Professional Documents
Culture Documents
ACKNOWLEDGEMENT
There are number of people to acknowledge and thank for their contributions to this
Project. Here is a consideration of all those esteemed people who provided not only their
valuable time but also their views and transferred their knowledge and experiences, which
further enhanced the project and made it more than what it would have been.
Also, please accept sincere apologies along with a thank you who have contributed
but their names have not been included.
Thank You…
Yours faithfully,
Nitin Moyal
DECLARATION
I also hereby declare that all the information given in the report is
true to my knowledge.
Reg no.
Place: Bangalore
Date:
Nitin Moyal
As a part of two year MBA program at the end of 1st trimester, we had to carry
on a project in an organization in order to understand the organization structure and their
functions. This was a great opportunity to get the first hand information and understand the
functioning of the various departments
➢ As we had a limitation of time, the detailed report about the operations of the
organization was not possible.
➢ The information given by the persons may not be complete because of their busy
work schedules
➢ The report suffers from the limitation of meeting only the departmental heads
because of lack of permission to interact with other people.
The following are the primary datas collected for the study,
SECONDARY:
The following are the secondary data’s collected for the study,
Internal Data - These are all the companies’ own data which they provided
like Organization structures, Balance sheet, Annual reports etc.
External Data- These are all the data relating to the company or
Organization derived from external sources such as internet, and other
types of media services that give a wide picture of the Organization with
respect to the external work.
Global Scenario
Indian Scenario
Past & Current Situtation
Introduction
Cement is a key infrastructure industry. It has been decontrolled from price and
distribution on 1st March, 1989 and delicensed on 25th July, 1991. However, the
performance of the industry and prices of cement are monitored regularly. The constraints
faced by the industry are reviewed in the Infrastructure Coordination Committee meetings
held in the Cabinet Secretariat under the Chairmanship of Secretary (Coordination). Its
performance is also reviewed by the Cabinet Committee on Infrastructure.
➢ Holcim, Switzerland
➢ Cemex, Mexico
➢ Italcementi, Italy
Technological change
Cement industry has made tremendous strides in technological upgradation and
assimilation of latest technology. At present ninety three per cent of the total capacity in the
industry is based on modern and environment-friendly dry process technology and only seven
per cent of the capacity is based on old wet and semi-dry process technology. There is
tremendous scope for waste heat recovery in cement plants and thereby reduction in emission
level. One project for co-generation of power utilizing waste heat in an Indian cement plant
is being implemented with Japanese assistance under Green Aid Plan. The induction of
advanced technology has helped the industry immensely to conserve energy and fuel and to
save materials substantially.
The Cement Corporation of India, which is a Central Public Sector Undertaking, has
10 units. There are 10 large cement plants owned by various State Governments. The total
installed capacity in the country as a whole is 159.38 million tonnes. Actual cement
production in 2002-03 was 116.35 million tonnes as against a production of 106.90 million
tonnes in 2001-02, registering a growth rate of 8.84%.
Keeping in view the trend of growth of the industry in previous years, a production target of
126 million tonnes has been fixed for the year 2003-04. During the period April-June 2003,
a production (provisional) was 31.30 million tonnes. The industry has achieved a growth rate
of 4.86 per cent during this period.
Cyclical industry
Exports
Apart from meeting the entire domestic demand, the industry is also exporting cement and
clinker. The export of cement during 2001-02 and 2003-04 was 5.14 million tonnes and 6.92
million tonnes respectively. Export during April-May, 2003 was 1.35 million tonnes.
Major exporters were Gujarat Ambuja Cements Ltd. and L&T Ltd.
Further, in order to improve global competitiveness of the Indian Cement Industry, the
Department of Industrial Policy & Promotion commissioned a study on the global
competitiveness of the Indian Industry through an organization of international repute, viz.
KPMG Consultancy Pvt. Ltd. The report submitted by the organization has made several
recommendations for making the Indian Cement Industry more competitive in the
international market. The recommendations are under consideration.
Technological change
Cement industry has made tremendous strides in technological upgradation and
assimilation of latest technology. The induction of advanced technology has helped the
industry immensely to conserve energy and fuel and to save materials substantially. India is
also producing different varieties of cement like Ordinary Portland Cement (OPC), Portland
Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement,
Rapid Hardening Portland Cement, Sulphate Resisting Portland Cement, White Cement etc.
Production of these varieties of cement conform to the BIS Specifications. It is worth
mentioning that some cement plants have set up dedicated jetties for promoting bulk
transportation and export.
Past years
The Cement industry continued its growth trajectory over the past seven years.
Domestic cement demand growth surpassed the economic growth rate of the country for the
past couple of years. Over the past five years (FY03-07), cement demand grown at a CAGR
of 8.37% higher than the CAGR of supply at 4.84%. Demand for cement in the country is
expected to continue its buoyant ride on the back of robust economic growth and
The key drivers for cement demand are real estate sector, infrastructure projects and
industrial expansion projects. Among these, real estate sector is the key driver and accounted
for almost 55% of cement demand in FY 07. Cement is a bulky commodity and cannot be
easily transported over long distances making it a regional market place, with the nation
being divided into five regions. Each region is characterised by its own demand-supply
dynamics. The Southern region dominated the cement consumption at 44.5 mn tonnes in FY
07, accounting for about 30% of total domestic cement consumption.
Real estate sector is the booming sector in Indian economy. It promotes the
infrastructural development and Foreign Direct Investment (FDI) in the country.
Everyone has the dream to have a house. And it is such a scenario where so many
people now have started living in nuclear families. Break-ups in joint families during last few
decades promote the people to buy home and apartments for their own. In the last few
decades, the income of middle class people is rising. Which in turn increased the domestic
demand for cement.
India's economy is a developing one. And Reality sector forms 5-6 per cent of the
Gross Domestic Product (GDP). Large scale investment, rapid urbanization and Foreign
Direct Investment (FDI) are contributing to the growth of real estate sector in India.
Government also promotes the international business groups to invest in this industry. It is
such an industry where so many of job opportunity exist and it promotes several different
industries like glass, iron, cement, painmt, steel etc.
Domestic Cement industry is highly insulated from global cement markets. Exports
have been constant at about 6% of total cement demand for past few years. With GoI
intervention, making cement duty free, cement is being imported from neighbouring
countries. However, due to logistics issues and lack of port handling capabilities, imports of
cement will remain negligible and do not pose a threat to domestic industry.
CURRENT SITUATION
Top cement companies record slowest growth in eight quarters
Warning signs are showing up on the country’s cement industry, as it struggles with
escalating input costs and a forced inability to pass on the costs to their customers.
Two of the top four cement manufacturers in the country have seen their profits slide in the
quarter ended 30 June, while the other two witnessed their slowest growth in eight quarters.
