Indian Rayon by Sanjay Jadeja
108
SUMMER TRAINNING REPORT ON INDIAN RAYON (A UNIT OF ADITYA BIRLA NUVO LTD.) SUBMITTED BY JADEJA SANJAY V. MBA Sem-III Guided by Dr. Asha Alexander ACADEMIC YEAR 2007-2009 SUBMITTED TO JAYSUKHLAL VADHAR INSTITUTE OF MANAGEMENT STUDIES (JVIMS) BIPIN T. VADHAR COLLEGE OF MANAGEMENT JAMNAGAR AFFILIATED TO SAURASHTRA UNIVERSITY RAJKOT
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Transcript of Indian Rayon by Sanjay Jadeja
SUMMER TRAINNING REPORT
ON
INDIAN RAYON
(A UNIT OF ADITYA BIRLA NUVO LTD.)
SUBMITTED BY
JADEJA SANJAY V.
MBA Sem-III
Guided by
Dr. Asha Alexander
ACADEMIC YEAR
2007-2009
SUBMITTED TO
JAYSUKHLAL VADHAR INSTITUTE OF MANAGEMENT STUDIES (JVIMS)
BIPIN T. VADHAR COLLEGE OF MANAGEMENT
JAMNAGAR
AFFILIATED TO
SAURASHTRA UNIVERSITY
RAJKOT
2
SUMMER TRAINNING REPORT
ON
INDIAN RAYON
(A UNIT OF ADITYA BIRLA NUVO LTD.)
SUBMITTED BY
JADEJA SANJAY V.
MBA Sem-III
Guided by
Dr. Asha Alexander
ACADEMIC YEAR
2007-2009
SUBMITTED TO
JAYSUKHLAL VADHAR INSTITUTE OF MANAGEMENT STUDIES (JVIMS)
BIPIN T. VADHAR COLLEGE OF MANAGEMENT
JAMNAGAR
AFFILIATED TO
SAURASHTRA UNIVERSITY
RAJKOT
3
DECLARATION
I undersigned JADEJA SANJAYKUMAR V.a student of MBA 3rd semester
declare that I have prepared this project report on Organization study at
INDIAN RAYON and guided by Dr. Asha Alexander of JVIMS.
I also declare that this project report is my own preparation and not copied
from anywhere else.
___________
Student's Name: JADEJA SANJAYKUMAR V
Roll No.: 14
4
ACKNOWLEDGEMENT
It is my personal belief that no report is the result of only its author‘s
efforts. There are many people who contribute something or the others,
and thus play a significant role in laying the foundation of a truthful and an
effective report that is capable of achieving its purpose. Therefore, I would
like to take this opportunity to thank all those people who have helped me
in preparation of this project, guiding me towards the achievement of its
purpose.
First of all I would like to thank HR Manager Mrs FALGUNI AGRAVAL. He
was very supportive during my training period in all the ways.
It gives me great pleasure and privilege to acknowledge my deep sense of
gratitude to Dr. Asha Alexander for becoming my project guide and for her
kind support through my project.
And I would like to thanks all workers of INDIAN company who co
cooperate me and give me some advantage information about my project
report.
And last but certainly not the least; I would like to thank all my friends,
family members for creating a congenial environment and encouraging me
in every way.
5
INDIAN
RAYON
(A UNIT OF ADITYA BIRLA NUVO
LTD.)
6
Contents of Project Report
Sr. No
Particulars Page no
1 Executive Summary 7
2 Introduction 9
(a) Overview of Industry 10
(b) Company Details 13
(c) Competitors details 28
(d) Regulatory Environment details 30
3 Organisational Study 35
a) Marketing Department study 37
b) Production Department Study 48
c) Financial Department Study 62
d) Human Resource Department Study 85
4 Conclusion 105
5 Recommendations/Suggestions 106
Appendixes : (1) List of Graphs (2) List of Tables (3) Glossary of Terms
6 Bibliography 107
7
EXECUTIVE SUMMERY
Innovation is the hallmark of the manufactured fiber industry.
INDIAN RAYON AND INDUSTRIES LIMITED (formally known as INDIAN
RAYON CORPORATION LTD.) is a 1600 Cr. Multi-product and multi-
locational industrial conglomerate, a part of Aditya Birla Group, the
organization of a long, illustrious and magnificent legacy spread over a
period of 125 years .
The Rayon Division is one of the 12 Divisions of Indian Rayon,
located in Veraval, Gujarat. The main product of the Rayon Division is the
Viscose Filament Yarn apart from chemicals like sulphuric Acid, Carbon-di-
sulphide, which are both consumed in-house and Sodium Sulphate, which
is by Product.
INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd ) is very sound
company producing industrial product. Major factories producing rayon
yarn inindia are under one management i.e. The Birla group. The Aditya
Birla Group has covered near about 75% of the yarn market
INDIAN RAYON at veraval is producing a product which is used by
all manufacturing industries. Hence, all marketing activities works through
centralized system at Mumbai.
8
Production management INDIAN RAYON deals with production
process, so that the resulting goods or service is produced according to
specification, in the amounts and by schedule demanded and at minimum
cost.‖
INDIAN RAYON manage the finance properly and to
make the financial management effective special finance department is
created which mainly perform the function like Financial Planning,
Raising of Funds ,Allocation of Funds, Financial Control.
INDIAN RAYON has a separate HR department. the welfare activities
done for their employees are remarkable. In this company it can be seen
that there is bonding between management and workers and hence result
is to smooth functioning of the organizational activities. The HR activities
under taken by HR department are the best.
The effective functioning of Marketing ,HR,Production,Finance departments
has made Indian Rayon one of the top Corporate company in our country.
9
ADITYA BIRLA GROUP
ADITYA VIKRAM BIRLA
(November 14, 1943 – October 1, 1995)
The Aditya Birla Group. Epitomizing the philosophy of its
Legendary leader – the late Aditya Vikram Birla – one man who
Made a difference. Rooted in Indian values, yet global in vision.
Rock solid in fundamentals. Nurturing a culture where success does not
Come in the way of the need to keep learning afresh, to keep
Innovating, to keep experimenting. Transcending the conventional
Barriers of business to send out the message that it cares.
10
Industry detail
11
Industry Detail
Innovation is the hallmark of the manufactured fiber industry. Fibers more numerous and diverse than any found in nature are now routinely created in the industry’s laboratories. Nylon variants, polyester, and olefin are used to produce carpets that easily can be rinsed clean – even 24 hours after they have been stained. Stretchable spandex and machine – washable, silk polyesters occupy solid places in the Indian apparel market. The finest micro fibers are remaking the world of fashion.
For industrial uses, manufactured fibers relentlessly replace traditional materials in applications from super-absorbent diapers, to artificial organs, to construction materials for moon-based space stations. Engineered non-woven products of manufactured fibers are found in applications from surgical gowns and apparel interfacing to roofing material m roadbed stabilizers, and floppy disk envelopes and liners. Non-woven fabrics, stiff as paper or as soft and comfortable as limp cloth, are made without knitting or weaving. As they always have, manufactured fibers continue to mean, “Life made better.” Fig.no-1 First Commercial Indian Production
1918 – Rayon 1945 --Vinyon 1959 -- Acrylic 1931 -- Acetate 1949 -- Saran 1964 -- Polyester 1938 -- Rubber 1945 -- Metallic 1964 -- Spandex 1939 -- Glass 1958 -- Modacylic 1968 -- Agamid 1945 -- Nylon 1958 -- Olefin 1985 -- PBI
12
Fig.no-2 Production Data for Rayon Industry in India
YEARS (DECADE) PRODUCTION(IN TPA)
1918 – 1920 2,480
1921 – 1930 25,687
1931 – 1940 85,939
1941 – 1950 1,96,540
1951 – 1960 2,04,460
1961 – 1970 3,75,504
1971 – 1980 6,39,902
1981 – 1990 10,08,076
1991 – 2000 23,85,584
2001 – 2006 19,52,570
Fig.no- 3 Production Data for Rayon Industry in India
production capacity in India
0
500000
1000000
1500000
2000000
2500000
3000000
1918-
20
1921-
30
1931-
40
1941-
50
1951-
60
1961-
70
1971-
80
1981-
90
1991-
00
2000-
06
years
pro
du
cti
on
in T
PA
13
Introduction to Aditya Birla Nuvo ltd.
INDIAN RAYON AND INDUSTRIES LIMITED
INDIAN RAYON AND INDUSTRIES LIMITED (formally known as
INDIAN RAYON CORPORATION LTD.) is a 1600 Cr. Multi-product and multi-
locational industrial conglomerate, a part of Aditya Birla Group, the
organization of a long, illustrious and magnificent legacy spread over a
period of 125 years. The Group is consolidating its position under the
chairmanship of Shri Kumar Manglam Birla taking the aspirations from the
legacy of a leading industrialist, Late Shri Aditya Vikram Birla. The
organization came on the sphere of Rayon Industry in 1963 when its
foundation stone was laid down by Late Shri Lal Bahadur Shastri.
The Rayon Division is one of the 12 Divisions of Indian Rayon,
located in Veraval, Gujarat. The main product of the Rayon Division is the
Viscose Filament Yarn apart from chemicals like sulphuric Acid, Carbon-di-
sulphide, which are both consumed in-house and Sodium Sulphate, which
is a by-product. The total production is 38.5 TPD of yam likely to will be
increased to 40 TPD by June 1998. Rayon industry consists of seven
domestic players, and we are the market leader in terms of sales. Exports
constitute about 15% of the total turnover. Besides, 100 TPD Caustic Soda
plant and 16.5 MW Power Plant have also been commissioned in 1996.
