A PROJECT REPORT ON

AMUL INDUSTRIES PVT. LTD.

PREPARED BY

SURESH D. SOLANKI

MBA – (Sem – III)

ACADEMIC YEAR

2007-2008

UNDER THE GUIDANCE OF

Dr. HITESH J. SHUKLA

SUBMITTED TO

R.D.GARDI DEPARTMENT OF BUSINESS

MANAGEMENT,

SAURASHTRA UNIVERSITY, RAJKOT.

1

PREFACE

Knowledge is one of the most important Treasures for any person. The

amount of the knowledge in this world is a doubling every five years and with

the end of the 21st century it is now expected to double every two years. So if

I plan to be in this knowledge explosion means that I would be facing with

unprecedented challenges and opportunities. How well I address that I would

depend upon, in large part on my ability to adapt to the continuing changes.

Journal work like this gave an exposure to the practical and real life

experience of the modern market.

Theories don’t teach unless accompanied by the working in original

situation. This project report was carried out according to the course of MBA.

2

DECLARATION

I, Mr. SOLANKI SURESH D. here by declare that this project is the record of

authentic work carried out by me, in well reputed company AMUL

INDUSTRIES PVT LTD. during the academic year 2007-2008, under the

guidance of Dr HITESH J SHUKLA faculty of R. D. Gardi Department of

Business Management. This is my real work and has not been submitted to any

other university or institute towards the award of any degree.

Date: -

Place: -

(Student Name)

SOLANKI SURESH D

3

ACKNOWLEDGEMENT

Through this acknowledgement, I express my thanks towards all those

people who helped me for the preparation of Summer Project Report, which

has been a learning experience.

I am extremely thankful to Ms. Nisha Korvadiya (HR executive) & Mr

Manhar .Parekh(manager P& Administration), Rajkot for getting me

acquainted to the company and giving me the golden opportunity to carryout

this interesting training at Amul industries pvt. Ltd.

I would like to thank Mr. Parag Solanki (Quality Control dept.) Mr. M.

R. Trivadi (Account dept.), Mr. Raju Chudashama (Marketing dept.), Mr.

Sharad Thakkar (Exprot Marketing dept.), Mr. Manish P. Vekariya

(Purchase dept.), Mr. Bhavesh Vora (Production dept.) for helping me to do

my project successfully.

I am grateful to each one working in the organization for their humble

and generous behavior towards me. I am sincerely thankful to the team of

AMUL INDUSRIES PVT. LTD.

In addition of allowing me to industrial training of the company and study

of the organization and various aspects of managerial functions, they provide

me many details. In the preparation of this study report. I take this

opportunity to thank my professor Dr HITESH J SHUKLA faculty member

of the institute, R. D. Gardi department of business Management, who has

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accompanied me and the providing me all the facilities to make the industrial

training more fruitful.

Last but not least I am also grateful to my friends and all those who

directly or indirectly helped me completion of the project.

CERTIFICATE

This is to certify that Mr. Suresh D. Solanki studying in M.B.A. (SEMESTER -3)

of R.D. Gardi Department of Business Management, Saurashtra University has

successfully completed the training & project report work conducted in our

company during the stipulated period from 22nd April to 02nd June 2007. He was

found to be very active, sincere and hard working during his project work. I

hereby wish him a great success for his all-future activities and for a bright career

as a real professional.

For Amul Industries Pvt. Ltd.

Nisha Korvadia

HR Executive

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CONTENT

1. INDUSTRY OVERVIEW 7

2. COMPANY OVERVIEW

3. PRODUCTION DEPARTMENT

4. QUALITY CONTROL DEPARTMENT

5. MARKETING DEPARTMENT

6. FINANCE DEPARTMENT

6

7. HUMAN RESOURCE DEPARTMENT

8. FINDINGS & CONCLUSION

9. BIBLIOGRAPHY

INDUSTRY

OVERVIEW

7

8

History of Industry

The Indian Auto Component Industry had its small beginnings in the 1940s. If the evolution of this industry is traced in India, it can be classified into three distinct phases namely:

1. Period prior to the entry of Maruti Udyog Ltd (1940s to 1984)2. Period after the entry of Maruti Udyog Ltd till economic liberalization

(1984 to 1991).3. Period post Liberalization (1991 onwards).

The period prior to the entry of Maruti Udyog Ltd was characterized by low technology and assured business for most of the auto-component manufacturers who used to supply to a handful of players in the Indian automobile market like Hindustan Motors, Premier Automobiles, Telco, Bajaj, Mahindra & Mahindra etc.

With the entry of Maruti in the 1980s, the auto ancillary industry in the country showed a spurt in growth. This period witnessed the emergence of a new generation of auto ancillary manufacturers who were required to meet the stringent quality standards of Maruti's collaborator Suzuki of Japan. The good performance of Maruti resulted in an upswing for the domestic auto ancillary industry. It was also during this period that auto components from India began to be exported.

With the liberalization of the Indian economy in 1991 and coming of many foreign automobile manufacturers like Hyundai, Daewoo etc., the auto ancillary industry witnessed huge capacity expansions and modernization initiatives in this period. This also led to a tough competitive scenario, which saw a lot of consolidation, technological collaborations and equity partnerships within the industry and with leading global players abroad.

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Today, many international and local automotive players are increasingly sourcing components from Indian automotive component manufacturers. As the demand for manufactured automotive components with the tag "made in India" increases, the automotive companies have to further enhance the quality of their products and operations as global players require quality components at reasonable prices and at precise time durations. This has made the automotive component manufacturers in India to be under severe pressure to meet such onerous demands. Hence, to meet such demands, today all the major players in this industry are having one or the other logistics management system.

The performance of auto ancillary sector is closely linked to those of the auto sector. Demand swings in any of the segments (cars, two-wheelers, commercial vehicles) have an impact on auto ancillary demand. Demand is derived from original equipment manufacturers (OEM) as well as the replacement market. Replacement demand accounts for close to 57% of total demand, while OEMs account for 27%, with exports accounting for the balance 16%.

