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PRACTICAL STUDY REPORT OF ECHJAY INDUSTRIES PVT. LTD.

Under Gone Training Period

Declaration
I the undersigned LALIT R. BARASIYA a student of S.Y.B.B.A. hear by declare that the project presented in this report is my own work and has been carried out under the supervision of Dr. Vinita agraval of Christ college. This work has not been previously submitted to any other university for any examination

DATE SIGNATURE Place:RAJKOT Barasiya) (Lalit R

 Acknowledgement
I, take up myself lucky enough to study in this faculty and that too at reputed christ college Rajkot. It so happens as our university has recognized the practical study of industry in our course as a subject. After visiting this unit I obtained practical knowledge and experience of the unit administration and management I am very glade to present this report before you. I would like to thanks Miss Vinita Agraval, who was my guide & mentoring for this project to give me such type of opportunity. I am also thankful to other faculty member of the collage for their help and guidance due to which I could complete my work. I am also thankful to my friends who has helped me to make this report complete. I am

also thankful to manager, officer of Ech Jay. I would not forgot Mr. M.Y. Hathi, Mr. Jigneshbhai cholera and Mr. J.R.Kikani (Manager Personnel) who give me the proper guidance and necessary information about the unit which I have in covered in this report.
Date:Place:Yours faith fully Lalit R. Barasiya

 Preface
As per the syllabus prescribed program by it the is saurashtra university B.B.A.

compulsory to take an Industrial visit in S.Y.B.B.A. and also prepare a general report on the visited company. The theoretical knowledge given in the class room is not sufficient for student to know whole angel of business practical experience and knowledge is also necessary so I visited Echjay industries pvt. Ltd. this visit plays an important role in solving the problems and developing opportunity and situation of industrial unit. I have prepared this report to the best of my knowledge.

INDEX

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

Particulars General Information Production Department Personal Department Marketing Department Finance department SWOT analysis Future Planning Conclusion Suggestion Bibliography

Index
SR. NO. PRATICULAR

1 2 3 4 5 6

Introduction History of organisation Basic information Organisation Structure Types of Department Customers & suppliers

INTRODUCTION

Today, world is Global. India will become a developed country because fast growing in technology development. Echjay industries Pvt. Ltd. is large-scale industry, which have very good name in the forging industry. Recently, Echjay has been getting certificate of ISO/TS-16949. In India only 7 company and in the world 60 company have this certificate. So, this is the big achievement at the company. Echjay to a industries even is this also one of the Industries producing steel forging large its company to Imports many machinery from the foreign countries end exports finished products European countries. Company's customer in India are BHEL, Reliance, GNFC, IPCL, ONGC, GAIL, Mahindra & Mahindra, Telco, GSFC, IOCL, Railway Board, VSSC and in the foreign Clibo Industries development & industrial

(USA)AL Husain (Kuwait), etc. Today, Echjay forged rings have become vital components of AGNI LONG RANGE as well as tacnical missiles, main BATTLE TANKS, armored Vehicles and other armaments. This unit was established in 18 December 1971, at Rajkot. Its head office is at Mumbai.The founder of this unit is Mr. Harilal Jaichand Doshi. In the initial stage this unit was started on small basis means, there were only 100 employees and now days it has about 1400 workers. They like Railways, have developed about 100 Defence, ONGC refinery, types of products. It has 80 major customers petrochemicals etc. Since last 30 years, Echjay industries has become large manufacturers of steel forging and achieved a wide market. It becomes a first industry of Asia and

3rd

in

the

whole plant in

world their

which

has

fully

automatic

location

named

closing excel ring rolling plant.

History of The Unit

Having well established in art industries, the founder-chairman. Late shree Harilal Jaichand Doshi,

foresaw great potential in the field of the steel forging also. The name of the company denotes Hmean Haribhai Jay denotes J means jaichand so, the companys name selected from German language. Thus ECH(H) JAY(J) industries pvt.Ltd. signifying his name came into being as modest forge shop in the year 1971. Since then Echjay has systematically grown into large scale manufacturers of steel forging using advanced technology and equipment. The company products that strictly conforms to international specifications and standards of quality. A decade ago Echjay steels division, forged into space-age when its profile rings played an important role in the fabrication and successful launch of Indias SLV rockets. Today Echjays forged rings have becomes the vital components of the Agni, Rohini, long range and technical missiles, main battle tanks, armored vehicles and other defense component. In the civil sector, Echjays wheels constitute a substantial part of the Indian railways. Echjay has been exporting flanges and other forging over to developed countries like USA,

CANADA, UK, FRANCE, GERMANY, JAPAN, AUSTRAILA, as well as SOUTH AFRICA. Reliably supplying to such a broad spectrum of users with both standard and custom built forgings, Echjay has built up a reputation for excellence in quality and services all over India and in several countries around the world. With an investment of Rs. 100 crores in its plant and machinery and a turnover of Rs. 60 crores Echjay has in built capacity to produce 4000 tones of forging per month. The on going modernization plans covers not only updating equipments but also includes intensive training of workforce process wastage and to optimize conservation. The main stem for this success is high standards of quality that Echjay has attained. Fine turned checks of every stage of every stage of production are features of background and forwad integration. to certain energy

Basic Information
Name of the unit

EchJay Industries Pvt. Ltd. Form of organization Private limited company Year of establishment 18th December,1971 Address Registered office EchJay Industries Pvt. Ltd. 83, bajaj bhavan, th 8 floor, nariman point, Mumbai 400021. Phone :- 022-22024044, 22028674,22021221 Unit EchJay Industries Pvt. Ltd. Lalpari lake road, Rajkot 360003, Gujarat, India. Phone:- 0281 2387841 Website WWW.echjayindustries.com E-mail :- Echjay@wilnet online M.D. Mr. Vinodbhai Doshi

Directors Mr. Devendra Doshi (executive director) Mr. Paras Doshi Mr. Bharat Doshi (G.M.) Mr. EP Casteliano (G.M. Technical) Bankers State bank of saurastra Bank of India Indian overseas bank Co Operative banks HDFC bank Auditors Mr. Nareshbhai Kumbhani Products Railways wheels Aeronautical spare parts Rolling rings Crane belts Heavy chains Shafts links Gear shifter flank Connecting roads & shafts Brand Name Ech Jay Employees

