A Vikas Sharma On Training Undertaken at

SHREE CEMENT LTD.,BEAWAR

Titled
MANAGEMENT STUDY OF SHREE CEMENT LTD.

Submitted in partial fulfillment for the Award of degree of Master of Business Administration

Submitted By:
Dev Dutt MBA III Semth

Submitted To:
Miss Silky Tuteja Lecturer

20010-2011

ST. WILFREDS BUSINESS SCHOOL, JAIPUR

PREFACE

People are a companys most important assets. They can make or break the fortunes of a business. In todays highly competitive business environment placing the right people in the right position is very critical for the success of any organization.

Training is an important tool for any person or employees. Training means learning a sequence of programmed behaviors .If employees are got the training, their knowledge are increased and learns about the rules, policy or any other things. In the training, employees theoretical and practical knowledge are increased. Tanning is a vital necessity because its enables employee to develop and rise within the organization In Master Of Business Administration particular organization . This visit helps to know use particular application of theory. As a student of MBA, I also got this opportunity. This is reflection of what I have observed and come to know during my training period .This knowledge I obtain during my training will be helpful to me in my study and in future also. I got training at SHREE CEMENT LTD. in the training period my knowledge has increased. course there is a subject namely project report

which I have to do during my 45 days programme, under which I are require to is in

ACKNOWLEDGEMENT
If a man waited for the time When he could do things best He would have done nothing

Written words have an unfortunate tendency to reduce genuine gratitude into silted formality. However I feel that this is the only way to record ones gratitude. When all work is done, it is a pleasant job to thank all those who were at every instant supervising me and ensuring the completion of the decoded work. The successful completion of my project can be attributed to the combined efforts made by me and the contribution made in one form or other by individuals I hereby acknowledged.

I express a deep sense of gratitude to honorable Shri Gopal Tripathi, Training Incharge, SCL for providing me an opportunity to work with Shree Cement Ltd.and I am very much thankful to all the Staff Members for giving me Valuable help & guidelines throughout my training. I would also like to thank all faculty members of St. Wilfred Business school and the supporting staff for their help and cooperation throughout our project.

Dev Dutt
MBA III Sem

EXECUTIVE SUMMARY
Cement is an essential commodity, which is available in two type ,the OPCand the PPC .India is the second largest producer of cement with the annual turnover of 99Mn Tones. The company runs round the clock and its policy of maintaining is helpful in providing better quality clinker .the company is having its qwn limestone mines. The company is maintaining its TPM (Total Productive Maintenance) policy of TPM of each and every activity in the industry with special care for profitability with the investment of employees. Shree cement Ltd. is one of the biggest cement manufacturer in north India. Shree cement ltd. has a three product mix first is shree cement, second is Bangur cement and third is tuff cemento. Shree cement achieved many award, in various sector like; Best employer award 2007 in large industry segment. Golden Peacock Award for Excellence in Corporate Governance in manufacturing sector. Second prize for National Energy Conservation by Bureau of Energy Efficiency in cement sector for the year 2007.

TABLE OF CONTENTS Serial Title no

1 Introduction to the industry 1.1 About the cement industry 1.2 Current Situation 2 1.3 Factors which may influence the cement industry Introduction to the organization 2.1 About Shree cement 3 2.2 History of the company Research Methodology 3.1 Title of the study 3.2 Duration of the project 3.3 Objectives of the study 3.4 Types of research 3.5 Scope of the study 4 5 6 7 8 9 10 3.6 Limitations of the study Facts and Findings Analysis and interpretation SWOT analysis Conclusion Recommendation and Suggestions Questionnaire Bibliography 85 87 90 92 94 95 98 53 17

Page no.
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INTRODUCTION OF CEMENT INDUSTRY

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1.1 About the Cement Industry

Cement is a key infrastructure industry. It has been decontrolled from price and distribution on 1st March, 1989 and delicensed on 25th July, 1991. However, the performance of the industry and prices of cement are monitored regularly. The constraints faced by the industry are reviewed in the Infrastructure Coordination Committee meetings held in the Cabinet Secretariat under the Chairmanship of Secretary (Coordination). Its performance is also reviewed by the Cabinet Committee on Infrastructure.

Global bigwigs in cement La Farge, France Holcim, Switzerland Heidelberg Cement, Germany Cemex, Mexico Italcementi, Italy

Capacity and Production

The cement industry comprises of 125 large cement plants with an installed capacity of 148.28 million tonnes and more than 300 mini cement plants with an estimated capacity of 11.10 million tonnes per annum.

Recommendations on Cement Industry

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For the development of the cement industry Working Group on Cement Industry was constituted by the Planning Commission for the formulation of X Five Year Plan. The Working Group has projected a growth rate of 10% for the cement industry during the plan period and has projected creation of additional capacity of 40-62 million tonnes mainly through expansion of existing plants.

