Project Report On Cci
Project Report On Cci
Project Report On Cci
Introduction
Cement is a key infrastructure industry. It has been decontrolled from price and distribution on first march, 1989 and delicensed on twenty fifth July, 1991. However the performance of the industry and price of cement are monitored regularly. The constraints faced by the industry are reviewed in the infrastructure coordination committee meating held in the cabinet secretariat under the chairmanship of secretary (coordination). Its performance is also reviewed by the cabinet committee on infrastructure.
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Export
Apart from meeting the entire domestic demand, the industry is also exporting cement and clinker. The export of the cement during 2001-2002 and 2003-2004 was 5.14 million tones and 6.9 tons respectively. Exporting during April-may, 2003 was 1.35 million tones. Major exporting were Gujarat Ambuja Cement Ltd and L&T Ltd.
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Technological change
Cement industry has tremendous strides in technological up gradation and assimilation of latest technology. At present ninety three per cent of the total capacity in the industry is based on modern and environment friendly dry process technology and only seven per cent of the capacity is based on old wet and semi- dry process technology. There is tremendous scope for waste heat recovery in cement plants and thereby reduction in emission level. One project for co-generation of power utilizing waste heat in an Indian cement plants is being implemented with Japanese assistance under green aid plan. The inaction of advanced technology has helped the industry immensely to conserve energy and fuel and to save materials substantially. India is also producing different varieties of cement like ordinary Portland cement , Portland pozzolana cement (PPC), Portland blast furnace slag cement (PBFS), oil well cement ,repid hardening Portland cement, sulphate resisting Portland cement, white cement etc. production of these verities of cement conform to the BIS specifications. It is worth mentioning that some cement plants have set up dedicated jetties for promoting bulk transportation and export.
HISTORY
India, being the second largest cement producer in the world after China with a total capacity of 151.2 Million Tons (MT), has got huge Cement Company. With the government of India giving boost to various infrastructure projects, housing facilities and road networks, the cement industry in India is currently growing at enviable Cement is a key infrastructure industry. The cement industry in India is dominated by around 20 companies, which account for almost 70% of the total cement production in India. In the present year, the Indian cement companies have produced 11 MT cement during April-September 2009. It took the total cement production in FY09 to 231 MT.
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Industrial Background
The history of the cement industry in India dates back to the 1889 when a Kolkata-based company started manufacturing cement from Argillaceous. But the industry started getting the organized shape in the early 1900s. In 1914, India Cement Company Ltd was established in Porbandar with a capacity of 10,000 tons and production of 1000 installed. The World War I gave the first initial thrust to the cement industry in India and the industry started growing at a fast rate in terms of production, manufacturing units, and installed capacity. This stage was referred to as the Nascent Stage of Indian Cement Company. In 1927, Concrete Association of India was set up to create public awareness on the utility of cement as well as to propagate cement consumption The cement industry in India saw the price and distribution control system in the year 1956, establish to insure fair price model for consumer as well as manufacturer. Letter in 1977, government authorize new manufacturing units (as well as existing unit going for capacity enhancement) to put a higher price tag for their products. A couple of year later, government introduces a three-tire pricing system with different pricing on cement production in high, medium and low cost plants Cement industry, in any country, plays a major role in the growth of nation. Cement industry in India was under full control and supervision of the government. However, it got relief in the large extent after the economic reforms. The government interference, especially in the pricing, is still evident in India. In spite of being the second largest cement producer in the world. India falls in the list of lowest per capita consumption of cement with 125kg. the reason behind this is the poor rural people who mostly live in mud huts and cannot afford to have the commodity. Despite the fact, the demand and supply in India has grown up. In the fast developing country economy like India there is always large possible of expansion of cement industry.
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Major players
There are number of players prevailing in the cement industry in India. However, there are around 20 big names the accounts for more than 70% of the total cement production in India. The total installed capacity in distribution over around 129 plants, owned by 54 major companies across the nation. 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 Cement Birla Corp. Production 17902 15094 13707 14649 8434 6174 6316 6636 4550 5150 Installed capacity 18640 14860 17000 14115 8810 6680 6531 6300 5470 5113
Present scenario
Post 1990s have seen a sea of change in the industry policy in India. The over protective Indian markets were opened to foreign companies and investors. Thus Indian industry registered an imperative growth during the last decades and half. The number of industry in India have population, it was realize
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COMPANY PROFILE
Cement Corporation of India Limited (CCI) was incorporated as a Company wholly owned by Government of India on 18th January 1965 with the principal objective of achieving self sufficiency in cement production. The authorized and paid-up capital of the company as on 31.3.2010 was Rs. 900 crore and Rs. 811.41 crores respectively. CCI is a multi unit organization at present having ten units spread over eight states with a total annual installed capacity of 38.48 lakh MT. All Factories, Zonal Offices and Corporate Office at Delhi are inter connected through Internet. In line with the advancement in cement technology CCI had been adopting the latest one with one million tone plants at Tandur and Nayagaon. CCI manufactures various types of cements like Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC) & Ordinary Portland Cement (OPC) of varying grades via 33, 43, 53 and 53S (special grade cement for manufacture of sleepers for Indian Railways) grades. Under strict quality control with the brand name of CCI Cement. CCI with a strong work-force of 1079 employees (as on 31.03.2010) has always encouraged balanced regional growth with most of its factories located in underdeveloped/backward areas. CCI has also been contributing to the development of areas around factories by adopting nearby villages and providing the basic facilities like school, health center, drinking water etc. For maintaining the ecological balance CCI is launching massive tree plantation drives from time to time at all units and in surrounding areas.
