PREPED BY

DHADUK NISHA G.
Year Roll No Seat No Std Academic Year : 2007 : 9 : : F.Y.B.B.A/A : 2007`2008

SUBMITTED TO

Saurashtra University-Rajkot
GUIDED BY Alpa Kadiwar

Company name and Address

NAME AMBUJA CEMENT PVT LTD (KODINAR)

ADDREASS:AMBUJA CEMENT LTD. AMBUJANAGAR TALUKA:-KODINAR DIST:-JUNAGADH GUJRAT:-362720

REGISTERD OFFICE P.O.AMBUJANAGAR TALUKA:-KODINAR DIST:-JUNAGADH GUJRAT:-362715

SREE AMRELI JILLA LEUVA PATEL CHARITABLE TRUST-SURAT PLACE: - SMT SHANTABEN HARIBHAI GAJERA SHAIKSHINK SANKUL Chakkargadh Road, Amreli-365601

GUIDES CERTIFICATE

To, The register, Saurashtra University, Rajkot. Subject: - B.B.A. General Report Respected Sir,

This is to certify that Ms. Dhaduk Nisha G. student of F.Y.B.B.A. has carried out the project work as per the syllabus of Saurashtra University. She has prepared this study General Project Report under my guidance and her contribution in making this general project report during the academic year 2007-2008 is highly appreciated.

Guides Name and Sign

SREE AMRELI JILLA LEUVA PATEL CHARITABLE TRUST-SURAT PLACE: - SMT SHANTABEN HARIBHAI GAJERA SHAIKSHINK SANKUL Chakkargadh Road, Amreli-365601

PRINCIPALS RECOMMENDATION
To, The Registrar, Saurashtra University, Rajkot. Subject: F.Y.B.B.A. General Report Respected Sir, I am recommending the General Report entitled A General Report of Ambuja Cement Ltd. Prepared by Dhaduk Nisha G. at Ambuja Cement Ltd. (Kodinar) as the partial fulfillment of the University requirement. Date: Place: Thanking You, Yours Faithfully Dhaduk Nisha G. Principal (Alpa Kadiwar)

SREE AMRELI JILLA LEUVA PATEL CHARITABLE TRUST-SURAT PLACE: - SMT SHANTABEN HARIBHAI GAJERA SHAIKSHINK SANKUL Chakkargadh Road, Amreli-365601

Directors recommendation
To, The Registrar, Saurashtra University, Rajkot. Subject: F.Y.B.B.A. General Report

Respected sir, I am recommending the General Report entitled A General Visit Report on Ambuja Cement Ltd. Prepared by Dhaduk Nisha G. at Ambuja Cement Pvt Ltd. (Kodinar) as the partial fulfillment of the University requirement.

Date: Place: Thanking You, Yours Faithfully Dhaduk Nisha G.

PREFACE

There is on ancient proverb practice makes mam perfect. It indicates practice makes the person more practical & provides training and knowledge through which we can handle related situation. As a part of study we have to visit industry and collect the information of industry and present it as in the form of project report to university. Here is given the project report of AMBUJA CEMENT PVT. LTD. KODINAR. I visited AMBUJA for my practical study and it is great experience CEMENT is a very good commodity and I tried my level best to collect information from it. I assured that all information is trusted and if any wrong information is that I sincerely sorry for that.

ACKNOWLEDGMENT

I, Nisha G. Dhaduk, student of B.B.A. studying at the institute of Shree Leuva Patel Trust B.B.A. Mahila College, Amreli come under the Saurashtra University, very much thankful to Ambuja Cement Ltd, which gave me wonderful industrial visit and the great experience of it. I wish to express my sincere thanks to Mr.Satishkumar Udaywal for giving me the opportunity to work in this excellence organization. I wish to special acknowledge to Mr.Nishant K. Pandiya, whose congenial nature and enthusiasm helped and motivated me to overcome difficulties and frustrations through out development of my visit report. I wish to place my special regards to all the employees working in personnel department for giving me such professional guidance and co-operation. Last but not the least; I would like to convey my sincere regards to my parent, who deserve the foremost mention for their valuable and concrete support in making me what I am today.

Signature of Student

Dhaduk Nisha. (F.Y.B.B.A.)

DECLARATION

My self Nisha Dhaduk G.a student of BBA first year declare that I have prepared this project of general visit report on at Ambuja Cement Private Limited under Mrs.Alpa p. Kadivar.

I also declare that this project report is my own preparation and not copied from anywhere else.

Your Faithfully. Date : Place :

CONTENTS
No.
1 2 3 4 5 6 7 8 9 10 11 12

PARTICULARS
Executive Summary Brief History of cement General Information Location Organization Structure Production Department Personal Department Marketing Department Finance Department Awards, Recognition & Achievements Conclusion Bibliography

Page No.
10 11 13 24 36 37 44 55 68 79 80 81

\
The men have passed from several stages right from the evolution of mankind to this high-tech developed era. As soon as progressive changes took place in Stone Age, it also affected to their man three needs: Food, Cloth & Shelter. Finally, these progressive changes resulted in the invention of CEMENT. The evolution of Cement was as important for the pilgrims as the invention of fire. Cement is the substance, which walks with them from ages to ages. It has been used as a building material since ancient times, e.g. the classic structure of Rome, Pyramids etc. So, we can say that the single component of this revolution is CEMENT which can be truly considered as the basic need of our rapid development. Consumer satisfaction is the first aim of GCW. They make only those products that make India proud. But to fulfill the aim and to set an Ambuja modern plant on a least cost, they never compromise with quality, environment, social responsibility, employees facilities etc.

10

Cement is developed by Joseph Aspelin of U.K. in 1824. Since hardened cement plaster resembled Portland stone found in Portland, which is a place in England. Thats why it was named as Portland cement. In 1948, Mr. William Aspdin manufactured cement as a commercial product for selling. The cement has been in the existence for a long time in the historical monuments. The evidence of this fact can also be seen in civilization of Mohan-Jo-Daro. In India, Portland cement was first manufactured in 1904 by south India industrial limited. In 1914, new company named India Cement Co. was established at Porbandar, which is even today in operation as ACC. Since 1904, cement production is continued and expanded.

To define cement we can say cement is a mixture of these main

Following raw materials:

Limestone Bauxite Iron ore Marl Sweetner Clay Mineral Gypsum

In other way, when we add gypsum in clinker and refine it in small particles it is called Cement.

Types of Cement:
Ordinary port land cement: -

11

Ordinary Portland cement is manufactured by intimately mixing together calcareous (material rich in calcium oxide bearing materials, burning them at a clinkering temperature of about 1450 degree C. (A) Blended Cement 1) Portland pozzolan cement 2) Portland blast furnace slag cement (B) Special Cement 1) Sulfate resisting Portland cement 2) Low heat cement 3) Rapid hardening cement 4) Oil well cement 5) White cement

(A) Blended Cement: 1. Portland pozzolona cement

Portland pozzolona cement or PPC is produce either by grinding high quality Portland cement clinker, pozzolona and gypsum, or by intimately and uniform blending of Portland cement with fine pozzolona. It It is manufactured with the single objective enhancing certain properties of OPC, without sacrificing any other.

2. Portland blast furnace slag cement

The granulated slag made by the rapid chilling of suitable molten slags from blast furnaces forms the basis of another group of constructional cements. A mixture of Portland cement and granulated slag, containing up to 65 percent slag, is known in the English-speaking countries as.