Total :- 1400 Officer :- 30 Staff :- 320 Workers :- 850 Contractors :- 200 Machine capacity 4000 tone per month Total sales turn over 300 crores Competitors Gujarat Forging Dynamic Forging Forge and forge Awards Best forging unit awarded by (Indian boiler registration act) ISO 9002 International automobiles industries TS 16949 award (Technical specification)
ORGANIZATION STRUCTURE OF THE COMPANY

Managing director General manager

Production Marketing manager manager

Personnel manager

Finance manager assist.Mgr account officer

assist. Personnel research mgr & dev security officer welfare officer die shop machine manager shop mgr assist mgr assist mgr supervisor supervisor supervisor forge shop manager assist mgr

clerk typist peon

quality control managr assist mgr

supervisor

workers workers

workers

workers

TYPES OF DEPARTMENT
Production planning Raw material department Die shop Forging shop Ring rolling Heat treatment shop Feting shop Machine shop CNC shop Gear shop Milling shop Grinding shop Inspection and quality shop Storage and dispatch

OTHER DEPARTMENT
Generator room Accounting department Purchase department Maintenance department Welfare department

Tools room Security and safety

CUSTOMERS & SUPPLIERS

CUSTOMERS Mahindra & Mahindra Railway ONGC Defence Petro chemicals Bhagvati gas ltd

SUPPLIERS
TISCO Musco Mukund steel ISSC Sail

SR. NO. PARTICULARS INTRODUCTION 1 2 Organization structure 3 Production planning 4 Raw material 5 Production process 6 Plant location 7 Inventory control 8 Quality Philosophy 9 Plant Maintenance 10 Pollution control 11 Scrap & waste management 12 Material handling 13 Store keeping

Index

INTRODUCTION
A factory is set up for producing some or the other commodity. So it is the most essential element. According to Woods Buffa, with decision making related to production process so that the resulting goods or services are produced according to specifications in amounts and by the schedules, demanded at a minimum cost. In other words production means utilization of resources like labour, money, energy material, equipment, etc. In this company the production department is most important department because due to the production department the company is more popular among there competitors. As in the production department the company manufactures good quality of the product. The production department of the company includes the main product, machinery and most important thing for the company in the production department is quality control which is also

included

by

the

company in

there

production

department.

ORGANIZATION CHART
Managing director General manager Production manager

die shop machine manager shop mgr assist mgr assist mgr supervisor supervisor workers workers

forge shop manager assist mgr

quality control managr assist mgr

supervisor

supervisor

workers

workers

PRODUCTION PLANNIN & CONTROL

Products are manufactured by the transformation of raw material into finished goods. This is how production is achieved. Planning looks ahead, anticipates possible, difficulties and decide in advance as to how the production, best be carried out. The control phase makes sure that the programmed production is constantly maintained. Echjay has a PPC Department. PPC Department & Marketing jointly works. First, marketing department take the basic information about the order from customer. Then marketing department is given this basic information to the PPC Department. All the departments of the company are interconnected with the computer network. Daily information is updated in computer

about production, raw material, finished goods, etc. PPC department studies the feasibility after securitization, which sends IT report to marketing department, which finally decides, about order accepetence

Raw Material
The starting point of the production process is the raw material. It is basic thing required for the production. The raw material used by Echjay is purchased from the different suppliers. Echjay has different sources from which its requirement for raw material are fulfilled. The chief among them are TISCO, ISPAT, MUKUND STEELS etc. The raw material received at the unit is first weighted and its quality are checked. In Echjay there are two types of raw material used, it in round and billet in shape. According

to its quality there are three types of raw material used by the company. They are (a) Carbon steel (b) Alloy steel (c) Stainless steel Echjay uses the raw material after they are tasted by laboratory. After laboratory testing they give them colour code according to the quality. They have one big colour code schedule. This color code schedule is important when different material is used in different product.

Production Process
Production process means by using different technique transfer raw material into finished product. Echjay industries producing different types of steel product following different steps as under (1) (2) (3) (4) (5) (6) (7) Raw material Cutting Heating Forging Trimming Heat treatment Finishing so they are

(8)

Final inspection

1) Raw material: The ECH JAY INDUSTRIES purchase raw materials according to its requirement. They purchase raw material from TISCO and other steel ind. Then they do their process. 2) Cutting : After receiving the raw material on the raw material yard they cut all the raw material in cutting department as per required weight, shape, length and size. The ECH JAY has a three type of cutters (a) (b) (c) After Hack seal Brand seal Shearing machine the raw material as per

3) Heating : cutting requirement, it goes to the furnace for heat

treatment. After getting required temperature, It sent for further process. 4) Forging : Forging is usually performed on hot material allowing for smoother flow easier deformation, the heated materials are forged between the two die blocks to give it required shape. 5) Trimming : After forging, the material must be cooled uniformly and protested from moisture or cold air. To remove the excess material that occurred due to forging. 6) Heat Treatment The jobs are heated to increase its hardness and to improve its grain structure. After heat treating it is passed through finishing department. 7) Finishing :The jobs are roughly finished by grinding and finally finished by shot blasting process and then it is gone for the final inspection.

8) Final Inspection: The jobs are finally tested and dispatched. Inspection is done to check the products right from raw material to the final product and it is gone to the packing department. The above whole process requires about 4 to 5 hours time to transfer raw material into finished goods. In Echjay 30% of whole production is exported in European countries south east Asia, west Germany, Australia To follow above production and procedure the executive of the company hold weekly meetingand seat together and decide the production and pattern

Plant Location
Location play most important part in establishment of company located one place then it is very difficult to change it or impossible so promoters must think it base decision and success or failure of company mainly depend on it. The decision regarding the location of the plant is very important for any organization. Location affects the cost structure and profitability of the plant thought its operating life. The location for the plant mainly affected following factor: 1. Infrastructure facilities 2. Power 3. Fuel 4. Labor 5. Cost of location 6. Transport and communication facilities 7. Government Policy Echjay industries is located near Rajkot in Lalpari Lake, which is an industrial zone, and company gets all the infrastructure facility at concession rate. Echjay industries got help

from the government and labor available in this zone at nominal wage so we can conclude that company is located at appropriate place.