On Friday, Ambuja Cements Ltd said its net profit for the quarter fell 33% to Rs577.02 crore,
year-on-year, while Grasim Industries Ltd reported a marginal 0.4% rise.
Ambuja Cements’s quarterly net sales rose 8% to Rs1,569.77 crore and its domestic
despatches were up 5%, but exports fell 70% reflecting the export ban initiated by the
government, which impacted six weeks in the quarter.
“Cost pressures continue to be unrelenting,” Ambuja Cements said in a statement. “Fuel and
power costs in our plants are significantly higher year on year (34%), in particular cost of
imported coal which has tracked global oil developments and shown no signs of abatement in
the near future.”
Ambuja Cements also had an exceptional gain of Rs303 crore net of tax on the sale of its
remaining stake in Ambuja Cements Pvt. Ltd to Holderin Investments Ltd, the investment
subsidiary of Swiss cement major Holcim Ltd.
Grasim Industries, part of the Aditya Birla Group, said net profit for the quarter came in at
Rs672 crore, while revenue grew to Rs4,430 crore from Rs4,060 crores.
Production increased by 3% at 3.99 million tonne, while ready mix concrete volumes grew
by 61% due to the commissioning of new plants.
Few week before, UltraTech Cement Ltd said its profit for the first quarter rose 2% while
ACC Ltd, the country’s largest cement maker, on Thursday reported a near 27% drop in its
second-quarter net profit hurt by a surge in fuel and input costs.
9.
shree
Competition
Bottom of Form
Shree
Cement Ambuja Cements ACC UltraTechCement India Cements
s
Mar '08 Dec '07 Dec '07 Mar '08 Mar '08
Sources Of Funds
Shree
Cement Ambuja Cements ACC UltraTechCement India Cements
s
Mar '08 Dec '07 Dec '07 Mar '08 Mar '08
Application Of Funds
Total CA, Loans & Advances 1,114.53 1,615.11 2,307.94 1,317.49 2,149.41
N. S. Sekhsaria, Vice
Chairman
A. L. Kapur, Managing
Director
Industry Cement
Products Cement and Clinker
Website www.GujratAmbuja.com
Ambuja Cements Limited, formerly known as Gujrat Ambuja Limited is a major Cement
producing company in India. The Group's principal activity is to manufacture and market
cement and clinker for both domestic and export markets.
The Company also operates a hotel through its subsidiary GGL Hotel and Resort Company.
It has shown innovation in utilizing measures like sea transport, captive power plants, and
imported coal and availing of govt. sops and subsidies to constantly check the costs.
Ambuja Cements Limited was earlier known as Gujarat Ambuja Cements Limited (GACL).
The company was set up in 1986. In this short span Ambuja Cements has achieved massive
growth and presently, the total cement capacity of the company is 16 million tonnes. The
company has three subsidiaries, viz, Ambuja Cement Rajasthan Limited (ACRL), Ambuja
Cement Eastern Limited (ACEL) and Ambuja Cement India Limited (ACIL). Ambuja also
has a strategic investment in ACC through its subsidiary (ACIL).
Ambuja Cements is the most profitable cement company in India, and the lowest cost
producer of cement in the world. One of the major reasons that Ambuja Cements is the
lowest cost producer of cement in the world is its emphasis on efficiency. Power consists
over 40% of the production cost of cement. The company improved efficiency of its kilns to
get more output for less power. Thereafter Ambuja Cements set up a captive power plant at a
substantially lower cost than the national grid. The company sourced a cheaper and higher
quality coal from South Africa, and a better furnace oil from the Middle East. As a result,
today, the company is in a position to sell its excess power to the local state government.
Ambuja cement is the first company to introduce the concept of bulk cement movement by
sea in India. This resulted in speedier transportation and brought many coastal markets within
easy reach. Ambuja Cements has a port terminal at Muldwarka, Gujarat. It is an all weather
port that handles ships with 40,000 DWT. The port has a fleet of seven ships with a capacity
of 20500 DWT to ferry bulk cement to the packaging units. The company has bulk cement
terminals at Surat, Panvel, and Galle. The Surat terminal has a storage capacity of 15,000
tonnes and Panvel terminal has a storage capacity of 17,500 tonnes. Both the terminals have
bulk cement unloading facility. The port at Galle, 120 km from Colombo, Sri Lanka, handles
million tonnes of cement annually.
Ticker: 532538
Exchanges: BOM
Country: INDIA
Employees: 3989
Ultra Tech Cement Limited. The Group's principal activities are to manufacture and market
clinker and cement in India. The Group has intstalled capacity of 18.2 million tonnes per
annum comprising 5 integrated Cement Plants, supported by 5 Grinding Units and 3
Terminals, one of which is located in Sri Lanka. The Group exports to the Middle East and
Sri Lanka. It also exports in small quantities to Bangladesh and some European nations.
The Groups cement business is under both Grasim and UltraTech cement. Together the two
companies under the group account for a substantial share of the cement market in India.
UltraTech cement comprises the cement business of L&T which was acquired by the group.
UltraTech announced an increase in sales by 17% and Profit After Tax by 46% for the
current quarter ending.
PEST analysis
PEST analysis stands for "Political, Economic, Social, and Technological analysis" and
describes a framework of macroenvironmental factors used in the environmental scanning
• Political factors include areas such as tax policy, employment laws, environmental
regulations, trade restrictions and tariffs and political stability.
• Economic factors are economic growth, interest rates, exchange rates and inflation
rate.
• Social factors often look at the cultural aspects and include health consciousness,
population growth rate, age distribution, career attitudes and emphasis on safety.
spending priorities)
- Consumer protection - Policy towards - Lifestyle changes - Speed of technology
unemployment (e.g. Home working, transfer
(minimum wage, single households)
unemployment
benefits, grants)
- Employment law - Taxation (impact - Attitudes to work and - Rates of
on consumer leisure technological
disposable income, obsolescence
incentives to invest
in capital
equipment,
corporation tax
rates)
- Government - Exchange rates - Education - Energy use and costs
organisation / attitude (effects on demand
by overseas
customers; effect on
cost of imported
components)
- Competition regulation - Inflation (effect on - Fashions and fads - Changes in material
costs and selling sciences
prices)
- Stage of the - Health & welfare - Impact of changes in
business cycle Information
(effect on short- technology
term business
performance)
- Economic "mood" - Living conditions - Internet!
- consumer (housing, amenities,
confidence pollution)
POLITICAL ASPECTS:
• Cement plant is deemed to be manufacturing activity for the purpose of incentives for
the industry in line with the approved policy of Government of India.
• All cement plants are entitled to "Industry" status. Such units are eligible for all
concessions and incentives applicable to Industries.
