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Indian Rayon


A PROJECT REPORT submitted by

Batch:- 2008-10
Roll no:- 08077

Director (PGDM)
In partial fulfillment of the requirements of
Tolani Institute of Management Studies, Adipur
For the award of the degree of
Post Graduate Diploma in Management

Tolani Institute of Management Studies

Adipur – 370205
JULY 2009

“Change is the Law of Life, Challenge Is the Aim of Life” to experience

the vast growing change of industries and challenges attached to working
environment in India. Summer training is the best period to know the integrity
of corporate world. On my knowledge-enhancing sojourn to Veraval for summer

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Indian Rayon

placement at INDIAN RAYON (A ADITY BIRLA NUVO LTD). Who has given
me lot of insight into the intricacies of FINANC profession in such a short stint.
No words of appreciation shall however suffice to acknowledge the guidance,
help, support and cooperation meted out to me at the organization. In this brief period,
I was afforded lot many opportunities to interact with many professionals of different
fields only to enlighten me and open up new vistas of my limited knowledge the doors
of which would have remained closed had this opportunity not been granted to me.
I am very thankful to MR. RAHUL MOHONOT (President), who has given
lot of inspiration recognition to me. The ACCOUNT team who taught me many
practical lesson MR.SHUDHIR MISHRA (Gen, Manager and Finance.),
MR.SATISH SHAH (Assistant manager). Mr. P. N. RAO (Sr. President Of Hr),
Miss. AAKANSHA TYAGI (HR. Officer) and Miss. SHRADDHA MEHTA. The
main vidya or treasure of knowledge it was impossible without Mr. J.V.DAVE
(Librarian) providing books and journals and above all a real guidance to me.
Also I pass on my heart-felt gratitude to all my faculty teachers for inculcating
such a uniquely wonderful and yet enlightening exposure only to enhance one’s
knowledge, skills and aptitude. For which I shell ever be indebted & profoundly
Great thanks for support and blessings of almighty and my parents.

Descri Page NO.
Acknow 2
Content 3
List of 4

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Indian Rayon

List of 4
List of 5
1.INTR 10
ION 12
1.1 13
2. 8
3. 27

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Indian Rayon

4. 51
5. 70
6. 96
7. 125
8. 131
9. 132
Appendi 134
Bibliogr 149


Tolani Institute of Management Studies

Indian Rayon Table title Page No.

1. Production Capacity 37

2. Worker & Staff 56

LIST OF FIGURES Table title Page No
1. Domestic Competitors – VFY 82

2. Domestic Market Share 83

3. Export Share 83

4. Caustic Market Position 84

5. Performance IR 102

6. PBIT 102
7. Production 103

8. Sales 103

9. Capital Structure 104

10. Capitalization 105

11. Current Assets 112

12. Dividend Distribution 121

13. Profitability Ratio 122

14. ROE 123

15. Net Profit Ratio 123
16. Current Ratio 124

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IR: Indian Rayon
VFY: Viscose Filament Yarn
Dept: Department
CFO: Chief financial officer
WCM: World Class Manufacturing
GRN: Good Receipt Note
TPM: Total Production Management
EOQ: Economic Order Quantity
ABC: Always Better Control
SRTEPC: Synthetic Rayon Textile Export Promotion Council
JIPM: Japanese Institute of Plant Management
IREU: Indian Rayon Employee Union
RMS: Rayon Mazdoor Sangh
IRKM: Indian Rayon Kramchari
CFD: Corporation Finance Division


The study undertaken by the student is mainly focused on the “Organization

Study” management as well as the getting exposure of all the department of the
organization and analysis of financial performance of Rayon division of Indian

The organization is a large scale successful player in VFY and Chemical

business. It has strong finance structure and good reputation in the market. The
management of the organization does the utilization of assets and funds effectively
and efficiently.

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The study undertaken with aims of following objectives.

 To determine the various technical’s for managing continuous flow of raw
materials, store and spares.
 To determine the collection and the distribution procedure of the organization.
 To determine the accounting policy and reporting system of the organization.
 Analysis of financial ratios.

Thus, this report contains the component of working capital management

system, ratio analysis etc. of the organization.


I hereby Ashok Jivani declare that I have undertaken training at INDIAN

RAYON ( A UNIT OF ADITYA BIRLA NUVO LTD). I have prepared my report on
Organization Studies at ADITY BIRLA NUVO LTD.

➢ All the matter and content involved in this report is original.

➢ All the analysis and findings are done by me.

➢ All the information and figures have been taken from different sources.

Place: Verval
Date: 10-07-2009

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Indian Rayon

Jivani Ashok
ROLL NO: 08077


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Indian Rayon


Sr. no Particular Page no.

1 Introduction 10

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2 History & Development 16

3 SWOT Analysis 17
4 Board of Directors 20
5 Plant Location 21
6 Organization Structure 22
7 Size form of organization 23
8 Implements of 5’s 25

9 Vision & Mission 26

10 Group Value 26

1.1 Project:
The project has been done on General organization study at INDIAN RAYON.
The project has been conducted specially at finance, marketing and HRM department
of INDIAN RAYON. The analyses are done on INDIAN RAYON but some of the
as a whole.
This topic was selected by me because of criticalities involved in managing
the organization study. I selected this topic to learn all the concepts related to industry.
I chose INDIAN RAYON for this purpose as INDIAN RAYON is a successful

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Every business needs investment to procure fixed assets, which remain in use
for a longer period. Money invested in these assets is called ‘Long term Funds’ or
‘Fixed Capital’. Business also needs funds for short-term purposes to finance current
operations. Investment in short term assets like cash, inventories, debtors etc., is
called ‘Short-term Funds’ or ‘Working Capital’. The ‘Working Capital’ can be
categorized, as funds needed for carrying out day-to-day operations of the business
smoothly. The management of the working capital is equally important as the
management of long-term financial investment.
This project contains all the concepts which are considered by the
manufacturing organizations. I have tried to deal with all the concepts and have learnt
many important concepts.


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Indian Rayon


(November 14, 1943 – October 1, 1995)
A formidable force in Indian industry, Mr. Aditya Birla dared to dream of
setting up a global business empire at the age of 24. He was the first to put Indian
business on the world map, as far back as 1969, long before globalization became a
buzzword in India.
The Aditya Birla Group, Epitomizing the philosophy of its Legendary leader –
the late Aditya Vikram Birla – one man who Made a difference. Rooted in Indian
values, yet global in vision.
Rock solid in fundamentals. Nurturing a culture where success does not Come
in the way of the need to keep learning afresh, to keep Innovating, to keep
experimenting. Transcending the conventional Barriers of business to send out the
message that it cares.
1.2 Indian rayon :

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Indian Rayon & Industries Limited (IRIL), a Rs 15.95 billion Aditya Birla
Group company, operates a wide range of businesses. Incorporated in September
1956. As a part of its backward integration process, IRIL set up a 33,000-tone caustic
soda plant with bi polar membrane cell technology from Krupp UDHE Gm of
Germany Located at Veraval in Gujarat, the Caustic Soda Division was commissioned
in 1997.

A 50 TPD Flaking plant was commissioned in January 1998. In the process

,Caustic Soda Lye Chlorine & Hydrogen gases are simultaneously produced from
cells as by products. The Capacity of Caustic Soda is 100 TPD, Chlorine gas and
Hydrogen gas are 88.60 MT and 29400 nm3, per day respectively. The Chlorine and
Hydrogen gases produced from cells are further purified in respective sections. The
products produced are of high quality since the process demands very high quality of
raw materials. The Hydrochloric acid is produced with chlorine and Hydrogen gas.
The capacity of HCI is 90 TPD on 32%. About 30 per cent of Caustic Soda is for self-
consumption and remaining is for sales Caustic soda lye produced is of 32%
concentration , chlorine and hydrogen are produced as gases from cells. These two
gases are further purified in respective sections. The Plant is divided in to the
following sections Brine Section Catholyte & Acolyte Handling Chlorine
Liquefaction ,Hydrogen Bottling, Caustic Evaporation & Flaking Hydrochloric Acid
Synthesis Sodium Hypo Chlorite. There are five chemical plants – Acid plant, Carbon
– Disulphide plant, Water treatment plant, De-mineralization plant and effluent
treatment plant.

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Transcending the conventional barriers of business to send out a

message that "We care".
1.3 introduction to Aditya Birla Group :
The Aditya Birla Group is India’s first truly multinational corporation. Global
in vision, rooted in Indian values, the group I driven by a performance ethic pegged
on value creation for it multiple stakeholders. A US $ 7.5 billion conglomerate, with a
market capitalization of US $ 8.5 billion, it is anchored by an extraordinary force of
72,000 employees belonging to over 20 different nationalities. Over 30% of its
revenue low from it operations across the world. The Group’s products and services
over distinctive customer solutions. Its 72 state of art manufacturing units and sect
oral services span India.

A US $28 billion corporation, the Aditya Birla Group is in the league of

Fortune 500. It is anchored by an extraordinary force of 130,000 employees,
belonging to 25 different nationalities. In India, the Group has been adjudged "The
Best Employer in India and among the top 20 in Asia" by the Hewitt-Economic Times
and Wall Street Journal Study 2007. Over 50 per cent of its revenues flow from its
overseas operations.
The Group operates in 25 countries — India, UK, Germany, Hungary, Brazil,
Italy, France, Luxembourg, Switzerland, Australia, USA, Canada, Egypt, China,

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Thailand, Laos, Indonesia, Philippines, Dubai, Singapore, Myanmar, Bangladesh,

Vietnam, Malaysia and Korea.
Aditya Birla is organized into various subsidiaries that operate across different
sectors. Among these are viscose staple fibred, non-ferrous metals, cement, viscose
filament yarn, branded apparel, carbon black, chemicals, Modern retail (under the
'More' brand of supermarkets, and also under the Trinethra, and Fabmall brands until
recently), fertilizers, sponge iron, insulators, financial services, telecom, BPO and IT
services. The Group consists of four main companies, which operate in various
industry sectors through subsidiaries, joint ventures, etc. These are Hindalco, Grasim,
Aditya Birla Nuvo, and UltraTech Cement. The Group has been adjudged the best
employer in India and among the top 20 in Asia by the Hewitt-Economic Times and
Wall Street Journal Study 2007.
The origins of the group lie in the conglomerate once held by one of India's
foremost industrialists Mr. Ghanshyam Das Birla. He bequeathed most of these
companies to his grandson, Mr. Aditya Vikram Birla – the father of the current
Chairman of the group, Mr. Kumar Mangalam Birla. Mr. Kumar Mangalam Birla is
the grandson of Mr. Basant Kumar Birla, who heads his own independent business
conglomerate. Several other members of the Birla Family, own and run their
independent business groups.
 Globally the Aditya Birla Group is:
 In India:
• A metals powerhouse, among the world's most cost-efficient aluminum and
copper producers. Hindalco-Novelis is the largest aluminum rolling
company. It is one of the three biggest producers of primary aluminum in
Asia, with the largest single location copper smelter.
• No.1 in viscose staple fibred.

• The fourth largest producer of insulators.

• The fourth largest producer of carbon black.

• The 11th largest cement producer globally, the seventh largest in Asia and the
second largest in India.
• Among the world's top 15 BPO companies and among India's top four.

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• Among the best energy efficient fertilizer plants.

 In India:
• A premier branded garments player.

• The second largest player in viscose filament yarn.

• The second largest in the chlor-alkali sector.

• Among the top five mobile telephony companies.

• A leading player in life insurance and asset management.

• Among the top three supermarket chains in the retail business.

Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where
success does not come in the way of the need to keep learning afresh, to keep
 Beyond business — the Aditya Birla Group is:
• Working in 3,700 villages.

• Reaching out to seven million people annually through the Aditya Birla
Centre for Community Initiatives and Rural Development, spearheaded
by Mrs. Rajashree Birla.
• Focusing on: health care, education, sustainable livelihood, infrastructure and
espousing social causes and running 41 schools and 18 hospitals.

History& development :

Indian Rayon & Industries Ltd. Incorporated in 1956 by Morarji.j.Vaidya for

the production of rayon filament yarn, Indian rayon & Industries was taken over by
Aditya Birla in 1966. It was formally known as Indian Rayon Corporation Ltd., which
is 1600 cr. Multi-product, and multi-location industrial conglomerate, a part of Aditya
Birla Group.

