Chapter 1: Introduction to the Study

1
Introduction to the Study

WENDT (INDIA) was established in 1980 as a joint venture between the

WENDT (Germany) and WENDT, India. The main business activity of WENDT
(INDIA) involves manufacture of coated abrasives, bonded abrasive, super
refractories, electro-minerals, industrial ceramics, and ceramic fibers. Further,
WENDT produces about 40,000 different varieties of abrasive products,
refractory products and electro-minerals.

WENDT is known to be an innovator and exports its products to 35countries

spread across North America, Europe, Australia, South Africa, and Asia. All
the manufacturing facilities of WENDT (INDIA) are ISO 9001:2008 and ISO
14001 certified for quality standards and environment-friendly manufacturing
practices respectively. WENDT (INDIA) Ltd. is equipped with a state-of-the-
art Research and Development center which works aggressively on product
development and enhancement.

1.1.1 Scope of the Study

The study has been conducted at WENDT (INDIA) Ltd Hosur,

Tamil Nadu, during the period of December, 2017.The study
focuses on overall understanding of how the various departments
in the organization function and how the theories learnt in class
rooms are applied in real-time scenarios.

2
1.1.2 Objectives of the Study

• To study the functions of various departments

• To understand the process flow in each departments

• To understand hierarchical structure of various departments

• To have an exposure to the working environment

1.1.3 Reasons for selecting the company

WENDT (INDIA) Ltd is one of the major players of the abrasives

and refractories industries in the world. The company has
undertaken several joint ventures and also several major
acquisitions. It is a joint venture of the WENDT Germany and
WENDT.

1.2 Methodology

The information was collected by means of direct interaction with

the top officials and employees. Secondary data are collected
from annual reports or unpublished source that is through quality
reports, brochures, company records and Internet. Collection of
data for the purpose of studying functioning of various
departments and the organization as a whole is based on two
types of data .They are:-

1. Primary

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 2. Secondary

1.2.1 Primary Data

Primary Data is a data collected by the investigator himself for the

purpose of a specific enquiry or study. Mainly data is obtained
through Direct Observation and Direct interview method.

• Observation: - mainly done by observing the general

environment and day to day operation of the company.

• Interview: - Conducted face to face interview with mangers and

company employees.

1.2.2 Secondary Data

Secondary Data is obtained from sources like

• Company Annual Report

• Company Records

• Previous reports

• Websites

• Magazines etc.

4
1.2.3 Limitations

• Difficulty in meeting the officials because of their busy schedule

• Management did not disclose the confidential data

• Busy schedule of the officers prevented lengthy discussions

1.3 Industry Profile

1.3.1 World scenario

The world market for abrasives is estimated at Rs.4500 crores.

The major players are Norton, Baystate and 3M from the USA,
Tyrolitand Treibacher from Austria, and Noritake from Japan.
Norton Co. is the world leader in abrasives and manufactures the
entire range of products in bonded and coated abrasives. The
estimated consumption of abrasives by Eastern Europe & the
erstwhile Soviet bloc is 27% of the world market, Asia 25%,
North America 21%, Western Europe 17%, Latin America and
Africa (5%each) and Australia (1%). The application of grinding
as a material removal process has become mature with very few
niches remaining for exploitation.

As such the world grinding wheel market is not expected to

grow in the near future. The US market is shrinking by 1 -2%
every year and the shrinkage in much more in Europe. However,
demand in developing countries is on the rise.

5
 Abrasives manufacturers worldwide have focused their efforts
on grain development, newer and stronger adhesives for product
durability and better productivity. Other developments have been
in High Speed vitrified wheels of more than 150 mps and
diamond & CBN wheels. In the case of coated abrasives, the
latest developments have been in non-woven abrasives and
scouring pads.
Sales advances are also expected to be healthy in Indonesia,
Thailand and Turkey. Market conditions will be much less
favorable in developed parts of the world, dampened by relatively
sluggish durable goods manufacturing activity. However, higher
per capita incomes will result in increased consumer expenditures
for a variety of products made using abrasives, providing some
offsetting support.
The sales outlook is somewhat stronger for Canada, South
Korea and Spain due to comparatively healthy growth in
manufacturing output in these nations. Nonmetallic abrasives to
outpace metallic products Overall abrasives demand is dominated
by nonmetallic products, which include bonded abrasives, coated
abrasives, and loose abrasive grains and powders. Nonmetallic
abrasives are also expected to register larger sales gains through
2018 than metallic products such as steel shot and grit, and wire
brushes and wheels. Loose abrasive grains and powders will post
the strongest increases of any major product type, bolstered by
their use in several markets with above-average growth prospects,

6
including semiconductor manufacturing and micro abrasion, and
an ongoing trend toward the use of higher value products like
specialty silica and synthetic diamond.
Bonded abrasives demand will climb at the next fastest rate,
benefitting from strong sales growth in China and other fast-
growing developing markets where bonded abrasives account for
the largest single share of sales, as well as by increased use of
super abrasive products. However, coated abrasives will remain
the biggest product category on a global basis, supported by an
ongoing trend toward the use of more sophisticated
manufacturing processes, in which products are machined closer
to their final shape, boosting use of coated abrasives in finishing
operations. Transportation equipment to be fastest growing
durable goods market durable goods manufacturing is far and
away the largest market for abrasives, accounting for more than
three-quarters of all product demand.

1.3.2 Indian scenario

The Indian bonded abrasives have eight units in the organized

sector with a total installed capacity of 13381 tonnes per annum.
A large number of units exist in the unorganized sector and their
capacity is 2500 tonnes. The overall capacity utilization in the
bonded abrasives industry is estimated to be about 85%. The total
size of this market is estimated to be about Rs.190 crores in value.
The coated abrasives industry has six units in the organized
7
sector with a total installed capacity of 540,000 reams per annum.
The unorganized sector caters to the lower-end requirements and
has a capacity of about 75,000 reams per annum. The capacity
utilization in this industry is about 60%. The total size of this
market is estimated at about Rs.110 crores by value.
WENDT (INDIA) Limited has arrange of over 40,000
different products and have a dominating presence in all the
segments of the industry. They account for 55% of the super
abrasive market, which in terms of value is estimated at
aboutRs.7004lakhs.

The other players cater predominantly to localized demand,

manufacturing specific categories of products. The main problems
faced in respect of exports are those of price, credibility and
delivery schedules. However, the industry forecasts an annual
growth rate of 25% with the emphasis shifting from exporting
abrasive grains to exporting value added finished products. Most
of the manufacturers have foreign technical collaborations. The
collaborators provide R&D support through product/process
upgradation and manpower training. Indigenous manufacturers
have been successful in bringing out internationally used products
and adapting them to local needs. This has been due to a
continuous dialogue between the manufacturers and the user
industry. However, the initiative lies with the user industry, who
with their foreign collaborators, identify new products and

8
processes in use internationally and then communicate this to
indigenous manufacturers who react by developing them.
The raw materials used are abrasive grains of Aluminum
Oxide, Silicon Carbide and Zirconia of grit size of 8 to 1200.
Grains of grit size more than 600 are imported. Fine grains can
be manufactured in house but the low volumes do not justify
high investment in machinery. The conventional abrasives are
also expensive compared to the internationally available products
because of higher raw material and power costs. Raw materials
used in coated abrasives, that are imported, are special paper for
water proof backing, fiber and splicing agents.
The major manufacturers have well equipped in house R&D
setups with the main objective of developing new products and
processes aiming at cost reduction and productivity improvement.
The expenditure on in house R&D for the major players is about
2% of annual sales turnover. None of the research institutions like
IITs & CMTI are doing any research in areas related to abrasives,
but for some work related to super abrasives at CGCRI and NPL

9
1.4 Competitors

In India there are four main players in this Industry. Apart

from WENDT, SNAM Abrasives, Orient Abrasives and Grind
well are the major players. In order to mitigate the competition
risk, WENDT entered into a joint venture with CUMI and CUMI
holds 40 percent of its share capital. After the joint venture, it
now offers full range of abrasives to its Customers viz.
conventional and super abrasives. WENDT is a market Leader in
Indian abrasive industry.