According to the Indian auto component industry body ACMA the auto components industry in India is dominated by around 500 key players, which contribute more than 85 percent of India's production.. The automobile sector is cyclical and dependent on the growth of the economy and improvement in infrastructure. Factors like increased public spending, favorable interest rates and general improvement in per capita income points towards higher demand for automobiles in the future.

The domestic auto component sector - an integral part of the manufacturing business - is on the fast track, clocking 34 per cent growth in the past three years. This has been propelled by strong domestic demand and an indigenization drive. India has joined the billionaire club on the export front, riding on the outsourcing wave.

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Performance of industry

The Indian automotive component industry has witnessed a CAGR of 20 per cent in the last five years (between 2000-2005), according to a McKinsey-ACMA report on the Status of the Indian Auto Industry. In 2005, the auto components industry was worth over US$ 10 billion, which is expected to nearly double every four years, to 18.7 billion in 2009, and reach US$ 40 billion by 2014.

According to estimates by the Automotive Component Manufacturers Association (ACMA), domestic production increased by 17 per cent in 2005-06 to $10 billion, while exports jumped by 30 per cent to $1.8 billion. "The industry has grown at a CAGR of 20% between 2000 and 2005 with total output in value terms touching US$ 10 billion in 2005. Exports have grown at a much higher rate of 34% CAGR during the same period with output touching US$ 1.8 billion," say data published by independent market observers too.

The reduction in excise duty on small cars affected in the 2006 Budget had created positive market sentiment towards auto-ancillary units, especially the ones having exposure to small cars producers. The reduction in peak customs duty levels and the reduction in import duty on ferrous and non-ferrous metals should also provide some relief to the auto ancillary producers.

The Indian auto industry produces an estimated 9.7 million vehicles, propelled by a surging domestic demand, which has pushed the growth rate of the auto industry to 20% in the last couple of years. The domestic industry is set to grow manifold over the next few years as estimates point out that the Indian auto components industry will invest about $1 billion towards ramping up capacities and acquiring newer technologies every year for the next 10 years.

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Huge business potential

Exciting times lie ahead for the Indian automotive component industry. The industry is transforming, and the boost in demand will see the emergence of several new players in the industry. The vast market for auto components, and the diverse products and technology involved ensures a place and role for many.

According to Baba Kalyani, chairman, Bharat Forge Ltd, the auto-component business is huge and what players like us from the developing world are trying to do is to get a part of that business. And that part will never be more than 20 per cent. But that 20 per cent is big business. The auto-component business that is favorable for India totals to some $380 billion. "Even if you get 10 per cent of that, it is $38 billion! It is a hell of a lot more than what we are doing as a whole country," he stated.

There is lot of positive factors - India has emerged as an outsourcing hub for auto parts for international companies such as Ford, General Motors, Daimler Chrysler, Fiat, Volkswagon, and Toyota. India enjoys a cost advantage with regard to castings and forgings. The manufacturing costs in India are 25 to 30 percent lower than its western counterparts. India's competitive advantage does not come from costs alone, but from its full service supply capability.

Besides the burgeoning demand from global auto majors, there is also the domestic car industry, which is growing at a spanking rate of over 16 per cent, driven by a rising consumer base and affordable loans. Auto sales within India are expected to touch 10 million by 2009 and Indian auto majors have registered a growth of over 24 per cent in vehicle exports in September 2006 alone. The industry displays tremendous potential in generating employment and boosting entrepreneurship in the country. The spate of new investment plans announced by global and domestic automobile manufacturers promises the emergence of India as a global hub for auto components.

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Major Players

Asahi IndiaBharat ForgeExide IndustriesMicoSundaram ClaytonSundaram FastenersSona Koyo SteeringJay Bharat MarutiBharat SeatsAmara Raja BatteriesSubrosMotherson SumiAmtek AutoEL ForgeTVS Autolec

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HISTORY AND

DEVELOPMENT OF

AMUL INDUSRIES PVT. LTD.

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COMPANY OVERVIEW

INTRODUCTION: -

Amul Industries is a part of 89 Million Group known as Adico-Galaxy group of industries. Started in 1965 today the group is employing about 1200 people and 15 companies located in Rajkot, Pune & Hyderabd and is engaged in various engineering products like Connecting Rods, Crank Shafts, Anti Friction Roller Bearings, Industrial Chains, Single & Double Cyl. Diesel Engines, Forgings, Machine Refurbishing etc.

Amul Industries started its functions in 1988 as a small scale industry; today we are manufacturing 175 different types of Connecting Rods and are considered one of the biggest Connecting Rod manufacturers in India. Within a short span of 15 years the company has been able to touch turn over of 40 corers with more than 400 people working with it.

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Our Connecting Rods range Our Connecting Rods range from 0.3 Kg. to 12 Kgs. in weight and from 90 mm to 310 mm in center distance. Material range includes Steel & Aluminium in both forging and casting condition. We are also gearing up our selves for processing Connecting Rods of unconventional materials.

Our list of customers include almost all automobile giants in India including Cummins India Ltd., L & T John Deere Ltd., Tata Motors, Ashok Leyland Ltd., Mahindra & Mahindra Group, Simpson & Co,. Swaraj Engines, Eicher Tractors as well as Motors, Hero Motors, Greaves Ltd., Same Engines, New Holland Tractors Ltd., Escorts Tractors etc. Also to include are the customers from other segments like Generators, Air Compressors, Hermetically Sealed Compressors, Diesel Engines and Hydraulic Motors. Ingersoll-Rand, Kirlosker Oil Engines, Voltas, Tecumseh Products are to name some of them.

Our Products are also exported to overseas OEMs like Iveco-Italy, Lombardini Italy, FMC-USA, and John Deere-USA etc. We are also exporting our products to more than 20 countries in Europe and Middle East Countries for Heavy & Medium Commercial Vehicles as well as compressors.

Our disciplined system of working, state of the art technology and high degree of quality controls have fetched us ISO 9002 (1994), QS (1998) as well as TS 16949 accreditations.