A group consolidating its position under the chairmanship of Shri Kumar

Mangalam Birla taking the aspirations from the legacy of a leading industrialist, Late
Shri Aditya Vikram Birla. The organization of a long, illustrious & magnificent legacy

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spread over a period of 125 years. The organization came on the sphere of Rayon
Industry in 1963, where Late Shri Lal Bahadur Shashtri laid down its foundation

Shri Morarji Vaidya of Vaidya Group started this organization with production
capacity of 4MT per day in collaboration from Von-Kohom International of USA. In
1966 it was taken over by Shri Aditya Vikram Birla and since then has been a part of
the AV Birla combine.

In 1976, it was merged with Jayashree Textile & Industries, which owned 3 textile
units & an insulator Unit. Indian rayon & industries limited, a flagship company of
the Aditya Birla Group, is among India’s top 25 corporations with a turnover of over
Rs.15 Billions.

SWOT Analysis:
The overall evaluation of division like strengths, weakness, opportunity and
threats is called SWOT analysis.

 Strength:
➢ Yarn produce here is of high quality then also management always tries to
increase the quality of yarn in order to fulfill their potential customer and new
ones. Total produced items+ wasted are being sold; this shows the efficiency
of sales activity.

➢ Better pacing, carriage and transportation system with all modern equipment
and good after sales service.

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➢ Regular meeting and seminars are conducted in the entire department in order
to find our loopholes and solve the same.

➢ Division also have continuous spinning yarn department in which the modern
technology is used for the spinning the yarn and its is adopted fro Germany.

➢ Divisions have domestic as well as export market and for this they are doing
the Internet marketing in order to find new markets.

➢ Division has WCM (World Class Manufacturing) ceil in which they look out
for better way of manufacturing.

➢ ISO 9002 for the better quality of the production carries division.

➢ Division is certified by ISO 14001 for the good environment management

system, for their division has hoti-culture department in order to look to the
surrounding environment.

 Weakness:
➢ Cost of production is more due to existence of very old technology installed in
this division.

➢ Many process steps and process is more sensitive to normal process variations.

➢ Division is unable to pay more attention toward proper human resource


➢ Location away from consuming centers.

➢ Bigger process cycle/higher process stock.

 Opportunity:

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➢ Division should find new market area for its products specially chemicals.

➢ More research activity should be done, as there is chance of finding new


➢ VFY use for certain textile items is specific and indispensable.

➢ Quality has ore weight age in international market. Indian rayon Pot Spinning
Yarn is next to Asahi Japan and better than Chinese and Russian Yarn used in
international market.

➢ Biggest opportunity, when opening up of global market MFA expires in 2005.

Quota restriction will boost the export of yarn directly and though Textile in
World’s tows biggest market Europe an US.

 Threats :
➢ Government policies are the main hurdles of the division’s performance.

➢ Emergence of cotton threads made the market share of Rayon Yarn low.

➢ Fashion changes are also basic threats for such division.

➢ The Viscose Process is highly polluting. The basic raw material (pulp) is again
pollution prone.

 Challenges ahead
The Rayon division along with the industry facing the following challenges.
➢ Comparatively poor quality.
➢ Unregulated dumping of the products from China.
➢ Higher cost per Kg. of production.

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➢ Sustaining sales volume.

Chairman; Mr. Kumar Mangalam Birla

President: Mr. Rahul Mohnot

JT.President (F&C) Mr. D.P. Modani

JT. President (Marketing): Mr. K.D. Joshi

SR.VICE PRESIDENT (HR): P. Narsimah Rao.

Chief Finance Officer: Mr. Adesh Gupta

Company Secretary: Mr. Devendra Bhandari

Advisors: Shri M.C. Bhareja

Shri S.B. Agrawal
Shri R.I. Bawala

Auditors: Khimji Kunwarji & Co. Mumbai

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S.R. Batliboi & Co

Registered office & corporate office:

Indian Rayon Indian Rayon

Junagadh – Veraval Road, (Corporate Finance Division)
Veraval – 362 266, Gujarat (India) A-4 Aditya Birla Centre,
Tel.: (02876) 245711 S.K. A hire Marge,Worli,
Fax: (02876) 243220 Mumbai-400 030.

For any Company the location of its manufacturing unit (plant) is very
important. Easy availability of raw material, cheap labors, Transport etc are better
features for selecting location of plant.
For IR (Indian Rayon) transportation through sea route is easy, as it is located
at sea cost of Veraval. By sea route raw material is imported from foreign countries. It
also Export through sea route.
It has large demand local market so they are very near to market E.g.: -
Gujarat, Maharashtra, Chennai, and Delhi.



01 GRASIM Viscose staple fiber, cement sponge, iron textiles,

exports, software consulting

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02 HINDALCO Aluminum

03 INDIAN RAY ON Viscose filament yarn, textiles, insulator, carbon black

04 INDO GULF Fertilizers, copper

05 BIRLA GLOBAL FINANCE Financial services

06 HIGI INDUSTRIES Files, casting gases

07 ESSEL MINING Iron and manganese or mining Ferro alloys, HPE

woven sacks
08 SHREE DIGVIJAY Blended yarns

Aditya Birla Group of companies:

Organization Structure

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Tolani Institute of Management Studies

Indian Rayon

Size & form of organization :

The size of this particular unit “INDIAN RAYON & INDUSTRIL LTD” is
large scale industry. We can say that of this unit is heavy industry, because it processes
all feature of heavy industries like it has large amount of capital, have a production
cycle & also uses heavy & costly machinery & bulk material. Hence it is quite nature
that this industry requires large number of person.
‘INDIAN RAYON & INDUSTRY LTD” is a public limited company this
company is in corporate on 26th September, 1956 under the companies Act, 1956 &
they have started public issue. This production process is also long duration.

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Aditya Birla Nuvo Ltd.(Rayon Division) consists of all three level of

✔ Top level management
✔ Middle level management
✔ Bottom level management
Top level management of Indian Rayon is at the corporate office of Aditya
Birla Nuvo Ltd. Consists of board of company involving all major Decisions related
to the company.
Middle level management of Indian Rayon is within the premises of Factory
called “ADMINISTRATIVE BLOCK” consisting of all major departments.
➢ Human Resource Department.
➢ Finance & Accounting Department.
➢ Marketing Department.
➢ Production Department.

Here each Department has his Department heads. The organization adopts
Departmentalization. The position indicating on horizontal line as per relationship.


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“Together Let’s Achieve the Excellence to Beat the Best”

To position ourselves as the leading edge word- class corporation in an

increasingly competitive an borderless world, our group’s carefully revolved around
customers our employees and our shareholders our aim is to deliver value of these key

In our Endeavour to attain our goals, world- class manufacturing programmed

will be the driving force of all of our operation. We have inculcated a couture which
aims to Zero pollution, Zero customer complaints and Zero Abnormally movement.



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a) “S”(Seiri) : Sort out unnecessary items in the work plase & discard

b) “S” (Seiton) : Arrange necessary items in good order so that they can
be easily picked and used. ( Neatness)

c) “S” (Seiko): Clean & maintain workplace so that there is no dust and

d) “S” (Seiketsu) : Standardize the work procedneure for everything use


e) “S” (Shitsuke) : Develop a habit of doing right things a standardized.



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During the literature review the attempt was made to undertake the detailed
review of all the secondary data available regarding the chemicals. The major step of
the literature review is as follows:
➢ Detail information regarding the product was collected.
➢ The list of the industries lying in the each end use segment was collected.

 The literature review covered the information:

✔ Product literature of various companies.
✔ Trade journals like chemical weekly and chemical industrial news.
✔ Chemical weekly-buyers guide.
✔ Other data given by the department of caustic marketing.

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Tolani Institute of Management Studies

Indian Rayon


Tolani Institute of Management Studies

Indian Rayon

As per the project has to be completed within the resource limitations of the
time, money, etc. the systematic methodology was adopted to have the efficient
utilization of resources and to provide the guideline for carrying out research. The
framework of the methodology adopted had really help for completing the project
easily, economically, efficiently and timely. Throughout the complete project work
followed without any major changes in it.

 Objectives:
➢ To find out level of product quality and quantity by Indian Rayon.
➢ To find out delivery performance.
➢ To find out quality of documentation about order status.
➢ To find out availability of after sales services.
➢ To find out the complaint about the product.
➢ To find out the response of the marketing persons of the Indian Rayon.

 Field research:

Secondary data has its limitations. It dose not provide detailed information
regarding present policy and future scenario etc. in detail. To overcome this limitation
of secondary data, the main research was conducted. The main objective of field
research was:

➢ To have information regarding customer satisfaction or dissatisfaction. So that

the company can bridge this gap for healthy relationship.

➢ To have information regarding company’s strength, weakness, opportunities

and threats.

 Details about the field research are given below:

➢ Sampling plan:

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In this field study, the sampling plan is not universe because I have visited only customers of
Jetpur, Navagadh, Veraval and Ahmadabad.

➢ Data collection method:

There are many methods of data collection. Here, we will use the questionnaire
method having some important questions.

The research has taken depth interview of each respondent, the

researcher also tried to ask questions, even if they were not in questionnaire for
getting more information. The interview was structured one. Thus during
interview specific pattern of questions or specific questionnaire was followed for
one detailed questionnaire was prepared. During the field survey, interview was
mostly conducted with key person of the unit.

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Tolani Institute of Management Studies

Indian Rayon


Sr. No. Particuler Page

1 Introduction 29
2 Plant of the Company 32
3 Introduction of Company’s Product 34
4 Manufacturing Process 35
5 Production Capacity 37
6 Utilization Product 40
7 Pslant Layout 41
8 Material Handling 42
9 Purchase Department 43
10 Inventory Department 46
11 Qulity Policy 48
12 Production Planning and Control System 49
13 World Class Manufacturing 50

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Production means creation of utilities and it covers all the activities of

procurement,allocation and utilization of resources such as labour, energy material,
equipment, machinary etc.
Every industrial organisation must do two things:
✔ One is produce something.
✔ The other is to market what is produced.
Production is a fabrication of physical object through use of Men,Material &

“production Manegement deals with the decision making related to

produstion process so that resulting goods or services is prodused according to
specification, in amounts and by schedule demanded and at minimum cost”

Production must be oprated is an economic and efficent manner,because cost

of production isa vital factor in facing market compitition and ensuring normal profit
or return on investment.

The main raw material for the manufacture of yarn is wood pulp. Different
types of pulp are used in the process depeding upon the market availbility and for
acquiring the required quality. The pulp is also imported. Apart from pulp, the other

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major raw material are castic, sulphric acid and carbon di-sulphric. The Company has
gone for backward intergrating by manufacturing sulphric acid and carbon di-sulphric.

• Material Production Output
• Labour
Process • Produ
• Capital ct
• Energy • Servic
• Informati e


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Tolani Institute of Management Studies

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Rayon Plant:

The Rayon Plant located at Veraval is an ISO 9002 and ISO 14001 certified
Plant. The main product of the Rayon Plant is the Viscose Filament Yarn apart from
chemicals like Sulphuric Acid, Carbon-di-sulphide, which are both consumed in-
house and Sodium Sulphate, which is a by-product.

The Installed capacity is as follows:

Viscose Filament Yarn : 49 Tonne per day Company is the market leader in
terms of Sales and Quality.
Exports constitute about 17% of the total turnover.

Power Plant:

To meet the power and steam requirement of the Rayon & Caustic Plant, the
company has set up a 34.5 MW Thermal Power Plant with the state of art technology.

As the international trends in fuel and power management goes strongly in

direction of producing pollution free power, two CFBC [Circulating Fluidized Bed
Combustion] type boilers have been installed whose

Capacities are as follows:

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No. Of boilers 3

Capacity of Boilers Steam Quantity 50x2 TPH & 105x1 TPH,

Steam Pressure 90 Kg/cm2, Temperature of
SH steam 510 degree Celsius
Coal Handling Capacity 150TPH

The CFBC boilers are considered to be the most efficient and environment
friendly boilers and it provides excellent combustion and emission characteristics and
is flexible in using different combinations of fuel.

Caustic Soda Plant:

Caustic soda being one of the major inputs for producing Rayon a modern
Membrane Cell Technology Chlor-Alkali Plant has been installed and commissioned
in the year 1997. The Caustic Plant is integrated with Power Plant & Rayon Plant.
Caustic Soda Plant is highly Power intensive & integration with Power Plant provides
multiple advantages.

It is based on 'Membrane Cell Technology' from UDHE (Germany). The

technology is most modern and highly energy efficient and completely free from
hazardous pollution. The plant caters to the requirements of Rayon Plant as well as
nearby market.

