Project On Ambuja Cement

AN INDUSTRIAL REPORT ON

GUJARAT AMBUJA CEMENT LTD. IS SUBMITTED TO

THE BHAVNAGAR UNIVERSITY OF BHAVNAGAR

PREPARED BY

GUIDED BY

Bhadani Viral

Nidhi Dave

S.Y.B.B.A

(LECTURER)

ROLL NO: - 136

S.S.C.C.M

Swami Sahajanand College of Commerce & Management Affiliated By Bhavnagar University Bhavnagar. (Gujarat)

Batch 2007-2010

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3

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PREFACE Now a day in modern business there is requirement of high skill. And skill is referced to the practical as well as theoretical knowledge and to improve skill both are important at high rate in the business. And in S.Y.B.B.A I get the chance to improve my skill on the way of study. I am really thankful to “Bhavnagar University” because they included one of the different subjects with the other six subjects. And the subject is “FIELD PROJECT IN BUSINESS” as per the Bhavnagar university in S.Y.B.B.A the student have to collect the information, and understand process of three department like finance department, human resource depart department, marketing department, production process and get a training after choosing a one company. So, as a student I select “Gujarat Ambuja Cement Ltd.” Which is situated at Kodinar? I tried maximum as my level to collect information of all the department of the company "GUJARAT

AMBUJA CEMENT LTD".

Like finance department, human

resource depart department, marketing department and production process. And after complete this project I really understand the field work is really very important in the business as well as in study to improve our skill. During the project time I give maximum attention to understand function of management.

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ACKNOWLEDGEMENT

I am really heartly thankful to our management of S.S.C.C.M of the Bhavnagar because without their guidance I can not able to complete and submit my project within the time period. I am also especially thankful to Principal Miss Rachana Dhruv, Bakshi sir and Dhawni mam who provide very nice guidance to full fill my project.

And as my duty I can not forget my duty to thankful to “GUJARAT AMBUJA CEMENT LTD” company which is situated at kodinar, who provide me better & latest information about all the department and process of all departments. I am also thankful to branch of Bhavnagar, approved by ambuja cement. Ltd. Because it is the link between us and “GUJARAT AMBUJA CEMENT. LTD” .and it really works as a chain between us and “GUJARAT AMBUJA CEMENT. LTD”.

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No

7

Particular

Page No:

1

General Information.

7 to 19

2

Personnel Dept.

20 to 31

3

Marketing Dept.

32 to 44

4

Finance Dept.

45 to 62

INDEX of general information

SR. NO.

1 2 3 4 5 6 7 8

PARTICULAR Introduction

PAGE NO. 9

History of of the unit

10

development & Achievement of the unit

11

Size of the organization

13

Organization structure

13

Manufacturing process & product Performance chart of production

14 18

Time keeping system

19

GUJARAT AMBUJA CEMENT LTD.

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1. INTRODUCTION It is says that as the famous proverb “NEED IS MOTER OF INVENTION”. As the starting time of the earth, the man was live in jungal, after that because of some invention he found cottage and he use it as their house. After that he made a house by using brick, sand, and clay. After that time man makes great invention and it is CEMENT. And it is also known as the great revolution in the earth.

GUJARAT AMBUJA CEMENT LTD. was set up in 1986. The main purpose of cement is construction of houses and buildings. Because of cement it is possible to build up one floor to hundred floors. Once found of cement there are arising thousands of company every after short time. And in it is one of the best company of the world. And it is started in 1983. And now the details of the company are as so on …………

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2. HISTORY OF THE UNIT History:History means the pass events of the unit Gujarat Ambuja Cement Ltd., (G.A.C.L.) it is handled by Sekhsaria & Neotia Group. Which has launched in 1883? The project was decided to locate at Mahuva in Bhavnagar District and unfavorable circumstance the location is change and it is establish in some other place. And it is finallyestablish in the place at Vadnagar, Taluika Kodinar in Junagadh District. . Gujarat Ambuja Cement Ltd. is a Public Limited Company. It purchased their new land for factory building and housing colony. They were also motivated by the co-operation of G.E.B. who agreed to provide 19 MVA power for the plant. Even our Railway provides transportation services between Kodinar to Vadnagar plant. The construction of entire plant commenced in March 1985 and completed in August 1986. The company started its commercial production in 1986. As passing of the time, the golden period came for the Ambuja came into being "GUJARAT AMBUJA CEMENT LTD" (G.A.C.L.). They developed its other branches in our country India. And it is great part of Indian economy. Their plants are……………………

NO.

1 2 3 4 5

NAME OF PLANT

PLACE WERE SITUATED

Gujarat Ambuja

Kodinar (Gujarat)

Him Ambuja Cement Ambuja Guambuja (line 1) Gujambuja (line 2)

Darlaghat (Himachal Pradesh) Roopnagar (Punjab) Kodinar (Gujarat) Kodinar (Gujarat)

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OBJECTIVE OF COMPANY: The management of Gujarat Ambuja decided some objectives to become topper in the market. And the objectives are……………


Better quality then other company.
Fair returns to share holders.
A higher productivity to cover maximum market.
Maximum customer satisfaction.
Clean & healthy Environment for employee’s growth.
Try to lower pollution to fulfillment of social responsibilities.

3. DEVELOPMENT OF THE UNIT To decrease the transportation cost, they made a plat form on the sea at Muldwarka, which 7 Kms. away from Kodinar

So that they export

cement on the way of sea. Only the purpose of selling in other country.