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CCI has established a wide network of ten units with total capacity of 38.48 lakh tones of cement per annum. The units are spread throughout the country from east (Bokajan in Assam) to west (Akaltara, Mandhar in Chhattisgarh and Nayaagon in Madhya Pradesh) and from North (Rajban in Himachal Pradesh and Charkha Dadri in Haryana) to South (Kurkunta in Karnataka and Adlibbed, Tandur in Andhra Pradesh), with one cement grinding unit in Delhi. state and national highways, the cement industry has witnessed tremendous growth. Production capacity has gone up and top cement companies of the world are vying to enter the Indian market, thereby sparking off a spate of mergers and acquisitions. Indian cement industry is currently ranked second in the w9rld. The origins of Indian cement industry can be traced back to 1914 when the first unit was set-up at Porbandar with a capacity of one thousand tones. Today cement industry comprises of one hundred twenty five large cement plants and more than three hundred mini cement plants. The Cement Corporation of India, which is a Central Public Sector Undertaking, has ten units. There are ten large cement plants owned by various Central Governments. Cement industry in India has also made tremendous strides in technological up gradation and assimilation of latest technology. Presently, 93 per cent of the total capacity in the industry is based on modern and environment-friendly dry process technology. The induction of advanced technology has helped the industry immensely to conserve energy and fuel and to save materials substantially. Indian cement industry has also acquired technical capability to produce different types of cement like 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.
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CCI in India is currently going through a consolidation phase. CCI was incorporated as a Company wholly owned by Government of India on eighteen January 1965 with the principal objective of achieving self sufficiency in cement production. The authorized and paid-up capital of the company as on 31.3.2006 was Rs. 700 cores and Rs. 429.28 crores respectively.
2.3 Nature of Business The Indian cement industry with a total capacity of about two hundred m tones (MT) in FY09 is the second largest market after China. Although consolidation has taken place in the Indian cement industry with the top five players controlling almost 60 percent of the capacity, the balance capacity
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still remains pretty fragmented. Despite the fact that the Indian cement industry has clocked production of more than one hundred MT for the last five years, registering a growth of nearly 9 percent to 10 percent, the per capita consumption of around 134 kgs compares poorly with the world average of over 263 kgs, and more than 950 kgs in China. This, more than anything, underlines the tremendous scope for growth in the Indian cement industry in the long term. Cement, being a bulk commodity; is a freight intensive industry and transporting cement over long distances can prove to be uneconomical. This has resulted in cement being largely a regional play with the industry Divided into five main regions viz. north, south, west, east and the central region. While the southern region always had excess capacity in the past owing to abundant availability of limestone, the western and northern regions are the most lucrative markets on account of higher inc.ome levels. However, with capacity addition taking place at a slower rate as compared to growth in demand, recently the demand supply parity had also been restored to some extent in the Southern region. Considering the pace at which infrastructural activity is taking place in different regions, the players have lined up expansion plans accordingly. Given the high potential for growth, quite a few foreign transnational's have been eyeing the Indian markets and are planning to acquire domestic companies. Already, while companies like Lafarge, Heidelberg and Italicementi have made a couple of acquisitions, Holcim has acquired stake in domestic companies Ambuja Cements and ACC and has increased its stake gradually to gain full control. After acquiring stake in big companies,
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transnational eyed median capacity producers. Italcementi acquired 100 percent stake in Zuari Cement and 95 percent stake in Shree Vishnu. Cimpor, the Portugese cement manufacturer, acquired Grasim's stake (53.63%) in Shree Dig Vijay. However, it must be noted that the transnational's will find the going tough since cement is a game of volumes and with the median capacity of fragmented players, the transnationals will have to acquire capacities piecemeal and this route is fraught with a lot of uncertainties. The global players put together account of quarter share of the domestic market. Further, turning around few of the companies at a time when the cycle is at its peak would be a difficult task.
Capacity: 2, 47,000 MT per Annum Process: Dry process Type of Cement: Ordinary Portland cement,
Pozzolona Portland Cement.
Commencement of Production: 01.04.1980 Facility Available : Own township having 449 Nos. of residential
accommodation with facilities of health centre, shopping complex, recreation
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club, Guest house, Bank, Post office , LPG Shop, Telephone exchange and cooperative store.
Employees as on 01.07.2011:
i) Executives : 19 ii) Supervisors: 43 iii) Workers : 171
Sales & despatches and accretion/(Discretion) to stock ---6834.04 (Rs. in Lakhs) Other Income -----213.92 (Rs. in Lakhs) Raw Materials Consumed -------713.12(Rs. in Lakhs) Stores and Packing material consumed ---------382.76(Rs. in Lakhs) Emp. Remuneration & Benefits -------1119.22 (Rs. in Lakhs) Interest --------20.95 (Rs. in Lakhs)
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Depreciation --------93.85 (Rs. in Lakhs) Other Manufacturing Expenses ----------3608.23 (Rs. in Lakhs) Profit (+)/Loss (-) --------1109.83 (Rs. in Lakhs) Reserves & surplus --------- 7092.57 (Rs. in Lakhs) Net Fixed Assets --------- 1736.94 (Rs. in Lakhs) Current Assets -------3050.69 (Rs. in Lakhs) Current Liabilities & Provision --------3318.95(Rs. in Lakhs) Capital W.I.P --------196.83(Rs. in Lakhs) Capital Employed---------1468.68(Rs. in Lakhs)
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Key Points
Supply
The demand-supply situation is tightly balanced with the latter being marginally higher than the former.