12

CONTENTS

13

NO.
(3) 1 2 3 4 5 6 7 8 9 10 11 12

Particular
General Information Introduction History & Development Company Profile Introduction of the company Form of the organisation Department at Ambujanagar Board of Directors Types of product Objectives of Organization CCR Achievements of GACL Different plant & subsidiary company, their location & production capacity

Page No.
13 15 16 17 19 20 20 21 21 22 22 23 23

1) INTRODUCTION

14

Man is being ambitious being from the very beginning he had always liked to innovate and make the things more possible and more confortable. Firstly he used to stay in huts made up of straws and mud, then of bricks and latter cement. Cement has been amongst the major industries in India. There is now cut through competition in this stream too. Cement being the basic building material has achieved tremendous success and popularity in present age. If we go in deep past then, cement was originated at Portland and was therein names by Portland Cement. Actually the cement was same as now being used, but the manufacturing process acquired traditional one. Now a day due to development of technology in India, the efficiency and best quality technology are replaced in the place of older one, and as a result of which the cement industry is mostly benefited and along with it, the related industry like cement pipe, concrete plant have also developed considerably. No doubt, now a day due to increase in cut through competition the cement has loosed its demand to a certain extent. As a result the price was lowered in this particular year and further many small plants have extinct. Thus, we can conclude that, cement has proved to be the doorstep of the modernization on development of the country and thus, it has become the most important part and partial of our economy.

2) HISTORY & DEVELOPMENT

15

The ACL is a company, which had been promoted by Gujarat Industrial and investment corporation Ltd in ordination with sekhsariya Group. Originally the project was planned to be located at Mahuva, Distict Bhavnagar. Land acquisisition proceeding had also been completed in early May 1984. Further the land prossession could not be taken by the management due to non-corporative attitude of villager, and last the management decided to locate the project at village vadnagar taluka kodinar in junagadh district. Government of Gujrat extended its full co-operation in establishing the unit. GEB provided 20 MVA power. The plant constructed a double circuit 132 KVA feeder for this perpose The rail India technical and economical services ltd was appointed signing from enkodinar to vadnagar. All the infrastructure facilities required were completed in august 1986. Production in physical terms was started in September 1986. the ACL procedure cement by process technology brought from KRUPY Pulsates, A.B. germany and kuchtinghas entered in to (agreement)with onida engineering and consulting co. Ltd at japan. The production and supply of cement has increased day by day from its establishment Year. In todays context, the entire plant has become fully computerized. The whole production process as governed by just two person and rest of the work is automatic because of the latest and improved technology adopted by the management.

3) COMPANY PROFILE

ACL is a relatively young company in the industry. It begins operations in 1986. But in the short span of 18 years, it has set a new benchmark in every aspects of

16

the cement business, from cement quality to power consumption and from marketing to environment management. Some of the main achievements of the company are listed below.

1. Fastest project commissioning: The first cement plant in Gujarat was set up in 22 months as against the normal 3 years. Their second plant in Gujarat was set up in just 13 months, a world record.

2. Fastest stabilization:All their cement plants have reached 100% production within 6 months whereas the industry norm is 12 months.

3. Highest Productivity:
Ambuja cement holds distinction of operating its plants at a very high productivity level. The Gujarat plant operates above the rated capacity levels. For example the kiln of their first cement plant produces 4000 tonnes a day as against the rated capacity of 2500 tones.

4. Lowest power and coal consumption:Their power and coal consumption levels are one of the lowest in the world.

5. Best environment Management:At all their plants, the pollution levels are comparable with the most stringent Swiss standards. Ambuja cement is the pioneer in using blast free mining methods. They have won several safety and environment awards for its mining operations. To monitor the pollution levels, they have cultivated a rose garden right next to the kiln at their Gujarat plant. For these efforts, it has been given the highest national awards for outstanding pollution control in 1992. No other cement plant in India has received this recognition. Their plants are certified with iso 14001 as per the norms form environment control.

6. Bulk cement transpiration:In 1993,they have set up a whole new way of transporting cement transportation by sea. It includes a dedicated port at the Gujarat plants and unloading terminal in mumbai and Surat. All of them fitted with mechanized conveying system. It also includes 5 special cement ships.

7. Highest product quality:17

In cement, the quality is measured by the comprehensive strength. Ambuja cement is the strongest cement available in the market. The quality of the cement has been appreciated in the international market as well. This quality has made them the highest exporters of last 6 years. Ambuja is the one and only cement company to win national quality award and the first to Receive iso: 9002 quality certificate.

8. A strong brand:Ambuja cement is the brand a premium in the market. They market cement as a consumer product and not a commodity. Excellence quality backed up by strong service and effective advertising this formula way back in 1986 when cement was sold as a commodity.

4) A BRIEF INTRODUCTION OF THE COMPANY

NAME OF THE UNIT : - Gujarat Ambuja Cement Ltd. Ambujanagar, Taluka : Kodinar Dist : Junagadh Gujarat -362720.

18

MISSION OF THE COMPANY

:- To strive for an environment beyond compliace. To adopt environmentally sound technologies and management practices for optimum utilization and conservation of natural resources. :- Give a man orders and he will do the task reasonably well. But let him set his own targets, give him freedom and authority, and his task becomes a personal mission: I CAN. (It is constant source of motivation for there people.) : - Transparency, system and controls are essential factors in the success and growth of the company. : - Ambuja Cement Ltd. Gajambuja Cement Ltd Line-1 Gajambuja Cement Ltd Line-2 : - September 1986. : - Bank of India Bank of Baroda Dena Bank ANZ Grindlays Bank Punjab National Bank the Hong Kong & Shanghai Banking Corporation Ltd. Credit Lyonnas. : - P.O. Ambujanagar, Taluka : Kodinar Dist : Junagadh Gujarat: 362715. : - 122, Marker Chamber-111 Narimam Point, Mumbai-400021 : - Private Limited Company : - Large Scale Unit

VISION OF THE COMPANY

BELIEF OF THE COMPANY

DIVISONS

YEAR OF ESTABLISHMENT BANKERS

REGISTERD OFFICE

CORPORATE OFFICE

FORM OF THE ORGANIZATION SIZE OF THE ORGANIZATION

5) FORM OF THE ORGANIZATION

The major function are grouped under five departments and guided by a separate Vice President. The departments are: 1) Technical Department 19

2) Finance Department 3) Commercial Department 4) Marketing Department 5) Personnel Department

6) DEPARTMENTS AT AMBUJANAGAR

1) Personnel Department 2) H.R.D. Department 3) Accounts Department 4) Sales & Distribution Department 5) Administration Department 6) Land Department 7) Store Department 8) Costing Department 9) Security Department 10) Electronic data processing Department 11) Purchasing Department 12) Packing Department 13) Bulk Cement Terminal Department 14) Mines Department 15) Project planning & Developing Department 16) Civil Development 17) Instrumentation Department 18) Electrical Department 19) Mechanical Department 20) Diesel Generator Department 21) Research & Development Department 22) Laboratory Department 23) Production Department

7) BOARD OF DIRECTORS
Mr. Suresh Neotia, Chairman Mr. N. S. Sekhsaria, Vice Chairman Mr. Markus Akermann Mr. Paul Hugentobler Mr. M. L. Bhakta 20

Mr. Nasser Munjee Mr. Rajendra P. Chitale Mr. Shailesh Haribhakti Mr. Nirmalya Kumar Dr. Omkar Goswami Mr. Anil Singhvi, Managing Director Mr. P. B. Kulkarni, Whole-time Director Mr. A. L. Kapur, Whole-time Director Mr. N. P. Ghuwalewala, Whole-time Director Mr. B. L. Taparias, Whole-time Director and Company Secretary

8) TYPES OF PRODUCT

Ordinary Portland Cement (OPC) Pozolona Portland Cement (PPC) 1. Ordinary Portland cement Ordinary Portland cement is manufactured by intimately mixing together calcareous (material rich in calcium oxide bearing materials, burning them at a clinkering temperature of about 1450 degree C. Portland pozzolona cement Portland pozzolona cement or PPC is produce either by grinding high quality Portland cement clinker, pozzolona and gypsum, or by intimately and uniform blending of Portland cement with fine pozzolona.it is manufactured with the single objective enhancing certain properties of OPC, without sacrificing any other.