INNOVATION OF PLANT: To being echo friendly "GUJARAT AMBUJA CEMENT LTD" . Installed pollution control equipments, by M/s. ABB & M/s. Thermex. The plant achieved 148% productivity with lowest consumption of raw material & electricity after innovation of plant. GACL's first production - that was in 20th Sep. 1986 and the cement grade was 33 grade cement which has comprehensive strength in 550 kg/cm2 & by the passing time they have change technology of production & nowadays they are producing 53 grades with 700 kg/cm2 comprehensive strength.

AWARDS: The company has achieved lot of National awards for quality management every efficiency & productivity , pollution control etc…

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• Achievement of the AMBUJA CEMENT LTD.

Year 1989-90

Awarded By

Awarded For

The Economic Times Hayward Best Corporate Performance Business School Association of award

1989-90

under

India

category.

National productivity Council

Certificate

Municipal

of

Merit

for

Productivity in the Cement. 1990-91

National productivity Council

Second Prize for productivity in the Cement Ind.

1991

Govt. of India

National Award for the best trade name.

1991

Gujarat pollution control board

First

prize

for

Environment

Management -1991 1992

Trade leader's club – Madrid, International Award for the Best Spain

1991-92

1991-92

Trade Name – 1992

National Council for Cement & National Award for best Energy Building materials

performs. 1991-92

Bureau of Indian Standard

Rajiv Gandhi National quality award

1993

Bureau of Indian Standards

Quality Systematic certificate IS – 14002-1986 ISO – 9002 -1987

1992-93

National productivity Council

1993-94

International

Greenland

Second best productivity

Society Productivity, Gold award

Hyderabad

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4. SIZE OF THE UNIT There is no any fixed standard to measure the size of unit. but our Govt. of India has made certain rules for measuring the unit, likewise, when the investments of the company is above 100 laces, or total employment are more than 400 then it is considered as a large scale industry. According to govt. rules the "Gujarat ambuja cement ltd" is large scale company because of it `s forms of company.

5. FORM OF COMPANY: The G.A.C.L is a Public Limited Company. In Which ………

Share capital is ………………………………..304.48 Crores Rs. Investment in plant & machinery is…………..1288.94 crores Rs. Net current asset is ……………………………418.24 crores Rs.

CORPORATE OFFICE:

SOLICITORS & ADVOCATES:

122, Maker Chambers III,

Kanga & Co

Nariman Point, Mumbai – 400 021.

WORKS: Ambuja Nagar P.O. Taluka Kodinar, Dist Junagadh,

REGISTERED OFFICE:

Gujarat – 362 715.

Ambujanagar P.O. Taluka Kodinar, Dist. Junagadh, Gujarat – 362 715.

BHAVNAGAR OFFICE : 317/318 3RD floor madhav darshan,waghavadi road Bhavangar 364001.

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6. MANUFACTURING PROCESS: Cement is manufactured by using the mixture of limestone, clay, sand, literate, bauxite and iron and the mixture is burning at a high temperature of 1,400 to 1,500 degree Celsius and the resultant clinker (a final product) is made then it mixed and grinding with gypsum to form cement for final use. The process of manufacture is divided broadly into 3 stages………….. Stages of process:-

1. Preparation of the raw materials 2. Burning process of the raw materials in kiln and 3. Grinding the clinker to the finished products

Type of Processes:-

There are mainly 3 types of processes to get the final product. These processes are as follows…………….

A. Wet process. B. Semi dry process. C. Dry process.

A. Wet Process:This is the old process of manufacturing of cement. In this process the raw material grinding with sufficient water, so that the mixture contains 30% to 40% of water. But it is not useable because it use higher coal consumption 30% to 35% as compared to dry process.

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B. Semi dry Process In this process the raw material are processed in dry state and the grinding raw meal is neutralized by addition of 10% to 20 % water, and it is final by heat consumption process. C. Dry process :This is the modern method of production. In the dry process limestone and clay are fed into a grinding mill with passing hot air. The materials are heats dried thoroughly and then reduced to fine powder know as raw meal.

the raw meal is mixed with a little water and formed into nodules in nodulising fan. Their nodules are then fed into a moving grate through which the hot gases from the rotary klin are passed. They are dried in pertically claimed.

The calcined nodules then fall into a short rotary klin of conventional design where they are burnt to form clinker.

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(A). MINING STAGE : The limestone is come out from mine by drilling and blast method. And it is reach at plant by huge damper having carrying capacity of 35 tones.

(B). CRUSHER STAGE : Limestone and marl are fed into the crusher plant which crushes the size of 100 mm maximum. This crushed material is taken to the further stage.

(C). STACKER STAGE : The stacker makes stock piles for pre blending in about 350 to 400 layers. Sample of limestone are taken out every 5 minutes for analysis in the laboratory to determine their chemical properties, total carbonate. This analysis is done to determine the composition of the stock pile correction where require are done at this stage.

(D). RAW MILL STAGE : Raw mill is a vertical roller mill in which crushes the material into fine powder.

(E). BLENDING SILO STAGE : In this stage silo blends material by clarification. Material gives correct weight of the fed material or not.

(F). PRE-HEATER STAGE: In this stage, passing the material from the top and the hot gases upwards from the kiln so, the materials come down and take heat.