Demand
Housing sector acts as the principal growth driver for cement. However, in recent times, industrial and infrastructure sector have also emerged as demand drivers for cement.
Barriers to entry
High capital costs and long gestation periods. Access to limestone reserves (principal raw material for the manufacture of cement) also acts as a significant entry barrier.
Competition
Due to large number of players in the industry and very little brand differentiation to speak of, the competition is intense with players resorting to expanding reach and achieving pan India presence
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COMPETITORS
L&T cement plants AC ltd cement plants Gujarat ambuja plants JK cement plants JK Lakshmi cement Madras cement India cement Shangri industries Dalmia cement ITD cementation India Dalmia cement Bharat Ultratech cement Relience cement plant India cement plant Birla group Jaypee group Tata group cement Century cement Grasim cement plant
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Board of Directors
Mr. A.K. SRIVASTAVA Mr. R.K. HARKAWAT Mr. R.P. TAK Mr. SURAJIT MITRA Mr. R. ASOKAN Mr.Maj. Gen. (Retd.) UMESH KUMAR JHA Chairman Director (PERSONAL) Director (FINANCE)
HEAD OF DEPARTMENT
Mr. SARSVATI PARSAD Mr. R.N. CHAUHAN Mr. S. PUROHIT Mr. V.K. SINGH Mr. O.P. SONI Mr. RAMENDRA SINGH Mr. R.R DESHPANDE (Chief Vigilance Officer) (Addl. G.M.) (DGM Finance) (DGM MM) (CMO) (SR. Manager personal)
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VISION
To be known for producing quality cement. Self sufficiency in cement production.
MISSION
Ensure customer delight Involve employees as partners in progress Set new standards in good corporate citizenship
OBJECTIVES
To achieve a pioneering and leading position in the exploration,
prospecting and proving cement grade lime stone reserves and deposits to sustain ambitious growth plan of the corporation, in particular and of the cement industry, in general To emerge as a growing and important leader in the production of cement in the country by creating additional capacity ether by expansion are by improved technology are by starting by new cement plants To emerge as a leader in sating up capacities in deficit/remote area for removing existing regional imbalance of production and consumption
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To emerge, resultantly as the largest seller of cement in the country and to continue to perpetuate and improve upon the same position by constant increase in the production capabilities. To develop and enter export market for export of cement particularly, to neighboring South East Asian countries. To undertake detailed and scientific scanning of the marketing potentialities for development and diversification into areas of cement based building materials such as AC sheets, pipes, sleepers, ready mixed concrete and to undertake appropriate research studies for development of other building binding materials as a substitute for cement. To occupy position both of dominance and eminence in the Research and Development in different fields of cement technology and process and also bring about new innovations in the design, layout and other technical specifications of new cement plants and other related auxiliary inputs to the cement industry. To develop capability and to sustain, perpetually, sound technical and engineering knowledge to render technical Consultancy services both in the field of plant layout as well as in the cement process technology both within and outside the country. To develop expertise and sustain sound practices in project management by application of modern management techniques of planning,
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monitoring review and process of the projects undertaken to ensure their completion within sanctioned costs without any time overrun. To ensure sound commercial policies, customers acceptance and satisfaction for the Corporation's products and other services.
To develop confidence in the customers and to sell products/services of high quality and prices determined from time to time by the Government and to sustain a sound image for the products supplied and services rendered which are the results of latest sophisticated technology and manufacturing techniques. To generate a participative culture and management style which will create good in-house working conditions and job satisfaction to all employees, to ensure fair wages commensurate with their performance, create a sense of involvement and belonging to the Corporation, instill a sense of confidence in the matter of their career growth and advancement and create an atmosphere of mutual respect and goodwill amongst all sections of the employees. To sustain continuous development of managerial talent so as to ensure their best contribution in the matter of utilization of resources placed and their disposal for managing and to provide adequate training and development opportunities for all our workmen. To develop organization structure with well defined objectives and responsibilities to create an atmosphere where freedom to function and flexibility to perform is ensured for all according to their ability,
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capacity, resourcefulness and initiative. To develop internal resources to sustain future growth of the Corporation as envisaged. To put in its humble mite and fulfill its social and community obligations by pursuing national policies in regard to development of rural and backward areas to the extent resources of the Corporation could be deployed. To review from time to time the environmental impact of setting up of our industries and to continuously find ways and means to offset minimize impact of such environmental pollution
2.7 Product Profile CCI manufactures various types of cements like ordinary Portland Cement (OPC) & Pozzolana Portland Cement (PPC) of different grades via 33, 43, 53 grades under strict quality control with the brand name of CCI Cement. Salient characteristics of different types of cement produced by CCI are:
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CHARACTERISTICS
1987 3000
Setting time (minutes) a. b. Initial not less 30 than Final not more 600 than 30 600 30 600 30 600
Soundness Expansion by a. b. Le-Chatelier (mm) 10.0 (max) Autoclave (%) 10.0 (max) 0.8 (max) 10.0 (max) 0.8 (max) 10.0 (max) 0.8 (max) 10.0 (max) 0.8 (max)
Minimum compression strength (Kg/cm2) a. b. c. 3 days 7 days 28 days 270 370 530 230 330 430 160 220 330 160 220 330
In CCI CEMENT quality parameters namely fineness & compressive strength are maintained 15-20 percent over and above the prescribed BIS specifications.
