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
 Project on

GUJARAT AMBUJA CEMENT LTD.

College Name: S.S.C.C.M

Prepared By:- Bhadani Viral

S.Y.B.B.A - (C)
R.NO. 136

2
3
4
 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.

[
--- Bhadani viral ]

5
 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”.

[
--- Bhadani viral ]

6
 No 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

7
 INDEX of general information

SR. NO. PARTICULAR PAGE NO.

1 Introduction 9
2 History of of the unit 10
3 development & Achievement of the unit 11
4 Size of the organization 13
5 Organization structure 13
6 Manufacturing process & product 14
7 Performance chart of production 18
8 Time keeping system 19

GUJARAT AMBUJA CEMENT LTD.

8
 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 …………

9
 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. NAME OF PLANT PLACE WERE SITUATED

1 Gujarat Ambuja Kodinar (Gujarat)

2 Him Ambuja Darlaghat (Himachal Pradesh)
3 Cement Ambuja Roopnagar (Punjab)
4 Guambuja (line 1) Kodinar (Gujarat)
5 Gujambuja (line 2) Kodinar (Gujarat)

10
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/cm 2 &
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…

11
  Achievement of the AMBUJA CEMENT LTD.

Year Awarded By Awarded For

1989-90 The Economic Times Hayward Best Corporate Performance
Business School Association of award under Municipal
India category.
1989-90 National productivity Council Certificate 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 Trade Name – 1992
1991-92 National Council for Cement & National Award for best Energy
Building materials performs. 1991-92
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 Second best productivity
1993-94 International Greenland Society Productivity, Gold award
Hyderabad

12
 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, BHAVNAGAR OFFICE :
Gujarat – 362 715. 317/318 3RD floor
madhav darshan,waghavadi road
Bhavangar 364001.

13
 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.

14
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.

15
 (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.

16
 (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.

17
 Performance of G.A.C.L in Production

Chart

Performances of Net Profit of G.A.C.L

25
PRODUCTION in

20
million tones

15
10
5
0
2002 2003 2004 2005 2006 2007 2008
YEAR

Production

18
 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. 2.00 P.M. To 6.00 P.M

19
 Index of Human Resource Management

SR.
NO. PARTICULAR PAGE NO.
1 Introduction 21
2 ORGANISATION OF PERSONNEL DEPARTMENT 22
3 RECRUITMENT AND its PROCEGER. 24
4 Promotion & transfer policy 25
5 Wage & Salary Administration 26
6 PROVIDEND FUND SCHEME. 27
7 COLLECTIVE BARGAINING SCHEME. 27
8 TRADE UNION. 27
9 PERSONNEL RECORDS. 28
10 EMPLOYEE BENEFIT SERVICES. 28

GUJARAT AMBUJA CEMENT LTD.

20
 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.

21
 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:

22
 Organization chart of H.R.M

23
 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.

24
 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.

25
 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.

26
 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.

27
 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.

28
 (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.

29
(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.

30
 (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.

31
 INDEX of marketing management.

PAGE
SR. NO. PARTICULAR NO.
1 Introduction. 33
2 ORGANISATION OF MARKETING DEPARTMENT. 34
3 PRODUCTION PLANNING. 35
4 MARKETING SAGMENTATION. 36
5 PRICING POLICY. 38
6 CHANNEL OF DISTRIBUTION. 39
7 SALES PROMOTION. 41
8 Performance Chart of Selling of G.A.C.L 42
9 ADVERTISING. 43
10 MARKETING RESEARCH. 44

GUJARAT AMBUJA CEMENT LTD.

32
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

34
 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.

36
 (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…………………..

1. Maximum market for the product can be achieved.

2. Market gets new opportunities.
3. Selecting of channel of distribution.
4. Selecting advertising media.

37
 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 Consumer

2. One level distribution.

Producer Retailer Consumer

3. Two level distribution.

Producer Wholesaler Retailer Consumer

4. Three level distribution.

Producer Agent Wholesaler Retailer Consumer

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

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

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

40
 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

performances of selling in G.A.C.L

7000
6000
RS.in carores

5000
4000
3000
2000
1000
0
2002 2003 2004 2005 2006 2007 2008
YEAR

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.

43
 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. PARTICULAR PAGE NO.

1 Introduction 46
2 Organization structure of Finance Department 47
3 Bankers 47
4 Capitalization 48
5 Capital structure 49
6 Management of asset 50
7 Management of working capital 51
8 Performance chart of net profit of G.A.C.L 52
9 Analysis of Financial Ratio & Leverage 53
10 P&L statement of G.A.C.L 59
11 Balance sheet of G.A.C.L 61

GUJARAT AMBUJA CEMENT LTD.