Our manufacturing facilities are backed up with latest & precision measuring systems. This facility is studded by specially designed UTM, Micro Scope, Spectro Scope for Chemical & Physical testing and Latest CMM (Three Co-ordinate Measuring Machine), ScanMax, Marposs Final Inspection Gauge (To check 19 parameters of Con Rod at a time), Electronic Torque Tester, Nut Runner, and Calibration Masters for Dimensional Checking.

We are also equipped with Connecting Rod Fracturing (for Casting Connecting Rods) and Crank Shaft Radius Rolling facility. We enjoy the status of being the only supplier having these facilities in India.

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We are also equipped with Connecting Rod Fracturing (for Casting Connecting Rods) and Crank Shaft Radius Rolling facility. We enjoy the status of being the only supplier having these facilities in India.

 

BASIC INFORMATION OF THE

COMPANY

NAME & ADDRESS OF THE UNIT: PLANT / HEAD OFFICE

ADDRESS

AMUL INDUSTRIES PVT.LTD.

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2- Aji Industrial Estate, Rajkot - 360 003.Gujarat - INDIA.Phone0281-2387898/2387037Fax:0281-2787762Email :info@amulind.com

PUNE OFFICE

"Safalya" - 1103/A-9,Adarsh Colony,Opp. Vidya Bhavan High School,Near Model Colony Telephone Exchange,Shivaji Nagar,Pune - 411 016.

MUMBAI OFFICE

A/5, Anat Nagar,Near N.L. High School,4, S.V. Road, Malad (West)Mumbai - 400 064.

CHENNAI OFFICE

A/2, Ansari Flat No. - 8,Madley Road, T - Nagar,Chennai - 600 017.

DELHI OFFICE

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64, Dedoot Apartments,D Block, Vikaspuri,New Delhi - 110 018

HYDERABAD OFFICE

8-2-293/174/a-27B.N.Raddy Colony,Road No. - 14, Banjara Hills,Hyderabad - 500 034

GROUP OF COMPANY:

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ENGINEERING COMPANIES

1. Amul Industries Pvt Ltd -1988 2. Adico Spares Pvt Ltd – 19653. Forge & Forge Pvt Ltd – 1965 4. Advin Diesel Pvt Ltd – 19745. Advance Diesel Engines Pvt Ltd – 19946. Avirat Engineering Co. – 19827. Galaxy Bearings Ltd – 19908. Galaxy Chains Pvt Ltd.9. Adico Forge Private Ltd. – 200510. Amul Crank Shaft Pvt. Ltd. – 2005

NON ENGINEERING COMPANIES

1. Galaxy Hotels2. Galaxy School Systems3. Modern Construction Co.4. Galaxy Stone Mining5. Galaxy Decore Pvt. Ltd.6. Galaxy Granites7. Galaxy Leathers

MISSION OF THE COMPANY:

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Our mission is to provide total customer satisfaction with best

quality.

VISION OF THE COMPANY:

To be the “NUMBER ONE” connecting rod supplier in world in next

five years.

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YEAR OF ESTABLISHMENT: 1988

INVESTMENT: In 1988 Rs. 1 Lack.

PROMOTERS OF THE CO.: Mr. Chandubhai Patel.

Mr. Suresh Patel.

Mr Girdharlal Veljibhai.

Mr. Nipul Santoki.

AUDITORS: Atul bhai Kalariya & company.

BANKERS: State bank of Saurashtra,

HDFC Bank,

Standerd Chartered Bank,

Corporation Bank,

REGISTERD OFFICE &

CORPORATE OFFICE:

AMUL INDUSTRIES PVT.LTD.

2- Aji Industrial Estate,

Rajkot - 360 003.

Gujarat - INDIA.

Phone0281-2387898/2387037

Fax:0281-2787762

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Email :info@amulind.com

FORM OF THE

ORGANIZATION: Private Limited Company

The major functions are grouped under 5 departments. The departments

are:

1. Production Department

2. Marketing Department

3. Finance Department

4. Human Resource Department

5. Quality control Department.

SIZE OF THE

ORGANIZATION: small Scale Unit

BOARD OF DIRECTORS:

Chairman & managing director, Mr. Chandubhai Patel.

Managing director, Mr. Suresh Patel.

Director, Mr Girdharlal Veljibhai.

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Executive director, Mr. Nipul Santoki.

Organization Chart:

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AWARDS, RECOGNITION & ACHIEVEMENTS

1 Best Supplier award by Cummins

2. Best Supplier award by LG

3. Best Supplier award by Mahindra & Mahindra

4. Best Supplier award by Tekum sekh

5. Supplier performance award 2006-07.

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PRODUCTION

DEPARTMENT

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PRODUCTION DEPARTMENT

1.1 Introduction

1.2 Production Process

1.3 Types of plant layout

1.4 Plant Layout

1.5 Selection of Location

1.6 Material handling system

1.7 Production planning & control

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1.1 Introduction:-

Production is the basic activity of all the industrial units. All other activities revolve around this activity. We can say that Production activity is nothing but the step conversion of one form of material into another either chemically or mechanically. The end product of the production activity is the creation of goods or services for the satisfaction of human wants. The production activity is process by which the goods are produced or utility enhanced.

According to E Buffa,

“Production is the process by which goods or services are created.”

The whole process is semi automatic, where process operating persons closely monitor the whole plant operation through visual. Semi automatic machinery ensures the steady and smooth operation of unit.