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2.8 Area of Operation Cement production markets have become global markets. The large corporate buyers are interested in buying cement companies all across Europe. We help business owners of cement companies directly in the sale or purchase of a company. Corporate Finance in Europe knows the European cement market very well. We know the main decision makers (CEO's, CFO's and board members or PE investors behind them) at cement companies. We like to show you that we understand the cement market, the relevant synergies and plans of the different buyers. We are up to date with the latest and most realistic valuations that currently occur in the market. With this knowledge we can not only help you in finding the buyer that pays the highest price, but also ensure you to find the most suited strategic partner for your business for the long run. We can help you through the complete process if you want to sell a cements business.
The effects of the recession on cement production The recession was originated in the US financial system and the housing market and has rapidly spread its efforts across the world. Later on this affected the real economy due to the shrinking of global demand trade flows. The decreasing activity in the construction sector will decrease the world wide cement production volume in advanced economies and lower growth rates in emerging markets.
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2.9 Manufacturing Strategy Asbestos is a naturally occurring mineral that exists in abundance in numerous countries around the world. The material can be found in the soil or in exposed outcroppings of rock, and it exists in a variety of types, chemical compositions, and colors. Asbestos is a strong, virtually fireproof, and highly corrosion resistant material that has fascinated and served mankind for thousands of years, but in the late nineteenth century, its commercial use began to increase. In the late 1880s, several asbestos-containing composite products and materials began to enjoy popularity in the United States and around the world, and one of the most welcomed and widely utilized of these items was asbestos cement. Asbestos-cement is a mixture of primarily chrysotile or white asbestos and Portland cement. Because asbestos has a very high tensile strength and superior resistance to degradation from corrosive chemicals, it was considered to be an excellent additive to the particular chemical matrix of Portland cement. Depending on the specific use or application of the finished product, the ratio of asbestos to cement can vary from between 10 to seventy-five percent by weight. Once the cementitious product is fully cured, the asbestos fibers are bound in a hard. mass that is stable and durable. One of the earliest asbestos-cement products that had appeared in the United States went on the market in 1905, and it was in the form of a coating that had been developed by H. W. Johns Manufacturing Company (later to be known as Johns-Manville). The asbestos-cement coating had originally been promoted as a highly effective roof repair material that could add years of life to roofs that were once thought to be beyond repair. Often sold as a convenient, premixed paste, asbestos-cement soon became the low cost
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material of choice for roof and flashing repairs or waterproofing around chimneys, skylights, roof vents, drainage scuppers, etc. 2.10 Achievement The excellence award instituted by the Institute of Economic studies (I.E.S.), New Delhi was conferred on corporation in March, 2005 for achieving Excellence in Productivity, Quality, Innovation and Management. Manual Limestone Mine in Mines Safety Weeks (MSW) and Mine Environment & Mineral Conservation week (MS & MCW) participated in various competitions from 2002-03 onwards and various prizes were won in consecutive years from 2001 onwards till date.
A. Various Prizes were won by Rajban Unit organized by Directorate of Mines Safety Ghaziabad Region as detailed below.
2004-05 1. Mine working & Roads 2. Explosives 3. Training & Personnel 4. Overall Performance First Third Second First
2006-07 2007-08 Second First Third First Third Third Third First
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5. Publicity & Propoganda First 6. Noise & Air Pollution 7. Welfare, House-keeping
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Third First
and Protective Equipments B. Mines Environment & Mineral Conservation week organized by Indian Bureau of Mines, Dehradun Region for the year 2004-05, 2005-06, 2006-07 & 2007-08. "DHRUV" Trophy for Large Mechanized Mine for extra-ordinary efforts for the protection of Environment & Mineral Conservation.
C. Various Prizes were won by Tandur Unit for mines safety (DGMS awards for group large mechanized mines) & mines environment and ,mineral conservation (IBM awards) as detailed below 2006-07 Mine Working Top Soil & Water Quality Management Air Quality Management Second Prize Second Prize First Prize 2007-08 Second Prize Second Prize -
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Following prizes were won by Bokajan Unit during "North East Mine Environment and Mineral "Conservation" A forestation Reclamation & Rehabilitation 2007 -08 Third Prize First Prize
D. Following Prizes were won by Bokajan Unit during mines safety week for the Year 2005-06 Open Cast mines Working Publicity and Propaganda General Health & Welfare Drilling & Dumper Operations Overall mines Performance Mines Survey & records Third Prize Second Prize First Prize Third Prize Second Prize Second Prize
The Bokajan unit won the First Prize in "Mines Waste Dump Management" among North-East Mines during Mines Environment Conservation Week under the guidelines of Mines Statutory Body "Indian Bureau of Mines".
Industrial Relations Award' for the year 1993-94 for promoting sound industrial Relations environment. 4. May Day Award 1994.' 5. Bokajan Cement Factory has bagged the National Safety Award for the year 1990. 6. Kurkunta Cement Factory has bagged the National Award for energy efficiency in Cement Industry for the year 1989-90 awarded by the National Council of Cement & Building Materials (NCCBM) in association with Ministry of Energy. 7. CCI has been awarded second prize under Indira Gandhi Raj Bhasha Award for 1987-88 for outstanding achievement in promoting the official language policy of the Government. 8. The Annual Report and Accounts (1986-87) of the Company were highly commended and awarded the plaque by the Institute of Chartered Accountants of India (1988). 9. CCI has been awarded the International Asia Award 1984 in consultation with the Chamber of Commerce and Industry for distinguished contribution towards development and evolution of economy in Asian Area (1984). 10. The Annual Report and Accounts (1982-83) of the Company were highly commended and awarded the plaque by the Institute of Chartered Accountants of India (1984). 11. Mandhar Cement Factory was selected for productivity award (second best among all cement factories) by the National Productivity Council for the overall productivity for the year 1983.