Major Players (Major Competitors):

• 3M Coated abrasives division (USA)

• Abandon silicon carbide of aluminum production complex

(ABASIS)

• Abrasive Grains E.T Powder SA(AGP) France

• ASAHI

• Tyrolit

• Grindwell Norton Ltd

• Super Abrasives(India)

WENDT (INDIA) Limited manufactures the widest range of

Bonded and Electroplated abrasives in the world. The Rs.7004
10
lakhs, the company pioneered the manufacture of electroplated
and bonded abrasives in India, besides super refractories, electro
minerals, industrial ceramics and ceramic fibers. WENDT makes
over 40,000 different varieties of abrasives, refractory products
and electro- minerals, manufactured at 1 location. WENDT has
the distinction of having its manufacturing unit ISO 9001 2008
certified.

1.5 Industry overview

Competition is increasing day by day so that the product

development will be the main criteria. Our mineral resources are
limited so there is a challenge in future development. High capital
investment, limited market, sophisticated technology, availability
of substitute products, product differentiation & import are the
principle challenges in this industry.

1.6 Exports

WENDT industry plays a significant role in the growth of Indian

economy and it is an important component of global trade. It is
one of the largest industries of India and is one of the largest
foreign export earners, accounting for 35% of the gross export
earnings in trade .They export 35 countries across the world.

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1.7 Porters Five Forces Model

Figure 1: Porters Five Forces Model

1.7.1 Rivalry among existing players/competitors

• Government limits competition

• Large industry size

• Fast industry growth rate

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 • Relatively few competitors

Since a large chunk of the processors are lying in the small and medium scale
range of industries, hence internal rivalry is very high. It is also a fact that there
are wide varieties of products that are produced, each one with a different feature.
Though the industry is not stagnant but due to the presence of large no of small
players it becomes mandatory for bigger ones to steal business from their smaller
counter parts in order that the bigger ones wants to expand their output. Also due
to the divergent nature in the scale of operation, firms have different cost
structures. Big players like ASAHI, Tyrolit, Super Abrasives etc. are under
constant pressure to boost sales with an objective full utilization of their
production capacity. Also due to the diverse nature of the industry itself, it often
becomes difficult to match prices posed by small players since they generally
specializes on a particular variety, so they can adjust their prices quickly and
often lead to price wars in the industry and the big ones takes time due to their
focus on relatively greater variety.

Threat of new entrants

• High capital requirement

• Advanced technologies are required

• Industry requires economy of scale

• Geographic factor limit competition

• Entry barrier are high

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 As the number of entrants grew in the industry the market
demand gets distributed among them resulting in the decreasing
of profits of the existing players in the concerned market. Due to
the fragmented nature of the abrasive industry, sometimes new
entrant faces difficulty in case that it does not achieve a
substantial market share to reach the minimum efficient scale; it
usually stands at a cost disadvantage. Due to the unorganized
nature of the industry, many players will want to enter the
industry to enjoy the established market and reap advantages of
economies of scope. Also the SSI policy of the government has
given a tremendous boost to this kind of initiatives by small
players by declaring its reservation policy and also exempting it
from several kinds of taxes. Thus on one side it is evident that any
player can make a smooth entry into the market as also high-
lighted by the fact that higher product differentiation is possible in
this abrasive industry due to the diverse and enormous usage
potential this material possess. But at the same time after entry
getting business is really tough since there are small firms in huge
numbers with limited capital. So if a big firm enters, it can wipe
out the market share and profit margins of a number of small
players as its having sufficient capital to spend heavily on
promotional and advertising activities along with huge
investments in R & D to discover and launch new products. Also
consumers generally value reputed brands so it is also essential in
this industry for a new entrant to invest heavily to establish a

14
strong brand reputation and awareness. Producers who are
diversifying into the above industry from some other related
segment have better chance of success than completely new
entrants. Another challenge for a new entrant is the experience
curve effect due to which existing players enjoys significant cost
advantage but the new entrant stands at a cost disadvantage.
Access to raw materials and technology are difficult for a new
entrant as the industry is already having few big players and
several small players already engaged in competition.

Thus each of them is having contracts with a fixed set of

suppliers as well as customer base, thereby indicating the fact that
it is very difficult for a new entrant in this scenario to steal
business from existing players. Thus only big firms can enter this
kind of market having sufficient capital at hand. As for the
existing small firms therefore the threat is high and might prove
damaging to a large extent.

1.7.2 Threat of substitute products

• High cost of switching to substitute

• Limited number of substitute

With the growing alertness against the use of abrasive in daily

life at an alarming rate, there is a threat of close substitutes. The
following gives information on such threats:

15
1. Super Finishing Stones: Offered in Aluminum Oxide and

Silicon Carbide abrasives. Grit range is offered from 500 to

6000 as per FEPA standards. These Finishing stones are
offered with suitable treatment based on the need of the
application - Sulphur Wax, Shellac &Resin.

2. Abrasive Stones: Sticks and Stones’ Made in the USA

abrasive line includes: Specific application abrasives,

sharpening stones, abrasive files, slip stones, jointer stones,
pattern stones, dressing sticks, ”India” oil stones, tool room
& diefinishings tones, burr breakers, honing stones and
honing equipment, rubbing bricks, polishing & finishing
stones, boat stones, rubber abrasive sticks, cotton fiber
abrasive sticks, natural Arkansas sharpening stones, abrasive
mounted points, and much more.

3. Grinding Wheels (Super Abrasive Ltd):

The art of producing high quality abrasives products consists

in finding out the correct composition of raw materials,
combined with correct production procedure for every
individual application. The raw materials used are
Aluminum Oxide (brown, pink, white & SA) and Silicon
Carbide (black & green).The most important part of the
grinding wheel is the vitrified bond which joins the grains.
We use various types of bonds specially developed for each
operation of grinding and manufacture wheels upto 500mm

16
 in diameter for center less grinding, surface grinding and
cylindrical grinding. We have also developed special cool
cutting bonds for use on work pieces like drills, milling
cutters, saws, gears, thread grinding etc., where cutting
quality & low heat generation are especially important.

1.7.3 Bargaining power of buyer

• Product is important to customers

• Large number of customers

• Limited buyers choice

Due to the wide applicability of abrasive in every industry, it is

evident that buyers in this industry are huge and they range from
small to big sized firms. The end user industries for abrasive are
Agriculture, Infrastructure, Electronics, Packaging and
Automobiles. Each of this is again a vast sector compassing
several areas requiring abrasive usage. In this case, buyer power
is largely determined by firm size and its scale of operation.
Because if a firm is producing a standardized product, in that case
it is definitely operating in volumes that per unit cost is low. This
type of firms will definitely have high bargaining power due to
the presence of large no of abrasive processors.

Also such a firm will not make tie up with only one abrasive
processor, as in times of exigency if the abrasive processor fails,
17
then the entire production of the firm will come to a complete halt
and the firm may have to incur huge losses and earn a bad
reputation. In that sense, it can be said that Agriculture,
Infrastructure and Packaging have low to medium bargaining
power whereas automobiles and electronics have high bargaining
power.

