Ambuja cement project report

An

Industrial Training Report

On

AMBUJA CEMENT LIMITED

(KODINAR)

Submitted By

Meghna V. Vadariya

S.Y.B.B.A. (A)

Roll No. 56

Guided By

Prof. Anish Durvesh

Submitted To

Saurashtra University

Rajkot

Shri Patel Kelvani Mandal College of

Technology

College Road, Junagadh.

Academic year

2015-2016

PREFACE

Now a day in modern business there is requirement of high skill. And skill is

refaced to the practical as well as theoretical knowledge and to improve skill

both are important at high rate in the business. And in S.Y.B.B.A I get the chance

to improve my skill on the way of study.

I am really thankful to “Saurashtra University” because they included one

of the different subjects with the other six subjects. And the subject is

“FIELDPROJECT IN BUSINESS” as per the Bhavnagar university in S.Y.B.B.A the

student have to collect the information, and understand process of three

department like finance department, human resource depart department,

marketing department, production process and get a training after choosing a

one company. So, as a student I select “Gujarat Ambuja Cement Ltd.” which is

situated at Kodinar.

I tried maximum as my level to collect information of all the department of

the company "GUJARAT AMBUJA CEMENT LTD". Like finance department,

human resource depart department, marketing department and production

process. And after complete this project I really understand the field work is

really very important in the business as well as in study to improve our skill.

During the project time I give maximum attention to understand function of

management.

- Meghna V. Vadariya

ACKNOWLEDGEMENT

I am really heartly thankful to our management of P.K.M. College because

without their guidance I cannot able to complete and submit my project

within the time period. I am also especially thankful to Director Dr. Praful

Kanjiya, and Anish sir who provide very nice guidance to full fill my project.

And as my duty I cannot forget my duty to thankful to “GUJARAT AMBUJA

CEMENT LTD” company which is situated at Kodinar, who provide me better

& latest information about all the department and process of all departments.

I am also thankful to branch of Bhavnagar, approved by Ambuja cement Ltd.

Because it is the link between us and “GUJARAT AMBUJA CEMENT LTD” .and

it really works as a chain between us and “GUJARAT AMBUJA CEMENT LTD”.

- Meghna V. Vadariya

DECLARATION

I, undersigned, Meghna V. Vadariya the student of S.Y.B.B.A., Shri P.K.M.

College of Technology & B.Ed., Here by declared that this Project Report is my

own work and it has been carried out under the guidance of Prof. Anish Durvesh.

This report has not been submitted to any other University for examination.

Place:-Junagadh

Date:- 26th March 2016

Meghna V. Vadariya.

INDEX

SR

NO. CONTENTS

PAGE

NO.

1 General Information

2 Financial Department

3 Production Department

4 Marketing Department

5 Human Resource Department

6 Awards and Achievements

7 Future Plans

8 Suggestions

9 Conclusion

10 Bibliography

INTRODUCTION OF COMPANY

AMBUJA CEMENTS LTD.

Their people practice a simple philosophy.

“Give a man orders & he’ll

Do the task reasonably well

But let him set his own targets,

Give him freedom & authority,

And his task becomes

A personal mission:”I CAN”.

Ambuja Cement Limited is India’s one of the major Company in the

cement industry. Its first plant “Ambuja Cement” was begun in 1986 & is located

near the coastal town of Kodinar in the Saurashtra region of Gujarat. The area has

huge deposits of limestone, a key of ingredient in the manufacturing of high

quality of cement.

The plant with an installed capacity of 0.7MTPA (million tons per year)

was a huge success with some equipment changing and optimizing the existing

plant company had produced 1MTPA from the plant. Then another plant “Gujarat

Line-1” again with an installed capacity of 1MTPA was erected in the same area

and commissioned in 1992. Then a new unit “Gujarat Line-2” with an installed

capacity of 1 MTPA was erected in the same area and commissioned in 1996.

Then through continues improvement Ambuja unit and Gajambuja line -1 have

upgraded by 0.5 MTPA each. In addition to these plants Ambuja Cement Ltd. has

packing units at Surat (Gujarat) and Panvel (Maharashtra). Loose cement is

dispatched to these locations by sea-route.

Ambuja has large port facility at Muldwarka, near Kodinar. Ambuja

Cement Ltd. has seven ships to carry the bulk cement to the packing units. This

has brought substantial saving by bringing down the transportation costs, which

plays a major role in deciding prices. Bulk cement is also exported to Srilanka,

the island Mauritius and gulf Country. Ambuja Cement Ltd. has captive power

plant comprising of 58bmw DG sets and is self-sufficient.

HISTORY & DEVELPOMENT

In India, manufacturing of cement was first started in Madras in 1904.First

three companies were started in 1912-1913 and real beginning was started. When

the plans started there were 21 factories with an annual capacity of 328 million

tons. After 1949 the cement industry had a complete interference of govt. the

production, distribution and price of cement and this hampered the growth of

industry. It was only in 1977 that govt. announces 12% post tax return on net

worth, which was fair enough, and retention price would be fixed to ensure it.

The rapid growth of the Indian economy has developed the basic industries

like cement, iron and steel and fertilizers have prospered. This is also a result of

the govt.’s incentives of developing such industries. At the time of the installation

of this plant, there was not any cutthroat competition in the cement industry.

Thus, the above mentioned are the main reason, which encouraged this

organization to enter into the cement industry. The Ambuja Cement Ltd. is a

company, which has been promoted by the Gujarat Industrial And Investment

Corporation Ltd.