• The State Government encourages flow of investments including FDI and provides
full support wherever required. The State Government can offer customized package
MATS INSTITUTE OF MANAGMENT Page 23
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of incentives for prestigious investment proposals i.e. projects where total investments
are more than Rs. 10 Crore or a Fortune 500 company is implementing the project.
• All cement Units with a connected load exceeding 100 KW shall be charged a
concessional rate of Electricity Duty.
• State Financial Institutions and the Banks, in line with the approved policy of
Government of India, treat cement plants as priority sector.
ECONOMICAL ASPECTS:
• Cement sector uses low cost highly skilled human resources in which India enjoys
internationally competitive advantage.
• The impact of WTO and need for free trade areas can be observed by the fact that
Indian firms have established operations in countries like Mauritius and Brazil while
avoiding Eastern Europe.
• Indian cement firms are used to intense competition in global markets. Most
companies compete only on price and have gained reputation as price warriors.
• Indian managers do not consider the need to customize software solutions for a
foreign country to be a major impediment for global expansion.
TECHNOLOGICAL ASPECTS:
• Modern advances in technology and transport media has a revolutionary change in the
scenario. Latest chemical analysis and there properties forced the industry to keep
them updated.
Porter's 5 Forces analysis focuses on the external factors of the industry. The original
competitive forces model, as proposed by Porter, identified five forces which would impact
on an organization’s behavior in a competitive market. These include the following:
• The Indian cement industry faces dramatic changes, challenges, and constraints as it
uses the global delivery model to transform itself into a knowledge leader competing
with established global giants.
• Since rival firms often hire managers and engineers professionals who have
experience working at established firms, the labor cost for Indian firms is expected to
increase as they compete to retain talent. Unless the Indian educational system can
produce a large number of high-quality new graduates to meet the demand for
engineers, there will be a gradual movement of work to other emerging industries.
In today’s scenario cement manufacturing is a profitable business and many new companies
are attracted to enter into this business. Then also there is no threat to the existing companies
as they have been identified by their performance and services they provide to the customers.
Companies are given exploring, disturbing and producing cement block on the basis of their
financial, technical and performance.
• In cement sector once competitor got customer reliability then it’s difficult to
divert customer mind.
• In cement industry price plays major role and it’s totally depend on market price
i.e. substitutes price. The relative price and performance of substitutes.
Shree cement ltd. is into cement manufacturing business where there is no substitute product
so the threat of substitute is not possible for this industry.
• Brand loyalty is a negligible factor in the software industry mostly due to the concept
of customized business solutions.
• But however there is the advantage of bulk orders being processed due to the fact that
most of the firms cater to business to business prospects only.
• The reputation and the size of the firm also plays an important role in the choice of
clients.
The cost of items bought from suppliers (e.g. raw materials, components) can have a
significant impact on a company's profitability. If suppliers have high bargaining power over a
company, then in theory the company's industry is less attractive. The bargaining power of
suppliers will be high when:
Almost all cement company supplies cement on their own so there is no supplier power
which can affect their business.
Company Profile
Background & History
Mission ; Vission & Philosophy
Objective & Goals
MATS INSTITUTE OF MANAGMENT Page 29
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Milestones
SWOT Analysis
Products & Market
Balance Score Card
Over the last decade, a significant change in business environment has caused
organizations around the world to transform their business model in order to maintain
leadership. This change is hyper-competition - a state that renders traditional competitive
advantage unsustainable. Rapid product introductions to battle the pressures of
commoditization is impacting organizational bottom line faster than ever before.
Shree cement a leading cement manufacturer of North India, has been participating in
the infrastructure transformation for India for over two decades. It started operation in 1985
and has been growing over since. Its manufacturing units are located in Beawar, Ras in
Rajasthan. It also has grinding unit at Khuskera near Gurgaon. It has 3 brands under its
portfolio viz Shree Ultra Jung Rodhak cement, Bangar Cement and Tuff cement.
Its record of steady profitability and healthy operating margin was maintain in 2007-
08 as well. it registered a growth of 51% in net sales which stood us at rs.2065.87 cr in 2007-
08. Its net profit increase by 47% to rs.260.37 cr. During the year.
History of Company
YEAR EVENTS
1979 - The Company was incorporated on 25th October, at Jaipur. The Company was
promoted by members of the Bangur family and others.Shree Digvijay Cement Co. Ltd.,
Graphite India, Ltd. and Fort Gloster Industries, Ltd. took active part in the promotion of the
Company. The Company manufacture's cement & cement products.
- To reduce fuel and power consumption, the Company adopted the latest dry process, four
stage preheater precalcination technology of clinkerisation and air swept roller mill grinding
system for raw material and coal grinding.
- The Company entered into agreement with F.L. Smidth & Co. A/s Copenhagen, a designer
and manufacture of cement plants, its associates F.L. Smidth & Cia. Espanola S.A., Madrid
and with Larsen & Toubro Ltd., Mumbai for the supply of plant equipment and services for
the proposed project. 1984 - 70 No. of equity shares subscribed for by the signatories to the
Memorandum of Association. In Oct./Nov. 1,53,99,930 No. of equity shares issued of which
1,06,99,930 shares reserved for firm allotment as follows:
(ii) 11,00,000 shares each to Graphite India, Ltd. and Fort Gloster Industries, Ltd. And
(iii) 36,99,930 shares to Directors, their friends etc. including upto 25,00,000 shares to NRIs
with repatriation rights. The balance 47,00,000 shares offered to the public of which
18,80,000 shares offered for allotment on preferential basis to Non-Residents.
1986 - A diesel generating set of 13.6 MW was installed for captive power generation.
1991 - Production of clinker and cement declined due to a major shut down of the plant for
implementation of modernisation/renovation/modification work.
1992 - 36,00,000 shares allotted to FLT Ltd. a wholly owned subsidiary of P.L. Smith &
Co. Denmark under financial collaboration agreement.
of its licensed capacity to increase its capacity to 3300 tonnes per day.
- The Company issued 21975 - 16% each with equity warrants and these will be
converted as per institutional guidelines.
1996 - The Company commissioned its second cement plant - Raj Cement with a capacity
of 12.4 lakh tonnes per annum in Beawar.
- 58,06,204 rights shares issued (prem. Rs 10 per share) in the prop. 1:5.
1998 - Shree Cement, the Calcutta-based PD-BG Bangur group company, has decided to
issue preference shares aggregating Rs 15 crore to mobilise long-term funds.
- Shree Cement's expansion in capacity by 12.4 lakh tonnes at the new unit in Reawar,
has made it a leading cement manufacturer in North India.
- ICRA has downgraded the rating of the NCD programme of Shree Cement Ltd
(SCL) from LAA to LA.
- The Rs 372-crore 1.25 million tonne cement plant near Ajmer was commissioned
during the year after considerable delay due to an explosion in the electro-static precipitator.