Introduction of the company’s products :

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There are elevan units working under IR division of Birla Group. In every
unit various are produced. Here we can mainly concerned with Rayon’s division,
➢ Viscose Filament Rayon Yarn.
➢ Sulphuric Acid.
➢ Carbon Di-Sulphide.
➢ Anhyrlrous Sodium Sulphate.
Vital and essential for viscose filament rayon wood pulp, caustic soda (NaOH)
,WHILE FOR THE PRODUSTION OF THE Sulphric Acid Sulphur, Oxygen gas and
water are requried for production of Carbon-Di-Sulphate.There is separate plant for
each product. The fourth product is a by-product. The use of each product is as under.

 Uses of Rayon Yarn:

➢ Mantal of gas lanterns.

➢ Dress material and shree.
➢ Elastic tapes.
➢ Fancy yarn, Finishing fabric and laces.
➢ Embroidery works.
➢ Wrap for weaving for suiting and shirting.
➢ Making border design stick with dress materials ets.

 Uses of Sulphuric Acid:

➢ Chemical industry.
➢ Agro-Chemical industry.
➢ Paint industries.
➢ Dye industries.
➢ Medicine industry.
 Uses of Carbon-di-sulphide:
➢ Glass industries.
➢ Pharmaceutical industries.

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Indian Rayon

➢ Rayon industries.
➢ Base of Agro-Chemical industries.

 Uses of Sodium Sulphate:

➢ Glass industries.
➢ Paper industries.
➢ Dye industries.
➢ Paint industries.


The main materials required for Rayon Yarn are:

Raw-materials & chemicals :

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Raw-Materials Chemicals
Wood pulp (Cellulose) Sulphuric acid
Wood fibred Carbon Di sulphide
Flax fibred Sodium Sulphate
Staple & Synthetic fibred Caustic Soda
Cotton Staple & Synthetic Yarn
Carbon Black Feed Stock / Coal tar/ Fabrics/ Others

Above 80% of the Wood pulp is importing form outside India, Since it is
imported form Canada, Sweden and South Africa. The sheets of Wood pulp are made
for cellulose form the following three:

➢ Eucalyptus (S.A)
➢ Spruce (Canada)
➢ Bamboo (India)

Production process :
It undertakes different type of departments which are as under

Viscose Department

Ripening Room

Spinning Department

After Treatment Department

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Textile Department

Packing Department



Production capacity means capacity of the firm or an organization to produce

the products in a specific time. Though, IR is an emerging company, it has got great
increase in its production capacity.

Indian Rayon is second largest in production of Rayon.

Business-wise capacity
As on 31 March 2008 31 March 2009
Manufacturing capacity
Viscose filament MTPA 16,400 16,400
Caustic soda MTPA 82,125 91,250
Insulators MTPA 38,800 38,800
Carbon black MTPA 2,30,000 2,30,000
Flax yarn Spindle 15,340 15,084
Worsted yarn Spindle 25,548 25,548

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Wool combing Cards 6 7
Linen fabric Looms 107 106
Urea (Reassessed MTPA 8,64,600 8,64,600
installed capacity)


Product produced is used in following industries:

 Garments:

In the garments segment, the division’s performance has been encouraging as

it registered profitable growth. The long – term out look for the business is positive.

The division will continue to maintain its edge through innovative product
differentiation, aggressive expansion of its retail reach in malls and high streets.
Providing the consumer international class experience of its life style brands. The
company plans to introduce international labels in the current fiscal policy.

 Carbon black:

With the upswing in the Auto & Tyre sector, the company’s carbon black
business continues with its upward climb. There is reason to believe that this
buoyancy is here to stay for a while.

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Company is amongst the lowest cost producers in India. A simultaneous focus

on R & D to produce value added glades would help leverage the Birla Carbon
Brands & expand markets.

 Textile:

➢ Our company textile division performance has improved substantially, on the

wings of its linen & fabric flax yarn.
The year ahead seems to be good with the boost given to the textile sector and
encouraging environment post WTO. The company strategy will be to promote linen
fabric as a regular wear by focusing on quality of comfort and wider availability
across retail chains. It will concentrate on niche segment to improve margins.

 Insulator:

Insulator JVS should contribute positively with the stabilization of its new kiln
& quality efforts.


✔ Acid Plant
✔ Carbon-disulphide Plant
✔ Water Treatment Plant
✔ Demineralization Plant
✔ Effluent Treatment Plant

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Tolani Institute of Management Studies

Indian Rayon

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Indian Rayon


“A good plant layout is one which allows material rapidly and directly for
processing. This reaches transport handling, clerical and after costs down per unit,
space requirements are minimized and reduce idle machine and idle main time.”

Objectives of ideal plant layout :

(1) Minimization of material handling.

(2) Avoidance of industrial accident.
(3) Better working conditions for the employees.
(4) Effective utilization of resources.
(5) Improves the quality of operations
(6) Achieves minimum overall cost.

IRadopt process layout in his Viscose Filament yarn plant also in caustic soda
plant. There is separate department of each process such as viscose dept, spin bath
dept, spinning dept, after treatment dept, textile dept and packing dept and raw
material, semi finished goods and finished goods are transfer one process to another
process by using conveyers, rails, cranes, trucks.


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“Material handling is the art and science involving the movement, packing
and storing of substance in any form.”
-- American Handling society
Material handling can be defined as “controlling the amount, location,
movement and timing of the various commodities used in and produce by the
industrial enterprise.”

INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) is totally using the
automatic process for production, but at certain stage uses equipment for the sifting of
raw material. The company use trolley as an equipment for material handling in its
viscose section to brought up the wood pulp from the storage department an in after
treatment department to put the cakes in washing and knitting. After the last stage of
production, the final product sends to the packing section with the help of trolley.
Many a times INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) uses
➢ Conveyers
➢ Rails
➢ Crain
➢ Trucks
(For the supply of raw material to various departments.)
The diesel power house of the INDIAN RAYON (A Unit of Aditya Birla Nuvo
ltd.) uses conveyer belts for the supply of coal that is import from Bihar. Where the
other raw materials like wood pulp, Sulphuric etc. are brought by land route. I.e. rails
and truck to the factory.


Purchasing function is the hart of any business and it is suppose to be cast

goldmine to profits.

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“The task of purchasing is too related to going to the open market, finding
the desire material at the lowest possible price and selecting the supplier to offer
minimum prices having required quality of material.”

➢ Purchase the right quality of material.

➢ To purchase right quantity of material.
➢ To make the material available at the right time.
➢ To purchase the material at the right price.
➢ To purchase material from right source.

Purchase procedure of Indian Rayon

Inventory department :

Inventory dept. of INDION RAYON (A unit of Aditya Birla Nuvo Ltd.)

scientific mounting level method. In this company, inventory control is long
process.Any dept. that is in need of any material prepares an indent after filing it is
sent to the purchase dept. of the company.While the placing the purchase order
INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) Considers the following factors.

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➢ Old rate of the product

➢ Lowest bids
➢ Reputation of supplier
➢ Delivery period
➢ Payment terms
➢ Technical evolution
➢ After sales service
➢ Performance guarantee

The above question are comparing on the basis of comparison chart which
they prepare with the help of all the information. The decision of purchase is one by
the authority. The purchase order is placed on the basis of feasibility. So, we can say
that INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) applies integrated material
management concept.

 Store management :

The store dept. of the INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.)
receives the raw material which was ordered from the supplier. This dept. prepares
good receipt note (GRN). One copy of GRN is send to that dept. which has placed an
indent. Particular dept. approves the materials and sends requisition to store dept. and
collect the material. On the basis of GRN, final invoice is paid Account dept.

 Inventory control :

“Plant maintenance ensures that all production facilities are in serviceable

condition at required time, causing no production hold-up, interruption, or loss of
individual efficiency for operation.”

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The objective of plant maintenance is to improve functional reliability of

production facility to glorious opportunities. INDIAN RAYON (A Unit of Aditya
Birla Nuvo Ltd.) follows word class manufacturing policy (WCM) of plant
maintenance, which it has adopted in the recent years. However formally it was using
total productive maintenance (TPM) of plant maintenance.

Inventory control one of the key factor on the basis of which the company can
take, decision on behalf of that the cost can be controlled. If the company having a
good control on the inventory than the cost can be controlled more effectively.
The inventory control helps the company in forecasting the feature demand of the
goods as per the requirement of the production and the market.

The commonly used inventory control methods that a company uses are the
EOQ and ABC.

 EOQ: - (economic order quantity) :

In this method the feature demand of the inventory is been identified as per the
requirement of the company, the key focus in this type of inventory control method is
the optimum utilization.

 ABC: - (always better control)

In this type of inventory control method the name itself states the use and
potentially which lies in theirs method. In this method the goods are divided in such a
way that in response to its use and order and cost as the goods are divided in parts as
according to A.B.C.

Quality control :

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“Quality is an asset which may be offered to the potential customer of a

product or a service.”
It mainly depends upon two factors:

1. product-service design
2. operating system-makes a product/provides a service

Quality policy :

“TOTAL QUALITY MANAGEMENT” covers all stages of manufacturing,

starting from a careful selection of raw material, technology, maintenance of
equipment, training of people to maintain and operate the equipment. We operate
with a very clear “Customer Focus” with regards to the Quality of Products and

 We are committed to:

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➢ Meets customer‘s expectation of quality an services in premium segment.

➢ Maintain high morale of employees.
➢ Use eco-friendly technology and maintain pollution free environment.

➢ Pursuit of excellence in the quality of our production techniques.

➢ Commitment to preservation of the ecological balance through a judicious use
Of natural resources.
➢ Enhancement of the competencies of our human assets.

 The Quality speaks for itself:

They are the first “Rayon Plant” in India to be accredited with, “ISO – 9002
Certification.” They are even the first “Rayon Plant” worldwide to get the “ISO 14001

They are the only “Rayon Company” to have won the prestigious “Synthetic
Rayon Textile Export Rayon Promotion Council (SRTEPC)” award four years in a
row since 1995. This be speaks the stress we lay on internal quality controls. Their
standards of inspection are most stringent.

The Quality Assurance System ensures Consistency in

➢ Whiteness

➢ Brightness

➢ Denier

➢ Number of filaments

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➢ Colour

➢ Cone weight


 Total production management (TPM) :

Maintenance is the key to zero loss, zero breakdowns, zero accidents, and zero
defects. It is in short a Zero-sum philosophy. This concept was put forward by the
Japanese Management expert Seiichi Nakajima in his gospel “Introduction to total
production Management” in 1984 Yamaguchi works at the Japanese institute of plant
management (JIPM). This is a temple of total productive Management (TPM).
Yamaguchi is teaching TPM to Indian companies.

IR follows eight pillars of total production management (TPM), which is


(1) Autonomous Maintenance (Jishu Horizon).

(2) Focused Improvement (Kaizen).
(3) Planned Maintenance.
(4) Quality Maintenance.
(5) Education & Training.
(6) Mass Production design & initial flow control.
(7) Office Improvement.
(8) Safety hygiene and environment control.

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The economy is integrated to the global economy and industry is facing
global competition. It is therefore, necessary to improve performance so IR & IL co.
adopt WCM model to improve performance and fitting with global competition.
The following characteristics of WCM are used to fulfill the customer
(1) Products of high quality.
(2) Products at the right price.
(3) Product with the enhanced features.
(4) Product in a wide variety.
(5) Products delivered in time, in fact short time.
(6) Products delivered with shorter lead times.
(7) Flexibility in fulfilling the demand for the product.

The above listed performance measures are external to the manufacturing

system but are vital for the success of the organization. IR & IL Co. follows WCM
excellence model for competitive advantage as we seen in above diagram.

WCM POLICY followed by IR:

→ To maximize equipment effectiveness

→ Competitive and preferred choice of customers.

Achieve zero breakdowns, zero defects, and zero accident and eco-friendly
environment through innovative methods with total involvement of our employees
and b continuous up gradation of technology. This will lead us to excellence and
perfection in all spheres of management, to be globally.

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Indian Rayon


Sr. no. Particular Page. no.

1. Introduction 53
2. Organization Structure 54
3. Manpower Planning 56
4. Recruitment Selection 58
5. Training & Development 59
6. Promotion & Transfer 60
7. Performance Appraisal 61
8. Job Description 62
9. Wages & Salary 63
10. Trade Union 64
11. Employees Benefit & Service 66
12. Time Keeping System 67
13. Working of ESI System 68


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“Management is the development of people and not the direction of the

things……management and personnel administration are one and the same. They
should never be separated.”
Lawrence A.
Management is the most important resources among all the resources. How
many funds you have, how many machines you have, how many technological
advancement you have, nothing will work if you don’t have sufficient manpower. So
man is most important resource, so a medium is required to manage this resource. So
there is personnel department.

