUCTION DEPARTMENT


2.2.1 INTRODUCTION Enterprise engaged in manufacturing activities seeks competitive advantage through production function. They believe that being strong in competitive advantage, they are well poised to succeed, and constraints notwithstanding, production function can offer competitive edge to firm in various ways, prominent among them being shorter new product lead time, more inventory turn, better flexibility and reduces wastage. Among all the functional area of management, production is considered to be crucial in any industrial organization, production is the process by which raw materials and other inputs are converted into finished products. The Production Manager is responsible for making sure that raw materials are provided and made into finished goods effectively. Planning, implementation and control of industrial production process to ensure smooth and efficient operation. Production management responsibilities include the traditional five Ms, men, machines, methods, materials and money. They may use industrial engineering methods such as time and motion studies to design efficient work methods. In Chettinad cements Ltd. we can see a perfect mix of all these basic inputs used for production. The function of the departments begins from bringing the raw materials into factory and processing all function. The role of finished goods are properly packed and kept ready for dispatch.

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2.2.2 DEPARTMENT CHART CHAIRMAN

MANAGING DIRECTOR

GENERAL MANAGER

PRODUCTION MANAGER

MAINTENANANCE

QUALITY CONTROL

ELECTRICAL SUPERVISOR

MECHANICAL SUPERVISOR

PLANT OPERATOR

CHEMICAL CONTROL

PHYSICAL CONTROL

SS

FITTER

FITTER

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2.4 FINANCE DEPARTMENT


2.4.1 INTRODUCTION It is the age of industrialization. Large industries are being established in every country. It is very necessary to arrange finance for building, plant and working capital etc for the establishment of these industries. How much of capital will be required from what sources this much of finance will be collected and how will it be invested is the matter of financial management. Financial management is that managerial activity which is concerned with planning and controlling of the firm s financial resources. The finance manager must see that the funds are preceded in a matter that risk, cost and control consideration are properly balanced in a given situation and there is optimum utilization of funds. The general areas of finance are business finance, personnel finance and public finance. Finance includes saving money. It must be managed properly and efficiently. 2.4.2 ROLE AND FUNCTIONS OF FINANCE DEPARTMENT Finance officer directs organizations financial goals, objectives and budgets. This oversee the investment of funds and management activities, executes capital. Raising strategies to support a firms expansion and deal with merger and acquisitions. Credit manager oversee the firms issuance of credit. They establish credit rating criteria, determine credit ceiling and monitor the collections of past due accounts. Managers specializing in international finance develop financial and accounting system for the banking transactions of multinational organization. The major functions of finance department include the following: i. ii. iii. iv. v. vi. vii. viii. Preparation of budget, appropriation of accounts Allocation of funds Control of expenditure and way and means position Auditing Transaction administration Selection of the source of funds available to the firm Dealing with receipt and payments General and optimum utilization of resources
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ix. x. xi. xii.

Meeting of legal requirements Physical verification of cash dealings Determining the capital structure Dealing with external and internal auditors, bank, central excise people and income tax issue etc.

xiii. xiv. xv. xvi.

TA, DA, HRA billing section Cash management Dividend decision Evaluation and financial performance

2.4.4 FINANCIAL POLICY The financial policies followed by Chettinad cements are based on Government norms as per the Companys Act 1956. 2.4.5 CAPITAL STRUCTURE The whole capital involved is 12 Crore which includes equity and loans and also funds from the Government. 2.4.9 PAYMENTS The payment policy followed in the company is 30 days for creditors and 15 days for raw materials before the production commences. 2.4.10 RESERVES General reserves are been considered in this company. 2.4.11 DIVIDEND POLICY Now the company is in the loss so no dividend is given. But when it acquires profit it gives 10% of dividend. 2.4.12 TAX PAYMENT In Chettinad cements Ltd. Central Excise, value Added Tax, Service Tax, Income Tax all these statutory provisions are maintained.

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2.4.13 CONDUCTING OF AGM As per the company norms Annual General Meeting Should be conducted on 31st of October which includes Chairman, Directors, MD and Company Secretary.

