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Ambuja cement project report


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Ambuja cement project report

  1. 1. Page 1 An Industrial Training Report On AMBUJA CEMENT LIMITED (KODINAR) Submitted By Meghna V. Vadariya S.Y.B.B.A. (A) Roll No. 56 Guided By Prof. Anish Durvesh Submitted To Saurashtra University
  2. 2. Page 2 Rajkot Shri Patel Kelvani Mandal College of Technology College Road, Junagadh. Academic year 2015-2016
  3. 3. Page 3 PREFACE Now a day in modern business there is requirement of high skill. And skill is refaced to the practical as well as theoretical knowledge and to improve skill both are important at high rate in the business. And in S.Y.B.B.A I get the chance to improve my skill on the way of study. I am really thankful to “Saurashtra University” because they included one of the different subjects with the other six subjects. And the subject is “FIELDPROJECT IN BUSINESS” as per the Bhavnagar university in S.Y.B.B.A the student have to collect the information, and understand process of three department like finance department, human resource depart department, marketing department, production process and get a training after choosing a one company. So, as a student I select “Gujarat Ambuja Cement Ltd.” which is situated at Kodinar. I tried maximum as my level to collect information of all the department of the company "GUJARAT AMBUJA CEMENT LTD". Like finance department, human resource depart department, marketing department and production process. And after complete this project I really understand the field work is really very important in the business as well as in study to improve our skill.
  4. 4. Page 4 During the project time I give maximum attention to understand function of management. - Meghna V. Vadariya
  5. 5. Page 5 ACKNOWLEDGEMENT I am really heartly thankful to our management of P.K.M. College because without their guidance I cannot able to complete and submit my project within the time period. I am also especially thankful to Director Dr. Praful Kanjiya, and Anish sir who provide very nice guidance to full fill my project. And as my duty I cannot forget my duty to thankful to “GUJARAT AMBUJA CEMENT LTD” company which is situated at Kodinar, who provide me better & latest information about all the department and process of all departments. I am also thankful to branch of Bhavnagar, approved by Ambuja cement Ltd. Because it is the link between us and “GUJARAT AMBUJA CEMENT LTD” .and it really works as a chain between us and “GUJARAT AMBUJA CEMENT LTD”. - Meghna V. Vadariya
  6. 6. Page 6 DECLARATION I, undersigned, Meghna V. Vadariya the student of S.Y.B.B.A., Shri P.K.M. College of Technology & B.Ed., Here by declared that this Project Report is my own work and it has been carried out under the guidance of Prof. Anish Durvesh. This report has not been submitted to any other University for examination. Place:-Junagadh Date:-26th March 2016 Meghna V. Vadariya.
  7. 7. Page 7 INDEX SR NO. CONTENTS PAGE NO. 1 General Information 2 Financial Department 3 Production Department 4 Marketing Department 5 Human Resource Department 6 Awards and Achievements 7 Future Plans 8 Suggestions 9 Conclusion 10 Bibliography
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  9. 9. Page 9 INTRODUCTION OF COMPANY AMBUJA CEMENTS LTD. Their people practice a simple philosophy. “Give a man orders & he’ll Do the task reasonably well But let him set his own targets, Give him freedom & authority, And his task becomes A personal mission:”I CAN”.
  10. 10. Page 10 Ambuja Cement Limited is India’s one of the major Company in the cement industry. Its first plant “Ambuja Cement” was begun in 1986 & is located near the coastal town of Kodinar in the Saurashtra region of Gujarat. The area has huge deposits of limestone, a key of ingredient in the manufacturing of high quality of cement. The plant with an installed capacity of 0.7MTPA (million tons per year) was a huge success with some equipment changing and optimizing the existing plant company had produced 1MTPA from the plant. Then another plant “Gujarat Line-1” again with an installed capacity of 1MTPA was erected in the same area and commissioned in 1992. Then a new unit “Gujarat Line-2” with an installed capacity of 1 MTPA was erected in the same area and commissioned in 1996. Then through continues improvement Ambuja unit and Gajambuja line -1 have upgraded by 0.5 MTPA each. In addition to these plants Ambuja Cement Ltd. has packing units at Surat (Gujarat) and Panvel (Maharashtra). Loose cement is dispatched to these locations by sea-route. Ambuja has large port facility at Muldwarka, near Kodinar. Ambuja Cement Ltd. has seven ships to carry the bulk cement to the packing units. This has brought substantial saving by bringing down the transportation costs, which plays a major role in deciding prices. Bulk cement is also exported to Srilanka, the island Mauritius and gulf Country. Ambuja Cement Ltd. has captive power plant comprising of 58bmw DG sets and is self-sufficient.
  11. 11. Page 11 HISTORY & DEVELPOMENT In India, manufacturing of cement was first started in Madras in 1904.First three companies were started in 1912-1913 and real beginning was started. When the plans started there were 21 factories with an annual capacity of 328 million tons. After 1949 the cement industry had a complete interference of govt. the production, distribution and price of cement and this hampered the growth of industry. It was only in 1977 that govt. announces 12% post tax return on net worth, which was fair enough, and retention price would be fixed to ensure it. The rapid growth of the Indian economy has developed the basic industries like cement, iron and steel and fertilizers have prospered. This is also a result of the govt.’s incentives of developing such industries. At the time of the installation of this plant, there was not any cutthroat competition in the cement industry. Thus, the above mentioned are the main reason, which encouraged this organization to enter into the cement industry. The Ambuja Cement Ltd. is a company, which has been promoted by the Gujarat Industrial And Investment Corporation Ltd. The company started its commercial production in October in 1986. Later the company in order to expand its production setup and another plant in Kodinar itself called Gajambuja Line-1 in 1992 followed by the third one Gajambuja Line- 2 in 1998 making the total production to reach approximately three million tons per annum marks.