With reference to INDIAN RAYON & INDUSTRIES LTD., there is personnel

department divided into two parts is HRD & TRAINING and the other is
PERSONNEL DEPARTMENT. In which the responsibility is also divided:


➢ It deals with staff in the organization & accountable to vice president.


➢ It mainly deals with labor force from their recruitment to the all officer connect
labor & workers as consulting agent.


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Tolani Institute of Management Studies

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Manpower is the key economic resources which should demand the same
attention from the company that it gives to planning at finance, equipments, raw
materials, production, sales and profits. A manpower planner functions should be:

➢ The interpret production & sales forecast in terms of manpower requirements.

➢ To indicate the manpower constraints on company policy for the future.

Manpower planning is the process of assigning the right number of people right
kind of people at the right time doing work for which they are economically most

 Importance of manpower planning:

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In Any organization manpower has its importance due to following reasons.

✔ The executive sources of knowledge for an organization & people.

✔ Industrial knowledge is the starting point of organization knowledge.
✔ The knowledge of each individual can’t be replicated.
✔ Only people can spread knowledge resources across the company.
✔ It is only people who can convert knowledge into efficient action.

 Manpower planning for workers:

All the departments need additional requirement of manpower to contact the
personnel department, which makes the arrangement for the required manpower.
Every month the personnel department issues personnel reutilization from the all
departments and this forecasts its manpower demands of each department accordingly
the requirements are made.
The worker is divided into three categories:

✔ Permanent
✔ Badly
✔ Temporary
The badly worker is the substitute for the permanent worker in the absence of
the permanent worker.

The temporary worker is employed for a limited period for a temporary work.
The causal worker is employed for an occasional work. The present split up to
workers & staff IR is given below:

1 Permanent workers 2300

2 Badly workers 410
3 Temporary workers …..

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4 Casual workers …..

5 Apprentices workers 25
6 Trainees workers …..
7 Staff workers 505


 Recruitment:
Once a determination of human resource recruitment has been made, the
recruitment and selection process can being. Recruitment is the process to dissolve the
sources of manpower to meet the recruitment of staff in schedule and to employee
effective measure for attracting that manpower in adequate number.
Recruitment means to seeking or obtaining recruits to replacing or to fill up
deficiencies. It refers to the entire process and set up activities involved in bringing
together prospective employees.

➢ Recruitment process:
Recruitment process for blue collar worker is called traditional method. These
are stages of recruitment process for blue collar workers. They are as follows:
✔ Within organization. i.e. permanent workers.
✔ Badly or temporary workers.

✔ Trainees.
✔ Apprentices.
✔ Casual applicant.
✔ Employee recommendation of trade union.
✔ Labor contractors.
If any worker remains absent or leave the job and it become possible to
transfer any other worker in the vacancy.

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If any worker dies than as per vacancy available to his son is given to “sons of
the souls” is recruitment of labor.

 Selection:
Selection is the process to choose or picking up the suitable candidate by
rejecting or excluding unsuitable.

Selection is also negative process. In selection some employees are selected

for particular job but many employees are rejected. For the workers, it is made by
supervision and labor welfare officers. At the time of selection physical fitness, past
experience, honesty, etc. are given importance.

For technical staff and administrative persons, Indian Rayon & Industries Ltd.
Arranges a written test and it is followed by personal interview. The performance of
candidate in both written test and oral test is given base for selection. The selected
employees are taken on the period of six month or twelve month. All the employees,
if found suitable during the period are chosen during the final selection and gets
permanent job. For white collar job, the company adopts the following stages for
selecting prospective candidates.

✔ Reception of application.
✔ Preliminary interview.
✔ Application blank.
✔ Psychological test.
✔ Interview
✔ Reference checking
✔ Medical examination
✔ Final selection

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“Training is an important aspect of personnel which increases the
knowledge and skill of a worker for doing a specific job.”

 Training for the workers:

The HRD Department prepares schedule for the workers in need of training
to develop a job. A company’s main purpose is to give knowledge about new
technology and confirm the main purpose of giving training is:
✔ Improving skill & knowledge of workers towards qualities of
✔ To give the technical knowledge and safety measure training.
✔ Discipline, good conduct and job responsibility.
✔ Operating the working programs.

 Training for the officers:

Training is important for success of every business. It depends on manager’s
intelligence and skill and company has to give training to the officers, so they can
match with new technology. So company has to send officers into conference,
seminars, national & international conference from which company can take benefit
in proper time. So officers need training for these benefits.

 Training for the supervisors:

Supervisor plays a very vital role in organization and supervisor is also
important for industrial piece. So supervisor should be trained for their work by
increasing workers efficiency. Supervisor can increase production. So by this way,
company could reach to the goal by help of supervisor.IR gives good training to the
supervisors are trained under the guidance of the chief executive of the company.


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➢ Promotion:
Promotion means increase in authority, responsibility, status, salary, etc. it
means to do up liftmen of an employee within the organization and push in the
direction of top level.

The promotion policy of IR is based on seniority and merit consideration and

stressing more emphasis on his seniority. Employees are promoted considering his
ability to deal with problems of people, subordinates, etc.

Employees are promoted within the organization in case of vacancies or new

post creation. In case of promotion of unskilled and semiskilled worker is same as
administration department through seniority and merit basis.

➢ Transfer:
Transfer means change in work place or department. The authority,
responsibility may be more or less or remain constant in transfer.

Transfer is a shift causing movement of individuals from one position to

another without change in duties. IR constitutes or various units located at different
places within the country. Yet inter unit transfer practice is not followed by IR.


➢ Motivation:

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“The emphasis industrial psychology has shifted from the studies of the
isolated individual and physical environment to the consideration of motivation &
IR motivates staff by performance appraisal. Every staff member recognizes
his work and he always tries to do better work & effective work if his work is

IR motivates staff by performance appraisal. For e.g. their regular work,

honesty can also such things are being kept in mind.

➢ Quality circle:

Quality circle is a group of workman working voluntarily for improvement

of their total quality of work. The basic objective is to help workman in developing
themselves. There are 36 quality circle in IR.


The first & immediate product of job analysis process is the job description. It
is an important document which is basically descriptive in nature & constitutes a
record of existing pertinent job facts.

In IR the matter of job description being confidential, we have not been given
the more information about its uses, contents, written methods, etc.

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Just we have been said that training & HRD department prepares a file for each
job for the same purpose.
It includes:

➢ Title of job
➢ Nature of job
➢ Job summery
➢ Working condition
➢ Supervision given or received.


The basic purpose of wage & salary administration is to establish and

maintain equitable section & is concerned with financial aspect.

In concern with operation of manpower administration, preparation of wage

sheet is through the part of personnel department. It has fixed payment as per the time
rates. This unit pays to workers as per department wise and between the 4th to 10th of
every month.

The worker payment is comprises of basic pay + dearness allowances +

overtime + medical + HRD. Medical allowances are given to all employees of the

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organization. Permanent workers are provided 10% and badli workers are provided
7.5% allowances.

Clerks are provided as per the terms and condition of the government from

In IR wages & salary is always paid through the bank to the worker and staff
from the bank counter.

There are two systems by which wages are paid. They are:
➢ Time wage system
➢ Piece wage system


There are more than 4200 employees in organization and for sake of
protection of their rights have formed their trade union. Presently, there are 3 trade

➢ Indian Rayon employee union (IREU)

➢ Rayon mazdoor sangh (RMS)
➢ Indian Rayon karmachari (IRKM)

Only workers are not members of the trade union, staff employees has
also get the membership of trade union from above employee union, its strength is
60% of total working force.

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Company has been keeping a good relation with trade union has a
top position in organization.


➢ Uniform & other facility:
IR provides uniform to its workers of the company. In this each employee gets
a 10 meter cloth with stitching allowances in the very first month of the year. The
company distributes sweater to its workers in the viscose department. The company
pays Rs.200 to each employees of the company to purchase their shoes.

➢ Recreation & Entertainment facility:

The company has its own big auditorium in which it arranges picture for
entertainment of its employees. It charges cheap rates. It also provides many types of
sports facility.

➢ Independence day celebration:

The company celebrates the independence day every year. On this day the
programmed of national flag hosting is followed by sweet distribution.

➢ Republic day:
The company also celebrates the republic day with arranging many sports
activities & other programs.

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➢ Death relief fund:

In case of death of any employee while working in any company provides his
family with Rs.4000 as general expenses and company also deducts Rs. 10 of all the
employees of the company and collects about Rs. 5000 and provides to their family.

➢ Library:
IR has a small but very useful library in company. It also gives the facility of
internet to its employee and Mr. J. V. Dave very well runs it.

➢ Quarter facility:
The IR is having quarter with 2 rooms, kitchen for administration and
executive officer as a normal payment of Rs. 100. staff pays Rs.70. bachelor equipped
with canteen, mess and common room.

➢ Credit co- operative society:

Members are given loan facility up to an amount of Rs.20000 at a nominal
interest. This is managed by co-operative society.

➢ School facility:
Both science & commerce up to 12th std. affiliated with Gujarat board.
Approximate number of students every year is 2000. 40-50% of the students are
employees’ children.

➢ Medical facility:
Company has its own dispensary in factory. Also in this dispensary
workers are treated up on free of charge. Company has its own doctors for this

➢ Milk & dairy facility:

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IR provides milk to the workers working in chemical & spinning

department. The milk is purchased from Junagadh dairy.

Time keeping system :

Time is precious and we cannot get the time once passed so it is not only the
responsibility of an individual’s but only the responsibility of the industries to make
best use of the time. The company has time keeping system.

➢ There are 3 shifts at Aditya Birla Nuvo Ltd. They are as under:
(A) 7: 00 AM - 03: 00 PM
(B) 3: 00 PM - 11: PM
(C) 11:00 PM - 1: 30 PM

General shift 8: 30 AM - 5:30 PM

Lunch break 12:30 PM - 1: 30 PM

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ESI means employee state insurance scheme. It is necessary in all then
company according to 1948 act, an insurance facility provided to the workers. The
deduction of salaries of worker is made every month by the company.

If any accident occurs on the job to the worker this reserved money is given
him from the insurance. If any kind of illness is there this money is used by the
company. The worker can get salary without work up to 2 months according to

But, ESI scheme is not applicable for this unit, instead of it (IRIL) has
insured all of its employees under oriental insurance company and it has own

 Provident fund scheme :

IR manages PF scheme for the employees who are receiving salary about
Rs. 1600 per month and remaining employees are covered carried on by the
government rules framed.

An employee who becomes a member of PF scheme must be permanent

employee. He has to contribute his 12% of salary towards PF every month out of this
family pension fund, administration charge and PF is paid. In 12% PF scheme, there
is 8.33% pension & 3.67% PF are include into the scheme.
Every year the employees are handle the slip showing amount of PF. An
employee also gets loan from PF in case of marriage, sickness, house loan etc.

 Industrial relation :

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Industrial relation between labor and management better and harmonious

industrial relation and option of any friction between the employers and employees
results in industrial peace maintenance of improved industrial relation or peace in the
industry is highly essential for all the countries.

It is useful for administration of company to have a good industrial relation.

In this company, relation between labor and management is very good applicable.
There was major strike in 1982 and 2000 after there is no strike.


The company is conscious of its social responsibilities and is carrying them

very well.

Company performs its responsibility towards society by extensive rural

development activities. The company has set up a separate trust for this purpose
namely “Janseva trust”. This trust has launched rural uplifting activities in the rural
areas near the Veraval city. This trust gives training to the farmers to use the modern
inputs in farming. This trust also provides the assistance to these farmers to purchase
those inputs. The programs of adult education, family planning, women welfare
activities, mass tree plantation and assistance for self employment are also being
taken by this trust regularly.

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Sr. no Particular Page. No

1. Introduction 72
2. Organization Structure 73
3. Product 75
4. Customer Support Service 76
5. VFY & Caustic Marketing 77
6. VFY Marketing Analysis 82
7. Caustic Marketing Analysis 87
8. Centre Marketing Advantage 88
9. Marketing mix 89
10. Product Life Cycle 90
11. Sales Promotion 91
12. Market Segmentation 92
13. Market Profile 93
14. Advertising 94
15. Channel Distribution 95

Marketing is a process by which individuals and groups obtain what then need
and want by creating and exchanging products and value with others.
A market consists of all the potential customers sharing a particular need or
want who might be willing & able to engage in exchange to satisfy the need or want.

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The concept of market brings us full circle to the concept of marketing. Marketing
means working woth the markets to actualize potential exchanges for the purpose of
exchanging human needs and wants.