14
The company is engaged in the manufacture and production of
viscose filament yarn, carbon black, branded garments, textiles and
insulators. In addition, IRIL through its subsidiaries has made forays into
insurance, IT services and business process outsourcing (BPO). The
company is headquartered in Mumbai, India.
Indian Rayon is accredited with ISO: 9002 for "Quality Systems" and
ISO: 14001 for "Environmental Management Systems". A scheme for
another 15 MW captive Power Plant is in the pipeline.
15
HISTORY AND DEVELOPMENT OF INDIAN RAYON
The late prime Minister shree Lal Bahadur Shastri laid the foundation
stone of Indian rayon and industries ltd. It was incorporated on the 26th
September 1956 under the company act of 1956 and the company was
getting the commencement certificate on 13th feb.1958.
The inauguration of the company was done or an American
ambassador Mr.H.H.Galbreth on 13th April 1963 and on the same day
company took its trial production. Shree Morarji Vaidya one of the leading
industrialist of Gujarat with a view manufacture viscose filament yarn (VFY)
in collaboration with von-kohorn international of USA started this
organization.
Once a sick company and virtually on the verge of closure was taken
over by shree ADITYA VIKRAM BIRLA in 1966,Who believed consolidation,
expansion and diversification, because of his believed and sincerity toward
work the company has not only turned around but has also made up strong
market position today. By 1975 the JAYSHREE TEXTILES has merged with
Indian rayon. The Indian rayon industries ltd. is public ltd. Company.
16
Vision & Mission of the Indian Rayon
17
A leading Player
1. The second largest producer of viscose filament yarn (VFY) in India.
2. The largest branded apparel company in India.
3. The second largest producer of carbon black in India.
4. Life insurance joint venture, Birla sun life insurance company Ltd, is
India‘s second largest private sector insurance company.
5. Insulator joint venture with Birla NGK insulators pvt. Ltd. Is India‘s
largest and word‘s third largest producer of insulators?
6. Emerging player in high growth IT services and BPO sector.
CAPACITIES
Fig no-4 Chart of Production Capacities
Business capacity
Viscose filament yarn (VFY) 16400 tpa.
Caustic soda 82125 tpa.
Carbon black 230,000 mtpa.
Flax yarns 15340 spindles
Wool combing 8000 tpa.
Worsted yarns 25548 spindles
Synthetic yarns 57208 spindles
Linen/fire retardant fabrics/other fabrics 107 looms
Insulators 38000 tpa.
BPO 9089 seats
18
MILESTONE
2007
Wholly owned subsidiary "Aditya Birla Insulators Ltd." merged into
Aditya Birla Nuvo w.e.f. 1 April 2007
Raised Rs. 777 crore through rights issue of equity shares
Brownfield expansion of 60,000 tpa completed at Hi-Tech Carbon,
Gummidipundi, taking total capacity to 2, 30,000 tpa
2006
Increased stake from 20.7 per cent to 35.7 per cent in Idea Cellular
Limited
Acquired Minacs, a leading Canadian BPO company in August 2006
Insulators JV with NGK terminated mutually in November 2006
Caustic soda capacity increased by 65 TPA taking total capacity to 225
tpd
18 mw power plant commissioned in September 2006 in the Rayon
division
The chlor alkali and chlorine derivatives businesses of Aditya Birla
Nuvo, Bihar Caustic and Grasim become a single SBU
2005
Indian Rayon rechristened as Aditya Birla Nuvo
Merger of Indo Gulf Fertilizers Limited and Birla Global Finance Limited
with the company, effective from 1 September 2005. By
Virtue of the merger, Birla Sun Life Asset Management and Birla Sun
Life Distribution, leading players in high growth Asset
Management and Wealth Management industry came into the
company's fold.
19
Increased stake from 4.3 per cent to 20.7 per cent in Idea Cellular
Limited, a company in the high growth telecom sector
2004
Brownfield expansion of 40,000 tpa completed at Hi-Tech Carbon,
Gummidipundi, taking total capacity to 1,60,000 tpa
2003
Greentech Environment (Silver) Award 2002-2003 in Chlor-Alkali sector
for outstanding achievement in environment
Joint venture with NGK of Japan – Birla NGK Insulators Pvt Ltd –
launched on 6 February 2003
Entry into business process outsourcing (BPO), with the acquisition of
TransWorks, a leading Indian ITES / BPO company
2002
Insulators business hived into a separate subsidiary, effective from 1
August 2002
2001
Life insurance joint venture — Birla Sun Life Insurance Company
commences operations in March
Indian Rayon acquires PSI Data Systems
2000
Indian Rayon acquires Madura Garments, taking the Aditya Birla Group
to the top of the league in the branded apparels sector
1999
Indian Rayon returns surplus cash to shareholders through a buyback
20
1998
Indian Rayon's cement business transferred to Group company Grasim,
as part of cement business consolidation
Production commences at Hi-Tech Carbon's second carbon black
plant at Gummidipoondi, Chennai
1988
Indian Rayon forays into carbon black. Hi-Tech Carbon (Renukoot) goes
on stream
1987
Indian Rayon Corporation renamed as Indian Rayon And Industries
Limited, to reflect the diversified activities of the company
1984
Indian Rayon enters cement business
1981
Jaya Shree Insulators' second unit at Halol goes on stream
1976
Indian Rayon's viscose filament yarn plant at Veraval goes on stream
1966
The Birla acquire Indian Rayon Corporation Ltd
1963
Indian Rayon's viscose filament yarn plant at Veraval goes on stream
1956
Indian Rayon Corporation Ltd is incorporated
21
ADITYA BIRLA GROUP COMPANIES
Fig no.5
Objective of Indian Rayon
To produce viscose filament Yarn to meet the expectations of
customer in premium segment.
To achieve minimum cost of production through innovation
development, involvement, employees, vendors.
To maintain clean pollution free environment.
To Make continual improvement in all spheres at activities
COMPANY KEY PRODUCTS /SERVICES
1 GRASIM Viscose staple fiber, cement sponge, iron
textiles, exports, software consulting
2 HINDALCO Aluminum
3 INDIAN RAYON Viscose filament yarn, textiles, insulator,
carbon black
4 INDO GULF Fertilizers, copper
5 BIRLA GLOBAL FINANCE Financial services
6 HIGI INDUSTRIES Files, casting gases
7 ESSEL MINING Iron and manganese or mining Ferro alloys,
HPE woven sacks
8 SHREE DIGVIJAY CEMENT Blended yarns
22
To Compliance of all applicable legal requirements through adopting
the world class manufacturing, practices maintaining high moral of
employees.
SWOT Analysis
The overall evaluation of division like strengths, weakness,
opportunity and threats is called swot analysis.
STRENGTH
Yarn produce here is of high quality then also management
always tries to increase the quality of yarn in order to fulfill their
potential customer and new ones. Total produced items+
wasted are being sold; this shows the efficiency of sales
activity.
Better pacing, carriage and transportation system with all
modern equipment and good after sales service.
Regular meeting and seminars are conducted in the entire
department in order to find our loopholes and solve the same.
23
Division also have continuous spinning yarn department in
which the modern technology is used for the spinning the yarn
and its is adopted fro Germany.
Divisions have domestic as well as export market and for this
they are doing the Internet marketing in order to find new
markets.
Division has WCM (World Class Manufacturing) ceil in which
they look out for better way of manufacturing.
ISO 9002 for the better quality of the production carries division.
Division is certified by ISO 14001 for the good environment
management system, for their division has hoti-culture
department in order to look to the surrounding environment.
WEAKNESS:
Cost of production is more due to existence of very old
technology installed in this division.
Many process steps and process is more sensitive to normal
process variations.
Division is unable to pay more attention toward proper human
resource management.
24
Location away from consuming centers.
Bigger process cycle/higher process stock.
OPPORTUNITY
Division should find new market area for its products specially
chemicals.
More research activity should be done, as there is chance of
finding new markets.
VFY use for certain textile items is specific and indispensable.
Quality has ore weight age in international market. Indian rayon
Pot Spinning Yarn is next to Asahi Japan and better than
Chinese and Russian Yarn used in international market.
Biggest opportunity, when opening up of global market MFA
expires in 2005. Quota restriction will boost the export of yarn
directly and though Textile in World’s tows biggest market
Europe an US.
25
THREATS
Government policies are the main hurdles of the division’s
performance.
Emergence of cotton threads made the market share of Rayon
Yarn low.
Fashion changes are also basic threats for such division.
The Viscose Process is highly polluting. The basic raw material
(pulp) is again pollution prone.
Challenges ahead
The Rayon division along with the industry facing the following
challenges.
Comparatively poor quality
Unregulated dumping of the products from China
Higher cost per Kg. of production
Sustaining sales volume
26
Company Profile
Name : INDIAN RAYON AND INDUSTRIES LIMITED
Location : Indian Rayon Division
Veraval-362226
Junagadh-veraval highway road
Dist.:- junagadh
Registered Office : Rayon and Caustic Soda Plant
Indian Rayon Division
Veraval 362 266
Gujarat
India
Phone No. : + 91 - (02876) - 245711, 245735
Fax No. : + 91 - 2876-243220
Email : [email protected]
Website : www.indianrayon.com
Promoter : Mr. Kumar Mangalam Birla, Chairman
Mrs. Rajashree Birla
Products : Viscose filament yarn, Sodium sulphate,
Caustic acid
Raw Materials : Pulp, caustic soda, acid, zinc
Workforce : 3462 Members
27
Management Committee
Board of Directors:
Mr. Kumar Mangalam Birla, Chairman
Mrs. Rajashree Birla
Mr. H. J. Vaidya
Mr. B. L. Shah
Mr. P. Murari
Mr. B. R. Gupta
Ms. Tarjani Vakil
Mr. Vikram Rao
Mr. S.C. Bhargava
Mr. G.P. Gupta
Mr. S. K. Mitra
Dr. Rakesh Jain
Mr. Sanjeev Aga(Managing Director)
Mr. K. K. Maheshwari (Whole-time Director)
Mr. Adesh Gupta (Whole-time Director)
Business heads :
Mr. K. K. Mahehwari (Viscose filament yarn)
Mr. Vikram Rao (garments)
Dr. Rakesh Jain (carbon black)
Mr. S. K. Saboo (textiles)
Chief Financial Officer (CFO)
Mr. Adesh Gupta
Company Secretary
Mr. Devendra Bhandari
28
Competitors Detail
NAHAR INDUSTRIAL ENTERPRISES LIMITED
Unit: Nahar Fabrics, Lalru, Mohali (Punjab)
Nahar Fabrics is a unit of NAHAR INDUSTRIAL ENTERPRISES LIMITED (Unit:
Nahar Fabrics) aimed to manufacture and process of 100% Cotton, polyester
Cotton, Cotton/Lycra and other blended fabrics for high quality conscious
overseas markets and domestic leaders in garment sector. The Company is
using update technology in weaving and processing.