1.7.4 Bargaining power of suppliers

Production inputs are similar. Generally supplier power is

investigated through concentration of supplier, volume
importance to supplier, differentiation of inputs and switching
costs of firms in the industry. A few factors which increase the
supplier powers are (a) presence of few suppliers (b) presence of
large number of purchasers (c) high costs of switching suppliers.
Supplier power is highly rein- forced when a supplier has control
over prices. There are a large number of small firms with a variety
of product differentiation. Due to the wide applicability nature of
abrasive in a variety of spheres, there is a great difference in
demand also. To cater to manage this demand, there are some
firms focusing on producing a single product with features
making it suitable for only a specific usage. Also there are some
firms producing a product with wide application areas. There are
also firms that are producing two or more related products that
serve as raw material to pro- duce a finished product in another
firm. The Indian abrasive industry is essentially an oligopolistic
18
market. The abrasive manufacturers and the equipment
manufacturers are the suppliers for the abrasive processors. Since
there are many players (ASAHI, Tyrolitetc.) in the abrasive
manufacturing sector supplying essential raw materials to the
large number of processors, bargaining power of these polymer
manufacturers is high.

But there are huge numbers of equipment manufacturers which

are also small firms and since there are large number of
processors, competition is fierce as firms are small in size they
operate in small volume, hence number of orders are equally
important for maintaining the bottom lines. As regards to
switching costs, the figures are high for switching polymer
manufacturers because of their small no but low in case of
switching equipment manufacturers due to the presence of small
manufacturers in large numbers. Thus it is clear that the fact that
in the abrasive industry, the abrasive manufacturers because of
their huge numbers have low control in pricing their products.

1.8 PEST Analysis

PEST refers to all political, economic, social, technological,

environmental and legal factors affecting any industry. The
objective of PEST analysis is to objectively study the
environmental factors facing a firm, company or an industry. The
external environment affects the company in many different
19
manners and un-like internal environment it cannot be influenced
much.

Political Factor:

Difficulty in obtaining clearance and leases from the Central

government and State government. There are various clearances
which need to be obtained from different ministers stated below:

• Ministry of environment and forests

• Central Board of Excise and Customs

• Department of heavy industry

• Ministry of labor

Political factor mainly includes tax policy, labour law,

environmental law, trade restrictions, tariffs, and political
stability. Political factors may also include goods and services
which the government wants to provide or be provided (merit
goods) and those that the government does not want to be
provided.

Political control by the government includes Land fill tax,

Carbon targets, land- fill targets, Trading schemes, Legislation
and agreements, Recycling credits and public sector procurement
20
policy.

Economic Factor:

Economic factors include recycle prices, technology costs,

local labor costs, transport costs, competition, market demand and
access to finance. Economic factors also include economic
growth, interest rates, exchange rates and the inflation rate. These
factors have major impacts on how businesses operate and make
decisions. Exchange rates affect the costs of exporting goods and
the supply and price of imported goods in an economy.

Social factors:

Mining and utilization of coal beds leads to serious problems

of environmental pollution such as: Land degradation, Noise
pollution, Pollution of local streams, rivers, ponds. Social factors
include the cultural aspects and include health consciousness,
population growth rate, age distribution, career attitudes and
emphasis on safety. Trends in social factors affect the demand for
a company’s products and how that company operates. It also
includes consumption patterns, public aware- ness to recycling,
NGO campaign and media campaigns.

21
Technological factors:

A sustainable development can be achieved by using a

scientifically proven technology. Many technological
improvements have helped the manufacturing industry in cost
controls, emission controls, and mineral conservation. There are
many concerned efforts for introduction of new technology and
technology upgradation not only in the sphere of exploration and
exploitation but also in other spheres like safety and conservation.
Technological factors include technological aspects such as R&D
activity, automation, technology incentives and the rate of
technological change. They can determine barriers to entry,
minimum efficient production level and influence outsourcing
decisions. Technological shifts can affect costs, quality, and lead
to innovation.

Environmental factors:

Environmental factors include ecological and environmental

aspects such as weather, climate, and climate change, which may
especially affect industries such as tourism, farming, and
insurance. Further, growing awareness of the potential impacts of
climate change is affecting how companies operate and the
products they offer, both creating new markets and diminishing or

22
destroying existing ones.

Legal factors:

Legal factors included is crimination law, consumer law,

antitrust law, employment law, and health and safety law. These
factors can affect how a company operates, its costs, and the
demand for its products

23
Chapter 2: Company Profile

24
2.1 About the Company

A leading manufacturer of Super Abrasive Grinding wheels

(Diamond and Cubic Boron Nitride), Special Purpose Grinding
Machines and tools. Offers function- ally superior Products &
Services for Grinding and Machining Hard to Process Materials.
WENDT - technology leaders in Super Abrasive products -
manufactures a wide range of Diamond/CBN Grinding Wheels
and Tools. These products find applications in industries like
Automobile, Cutting Tools, Engineering, Bearing, Steel,
Refractory, Ceramic, Glass, Textile etc.
WENDT - also offers high precision and high performance
specialized CNC Rotary Surface Grinding Machines, Wheel
Profiling and Dressing Machines, Precision Honing Machines,
Guide Roll Grinding and Special Purpose Grinding Machines. We
refurbish WENDT Insert Grinding Machines too.
The fully integrated, state-of-art manufacturing facility of
WENDT (India) Ltd is located at Hosur in Tamil Nadu, just 40
kilometers from Bangalore. It offers a wide range of Super
Abrasive Products, Special Purpose Grinding Machines, Delapena
Honing Machines & Precision Components that cater to a broad
spectrum of industries. Our dedication to uncompromising quality
has made WENDT synonymous with Super Abrasive (Diamond
& Cubic Boron Nitride) Grinding Wheels. There cent acquisition
of Star Diamond Tools a well-known name in Stationary
Dressers, has further strengthened our belief of providing superior
25
quality and delighting customers. Modern Management practices,
adherence to quality driven manufacturing methods and the
committed involvement of every individual in the company has
helped WENDT sustain high levels of excellence and
performance.

Complementing a strong presence in the domestic market,

WENDT also caters to the demands of customers in Germany,
France, Belgium, Russia, Netherland, Switzerland, Spain, UK,
USA, Australia, China and the South East Asian Countries.
Innovation has always been the core strength of WENDT. While
it draws from the vast knowledge and infrastructure of the R&D
center of WENDT GmbH in Germany, it also has its own design
and development capability in Hosur. A dedicated team of
engineers continuously strive to identify emerging trends,
innovate existing products and develop new products to suit the
evolving customer requirements.

2.1.1 Strategic Intent:

“WENDT India seeks to become a significant global player in

offering customized functionally superior products /services for
Grinding and Machining Hard-to-Process materials.”

2.1.2 The Spirit of WENDT India

• Integrity: We value professional and personal integrity

26
 above all else. We achieve our goals by being honest and
straightforward with all our stake- holders. We earn trust
with every action, every minute of every day.

• Passion: We play to win. We have a healthy desire to stretch,

to achieve personal goals and accelerate business growth.

We strive constantly to improve and be energetic in
everything that we do.

• Quality: We take ownership of our work. We unfailingly

meet high standards of quality in both what we do and the

way we do it. We take pride in excellence.

• Respect: We respect the dignity of every individual. We are

open and transparent with each other.

We inspire and enable people to achieve high standards and

challenging goals. We provide everyone equal opportunities
to progress and grow.