45
 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

performances of Net Profit of G.A.C.L

7000
6000
5000
Net Profit

4000
3000
2000
1000
0
2002 2003 2004 2005 2006 2007 2008
YEAR

Net 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)

= x100
Share Holder Fund

Net Profit) PAT) = 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 = 603.29 (Carors)

- Interest and finance charges = 84.75 (Carors)

----------

EBT = 518.54 (Carors)

- TAX = 50.25 (Crores)

-----------

PAT = 468.29 (Crores)

EBIT
=
EBT

2712
=
1769

= 1.53 TIMES.

58
 8. Profit & loss statement

Ambuja Cements Limited

Profit & loss Account
for the year ended
31stDecember,2007
Rs. in Crores 2007 2005-2006
(12 months) (12 months)
Rs. in Rs. in
Crores Crores
INCOME
Sales Including VAT
/ Sales tax remission
Rs 73.08 crores; 6,469.68 - 7,016.70
31.12.2006 Rs 87.03
crores
Less: Excise duty 764.84 742.18
5,704.84 6,274.52
Other Income 193.53 94.11
5,898.37 6,368.63

EXPENDITURE
Manufacturing 2,135.06 - 2,514.54
Expenses
Variation in Stocks -56.82 - 9.94
Employee's Cost 208.62 233.08
Administrative, 1,382.33 - 1,388.46
Selling and Other
Expenses
Interest and Finance 75.85 - 113.23
Charges
Depreciation and 236.34 - 326.12
Amortization
3,981.38 4,585.37
Less Self
consumption of
clinker cement
(net of excise duty -9.4 -10.82
Rs 2.23 crores:
31.12.2006 - Rs 3.09
croes)
3,971.91 4,574.55

59
Profit before Tax 1,926.46 1,794.08
and exceptional
items
Exceptional items 785.89 47.52
Profit before tax 2,712.35 1,841.60
Provision for - -
Taxation
-- Current Tax 737 - 392
{Refer Note 25}
Income Tax for 202 -
earlier year {Refer
Note 25}
Mat credit entilement - 62
939 330
- Deferred Tax 0.90 3.07
(Refer Note 10)
-Deferred Tax Share (0.01) 0.06
in joinr venture
- Fringe Benefit Tax 5.15 5.28
943.25 338.35
Net Profit 1,769.10 1,503.25
Balance as per last 272.06 151.38
account
2006 of erstwhile - 71.31
ACEL (Refer Note
14)
Limited {INSCL} 0.21
{Refer Note 26}
0.21 71.31
Transferred from 30.00 72.05
Debenture
Redemption Reserve
Transferred to 1,100.00 1,.000.00
general Reserve
Interim Dividend on 380.41 339.89
Equity Shares
Dividend Distribution 64.65 47.67
Tax on above
445.06 387.56
Proposed final 152.24 121.35
dividend on equity
Shares
Dividend Distribution 25.87 - 17.02
Tax on above
178.11 138.37

60
 Balance carried to 384.20 272.06
balance sheet
Earnings per share
in Rs. (Refer Note 8)
Rs Rs
Basic 11.64 10.12
Diluted 11.61 10.09
Notes forming part of
the accounts

61
 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 304.48 - 303.37
Share Application - 0.05
Money, pending
allotment
Employee Stock 0.38 - 1.09
Option outstanding
(Refer Note 8)
Reserves & Surplus 4,356.39 - 3,187.21
4,661.25 3,491.72
Loan Funds

Secured Loans 100.00 317.77

Unsecured Loans
230.42 - 547.61
330.42 865.38
Deferred Tax 378.38 383.86
Liability, net{Refer
Note 10}
Total 5,370.05 4,740.96
APPLICATIONS OF
FUNDS
Fixed Assets
Gross Block 5,23.05 4,542.50
Less: Depreciation 2,271.19 2,053.32
Net Block 2,959.86 2,489.18
Capital Work in 510.03 541.92
Progress (Refer
Note 28)
3,469.89 3,031.10

62
Advances against 186.76 93.01
Capital Expenditure
3,656.65 3,124.11

Investments 1,288.94 1,133.12

Current Assets,
Loan and
Advances
Inventories 518.60 408.82
Sundry Debtors 145.68 89.95
Cash and Bank 650.79 378.10
balances
Other Current 3.91 5.04
Assets
Loans and Advances 205.35 - 295.70
1,587.33 - 1,177.61
Less Current
Liabilities and
Provisions
Liabilities 675.54 532.91
Provisions 493.55 168.68
1,169.09 701.59
Net Current Assets 418.24 476.02
Miscellaneous 6.22 7.71
Expenditure (to the
extent nor written
off or adjusted)
Total 5,370.05 4,740.96
Notes forming part
of the Accounts

63
 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.

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

65