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(G). PRE-CALICIFATION: In the pre-calcification the 5% of powdered coal is fired, Because of the ore-heating and kilns are calceficated about 85 to 90 % materials is calcined before the materials enter the coco3 with calcium oxide (quick lime) and carbon dioxide. (H). CLINKERISATION: This material then enters the kiln, which rotates it with slow speed. The material then enters the sintering zone where. In it the temperature is around 1400 c to 1500 c. Then the clinker is become cooled and it is taken in big for bucket storage. (I). CEMENT MILL: In this stage the gypsum is added in cement about 4% to 6%.The gypsum is added because this has effect regarding the setting time of cement thereby providing time for work to be performed in planning the concrete. Then it is gone for packing department as a when required.

(K). QUALITY CONTROL: To maintain quality it is required that every stapes of manufacturing process is cheek by proper measurement and in ambuja the whole process right from feeding of raw materials to manufacturing of cement is controlled by Japanese computers. Because of that it is possible to manufacture better than better quality of cement. It use CCU (Close Circuit Unit), in the manufacturing process so, that they have improved their quality of cement and productivity of cement and it is 9000 metric tones per day.

(J). PACKING: The final stapes of cement is packing. The capacity of each packer is 120mt/hour or 2400 bags per hour the total capacity is 240 tones or 4800 bags per hour. Then they are carried by trucks of wagons for one place to other place.

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Performance of G.A.C.L in Production

Chart

PRODUCTIONinin PRODUCTION milliontones tones million

Performances Performancesof ofNet NetProfit Profit of ofG.A.C.L G.A.C.L 25 25 20 20 15 15 10 10 55 00 2002 2002

2003 2003

2004 2004

2005 2005 YEAR YEAR

2006 2006

2007 2007

2008 2008

Production Production

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7. TIME KEEPING SYSTEM: The time keeping system is required for the entire department for the entire worker, manager and a manager. There are various methods for time keeping but Gujarat Ambuja Cement Ltd. Running with scientific system for time keeping they use 2 methods for time keeping system and it is …. (1) The register Roll system - in which the managerial staff has to maintain the data of their arrival, exit, leave, and presents of all the days. It is completely manual work. (2) The other time keeping system is Punch Card System. In this each employee has their own cards and each card has different coad. They are inserting the card in punch machine, which is organized automatically. The punch cards are so organized that an employee can enter his card only 4 times in a day so, there were not problem about cheating. The punch machine is put on main gate, one in main department, one in administration office. The punch cards are also meant for truck drivers for counting on the exits and entries of number of travels. The punch card system is very scientific; it is less time consuming and reduces the possibility of mistakes. For better performance, arrangement, account of employees working limit, and take care health of employee & worker. The plant of G.A.C.L. works for 24 hours divided in to three shifts of 8 hours each. And it is as……………...

FOR PLANT:

FOR ADMINISTRATION STAFF :

Shift A: 6.00 A.M. To 2.00 P.M.

8.00 A.M. To 12.00 P.M

Shift B: 2.00 P.M. To 10.00 P.M.

12.00 P.M. To 2.00 P.M (Lunch Time)

Shift C: 10.00 P.M. To 6.00 A.M.

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2.00 P.M. To 6.00 P.M

Index

SR. NO. 1 2 3 4 5 6 7 8 9 10

of Human Resource Management

PARTICULAR

PAGE NO.

Introduction

21

ORGANISATION OF PERSONNEL DEPARTMENT

22

RECRUITMENT AND its PROCEGER.

24

Promotion & transfer policy

25

Wage & Salary Administration

26

PROVIDEND FUND SCHEME.

27

COLLECTIVE BARGAINING SCHEME.

27

TRADE UNION.

27

PERSONNEL RECORDS.

28

EMPLOYEE BENEFIT SERVICES.

28

GUJARAT AMBUJA CEMENT LTD.

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1. Introduction Definition:A Human Resource Management can be defining as “H.R.M is Managerial function which concurred with hiring, motivation, directing and maintaining the people in the organization. – It is known as Human Resource Management. Human Resource Management (H.R.M) is also known as personal management. Without H.R.M a company can not achieve their goal easily. All the company has H.R.M department.


Highlight on Human Resource Management

1)

It is managerial and top level function.

2)

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

3)

It is try to develop employee skill and better performance.

4)

Personnel Management is a continuous process.

5)

Without H.R.M a company can not achieve their goal easily.

Gujarat Ambuja Cement Ltd has H.R.M department having a experienced Vice President.

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2. ORGANIZATION STRUCTURE Gujarat Ambuja Cement Ltd established the line and staff type of organization.

Personnel department is under direct control of vice president

Senior Manager is responsible to vice president.

The main functions of personnel department of Gujarat Ambuja Cement Ltd. Is…………………

1)

To recruitment of employee.

2)

To conduct interview for selection of efficient person.

3)

To make man power planning.

4)

To give gudence, and motivation to the employee.

5)

To dealing with transfer and promotion.

6)

Wage and salary administration.

7)

To maintain the personnel records.

The organization chart of personnel department of the G.A.C.L is as under:

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Organization chart of H.R.M

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3. RECRUITMENT, & PLACEMENT Recruitment:Employee are the asset of the company, so it to get skillful person for proper management of man, machine, money and material. This process is held by Personnel Department. The process of recruitment gets started because of transfer, dismissal or promotion of the employee. The person in charge gives advertisement through various means of communications like new paper, Television, Magazine etc. The recruitment is may be on………………. (1) At management and administration level. (2) At staff level. (3) At worker level.

Selection process:Generally the following procedure is taken into consideration while selection the member. 1)

Choose proper media for Advertisement.

2)

Accept all the application, and analysis them.

3)

Select applicant on the basis of application.

4)

Sand them call latter.

5)

Conduct personal interview.

6)

Then selected employees is given an Appointment letter and make induction in the organization.

