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PROJECT REPORT PREPARED BY SADARIYA PRASHANT CLASS S.Y.B.B.A. ROLL NO. 73 SEAT NO ...............

ACADAMIC YEAR 2008-2009 GUIDED BY MS.ALPA JOSHI SUBMITTED TO: SAURASHTRA UNIVERSITY RAJKOT. COLLEGE : SHREE GYANYAGNA COLLEGE OF SCIENCE & MGT.

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DECLARATION
I, the undersigned SADARIYA PRASHANT a student of S.Y. B.B.A. hereby declare that the project work presented in this report is my own work and has been carried out under the supervision of Ms. ALPA JHOSHI of GYANYAGNA COLLEGE OF SCIENCE & MGT, Rajkot. This work has not been previously submitted to any other university for any other examination.

Date: Place: Sign: -

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PREFACE
There is no under developed country in the world, which is not struggling for change. Change that induced by the internal and external forces of trade an commerce and industry through science and technology demands rapid individuals and social adjustments and I renders obsolete products and process skills, attitude an with them men and jobs. Meetings this challenges of change is the primary responsibility of management. An institution lacking adaptability to change has no future adaptability to change is necessary quality to good management. In todays world of cutthroat competition, the Bachelor of Business Administration (B.B.A.) graduates are sure to have an edge over their counterparts.

The unit, which I have selected for my project report, NEW KISHAN CEMENT PVT LTD.that is a manufacture of cement. The various departments studied and visited by me are production department, personnel department, marketing department and financial department. The information printed in this report is a perfect match of the theoretical concepts and practical applications. Almost all the information is collected either from the related officers or by taking interviews of managers and departmental heads of the organization has collected information

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ACKNOWLEDGEMENT
With great enthusiasm I present my individual report in the S.Y. B.B.A. The industrial training reports on NEW KISHAN CEMENT PVT. LTD. I convey my deepest gratitude to Mr. KALPESH MARDIYA and all other employees of NEW KISHAN CEMENT PVT. LTD. who have been very co-operative and helpful in preparation of my project report. I am also thankful to Ms. ALPA JOSHI my lecturer who has guided and corrected me throughout the preparation of my project. Lastly, I am thankful to my friends an also my family members who always encouraged me and co-operated with me for the successful completion of the project report.

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INDEX
SR, NO 1 2 3 4 5 6 7 8 9 10 PARTICULER General information Production department Personnel department Marketing department Finance department Future plan SWOT analysis Conclusion Suggestion Bibliography PAGE NO

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GENERAL INFORMATION INDEX


SR, NO 1 2 3 PERTICULER Board of directors content history PAGE NO

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4 5 6 7

Size & form of the organization Location of the industry Goals of the company

BOARD OF DIRECTORS

M.D.

Mr. Rajan V. Vadalia Chairman Director Director Mr. Rajan V. Vadalia Mr. Navneet Vadalia Mr. Ketan Vadalia
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KISHAN CEMENT Pvt. Ltd.

Director Auditors

Mr. Hasmukh Maradia H. Jamnadas, Heera Panna, Rajkot. Dena Benk

Banker

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CONTENTS
Name of Company: -

New Kishan Cement Pvt.

Ltd.
Area of Location: -

Shapar-Vereval District-Rajkot State-Gujarat 1994 NEW KISHAN CEMENT, Gandhi chambers, Gondal Road, Rajkot-360 002 Small Scale Manufacturing of Portland

Year of Establishment: Registered office: -

Size of Unit: Line of Activity: -

Cement
Accounting Year: No. of Employees: -

April to March 50 skilled workers 25 staff members

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BRIEF HISTORY
The origin of New Kishan Cement goes back to 1994 when its young founders constituting the Board of Directors, started the company, which was namedNEW KISHAN CEMENT, with an initial capital of Rs. 10 only. Synchronizing with these ideas of Central Government and the Government of Gujarat for the growth and the development of the medium and large-scale industries for achieving the objectives like the development of the industry for gainful employment and balanced industrial development. Hence, the promoters of the project had decided to set-up a unit in the village of Shapar in the city of Rajkot to the manufacturing of the finished ordinary Portland cement installing a cement plant.