  12. 12. Page 12 COMPANY PROFILE Name Ambuja Cement Ltd. Address QATER No :F 219, HDFC ATM, Ambuja Nagar, Kodinar – 362715, Gujarat, India. Contact No. (02795) 237829/ 30/ 31/ 32 E-mail Fax No. (02795) 232163 Chief Promoter Mr. Narotam Sekhsaria Mr. Suresh Neotia Size of Unit Large Scale Unit Form of Organization Private Limited Company Bankers State Bank of India Bank of Baroda Dena Bank Year of Establishment September, 1986 Main Products Cement Brand Name Ambuja Cement Market International Market Slogan Giant Compressive Strength
  13. 13. Page 13 PRESENT MANAGING BODY  Mr. Suresh Neotia : Chairman Emeritus  Mr. N. S.Sekhsaria : Chairman  Mr. Paul Haribhakti : Vice Chairman  Mr. Ajay Kapur : Managing Director & CEO  Mr. Onne van der Weijde : Managing Director  Mr. SanjeevChuriwala : Chief Financial Officer  Mr. Rajiv Gandhi : Company Secretary  Mr. Bernard Terver : Director  Mr. Bernard Fontana :Director  Mr. Rajendra P Chitale :Director  Mr. Nasser Munjee : Director  Mr. OmkarGoswami : Director  Mr. B. L. Taparia : Director  Mr. ShaileshHaribhakti : Director  Mr. HaigreveKhaitan : Director
  14. 14. Page 14 SIZE OF THE UNIT Size of industry is decided on the capital investment of unit is fixed assets. The size of industry is classified in four type and they are as under. (1)Small Scale Industry (2)Medium Scale Industry (3)Large Scale Industry 1. Small Scale Industry: The investment of an industry in its fixed assets does not exceed Rs. 3 crores are known as small scale industry. 2. Medium Scale Industry: The investment of an industry in its fixed asset is more than Rs. 3 crores but not exceed Rs. 5 crores are known as medium scale industry. 3. Large Scale Industry: The investment of any industry in its fixed assets is more than Rs. 5 crores are known as large scale industry. “Ambuja Cement Ltd.” is large scale industry. Its total capital is Rs. 86crores investment in plant and machinery.
  15. 15. Page 15 FORM OF ORGANIZATION Whether, a particular type of organization will be suitable to a particular type of business or not is largely dependent upon different factors e.g. nature of business, motive and incentives, finance requirement, scale of operation etc. A comparative idea for different forms of business organization is given below:  Sole proprietorship  Partnership  Joint Hindu Family Business  Co-operatives  Joint Stock Company  Public Enterprise  Private Enterprise The name of the unit in which I prepared report on Ambuja Cement Ltd. The name Ambuja Cement Ltd. itself suggest Ambuja is a Public Company. Ambuja Cement Ltd. is public company having common scale and liability.
  16. 16. Page 16 ORAGANIZATION STRUCTURE General organization chart is a blue print of company organization. Anybody understands a position of employees. General organization structure process is very important and hard process. We can understand an authority and responsibility of officers and employees. And also general structure showed a relationship between officer to officer, employees to employees. And also shown a group activity, so best structure means a best result. According to my observation, authority is in the hand of top level management and responsibility rests with medium and low level management.
  17. 17. Page 17  ORGANIZATION CHART:
  18. 18. Page 18 FACTOR AFFECTING LOCATION Location of unit is most important factor for to be consideration for successful working of any organization. It also plays vital role in the development of the unit. The total cost of manufacturing cost of any business unit is higher due to the wrong selection of location of their business. The main object of an industrial concern is to maximum profit through minimum of production cost. Ambuja Cement Ltd. is situated near Vadnagar village in Kodinar. The location of the plant is very beneficial for its existences as the area is surrounded by limestone, which is one of the basic raw materials in cement production. Company is also benefited as the area of the plant site is near the sea coast which facilitates the transportation through sea route. Ambuja has also developed its own seaport for transporting cement to other destinations. This has helped Ambuja Cement Ltd. to export their product easily through seaport directly increasing the export of their goods. Location factors are very much important in establishing a cement plant. 1. Input In terms of input, about 1.5 tons of limestone is required to produce one ton of cement. Hence location of the plant is based on the limestone deposit. The major cash out flow come by way of royalty and cash payments. India’s estimated total reserve of cement grinding stone is about 90 billon tons. 2. Power It is used in raw material grinding. Clinkerization of lime stone is done in the kiln operation and then clinker is grinding with gypsum to form cement. The older plant required 120 to 130 units per ton of cement produced, while modern energy efficient plants consume 80 to 90 units
  19. 19. Page 19 per ton. Cement manufacturing is continuous process, so quality of power plants is important. 3. Coal Coal is another major input, which along with electricity forms 40% of total cost. There is a several coal shortage for the industry. The coal is generally imported from certain African countries, which are unloaded at companies’ Muldwarka port that is near to the factory site. 4. Labor On growing modernization of plants, the requirement for skilled man power has increased then that of unskilled man power. The cheap availability of labor from the nearby areas has proved to be great help for the company. 5. Transportation It is a very important thing to be kept in mind while deciding the location. It cost widely affects the overall cost. The seacoast is one of the important transportation modes for exporting companies. The company has its own jetty at Muldwarka. This reduces cost of transportation for the company.