Inventory Control
In Echjay PPC department maintains the 2% to 3% inventory level. Company has a very low inventory level. Finalize the order, after PPC department give the order of raw material as per the requirement. Finished goods are dispatches as per the customers' requirement. Low inventory level means low inventory cost. Echjay maintain very effective inventory level. PPC department collects all the

information about the daily production detail, stock of raw material, finished goods etc. with the help of computer network. Total two months inventory of the required stock and raw material is maintained.

QUALITY PHILOSOPHY
India has a large manpower and raw material available like USA, U.K., AUSTRALIA, CANADA, GERMANY, etc. This given an advantage of producing resources at much cheaper price comparing to other countries. That's why India has a chance to get manufacturing order. But India is looked down for its quality assurance. Hence automobile spare parts importing company prefer to purchase their components from the reputed supplier or from the ISO/TS-16949 certified company which gives assurance about the standard quality products. Following are the company quality policy and objectives.
QUALITY POLICY:

We are commuted to manufacture and supply products, which meet the agreed quality requirements of our customers. We

shall work for continuous improvement of our processed and operations.

QUALITY OBJECTIVES:

Enhance customer satisfaction. Maintain recognized quality management systems. Achieve Optimize inputs. Reduction of waste. Train and motivate personnel at all levels so as to inculcate quality consciousness. Foster teamwork. Ehjay has got ISO/TS-16949 certificate. It is the big achievement of the company. So, company is very conscious about the quality on that Basis Company has good name in the world. operational utilization excellent of energy through and all techno-logical improvements.

PLANT MAINTAINANCES
Company using two different type methods for plant maintenance. Break down Maintenance Preventive Maintenance

Company has one maintenance department. In the break down maintenances, whenever any break down or fault arise in the plant then inform the maintenance department and they are check the problem. Preventive maintenances is done before the breakdown of any machinery decided by the factors like total life of the machine, last maintenances performed; decide by the export change in the noise of the machine, heating of the machine. These all are sensory facts which one can sense whether the machine require the maintenances or not and studying the past history of the each machine, the break down can be prevented eventually from its break down point.

POLLUTION CONTROL
A success of an industrial unit lies in its production of its products without polluting the surroundings. An industrial unit for its functioning depends a lot on the environment. Without proper environment conditions an industrial unit cannot function properly no matter however efficient the unit may be. If the pollution is inevitable then the industrial unit should find out some method to neutralize the effect of pollution. It should implement ways which would cut down the pollution emitted by the unit and help to keep the environment clean and pollution free. Echjay has also taken steps in order to control pollution in the surrounding of their factory shop.

SCRAP AND WASTE MANAGEMENT

Waste management has several dimensions engineering, geographic, social and management. Its basic purpose is to minimize the overall waste in a given system. Waste here refers to waste of all kinds of resources, but especially the material resources which constitute a significant portion. Some wastage is inevitable in any conversion process of inputs into outputs. To reduce waste, we have therefore to maximize the use of resources. Resource management and waste management are supportive to each other. In Echjay the management of scrap and waste is done in an appropriate manner. The forge piece which is left at the end of forge process can be reused or can be sold as scrap. Company is also planning to establish Reverse Integrity Plant. In which all scrap of steel are pressed and that can be re used as a raw material.

MATERIAL HANDELING
The material handling process means movement of material from one place to another place for the purpose of processing. They are moved with either the manually type or of mechanically different

material handling equipment. In Echjay every department is having a network of steel tracks for moving the trolley with the goods department to another. The jobs done by material handling equipment include lifting, moving, dropping, positioning, holding, realizing, stocking, etc. In the shop, heavy material transfers with the help of overhead Crain. So, company has to maintain very effective material handling and on the basis of this material transportation

time is decrease in the company and material is made available at the right time where it is required

STORES MANAGEMENT
The efficiency of the manufacturing operation largely depends on the efficient functioning of the receiving and stores operations. Receiving and storing are the services functions and involve much of the proper work. The direct production cost is reduced by strategic location of stores ensuring quick issue and elimination of production stoppages caused by waiting for materials. It indirectly reduces the production costs in terms of reduced investments in materials, storage space and insurance, elimination of pilferage and theft, obsolation, reduced handling cost, etc. Echjay has also store department when all raw materials, tools and equipment are stored in one place only. All figures like weight, height ,date of receiving and all other details about the material and other things is maintained by manager of store department. When any department or unit required anything they contact to officer of store department and

as per requirement goods are delivered to all department.

Sr. no.

PARTICULARS

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Introduction Organization Structure Working Hour And Shift Recruitment And Selection Training and development Wages And Salary administation Promotion And Transfer Records Of Employees Trade union Grievance handling Industrial relation Performance appraisal Welfare of personnel Working on ESI & PF scheme

Index

 Introduction
Manpower is the heart of the business. Personnel organising, management directing, involves planning, the controlling,

procurement development, and maintence etc of the human resources in enterprise. Personnel management plans about manpower. Personnel management selects the employee & recruits the employee. Personnel management also gives such types of training & education to the employee. Personnel management gives such types of the promotion to the employee. Employees are the greatest assets of an organization. In Echjay, labor unlike other factor of

production is an active factor and controls all other factors and coordinating them to get the maximum output at minimum cost and also maintains development of man power planning too.

ORGANIZATION STRUCTURE
Echjay has separate personnel department having its own organization structure. The flowchart of personnel department is given below. General manager Personnel manager Personnel officer Senior assistant Clerks Time keepers It is easy to understand the organization of personnel department. In Echjay, we know

that General Manager is the key man. Under the supervision of G.M., there is personnel manager who looks often personnel department. Under the personnel manager personnel officer is there and under personnel officer senior assistants are there and under senior assistants are there and under assistants clerks and timekeepers are there. The company follows a line and staff type of organization structure refers to the frame work of relation of each employee to the other. The total number of personnel working in Echjay is as under OFFICER STAFF WORKERS TOTAL 846 1411 CONTRACTORS 220 28 319

With this much staff at the disposal of Echjay it manages the large scale organization

in an efficient and economic way. The unit has a good hold over the employees and the management of the employees is also worth appreciating.