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SIZE & FORM OF THE ORGANISATION


On the basis of the size plant of the industries can classified in the following categories. 1. Large scale 2. Medium scale 3. Small scale Small scale industries are mainly labor intensive industries while large scale industries are capital intensive industries. In case of NEW KISHAN CEMANT PVT LTD.It is a medium scale industry because its initial investment is more than the limit of small scale industry.

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LOCATION OF INDUSTRY
Theoretically speaking a part of industry is a place where main money and machinery are brought together for manufacturing the product thus it involves the basic problems of the place where the plant to be located. Plant location means deciding a suitable location area place etc. NEW KISHAN CEMENT PVT LTD. is situated as under NEW KISHAN CEMENT PVT.LTD. SHAPAR-VERAVAL District-Rajkot State-Gujarat Some of the main factors are affecting to take the decision of plant locate are as a follows. Near to the market Transportation facilities Infrastructure facilities Raw material availability KISHAN CEMENT Pvt. Ltd.

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Labour availability Natural resources

GOALS OF THE COMPANY


Every company wants to achieve the higher goal but as on behalf of this industry NEW KISHAN CEMENT PVT LTD. to scale their product only national level but they planning to international level and achieve the higher growth. And try to provide the more and more satisfaction customer and prepare higher quality product and scale it in the market.

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PRODUCTION INDEX
SR NO. 1 2 PARTICULARS Introduction to production department Introduction to unit department PAGE NO.
12 13

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3 4 5 6 7 8 9 10

Organizational chart Raw material & its sources Production process Plant location Plant layout Plant maintenance Quality control Inventory control

14 15 16 19 20 21 22 23

INTRODUCTION TO THE PRODUCTION DEPARTMENT


Production is the basic activity of the industrial unit. All other activities revolve around this activity. The end product of the production activity is the creation of the various goods and services for the satisfaction of human wants. Production involves step-by-step KISHAN CEMENT Pvt. Ltd.
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conversion of one form of material into another through various chemical and mechanical processes to create of enhance the utility of the product of the service. Production management deals with the decision making related to the production process so that the resulting goods and services are produced according to the satisfaction in the amount and by schedule demanded and at the minimum cost.

INTRODUCTION TO UNIT DEPARTMENT


This department which is related with the technical and the manufacturing of the cement and are also responsible for all the KISHAN CEMENT Pvt. Ltd.
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activities of the technical and controlling of the production and technical. The following persons are the heads or responsible for this department: Mr. Navnitbhai G. Vadalia Mr. Rajanbhai V. Vadalia

If we consider, the production, the manufacturing process related with the machines and workers and files are also maintained. Finally, the department sends the report to the Head Office at Rajkot.

ORGANIZATIONAL CHART

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DIRECTORS DEPARTMENTAL

HEAD MANAGER ASSISTANT MANAGER


EXECUTIVE STAFF WORKERS

RAW MATERIALS AND ITS SOURCES

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The main raw materials that are used for the manufacturing of the Portland cement (53Grade) used by the company are:-

Limestone Clay Coke-breeze Silica The raw materials are bringing purchased from porbandar, Rajkot, Ranavav and again Porbandar respectively.

PRODUCTION PROCESS
MINING OF LIMESTONE KISHAN CEMENT Pvt. Ltd.
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CRUSHING

STACKING

RECLAIMING (BELT CONVROYR)

RAW-MILL GRINDING

STORAGE

PRE-HEATING

KILN

CLIN KERISATION

COOLER CLINKER(STORAGE)

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CLINKER GRINDING CEMENT MILL(ADDING GYPSUM)

CEMENT STORAGE (SILO)

PACKING PLANT & TRANSPORTATION

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PRODUCTION PROCESS

GRINDING :-

The raw material called limestone, lignite, petcock, silica are mixed in appropriate percent and grinded by the mill called raw mill. The product obtain from the raw mill is called raw mix.

HEATING :-

The raw mix is mixed with 13 to 15% of water to make lodles. Then the lodles spread inside the kill. That material burnt inside the kill at the temperature of 1300. To 1400. C. The burnt material is called Clinker.

MIXING :-

After clinker is obtain 1 to 2 % of gypsum is mixed and grinded by the mill and the final product obtain is called cement.