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1.2 PRODUCTION PROCESS:

Different process can be done according to different product at Amul Industries Pvt. Ltd. There are different products like:a) Connecting roadb) Cam shaft

PROCESS:-

A. Connecting rod

A. Grinding

B. Drilling

C. Boring

D. Rib milling

E. Cap spot face

F. Final parting face grinding

G. B.E. pre boring (Ruf boring)

H. Bolt hole pre drilling

I. Bolt hole final drilling

J. Tapping

K. Oil hole top face

L. B.E. final boring

M. B.E. face & chamfer

N. Oil hole drilling

O. B.E. face groove

P. S.E. heating

Q. 1st & 2nd face

R. Bush boring

S. Rod opening

T. Rod notch milling

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U. Weight greding

     

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2. CAM SHAFT

A. Drilling 7.1

B. Drilling 6.1

C. Profile turning

D. Notching

E. Drilling 8.1

F. Ruf greding

G. 5mm cotation

H. Punching

I. Hardening

J. Straitening

K. M greding

L. Final Greding

M. Hardness testing

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33

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1.3 LAYOUT:-

1. Process layout:-

In this type of layout all machines performing similar type of operation are grouped at one location. In this layout several products may share a machine to make its full use. In this type of layout, the process rather than the product has the dominating role. This type of process is more suitable for job order type of production. In such production the operation differs from product to product.

2. Product layout:-

In this type of layout the machines are arranged in sequence as required by the particular product. This is also known as “The Product Line Layout”. In this layout one product goes through all the machines lined up, in the manufacture required by its manufacture. In this type of layout, the product is dominating over the process. Product is more suitable for continuous flow production with few items of production.

3. Mixed or combined layout:-

Generally pure process or pure product is not found in practice. So a proper combination is made in order to best suit the production process. A proper compromise reaping the benefits of both is made possible in this type of layout.

4. Job shop layout:-

In this type of layout there is processing of job production and hence the system is very flexible. The layout depends upon the analysis of the universe of orders received and is a very complex affair.

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1.4 PLANT LAYOUT OF AMUL Ind.:-

Process layout:

AMUL Ind. is engaged in producing automobile parts which is used in automobile industries The Production process of AMUL Ind. involves producing of many parts i.e. Connecting rod, cam shaft etc. In producing automobile parts the raw materials goes through different process step by step in order to get converted into final product.

As Amul practices continuous flow of production and the process is arranged based on the next process, so it is organized in a process layout form, which facilitates the production of Automobile parts in a systematic way.

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1.5 Selection Of Location:-

Location of the plant is important for any industry because it is helpful to reduce cost. If industry located in well facilitate area than you can get all facility immediately. Rajkot is such a place where you can get all facility like transportation by road, railway and airport and also get technical and non-technical manpower easily. So here maximum utilization of resource is possible.

Factors Affecting Layout Of Company:

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

1. Power:

We know that power is basic element for running smooth activity for any industry. So generally people choose such a place where power is easily available

2. Labor: On growing modernization of plants, the requirement for skilled man power has increased then that of unskilled man power. The cheap availability of labour from the near by areas has proved to be great help for the company.

3. Transportation: - It is a very important thing to be kept in mind while deciding the location. It cost widely affects the overall cost. Rakot is centre area which is connected through National highway 8-B and 8-A and Airport facility also available so it is helpful to reduces cost of transportation for the company.

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1.6 MATERIAL HANDLING SYSTEM

In a manufacturing firm, the raw materials are obtained from the suppliers and are stored in the storeroom. These raw materials are then issued to purchase Department and are moved inside the plant from one process to another till they are converted into finished goods.

Thus material handling involves movements of materials from one place to another for the purpose of processing. They are moved either manually or mechanically. The job tackled by material handling equipment like lift and trolley etc.

FACTORS AFFECTING MATERIAL HANDLING

1. Types of the product

2. Plant layout

3. Material handling equipment etc.

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1.7 Production planning & control.

Production Planning and control are 2 important aspect of production. Production planning is prerequisite of production control. Production control cannot be imaged without production planning.

Production planning is the function of management to look ahead, anticipate difficulties and take steps to remove obstacles before they are materialized. Where n unit is constantly evaluated and compare with the standards set in advance.

At AMUL Ind. production planning is jointly done by Production and marketing department on the basic of order. Production department plans production and its operations. And on the basic of production planning, department and strict control on the production activity and continuously evaluated the performance.

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QUALITY CONTROL

DEPARTMENT

40

"Quality is an asset which may be offered to the potential customer of a product or a service."

Quality is an important dimension of Production & Operation Department. It is not enough for company to produce the goods or services. But company has produce product with good quality. Because people wants qualified products. The consumer of the final product of company wants certain quality of products. If consumer is not satisfy with the product of the company then it may happens that company loose the customers. So company has produced qualified products.

For this quality company use the quality control department to check the quality of the product. That’s why quality control department is most important.

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QUALITY POLICY

Amul Industries is committed for achieving “Total Customer Satisfaction” through

1. Consistently supplying quality products to our valued customer in time.

2. Continuously improve on quality standards by implementing process controls & prevention techniques

3. Improving manufacturing facilities.This commitment is met by nurturing quality culture & team spirit.

Amul has also quality control department. In this department quality of the entire product is checked. If there is something defect then it sends to back for to improve the product.

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Major function undertaken by AMUL:

1. RECEIVING INSPECTION:

In this first step all specification according to product drawing check like dimension check.

2. INPROCESS INSPECTION REPORT:

In this process they checking randomly any piece at every hour to know product is produced at uniformly.

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3. FINAL INSPECTION:

In this step finally inspection done visually by checking physical parameter like product band, width, central dimension etc.

4. LAYOUT INSPECTION REPORT

In this step randomly three to five pieces selected for various parameter check when it goes from forging to dispatch.

5. STUDY PROCESS CONTROL

There are mainly two processes

1. Control process for minor variation

2. Control process capability for major variation.

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Marketing

Department

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2.1 Introduction:

Definition:

Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges (with customers) that satisfy individual and organizational objectives.

Need for Marketing of automobile parts:

Some of the factors like competition create awareness of product to customer, market penetration, to achieve goal for selling in particular segment, to establish good image of brand of product to customer, etc are driving force behind marketing task.

As additional companies are coming up in the other region, there is stiff competition. This companies need to adjust themselves to changing situation by upgrading the technology, widening product range, developing new market segments, improving existing, channel of distributions etc.

Essentials of automobile parts Marketing:

o Focus on brand name

o Effective public relations

o Price differentiation

o Strong distribution network

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2.2 Organization chart of Marketing Department:

M.D.