The Company is ISO- 14001:2004 certified with production capacity of 1,
50,000 meter Grey and 1, 00,000 meters Processed finished fabric per day and
now going for the certification of Integrated Management System IMS as under
: EMS-14001: 2004, QMS-9001: 2000 and SA-8000.The management is heaving
the target to make the organization clean and green. GREEN NAHAR Plant has
identified significant Energy and environmental aspects and set the objectives
and targets to improve he Energy performance as well as environmental
performance ahead the legal obligations. Nahar Fabrics is committed to
preserve the health & safety of its employees and other associates working at
its sitesThe plant processing is based on ecofriendly dyes and chemical from
reputed companies like BASF, Clariant, Huntsman, Daystar, Cognis, Atul etc.
The dyes andchemicals used are azo free and conform to Oeko-Tex and reach
standard.
29
MARAL OVERSEAS LIMITED
Sarovar Plant, Khalbujurg, Khargone (Madhya Pradesh)
MARAL OVERSEAS LIMITED is a group Company of renowned LNJ Bhilwara
group. The LNJ Bhilwara group founded by Shri Laxmi Niwas
Jhunjhunwala has a global presence. MOL plant was set up in the year
1989 as 100% Export oriented, vertically integrated Textile manufacturing Unit
(An ISO 9001 accredited Co.). This is one of the few textile Cos. to have
facilities of Spinning, Knitting, Processing & Garment manufacturing at single
location. MOL has the honour to have supplied articles all over to the world
known Cos.,
e.g.,NIKE,MARKS&SPENCERS,HUGOBOSS,MANGO,ERICA,TIMBERLAN
D etc. Emphasis on training and regular re-training is integral to the way the
unit works training workshops, conducted for the workers and managers, help
sharpen professional skills needed for optimizing energy consumption on the
sophisticated Japanese and other imported machines.
30
Other competitors
INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd ) enjoys the
monopoly in the market because of its total market of Rayon Yarn industry.
The Indian Rayon covers almost 25% of the market and the Aditya Birla
Group have also other two units of rayon yarn so altogether three units
covers the 75% units of the total market.
Competitors of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd ) are :
Century Rayon
National Rayon
Baroda Rayon
South Indian Rayon
Kesavram Rayon
Shriram Rayon
Regulatory Environmental In today‘s era societal marketing is getting more and more important, which includes environmental considerations are to be taken into consideration apart from other operations. INDIAN RAYON comes under purview of Gujarat Pollution Control Board control (G.P.C.B.) for pollution control. It follows the norms and pollution control measures laid down by G.P.C.B. Environment policy is maintained by keeping workers feel in the best condition. The following particular shows the measures taken by Rajhans Impex.
Gujarat Pollution Control Board Paryavaran Bhavan, Sec.-10 (A), Gandhinagar – Gujarat. www.gpcb.gov.in
31
In exercise of the power conferred under sec.-25 of the Water (prevention & control of pollution) Act.-1974, under sec.-21 of the Air (prevention & control of pollution) - 1981 and Authorization under rule 3(c) & 5(c) of the Hazardous waste (Management & Handling) Rules‘ 1989 & as amended up to year 2003 framed under the Environment (protection) Act-1986.
Conditions under Water Act:- 1.1 The quantity of trade effluent from the factory shall be Nil and entire
quantity of traded effluent shall be recycled back into pickling tank. 1.2 Domestic effluent shall be disposed off through septic tank / soak pit
system.
Conditions under Air Act:- 2.1The flue gas emission through stack shall conform to the following
standards: Fig no-6 - Standards of flue gas emission stack
Sr. No.
Stack attached to
Stack height in
meter
Parameter Particulate
matter
Permissible limit
1. Power plant 52.5m SO2 NOx
150 mg / NM3 100 ppm 50 ppm
2.2The concentration of the following parameters in the ambient air within
the premises of the industry shall not be exceed the limits specified hereunder.
Fig no-7 - Parameters & permissible limits of the ambient air within the premises
Parameter Permissible limit
Suspended particular matter 500 Microgram per cubic water
Oxides of Sulpher 120 Microgram per cubic water
Oxides of Nitrogen 120 Microgram per cubic water
RSPM 150 Microgram per cubic water
32
2.3The industry shall take adequate measures for control of noise levels from its own sources within ambient air quality standards in respect of noise to less than 75dB(a) during day time & 70dB(a) during night time. Day time is reckoned in between 6 a.m. and 10 p.m. and night time is reckoned between 10 p.m. & 6 a.m.
2.4Industry shall have to display on-line data outside the main factory gate
with regard to quantity & nature of hazardous chemical being handled in the plant, including waste water and air emissions & solid hazardous waste generated within the factory premises.
INDIAN RAYON. here by granted an authorization to operate facility for following hazardous wastes on the premises situated at Veraval ,Gujarat India. Fig no.8 - permission granted to operate hazardous waste on the premises
Sr. No.
Waste Quantity / Year Schedule Facility
1. ETP sludge 0.006 MT 12.9/I Collection, Storage, Encapsulation, Transportation Disposal at TSDF
2. Process Waste 276 MT II Collection, Storage, Encapsulation, Transportation Disposal at TSDF
General Conditions:- 3.1The waste generator shall be totally responsible for (i.e. Collection,
Storage, Encapsulation, Transportation and ultimate disposal) of the waste generated.
3.2Records of waste generation, its management and annual return shall be
submitted to GPCB – in Form – 4 by 31st Jan of every year. 3.3The unit shall maintain the records of production & consumption of
electricity & water for each day during the period of production.
33
The unit shall maintain separate figures for consumption of
electricity for running the Air pollution control measures / incineration system by having a separate meter/ sub-meter for each Air pollution control measures. The number of unit consumed by operating the diesel generating sets, if any, shall also be maintained.
The unit is committed to preserve its environment and safety of its employees. Following major improvements have been made during last three years :
a) Water Effluent
The effluent from various section of industry is led to the common effluent treatment plant. The acidic effluent flow are neutralized by addition of lime slurry and then fed to two zinc clarifiers for effective removal of zinc. The overflow from clarifier is fed to the mixing chamber where the effluent from other two drains also joined. The mixed effluent is then pumped to suspended solid clarifier. The overflows flows into a holding tank, from where it is disposed off to sea creak. The quality of this treated effluent will within the prescribed norms of GPCB.
b) Air
Regarding control of air pollution the company has installed ESP & Bag filter in power plant & boilers, scrubbers in acid plant & caustic plant for dispersion of process gas. The industry has provided a stack of 52.5 mtrs height. The company is regularly monitoring the all polluting parameters of stack & also the ambient air quality surrounding the industry. All the gaseous emission are always found well within the norms prescribed by GPCB norms.
c) Solid waste
Mainly lime sludge is generated & disposed as a solid waste in low lying land area. The unit has got ISO 14001 & OHSAS certification and is committed to follow all the guidelines as per ISO standards.
34
35
Organizational
study
36
ORGANIZATION STRUCTURE
Fig no.9 Chart of Organization structure
DIRECTOR
HR manager Marketing
Manager
Production
Manager
Finance
Manager
Assistant Assistant
Assistant
Assistant
Time -Keeper Engineers Accountant
Clerks
Peon
Workers
Dealers
37
38
Fig no-10
Chart of Marketing Department
ORGANIZATION STRUCTURE OF “MARKETING DEPARTMENT”
Vice
President
Raw Material
& Storage
Transport Sales &
Marketing
Legal & Liaison
General
Manager
Sr. Officer General
Manager
Sr. Officer
D. Manager
Sr. Officer Sales Officer
Manager
39
Introduction
Marketing deals with identifying and meeting human and social
needs. One of the shortest definition or marketing is ―meeting needs
profitably.‖
―A market may be considered as a convenient meeting place where
buyers and sellers gather together for exchange of goods and services.‖
INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) at veraval is
producing a product which is used by all manufacturing industries. Hence,
all marketing activities is one through centralized system.
INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) has its main sales
office at Mumbai.
40
MARKET PROFILE
VERAVAL
Factory &
Caustic Soda Mktg..
s
SURAT
AHMEDABAD
AMRITSAR
PANIPAT
DELHI
BELGAUM
MUMBAI VFY Mktg..
SALEM
BANGALORE
KOLKATA
VARANASI
41
Market Segmentation
―Market Segmentation consists of taking this total market for the
product and dividing it into several sub-marketer segments each of which
tens to be homogenous in all the significant aspect.‖
The company identifies different waya to segment the market and
develops the profiles of the resulting market segments.