“A market may considered as a convenient meeting place where buyers and

sellers gaiter to gather of goods and services.”

The Indian Rayon, a unit of Adity Birla Nuvo Ltd. Has a very efficient and
excellent marketing department, which tries to provide maximum satisfaction to the
customers while having reasonable, profits on the other hand.




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The product is anything that can be offered to satisfy the need or want. Product
is most important and tangible component of marketing program.

“Product planning determines the characteristics of the product best

meeting the consumers’ numerous desires, characteristics that a stability, to
products and incorporate this characteristics into the finished products.”

➢ Product planning involves three major important considerations:

✔ Introduction and development of products.

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✔ Modification of the existing Products.

✔ Elimination of unprofitable products.

Aditya Birla Nuvo Ltd. Create Product plan according to the requirement of
the clients, market condition, cost of products and its rivals.

The theoretical consideration of product planning and development includes

following aspects, which can be witnessed in Aditya Birla Nuvo Ltd.

 Product mix:
Product Mix, also called as product assortment is the set of all product and
items that a Co. offers for sale. A Co.’s product mix has certain Width, Length, Depth
and Consistency. Aditya Birla Nuvo Ltd., along with the VFY it also manufactures
some chemicals and by-products, which required for the production of yarns.

Main product from producer to end user :

Product Market End use Customer Discount/Incentives

Nature Basis

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Quality Discount is
Weavers in discount, given for
organized Price lifting higher
Domestic Embroidery,
Viscose & Dress Material, sector and discount,
Saris sold through Loyalty timely
Filament Inter-
dealers& payment and
Yarn national Discount,
agents over & above

Row material
Organized as Based on
soap, cleaning
well as Quality order
edible oil,
Unorganized discount booking at
Caustic Domestic
sector the time of
sector, VFY,
Textile, etc...


P Periodic
OTIF &goodEffective
elre Distribution
practices ,of
v Survey
u Network
sg Tolani Institute of Management Studies
o Indian Rayon

m The Indian Rayon . has three main plants out of which three Plants are:
1.Rayon plant
c2. Caustic Plant
ia3.Power plant
l Produces Viscose filament yarn and chemicals respectively.
The IR has two Marketing Departments and both have different marketing sub
u committees for Rayon products and Caustic products.
op IR has its main sales office at Mumbai, but at Veraval it has only dispatch
roffice from where they send product as per instruction of Mumbai Head office for
e IR believes that satisfied customer is a result of chain of satisfied internal
customer.. Subcommittee assured to implement systems that directly lead to higher
ilevel of satisfaction of customers. Directly linking with vision strive to become a
mworld class customer oriented organization with special focus on creating value for
ecustomers while increasing the revenue inflow on a sustainable basis. Achieve higher
level of customer satisfaction through institutionalization of systems. In this report,
–both the Plants’ Marketing information is included in two different segments. As:

✔ iVFY (Viscose Filament Yarn) Marketing
✔ tCaustic marketing

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The Sub Committee has a well-established market information system to

provide input on the marketing environment to identify and encase the opportunity.
The following statistics are prepared as market information system through market

➢ Global VFY Scenario

➢ Global VFY Demand & Supply
➢ Global Segments
➢ Domestic Segments
➢ Domestic Scenario
➢ Domestic Segment Analysis
➢ Export Scenario

Objectives :

➢ To have a highly delighted customer base.

➢ To develop committed, target oriented internal customer supplier relationships.
➢ To ensure cost effective, profitable marketing operations.
➢ To maximize realizations, through focus on direct sales and reduced logistics.
➢ To develop customer centered, profit oriented long term marketing strategies.
➢ To ensure transportation of goods in strict adherence of safety and
environmental guidelines.
➢ To ensure timely Redressed of customer complaints / grievance.

Marketing strategies
Creating responsive marketing structure :

➢ Proactive Customer visits and Technical support.

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➢ Proactive visits rather than complaint handling visits.

➢ Technical person to solve customer issues.
➢ Better Intelligence – Improving reliability of forecasts.
➢ Application and Business Development Team.
– New Application / Sampling Development
– Sourcing Partners
– Co-ordination with our customers
➢ Better Planning / System Support to Marketing Team.
➢ Marketing team more time in market

Understanding customer requirement :

Customers voices are captured through customer meets, Systematic regular

surveys, Customer feedback and through\market visit. Customer meets are conducted
at various centers, one to one discussions are held to understand the customers
requirements and expectations. Yearly Customer Satisfaction surveys are conducted to
identify the customer need and gap analysis done to customer create delight. Special
requirement of customers are implemented. Customer visits to plant are organized.

Customer satisfaction :

Yearly customer satisfaction surveys are conducted to understand the

expectationsof customers and also to assess our strengths and weaknesses vis-à-vis
other Viscose Filament Yarn manufacturers .Surveys are carried out to cover all
segments and regions. Feedback of the customers was taken for all the three functional
categories viz. Pre sales, Sales and Post Sales. The feedbacks and outputs of the survey
caressed for future improvement.

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The learning of the Customer Satisfaction surveys are shared with employees in
the form of “Customer Satisfaction Survey Report”.

Customer complaints :

The committee views seriously on the Customer Complaints. Prompt and

appropriate redresses extended through its well-defined Complaint handling system.
The customer complaints are registered at the depots through complaint form.
Immediate redresses actions are taken through the trained technician’s visit to the
customer. Actions taken and the status of the complaint are given to marketing office
at Mumbai. Pending complaints are informed to Quality Control Dept. from where
remedial actions are taken Complaint nature, remedial action taken and status are
monitored and learning incorporated to eliminate origination of similar complaints in

Steps to revive demand :

➢ Revival of Application Development Efforts on an Emergency basis by IR as
well as in co – ordination with AMFI.
➢ Price and Quality stability to Embroidery segment.
✔ Short term- focus Mid End segment at Salem and Ulhasnagar
(till quality improves) Long term-Premium customers as
quality improve.
➢ Premium Customers Acquisition in Georgette Segment (100 brat)

➢ To maintain lead in Bras so (120 Brat)

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➢ Improving volumes in super fine Diner 40-50-60 segment

➢ Revive Knitting segment at Tripura (150/300)

 Delivery management & after sell services :

There is a systematic coordination between the marketing and production

dep’t. Customers need and requirements are communicated to the plant, where
machine wise production planning is done and implemented. This way machines are
run indirectly by the customers.

➢ Stock transferred to depots set in four zones

➢ The delivery to customers are controlled by the marketing
➢ The depots are interlinked and linked with Marketing officials at Mumbai.
➢ Customers complaints are addressed to give quick redresses.




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market share
7%240165 NRCBKeshor29%4ma

8%37 32%

major competitor of Indian Rayon is the Century Rayon. Kesoram Rayon and
5% 16%
National Rayon are other VFY market players. RAY ONE has 29 % share in Domestic
7% 42%
Market, it has been striving to increase its export and captured 42 % of total VFY export
from India with a growth status of 26.7 % in 2000 – 01 to 42 % in 2008 – 09.
Indian Rayon
37% BRC
8% 32%

Aditya Birla Group’s worldwide position in caustic market:

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➢ Global Capacity 62 Million

Ton /Annum
➢ Indian Capacity 2.3 Million
Ton /Annum

 IR marketing committee- objectives :

➢ Development of Marketing Strategies.
➢ Internal & External Customer Satisfaction
➢ Develop the organization to make it a customer oriented enterprise by focusing on
internal customer supplier relationship.
➢ Strict adherence of safety and environment guidelines while dispatching goods to the
➢ Customer services and Relationship Management
➢ Timely redressed of customer complaints.

 Processes to Meet Marketing Objectives :

➢ Market Environment Analysis
➢ Customer Requirement need-gap analysis.
➢ Strategic Planning & Budgeting

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➢ Production-Delivery alignment.
➢ System Improvements
➢ Customer Support Services
➢ Customer Satisfaction Assessment
➢ Internal Customer-Supplier Relationship Assessment

 Goal, targets & action plan :

Believing the external customer satisfaction is outcome of internal customer
satisfaction The subcommittee derives Goals and Targets in the form of result and
control indicators respectively based on Unit's Business goal.
During Planning & Budgeting exercise, goals and targets for the coming
financial year and projections of the next 2 years are evaluated comparing with our
own group units and for all the three units BCCL / IRIL / Grasim Chemical with
market scenario in India and world. Targets are reviewed during P & B exercise.

➢ Also targets has been set for following areas.

✔ Targets for increasing market share in Saurashtra Zone.
✔ Targets set for enhancing direct sales.
✔ Product wise realizations and ECU realizations.
✔ Reducing working Capital Blocks –Credit days and Chlorine Toner rotation
✔ Targets set for internal customer satisfaction by QCDIP (Quality, Cost,
Delivery & speed, innovations, Productivity).

 Action plans are as given below :

Detailed time bound action plan is prepared in order to meet targets and systems
developed for same.
➢ Market Environment Analysis.
➢ Customer Requirement need.
➢ Strategic Planning & Budgeting.
➢ Production-Delivery alignment.

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➢ Systems Improvements.
➢ Customer Support Services.
➢ Customer Satisfaction Assessment.
➢ Review Mechanism.
➢ Internal Customer-Supplier Relationship Assessment.
➢ Monthly review of QCDIP in L2 and L1 team meetings.
➢ Systems are institutionalized for measuring, monitoring.
➢ Market Intelligence System & Monthly MIS.
➢ Progress-reports on Action-plans.
➢ Comparative Performance analysis with group chemical units.
➢ Monthly Performance review meetings.
➢ Hired, outside research agency to conduct independent customer satisfaction
➢ targets.

 Present Marketing setup in Caustic marketing :

Aditya Birla Group has a central marketing setup between all the AB group’s
Companies which are manufacturing Chemical products. Each unit is look over
specific area for the marketing, which are specified by the central committee.

There are six units of AB group in India which produce Caustic products, these
are Veraval, Baroda, Nagda, Garhwali, Delhi & Hyderabad. These all the units have
allotted regions in which it is situated and nearby area for the Sales & Marketing

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& of
& Southern
UP, &

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 Cost cutting :
➢Improved Logistics
➢Reduction of Man Power
➢Effective utilizationof resources (ERP)
➢Reduction of selling, ADM. & other expenses.

 Explore new market segments & penetrate existing market for

higher realization:
➢ Stronger Distribution Network.
➢ Withdrawal from lesser realization zones.
➢ Thrust on Direct Sales.

 Higher capacity utilization.

➢ Optimum use of resources
➢ Assured supplies – Higher retention of customers - Improved sales
➢ Avoid internal competition.
➢ Concerted and coordinated efforts in chosen segments / territories

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Marketing mix is the set of marketing tools that firm uses to pursue its
marketing objectives in the target market.

It consists of everything the firm can o to influence the demand for its
products. The many possibilities can be collected into 4 groups of variables known as
the four Ps i.e.

Product price place promotion

Product Variety

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Brand Name


Sales promotion
Sales force
Public elation
Direct marketing

List Price
Payment period
Credit terms


A company’s positioning and differentiation strategy must change as the

product, Market and competitors change over time.

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INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) is passing from

maturity sate. Hence, this company can make changes in its products and technology
by adopting new machines like horizontal spinning machine and pot spinning yarn

Because of the technology adaptation, absorption and innovation the benefits

derive by the INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) are:

➢ Quality improvement in existing range.

➢ Development of new market segment.
➢ Improvement in process, cost control and productivity.
➢ Improvement energy efficiency.
➢ Reduction in import material consumption.


Companies use sales – promotion tools to create a stronger and quicker

response. There is a separate organization, which jointly made efforts for sales
promotion and this organization is followed by INDIAN RAYON (A Unit of Aditya
Birla Nuvo Ltd.) This organization is known as “The silk and Rayon Textile
Export Promotion Council.”

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The head office of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.)
does all the activities of the sales promotion. It promotes its sales via dealers i.e. the
product is sale thought middle man.

 Following tools have been use in this method:

➢ Buying allowance discount

➢ Display allowance
➢ Dealers contest
➢ Concession on the net sales 25
➢ Free gift

“Market Segmentation consists of taking this total market for the product
and dividing it into several sub-marketer segments each of which tens to be
homogenous in all the significant aspect.”
The company identifies different ways to segment the market and develops the
profiles of the resulting market segments.
There are two approaches regarding market segmentation:
➢ People oriented approach
➢ Product oriented approach

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INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) uses ‘people oriented
approach’ method for market segmentation. They classify their consumer on the basis
of place, income, geographical location, etc.

