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EXECUTIVE SUMMARY
Cement is one of the important materials in house construction and costs 12
to15% of cost. Cement is used in more of less all the important like Roof slab,
beams, columns, lintels, brickwork and flooring. Cement imparts both strength and
makes the building component strong. It is important to remember this happens only
if it thoroughly mixed, laid, compacted and cured properly. Different companies
supply different types of cement which has got different quality, strength and setting
time.
India viewed the cement production in the early 20th century, with first
cement industry set up in 1904 by south Indian industries. The 2ndunit, which came
up from the house of Tatas at Porbandar in 1904, started its operation in 1915 with
a combined capacity of 75000 tonnes per annum.
India with the capacity of 113.5MT is 3rdlargest producer of cement. The
industry has a turn over of around Rs 19500 Crore and accounts for direct and
indirect employment of 106 million persons. Private sector contributes over 85% of
cement out put in the country.
Currently, India has 109 large cement plants and more than 200 mini plants,
which includes 30 plants having more than 1 million ton capacity.
The study is conducted at Grasim Industries Ltd, Aditya Birla, marketing
(Cement Division), Bangalore. The study consists of two sections. The first section
covers the working of organization, Industry profile, company profile, product
profile, study of different departments in Grasim Industries Ltd Bangalore. The
second section relating to the marketing problem Factors Responsible for Growth
of Blended Cement Sales in Territory 3 of Bangalore City
1. INDUSTRIAL PROFILE
HISTORY OF CEMENT:
Romans have used naturally occurring cement 300 BC in Roman baths,
roads and the stadium. In1796, Jamea Parker of England patented natural hydraulic
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cement by calcining nodules of impure limestone containing clay called Parkers
cement or Roman cement.
Joseph Aspdin of England invented cement in 1824. He named it Portland
cement, as it resembled natural stone obtained from Portland, England, since there
has been a constant improvement in manufacture and quality. Its use has become
universal replacing lime as binding material since 1920.
THE ROLE OF CEMENT
Cement is one of the important materials in house construction and costs 12
to 15% of cost. Cement is used in more of less all the important like Roof slab,
beams, columns, lintels, brickwork and flooring. Cement imparts both strength and
makes the building component strong. It is important to remember this happens only
if it thoroughly mixed, laid, compacted and cured properly
AN INDUSTRY OUTLOOK
Cement- A high volume low value product is one of the high capital as well
as high power intensive industries (40% capital+ 40% energy costs). Cement
constitutes an important segment of modern industrial economy of India as it sets up
a strong and healthy infrastructure. The infrastructure strength of nation can be
determined based on the cement consumption, with construction a pre-cursor to the
economic development.
India viewed the cement production in the early 20th century, with first
cement industry set up in 1904 by south Indian industries. The 2ndunit, which came
up from the house of Tatas at Porbandar in 1904, started its operation in 1915 with
a combined capacity of 75000 tonnes per annum.
The post independence era brought new impetus to the cement industry.
One of the most notable developments was the first Indian Standard Specifications
of Portland cement by Indian Standard Institutes (ISI). The most important feature
of Indian specification was that the permissible limit of magnesia content in cement
was raised from 4% to 5%.
However until the year 1982, Indian Cement Industry was completely
controlled by the govt., which regulated both distributions as well as price of the
cement. During this control regime, freight pooling system was in vogue, which
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resulted in slow and stunted growth, as well as led to shortages in domestic
production. Partial decontrol in the year 1982, followed by total de control in 1989,
gave a boost to cement industry.
PRESENT SCENARIO
India with the capacity of 113.5MT is 3rdlargest producer of cement. The
industry has a turn over of around Rs 19500 Crore and accounts for direct and
indirect employment of 106 million persons. Private sector contributes over 85% of
cement out put in the country.
Currently, India has 109 large cement plants and more than 200 mini plants,
which includes 30 plants having more than 1 million ton capacity.
Per capita consumption of cement in India is near 82 kgs against worlds
average of 250kgs. The cement business has registered an impressive growth of
24% in realizations vis--vis the comparable quarter of previous year. Production at
2.57 million metric tones and sales volume at 2.55 million metric tones have risen.
Realizations, stronger at Rs 2046 per MT, have been major contributing factor in the
enhanced operating margin of business.
To grow its cement business and to sustain its market share, Grasim has
planned a total capital expenditure of Rs.530 crore. This includes:
Setting up of 4 Ready Mix concrete plants of which 3 have been already
commissioned at Hydrabad, Chennai and Noida. The fourth RMC plant at
Bangalore is slated for completion the second quarter of FY2002.
Modernization processes and capacity expansion through bottle necking, which
is ongoing.
CHARECTERISTICS OF CEMENT INDUSTRY:
Cement market at present is a buyers market then sellers market.
Cement is a bulk commodity.
Cement market in India is divided regionally.
Transportation cost prohibits inter region transportation on a large scale.
Distribution is a critical factor in cement marketing.
Prices are very volatile in nature.
DEMAND AND SUPPLY:
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Demand for cement can be broadly divided in two broad categories.
Indent 360 housing, offices, and maintenance and rehabilitation activities.
Infrastructure projects such as irrigation canales, railways, roads and ports.
Demand under category 1 is generally recurring and replacement in nature.
In the category 2 demand demands are determined by the creation of infrastructure,
which is crucial for emerging economies.
According to industry sources cement demand is price inelastic that is
demand is independent of price level. But on the other side the management passeson the rising cost to the end customer. Thus the demand supply equation has to be
more or less in equilibrium. As cement in India has no identifiable substitute the
prices are mainly determined by.
The industry demand and supply scenario:
The nature of demand in India is in sharp contrast to that of the developing
countries where ready mix concrete is the largest sector and bulk distribution the
norm, In India, cement is largely sold in the bag form and branding is prerequisite for
the retail market. Private construction firms are the largest end users of cement and
accounts for 55% of total demand. Government share is less that 30%.
MANUFACTURE OF CEMENT:
The main raw material for cement manufacturing is calcium carbonate in
some form (lime stone, Marls, Chalk, sea sand, sea shell and coral reefs), gypsum,
which is used as a retarding agent. The purer the gypsum, the better is a retarder.
Cement industry used lime stone as a major raw material, but the deposit of
lime stone is not evenly dispersed all over the country. Due to this, cement plants are
also located in this region and production is concentrated in this region.
Types of Cement:
Type 1: Ordinary Portland Cement
Type 2: Moderate Heat of Hydration
Type 3: High Early Strength (Rapid Hardening)
Type 4: Low Heat of Hydration
Type 5: High soleplate Resistance
Ordinary Portland Cement (OPC) It contains gypsum, coal and limestone. Has
faster setting time and less strength. Ideal application is for light construction.
Portland Pozzolana Cement (PPC) contains blended Pozzolona material
(claimed clay and fly ash) along with gypsum in clinker. It is of high strength and used
in heavy construction.