The company started its commercial production in October in 1986. Later

the company in order to expand its production setup and another plant in Kodinar

itself called Gajambuja Line-1 in 1992 followed by the third one Gajambuja Line-

2 in 1998 making the total production to reach approximately three million tons

per annum marks.

COMPANY PROFILE

Name Ambuja Cement Ltd.

Address QATER No :F 219,

HDFC ATM,

Ambuja Nagar,

Kodinar – 362715,

Gujarat, India.

Contact No. (02795) 237829/ 30/ 31/ 32

E-mail [email protected]

Fax No. (02795) 232163

Chief Promoter Mr. Narotam Sekhsaria

Mr. Suresh Neotia

Size of Unit Large Scale Unit

Form of Organization Private Limited Company

Bankers State Bank of India

Bank of Baroda

Dena Bank

Year of Establishment September, 1986

Main Products Cement

Brand Name Ambuja Cement

Market International Market

Slogan Giant Compressive Strength

PRESENT MANAGING BODY

Mr. Suresh Neotia : Chairman Emeritus

Mr. N. S.Sekhsaria : Chairman

Mr. Paul Haribhakti : Vice Chairman

Mr. Ajay Kapur : Managing Director & CEO

Mr. Onne van der Weijde : Managing Director

Mr. SanjeevChuriwala : Chief Financial Officer

Mr. Rajiv Gandhi : Company Secretary

Mr. Bernard Terver : Director

Mr. Bernard Fontana :Director

Mr. Rajendra P Chitale :Director

Mr. Nasser Munjee : Director

Mr. OmkarGoswami : Director

Mr. B. L. Taparia : Director

Mr. ShaileshHaribhakti : Director

Mr. HaigreveKhaitan : Director

SIZE OF THE UNIT

Size of industry is decided on the capital investment of unit is fixed

assets. The size of industry is classified in four type and they are as under.

(1) Small Scale Industry

(2) Medium Scale Industry

(3) Large Scale Industry

1. Small Scale Industry:

The investment of an industry in its fixed assets does not exceed Rs. 3

crores are known as small scale industry.

2. Medium Scale Industry:

The investment of an industry in its fixed asset is more than Rs. 3 crores

but not exceed Rs. 5 crores are known as medium scale industry.

3. Large Scale Industry:

The investment of any industry in its fixed assets is more than Rs. 5 crores

are known as large scale industry. “Ambuja Cement Ltd.” is large scale

industry. Its total capital is Rs. 86crores investment in plant and machinery.

FORM OF ORGANIZATION

Whether, a particular type of organization will be suitable to a particular

type of business or not is largely dependent upon different factors e.g. nature of

business, motive and incentives, finance requirement, scale of operation etc.

A comparative idea for different forms of business organization is given

below:

Sole proprietorship

Partnership

Joint Hindu Family Business

Co-operatives

Joint Stock Company

Public Enterprise

Private Enterprise

The name of the unit in which I prepared report on Ambuja

Cement Ltd. The name Ambuja Cement Ltd. itself suggest Ambuja

is a Public Company. Ambuja Cement Ltd. is public company

having common scale and liability.

ORAGANIZATION STRUCTURE

General organization chart is a blue print of company organization.

Anybody understands a position of employees. General organization structure

process is very important and hard process.

We can understand an authority and responsibility of officers and

employees. And also general structure showed a relationship between officer to

officer, employees to employees. And also shown a group activity, so best

structure means a best result.

According to my observation, authority is in the hand of top level

management and responsibility rests with medium and low level management.

ORGANIZATION CHART:

FACTOR AFFECTING LOCATION

Location of unit is most important factor for to be consideration for

successful working of any organization. It also plays vital role in the development

of the unit. The total cost of manufacturing cost of any business unit is higher due

to the wrong selection of location of their business. The main object of an

industrial concern is to maximum profit through minimum of production cost.

Ambuja Cement Ltd. is situated near Vadnagar village in Kodinar. The

location of the plant is very beneficial for its existences as the area is surrounded

by limestone, which is one of the basic raw materials in cement production.

Company is also benefited as the area of the plant site is near the sea coast which

facilitates the transportation through sea route. Ambuja has also developed its

own seaport for transporting cement to other destinations. This has helped

Ambuja Cement Ltd. to export their product easily through seaport directly

increasing the export of their goods.

Location factors are very much important in establishing a cement plant.

1. Input

In terms of input, about 1.5 tons of limestone is required to produce one

ton of cement. Hence location of the plant is based on the limestone

deposit. The major cash out flow come by way of royalty and cash

payments. India’s estimated total reserve of cement grinding stone is about

90 billon tons.

2. Power

It is used in raw material grinding. Clinkerization of lime stone is done in

the kiln operation and then clinker is grinding with gypsum to form

cement. The older plant required 120 to 130 units per ton of cement

produced, while modern energy efficient plants consume 80 to 90 units

per ton. Cement manufacturing is continuous process, so quality of power

plants is important.

3. Coal

Coal is another major input, which along with electricity forms 40% of

total cost. There is a several coal shortage for the industry. The coal is

generally imported from certain African countries, which are unloaded at

companies’ Muldwarka port that is near to the factory site.

4. Labor

On growing modernization of plants, the requirement for skilled man

power has increased then that of unskilled man power. The cheap

availability of labor from the nearby areas has proved to be great help for

the company.

5. Transportation

It is a very important thing to be kept in mind while deciding the location.