- Shree Cements has an installed capacity to produce up to two million tonnes of cement
per annum in Rajasthan and has an equity capital of about Rs. 34 crores.
1999 - The company has been awarded the first prize for energy conservation in 1998 in
the cement sector.
- SCL, belonging to the house of Bangurs, is one of the largest cement manufacturers in
North India, having the installed capacity of 2 million tonnes. Its plants are located in
Rajasthan. The new plant was set up at Beawar with the capacity of 1.24 million tpa in
Rajasthan.
2002
-Unit I and Unit II of the company receives National Award for 'Best Electrical Energy
Performance' and 'Best Thermal Energy Performance' in the Cement Industry for the year
2000-01
-Decides to change the Accounting year to April - March each year and accordingly
the current year is only for nine months.
-In pursuance to the IDBI, company approve for early redemption of privately placed
under noted cummulative redeemable preference shares.
2003
-Members approve for the delisting of its shares from 4 stock exchanges of Jaipur,
Kolkota, Delhi and Chennai exchanges.
-The company has been conferred National Award for Excellence in Energy Management
2003 instituted by the Confederation of Indian Industry (CII) and Sohrabji Godrej Green
Business Centre.
2004
- Rajasthan Chamber of Commerce & Industries, Jaipur presents 'RCCI Excellence Award'
to Shree Cement Ltd in recognition of Overall Best Corporate Governance Practices and
Disclosures in Annual Report among all companies having registered office in Rajasthan.
2007
- Shree Cement Ltd has appointed Shri. Amitabha Ghosh as Director of the Company w.e.f.
May 14, 2007.
Bangur Nagar,Beawar,
Registered Office Ajmer,
Rajasthan-305901
Telephone 91-1462-228101-06
Fax 91-1462-228117/228119
Chairman B G Bangur
Managing Director
Company Secretary
Face Value 10
Market Lot 1
Listing Mumbai,NSE
President M K Singhi
Director G D Bangur
R N Dey
Director
V N Dhoot
Director R L Gaggar
LOCATION
MATS INSTITUTE OF MANAGMENT Page 36
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Shree Cement Unit I & II is located at Beawar, 185 Kms. from Jaipur off the Delhi-
Ahmedabad highway. Amongst the plants in the state it is nearest from its marketing centers.
Bangur Cement Unit (III,IV,V & Vi) is lacated at RAS,28 Km from Beawar in pali Dist.
Shree Cement Grinding Unit (KKGU) is located at Khush Khera Dist. Alwar Nearest to
Delhi.
Rajasthan India
Corp. Office:
21, Strand Road, Calcutta- 700001.
LOCATION MAP
CEMENT PLANT
MISSION
To sustain its reputation as the most efficient cement
manufacturer in the world.
• To drive down costs through innovative plant practices.
V ISION
HIOLOSOPHY
Rigveda.
Shree Cement Ltd is a professionally managed company. The company always believes in
complete transparency and discharge of the fiduciary responsibilities which has been
assumed by Directors as well as by the Senior Management Executives and/or Staff.
Therefore in order to ensure the continuity thereof though, not written but otherwise
ingrained, the Board of Directors has approved of the following Code of Conduct for all
Directors as well as for the Senior Management Executive and/or personnel and other
employees.
All the Directors as well as Senior Management Executive and/or Personnel owe to the
Company as well as to the shareholders :
i) "Fiduciary duty"
ii) “Duty of skill and care”
iii) “Social responsibility”
With the above objects in mind the following code of conduct has been evolved and it is
expected that all Directors as well as Senior Management Executives and/or personnel will
adhere to it.
FIDUCIARY DUTIES
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All Directors as well as Senior Management Executives and/or personnel while dealing on
behalf of the company will exercise the power conferred upon him / them and fulfill his /
their duties honestly and in the best interest of the company.
The Board from time to time shall determine the powers to be exercised by the Directors as
well as the Senior Management Executives and/or Personnel and all such powers shall be
exercised reasonably.
CONFLICT OF INTEREST
None of the Directors and/or Senior Management Executives and/or personnel will put
himself in a position where there is potential conflict of interest between personal interest and
his duty to the company. None of the Directors and/or Senior Management Executive and/or
personnel will exploit an opportunity arising while associated with the Company for his
personal gain either directly or indirectly.
SECRET PROFITS
The Director as well as Senior Management Executives and/or personnel while discharging
their duties in a fiduciary capacity is precluded from making any personal profit from an
opportunity which may arise being a Director and / or Senior Management Executive of the
Company and should always ensure that he is acting for and on behalf and for the good of the
Company.
Since all the Directors as well as Senior Management Executives and / or personnel are
acting in a fiduciary capacity and for the benefit of the company, being advocates of the
business of the Company, none of them will do anything which is in conflict with the interest
of the company.
ATTENTION TO BUSINESS
All Directors as well as Senior Management Executives and/or personnel will give proper
attention to the business of the company.
None of the Directors as well as Senior Management Executives and/or personnel while
associated or working for the company will be entitled to disclose either directly or indirectly
or make use of the confidential information which may come in their possession while acting
MATS INSTITUTE OF MANAGMENT Page 41
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on behalf of the company and shall not divulge the financial status and position of the
company to any person or persons.
INTERNAL TRADING
None of the Directors as well as Senior Management Executives and/or personnel will
directly or indirectly in the name of his family members and/or associates will indulge in any
internal trading of the company’s shares and stocks.
The Senior Management personnel and/or employees are expected to keep the Directors fully
informed about the effect of the policies adopted by the company from time to time and also
regarding the risk connected with such policies.
Senior Management personnel and/or staff who have been entrusted with specific duties for
ensuring compliance of statutory requirements including the rules and regulations shall
forthwith comply with the same and keep the Board of directors fully informed about such
compliance or non-compliance.
Senior Management personnel will from time to time provide or cause to be provided a true
and faithful account of the company’s working and effectiveness of the procedures adopted
by the company from time to time.
All Directors as well as Senior Management Executives and/or personnel are aware that
while working with the company they have a social responsibility as well and therefore from
time to time will devote such time for the upliftment of the downtrodden, poor and needy
persons in the locality.
Success Driver
PEOPLE AS PROGRESS DRIVERS
Shree believes that what is present in the minds of people is more valuable than the assets on
the shop floor. All the company’s initiatives are directed to leverage the value of this growing
asset.
TEAMWORK
CULTURE OF INNOVATION
Shree believes that what is good can be made better -across the organization.
CUSTOMER FOCUS
Shree is committed to deliver a superior quality of cement at attractively affordable prices.
SHAREHOLDER VALUE
Shree is focused on the enhancement of value through a number of strategic and business
initiatives that generate larger and a better quality of earnings.
Shree -
Milestones
2007-08 - Best Employer Award for Rajasthan for the year 2007
2007-08 -
NCCBM award for Best environmental excellence in plant operation
during 2006-07.