Working Hour And Shift

Each unit has its own timekeeping system. Every company must have timekeeping system to measure the regularity of its employees. In time keeping system the arrival and departure of employees is recorded. Echjay has following schedule : SHIFT 1st 2nd 3rd General Weekly off DUTY (HOURS) 08:00 A.M. TO 04:00 P.M. 04:00 A.M. TO 12:00 P.M. 12:00 A.M. TO 08:00 P.M. 09:00 A.M. TO 05:30 P.M. As per department

In every shift, they provide half an hour for lunch. Timekeeping means how to work in the unit with a limited time. In Echjay, there is a card system means when employees enter in the company, he has to keep card with him and timekeeping office collects the cad from worker everyday. On the basis of cards it makes note of presence and absence of employees. They also make note of employees who leave the organization before the duty time. They check leave report of worker and the CL and EL at the end of the month. This workers. system of is too of much helpful in and

calculation

wages

employees

Recruitment And Selection

Recruitment means search of prospective employees to suit the job requirements. After the prospective applicants, right type of persons to match the job is selected. The success of an organization depends largely upon the team of skilled and qualified workers who are chosen out of a number of applicants for the job. In Echjay, recruitment is done as per requirements. For this purpose the respective head of the departments uniforms the upper level that a vacancy is created. The management thereafter uniforms the general public by advertisement that such a vacancy

is created and interested candidates may apply. After the applicants are received they are scrutinized and sent to department head. The department head conducts interviews of the candidate and the appropriate among them are selected. The selected candidates are employed in the firm on the condition that they have to provide their services to the firm for minimum three years. For their purpose the candidate has to sign the bond prepared by the company and then that candidate is placed in to position fit for him. In Echjay industries the process of

orientation is considered as a welcome a new comer and makes him a feeling that his own job is meaningful and plays very important role in the organization. Echjay is following process for orientation. Inform the time keeping so time record is maintained.

Training and Development

Every organization needs to have trained and experienced employees to perform the activities to be done. Training and development of personnel is a follow-up of selection. It is an improvement and enhancement of different types of skills so that employees can perform their job effectively. Training is a systematic program of organization aims at increasing the attitudes, skills and abilities of workers to perform specific job. By training the employees will acquire new manipulating skills, technical knowledge etc. In the words of Adin B. Flippo, "Training is the act of increasing the knowledge of employees for doing a specific job." Thus increasing the knowledge and skill of employee for better performance on job.

-On the job training method. -Off the job training method. In this company the selected candidates are trained. The time period is generally one year in this unit. The candidates are not sent outside for training. All the necessary training is given within the premises of the company. In the initial stage the candidate has to observe the working of the unit of his respective field under his head. After training is over, he has been placed at the job.

Wages And Salary administration

and salary are

Wages

given

to

the

employee as reward for their contribution to the production process. Wages and salary administration refers to the establishment and implementation of sound policies and practices of employee compensation. Various wage acts and labors acts are used in order to determine the wage of the employees. In Echjay, salary is divided into two categories:

Consolidated salary, Grade salary Persons who have not completed 2 years of their job are given consolidate salary and these personals do not get other benefits like PF, HRA, TA, LTC etc. A person who had completed 2 years of job is bound to get grade salary and he also gets all benefits like PF, HRA, TA, LTC, ATENDANCE BONUS, etc. Persons having 3000 salaries are eligible for ESI scheme. Payment made to labors is generally said as wages. In Echjay, labors or workers are paid wages on the 7th of every month. Salary means money paid periodically to persons whose output can not be easily measured such as clerical staff as well as supervisory and management staff. In Echjay, these employees are paid salary on the 3rd of every month. Payment of wages and salary is

managed by personnel department.

Promotion And Transfer

The term promotion has been defined by Pigers and Miyers, "A promotion is the advancement of an employee to get better in terms of responsibilities, more prestige or status, greater skill and especially increased rate of pay of salary." A promotion is a vertical move in rank and responsibilities. An upward advancement of an employee in an organization to another job, which commands better wages, better status and higher opportunities, responsibilities and

authorities, better environment, hours of work and facilities. Echjay does not follow any particular policy for promotion. Here, they emphasis on performance of the person. They are very strict in the matter of discipline. At the time of promotion they see performance of personnel in terms of attendance. Regularity, skill, discipline etc. Echjay has only branch in Rajkot. So for transfer the worker is sent to the one department to another department.

PERSONNEL RECORDS
Personnel generally records prepared mean and preservation completed of

information if files and documents. They are form reports and they are meant for long-term use. Personnel record is used by management at the time of promotion, transfer etc. of the employees. It contains all the information

about employees like wage, education, and performances, address etc. In Echjay, there are also certain files and registers like attendance register, leave register, bonus register, ESI correspondence file, recruitment file and personnel file of each individual.

TRADE UNION
The organization sometimes faces problems regarding this factor of production. The problems may be pertaining to the matters like payment of wages working conditions, unfavorable condition of management, irresponsible working of the employees, accidents and their claims and other problems relating to workers. The organization has to frame appropriate policies of the smooth running of the factory as far as labors are concerned. In Echjay, there are no major problems

regarding workers. But sometimes problems do arise to unrest among workers regarding wages, working condition and time, allowance etc. In such cases the management probes into the matter and finds out the causes of the matter and also the proper solution of the problem. The company has certain advantages due to union. These advantages may be achieved in terms of more efficiency of workers, increased working hours and reasonable leaves, cooperation towards management etc. The most important advantage of the union to the company is settlement of disputes merely by negotiations.

GRIEVANCE HANDLING
There is hardly a company or an industrial concern which functions obviously smoothly at all times. In some the employees have complaints against their employees while in others it is the employees who have grievance against their employees. A complaint worker constitutes a grievance. The complaint may relate to the quantum of wages, the mode of

payment, payment for overtime work, leave, or many other problems. In this unit and the relationship is between good

management

workers

very

employees are satisfied with their working conditions. So due to this there is no so far grievance records. If there is any misunderstanding it is quickly solved by face to face meeting of workers and management. Thus complaints are solved peacefully and mutual understanding.