  20. 20. Page 20 CONTRIBUTION OF UNIT TO THE INDUSTRY Ambuja Cement as a large scale manufacturing unit contributes to the unit, contribution to the country, contribution to the society and government it many ways. Ambuja Cement is the most profitable cement company in India, and one of the lowest cost procedures of cement in the world. Ambuja Cement can now join hands with a distinguished organization that has been a fountainhead of ideas and talent for the cement industry. Ambuja cement foundation has made to improve the quality of life in communities across the country. Ambuja cement foundation is give contribution to water resource management, skill development training, agriculture, health and education. Its profited ring played an important role in the economic growth. Ambuja Cement is helping it India as well as other countries also
  21. 21. Page 21 .
  22. 22. Page 22 Introduction “Money is the life blood of business” Money is one type of factor of production which is known as capital. It is sure that the money is required for starting of the business, expansion, for development of new unit, and liquidation of the business. Thus the money is required the starting of business to liquidation of business of the business. The money is work as lubricant oil in the business. So, without money the business cannot even start. So the company has to attention on how they get money, how they utilize the money, how they invest it to get maximum interest……this all the thing is known as financial management. FINANCE means procurement of fund and maximum utilization of fund which available in the business. So, it is required to control on the money and it known as financial management. Financial management is a planning, efficient allocation of funds and control on the money. Financial information is required for: 1. Share holder 2. Creditors Looking to the importance of financial management G.A.C.L. has established a separate financial department which is made financial budget for all over the company and solves the problem of finance in the company.
  23. 23. Page 23 ORGANIZATION OF FINANCE DEPARTMENT In Gujarat Ambuja Cement Ltd., the finance & account department is headed by the Vice President (Finance). Under him there are 2 group of executive and its chart is as………. In G.A.C.L all the authority is establish to the vice president of finance and he has to maximum utilization of fund.
  24. 24. Page 24 BANKERS The G.A.C.L is gating finance or banking facility by…………… Bank of India Dena Bank Bank of Baroda Punjab national Bank ANZ Grind lays Bank
  25. 25. Page 25 CAPITALIZATION Capitalization means total funds required for doing business, funds like equity fund, borrow fund, fixed asset, current asset etc…as per financial point of view capitalization is required for earning fair rate of return on the investment. In other word, the Capitalization refers to the decision regarding the total requirements of long term funds. Types of capitalization: There are three type of capitalization (1). OVER CAPITALIZATION. It Means the real value of share is reduced then the book value of the asset. It occurs when the real value of the assets is less than the long term funds of company. (2). UNDER CAPITALIZATION It Menace real value of share is higher than book value of the assets. It occurs when the real value of the assets are more than the long term funds of company. (3). FAIR CAPITALIZATION It menace real value of share & book value asset is equalize each other.
  26. 26. Page 26 CAPITAL STRUCTURE The G.A.C.L is public limited company so the company has issued the equity share capital which is known as long term capital. To handle capital structure is very difficult task. Capital structure of the company involves many functions like borrowed capital, owner's capital, share capital. Borrowed capital means the capital borrowed from the out spiders. It may be another company, some banks or from some industries share capital means capital gain from funds and shares. The capital structure of GUJARAT AMBUJA CEMENT LTD. Is as….
  27. 27. Page 27 MANAGEMENT OF FIXED ASSETS Generally there are two types of assets: (1). Fixed Assets:- The fixed asset are those asset which gives long time benefit in the business like plant, machinery, equipment, building etc. The investment in fixed asset of G.A.C.L. is RS. 3469.89(in cores). The design of plant is derived from the Germany; it was the latest cement plant in Asia. (2). Current Assets:- The current assets are such asset which gives short time benefit and which are use day to day in business. Like inventories, cash and bank, loan and advance.
  28. 28. Page 28 MANAGEMENT OF WORKING CAPITAL Working capital means short time assets and liabilities. To done the continuous routine activity we need some working capital so, in simple word working capital is nothing but analysis of Current Assets & Current Liability. There are mainly two concepts of working capital. (1) Gross Working Capital (2) Net Working Capital Gross working capital is the capital investment in the term current assets i.e. cash, short term securities, debtors, bills receivable and stocks etc. Net working capital is the difference between current assets and current liabilities. Working capital management mainly on three bases…….. (1) Management of inventory. (Value of raw material, working process, finished goods and scrape) (2) Management of receivables. (3)Management of Cash & Bank.
  29. 29. Page 29 FINANCIAL RATIO ANALYSIS Financial ratio is one of the most important tools to analysis and criticizes the account prepared by the business. A financial ratio means relation between two or more related item of financial statements known as ratio. The ratio may be in proportion or in percentage (%).because of ratio analysis the company can make future estimation and take step for future. RATIO ANALYSIS There are three branches of accounting: (1) Financial Accounting. (2) Cost Accounting. (3) Management Accounting. In Management Accounting Manager has to prepare various statements. Manager has to do some analysis & interpretation of various data. Through this analysis manager has to evaluate past information, current position and predict future position. So, this purpose he has to do analysis of various financial situations.