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12. Kurkunta Cement Factory which had operated at more than 110 percent capacity during 1982-83 was adjudged by the National Productivity Council as best among all factories in Cement industry for its highest overall productivity in the productivity year 1982.
13. Mandhar Cement Factory was adjudged by the National Productivity Council as the best in terms of 'Energy Conservation' which is one of the core factors of productivity, for the year 1982.
14. The Annual Report and Accounts (1980-81) of the Company were adjudged. the best and awarded the silver shield by the Institute of Chartered Accountants of India (1982.)
15. The Annual Report and Accounts (1979-80) of the Company were highly Commended and awarded the plaque by the Institute of Chartered Accountants of India (1981.)
16. The Annual Report and Accounts (1978-79) of the Company were highly Commended and awarded the plaque by the Institute of Chartered Accountants of India (1980.)
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ORGANISATION CHART
Director (PER)
Director (FIN)
Director (MKTG)
Director (OPNS)
CMP
DGM (FIN)
ZM North
ZM East
ZM South
Manager Mktg.
Addl. GM
D.G.M. (M.M)
D.G.M. (OPNS)
Sr.Mngr. G&M
.
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and development of non conventional energy sources to the adopted nearby villages. In the commitment of environmental improvements, CCI has been developing parks, play grounds and is also planting/rearing trees As part of anti-pollution measures, CCI is committed to make the environment around its factories dust free by installation of ESP systems in the old plants not having this facility.
All new plants have these systems already. The Conventional measurement of profitability and growth as reflected in the profit & loss statement and the balance sheet is not adequate enough to reveal extent of contribution business houses had made to the community in discharge of its responsibility to various facets of society. It may perhaps take some more years before we develop suitable techniques for measuring social and community contribution with relative degree of confidence and accuracy. Nevertheless, we have taken inspiration from standards and concepts evolved by David F. Linowes and the Abt, Associates Annual Report 1972 which provide guidelines to draw social statement of various social events enervating as by-products of a business activity. CCI has been making efforts to bring out "Social Account" by drawing upon the guidelines of "Abt: Associate Annual Report 1972' with such modifications as considered suitable. This is the Twenty 3rd year in succession in which such an account is being projected and included in the Annual Report of the Company. The Social income statement comprises three sub statements each showing Company's social impact separately on staff, community and the general public comparing the benefits vis-a-vis the detriments (Costs) to the Society. In this connection, it may be taken note of that Social Accounts are "Society's statements" and not of the Company, as they portray the total social benefits drawn by the Society from the
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Company's multifarious operations as well as the detriments developed on the society due to the Companies activities.
The Environment
From the outset, CCI has believed that a cement plant cannot flourish at the cost of the environment. That's why it adheres to the most rigorous international environmental norms. The pollution levels at all its cement plants are even lower than the rigorous Swiss standards of 100 mg/NM3. At the Himachal Pradesh plants, surface miners have been employed to scrape the surface of the mines. Thus ensuring that all the mining is totally blast free. There is no noise or air pollution.
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FUNCTIONAL DEPARTMENTS
HUMAN RESOURCE DEPARTMENT FINANCE DEPARTMENT PRODUCTION DEPARTMENT MARKETING DEPARTMENT PURCHASE DEPARTMENT QUALITY ASSURANCE DEPARTMENT
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age of our employees comes to50 years. The broad distribution of CCI human is as under:
Administrative Department Mr. A.K. Srivastava is the Chairman and Managing Director and including them, CCI is having six Board of Directors. All the major policies and decisions are framed by administration department. CCI policies (top to bottom), intake of new employees, market policies is taken by Administration Department. The department is having the strength of highly intelligent six members forming a cutting edge team. Presently CCI is trying to increase its business in market and as well as capturing more shares of domestic market. Production is the functional
3.2 Production Department Area responsible for turning inputs into finished outputs through a series of production processes. The Production Manager is responsible for making sure that raw materials are provided and made into finished goods effectively. He or she must make sure that work is carried out smoothly, and must supervise procedures for making work more efficient and more enjoyable. Five Production Sub-Functions In a manufacturing company the production functions may be split into five sub functions:
The production and planning department will set standards and targets for
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each section of the production process. The quantity and quality of products coming off a production line will be closely monitored. In businesses focusing on lean production, quality will be monitored by all employees at every stage of production, rather than at the end as is the case for businesses using a quality control approach. The purchasing department will be responsible for providing the materials, components and equipment required. to keep the production process running smoothly. A vital aspect of this role is ensuring stocks arrive on time and to the right quality. The stores department will be responsible for stocking all the necessary tools, spares, raw materials and equipment req~ired to service the manufacturing process. Where sourcing is unreliable, buffer stocks will need to be kept and the use of computerized stock control systems helps keep stocks at a minimal but necessary level for production to continue unhindered. The design and technical support department will be responsible for researching new products or modifications to existing ones, estimating costs for producing in different quantities and by using different methods. It will also be responsible for the design and testing of new product processes and product types, together with the development of prototypes through to the final product. The technical support department may also be responsible for work study and suggestions as to how working practices can be improved. The production department will be concerned with the manufacture of products. This will include the maintenance of the production line and other necessary
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repairs. The works department may also have responsibility for quality control and inspection. A key aspect of modern production is ensuring quality. The term quality means fitness for purpose i.e. a product; process or service should do exactly what is expected of it.