2007-08 - India Manufacturing Excellence award by Frost and Sullivan for the
year 2007.
2007-08 - Kush khera Grinding Unit (KKGU)-I Commenced its Production from
July 2007.
Shree -
Milestones
2006-07 - Best Corporate Governance Award (RCCI) for the year 2006.
Shree -
Milestones
Shree -
Milestones
Shree -
Milestones
2003-04 - National Award for Best Thermal Energy Performance for U-II by
NCCBM for the year 2002-03.
RAS CEMENT
PROJECT
Shree Cement Limited is setting up a new
green field Project at Village Ras, Tehsil
Jaitaran, District Pali of Rajasthan. The
capacity of the plant is 3000 Ton Per Day
of clinker production with an approximate
investment of about Rs. 300 Crores.
SWOT ANALYSIS
Strength and weaknesses are essentially internal to the organization and relate to the matter
• Sales
• Marketing
• Capacity
• Manufacturing cost etc
Opportunity and Threat are external to the organization and can exist or develop in the
following areas
STRENGTH
Company is established in Beawar where most of the land is rocky and material is
suitable for the production of cement, thus it is closely bound to the resources.
Specific chemical composition which makes it coerosion free and also have a very
good chemical recovery efficiency.
Company have its own electricity production unit thus need not to depend on the
availability of power n dependency on electricity department.
Well transport facility, it has its own railway track.
Leading brand in north India. Thus people gives preference to the brand.
Maintain a very good customer loyality and relationship.
A very superior production quality thus customer are always satisfied.
Upper level of management is too skillfull.
Weakness
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Opportunities
Changing customer taste, thus they may get the market from the switchers.
Liberalization of geographic works, thus they can enter into different market.
Huge land available for expansion of business in future.
Govt is planning for betterment on infra structure thus there will be huge demand for
cement.
Booming real estate sector.
Good relation with bankers thus for expansion of business they need not to look too
far.
Threats
Changing customer taste, any time they may switch to other.
Advancement in technology.
Entry of new player.
Few major players are situated near the main plant thus market share is difficult to
increase.
Change in govt policy as they may increase the tax.
Non availability on raw material.
Labour and higher technical personnel may switch to another plants.
Shree Ultra Cement 53 Grade BIS Specification 53 Grade Shree Ultra Cement 53-
Grade
Fineness (m2 / kg) 225 385
Soundness
3 days 27 41.3
7 days 37 54.7
28 days 53 67.6
3 days Min 23 38
7 days Min33 50
28 day Min. 43 63.5
Quality Initiatives
Shree Cement possesses one of the few R&D centres in the Indian cement industry. This
center has been recognised by the DSIR, Government of India. The research team is headed
by a highly qualified and experienced scientist. Shree's R&D center has directly contributed
in the conservation of electrical and thermal energy, an improvement in product quality, cost
reduction, mineral conservation through the intelligent use of fly ash and a waste reduction in
mines through the use of low ash coal.
• X Ray Analyzers
• Gypsum homogenization
• Roller Press Control & High Efficiency Separator for particle size distribution
Markets classification
Markets States
Primary Rajasthan
Secondary Delhi, Punjab, JK, Haryana, Western U.P. and Uttaranchal
Tertiary Gujarat, M.P. and Central U.P.
3. Business planning;
Kaplan and Norton found that companies are using Balanced Scorecards to:
• Conduct periodic strategic performance reviews to learn about and improve strategy.
• Financial Perspective;
• Customer Perspective;
The financial perspective examines the company’s implementation and execution of its
strategy is contributing to the bottom-line improvement of the company. The three stages are
rapid growth, sustain and harvest. Financial objectives and measures for the growth stage will
stem from the development and growth of the organization which will lead to increased sales
volumes, acquisition of new customers, and growth in revenues.
The customer perspective defines the value proposition that the organization will apply in
order to satisfy customers and thus generate more sales.
The internal process perspective is concerned with the processes that create and deliver the
customer value proposition. It focuses on all the activities and key processes required in order
for the company to excel at providing the value expected by the customers both productively
and efficiently. The internal process perspective are operations management (by improving
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asset utilization, supply chain management, etc), customer management (by expanding and
deepening relations), innovation (by new products and services) and regulatory & social (by
establishing good relations with the external stakeholders).
The Innovation & Learning Perspective is concerned with the jobs (human capital), the
systems (information capital), and the climate (organization capital) of the enterprise. These
three factors relate to what Kaplan and Norton claim is the infrastructure that is needed in
order to enable ambitious objectives in the other three perspectives to be achieved.
Note
The company shree cement do not follow the balance score card approach.
Current Organization
Structure
Types of Organization
Structure
Functional Division Of
Company
Critical Review
ORGANIZATION DESIGN
BOARD OF
DIRECTORS
ORGANIZATION DESIGN
Organization Design is a formal, guided process for integrating the people, information and
technology of an organization. It is used to match the form of the organization as closely as
possible to the purpose(s) the organization seeks to achieve. Through the design process,
organizations act to improve the probability that the collective efforts of members will be
successful.
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Hierarchical Systems
Western organizations have been heavily influenced by the command and control structure of
ancient military organizations, and by the turn of the century introduction of Scientific
Management. Most organizations today are designed as a bureaucracy in whom authority and
responsibility are arranged in a hierarchy. Within the hierarchy rules, policies, and procedures
are uniformly and impersonally applied to exert control over member behaviors. Activity is
organized within sub-units (bureaus, or departments) in which people perform specialized
functions such as manufacturing, sales, or accounting. People who perform similar tasks are
clustered together.
The same basic organizational form is assumed to be appropriate for any organization, be it a
government, school, business, church, or fraternity. It is familiar, predictable, and rational. It
is what comes immediately to mind when we discover that ...we really have to get organized!
As familiar and rational as the functional hierarchy may be, there are distinct disadvantages
to blindly applying the same form of organization to all purposeful groups. To understand the
problem, begin by observing that different groups wish to achieve different outcomes.
Second, observe that different groups have different members, and that each group possesses
a different culture. These differences in desired outcomes, and in people, should alert us to
the danger of assuming there is any single best way of organizing. To be complete, however,
also observe that different groups will likely choose different methods through which they
will achieve their purpose. Service groups will choose different methods than manufacturing
groups, and both will choose different methods than groups whose purpose is primarily
social. One structure cannot possibly fit all.
Organizing on Purpose
The purpose for which a group exists should be the foundation for everything its members do
— including the choice of an appropriate way to organize. The idea is to create a way of
organizing that best suits the purpose to be accomplished, regardless of the way in which
other, dissimilar groups are organized.