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4. PROMOTION AND TRANSFER POLICY PROMOTION POLICY:-

"Promotion" is referce to the more authority, salary, and more responsibility. In Gujarat Ambuja Cement Ltd., they use only only performance basis promotion. So, employees are promoted on the basis of their skill, performance and their achievement level.

TRANSFER POLICY:-

"Transfer referce to the transfer of person in other department, or on other site with same authority, risponsibiliy\ty, and same salary. In Gujarat Ambuja Cement Ltd., the workers are shifted internally -in shift A to B, B to C, and C to A.

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5. WAGE AND SALARY ADMINISTRATION Wage and salary are most use full to give motivation to the employee. Wage and salary means the monitory reward paid to the employee on behalf of his work. In Gujarat Ambuja Cement Ltd. they pays salary to Employees and Wages to labors And other allowances are paid. The amount of wage & salary paid depends on grades. A Grade / Management Category are…..

Basic salary + house Rent Allowance + 10% provident Fund + Medical Allowance + medical Allowance + Vehicle Allowance + Bonus + D.A.

OVERTIME PAYMENT :Overtime payment is admissible toward wage board workers only. The overtime payment is made on the basis of overtime memo received from the department head.

EXTRA DUTY INTIMATION:-

If In accident case worker may loose his efficiency of performing the present job. In such cases company make transfer of the employee and if he is not able to work at all the units, the unit pays a reward to employee. On the event of death of a workman the wages and other dues shall be paid to the nominee as declared under the provident fund Act.1952.

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6. PROVIDENT FUND POLICY The Gujarat Ambuja Cement Ltd. Has to follow Provident fund Act 1952. Provident fund will be deducted from salary of employee at a rate of 12%. DETAILS ARE AS UNDER :-


Employee’s contribution @ 12% will be deposited in provident fund account.
Employer’s contribution @ 12 will be deposited in two different accounts a follows. •

Deducting 8.33% goes to pension account.

•

And 3.67% goes to P.F. Account.

7. COLLECTIVE BARGAINING:Collective bargaining is negotiation between an employer or a group of workers to reach at agreement on working condition. It is also considered as one of the remedial measure to set industrial dispute. There is no formal collective bargaining in Gujarat Ambuja Cement Ltd. If their were Any problem arise it is solved by management and lab our unions. By meeting and the decisions making.

8. TRADE UNION: According to Section 2(b) of Trade Union Act of 1926. Gujarat Ambuja Cement Ltd. has no formal trade union. There is one active labour union known as "Gujarat Ambuja Cement Karmachari Sangh". It is only the union which fights for the rights of workers & solves the disputes.

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9. PERSONNEL RECORDS Personnel record is a very important thing which includes name, address, date of birth, qualifications, hobby, experiance etc. and as it helps to take timely decisions. It also preserves evidence for future reference or use.

Looking to the importance of personnel records Gujarat Ambuja Cement Ltd. has maintained separate file for each and every necessary details.

10. EMPLOYEES BENEFICIAL SERVICES The personal management is tried to focus on employee and employer to give best services. Thus it increases the satisfaction and the long run income of the company.

The Gujarat Ambuja Cement Ltd., provide the best services to their employee. The facilities provided by the organization to the employees is as under……………………….

(A)

EDUCATIONAL FACILITIES :

The Gujarat Ambuja Cement Ltd. has its own English medium school situated in Kodinar city. The fees are very normal so, that a common person can able to provide their child a better education.

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(B)

MEDICAL FACILITIES :

The unit has its own medical center established in colony when any family member of employee or himself is sick he can directly visit to the nearby hospital and can go under Medical treatment. In case of any injury or accidents the company pays the full expenditure, incurred for the treatment of worker. During his rest period he would get the salary of those days.

(C)

LEAVE FACILITIES :

The following are the leave facilities provided by the company to the employees: •

Festival Leave : All the workmen are granted National and social Festival holidays

•

Sick Leave : The unit grants 12 days as a sick leave to the employees. He can take leave for 12 days in one year for his sickness.

•

Casual Leave A workman may be granted Casual leave of absence with pay not exceeding 7 days.

•

Privilege leave : Privilege leave is the leave for workers only.

The

workers can get a privilege leave if he works for continuous 209 days.

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(D)

CANTEEN FACILITIES :

The Gujarat Cement also provides a good canteen, where every worker can go and take refreshments and snacks at cheap rates and hygienic than other stuffs available in the market.

(E)

OTHER ALLOWANCE :

1)

Health Allowance : Health allowance is provided 5 % of the basic salary to the worker who works near the boiler, kiln etc. where the temperature is very high.

2)

House rent allowance : The unit has its own residential building constructed within the unit. This makes the workmen easy to reach. It can provide quarters to all workmen.

(F)

TRANSPORT FACILITY :

Gujarat Ambuja Cement Ltd. has its own bus which traveling from Gujarat Ambuja Cement Ltd. to Kodinar and Veraval. In workers bus they travel freely (no fare). There is even one school bus facility provided too.

(G)

BANKING FACILITY :

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

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(H)

RECREATION AND SPORTS :

In its residential colony the unit has build up a recreation and sports club. The club is facilitated by out door & in door games. The club has a library too.

(i)

LIBRARY FACILITIES :

The unit has its well developed library. This has many types of Newspapers in May languages and many magazines Indian and Abroad.

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INDEX of marketing management.

SR. NO. 1 2 3 4 5 6 7 8 9 10

PARTICULAR

PAGE NO.

Introduction.