There are two approaches regarding market segmentation :
People oriented approach
Product oriented approach
INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd ) uses ‗people oriented
approach‘ method for market segmentation. They classify their consumer
on the basis of place,income, geographical location, etc.
The branches of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd ) are
located at Ahmedabad,Delhi, Mumbai, Amritsar, Surat, Bangalore, and
Madras. Its head office is situating at Mumbai which takes all the decisions
regarding the company‘s products.
There are different manufacturing companies that consumes and
demand for the specific type of yarn of very fine quality. The demand for
yarn differs from company to company on the basis of their handloom
production. So, this company has segmented the total market on the basis
of product application consumer industry wise:-
42
The INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd ) marketing office is at
Mumbai. The company has various type of segments. They are selling its
product in India as well as exporting in many countries.
Branches in India :
Surat Delhi Mumbai Varanasi
Bangalore Amritsar Calcutta Veraval
Branch Abroad :
Korea Italy Africa Saudi Arabia Bangladesh
The above mentions are the major market of INDIAN RAYON (A Unit of
Aditya Birla Nuvo Ltd ) There are various other branches of INDIAN RAYON
(A Unit of Aditya Birla Nuvo Ltd ) spread over the world.
PRODUCTS OF INDIAN RAYON
Product mix which is also called as a product assortment is the set
of all product items that a particular seller offers for sale. A co. ‗s product
mix has certain with, length, depth, & consistency.
INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) product is VFY but
along with it the co. also manufactures some chemicals and by products,
which are require for the production of Yarn, and the excess of this product
is out in the market.
43
INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) is manufacturing
the Yarn which is of different colors and different quality – denier wise as
per the requirement of the client.
Fig no-11 Product of Indian Rayon
Name of the
final product
End users of final product Raw material
Viscose
filament yarn
Apparel, home furnishings,slipovers,industrial
uses
Pulp, caustic
soda,acid,carbo
n di
sulphide,zinc
Carbon
disulphide
Rubberchemicals,agrochemicals,pesticides,pharm
a,
Viscose
Charcoal
Sodium
sulphate
Glass industries,paper,textile,dyes,gum By product
Sulphuric acid Fertilizers, intermediates,viscose,dyes,chemicals sulphur
Caustic acid
lye
Paper,alumina,viscose,fibre,soaps&detergents
Drugs,demineralization dyes & intermediates and
other chemicals
Salt,coal
Liquid chlorine Organic & inorganic
chemicals,paper,HCL,PVC,CPW etc.
Hydraulic acid DM Water plant, pickling of steel, phosphoric acid,
synthetic rutile,ossein,DCP,calcium chloride
44
Channel of distribution
INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd ) has adopted its
own sales branches and sales offices in context of its channel distribution.
INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd ) sales marketing office is
at Mumbai which performs the functions of selling the product of the
company. The marketing office collects all the orders from the twelve
different sales branches.
INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd ) also produced
chemical along with the yarn like sodium sulphite, sulphuric acid and
carbon-di-sulphide are distributed though dealers and selling agent.
DISTRIBUTION CHANNEL
Fig no-12 Process of Distribution Channel
Company‘s premises
Sole distributors
Dealer
Retailer
Final consumer
45
Pricing
Pricing is a key factor, which remarkably effects the sales operations. Price
may be defines as ― The value of the product attributes expressed in
monetary terms which a consumer pay or is expected to pay in exchange
and anticipation of the expected or offered utility.‖
The firm has to consider many factors in setting its pricing policy :
Pricing objective
Determining demand
Estimating costs
Analyzing competitors prices and offers
Pricing methods (selecting)
Selecting final price
Price is the only element in the marketing – mix that produces revenue.
INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) has not adopted any clear
pricing policy but it follows the mixture of following pricing strategy :
Competition oriented pricing policy
Demand oriented pricing policy
Cost oriented pricing policy
46
Promotional Tools
― Promotion consists of those activities that are designed to being a
company‘s goods or services to the favourable attention of customer.‖
Sales Promotion
Companies use sales – promotion tools to create a stronger and quicker
response.
There is a separate organization , which jointly made efforts for sales
promotion and this organization is followed by INDIAN RAYON (A Unit of
Aditya Birla Nuvo Ltd.) This organization is known as ― The silk and Rayon
Textile Export Promotion Council.‖
The head office of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) does
all the activities of the sales promotion. It promotes its sales via dealers i.e.
the product is sale thought middle man.
Following tools have been use in this method ;
Buying allowance discount
Display allowance
Dealers contest
Concession on the net sales 25
Free gift
47
Advertising
Advertising is basically used for:
Creating or enhancing goodwill
Preparing ground for new product
Creation of demand
Facing the competition
INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd ) is very sound company
producing industrial product. Major factories producing rayon yarn inindia
are under one management i.e. The Birla group. The Aditya Birla Group has
covered near about 75% of the yarn market.
Rayon Yarn is use as a raw material in textiles industries that are not
affected by any media of advertisement and that is the reason why the
company is not advertising its product.
48
49
INTRODUCTION
Production means creation of utilities and entails and procurement
and utilization of factors of production, which includes manpower, material,
buildings and equipments. Production is fabrication of physical object
through use of men, material and equipment.
―Production management deals with decision making related with
production process, so that the resulting goods or service is produced
according to specification, in the amounts and by schedule demanded and
at minimum cost.‖
Production must be operated in an economic and efficient manner
because cost of production is vital factor in facing market competition and
in ensuring normal profit or return on investment.
50
SELECTION OF LOCATION
There was no regional advancement before the astablishment of factory.
Veraval region was very much backward in terms of industrial activities.
People over here were also socially as well economically backward. So the
government decides to devlop the area wirth the establishment of the
factory. For this the land cost gurantee an various other incentive like
smooth supplement of the water an electricity were also provided by the
Govt. up to 1979.
From 1979 the company has establishment its own power plant and water
supplement from Govt. is still continuing but the company has to pay the
water charges as per the Govt. rule. This industry was not paying octroy
duties local Veraval city.
A slew of initiatives are underway to improve quality, increase the share of
value added products and lower the cost. Technology upgradation is
beaing under taken to improve quality. During FY 2006-07, caustic soda
capacity increased by 65 tpd taking total capacity to 225 tpd. New 18mw
power plant commissioned in September 2006 in rayon division. Out of VFY
capacity expansion by 1000 tap, first phase of capacity enhancement by
400 mtpa has been accomplished in January 2007.
Types of plant layout:
The plant layout production centers for the manufacture of a product
basically there are mainly three types of layouts:
Product/line layout.
Process/functional layout
Combination of product and process l
51
Production Process
Indian Rayon & Industries Limited (IRIL), a Rs 15.95 billion Aditya
Birla Group company, operates a wide range of businesses. Incorporated
in September 1956. As a part of its backward integration process, IRIL set
up a 33,000-tone caustic soda plant with bi polar membrane cell technology
from Krupp UDHE Gmbh of Germany .
Located at Veraval in Gujarat, the Caustic Soda Division was
commissioned in 1997. A 50 TPD Flaking plant was commissioned in
January 1998. In the process,Caustic Soda Lye,Chlorine & Hydrogen gases
are simultaneously produced from cells as by products.The Capacity of
Caustic Soda is 100 TPD, Chlorine gas and Hydrogen gas are 88.60 MT and
29400 nm3, per day respectively.
The Chlorine and Hydrogen gases produced from cells are further
purified in respective sections. The products produced are of high quality
since the process demands very high quality of raw materials. The
Hydrochloric acid is produced with chlorine and Hydrogen gas.
The capacity of HCI is 90 TPD on 32%. About 30 per cent of Caustic
Soda is for self-consumption and remaining is for sales Caustic soda lye
produced is of 32%concentration , chlorine and hydrogen are produced as
gases from cells. These two gases are further purified in respective
sections. The Plant is divided in to the following sections Brine Section,
Catholyte & Anolyte Handling Chlorine Liquefaction ,Hydrogen Bottling,
Caustic Evaporation & Flaking Hydrochloric Acid Synthesis Sodium Hypo
Chlorite.
52
53
Production process of viscose filament yarn
# Sources
Wood pulp is made of cellulose from the following trees.
Eucalyptus (South Africa)
Sprell (Canada)
Bamboo (India)
Department of production:-
(A) VISCOSE SECTION
The process is carried out in the following stages:
Conversion of wood cellulose into alkali cellulose i, e. mixing of
wood pulp with NaOH
Conversion of alkali cellulose into sodium cellulose xanthate.
Conversion of sodium cellulose xanthate into viscose solution.
Branded as ray one, the VFY is available in more than 400 shades. These
include natural whites as well as a wide array of colors, ranging from
purest tints through medium tones to vibrant deep shades;
Located at Veraval in Gujarat, VFY plant is the first in Aditya
Birala nuvo to be accredited with the ISO 9001 and the ISO 14001
certification. It also has the OHSAS 18001
Life at Indian Rayon. As a part of its backward integrated process, it has an
82125 tones caustic soda plant with membrane cell technology from UDHE
gmbh (Germany).
54
Recently Indian Rayon won the top rank award at the
national Energy conservation Awards 2006 presented by Ministry of power,
of India.
(B) SPIN BATH SECTON
Spin bath is quality section to spinning rayon yarn. Spin bath is an
important constitute for the viscose to be re-genarated in to cellulose.the
main composition of the spin bath solution acid(H2SO4) and sodium
hydroxide (NaOH) other composition is ZnSO4, Na2SO4, tempreture etc.
which constitute the spin bath solution and the sodiuam sulphate (Na2SO4)
is recive is a by
Sodium sulphate is by product which is requires 22 tones per day.
This by product Na2SO4 should be removed from spin bath solution and
spin bath solution is transferredto spinning section by total six drums out
of which two of them are in old spin bath dept. while other four are in new
spin bath dept.