The branches of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) are
located at Ahmadabad, Delhi, Mumbai, Amritsar, Surat, Bangalore, and Madras. Its
head office is situating at Mumbai which takes all the decisions regarding the
company’s products.

There are different manufacturing companies that consumes and demand for
the specific type of yarn of very fine quality. The demand for yarn differs from
company to company on the basis of their handloom production. So, this company has
segmented. The total market on the basis of product application consumer industry
The INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) marketing office
is at Mumbai. The company has various type of segments. They are selling its product
in India as well as exporting in many countries.

Market profile of organization in India:

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➢ Branch abroad:

Korea, Italy, Africa, Saudi Arabia, Bangladesh.


“Any paid form of non-personal communication of ideas, goods or services

by business firm identified in the advertising message intend to lea to sale
immediately or eventually.”
--American Marketing
 Advertising is basically used for:
✔ Creating or enhancing goodwill
✔ Preparing ground for new product
✔ Creation of demand
✔ Facing the competition

INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) is very sound

company producing industrial product. Major factories producing rayon yarn in India
are under one management i.e. The Birla group. The Aditya Birla Group has covered
near about 75% of the yarn market. Thus there is no question of advertising.

Rayon Yarn is use as a raw material in textiles industries that are not affected
by any media of advertisement and that is the reason why the company is not
advertising its product.

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The company publishes magazines, which depicts various facts and figures of
companies manufacturing process, EXIM policy, pricing policy, strategies, etc.
I short; the companies adopt the direct advertising method.


“The middleman is not a hire link in a chain forgets by a manufacturer, but

rather and independent market, the focus of a group of customers for whom he
INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) has adopted its own
sales branches and sales offices in context of its channel distribution. The company
has selected the distribution channel keeping in view the demand of the customer and
the current market trend.
In INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) the main product is
rayon yarn so, this unit utilize zero level (Direct selling) and one level of channel of
distribution. They are conduction the sales activity with the help of their own sales
depots and agent’s dealers, sub dealers etc. indifferent cities and different states.
INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) sales marketing office
is at Mumbai which performs the functions of selling the product of the company. The
marketing office collects all the orders from the twelve different sales branches. All
the sales branches of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd)
maintains the facilities like storage, after sales service etc.
INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) also produced
chemical along with the yarn like sodium sulphate, sulphuric acid and carbon-di-
sulphide are distributed though dealers and selling agent.

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Sr. no Particular Page. No

1. Introduction 98

2. Organization Structure 101

3. Revenue & PBIT Chart 102
4. Production & Sales Chart 103
5. Capital Structure 104
6. Capitalization 107
7. Leverage 109
8. Capital Budget 110
9. Working Capital Management 116
10. Inventory Management 117
11. Receivable Management 118
12. Credit Standers 119
13. Cash Management 120
14. Dividend Distribution 121
15. Profitability Ratio 122


Financial management is the managerial activity which is concerned with the

planning and controlling of the firms of the financial resources.

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Finance management is concern with the efficient use of an important

economic resource, namely capital fund.
- Solo man

Money is the lifeblood of modern business. Money is required to purchase

expensive on raw materials, labor and operational and administrative need of
business. A human body with bones, flesh, skin, and different organs but without
blood is of no use; similarly an organization or an industry win without finance is also

In simple words, financial management is concerned with the financial

problems of the organization.

In Indian ray one Industry is a separate financial department where in all

financial decision is taken by the experts, Indian ray one believes in maximum profit
at least cost but the finances in such a way that the goal of business say, profit
maximization is realized.

 Financial management can be defined as:

The management of the finance of a business/organization in order to
achieve financial objective.
Taking a commercial business as the most common organizational structure,
the key objectives of financial management would be to:
➢ To produce wealth for the business.
➢ To generate cash.

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➢ To supply adequate return on investment.

➢ To protect business from risk and uncertainty.

There are three key elements to the process of financial management:

1. Financial planning:
Management to need to ensure that enough funding is available at the right
time to meet the need of the business. In the sort term, funding may be needed to
invest in equipment and stock, pay employees a fund sales made on credit.In the
medium and long term, funding may be required for significant additions to the
productive capacity of the business or to make acquisitions.

2. Financial control:
Financial control is a critically important activity to the help the business
ensures that the business is meeting its objectives.

.3. Financial decision- making :

A key financing decision is weather profits earned by the business should be
retained rather than distributed to shareholders via dividends. If dividends are too
high, the business may be starved of funding to reinvest in growing revenues and
profit further.

 There are three major decisions :

(1) Investment decision.

Investment decision related to the selection of assets in which funds will be

invested by the firm. The assets that can be acquired fall in two category (I) Long
term assets, which yield return over period of time in future (II) Short term assets,
which are convertible into cash within a year. This includes,

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(1) Capital budgeting

(2) Working capital Management.

(2) Finance decision.

Finance decision is generally concerned with financing mix or capital structure

or leverage. It is generally a decision made on the composition of capital with
reference to equity share and debt.

(3) Dividend decision.

Dividend decision is generally related to distribution of dividend. Two

alternatives are available in dealing with the profits of a firm. They can be distributed
to the share holders as dividend as they can be retained in business itself. The decision
as to which course should be followed depends largely on a significant element in
dividend decision i.e. decide the dividend payout ratio (D/P ratio).


Board of director

Executive president President & CFO

(Rayon Division) Corporate finance

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Sr. Vice President

(Finance & comm.)

G.M. Finance

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O Sr. Manager
f Manager
f Creditor


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PBIT:Source: Annual Report of 2008-09

Source: As per the Information Given by Production Manager

Source: Information Given by HRD


Capital structure may be defined as the combination of debt and equity that
lead to the maximum value of the firm.

“Capital structure refers to the mix of long-term sources of funds such as

debenture, long-term debit, preference share capital and equity share capital
including reserve & surplus. The company should planed and get optimum
capital structure.”


2008-09 2007-08
Share Capital 95.00 95.00
Reserves & Surplus 5396.50 3510.50

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Secured Loans 5033.10 4463.50

Unsecured Loans 3860.90 2184.40
Preference share capital 25.50 50.00

Source: Annual Report 2008-09

Share Capital of the INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd). Has
same as compare to previous year. Company has also increase reserves & surplus,
secured loans, unsecured loans respectively, 53.72%, 12.76%, and 76.74% as compare
to the previous year. Company has paid to the preference share capital decrese51% in
this year.


From accounting point of view “capitalization means accumulated funds

which have been invested for same business purpose to earn quite of return”

For the Co the Book value and Real value of Share are two main components
or assessment of Co.’ financial position which can be calculated as per under.


2008-09 14.5
2007-08 26.1
2006-07 25.6
2005-06 24.5
2004-05 18.3
2003-04 21.1
2002-03 17.0
2001-02 7.0
2000-01 11.0

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Source: Annual Report 2008-09

 Book value per share is Rs. 578.05

Book value:- Equity share Capital + reserves & surplus

No. of Equity Shares (%)

= 95.00 + 5396.50
= 578.05 Rs.

There are three conditions of the company in term of the capitalization are as

 Fair capitalization :
➢ It is received when earning of the unit is same to the capital employed.
Earning = Capital Employed.
➢ And book value of a safe is also equal to the real assets.
Book Value = Real value

 Under capitalization :
➢ It is found when earning is more than capital employed.
➢ In this case book values of assets of the firm are less then the real value.

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 Over capitalization:

➢ It is found when earning is less then the capital employed.


➢ In this case book value of the assets of the firm are more then the real value.

The closing market price of the Co. per share is Rs 425.55 as on march-09
which is greater than its book value per share.

From this we can say that co. is facing under capitalization. The above graph
depicts that the Co’s earning per share has increased by 12.83% as compared to its
previous year.

➢ The reason for the increase in the value of Co. Is

Increase in sales and profit.

Increase in price of yarn.

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The employment of and asset or source of funds for which the firm has to pay
a fixed cost or fixed return is termed as Leverage.
There are two types of leverages:

• Operating Leverage
• Financial Leverage.

➢ Financial leverage:

The leverage associated with financial activities is called Financial Leverage.

It represents the relationship between the firms’ earnings before interest and taxes and
the earning available for ordinary shareholders.

It is defined as “the ability of firm to use fixed financial charges to magnify

the effects of change in EBIT on EPS.”
Aditya Birla Nuvo Ltd. has posted a superior financial performance during the
year 2008-09. The revenue has grown to 4786.18 Corers against 3953.06 Cores in
the previous year.

Financial Leverage = EBIT

= 408.26
= 2.52 %

➢ Operating leverage:

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The leverage associated with the investment (asset acquisition) activities is

referred to as Operating Leverage. It is determined by the relationship between the
firm’s sales revenue and its earnings before interest and tax (EBIT).

Operating leverage results from the existence of fixed operating expenses in

the firm’s income stream. With fixed cost the percentage change in profit
accompanying a change in volume is greater than percentage change in fixed asset.


The system of Capital Budgeting is employee to evaluate expenditure

decision, which involve current outlays but are likely to product benefits over a period
of time longer than one year.

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These benefits may be either in the form of increased revenue or decreased cost.

 There is various method of Capital Budgeting:

➢ Internal rate of return

➢ Average rate of return
➢ Profitability index
➢ Payback period
➢ Net present value

Aditya Birla Nuvo Ltd. undertakes Capital Budgeting every year with the help
of financial experts of financial dept on basis of payback period method.

The Co. always aims at increasing and expanding the installed capacity of
Rayon Yarn production. It constantly tries for its success. At present the installed
capacity of plant is 16000 tons/ annum.
At present the main objective of Company is replacement and modernization
of machine and fixed assets and business expansion by adding new machineries and
technology. The unit base takes this decision on payback period.


Working Capital is concerned with management of current asset. It is and

important and integral part of financial management as short-term survival is
prerequisite for long-term success.

The divisional management of INDIAN RAY ONE (A Unit of Aditya Birla

Nuvo Ltd.) manages the working capital within the broad framework laid by and with

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consultation of Corporation Finance Division (CFD). Decision regarding the

utilization of the current assets is made in accordance with the policy of company.

The operating cycle can be said to be at eh heart of the need for working

 Need of working capital:

The ray one industries are manufacturing concern it needs a large amount of
fund for smoothing day-to-day operation. This working capital can be classified in
terms of cash, inventory, loans & advances and debtors or it can be said a current
assets of the organization. This is very significant part of the total asset. The current
assets of the year 2006-2007 are given below.

Current assets:

Financial year 2008-09 (Rs. crore)

Current Assets Amount % of

Inventories 834.80 14.8
Debtors 1343.60 23.82
Cash and Bank balance 1534.40 27.21
Interest accrued on 19.60 o.35
Loan and advances 1907.70 33.82

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Gross Working Capital 5640.10 100.00

 Focusing on liquidity management:

Suggests the extent to which working capital needs may be financed by

permanent sources of funds. Current assets should be sufficiently in excess of
current liability to constitute a margin or buffer for maturing obligation within the
ordinary operating cycle of a business.

In order to protect their interest, short-term creditors always like a

company to maintain current assets at a higher level than current liabilities.
However, the quality of current assets should be considered in determining the level
of current assets vis-à-vis current liabilities.

A weak liquidity position poses of threat to solvency of the company

and makes it unsafe and unsound. A negative working capital means a negative
liquidity, and may prove to be harmful for the company. Excessive liquidity is also
bad. It may be due to mismanagement of current assets. Therefore, prompt and
timely action should be taken by management to improve and current the imbalance
in the liquidity position of the firm.

Net working capital concept also covers the question of judicious mix
of long-term and short-term funds for financing current assets. For every firm, there
is a minimum amount of net working capital, which is permanent. Therefore, a
portion of the working capital.

 Determinant of working capital:

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The credit policy of the firm affects working capital by influencing the level of
book debts. The credit terms to be granted to customers may depend upon norms of
the industry to which the firm belongs. But a firm has the flexibility of shaping its
credit policy within the constraint of industry norms and practices. The firm should be
discretionary in granting credit terms to its customers. Depending upon the individual
case, different terms may be given to different customers, will be detrimental to the
firm and will create a problem of collecting funds later on. The firm should be prompt
in making collections. A high collection period will mean tie – up of funds in book
debts. Slack collection procedures can increase the chance of bad debts.

In order to ensure the unnecessary funds are tied up in book debts, the firm
should follow a rationalized credit policy based on the credit standing of customers
and other relevant factors. The firm should evaluate the credit standing of new
customers and periodically reviews credit – worthiness’ of the existing customers. The
case of delayed payment should be thoroughly investigated.

