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This to certify that Mr. SANTOSH D. AMILKANTHWAR

student of MBA second year has successfully completed has

in plant training at “KLAUS UNION ENGINEERING

PVT.LTD” He has immense ability to do his work.




I express my special thanks to Mr. Ejaz Qureshi (director)

Rajarshi shahu institute of management, Aurangabad for valuable


It is our pleasure to place on record our sincere gratitude

towards our guide Mr. - MR.PARIKH (HR Dept.) KLAUS UNION


who spent his precious time providing continuous ideas and expert

guidance to our Report work, it was his direction and encouragement

at every moment and step that motivated us to steer the research

work confidently and successfully.

My special thanks to Prof. Sachin Patil is in plant guide for

their valuable guidance during the project report.

We are indebted to our respected parents because of whose

blessing we have been able to carry out this work successfully.

Mr. Santosh D. Amilkanthwar


I hereby declare that this project report submitted by

me in my partial fulfillment of Master of Business
Administration is a genuine work of mine.

It has not been submitted either fully or partly to this

or any other institute prior, in any other connection.

Mr. Santosh D. Amilkanthwar

M.B.A. (3rd SEM) (Finance)


KLAUS UNION (UK) LTD as private limited company and the company
was incorporated on 31st May 1999. The promoters M/s KLAUS UNION are
from Germany having business all over the world and are pioneers in the
field of manufacturing magnetic coupled seal less pumps and valves.
The company due to availability of skilled human resources and
casting industries in India, as compared to Europe has established its own
engineering centre in Pirangut, near Pune, India. The another reason of
setting up plant in India is lower production cost, required lower wages to
the workers as compared to the Europe. The company is sourcing rough
castings are machined and exported to parent company in Germany.

This is the punch line of the company. The mission of the company is
“The global leadership in manufacturing specialized components, which
meet international standard, is what Klaus Union Engineering Pvt. Ltd.
Strives for and these are attained by understanding the changing needs and
expectations of customers.


Klaus Union Germany was established in 1946 and since then gained
much acclaimed as a world wide manufacturer of Magnet Drive Sealless
Pumps and valves . The Company houses a culture of dynamism and growth.
Out and out futuristic , revolutionary and keeping with the times, the
company has curved for itself a unique place in its niche market.
Klaus Union has contributed tremendously in enhancing performance
and safety in industries dealing with aggressive, toxic and explosive fluids.
The finest tribute to the company is the lasting veneration which the growing
number of clients have lavished upon this marque. This lasting and growing
success is not a matter of chance but rather an obvious result of tenacity,
dedication and philosophy of adherence to stringent international quality
norms. Add to this an approach of environment consciousness and
epitomized customer care and we are talking not of just of a business house
but rather a conglomerate with a vision.


Established in the year 2001, Klaus Union Engineering Pvt. Ltd.
and lives by the philosophy of the parent company in every sphere of
operation. The modus operandi is one where finesse and perfection are the
It is well equipped with a wide range of reputed CNC machines like
Mazak, twin spindle multiflex and single spindle Turning Centers and
Mazak and Hedelius machining centers.
Klaus Union Engineering Pvt. Ltd. Has a team of excellent technical
personnel who have vast experience, in not only their own area of work but
also in other equally challenging fields. All CNC operators are qualified
engineers and well trained to undertake high precision jobs. Technical
support for preventive and breakdown maintenance as well as maintenance
strategy, can be jointly worked out for production facilities and set-up.
The unit is located at village Pirangut, Taluka Mulshi, District Pune,
with an investment of about Rs. 500 lacs (0.91 Euro Million).
Indian arm commenced its operations in Feb. 2000 and over the years
the production has increased in leaps and bounds. As per the terms of
collaboration agreement, the parent company has supplied its used
machinery to Indian Company free of cost. Some Machines are procured
Since the commencement of commercial production, the export
turnover of the company is increasing every year.


2001.2002 Rs. 14 Million
2002.2003 Rs. 30 Million
2003.2004 Rs. 44 Million
2004.2005 Rs. 57 Million
2005.2006 Rs. 60 Million
2006.2007 Rs. 72 Million
2007.2008 Rs. 102 Million

The company is expected to achieve a turnover of around Rs. 115

Million for the year 2008-2009.
Recently the unit has made its expansion (Phase II) and plans to
manufacture mechanical pumps for Indian market, which so far has catered
by Germany directly.
In the Klaus Union Engineering Pvt. Ltd. The Human Resource Manager
Ms. Afreen Shaikh manage the Human Resource department. There are
various functions of this department is as follows.