• Responsibility: We are responsible corporate citizens. We

believe we can help make a difference to our environment

and change lives for the better. We will do this in a manner
that benefits our size and also reflects our humility.

2.1.3 Objectives

• To maintain the market leadership.

• To minimize the cost incurring in production process.

27
 • To maintain the product quality.

• To be competitive at all markets.

• To be compliment to all global quality standards.

• To maintain the top position in the industry.

• To utilize the new technological changes for the benefit of the

company

2.1.4 Forward into the Future

WENDT Limited is gearing for its next phase of growth and

expansion. Growth that could be defining and provide a quantum
leap in terms of terms of scope and scale .Continuing its journey
in sustainability , the company has drawn up plans for expansions,
acquisitions and synergistic alliances with international
technology providers.
WENDT’s vision is value driven and based on trust and
enduring people relations. Relationships that transcend
transactions and celebrate sustainability as an integral part of
growth.

2.1.5 WENDT Business Distribution (As per Revenue)

WENDT is known to be an innovator and exports its products to

28
35 countries spread across North America, Europe, Australia,
South Africa, and Asia. All the manufacturing facilities of
WENDT(INDIA) are ISO 9001:2008 certified for quality
standards and ISO 14001 certified for environment-friendly
manufacturing practices and OSHAS18001 certified for health
and safety respectively. WENDT(INDIA) Ltd was established in
1980. The R & D wing comes out with constant innovations and
product upgradations of products, which makes the company a
world leader in grinding technology. Its core competence provides
total grinding solutions which enables maximum grinding
efficiencies and reduced cost for customers.

29
 Figure 2: Business Distribution

2.1.6 WENDT Culture

• Follow Code of Conduct in all our dealings

• Respect for the individual

• Performance and Result orientation

• Positive Attitude

30
 • Open Communication & Information sharing

• Concern for Environment

• Concern for Safety and Cleanliness

2.1.7 WENDT Best Practices

• Common Uniform

• Common Canteen, Washroom

• No separate secretaries

• Operational Flexibility

• Multi-Skilling

• Self-Directing Teams

• 10 Minutes 5S

2.1.8 Corporate Group

WENDT India draws its Technological Superiority from WENDT

GmbH which is a part of Winterthur Technology Group (WTG)
Switzerland and Sound and Ethical Management practices from
Murugappa Group.

While WENDT GmbH-the pioneers in Super abrasive tooling

31
solutions and high precision grinding machines for Insert grinding
and Steel industries forover8 decades, the 100year Murugappa
Group is the market leader in diverse businesses such as
Engineering, Abrasives, Finance, General Insurance, Cycles,
Sugar, Farm Inputs, Fertilizers, Plantations, Bio-products and
Nutraceuticals having 29 companies with manufacturing facilities
spread across 13 states in India. The group is among the fastest
growing diversified business houses in India.
WENDT India known for its diversified and impressive
Product Portfolio, Innovation strategy, strong Product
Development, Personalized technical services and providing
Technology Solutions in Grinding to its 750+ direct customers in
the domestic market. WENDT India believes indirect sales to its
customers who are serviced through highly trained application
oriented sales engineers located in all major Industrial cities
across India. Exports constitute over 30% of WENDT India’s
total business.

32
2.1.9 Board of Directors

Mr. M. M. Murugappa -Chairman

Chairman of Tube Investments of India Limited
Director of Mahindra & Mahindra Limited
Infotech Enterprises Limited

Mr. Edmar Allitsch - Director

Managing Director WENDT GMBH
(Alternate Mr. Peter Verholen)

Mr. Shrinivas G Shirgurkar - Director

Managing Director of Ace Designers Limited

Mr. K. Srinivasan - Director

Managing Director of Carborundum Universal Limited

Mr. K. S. Shetty - Director

Managing Director of Taspa Tools Private Limited

Ms. Hima Srinivas - Director

2.1.10 WENDT Management Team

Mr. Rajesh Khanna- Chief Executive

33
Mr. Venkatesh M. S. - Unit Head
Dr. S. Santanu Mandal- Head - Technology & R&D
Mr. S. Sundariya- Business Head - Machines & Precision Components
Mr. D.K. Hotta- Business Head - Super Abrasives
Mr. Mukesh Kumar Hamirwasia- Chief Financial officer

2.2 Mission and Vision

2.2.1 Vision

• A dream to become a Multinational Company, Operating

manufacturing plants and Sales offices in Asia / Pacific.

• A dream to assume Global Leadership in Wheels / Tools /

Hones manufacture in the WENDT Group.

• A dream to become The Company with the highest market

capitalization in the CUMI sub-group.

• A dream to become The Company that will be the bench

mark for all ratios in the WENDT / Murugappa Group.

2.2.2 Mission

WENDT (India) Limited aims to be a Customer Intensive,

Innovative Company with a strong Total Quality Management
Approach, leveraging the parental association to become a World
class company in the field of Super abrasives product, Machinery
34
and Precision Components in the Geographies it operates.

2.3 SWOT Analysis

2.3.1 Strengths

• To maintain equality and dignity all employees are provided

with uniform and are strictly in need to maintain personal

hygiene.

• The company provides value for money to the customers

through their better quality and innovative products.

• They follow the hierarchy (Scalar Chain) but at the time of

urgency they can directly approach the higher authority.

• The products are made as per the requirement and the

diagram provided by the customer. So they maintain high

standards.

• They have lot of greenery around the factory, which helps in

controlling the emission.

• The company treats customers with respect and concern

• WENDT is having a better organizational climate and

manage the environment effectively. The company grows in

an accelerated manner with new products and services.
• ISO 9001 certification also helps in obtaining some orders as

well as maintaining the standard of the company.

35
2.3.2 Weaknesses

• They do not take frequent feedback from the customers.

• They don’t upgrade the product until the customer comes for

upgradation.

• They are concentrating more on existing customers rather

than making new customers.

• Promotion is based on the seniority not on performance.

• They do not provide opportunity for young talents.

2.3.3 Opportunities

• Wide range of product helps ingrowth.

• Having no competitors in Precision Components provides

opportunity to capture more market share.

• The company can produce new and improved products with less

labor and advanced technology.

• Globalization and liberalization can make its products globally

acceptable.

• The company can employ best brains from top business and

technical institutions for better working and management.

36
2.3.4 Threats

• Local Vendors making similar products at cheaper rate.

• As company focuses on specific market or customer

requirement, so they continue to cater set of people with limited
market share.

• WENDT faces stiff competition from world majors. Power and other

equipment’s are expensive.

• The demand for abrasives has fallen down because of industrial and

economy slow down.

37
2.4 Products

2.4.1 Super Abrasives

Abrasive is a type of very hard material. Abrasives are used in

a wide range of domestic, industrial and technological
applications. Abrasives are used to finish or shape a workpiece.
Super Abrasive is extremely hard and can abrade any material.
It is used in the form of cutting tool, grinding wheels. As we
know diamond is the hardest material, it is the property (hardness)
as a cutting tool but the weakness is, at the higher temperature it
is not stable and it reacts with ferrous metals. So dealing with
iron, steel doesn’t goes well.
Cubic Boron Nitride (CBN) is less hard and more stable than
diamond. It is used for steel, iron or alloy. The CBN is produced
by the Research & Development team of the company and
produced to the manufacturing plants. Super Abrasives are:

38
 Business Distribution

Resin Bond Wheels & Tools

It is the first and the oldest bond made by the company. Being a
very versatile bond, its range of application covers more than half
the machining tasks for which Diamond and CBN Grinding Tools
can be used. It has a thick layer of Diamonds compared to other
bonds.
Features:
39
 • Can be used in dry & wet grinding

• Can grind thermally sensitive material

Characteristics Recommended Applications

Soft / Easy Grinding Action. Tool & Cutter Grinder
Widely available. Surface Grinding
Cost Effective. OD Grinding, Double disc grinding
Good mechanical Abrasive Resistance. Hob Grinding
Effective in both Wet and Dry Creep Feed Grinding
applications.