INDUSTRIAL RELATION
The expressions industrial relations are used to express the nature of relationships between the employer and employee in an industry or an organization. Where willing cooperation emanates from employees towards the achievement of organizational goals, there is said to be industrial relations. There are many causes which have led to poor industrial relations and there are conditions which can generate goods industrial relations. A correct perspective of the industrial relations position is

possible on an appreciation of the stages of development through which a country has passed over a period of time to the present moment. In Echjay the management and the employees maintain a good industrial relation. They both understand each other and there is no incident of any such dissatisfaction or strike.

PERFORMANCE APPRAISAL
An appraisal of the employee is undoubtedly necessary at the time of his employment. Employees evaluate superiors, fellow colleagues and subordinates. Such evaluations are at times described as ratings. The objectives appraisals are as follows: of performance

To identify areas for further training needs.

 To help determine promotions and transfer. To reduce grievances. To improve job performance. Echjay concentrates on giving performance appraisals to its employees. It gives appraisal to the employees on the basis of performance.

WELFARE OF PERSONNELS
Employees are important assets of a unit. So for better work performance they should be motivated. For this they should be given not only financial incentives but also non financial incentives and facilities. Echjay much concentrates on above facts and gives many benefits to their employees. The company undertakes the following welfare measure to motivate the workers.
LEAVE: Earned leave is given as per the

factories act. However, in the case of supervisory staff & other workmen classified as staff, e.g., watchman, peons etc. gets 30 days EL. There is a casual leave of 8 day to every one including officers. There are 8 paid festival holidays, which are decided in consultation with the workman each year.
HOUSE RENT ALLOWANCE: This is paid to

all work-men who have completed two years of the services of are in grade pay excluding those who have been provided with company's quarters; as under: 1. Gross pay up to Rs.1000/- P.M. Rs.60/P.M. 2. Gross pay up to Rs.1001/- P.M.to Rs.1500/-P.M. Rs.85/-P.M. 3. Gross pay up to Rs.1501/- P.M. to Rs.2000/-P.M. Rs.100/-P.M. 4. Gross pay above Rs.2001/- P.M. per month Rs.125/- P.M. year since the factory went production the annual bonus HA been paid at the maximum i.e. 20%.
UNIFORMS: All workmen including office ANNUAL BONUS: Every

staff are provided with two pairs of uniform per year. In the case of workmen of shop floor it is a strong cotton uniform and in the case of supervisory and office staff it is terry cotton of

god quality. All workmen are provided with the best available industrial shoes in the country.
INDUSTRIAL SHOES:

All the workmen are provided with woolen jersey once in three years. All drivers who are to be out n duty on odd hours are provided with woolen suits.
WINTER WEAR: SAFETY EQUIPMENTS: Interest free loans

are given to workmen in emergency and for purpose such as acquiring a vehicle, construction of house etc. the amount is recovered in easy installments. An amount of about 15 lacks is always outstanding. The workmen have established a welfare fund to contribute every month. The company also contributes Rs.12000/- P.M.
WELFARE FUND:

books and note books are provided free to the children of employees every year. The company is instituting a scholarship scheme for deserving students for higher studies form the current session. cups of tea/coffee are provided free of cost to all employees in each
CANTEEN: Two

EDUCATION AID: Text

shifts. Lunch and snakes are being provided at subsidies rates. During the summer buttermilk is distributed free to every workman on duty. every employee in presented a gift of 1 kg. Sweets.
FESTIVAL SWEETS: On Dashers festival

HOLIDAY TOUR: Once in two years, A 3

days holidays tour is arranges for all workmen. Company bears 75% if the total cost of transport and shakes.
CULTURAL PROGRAMME AND SPORTS:

Founders day is celebrated every year with cultural activities and sports. Competition is being held and suitable prizes are awarded.

WORKING ON ESI & PF SCHEME

ESI: Employee state insurance is one of

the most popular schemes for the employees. The ESI scheme has been designed to the employee under the workman compensation act of 1948. Persons having Rs.6500/- monthly salary are eligible for ESI scheme. This scheme included sickness, death benefits, accidents on duty etc.

For this scheme, in Echjay, 1.75% is deducted form the employees salary while employers contribution is 4.75%. This scheme is mostly beneficial to the employees at the time of accident and sickness.
PF: Provident fund scheme is a king of

saving. Any company having more than 50 employees can join this scheme. This is a statutory scheme meant for welfare of the employees. In India it was started in 1962 and applied in all the industry. It is necessary for every company to provide PF scheme to it permanent employees. In order to get the benefits of those scheme employee should have completed continuous at least 90 days services. Here, in Echjay, under this scheme an employee has to contribute 3.67% is for provident fund while 8.33% is for pension scheme. An employee gets 12% interest on the contribution of his

provident fund.

 Index

SR. NO.

PARTICULARS

1 2 3 4 5 6 7 8 9 10 11

Introduction Organisation Structure Market Segmentation Advertising Product mix decision Price mix decision Market research Competitors Channel of distribution Sales promotion National & International market

INTRODUCTION
Before stepping towards marketing activities, we should know firstly about what is marketing. So, the answer is very simple to understand that, marketing is a set of activities which are necessary to direct and facilitate the flow of goods and services from producer to consumer. It comprises of all activities that are involved in the determination and satisfaction of consumer needs at a profit. Pay C defined marketing as

The creation and delivery of standard of living the society. In short, modern marketing begins with customer needs and ends with customer satisfaction social well being where buyer is the boss. According process of to planning pricing, American and Marketing the and

Association Marketing Management is the executing conception promotion

distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. Echjay has a separate marketing department in Mumbai. Punch line of the company is "Forgings the world trust". Most of the activity of marketing department is done in Mumbai office.

ORGANIZATION CHART
General manager Chief executive Marketing manager After sales advertising officer officer purchase officer Import Manager Export manager sales officer

MARKET SEGMENTATION
Market segmentation is sub dividing of the whole market in to different parts. Each part demand schedule and each demand schedule and each demand schedule represents a group of buyer with similar needs and features. According segmentation to consists Stanton taking Market total of

heterogeneous market for a product and dividing it into several sub markets to be reached with a distinct marketing mix.