(C) SPINING SECTION
In this section viscose solution from viscose section is directly
supplied through dye to spinning machine for bright and colored yarn.
Merging pump drives fixed amount viscose in one minute depending upon
the capacity of the pump. Viscose temperature is around 28 degree
centigrade. Spin bath is also following with high speed from the spin bath
section at 56 degree centigrade to spinning section. Viscose coming from
heat cons in the contect with spin bath congulation of viscose which takes
place to form yarn of particular denier.
55
(D) AFTER TRETMENT SECTION
Raw cake from spinning section is brought to A.T. section in raw cake
trucks. Here the raw cakes pass through 20 parts for 19 minutes each. In
these 20 parts the different machines are fixed in which the washing,
bleaching and draying are done by soft water. Various hydro extected
chemicals etc. are used to removed impurities, dust and dirt. Afterward the
cakes are dried in the drayer room by the air.
(E) TEXTILE SECTION
The dry cakes are now dry to wining. The yarn is in the form of
conesor, and hank time duration of coming depends upon the denier of
yarn. The textile departments place where the manufacturing process of
rayon yarn comes to an end. Although it comes under production
processes but its function is auxiliary and very important in nature.
(F) PACKING SECTION
After wining the cones and hank, they are sent to the pacing section
where they are visually check by the inspectors a grades are given as per
the quality.
At present cones are packed in cardboard boxes. Then the cartoons, which
are filled by inspection side; helpers, are first brought to the weighting
balance where the weight is balance as per the pre-determined standard.
After that a computer pacing slip is made having various necessary details.
On is paste on cartoon, second is kept inside the cartoon and third is kept
for record purpose.
56
After that the cartoon are steppd with Polly propylenetype. Finally
B.O.P.P. adhesive tape is applied at the joint of top flaps of cartoons. They
fully packed and sealed cartoons are sent to bonded stores room (B.S.R.)
for sales department to be dispatch.
The packing slip is having following details:
Name of the parts.
Date of packing
Quality grade an weight
Registered trade mark of the company
The color of cones and hanks
Denier
MATERIAL HANDLING
INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) is totally using the
automatic process for production, but at certain stage uses equipment for
the sifting of raw material. The company use trolley as an equipment for
material handling in its viscose section to brought up the wood pulp from
the storage department an in after treatment department to put the cakes in
washing and knitting. After the last stage of production, the final product
sends to the packing section with the help of trolley.
57
Many a times INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.)
uses
Conveyers
Rails
Crain
Trucks
For the supply of raw material to various departments.
The diesel power house of the INDIAN RAYON (A Unit of Aditya Birla
Nuvo ltd.) uses conveyer belts for the supply of coal that is import from
Bihar.
Where the other raw materials like wood pulp, sulphur etc. are brought by
lsnd route. I.e. rails and truck to the factory.
INVENTORY DEPARTMENT
Inventory dept. of INDION RAYON (A unit of Aditya Birla Nuvo Ltd.)
scientific mounting leval method. In this company, inventory control is long
process.
Any dept. that is in need of any material prepaire an indentcafter filing it is
sent to the purchse dept. of the company
While the placing the purchase order INDIAN RAYON (A Unit of Aditya Birla
Nuvo Ltd.)
58
Considers the following factors.
Old rate of the product
Lowest bids
Reputation of supplier
Delivery period
Payment terms
Technical evolution
After sales service
Performance guarantee
The above question are comparing on the basis of comparison chart which
they prepare with the help of all the information. The decision of purchase
is one by the authority. The purchase order is placed on the basis of
feasibility. So, we can say that INDIAN RAYON (A Unit of Aditya Birla Nuvo
Ltd.) applies integrated material management concept.
STORE MANAGEMENT
The store dept. of the INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.)
receives the raw material which was ordered from the supplier. This dept.
prepares good receipt note (GRN). One copy of GRN is send to that dept.
which has placed an indent.
Particular dept. approves the materials and sends requisition to store dept.
and collect the material. On the basis of GRN, final invoice is paid Account
dept.
59
INVENTORY CONTROL
“Plant maintenance ensures that all production facilities are in serviceable
condition at required time, causing no production hold-up, interruption, or
loss of individual efficiency for operation.‖
INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) follows word class
manufacturing policy (WCM) of plant maintenance, which it has adopted in
the recent years. However formally it was using total productive
maintenance (TPM) of plant maintenance.
The inventory control helps the company in forecasting the feature demand
of the goods as per the requirement of the production and the market.
The commonly used inventory control methods that a company use
are the EOQ and ABC
EOQ:- (economic order quantity)
In this method the feature demand of the inventory is been identified as
per the requirement of the industry, the key focus in this type of inventory
control method is the optimum utilization.
ABC:- (always better control)
In this type of inventory control method the name itself states the use
and potentially which lies in theirs method. In this method the goods are
divided in such a way that in response to its use and order and cost as the
goods are divided in parts as according to A.B.C.
60
QUALITY CONTROL
“Quality is an asset which may be offered to the potential customer of a
product or a service.‖
It mainly depend upon two factors:
1. product-service design
2. operating system-makes a product/provides a service
Quality Policy
We are committed to,
Meets customer ‗s expectation of quality an services in premium
segment.
Maintain high morale of employees.
Use eco-friendly technology and maintain pollution free environment.
Packaging
It includes the activities of designing and production the container for a
product.The container is called the package. In recent years, product safety
has also become a major packaging concern. Companies are also realizing
the power of good packaging to create instant consumer recognition of the
company or brand.
61
Packaging system INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.)
Cones (2 to 2.1 kgs each), Bobbins(2.5 to 2.7 kgs each ), Hanks,
Cakes
All wraped in transparent polythene sheets
Each cartoon to contain 24 cones
Best logistic management to suit the clients requirement and ensure
timely delivery.
Packaging procedure of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.)
The cartoons which have been filled by inspection side are first
brought to the weighing balance of packaging of 50 kg and than
passed to the computer slip.
Important details of slip are stenciled on the cartons in order to meet
excise dept requirement.
These cartons are than rechecked for weight, packing slip and
stenciling.
After polypropylene packing cartons are transported to store room
for sales dept.
62
63
ORGANIZATION STRUcture
Sr. Manager
Assistant
manager creditor
Assistant
Manager Cash
Assistant
Manager Salary
Officer Officer Officer Officer Officer
President & CFO Corporate
finance
Division
Sr. Vice President
(Finance & comm.)
Board of director
G.M. Finance
Executive president (Rayon Division)
Officer
64
Introduction
There are three key elements to the process of financial management.
1. FINANCIAL PLANNING.
Management to need to ensure that enough funding is
available at the right time to meet the need of the business. In the sort term,
funding may be needed to invest in equipment and stock, pay employees a
fund sales made on credit.
2. FINANCIAL CONTROL:
Financial control is a critically important activity to the help
the business ensures that the business is meeting its objectives.
3. FINANCIAL DECISION- MAKING
A key financing decision is weather profits earned by
the business should be retained rather than distributed to shareholders via
dividends. If dividends are too high, the business may be starved of
funding to reinvest in growing revenues and profit further.
65
CAPITAL STRUCTURE
Capital structure may be defined as the combination of debt and equity that
lead to the maximum value of the firm.
―Capital structure refers to the mix of long-term sources of funds such as
debenture, long-term debit, preference share capital and equity share
capital including reserve & surplus.
The company should planed and get optimum capital structure.‖
Fig no-15 Capital Structure
Particulars (Rs. In Crores)
2007-08 2006-07
Share Capital 95.01 93.31
Reserves & Surplus 3510.45 3026.29
Secured Loans 4507.65 4079.99
Unsecured Loans 2140.21 1381.60
Preference share capital 50.00 -
Share Capital of the INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd. Has
increase by 1.8% as compare to previous year. Company has also increase
reserves & surplus, secured loans, unsecured loans respectively, 16%,
10.48%, and 54.91% as compare to the previous year. Company has paid to
the preference share capital fully In this year.
66
CAPITALIZATION
From accounting point of view ―capitalization means accumulated funds
which have been invested for same business purpose to earn quite of
return‖
For the Co. the Book value and Real value of Share are two main
components or assessment of Co.‘ financial position which can be
calculated as per under.
Fig no-16 Chart of Capitalization
Year wise EPS Rs. In Crores
2007-08 15.96
2006-07 31.98
2005-06 26.11
2004-05 19.00
2003-04 18.59
2002-03 .71
2001-02 7.04
2000-01 11.44
1999-00 9.62
Book value per share is Rs 226
67
Book value = Equity share + Capital reserves & surplus
No. of Equity Shares
= 59.88 + 1294.18
5.98
= 226 Rs
The closing market price of the Co. per share is Rs 399.25 as on march-05
which is greater then its book value per share.
From this we can say that co. is facing under capitalization. The
above graph depicts that the co‘s earning per share has increased by
10.83% as compared to its previous year.
The reason for the increase in the value of Co. is
Increase in sales and profit.
Increase in price of yarn.
68
Leverage
The employment of and asset or source of funds for which the firm has to
pay a fixed cost or fixed return is termed as Leverage.
There are two types of leverages:
Operating Leverage
Financial Leverage.
FINANCIAL LEVERAGE:
The leverage associated with financial activities is called Financial
Leverage. It represents the relationship between the firms‘ earnings before
interest and taxes and the earning available for rdinary shareholders.
It is defined as the ability of firm to use fixed financial charges to magnify
the effects of change in EBIT on EPS
IR&IL Co. has posted a superior financial performance during the year
2003-2004. The revenue has grown to 1860.06 Crores against 1577.04
Crores in the previous year.