9) OBJECTIVE OF ORGANIZATION

1) Excellence in quality 2) Ceaseless quest for higher productivity 3) Maximum customer satisfaction 4) Continues development of employees

21

5) Fair return to shave holders 6) Vigilant search for opportunity for growth and fulfillment of social objectives.

10) CCR

CR means Central Control Room. In an atomized plant, accurate of operation plays a decisive role. CCR controls and monitors the whole plant operation through computers software. CCR covers mines, raw mill, kiln, coal mill, and cement mill. All signals comes from field comes to CCR through PLCs (Programmable logic controllers). For this purpose various instruments used for temperature, vibration, pressure, load, speed, and flow rate sensors. A part from these metal doctors, cem scanner and gas analyzers are used. Transducers senses on field variables such as temperature, pressure, speeds, load, ect. It converts mechanical energy at input in to electrical signals at output. These signals are measured and send to transmitters where, signals amplification is done. There is carried forward to PLCs through cables. It further passes to main operator in CCR. All the processes are interlinked in such a way that if any problem arises all the subsequent process stops one by one.

11) ACHIVEMENTS OF ACL.

1) Fastest project commissioning 2) Fastest stabilization of project 3) Highest productivity 4) Lowest power and coal Consumption 5) Best environment Management 22

6) Pioneering transportation of bulk cement by sea 7) Highest product quality 8) Carving a strong brand

12) DIFFERENT PLANT & SUBSIDIARY COMPANIES, THEIR LOCATION & PRODUCTION CAPACITY.
1. Ambujanagar : 40 Km away from Veraval in Saurashtra, Gujarat. This location consists of three units namely: Ambuja Gajaambuja-1 Gajaambuja-2 : Near Simla in Himachal Pradesh with one unit. : Near Chandrapur in Maharastra with one unit. : Punjab-Grinding unit. : Punjab-Grinding unit.

2. Darlaghat 3. Gadchandur 4. Bhatinda

5. Roopnagar

Associate Companies:
Ambuja Cement Eastern Ltd- Bhatapura (M.P) & Sarkrcul (West engal) Ambuja Cement Rajasthan Ltd- Rabriyawas- (Rajasthan)

23

CONTENTS
24

NO.

PARTICULAR

PAGE NO.

(4) 1 2 3 4

LOCATION Plant Location Factor Natural Resource Management Different Plant of acl

24 26 27 33 35

25

1) PLANT LOCATION

Site selection is an important decision, which decides fate of business. A good location and reduce the cost of production and distribution to considerable extent. The reduction of cost of production helps evolving either the distribution of the competitive strength or the profit margin of the business. The location of business involves a large, relatively permanent investment. Therefore, site for the factory should be selected very carefully. ACL have selected kodinar for production of cement. Location selected by ACL is ideal because this offers various facilities to ACL for production of cement. 1. RAW MATERIAL Limestone, mort, and fly ash are basic raw material for the production of cement and all these raw material are available in ample quality in near by are. 2.TRANSPORT Cheap and good transport facilities are essential for the company. This location offers cheap and good transportation facility. 3.EXPORT/MARKET ACL has found good market in Gujarat and Maharastra and as it is an export oriented company, western coastal area that is just 10km from site, help company in export cement to foreign company through ship. Thus location selection by ACL is ideal and best as it offers various facilities, which are essential for smooth operation.

26

2) FACTOR
[A] Factor pertaining to materials :1) Availability of materials 2) Availability of labour supply 3) Availability of power & fuel 4) Transport facilities 5) Financial facilities 6) State Control 7) Labour laws and labour unions 8) Cost of land & building 9) Suitable climate

[B] Association with other industries :1) Complementary industries 2) Competiting industries 3) Momentum of an early start

[C] Factors pertaining to selling :1) Nearness to market 2) Population 3) Fashions

[D] Other factors: such as

1) Personal consideration 2) Strategic factor 3) Government aid etc

Let us examine these factors in detail.

(A) Factor pertaining to materials :1) Availability of raw-materials :27

In determining the location of an industry nearness to sources of raw material is a vital consideration. For most of the industries the cost of raw materials form the major part of the total cost. The influence of raw material on location depends upon the nature and location of the materials. Raw materials, which are localised at a few places. For e.g. cotton, iron etc. and which are perishable for e.g. fruits, eggs etc. have a great in flounce on plant location on the other hand raw materials which are found at all places for e.g. water, clay, sand etc. have little influence on location. The transport cost of raw material depends greatly on the location and the nature of raw material. Materials which are bulky and heavy in relation to their value for e.g. coal, stone, timber etc. are costly to carry, Similarly raw materials which lose most of their weight in the process of production e.g. sugarcane, coal etc. are more costly to transport than non-weight losing raw materials like cotton vools etc. industries using Weight losing materials can minimise transport costs by locating rear the source of materials. That is why sugar mills, iron and steel plants, jute mills etc. are located largely near the source of raw material. When an industry depends up on imported raw materials, plant may be located near port towns. A plant using several materials found at different places may have to be located at a common place where the total cost of transporting different materials is minimum in addition to cost; the reliability or continuity of the source of raw material should also beconsidered.

2) Availability of labour supply :The availability of adequate Labour at a normal wage is an important factor in location of industry some industries require permanent personnel and these industries the ratio of labour cost to total cost of production is comparatively high for e.g. leather goods and textile industries are generally located in certain populated areas where cheap labour is available. In addition to abundance of cheap labour, skill and training of the labour is also to be considered. The lock Industry in Algadh and silkindustry in Kashmir flourished because of the availability of local labour with traditional skill. Thus, it is necessary that right type of Labour should be available in adequate amount. However, the importance of labour supply has been reduced due to the fact that labour can be provided by migration from other areas. Industry can be located in a suitable area is which labour can be attracted by proper incentives and the tea industry was started in Assam with the help of labour imported form very long distance mainly from Bihar and South India. 3)

Availability of power and fuel :With increasing mechanization, regular and adequate supply of power and fuel has become an important factor in location. Industries like iron and steel that require large amounts of coal tend to be located near coalmines because coal is a bulky

28

and weight losing material. For, e.g. the location of iron and steel plants in Bihar and West Bengal. However, with the development on new sources of power like electricity, oil, gas etc. industries tend to be dispersed. The development of paper industry in South India is an important example. Frequent break cown of electricity in certain parts of India has caused a shift in industrial location.

4) Transportation and communication facilities :The selection of site is gave need by the availability of transport facilities and their cost as compared to total cost of production. The need for transport arises because raw materials are to be moved to the factory site and finished products are to be moved from factory to the markets. It is also important for movement of workers. Hence, plants tend to be located in the area where transpiration costs are the lowest. The cheap transport facilities for external and internal markets have led to location of many industries in Bombay. For industries, which produced bulky good and produced goods for export transport costs are important consideration. In addition to transportation business firms require efficient means of communication to remain in close touch with their environment.

5) Financial facilities :Even though capital is a very mobile factor production, the availability of adequate finance at cheap rates is an important consideration in induction location modern business required huge capital for initial investment, or day expenditure and expansion. Hence, industries tend to be located in those regions where banking facilities are available. Similarly, industries tend to be located at counters where people have ability and willingness to save and invest them in industries. For this reason industries tend to be located in cities. e.g. Bombay is favourable to industries from the view points of finance.

6) State control :In many cases the location of the plant is influenced by state policy. To achieve the objective of balance regional development govt. encourages the launching of industrial en-terprises in backward regions by means of subsidies, tax concession provision of easy finance etc. Before launchings new industrial units, various policies of the government are taken into account. The law pertaining to construction of factory buildings licences, potents, hours of work and wage rates, controls on the supply of raw materials, local taxes etc. may be different in different regions. Taking all these factors into account the region may be selected.