It cost widely affects the overall cost. The seacoast is one of the important

transportation modes for exporting companies. The company has its own

jetty at Muldwarka. This reduces cost of transportation for the company.

CONTRIBUTION OF UNIT TO THE INDUSTRY

Ambuja Cement as a large scale manufacturing unit contributes to the unit,

contribution to the country, contribution to the society and government it many

ways.

Ambuja Cement is the most profitable cement company in India, and one

of the lowest cost procedures of cement in the world. Ambuja Cement can now

join hands with a distinguished organization that has been a fountainhead of ideas

and talent for the cement industry.

Ambuja cement foundation has made to improve the quality of life in

communities across the country. Ambuja cement foundation is give contribution

to water resource management, skill development training, agriculture, health and

education.

Its profited ring played an important role in the economic growth. Ambuja

Cement is helping it India as well as other countries also

Introduction

“Money is the life blood of business”

Money is one type of factor of production which is known as capital. It is

sure that the money is required for starting of the business, expansion, for

development of new unit, and liquidation of the business.

Thus the money is required the starting of business to liquidation of

business of the business. The money is work as lubricant oil in the business. So,

without money the business cannot even start. So the company has to attention on

how they get money, how they utilize the money, how they invest it to get

maximum interest……this all the thing is known as financial management.

FINANCE means procurement of fund and maximum utilization of fund

which available in the business. So, it is required to control on the money and it

known as financial management.

Financial management is a planning, efficient allocation of funds and

control on the money. Financial information is required for:

1. Share holder

2. Creditors

Looking to the importance of financial management G.A.C.L. has

established a separate financial department which is made financial budget for all

over the company and solves the problem of finance in the company.

ORGANIZATION OF FINANCE

DEPARTMENT

In Gujarat Ambuja Cement Ltd., the finance & account department is

headed by the Vice President (Finance). Under him there are 2 group of executive

and its chart is as……….

In G.A.C.L all the authority is establish to the vice president of finance and

he has to maximum utilization of fund.

BANKERS

The G.A.C.L is gating finance or banking facility by……………

Bank of India

Dena Bank

Bank of Baroda

Punjab national Bank

ANZ Grind lays Bank

CAPITALIZATION

Capitalization means total funds required for doing business, funds like

equity fund, borrow fund, fixed asset, current asset etc…as per financial point of

view capitalization is required for earning fair rate of return on the investment. In

other word, the Capitalization refers to the decision regarding the total

requirements of long term funds.

Types of capitalization:

There are three type of capitalization

(1). OVER CAPITALIZATION.

It Means the real value of share is reduced then the book value of the asset.

It occurs when the real value of the assets is less than the long term funds of

company.

(2). UNDER CAPITALIZATION

It Menace real value of share is higher than book value of the assets. It

occurs when the real value of the assets are more than the long term funds of

company.

(3). FAIR CAPITALIZATION

It menace real value of share & book value asset is equalize each other.

CAPITAL STRUCTURE

The G.A.C.L is public limited company so the company has issued the

equity share capital which is known as long term capital. To handle capital

structure is very difficult task. Capital structure of the company involves many

functions like borrowed capital, owner's capital, share capital. Borrowed capital

means the capital borrowed from the out spiders. It may be another company,

some banks or from some industries share capital means capital gain from funds

and shares. The capital structure of GUJARAT AMBUJA CEMENT LTD. Is

as….

MANAGEMENT OF FIXED ASSETS

Generally there are two types of assets:

(1). Fixed Assets:-

The fixed asset are those asset which gives long time benefit in the

business like plant, machinery, equipment, building etc. The investment in fixed

asset of G.A.C.L. is RS. 3469.89(in cores). The design of plant is derived from

the Germany; it was the latest cement plant in Asia.

(2). Current Assets:-

The current assets are such asset which gives short time benefit and which

are use day to day in business. Like inventories, cash and bank, loan and advance.

MANAGEMENT OF WORKING CAPITAL

Working capital means short time assets and liabilities. To done the

continuous routine activity we need some working capital so, in simple word

working capital is nothing but analysis of Current Assets & Current Liability.

There are mainly two concepts of working capital.

(1) Gross Working Capital

(2) Net Working Capital

Gross working capital is the capital investment in the term current assets

i.e. cash, short term securities, debtors, bills receivable and stocks etc.

Net working capital is the difference between current assets and current

liabilities. Working capital management mainly on three bases……..

(1) Management of inventory.

(Value of raw material, working process, finished goods and scrape)

(2) Management of receivables.

(3) Management of Cash & Bank.

FINANCIAL RATIO ANALYSIS

Financial ratio is one of the most important tools to analysis and criticizes

the account prepared by the business. A financial ratio means relation between

two or more related item of financial statements known as ratio. The ratio may be

in proportion or in percentage (%).because of ratio analysis the company can

make future estimation and take step for future.

RATIO ANALYSIS

There are three branches of accounting:

(1) Financial Accounting.

(2) Cost Accounting.

(3) Management Accounting.

In Management Accounting Manager has to prepare various

statements. Manager has to do some analysis & interpretation of various

data. Through this analysis manager has to evaluate past information, current

position and predict future position. So, this purpose he has to do analysis of

various financial situations.

Ratio Analysis

[For year 2006-07 only]

(1) NET PROFIT RATIO :-

= Net Profit (PAT)*100

Sales

Net Profit (PAT) = 1769.10

Sales = 5705

= 1769.10*100

5705

= 31.10 %

This ratio gives the information about actual margin of profit realized from

routing activity. Generally standard margin is 10% to 15%. But t is 31.10 % so,

company has good profitability.