  30. 30. Page 30 Ratio Analysis [For year 2006-07 only] (1) NET PROFIT RATIO :- = Net Profit (PAT)*100 Sales Net Profit (PAT) = 1769.10 Sales = 5705 = 1769.10*100 5705 = 31.10 % This ratio gives the information about actual margin of profit realized from routing activity. Generally standard margin is 10% to 15%. But t is 31.10 % so, company has good profitability. (2) Current ratio : = Current Assets Current Liability Current Assets: - Inventories, sundry debtors, Cash and Bank Balances, other current assets, loans and advances. Current liability: Liabilities, Provisions. = 1587.33 1169.09
  31. 31. Page 31 = 1.36:1 This ratio gives the actual information about the liquid position of the company. Standard margin of this is 2:1. Here, it is actually 1.36:1 which near the standard margin so, presenting good liquidity of the company. (3) Liquid ratio = Liquid Assets Liquid Liability Liquid Assets = Current Assets – Stock Liquid Assets = 1587.33 – 317.00 Liquid Liability = Current Liability – Bank Over Draft = 395.75 – Nil = 395.75 =1267.33 1169.09 =1.08: 1 This ratio gives the information above actual liquidity of the company. Standard margin of this is 1: 1 and here, it is1.08: 1so company has good liquid position.
  32. 32. Page 32 LEVERAGE ANALYSIS The term LEVERAGE may be defined as the employment of assets or sources of funds for which the firm's pay fix cost or fix return. TYPES OF LEVERAGES 1. Financial Leverage 2. Operating Leverage 3. Composite Leverage
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  34. 34. Page 34 INTRODUCTION Production is the process where raw materials are converted into finished goods. All the process is differ to each product. Production means creation of utilities and covers all the activities of procurement, allocation and utilization of resource such as energy material etc.
  35. 35. Page 35 COMPANY PRODUCT & MANUFACTURING PROCESS  Company Product: Ambuja Cement produces many type of cement like as: Rapid Haudening cement Sulphate Resistance Cement OPC=43 Grade OPC=33 Grade OPC=53 Grade Masonry PPC
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  37. 37. Page 37  Manufacturing Process: Manufacturing means to make semi-finished goods into finished goods and manufacturing process summation of all the steps making semi-finished goods into finished goods. Every manufacturing firm should have sound manufacturing process to manufacture goods without sound. Manufacturing process, manufacturing cost will be directly reflect in the profit if the organization. The basic raw material required to produce cement are as follows: 1. LIMESTONE 2. RED CLAY 3. GYPSUM 4. COAL 5. FLY ASH 6. SILICA s According to the mode of preparing the raw mix three different processes can manufacture cement: A. Wet Process B. Semidry Process C. Dry Process
  39. 39. Page 39 1. MINING & CRUSHING OF LIMESTONE: Limestone is the basic raw material to produce cement. It is mainly obtain from the open cost mining. The limestone is hauled through dumpers up to the 70 to 75 mm size. The crushing of limestone is done through hopper crushed material passed on the conveyor belt in which the addictive material is added to the material. 2. CRUSHING OF GYPSUM & COAL: The second stage of cement manufacturing is to crush the gypsum & coal by griddling machine. 3. MAKE A CINKER: Clinker is a precondition to make cement. So to make cement of clinker is needed. So, to make a clinker all crushed material like limestone, gypsum & coal water with the help of elevator. 4. STORAGE OF CLINKER: After a making of clinker it storage in a one place. It’s called silo. As per the requirements clinker is send at required place weighing bin. 5. DRYING OF CLINKER: After making a clinker, it dried in heating machine at 1200-1400 degree Celsius temperature. Minimum 1 hour required for drying the clinker.
  40. 40. Page 40 6. STORAGE OF DRY CLINKKER: After the drying a clinker it stored in a one place. It’s called silo. As per the requirements, clinker is send at required place through conveyor belt. 7. CRUSHING THE CKINKER & ADDED THE CHEMICAL: Dried clinker is again crushed in the grinding cement mill. And chemical is added as per the grad of cement. After adding the chemicals, this all things are mixing in the raw mill. After this process all these mixing material is transfer in to the ruler. Rulers exclude the wastage & clean to the cement. 8. PACKING: Packing is the final step of cement manufacturing process. Clean cement again stored in a silo and last as per the requirement it come in weight box through conveyor belt. After this cement bag which have capacity to include 50 kgs. Cement in it.
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  42. 42. Page 42 INTRODUCTION The term marketing is derived from Latin word ‘marcutus’ which means a place where business is conducted. Market:- The market means a place where buyer and seller meet each other and the deals finalize. Marketing:- Marketing means to delivered goods and services at a right time, at a right place, and to the right person. – It’s known as marketing. The bases of marketing are selling of the product. But the term marketing is very wide and various. The marketing head office of Gujarat Ambuja Cement Ltd. at Mumbai which includes the Marketing Department of Gujarat Ambuja Cement Ltd. is in Gujarat, Maharashtra, Rajasthan and other stat of the country and also in foreign country. Gujarat Ambuja Cement Ltd. covers sales area in South Gujarat, Mid Gujarat, North Gujarat, Saurashtra and Kutch, Gandhinagar and Kheda. Marketing is starts with human’s needs and wants. People want their basic need like food, air, water clothing & shelter to survive. The human wants are unlimited, various, and wide so, the marketing process will never becomes top.