7) Labour laws and labour unions :-

29

All countries have framed labour laws, relating to hours of work, child labour, provident funds and wage rates etc. in addition to labour laws, trade unions also play an important role in fixing wage rates and hours of work etc. All these effect the cost and profitability of business enterprise. Hence, industries tend to be located in those regions, which are free from the trade union movement. Now of course, the non-existence of trade union has lost its importance because whenever a big industry is located trade union will come into existence.

8) Cost of land building :The cost of land and building will be an important consideration the plant requires the wide area of land or when surplus land on tage scale is to be kept reserved for future expansion. The cost of constructing factory building may also be taken into account along with the cost of land. Generally, the cost of building and land are lower in rural area as compared to those in the urban areas. Therefore, if other factors are equal industry will tend to be located in rural areas.

9) Suitable Climate :Climate influences the capacity to work on the part of workers. Particular temperature and humidity are required in certain industries. For e.g., flourmills require a dry climate while cotton textile mills need a humid climate. However, the development of artificial humidification and airconditioning has reduced the importance of climate to some extent. Regions, which are subject to frequent flood, earthquake and droughts, do not attract industries.

(B) Association with other industries

1) Complementary industries :If industry y supplies raw materials or spare-parts to industry x then y Industry is said to be complementary to x industry. Sometimes, industries tend to be localised in a area where complementary industry exist.

2)

Competiting industries :-

30

Localisation of Competiting industries in a certain area is advantages in many respects such as availability of labour supply, banking facilities and availability of complementary good and services.

3) Momentum of an early start :Once an industry becomes established in a particular region, skilled labour, banking transportation, warehousing, insurance, repairs and other auxiliary facilities develop. Therefore new plants are attracted in that region because of industrial atmosphere and external economics. The film, industry in Bombay is an example of the importance of this factor Bombay has the best industrial atmosphere for film industry due to the availability of studios, processing facilities, cine stars ect.

(C) Factor Pertaining to Selling :1) Nearness to Market :Nearness to market is an important factor, which the entrepreneur must take into consideration. Industries producing perishable commodities, which cannot be transported over long distance or industries producing bulky commodities involving heavy transported over long distance, or industries producing bulky commodities involving heavy transportation cost are located in close proximity to market. Industries producing for a local market are also located near the market. Industries located near the markets can reduce the cost of transport in distribution to the finished products. Nearness to market is more important in the case of industries manufacturing consumer goods rather than producer goods because they require adjustment continuously with the change in the habits of the consumers and they can provide aftersales service effectively. In case of regional demand, plants are located near the market. For e.g. press printing marthi books is likely to be located in Maharashtra. Thus, the plant should be located near the market when the final product is more expensive to carry because it is more bulky, more fragile or more perishable than its raw materials.

2) Population :The markets for finished goods depend upon the size and pattern of population, its income and wealth and its habits and customs. To some extent producers can manipulate preferences and demand through advertisement and publicity but it would be dangerious, for producer to ignore the characteristics of people influencing demand for their products.

3) Fashion :-

31

Current fashion and frequent changes must be taken into consideration while deciding the location of industry. It is to be noted that fashions spread from rich to the poor and from the urban areas to the rural areas.

(D) Other factors :1) Personal consideration:Sometimes the location of industries is the result of personal sentiments of the entrepreneur. They may choose places of their liking, giving less importance to economic consideration.

2) Strategic factors :In these days of cold war strategic factors are assuming more importance to influence the location of industry. At the times of war the units supplying the weapons for war must be secretly maintain means that the enemies should not know about the location of those units which are supplying the war needs. For e.g. Indias aircraft plant is located in Bangalore, which is for away from the countrys border.

3) Government aid of government services :Some state government should offered financial & non-financial aid to the new industrial units. So that new industries would be attracted to those places. Similarly, the possibility and cost of providing residential to the workers would also be an important consideration mainly for those industries, which required on large scale.

3) NATURAL RESOURCE MANAGEMENT

32

The Problem: Water is the elixir of life- life without water is impossible. But how many rural people have access to this basic and essential commodity? In an agriculture based society like our's water is needed on a regular basis for irrigation besides needing water for drinking and for household activities. Scarcity of water not only makes daily life a struggle, but also affects the economy. Shortage of water coupled with mismanagement of available water leads to a host of agriculture, livelihood and health problems.

Our Solution: We have adopted two distinct strategies. Alongside large scale water harvesting, we introduced farmers to new agricultural practices like cultivation of low-water intensive crops, mixed cropping and micro-irrigations systems like sprinklers and drip irrigation. We also undertook soil and water conservation activities. And to meet the demand for safe drinking water, we introduced roof rainwater-harvesting structures (RRWHS) for homes, was our answer.

The Outcome:

1,685 Roof Rain Water Harvesting Systems installed. 305 check dam /causeway constructed. 798 ponds deepened/constructed. 234-hand pumps installed/ repaired. Farmers are producing three crops per year as against one.

33

To combat the problem of coastal salinity in our project area a sustained manner innovations of interlinking existing water bodies like ponds, percolation tanks, tidal regulators, small streams, rivers have been done and a method of sealing salinity is wells discovered. The innovations have made rivers almost perennial. The water table in Kodinar has increase by 29 feet. With the improvement in the availability and quality of water, the farmers are able to cultivate up to three crops a year as opposed to the previous record of only one crop. Rivers are now brimming with water for up to nine months in a year. This is a drastic improvement from previous records and has occurred for the first time in three decades. Different plant & Subsidiary C

34

4) DIFFERENT PLANT OF ACL

Mn. Tonnes

Clinker Capacity
Western India Northern India Eastern India Total Capacity 7.0 4.1 1.4 12.5

Cement Capacity
8.0 6.0 2.0 16.0

5) ORGANISATION STRUCTURE
35

Organization structure provides the information regarding the authority-responsibilityaccountability relationship among the employees of the firm. Organization structure of Ambuja Cement Pvt. Ltd. is as under.

B.O.D.

M.D

Production Manager

Finance Manager

Personnel Manager

Marketing Manager

Supervisor

Accountant

Employees

Salesman

Worker

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CONTENTS

37

NO

PARTICULAR

PAGE NO. 37 39 40 43

(6) 1 2 3

Production Department Introduction Flow of Production Process Cement Manufacturing Process

1) INTRODUCTION

38

Production or manufacturing is the basic activity of all industrial units, all other activities resolve around this activity. The end product of the production activity is the certain of goods and services for the satisfaction of the human wants. The management activity is nothing but step-by-step conversion of one from of material into other say chemically or mechanically. This is done in factory, which is house of production process. According to E Buffa, Production is the process b y which goods and services are created. ACL has separate production department, which look after the whole production activity of the unit. Production department is situated in CCR building from where whole production activity monitored whole production activity is computerized, where process-operating persons closely monitored the plant operation on visual display. Computerized, process closely monitored the plant operation on visual display. Computerized process control system with the field instrumentation ensures the steady and smooth operation of unit.

2) FLOW OF PRODUCTION PROCESS

39

PROCESS
Limestone mining Cursing Grinding Homogenization Pre-heating Burning Cooling Storage + add Gypsum Grinding Storage Package Dispatch

MACHINE
Mine Plant Crusher Raw mill CF Silo Pre-heater Kiln Cooler Clinker Silo Cement Mill Cement Silo Packaging Plant Dispatch Machine (By road or sea)

Details of Process

)1

Lime stone stockpile

40

The most and important for cement and clinker is limestone, at about 80% part in finished product. Those types of basic raw material are requirement that is half more than finished product means if 100-tons cement required, than 150-tons limestone required.gcw have their own mine for limestone. There mine plant is 3 km away from the mail production plant all material is reach at plant through belt conveyor.

