JSW Cement limited

Bilkalaguduru village
Gadivemulamandal, Nandyal, Kurnool dist.
Andhra Pradesh

1. INTRODUCTION
JSW CEMENT LIMESTONE MINE is a captive mine for M/s JSW Cement
Limited (JSW), a new diversification foray of the JSW Group. The company
has installed a 6,600 TPD clinkerization plant at Gadivemula in Kurnool
District of Andhra Pradesh. In order to meet the limestone requirement for the
cement plant, JSW has been granted a lease of 617.57 ha in the village Bujanuru
and Bilakalgudur, Gadivemula Mandal of Kurnool District.

LOCATION AND ACCESSIBILITY

LOCATION
The Limestone mine is covered under Survey of India topo sheet nos. 57 I/6 and
is bounded by following longitude and latitude:
Longitude: N 7826'11" to N7828'12"
Latitude: E 1539'57" to E 1540'21"
JSW have been granted a lease of 617.57 ha area for setting up of a cement
plant. Out of the above extent, about 350.57 ha is earmarked for mining activity
while rest 267 ha area have been used for plant installation and green belt
development.

ACCESSIBILITY
The deposit is 27 km north of Nandyal town located on Kurnool-Kadapa section
of National Highway No. 18 and is connected to it by newly constructed cement
road. Nandyal is also a railhead on Guntakal-Guntur section of SE railways. The
district town, Kurnool is about 50 km from the plant site. The nearest airport is
at Hyderabad at around 250 km from the site.

PHYSIOGRAPHY AND DRAINAGE

Physiography of the area largely been influenced by the nature of underlying
rocks which is manifested by its physical features there is a gradual slope
towards south-west. The mining lease area is situated on a plateau terrain
located near to the Bujanuru and Bilakalgudur village. The highest and lowest
elevations of mining lease area are 251.35 m and 238 m above mean sea level
(AMSL) respectively sloping towards SW. The Kundru river is flowing towards

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SW of the ML area near Bujunuru village. Kundu River is a perennial source

and is the primary drainage of the area.

GEOLOGY OF THE AREA

REGIONAL GEOLOGY:
The rock formations of this area belong to Kurnool group. The Kurnool group
of rocks rests unconformable over the Cuddapah super group and comprises of
alternating sequence of Quartzite, Limestone, Shale falling under the units
namely Banganapalli Quartzite, Narji Limestone, Owk Shale, Paniam quartzite
,Koilakuntala limestone and Nandyal shale.
The general detail six formations of Kurnool system areas follows:
Group

Formation

KURNOOL

Nandyal
Koikuntala
Paniam
Owk
Narji
Banganapalli
Fig.1 Regional geology

Tentative thickness( in Lithology

M)
50-100
15-50
10-35
10-15
100-200
10-50

Shale
Limestone
Quartzite
Shale
Limestone
Quartzite

Local Geology:
The rock formations of limestone and shale fall within the mining lease area
mainly falls under either Koikuntala formation or Nandyal shale formation,
respectively of Kurnool group. The local Litho-stratigraphic sequence of the
mining lease area is as given:
Litho Unit

Physical Characteristics

Soil

Black cotton type, cover almost 3/4th area of lease,

thickness varies from 0.2 M to 2 M

Flaggy

Flaky in nature, light grey, flaggy in nature,

Limestone
Massive

Compact, Medium hard, light gray to dark gray

Limestone
Nandyal Shale

Purple or Mauve in color, flaggy and slightly calcareous.

Fig.1.1 local geology

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1. INDUSTRY PROFILE
Cement is a basic ingredient for the construction
industry. Cement is made out of limestone, shell, clay mined out of a quarry
close to the plant. The raw material is crushed, and then heated at temperature in
excess of 1000 C in rotating kiln to become clinker. Clinker is then mixed with
gypsum and ground to a fine powder to produce final grade of cement. The
technology is a continuous process and is highly energy intensive. Cost of
cement is 29% energy, 27% raw materials, 32% labor and 12% depreciation.
The weight/to price ratio make transportation cost very high. The competitive
radius of a typical cement plant for most common types of cement extends no
more than 300 kilometers. However, cement can be shipped economically by
sea and inland waterway over great distances, extending greatly the competitive
radius of cement plants with access to waterborne shipping lanes. Thus, the
location of a cement plant and the cost to transport the cement it produces
through its distribution terminals bear significantly on the plants competitive
position and the prices it may charge. The minimum efficient size for a cement
plant is around 1 million ton a year.