Process of manufacture:
Production utility and services departments of the product: The factory manufactures ordinary Portland cement and dozzolana cement by adopting Dry Process High grade limestone is mined at the companys mines located at about 12 kms from the factory. The mining operations are mechanized. The limestone mind is in the form of boulders of 300 mm to 450 mm size. These are transported by road. By contractor to crusher located at about 2 kms away from the mines face. The boulders are crushed to less than 25 mm size and transported to the factory by means of a by cable ropeway of which each bucket is of 1.5 tones capability. The crushed limestone on receipt at the factory is stacked in piles at the qantry. From the qantry it is fed to a hopper by travel crane. Correcting materials such as iron ore/dust. Shale, and sandstone are added to the limestone and fed to the raw mill. In the raw mill the limestone along with the additives is ground to the fines which is known as raw meal. The air separator in the raw mill separates the fines and coarse materials are again fed to the raw mill. The silos have two compartment blending silo and storage silo. Compressed air is circulated continuously for 4 to 5 hours in the blinding silo to homogenize the raw mill. The homogenized raw meal is stored in storage silo.
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From the storage silo, the homogenized raw meal is pumped to the preheated by FK pump through screw conveyor elevator and weigh feeder. The preheated is four stage suspension type. Hot air is circulated by ID Fan through cyclones in four stage to achieve the desire temperature. The raw meal from the preheated is fed to rotary kiln from one end, pulverized coal is fed from other end. Clinker is formed in the coal. Clinker is formed in the form of granules at about 14000. Decarbonation also takes place at this stage. The clinker is cooled to 400oc in the planetary coolers and stored in the gantry mill through conveyor belts. Other materials likes qypsum, brick bats, fly ash, rice husk ash etc, are also stored in hoppers, the clinker, alongwith these other additives, required is fed to the cement mill through feed tables from the hoppers. The additives will depend on the quality of cement to be produced pozzolana or ordinary materials are ground to fines by rotation. The ground cement is stored in silos. Compressed air is circulated continuously inside the silo to keep the cement intact. The cement is extracted from the silos through screw conveyor and elevated to the fluxo machine hopper. The cement is packed in bags by rotary fluxo packer, each bag containing 50 kg of cement.
Total quality management Every employee is expected to take responsibility for managing quality issues in order to make sure that waste is minimized and quality maximized. This is often referred to as total quality management and is part of the lean production methods used in modern industry. For businesses to be competitive, Production and Marketing need to work in an integrated way. Marketing is concerned with knowing and understanding the requirements of customers, so that Production can provide the market led products
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that are required. This also requires excellent communication systems to be in place. Incumbent is primarily responsible for the effective operations of quarries, raw mills, kilns, cement mills, dispatch, plant for truck and rail wagons, and process control of production lines. Incumbent is accountable to Plant Manager for all matters related to Production Department. Duties Performed Plans, directs and supervises the activities of personnel assigned to Production Department. Performs supervisory functions and exercises authority at the Department Head level as established by management. Plans, directs and coordinates the development of a product mix to ensure smooth operation and reduced costs of prime quality products. Includes reviewing, analyzing and evaluating the use of various raw material alternatives in the production process and determining the costs and benefits of using such alternative raw materials. Coordinates and ensures the efficient planning for production and quality control of Type I & Type V cement and/or Oil Well cement. Includes coordinating with Marketing for determining quantity requirements for the various types of cement. Coordinates with the respective maintenance organizations to ensure that Plant equipment and machinery will be readily available for production purposes in line with the production plan. Initiates and directs studies to determine raw materials availability at Company quarry areas, normally the gypsum, limestone and clay quarries.
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Such studies are to determine the quantity and quality of raw materials available at areas designated for the quarries. Initiates and directs studies designated to improve the productivity and efficiency of raw mills, kilns and cement mills. Such stu<;lies include but are not limited to methods of increasing refractory brick life, use of grinding media, methods of reducing fuel requirements, reducing waste of products such as kiln dust, etc. Studies must clearly show the cost! benefit of such improvements. Monitors results of tests performed by Quality Control Division and directs corrective actions for causes of variances in the quality of the products produced at different stages of the process. Also ensures effective coordination between Quality Control Division and respective Divisions within the Department on matters related to process and quality control.
Work Contacts Have regular contacts with various Department and Division Heads in Operations and with Deputy General Manager, Marketing for coordination of Department dispatch operations. External contacts are limited to Production personnel of other Companies and suppliers of refractory bricks, raw materials, grinding media, kiln chains, etc.
Independence of Operation Reports to Plant Manager. Works under broad directives, policies and
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professional standards. Work accomplishments are subject to review by Plant Manager. Confers with Plant Manager on matters of importance related to Production Department.
3.3 Financial and Accounting Management The importance of finance in the business is same as the importance of the spring in the clock. Finance is required from the starting of the business until it terminates, as a means of the business transaction. Finance is the blood of the business without which an enterprise cannot survive. "Finance is that administrative area or set of administration function in an organization which relates the arrangement of cash and credit so that organization may have the means to carry out its objective as satisfactory as possible".
Meaning of Financial Management Financial management is the concern with the managerial decision that results in the acquisition and financing of long term and short term credit of the firm. Financial management is a managerial activity, which is concern with planning and controlling of the firm financial resources. In L.D.P.M., there is a separate department of finance and Accounts, which handles different financial transactions and keeps on track of the revenues and expenses of the company. The finance department manages by top level management.
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Sources of Finance Sources of finance means medium through which the business enterprises gets the finance for establishment and for smooth running of the business. There is two type sources of which is given below Long-term Sources of Finance It is a source of finance, which is required for long time and it is a permanent source of finance.