33

ORGANISATION OF MARKETING DEPARTMENT.

34

PRODUCTION PLANNING.

35

MARKETING SAGMENTATION.

36

PRICING POLICY.

38

CHANNEL OF DISTRIBUTION.

39

SALES PROMOTION.

41

Performance Chart of Selling of G.A.C.L

42

ADVERTISING.

43

MARKETING RESEARCH.

44

GUJARAT AMBUJA CEMENT LTD.

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1. INTRODUCTION: The term marketing is derived from Latin word ‘marcutus’ which means a place were business is conducted. Market: - The market means a place where buyer and seller meet each other and the deal finalize. Marketing: - marketing means to delivered goods and services at a right time, at a right place, and to the right person. – it’s known as marketing. The bases of marketing are selling of the product. But the term marketing is very wide and various. The marketing head office of Gujarat Ambuja Cement Ltd. at Mumbai which includes the Marketing Department of Gujarat Ambuja Cement Ltd. Is in Gujarat, Maharashtra, Rajasthan and other stat of the country and also in foreign country. Gujarat Ambuja Cement Ltd.covers sales area in South Gujarat, Mid Gujarat, North Gujarat, Saurashtra and Kutch, Gandhinagar and Kheda. Marketing is starts with human’s needs and wants. People wont their basic need like food, air, water clothing & shelter to survive. The human wants are unlimited, various, and wide so, the marketing process will never become stop.

33

2. ORGANISATION OF MARKETING DEPARTMENT it is true that the human wants are unlimited, verious, and wide so, it is a responsibility of Marketing Department to organization it’s department in such a way that it can help to satisfy the human wants. It does not help in the sales and distribution of the goods and services only but it also help to customers satis faction. Gujarat Ambuja Cement Ltd. has its head marketing office at Mumbai. The unit has adopted the marketing strategy of Geographical area wise. In Gujarat the burden of marketing is carried by private marketing agency MITCO which is situated at Ahmedabad. The Organisation structure of Marketing department of G.A.C.L.

MANAGING DIRECTOR

MANAGING MARKETING MANAGER

ASST. MANAGER

SENIOR SALES OFFICER

SALES OFFICER

SENIOR EXECUTIVES

MARKET REPRESENTATIVE

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3. PRODUCT PLANNING To satisfy customer needs and wants product planning is essential. Many products affect some factor like geographic factor, cultural factor, social factor, demographical factor, psychological factor, and many others.

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

1.

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

2.

Packing

3.

Labeling

4.

Branding

5.

After sales service

6.

Organizing

7.

Product research

The main product of G.A.C.L is cement and Product planning of G.A.C.L is as under…………………………
Port land pozoland cement [PPC]
High strength ordinary port land cement [HSOPC]
53 grade cement.
Special cement for railway etc. in product planning the product, which is demanded the most is paid more attention. G.A.C.L. has also done the same. This unit has paid more attention to OPC because it is demanded more G.A.C.L. products other types of

35

also but only anticipation of its demand for e.g. in Narrmada Project, PPC was demanded which was fulfilled only by G.A.C.L. G.A.C.L. has paid special attention for the quality maintenance. The quality test is held everyday and every after one hour taken by G.A.C.L. for only maintaining a standard quality, and because of this it got the ISI mark. It has been given……….
ISO 2000 [ For pollution free production ]
ISO-9002 [ For quality ]

4. MARKET SEGMENTATION Market Segmentation is a process of dividing total heterogeneous market into various segments. Each segments tends to be homogeneous in all significant accepts, for the purpose of selecting one or more segment as a target market for a company and separate marketing mean is a reward to be developed for even segment. It is an act of classifying consumers on the basis of their characteristics to select target market.

There are two type of market segmentation in G.A.C.L : 1. Consumer Oriented Segmentation. 2. Product Oriented Segmentation. Market can be divided on Geographic Segmentation, Psychographic Segmentation and Demographic basis. G.A.C.L. has adopted market Segmentation mainly on two bases.

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(1). Consumers. Segmentation. (2). Geographic Segmentation.

(1) consumer Segmentation: it is divided in 3 division in G.A.C.L .

A. The general public segment. B. The Government segment. C. The contractor segment.

(2). geographical Segmentation: it is divided in 2 division in the G.A.C.L. at Bombay covers the region of Rajasthan, M.P., Maharashtra etc. while Ahmedabad covers only Gujarat because it forms the major part of G.A.C.L. market.

Because of quality G.A.C.L. taking maximum benefits of market response. As a result G.A.C.L. is the market leader in Gujarat.

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

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1.

Maximum market for the product can be achieved.

2.

Market gets new opportunities.

3.

Selecting of channel of distribution.

4.

Selecting advertising media.

5. PRICING POLICY: Price is the main factor to satisfy the customer. Prices are known by different names like - fees, fare, rant, commission etc. The pricing policy is directly or indirectly affects the fixed cost, variable cost, Government policy etc.

(A) COST ORIENTED PRICING: in this product the price is decided as per the cost of product and it is also known as target pricing.

(B) DEMAND ORIENTED PRICING : in this product the price is decided as per the consumer demand.

Gujarat Ambuja Cement Ltd. has many competitors in India and other country also. So, they have set prices taking into consideration all of them. Thus, the prices are always fluctuating it is also fluctuated by government.

Gujarat Ambuja Cement Ltd. looks upon following factors for determining prices :(1) Cost of production. (2) Advertising. (3) Distribution cost. (4) Sales promotion cost.