47

DEVELOPMENT MARKETING

REGULAR MARKETING

MARKETING DEPARTMENT

2.3 Market Segmentation:

A company, which decides to operate from some part of market normally, can not serve all the customers in market. To maximum utilization of available market & resources to the sales the company adopts the market segmentation policy.

AMUL Ind. adopts market segmentation on following basis.

1. Heavy motor vehicle

2. Sport utility vehicle

3. Car segment

4. Diesel engine

5. Earth mover

6. Tractor segment

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2.4 Price Mix:

Price is the only element of marketing mix that produces revenue. So we can say that price is one of the most important element determining company’s market share and profitability.

When it comes to setting up the price, it is the most crucial decision. Price decides the market share and profitability. So any mistake in deciding price will affect too much to unit.

AMUL Ind. Follows pricing policy as mention below:-

Cost Oriented Pricing:

It is the simplest method for price. It also says as cost plus & target pricing. AMUL Ind. keeps the following point in mind while deciding on cost base.

1. Raw material

2. Machining cost

3. Nut bush charges

4. Packing cost

5. Transportation cost

6. Other cost.

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2.5 Channel Management

According to Bucklin, “A channel of distribution shall be considered to comprise a set of institution which performs all of the activities utilized to move a product and its title from production to consumption.”

When producer relinquishes some control over how and to when products are sold to marketing intermediaries, it is said to be the channel of distribution.

AMUL Ind. is mainly concern in manufacturing of automobile parts so there is no requirement of door-to-door marketing. Here AMUL Ind follow business To business marketing means they use zero level system.

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2.6 Promotion Mix:

AMUL Ind. promotion is combination of two strategies i.e.

A. Sales Promotion:

Definition:

To communicate with individuals, groups or organizations to directly or indirectly facilitate exchanges by informing and persuading one or more audiences to accept an organization's products.

Objectives to be achieved by the AMUL Ind. through sales promotion are:

1. To stimulate the buyer for purchasing the product.2. To consider the type of market, competitive condition of market.

With the help of various auto fair AMUL Ind. make sales promotion.

B. Advertising:

In the present period of business management, advertising is the most important media to stay in the market. To earn profitability in business it is very necessary to advertise our product of doing its publicity. Through advertisement one can differentiate its product from the product of the other company.

Advertising is primarily a private enterprise marketing tool; it is used in all countries of world. Advertising is the cost effective way to disseminate messages, whether it is to build brand preference for all over the world to motivate developing nation. There are various advertising media like magazine, newspaper, radio, television, outdoor display, direct mail, cards, catalogs, aerators, etc.

AMUL Ind. adopts ECMA as their advertising tool.

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LIST OF CUSTOMER

1. Tata Motors Ltd.

2. Mahindra & Mahindra Group(Mumbai, Nagpur, Igatpuri, Zaheerabad)

3. Simpson & Co. Ltd.

4. Eicher Group (Pithampur, Alwar)

5. Same Deutz - Fahr India (P) Ltd.

6. Greaves Cotton Ltd. (Tractor Unit)

7. Swaraj Enginer Ltd.

8. Kirloskar Oil Engines Ltd.

9. Tecumseh Products (India) Ltd.

10. INGERSOLL-RAND (India) Ltd.

11. Lombardini India Pvt. Ltd.

12. Cummins India Ltd.

13. Hero Motors Ltd.

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Human Resource

Management

53

INTRODUCTION:-

Manpower is one of the important aspects to be taken into consideration. If a company has highly advance technology for the production unit but does not have well skilled labor to operate the machineries then all the technology is a waste. Even after having highly advanced technology the unit cannot excel in its production objectives. Human resource management deals with the human aspect of the organization.

Personnel management is management of man power is being defined by various experts as follows:

By Adovin Flippo:- “It is basically concerned with two important function is managerial function, under which planning, organizing, directing, and controlling are included and also operating function under which procurement development, compensation integration and separation are included.

Thus in short, it is concerned with the obtaining and maintaining of satisfactory and satisfied work costs. The main objectives of personnel department are:

1. To select the personnel on need.2. Effective utilization of personnel in the achievement of organization

goals.3. To safeguard the interest of labor and management by securing the

highest level of mutual understanding and goodwill among those sections in the company which participate in the manufacturing process?

4. To maintain harmonious relations between workman & management.5. To sustain & improve work condition so that the employee nay sick

to their jobs for longer period.

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Now a day in India, the importance of personnel has been identified and realized and therefore maximum efforts are being done to develop it and thus Amul has maintained a separate department having separate nice president.

OBJECTIVE OF HRM:

SOCIATEL OBJECTIVE:

This refers to be ethically and socially responsible to the needs and challenges of the society while minimizing the negative impact of such demands upon the organization.

ORGANIZATIONAL OBJETIVE:

This refers to recognize the role of HRM in bringing about organizational effectiveness. HRM is not an end in itself. I is only a means to assist the origination with its primary objectives.

FUNCTIONAL OBJECTIVE:

It refers to maintain the department contribution at a level appropriate to the organization’s needs. Resource are wasted when HRM if it her more or less sophisticated to suit the organization’s demand.

PERSONAL OBJECTIVE:

It refers to assist the employees in achieving their personal goals, at least in so far as these goals the individual’s contribution to the organization. Personal objective if the employees must be met if worker are to be maintained, retained and motivated.

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Organization of Personnel Department

AMUL Ind. consists of line and staff type of organization. Personnel Department is under direct control of senior general Manager who is responsible to managing director in AMUL Ind. Here the main functions followed by personnel department are:

o To identify the actual requirement of personnel and than fulfilling it with appropriate and efficient personnel.

oTo lay down the recruitment procedure.

oTo conduct interview for selection of efficient person.

o To deal with the matter relating to transfer and promotions.

o Wage & Salary administration.

o Job description

o To maintain the personnel record.

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Recruitment, Selection, and Placement:-

Recruitment can be actually defined as “the generation of the application for specific post” thus it is a searching of prospective candidates, a process of getting potential employees who are willing to apply for the job in the company.

In India, the skilled employees are not available vary easily, one can not find a right person at right time, at right place.