  43. 43. Page 43 ORGANISATION OF MARKETING DEPARTMENT It is true that the human wants are unlimited, various, and wide so, it is a responsibility of Marketing Department to organization it’s department in such a way that it can help to satisfy the human wants. It does not help in the sales and distribution of the goods and services only but it also help to customers satisfaction. Gujarat Ambuja Cement Ltd. has its head marketing office at Mumbai. The unit has adopted the marketing strategy of Geographical area wise. In Gujarat the burden of marketing is carried by private marketing agency MITCO which is situated at Ahmadabad. The Organization structure of Marketing department of G.A.C.L. MANAGING DIRECTOR MANAGING MARKETING MANAGER ASST. MANAGER SENIOR SALES OFFICER SALES OFFICER SENIOR EXECUTIVES MARKET REPRESENTATIVE
  44. 44. Page 44 PRODUCT PLANNING To satisfy customer needs and wants product planning is essential. Many products affect some factor like geographic factor, cultural factor, social factor, demographical factor, psychological factor, and many others. Product planning is related following matters………….. 1. Product mix {Product width, line, depth, & distribution Channel} 2. Packing 3. Labeling 4. Branding 5. After sales service 6. Organizing 7. Product research The main product of G.A.C.L is cement and Product planning of G.A.C.L is as under…………………………  Port land pozoland cement [PPC]  High strength ordinary port land cement [HSOPC]  53 grade cement.  Special cement for railway etc. In product planning the product, which is demanded the most is paid more attention. G.A.C.L. has also done the same. This unit has paid more attention to OPC because it is demanded more G.A.C.L. products other types of also but only anticipation of its demand for e.g. in Narmada Project, PPC was demanded which was fulfilled only by G.A.C.L. G.A.C.L. has paid special attention for the quality maintenance. The quality test is held every day and every after one hour taken by G.A.C.L. for only
  45. 45. Page 45 maintaining a standard quality, and because of this it got the ISI mark. It has been given……….  ISO 2000 [ For pollution free production ]  ISO-9002 [ For quality ] MARKET SEGMENTATION Market Segmentation is a process of dividing total heterogeneous market into various segments. Each segments tends to be homogeneous in all significant accepts, for the purpose of selecting one or more segment as a target market for a company and separate marketing mean is a reward to be developed for even segment. It is an act of classifying consumers on the basis of their characteristics to select target market. There are two type of market segmentation in G.A.C.L: 1. Consumer Oriented Segmentation. 2. Product Oriented Segmentation. Market can be divided on Geographic Segmentation, Psychographic Segmentation and Demographic basis. G.A.C.L. has adopted market Segmentation mainly on two bases. (1). Consumers Segmentation. (2). Geographic Segmentation.
  46. 46. Page 46 (1) Consumer Segmentation: it is divided in 3 divisions in G.A.C.L. A. The general public segment. B. The Government segment. C. The contractor segment. (2) Geographical Segmentation: It is divided in 2 divisions in the G.A.C.L. at Bombay covers the region of Rajasthan, M.P., Maharashtra etc. while Ahmadabad covers only Gujarat because it forms the major part of G.A.C.L. market. Because of quality G.A.C.L. taking maximum benefits of market response. As a result G.A.C.L. is the market leader in Gujarat. Market segmentation are use full as under………………….. 1. Maximum market for the product can be achieved. 2. Market gets new opportunities. 3. Selecting of channel of distribution. 4. Selecting advertising media.
  47. 47. Page 47 PRICING POLICY: Price is the main factor to satisfy the customer. Prices are known by different names like - fees, fare, rant, commission etc. The pricing policy is directly or indirectly affects the fixed cost, variable cost, Government policy etc. (A) COST ORIENTED PRICING: In this product the price is decided as per the cost of product and it is also known as target pricing. (B) DEMAND ORIENTED PRICING: In this product the price is decided as per the consumer demand. Gujarat Ambuja Cement Ltd. has many competitors in India and other country also. So, they have set prices taking into consideration all of them. Thus, the prices are always fluctuating it is also fluctuated by government. Gujarat Ambuja Cement Ltd. looks upon following factors for determining prices:- (1) Cost of production. (2) Advertising. (3) Distribution cost. (4) Sales promotion cost. Gujarat Ambuja Cement Ltd. provides some motivation like gifts, discounts; commission etc. for increases the efficiency of the dealers, stockiest to selling more.
  48. 48. Page 48 CHANNELS OF DISTRIBUTION: A channel of distribution refers to a process of distribution goods and services to the consumers by producer. It is known as distribution channel because there were made channel between producer and consumer while the selling and buying process is doing the market and it is as……………… 1. Zero level distribution Producer Consumer 2. One level distribution. Producer Retailer Consumer 3. Two level distribution Producer Wholesaler Retailer Consumer 4. Three level distribution Producer Agent Wholesaler Retailer Consumer In G.A.C.L. the main channel of distribution is three level of distribution. In G.A.C.L. marketing agency MITCO is engages in performing marketing activities in Gujarat. They have their sales representatives in Gujarat appointed by MITCO. It collects the order from the Gujarat and provides them their stock by transport facility.