The reason for segmenting the market that the market that the market for most product is heterogeneous but not, homogeneous. People have different needs and values there from a marketer can not desire maximum benefit from the analysis of market as whole. There are several bases for segmentation the market which are as follows: o o o o Geographic Segmentation Demographic Segmentation Psychographic Segmentation Behavioral Segmentation

In Echjay company has not clearly segmented it items but company decides segment on the basis of kind of products government market, export market or foreign market, old

customer, new customer, etc. and company makes strategy on the basis of it.

ADVERTISING
Advertising and identified can be defined It as, is paid paid communication of goods services, or ideas by sponsor. communication because the advertiser has to pay for the space in time in which his advertisement appears. Advertising appears in recognized internet, etc. Advertising is any form of non-personnel media such as newspapers, magazines, radio, television, mail, also in

presentation of ideas, goods or services for the purpose of including people to buy. -Wheeler. Advertising has become the core of marketing. With the help of advertising to create the brand image into the market. Echjay mostly advertising through newspapers, hoarding, and handbills.

PRODUCT MIX DECISION

The product is most important single component of the marketing program. The product policy and strategy is the corner stone of a marketing mix. If the product fails to satisfy the customer demand, no additional cost on any of the other ingredients of the market mix will improve the product performance in the market place.

"A product is anything that can be offered to a market to satisfy a want or need. Products that are market include physical goods, service, experience, events, personal place, properties, organization, information and the ideas."
PRODUCT PLANNING:

Planning is deciding in the present what to do in the future. Thus product planning means deciding about the product what it should be in future in the terms of product items, product line, modification of present items, addition or deletion of product, etc. In Echjay product planning is done upon nature of product and consumer demand or latent demand in the market. In the end of every year's last week arrange one meeting about product planning of company.
BRANDING DECISION:

Echjay produce many items railway tyres, flanges, auto parts, etc. and its brand name is Echjay and company logo to identify its product.

PRICE MIX DECISION

Pricing the product is one of the important elements in marketing mix. The exchange value of product is called price. Pricing decision means decision of the determining price of a product. When a company decides a price they have to take number of factors into consideration like cost of products, cost of distribution, cost of storage, transportation, advertisement, etc. and also demand and supply position in market. In Echjay price mix decision is taken very carefully by top management. Company has been providing best quality with reasonable price to its consumer.

PRICING POLICY:

Pricing the product is one of the important elements in marketing mix. The exchange value of product is called price. Pricing decision means decision of the determining price of a product. When companies decide a price they have to take number of factor in consideration like cost pf production, cost of distribution, transportation, advertising etc. and also demand and supply position in market. In Echjay price mix decision is taken very carefully by top management. Company has been providing best quality with reasonable price to its consumer.

MARKET RESEARCH
Market research under customeroriented marketing philosophy can offer current, adequate and accurate information about potential buyers and all other aspects of market environment such as dealers needs and preferences, consumer expectation competition, marketing conditions, etc. It is through marketing research that an enterprise plans the appropriate marketing strategies and implements the marketing concept, and takes a scientific approach to marketing management. Marketing research is a field of experts, requiring special training.

At Echjay ind. produces and deals with forged goods there is no large scope for market research. The company carries with it a wide range of customers. The company does its market research by asking the customers if any change in the quality of product is required or any new products are required by the customers.

COMPETITORS
Todays world is full of competitions. It is very difficult to survive in this competitive world. To survive in this competitive world, the company should try to satisfy the needs of its customers by providing goods and services at reasonable cost. The company cannot compromise with its quality of goods. As there is competition in the market it is very important for the company to satisfy its customers to the fullest and to live up to their expectations.

Echjay industries also has many competitions in the market. Competitors of Kadvani Forge Ltd. are as follows: Gujarat Forge Ltd. Kisan Forge Ltd. Micro-Tec Forge Ltd.

CHANNEL OF DISTRIBUTION
Distribution channel consists of sets of interdependent organization involved in the process of sustaining a product or service from the point of production to the user at the point of consumption. Hence it can be said that it is the distribution channel which makes the product available in market for consumption purpose. Echjay using the zero level channel of

distribution in the Indian market. Means direct selling from manufacturer to consumer. Company does not require middle men for its selling. In the case of export of the products company keep traders of middlemen. Company with customer has a short channel of

distribution so company is directly connected

SALES PROMOTION
Sales promotion is an important instrument in marketing to lubricate two Marketing efforts. Sales promotion is referred to the promotional activities other. Than personnel salesmanship, advertising and publicity, which stimulate consumer purchasing and dealer effectiveness? The manufacturer may have a good product, reasonable price, attractive package, etc. he may have good sales effort, but many more things than orders are to be achieved. The sale of the product has to be promoted through a number of influences at the place

where retailers and prospective buyers meet face to face i.e. at the point of purchase. Today sales promotion is necessity and not merely a luxury or fashion Echjay uses sales promotion to some extent. They promote their sales by offering quality items in various colour, weight price etc.

NATIONAL AND INTERNATIONAL MARKET

NATIONAL MARKET:National market refers to the market within the boundries. ECHJAY is producing such type of product that it should be very much useful for many companies . ECHJAY has its national market very wide and comparatively equal to international market. ECHJAY supplies goods in MUMBAI, DELHI, KOLKATTA, CHENNAI, and HEYDRABAD etc

INTERNAITONAL MARKET:International market deals with the buyer and the seller from the different countries. The business transactions take place at world level. International market refers to the market above the boundaries of India. ECHJAY has been exporting flanges and other forgings even in well developed countries like USA, CANADA, FRANCE & WEST GERMANY, JAPAN, AUSTRALIYA, SINGAPORE, AND SOUTH AFRICA etc

INDEX

INTRODUCTION
SR.NO . 1 2 3 4 5 6 7 8 9 10 11 12

PARTICULARS

Introduction Organization structure Financial planning Capitalization Management of working capital Share capital Management of fixed asset Management of cash Capital structure Leverage analysis Ratio analysis Profitability & Dividend Distribution It is universally accepted thing that all economic activity is based on the purpose of earning. So by considering this we can say that money or finance is in the center of the world. The finance in a modern business world is the life blood of a business. It is impossible to

imagine business without finance. So, it is said that Business men take money to make money. In the words of Henry Feyol, Finance is like an arm, leg you use it or loss it. Finance provides base for the company. No company can run without sufficient finance. So, if the organization has money and it is managed properly the organization gets more and more money. So, finance management is necessary for any organization and that is why financial department comes into existence. In this department different financial manager perform the activities regarding rising and using finance to operate the business. In Echjay Steel finance manager Mr. Bharatbhai Doshi is procuring and utilizing financial resources in such a way that company maximize its profit. Company has issued only equity share capital and company's finance department is very efficient.