BRANDING :-

The word brand is comprehensive term. It means a sign or symbol of quality. Branding is the best means to capture and retain the KISHAN CEMENT Pvt. Ltd.

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consumer demand in a competitive market. All product of the unit are sold under the same brand KISHAN

PACKING :-

The unit has its packing department. The company mainly looks for packing of its product. The product is filled in airtight bag of 50 kg with its price on its bag.

LABELING :-

Label is a part of a product. It gives verbal information about the product and the seller. It is apart package, which can be directly attached to the product.

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PLANT LOCATION
The location of the industry plays an important role in the success or failure of the organization. It plays a vital role in the development of the unit. Thus, a god location may reduce the cost of production and distribution helps in evaluating either the competitive strength or the profit margin of the business. Therefore, the site for the factory should to select very carefully. New Kishan Cement Pvt. Ltd., which is situated at ShaparVeraval, Rajkot. Due to its location it enjoys many advantages such as: As it is developed in a backward area, the government provides it with incentives. Electricity is widely available at their place by an own generated power by D.G. set Raw material, which is required for the production process, is easily made available. Infrastructure facilities such as communications water, road, etc. are well established. Moreover, it is situated near to a well-developed city like Rajkot, one of its domestic markets. KISHAN CEMENT Pvt. Ltd.
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PLANT LAYOUT

The plant layout is the overall arrangement of the production process, store-room, tool room, etc. and all other accessories required for facilitating the production an d service facilities and provides for the most effective utilization of men materials and machines consulting the process, it is a master blue-print for coordinating all operations performance inside the factory. According to F.G. MOORE-A good layout is one which allows materials rapidly and directly for processing. This reduces materials rapidly and directly for the processing. This reduces transport handling, clerical and other costs per unit space requirement are minimized and it reduces idle machines and idle men. There are mainly two types of Plant Layout: Process Layout Product Layout

In New Kishan Cement Pvt. Ltd., the type plant layout found is known as product layout. Where the machines are placed in such a manner that it helps only in the production of one type of product. Generally, product layout is found in all those industries, which are engaged in the manufacturing of the cement.

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PLANT MAINTENANCE

The efficiency of the production functional reliability of the production facilities, which are nothing but a package of land, building,etc., and plant services such as power plant, gas, water supply, etc. All these facilities are subject to wear and tear simply by elapse of time or by the frequency of their use. The basic aim is to keep all the production facilities in a constant and smooth servicing function and thus involves indirect costs of production activity. In other words, maintenance is not just a repair function, but also a combination of any actions carried out to retain an item in, or restore it to an acceptable condition. This, contributing to the revenue by reducing the operating cost and increasing the quality and quantity of the production. It is necessary to devise appropriate maintenance system. In New Kishan Cement Pvt. Ltd., maintenance request maintaining the production staff details, the defect and the possible rectification required. There is an Asset or Facilities register where there is detailed description of each physical asset such as name, code, vendors spares vendors, interchangeable parts, etc. the register is maintained on the basis of the asset classification in terms of usage, technical category and maintenance methods.

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QUALITY CONTROL
The quality control department inspects the basic raw material, which is procured, for quality assurance test. In this department various physical and metallurgical tests are undertaken before issuing the raw material to the production department. In New Kishan Cement Pvt. Ltd., not only the raw material is checked but also the final output is checked before it is dispatched off. The material is tested in the laboratory with some special tools and equipments. This process is necessary in order to get sufficient and effective management production.

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INVENTORY CONTROL
Inventory control refers to the process whereby the Investment in materials and parts is carried in stock is regulated within the predetermine limits set in accordance with the inventory policy established by the management. Inventory is defined as a usable resource, which is physical and tangible such as materials. Though inventory is a usable resource, it is also an idle resource, unless it is managed efficiently and effectively. Inventories constitute the largest component of current assets in many organizations. So poor management would therefore result in the business failure. Hence, efficient inventory control therefore can significantly contribute to the overall profit-position of the organization. In New Kishan Cement Pvt. Ltd., the inventories are adequately and efficiently maintained so that they are made available as and when required.