  49. 49. Page 49 TRANSPORT FACILITYS: In G.A.C.L. the transportation of cement bag is done by two ways……… (3) one is roadways (name of the road) Rajmoti Roadways Autohires Roadways Abhishek Rodways. (4) other is sea ways (name of the ship) Ambuja Kirit Ambuja Shakti Ambuja Vaibhav Ambuja Shikar Ambuja Gaurav
  50. 50. Page 50 CHANNELS OBJECTIVES No any activity is done without any objectives in mind. Every economics activity is Done or made to achieve certain aim or target whatever it is objectives is a goal and all Actions are directed towards that goal more ever, Which the results or performance of an action can be measured or compared. Ambuja Cement Ltd. has the following channel objectives.  To ensure dispatch of cement as per market needs and to provide best services to the customers an terms of timely and speedy delivery of material.  To ensure adequate availability of material at Muldwarka terminal as per ship Planning. Dispatch For maximum possible quantity.  Rendering appropriate services to the transport’s truck drivers with minimum detention of their vehicles at our factory.  To ensure complains of various statutory requirements connected to the above Movements, without any deviation. Maintaining of effective public relations with the concerned government officers.
  51. 51. Page 51 FUNCTION OF SERVICE MARKETING CHANNEL Marketing channels consist of channel member who perform many function. Marketing channels, particularly, indirect channel (wholesaler, retailers, and agents) perform many functions to facilitate availability of products to consumers with ease. Their functions offer benefits or services to manufactures on one hand and to the consumers on the other hand. Main services or benefits offered by marketing channel can be classified into two group’s service to consumers and services to producers. 1. Service To Producers: A. Transporting F. Ordering & financing B. Place constraints G. Processing C. Concentration on production H. Negotiating D. Information link I. Risk bearing E. Promotion J. Economy 2. Service To Consumer: A. Credit facility D. Easy accessibility B. After self service E. Better selection C. Education and communicating Nowadays, marketing channel plays a crucial role for both, producers and ultimate consumers. For many products' it is difficult about successful implementation of marketing strategy without active involvement of marketing channel.
  52. 52. Page 52 FACTOR AFFECTING CHANNEL DECISION Decision on channel of distribution is treated as strategic one as it plays significant role to satisfy consumer and also improve competitive strength. Choice of marketing channel, being very critical must be made carefully. 1. FACTOR RELATED TO PRODUCTS: Product is prime factor in channel decision. Product related factors are among most relevant and powerful factors affecting channel decision. Channel must be fit with type and nature of company’s products. A. Perish ability of product B. Technical aspects C. New v/s existing product D. Size of product E. Divisibility of product F. Unit price of product 2. FACTOR RELATED TO COMPANY: Company’s internal situation has direct impact on choice of marketing channel. Manager has to analyses company-related factor to decide the best fit channel. A. Company’s financial position B. Product mix of company C. Desire for control D. Experience and Expertise E. Facilities and staff F. Company’s past experience
  53. 53. Page 53 3. FACTORS RELATED TO MIDDLEMEN: Companies consider several middlemen related factor while deciding on channel. Most common factors include: A. Creditworthiness of Middlemen B. Attitudes of Middlemen C. Service rendered by Middlemen D. Financial capacity of Middlemen E. Terms and Conditions 4. FACTOR RELATED TO MARKET: Market is a crucial factor in channel selection. Most common factors include: A. Size of market B. Geographical concentration C. Service expected by market D. Habits of consumer E. Current market trend 5. FACTOR RELATED TO COMPETITION: Current and anticipated competition affects company’s decision on marketing channel. Relevant competition related aspect must be analyzed while selecting the channel. A. Intensity of competition B. Response and reactions of competitors C. Company’s competitive position in market
  54. 54. Page 54 6. FACTOR RELATED TO ENVIRONMENT: Marketer has to consider overall business environment while deciding on marketing channel. Domestic and global environmental forces have direct or indirect impact on company’s activities and operations. A. Economic condition of country B. Phases of trade cycle C. Legal provision D. Availability of facilities
  55. 55. Page 55 EVALUATION OF CHANNEL ALTERNATIVES After noting various channels alternatives which alternatives would best satisfy the long term objectives of the firm taking in view the factors which affect the channel decisions for this purpose, each alternatives must be rated against economics, control and adaptive criteria.  ECONOMIC CRITERIA For evaluating the effectiveness of channels of distribution the economic criteria are the most important since the firm pursues the profits.  CONTROL CRITERIA In evaluating the channel the second main consideration is that of the control i.e. how usual the marketer is in a position to have a control over a particular channel? The name would be the control; the better would be channel of distribution.  ADOPTIVE CRITERIA The next consideration in channel decision is to see whether the channel would be suitable to adopt the changing conditions in future. Each channel alternatives involves some duration of commitment and loss of flexibility. For example a channel alternative involving a long commitment must appear to be greatly superior on economic or control grounds in order to be considered but it is not valid on the ground of adoptability. The above three criteria must be considered to decide the effectiveness of a various Channels of distribution.
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  57. 57. Page 57 Introduction Definition:- A Human Resource Management can be defining as “H.R.M is Managerial function which concurred with hiring, motivation, directing and maintaining the people in the organization. – It is known as Human Resource Management. Human Resource Management (H.R.M) is also known as personal management. Without H.R.M a company cannot achieve their goal easily. All the company has H.R.M department. Highlight on Human Resource Management: 1) It is managerial and top level function. 2) It is concerned with employees, both as individuals as well as a group. 3) It is try to develop employee skill and better performance. 4) Personnel Management is a continuous process. 5) Without H.R.M a company cannot achieve their goal easily. Gujarat Ambuja Cement Ltd has H.R.M department having an experienced Vice President.