2) Crusher
The limestone find from mine. After mining the limestone it crushed by crusher. Crusher crushed the stone type limestone into some powder like form. Its capacity of crushing is 950tones per hours. Than it collect and stocked as piles by dumpers. In the store the crushed stone is stacked in several layers by the stacker so that a variation in quality of incoming limestone is evened out.

3) Grinding
The machine, which grinds the raw material, is called RAW MILL. That converts raw material into powder form by grinding it. Crushed limestone, shale & hematite are fed in the required proportion to the raw grinding unit.

6) Homogenization
In this stage mixed powder from raw mill transfers to CF Silo, where some additives are added to mixture. Here drying process of raw material is also carried out, because the basic raw material contains some moisture. 7) Preheating & Calcinations Before moving the mixture to Kiln, the powder must obtain some temperature. Pre-heater performs that task. Calcinations is defined as removing of carbon-di-oxide and other organic matters from the raw material. The process of calcinations before Kiln reduces the thermal load in the rotary Kiln. The advantage of this system is that the Kiln capacity increases by 2-2.5 times.

6) Burning
The precalcined raw material is fed into the rotary kiln and coal is fired at a temperature of 1600-1800 degree centigrade on the other end. Here after burning process the powder form is transferred into small stone type form, which is called Clinker.

41

8) Cooling
The clinker is cooled in cooler, because it is very hot after passing though a very high temperature. There are three high power fans, which reduces the temperature of the clinker. Cooler brings down the temperature of clinker from 1200 centigrade to 200 centigrade.

9) Store
Clinker is stored in the Clinker Silo. For converting it into cement, gypsum is mixed and grinded further in grinding process.

10)

Grinding

In this stage raw material is passed to Cement Mill, where the clinker and gypsum are mixed and grinded to make powder form. Here some needed chemical are also added to mixture. This grey mixture is called cement.

11)

Storage

Cement is stored in Cement Silo in powder form before packing. From cement silo, needed quantity is taken for packing, while the bulk quantity without packing is goes to Jetty though conveyer belt.

12)

Packing
Packing plant for packing of cement in bags is located in the plant itself.

13)

Dispatch

After packing, cement is dispatched to various locations through road or sea. Here cement is loaded in truck by machine automatically

3) CEMENT MANUFACTURING PROCESS

There are three distinct processes involved in the manufacture of Portland cement.

42

a) Wet process b) Semi-dry process c) Dry process Cement is manufactured by dry process at this unit. Dry process consumes significantly less thermal energy and minimized pollution. In this process, cement is manufactured in four basic stages: quarrying and crushing, grinding and blending of raw materials, clinker production and finished grinding. These stages are illustrated in flow diagram given above. Cement production is intiated with extraction of minerals, which are a combination of limestone, clay and siliceous material (e.g. sand, shale) and iron ore. The reserve of limestone, which is located at kashlog, is at a distant of 11 Kms from the plant site. It is estimated that this reserve will last for 100 years. The limestone is mined by the process of surface mining. The limestone in the form of stone is obtained and is then loded in dumpers, which are trucks of 35 tones capacity. The dumpers unloaded the limestone into the inlet of the crusher, which is of impect type. Here limestone is crushed and is sent to stacker and reclaimer section through the OLBC conveyor belt. It passes through three tunnels for 2-8 Kms. The conveyor belt width is 1mts and its speed of moving is 3.5 Mts./sec. The preparation of raw material for the kiln involves drying, proportioning, grinding and blinding of various raw materials. The blended raw material sends to the preheater and pre clinker section is in the from of dry powder. Here it is heated gradually as it comes down, to a temperature of 350 degree C. the material coming out from the preheater is fed into the rotary kiln where it is future heated to a temperature of 1280 degree C. The bituminous coal is used for preprocessing. Coal is required to be crushed and pulverized for effective use. The product coming out of the kiln is cooled using grate cooler to a temperature of 100 degree C by the exchange of heat with the ambient air using air fans. The product from the great cooler consists of dark hard nodules called clinker. Clinkers formed are sent to the clinker stockpile, which can be open stockpile or closed stockpile. This plant uses both the form to store clinker. From this stockpile some of the clinker is sent to be loded in trucks to be sent to the grinding unit at roper (Punjab). The remaining clinkers are sent to the cement mill at darlaghat where gypsum and fly ash are mixed with the clinker in a fixed proportion and grounded. The ground ed material is sent to the high Efficiency Cyclone Separator (O-SEPA) where the coarse and fine material is separated. The fine material is sent to the storage soils with the help of bucket elevator. There are four storage silos in this plant to store cement. Finally the cement is packed in 50 Kgs plastic bags using Roto packer compact fully automatic machine manufactured by EEPL-HAVER. The cement is then loaded in trucks using truckloading machine and is dispatched.

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CONTENTS

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(7) 1 2 3 4 5 6

PERSONNEL DEPARTMENT Introduction Employee Welfare Wages & Salary Administration Training & Development Chart of Personnel Department Recruitment, Selection, Induction & Placement

1) INTRODUCTION

45

Personnel management is management of man power is being defined by various experts as follows. By Adovin Flippo: -It is basically concerned with two important function is managerial function is managerial function, under which planning, organizing, directing, and controlling are incuded and also operating function under which procurement development, compensation integration and separation are included. Thus in concerned with the obtaining and maintaining of satisfactory and satisfied work costs. The main objectives of personnel department are: 1. To select the personnel on need. 2. Effective utilization of personnel in the achievement of organization goal 3. To safeguard the intrest of labor and management by securing the highest level of mutual understanding and goodwill among those section in the company which participative in the manufacturing process. 4. To maintain harmonious relation between workman &management. 5. To sustain &improve work condition so that the employee nay sick to their jobs for longer period. Now a day in India, the importance of personnel has been identified and realized and therefore maximum efforts are being done to develop it and thus ACL has maintained a separate department having separate nice president. The personnel department in ACL is located at north gate. It handles time keeping system, training and development center, security office, employees welfare, labor problems etc.

2) EMPLOYEE WELFARE

46

The profitability and productivity of any organization on depends upon the industrial relation, which means the extent of relation between administers and employees of the unit. The management of ACL wishes to inside employee to his organization and also they provide many benefits to the employees, which are as under. ACL possesses good industrial relations. All the employees are quite satisfied with wage rate other facilities offered by the organization. The unit provides the beneficial activities to each of the employees and his family member as mentioned.

A. Medical Facilities:The unit has its own medical venture established in colony and when any family member or employee himself is sick, goes to hospital and gets the necessary treatment. In case of accident, the company pays the full expenditure, incurred for the organization, while performing duty then the workers will get salary too for the days of rest advised by the doctors.

B. Leave Facilities:I. Festival Leave: All the employees and staff gets four days as a festival leave which contains 3 paid holidays (26 Jan, 15 Aug, 2 Oct) and other day. II. Sick Leave: The unit grants 12days as a sick leave to the employees. He can take leave for 12days and time during a year. III. Privilege Leave: Privilege leave is meant for workers only. It increases after working continuously 209 days. IV. Casual Leave: ACL procure 7 days as a casual leave. V. Officers and administrative staff enjoy 30 P.L,12S.H. ,4 L.T.C. and 3 paid holidays.