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PERSONNEL DEPARTMENT INDEX


SR NO 1 2 3 4 5 6 7 8 PARTICULARS Introduction to personnel department Introduction to the units department Organizational chart Recruitment, Selection and Induction Wage and Salary Administration Staff Welfare Activities Working Hours Trade Union PAGE NO 26 27 28 29 30 31 33 34

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INTRODUCTION
The importance of personnel management is being increasingly realized in industrial and non- industrial organization in India as well as abroad. The management of the human resources is a very complicated and a challenging task. It concentrates with the activities related to the human element of the organization. A personnel manager solves the problem of manpower and keeps their morale and motivation high. Personnel management is regarded as a must for successful running of the enterprise. A proper management resource helps the organization to maximize the utilization of other resources.

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INTRODUCTION TO THE UNITS DEPARTMENT

This department is mainly responsible for the recruitment, selection, training, development, promotion, etc. all that is related to the employees. The person responsible to the departments is as follows: Mr. Navneet G. Vadalia

The department maintains all the details regarding its employees for their reference in future and as and whenever required.

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ORGANIZATIONAL CHART
In order to solve the personnel problems efficiently and in a responsible manner, it has become necessary to establish a separate personnel department in the organization. It is one of the most important parts of the organization. The organizational chart of New Kishan Cement Pvt. Ltd. is as follows: DIRECTORS

PERSONNEL MANAGER

ASSISTANT

WORKERS(STAFF)

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RECRUITMENT
The recruitment process started with identification of vacancies to be filled up it is basically concerned with the identification of sources from where the personnel can be employed and motivating them to offer for the employment. According to EDWARD FLIPPO recruitment is both positive and negative activity. It is process of searching for prospective employees, stimulating and encouraging them to apply for job in an organisation. There are mainly two types of sources to do the recruitment INTERNAL SOURCES EXTERNAL SOURCES IN KISHAN CEMENT PVT LTD.. recruitment is done through internal sources such as when any vacancies, occur, existing, employees are given first preference they are promoted or transferred on the basis of merit seniorities of performances.

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SELECTION
The object of manpower selection is to as certain clearly the type of person rallied and to secure an appropriate candidate for filling that position it is also concerned with security relevant information about an applicant.

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INDUCTION
Induction is a technique by which a new employee is rehabilitated into enhanced surrounding and introduced to the practiced, policies and the objective of the organization. In other words it is a welcoming process. The idea is to welcome a new comer make him\her fell at home and generate a feeling of belongingness, however its small but is meaningful and has significance as a part of total organization. Process of Induction. Firstly, information is given to newly appointed person to whom he has to given a report and the place of report. Secondly, the respective manager welcomes the employees. Thirdly, it gives overall information about the department in which he is designated.

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WAGES AND SALARY ADMINISTRATION


The wage and salary administration is concern with the financial aspects of needs, motivation and rewards. WAGE is the remuneration paid for the service of labor in production, periodically to an employee or worker, which is a blue collared worker.

SALARY refers to the monthly or weekly rates paid to the clerical, administrative and professional employees, that is, white collar workers. New Kishan Cement Pvt. Ltd. provides minimum wages to the unskilled laborers who are appointed on the daily basis, basically, the wage and salary paid to the employees in the organization ranges from RS. 10,000, accordingly.

Management also provides certain extra facilities to its workers. It provides its workers with 8.33% bonus in March.

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STAFF WELFARE ACTIVITIES


Today it is a proven fact that the employees are the most important assets of a business unit. To motivate and to increase their morale it becomes necessary for every unit to perform its activities, which can be helpful in achieving the best results. New Kishan Cement Pvt. Ltd. provides the following facilities to its employees-

Leave Facilities:-

New Kishan Pvt. Ltd. provides leaves to its employees on alternative basis that is if in this week the employees of the morning shift were on leave then in the next week the employees of the other shift would get leave. The workers can enjoy the following leaves during the year:

15 days earned leave 07 days casual leave 07 days sick leave The administrative staff can enjoy the following leave during the year:

27 days earned leave 07 days casual leave KISHAN CEMENT Pvt. Ltd.
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o7 days sick leave

Holidays:-

New Kishan Cement is found to be on a holiday only on 2 occasions, that is at the time of Diwali and Janmastami otherwise, the company is working on all the 365 days.