Financial Leverage = EBIT
EPS
= 164.73
157.08
= 1.05%
69
OEPRATING LEVERAGE
The leverage associated with the investment (asset acquisition) activities is
referred to as Operating Leverage. It is determined by the relationship
between the firm‘s sales revenue and its earning before interest and tax
(EBIT).
Operating leverage results from the existence of fixed operating
expenses in the firm‘s income stream. With fixed cost the percentage
change in profit accompanying a change in volume is greater than
percentage change in fixed asset.
70
Working Capital
Working capital concerned with the Management of current assets. It
is important and integral part of financial management as short-term
survival is prerequisite for long term success.
Concept of working capital
(1) Gross working capital
It refers to the firm‘s investment in current assets. Current assets are
the assets which can be converted into cash within an accounting year or
operating cycle.
(2) Net working capital
It refers to the difference between current assets and current
liabilities. Positive new working capitals arise when current assets exceed
current liabilities. It is negative in case of current liabilities are in excess of
current assets.
Working capital management consists of three main aspects
(1) Inventory Management.
(2) Receivable Management.
(1) Cash Management.
The divisional management of IR&IL Co. manages the working
capital within the broad framework laid by and with consultation of
Corporation Finance Division (CFD). Decision regarding the utilization of
the current assets is made in accordance with the policy of company.
The operating cycle can be said to be at eh heart of the need for working
capital.
71
RECEiVABLE MANAGEMENT
The term receivable is defined as debt owned to the firm by customers
arising form sale of goods or services in the ordinary course of business.
IR&IL Co. sells its products to the industries. So it needs to grant credit to
its buyer.
Receivable treated as marketing tool to aid the sale of goods as well as use
for protecting the customers form the competitor and attract the new
customers and thereby profit.
CREDIT STANDARDS
As per the industrial standard for rayon, the organization runs well on the
track of Average collection period.
But because of the core competition in the chemical market the avg.
collection period increased and reach near to the 25 to 30 days, so it can
conclude that organization investment in receivables is not very high.
The customers are paying its obligation to the organization in time. The
default rate is nearly zero in the organization.
CREDIT TERM
VFY = 15 days
Chemical = 45 days
72
The collection of the fund is done by HDFC Bank, which plays and agent
role. The avg. collection period for the account receivables between 21 to
27 days.
Total debt of company as on 31st March, 2005 is 260.90 crores
which have increased as compare to that of the last year‘s debt. i.e. 31st
March, 2004 was 186.14 crores. So, it can be said that debtors are up by
Rs. 74.72 crores. Major addition was on account of insulator domestic
marketing.
As a result of the above mention, there is and increase in the Net Sales of
the company by 9% as compare to that of last year‘s sales.
Receivables Turnover Ratio = Net Sales
S. Debtors
= 1860.62
260.90
= 7.13
73
Cash Management
Generally any organization holds the cash for Transaction motive,
Precaution motive, Speculative motive, Compensating motive.
The IR&IL Co. holds the cash only for the transaction motive. It holds the
cash for smoothing the day-to-day operation only. If there is surplus of
cash in the Co., it is transferred to the CFD while if there is deficit of the
cash in the organization, it borrows it from the CFD and also decision
regarding the investment of cash in to Marketable Security is done through
the CFD only.
CASH COLLECTION
IR&IL Co. operating in various geographical area of the country. It tries to
speed up the cash collection by decentralization with the help of ten Cash
collection centers all over the India.
CASH DISBURSEMENTS
The disbursement is one through centralized system by the organization.
The payment of the bill will be made from the central account (at division
place) and form the head office. So the Co. can enjoy the transit time delay
using the factoring.
74
Dividend Distribution
In IR & IL Co. the board proposed the dividend of Rs. 4.00 per share for the
year 2005-06. It is same as compared to previous year. Dividend payout
ration of 2005-06 is increase 3.44% as compared to previous year.
Fig no-17 Dividend Distribution
Year Dividend
Per Share Payout
(%)
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
5.75
6.25
6.75
5.00
4.00
1.00
3.00
3.30
3.75
4.00
4.00
16.70
15.20
15.55
17.46
28.25
(2.76)
28.88
45.47
24.05
20.58
24.02
Fig no-18 Graph of Dividend Distribution in Year wise
-10
0
10
20
30
40
50
1994-9
5
1995-9
6
1996-9
7
1997-9
8
1998-9
9
1999-0
0
2000-0
1
2001-0
2
2002-0
3
2003-0
4
Dividend Per Share
Dividend Payout (%)
75
Profitability Ratio
The profitability ratios are calculated to measure the operation
efficiency of the company. Besides Management of the company, creditors
and owners are interested in the profitability of the firm creditors want to
get interest and payment of principal regularly. Owners want to get a
required rate of return on their investment. This is possible when company
earn enough profit.
ROI (Return on Investment)
EBIT
ROI= * 100
Capital Employed
Year EBIT Capital Employed Ratio (%)
2005-06 161.48 1673.49 9.65
2006-07 164.73 1847.09 8.92
Gross Profit Ratio :
GROSS PROFIT
GPR (Gross Profit Ratio) = * 100
NET SALES
YEAR GROSS PROFIT NET SALES RATIO (IN % )
2005-06 10886 38555 28 %
2006-07 14059 44146 32 %
76
Return on Equity (%)
EBIT
ROE = * 100
EQUITY FUND
YEAR EBIT EQUITY FUND RATIO (IN % )
2005-06 6421 19217 33 %
2006-07 9328 20376 46 %
Operating Ratio :
PBIT
OR (Operating Ratio) = *100
NET SALES
YEAR PBIT
SALES RATIO (IN % )
2005-06 8971 38555 23 %
2006-07 12422 44146 28 %
77
Net Profit Ratio :
PROFIT AFTER TAX
NPR (Net Profit Ratio) = *100
NET SALES
YEAR PAT NET SALES RATIO (IN % )
2005-06 5460 38555 14 %
2006-07 7866 44146 18 %
CURRENT RATIO :
CURRENT ASSETS
CURRENT RATIO =
CURRENT LIABILITIES
YEAR C.A C.L. RATIO
2005-06 11005 3716 2.96
2006-07 12729 5218 2.44
78
Financial year 2007-08 (Rs Crore)
79
Profit and loss consolidated 2007-08 22006-07
Income
Income from operations 12,134.04 8,366.77
Other income 93.13 63.86
12,227.17 8,430.63
Expenditure
(Increase) / decrease in stocks (93.22) (53.84)
Cost of materials 2,261.79 1,962.69
Salaries, wages and employee benefits 1,995.42 1,262.80
Manufacturing, selling and other expenditure 3,921.53 2,600.36
Actuarial liabilities 3,040.39 1,519.04
Interest and other finance expenses (net) 425.02 363.33
11,550.93 7,654.38
Profit before depreciation / amortization
and exceptional items
676.24 776.25
Depreciation / amortisation 524.94 422.78
Marketing / technical knowhow expenditure
written off
Profit before exceptional items and tax 151.30 353.47
Less: loss/(gain) due to exceptional items 0.73 0.52
Profit after exceptional Items 152.03 353.99
Provision for current tax 103.58 114.58
Provision for deferred tax 45.57 18.37
Fringe benefit tax 11.84 9.26
Provision for tax for earlier years written back (35.13) (30.31)
80
Net profit before minority interest 26.17 242.09
Minority interest in the loss of consolidated
subsidiaries
(124.61) (38.34)
Share of profit / (loss) of associates - 0.46
Net profit 150.78 280.89
Basic earning per share 15.95 31.96
81
Fig no-21 Cash Flow
Financial year 2007-08 (Rs Crore)
Cash flow consolidated 2007-08 2006-07 2005-06
A Cash flow from operating activities
Net profit before tax 152.03 353.99 282.89
Add: adjustments for -
Depreciation 525.15 423.54 225.07
Change in the valuation of liabilities in respect
of life policies 3040.39 1519.05 1166.06
Provision for diminution in value of investments 3.16
Provision for ESOP 1.68 0.37 0.68
Marketing and technical know-how written-off - - -
Interest expenses (net) 425.02 363.33 103.83
(Profit) / loss on fixed assets sold (6.67) (1.79) 0.45
(Profit) / loss on sale of investments (17.91) (9.52) (3.23)
Dividend income (11.14) (21.10) (14.69)
Effect of exchange fluctuation on Foreign
Currency Translation Reserve (4.83) 27.26 -
Invsetment Income on shareholders Fund (23.02) (15.38) (9.36)
(Gain)/ loss on long term strategic
Investment/Transfer of Business (0.73) (2.53)
3931.10 2283.23 1468.81
Operating profit before working capital
changes 4083.13 2637.22 1751.70
Add: Adjustments for
Decrease / (increase) in trade and other (863.15) (620.75) 196.89
82
receivables
Decrease / (increase) in inventories (276.30) 13.69 (118.21)
Increase / (decrease) in trade and other
payables 690.46 379.46 (119.99)
(448.99) (227.60) (41.31)
Cash generated from operations 3634.14 2409.62 1710.39
Income taxes refund (paid) (net) (97.18) (92.81) (93.92)
Net cash from operating activities 3536.96 2316.81 1616.47
B Cash flow from investing activities
Sale / redemption / (purchase) of investments
(net) (3100.72) (1752.26) (944.83)
Interest received 47.60 21.86 10.39
Amount received on disposal of RST/
subsidiary 5.06 10.00 -
Dividend received 11.14 21.10 14.69
(Increase) / decrease in corporate deposit (85.08) 193.91 (193.95)
(Purchase)/ sale of fixed assets (2192.98) (1387.47) (412.63)
Investment in equity - (1317.56) (645.14)
Investment income on Shareholder's Fund 23.02 15.38 9.36
Investment in equity of subsidiaries (2.16) (630.18) (0.11)
Net cash (used in) / from investing activities (5294.12) (4825.22) (2162.22)
C Cash flow from financing activities
83
Proceeds from issue of preference shares 50.00 - -
Proceeds from issue of equity shares 1.70 - -
Proceeds from issue of share warrant 377.41 - -
Proceeds from issue of share capital to
minority 156.78 137.59 28.60
Proceeds from issue of shares under rights
issue - 9.81 -
Redemption of preference share in joint
venture - (153.50)
Security premium received 427.51 1223.69 0.06
Proceeds from / (repayment of) borrowings
(net) 1185.58 2428.34 710.59
Dividends paid (including tax thereon) (1.58) (107.44) (27.31)
Interest and finance charges paid (462.09) (368.30) (111.23)
Net cash (used in) / from financing activities 1,735.31 3170.19 600.71
Net increase in cash and equivalents (21.85) 661.78 54.96
Cash equivalents (opening balance) 815.85 154.07 88.72
Cash of BGFL subsidiaries and JV - - 4.23
Cash of IGFL and BGFL - 6.16
Cash outflow on sale of RST unit (0.01) - -
Cash and cash equivalents (closing balance) 793.99 815.85 154.07
84
Fig
no-22
Balanc
e
Sheet
Financial year 2006-07 (Rs crore)
Balance sheet consolidated 2007-08 2006-07
Sources of funds
Shareholders funds:
Share capital 95.01 93.31
Preference share capital 50.00 -
Share warrants 377.41 -
Reserves and surplus 3,510.45 3,026.29
4,032.87 3,119.60
Minority interest 174.41 143.27
Loan funds:
Secured loans 4,507.65 4,079.99
Unsecured loans 2,140.21 1,381.60
6,647.86 5,461.59
Deferred tax liabilities 226.19 179.64
Policyholders funds 6,484.67 3,761.95
Fund for future appropriation 25.88 0.03
Total funds employed 17,591.88 12,666.08
85
Application of funds
Fixed assets
Goodwill on consolidation 2,571.04 2,594.89
Net block 5006.48 3,396.11
Capital work-in-progress 441.32 381.45
5,447.80 3,777.56
Investments 7,367.02 4,543.39
Current assets, loans and advances:
Inventories 834.74 558.37
Sundry debtors 1,203.43 990.73
Cash and bank balances 793.99 815.85
Interest accrued on investments 13.63 10.27
Loans and advances 1,810.88 1,059.40
4,656.67 3,434.62
Less: current liabilities and
provisions
Current liabilities 2,300.89 1,607.85
Provisions 149.76 76.53
2,450.65 1,684.38
Net current assets 2,206.02 1,750.24
Total funds utilized 17,591.88 12,666.08
86
87
Organization Structure of Personnel Department
Personnel
Department
Vice President
Personnel H. R. D.