1) Selection and Recruitment Process

2) Manpower planning
3) Salary and Wage Administration
4) Record of the Employees
5) Motivation to the Employees
6) Performance Appraisal
7) Maintenance of Discipline
8) Welfare of Workers
9) Security Section


The Selection and Recruitment process is the
important process of Human Resource Department. This process is very
essential to fulfill the vacancies. In Klaus Union Engineering Pvt. Ltd. The
recruitment process carried out in the following manner.

HOW ? :-

- In case of resignation
- In case of workload
- In case of Departmental program
- Introduction of new system
The above four ways suggest that how to find
out vacancy in the company.
WHO ? :-
The vacancy can be find out by the department head or the Human
Resource Department. There are various departments in the company like
Finance, Planning, Marketing etc. The vacancy can be find out by a
particular department head as a particular department head as they required.
All the head of departments are connected with the Human Resource
After this process of identification of vacancies the Human Resource
Department gives advertisement in the newspaper for the vacancies in the
company for job. There is another way to fill up the vacancy through the
placement consultants. They also fill up the vacancy through employee

After giving advertisement in newspaper the vacancies and also to
placement consultants the Human Resource Department receives the CV’s of

The concern department head and Human Resource department
choose the appropriate candidate with the help of CV’s for the particular
vacancies. They go through all the CV’s but choose applicable candidates.
After receiving CV’s that are short listed. The short listed CV’s
(candidate) get a call for interview . This is the important process of Human
Resource Department to select a good candidate for a specific job.

The interviews are in three steps. The first round will be carried
out by the Human resource department means the personnel manager
or head of human resource department will take the interview.

This round will be carried out by the department head. In this
round the head of a particular department will take the interview to
select appropriate candidate for his department. This round is also
called as technical round in which the technical questions are asked
for checking his technical abilities.

In this round the managing director take the interview . It is also
called management round.


If the candidate pass all the three rounds then there is another
Human Resource round for the negotiation in the salary and for the
offer letter.

This is also called human resource planning which is the most
important work of the Human resource department. The personnel
manager plans manpower required for the work according to the
quality of the work required. Period for the completion of the work
and talent required for the completion of the work.
In the Klaus Union Engineering Pvt. Ltd. Identify a new
position or vacancy due to introduction of new system. To handle this
new system the qualified persons are required. In the company
recently introduce a software named DEO. To handle this software the
Human Resource department plan for the new position.
In production department there is requirement of new workers in
case of work load. This company sets the target of production on this
basis manpower planning will be done. In this company manpower
planning done in case of profit maximization and workload. Growth
of the company is also important factor for which manpower planning
is required. The Human Resource Department play an important role
in case of manpower planning.


The Human Resource Department is always trying to motivate
the workers as well as the employees for the growth of the company
and employees. They arrange picnics, target achievement parties for
get together. Because of this get together the employee will attract
towards company. There is six monthly or annual get together parties.
The company send employees for training for skill up
gradation, in case introduction of new system or technology. Training
is very essential motivational factor. The company pay performance
pay or incentives on achievement of targets. The company declares
yearly bonus to the employees in case of earning more profit.
The salary and wage are paid to the employees as per rules and
regulation maid by the main company which is in Germany. And all
other procedure done by this company. The personnel manager
maintains record of the number of workers employed in each
department or section.
At the end of each month the Human Resource department
calculates the number of days worked by each employee by the help
of cards and muster rolls. This information is filled up in the pay slip
sheet and his net salary is calculated along with deduction of
provident fund. This information is supplied to accounts department.
The deduction mainly consists of the following things –
i. Employee State Insurance (ESI)
ii. Professional Tax
iii. Provident Fund


The human resource department keeps record of all the
employees of the company. The human resource department maintain
the attendance register, leave record of the employees. The attendance
register is useful for the wage/ salary determination.

Performance appraisal is the important work of Human
Resource department. The performance appraisal is also a motivation
for the employees. According to the work or performance the
employee get the promotion. The Human Resource department closely
check the performance of the employees.

The Human Resource department maintaining discipline in all
the departments of the company including the security section.
Because of maintaining discipline in a proper way. It is very important
function the Human Resource manager play an important role.

The Human Resource department take care of welfare of the
employees. The company provides med claim group insurance bonus,
cantine facility, proper working conditions.