  58. 58. Page 58 ORGANIZATION STRUCTURE Gujarat Ambuja Cement Ltd established the line and staff type of organization. Personnel department is under direct control of vice president Senior Manager is responsible to vice president. The main functions of personnel department of Gujarat Ambuja Cement Ltd. Is………………… 1) To recruitment of employee. 2) To conduct interview for selection of efficient person. 3) To make man power planning. 4) To give guidance, and motivation to the employee. 5) To dealing with transfer and promotion. 6) Wage and salary administration. 7) To maintain the personnel records. The organization chart of personnel department of the G.A.C.L is as under:
  59. 59. Page 59 Organization chart of H.R.M
  60. 60. Page 60 RECRUITMENT, & PLACEMENT Recruitment:- Employees are the asset of the company, so it to get skillful person for proper management of man, machine, money and material. This process is held by Personnel Department. The process of recruitment gets started because of transfer, dismissal or promotion of the employee. The person in charge gives advertisement through various means of communications like new paper, Television, Magazine etc. The recruitment is may be on………………. (1) At management and administration level. (2) At staff level. (3) At worker level. Selection process:- Generally the following procedure is taken into consideration while selection the member. 1) Choose proper media for Advertisement. 2) Accept all the application, and analysis them. 3) Select applicant on the basis of application. 4) Sand them call latter. 5) Conduct personal interview. 6) Then selected employees are given an Appointment letter and make induction in the organization.
  61. 61. Page 61 PROMOTION AND TRANSFER POLICY PROMOTION POLICY:- "Promotion" is refers to the more authority, salary, and more responsibility. In Gujarat Ambuja Cement Ltd., they use only performance basis promotion. So, employees are promoted on the basis of their skill, performance and their achievement level. TRANSFER POLICY:- "Transfer refers to the transfer of person in other department, or on other site with same authority, responsibility, and same salary. In Gujarat Ambuja Cement Ltd., the workers are shifted internally –in Shift A to B, B to C, and C to A.
  62. 62. Page 62 WAGE AND SALARY ADMINISTRATION Wage and salary are most use full to give motivation to the employee. Wage and salary means the monitory reward paid to the employee on behalf of his work. In Gujarat Ambuja Cement Ltd. they pays salary to Employees and Wages to labors And other allowances are paid. The amount of wage & salary paid depends on grades. A Grade / Management Category are….. Basic salary + house Rent Allowance + 10% provident Fund +Medical Allowance + medical Allowance + Vehicle Allowance + Bonus + D.A. OVERTIME PAYMENT:- Overtime payment is admissible toward wage board workers only. The over time payment is made on the basis of overtime memo received from the department head. EXTRA DUTY INTIMATION:- If in accident case worker may lose his efficiency of performing the present job. In such cases company make transfer of the employee and if he is not able to work at all the units, the unit pays a reward to employee. On the event of death of a workman the wages and other dues shall be paid to the nominee as declared under the provident fund Act.1952.
  63. 63. Page 63 PROVIDENT FUND POLICY The Gujarat Ambuja Cement Ltd. Has to follow Provident fund Act 1952.Provident fund will be deducted from salary of employee at a rate of 12%. DETAILS ARE AS UNDER:-  Employee’s contribution @ 12% will be deposited in provident fund account.  Employer’s contribution @ 12 will be deposited in two different accounts a follows. •Deducting 8.33% goes to pension account. •And 3.67% goes to P.F. Account. COLLECTIVE BARGAINING:- Collective bargaining is negotiation between an employer and a group of workers to reach an agreement on working condition. It is also considered as one of the remedial measure to set industrial dispute. There is no formal collective bargaining in Gujarat Ambuja Cement Ltd. If there were any problem arise it is solved by management and lab our unions. By meeting and the decisions making. TRADE UNION:- According to Section 2(b) of Trade Union Act of 1926. Gujarat Ambuja Cement Ltd. has no formal trade union. There is one active labour union known as "Gujarat Ambuja Cement Karmachari Sangh". It is only the union which fights for the rights of workers & solves the disputes.
  64. 64. Page 64 PERSONNEL RECORDS Personnel record is a very important thing which includes name, address, date of birth, qualifications, hobby, experience etc. and as it helps to take timely decisions. It also preserves evidence for future reference or use. Looking to the importance of personnel records Gujarat Ambuja Cement Ltd. has maintained separate file for each and every necessary details. EMPLOYEES BENEFICIAL SERVICES The personal management is tried to focus on employee and employer to give best services. Thus it increases the satisfaction and the long run income of the company. The Gujarat Ambuja Cement Ltd., provide the best services to their employee. The facilities provided by the organization to the employees is as under………………………. (A) EDUCATIONAL FACILITIES : The Gujarat Ambuja Cement Ltd. has its own English medium school situated in Kodinar city. The fees are very normal so, that a common person can able to provide their child a better education. (B) MEDICAL FACILITIES : The unit has its own medical center established in colony when any family member of employee or himself is sick he can directly visit to the nearby hospital and can go under Medical treatment. In case of any injury or accidents the company pays the full expenditure, incurred for the treatment of worker. During his rest period he would get the salary of those days.
  65. 65. Page 65 (C) LEAVE FACILITIES: The following are the leave facilities provided by the company to the employees:  Festival Leave: All the workmen are granted National and social Festival holidays.  Sick Leave: The unit grants 12 days as a sick leave to the employees. He can take leave for 12 days in one year for his sickness.  Casual Leave: A workman may be granted Casual leave of absence with pay not exceeding 7 days.  Privilege leave: Privilege leave is the leave for workers only. The workers can get a privilege leave if he works for continuous 209 days. (D) CANTEEN FACILITIES: The Gujarat Cement also provides a good canteen, where every worker can go and take refreshments and snacks at cheap rates and hygienic than other stuffs available in the market.