2.5 MARKETING DEPARTMENT


2.5.1 INTRODUCTION Marketing is an ongoing process of planning and executing the marketing mix such as product, place, price and promotion for product and services or ideas to create exchange between individuals and organization. Marketing trend to be seen as creative industry, which includes advertising, distribution and selling it is also concerned with anticipating the consumers future needs and wants which are often discovered through market research. Marketing is the process by which companies creates consumer interest in goods and services. It generates that strategy that underlines sales techniques, business communication and business development. It is an integrated process through which companies build strong customer relationships and creates value for their customer and for themselves. 2.5.2 STRUCTURE OF MARKETING DEPARTMENT

MARKETING HEAD

MARKETING CO-ORDINATOR

MARKETING OFFICER

MARKETING EXECUTIVE

ISR (Intelligence Sales Representative)


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2.5.3 SELLING PROCESS For government sector, soaps are distributed directly from the factory. And for outsiders the selling process is:

END PRODUCT STORE

MARKETING AGENCY

SUPER

CUSTOMERS

WHOLESALERS (OR) RETAILERS

DISTRIBUTERS

DOMESTIC AND INTERNATIONAL MARKET Chettinad cements markets their product in local market. 2.5.10 DOCUMENTATION PROCEDURE It follows a detailed documentation procedure as per the Government norms it may be agreement, MOU or any written document which may be from 6 months to 3 years. 2.5.11 MODE OF SALES Sales process is done by cash receiving and for Government concern also on credit basis. 2.5.12 CREDIT POLICY

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Chettinad cements is a private undertaking concern and hence according to the KSIE norms it sales their product on credit basis to Government concern only. 2.5.13 FORMS USED IN SALES In sales function company uses forms like: DBA (Dispatch Billing Advice) Gate Pass Bills

2.5.14 REGISTERS MAINTAINED Sales Department maintained all records up to date for future reference. It includes: Sales Orders DBA Letters

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2.6 PERSONNEL DEPARTMENT


2.6.1 INTRODUCTION The success of an organization depends on the capacities and capabilities of its personnel. Unless an organization devotes enough resources on the development of its Human Resource, it would not get the required output from its personnel. An organizations commitment to the development of human resources has to be reflected in its policies, procedures, practices, customs and ideals. Human Resource Management (HRM) is the strategic and coherent approach to the management of an organizations most valued asset- the people working there who individually and collectively contribute for the achievement of the objectives of the business. The term Human Resource Management and Human Resources have largely replaced the term Personnel Management as the description of the processes involved in managing people in organization. In simple words HRM means employing people, developing their capacities, utilizing, maintaining and compensating their services in tune with the job and organizational requirement. Human Resources cannot be standardized, no two person are similar in mental abilities, traditions, sentiments and behavior widely they differ. As people responsive they feel, think and act. They cannot be operated like a machine. Hence they need to be handling very tactfully and sensitively by managers for achieving optimum result of an organization. In other words of Peter Drucker the prosperity if not the survival of any business depends on the performance of its managers tomorrow. Success of any organization depends mainly upon the quality of human resources and their performance. Organizational resources can be broadly categorize into two i.e, Psychological Resources Physical Resources Human Resource Management deals with management of resources of organization. HRM is a strategically driven process of acquiring, training, appraising

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and compensating employees and maintaining good labor relations, health and safety. HRM directly addresses the business related issues or functions. The industrial department of Kerala Government has started new unit, Chettinad cements Ltd. by taking the brand image of Chettinad cements Ltd. This has been dropped its operation for last 8 years. Hence it is in the initial stage of development. At present the HR Department of Chettinad cements is handled from its Head Quarter. 2.6.2 STATUTORY ORDER In Chettinad cements Ltd. the top level management is appointed by the HR department of Kerala State Industrial Enterprises. And hence the hierarchy or the order of working authority is structured from the Head Quarters itself. 2.6.3 TIME OFFICE FUNCTION As it is a Government concern the working time is been classified into i.e., shop floor starts from 8.30am and office work begins from 9am and both will be on process till 5pm. 2.6.4 JOB ANALYSIS All the functioning of HR will be carried over the head quarter of KSIE and hence the job information will be collected from the HR manager of the regional Head and given the criteria for both job specification and job description to get effective job performance with the essential capacity of employees. 2.6.5 MANPOWER PLANNING Chettinad cements Ltd. is having 114 employees including both white collar and blue collars. The requirement of manpower for each functioning department is forecasted before and accordingly assisted them for different task. If more workers required, they will employ workers on daily wage basis. The planning includes: Projecting Manpower Requirements Taking stock of existing Manpower Recruitment and selection Manpower Development