When vacancy is found in any of the organization department, the department heads fills up a requisition form in which all age, duty, every qualification, and experience is being sent to the personnel department and after it is being approved is being advertised on the notice board of unit or in newspaper, magazines, etc. while selecting the means of communication for recruitment emphasizes is given on targeting proper personnel.

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1. Recruitment process.

The requisition of skilled and unskilled personnel is being fulfilled through advertisement in newspaper or sometimes by personnel recommendation by the present employee for his relation or by supervisors. Skilled persons are also obtained through some technical institute like ITI etc.

AMUL Ind. follows step by step process for recruitment of manpower. First candidate fill up man power acquisition form than personnel manager and general manager check criteria like qualification, experience etc. and if they satisfy than they call for personnel interview. Many times they recruit manpower from database.

In AMUL Ind. same recruitment process follows for helper through general manager.

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3. Selection Procedure for workers.

The company has adopted two methods of selecting the essential workers in the organization. One of them is to call the candidates for personnel interview and to know his basic knowledge, attitudes regarding the job and some other basic testing. This is a kind of preliminary interviews.

In AMUL Ind. for selection of technical staff first they take their practical test and if they satisfied than company take their feedback and for non-technical staff they check computer literacy and English fluency.

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4. Induction:

Once the candidate is selected, he has to go for the probation (induction) perform, which is generally for one year. To facilitate the selected candidate to have introduction with the organization, its structure, behavior, rules, regulation, the induction period is very necessary. The employee has to fill various forms regarding PE, EST, etc and is provided with “Induction kit”, containing the information as above. He is also being given the general idea a responded to his duties, work, responsibilities, for which he has been selected. The reason behind induction program is to make the employee well set with new environment speedily.

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Training and Development

Training means “Any process by which the aptitude, skill, ability of a person to perform a specific job can increase”.

AMUL Ind. has given specific importance to training and development program because,:

o It helps in personnel development, prevention from accident to make healthy environment, efficient manpower planning to raise in stopped of work.

o It helps in yielding higher productivity with the use of efficiency.

o It also brings acceptability of changes.

The seminar and training program one also held within the campus premises. The training needs one determined by the departmental needs and the concerned officers.

Development is a related process but can be rather be more important for managerial level employees, who require much of theoretical knowledge and for a long duration of period.

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Job description:

Job Description is a written documentary outline of the principle facts about individual jobs. In short, it refers to the data obtained through of the analysis process.

Personnel department of AMUL Ind. describes job as means of giving job related information and guidance to candidate for which he/she is selected. This is done to avoided confusion in duties and responsibilities of different employees.

When any candidate is selected at that time information is given to him about his/her job. This information includes following points.

a) Working condition

b) nature of the job

c) About his/her duties and responsibilities.

d) Relation with the job.

e) Tools and equipments involves in doing job.

f) About superior from whom he/she will have to control and guide.

g) About sub-ordinate to whom he/she will have to control and guide.

In AMUL Ind. there is no policy of following written job description as they don’t feel it important. Generally it is being performed orally.

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Promotion and Transfer Policy

Promotion means to uplift of an employee within the organization and advance him in the direction of top level. Thus it means to increase in authority, responsibility, status, salary, etc. in AMUL Ind. there is one specific criteria and system and program to transfer the person from one job to another higher job. In normal courses employees are promoted on the basis of seniority and work performance for helper and behavior, education and work experience for official staff. Their skills and performance within the organization in job. So here the promoting system is subjective not the objective. This policy increases the interest and efficiency of the person who is working in the organization.

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Performance Appraisal System

Performance Appraisal is a continuous process where by each employees’ performance is to be assessed and systematically reviewed by his superiors and guidance given to help the employee to overcome the short coming and increase his effectiveness in the job. The system is quite equal in various administrative decisions as selection, training, promotion, transfer, increment, etc. by this way the organization can make the best use of its manpower.

Purpose of Performance Appraisal at AMUL Ind.:

a) Evaluation of Performance of work assigned.

b) Plan for training & development need.

c) Determined suitability for promotion

d) Recommendation for salary review.

e) To serve as a controlling/measure.

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Wages and Salary Administration

For a Personnel Department wage administration is the most important decision for the personnel manager. It has initial relation with job evaluation department. There wage and salary is the compensation paid to the employees in monitory terms on a record of their work. In addition to wage and salary, other payment as house allowance is also paid.

In AMUL Ind. wages & salaries are paid on 7 th day of every month. This unit is making cash payment.

A separate salary call has been maintained to the salary records. The amount of salary paid depends on the post of the employees.

Provident Fund Scheme

Provident fund is a statutory obligation of cost of the employees by the act. Any employee who has 120 days of continues job, a financial scrutiny on the part of employees, after retirement from job. It is applicable to the unit which engaged more than 50 employers within its organization.As par company act 1956, AMUL Ind. also provides facility of Provident fund to their Employee.

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Grievance Handling Procedures:

“Complains affecting one or more individual workers in respect of their wages, payment, overtime, leave, promotion, work assignment, working condition and interpretation of service agreement with constitute grievance.”

According to Amul it is our best policy that in our organization grievances are never happened. If this type of situation occur in organization we can solved it within our four walls.

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Trade Union

Trade union is a completely voluntary association. It tries to improve relationship between employees and management.

There is no trade union available in AMUL Ind.

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Personnel Record:

In Amul personnel department maintains personal file of each employees of the company. In this file necessary details regarding the person are kept at Amul has introduces a modern method of keeping records of personnel. The data regarding the details of each employee is fed into the computer and stored, but in case it gets deleted then Amul also maintains hard copy, the file is being kept under the control of personnel department in the following sequence.

1) Name of Employee

2) Employee Number

3) Designation

4) Department

5) Permanent and Local address

6) Application form

7) Interview letter

8) Appointment letter

9) Medical fitness certificate, qualification and experience

10) Background and other personal information like birthday etc.

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Purpose of maintaining personnel records:

a) To supply the information required by government agencies.

b) To conduct research in the field of industrial relation.

c) To enable personnel manager to propose training and development programmers.

d) To review and revise scale.