Need for Long Term Finance Any business organization needs finance mainly for two reasons To finance long-term requirements. To finance day-to-day short-term working capital requirements. The long-term requirements for finance include funds required for Setting up of the firm. Expansion. Modernization. Diversification. Replacement of existing machines. Other similar capital expenditure decision. Actually, L.D.P.M is the private organization which is family managed. Therefore, they do not issue any share to the public. They issue shares within their relatives
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and friends. Short-term Sources of Finance Short-term source of finance is a fund, which is required to the firm for their dayto-day operation or smooth working of the organizations operations. In a current era, major firm's use following sources for their short-term requirement Commercial Paper Certificate of Deposit Inter corporate Deposit Factoring Bank Loan
Following source of finance used by L.D.P.M. for their short term requirement of fund Bank Loan Cash Credit (C.C.)
3.4 Marketing Department Marketing Policies From time to time, advertisements are released by our Zonal/Regional Offices inviting applications for appointment of Stockiest/Distributors. The application form can be obtained on payment from CCI Offices. Based on the
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present line of business and financial status, appointments are made. An agreement is executed between the party and CCI after obtaining security deposit. Generally persons dealing in steel, building materials and other allied products, unemployed youths, SC/ST and persons from villages having not more than 5000 population are given preference.
Marketing Network In line with its consumer oriented marketing policy, CCI is committed to supply best quality cement at right price and on time. Thus CCI Cement is marketed through a well established network of Zonal offices, Regional offices, Dumps and authorized Stockiest/Dealers/Distributors. However, the bulk consumers, Govt. Depts., PSU's etc. are contacted directly by Marketing/Sales officials of CCI and orders are obtained through participation in
tenders/submissions of quotations. For any further details/enquiries contact Marketing/sales personnel at Corporate/ Zonal/ Regional offices as given below.
3.5 Quality Assurance Department A Quality Assurance dept. at Corporate office with representatives at each cement manufacturing plant is the backbone of Quality, for the product manufactured by CCI. This cell is directly reporting to C&MD regarding all quality matters.
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One executive of Production dept. at each unit has been made responsible for quality assurance. All these executives at unit level are responsible for following jobs: To ensure that quality of cement conforms to the laid down standards relating to fineness, strength, expansion, ingredients etc. and only quality product is sent out of the factory. To carry out physical & chemical tests over and above the normal tests required for the purpose of production by taking necessary number of samples from each lot. To carry out inspection of bags at the time of packing as well as to conduct random sampling tests to ensure that the bags are of good quality and the weight of the loaded bags are correct. The short weight bags are not allowed to move out of the factory. The Executive (QA) checks the details of branding on the bags before packing of cement. The Executive (QA) is responsible to monitor adherence to all the stipulations made by the Indian Bureau of Standards for various tastings. He also monitors the conditions of various equipments and other stipulations. The Executive (QA) monitors the mode of sampling by Production Department for testing of various input materials at different stages and make comprehensive report to General Manager with a copy to Manager (Prod)
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C.O. To carry out checking of calibration of the testing machines on random basis. To innovate the basic method of Quality Control, introduce new concepts relating to total quality management, its implementation through Production Department and percolation of total quality management as well as quality consciousness down the line through Production Department. To ensure that Weekly Quality Assurance Report in the prescribed format and Daily Quality Messages are sent to C.O. For the purpose of collection of samples and carrying out the necessary chemical & physical tests, the employees detailed at various points including that of Laboratory under the Production Department, extends necessary services to the Executive (QA).
The duties and responsibilities of Executive (QA) at the Unit does not include dayto-day operations in the Production Department. All kinds of tests required for the production and inspection of inward materials continue to be performed by the executives of the Production Department.
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Sales & dispatches and accretion/ (Discretion) to stock Other Income Raw Materials Consumed Stores and Packing material consumed Emp. Remuneration & Benefits Interest Depreciation Other Manufacturing Expenses Profit(+)/Loss(-) Equity Reserves & surplus Loans Net Fixed Assets Other Assets (Including DRE) Current Assets Current Liabilities Capital W.I.P Other Intangible Assets Capital Employed No. of Employees(Nos.)
33425.69 3462.44 3640.48 1639.50 4597.46 3752.20 888.27 17095.32 5274.90 81140.74 46875.17 10733.75 1906.88 49033.50 36058.56 1577.20 100823.14 23708.69 107
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CHAPTER-6 MCKENSYS
MCKENSY'S 7S FRAME MODEL WITH SPECIAL REFERENCE TO ORGANIZATION UNDER STUDY
1
The 7's Model is better known as MCKENSY'S 7'S FRAME MODEL. This is because the two person who developed this model and it is developed by Torn peters and Robert water man, have been consultants at Mckinsey & Company. They published their 7's model in their article Structure is not organization" (1980) and their books " The art of Japanese Management" (1981) and Search of Excellence" (1982).
The Model starts on the premise that an organization is not just structure, but consist of seven elements namely, these seven elements are distinguished as so called Hard 'S' and soft 'S'. The hard elements are feasible and early to identify. They can be formed strategy, statements, corporate plans, organizational charts and other documentation.
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STRATEGY: The Strategy adopted by the company is based on the price prevailing in the market. Company uses the waste elimination strategy by way of using the waste in manufacturing the by products. The various by products manufactured by the company as following below,
Molasses is used as major content in production of wines and other alcoholic products. So it is sold to liquor industry, and income is earned 2 crores per month.
Bagasse is used for Power Generation and Fresh mud sold to the farmers during the process, which they turn use to fertilizer for growing the sugar cane.
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SYSTEMS: The company used FIFO that is First in First out inventory for maintaining
an inventory, company maintains various account book for holding the inventory in an efficient manner.