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Only when there are close similarities in desired outcomes, culture, and methods should the
basic form of one organization is applied to another. And even then, only with careful fine
tuning. The danger is that the patterns of activity that help one group to be successful may be
dysfunctional for another group, and actually inhibit group effectiveness. To optimize
effectiveness, the form of organization must be matched to the purpose it seeks to achieve.
Creating a strategy is planning, not organizing. To organize we must connect people with
each other in meaningful and purposeful ways. Further, we must connect people with the
information and technology necessary for them to be successful. Organization structure
defines the formal relationships among people and specifies both their roles and their
responsibilities. Administrative systems govern the organization through guidelines,
procedures and policies. Information and technology define the process (es) through which
members achieve outcomes. Each element must support each of the others and together they
must support the organization’s purpose.
Exercising Choice
Organizations are an invention of man. They are contrived social systems through which
groups seek to exert influence or achieve a stated purpose. People choose to organize when
they recognize that by acting alone they are limited in their ability to achieve. We sense that
by acting in concert we may overcome our individual limitations.
When we organize we seek to direct, or pattern, the activities of a group of people toward a
common outcome. How this pattern is designed and implemented greatly influences
effectiveness. Patterns of activity that are complementary and interdependent are more likely
to result in the achievement of intended outcomes. In contrast, activity patterns that are
unrelated and independent are more likely to produce unpredictable and often unintended
results.
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The process of organization design matches people, information, and technology to the
purpose, vision, and strategy of the organization. Structure is designed to enhance
communication and information flow among people. Systems are designed to encourage
individual responsibility and decision making. Technology is used to enhance human
capabilities to accomplish meaningful work. The end product is an integrated system of
people and resources, tailored to the specific direction of the organization.
1. Functional structures
Early organizational design divided enterprises into relatively simple parts, splitting them
into defined activities such as production, marketing or personnel. Functional organizations
have the advantage of being simple to understand with clear lines of command, specified
tasks and responsibilities. Staff can specialize in a particular business area such as production
or marketing and follow well-defined career paths. This is equally true of human resource
specialists who can develop expertise in specific areas such as employee relations or reward
management.
There are also major disadvantages to functional structures. People managers have to tread
carefully because this form of organization is prone to interdepartmental conflict, often
degenerating into 'them and us' tribal warfare. Coherence and good communication are
particularly hard to achieve between virtually independent functions.
2. Divisional organizations
Split into self-contained units, able to react to environmental changes as quickly as small
companies, they are also described as multidivisional or 'M-form' organizations. Divisions
encourage team spirit and identification with a product or region. Managers can develop
broad skills as they have control of all basic functions. Each division is likely to have a
devolved human resource function. But there is a risk of duplicating activities between head
office and divisional human resource departments and of conflict between staff in successful
and unsuccessful divisions. The divisional function may play a coordinating role, reconciling
decisions taken at the corporate and business unit levels. This results in a complex picture of
people management.
3. Federations
One variant of the divisional form which has a particular relevance because of its human
resource implications is the 'federation', a loosely connected arrangement of businesses with a
single holding company or separate firms in alliance. This form of organization has attracted
criticism from stock market analysts who find difficulty in comprehending its subtle
informality.
4. Matrix organizations
Matrix forms of management can be regarded (arguably) as an early form of 'network'
structure. They focus on project teams, bringing skilled individuals together from different
parts of the organization. Individuals were made responsible both to their line manager and
the project manager involved. Before the advent of network technology, many matrix
organizations were dogged by duplication and confusion: the 'matrix muddle'.
FUNCTIONAL DIVISION
MARKETING FIANANCE
TECHNICAL HR
COMMERCIAL OPERATION
CRITICAL REVIEW
The most common complaints by the users have been:
1) Lack of Advertisement:-
There is no brand visibility of Bangur cement as a company. Advertisement ultra tech can be
seen overall on Rajasthan at public places but hardly any advertisement on Bangur Cement.
Thus we can say that marketing department is not working at its level best.
2) Less Wall-painting:-
Many sub dealers have not got any shop paintings. While carrying the survey it was
sometime difficult to locate the dealer’s shop which shows that the company need to increase
the promotion to make its presence felt.
5) Low margins:-
As compared to the others brands Bangur provide very low margins, so dealers are less
interested in the bangur cement.
6) Quality of bags:-
It was often found during the survey that the quality of bags were inferior due to which the
dealers faces problem while handling.
7) Delivery problem:-
Company should appoint people who ensure that the dealer & builders will get their product
as per the same shown to them and in pre decided time because they complained of delivery
problem and sample not matching.
Marketing Function
HR Function
Operation & Quality Funtion
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Finance Function
ERP
Logistics
The advent of globalization has brought marketing to the forefront of all the business
activities. Increased competition has resulted in a customer driven market with ever rising
consumer expectations. At SHREE, marketing is not merely identified innovative measures
to sell its products, but to proactively gauge their changing needs and produce accordingly.
Indian cement industry clocked an impressive growth of 9.8% during FY 07-08. As against it
, SHREE registered a growth of 31% in sales volume. Net sales value showed rise of
51%.
Market share
Shree’s strategy of quality advertising combined with active field marketing helped it
increase its market share in north India. Company maintained its leadership position in the
key market of Rajasthan, Delhi & Haryana. Company increased its market share in North
India to 16.4% against 13.9% of last year.
Our focus on increasing marketing share in areas which are closer to their plants offer them
the advantage of low radius. The strategy benefited them in significantly increasing their
market share in the nearer markets of Rajasthan and Haryana. Going forward they aim to
further consolidate and increase our presence to attain the leadership mantle in the entire
North Indian market.
Shree’ s strategy of multiple competing brands paid rich dividends in term of achieving
deeper market penetration, distinct customer segment, improved brand equity and overall
increase market share in North India. Shree was able to acquire newer market and extend its
domination to the existing market. Increased growth indicates Shree’ s superior preparedness
to tap the emerging business opportunity.
The sales force was suitably assisted by quality advertising and sales promotions activities.
TV commercials, hoardings as well as print media were used to create and brand awareness.
Total advertising spending was increased by 29%.Company’s multiple efforts towards
marketing excellence have resulted in the trade sales increase from 35.72 lac tons to 41.13lac
tons- an increase of 15% over the previous year.
Institutional sales
The institutional sales segment witnessed increased demand due to heightened activities in
infrastuctureand commercial real estate such as multiplexes, malls, IT office space etc.
Considering the high demand potential of this segment, they stepped up their efforts to
increase sales, to institutional customer. The results were encouraging as the institutional
sales witnessed a massive 76% rise during the year. They were able to acquire quality
conscious and prestigious customer.
Empowering People
At SHREE they consider their people as their greatest assets. They drive growth and achieve
long term sustainability of their business. Their culture fosters differential thinking,
empowering people by investing in their professional growth. The company strives to be
recognize as the best place for the best people to do the best work.