General Manager Manager
Chief Manager Sr. Officer
Welfare Disp. Labor Office
Dy. Manager Manager
Labor Manager Time Officer
Sr. Officer Sr. Officer
88
Introduction
Personnel department is a link between the top management and the
workers or we can say it acts like bridge between the employees and
employers.
With reference to INDIAN RAYON (A unit of Aditya Birla Nuvo Ltd.) the
personnel department of which is divided into i.e. HR & Training and the
other one is personnel department.
PERSONNEL DEPARTMENT
It mainly deals in the process of recruitment of manpower, and acts as a
consulting agent between the officers and the workers.
HR & TRAINING
It deals with the staff members of and organization and is accountable to
the vice president.
89
Manpower planning
"The process of determining manpower requirements and means for
meting those requirements in order to carry out the integrate plan of the
organization." : - Coleman
INDIAN RAYON (A unit of Aditya Birla Nuvo Ltd.) uses 'PURTA' which is
known as the system of control through budgets and standards in modern
cost accounting and management costing. 'PURTA' summaries the
objective of the whole organization.
In INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.)
The workers are divided into three categories.-Permanent, Badli and
Temporary.
INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.)Man Power Resource Is:
Permanent 2144
Badli 785
Staff 533
Total Manpower 3462
90
Fig no-23 HRP Process
Organizational Objectives & Policies
HR Need Forecast
HR Supply Forecast
HR Programming
HRP Implementation
Control & Evaluation
SURPLUS SHORTAGE
91
RECRUITMENT AND SELECTION
RECRUITMENT:
"Recruitment is process to discover the sources of manpower to meet the
requirement of the staffing schedule and to employ effective measures for
attracting that manpower in adequate numbers to facilitate effective
selection of and efficient working force."
The recruiting procedure of INDIAN RAYON (A unit of Aditya Birla Nuvo
Ltd.) consists of three segments.
Requirement of Workers
Requirement of executives and Managerial staff.
Requirement of technical Personnel.
So far as INDIAN RAYON (A unit of Aditya Birla Nuvo Ltd.) is concerned the
requirement procedure is directly depended upon human forces and is
related to the selection of well qualified personnel's.
SELECTION
The selection process is concerned with securing relevant information
about an application.
INDIAN RAYON (A unit of Aditya Birla Nuvo Ltd.)Recruitment and selection
procedure for blue collar force is as per the labor laws. For the recruitment
of the labour in the Co. it is essential that he should acquire the certificate
of ITI examination.
92
Workers are selected by the concern supervisors and the labour welfare
officers. Physical fittness, attitude for work etc.are concerned at the time of
selection.
With reference to the methode, the INDIAN RAYON (A unit of Aditya Birla
Nuvo Ltd.)Uses the indirect method more frequently for the recruitment of
its employees.
Sometimes the INDIAN RAYON (A unit of Aditya Birla Nuvo Ltd.)Also uses
the Third Party Method at the time of selection of high level personnel like
General Manager, Secretary and vice-president.
Application Receipt
Employment Test
Group Discussions
Final Interview
Medical Examination
Reference checked
Orientation
93
TRAINING & DEVELOPMENT
Training:
"Training is a process of learning a sequence of programmed behavior.‖ it
is a short-term process utilizing a systematic and organizes procedure by
which non-managerial personnel learn technical knowledge and skill of
definite process.
Training for the workers
The HR department of INDIAN RAYON (Aunt of Aditya Birla Nuvo Ltd.)
prepares schedule for training of the workers in order to make them
familiar with their task and to develop the job. The main purpose of the
company behind imparting training is to make the workers well converse
with the new technology.
Training for clerk and Technical staff
The INDIAN RAYON (Aunt of Aditya Birla Nuvo Ltd.) is not imparting any
training course as far as clerical staff is concerned. But the supervisors are
trained for:
Gaining knowledge of responsibility.
Cost control and Cost effectiveness
Knowledge of all disciplinary action
Development of eldership quail
94
The other purpose of INDIAN RAYON (Aunt of Aditya Birla Nuvo
Ltd.)Behind imparting training is:
To create awareness among the workers regarding the quality of
products and to improve knowledge thereby.
Enchantment of technical knowledge and various safety
measurement techniques.
To improve the discipline of the workers, good conduct and job
responsibility
-
PERFORMANCE APPRAISAL
It is the process of evaluating the performance and qualification of
the employees in terms of the requirement of the job, for which he is
employed.
INDIAN RAYON (Aunt of Aditya Birla Nuvo Ltd.) the management is
using the open system of studying performance appraisal system. When a
new candidate is recruited management examines his performance for two
years which is called as the apprentice period.
The performance appraisal system adopted by INDIAN RAYON (Aunt
of Aditya Birla Nuvo Ltd.) is traditional one. It conducts the performance
appraisal programmed in the of May every year and all the employees are
divided into two categories .i.e. staff members and operating workers.
95
TIME KEEPING SYSTEM
Time is precious and we cannot get the time once passed so it is not
only the responsibility of an individuals but only the responsibility of the
industries to make best use of the time.
The company has time keeping system.
There are 3 shifts at Aditya Birla Nuvo Ltd. They are as under:
Shift a 7: 00 AM - 03: 00 PM
B 3: 00 PM - 11: PM
C 11:00 PM - 1: 30 PM
General shift 8: 30 AM - 5:30 PM
Lunch break 12: PM - 1: 30 PM
Thus, for each and every employee working hours is eight hours. The
employees are given leave as per the company's rule the overtime payment
rate is double than usual payment rate.
96
Wage and Salary Administration
"Wage and salary administration‖ refers to the establishment and
implementation of sound policies and practices employee compensation.
Wage Administration of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.)
It includes wages of operating manpower. Wage sheets are prepared
by Time Office and payment is done on the basis of Time Rate. In case of
late comers, the part of the amount from their wages is deducted. Payment
of wages to the workers is done dept. Wise and the period of payment is
normally between 4th and 10th of every month.
The state Govt.has revised rates of minimum wages for contract
labour w.e.f. 01.04.204 to 30.09.2004 as under and these rates are supposed
to be followed by the INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.)
Basic/day
(rs/ps)
DA/day
(rs/ps)
Total
(rs/ps)
Unskilled 71.18 10.40 81.58
Semi-Skilled 72.45 10.40 82.85
Skilled
73.71 10.40 84.11
97
Trade Union
―A Trade union is a continuous association of wage earners for the
purpose maintaining or improving the conditions of their working force‖
– Webb
Nature of Trade Union
(1) A combination of workers or employees.
(2) Combination could be permanent or temporary.
(3) To regulate relation among workmen, and employers.
In IR&IL Co. there are more than 4000 employees in the organization and
for the state of the protection of their rights that have formed their trade
union. Presently there are three trade unions.
1. Indian Rayon Employee Union (IREU)
2. Indian Rayon Karmachari Mandal (IRKM)
Which is associated with the Hind Mazdoor Sabha Karmachari
Mandal?