1.1. GLOBAL Scenario:World cement demand was 2,800 million Tons in

2010, with China accounting for 1,098 MT (47% of total).The expected demand
for 2013 is estimated at 3536 MT. China will increase its demand by 250
million tons during the period, an Increase higher than the total yearly European
demand.
In 2010, the world production of hydraulic cement was 3,300 million tons. The
top three producers were China with 1,800, India with 220, and USA with 63.5
million tons for a combined total of over half the world total by the world's
three most populated state.
For the world capacity to produce cement in 2010, the situation was similar with
the top three states (China, India, and USA) accounting for just under half the
world total capacity.
Over 2011 and 2012, global consumption continued to climb, rising to 3585Mt
in 2011 and 3736Mt in 2012, while annual growth rates eased to 8.3% and
4.2%, respectively.
China, representing an increasing share of world cement consumption,
continued to be the main engine of global growth. By 2012, Chinese demand
was recorded at 2160 Mt, representing 58% of world consumption. Annual
growth rates, which reached 16% in 2010, appear to have softened, slowing to
56% over 2011 and 2012, as Chinas economy targets a more sustainable
growth rate.

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1.2. INDIAN Scenario:-

India, one of the fastest growing economies in the

world, is witnessing an unprecedented growth in infrastructure. JSW
Cement; believes that this growth needs to be sustainable and is consciously
contributing to creating a self-reliant India by manufacturing the building blocks
of the Indian development story with its world-class cement.
We have adopted the route of utilizing industrial by-products such as slag to
make our eco-friendly cement to ensure a sustainable future for the country. Our
plants at Vijayanagar in Karnataka and Nandyal in Andhra Pradesh utilize slag
from the JSW Steel plants to produce this green cement.
By converting industrial waste into a useful product, we have reduced the
carbon footprint of the Group. Our vision is to make cement from every tone of
slag that we generate. Not only does this ensure optimal utilization of resources
but also saves the ecological risk of industrial by-product dumping.
With operations initiated in 2009, JSW Cement is a relatively late entrant into
the industry. However, with a capacity to produce over 5.4 million tons per
year, it is fast becoming a force to reckon with. Today, JSW has carved out a
niche for its products by adhering to steadfast business values and sustainability
norms.
Our flagship plant in Nandyal uses world-class technology (including the
advanced Combi Finish Mode Roller Press Circuit and automated loading
system) to manufacture cement. It has won prestigious award for its energysaving processes.
JSW Cement produces three varieties of products: Portland Slag Cement (PSC),
Ordinary Portland Cement (OPC) and Ground Granulated Blast Furnace Slag
cement (GGBFS).
Slag-based cement offers a number of key advantages including increased
strength, less corrosion, heat and water-resistance and longevity.
JSW Cement is sold in Andhra Pradesh, Karnataka, Tamil Nadu, Kerala,
Maharashtra and Goa. We have been delivering our high-quality product to
prestigious and large infrastructural projects such as the Sardar Sarovar Dam.
At JSW, we believe that the efficient utilization of all available resources will
contribute to the development of the nation. With this core thought, we focus
tirelessly on the preservation and effective utilization of natural resources in all
our Group operations.

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Facilities
Nandyal works
The flagship Nandyal plant is designed to produce Clinker ~ 2.2 million ton per
annum (mtpa) and Portland Slag Cement ~ 4.80 mtpa. It has state-of-the-art
technology sourced from global vendors.
The plant is notably environment friendly and also one of the most energyefficient cement plants in India. By using blast furnace slag as raw material, the
plant has dramatically reduced its consumption of limestone, a natural resource.

Unique features

First cement plant in India with Combi-Comflex technology

First plant with multiple systems to control air and dust pollution
Unique automatic packing and truck loading system that cuts down on air
pollution.

1.3. KEY PLAYERS IN THE INDUSTRY:LAFARGE

LAFARGE is the world leader in building material. It operates in
76 countries in four majors sectors: cement, aggregates, roofing and gypsum. It
defines itself as a multi local global firm. Over the past years it invested heavily
in emerging countries.
HOLOCIM
HOLOCIM is one of the world's leading suppliers of cement and
aggregates (crushed stone, sand and gravel) as well as further activities such as
ready-mix concrete and asphalt including services. The Group holds majority
and minority interests in more than 70 countries on all continents, and employs
some 90,000 people. Holcim has a strong presence in India.
CEMEX
CEMEX is the 3rd largest cement company in the world measured
by cement production capacity. Originated from Mexico By 2005 it had
achieved an estimated production capacity of 94 million tons per year. It was
the number one producer of ready-mix with 76 Million Tons, one of the largest
aggregate producer with 175 Million tons and one of the top cement traders in
the world, selling more than 17Million tons in 2005. It is present in the
Americas, Europe and Asia, although not in India nor China.