STYLE: The company's Decision making is done by way of selecting the tender as government decides on sale to be done by the companies in a particular month..
STAFF: Staffing is the process of acquiring the resources for the organization and assuring that they have the potential to contribute to the achievement of organizational goals.
SKILL: Employee skill is identified by way of performance appraisal; depending on the strength and weaknesses of the employee the training program is conducted. The company has skilled, unskilled, and semi skilled labors. Depending on the job nature and importance of the job, and on-job training will given to them.
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SHARED VALUE: Guiding concepts, fundamental ideas around which a business is built-must be simple, usually stated at abstract level, have great meaning inside the organization even though outsiders may not see or understand them. The Maruti Khandsari. General principles of conduct and action can be summarized as follows.
Principles of conduct
1. 2. 3. 4. 5.
Principles of action
1. 2. 3. 4.
Respect for law Caring for the environment Workers health and safety Employee rights.
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Weakness
Follow up strategy Less cost provide to a vendor create a problem to OEM Follow up as there standardized
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Contribution should be 40 % of the sales value Demand of the customers to buy more machines Changing modules is time consuming Different range of machines create problems in maintenance
OPPORTUNTIES Cement sector is a high growing area Launching of new technology Customer preferences changes Govt. policies and tax reduction Removal of trade barriers Provision of EPCG license THREATS Trades barriers Technology changes Entering of new competitor in a market Competitor cost Competitors better distribution channel
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The level of awareness among the customers regarding the product, quality, range of products etc of CCI products is good. The perceived quality of CCI products among the customers is high when compared to other products. As CCI products being the strongest brand in the industry, many customers prefer only CCI products even if the competitors offer products of equal or better quality. Most of the Top outlets have equivalent sales of competitor products too Good relationship ties between manager and sales people. Consumers are not totally aware of the product range of CCI products. Most of the CCI customers are satisfied with the quality and price of the products.
Suggestion Implement New approach plans Work on Efficient Beat plans only by including weekly and fortnightly plans. Attractive incentives to sales persons. Sufficient stock needs to be maintained at the C & F agents to avoid short fall. Advice salespersons to manage time so as to work efficiently. Cover each and every outlet possible.
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If the Credit Terms can be little more liberalized more dealers will be willing to keep more CCI products. Create awareness among consumers as to the benefits of the products. Work efficiently on claims and damages. Team of sales force should be maintained on a regular basis to negotiate with lost dealers, so that the company can expand its distribution network. Feedback should be taken from the dealers on a regular basis to avoid dissatisfaction and frustration in dealers towards the company. Tap new markets like institutions, corporate and medical stores like Cadbury & Nestle. Increase shelf life by having an efficient supply chain management. If any production stock goes below the minimum stock level fresh stock should be supplied without any delay. Top outlets should be in constant touch so as to keep the stock level always above minimum level. Avoid stock shortage. Regional promotions need to be carried out so as to concentrate on a particular region rather than a country as a whole.
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Conclusion
CCI - Provide for setting out the practical regime of right to information for citizens to secure access to information under the control of public authorities, in order to promote transparency and accountability in the working of every public authority. The bidders for 10 plants of Cement Corporation of India (CCI) have started the exercise of due diligence, which they are likely to complete in the next month. The government expects to sell CCI by the end of this year. The government decision on CCI, which has been incurring heavy losses over the years, is very clear: any units that are not sold will be closed down. It is in the process of selling its entire equity in favor of strategic buyers. So far, the response to CCI privatization has been good. Though no party has expressed interest to take over the entire company, there are as many as 40 bidders in the race to take over various plants of CCI. The bidders include major players like Gujarat Ambuja and Grasim. It may be recalled that CCI is being privatized under the auspices of the administrative ministry, that of heavy industries, and not under the ministry of disinvestment. The IFCI-SBI Caps combine are advising the government on CCI sale.
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Meanwhile the ministry of heavy industries and CCI has expedited the process of voluntary retirement scheme (VRS). In the last month alone, more than 250 employees availed the VRS, whereas in the entire financial year of 2000-01 only 57 people had availed the VRS. Official sources said that the government wants to make the CCI plants attractive in the eyes of prospective buyers. Production has declined in the last few years, mainly on account of the closure of plants. This was the reason that CCI entered into marketing alliances with Grasim and Zuari in 2001. Headquartered in New Delhi, CCI has units at Adilabad and Tandur (in Andhra Pradesh), Bokajan (Assam), Akaltara and Mandhar (Chhattisgarh), Charkhi (Haryana) CCI is committed in supplying quality cement to its customers. To achieve this, fully equipped in house laboratories in manufacturing units keep strict control right through the manufacturing process from mining of limestone to dispatch of cement. In new plants, automatic quality control is done through online X- ray analyzers and computer controlled systems. Research and development center has also been setup to give backup support for operational efficiency and for technological innovations.
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LEARNING EXPERIENCE: The main objective of the internship training is to gain knowledge about functions of an organization, its background, nature of business, its working and analysis of various product profile of the organization. Staying in the CEMENT CORPORATION OF INDIA. for almost a month was a platform for me to know its business conditions in the initial stage and gradual growth. I had a limited knowledge about 7s frame work, which was learnt in the class room. But this internship gave me a opportunity to relate those theoretical concepts to the organizational functioning. The study helped me to view the process of producing various products produced in the milk factory. To know the performance of CCI. Produces good quality of Cement. Workers are highly satisfied with wage and salary administration and welfare facilities. To conclude internship training at CEMENT CORPORATION OF INDIA. Helped me to relate the theoretical Knowledge to the practical environment and enlightened me with the knowledge
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