Moderate Host Portland cement (MHPC) By changing chemical composition
of cement the heat of hydration can be lowered. The type of cement is used for
mass concrete work.
Rapid Hardening Cement (RHC) gives strength in 24 hours with same setting
time of OPC. Therefore it is also called as High Early Strength Cement.
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Sulphate Resistance Cement (SRC) used for concrete and construction, and
are in prolonged contact with soils and water rich sulphates.
White Cement if iron content of grey cement is lowered too less than 0.4% the
color of cement becomes white. The cost of white cement is high and used for
decorative work only.
Portland Blast Furnace Slag Cement (PBFSC) the blast furnace slag when
mixed with Portland cement clinker gives PBFSC. It is suitable for construction of
dams, bridges, etc.
Masonry cement sand or granulated slag is mixed with OPC clinker on
proportion on about 1:1, to get Masonry Cement. Used for laying and bounding
bricks and for plastering.
The physical characteristics by which the quality of the cement is assured are
Fineness (specific surface)
v Soundness (expansion of unaerated of cement by lachaeler mould auto clay)
v Setting time (initial set and final set)
v Compressive strength (3 days, 7 days, 21 days)
v Heat of Hydration
v Sulphate resistance
v Drying shrinkage
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2. COMPANY PROFILE
Grasim Industries an overview
Grasim was incorporated on 25 August 1947, exactly 10 days after India
achieved independence.
Originally a textile manufacturer, Grasim has successfully diversified into
VSF, cement, sponge iron and chemicals.
I firmly believe that our people provide us with the cutting edge. For
sustainable success, their performance orientation and customer focus is
imperative. In my view, only where people grow, the organization grows."
- Mr. Kumar Mangalam Birla, Chairman, The Aditya Birla Group
2.1 BACKGROUND AND INCEPTION OF THE
COMPANY:
The Aditya Birla Group is India's first truly multinational corporation
operating in the country for over 5 decades and globally for nearly 30 years. A US$
7.59 billion conglomerate, with a market capitalization of US$ 7 billion, it is
anchored by an extraordinary force of 72,000 employees belonging to over 20
different nationalities. Over 30 per cent of its revenues flow from its operations
across the world. The Group's products and services offer distinctive customer
solutions. Its 66 state-of-the-art manufacturing units and sectoral services span India,
Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada, Australia and China.
The Aditya Birla Group is a dominant player in all of the sectors in which it
operates Such as viscose staple fibre, non-ferrous metals, cement, viscose filament
yarn, branded apparel, carbon black, chemicals, fertilizers, sponge iron, insulators
and financial services.The company is also a leading player in following:
The World no.1 in Viscose Staple Fiber.
The World's Largest Single Location Palm Oil Producer.
Asia's Largest Integrated Aluminum Producer.
A Globally Competitive, Fast-Growing Copper Producer.
The World's Third Largest Producer of Insulators.
Globally, the Fourth Largest Producer of Carbon Black.
The World's Eighth Largestproducer of Cement, and the Largest in
a Single Geography.
India's Premier Branded Garments Player.
Among India's Most Energy Efficient Private Sector Fertilizer Plants.
India's Second Largest Producer of Viscose Filament Yarn.
The no. 2 Private Sector Insurance Company, and the Fourth Largest
Asset Management Company in India.
Beyond Business:
A value-based, caring corporate citizen, the Aditya Birla Group inherently
believes in the trusteeship concept of management. Parts of the Groups profits are
ploughed back into meaningful welfare-driven initiatives that make a qualitative
difference to the lives of the people. These activities are carried out under the aegis
of the Aditya Birla Center for Community Initiatives and Rural Development, which
are spearheaded by Mrs. Rajashree Birla.
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2.2 NATURE OF THE BUSINESS
The roots of the Aditya Birla Group date back to the 19th century in the
picturesque town of Pilani set amidst the Rajasthan desert. It was here that Seth Shiv
Narayan Birla started trading in cotton, laying the foundation for the House of Birlas.
Through India's arduous times of the 1850s, the Birla business expanded
rapidly. In the early part of the 20th century, the Group's founding father,
Ghanshyamdas Birla, set up industries in critical sectors such as textiles and fibre,
aluminium, cement and chemicals. As a close confidante of Mahatma Gandhi, he
played an active role in the Indian freedom struggle. He represented India at the first
and second round-table conference in London, along with Gandhiji. It was at "Birla
House"in Delhi that the luminaries of the Indian freedom struggle often met to plot
the downfall of the British Raj.
2.3 VISION, MISSION AND VALUES OF GRASIM
INDUSTRIES
To be a premium global conglomerate with a clear focus
on each business.
MISSION:
To deliver superior value to our customers, Shareholders,
employees and Society at large.
VALUES:
Integrity
Commitment
Passion
Seamless nes
VISION:
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Speed
2.4 PRODUCT PROFILE:
Product mix 2005- 06 (by revenue):
Revenue (per cent)
1 Cement 46%
2 VSF 35%
3 Sponge iron 9%
4 Textiles 5%
5 Chemicals 5%
CEMENT:
Grasim is among the largest producers of grey cement in India with a total
grey cement capacity of 13.12 million tonnes per annum (tpa). All its plants are
located close to sizeable limestone mines and are fully automated to ensure
consistent quality. All the companys cement units are certified with ISO 9001 for
quality systems, and ISO 14001 for environment management systems. Its nationalbrands are Birla Plus, Birla Super and Birla Ready Mix concrete.
Cement VarietiesCatering to Different Segments:
Rajashree Cementfor residential and commercial construction
Birla Super Cementfor multi-storied buildings, dams and bridges
Birla Plusfor mass concrete laying and non-structural applications
Birla Coastalfor foundation work and for use in coastal areas as well as
sugar and fertilizer plants
Kamal Cement:
Acquired by Grasim in 1998, Shree Digvijay Cement Company Ltd
(SDCC) is situated at Sikka (Gujarat). It has an annual capacity of about 1.08million TPA. All of SDCCs products are marketed under the brand name 'Kamal'.
The company has ISO 9002 certifications for its clinker and cement
production and its oil well cement has been authorized for the use of the monogram
of the American Petroleum Institute.
Birla White Cement:
Architectural monuments have always played a significant role in marking the
progress of history. Take the examples of the Coliseum of Rome, the Leaning Tower
of Pisa and our very own Taj Mahal.
Grasim Products:
Sl.No Product
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In an endeavour to encourage young architects to push the boundaries of
design and creativity, Birla White a leader in the white cement industry has
been presenting a platform for the creative genius. Aimed at architectural colleges
across the country, Birla White has pioneered a design contest in search for talent in
design excellence. This year's Birla White Yuva Ratna Awards called for design
entries in two categories Designer Flooring and GRC (Glass Fibre Reinforced
Concrete).