C. Various Allowances: -

47

1) It is provided 5% of the basic salary to the workers working near boiler, kiln etc where temperature is very high near the patching process dept, where there is continuous flow of cement powder, the dust, accumulation near kidney. 2) Night Allowance: Workers working in the night shift get as a night allowance. 3) Heavy Duty Allowance: The unit pays Rs.1 per day as a heavy-duty allowance to working near heavy machinery. 4) Canteen facilities: The Company has a canteen of its own. All the items are provided there at a very reasonable price. Any officers can come or any general staff members can come to the canteen. Everybody is considered equal level over there. Each and every department is supplied tea, coffee from the canteen only. There is a record kept over here and is paid at the end of every month. 5) Educational Facilities: The Unit has its own English medium school situated at kodinar city near ST Bus stand. All the teachers here are very well educated and the children do not require going far from their houses for school. 6) Entertainment Facilities: The unit has its own residential building provided to the workers and staff members. It also provided its own 15mm projector and also cable wire where the member can enjoy Hindi as well as English movies. The shoes are arranged every week. There is a separate recreation clue for the administrative staff. Health clue, children library, swimming pool, play house, etc are also being provided for ACL employees. There is also a sport clue, which is facilitate by outdoors and indoors games. 7) Transportation Facility: ACL provides transportation facilities to its officers and employees. The company has 3 big buses, which provide the facility for children to go to school. Eight mini luxuries are running between Ambujanagar and Kodinar. the workers

Apart from there, the main facilities, which are provided by the company, are as follows. 1. Banking Facilities 48

2. Post office 3. There is one temple called AMBUJA MANDIRwhich is being visiting by people of all corners of Gujarat. 4. Uniform, shoes and allowances like washing, pressing etc is provided to its workers. 5. As well as the company gives a birth card cum gift to the employees. They thought that through this formality the relation could be a formal and good between the managers and employees. 6. Helmet is also provided to the employees, which is compulsory. Loan for purchasing vehicle is also given. It also provides vehicle allowance.

7. One cooperative society is also there, under which department stores are providing material at very reasonable rate to each of its employee.

3) WAGES AND SALARY ADMINISTRATION

For a personnel Department wages administration is the important decision for the personnel manager. It has initial relation with the evaluation department. Their wage and salary is the compensation paid to the employees in monitory terms on a 49

record of their work. In addition to wage and salary, other payment as house allowance is also paid. In ACL wages $ salaries are paid on 7th day of every month. This unit is not making cash payment but each worker and staff member has his accounts in STATE BANK OF SAURASHTRA at kodinar branch when company informs to the about salary the amount is credited each employees and members account. A separate salary call has been maintained to the salary records. The amount of salary paid depends loanly on the grades of the employees. In ACL the following grades are given to the employees. A Grade m1 to m5: A Grade wage board: C Grade traines: management category workers category trinees $ blue collar

The total salary of an employee includes: Basic salary + House Rent Allowance + Bonus + T.A. + D.A. this is general break of the salary. According to Bonus Act, 1905 an organization has to pay bonus at the end of 5 years. ACL has declared 80% to 90% of the annual salaries as bonus to its employees.

4) TRAINING AND DEVELOPMENT

Training means Any process by which the aptitude, skill, ability of a person to a specific job can increase.

50

ACL has given specific importance to training and development programme because It helps in personnel development, prevention from accident to make healthy environment, efficient manpower planning to raise in stopped of work. It helps in yielding higher productivity with the use Of efficiency. It also brings acceptability of changes. ACL sends its employees for training to various training institutes like: Indian Institution of Engineering management Baroda Productivities Council National Productivities Council Institute of Cement building material (ICBM)

The seminar and training programmes one also held within the campus premises. The training needs one determined by the departmental needs and the concerned officers. Development is a related process but can be rather be more important for managerial level employees, who require much theoretical knowledge and for a long duration of period.

5) CHARTOF OF PERSONNEL DEPARTMENT

B.O.D.

51

CHAIRMAN M.D. ASS. MAN (H.R.D.) P.A. OF CHAIRMAN & M.D. LABOHR OFFICER ASS. OFFICER SR. CLERK JR. CLERK TYPIST PEON

B.O.D M.D. ASS. SR . JR.

:::::-

BOARD OF DIRECTOR MANAGING DIRECTOR ASSISTANT SENIOR JUNIOR

6) RECRUITMENT, SELECTION, INDUCTION AND PLACEMENT

Recruitment can be actually defined as the generation of the

52

application for specific post thus it is a searching of prospective candidates a process of getting potential employees who are willing to apply for the job in the company. In India the skilled employees are not available very easily, one cannot find a right person at right time, at right place. When vacancy is found in any of the organization department, the department heads fills up a requisition form in which all age, duty, every qualification, and experience is being sent to the personal department and after it is being approval is being advertised on the notice board of unit or in newspaper, magazines, etc. while selecting the means of communication for recruitment emphasizes is given on targeting proper personnel.

1.Recruitment methods for workers.

The requisition of skilled personnel is being fulfilled through advertisement in newspaper or sometimes by personnel recommendation by the present employee for his relation or by supervisors. Skilled persons are also obtained through some technical institute like ITI, ITO, and etc. management keeps it contact with well qualified one, are been recommended by the heads of training centers and thus being recruited by the unit. Unskilled worker are obtained from the local areas of Kodinar and other near by places. This particular region being remote and backward, plenty by unskilled workers and available easily at reasonable wages.

2.Recruitment procedure for staff

The official and administrative staff is recruited at the head office at mumbai and according to the information has been supplied, newspaper is considered as the best media for advertising purpose.

3. Selection procedure for workers

The company has adopted two methods of selecting the essential workers in the organization. One of them is to call the candidates for personnel interview and to

53

know his basic knowledge, attitudes regarding the job and some other basic testing. This is a kind of preliminary interviews In ACL, trade union plays an important role in selection process of workers. Specially in the case of unskilled workers, the view of trade union is taken into consideration while taking decision to select any person.

4.Selection procedure for staff members

Different type of selection procedure has been acquired by ACL. The following procedure is taken into consideration on while selecting the staff members. a. Advertise of vacancy is given in the newspaper, magazines, etc. b. Inviting application from applicants for a particular post. c. After application is being received they are scrutinized. d. Appropriate applications are send interview call letters. e. Conduct personal interview on particular days. f. The selected person is given appointment letter and induction in the organization.

5.Induction
Once the candidate is selected, he has to go for the probation (induction) performs, which is generally for one year. To facilitate the selected candidate to have introduction with the organization, its structure, behavior, rules, regulation, the induction period is very necessary. The employee has to fill various forms regarding PE, EST, etc and is provided with induction kit, containing the information as above. He is also being given the general idea a responded to his duties, work, responsibilities, for which he has been selected. The reason behind induction programmed is to make the employee well set with new environment speedily.

54

CONTENTS

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NO.

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PAGE NO.

(8) 1 2 3 4 5 6 7 8

MARKETING DEPARTMENT Introduction Objective of Marketing Department Pricing Policy Sales Promotion Marketing Research Advertising Chart of Marketing Department Market Segmentation

55 57 58 59 61 63 64 66 67

1) INTRODUCTION

56

Marketing is a total system of business, an ongoing process of: (1) Discovering and translating consumer needs and desires into products and services, (2) Creating demand for these products and services, (3) Serving the consumer demand with the help of marketing channels, and then, in turn, (4) Expanding the market even the face of keen competition. The modern marketing is called upon to set the marketing objectives, develop the marketing plan, organize the marketing function, implement the marketing plan or programmed (marketing mix) and controls the marketing programme to assure the accomplishment of the set marketing objectives. The marketing programme covers product planning or merchandising, price, promotion and physical distribution. The American Marketing Association defines marketing as the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange that satisfy individual and organizational objectives.