Table 1: Resin Bond

Figure 3: Resin Bond Wheels

40
Metal Bond Wheels & Tools

It is similar to Resin Bond and these wheels are made by sintered

metal powders along with Diamond and CBN particles. It has a
thick layer of Diamonds compared to other bonds. They exhibit
higher mechanical stability and thermal load capacity which gives
them greater resistance to wear in comparison to Resin Bonds.

This advantage is valuable for profile grinding and machining of

materials with strong abrading effect like glass, ceramics, and
ferrite. Coolant is a must for Metal Bond Wheels.

Characteristics Recommended Applications

High Thermal Conductivity. Form Grinding
High Wear Resistance. ID Grinding
Good Abrasive Retention. Honing
Long tool life. Glass Grinding
Holds profile very well. Steel Grinding

Table 2: Metal Bond

41
 Figure 4: Metal Bond Wheels

Hybrid Bond Wheels

Carbide Drill/ End Mill manufacturers clearly favor high

productivity and consistent quality. These innovative, new
generation Hybrid Bond Wheels meet the exacting needs of
Carbide Drill / End Mill applications by grinding faster, ensuring
minimal strain on the machine and component. They also ensure
higher material removal, lower cycle time, without compromising
on the surface finish. They can be used for both fresh tool
manufacturing and sharpening of CNC tools and cutter grinders.

42
Rotary Diamond Dressers
• Diamond Profile Rolls: These Dressers, shape grinding

wheels in the shortest possible time. Their Features are:

– Profiling grinding wheels in one step through plunge grinding.

– Profiling from the simplest work piece to most complicated

shape.

– Meeting exact precision demands.

– Offering high economic efficiency.

• Diamond Form Rolls: These Form Rolls shape grinding

wheels in automatically controlled CNC dressing operations

in the shortest possible time. Their Features:

– Profiling grinding wheels by moving the Diamond Form

Roll along the required contour.

– Profiling from the simplest work piece to most complicated

shape.

– Meeting exact precision demands.

– Offering high economic efficiency.

• Diamond Dressing Blocks: These Dressing Blocks are ideal

alternatives to Rotary Dressing Wheels in applications where

mechanical dressing is considered uneconomical. Ideally
preferred for surface grinding applications.

43
 Galvanic Bond Wheels & Tools

It is a system where a single layer (Thin Layer) of abrasives are

sprinkled on the wheel body and held in place by a metallic
matrix. Since Nickel is used as the bonding material, Hardness
and Toughness are ensured. It is the biggest vertical in the
company and is seeking a demand with exports. The products are
expensive and are precise, so they are covered with insurance.

Characteristics Recommended Applications

Economical tools for form grinding. Jig Grinding
Complex profiles are easy to Form Grinding
achieve.
Good profile retention. Cylindrical I.D / O.D Grinding
Very aggressive wheels. Creep Feed Grinding
Tool life relatively short. Gear or Spline Grinding

Table 3: Galvanic Bond

44
 Figure 5: Galvanic or Electroplated Bond Wheels

Vitrified Bond Wheels & Tools

These are manufactured in standard and controlled induced

porosity from closed to very open bond structures. Induced
porosity reduces grinding forces, allows efficient chip removal
and optimizes cool ant supply to the grinding zone. This enables
the work piece to be free from thermal damage and excessive
tensile stress.

45
 Characteristics Recommended Applications
Very good Abrasive Resistance. Form Grinding
Rigid Bond. ID Grinding
Easy to true (Porous systems). Cam Grinding
Good Profile Retention. Creep Feed Grinding
Long wheel life. Super-finishing

Table 4: Vitrified Bond

Figure 6: Vitrified Bond Wheels

46
Honing Sticks
Diamond/CBN Honing sticks, achieve better cost per component,
cycle time & overall productivity. All types, of steel, alloys, cast
iron, ceramics, glass and difficult to grind materials can be
successfully honed by any one of these super abrasives based on
material and applications.

PCD/PCBN Tools & Wear Parts

Dressers with PCD (Poly Crystalline Diamond), MCD (Mono
Crystalline Diamond), CVD (Chemical Vapour Diamond) cater to
the specific requirement of precise dressing consistent wheel
performance.

Stationary Dressers
The company offers STAR range of stationary dressers for
various industry applications.

• Single point Dressers.

• Multi-Point Dressers.

• Grit Impregnated Dressers.

47
 • Cluster Type Dressers.

• Blade Type Dressers.

• Chisef Type Dressers.

Applications: The dressers are used for ODand/ or side dressing

of conventional wheels; they can be used on Cylindrical Grinders,
Surface Grinders, Tool and Cutters. Also for Larger Profiles, Male
or Female Generations on wheels or to remove the existing
profiles. They can also prepare the wheel for a fresh form.

Figure 7: Stationary Dressers

Brazed Tools
Brazed tools are manufactured with the unique, state of art brazed
bonding system, under controlled atmospheric condition. While
48
Brazing the diamond/CBN crystals are permanently brazed to the
steel substrate by chemical bonding. With this process, the
diamond crystals remain on the too and continue cutting until the
diamond/CBN points actually wear flat.
Chatur is a diamond disc, primarily focused on hard surfaces
in the construction industry.

Figure 8: Brazed Tools

2.4.2 Non -Super Abrasives

As a part of diversification, other than Super Abrasive Products is

called Non Super Abrasive. Non Super Abrasive deals with
customized machines and precision components. WENDT
manufactures high-precision grinding machines for specialized

49
 grinding applications.

CNC Rotary Surface Grinders

There are two models in CNC Rotary Surface Grinders WRS- 300, WRS-
600 (Vertical/ Horizontal). Application: Precision grinding of Auto
Components, Valves, Ceramics & Refractory Parts, Dies and Moulds etc.

Figure 9: CNC Rotary Surface Grinders

Wheel Profiling Machines

Application: Dressing and Profiling of Straight and Convex Diamond or

50
 CBN Grinding Wheels. The machine had four different models WDM 8P,
WDM8V, WDM 15, WDM25.

Features:

• Ergonomically designed

• Operator friendly

• Rigid design

• Precision work and wheel life

• Customized spindle front nose

CNC Tungsten Carbide Roll Grinder D 506

Application: For grinding of Circular Groves of various profiles in TC
Rings.
Features:

• Powered by Siemens Controls

• For grinding of Circular Groves of various profiles

• Custom-built Grinding Cycle

• On-line Measurement of Groves

• Supplied with Custom-built Coolant System

51
 Figure 10: CNC Tungsten Carbide Roll Grinder

Notching & Branding Machine - Wencut405

For Milling of notches on Tungsten Carbide Rings.