Promoting Progress
SHREE cement was awarded the best employer award for 2007 by the employer’s
association of Rajasthan. Shree prides itself in promoting progress by creating and
maintaining a work environment which is conducive to both professional and personal
growth. The exceptional performance of people manifest itself in the overall performance of
the company and growing outlay for human resources.
Talent Management
SHREE believes the right mix of talent is the key to rip the benefit and avail of the business
opportunities presented by current pace of globalization. SHREE has an excellent
combination of professional competencies in its workforce be in managerial and technical.
Encouraging Innovation
At SHREE, spirit of innovation permeats through every rung of employees. Company
encourages original thoughts which translates into action that yield benefit. A unique scheme
“JO SOCHE WO PAVE” has been running for past many years to encourage the employees
to suggest innovative ideas towards cost reduction, process improvement, energy &
environment conservation. Good ideas are recognized and rewarded at company gathering.
PEOPLE
• The company incentivised ownership through the ‘Jo soche woh paave’ scheme.
• The company trained and multi-skilled so that members could deepen and extend
their competencies across the house keeping, maintenance, risk management, team
building and environment, health and safety functions.
The management believes in the self-actualisation of its employees by injecting the concept
of Human resource Development in all its policies and strategies. By recognition and reward
the employees are motivated to give their best in the interests of the organization in particular
and for the society in general. So many schemes of recognition and rewards are given to
boost the morale and motivate the employees.
For example a scrapper chain of reclaimer II is to be replaced which takes 80 hours. The team
completed this task in minimum possible time with the result that the reclaimer was put into
operation in just 36.5 hours. The team was rewarded with a cash amount of Rs. 11,000/- and
certificate of honour.
Reason: The company faced a problem of surplus workers. Other organizations would have
resorted to retrenching and laying off, but this is not Shree's philosophy. Shree optimally
utilized its surplus strength by developing worker skills in other technical process. This
helped the company build in a redundancy factor wherein at any given point there was always
a skilled set of people for any function. The company reduced overtime through efficient
manpower utilisation, organised smooth functioning of the production cycle, increased job
security leading to a greater sense of belonging and strengthened industrial relations. As a
result the company did not lose a single day's work due to strikes or lockouts.Employees
were deputed for Multiskill training of fitter trade in different Industrial Training Centers.
Following the success of multi-skilling with workers, the company introduced this concept
with staff members. The objective was to enhance competencies and to enable managers
understand how an initiative taken by their department could affect the productivity and
performance of another department. This broadened the outlook of staff members, making
them think like business managers.
ASCENT PROGRAMME
Small groups have been formulated in order to institutionalize the process of learning, self-
development as well as bringing continuity and inculcating the process of brain storming for
self and organizations development.
Manpower productivity
Labour cost
Year 99-00 00-01 01-02 02-03
HR training
Qualification %
MBA 5.67
CA/CS/ICWA 2.91
ME/MBBS/MSW 0.58
Graduates 31.25
ITI 9.30
Inter/SSE 7.85
Capacity Utilization
In response to a galloping cement demand, Shree has been driving up capacity utilizations
across all its units. In line with its impeccable record of over 100% utilization rate since
inception, company registered an impressive operating rate of 116%. All the more
commendable when compared to the average pan-India operating rate of 94%. Even the
newly started Unit-III recorded 99.3% capacity utilization in its first full year of operations
itself.
Kiln production
HiTech Mining
Limestone is the principal raw material in the cement production. The company is committed
to conserve this natural mineral resources to ensure sustainability for long term operations.
Company has been consistently deploying latest technology newer methods of mining.
Company also deployed imported Hi-Tech blast-hole drill machines for improving its
efficiency in its drilling activites.
Manufacturing Practices
Their cement and clinker production exhibit a steady increase over last two years. Cement
production increased 32% to 6.3 million tonnes in FY 07-08. They pursue manufacturing
practices which compare well with world cement industry. They have been awarded highest
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rating for the 7th consecutive year by White Hoplema, UK. With continual capacity
expansion, they have gained expertise and knowledge to quickly put new units into stabilized
output mode.
Product Mix
Production of Pozzolona Portland cement (PPC) is both value assertive and eco-friendly. At SHREE
their production of PPC is increasing over the last many years, mirroring industry demand.
Power Consumption
SHREE cement strives to reduce power consumption. It regularly invest in adoption of new
technology and practices for reducing its usage of power. Its unstalled and replaced a range
of energy efficient equipments in the year such as high efficiency fan and motors, VFD etc. it
continually looks at the ways to reduce the idle running of equipment. More finer grinding of
cement lead to more power consumption. The additional cost well recovered through better
price realization.
Quality Philosophy
Quality Assurance
• Shree markets cement with certificates that testify to the high production standards
achieved by the company.
• The company's technical officers reach the customer's site to inspect the performance
of the material.
• Shree conducts special meetings with masons and architects, impressing upon them
the quality of its product.
Quality Initiatives
Shree Cement possesses one of the few R&D centres in the Indian cement industry. This
center has been recognised by the DSIR, Government of India. The research team is headed
by a highly qualified and experienced scientist. Shree's R&D center has directly contributed
in the conservation of electrical and thermal energy, an improvement in product quality, cost
reduction, mineral conservation through the intelligent use of fly ash and a waste reduction in
mines through the use of low ash coal.
• X Ray Analyzers
• Gypsum homogenization
• Roller Press Control & High Efficiency Separator for particle size distribution
FINANCE DEPARTMENT
The account department is involved in monitoring the functions of other department thus
ensuring that the unit is functioning as per plan though with minor deviation.
○ MIS related activities such as generation of MIS and review meetings from
corrective actions.
Planning and budgeting activities are done once a year and budgets so formed are reviewed
quarterly. Quarterly revisions or estimates are essential to transform the yearly data contained
in the budget to operational data pertaining to the immediate quarter incorporating there in
any factors that might have escaped notice during the budget preparation due to the any
reason. Deviations from the budgets are reported in the MIS (CVA is calculated annually for
assessing the performance of the unit in cash terms. Delta C.V.A gives the idea of the cash
value additions done during a year.
Separate cash affiliated to the accounts department does bill passing activity. The payment of
the bill is done in the accounts department. MIS generated from accounts department
contains details of the functioning of all the departments in the line of the consumption
patterns of all the products as well as the by – products etc.
If there are any deviations from the budget or the quarterly estimates that are serious in
natural then there deviations are discussed in the monthly review meetings.
performance has posted a good performance with all round improvement production, sales
and in profitability. A strong demand for celluloic fibre coupled with the company’ strategy
on specilty fibres has driven the performance. The above table gives the details of
performance .