Instituted in 2004, Birla White Yuva Ratna Awards is catalytic in providingan opportunity to aspiring and talented architects and designers to unleash their
potential by designing outstanding designer floor designs and GRC patterns. The
awards are the conduit for creating new trends and ushering in a new age with
limitless options. Birla White received an overwhelming response this year. In all,
there were 1054 entries from 34 colleges spread across nine states. Among the
various path-breaking entries presented, an artist has worked out an entire concept
for facilitating the movements of the visually impaired.
At the recently held Birla White Yuva Ratna Awards function, Birla White
felicitated 21 aspiring students from different states. The Chief Guest was Mrs.
Rajashree Birla, Chairperson of the Aditya Birla Centre for Community Initiativesand Rural Development. Says Mrs. Birla, "The range of eclectic designs have been
most impressive. It is a tribute to the innovative and creative spirit of the youngsters."
Viscose Staple Fibre :
Grasim is India's pioneer in Viscose Staple Fibre (VSF), a man-made,
biodegradable fibre with characteristics akin to cotton. Extremely versatile and
easily blended with other fibres, VSF is widely used to manufacture fabrics for
both woven and knitted garments. The range of applications extends from
apparel both top wear and bottom wear to home textiles, dress material,
knitted inner wear and outer wear, and non-woven fabrics.
Aditya Birla Group is today the world's largest producer of VSF,
commanding a 24 per cent global market share and meeting over 98 per cent of
India's VSF requirements.Grasim's VSF plants are located at Nagda in Madhya Pradesh, Kharach in
Gujarat and Harihar in Karnataka, with a combined installed capacity of 2,51,850
tonnes per annum. Nagda is its largest unit producing a wide range of VSF to suit
customer requirements in terms of length, denier and colour. Nagda is also the
largest producer of spun-dyed specialty fibre in the world.
The Harihar unit produces rayon grade pulp, the basic raw material for VSF
production and raw white VSF. The Company's rayon grade plant was the first in
India to use totally indigenous resources like eucalyptus. It uses an in-house
technology for producing rayon pulp with an innovative oxygen bleaching process to
reduce the use of chlorine.
The VSF plant at Kharach, set up in 1997, employs the most contemporarytechnology, and today overseas customers demand "fibre from Kharach". The AV
cell unit in Canada, an overseas joint venture, also supplies dissolving grade chemical
pulp to the Group's VSF units in India, Thailand and Indonesia.
This spread and scale of operations makes the Group's VSF operations
extremely cost competitive. In addition, vertical integration into production of various
principal raw materials required for VSF production caustic soda, CS2 and
rayon grade pulp heightens its competitive edge.
Grasim has earned prestigious awards for its technology and its innovative
range of fibres. Made from wood pulp through an eco-friendly, non-polluting
process developed and patented by the Aditya Birla Group, it is the world's only
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heavy-metal-free viscose fibre.
The Birla Research Institute for applied sciences at Nagda along with the
Company's R&D teams, endeavours to make technology work for improving
quality, lowering costs and optimising resources, the Company's Textile Research
Application Development Centre (TRADC), coming up at Kharach, will continually
develop new applications and products. It will also explore possibilities of strategic
alliances with downstream textile product manufacturers to commercialise the
applications, leveraging superior quality of VSF in terms of feel, comfort, hygiene
and aesthetics.All of the VSF business offerings have been branded under the 'Birla
Cellulose' umbrella. To penetrate into niche market segments, and to grow further,
the division has ventured into the production of high performance viscose fibres aptly
named Viscose Plus, High Wet Modulus Fibres (Modal) and Birla Excel, the new
generation solvent spun fibres.
Grasim is also the largest producer of sodium sulphate, a by-product of VSF
manufacture.
Sponge iron:
In 1993, Grasim ventured into sponge iron with the commissioning of
Vikram Ispat's gas-based sponge iron plant at Salav in Alibag, Maharashtra. Theplant has a current capacity of 900,000 tons per annum, and is the largest merchant
producer of sponge iron in India.
Textiles:
Grasim has a strong presence in fabrics, synthetic yarns, worsted yarn and is
well known for its branded suiting Grasim and Graviera, made from different blends
of polyester and viscose. Its textile plants are located at Bhiwani in Haryana and
Malanpur in Madhya Pradesh. Fabric operations are centralised at Bhiwani with a
processing capacity of 17 million meters a year, while the Malanpur unit
manufactures worsted dyed yarn spun from 100 per cent merino wool along with
polyester and other blends.
2.5 AREA OF OPERATION
A formidable force in Indian industry, Mr. Aditya Birla dared to dream of
setting up a global business empire at the age of 24. He was the first to put Indian
business on the world map, as far back as 1969, long before globalization became a
buzzword in India.
He had foreseen the winds of change and staked the future of his businesson a competitive, free market driven economy order. He put Indian business on the
globe, 22 years before the economic liberalization was formally introduced in India.
He set up 19 companies outside India, in Thailand, Malaysia, Indonesia, the
Philippines and Egypt.
Under his stewardship, his companies rose to be the world's largest
producer of viscose staple fibre, the largest refiner of palm oil, the third largest
producer of insulators and the sixth largest producer of carbon black. In India, they
attained the status of the largest single producer of viscose filament yarn, apart from
being a producer of cement, grey cement and rayon grade pulp. The Group is also
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the largest producer of aluminium in the private sector, the lowest first cost
producers in the world and the only producer of linen in the textile industry in India.
At the time of his untimely demise, the Group's revenues crossed Rs.15, 000
crore globally, with assets of over Rs.16, 000 crore, comprising of 55 benchmark
quality plants, an employee strength of 75,000 and a shareholder community of
600,000.
Under the leadership of the present Chairman, Mr. Kumar Mangalam
Birla, the Group has sustained and established a leadership position in its key
businesses through continuous value-creation. Spearheaded by Grasim, Hindalco,
Indian Rayon, Indo Gulf Fertilizers and companies in Thailand, Malaysia, Indonesia,
the Philippines and Egypt, the Aditya Birla Group is a leader in a swathe of products
viscose staple fibre, aluminium, cement, copper, carbon black, palm oil,
insulators, and garments. And with successful forays into financial services, telecom,
software and BPO, the Group is today one of Asia's most diversified business
groups.
The Brand "Aditya Birla":
The Name "Aditya Birla" evokes all that is positive in business and in life. It
Typifies Integrity, Quality, Performance, Perfection, and Above All character. Our
Corporate Logo, 'The Rising Sun', symbolizes these traits. ('Aditya' is the Sanskrit
Word for Sun).
The logo consists of an inner circle, symbolizing the internal universe of the
Aditya Birla Group, an outer circle, symbolizing the external universe, and a dynamicmeeting of rays converging and diverging between the two
'Aditya' is the Sanskrit Word for Sun
Social Activities: All efforts start from the earth. Only some reach the skies to light up and
dazzle. Gyanodaya, our Institute of Management Learning in Navi Mumbai, is
one such effort in spreading the light of knowledge.