In this company the security is under the Human Resource
department. The Human Resource department gives the security
related information to the security guard. There are six security guards
in this company and these guards are working in shift wise which is
declare by the Human Resource department. All the security related
rules and regulation make by Human Resource department.
In the Klaus Union engineering private limited the production manager
Prakash Mane manage the production department. There are more the 150
employees in production department. Some employees are on roll employees
and others are on contract basis. In production department there are
production of shaft, casting of pumps and valves. The assembling will be
done in the Germany. These parts are of the chemicals pumps. The
production department receives the raw materials from the store department.
For the production process machines plays an very important role. These
machines are :-
1) Band saw cutting machine

2) CNC machine
3) VMC
This machine is used for cutting of bars. Bars which is used for
making shafts, shafts are used. This process is done manually. Cutting
with the help of attached blades in chemical pumps. This machine is
called as special purpose machine. In this process first adjust the length
of bars to prepare the shafts of particular length and width. After cutting
the bars, these bars are sent forward for the next process or machine
process. Machining process done in CNC machine or VMC machines.

In this machines gives shape to the cut bars to proper the shafts. This
machine is done the work with the help of computer numerical program.
This machine operate on the instruction which is given by the computer.
Firstly they prepare the program for giving instructions to the machine for
the roughing process. After this program for the adjusting the length , width
etc. This machine is also called a turning center. In this machine the first
done the process of roughing of cut bars, casting as required to the shape.
The roughing is done half side first and then finish other side by using coo
lent oil. The coo lent oil continuously flows when roughing process is done.
If the finished part of the product having any drilling, slotting then it will
go through another machine.

This machine is called as vertical machining centre. In this machine

the remaining work of drilling and slotting is done by using milling cutter,
end mill cutter, carbide drill, HSS drill. This machine is multipurpose
machine. After completion of the roughing process in CNC machine the
remaining work of unfinished products will be done in VMC machine like
drilling, slotting, etc.
This machine works with the help of computer programming. Firstly
they have to prepare programming for the particular job and implement that
programming in to the machine through computer. That programming means
instruction to the machines for doing their work. Only one skilled employee
or worker required for operating this machine.
The above machines required to produce following parts of chemical
pumps and valves.

1) Shaft
2) Pump castings
3) Valve castings
4) Spalto flansh
5) Lantern
6) Gehaeuse Deckel
7) Impeller

After all the machining process like roughing, drilling, tapping, etc, the next
process are


After raw material came from store department the in charge of raw
material receiving person make process sheet of every raw material which
will go through the every process.

ID No. - Item Name - Machining

Revision No.-
Model No. - M/C Drawing No. - Model
Revision No. -
Material Code - Model Drawing No. - Finished
Weight -
Shape - Category -

Operation Operation Desk Set Operation Operation Next

Number Up Time Desk Operation
1 Inward Inspection of
incoming material
2 Finish turn section
3 side
4 Rough turn second
5 side
DP testing
6 Milling, Drilling on
7 rotor axis
8 Delivery side
9 serration
10 Finish turn second
Air leakage testing
Debburing, Cleaning
Final Inspection
In every company store department is an essential to make production
continuously. In the company Klaus Union Engineering Private Limited the
store manager Mr. Mahesh Pimple and the six workers are manage the store
department. The inward of stores department as well as the outward Mr.
Pimple look out all the procedure of store department.
First received material at security gate. First security inward the
material in register. Store personnel inform to security allow vehicle to store
department. Workers from the stores unload the material and give
acknowledgement in supplier challan. Stores inward the material in
respective category of material like raw material, consumable, packing, job
work. Stores prepare good receipt note and write the quantity actual
received. Stores then forward the G.R.N. (goods receipt note) to Q.C.
(quality checking) for approval of material. Quality control person check the
material as per the specification and write the accepted quantity and rejected
quantity on G.R.N. and forward to stores. Stores enter the accepted or
rejected quantity in stock register.
If production required the material for material for machining then
production gives material requisition slip to stores. Stores issue the material
as per the requisition slip to production department. Sometimes production
department gives material forwarding note to stores for sending material to
subcontractor for processing purpose. Store department then sent material on
delivery challan on returnable basis for job work purpose to subcontractor.
After the processing from subcontractor material return to stores again.
Stores inward the material and prepare G.R.N.. When material gets rejected
in work in progress (WIP production) after machining of castings the quality
control gives the rejected castings material back to stores along with the non
conformity report (NCR).
Stores along with the Non Conformity report, report send material
return back to concern supplier on non returnable delivery challan and debit
invoice. When finished goods is ready then excise department give packing
list to stores for sending finished goods to Germany. Stores sent finished
goods on non returnable delivery challan. Some castings or parts are get
rejected in production which are not going to repair or rework and not faulty
from supplier, that material is quality control declare as scrap material. Scrap
material is also return to stores along with non conformity report.