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In Domestic

Prism Cement Ltd has become the first Indian company to get the Quality
Council of India's (QCI) certification for its ready-mix concrete (RMC) plant
in Kochi, Kerala. The company received the certification from Institute for
Certification and Quality Mark (ICQM), a leading Italian certification body
authorized to oversee QCI compliance.
UltraTech Cement, an Aditya Birla Group Company, has acquired the 4.8
million tons per annum (MTPA) Gujarat unit of Jaypee Cement Corp for Rs
3,800 crore (US$ 595.61 million).
ACC Ltd plans to invest Rs 3,000 crore (US$ 470.22 million) to expand its
capacity by nearly 4 MT a year in three eastern region states, over the next
three years.

1.3. MARKET SHARE ANALYSIS:-

Fig 1.3:Cement production details

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1.3. KEY STRATEGIES:Cement is the single most important and profitable product in the building
material sector and with the consumption of cement in India to touch 600
million tonnes by the year 2020.-this is truly the California Gold Rush of the
new century. With an 8% GDP growth rate, governmental infrastructure
augmentation and population expansion, the Indian cement industry is a market
of opportunities waiting to be tapped. A direct implication of this sectorial
growth is the influx of multinationals like Holcim and Lafarge, which will drive
Indian cement companies in the building industry to adapt new business
strategies to complement the higher demand and competition.
The market for cement is booming around the world. For 20 years, annual
average growth stands at 5%, the equivalent of 100 million additional tons
being consumed per year. Despite the economic and financial crisis, global
cement demand grew by approximately 5% in 2014.

1.4. PEST ANALYSIS:POLITICAL

The price of cement is primarily controlled by the coal rates, power
tariffs, railway tariffs, freight and royalty on limestone.
Interestingly, government controls all of these prices. Government is also
one of the biggest consumers of the cement in the country.
Most state governments, in order to attract investments in their respective
states, offer fiscal incentives in the form of sales tax exemptions. States
like Haryana offer a freeze on power tariff for 5 years, while Gujarat
offers exemption from electric duty.
ECONOMIC
Currently, the industry is on the boom, with a lot of government
infrastructure and housing projects under construction.
In spite of seeing a fall during 2008-09, the export segment of the
industry is expected to grow again on account of various infrastructure
projects that are being taken up all over the world and numerous
outstanding cement plants coming up.

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SOCIAL
Usually, the cement industry in India consists of both the organized sector
and the unorganized sector.
Organized sector comprises of the well-known cement manufacturing
companies while the main players of the unorganized sector are the
regional and local cement-producing units in various states across the
state.
Indian consumers prefer buying branded cement like ULTRATECH,
JAYPEE CEMENT, LAFARGE CEMENT etc. It has been seen in the
past, as well, that mini cement plants with low brand value and image are
not able to survive against the cement giants. With a population of more
than 100 billion people, it is expected that cement industry will create
another 25 lakhs jobs in the next 4-5 years.

TECHNOLOGY
From mining to production the entire process depends on technology. The
Government of India plans to study and possibly acquire
new technologies from the cement industry of Japan.
The government is discussing technology transfer in the field of energy
conservation and environment protection to help improve efficiency of
the Indian cement industry.
Cement industry has made tremendous strides in technological upgradation and assimilation of latest technology. At present 93% of the
total capacity in the industry is based on modern and environmentfriendly dry process technology.

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1.5. PORTERS 5 FORCES ANALYSIS:-

Fig 1.4 PORTERS 5 FORCES ANALYSIS

1. RIVALRY AMONG EXISTING PLAYERS (High)

The Indian cement industry has large number of cement producers thus making
it a low concentration market. The four biggest cement players in the Indian
cementindustryare
1 . A C C L t d 2.Grasim Cement3.Ambuja
C e m e n t 4 . U l t r a t e c h C e m e n t . The market share of the abovementioned four companies accounts to 39.80% currently. It is believed that if
these four companies do not increase their market share in the coming years,
then their combined share could drop to 34%. The share of mid-large players
(like Shree Cement, Madras Cement, India Cement) will remain about 36%,
small players (like My Home IndustriesLtd, Orient, Binani) will hold about
24%, and new players (like Reliance, Murli Agro, JSWCement) will account for
6% of the market With focus on capacity addition, many small/medium players
have been able to capture more market share and consolidate their position in
the industry in the last two years. Market share of top five individual companies

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taken together show a decline to a level of 44.3% in FY09 from46.3% in

FY08(Bharat Book Bureau 2004).

2. THREAT OF NEW ENTRANTS (High)

The existing companies are pushing hard to expand their production capacity to
face the rising competition. With the announcement of the Indian Government
in the budget for the FY2010-2011 to pump in more than Rs.1.73 trillion
in infrastructure (Thomson Reuters Corporaten.d.), the cement industry
becomes a very attractive market to enter, thus increasing the threat of new
entrants. Although the investment to set up a cement plant is huge, still looking
at the future opportunities Indian steel and infrastructure giants like Jindal Steel
works and Reliance Group are also eyeing a share in this huge market
(WordPress n. d; Economic Research India Limited2010)

3. THREAT OF SUBSTITUTE PRODUCTS OR SERVICES (Low)

Now-a-days Timber is also being considered as one of the substitutes of cement.
In many countries like Japan, Indonesia, Singapore etc are now using timber in
construction since those areas are high earthquake affected. They now prefer
timber which is cheap and long lasting for years. But timber cannot be
considered, as one of the major substitutes of cement, therefore cement is one of
the main components of any construction. Without cement, construction work is
next to impossible as it provides strength to the building.