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2.6.6 RECRUITMENT Recruitment is the process of identifying the sources of potential employees and encouraging them to apply for jobs in the organization. In Chettinad cements the recruitment is done through Employment Exchange as it is a Government undertaking. 2.6.7 SELECTION Selection is the process of screening the candidates who applied for the jobs and selecting suitable ones for the respective jobs by matching the qualifications of the candidates with the requirement of the posts to be filled. The process of selecting employee includes: Preliminary Interview Selection Tests Employment Interview Checking of Reference Medical Examination Final Approval 2.6.8 JOB EVALUATION Job evaluation is concerned with rating of job. And in Chettinad cements each job structured based on evaluating each job and based on that wages and salary has been fixed. Job evaluation also helps to overcome the anomalies in the organization. Steps included in job evaluation are: Job Analysis Appointment of evaluator Training of evaluator Analyzing criteria Classification of jobs 2.6.9 TRAINING AND DEVELOPMENT Training implies learning the basic skills and knowledge required for a particular job in order to improve the current performance. Development involves the growth of individuals in all respects.
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2.6.10 PROMOTION AND TRANSFER Promotion depends on the basis of seniority, merit and vacancy. The personnel department deals with promotion when vacancies are available on higher grades base on: 1. Seniority 2. Reservation list 3. Performance appraisal 4. Pay fixation and grade seniority list Transfer procedures for officers are done from unit to other and for employees from one department to other. Employees are appointed for a fixed period in one department and after the completion of the period they are transferred. 2.6.11 WAGE AND SALARY In Chettinad cements all blue collar employees are receiving daily wages and the white collar employees are getting salary based on their post. 2.6.12 LEAVE FACILITY There are some types of leave facilities provided to the employee which are: Earned Leave Medical Leave Casual Leave 2.6.13 PERFORMANCE APPRAISAL SYSTEM Performance appraisal in Kerala Soap Ltd as on the basis for job change for promotion, to give training and development program, to give a feed back to employees and to serve bonus and incentives. For conduction performance appraisal, the employees are divided into 3 categories executives, supervisors and staff. It helps in Overcoming employees weakness and to improve his strength Guiding the action Rewarding employees
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Removing work discontent Improving communication Developing inter personnel relationship Providing basis for promotion, transfer or termination

2.6.14 CAREER PATH HR Department understands and develops the employees skill for individual as well as for the organization. For developing employees responsibilities and satisfaction towards the job HR Department arranges workshops, mentoring and counseling and the employees undergoes career cycle having stages like Exploratory Established Maintenance Declining

2.6.15 GRIEVANCE Grievance is the dissatisfaction or feeling of injustice among employees. It may be due to dissatisfaction in working condition, management policy, and personnel problem and so on. Employees can present their grievances through exit interview, open door policy or opinion survey. 2.6.16 DISCIPLINARY ACTION Any misbehavior or any fraud event done in the organization will take into consideration and based on the issue the action is taken whether it may be suspension, transfer or dismissal. 2.6.17 LABOR WELFARE ACTION Chettinad cements provide statutory as well as non statutory welfare measures to the employee which includes: First Aid Safety Canteen
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Drinking Water Facility Saving Schemes Ventilation Lightning Latrine & Urinal Maintenance Of Building 2.6.18 INDUSTRIAL RELATIONS Industrial relations in Chettinad cements is concerned with wage administration, settlement of demand of unions, Remittance of Tax, Reports on Accidents, disciplinary actions against misbehaving staffs and employees etc. Industrial relations in all units have been cordial and peaceful and the welfare measures are improved from time to time. 2.6.19 OD STRATEGY Organizational Development (OD) is an educational strategy using behavioral science to bring about a planned change in cultural and social process of an organization in order to improve the capabilities in solving its present problem and coping with future changes in external environment. Strategies of Organizational Development program involves: Motivating for introducing and OD Program Signing the contract by consultant Diagnosing data collection Planning the strategy for change and working out of specific intervention Mentoring and evaluation Institutionalization and internalization