Time office:
The main function of this department id to maintain the records such as Attendance ,Leave
and Pay role. They also maintain records of the management, such as the Employee State
Insurance (ESI) Provident Fund (PF), Attendance of each employee is maintained by issuing
the SWAP cards to the individuals. The time office workers depending on the rules of the
government body.
There are 4 major shifts for the workers to work at different time intervals.
Shifts Timings
General 8.30 AM to 5.30 PM
‘A’ Shift 7.00 AM to 3.00 PM
‘B’ Shift 3.00 PM to 11.00 PM
As on date 155 crore Rs from fund basis limit and 60 crore loan fund basis in which 40 crore
is letter of credit and 20 crore is bank guarantee.
Out of 155 crore, 36% is secure from state bank of Bikaner and jaipur.
Working capital demand loan is 90% and cash credit is 10% for which they pay high interest.
Allocation of funds
FMP= 70%
FD= 20%
Liquid funds= 5%
Debt fund= 5%
KEY PEOPLE
Mr. ASHOK BHANDARI ( CFO- KOLKATA )
BANKERS
SBBJ, SBI, ICICI, IDBI, AXIS,PNB,STANDARD & CHARTED, HSBC, CITI BANK
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ADVERTISING CONSULTANT
SHRI ALYQUE PADAMSEE
FOR THE QUARTER AND SIX MONTHS ENDED ON 30TH SEPTEMBER, 2008
Rs. in Lac
2 Expenditure
8 Exceptional items
- Assets Constructed 970.08 - 1,728.2 - 3,888.4
at Others' Premises 4 6
W/Off
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9 Profit from Ordinary 28,789 30,826 36,830
Activities before tax 13,627 15,303 .62 .41 .92
(7+8) .71 .60
10 Tax expense
- Current and Fringe 3,048.9 4,466.7 7,225.7 8,298.2 12,265.
Benefit Tax 1 4 0 3 32
- Deferred Tax (170.4 213.51 (275.3 213.51 (1,471.
7) 5) 60)
11 Net Profit from 10,749 10,623 21,839 22,314 26,037
Ordinary Activities .27 .35 .27 .67 .20
after tax (9-10)
17 Public shareholding
- Number of Shares 1,26,39 1,26,39 1,26,39 1,26,39 1,26,39
,468 ,418 ,468 ,418 ,468
- Percentage of 36.28% 36.28% 36.28% 36.28% 36.28%
shareholding
Cement Production in 17.36 14.52 34.98 28.52 63.37
lac ton
3358.6 4535.4
5 2
While the idea is easy to grasp in theory, the reality has been different. Most companies have
a conglomeration of different systems and procedures (as well as hardware and software)
designed 'specifically' for their own needs. Employee records (including payroll, medical and
other benefits) are held by Human Resources. Financial data and processing, which includes
payroll computations and employee compensation as well as invoicing and billing for
company products and services, are held by the Finance Department. Production data is held
by manufacturing. Inventories are held by warehousing. Customer orders are held by
Customer Relations, and so on.
The 'dream' of ERP is to have a single software solution integrating the different functions
and activities into a seamless whole where information needed for decision-making is shared
across departments, and the action taken by one department results in the appropriate follow-
up action up and down the line.
The most often-cited example of an ERP software is customer ordering and delivery where a
customer's order moves smoothly from Sales, where the 'deal' is consummated, to Inventory
and Warehousing, which retrieves and packages the order for delivery, to Finance, where
invoicing, billing and payments are handled, and on to Manufacturing, where replacement of
the bought-and-paid-for product is done.
Primary Benefit
Prior to ERP, each department may be considered an independent fiefdom. Once a
department's particular function is completed, it no longer cares for what happens afterwards.
A customer following up with Sales for his product will be told, "Check with Warehouse",
who will then say, "Check with Delivery", who can tell the customer, "Please check with
Finance to see if your invoice has been cleared".
Efforts to integrate the system before always met with the stumbling block of different
software and procedures. A sales person could not access the finance database to find out the
customer's billing status, nor can he easily access the warehouse, inventory or delivery to find
out the status of the customer's order.
With ERP, all elements in the supply and production chain can be easily accessed by all those
who need the information. This leads to efficiency in customer management and perceived
company effectiveness in delivering on customer expectations.
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Other Advantages
An oft-overlooked advantage in having a workable and efficient ERP system in place is
savings in relation to energy consumption and data management.
Having an ERP system in place implies having a single hardware system to handle the
different requirements, translating into reduced power consumption operating off a single
database which translates into savings on storage.
The savings generated from a minimum of hardware and storage, coupled with operational
efficiencies created from a single system across all departments, translates into measurable
profit for the company.
Logistic management
In a material business such a cement,efficient logistic management is the key of
higher profitability.when million of tons of low absolute unit cost input and
output have to be handle,every penny counts.on an average shree handles
approximately 43000 tons of material in a day across 3 location.
Shree witnessed a significant price in logistic cost per ton from rs.324 in the
previous year to rs. 484 in the current year.while a part of this was due to
increase in fuel cost a majority of this rise isw due to change in pattern of sales.
Challenges
2.the commissioning of the graining unit is almost 6000 tons of clinker had be
transopted from Ras on a daily basis. A dealy could mean are shut down at
plants as it operated on just in time inventory system .
3 the increase in fuel prices meant that per tone transportation costs would be
significantly impacted as company’s new capacity came up at RAS from where
rail transport was not possible.
organization study I come to know that academic learning is different and working in
organization and learning is different. After spending such precious time in an organization
my major finding in that particular organization are as follows:
• Firstly, organization culture of Shree Cement is formal, where every person cannot
directly meet to High authority with out any systematic way which I considered was
good because it encourages employees at work.
• Secondly, organization structure of Shree Cement is well formatted in which each and
every department plays important role.
• Thirdly, in the organisation structure is divided into to 4 part one is in Finance,
Marketing, Operation & Quality, Human and Resources These all departments are
headed by different persons but at the same time they work for same objective with
full co-ordination which shows the unity level about the organisation.
• Fourthly, all the employees and labourers work very hard towards achieving the goal.
Even the higher authorities work very hard without wasting time towards the
organization goal
• Fifthly, security concern in shasun chemicals. doesn’t allow the outsiders to enter into
the factory without prior appointment or consulting the higher authorities. They have
a very effective security system.
• Sixthly, Administrative head role in an organisation very important to make good
working environment the practice which I observed was that he was very hard
working person and he does his work very efficiently.
• Seventhly, marketing department made me to learn about, how the customers can be
attracted by giving him innovative thoughts and ideas and benefiting to both the
organization and the common people.
• Eighthly, an organisation study also makes me learn that any objective cannot achieve
with a short span of time it has to be done through systematic ways.
• Finally, in any organisation time management play important role because each
activity should be done at a right time at right place.
BIBLIOGRAPHY
• www.shreecement.com
• www.google.com