4. BARGAINING POWER OF BUYER (Low)

The boom in the infrastructure industry of India has benefitted the cement
industry immensely. In the present day context, cement producers have become
more powerful than buyers. In the current situation, most of the companies are
moving into direct marketing, thus removing middle men. Despite enough
competition, due to high institutional demand of cement, small-time buyers are
usually targeted as a secondary market by the cement companies. Thus, buyers
are not left with much bargaining power.

5. BARGAINING POWER OF SUPPLIERS (Low)

The basic raw materials used in the cement manufacturing process are
limestone, sand, shale, clay, and iron ore. The main material, limestone, is

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usually mined on site while the other minor materials may or may not be mined
there. Since all the raw materials are natural resources, they are under the
Governments control. Companies have to buy rights from the government to
set-up the cement plant. So there are no such suppliers in the cement industry.

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2. COMPANY PROFILE
2.1. HISTORY AND BACKROUND:

JSW Steel Ltd. is an Indian steel company owned by the JSW Group based
in Mumbai, Maharashtra, India. JSW Steel is among India's largest steel
producers, with an installed capacity of 14.3 MTPA.
In 1994, Jindal Vijayanagar Steel (JVSL) was set up with its plant located at
Toranagallu in the Bellary-Hospet area in the State of Karnataka, the heart of
the high-grade iron ore belt and spread over 3700 acres of land. Over a decade.
It also set up a plant at Salem with an annual capacity of 1 million ton. It is on
the threshold of a major expansion plan of adding 3.2 million tons per annum to
its at Vijayanagar Plant to achieve 11 MTPA by 2011. It has established a
strong presence in the global value-added steel segment with the acquisition of a
steel mill in US and a Service Center in UK. JSW Steel has also formed a joint
venture for setting up a steel plant in Georgia. The Company has further
acquired iron ore mines in Chile and coal mines in USA & Mozambique.

About JSW Foundation

JSW Foundation, an integral part of the Group, is the social development
division of the Group. It is an independent institution and is governed by Board
of Trustees who is drawn from the senior management of the Group.
JSW is committed to enhance the quality of life of communities around its
operations. The Group is conscious that the local community is not
homogenous, so varying layers of social deprivation and marginalized needs to
be identified, understood and valued from an anthropological and sociological
perspective.
The initiatives endeavor to create long term value for its businesses and society
and strive to:

Assess impact of its operations on local agriculture, biodiversity and health

through periodic third party impact studies and other research studies with
special emphasis on benefits to women and the deprived sections of society.

Act proactively to
- Promote skill development through vocational training and education.

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Enlist indigenous communities and marginalized sections of the community

around its operations and include them in various development initiatives.
Collaborate with government programs and partner with civil society
organizations for poverty alleviation and implementation of sustainable models,
while ensuring effective outreach to the community.
Sensitize employees to the concept of equity in development and its
significance in the various sectorial initiatives, while encouraging and
promoting their participation.
Create a process of participatory resettlement of displaced communities.

2.2. VISION statement:To be a globally admired organization that enhances the quality of life of all
stakeholders through sustainable industrial and business development.

MISSION Statement:Supporting India's growth in core economic sectors with speed and innovation
Nurturing Nature and Society.

The Structure
The JSW Foundation is an independent institution governed by a Board of
Trustees drawn from the senior management of the JSW Group. It is headed by
Chairperson Sangita Jindal, with the executive function led by Mr. Mukund
Gorakshkar.
An Advisory Board, comprising eminent leaders from non-profit organizations,
gives direction to the Foundation and guides it on social processes, participatory
planning and execution of the projects.
A team of social development professionals is based in Mumbai and at every
location where JSW has its operations. These professionals undertake
community-based activities in consultation with the respective plant
managements.

Objectives
To promote Indian cement industry's growth.
To protect consumer interest.
To identify newer usage of cement.

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 To establish contacts with similar bodies abroad for exchange of informat

ion, data, publications etc.

Present Goals
The Company plans to add two million tons of capacity at Vijayanagar which
already houses two plants. We are also envisioning setting up a Greenfield
Cement Plant with a capacity of4.3 million-ton at Gulbarga in Karnataka.