Gujarat Ambuja Cement Ltd. provides some motivation like gifts, discounts; commission etc. for increases the efficiency of the dealers, stockiest to selling more.

38

6. CHANNELS OF DISTRIBUTION: A channel of distribution refers to a process of distribution goods and services to the consumers by producer. It is known as distribution channel because there were made channel between producer and consumer while the selling and buying process is doing the market and it is as………………

1.

Zero level distribution. Producer

2.

One level distribution. Producer

3.

Retailer

Consumer

Two level distribution. Producer

4.

Consumer

Wholesaler

Retailer

Consumer

Three level distribution. Producer

Agent

Wholesaler

Retailer

Consumer

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

In G.A.C.L. marketing agency MITCO is engages in performing marketing activities in Gujarat. They have their sales representatives in Gujarat appointed by MITCO. It collets the order from the Gujarat and provide them their stock by transport facility.

39

TRANSPORT FACILITYS: in G.A.C.L. the transportation of cement bag is done by two ways………

(1). one is roadways (name of the road) 

Rajmoti Roadways



Autohires Roadways



Abhishek Rodways.

(2). other is sea ways (name of the ship) 

Ambuja Kirit



Ambuja Shakti



Ambuja Vaibhav



Ambuja Shikar



Ambuja Gaurav

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7. Sales Promotion:Sales promotion is a key which opens the door of selling in the competitive market. Sales promotion is help full for incress the selling because it is one type of advertisement for EX: giving a free shample and sales promotional services. To increase selling G.A.C.L. has applied sales promotional stapes at three level like………. 1)

AT DEALERR LEVEL : The unit offer some benefit like cash discount, quality discount, training to their dealers for dealing properly with consumer.

2)

AT SALESMAN LEVEL : Different skims offers to the salesman for increase the sales volume by giving fixed target,If he is able to complete his target, he will be rewarded monetary, non monetary or he got gift by the company.

3)

AT CONSUMER LEVEL : By G.A.C.L. consumer gets benefit of different types of cement at high quality and gats other social benefit. Sales promotion is not expenditure, it is an investment which is an integral part of marketing to beat competitor.

41

Performance of G.A.C.L in selling

Chart

RS.incarores carores RS.in

performances performancesof ofselling sellingininG.A.C.L G.A.C.L 7000 7000 6000 6000 5000 5000 4000 4000 3000 3000 2000 2000 1000 1000 00 2002 2002

2003 2003

2004 2004

2005 2005 YEAR YEAR

2006 2006

2007 2007

2008 2008

Sales Sales

42

8. Advertisement. Advertising is the modern medium of communicating between buyer and seller. Advertising is a process of increasing customer tasted towards products. A better advertisement can work as neculier bomb to beat the competitor in the market. The G.A.C.L. has separate advertising budget committee and the budget is fixed. Advertisement may be on quality, new idea, their services etc…. The main objective of G.A.C.L. to making advertisement of ambuja cement is quality and strength.

The

G.A.C.L.

has made

contract

with

"TRIKAYA"

- A private

advertisement agency and it is make advertisement by……………. 1)

Print Media : G.A.C.L. gives advertisement in the news paper and Magazines. By

regular period. 2)

Out Door Media : G.A.C.L. gives advertisement on poster, holdings, wall painting, T.V, radio

and internet by regular period.

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9. MARKETING RESEARCH Marketing research is very important element to find out the customer satisfaction, product sales, distribution channels, pricing, advertising. It also helpful to sales fore casting for company's product which is related to future planning. In G.A.C.L marketing research is held and controlled by the Bombay head office. Marketing research is also giving the idea about fashion, taste, social factor, physiographic factor etc. The G.A.C.L. makes marketing research by two ways (1). Experimental method It is making for check the distribution channel, advertising strategies etc. (2). Survey method : The G.A.C.L. make survey method By conducting the personal interviews, by research marketing to find out effect of advertisement, sales volume, distribution channel etc.

44

Index of financial management

SR. NO.

1 2 3 4 5 6 7 8 9 10 11

PARTICULAR Introduction Organization structure of Finance Department Bankers Capitalization Capital structure Management of asset Management of working capital Performance chart of net profit of G.A.C.L Analysis of Financial Ratio & Leverage P&L statement of G.A.C.L Balance sheet of G.A.C.L

GUJARAT AMBUJA CEMENT LTD.

45

PAGE NO. 46 47 47 48 49 50 51 52 53 59 61

1. Introduction “Money is the life blood of business”

Money is one type of factor of production which is known as capital. It is sure that the money is required for starting of the business, expantation, for development of new unit, and liquidation of the business. Thus the money is required the starting of business to liquidation of business of the business. The money is work as lubricant oil in the business. So, without money the business can not even start. So the company has to attention on how they get money, how they utilize the money, how they invest it to get maximum interest……this all the thing is known as financial management. FINANCE means

procurement of fund and maximum utilization of

fund which available in the business. So, it is required to control on the money and it known as financial management. Financial management is a planning, efficient allocation of funds and control on the money. Financial information is required for : 1.

Share holder.

2.

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

has established a separate financial department which is made financial budget for all over the company and solves the problem of finance in the company.

46

2. ORGANIZATION OF FINANCE DEPARTMENT In Gujarat Ambuja Cement Ltd., the finance & account department is headed by the Vice President (Finance). Under him there are 2 group of executive and its chart is as……….

In G.A.C.L all the authority is establish to the vice president of finance and he has to maximum utilization of fund.