(2) Current ratio :

= Current Assets

Current Liability

Current Assets: - Inventories, sundry debtors, Cash and Bank Balances, other

current assets, loans and advances.

Current liability: Liabilities, Provisions.

= 1587.33

1169.09

= 1.36:1

This ratio gives the actual information about the liquid position of the

company. Standard margin of this is 2:1. Here, it is actually 1.36:1 which near the

standard margin so, presenting good liquidity of the company.

(3) Liquid ratio

= Liquid Assets

Liquid Liability

Liquid Assets = Current Assets – Stock

Liquid Assets = 1587.33 – 317.00

Liquid Liability = Current Liability – Bank Over Draft

= 395.75 – Nil

= 395.75

=1267.33

1169.09

=1.08: 1

This ratio gives the information above actual liquidity of the company.

Standard margin of this is 1: 1 and here, it is1.08: 1so company has good liquid

position.

LEVERAGE ANALYSIS

The term LEVERAGE may be defined as the employment of assets or

sources of funds for which the firm's pay fix cost or fix return.

TYPES OF LEVERAGES

1. Financial Leverage

2. Operating Leverage

3. Composite Leverage

INTRODUCTION

Production is the process where raw materials are converted into finished

goods. All the process is differ to each product.

Production means creation of utilities and covers all the activities of

procurement, allocation and utilization of resource such as energy material etc.

COMPANY PRODUCT & MANUFACTURING

PROCESS

Company Product:

Ambuja Cement produces many type of cement like as:

Rapid Haudening cement

Sulphate Resistance

Cement

OPC=43 Grade

OPC=33 Grade

OPC=53 Grade

Masonry

PPC

Manufacturing Process:

Manufacturing means to make semi-finished goods into finished goods and

manufacturing process summation of all the steps making semi-finished goods

into finished goods.

Every manufacturing firm should have sound manufacturing process to

manufacture goods without sound. Manufacturing process, manufacturing cost

will be directly reflect in the profit if the organization.

The basic raw material required to produce cement are as follows:

1. LIMESTONE

2. RED CLAY

3. GYPSUM

4. COAL

5. FLY ASH

6. SILICA s

According to the mode of preparing the raw mix three different processes

can manufacture cement:

A. Wet Process

B. Semidry Process

C. Dry Process

MANUFACTURING PROCESS CHART:

MINING AND CRUSHING LIMESTONE

CRUSHING OF GYPSUM AND

COAL

MAKE A CLINKER

STORAGE OF CLINKER

DRYING OF CLINKER

STORAGE OF DRY CLINKER

CRUSHING THE CLINKER AND ADDED THE CHEMICAL

PACKING

1. MINING & CRUSHING OF LIMESTONE:

Limestone is the basic raw material to produce cement. It is mainly obtain

from the open cost mining. The limestone is hauled through dumpers up to the 70

to 75 mm size. The crushing of limestone is done through hopper crushed

material passed on the conveyor belt in which the addictive material is added to

the material.

2. CRUSHING OF GYPSUM & COAL:

The second stage of cement manufacturing is to crush the gypsum & coal

by griddling machine.

3. MAKE A CINKER:

Clinker is a precondition to make cement. So to make cement of clinker is

needed. So, to make a clinker all crushed material like limestone, gypsum & coal

water with the help of elevator.

4. STORAGE OF CLINKER:

After a making of clinker it storage in a one place. It’s called silo. As per

the requirements clinker is send at required place weighing bin.

5. DRYING OF CLINKER:

After making a clinker, it dried in heating machine at 1200-1400 degree

Celsius temperature. Minimum 1 hour required for drying the clinker.

6. STORAGE OF DRY CLINKKER:

After the drying a clinker it stored in a one place. It’s called silo. As per the

requirements, clinker is send at required place through conveyor belt.

7. CRUSHING THE CKINKER & ADDED THE CHEMICAL:

Dried clinker is again crushed in the grinding cement mill. And chemical is

added as per the grad of cement. After adding the chemicals, this all things are

mixing in the raw mill. After this process all these mixing material is transfer in

to the ruler. Rulers exclude the wastage & clean to the cement.

8. PACKING:

Packing is the final step of cement manufacturing process. Clean cement

again stored in a silo and last as per the requirement it come in weight box

through conveyor belt. After this cement bag which have capacity to include 50

kgs. Cement in it.

INTRODUCTION

The term marketing is derived from Latin word ‘marcutus’ which means a

place where business is conducted.

Market:-

The market means a place where buyer and seller meet each other and the

deals finalize.

Marketing:-

Marketing means to delivered goods and services at a right time, at a right

place, and to the right person. – It’s known as marketing. The bases of marketing

are selling of the product. But the term marketing is very wide and various. The

marketing head office of Gujarat Ambuja Cement Ltd. at Mumbai which includes

the Marketing Department of Gujarat Ambuja Cement Ltd. is in Gujarat,

Maharashtra, Rajasthan and other stat of the country and also in foreign country.

Gujarat Ambuja Cement Ltd. covers sales area in South Gujarat, Mid Gujarat,

North Gujarat, Saurashtra and Kutch, Gandhinagar and Kheda. Marketing is starts

with human’s needs and wants. People want their basic need like food, air,

water clothing & shelter to survive. The human wants are unlimited, various, and

wide so, the marketing process will never becomes top.