2.3. SWOT analysis of the JSW cement:The findings and desiccations in the preceding section have revealed that there
are strengths, weaknesses, opportunities, and threats associated with the cement
industry. In this section a SWOT analysis will be employed in order to identify
the current state of the cement industry and highlight the need to change (Sauer,
1998).
Strengths
Availability of cheap raw materials.
Availability of cheap fuels and energy in some of developing countries as
Libya.
Need of the cement and absence of substitutes materials to replace the
cement.
Weaknesses
High rates of unexpected breakdown and maintenance costs.
Un-standard operating process.
Transportation and freight costs.
Organizational culture.

Opportunities
Increase the domestic demands, and potential to export the cement.
Technological changes.
Threatens
Unstable and sudden changes in political rules and regulations.
Economic changes and competition environments.

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COMPETITORS:

My home cement (Banagapalli) (Andhra Pradesh)

Bharathi cement (Cuddapah) (Andhra Pradesh)
Priya cement (Dhone) (Andhra Pradesh)
Ultra cement (Tadaipatri) (Andhra Pradesh )

2.4. Products
JSW steel
JSW Energy
JSW Infrastructure
JSW Holdings
JSW Cement
JSW Solutions

2.4. Markets
JSW Cement, the cement arm of JSW group controlled by Jindal, is set to
commence production from its Nandyal plant in Andhra Pradesh from next
month.
This is the first time JSW cement will sell in the market for wholesale and retail
buyers. It currently caters only to ready mix concrete manufacturers. The
company declined to reveal the pricing for the cement bags.
A group spokesperson said, We are in the final stages of commissioning the
state-of-the art integrated cement plant in Nandyal, Andhra Pradesh with a
capacity of 4.4 million tons per annum. We have drawn plans to produce around
two million tons in the current financial year. We are in the process of
establishing our dealer network for the Portland slag cement (PSC) product. The
investment for this cement plant at Nandyal has been around Rs 1,400 crore.
When first announced, the company had plans of putting up a 4.5 mtpa at a cost
of Rs 1960 crore. The debt to equity ratio for the project is 1:3. The company
had tied up with IDBI bank earlier to raise debt for the plant.
The spokesperson adds, Production from Nandyal will cater to Tamil Nadu,
Karnataka and Hyderabad. We will further extend our reach in the days ahead.

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Sources say the company is looking to venture into the East, which will include
West Bengal and Orissa through port ways. Plans on the drawing board also
include setting up of a cement unit in its upcoming steel plant in Salboni, in the
West Medinipur district at a later stage.
An analyst from a domestic brokerage said, JSW has clinker capacity in
Andhra Pradesh and Karnataka. The Nandyal plant is in the interior of Andhra
Pradesh and it has already started trial productions. At present, the company is
facing iron ore problems and has started buying from the spot market. So the
final production numbers may be low depending upon the availability of ores
and slag.
JSW Cement is currently in the cement business to use slag, a waste product
from steel manufacturing process produced in their Vijaynagar plant and
produces PSC. It also has a grinding unit with a capacity of 6 lakh tones per
annum at Toranagallu in Bellary district in Karnataka for manufacturing of
Ground Granulated Blast Furnace Slag (GGBFS).
The official added, We had invested Rs 136 crore at Toranagallu. Another Rs
53 crores capital expenditure is being incurred for enhancing the capacity at
Toranagallu to 700,000 tons per annum. The GGBS manufactured at
Toranagallu is supplied to all premier ready mix concrete manufacturers such as
Lafarge, Ultratech, and RMC India etc. The new cement plant at Nandyal will
manufacture PSC.

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3Q. A STUDY OF THE ORGANISATION DESIGN

3.1. Review of Various Organization structures:
The following are important types of organization structures:

A) Bureaucratic Structures:
Bureaucratic structures maintain strict hierarchies when it comes to people
management. There are three types of bureaucratic structures:

1) Pre-bureaucratic structures:
This type of organizations lacks the standards. Usually this type of structure can
be observed in small scale, start-up companies. Usually the structure is
centralized and there is only one key decision maker. The communication is
done in one-on-one conversations. This type of structures is quite helpful for
small organizations due to the fact that the founder has the full control over all
the decisions and operations.

2) Bureaucratic structures:
These structures have a certain degree of standardization. When the
organizations grow complex and large, bureaucratic structures are required for
management. These structures are quite suitable for tall organizations.

3) Post-bureaucratic Structures:
The organizations that follow post-bureaucratic structures still inherit the strict
hierarchies, but open to more modern ideas and methodologies. They follow
techniques such as total quality management (TQM), culture management, etc.