3. Rayon Mazdoor Sangh (RMS)
This is associated with Bhartiya Mazdoor Sangh
Not only the workers are the member of trade union but the staff
employees have also got the membership of trade union. The strength of
IREU is about 60% of total working force, the rest of two uses to follow the
decision and negotiations made by the IREU.
The advantage of registered trade union is that police can‘t arrest
any representative of trade union. Henceforth company has been keeping
a good relation with trade union.
98
Industrial Relation
“Industrial relation is the part of management which is concerned
with the manpower of the enterprise whether machine operator skilled
workers or managers‖
– Bethel Smith.
Industrial Relation covers the following areas
(1) Collective Bargaining.
(2) Role of Management unions and government.
(3) Machinery for resolution of individual disputes.
(4) Individual grievance and disciplinary policy and practice.
(5) Labour legislation.
(6) Industrial relations training.
As it is useful for the organization, the IR&IL Co. has also developed good
and appreciable industrial relation.
There exist three Trade Unions all over the unit that are:
1. Indian Rayon Employee Union
2. Rayon Mazdoor Sangh
3. Indian Rayon Karmachari
The last major strike in this unit was in 2001 after that no strike has been
occurred till now. This strike was settled down by the Memorandum of
Settlement which was made by the Co. along with the Labor Union. The
strike was basically in reference to the wage payment of the worker and
bonus.
99
Grievance Handling
―Any real or imagined feeling of personal injustice which an
employee has concerning his employment relationship‖
By: - Keith Davis.
Course of Grievance
(1) Concerning wages.
(2) Concerning supervision.
(3) Concerning working conditions.
(4) Collective bargaining.
To handle and solve such grievance the IR&IL Co. have special procedure:
1. In IR&IL Co. the workman will take his grievance in oral or written to
his immediate superior, such as section head. In case if the
complaint is against the immediate supervisor it should be written
and submitted to the next higher authority.
2. If the decision of his immediate superior on the next higher authority
is not satisfactory, he has to forward to the manager of the
department.
100
Employees Services & Welfare Activities
To motivate the employees and to increase their morals it becomes very
necessary for every company to perform the activities which can be helpful
in the achievement of this motive and there by the efficiency and
satisfaction of the employee can be raised accordingly.
In this regard IR&IL Co. provides the following facilities:
QUARTERS FACILITLY:
The IR&IL Co. gives quarter facilities to its employees – the
staff as well all as the workers. Basically this quarter a facility is given on
the basis of the category of employee.
The management staff and the executive level employees are
also given the housing facility but it would be with some extra and specific
facilities.
RECREATIONAL AND ENTERTAINMENT FACILITY:
The company has its won auditorium in which it conducts
different types of programs and games on different type of occasions
especially for its staff members. It also provides many type of sports
facility to its workers. There are lawn tennis courts, table tennis, cricket
grounds, etc. It has competitive players units in its cricket team. The
company also arranges Rayon Cup cricket tournament every year between
the very large companies in Saurashtra.
101
WELFARE CENTER:
The centre was established in 1993 for the benefit of workmen
and their families. The facility includes games like volley ball, tennis,
carom, chess, reading room and library. For ladies embroidery and
tailoring classes are conducted as a continuous activity.
INDEPENDENCE AND REPUBLIC DAY CELEBRATION:
The company celebrates the Independent & Republic Day
every year. On this day the program of the national flag hosting is followed
by sweet distribution to all the employees of the company.
CREDIT COOPERTIVE SOCIETY:
Members are given loan facility up to and amount of Rs. 60000
at the nominal interest rate. This is managed by cooperative society.
DEATH RELIEF FUND:
In case of death of any employee while working in the
company, management provides his family with Rs. 4000 as funeral
expenses. The company also deducts Rs 10 of all the employees and
collects about Rs. 50000 and provides to the dead person‘s family. And the
company itself also gives Rs 1400 along with the amount received from
United India Insurance Company.
102
SCHOOL FACILITY:
It has set up a school both English Medium as well as Hindi
Medium. English Med. Is up to 12th standard having both Science and
Commerce stream and affiliated with Gujarat Board (GSEB). Every year
2000 approx. number of students is admitted over here out of which more
than 50% of the students are employees‘ children.
Whereas Hindi Med. School has been set up four years back.
It is the only Hindi Me. School in the entire district. It is upgraded by one
standard every year. 50% of the school fee is reimbursed by the company
of the employees children.
LIBRARY FACILITY:
Company is having its own library which contains useful
books related to all the sectors of the study and magazines of all kinds. It
also provides internet facility to its employees.
BIRLA MANDIR:
It is been set up by Birla Group for spiritual and religious
activities. It is one of the popular land mark and religious spot in Veraval.
LABOUR WELFARE FACILITY:
Welfare activities are one of the major activity, which is closely
related with IR&IL Co. the company is doing various types of welfare
activities.
103
CANTEEN FACILITY:
The company has followed the Factories Act that reveals that
wherever there are 250 or more workers working, there should be a canteen
facility for them. This canteen facility runs on no profit no loss bases. It
provides snacks, tea and coffee at nominal rate to the employees.
FIRST AID FACILITY:
IR&IL Co. had its won dispensary in the factory, besides first
aid box, which is being provided in every dept. the dispensary is taking
nominal fee from the employee and its family. The co. had its own
Ambulance too.
REST ROOM FACITLITY:
IR&IL Co. has provided a rest room where the employees used
to take rest and can have their lunch during their intervals
VOLUNTARY RTIREMENT SCHEME (VRS)
VRS would be shortly introduced at IR&IL Co. for the
retirement of the surplus manpower. This would be applicable to both staff
and the workers of the company provide with employee is above 40 years
of age or have minimum of 10 years service.
104
PROVIDENT FUND SCHEME:
Provident Fund Scheme of IR&IL Co. for the employees is as
per the rules and regulations of the Govt. The provident fund refers to eh
compulsory saving of the employees from their own salary. The company
follows the law of 1952 in terms of PF Scheme. According to this scheme,
employees will get the amount which he has saved at the time of his
retirement in terms of PR.
The company is generally regular and depositing with the
appropriate authorities‘ undisputed statutory dues including PF. Out of
this PF fund, the employee can get the loan or can withdraw the required
amount form it whenever he is in need. Round about 10% of the amount
from the employees‘ salary is reserved as PF.
GROUP PERSONAL ACCIDENT POLICY (GPAP):
1. This policy is for tall the staff members.
2. This policy covers the damages of every accidental
injury while on employment.
3. The premium amount shall be borne by the Company.
WORKMEN CONPENSATION:
All the workmen of the company are compensated for
damages caused by any injury while performing his job, as per the
provisions of Workmen Compensation Act 1923.
105
Future Plan of Action and Achievements
Future Plan of Action
Development of spatialityyarn
Eco and energy auditing
Improvement in intrinsic quality of yarn
Developing new shades of spun ye yarn
Development in the quality of existing range.
Achievements
Rayon division has begged ― Gold Trophy‖ for highest export from
synthetic and Rayon Textile Export Promotion Council.
The ― Certificate of merit – 2003 ― of national energy Conservation of
VFY.
―First Prize‖ of National Energy Conservation Award -2003 for chlor
– Alkali sector both from ministry of power , New Delhi.
The prestigious ― Greentech Environment Excellence Silver Award
2002-03‖.
In chlor-Alkali sector for outstanding achievement in the field of
environment from greentech foundation, New Delhi.
The Gujarat safety Council has conferred upon the ―Certificate of
Honor 2002‖ upon the devision base on its safety record and
performance.
The caustic division has achieved the greentech award in 2004.
106
Conclusion
The Indian Rayon division is the large scale manufacturing
organization and successful player in the VFY and chemical products. The
companies have the strong financial structure and have a good reputation
in the market.
The Rayon Division is one of the 12 Divisions of Indian Rayon,
located in Veraval, Gujarat. The main product of the Rayon Division is the
Viscose Filament Yarn apart from chemicals like sulphuric Acid, Carbon-di-
sulphide, which are both consumed in-house and Sodium Sulphate, which
is by Product.
Company also doing its business with the global market. In India,
the share of Indian rayon in the total export of VFY is nearly 42 %.
The company follows the accounting laws and standard in its
accounting. The accounting department for the internal and external
disclosure of the accounting statement regularly prepares the books of
accounts.
The company manage its working capital very effectively. For cash
management it has Corporate Finance Division. It collects the cash from
various centers all over the India. While for the payment are paid through
two centers.
Production management deals with decision making related with
production process, so that the resulting goods or service is produced
according to specification, in the amounts and by schedule demanded and
at minimum cost.
INDIAN RAYON has a separate HR department. The welfare activities done
for their employees are remarkable.. The HR activities under taken by HR
department are the best.
107
Recommendation
The process of improvement is and unending journey.World class
performance is a moving target that requires constant attention and efforts.
The management of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd
) is well organized and has established INDIAN RAYON (A Unit of Aditya
Birla Nuvo Ltd ) as a quality based, High speed, High performance, cost
effective organization.
The co. is having and excellent management –worker relationship
with transparent and adaptive management approach.
This experience from my organization study it can be said that the
co. is constantly hardworking for the improvement of its product quality
through the adoption of world class manufacturing policy.
Thus it is a truly highly bench marked company. It does not require
any recommendation. Only one thing the co. should pay more attention
towards its human assets and technology.
108
Bibliography
Annual Report of Year 2004
Financial Statements of Rayon Division, IR&IL Co.
Aditya Kiran, Birla Group Publication
Financial Management By I.M. Pandey, Khan & Jain
Facts and Figures of Birla Group Publication
Web Sites:
www.rayone.com
www.adityabirla.com
www.indianrayon.com
www.google.com
Intranet of the IR&IL Co.