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

Bank of India Dena Bank Bank of Baroda Punjab national Bank ANZ Grind lays Bank

47

4. CAPITALIZATION Capitalization means total funds required for doing business, funds like equity fund, borrow fund, fixed asset, current asset etc…as per financial point of view capitalization is required for earning fair rate of return on the investment. In other word, the Capitalization refers to the decision regarding the total requirements of long term funds

Types of capitalization : There are three type of capitalization

(1). OVER CAPITALIZATION. It Means the real value of share is reduced then the book value of the asset. It occurs when the real value of the assets is less than the long term funds of company.

(2). UNDER CAPITALIZATION It Menace real value of share is higher than book value of the assets. It occurs when the real value of the assets are more than the long term funds of company.

(3). FAIR CAPITALIZATION It menace real value of share & book value asset is equalize each other.

48

5. CAPITAL STRUCTURE The G.A.C.L is public limited company so the company has issued the equity share capital which is known as long term capital. To handle capital structure is very difficult task. Capital structure of the company involves many functions like borrowed capital, owner's capital, share capital. Borrowed capital means the capital borrowed from the out spiders. It may be an other company, some banks or from some industries share capital means capital gain from funds and shares.

The capital structure of GUJARAT AMBUJA CEMENT LTD. Is as….

49

6. MANAGEMENT OF FIXED ASSETS Generally there are two types of assets: (1). Fixed Assets :- The fixed asset are those asset which gives long time benefit in the business like plant, machinery, equipment, building etc. The investment in fixed asset of G.A.C.L. is RS. 3469.89 (in cores). The design of plant is derived from the Germany; it was the latest cement plant in Asia.

(2). Current Assets:- The current asset are such asset which gives short time benefit and which are use day to day in business. Like

inventories, cash and

bank, loan and advance.

50

MANAGEMENT OF WORKING CAPITAL

Working capital means short time assets and liabilities.

To done the

continuous routine activity we need some working capital so, in simple word working capital is nothing but analysis of Current Assets & Current Liability.

There are mainly two concepts of working capital. (1)

Gross Working Capital

(2)

Net Working Capital

Gross working capital is the capital investment in the term current assets i.e. cash, short term securities, debtors, bills receivable and stocks etc. Net working capital is the difference between current assets and current liabilities. Working capital management mainly on three bases……..

(1)

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

(2)

Management of receivables.

(3)

Management of Cash & Bank.

51

PERFORMANCE OF G.A.C.L IN NET PROFIT

CHART

NetProfit Profit Net

performances performancesof ofNet NetProfit Profitof ofG.A.C.L G.A.C.L 7000 7000 6000 6000 5000 5000 4000 4000 3000 3000 2000 2000 1000 1000 00 2002 2002

2003 2003

2004 2004

2005 2005 YEAR YEAR

2006 2006

2007 2007

2008 2008

Net NetProfit Profit

52

7. FINANCIAL RATIO ANALYSIS Financial ratio is one of the most important tools to analysis and criticizes the account prepared by the business. A financial ratio means relation between two or more related item of financial statements known as ratio. The ratio may be in proportion or in percentage (%).because of ratio analysis the company can make future estimation and take step for future.

RATIO ANALYSIS

There are three branches of accounting: (1) Financial Accounting. (2) Cost Accounting. (3) Management Accounting.

In Management Accounting Manager has to prepare various statements. Manager has to do some analysis & interpretation of various data. Through this analysis manager has to evaluate past information, current position and predict future position. So, this purpose he has to do analysis of various financial situations.

53

Ratio Analysis

[For year 2006-07 only]

(1). NET PROFIT RATIO :-

=

Net Profit(PAT) x100 Sales Net Profit (PAT)

=

1769.10

Sales

=

5705

=

1769.10 x100 5705

=

31.10 %

This ratio gives the information about actual margin of profit realized from routing activity. Generally standard margin is 10% to 15%. But t is 31.10 % so, company has good profitability. (2)

Current ratio :

=

Current Assets Current Liability

Current Assets: - Inventories, sundry debtors, Cash and Bank Balances, other current assets, loans and advances. Current liability: Liabilities, Provisions.

54

1587.33 1169.09 =

1.36:1

This ratio gives the actual information about the liquid position of the company. Standard margin of this is 2:1. Here, it is actually 1.36:1 which near the standard margin so, presenting good liquidity of the company.

(3) Liquid ratio Liquid Assets Liquid Liability

Liquid Assets

=

Current Assets – Stock

Liquid Assets

=

1587.33 – 317.00

Liquid Liability

=

Current Liability – Bank Over Draft

=

395.75 – Nil

=

395.75

1267.33 1169.09 =

1.08: 1

This ratio gives the information above actual liquidity of the company. Standard margin of this is 1: 1 and here, it is 1.08: 1 so company ha good liquid position.

55

(5) Return on share holder fund.

=

Net Profit) PAT)

Net Profit (PAT) x100 Share Holder Fund

=

Equity Share Capital + Pre. Share Capital + Reserve & Surplus – Miscellaneous

=

270.38 + 1908.01 -9.72

=

2168.67

=

1769 x100 4661.25

= 37.95% This ratio gives the information about net margin on profit realized on share holder investment her it is 21.593%.

56

LEVERAGE ANALYSIS The term LEVERAGE may be defined as the employment of assets or sources of funds for which the firm's pay fix cost or fix return.

TYPES OF LEVERAGES 1. Financial Leverage 2. Operating Leverage 3. Composite Leverage

FINANCIAL LEVERAGE It may be defined as % change in profit before tax (PBT) as a result of a % change in earning before interest and tax. It is known as financial leverage.

57

FINANCIAL LEVERAGE.