B) Functional Structure:
The organization is divided into segments based on the functions when
managing. This allows the organization to enhance the efficiencies of these

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functional groups. As an example, take a software company. Software engineers

will only staff the entire software development department. This way,
management of this functional group becomes easy and effective. Functional
structures appear to be successful in large organization that produces high
volumes of products at low costs. The low cost can be achieved by such
companies due to the efficiencies within functional groups. In addition to such
advantages, there can be disadvantage from an organizational perspective if the
communication between the functional groups is not effective. In this case,
organization may find it difficult to achieve some organizational objectives at
the end.

Fig.3 Funtional Structre

C) Divisional Structure:
These types of organizations divide the functional areas of the organization to
divisions. Each division is equipped with its own resources in order to function
independently. There can be many bases to define divisions. Divisions can be
defined based on the geographical basis, products/services basis, or any other
measurement. As an example, take a company such as General Electrics. It can
have microwave division, turbine division, etc., and these divisions have their
own marketing teams, finance teams, etc. In that sense, each division can be
considered as a micro-company with the main organization.

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Fig. 3.1 Divisional Structure

D) Matrix Structure
When it comes to matrix structure, the organization places the employees based
on the function and the product. The matrix structure gives the best of the both
worlds of functional and divisional structures. This type of an organization, the
company uses teams to complete tasks. The teams are formed based on the
functions they belong to (ex: software engineers) and product they are involved
in (ex: Project A).This way, there are many teams in this organization such as
software engineers of project A, software engineers of project B, QA engineers
of project A, etc.

Fig. 3.2 Matrix

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3.2. PRESENT ORGANISATION STRUCTURE

Director & CEO

Secretary to
Director & CEO

Technical
Assistant

General
Manager (IT)

Vice President

Vice President

Vice President

Operations

(HR & Admin)

Commercials

Assistant
General
Manager

Assistant
General
Manager

Assistant
General
Manager

Senior
Manager

Senior
Manager

Senior
Manager

Junior
Manager

Junior
Manager

Junior
Manager

Assistants

Assistants

Assistants

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4 Q. A Study of Key Business Level Function and Process

4.1. MARKETING FUNCTIONS

In JSW cement Marketing and logistics runs by the same Department
DEPUTY
GENERAL
MANAGER

ASST. GENERAL
MANAGER

MANAGERS

MARKETING

ASST.
MANAGER

LOGISTICS

MARKETING

AREA
MANAGER

MARKETING

FEEDBACK
OFFICER
MARKETING
M
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4.1. ABOUT MARKETING AND LOGISTICS

Area wise dealings with dealers.
Product demonstration.
Product launching in all towns, villages, cities by paper, telephone, emails,
television.
Customer satisfaction.
Quality management (monitoring).
Feedback from all dealers & customers.
Dealing with marketing fluctuations.
Demand and supply follow up ment.
Membership with cement manufacturing association.
Commitment with cement manufacturing association.

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4.2. OPERATIONS AND QUALITY CONTROL FUNCTIONS

Sr. MANAGER

DEPUTY MANAGER

CHEMISTS

TECHNICIANS

SAMPLE BOYS

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4.2. ABOUT OPERATIONS AND QUALITY FUNCTIONS

Ram samples collection from: Lime stone stacking point per every hour.
Raw meal samples collections. Like: - Iron ore sample
Bauxite sample
Laterite sample
Coal sample
Gypsum sample
Slag meal sample
Fly ash sample
Lab processing and monitoring of clinkarization and flow of process
requirements.
Water and rain water sample collections .Daily reports to be send to unit
head.

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4.3. ACCOUNTS AND FINANCE FUNCTION

CEO Finance

Corporate
level

GENERAL
MANAGER

Organization
level

ASSOCIATE
GENERAL
MANAGER

MANAGERS

ASSISSTANT
MANAGER

JUNIOR
MANAGER

OFFICERS

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4.3. ACCOUNTS and FINANCE

TYPES OF BUDGETS:
1. Capital Budget
2. Revenue Budget
TYPES OF DOCUMENTS: 1. Department wise budget details.
2. Work orders (Department wise).
3. Invoice challanas (Item& department wise).
4. Daily revenue cash flow.
5. Purchase orders.
6. Tax details (Department wise).
7. Employees accounting and salary details.
8. Incentive records of employees.
9. Capital investment records and invoices.
10.Different contractors bills.

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4.4. HR, CSR and IT FUNCTION

VICE PRESIDENT

HR and
CSR

GENERAL
MANAGER
SECURITY
MANAGER

SAFETYOFFICER

MEDICAL OFFICER

OHSAS

Jr.
Manager

Jr.
OFFICER
Jr.
MANAGER
Jr.
MANAGER
OFFICERS

AGM & ISO

IT
DEPARTMENT

MANAGER

CSR
Manager

ASST.
MANAGER
SOFTWARE

JR. OFFICER
Hardware

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4.4. About E HR implementations

E- HR details
Implementations

Daily attendance through online system

Lab our grievances
New policy implemented for workers
As per policy daily notice worked to be followed
E-salary updating
Online leave and leave regulation system.