As a conglomerate with a diverse business portfolio, no single set of
competencies will do each business requires a unique skill set. The challenge is to
identify these skills. Also, with speed being of essence, organisations and employees
need to continuously learn and perform soaking in new modules of success,
adapting them to our advantage, keeping a step ahead of the competition.
Gyanodaya has been envisioned as a hub, the backbone of a process that
sharpens our Group's competitive edge. Closely linked to the vision of the Group is
the Gyanodaya vision: 'To be at the core of an effective learning network that, as a
strategic business partner, harnesses knowledge and intellectual capital, to contribute
to Aditya Birla Group's vision of being a premium conglomerate.'
At Gyanodaya, learning happens in two ways:
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1. G-Learning which takes place at Gyanodaya. The training calendar is accessible
to employees via Aditya Disha, the group-wide intranet. The participant can choose
the programme that s/he would like to participate in. Some programmes are by
invitation only.
2. E-Learning where learning is just a click away.
Gyanodaya has created an environment for delivering high quality learning,
with the help of a highly-qualified and experienced external faculty. This imparts a
larger perspective to the programmes, which consist of a mix of classroom,outreach, and e-learning initiatives.
Grasim, Nagda has been involved in various meaningful, welfare-driven
initiatives that distinctly impact the quality of the weaker sections of society in the
Ujjain district of Madhya Pradesh. In working with the communities, the company
gauged their real needs and identified these as access to potable water, sustainable
livelihood, healthcare, education and infrastructure.
Grasim's community development programme encompasses 55 villages and
some adjoining urban localities. It has helped more than 1.4 lakh people in this area
and is implemented under the aegis of the Aditya Birla Centre of CommunityInitiatives and Rural Development. The major programmes include watershed
management including drinking water provision in 20 villages and two townships, and
running three schools for ensuring quality education to over 5,000 children.
The Rural Development section is well equipped with vehicles, ambulances,
tractors, training centres and other necessary infrastructure with doctors,
paramedical staff and workers. Under the sustainable livelihood schemes, more than
600 families are covered through self-help groups and income generation activities;
over 1,600 persons are trained in 30 different trades each year; and increased crop
productivity in 1,750 hectares has enhanced the livelihood options for 3,500
households.
Several other accolades have been conferred on Grasim in recognition of itscontribution to rural development.
2.6 OWNERSHIP PATTERN:
Grasim is family owned business unit. MD is Kumar Mangakam Birla. It has
52% of share holders. They have a good profit and the payment is made to every
share holder each year without fail.
They have issued no debentures for raising capital. The companys quality
share are listed on the following stock exchanges.
Name of Stock Exchange Stock Code
Madras Stock Exchange Limited 00513
The Stock Exchange, Mumbai 43214
Bangalore Stock Exchange Limited 67148
The Stock Exchange, Ahmedabad 4871
The Culcutta Stock Exchange Association 8777
The Delhi Stock Exchange Association Limited -- -- -
Cochin Stock Exchange Limited -- -- -
National Stock Exchange of India GIL
2.7 COMPETITORS INFORMATION:
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Plant Location Capacity
(In million tones)Rajashree Cement Malkhed and Hotgi 4.20
Vikram Cement Jawad and Bhatinda 4.20
Grasim Cement Raipur 2.06
Aditya Cement Shambhupura 1.50
Cement Division South Reddipalayam 1.16
Shree Digvijay CementGujarat
1.08
Total :14.00
Historically, the Indian cement sector has been highly fragmented comprising
54 players that operate 124 plants. The majority of plants are small sized and well
spread through out the country. The cement industry is cyclical and capital intensive.
A new plant typically has a gestation period of 3-4 years.
The industry is rapidly consolidating with Mergers & Acquisitions activity. In
the recent past, Gujarat Ambuja acquired control of ACC and Grasim has acquired
control of L & T. These 2 players are dominant in the industry.
Amongst the MNC players, Lafarge has acquired a capacity of 4.5 MTpa
and Itali Cement has a capacity of 2.7 MTpa.
ASSOCIATED CEMENT COMPANIES (ACC):
ACC is one of the leading cement producer in India came in to existence
consequent to the amalgamation of ten cement companies in 1936. Manufacturing
and marketing of cement, ready mix concrete refractory products are main business
of ACC. Further the company is in to consultancy and engineering services.
ACCs manufacturing base consists of 14 cement plants spread well all over
India. It has 2 refractory plants, one each at Maharashtra and MP and 6 RMC
plants near to four metros of India.
GUJARAT AMBUJA CEMENT:
Gujarat Ambuja Cement was set up in 1986.in the last decade the company
has grown tenfold. With the commencement of commercial production at its 2Mn
tonnes plant in Chandrapur, Maharashtra Ambuja will become Indias 3rd largest
cement company, with the capacity of 12.5Mn tonnes and revenue in excess of
2,500 crore.
The companys most distinctive attribute however is its approach to the
business. Ambuja follows a unique homegrown philosophy of giving people the
authority to set their own targets, and freedom to achieve their goals and has proved
to be the powerful engine of growth for company.
THE INDIA CEMENTS LTD:
The India Cements Ltd. was established in 1946 and the first plant was
setup at Sankarnagar in Tamilnadu in 1949. Since then it has grown in stature to 7
plants spread over Tamilnadu and Andhra Pradesh. The company is largest
producer of cement in South India.
2.8 INFRASTRUCTURE FACILITIES
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RajaShree and Birla Super cement:
Commissioned in 1984, Rajashree Cement has a capacity of 4.20 million
TPA.
The salient facts about Rajashree Cement are:
Coal-based thermal power plant with a 38.5 MW capacity
Modern dry process technology from KhD, Germany, with a state-of-the-artprocess control system
First in India to achieve Certification ISO 9001:2000 by DNV, Netherlands, 2001
Vikram Cement:
The first production line of this unit at Jawad (Madhya Pradesh) went on
stream in 1985, with a capacity of 0.5 million tpa. Today, with a capacity of a 4.20
million tpa, Vikram Cement has emerged as a premium regional brand, well-reputed
for its strength and consistently superior performance. The Vikram Cement unit is
one of the few plants to have its own Central Research and Development Centre.
The first ISO 9001 cement plant in the country, Vikram Cement has also taken thelead in innovative raw mix designs and process conditions.
Vikram Cement has won several accolades at the national and international
level for its quality, efficiency and environmental initiatives. These include
Grasim Cement:
Grasim Cement was set up as a Greenfield cement plant at Raipur,
Chhatisgarh, in 1995. Based on the most advanced technologies, this plant has an
annual installed capacity of 2.06 million TPA.
The Grasim industry plants unique features include:
Asias first gamma ray belt analyser from Gamma Matrix (USA) ensuring the
highest standards in online quality control.
Indias first polycom (blast furnace slag grinder) with a dynamic air separator
from Krupp Polysius Germany, which helps to generate the desired
homogeneous particle size distribution.