For 2006-07 Year

EBIT = EBT EBIT = - Interest and finance charges =

603.29

84.75

(Carors)

(Carors)

---------EBT

=

- TAX =

518.54

(Carors)

50.25

(Crores)

----------PAT

=

468.29

=

EBIT EBT

=

2712 1769

=

1.53 TIMES.

(Crores)

58

8.

Profit & loss statement

Ambuja Cements Limited Profit & loss Account for the year ended 31stDecember,2007 Rs. in Crores 2007 (12 months) Rs. in Crores

2005-2006 (12 months) Rs. in Crores

INCOME Sales Including VAT / Sales tax remission Rs 73.08 crores; 31.12.2006 Rs 87.03 crores Less: Excise duty

6,469.68

764.84 5,704.84 193.53 5,898.37

Other Income

EXPENDITURE Manufacturing Expenses Variation in Stocks Employee's Cost Administrative, Selling and Other Expenses Interest and Finance Charges Depreciation and Amortization Less Self consumption of clinker cement (net of excise duty Rs 2.23 crores: 31.12.2006 - Rs 3.09 croes)

-

742.18 6,274.52 94.11 6,368.63

2,135.06

-

2,514.54

-56.82 208.62 1,382.33

-

9.94 233.08 1,388.46

75.85

-

113.23

236.34

-

326.12

3,981.38

4,585.37

-9.4

-10.82

3,971.91

59

7,016.70

4,574.55

Profit before Tax and exceptional items Exceptional items Profit before tax Provision for Taxation -- Current Tax {Refer Note 25} Income Tax for earlier year {Refer Note 25} Mat credit entilement

737

Transferred from Debenture Redemption Reserve Transferred to general Reserve Interim Dividend on Equity Shares Dividend Distribution Tax on above

1,794.08

785.89 2,712.35 -

47.52 1,841.60 -

-

202

939 0.90

62 330 3.07

(0.01)

0.06

5.15 943.25 1,769.10 272.06 -

5.28 338.35 1,503.25 151.38 71.31

0.21 0.21 30.00

1,100.00

71.31 72.05

1,.000.00

380.41

339.89

64.65

47.67 445.06

Proposed final dividend on equity Shares Dividend Distribution Tax on above

392 -

-

- Deferred Tax (Refer Note 10) -Deferred Tax Share in joinr venture - Fringe Benefit Tax Net Profit Balance as per last account 2006 of erstwhile ACEL (Refer Note 14) Limited {INSCL} {Refer Note 26}

1,926.46

152.24

25.87

178.11

387.56 121.35

17.02 138.37

60

Balance carried to balance sheet Earnings per share in Rs. (Refer Note 8) Basic Diluted Notes forming part of the accounts

61

384.20

Rs 11.64 11.61

272.06

Rs 10.12 10.09

9. The Balance sheet of ambuja cement Ltd. Ambuja Cements Limited Balance Sheet as on 31st December 2007 Rs. in Crores As on As on 31.12.2006 31.12.2007 Rs. in Crores Rs. in Crores SOURCES OF FUNDS Shareholder's Funds Share Capital Share Application Money, pending allotment Employee Stock Option outstanding (Refer Note 8) Reserves & Surplus

304.48

-

303.37 0.05

0.38

-

1.09

4,356.39

-

3,187.21

4,661.25

3,491.72

Loan Funds Secured Loans Unsecured Loans

100.00 230.42

Deferred Tax Liability, net{Refer Note 10} Total APPLICATIONS OF FUNDS Fixed Assets Gross Block Less: Depreciation Net Block Capital Work in Progress (Refer Note 28)

317.77 330.42 378.38

547.61 865.38 383.86

5,370.05

4,740.96

5,23.05 2,271.19

4,542.50 2,053.32

2,959.86 510.03

2,489.18 541.92

3,469.89

3,031.10

62

Advances against Capital Expenditure

186.76

Investments Current Assets, Loan and Advances Inventories Sundry Debtors Cash and Bank balances Other Current Assets Loans and Advances Less Current Liabilities and Provisions Liabilities Provisions Net Current Assets Miscellaneous Expenditure (to the extent nor written off or adjusted) Total Notes forming part of the Accounts

63

93.01 3,656.65

3,124.11

1,288.94

1,133.12

518.60 145.68 650.79

408.82 89.95 378.10

3.91

5.04

205.35 1,587.33

-

675.54 493.55 1,169.09

295.70 1,177.61

418.24 6.22

532.91 168.68 701.59 476.02 7.71

5,370.05

4,740.96

BIBILIOGRAPHY

To prepare this project I have taken the guidance of some books for Theoretical concepts & definitions which are listed below:

Sr. No.

Name of the Book

Author

1.

Personnel Management

k. aswathappa

2.

Marketing Management

Philip Kotlar

3.

Financial Management

Prof. S.P. shah Prof. J.M. shah

64

CONCLUSION Today, G.A.C.L. has become one of the larger and profitable cement units in the Indian Cement Industry. It has done his job within a very short time by providing itself as an efficient unit. From the very beginning it has maintain high quality standard and it has been approved by granting it ISO 9002.

Now slowly it is going

towards the international market and has started to spread its wings over there. It is slowly and steadily moving towards the grand success. G.A.C.L. is not only enveloping its own firm, but is also developing the Kodinar Taluka. It has awareness towards environment by achieving zero level pollution. At last, I really feel very good, because I get best opportunity to make project and get practical knowledge of G.A.C.L. It has really played an important role in developing our country.

*********************************************

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