Food and Shelter:New Kishan Cement Pvt. Ltd. provides its employees with good food by making canteen arrangements for them, were food is being provided as and when required. New Kishan Cement Pvt. Ltd. also provides good shelter facilities to its employees by allowing leaving in the quarters, which are being built in the factory premise only

Provident fund:-

The company provides the facility of Provident Fund as per the Govt.s Act for provident fund.

Bonus:KISHAN CEMENT Pvt. Ltd.

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Each employee is paid 100% bonus once a year that is in March. Thus, by giving bonus to its employees it gives job satisfaction to its employees.

First Aid:-

The first aid box is always kept in the company so that the first aid facilities are being provided immediately to any of the employees as and when required.

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WORKING HOURS
It has been assumed that number of working days per year would be 300 days and factory would work in 3 shifts a day. The company works in 3 shifts, that is: 04:00 AM to 12:00PM 12:00 PM to 08:00PM 08:00 PM to 04:00AM

The morning shift The afternoon shift The evening shift -

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TRADE UNIONS
A trade union is defined as a continuous and voluntary association of the salary or wages earners and engaged in whatever industry or trade, formed for safe guarding the interests of its members, maintaining and improving the conditions and securing better relations between them and their employees, through collective bargaining. As in every company, New Kishan Cement Pvt. Ltd., also has a trade union, where there is one union leader and others as its followers. The leader tries to present and solve all the problems of its co-workers by presenting it to the management and provide them with the required satisfaction.

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MARKETING DEPARTMENT INDEX


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

PARTICULARS Introduction to marketing department Introduction to the unit department Organizational chart Market Segmentation Pricing policy Market research Channels of Distribution Sales policy Advertising Competitors

PAGE NO

INTRODUCTION

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Marketing management represents an important functional area of business management for the flow of goods and service from the producers to the consumers. It looks after the marketing system of the enterprise. Marketing management performs all the managerial function in the field of marketing. Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products of value with other. Marketing management is a task of influencing the level, timing and composition of demand in a way that will help the organization to achieve objectives.

Introduction to units department

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This department is responsible for the selling and marketing activities. Respective files are maintained here. The persons responsible for the department are as follows: Mr. Rajanbhai V. Vadalia Mr. Ketanbhai L. Vadalia Mr. Navnit G. Vadalia

This department contains all the selling processes. It also maintains certain useful books such as the order book ledger, bank register, etc. which are required and necessary to be maintained.

ORGANIZATIONAL CHART
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The organizational depends upon the nature of the sales promotion, distribution, market research, and other activities that are directly or indirectly connected with the market. The organizational chart of New Kishan Cement Ltd.is as follows:-

DIRECTORS

MARKETING MANAGER SALES STAFF

9AGENTS

MARKET SEGMENTATION

It means the process of taking the total homogenous market for a product and dividing it into several sub homogenous parts.

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The market of the firm is segmented on the following geographic basis.

LOCAL

In local segment, the firm covers all the areas of Saurashtra in which it sells out its products to its customers.

NATIONAL
In national segment, they provide their product to various other states of their country.

INTERNATIONAL

In international segment, they provide their product to various other foreign countries.

PRICING POLICIES
Pricing is the only variable factor determining the revenue income. The pricing of the product of the company is done considering the following:KISHAN CEMENT Pvt. Ltd.
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PRICE = Raw-Material Cost + Variable Cost + Transportation Cost + Duties + Profit Margin.

MARKET RESEARCH

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It has a wider meaning and scope. It is the systematic gathering, recording and analyzing the data about the problems connected with the market place, problems like pricing etc. New Kishan Cement Pvt. Ltd goes for market research through internal sources. They conduct meetings with their agents and collect information about the present market conditions. It is useful in the field of high selling and rising demend.

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CHANNELS OF DISTRIBUTION
The distribution channel adopted by New Kishan Cement is as under: -

MARKETING MANAGER

AGENTS

DEALERS

CONSUMERS

THE DISTRIBUTION CHANNEL IS INPORTANT FACTOR OF MARKETING TO BOOST UP THE SALES OF THE COMPANY.