Personnel Policy:

a) To select proper personnel on need bases and its effectiveness utilization in achieving goals.

b) To safeguard the interest of labor and management by searching the highest level of mutual understanding

c) To advice and assist for high moral and better human values by sustaining and improving the conditions which has been established so that employees may stick their jobs a longer period.

d) To maintain harmonious relation between workman and management

e) To enable employees to enjoy a life through active participation in the recreation activities.

f) To fulfill legal compliance in time and maintain good relation with government authorities, other agencies and local bodies to enrich companies vision and mission.

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Employee Welfare:

The profitability and productivity of any organization depends upon the industrial relation, who means the extent of relation between administers and employees of the unit.

The management of AMUL Ind. wishes to inside employee to his organization and also they provide many benefits to the employees which are as under.

AMUL Ind. Possesses good industrial relations. All the employees are quite satisfied with wage rate and other facilities offered by the organization. The unit provides the beneficial activities to each of the employees and his family member as mentioned.

A. Medical Facilities:

AMUL Ind. has Tie up with one private hospital and when any employee is sick and injured, goes to hospital and gets the necessary treatment.

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In case of accident, the company pays the full expenditure, incurred for the treatment of workers. The accident was occurred within the organization, while performing duty then the workers will get salary too for the days of rest advised by the doctors.

B. Leave facility:

a. Festival Leave: All the employees and staff get festival leave.

b. Sick Leave: The unit grants sick leave to the employees. He can take leave for 20 days and time during a year.

c. Casual Leave: Amul procure 2 days as a casual leave.

C. canteens Facility:

a. Canteens facility is provided to office staff people.

b. Three time tea provided for all the worker per day.

D. Other Facility:

a. .Education facility to employee family.

b. Entertainment Facility.

c. Festival celebration.

d. Tour.

e. Yoga classes

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FINANCE DEPARTMENT

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4.1 Introduction:

It is said, “Finance is the arms and legs of business “. A potential and capable management can run the department very effectively. In finance department each and every decision should be taken in such way that every pie of money should be utilized in adequate manner.

In AMUL the finance department is handling by two managers. One is account manager and other is finance manager under control of M.D.

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4.2 Organization of Finance & Account Department:

Finance department

Account manag Finance manager

Assi. Staff Assi. Staff

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4.3 Financial Planning:

Financial Planning means planning of finance. In the planning of finance not only planning is done for spending the money but also planning is done for finding and evaluating source of finance.

As per Government rules and regulations AMUL Ind. has the financial year from April to March and on that basis at the year, Balance sheet is prepared and net profit is find out.

Finance Department of AMUL Ind. explains financial planning as systematic arrangement of financial resources of the company in order to reach the current & future finance requirement. It consists of budgetary control, profitability planning, sales & cash budgeting.

Sources of funds in AMUL Ind. are:

1. INTERNAL SOURCE:

Share capital Reserves & surplus.

2. EXTERNAL SOURCE:

Secured LoansUnsecured Loans

It is tried to collect the fund at very cheap rates & utilized in the best possible manner. For best utilization of funds, AMUL prepares two types of plan. Two are as below:

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A. SHORT TERM PLANNING

Financial planning is done for less than once in a year, so it is known as short-term planning.

AMUL does it annual planning and quarterly basis they compare actual result with standard which predetermined and than find deviation and try to solve for it by many ways like.

1. Increase production capacity to increase sales.

2. Control on rejection.

3. Control of idle machine.

4. To improve the market condition.

B. LONG TERM PLANNING

Planning done for more than one year then it is called long term planning.

Amul’s financial year is April to march so; Amul generally does its long term planning in the month of April. Amul does its financial planning on yearly, two yearly, and five yearly.

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4.4 Capital Structure:

The capital structure is made of debt and equity securities, which compromises a firm’s finance of its assets. It is permanent financing of firm, represented by long term’s debt plus preferred stock plus net worth.

Capital Structure of AMUL Ind. is as:

Particulars Rs.

31-03-2006

(A) Share capital 30,000,000

(B) Reserve & Surplus: 49,224,410

(C) Loans & Funds

Secured loan 154,282,283

Unsecured Loan 122,385,067

TOTAL 355,891,760

Last two years Performance: in Rs.

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Particulars 2005 2006

PBDIT 49767480 81705290

Profit before Tax 13161340 34199828

Profit after Tax 8586767 22023680

AMUL INDUSTRIES PVT.LTD.BALANCE SHEET

PARTICULARS MARCH’ 06 MARCH’05

1] SOURCE OF FUNDS a) Shareholder’s funds Share capital 30,000,000 30,000,000 Reserve funds 49,224,410 27,200,730

b) Loaned funds Secured Loans 154,282,283 93,241,376 Unsecured Loans 122,385,067 122,517,674c) Deferred taxes 11,919,945 12,193,721

367,811,705 285,153,5012] APLICATION OF FUNDS

d) Fixed assets 154,778,101 121,702,865

e) Current assets, Loans & Advances Inventories 120,680,587 101,710,154 Sundry Debtors 246,085,757 165,344,604 Cash & Bank balance 4,955,647 4,087,856 Loan & advances 37,026,723 24,341,018

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408,748,714 295,483,632 Less: Current liabilities &

Provisions Current liabilities 178,524,426 127,032,996 Provisions 17,190,684 5,000,000

195,715,110 132,032,996 Net Working Capital 213,033,604 163,450,636

367,811,705 285,153,501

Amul Industries Pvt. Ltd.Profit & loss Account as on march 2005-06

PARTICULAR MARCH ’06 MARCH ‘05

[1] INCOME

Gross Sales 878,582,854 633,842,543 Less: Excise duty 98,444,285 79,488,758 Net Sales 780,138,569 555,353,785 OTHER INCOME 1,904,177 2,407,612 STOCK VARIANCE 11,660,029 1,713,13