ORGANISATION OF MARKETING

DEPARTMENT

It is true that the human wants are unlimited, various, and wide so, it is a

responsibility of Marketing Department to organization it’s department in such a

way that it can help to satisfy the human wants. It does not help in the sales and

distribution of the goods and services only but it also help to customers

satisfaction. Gujarat Ambuja Cement Ltd. has its head marketing office at

Mumbai. The unit has adopted the marketing strategy of Geographical area wise.

In Gujarat the burden of marketing is carried by private marketing agency

MITCO which is situated at Ahmadabad.

The Organization structure of Marketing department

of G.A.C.L.

MANAGING DIRECTOR

MANAGING MARKETING MANAGER

ASST. MANAGER

SENIOR SALES OFFICER

SALES OFFICER

SENIOR EXECUTIVES

MARKET REPRESENTATIVE

PRODUCT PLANNING

To satisfy customer needs and wants product planning is essential. Many

products affect some factor like geographic factor, cultural factor, social factor,

demographical factor, psychological factor, and many others.

Product planning is related following matters…………..

1. Product mix {Product width, line, depth, & distribution Channel}

2. Packing

3. Labeling

4. Branding

5. After sales service

6. Organizing

7. Product research

The main product of G.A.C.L is cement and Product planning of G.A.C.L

is as under…………………………

Port land pozoland cement [PPC]

High strength ordinary port land cement [HSOPC]

53 grade cement.

Special cement for railway etc.

In product planning the product, which is demanded the most is paid

more attention. G.A.C.L. has also done the same. This unit has paid more

attention to OPC because it is demanded more G.A.C.L. products other types of

also but only anticipation of its demand for e.g. in Narmada Project, PPC was

demanded which was fulfilled only by G.A.C.L.

G.A.C.L. has paid special attention for the quality maintenance. The

quality test is held every day and every after one hour taken by G.A.C.L. for only

maintaining a standard quality, and because of this it got the ISI mark. It has been

given……….

ISO 2000 [ For pollution free production ]

ISO-9002 [ For quality ]

MARKET SEGMENTATION

Market Segmentation is a process of dividing total heterogeneous market

into various segments. Each segments tends to be homogeneous in all significant

accepts, for the purpose of selecting one or more segment as a target market for a

company and separate marketing mean is a reward to be developed for even

segment.

It is an act of classifying consumers on the basis of their characteristics to

select target market.

There are two type of market segmentation in G.A.C.L:

1. Consumer Oriented Segmentation.

2. Product Oriented Segmentation.

Market can be divided on Geographic Segmentation, Psychographic

Segmentation and Demographic basis.

G.A.C.L. has adopted market Segmentation mainly on two bases.

(1). Consumers Segmentation.

(2). Geographic Segmentation.

(1) Consumer Segmentation: it is divided in 3 divisions in G.A.C.L.

A. The general public segment.

B. The Government segment.

C. The contractor segment.

(2) Geographical Segmentation:

It is divided in 2 divisions in the G.A.C.L. at Bombay covers the region of

Rajasthan, M.P., Maharashtra etc. while Ahmadabad covers only Gujarat because

it forms the major part of G.A.C.L. market. Because of quality G.A.C.L. taking

maximum benefits of market response. As a result G.A.C.L. is the market

leader in Gujarat.

Market segmentation are use full as under…………………..

1. Maximum market for the product can be achieved.

2. Market gets new opportunities.

3. Selecting of channel of distribution.

4. Selecting advertising media.

PRICING POLICY:

Price is the main factor to satisfy the customer. Prices are known by

different names like - fees, fare, rant, commission etc. The pricing policy is

directly or indirectly affects the fixed cost, variable cost, Government policy etc.

(A) COST ORIENTED PRICING:

In this product the price is decided as per the cost of product and it is also

known as target pricing.

(B) DEMAND ORIENTED PRICING:

In this product the price is decided as per the consumer demand.

Gujarat Ambuja Cement Ltd. has many competitors in India and other

country also. So, they have set prices taking into consideration all of them. Thus,

the prices are always fluctuating it is also fluctuated by government.

Gujarat Ambuja Cement Ltd. looks upon following factors for determining

prices:-

(1) Cost of production.

(2) Advertising.

(3) Distribution cost.

(4) Sales promotion cost.

Gujarat Ambuja Cement Ltd. provides some motivation like gifts,

discounts; commission etc. for increases the efficiency of the dealers, stockiest to

selling more.

CHANNELS OF DISTRIBUTION:

A channel of distribution refers to a process of distribution goods and

services to the consumers by producer. It is known as distribution channel

because there were made channel between producer and consumer while the

selling and buying process is doing the market and it is as………………

1. Zero level distribution

Producer Consumer

2. One level distribution.

Producer Retailer Consumer

3. Two level distribution

Producer Wholesaler Retailer Consumer

4. Three level distribution

Producer Agent Wholesaler Retailer Consumer

In G.A.C.L. the main channel of distribution is three level of distribution.

In G.A.C.L. marketing agency MITCO is engages in performing marketing

activities in Gujarat. They have their sales representatives in Gujarat appointed by

MITCO. It collects the order from the Gujarat and provides them their stock by

transport facility.

TRANSPORT FACILITYS:

In G.A.C.L. the transportation of cement bag is done by two ways………

(3) one is roadways (name of the road)

Rajmoti Roadways

Autohires Roadways

Abhishek Rodways.