• User friendly and custom built screens for various methods of

Notching

• Quick selection of various types of programs for notching /re-

notching

• Suitable with custom built PCD Tools & Accessories to

enhance productivity

52
 Figure 11: Notching & Branding Machine

Delapena Honing Machines – Powerhone

WENDT India, in technical collaboration with Delapena Honing

Machines, UK offers these machines that are equipped with
automatic feed, for large and heavy components in small /
medium sized batches and prototypes. Suitable for both through
and Blind bores while ensuring excellent stock removal rates.
These compact machines are designed for durability efficiency
and economical honing.
Features:

• Vertical Honing

• Fully adjustable spindle and stroking speeds

• Accurate and repeatable stroking movement

53
 • Hydraulic stroking motor

• Bore diameter range- 25.4mm to900mm

• Integrated worktable

• Automatic feed system supplied as standard

2.4.3 Precision Components

The company makes customized flanges to suit various

makes/models of grinding machines, may it be Surface Grinder,
Cylindrical Grinder, Centerless Grinder, Creep Feed Grinder and
other similar machines.
Hardened and Ground Flanges: Ground & Hardened flanges
with close tolerances manufactured by Wendt are ideally suited for
both Conventional and Super abrasive wheels. Wendt makes
customized flanges to suit various makes/models of grinding
machines, may it be Surface Grinder, Cylindrical Grinder, Centre
less Grinder, Creep Feed Grinder and other similar machines.

Figure 12: Precision Components WENDT Super Abrasives

54
 2.5 Balanced Score card

Figure13:BalancedScorecard
55
Chapter 3: Organizational Design

56
 3.1 Present Organization Structure

Figure 14: Structure of Organization

57
Figure 15: Structure of Human Resource Department

Figure 16: Structure of Finance Department

58
 Figure 17: Structure of Marketing Department

Figure 18: Structure of Information Technology Department

59
Chapter 4: Business Levels and
Functions and Processes

60
4.1 Functions of Human Resources Department

Human resources are the people who make up the workforce of an

organization, business sector, or economy. ”Human capital” is
sometimes used synonymously with ”human resources”, although
human capital typically refers to a more narrow view (i.e., the
knowledge the individuals embody and economic growth). Like-
wise, other terms sometimes used include ”manpower”, ”talent”,
”labor”, ”personnel”, or simply” people”.
Wendt’s business strategy is evolved from Domestic Global
market trends, Economic Growth, Competitor Analysis and
Customer Industries Growth Plan. HR strategy is linked to
business strategy and facilitates the organization to achieve the
objective by building people capabilities.
CUMIs concern for people has been driving force for the
growth of the organization over the last 5 decades. The sustained
growth over the past several years attributed to the knowledge,
skill of the people and technology. HR has always been one of the
focus point in the business strategy. The HR strategy is carefully
linked to the Vision, Mission and overall business strategy of the
Company.

4.1.1 HR Values

• Concern for people

• Integrity

61
 • Customer Orientation

• Team Work

• Continuous Improvement

4.1.2 Principles

• Whether workmen or management staff, employees are

employees. They are not different blocs, but two faces of the
same coin

• Unions are treated with respect and are made partners in the progress

• Harmony and peace cannot be at the cost of dilution of

organization ethos. Fairness and Firmness will govern all

employee relations

• Communication and dialogue would be the essence of

managing relation- ships

• A proactive approach and a state of mental and physical

preparedness would help in managing unpleasant surprises

4.1.3 Performance Appraisal

A performance appraisal, also referred to as a performance

review, performance evaluation, (career) development discussion,
or employee appraisal is a method by which the job performance
of an employee is documented and evaluated. It is a committee of
5 members known as PARK committee, which consists of CEO,
62
Unit Head, Business Head, HR Head and CFO. Performance
Appraisal is based on the Bell Curve Method.

4.1.4 Training &Development

CUMI Learning Centre (CLC) The ability to learn purposefully

from our past and from our work and to work and to foster the
learning of one another have become critical business skills.
These skills are shared and developed across all levels of the
organization. With this objective CUMI Learning Centre was
established. This facility is used extensively for team learning
activities like CFT, SGA, seminars and conventions.

CLC is the Training and Learning center for Wendt (India)

Limited. CUMIs Human Resource Strategy is to develop and
sustain critical competencies and to leverage on these, through a
facilitating structure and culture. CUMI underwent a transition in
training-From Training to Learning. This was facilitated through

• Job rotation

• Team work to resolve issues - in the form of TQM initiatives

• Sharing breakthroughs and learning’s

• Flexibility /Multiskilling

• SHE initiatives

• Career Planning

63
 • Development of Change Agents

This has enabled in creating a team of involved, responsive and

innovative people. Employee Learning through Instructor Led
Learning to Business Driven on the job training resulting in job
enrichment. The employee learning plans are:

• Business Driven

• Personalized

• On the job / job specific

As per the HR strategy, the input for the training need

identification is obtained from:

• Business Requirements

• Skill matrix / Competency requirements

• Quality System Procedure-requirements

• Environment System Procedure requirements

• Performance Appraisal

The needs identified are consolidated in the form of a training

calendar. The program deliverables are met by finding the
suitable internal or external faculty.

64
4.1.5 Corporate Social Responsibility

Corporate Social Responsibility has never been a cliché at Wendt.

It is a philosophy that is ingrained in its psyche. Serving the
society, caring for its employees, sharing their joys and sorrows
and more important ensuring that their families are rewarded for
their forbearance through annual get together, has made Wendt
truly humane in its approach to business.

4.2 Functions of CUMI Centre For Skill

Development

Corporate Social Responsibility has never been a cliché at Wendt.

It is a philosophy that is ingrained in its psyche. Serving the
society, caring for its employees, sharing their joys and sorrows
and more important ensuring that their families are rewarded for
their forbearance through annual get togethers, has made Wendt
truly humane in its approach to business. CCSD was started in the
year 2012 by Murugappa group.

4.2.1 Eligible Criteria

• Youngsters with the minimum qualification of 8thstandard

• Rural students those who could not afford to continue their

education due to family background

• Candidate should have a rural background(SC/ST)

65
4.2.2 Skill Development

• CUMI, Ranipet plant is committed to develop the Apprentices

through integrated skill development process due to following

reasons such as;

• NootherIndustriestocomeforwardtotraintheApprenticesothert

hantheir requirements

• Normal trend is to go for training candidates from the technical

institution

• Youngsters with technical qualifications are normally

employed in unskilled areas

• No focus on skill development

• The practice of Engaging rural ITI students in Apprentice

ship training is not followed in our region

• Scarcity of Institutions offering courses in Ceramic trade in the

region

• To fulfill the internal requirements with competent person sin

ceramic trade

Benefits for Community:

• Employment generation

• Educational opportunity for 100 rural youth

66
 • Two years of full-fledged apprenticeship training in Ceramic trade

• Enabling students to get employed

• Trained them to be technically skilled

• After completion of two years training they have to appear

for All India Trade Test conducted by Department of

Employment and Training, Govt. of India

• Successful Apprentices will be awarded with NATIONAL

APPENTICE- SHIP CERTIFICATE (NAC)

Facilities provided:

• Monthly Stipend with attendance bonus

• Uniform and Safety Shoes

• Canteen

• Practical training at Shop Floor

• Class Room Session

• Computer Skills

• Training on Industrial Safety, Fire Safety, First Aid &5S

• Resulting in improvement of standard of living

67
4.2.3 Evaluation

As the apprentice shave been trained on Ceramic Operation, there

is a wider range of opportunities for the Ceramic Trade Holders in
sanitary ware industries, Refractories and other ceramic related
industries. Out of the 35 Apprentices who had completed their
training in the last few years, we have absorbed 18 among them as
Trainees in our plant and some of them in group companies.

• We feel proud of our organization as it has paved the way for

the upliftment of the education & employment opportunities

to those who were not able to afford for continuing their
higher studies.

• At the end of the 2 years apprenticeship training, they are

able to get government certificate without any investment.