ORGANIZATION STRUCTURE
General manager

Finance manager Assistant Manager Senior Assistant Officer Typist Peon Cash & Bank Manager Assistant Account Clerk Costing Manager

FINANCIAL PLANNING
One of the most important functions of the financial manager is that of planning. In order to formulate plans he must first know his

companys a use

immediate is

position. by

Financial realistic

planning is essential and profitable use of funds which determined investment decisions. The success or failure of production and distribution manner in performed. In Echjay industries the decisions regarding finance are crucial and involve huge amount of funds. These decisions affect the long term liabilities and profitability of the firm. So, these decisions are taken by managing director in consultation with departmental heads. Then the financial manager performs the act of carrying out these decisions into sub-plans and minor plans. The company makes long term plans for financial requirement of the business. In such plans, they make budget which remains standard and the actual performance department which the depends finance upon function the is

and results are regularly compared with these budgets. These activities help them to control expenses or expenditures if they run beyond the budget.

Capitalization
According to M.C. Shukla "capitalization is

the sum total of all kind of long term securities issued by company as well as surpluses which are not meant to distributed." Capitalization=ownership capital + long term loans + free reserves + debenture In Echjay steel has issued 2 lacks equity share of Rs.100 each loan and reserves of Rs.97.50 crore and bank loans of Rs.9.50 crores. Company is on good position but company faces problem of overcapitalization because it is private limited and majority profit is plough back in business. So, it is more than what is actually requires.

SOURCES OF FINANCE

Financial Sources are classified as follows:

1. 2.

Long Short

term term

sources-equity etc. sources-advance

shares, from

debentures, long term loans,

commercial banks, trade credit, etc. Echjay Steel has mainly procured finance by issue of equity shares and reserve trade credit loans are used for short term financial sources. Company is trying to decrease its borrowing to retain earning of profit in business.

MANAGEMENT OF WORKING CAPITAL

Working capital may be regarded as life blood of a business; its effective provision can do much to ensure the success of a business while its inefficient management can lead downfall and loss of profit of a concern. Working capital represents the total of all current assets, in other words it is the net cash inflow. At the beginning of a business venture cash is provided by owners and lenders. A part of this cash is invested in tools, machinery, etc in forms of fixed assets which are not to be sold through the normal course of business. They remaining cash is used as working capital to meet the current requirements of a business enterprise such as purchase of services, raw materials, etc. To a financial manager working capital throws challenge and opportunity. The effective management of working capital likes other areas of management requires a dear

statement

of

goals

to

be

perused

and

responsibilities to be allocated. There are mainly two concepts of working capital: 1) et working capital 2) ross working capital PARTICULARS Gross profit Net profit Reserves & surplus Fixes assets Loans & advances Sales Current assets Current liabilities Manufacturing expenses Administrative expenses Selling expenses Sundry debtors AMOUNT RS. 24,80,00,000 4,40,00,000 11,00,00,000 7,15,00,000 2,20,00,000 37,40,00,000 18,09,70,000 5,80,00,000 1,65,00,000 7,15,00,000 55,00,000 5,50,00,000 N G

SHARE CAPITAL

1) Authorized share capital 2,00,000 equity shares of Rs.100 each 2,00,000 * 100 = 2,00,00,000 2) Issued and paid up capital 1,45,000 equity shares of Rs.100 each 1,45,000 *100 = 1,45,00,000 The following information is available regarding the sheres Subscribed by the the directors of the company NO. 1 2 3 4 NAME OF DIRECTORS Mr. Maganlal H Doshi Mr. Manharlal H Doshi Mr. Hasmukhbhai H Doshi Mr. Vinodbhai H Doshi NO. OF SHARE S 14,000 16,000 14,000 15,000 % 9.65% 11.03% 9.65% 10.35%

The following information of shares is allotted to the relative of the directors of ECHJAY INDUSTRIES PVT. LTD. NO. 1 2 3 4 NAME Smt. Ushaben M Doshi Smt. Pushpaben M Doshi Smt. Ranjanben H Doshi Smt. jyotiben V Doshi NO OF SHARE S 14500 14500 14500 14500 % 10% 10% 10% 10%

MANAGEMENT OF FIXED ASSESTS

Fixed asset are those which are of a somewhat or permanent nature (a life expectancy or more than a year) and are used by business in its normal operations, they do not offered for sales. Fixed assets management is the more This important task which a of management has to do in its day to day situations. management becomes greater importance as fixed assets involve high amount as investment and a degree of risk because they have usually a high cost and longer life. In Echjay steel, fixed assets are managed very effectively and efficiently by finance department. registered for Company fixed maintains and in one that assets

company keep records or date purchase of assets, repair, etc. Company has fixed assets in year 2002, 1808 lacks less 472 compare to

previous year.

MANAGEMENT OF CASH
Cash is the most liquid asset that a business owns. It is the basic input needed to keep the business running on a continuing basic and is also the ultimate output expected to be realized by selling the product. A proper cash management necessities the development and application of some practical administrative procedures to accelerate the inflow of cash and to improve the utilization of excess funds. These practical administrative procedures include: 1) Planning of cash requirement 2) Effective control of cash flow. 3) Productive Utilization of excess funds It includes money and such instruments as cheque, money order or bank drafts which

banks

normally

accept

for

deposit

and

immediately credit of the depositors account. CAPITAL STRUCTURE R.H.Wessel defines capital structure as "The capital structure frequently used to indicate the long tern sources of fund employed in the business enterprise. CAPITAL
STRUCTURE

EQUITY

SHARE SHARES + S PREFERENCE

S SHARES

EQTU.