2) OBJECTIVE OF MARKETING DEPARTMENT

1. Focus on brand name 2. Effective Differentiation 3. Effective public relations 57

4. Price differentiation 5. Strong distribution network ACL has created marketing department in Gujarat, Maharastra, Rajas than, etc, states of country as well as in foreign countries too. The head office of marketing department is at Mumbai, which looks after the marketing of all regions centrally. ACL main marketing branch is at Ahmedabad office. So first all the goods are reach there and then they distribute among all other branches of ACL. In Gujarat, ACL has created its own office at Rajkot, Bhavnagar, Vadodara, Surat and Ahmedabad. The marketing department of ACL is well established and efficient. After the commissioning of first plant at Ahemadabad in Gujarat with in very short period of time plant ACL has built and commissioned other two plant here and some other plant at Himachal Pradesh, Rajasthan and Maharastra and covered a big domestic market of cement industry.

3) PRICING POLICY
Price is the only element of marketing mixes that produces revenue. So we can say that price is one of the most important element determining companys market share and profitability.

58

When it comes to setting up the price, it is the most crucial decision. Price decides the market share and profitability. So any mistake in deciding price will affect too much to unit. ACL follows two types of pricing policies.

A. Cost oriented pricing: It is the simplest method for price. It also says as cost plus& target pricing. Generally retailers are using this method. ACL keeps the following point in mind while deciding on cost base. 1. 2. 3. 4. 5. Sales Production cost Distribution cost Advertising cost Promotion cost Other marketing expenditure

B. Competition Oriented Pricing: In this policy the price is set in accordance with the competition prevailing in the market. This method is applied when there is higher competition. In cement market the price of the cement charges time by time. As the owner of cement manufacturing units associated themselves in a group there avails high product of price charge, the association fixed up price as per cost of products on, the association fixed up price as cost of products on, transportation cost, excise duty, 10% price etc hence it plays a vital role in price policy. Now a days, government has no any control over the cement prices as a result of this each organization adopts its own pricing policies. In ACL pricing decision are taken by consideration following aspects.

Cost of production Add expenses Distribution cost Market conditions Sales production cost

This is a combination of demand and competition oriented pricing policy. This method is applied where there is high competition in the market. Credit facility: ACL gives 30 days of credit facility to reputed agency.

59

Discount: ACL gives 2% of cash discount if the payment is made with in one week.

4) SALES PROMOTION

With the indent of open market cement as commodity is now shifting towards being new ways to convince the customer to purchase their products stressing on specific

60

attribute which customer consider e.g. strength, reliability, water requirement etc. and are formulating their promotional strategies accordingly. Objectives to be achieved by the ACL through sales promotion are: 1) To stimulate the buyer for purchasing the products. 2) To consider the type of market, competitive condition of market. 3) To give extra incentive to consumer. ACL adopted various types of sales promotion tools like discounts, gifts, and some other incentives and sometimes company send their dealers and distributors on tour. ACL has adopted 3 levels of sales promotion: A. At a Dealer level B. At a Salesman level C. At a Consumer level 1. At a Dealer Level: Company prefers dealer who deals with ACL only. Dealer being the direct link between the customer and company, sales promotion applied on them provides fruit full result. ACL Provides following schemes. Depending up on sales turnover of a particular dealer, certain incentive is provided. Company arranges film shows for dealer and their families. Foreign tour is also arranged for the dealers. Picnics are arranged for all dealers of a particular region. Calendars, diaries, etc., are provided to dealers.

2. At a salesman level: Different attractive incentives are provided by ACL to its salesman for increase in sales volume to their target. The target is fixed for each and every salesman and he is able to archive it, he will be awarded some gifts or monetary rewards and thus motivated.

3.At a consumer level: ACL explain its consumer about different types of cement. They explain that what is the other cement and what is the Ambuja Cement. Consumers are ensured with number of benefits when they use Ambuja Cement and cash discount also

61

in certain situation many a time, consumer also gets different gifts like diaries, ball pens, calendars, etc. ACL occasionally arranges consumer camp so that they can get information about the company and its products. ACL also arranges training camps masons, architecture, builders, etc. Thus, we can say that sales promotion is not expenditure: it is an investment, which provides a lot of rich dividend. Thus it is integral part of manufacture in efforts.

5) MARKETING RESEARCH

Marketing research is one of the powerful and intelligent media for those who wish to be stable in market. It is the study of what, where, who, why, and how. 62

In Gujarat Abuja cement ltd. There is no any department for conducting market research. They are doing research at fixed intervals with the help of professionals. The corporate office looking after the marketing research activities. Following method has been adopted by GACL, for marketing research. 1) Survey method: by taking personal interview. 2) Experimental method: To check the distribution channel, advertising strategy, etc.

By this way they make their ideal efforts to increase their sales and improve the quality of the product.

6) ADVERTISING

In the present period of business management advertising is the most important media to stay in the market. To earn profitability in business it is very

63

necessary to advertise our product of doing its publicity. Through advertisement one can differentiate its product from the product of the other Company. With the indent of open market, cement as commodity is now shifiting towards being new ways to convince the customer to purchase their brand. They are positioning their products stressing on specific attribute which customer consider. E.g. strength, reliability, water requrement, etc and is formulating their promotional strategies accordingly. Advertising is primarily a private enterprise marketing tools; it is used in all countries of world including socialist. Advertising is the cost effective way to disseminate message, whether it is to build brand preference for all our the world to motivate developing nation. There are various advertising media like magazine, newspaper, radio, television, outdoor display, direct mail, cards, catalog, aerators, etc. The unit has adopted the competitive advertisement policy for advertisement purpose. The final budget is fixed every year. They are not having different advertisement targets for different regions. They have got a controlled advertisement target of different regions. ACL having its own full fledge advertising staff. ACL has given advertising contract to private agency named TRIKAYA GREY This agency looks after all the function regarding advertising. When company wants to advertise its product, agency prepare chart of advertisement and put it before personnel management. The executives select the proper chart from various option and it to advertisement through a selected media.

Functions of TRAKAYA GREY Designing the advertisement campaign. Deciding advertisement media and doing media scheduling. Using through various media.

Printed Media
ACL gives advertisement in newspaper, magazine and periodicals. The company also distributes printed calendars to distributors, dealers, customer and workers every year

64

 Outdoor Media
ACL also gives advertisement through outdoor media. For outdoor media they use wall printing, poster and hoardings, bus, panels, railway bogies, etc.

Audio visual media

ACL also uses media for advertisement like television, radio, theatre, etc.

7) CHART OF MARKETING DEPARTMENT

65

M.D.

SR. MANAGER (SALES) SALES OFFICER JR. SALES OFFICR SALES ASST.

JR.MANAGER (PURCHASE) ASST. MAN. PUR. OFFICER INVENTORY OFFICER

SR.CLERK PEON

JR.CLERK

PURCHASE ASST.

SR. CLARK M.D. :SR. :JR. :ASST. :MAN. :PUR. :MANAGING DIRECTOR SENIOR JUNIOR ASSITANT MANAGER PURCHASE

JR.CLARK

8) MARKET SEGMENTATION

66

A company, which decides to operate form some part of market normally, cannot serve all the customers in market. To maximum utilization of available market& resources to the sales the company adopts the market segmentation policy. 1. Trade segment: It is the biggest segment, which covers 60% of ACL market. It is the segment of the retailers where brand identification, quality of product and market penetration play very important role. 2. Builder: It is the second largest segment and very effective segment in cement marketing of builders. Builders generally purchase in large quality so price and credit policy plays vital role for this segment. 3. Government Segment: Government agencies are the largest consumer contribution about 25-30% of all India cement consumption. Special quality cement is asked at times for railways, ONGC, and irrigation department etc. 1. Institutional: This segment covers industrial units and public trust. So relationship plays big role for this segment.