• If they had chosen some other ITI instead of BTC, they

would have experienced the financial barriers being

economically backwards section to complete their 2 years of
technical education. Whereas under BTC, they were given
monthly stipend practical trainings in our own organization.
More- over, they were extended other welfare facilities such
as canteen, uniform and shoes.

4.3 Functions of Finance Department

It prepares trail balance, MIS and audit report. The financial

68
department earlier used Tally but from 2006 they are using SAP.
The accounts department does book keeping, accounting and
reporting functions. It undertakes the work of pay sheet
preparation of staffs and workers, payment of bills, vouchers and
other financial transactions. They also prepare financial reports of
the company. This department also keeps income and expenditure
accounts, which includes the sale and disposal visible cost,
contribution, fixed overheads, operating and non-operating
income etc. For making budget they use trend analysis method in
which last 3 years trend is considered and next 3 years are
considered for exploration.
Duties of accounts assistantis cash transactions, accounts
payable, payment of tax. Trial balance, capital expenditure are
maintained by supervisor. Responsibilities of the manager/care
making monthly report, auditing and fund management etc. AGM
a/c has the full responsibilities of accounts department.

They also calculate break even sales of each department at end

of December and it is compared with their actual sales and there
sultis shared with each department so that each department can
decide their future 3 months sales policy. They follow Internal
Financial Control. Analysis is done every 3 months for Quarterly
Report. Internal Audit is done every 6 months.

They have a contract with internal auditors for 3years.

Major functions of this department are:
69
 • Keeping depreciation account.

• Preparation of income and expenditure account

• Preparation of budget for three years.

• Departmental budgeting

Capital structure:
Wendt’s capital structure consists of equity share capital, reserve
and surplus. It is a debt free company.

Sources of funds:
Issuing of share and short-term loans from the company’s
consortium of banks like State Bank of India are the other source
of funds. Working capital requirement is managed through
Overdraft A/c with SBI, Cash credit with 2crores limit and letter
of credit & bank guarantee of around 6crores.

Earnings from the operation:

Last year company’s operating profit and profit before interest
and tax(PBIT)were 1582.33 lakhs. In addition, the net profit was
1169.33lakhs.

Accounting policies:
The company policy has a special accounting policy, which is the
basis of the financial statement. It is in accordance with the
70
accounting standards issued by the Institute of Charted Accounts
of India.

Revenue recognition:
Revenue is measured at the fair value of the consideration
received or receivable. Revenue includes excise duty but excludes
sales tax / VAT, discounts and returns as applicable.

1. Sale of goods

Revenue from the sale of goods is recognized when the

goods are dispatched and titles have passed, at which time all
the following conditions are satisfied:

• the company has transferred to the buyer the significant

risk and re- wards of ownership of the goods

• the company retains neither continuing managerial

involvement to the degree usually associated with

ownership nor effective control over the goods sold

• The amount of revenue can be measured reliably

• It is probable that the economic benefits associated with

the transaction will flow to the company and

• The cost incurred or to be incurred in respect of the

transactions can be measured reliably

2. Rendering of services

Revenue from rendering of services priced on a time and

71
 material basis is recognized on rendering of services as per
the terms of contracts with customers.

3. Dividend and interest income

Dividend income from investments is recognized when the

shareholder’s right to receive payment has been established. Interest
income from a financial asset is recognized when it is probable that
the economic benefits will flow to the company and the amount of
the income can be measured reliably. Interest income is accrued on a
time basis, by reference to the principal outstanding and the effective
interest rate applicable, which is the rate that exactly discounts
estimated future cash receipts through the expected life of the
financial asset to that asset’s net carrying amount on initial
recognition.

Foreign currency transaction:

Transactions of foreign currency are recorded at the rates of exchange
prevailing on the date of transactions and the exchange loss or gain is
recorded within the profit and loss account as forex gain/expenditure.

Depreciation:
Depreciation is provided on straight line basis.

Investment:
It is meant to be held for long term is accounted at cost.

72
Fixed assets:
Fixed assets are stated at a cost of acquisition and subsequent improvement
thereto inclusive of taxes, dues, freight, and other incidental expenses
related to acquisition, improvement and installation less accumulated
depreciation.

Borrowing costs:
Borrowing costs are capitalized as part of qualified fixed assets when it is
possible that they will result in future economic benefits.

Inventories:
Inventories are valued at lower of cost and net realizable value. Cost
includes all direct costs and applicable production overheads to bring the
goods to the present location and condition. Excise duty on the finished
goods is added to the cost.

Retirement Benefits:
The contribution of gratuity fund is based on an annual valuation and to the
superannuation is funded to LIC of India.

Goods and Service Tax:

Most of their products come under 18% tax slab but precision
components come under 28% tax slab.

73
Credit Period from Suppliers:

• 45-60 days period from within group suppliers.

• 30-45 days period from other suppliers.

Credit Period to Debtors:

• 30-45 days for most of domestic debtors.

• 60 days for few domestic debtors.

• 50-60 days for international debtors.

For new customers no credit period is provided as they have to

give 100% payment in advance.

4.4 Functions of Marketing and Sales Department

WENDT has a team of marketing executives spread all over the

country to facilitate larger sales and customer services. The
company has a traditional marketing wing, which looks after the
sales and services operations. The team also con- ducts market
surveys and trend analysis, which helps the management to make
correct and important decisions. It also helps in making
modifications of existing products and introduction of new
products. The main responsibilities of this department are the
following:

• Retaining the regular customers

74
 • Identifying new needs arising in the market

• Market expansions

As a part of market research, the sales executives study the requirements

of their customers, both new and existing customers. They collect
information from the customers and prospective customers directly.
There is a value target and based on this production is carried out. Main
customers: The main customer industries of the WENDT are:

• Automobile industry.

• Engineering industry.

• Steel industry.

• General metal cutting industry.

• Polishing of metal surfaces.

And the main customer companies are:

• Ashok leyland

• Bosch.

• Tata steel.

The company gets leads through internet, references from

customers, exhibitions, customer approach. The company focuses
on Direct Customer Marketing.

75
Segmentation, Targeting and Positioning

• Segmentation: Every segment has different competitors,

globally as well as Indian (Local).

• Targeting: Company tries to satisfy the customer based on

their requirements.

• Positioning: Positioning is based on the different segments

and the verticals of the product.

The Company applies marketing strategy for gaining new

customers, serving existing customers. Cost based pricing strategy
is applied. The company has 40,000 variety of products customer
base of 2,800customers.

Procedure for order:

• Receive and Inquiry (i.e, ICO -Document)

1. New Inquiry

2. New Process Development

• Receive application details, customer drawings; collect the

dimensions and the sample piece.

• Discuss with the product manager for the New Product Development
76
 only.

• Submit the quotation and drawings for approval.

• After the approval is made, order will be taken and punched

and order will be placed.

• If any further changes will be seen on the later scenarios

(i.e., after the order are placed).

Customer Relationship Management:

• Meeting with the customers.

• Conducting get together, seminars for customers.

• Senior Management meeting the customers.

• Sending New Year greeting cards to all top 100customers.

• Invitations of other occasions are sent by mail by IT team or

Receptionist.

Branding:
WENDTmadeitsbrandwellknownintheindustrythroughcontinuous
hardwork and determination. This was possible because of the
following reasons:

77
 • Consistent high quality and reliability

• Fair pricing practices and transparency

• Relationship management

• Customized product variants

Sales:
Ninety percentage of the sale is done through direct orders from
the customers and10% is from the dealers. Last year the
company’s revenue from operation was around rupees 14080.64
lakhs.

Pricing strategy:
They use cost based pricing approach as they mostly make customized
product.