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4.5. MINING DEPARTMENT FUNCTION

MINING DEPARTMENT

HOD

Mines
MANAGER

Asst. MINES MANAGER

Asst. MINES MANAGER

DRILLING & BLASTING

PRODUCTIION &
DEVELOPMENT

Mines FOREMAN
DRILLING & BLASTING

Mines FOREMAN
PRODUCTIION &
DEVELOPMENT

GEOLOGY

SURVEYOR

BLASTING

MATE

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4.5. WORKING Details of MINING Department

AREA CLEANING

MARKING

DRILLING

SAMPLE COLLECTION&
ANALYSIS REPORT

BLASTING

LOADING

TRANSPORTATION

CRUSHING

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4.6. MECHANICAL FUNCTION

HOD

DEPUTY GENERAL
MANAGER

ASST. GENERAL
MANAGER

MANAGER

PLANT MANAGER

MANAGER

ENGINEERS

ENGINEERS

ENGINEERS

TECHNICIANS

TECHNICIANS

TECHNICIANS

HELPERS

HELPERS

CRUSHER

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HELPERS

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4.6. About MECHANICAL FUNCTION

JSW Cement has adopted in line calciner (ILC) technology for manufacturing
of the clinker. Various stages of cement manufacturing process are given below:
Lime Stone Crushing: - At crushing stage, run of limestone mines is
crushed to desired size so as to achieve optimum grinding efficiency in the
raw mills. Crushed limestone is stacked by stacker in a stockpile and
reclaimed by re claimer.
Raw Material Grinding: - Crushed limestone with additives is fed through
weigh feeders. The feed quantity and ratio of feeds are controlled based on
chemical analysis results. The raw material is ground in closed circuit roller
press and the fineness is controlled by separator.
Blending of Raw Meal: - Blending is performed to minimize the variations
in chemistry of raw meal.
Coal Grinding and Fine Coal handling: - In Coal Mil the raw coal is fed
through weigh feeders and hot gases from the preheater are used for drying
the coal. Fine coal product collected at the bottom of the bag filter is
transported to the fine coal bins through screw conveyors.

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4.7. PROCESS FUNCTION

ASST. GENERAL
MANAGER

MANAGER

DEPUTY MANAGER

ASST. MINES
MANAGER

ENGINEERS

TECHNICIANS

HELPERS

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4.7 About PROCESS FUNCTION

Preheating of Raw meal in the Six stage preclaciner string: The kiln feed
material from storage silo is introduced into the Preheater by means of a
system having bucket elevator and air slides. The material is preheated in the
preheater before entering the precalciner. Fuel firing in the precalciner is
controlled to achieve about 90-95% calcinations of the material at its
discharge.
Clinkerisation in Kiln: -Clinkerisation is the major part of cement
manufacturing process, the hot raw meal from the precalciner string will be
subjected to firing in a long rotary kiln. The speed of the rotation will be
maintained between 3 to 5 rpm based on the process conditions and raw
material quality. During the calcinations process, CaCO3 will be dissociated
to CaO liberating large quantity of CO2.
Clinker cooler and Storage: - A new generation, Pyro floor cooler, high
heat recuperation efficiency (min 85%) is used for cooling the hot clinker.
Cement Grinding and Packing: - The closed circuit Roller press with ball
mill combination is used to produce cement. For cement packing three no.,
sixteen spouts, twin discharge, and electronic packing machine of capacity
240 tph has been installed for the packing.

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4.8. ELECTRICAL and INSTRUMENTATION

GENERAL MANAGER

DEPUTY GENERAL
MANAGER

ASST. GENERAL
MANAGER

MANAGER

ASST. MANAGER

ENGINEERS

FOREMANS

TECHNICIANS

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SUPERVISORS

HELPERS

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4.8. Workings on ELECTRICAL & INSTRUMENTATION

ELECTRICAL APPROVALS
from GOVERNMENT

SANCTIONING

ELECTRICAL CIRCUITS AND

CONTROL PANELS
ARRANGEMENT

OVERHEAD STRUCTURE
ERRECTIONS

LINE CONNECTIONS

OPERATING DEVICE
CONTROLLING & AN AREA
OFF SYSTEM

SAFETY AND MONITORING

SYSTEM

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4.9. SIX SIGMA:-

Fig.4 Six Sigma

DMAIC model has been developed within Six-Sigma. DMAIC stands for
Define, Measure, Analyze, Improve and Control. It is a five steps procedure to
improve process performance.
This model can be applied to both sub-processes requiring small changes or the
whole process makeover.
1. Define:
- Investigate the point of view of supplier and customers.
- Identify the customers and their requirements
- Identify the critical factors that have the most impact on supply chain