One of the few single kiln cement plants producing more than eight varieties of
cement.
Emerging as the largest producer in India and 7th largest in the World.
Aditya Cement:
Commissioned in a record time of 22 months as a Greenfield 1.0 MTPA
plant in 1995 in Shambhupura, Rajasthan, and its current capacity is about
1.50 million TPA.
Grasim acquired Dharani Cements (since merged with the company) in April
1998. The company has a cement plant at Ariyalur, Tamil Nadu. In April 2000,
Grasim South:
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among the most modern in Asia, was commissioned at Reddipalayam, Tamil Nadu.
This unit now has a capacity of 1.16 million TPA.
This is the only plant to be equipped with an auto/ robot lab system for
consistent quality and optimizing cost.
2.9 AWARDS
National Award for Quality Excellence in the Indian Cement Industry by theNational Council for Cement and Building Materials, for the year 2000-01
IMC Ramakrishna Bajaj National Quality Award (certificate of merit) in
1999
Jamnalal Bajaj Uchit Vyavahar Puraskar for Fair Business Practices in 1995
Rajiv Gandhi National Quality Award in 1993
Birla Super Cement received the Environment Excellence Award under the
silver category by GreenTech Foundation
Birla Super Cement certified with the OHSAS 18001:1999 for their
occupational health and safety management system by Det Norske Veritas.
The first Indian unit to win the coveted TPM award from the Japan Institute
of Plant Maintenance, Tokyo, in 1995 The first cement unit in the world to receive IQRS level 5 rating from Det
Norske Veritas, The Netherlands.
The first cement unit in India to be certified ISO 14001 (1997) and OHSA
18001 (certifications from DNV, Rotterdam, The Netherlands, in 2001)
FICCI Annual Corporate Social Responsibility Award 2004, the 2004
Stockholm Industry Water Award and the Asian CSR Award 2005.
WORK FLOW MODEL
BIRLA SUPER BULK TERMINAL:
The plant is the unit of Grasim Industries Ltd. BSBT started its operation
from May 1999 onwards. It is situated 40 Km away from Bangalore city. AtDoddaballapur which is also called the SILK CITY. The plant is located in the
Veerapura, Doddaballapur tq, and Bangalore dist.
The plant was constructed with an investment of 12 cr. It is also the
packaging and distribution plant. This plant caters the requirement of cement all over
Karnataka. The market share of this cement is suitably increasing annually because
of the product quality, timely supply, customer satisfaction and after sales service.
BSBT is the only unit located in Karnataka, which supplies cement
requirement of the southern districts. To this unit, cement comes from its parent unit
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Rajashree cement, Malkhed, situated in Gulbarga. The cement is brought in specified
railway wagons. The company has its own locomotive engine and a separate railway
sliding which is deviating from Doddaballapur railway station. There are totally 3
rakes shuttling between the production plant in Gulbarga and BSBT.
The plant constructed on an area of 40 acres of land, which includes,
Main package plant
Railway sliding
Truck yard
Office, canteen etc
Green belt
3. THE MCKENSEYS 7S MODEL
McKinseys 7S model provides a useful framework for analyzing the
strategic attributes of an organization. The McKinseys 7S model developed by two
persons Tom Peters and Robert Waterman. They were working as consultants at
McKinsey and Co. at that time. The McKinsey Consulting Firm identified strategy
as only one of seven elements exhibited by the best-managed companies.
Strategy, structure and systems can be considered as the hardware of
Success while style, staff, skills and shared valued can be seen as the software.
Companies, in which these soft elements are present, are usually more successful at
the implementation of strategy.
The hard elements of Mckenseys 7S model are feasible and easy to
THE MCKENSEYS 7S MODEL IS AS FOLLOWS
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identify. They can be found in strategy statements, corporate plans, organizational
charts and other documentations.
The four soft Ss however, are hardly feasible. They are difficult to describe
since capabilities, values and elements of corporate culture are continuously
developing and changing. They are highly determined by the people at work in the
organization. Therefore it is much more difficult to plan or to influence the
characteristics of the soft elements. Although the soft factors are below the surface,
they can have a great impact of the hard structures, strategies and systems of
organization.
The 7Ss are:
Structure
Skills
Style
Strategy
Systems
Staff
Shared Values
The organization (e.g. hierarchical or flat ) as well as the group and
ownership structure is included here. Also note Porters categorization of group
structure: Efficient Allocation of Capital, Allocation of Resources, etc.
Mr. Kumar Mangalam Birla is the Chairman of the Company, the company
board also includes Executive Directors, Directors, Advisor and Company
Secretary in the board.
MANAGEMENT:
The Aditya Birla Management Corporation Limited is the Group's apex
decision-making body and provides strategic direction to Group companies.
Board of Directors:
Mr. S. Aga
Mr. D. Bhattacharya
STRUCTURE:
Dr. Kumar Mangalam Birla, Chairman
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Mr. S. K. Jain
Dr. S. Misra
Mr. S. Misra
Mr. S. K Mitra
Dr. B. K Singh
Mr. Deepak Mittal
Mr. K. K. Maheshwari
[file:///F:/SACHIN%20ADITYA/k_k_maheshwari.htm]
Mr. Vikram Rao
Business Heads:
Mr. Shailendra K. Jain, VSF
Mr. Saurabh Misra, Cement
Mr. Ravi Kastia, Sponge iron
Mr. S. K. Saboo, Textiles, Spinning
Mr. Vikram Rao, Textiles, Fabrics
Mr. K. K. Maheshwari, Chemicals
Whole-time Director and Chief Financial Officer:
Mr. D. D. Rathi
Company Secretary
Mr. Ashok Malu
OBJECTIVES:
To define the rules and responsibilities of an employee in the organization.
To ensure a flat organizational setup.
To analyze the manpower requirement.
To define the hierarchy, level of authority, vertical and horizontal relationship.
Skills refer to the fact that employees have the skills needed to carry out the
companys strategy. Training and Development- ensuring people know how to do
their jobs and stay up to date with the latest techniques.
The company requires technical skills for production and manufacturing
divisions. Also it requires strong management skills in marketing and H.R. divisions.
The marketing executives must have good communication skills and better
knowledge of the company and its product. Many marketing executives have the
engineering background with MBA degree.
ORGANIZATION STRUCTURE AND CHART
SKILLS:
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Marketing executives are also required to have very strong verbal and
written communication skills, especially presentation skills as most of the time they
have to do the presentation for their clients and for the higher authorities.
Senior level executives must be good analyzing individual strength and
weakness, so that they can allocate work to individuals effectively. They also must
have strong skills of analyzing the market situation and changes.
STYLE:
Style refers to the employees shared and common way of thinking and
behaving unwritten norms of behavior and thought:
Leadership Style
Organizational Culture
The company culture is very informal, youthful and dynamic. It encourages
free and participative thinking. The Grasim Industry has the participative type of
leadership style in practice. The top and middle executives of the management tend
to be totally accessible and encourage the participation in decision-making, by
conducting the debate and discussion.