Promotion:
Promotion is done using the brochures, trade shows, technical journals
and magazines.

4.5 Functions of Purchase Department

The purchase department negotiates price with the suppliers,

vendors for raw materials, Consumables, spares, packaging. They
look after the whole company’s purchases and make sure the
78
requirements from each department are bought and given in time.
A sample order is taken from the new supplier and based on the
quality of the product the supplier is confirmed.

Few major suppliers are:

1. Diamonds: Diamond Innovations, Element Six, Arhiant

Diamond Suppliers.

2. Other Suppliers: Siemens, Schindler Electric, Rittal, Sabic,

TT Steel Sup- pliers, Alloy Steels.

Subcontracting is the practice of assigning part of the obligations

and tasks under a contract to another party known as a
subcontractor.

Figure 19: Purchase Process

79
4.6 Functions of Information Technology Department

The IT department maintains SAP, DMS and employee portals,

office 365 cloud service (Microsoft). Database: SQL 2012 and
Operating System: Windows 2012 R2. The IT department stores
the data on data servers and cloud. The SAP was introduced in the
company in the year 2006, and the IT department maintains and
upgrades the SAP every year like Hardware and software
changes, Infrastructure. In 2010 HR Module was added and so on
every year SAP is upgraded by the inhouse developers of the
company.

4.7 Functions of Total Quality Management

Department

Quality policy of WENDT

We shall proactively meet customer expectation by providing
quality products and services.
This will be achieved through:
• Total commitment of the management in implementing an

effective quality management system.

• Continual technological development to fulfill changing needs of

the customer.

80
 • Total employee involvement for continuous improvement.

• Enhancing employee competence through education and training.

• Building mutually beneficial relationship with suppliers.

Responsibility of quality department is checking the quality of the

raw material because; the quality of the final product is primarily
depending on the raw material.
Quality is checked during-

• Raw material is taken for the Production.

• Mixing the raw materials.

• Furnacing.

• Crushing.

• Before packing the final product.

There are two laboratories in WENDT for checking the quality, they are:-

• Chemical lab

• Physical lab

In the chemical lab, they check the chemical properties such as

gravity, percentage of weight of each metal in the product, fusion
level, and combination of the product etc. In the physical lab, they
check whether both the final products i.e. super abrasive and non-
81
super abrasive is made as per the diagram provided by customer.
They follow Total Quality Management (TQM) system for
sustaining and improving the quality of the products. The TQM
values followed by the company are:

• Excellence in all aspects of business.

• Customer first attitude.

• Total involvement is key.

• Implement through team-work and cooperation.

• Emphasis on leadership.

TQM Philosophy
TQM is customer driven, companywide approach towards all
round excellence through committed leadership with focus on
quality, people processes. WENDT maintain their TQM through
various activities. These are: 5 S Policy: WENDT adopted 5s
policy for improving the quality of product and work.

1. Sorting

• Segregate required usable re-workable and absolute item.

• Dispose-off the unwanted items.

• Clear off walk ways

2. Systematizing
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 • Use labels, color codes for easy identification

• Use index doe files, records, drawings etc. to facilitate retrieve

ability. Plan storage with accessibility.

3. Shining

• Inspect the supply lines, scrap yards and gardens.

• Clear up workplace, machine and tools after use

• Identify root cause of loud noise, vibration, head noise,

vibration heat buildup in equipment and take remedial

action

4. Standardizing

• Establish checking procedure

• Create visual control

• Device ways and means and means to expose problems

5. Self-discipline

• Develop action plan for maintaining the self-standards

• Give unambiguous advice

4th March Company celebrates the Safety day and the pledge is
read by all the employees of the company.

5th June Company celebrates the world Environmental day and

all the employees will take Environmental pledge.
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Packaging:
The packaging is done in many ways for different products as per
the product requirement. The packaging’s is done in wooden boxes,
plastic boxes, ceramics boxes and send to the customer as per their
requirement. One piece of product is packed in one box only.
They will insert the sponge as per the product shape and size.
They have their own carpenter who will make the wooden boxes
as per shape and size of product.

4.8 Functions of Research & Development

Department

They do research on only super abrasive products and for this

some machines are obtained from non-super abrasive department.
They do research on Diamond, CBN and their Cubic Structure.
Outside consultation is also taken for research.

Functions of R & D

• New product Development

• Technology Development

• Patents acquisition for such new development

• Technological issue in machines are taken care

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 Any new feature required by customer then its feasibility,
•
potential in future is checked.

• Constant follow up for at least 1 year for new product development

Two types of validation is done:

• Internal Validation: Testing is done within organization.

• External Validation: This is done at customer place to check

whether it suits them and whether product is compatible with

their technology or not as technology can’t be changed.

4.9 Functions of Operations Department

• The operation function of the organization is to bring

together the raw materials to the production and

manufacturing process to make products that is suitable for
consumer use.

• With the change in technology and quick adapting of the

same results in overall improvement in the efficiency of

employees and also leading to improvement in
environmental support with added safety.

• Safety is always the top priority and the company

continuously thrives to achieve the superior standards

through adoption of best practices. Safety Management is

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 also practiced at the unit level through monthly Safety
Committee meetings.

• 5S day is observed in the organization where the company

looks into the overall progress and maintains the 5S within

the company for better quality purposes.

• 5S is a Japanese methodology Seiri, Seiton, Seiso, Seiketsu,

and Shitsuke which means Sort, Set in order, Shine,

Standardize and sustain respectively which describes how to
organize a work space for efficiency and effectiveness by
identifying and storing the items used, maintaining the area
and items, and sustaining the new order.

• The 6th element is safety which the company is striving hard

to achieve to the level of perfection.

The organization has a direct channel of distribution and where

the packaging is done using cartons where the special packages
are also made with different pricing. The raw materials are
allocated and store din side the organization in their warehouse.
The organization does not follow just in time concept as the
production process is timing consuming. Customer relationship
management is taken care by the respective department the ads
making this unique in the company so that the department heads
will have specific targets in order to attract the customers and
maintain a healthy relationship.

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Chapter 5: Findings, Recommendations and
Conclusions

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5.1 Findings

• Has a good organizations structure and management system

• Provides better working conditions to workers

• Growth possibilities

• A very effective tool storage system is places in the company

• Quality process is done as per German quality management

system

• Safety measures and facility is available and emergency

equipment acts greatly

• Marketing is done by the help of tradeshows

• Effective approval process is in place to ensure quality of the

manufactured products

5.2 Recommendations

• The marketing strategies followed are less and as per the

study it is recommended to the company to come up with

new strategies so that they can expand their business and the
growth rate can also reach to a maximum level.

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5.3 Conclusions

WENDT is an ISO 9001:2008 certified company. It is an

excellent employer and producer of world class abrasives and
refractories. This has happened only with the support of staffs and
workers in the company. The management is dynamic and
supportive and patiently hears workers voices and acts
accordingly.
For my study I visited their Plant producing different products
and interacted with some of the employees there. I could also
inter act with management staff that provided me with adequate
knowledge regarding various departments in the company. All the
staff is very co-operative. The study has helped me to know the
objectives, vision and mission, values, rules and regulations
followed by the company. Company follows Japanese concept of
housekeeping-5S programmes. The privileged opportunity of
doing two weeks long organization study proved out to be highly
beneficial in the learning point of view. It gave a practical
knowledge about then nature of the business firm and it had
enabled me to have an exposure to the majority of the topics
related to company functioning, structure, policies, promotional
activities, working environment, organizational culture etc. It has
also helped me to acquire the practical appl0ication of the theories
studied in the class room.

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