2.6.20 OD INTERVENTION OD intervention includes:

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2.6.20.1Structural Technique Change in the organizational structure. Centralization or Decentralization Span of control Job design Job enlargement Job enrichment

2.6.20.2Human Process Technique Human Sensitivity Training Survey feedback Grid Training Process consultation Team Building Intergroup Development

2.6.21 CONFLICT MANAGEMENT Conflict is the break down in the standard mechanism of decision making. The HR department tries to manage conflict in the following ways like: i. ii. iii. iv. v. Avoidance or repression of conflict Diffusion of conflict Containment of conflict Confrontation of conflict Problem solving

2.6.22 BONUS SETTLEMENT Company provides minimum bonus of 8.33% and it will at the time of Onam festival.

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2.6.23 RETIREMENT BENEFITS All the retirement benefit is given as per the Government rules and regulation. According to which the retirement age is 58 and it includes all the statutory benefits, PF and gratuity.

SWOT ANALYSIS

Strength
CCC is gearing up for a major expansion. It has decided to be major cement producers in india by setting up Greenfield and Brownfield plants. People ask for chettinad cement. Its having a good image and brand loyalty among consumers. Good quality and services. The company is the greatest producer of cement in the india. More and more customer satisfaction. Consistent quality, versatility and integrity. They have same price prevailing for wholesale at dealers/stockiest retailers end.

Weakness
Lacking of awareness program between the consumers. The competitors are doing much promotional activity rather than chettinad cement that why it facing more problems in selling of product in the market. There is more restriction on exports in the current situation. Areas of development or decline are analyzed and presented in the profile objectively. Developments in the company covered in the profile more help you track important events. Opportunity The increasing demand for cement in the various areas has come as an opportunity for CCC as the company bears production capacity plants in the areas.
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Rapid growth plant is taking place in karur, Ariyalur, dindigual and Kallur. The company can explore and exploit are sized up and its growth potential assessed in the profile. Foreign direct investment in infrastructure sector going to increase in coming years, which will increase the demand of cement. As Indian core industry is also growing at rate of nearly 10% per annum, it is having a good future. People are opting for more stable structures and intensive use of cement. Nowadays more build a house. Thus this is the right time produce more cement to tap these market. Even though government also is spending heavily on infrastructure projects. Roads are undergoing through the transformation process through which the traditional method of road building will be replaced by modern concrete roads. Threat There are large numbers of players in the cement industry make it carefully fixing the price of the product. To more competitive for chettinad cement. At the same time CCC price of the product to satisfy the dealers and customers compare to the other company.

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1.3.1 MILESTONES AND ACHIEVEMENTS:

SL.NO 1

DESCRIPTION 0.4 MTPA cement production capacity with wet process plant installed at puliyur.

YEAR 1967

1a

1983-85 Three no.1500 KVA/each capacity Yanmar (japan) DG sets installed to overcome EB power shortage.

1967

Modernized into dry process plant to a capacity of 0.8 MTPA with a kiln capacity of 2000 TPD commissioned with modern vertical roller mills for fuel & limestone grinding.

1990

3 4

2 Nos. of 5.4 MVA capacity WARTSILA DG set installed.

1990

66 Nos. of wind electric Generator of total capacity 17.3 MW 1994-96 installed at poolavadiUdumapletTaluk.

5 6 7 8

ISO -9002 Certificate received. Stacker & Re-claimer for Limestone installed. Belt Elevator for Raw mill and Kiln feed installed. Vertical roller mill for cement grinding installed. Additional ESP installed for Kiln/Raw mill to handle excess process gasses.

1995 1996 1996-97 1998

CIS/CFG Cooler installed, Low pressure cyclone installed. Latest Technology LV-Tech classifier installed in Raw Mill. The plant capacity increased to 1.2 MTPA cement.

2000

10

Green field cement plant with capacity if 0.9 MTPA was commissioned at Karikkali.

2001

11 12

ISO 14001:2004 is implemented. 1 No. 15 MW Coal based Captive Power Plant commissioned in 12 months at Karikkali.
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2003 2004

13

Fly Ash Silo construction work complented at Puliyur and Karikkali.