(4) other is sea ways (name of the ship)

Ambuja Kirit

Ambuja Shakti

Ambuja Vaibhav

Ambuja Shikar

Ambuja Gaurav

CHANNELS OBJECTIVES

No any activity is done without any objectives in mind. Every economics

activity is Done or made to achieve certain aim or target whatever it is objectives

is a goal and all Actions are directed towards that goal more ever, Which the

results or performance of an action can be measured or compared.

Ambuja Cement Ltd. has the following channel objectives.

To ensure dispatch of cement as per market needs and to provide best

services to the customers an terms of timely and speedy delivery of

material.

To ensure adequate availability of material at Muldwarka terminal as per

ship Planning. Dispatch For maximum possible quantity.

Rendering appropriate services to the transport’s truck drivers with

minimum detention of their vehicles at our factory.

To ensure complains of various statutory requirements connected to the

above Movements, without any deviation. Maintaining of effective public

relations with the concerned government officers.

FUNCTION OF SERVICE MARKETING

CHANNEL

Marketing channels consist of channel member who perform many

function. Marketing channels, particularly, indirect channel (wholesaler, retailers,

and agents) perform many functions to facilitate availability of products to

consumers with ease. Their functions offer benefits or services to manufactures

on one hand and to the consumers on the other hand. Main services or benefits

offered by marketing channel can be classified into two group’s service to

consumers and services to producers.

1. Service To Producers:

A. Transporting F. Ordering & financing

B. Place constraints G. Processing

C. Concentration on production H. Negotiating

D. Information link I. Risk bearing

E. Promotion J. Economy

2. Service To Consumer:

A. Credit facility D. Easy accessibility

B. After self service E. Better selection

C. Education and communicating

Nowadays, marketing channel plays a crucial role for both, producers and

ultimate consumers. For many products' it is difficult about successful

implementation of marketing strategy without active involvement of marketing

channel.

FACTOR AFFECTING CHANNEL DECISION

Decision on channel of distribution is treated as strategic one as it plays

significant role to satisfy consumer and also improve competitive strength.

Choice of marketing channel, being very critical must be made carefully.

1. FACTOR RELATED TO PRODUCTS:

Product is prime factor in channel decision. Product related factors are

among most relevant and powerful factors affecting channel decision. Channel

must be fit with type and nature of company’s products.

A. Perish ability of product

B. Technical aspects

C. New v/s existing product

D. Size of product

E. Divisibility of product

F. Unit price of product

2. FACTOR RELATED TO COMPANY:

Company’s internal situation has direct impact on choice of marketing

channel. Manager has to analyses company-related factor to decide the best fit

channel.

A. Company’s financial position

B. Product mix of company

C. Desire for control

D. Experience and Expertise

E. Facilities and staff

F. Company’s past experience

3. FACTORS RELATED TO MIDDLEMEN:

Companies consider several middlemen related factor while deciding on

channel. Most common factors include:

A. Creditworthiness of Middlemen

B. Attitudes of Middlemen

C. Service rendered by Middlemen

D. Financial capacity of Middlemen

E. Terms and Conditions

4. FACTOR RELATED TO MARKET:

Market is a crucial factor in channel selection. Most common factors

include:

A. Size of market

B. Geographical concentration

C. Service expected by market

D. Habits of consumer

E. Current market trend

5. FACTOR RELATED TO COMPETITION:

Current and anticipated competition affects company’s decision on

marketing channel. Relevant competition related aspect must be analyzed while

selecting the channel.

A. Intensity of competition

B. Response and reactions of competitors

C. Company’s competitive position in market

6. FACTOR RELATED TO ENVIRONMENT:

Marketer has to consider overall business environment while deciding on

marketing channel. Domestic and global environmental forces have direct or

indirect impact on company’s activities and operations.

A. Economic condition of country

B. Phases of trade cycle

C. Legal provision

D. Availability of facilities

EVALUATION OF CHANNEL ALTERNATIVES

After noting various channels alternatives which alternatives would best

satisfy the long term objectives of the firm taking in view the factors which affect

the channel decisions for this purpose, each alternatives must be rated against

economics, control and adaptive criteria.

ECONOMIC CRITERIA

For evaluating the effectiveness of channels of distribution the economic

criteria are the most important since the firm pursues the profits.

CONTROL CRITERIA

In evaluating the channel the second main consideration is that of the

control i.e. how usual the marketer is in a position to have a control over a

particular channel? The name would be the control; the better would be channel

of distribution.

ADOPTIVE CRITERIA

The next consideration in channel decision is to see whether the channel

would be suitable to adopt the changing conditions in future. Each channel

alternatives involves some duration of commitment and loss of flexibility.

For example a channel alternative involving a long commitment must

appear to be greatly superior on economic or control grounds in order to be

considered but it is not valid on the ground of adoptability. The above three

criteria must be considered to decide the effectiveness of a various Channels of

distribution.

Introduction

Definition:-

A Human Resource Management can be defining as “H.R.M is Managerial

function which concurred with hiring, motivation, directing and maintaining the

people in the organization. – It is known as Human Resource Management.

Human Resource Management (H.R.M) is also known as personal management.

Without H.R.M a company cannot achieve their goal easily. All the company has

H.R.M department.

Highlight on Human Resource Management:

1) It is managerial and top level function.

2) It is concerned with employees, both as individuals as well as a group.

3) It is try to develop employee skill and better performance.

4) Personnel Management is a continuous process.

5) Without H.R.M a company cannot achieve their goal easily. Gujarat Ambuja

Cement Ltd has H.R.M department having an experienced Vice President.