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SALES POLICY
There are generally 2 types of marketing policy, that is Cash Credit

New Kishan Cement Pvt. Ltd., goes for both policies that is, it gives goods on cash and even at times on credit further giving 2% cash discount. It depends upon the size of the order. Generally, it goes for credit policy.

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ADVERTISING
It means the paid communication of the goods, services ar ideas by the identified sponsors. It is a paid communication for the advertiuser has to pay for the space or time in which advertisement appears. New Kishan Cement Pvt. Ltd. Goes for advertising in thr newspaper, magazines, radios, and at times also on television.

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COMPETITORS

In the fast growing world of technology almost each and every company may be having some or the other competitors.

The company, New Kishan Cement Pvt. Ltd., faces competition from the following competitors in the local market.

Decora Cement Kangaroo Cement Sandhi Cement And Many More

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FINANCE DEPARTMENT INDEX


SR NO 1 2 3 4 5 PARTICULARS Introduction to units department Organizational chart Total capital Means of finance Capital structure PAGE NO 49 50 51 52 53

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INTRODUCTION
In this department, all necessary files and other required information are, maintained by the employees and the responsible managers. The person responsible for the department is as follows: -

Mr. Rajanbhai V. Vadalia

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ORGANIZATIONAL CHART
The organizational chart of New Kishan Cement Pvt. Ltd. is as follows: -

DIRECTOR
A/C & OFFICE ADMINISTRATOR OFFICE MANAGER ACCOUNTANT OTHER STAFF

TOTAL CAPITAL
The total capital means the amount of the capital being required by the company to continue its activities, not only at the time of incorporation but also for the diversification, modernization, and expansion, etc., of the company. The capital is also used for carrying on the routine activities of the company. Not only this, the capital is also for used for the purchase of the capital foods and also for the purchase KISHAN CEMENT Pvt. Ltd.
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of the raw materials and also running the routine business activities successfully. The total amount of capital initially with the company that is at the time of incorporation was RS. 5 corers. At present that is after the expansion and modernization of the total amount of capital maintained with the company is approximately RS, 12 Corers.

MEANS OF FINANCE
The means of the finance for the company, New Kishan Cement Pvt. Ltd., are as under: KISHAN CEMENT Pvt. Ltd.

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Dena Bank Share Capital Private Savings Loans from friends and relatives

CAPITAL STRUCTURE

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The term capital structure refers to the proportion of the debt and equity capital. It can be legitimately expected that if the capital structure or the financing leverage decision affects the total value of the firm then the firm should select such a financing mix as well maximize the shareholders wealth. Such a capital structure is referred to as the optimum capital structure. In other words, reasonable proportion of debt and equity capital is called as optimum capital structure; this leads to the maximum value of the firm.

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SWOT ANALYSIS
The full form of SWOT analysis means: Strength Weakness Opportunity Threat

The SWOT analysis of New Kishan Cement Pvt. Ltd. is as follows: -

Strength
Happy and contented work force Efficient management

Weakness
Less production capacity comparatively

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Opportunity
Expansion in untouched markets Scope of diversification that is manufacturing different types of cements.

Threats
Competition from various other companies like the kangaroo cement, Decora cement, etc.

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SUGGESTIONS
As a student of B.B.A. I would suggest that the unit should go for brand awareness, expand their market size go for more of advertisements on the televisions, etc However, if would be just and proper if hey continue to offer their present services with profit.

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CONCLUSIONS

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New Kishan Cement is a very well known firm. It tries to provide employment more to the unemployed persons and runs the unit for the betterment of the country, as one of its objectives. The company administrates all the departments quite efficiently and effectively. As a result the industry is running with profit since the year of commencement. The management has good industrial relation with the employees and the workers; they are also given the benefits like Provident Fund, Bonus, etc. Thus, we can say it sets a good example to the rest. The professional managers, who are aware of the popular principles and practice of the management; are managing the company.

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BIBILOGRAPHY
Without the theoretical knowledge, we cannot write more about all the departments like: Personnel, Financial, Marketing and Production and so I referred the following books.

Production and Operation Management


By Chunawalla Patel

Personnel Management
By C.B Mamoria

Marketing Management
By S.A. Sherlekar

Financial Management
By Khan & Jain By Taxman

www.kishancement.com KISHAN CEMENT Pvt. Ltd.


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