2005

SL.NO 14

DESCRIPTION Roller press with ball mill for cement grinding with capacity 0.7 MTPA installed at Karikkali.

YEAR 2006

15

Vertical roller mill for cement grinding installed. Additional ESP installed for Kiln/Raw to handle excess process gases.

2006

16

Karikkali plant capacity incrased to 2.0 MTPA by increasing of blended cement production.

2007

17

Bag House installed in Raw Mill/Kiln Circuit in addition to the existing ESP at Puliyur.

2007

18

Energy dispersive X-Ray specto meter was put into service for increasing the output and economical mines operation & conservation of minerals.

2007

19

Advance Research laboratories, Switzerland make X-Ray Sepectrometer Sequential type was commissioned for augmenting clinker production and its quality.

2007

20

Seethainagar Mines crusher capacity was up gradation for supply of 40% Karikkal plant requirement of Limestone

2007

21

Coal based 15MW capacity CPP was commissioned during Feb-2008 at Puliyur Works.

2008

22

Coal based 2*15 MW capacity CPP was commissioned during Sep-2008 at Ariyalur.

2008

23

Green field Cement plant with capacity 2.75 MTPA was commissioned during Dec-2008 at Ariyalur.

2009

24

Video conferencing facility was commissioned b/w Puliyur, Karikkali, Ariyalur and Head Office for more effective and faster communications and project monitoring.
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2009

25

Brown field Cement plant with capacity 2.75 MTPA was commissioned at Ariyalur during Oct-2009

2009

SL.NO 26

DESCRIPTION Coal based 1*15 MW capacity CPP was commissioning during Jan-2010 Erection and Commissioning of cement plants in world Record Time at Ariyalur 30 Months from BhoomiPooja to commissioning Highest Production

YEAR 2010

Capacity ina single location at Ariyalur Three No.15 MW Coal based Captive Power Plants Commissioned on 18 months at AriyalurChettinad cement Techinical Team retd No 1 by FLS Denmark at Ariyalur. 27 Roller press with ball mill for cement grinding with capacity 0.5 million commissioned during Feb-2010 at Puliyur. 28 Brown field Cement plant with capacity 2.75 MTPA was commissioned at Karikkali in Mar-2011 along with coal based 20MW captive power plant within the premises. 29 Work is under progress for a new Green field production line of 2.5 MTPA cement with 1.No. of 30 MW Coalbased captive power plant in kallurvillage ,ChincholiTaluk and GulburgaDist of Karnataka state and expected to be commissioned in year 2012. 30 32.installed capacity as of now is 11.7 MTPA Puliyur 1.7 MTPA Karikkali Line -1 2.0 MTPA Karikkali Line -2 2.5 MTPA Ariyalur Line 1- 2.75 MTPA Ariyalur Line 2- 2.75 MTPA 2011 2011 2011 2010

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1.3.2 NO. OF ESTABLISHMENTS / BRANCHES / WORK SITES:


The company has 3 integrated plants in Tamilnadu at Puliyur, Karikkali and Ariyalur. The company is setting up one more cement plant at Kallur, Karnataka. Puliyur plant Kumara Rajah Muthiah Nagar, Puliyur CF (Post) Karur Dist-639 114 Tamil Nadu Karikkali Plant Chettinad Cement Corp. Ltd., Rani MeyyammaiNagar,VedasandurTaluk, Karikkali (Post), Dindigul Dist-624 703 Tamil Nadu Ariyalur Plant Trichy- Ariyalur road Keelpaluvur Ariyslur-621 707 Kallur Plant Survey No.5, Sangem.K.Village, Kallur Works Bhaktampali (Post), Chandapur S.O, ChincholiTaluk, Gulbarga Dist, Karnataka State-585 305.