1) OK – Raw material (Including castings and bars M.S. and S.S.)
2) Rejected – Raw material (as castings) W/O Machining

3) Scrap castings or parts

4) Consumables Like – Cutting Oil, Hydraulic oil, Thinner paints,
Antirust oil, Bar cutting blades.

1) Pump castings
2) Valve body
3) Zwschenlanterne
4) Impellers
5) Zwischen Flange
6) Yoke
7) Shafts
8) Lager Deckel
9) Forged Bars
10) late Materials

1) Oil
2) Hydraulic Oil
3) Thinner
4) Welding electrodes
5) Paints
6) Antirust Oil
7) Bar cutting blades etc.
In the Klaus Union engineering pvt ltd . The purchase Manager Mr.
A.G.DESHPANDE and assistant Manager Mr S.D.GIDDE manage the
purchase department . There are 10 employees in the purchase department
including manager and assistant manager .Quality of raw material checked
by purchase department itself.
All the raw material purchase from India .All the purchase order made
by Mr A.G.DESHPANDE who is the head of the department. Mr Deshpande
made negotiation
In the price of raw material and as well as they check the quality of
the raw material .
Purchase department mention on the purchase order that the required
material for the production is of which quality . After getting the raw
material the purchase department check the quality of the raw material is
same as mentioned on the purchase order .
If the quality of the raw material is not same as mentioned on the purchase
order , that raw material resend to supplier. All the raw material purchase
from India, places Sangli, Jungad , Nagpur etc.


1) Shaha precicast – Sangli (MAHARASTRA)

2) Castek foundries -Junagad (gujrat)

3) Unideritend –thane (MAHA.)

4) Sunflag-nagpur
5) Chanden steel –Murbad(Mumbai)
All supplier are certified supplier


The Head of the quality control department is Mr. A.G. Deshpande

and assistant manager Mr. S.D. Gidde. There are six people in quality
control department. Quality checking in terms of dimensions, material grade
etc.. The quality control department do the receipt inspection. Receipt
inspection means material on receipt and actual received material is same or
not. They check the received material is of right dimension, right length,
right length, right width also check the grade of that material which is
mentioned on the purchase order.
Klaus Union Engineering Private Limited believes in maximum
quality assurance for the manufacturing of all products, which is attained by
strict compliance to quality norms. It is dedicated to produce fine quality
products the efficiency of which can be proved by the use of these parts in
process pumps and Industrial valves which handle extremely critical fluids.
All material is repeatedly inspected for conformity on receipt, in process and
before dispatch. Klaus Union is one of the leading manufacturers of pumps
and valves specially designed for the chemical industrial market. The
professional production capability acquired over more than 50 years, a
sophisticated and state-of-the art fabrication process provide an excellent
basis for findings optimum solutions to any special problems, versatile
response to any specific requirement imposed by the user. Pump and Valve
units supplied by Klaus Union are of superior quality and come up to the
highest standard. They contribute to appreciably enhance both performance
and safety of your installation and, besides, they cut pollution to the benefit
of environment and mankind.
It is the policy of Klaus Union to achieve adequate quality assurance
for the manufacture of all products to ensure they comply with contractual
requirements. All sub suppliers are totally committed to assure and achieve
the contractual requirements through vigorous implementation of the quality
assurance program. All purchased materials is repeatedly inspected for
conformity on receipt and after assembly. The quality assurance system
established according to latest state-of-the art principles fully complies with
the requirements specified in international codes and regulation. A quality
assurance system that has been verified and certified warrents that the
requirements imposed by you are fully complied.
The company has its own quality policy. Klaus Union Engineering
Private Limited is committed to achieve customer satisfaction through