793,702,775 558,474,534

[2] EXPENDITURE: Material consumed & 640,701,834 453,261,886 Direct taxes Personnel expenses 25,045,868 22,781,091 Adm. & selling expenses 46,247,783 32,664,077

711,997,485 508,707,054 PBDIT 81,705,290 49,767,480 Less: Interest 28,234,339 21,622,087 Depreciation 19,271,123 14,977,957

Miscellaneous 6,096 47,505,462 36,605,140

PBT 34,199,828 13,161,340 Less: Provision for tax

Current tax 11,850,000 2,900,00

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Deferred tax (273,776) 1,752,986 FBT 490,684 Short taxation provision 109,240 178,413

NET PROFIT AFTER TAX 22,023,680 8,586,767

Balance brought forward from previous year 21,730,544 13,143,777

TOTAL 43,754,224 21,730,544

RATIO ANALYSIS:

[1] GROSS PROFIT RATIO:

The ratio establish relationship of gross profit with sales to measuresthe operating efficiency to the firm and to reflect its pricing policyThe gross profit by sales.

Gross profit ratio of 2005-06 Gross profit ratio of 2004-05

gross profit gross profitNet sales Net sales

81705290 49767480780138569 55535378510.473177 8.9614011

A high ratio is an indication of good management. A relatively low ratio isIndication of lower profitability.

Amul industries pvt. Ltd. Was the sufficient gross profit ratio

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[2] NET PROFIT RATIO:

The Ratio measures the relationship between net profit and net salesof the firms obtained through divided by the net profit by net sales. It indicates the proportion of the net profit after deducting all the expenses including tax

Net profit Ratio of 2005-06 Net profit Ratio of 2004-56

Net profit Net profitNet Sales Net Sales

22023680 8586767780138569 555353785

=2.8230472 =1.5461796

The net profit margin indicates the management abilities to insufficient Profit to sales. A high ratio ensures adequate return to owner and also enables firmsTo with stand adverse economic condition.

In Amul Idustries Pvt. Ltd. They have low ratio of the net profit, So we cansay that there highly direct expenses due to this expenses their net profit ratio wasVery low.

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[3] DEBTOR TURN OVER RATIO

The debtor turnover ratio indicates the number of times or the leverage thatdebtors turnover ech year. The debtor turnover canbe calculated by deviding total sales by the year and balances of debtors.

Debtor turnover ratio of 2005-06 Debtor turnover ratio of 2004-05

Sundry Debtor X 360 Sundry Debtor X 360Total sales Total sales

246085757 X 360 165344604 X 360878582854 633842543

=100.83383 days =93.909849 days

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[4] CURRENT RATIO

The current ratio express relationship between current assets and current liabilities and can be calculated y dividing current assets by current liabilities

Current Ratio of 05-06 Current Ratio of 04-05

Current assets Current assetsCurrent liabilities Current liabilities

408748714 295483632195715110 132032996

2.0884883 2.2379529

The current asset ratio measures the short term solvency of the firm.In a sound business the current ratio is considered ideal as a one. If currentratio islower than short term solvency of the firm is not in a position to meet its current liablity in time.

In Amul Industries Pvt. Ltd. The current ratio is higher thanthe standard ratio

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4.6 Management of Fixed Assets:

Fixed assets are the tangible assets, which cannot be turned into cash on short period of time. Management of fixed assets is the most important decision in the field of finance for any organization and especially in cement industry, which has its most of investment in fixed assets.

Company having the following investment in fixed assets:

Particulars Rs. (In

Crores)

Building 39151122.17

Furniture & fixture 12731217.53

Land 2943086.10

Plant & machinery 257446920.06

Vehicle 5209067.77

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Capitalization:

Capitalization refers to the decision regarding the total requirements of the long term funds. Any imbalance between realization value of assets and total capitalization i.e. long term funds results is over or under capitalization.

Over Capitalization:

Over capitalization means real value of shares is higher than book value. It occurs when the realizable assets are less than the long term funds of the company.

Under Capitalization:

Under capitalization occurs when the real value of the shares is less than the book value. It occurs when realizable values of assets are more than the long term fund of the company.

AMUL is under capitalization this reflect the progressive and healthy stock of the company.

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1.8Working Capital Management:

Management of Receivables:

In the present period of the competitive market to increase sales to meet competition it has become necessary to provide credit facility but it is also essential to receive the bills as speedily as possible.

Generally AMUL Ind. allows credit for 75 to 120 days.

Management of Inventories:

Primarily executives in production, purchasing and marketing department take decisions relating to inventories. Usually purchasing shapes Raw material policies & production department, work in progress is influenced by decision of production department and the production & marketing department executives shape finished goods policies. The finance manager has the responsibility to ensure that inventories are properly monitored and controlled.

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FINDINGS

My visit to AMUL Industries Pvt. Ltd. has become the one memorable thing and as well as useful also .I never forget it and I really feels that AMUL Industries Pvt. Ltd. is the NO.-1 Connecting rod manufacturing company in India. This training helps me a lot to get the practical knowledge of the organization. Every people peon to manager helps me to know me to know the company and also help in prepare the project. It was a nice experience and I never forgot it.

From the study of the company AMUL Industries Pvt. Ltd. we can say that the future of the company is bright. It is not new comer in the market at present. That why market share of company is very good comparing to the other auto ancillary manufacturer. If they are providing good & more facilities to the consumers continuously then the consumer can be easily attracted & they are able to get additional market share of auto ancillary industry.

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So here we can say that Amul industries Pvt. Ltd. Is an enterprise which expanded very well. If we show the success story of Amul than we can know the what they achieved and how they achieved. Their success story describes their effort. Amul started their business in 1988 with only Rs.1 lack as a partnership and today it is working as a Private limited company as a market leader of connecting rod manufacturing company.

BIBLIOGRAPHY

A. Reference Books:

o Production Operation Management: By S. N. Charry

o Finance Management: By Khan and Jain

o Human Resource Management: By C.B. Memoria

o Marketing Management: By Phillip kotler

B. Internet:

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1. www.amulind.com 2. www.google.com 3. www.chacha.com 4. www.mahalo.com

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