 Why Ray one Division Grants Credit?

➢ Competition: -
Ray one division has to face the competition from companies like Mumbai
based Century Ray one, National Ray one, Kesoram Ray one. So it grants a nominal
credit period of 3 days.

➢ Company’s brand image: -

The ray one division is a part of Aditya Birla Group. So it carries a huge
brand image and its position in the market is that of market follower. So it has higher
bargaining power vice versa. So it allow a very short period of credit.

➢ Marketing tool: -
To beat the competitors and to attract the potential customers, Ray one
division offers nominal credit period as marketing tool

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➢ Transit delay: -
Indian Ray one division has the market throughout the country so it takes
time for the goods to reach from one place to another. So transit delay is one of factor
for which the company has to allow the credit period as the days of grace. Days of
grace vary from place to place depending upon the distance.

➢ Industrial practice: -
Ray one division is the industrial commodity seller the output of which is the
input of other industry. So it sell the product it has to allow the credit period to these

➢ Buyer requirement:
In some cases the buyers having the good payment track record are no
interested to operate without credit period.

Issue in working capital management:

Working capital refers to the administration of all components of
working capital – cash, marketable securities, debtors (receivable (Ugarit)) and stock
(inventories) and creditors (payables). The financial must determine levels and
composition of current assets. They must see that right sources are tapped to finance
current assets and that current liabilities are paid in time.

There are many aspects of working capital management, which make it an

important function of the financial manager.

➢ Time: -Working capital management requires much of the financial manager


Tolani Institute of Management Studies

Indian Rayon

➢ Investment: -Working capital represents a large portion of the total

investment in assets

➢ Criticality: - Working capital management has great significance for all

firms but it is very critical for small firms.

➢ Growth: - The need for working capital is directly related to the firm’s

Empirical observation show that the financial managers have to spend much of
their time to the daily internal operations, relating to current assets and current
liabilities of the firms. As the largest portion of the financial manager’s valuable time
devoted to working capital problems, it is necessary to manage working capital in the
best possible way to get the maximum benefit.

 Concept of working capital :

(1) Gross working capital :

It refers to the firm’s investment in current assets. Current assets are the assets
which can be converted into cash within an accounting year or operating cycle.

(2) Net working capital :

Tolani Institute of Management Studies

Indian Rayon

It refers to the difference between current assets and current liabilities.

Positive new working capitals arise when current assets exceed current liabilities. It is
negative in case of current liabilities are in excess of current assets.

 Working capital management consists of three main aspects :

(1) Inventory Management.

(2) Receivable Management.
(1) Cash Management.

“Inventory refers to the stockpile of the products a firm is offering for sale
and the components that make up the product.”

The IR the manufacturing organization, so being manufacturing

organization it needs a large among of the inventories for the smoothing of business
operation. The Co. invests nearly 48 to 50 percent of total current assets in the
inventories. In the IR Co.the inventory is maintain by finding the actual requirement
and the analyzing material, which is scared or not easily meet at the proper time.
Then after the Co. decides the optimum level for each inventory based on the
requirement. But because Co. has a good image to the supplier, it maintains the three
days stock inventories for most of the goods even though the industry standard is
seven days.
In IR Co.there is a special storage dept. and separate inventory management
force which perform certain functions for efficient management of inventories in the
company. It maintains sufficient stock of raw materials in period of short supply and
anticipates price change. It helps sales dept. by maintaining sufficient finished goods
inventories for smooth sales operation.

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Indian Rayon

Inventory Turnover Ratio = Net Sales

= 14200.44
= 17.01 times

Cost of inventory is compared on a weighted average or FIFO basis.


The management of receivable is basically concerned with the old customers

and wining the new ones by collecting a regulating the cost management of
receivables also known as trade receivables or customers or debtors receivables.

It means when firm make ordinary sales on credit and payment has not been
received yet. Such management of receivables Aditya Birla Nuvo Ltd. grants the
credit term to its customers for 15 days. However, in exceptional cases it is increased
to certain extent. The purchaser sends bank drafts on expiry of credit period.

 The receivables arise out of three features:

➢ It involves an element of risk, which should be carefully analyzes.

➢ It is based on economic value.
➢ It implies future management of receivable.

Management of receivables concerned with retaining the old customers and

wining new by controlling and regulating the costs. Aditya Birla Nuvo Ltd. grants the
credit form to its customers for 15 days.

Tolani Institute of Management Studies

Indian Rayon

As per the industrial standard for rayon, the organization runs well on the track
of Average collection period. But because of the core competition in the chemical
market the avg. collection period increased and reach near to the 25 to 30 days, so it
can conclude that organization investment in receivables is not very high.
The customers are paying its obligation to the organization in time. The
default rate is nearly zero in the organization.
VFY = 15 days
Chemical = 45 days
The collection of the fund is done by HDFC Bank, which plays and agent role.
The avg. collection period for the account receivables between 21 to 27 days.

Total debt of company as on 31st March, 2005 is 260.90 corers which have
increased as compare to that of the last year’s debt. i.e. 31stMarch, 2004 was 186.14
crores. So, it can be said that debtors are up by Rs. 74.72 cores. Major addition was
on account of insulator domestic marketing.
As a result of the above mention, there is an increase in the Net Sales of the
company by 9% as compare to that of last year’s sales.

Receivables Turnover Ratio = Net Sales

S. Debtors

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Indian Rayon

= 14200.44
= 10.57

 Generally any organization holds the cash for ;
➢ Transaction motive.
➢ Precaution motive.
➢ Speculative motive.
➢ Compensating motive.

INDIAN RAY ONE holdsthe cash only for the transaction motive. It holds the
cash for smoothing the day-to-day operation only. If there is surplus of cash in the
Co., it is transferred to the CFD while if there is deficit of the cash in the organization,
it borrows it from the CFD and also decision regarding the investment of cash in to
Marketable Security is done through the CFD only.

 Cash collection;

INDIAN RAY ONE operating in variousgeographical area of the country. It tries to

speed up the cash collection by decentralization with the help of ten ash collection
centers all over the India.

 Cash Disbursements;

The disbursement is one through centralized system by the organization. The

payment of the bill will be made from the central account (at division place) and form
the head office. So the Co. can enjoy the transit time delay using the factoring.

 Optimum Cash Balance;

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Indian Rayon

INDIAN RAY ONE keeps a maximum level of cash balance worth and average
payment for three days. If cash is more than its maximum level than the cash if
transferred to the CFD and if cash is less than the level than the requirement of the
cash is borrowed from the CFD.


Dividend refers to that portion of a firm’s Net Earnings which are paid out to
the Shareholders. A major decision of financial management is the dividend decision
in the sense that the firm has to choose between distributing the profits to the
shareholders and plugging them back into the business.

In IR Co. the board proposed the dividend of Rs. 4.00 per share for the year
2005-06. It is same as compared to previous year. Dividend payout ratio on of 2005-
06 is increase 3.44% as compared to previous year.

Source: FINANCIAL YEAR 2008-09


The profitability ratios are calculated to measure the operation efficiency of

the company. Besides Management of the company, creditors and owners are
interested in the profitability of the firm creditors want to get interest and payment of
principal regularly. Owners want to get a required rate of return on their investment.
This is possible when company earn enough profit.

Tolani Institute of Management Studies

Indian Rayon

 Generally two major types of profitability ratios are:

(1) Profitability in relation to sales.
(2) Profitability in relation to investment.

(1) ROI (Return on Investment)

ROI= * 100
Capital Employed
Financial year 2008-09 (Rs. corer)
2008-09 408.26 8521.46 4.79
2007-08 510.15 6686.16 7.63

(2) ROE (Return on Equity)

ROE = * 100
Equity Funds
Financial year 2008-09 (Rs. crore)

2008-09 408.26 4121.70 9.91

2007-08 510.15 4023.70 12.68

➢ Net Profit Ratio :

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Indian Rayon

NPR = * 100
Financial year 2008-09 (Rs. crore)
2008-09 162.30 14200.44 1.14
2007-08 314.56 11249.60 2.80



Financial year 2008-09 (Rs. crore)

2008-09 5640.10 3050.30 1.85
2007-08 3050.30 2442.90 1.25

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Indian Rayon



➢ Rayon division has begged “ Gold Trophy” for highest export from synthetic
and Rayon Textile Export Promotion Council.

➢ The “ Certificate of merit – 2003 “ of national energy Conservation of VFY.

➢ “First Prize” of National Energy Conservation Award -2003 for chlor – Alkali
sector both from ministry of power , New Delhi.

➢ The prestigious “ Genentech Environment Excellence Silver Award 2002-03”.

➢ In chlor-Alkali sector for outstanding achievement in the field of environment

from Genentech foundation, New Delhi.

➢ The Gujarat safety Council has conferred upon the “Certificate of Honor
2002” upon the division base on its safety record and performance.

➢ The caustic division has achieved the Genentech award in 2004.

➢ The prime minister, Dr. Man Mohan Singh conferred the national energy
conservation award on Indian Rayon.

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Indian Rayon

➢ Mr. S. P. Singh had the privilege of receiving the award on behalf of Rayon
Division, Veraval.


➢ Development of spatiality yarn.
➢ Eco and energy auditing.
➢ Improvement in intrinsic quality of yarn.
➢ Developing new shades of spun ye yarn.
➢ Development in the quality of existing range.

Tolani Institute of Management Studies

Indian Rayon


The process of improvement is an unending journey. World class performance

is a moving target that requires constant attention and efforts.

Tolani Institute of Management Studies

Indian Rayon

The management of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd ) is

well organized and has established INDIAN RAYON (A Unit of Aditya Birla Nuvo
Ltd ) as a quality based, High speed, High performance, cost effective organization.

The co. is having an excellent management –worker relationship with

transparent and adaptive management approach.

This experience from my organization study it can be said that the co. is
constantly hardworking for the improvement of its product quality through the
adoption of world class manufacturing policy.

Thus it is a truly highly bench marked company. It does not require any
recommendation. Only one thing the co. should pay more attention towards its human
assets and technology.


After going through the five days training program, functioning of the
organization which I observed fro that it can be concluded that Indian Rayon &
Industries Ltd. is the large scale manufacturing organization and successful player in
the VFY and chemical products. The company has the strong financial structure and
has a food reputation in the market.

Tolani Institute of Management Studies

Indian Rayon

However y conclusion regarding various department of the company is as


 Personnel department:

At concerned with personnel department, if there are certain problems as they

are solve by mutual understanding between the personnel and the management.
Manpower planning and human assets are well organized. We can say that a present
situation of this unit is very good because of its efficient management and staff.

 Marketing department:

Here, we can conclude that main marketing officer of this unit is at Bombay it
is very effective at veraval also because they are trying their best to promote sales by
the way of marketing research.

 Financial department:

This company has enough sources and proper allocation of fund and defect
financial position of the company is good enough.

The company is also doing its business with the global market. In India, the
share of Indian Rayon and the total export of the VFY are highest.