1) Continual improvement in quality service and timely deliveries to

exceed customer expectation.
2) Planned and efficient utilization of technology and material resources.
3) Devotion, involvement, dedication and co-operation of all people at
every stage.
4) Training employees to improve their skills and knowledge.
The head of department is Mr.Prakash Mane.
Total employees working under safety dept. are five.
In Klaus union engineering Pvt. Ltd. Safety workers is the main
priority. There are 5 workers working under the head of department Mr.
Prakash Mane. For the safety of workers. They continuously check all the
workers are using the safety instruments or not. They also in touch with
mechanical engineers for the purpose of safety of workers . mechanical
engineers daily check all the machineries are working proper or not.
The safety dept. provides safe shoes, gloves, goggle for welding
purpose. they also provides safety belts while the workers working on lifts
the safety dept. always giving training to all the employees of this dept.
Safety has always have a great important because the employees are the
asset of the company
The safety dept. arranges the fire fighting training camp yearly for the
workers. Also the work seminar on safety management
High safety demands are put on pumps delivering highly dangerous
fluids. In addition to their normal application, the pumps must prove their
safe and reliable operation even under adverse and extreme conditions, all by
maintaining the perfectly sealed condition for a very long period of time. Is
this a stringent requirement? Pumps and valves manufactured and supplied
by Klaus Union under the trade name SEALEX incorporate this safety. The
pumps come without stuffing box, instead they are equipped with the
permanent magnetic drive system thus insuring leakage-free pumping of all
fluids with their exceptional operational performance and reliability safely
maintained. The SEALEX system eliminates the need for shaft passages
since the motor torque is transmitted to the perfectly sealed volutes in the
absence of any mechanical contact. This advances technology involves the
central coupling where the permanent magnet with the same even number of
poles are alternating thus ensuring a perfect rotational symmetry. The
concentric design of the coupling safely prevents any undesired radial and
axial forces from acting on the mechanical bearings. Adoption of the torque
to any required operational mode is made by varying the system diameter
and its heights. Full rotation of the coupling will not affect the condition of
the magnets. After de-energizing the drive, synchronization of both coupling
halves is restored automatically.

Environment department of the company handle by Miss. Afreen
Shaikh. This is manufacturing unit so at the time of production the generated
scrap stored at the defined location and disposed on weekly basis. It is sale to
the certified agency. The generated scrap is iron fillings. The generated iron
fillings purchased by certified agencies. There also the oil waste and it also
sale to certified agency. In the company there is a canteen facility for the
workers and for the food waste pit created for making manure.
The Klaus Union Engineering Private Limited company is 100% export
oriented unit so packing is very important department.
The head of department is Mr. Shivkumar Peddawad.
Total employees working under safety dept. are ten.
Mr. Shivkumar manage the packing department very well because all
the finished goods exported to Germany. Required material for the packing
of finished goods is of high quality. Mr. Shivkumar made purchase order for
required packing material. He also check the quality of that material.

Material required for packing

1) Wooden boxes are required for packing of castings such as pump
casting, valve castings etc.
2) Wooden palettes are also required for the same.
3) For packing of small parts they required the corrugated boxes.

4) For packing these small parts it required plastic caps.

They pack M.S. casting different and S.S. castings differently, because
for M.S. castings required hydraulic oil preventing rust. Before putting these
M.S. castings in the wooden boxes put these M.S. castings in VCI bags with
hydraulic oil.
There is no requirement of hydraulic oil for S.S. castings. It requires two
ply-papers for the packing and after that it will put in to the wooden boxes.
This department is with main company which is in Germany.
Research and Development work continually made by Klaus Union
focusing at an advanced technology of environmental compatibility has
resulted in a product range that warrants safe and reliable operation in
compliance with virtually all and any requirements.
In addition to the products listed, Klaus Union can assist you in
resolving any of your special problems. Research and Development
department of the company trying to develop a new concepts in the chemical
pumps and valves.

The company Klaus Union Engineering Private Limited don’t have
marketing department India. The company is 100% export oriented unit. All
the finished goods exported to Germany. In the finished goods all are the
parts of chemical pumps and valves. The main company which is in
Germany have marketing department itself. Because in India requirement of
chemical pumps and valves is lower.
Recently the unit is planning for its expansion (phase II) and plans to
manufacture mechanical pumps for Indian market, which so far has catered
by Germany directly.
The head of department is Mr. Vilas Kudalkar and Assistant manager
is Mr. Nitin Sawant.
The company’s planning is done in the Germany which is main
branch. The planning department plans for the daily production and sends to
the unit which is in India. The Indian branch follow the plans and does
appropriate production as they send. The plant which is in Germany
sends.The designs of parts & planning department head Mr. Vilas Kudalkar
prepares a program for such designs & that part will be produced through
the machining center. And all other planning like requirement of extra
worker , designing production plan etc is done by Mr.Vilas Kudalkar with
the help of management.
The head of department is Mr. Nitin Dhere and assistant executive is
Mr. Ranjeet Bonte.
Finance department is heart of the every company. Mr. Nitin Dhere is
the head of the department. There are four employees in the finance
department. The turnover of the company for the year 2008 and 2009 is Rs.
116 million. The company is financially is so sound.
The company Klaus Union Engineering Private Limited manage their
working capital itself. Company raise funds from taking term loan against
machinery. They take Cash Credit on export bills. From this money the
company purchase the required raw material. This money is also called as
working capital. This company is not listed company. They paid tax on
purchase of raw material and claim rebate, because the company only
exports their goods.