This type of leadership style attracts talented people to enter the company
and make them to feel company as their family. Also this style motivates the
employee to stay in the company.
STRATEGY:
The integrated vision and direction of the company, as well as the manner in
which it derives, articulates, communicates and implements that vision and direction.
The Grasim Industry is a worldwide leader in viscose staple fiber (VSF),
and it is a largest producer of white cement in India. The Birla White Cement
division changed its slogan from Whitest White Cement to My Kind of Design.
The company is having many products, which are produced by using the white
cement, differentiates company products from competitors product.
The company is having strategy of going for more tonnage; better quality and
customer service rather than more margin.
The focus is on the all-round development of the communities around the
plants located mostly in distant rural areas and tribal belts. All the group companies-
Grasim, Hindalco, Indian Rayon, Indo Gulf & Indal have Rural Development Cells,
which are the implementation bodies.
Projects are planned after a participatory assessment of the communities
around the plants. Each project has a one-year and a three-year rolling plan, with
milestones and measurable targets. The objective is to face out the companies
presence over a period of time and handover the reins of further development to the
people.
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MARKETING STRATGY:
Grasim Industries have always endeavored to stay ahead in the competition
by adopting innovative ways of marketing and at the same time maintaining premier
pricing policies of brands.
The cement industry in India has come along way since the deregulation and
subsequent liberalization. The Indian consumers have been hit by tidal waves of
cement brands. This phenomenon of industry consolidation is increasing competition
at the top end. These developments spell increased choice and better quality to
customer.
To serve consumer the best, they started providing knowledge on good
quality concrete and mortar making practices. This led to the launch of
TECHNICAL ASSISTANCE AND SEVICE TO CUSTOMER (TASC) CELL.
Large-scale training programs are organized for masons, site supervisors, and
builders. The cell advises the customers about the availability of different types of
cement, their advantages, and method of proper application.
Cement belongs to the product category where distribution plays a crucial
role in marketing, and then says FMCGS where advertisement plays an equally
important role. So the importance of distribution channel for Grasim Industries
Limited has been rendered in following 3 ways.
Direct marketing where the product is dispatched from factory or the goods
shed to direct customers, this channel is followed only when large quantity is
required for customers.
Indirect marketing Either through trade or non-trade Birla super retail shops
with suitable technical devices.
Usual distribution channel i.e. wholesaler retailer customer network.
SYSTEMS:
The decision-making system within the organization can range from
management intuition, to structured computer systems to complex expert systems
and artificial intelligence. It includes
Computer systems
Operational Systems
Marketing Systems HR Systems etc.
Grasim industry is having its branch office at many places in India so as to
ensure that the required information has been gathered at the right time and at the
right place.
In Grasim Industry the rules governing the employees are explained to each
employee on joining the company. They will be provided with the handbook, which
will be having all the information regarding the company. There are detailed
procedures laid out by the corporate office on procurement of items and supplies,
making travel arrangement, allowances, reimbursements, leave and other
arrangements. In general HR department and the unit heads are responsible for
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ensuring that the staff follows all procedures.
With regard to office systems, all the offices are computerized for the
purpose to enable greater speed and timeliness of the completion of the projects. All
the entries regarding marketing are done online with the help of Internet. So that
there will not be any delay in communication and flow of information.
With regards to performance appraisal system, the company has been
providing many good opportunities to employees for their carrier development. The
company does the performance appraisal by conducting Induction training program
for employees who joins thecompany. Also company conducts training program for
the executives of all the levels one or two times a year. This is conducted in well
known H.R. and Training institute of the company.
QUALITY SYSTEMS
Birla White is the first cement plant to get ISO 9002 QMSCertification
from RWTUV, Germany. It is also IQRS Level-5, Certified from DNV,
NetherlandsQuality is the key-stone for the companys business excellence and
our ultimate goal of total customer ( Internal / External/hidden) satisfaction.
STAFF:
Staff means that the company has hired able people, trained them well and
assigned them to the right jobs. Selection, training, reward and recognition, retention,
motivation and assignment to appropriate work are all key issues.
Grasim Industry entry-level staff are recruited from premier Management
and Engineering institutes through campus recruitment. Each regional unit head visitsthe management and an engineering institute located in their area and does the
recruitment for the company. In entry-level fresher and people with one year or less
than that also considered. Each unit specifies the number and type of people
required
and the recruitment is done as per that specification. The candidates are placed
usually according to their location preference to particular unit or location. The entry-
level recruitment process involves short listing and selecting the candidates based on
resumes group discussion and personal interview.
Middle level staff is recruited from the competing companies in the industry
and also from company within itself. This involves personal interview and usuallygroup discussion.
Senior level recruitment takes place by taking help from marketing
companies or advertising companies or market research companies in the country.
SHARED VALUES:
Shared values means that the employees share the same guiding values.
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Values are things that you would strive for even if they were demonstrably not
profitable. Values act as an organizations conscience, providing guidance in times of
crisis. Identifying corporate values is also the first essential step in defining the
organizations role in the larger community in which it functions.
Shared Values are what engender trust. Values are the identity by which a
company is known throughout its business areas. These values must be explicitly
stated as both corporate objectives and individual values.
The Aditya Birla Group is India's first truly multinational corporation. Global
in vision, rooted in Indian values, the Group is driven by a performance ethic peggedon value creation for its multiple stakeholders. A US$ 8.3 billion conglomerate, with
a market capitalization of US$ 12 billion, it is anchored by an extraordinary force of
82,000 employees belonging to over 20 different nationalities. Over 23 per cent of
its revenues flow from its operations across the world. The Group's products and
services offer distinctive customer solutions. Its 74 state-of-the-art manufacturing
units and sectoral services span India, Thailand, Laos, Indonesia, Malaysia,
Philippines, Egypt, Canada, Australia and China.
A premium conglomerate, the Aditya Birla Group is a dominant player in all
of the sectors in which it operates. Among these are viscose staple fibre, non-ferrous
metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals,fertilizers, sponge iron, insulators, financial services, telecom, BPO and IT services.
S W
O T
STRENGTH:
Emerging as the largest producer in India and 7th largest in the World.
Growing to 31 Mn. TPA with CemCo acquisition.
11 composite plants, 7 grinding units, 4 bulk terminals, 6 RMC plants
Captive power plant at all locations.
Strong national brands. Birla Plus, Birla Super, Birla Ready Mix and Birla
White Leading player in key consuming states of Maharashtra, Karnataka,
Rajasthan, Punjab, Western U.P., Tamilnadu and Western M.P.