The total turnover, export, profit and the Co.’s history and development all
reveals that it is highly reputed and progressive company. It is on path of success

Tolani Institute of Management Studies

Indian Rayon

Production & Sales quantity:
Unit 2008- 2007- 2006- 2005- 2004- 2003- 2002- 2001 2000 1999-
s 09 08 07 06 05 04 03 -02 -01 00
Production (Quantity)
Viscose MT 16,625 17,00 17,669 17,23 16,42 16,06 15,87 12,2 15,4 12,62
filament 0 3 0 0 3 53 96 1
Caustic MT 78,574 74,46 67,663 57,05 45,45 39,30 34,87 23,9 30,6 27,41
soda 8 1 7 5 5 76 20 9
Spun MT 9,185 11,26 17,720 19,19 15,44 14,42 13,78 12,7 13,4 14,11
yarns 1 0 5 1 1 17 90 3
Fabric 000 3,646 4,792 5,088 4,646 3,751 2,734 3,627 3,90 5,30 5,902
MT 6 7
Urea MT 1,069,6 880,9 1,028,0 575,6 - - - - - -
(merged 91 91 64 46

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Indian Rayon

w.e.f. 1
Carbon MT 202,07 215,1 182,66 175,0 164,0 118,7 112,5 93,6 89,7 95,82
black 6 03 8 80 25 07 63 34 39 8
Insulato MT 32,904 32,92 - - - - 7,673 25,2 25,6 24,35
rs @ 1 77 65 3
Unit 2008- 2007- 2006- 2005- 2004- 2003- 2002- 2001 2000 1999-
s 09 08 07 06 05 04 03 -02 -01 00
Sales (Quantity)
Garmen '000 11,754 10,96 10,709 11,10 8,332 7,552 6,173 7,06 5,88 1,130
ts Nos. 6 4 8 4
d w.e.f.
Viscose MT 16,792 17,92 17,039 17,38 16,44 15,69 15,42 12,8 15,3 13,50
filament 3 0 5 4 2 12 26 7
Caustic MT 77,590 74,44 67,226 56,95 45,92 39,34 34,20 24,11 31,1 27,51
soda 1 4 0 4 7 1 04 6
Spun MT 9,271 11,34 18,357 18,86 15,68 14,59 13,88 13,1 13,2 14,64
yarns 9 6 6 4 2 88 58 1
Fabric 000 4,049 4,710 4,645 4,418 3,593 2,798 3,614 3,78 5,64 6,351
Mtr 8 6
Urea MT 1,072,8 870,3 1,043,5 563,9 - - - - - -
91 05 65 14
Carbon MT 203,82 214,6 180,89 175,9 165,0 118,1 114,2 94,5 91,7 94,65
black 7 17 3 44 95 82 32 04 35 6
Insulato MT 32,561 32,30 7,776 16,24 9,219 6,813 7,596 25,1 25,6 23,70
rs 4 5 84 91 1

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Indian Rayon

ic sales
@ Insulator manufacturing unit earlier demerged w.e.f 1 August 2002, merged with
Aditya Birla Nuvo Limited w.e.f. 1 April 2007

Balance sheet:

2008- 2007- 2006- 2005- 2004- 2003- 2002- 2001- 2000- 1999-
09 08 07 06 05 04 03 02 01 00
(Rs. crore)
Net fixed 1,605. 1,501. 1,308. 1,135. 810.28 737.5 684.1 775.3 814.0 885.9

Tolani Institute of Management Studies

Indian Rayon

assets 0 6 1 5
Long-term 4,982. 3,909. 3,477. 1,415. 618.3 581.6 415.9 438.8 312.6 229.8
investments 4 8 6 3
Current 730.0 97.5 371.8 260.5 81.3 160.0 98.4 1.0 31.2 114.3
Total 5,712. 4,007. 3,849. 1,675. 699.7 741.6 514.3 439.8 343.8 344.2
investment 4 3 4 8
Net current 1,483. 1,458. 972.9 1,127. 462.7 318.9 359.8 425.2 438.1 441.4
assets 7 5 6
Capital 8,801. 6,967. 6,130. 3,938. 1,972.6 1,798. 1,558. 1,640. 1,595. 1,671.
employed 1 5 5 9 1 0 2 3 9 4
Net worth represented by:
Equity 95.0 95.0 93.3 83.5 59.9 59.9 59.9 59.9 59.9 59.9
capital #
Share 377.4 377.4 - - - - - - - -
warrants $
Reserves 3,649. 3,551. 3,031. 2,124. 1,294.2 1,204. 1,104. 1,020. 1,068. 1,015.
and surplus 2 3 2 1 8 0 1 1 4
(net of
not written
Net worth 4,121. 4,023. 3,124. 2,207. 1,354.1 1,264. 1,163. 1,080. 1,128. 1,075.
7 7 5 6 7 9 0 0 3
Long term 2,651. 1,841. 1,869. 972.5 285.3 211.5 197.8 282.7 317.3 320.4
loans 2 2 2
Short term 1,848. 902.2 962.7 591.1 207.7 194.3 70.1 176.4 150.6 275.7
loans 0

Tolani Institute of Management Studies

Indian Rayon

Total loan 4,499. 2,743. 2,831. 1,563. 493.0 405.8 267.9 459.1 467.9 596.2
funds 2 4 8 6
Deferred 180.2 200.3 174.1 167.7 125.5 127.5 126.4 101.2 - -
tax liability
Capital 8,801. 6,967. 6,130. 3,938. 1,972.6 1,798. 1,558. 1,640. 1,595. 1,671.
employed 1 5 5 9 0 2 3 9 4

Cash flow:

2007- 2005- 2004-

(Rs. crore) 2008-09 2006-07
08 06 05
A Cash flow from operating activities
Net profit before tax 162.3 314.6 311.1 271.8 157.1
Add: adjustments for
Depreciation 166.1 141.2 120.4 111.9 77.8
Marketing and technical know-how
- - - - 3.0
Interest expenses (net) 257.4 179.0 171.2 55.8 18.7
(Profit) / loss on fixed assets sold (0.6) (7.2) (2.7) 0.3 (0.4)
(Profit) / loss on sale of investments (6.9) (1.2) (6.8) (2.5) (0.6)
Dividend income (16.8) (4.2) (23.7) (16.5) (6.4)
(Gain) / loss on long term strategic
investments / transfer 0.0 (0.7) (0.2) - (1.9)
of business (net)
Employees stock options
1.3 0.7 - - -
400.5 307.6 258.2 148.9 90.3
Operating profit before working
562.8 622.2 569.3 420.7 247.3
capital changes
Add: adjustments for
Decrease / (increase) in trade and
(149.8) (141.4) (7.6) 231.5 (89.2)
other receivables

Tolani Institute of Management Studies

Indian Rayon

Decrease / (increase) in inventories 29.0 (258.5) 28.0 (118.7) (78.3)

Increase / (decrease) in trade and
85.4 102.5 (32.7) (275.6) 17.8
other payables
(35.4) (297.3) (12.3) (162.8) (149.7)
Cash generated from operations 527.4 342.8 557.0 258.0 97.6
Income taxes refund (paid) (net) (82.7) (46.1) (60.7) (81.0) (48.2)
Net cash from operating activities 444.6 278.7 496.4 177.0 49.4
B Cash flow from investing activities
Proceeds from sale of fixed assets 6.9 13.3 8.8 2.2 2.8
Capital subsidy received 0.0 - - - 0.00
Sale / redemption / (purchase) of
(749.5) 212.3 (116.1) 257.4 84.9
investments (net)
Proceeds from transfer of business
0.0 5.1 34.5 - 5.4
Interest received 33.4 24.8 24.3 13.2 4.3
Dividend received 16.8 4.2 23.7 16.5 6.4
Capital subsidy received 1.6 - - - -
Increase / decrease in corporate
25.9 (89.8) 132.5 (184.6) 2.00
Purchase of fixed assets (275.7) (238.1) (302.7) (200.0) (153.7)
Investment in equity of joint
0.0 - (1,596.9) (661.1) 0.0
Investment in equity of subsidiaries 948.7 (504.6) (453.8) (91.4) (44.4)
Acquisitions 0.0 - - - -
Net cash (used in) / from investing
(1,889.3) (572.8) (2,245.7) (847.8) (92.3)
Cash flow from financing
Proceeds from issue of share capital
0.0 1.7 9.8 0.0 0.0
(including share premium)
Security premium received 0.0 339.7 759.9 0.1 0.0
Proceeds from issue of share
0.0 377.4 - - -
warrants (net of conversion)
Proceeds from / (repayment of)
1,755.8 (157.8) 1,272.9 764.9 88.0
borrowings (net)
Dividends paid (including tax (63.9) - (106.1) (27.3) (27.1)

Tolani Institute of Management Studies

Indian Rayon

Interest and finance charges paid (254.6) (194.6) (184.7) (62.1) (21.9)
Net cash (used in) / from financing
1,437.3 366.5 1,751.8 675.6 39.1
Net increase in cash and equivalents (7.3) 72.4 2.4 4.8 (3.9)
Cash and cash equivalents (opening
97.2 22.7 20.3 9.4 13.3
Cash of IGFL and BGFL - - - 6.2 -
Cash acquired on merger of ABIL - 2.0 - - -
Cash outflow on sale of RST unit - (0.0) - - -
Cash and cash equivalents (closing
89.8 97.2 22.7 20.3 9.4

Ratio analysis:

Unit 08-09 07-08 06-07 05- 04- 03-04 02-03 01-02 00-01 99-00
s 06 05
Ratios and statistics
Operating % 11.6 15.7 16.5 15.9 13.7 15.4 16.0 13.0 13.8 14.4

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Indian Rayon

Gross % 6.9 11.5 12.6 14.7 13.2 15.4 15.1 10.4 10.4 12.1
Net profit % 2.9 6.1 6.6 7.1 6.1 8.3 7.3 3.1 4.8 5.4
Net sales/ X 0.6 0.6 0.7 0.9 1.0 0.9 0.9 0.9 0.9 0.6
Interest X 2.0 3.1 3.1 6.5 11.4 10.7 5.5 3.1 2.8 2.5
Debt X 1.2 1.2 1.2 2.9 6.8 1.7 2.0 2.0 1.0 0.6
ROACE % 5.3 7.5 9.6 11.2 9.7 11.4 11.3 7.6 8.3 5.9
ROAE % 3.4 6.8 8.4 10.5 8.7 10.8 9.4 3.9 6.2 4.6
(net profit
/ average
net worth)
Current X 2.9 3.1 3.1 3.3 2.7 2.3 2.6 3.0 3.5 3.3
Debt X 1.1 0.7 0.9 0.7 0.4 0.3 0.2 0.4 0.4 0.6
ratio (total

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Indian Rayon

debt / net
Debt X 0.6 0.5 0.6 0.4 0.2 0.2 0.2 0.3 0.3 0.3
ratio (long
term debt
/ net
Dividend Rs. 4.0 5.8 5.5 5.0 4.0 4.0 3.8 3.3 3.0 1.0
per share
Dividend % 30.9 26.3 26.0 25.5 24.1 20.6 24.0 45.5 28.9 11.5
tax (as %
to net
EPS Rs. 14.5 26.1 25.6 24.5 18.3 21.1 17.0 7.0 11.0 9.3
CEPS Rs. 29.7 43.9 41.0 38.2 31.0 35.2 32.6 23.0 22.8 20.9
Book Rs. 433.8 424 335 264 226 211 194 180 188 180
value per
No. of Nos. 155,4 155,0 164,6 89,2 94,1 102,4 117,8 124,1 127,2 133,8
equity 97 28 03 87 37 88 69 53 57 05
Closing Rs. 445.0 1,396. 1,070. 748. 402. 188.5 75.3 71.1 80.4 56.3
price as 2 9 0 3
on 31st
March –

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Indian Rayon

Market Rs 4,227. 13,26 9,992 6,24 2,40 1,128 451 426 481 337
capitalizat cror 4 5 6 9
ion (NSE) e
Price x 30.8 53.6 41.8 30.6 22.0 8.9 4.4 10.2 7.3 6.1
Price /x 1.0 3.3 3.2 2.8 1.8 0.9 0.4 0.4 0.4 0.3
value ratio
Exports Rs. 636.2 624.3 482.6 460. 447. 383.5 372.8 388.3 397.3 296.0
(FOB) cror 1 4
Capital Rs. 268.8 224.8 293.9 199. 153. 147.6 33.0 38.9 23.7 185.3
expenditur cror 9 7
e (net) e
Strategic Rs. 1,073. 435.4 2,063. 791. 36.7 165.8 (22.9) 126.2 82.8 5.2
investmen cror 1 6 9
ts (net e
* before exceptional items

1) Is company providing accommodation?

Tolani Institute of Management Studies

Indian Rayon

Yes No

2) Are you satisfied with working environment?

Yes No

3) Are you feeling secured by working in this company?

Yes No

4) Are you satisfied with your superiors?

Yes No

5) Are you satisfied with the recreational facilities provided by the company?
Yes No

6) Are you satisfied with the wages / salary given by the company?
Yes No

7) Are you provided with the loan facility by the company if required?
Yes No

8) Is company providing sufficient compensation to those workers the time of

Yes No

9) Would you like to do job rotation?

Yes No

10) Give parameters for job satisfaction?

Tolani Institute of Management Studies

Indian Rayon

Yes No

11) Which kind of welfare facilities you would like to add in the list of facilities
provided by the company?


Age: - 20 to 3o 30 t0 40 40 to 50
Above 50

Education: - Schooling Graduation Post

Position of Job: - Permanent Temporary

Years of Experience: -

Monthly Income: - less then 5000 5001 to 10000

10001 to 15000 Above 15000


 Literature:

➢ financial Reports of the Financial year 2008-2009

➢ Financial management By I.M. Pandey 4th edition

Tolani Institute of Management Studies

Indian Rayon

➢ Fact and Figures of Birla Group Publication

➢ Financial statement of Ray one Division, ABNL.

➢ Financial management -Khan &Jain 5th edition

➢ Human remorse management -Aswathappaa

➢ Marketing Management- Philip Kotler

 Web sites:

➢ www.
➢ www.indianray
➢ _group/heritage.htm

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