EQTY. EQTY. SHARES + SHARE + DEBENTURES DEBENTURE + PREF. SHARE

Echjay steel has a very simple capital structure. Company mainly depends upon equity share only. Company has equity shares and reserve of Rs. 97.50 crore in capital structure so company is free from liability from interest and easy to manage it.

RECEIVABLES MANAGEMENT
Receivables are assets which created as a result of the sale of goods or services in the ordinary course of business. These are known as, Accounts receivables, trade receivables or customer receivables. A firm, therefore, carries receivables for its customers for some period, which depends upon the requirement of customers at one end and the credit sanctioning capacity of the firm at the other. An analytical framework has been developed to provide insight into the process of the creation and the main determinants of account receivables. The framework should be useful for decision making purposes and managerial functions in the areas of accounts. For Echjay the main source of receivables are bills receivables and debtors. The debtors are informed one day before the due date about their payment. If any debtor pays the amount before the due date then he is given discount on

payment which encourages them for early payment.

LEVERAGE ANALYSIS
In general terms, Leverage may be defined as meeting a fixed cost or paying a fixed return on equity both are used inter changeably. For instance, the words of Weston Holl may be quoted, Financial leverage is defined by either the ratio of total debt to net worth or by the ratio of total debt to total assets. Financial leverage is also referred to as trading on equity. Similarly, according to Waterman M.H. The use of the fixed charge sources of funds such as debt and preference capital along with the owners equity, in the capital structure is described as financial leverage or trading on equity.

There are two ways to calculate leverage which are as follow: -

1)

Degree of Leverage: -

Operating

According to John J. Hampton, Operating leverage exists when changes in revenues produces great change in EBIT. Degree of Operating Leverage = Percentage change in EBIT change in sales Percentage

2) Degree of Financial Leverage: Degree of financial Leverage =

Percentage change in EPS Percentage change in EBIT

RATIO ANALYSIS
The relationship of one item to another expressed in a simple mathematical form is known as ration. It must be interpreted against some standards. Infact an analysis of financial statement is possible only when figures are expressed as percentages or ratios. Ratios can be directly useful for making prediction. Not only those who manage the company but also creditors and its share holders are also interested in knowing in the financial position of

the company which may be possible and easy through ration analysis. There are different types of ratios, by which a companys position is understood, they are as follows: -

1) CURRENT RATIO: It attempts to measure the ability of a firm to meet its amount obligations or in other words, the liquidity of the business. It can be calculated as under: Current Ratio= Current Assets Current Liabilities 180970000 58000000 3.12% Gross profit ratio

Gross profit sales

100

24800000 *100 37400000 =66.3%

Administrative ratio Administrative exp *100 sales

71500000 * 100 374000000 = 19.12%

Profitability & Dividend Distribution

The long term profitability of a business many be the only guide line that can be used to measure the efficiency of the management team. Profit is the primary objective of business. The maximization of profit within a socially acceptable limit implies that a proper regard to public interests has been paid. The crucial measure of the effective

performance of a business is profit, which is really a measure of how well a business performs economically; it is the growth of

profits which enables a firm to pay higher dividends to its ordinary share holders. Year 1992 1993 1994 1995 1996 1997 Profit (crores) 4.5 5.1 6.0 6.85 7.95 8.9 Profit is defined as surplus of revenue after

deduction of all expenses incurred an earning it usually, profits do not happen, they are managed. It is the management of profits which looks after the earnings of the company and brings reasonable profits to the company.

Profit Table

SWOTAnalysis
SWOT Analysis
Strength of Ech jay

1) Machines

: This is one of the greatest

strength of machinery. Because it becomes a first industry of asia and 3rd in the whole world which has fully automatic plant in their location named closing EXCEL RING ROLLING PLANT.
2)Money

Finance

has

never

been

problem of Ech jay. Because of its proper financial management and reputation and have large and huge group of investors.
3)Material

Ech

jay

has

never

faced

problem in case of raw materials because of good relation goodwill.

4)Management

: Ech jay has got excellent

management and they never got any major problem regarding management.
5)

Monitoring : Ech jay has got excellent

monitoring system which helps in smooth working of industry. 6) 7) Good quality roduct. High quality manpower.

8)

Product competitiveness less

competitiveness.

Weakness of Ech jay

1) Due to different machineries big machines parts are required as inventory and no specific products therefore high inventories and raw material is required so money is blocked. 2) Die is very expensive and time consuming and also requiring high level of efficiency perfection. 3) 4) 5) the Huge money fund is required for finance. Due to composite unit they have to No specific product and all based on consumer requirement and their follow all the rules of the government.

drawing.

Opportunities
1) Growth and developing all types of forged producing all products. 2) Scope for expansion of its forging machinery, industry, building. 3) Global forging market is available. 4) Now vehicle demand increasing so the scope is widens.

Threats
1) No specific products therefore more time required to deliver samples and make production it. 2) 3) International market. Economic slowdown recession which affects buyers validity of

indirectly ordering.

FUTURE PLANNING

The Echjay steel industry trying to maximize its quality performance along with the productivity of the company. The company is trying to develop its products as per the requirement of the customers. The company is going for future expansion of most modern forging technology existing in the world. Company is also planning requirement. Company is also planning to establish Reverse Integrity Plant ( steel melting plant ) to produce

electricity by wind power for its future energy

CONCLUSION

I after having visited ECHJAY STEEL PVT LTD. have learnt and experienced a lot and it was a pleasant experience for me to know the internal aspects of the organization. I have got a very positive and co-operative response from every one at ECHJAY STEEL PVT LTD. The get trained in this company, I have not only learned and viewed about the working of personnel and marketing but have also learned as for as the technical and manufacturing fields are concerned

SUGGESTION
Actually we are just students and to write something as a part of suggestion it is not our capacity. But this BBA faculty has involved

practical study in BBA course. So student has to work as their reports .

According

to

me

it

should

increase

its

production so that it can fulfill demand for other states and countries.

BIBLOGRAPHY
In order to give training a true & clear meaning for the preparation of best and complete report the theoretical concept must be at least in our mind to have complete knowledge regarding various theoretical concept. I took reference of the book Principles and practices of management -L.M.Prasad.

Marketing Management. -S.A.Sherlekar.