ORGANIZATION STRUCTURE

Gujarat Ambuja Cement Ltd established the line and staff type of

organization. Personnel department is under direct control of vice president

Senior Manager is responsible to vice president. The main functions of personnel

department of Gujarat Ambuja Cement Ltd. Is…………………

1) To recruitment of employee.

2) To conduct interview for selection of efficient person.

3) To make man power planning.

4) To give guidance, and motivation to the employee.

5) To dealing with transfer and promotion.

6) Wage and salary administration.

7) To maintain the personnel records. The organization chart of personnel

department of the G.A.C.L is as under:

Organization chart of H.R.M

RECRUITMENT, & PLACEMENT

Recruitment:-

Employees are the asset of the company, so it to get skillful person for

proper management of man, machine, money and material.

This process is held by Personnel Department. The process of recruitment

gets started because of transfer, dismissal or promotion of the employee. The

person in charge gives advertisement through various means of communications

like new paper, Television, Magazine etc. The recruitment is may be

on……………….

(1) At management and administration level.

(2) At staff level.

(3) At worker level.

Selection process:-

Generally the following procedure is taken into consideration while selection the

member.

1) Choose proper media for Advertisement.

2) Accept all the application, and analysis them.

3) Select applicant on the basis of application.

4) Sand them call latter.

5) Conduct personal interview.

6) Then selected employees are given an Appointment letter and make

induction in the organization.

PROMOTION AND TRANSFER POLICY

PROMOTION POLICY:-

"Promotion" is refers to the more authority, salary, and more responsibility.

In Gujarat Ambuja Cement Ltd., they use only performance basis

promotion. So, employees are promoted on the basis of their skill, performance

and their achievement level.

TRANSFER POLICY:-

"Transfer refers to the transfer of person in other department, or on other

site with same authority, responsibility, and same salary.

In Gujarat Ambuja Cement Ltd., the workers are shifted internally –in

Shift A to B, B to C, and C to A.

WAGE AND SALARY ADMINISTRATION

Wage and salary are most use full to give motivation to the employee.

Wage and salary means the monitory reward paid to the employee on behalf of

his work.

In Gujarat Ambuja Cement Ltd. they pays salary to Employees and Wages

to labors And other allowances are paid. The amount of wage & salary paid

depends on grades.

A Grade / Management Category are…..

Basic salary + house Rent Allowance + 10% provident Fund +Medical

Allowance + medical Allowance + Vehicle Allowance + Bonus + D.A.

OVERTIME PAYMENT:-

Overtime payment is admissible toward wage board workers only. The

over time payment is made on the basis of overtime memo received from the

department head.

EXTRA DUTY INTIMATION:-

If in accident case worker may lose his efficiency of performing the present

job. In such cases company make transfer of the employee and if he is not able to

work at all the units, the unit pays a reward to employee. On the event of death of

a workman the wages and other dues shall be paid to the nominee as declared

under the provident fund Act.1952.

PROVIDENT FUND POLICY

The Gujarat Ambuja Cement Ltd. Has to follow Provident fund Act

1952.Provident fund will be deducted from salary of employee at a rate of 12%.

DETAILS ARE AS UNDER:-

Employee’s contribution @ 12% will be deposited in provident fund

account.

Employer’s contribution @ 12 will be deposited in two different accounts a

follows.

•Deducting 8.33% goes to pension account.

•And 3.67% goes to P.F. Account.

COLLECTIVE BARGAINING:-

Collective bargaining is negotiation between an employer and a group of

workers to reach an agreement on working condition. It is also considered as one

of the remedial measure to set industrial dispute.

There is no formal collective bargaining in Gujarat Ambuja Cement Ltd. If

there were any problem arise it is solved by management and lab our unions. By

meeting and the decisions making.

TRADE UNION:-

According to Section 2(b) of Trade Union Act of 1926.

Gujarat Ambuja Cement Ltd. has no formal trade union. There is one

active labour union known as "Gujarat Ambuja Cement Karmachari Sangh".

It is only the union which fights for the rights of workers & solves the disputes.

PERSONNEL RECORDS

Personnel record is a very important thing which includes name, address,

date of birth, qualifications, hobby, experience etc. and as it helps to take timely

decisions. It also preserves evidence for future reference or use. Looking to the

importance of personnel records Gujarat Ambuja Cement Ltd. has maintained

separate file for each and every necessary details.

EMPLOYEES BENEFICIAL SERVICES

The personal management is tried to focus on employee and employer to

give best services. Thus it increases the satisfaction and the long run income of

the company. The Gujarat Ambuja Cement Ltd., provide the best services to their

employee. The facilities provided by the organization to the employees is as

under……………………….

(A) EDUCATIONAL FACILITIES :

The Gujarat Ambuja Cement Ltd. has its own English medium school

situated in Kodinar city. The fees are very normal so, that a common person can

able to provide their child a better education.

(B) MEDICAL FACILITIES :

The unit has its own medical center established in colony when any family

member of employee or himself is sick he can directly visit to the nearby hospital

and can go under Medical treatment. In case of any injury or accidents the

company pays the full expenditure, incurred for the treatment of worker. During

his rest period he would get the salary of those days.

(C) LEAVE FACILITIES:

The following are the leave facilities provided by the company to the

employees:

Festival Leave:

All the workmen are granted National and social Festival holidays.

Sick Leave:

The unit grants 12 days as a sick leave to the employees. He can take leave

for 12 days in one year for his sickness.

Casual Leave:

A workman may be granted Casual leave of absence with pay not

exceeding 7 days.