Market leader in viscose staple fiber
The fourth largest producer of insulators
The fourth largest producer of carbon black
The eleventh largest cement producer
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Among the most cost-efficient aluminum and copper producers. The fourth
largest aluminum producer in Asia and the largest single location custom
copper smelter
Among the best energy-efficient fertilizer plants
Excellent market position
Domestic market share exceeds 10%
North (12.7%), East(9.2%),West(9.2%) and South(9.6%)
Largest producer of White Cement in India with capacity of 400,000 TPA
(57% market share), 6th largest in the World Asias first gamma ray belt analyzer from Gamma Matrix (USA) ensuring the
highest standards in online quality control.
Indias first polycom (blast furnace slag grinder) with a dynamic air separator
from Krupp Polysius Germany, which helps to generate the desired
homogeneous particle size distribution.
One of the few single kiln cement plants producing more than eight varieties of
cement.
Group With Diversified portfolio certification by quality check leaders like
ISO and TQM
In India, the Group holds a frontrunner position as: A premier branded garments player
The second largest player in viscose filament yarn
A leading player in life insurance and asset management
Among the top three BPO companies
Among the first five mobile telephony players
WEAKNESS:
Supply is not adequate to meet the increasing demand
Stringent Credit Policy
No participation of lower workers in process of strategic planning fixing of
goals and objectives.
No uniform distribution channel for rural areas
Communication between company and local people is not satidfactory
OPPORTUNITIES:
Increase the Manufacturing plants
Increase the Distribution Network
Untapped Rural and Urban Market
Competing with global SMT ( Surface mount technology, Manufacturers)
Entering into inventors and rectifies business.
Opportunity to tap the untapped domestic market and local market (The local
procedures constitute about 30-40% of domestic market)
THREATS:
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Sever competition in Local as well as Global market
Wastage n normal loss is in high quantity
Less number of marketing executives
Demand for computer peripherals is not independent. It depends on the
information technology industry.
As most of raw material are imported their prices and supply depends on the
international market conditions.
In the industry technology changes very rapidly. As a result new and
advanced machines will become absolute in very short period.
5. SUMMARY OF ANNUAL REPORT
BALANCE SHEET AS 31STMARCH, 2006 (Rs. in
Crore)
PARTICULORS 2005-2006 TOTALPrevious Year
SOURCES OF FUNDS
Shareholders Funds
Share CapitalShare Capital Suspense
Reserve and Surplus
Loan Funds
Secured Loans
Unsecured Loans
Document Bills Discounted with
Banks
Deferred Tax Liabilities
TOTAL :-
APPLICATION OF FUNDS
Fixed Assets
Gross BlockLess: Depreciation &
Amortization
Net Block
Capital Work in Progress
Fixed Assets held for disposal
Investments
Current Assets, Loans and
Advances
Interest Accrued on Investments
Inventories
Sundry Debtors
Cash and Bank Balance
Loans and Advances
91.67
0.02
4,890.39
1,331.08
586.27
62.32
6,114.12
3,109.49
3,004.63
293.64
4,982.08
1,979.67
584.38
7,546.13
3,298.27
12.76
3,481.71
91.67 0.02
4,890.39 4,328.35
1,439.02
535.79
33.53
2,008.34 599.50
6,936.19
5,897.04
2,848.17
3048.87 145.94
3,194.81
13.73
2,982.02
1.09
678.59
522.01
86.70
565.54
1.853.93
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Less :
Current Liabilities and Provisions
Liabilities
Provisions
Net Current Assets
TOTAL :
1.46
750.73
413.45
155.58
705.54
2,026.76
969. 15
304.22
1,273.37
753.39
7,546.13
827.89
280.41
1,108.30
745.63
6,936.19
PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31STMARCH,
2006
PARTICULORS 2005-2006 TOTALRs. in Crore
PreviousYear
INCOME
Gross Sales
Less : Excise Duty
Net Sales
Interest & Dividend Income
Other Income
Increase / (Decrease) in stocks
EXPENDITURE
Raw Materials Consumed
Manufacturing Expenses
Purchase of Finished & Other
Products
Payments to Finished for other
Products
Payment to & Provisions for
Employees
Selling Distribution, Administrative
&
Other Expenses
Interest
Depreciation and Amortization
Profit before Tax &Exceptional
Items
Surplus on prepayment of sales tax
loan
Provision for diminution in value of
Investment and loans
Profit Before Tax
Provision for Current Tax
Deferred Tax
Profit After Tax
Debenture Redemption Reserve no
Longer Required
Investment Allowance Reserve no
7,607.20
986.69
6,620.51
67.53
136.71
(43.27)
6,781.27
1,822.69
1,580.34
240.15
407.64
1,139.59
97.32
291.64
5,579.37
1,201.90
7,201.06
971.80
6,229.26
114.75
72.44
100.67
6,517.12
1,873.05
1,498.77
49.02
373.13
938.46
138.76
284.57
5,155.76
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Longer Required
Balance B/F from Previous year
Profit available for appropriation
appropriations
Proposed Dividend
Corporate Dividend Tax
General Reserve
Balance carried to balance sheet
Basic and diluted earning per share
(in Rs.
4.13
.
1,206.03
(369.82)
27.00
863.21
8.62
0.25
815.35
1,687.43
183.35
25.71
600.00
878.37
1,687.43
94.14
1,361.36
34.35
(92.00)
1,303.71
(451.00)
33.00
885.71
6.86
0.16
790.20
1.682.93
146.68
20.90
700.00
815.35
1,682.93
96.60
RATIO ANALYSIS:
PARTICULORS 2004-05 Previous Years Absolute ChangeIn Ratio
Profitability Ratio %:
20.88
22.55
13.00
7.00
16.06
2.20
25.89
25.79
14.53
6.81
11.95
2.05
-5.01
-3.24
-1.53
0.19
4.11
0.15
Operating Profit Ratio-
(Net IBIT / sales)
Gross Profit Ratio-
(Gross Profit/Total Revenue)
Net Profit Ratio-
(Net Profit / Net Sales) X 100
Turnover Ratio:
Inventory Turnover Ratio-
(Cost of Goods Sold / Average
Inventory)
Debtors Turnover Ratio-
{(Average Debtors / Sales )x 365}
Fixed Assets Turnover Ratio-
(Net sales / Net Property, Plant &
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1
GRASIM INDUST
1
Equipment)
1.09
0.40
14.25
19.94
17.36
2.00
1.09
0.46
11.64
25.53
20.99
1.60
0.00
0.06
2.61
-25.59
-3.63
0.40
Solvency Ratio:
Current Ratio-
(Current Assets/Current Liabilities)
Debt Equity Ratio-
(Total Liabilities/Shareholders
Equity)
Interest Covering Ratio-
Performance Ratio%:
Return on Investment-
(Net PBT / Shareholders Equity)
Return on Net worth-
Dividend Yield-(Annual Dividends Per Share/Price
Per Share)
INTERPRETATION OF RATIOPROFITABILITY RATIO:
Operating Profit Ratio:
The operating margin is another measurement of managements efficiency. It
compares the quality of a companys operations to its competitors. A business that
has a higher operating margin than its industrys average tends to have lower fixed
costs and a better gross margin, which gives management more flexibility in
determining prices. This pricing flexibility provides an added measure of safety during
tough economic times.