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1.3.3 CCCL TURNOVER RATIO:

YEARS 2007-08 2008-09 2009-10 2010-11 2011-12

SALES (IN RS) 84047 110720 132148 151862 171940

TOTAL ASSETS (IN RS) 568795 89298 135970 162990 182948

RATIO 1.47 1.24 0.77 0.93 0.94

1.3.4 TURNOVER RATIO OF CCCL CHART:

RATIO
1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2007-08 2008-09 2009-10 2010-11 2011-12 0.77 RATIO 0.93 0.94 1.47 1.24

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RESEARCH AND DEVELOPMENT IN CCCL (R&D) Puliyur&karikkali factory: Specific areas in which R&D activities carried out by the company:

a. Usage of alternate fuels derived from waste materials on a sustained basis. b. To conserve natural mineral and energy resources for environmental management and cost reduction. c. To have competitive edge in the present day cement marketing scenario. d. To determine optimum cement content in various concrete mixes. e. To ensure that our customer/consumers get the best result out of the products (cement supplied by us, in various application domestic, industrial, costal area construction). f. To study the strength development of concrete at various ages/ various design mixes. g. To increase the usage of mineral the usage of mineral admixtures in concrete. Benefit derived as a result of the above R&D:

a. Better and durable concrete. b. Better customer satisfaction. c. Value addition to products supplied. d. Control of cement manufacturing cost by reducing the consumption of input materials (Coal/Iron ore / power). e. Conservation of Mineral resources, use of low and marginal grade Limestone. New R&D development (Future Plan of Action): a. To standardize the types of various lubricants used in the Plant and reduce lube oil consumption. b. Recovery of steel materials from scrap upto 3%.

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c. Exploration

of

Limestone

availability in

new

lease

areas

around

Seethainagar&Dholipatti Mines so as to augment the life of limestone mines to sustain and improve the level of clinker production in future. d. Setting up of Optical Mircoscope Laboratory at Puliyur Works for carrying out R & D work affiliated to Puliyur Plant under the guidance of NCBM, Ballabgarh. e. It is planned to integrate all the three quality system (IS/ISO 9001:2000, IS/ISO 14001:2004, IS/ISO 18001: 2000). f. Expenditure on R & D a. Capital b. Recurring c. Total d. Total R&D expenditure as percentage of total turnover CCCL is the cement producer in India with its own in-house research and development facility. This unit, recognized by the Department of Scientific & Industrial Research (DSIR) in the Ministry of Science and Technology, is engaged in research and development activities related to cement and concrete areas. The R & D programme addresses a spectrum of activities that cover technical services for quality and technology up-gradation and development of products and processes in the companys core business. Given the inherent variability in the mineral resources used in cement manufacture, considerable attention has been devoted to continuously optimizing process conditions including raw materials proportioning to ensure the highest quality.

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CHAPTER V FINDINGS AND SUGGESTIONS


The present study was under taken to analyze the operational efficiency of the study unit by the computation of various ratios. In this suggestion attempt has been made to present the summary of findings and suggestions.

5.1 FINDINGS
Kerala Soaps Ltd. is a Private organization. Chettinad cements have brand image in turn helping in increasing its goodwill. Machines are placed in line for production i.e. firm uses product layout for production. All the machinery used is of advanced technology. Human Resource Department is not flourished in the company. All the main functions are done by Chettinad cements Good co-ordination between all the staff and workers of the firm. Canteen facility is not satisfactory. As it is a developing firm it is trying to give best performance in the market.

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5.2 SUGGESTIONS

Human Resource is the main elements of the firm and to manage it is a difficult task. So, if there is a development of HR Department, it will helps in more efficient working of the organization. The firm concentrates on local markets. But if the firm targets both local as well as outer markets, the sales of its product can be increased. The firm can provide with catchy advertisement in order to meet competition in the market. Canteen facility can be improvised. Company can also produce other products like soap powder, hand wash, shampoo etc. If recreation facilities developed more, the employers will free motivated for doing work. Providing adequate compensation and appreciation for quality work.

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5.3 CONCLUSION
This project helped me to put my theoretical knowledge into actual practice. It made clear that the objective of any industry is to enhance effectiveness involving production and distribution of goods and services. The study has able to analyze the various functions carried out in all departments like Purchase, Production, Quality Control, Finance, Marketing and HR. And in Chettinad cements Ltd. the good quality products are produced but unless it expands its activities, it will not able to reduce its cost of production and increase profit. The practical knowledge gained from every section of the company is interesting and worth full. And hence the study will be useful for me to apply in the real term to grow myself with the organization am working in.

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