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CONTENTS
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PAGE NO. 68 70 71 72 73 74 75 76 76 77 77 78

(9) 1 2 3 4 5 6 7 8 9 10 11

FINANCE DEPARTMENT Introduction Financial Planning Capitalization Chart of Finance Department Five Year Performance Financial Results Sales Realisation Industry Highlights Future Growth Planning Sales Volume Direct Cost of Production

1) INTRODUCTION
69

It is said, Finance is the arms and legs of business. A potential and capable management can run the department very effectively. In finance department each and every decision should be taken in such way that every pie of money should be utilized in adequate manner. In ACL the finance department is headed by the vice president, under him there are two groups of executives, one group of executives working at corporate office, Bombay. The second group of the executives working at side and is headed by the senior manager. Under him there are two sectional managers there is Deputy Manager, Assistant manager, Account officer, Account assistants who are responsible to their respective levels.

2) FINANCIAL PLANNING

70

Financial Planning means planning of finance. In the planning of finance not only planning is done for spending the money but also planning is done for finding and evaluating source of finance. As per Government rules and regulations ACL has the financial year from July to June and on that basis at the year, Balance sheet is prepared and net profit is found out. Finance Department of ACL explain financial planning as systematic arrangement of financial resources of the company in order to reach the current& future finance requirement. It consists of budgetary control, profitability planning, sales& cash budgeting. 1. INTERNAL SOURCE: Equity shares Reserves& surplus 2.EXTERNAL SOURCE: Secured Loans Unsecured Loans Deposits Debentures

It is tried to collect the fund at very cheap rates& utilized in the best possible manner. For best utilization of funds, ACL prepares two types of plan. Two as below: A. SHORT TERM PLANNING Financial planning is does for less than once in a year, so it is known as short-term planning. ACL does it weekly, fortnightly, monthly and quarterly basis. Account department decides the need for fund and its application as per weekly fortnightly, monthly and quarterly basis.

B. LONG TERM PLANNING

71

Planning done for more than one year then it is called long term planning. ACL financial year is July June. So ACL generally does its long term planning in the month of June. ACL does its financial planning on yearly, two yearly, and five yearly.

3) CAPITALIZATION

Capitalization refers to the decision regarding the total requirements of the long-term funds. Any imbalance between realision value of assets and total capitalisation i.e. long terms results is over or under capitalisation.

Over Capitalisation

Over capitalisation means real value of shares is higher than book value. It occurs when the realize assets are less than term funds of the company. Under Capitalisation

Under capitalisation occurs when the real value of the shares is less than the book value. It occurs when realizable values of assets are more than the long-term fund of the company. ACL is under capitalization this reflect the progressive and healthy stock of the company.

4) CHART OF FINANCE DEPARTMENT

B.O.D.
72

CHAIRMAN M.D.

ASSISTANT MANAGER (FINANCE) ASST. MAN. SR. ACCOUNTING ASST. ACCOUNTING ACCOUNT ASST. SR. CLERK JR. CLERK

MANAGER MANAGER (AUDIT) AUDIT OFFICER CLERK

GENERAL MAN. (FINANCE) MANAGER SR. OFFICER PROGRAMMER SR. CLERK JR. CLERK

B.O.D :- BOARD OF DIRECTOR M.D. :- MANAGING DIRECTOR ASST. :- ASSISTANT SR. :- SENIOR JR. :- JUNIOR

5) FIVE YEAR PERFORMANCE

73

6) FINANCIAL RESULTS

74

7) SALES REALISATION

75

Sep-06
Mumbai Ahemadabad Delhi Jaipur Kolkatta
250 200 150 100 50 0

Jan-06
214 188 202 174 192

Mar-06
193 167 178 162 178

Dec-05
172 155 156 144 171

Sep-05
171 152 158 138 172

217 193 201 178 194

Mumbai Ahemadabad Delhi Jaipur Kolkatta Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep05 05 05 05 06 06 06 06 06 06 06 06 06

8) INDUSTRY HIGHLIGHTS (Jan-Sept-2006)

120 100 80 60 40 20 0 Clinker Production Cement Production Cement Dispatches 2005 2006

Industry Highlights (mn. Tonnes)

2005 Clinker Production Cement Production Cement Dispatches 85.44 101.39 101.20 2006 88.79 113.55 113.24

9) FUTURE GROWTH PLANS

76

Projects

Expected Year of Completion

1st Quarter 2007 2nd Quarter 2007 June, 2007

60 MW Power plant at Ambujanagar Phase I Phase II Expansion at Rabriyawas 0.5mn. Tonnes Clinker Grinding station at: Farraka - 1 mn. Tonnes Roorkie - 1 mn. Tonnes 2.3 mn. Tonnes clinkerisation plant at Chattisgarh Power plants of 81 MW at various locations

January 2007 March 2007 December, 2008 December, 2008

Total Capital Outlay of Rs.1600 Crores

10) SALES VOLUME Plant wise

Gujarat HP/Punjab Maharashtra Rajasthan East GACL + ACEL % Of Total Dispatches * Includes Exports

Mar-06
1.28 0.9 0.89 0.58 0.54 4.19 11

Jun-06
1.25 1.07 0.88 0.57 0.55 4.32 11

Sep-06
0.99 1.04 0.64 0.54 0.45 3.66 10

Mn. tonnes YTD

3.52 3.01 2.41 1.69 1.54 12.17 11

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11) DIRECT COST OF PRODUCTION

Power Coal Row Material Consumables

July-Sep 2006 271 290 223 64

Apr-Jun 2006 258 269 222 55

300 200 100 0 July-Sep 2006 Apr-Jun 2006 Power 271 258 Coal 290 269 R.M. 223 222 Consu. 64 55

10) AWARDS, RECOGNITION AND ACHIVEMENT

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1989.90 For : 1989.90 For : 1990.91 For : 1990.91 For : 1991.92 For : 1991.92 For : 1992.93 For : 1992.93 For : 1993.94 For : 1993.94 For : 2001.1 For : 2000.1 For : 2002.3 For : 2002.3 For :

The economic Times, Harvard Business School Association of India best corporate performance award. National Productivity council Certificate of Merit for productivity in cement industry National Productivity council Second prize for productivity in cement industry. Trade Headers club, Madria, Spain International award for best trade name, 1991 National council of cement & building material National aware for best energy performance. Bureau of Indian awards. Rajeev Gandhi National Quality Award. Bureau of Indian standards Quality system certificate ISO 9002. National Productivity council 2nd best productivity performance award Chemical and allied product, Export promotion council, Calcutta Certificate of merit for cements and clinker export. International green and social council, Hyderabad Best production and product goal award. National award 2nd best environmental award. Special export awaed Outstanding export awaed. National award Prevention of pollution. Export Promotion Council, CAPEXIL Outstanding export performance.

11) CONCLUSION
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Ambuja cements limited among the largest cement companies in India, was set up in 1984 with the sole aim of producing the world while adhering to the most stringent international pollution-control norms. Ambuja cement group, a cement product producer in India, has its flagship cement factory located at kodinar in the state of Gujarat in India. The factory has a manufacturing capacity of 4.5 million tons per year. The factory has been operating at 100% capacity. A decade and a half later, it has achieved both. Ambuja has a capacity of 13 million tones and revenue in excess of Rs. 2,000 crores. Ambuja believes its most valuable assets arent cement plants. They are the people who run the plants. Abujas corporate mission states to strive for an environment of beyond compliance in plants, in mines and to raise environmental awareness in the neighboring community. ACLs quest for cost leadership had been driven by productivity improvement and cost cutting measures. The company had won various awards for management excellence, quality, and environment management. Ever since its inception, the company had believed in doing things in innovation and unconventional ways.

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12) BIBLIOGRAPHY

Guided who give me information about Ambuja Cement Ltd.: Nishant Pandya - Mechanical Engineer Satish Udayval - Mechanical Engineer

The site, which is taken the information about Ambuja Cement. : www.Gujaratambujacement.com www.Indiainfoline.com Www.buildingproduct.com//gujarat_ambuja_cement.com www.ambujacementltd.com www.gujaratambuja.com

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