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Gross Profit Ratio:
Although we are only a few lines into the income statement, we can calculate
our first ratio. The gross profit margin is a measurement of a companys
manufacturing and distribution efficiency during the production process. The gross
profit tells an investor the percentage of revenue / sales left after subtracting the cost
of goods sold. A company that boasts a higher gross profit margin than its
competitors and industry is more efficient. Investors tend to pay more for businessesthat have higher efficiency ratings than their competitors, as these businesses should
be able to make a decent profit as long as overhead costs are controlled [overhead
refers to rent, utilities, etc.]
Net Profit Ratio:
The net profit margin ratio is the most commonly used profit margin ratio. A
low profit margin ratio indicates that low amount of earnings, required to pay fixed
costs and profits, are generated from revenues. A low profit margin ratio indicates
that the business is unable to control its production costs. The profit margin ratio
provides clues to the company's pricing, cost structure and production efficiency.The profit margin ratio is a good ratio to benchmark against competitors.
TUNROVER RATIO:
Inventory Turnover Ratio:
The actual ratios calculated indicate that the total share holders funds are
much lower than total assets which imply that the position of the creditors is safe as
share capital including reserves is lower. In 2004-05 the ratio has been slightly
increased but it does not affect the position of debenture holders.
Debtors Turnover Ratio:
The significance of this varies according to the proportion of cash sales and
account sales. If retail business only sells cash (includes credit cards and cheques)
then this ratio is not relevant at all, as debtors at any point in time will be zero.
However, if sales are all the account customers then the number of days it takes to
collect your debtors is probably the most important key management ratio.
Fixed Assets Turnover Ratio:
The higher the Fixed Asset Turnover ratio, the more effective the company's
investments in Net Property, Plant, and Equipment have become. It may have
to search for the explanation in the financial statements to find out what investments
were made, as large capital investment purchases may not immediately yield higher
sales. It may take a year or more for the company to fully utilize those investments.
If you can clearly see the company invested in major improvements heavily one year,
it would be wise to watch the Fixed Asset Turnover closely over the next year to see
if those investments actually helped the company.
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SOLVENCY RATIO:
Current Ratio:
Current Ratio indicates the relation between C.A & CI and it shows the
firms financial stability or short term solvency of business. The ratios calculated
above clearly indicated that CA are more than CL and the firm is solvent but when
actual are compared to standard i.e. 2:1. They are below the industry standard,steps may be taken to improve current assets to reach the std. Ratio.
Debt Equity Ratio:
This establishes the relationship between outsiders funds and shareholders
funds the acceptable norm for this ratio is 2:1. The actual ratios calculated for the
year 04-05 are 0.40:1 and 0.46:1 respectively and they are above the std. ratio a
low ratio indicates lower claims by creditors than owners. The company has less
claim from creditors than owners as it is apparent from ratios calculated.
PERFORMANCE RATIO:
Return on Investment:
A performance measure used to evaluate the efficiency of an investment or
to compare the efficiency of a number of different investments. To calculate ROI, the
benefit (return) of an investment is divided by the cost of the investment; the result is
expressed as a percentage or a ratio. Return on investment is a very popular metric
because of its versatility and simplicity. That is, if an investment does not have a
positive ROI, or if there are other opportunities with a higher ROI, then the
investment should be not be undertaken.
Return on Net worth:
Return on Net Worth : Net After Tax Profit divided by Net Worth, this is
the 'final measure' of profitability to evaluate overall return. This ratio measures return
relative to investment in the company. Put another way, Return on Net Worth
indicates how well a company leverages the investment in it. May appear higher for
startups and sole proprietorships due to owner compensation draws accounted as
net profit.
Dividend Yield:
Dividend yield is a way to measure how much cash flow you are getting for
each dollar invested in an equity position - in other words, how much "bang for your
buck" you are getting from dividends. Investors who require a minimum stream of
cash flow from their investment portfolio can secure this cash flow by investing in
stocks paying relatively high, stable, dividend yields
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LEARNING EXPERINCE
1. I have learnt about the implication & importance of product layout which is
followed in aditya birla cement.
2. I gained the practical knowledge of 6 Sigma
3. Through the study I got the knowledge of how heterogeneous market is divide
into homogenous market.
4. I came to know about the logistic management which is success performed in the
Grasim Industry.
5. Grasim has an exposure to global market through which I understood the
marketing operation in international market.
6. I gained the knowledge of resolving grievance handling through collective
bargaining.
7. Monetary benefits are given to employees for motivation. This help me to gain
knowledge of techniques of motivation.
8. I got the partial knowledge of forecasting future sales for a companys products
9. Performance of understood about the various techniques of performance
appraisal i.e. 360 appraisal, comparison method which is successfully
implemented
10. I have gained the practical knowledge regarding various training method such as
vestibule training lecture method.etc.
11. The study helped me to understand participative style of management which as
followed in Grasim.
12. In Grasim trade union is affiliated to AITUC. I got the knowledge of functioning
of trade union in industry.
13. I got the practical knowledge of FIFO method for material handling.
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14. Grasim uses both internal and external sources for recruitment this helped me to
know which source should be used for gaining quality work force.
15. I gained the knowledge regarding distribution strategy that has to be
implemented in the industry.
16. The study tells that how the company sales executives, marketing managers are
handles the market
17. As per study I understood that the marketing manager gets the target and reach
there targets
18. I got the knowledge of the company forecast the market according to there
demand and there sales
BIBLIOGRAPHY
Organization Behavior 6thEdition Himalaya Publishing House
by K. ASHWATHAPPA.
Organization Behavior 11thEdition
by Stephon P. Robins
Strategic management, By Alex Miller.
Annual Report of Grasim Industries Limited
Web Sites:
www.aidityabirla.com[http://www.aidityabirla.com/]
www.grasimindustries.com
www.google.com [http://www.google.com/]
www.wikepedia.com[http://www.wikepedia.com/]
CONCLUSION
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Cement is one of the important materials in house construction and costs 12 to15%
of cost. Cement is used in more of less all the important like Roof slab, beams,
columns, lintels, brickwork and flooring. Cement imparts both strength and makes
the building component strong.
There are many companies which produce cement and sell the same under different
brand name. The cement produced by the different companies differ in some
attributes like quality, setting time, strength etc and they sell it at different prices.
So it is up to the organization to find out why customer buys particular brand of
cement at particular price. This study helps the organization to find out the main factors considered while
buying the particular brand of cement. The results of the study can be used to align
the production and supply to be in line with customers expectations. By doing so
company can increase its market share by adding more customers and can retain
them very easily.
Posted 9th February 2012by advaitha
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