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Performance.
2. Measure:
- Measure current process.
- Measure and validate the current processes
- Identify the factors that influence on processes and measure the defects
Relative to those processes
3. Analyze:
- Analyze contributors to poor performance and variation.
- Determine the critical causes of defects
- Identify the key variable to understand defects that cause process
variation.
4. Improve:
- Define, test and validate the improvements.
- Remove the causes of defects
- Modify the existing process to provide a better performance

5. Control:
- Ensure that changes are successful.
- Ensure the success keys working through the modified process
- Determine the processes maintain continuous improvement

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4.9. Just In Time (JIT):

Organizations are forced to reduce lot sizes, inventories, and lead-times,
production costs, and enhance the overall performance. The edge to achieve
these objectives is the implementation of Just-In-Time production philosophy.
The JIT system is the approach by which the organizations can deliver right
items at right time in right quality (Klassen, 2000).
The critical principles for successful implementation of JIT system are:
1. People involvement, training, and education:
The successful implementation of JIT depends on the
establishment of a communicative working environment to ensure all the
people involvement. Good training and education programs are basic
elements for flexible multi-skilled employees who are responsible for
implementing the successful JIT system (Mouldetal, 1995).
2. Supplier relations:
Integration good relationships with suppliers are important
components which ensure continual flow of right quantities of material in the
right time. Working together and sharing the beliefs with the supplier will
eliminate the inventory wastes and improve the quality (Kumar, 2010).
3. Waste elimination:
The key element of the JIT is to produce only the requested quantity
by which the overproduction waste will be eliminated. Furthermore the
primary aim of the JIT is continual reduction and elimination all wastes
forms (Low et al, 2008).
4. Kanban or pull system:
The pull system responds to actual demands instead of dependence
on forecasting and estimation strategy (Liker, 2004). Kumar et al (2007)
have reported that the Kanban system aims to eliminate the inventory wastes
through scheduling and controlling the production and WIP.
5. Uninterrupted work flow:
The JIT philosophy concerns about continuity of work process
without any interruption. The smooth flow leads to minimize the WIP, leadtime, and production costs (Low et al, 2008).

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6. Total quality control (TQC):

Quality at source is a vital requirement for successful JIT system; it
is concerns about assuring of producing the right product first time. The total
quality control aims to achieve zero defects system in order to eliminate and
minimize scrap and rework levels, and to enhance the productivity and
overall performance (Ghosh, 1994).

4.10 ABOUT CSR Activities

CSR ACTIVITIES DEVELOPMENT

Local community development

Scholarship provided to school childrens
Nadi vydyam camps
Village roads, lights, temples and other local activities implemented
Daily monitoring on employee facilities

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4.11FINDINGS:
1. Latest technology (German) has been used.
2. E-HR online system implemented in HR.
3. Working with online system each and every employee.
4. Limestone mineral conservation for future generation.
5. Maintaining capable staff.
6. Good infrastructure.
7. Nice road facility to staff from city to industry.
8. Security systems are very good.
9. Medical facility is available and emergency equipment acts greatly.
10.Free transportation facilities for employees are running good.

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4.12 CONCLUSION:
The conclusion that can be drawn from the study is that JSW cement industry in
India is growing a high rate in recent years. The main threat to industry is
competitors. The technology using in cement manufacturing is very unique and
getting from German. Advertisement department advertises very well and the
ideas of advertising are very good and they are maintaining sign boards for
social service and advertising JSW cement very intelligently.
Staff recruiting is very confidential. Relation with workers is very interactive.
Salary payable is very innovative.
During the year 2011-2012, Indian cement industry has registered a growth of
15.45% in terms of cement production. Almost all the major players and smaller
player has gain a lot.
So, from the above study we can say that cement industry has a bright future in
India.

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4.13 RECOMMENDATIONS:
1.
2.
3.
4.
5.
6.
7.
8.
9.

Utilization of man power shall be stabilized.

Irregularities of accounting system should be improved.
CSR activities have to be implemented.
Cost controlling at every department to be implemented.
They has to maintain some staff quarters.
Canteen and food availability should develop.
Railway track facility should be there for easy transportation of cement.
Emergency calling systems or walki talkies should maintain.
Drinking water facilities should be maintain more.

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4.14BIBILOGRAPHY

http://www.indiancementreview.com/News.aspx?nId=dQ+Zn2In7puLkoptYYE
I/w%3D%3D&NewsType=Indian-Cement-Industry:-The-year-gone-by-andthe-challenges-ahead-India-Sector

http://www.springerplus.com/content/2/1/645

https://www.dora.dmu.ac.uk/bitstream/handle/2086/4577/PhDThesis_TaherTou
rki.pdf?sequence=1

http://www.scribd.com/doc/32159493/Overview-of-Indian-Cement-Industry2010
www.google.com
www.wikipedia.com
www.cma.com

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