Privilege leave:

Privilege leave is the leave for workers only. The workers can get a

privilege leave if he works for continuous 209 days.

(D) CANTEEN FACILITIES:

The Gujarat Cement also provides a good canteen, where every worker can

go and take refreshments and snacks at cheap rates and hygienic than other stuffs

available in the market.

(E) OTHER ALLOWANCE:

Health Allowance:

Health allowance is provided 5 % of the basic salary to the worker who

works near the boiler, kiln etc. where the temperature is very high.

House rent allowance:

The unit has its own residential building constructed within the unit.

This makes the workmen easy to reach. It can provide quarters to all workmen.

(F) TRANSPORT FACILITY: Gujarat Ambuja Cement Ltd. has its own bus which traveling from Gujarat

Ambuja Cement Ltd. to Kodinar and Veraval. In workers bus they travel freely

(no fare). There is even one school bus facility provided too.

(G) BANKING FACILITY:

Gujarat Ambuja Cement Ltd. has its own banking facility provided.

(H) RECREATION AND SPORTS:

In its residential colony the unit has build up a recreation and sports

club. The club is facilitated by outdoor & indoor games. The club has a library

too.

(I) LIBRARY FACILITIES:

The unit has its well developed library. This has many types of Newspapers

in May languages and many magazines Indian and Abroad.

TIME KEEPING SYSTEM

“Everything you buy, but time can’t buy”

Time keeping means the regulation timing of workers who are work of the

industry. It means staff or workers how many hours they work in industry. They

have to work in industry at certain hours or period. Time keeping system is

important to maintain the record of absence the organization. Every firm has their

own time keeping system.

There are totally two shifts for the workers for the workers for work in the

industry the chart of Ambuja Cement Company’s time keeping system is note as:

SHIFT:

8 A.M. to 12 P.M.

2 P.M. to 6 P.M.

Lunch Time: 12 P.M. to 2 P.M.

AWARDS AND ACHIEVEMENTS

AWARDS OF ACL:

Year Awarded by purpose

1989-90 The Economic Times, Harvard

Business School Association of India

Best Corporate performance award.

1989-90 National Productivity Council Certificate of Ment for Productivity

in Cement Company

1990-91 National Productivity Council Second Prize for Productivity in

Cement Industry

1990-91 Gujarat Pollution Control Board. 1st prize for environmental

management.

1991-92 National Council of Cement &

Building Material

National award for best energy

performance

1991-92 Bureau of India Standards

1992-93 National Productivity Council 2nd

best productivity performance

award

1993-94 International Green and Social

Council, Hyderabad

Best production and product goal

award

2000-01 National Award 2nd

best environmental award

2000-01 Special Export Award Outstanding export award

2002-03 National award Prevention of pollution

2007-08 National award Excellence in water management

2008-09 National award Best Environmental excellence in

plant operation

2008-09 Ram krishna Bajaj National Quality Performance excellence trophy

ACHIEVEMENTS OF ACL:

Fastest project Commissioning.

Fastest stabilization of project.

Highest productivity.

Lowest power and Coal Consumption.

Best environment Management.

Pioneering transportation of bulk cement by sea.

Highest product quality.

Carving a strong brand.

FUTURE PLANE

During 2009 a new bulk cement terminal started operation at Kochi,

providing access to new markets in the South and two new captive power units,

each with 15 MW capacities, were commissioned at Bhatpara (Chhattisgarh) and

Maratha (Maharashtra).

Significant progress has been made during 2009 on the two major

expansion projects which will enable the company to secure its market position

through the next business cycle.

Production trials at the 2.2 million tonnes clinker production line at

Bhatpara began in mid December 2009 and the plant is expected to be fully

stabilized during the first quarter of 2010, along with a 33 MW captive power

unit.

The new clinker production line at Rauri (HP), also with 2.2 million tonnes

capacity, has commenced production trials during January 2010 and is expected

to get fully stabilized during the first quarter of 2010. The associated cement

grinding facilities at Dadri (UP) and Nalagarh (HP), each with 1.5 million tonnes

capacity, will also be commissioned during this quarter. The total cost of these

two projects will be approximately Rs. 2,700 crore.

SUGGESTIONS

Hydraulic training should also be conducted.

Time duration of this training is short so it should expand 1 or 2 hours.

Practical knowledge is also important so demo should be given.

Deep & clear knowledge is required from trainers’ side on drier,

maintenance, valve & other equipment.

Improvement is needed on fundamental topics.

Trainer should only give the topic related knowledge not give a knowledge

of the any out of the topics.

Training on pneumatic concept should be clear.

CONCLUSION

After the analysis of the training program we concluded that the trainee got

more knowledge about the pneumatic components & troubleshooting in

technical department.

The trainee can understand about the air, gas, water, leakage of the pipes,

cylinders, compressed air valve, dryer, fitter, lubrication, etc.

The trainee can aware about the pneumatic symbols so they can run

machinery effectively.

Improve the energy conservation by this technique; understand the problem

of stoppage, Implementation of the proper maintained practice, Regular

check up of the plant.

BIBILIOGRAPHY

The books referred by me for the report are as follows:

Dr. R.B.RUDANI

BASIC OF MARKETING MANAGEMENT

- S.CHAND & COMPANY LTD., New Delhi.

TAPAN K PANDA

MARKETING MANAGEMENT

- Himalaya Publishing House, New Delhi.

Web Site

www.ambujacement.com

Ambuja cement project report

Education

Transcript of Ambuja cement project report