  66. 66. Page 66 (E) OTHER ALLOWANCE:  Health Allowance: Health allowance is provided 5 % of the basic salary to the worker who works near the boiler, kiln etc. where the temperature is very high.  House rent allowance: The unit has its own residential building constructed within the unit. This makes the workmen easy to reach. It can provide quarters to all workmen. (F) TRANSPORT FACILITY: Gujarat Ambuja Cement Ltd. has its own bus which traveling from Gujarat Ambuja Cement Ltd. to Kodinar and Veraval. In workers bus they travel freely (no fare). There is even one school bus facility provided too. (G) BANKING FACILITY: Gujarat Ambuja Cement Ltd. has its own banking facility provided. (H) RECREATION AND SPORTS: In its residential colony the unit has build up a recreation and sports club. The club is facilitated by outdoor & indoor games. The club has a library too. (I) LIBRARY FACILITIES: The unit has its well developed library. This has many types of Newspapers in May languages and many magazines Indian and Abroad.
  67. 67. Page 67 TIME KEEPING SYSTEM “Everything you buy, but time can’t buy” Time keeping means the regulation timing of workers who are work of the industry. It means staff or workers how many hours they work in industry. They have to work in industry at certain hours or period. Time keeping system is important to maintain the record of absence the organization. Every firm has their own time keeping system. There are totally two shifts for the workers for the workers for work in the industry the chart of Ambuja Cement Company’s time keeping system is note as:  SHIFT:  8 A.M. to 12 P.M.  2 P.M. to 6 P.M. Lunch Time: 12 P.M. to 2 P.M.
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  69. 69. Page 69 AWARDS AND ACHIEVEMENTS  AWARDS OF ACL: Year Awarded by purpose 1989-90 The Economic Times, Harvard Business School Association of India Best Corporate performance award. 1989-90 National Productivity Council Certificate of Ment for Productivity in Cement Company 1990-91 National Productivity Council Second Prize for Productivity in Cement Industry 1990-91 Gujarat Pollution Control Board. 1st prize for environmental management. 1991-92 National Council of Cement & Building Material National award for best energy performance 1991-92 Bureau of India Standards 1992-93 National Productivity Council 2nd best productivity performance award 1993-94 International Green and Social Council, Hyderabad Best production and product goal award 2000-01 National Award 2nd best environmental award 2000-01 Special Export Award Outstanding export award 2002-03 National award Prevention of pollution 2007-08 National award Excellence in water management 2008-09 National award Best Environmental excellence in plant operation 2008-09 Ram krishna Bajaj National Quality Performance excellence trophy
  70. 70. Page 70  ACHIEVEMENTS OF ACL:  Fastest project Commissioning.  Fastest stabilization of project.  Highest productivity.  Lowest power and Coal Consumption.  Best environment Management.  Pioneering transportation of bulk cement by sea.  Highest product quality.  Carving a strong brand.
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  72. 72. Page 72 FUTURE PLANE During 2009 a new bulk cement terminal started operation at Kochi, providing access to new markets in the South and two new captive power units, each with 15 MW capacities, were commissioned at Bhatpara (Chhattisgarh) and Maratha (Maharashtra). Significant progress has been made during 2009 on the two major expansion projects which will enable the company to secure its market position through the next business cycle. Production trials at the 2.2 million tonnes clinker production line at Bhatpara began in mid December 2009 and the plant is expected to be fully stabilized during the first quarter of 2010, along with a 33 MW captive power unit. The new clinker production line at Rauri (HP), also with 2.2 million tonnes capacity, has commenced production trials during January 2010 and is expected to get fully stabilized during the first quarter of 2010. The associated cement grinding facilities at Dadri (UP) and Nalagarh (HP), each with 1.5 million tonnes capacity, will also be commissioned during this quarter. The total cost of these two projects will be approximately Rs. 2,700 crore.
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  74. 74. Page 74 SUGGESTIONS  Hydraulic training should also be conducted.  Time duration of this training is short so it should expand 1 or 2 hours.  Practical knowledge is also important so demo should be given.  Deep & clear knowledge is required from trainers’ side on drier, maintenance, valve & other equipment.  Improvement is needed on fundamental topics.  Trainer should only give the topic related knowledge not give a knowledge of the any out of the topics.  Training on pneumatic concept should be clear.
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  76. 76. Page 76 CONCLUSION  After the analysis of the training program we concluded that the trainee got more knowledge about the pneumatic components & troubleshooting in technical department.  The trainee can understand about the air, gas, water, leakage of the pipes, cylinders, compressed air valve, dryer, fitter, lubrication, etc.  The trainee can aware about the pneumatic symbols so they can run machinery effectively.  Improve the energy conservation by this technique; understand the problem of stoppage, Implementation of the proper maintained practice, Regular check up of the plant.
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  78. 78. Page 78 BIBILIOGRAPHY The books referred by me for the report are as follows:  Dr. R.B.RUDANI BASIC OF MARKETING MANAGEMENT - S.CHAND & COMPANY LTD., New Delhi.  TAPAN K PANDA MARKETING MANAGEMENT - Himalaya Publishing House, New Delhi.  Web Site