Technological change
Cement industry has made tremendous strides in technological upgradation and assimilation of latest technology. At present ninety three per cent of the total capacity in the industry is based on modern and environment-friendly dry process technology and only seven per cent of the capacity is based on old wet and semi-dry process technology. There is tremendous scope for waste heat recovery in cement plants and thereby reduction in emission level. One project for co-generation of power utilizing waste heat in an Indian cement plant is being implemented with Japanese assistance under Green Aid Plan. The induction of advanced technology has helped the industry immensely to conserve energy and fuel and to save materials substantially. The Cement Corporation of India, which is a Central Public Sector Undertaking, has 10 units. There are 10 large cement plants owned by various State Governments. The total installed capacity in the country as a whole is 159.38 million tonnes. Actual cement production in 2002-03 was 116.35 million tonnes as against a production of 106.90 million tonnes in 2001-02, registering a growth rate of 8.84%. Keeping in view the trend of growth of the industry in previous years, a production target of 126 million tonnes has been fixed for the year 2003-04. During the period April-June 2003, a production (provisional) was 31.30 million tonnes. The industry has achieved a growth rate of 4.86 per cent during this period.

A primer on the Indian cement Industry

Highly fragmented (low entry barriers) 7

 Cyclical industry Highly capital & energy intensive Heavily taxed sector High bulk (volume) low value product

Exports
Apart from meeting the entire domestic demand, the industry is also exporting cement and clinker. The export of cement during 2001-02 and 2003-04 was 5.14 million tonnes and 6.92 million tonnes respectively. Export during April-May, 2003 was 1.35 million tonnes. Major exporters were Gujarat Ambuja Cements Ltd. and L&T Ltd.

Recommendations on Cement Industry

The Working Group has identified following thrust areas for improving demand for cement; (i) Further push to housing development programmes; (ii) Promotion of concrete Highways and roads; and (iii) Use of ready-mix concrete in large infrastructure projects. Further, in order to improve global competitiveness of the Indian Cement Industry, the Department of Industrial Policy & Promotion commissioned a study on the global competitiveness of the Indian Industry through an organization of international repute, viz. KPMG Consultancy Pvt. Ltd. The report submitted by the organization has made several recommendations for making the Indian Cement Industry more competitive in the international market. The recommendations are under consideration.

Technological change
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Cement industry has made tremendous strides in technological upgradation and assimilation of latest technology. The induction of advanced technology has helped the industry immensely to conserve energy and fuel and to save materials substantially. India is also producing different varieties of cement like Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid Hardening Portland Cement, Sulphate Resisting Portland Cement, White Cement etc. Production of these varieties of cement conform to the BIS Specifications. It is worth mentioning that some cement plants have set up dedicated jetties for promoting bulk transportation and export.

Past years
The Cement industry continued its growth trajectory over the past seven years. Domestic cement demand growth surpassed the economic growth rate of the country for the past couple of years. Over the past five years (FY03-07), cement demand grown at a CAGR of 8.37% higher than the CAGR of supply at 4.84%. Demand for cement in the country is expected to continue its buoyant ride on the back of robust economic growth and infrastructure development in the country. The key drivers for cement demand are real estate sector, infrastructure projects and industrial expansion projects. Among these, real estate sector is the key driver and accounted for almost 55% of cement demand in FY 07. Cement is a bulky commodity and cannot be easily transported over long distances making it a regional market place, with the nation being divided into five regions. Each region is characterised by its own demandsupply dynamics. The Southern region dominated the cement consumption at 44.5 mn tonnes in FY 07, accounting for about 30% of total domestic cement consumption. Real estate sector is the booming sector in Indian economy. It promotes the infrastructural development and Foreign Direct Investment (FDI) in the country. Everyone has the dream to have a house. And it is such a scenario where so many people now have started living in nuclear families. Break-ups in joint families during last few

decades promote the people to buy home and apartments for their own. In the last few decades, the income of middle class people is rising. Which in turn increased the domestic demand for cement. Infrastructural development of any country depends on its realty sector development. For introducing foreign companies, hospitals, schools, townships, offices the country needs development in the realty sector. India's economy is a developing one. And Reality sector forms 5-6 per cent of the

Gross Domestic Product (GDP). Large scale investment, rapid urbanization and Foreign Direct Investment (FDI) are contributing to the growth of real estate sector in India. Government also promotes the international business groups to invest in this industry. It is such an industry where so many of job opportunity exist and it promotes several different industries like glass, iron, cement, paint, steel etc. Domestic Cement industry is highly insulated from global cement markets. Exports have been constant at about 6% of total cement demand for past few years. With GoI intervention, making cement duty free, cement is being imported from neighbouring countries. However, due to logistics issues and lack of port handling capabilities, imports of cement will remain negligible and do not pose a threat to domestic industry.

1.2 CURRENT SITUATION

Top cement companies record slowest growth in eight quarters Warning signs are showing up on the countrys cement industry, as it struggles with escalating input costs and a forced inability to pass on the costs to their customers. Two of the top four cement manufacturers in the country have seen their profits slide in the quarter ended 30 June, while the other two witnessed their slowest growth in eight quarters. On Friday, Ambuja Cements Ltd said its net profit for the quarter fell 33% to Rs577.02 crore, year-on-year, while Grasim Industries Ltd reported a marginal 0.4% rise.

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Ambuja Cements quarterly net sales rose 8% to Rs1,569.77 crore and its domestic dispatches were up 5%, but exports fell 70% reflecting the export ban initiated by the government, which impacted six weeks in the quarter. Cost pressures continue to be unrelenting, Ambuja Cements said in a statement. Fuel and power costs in our plants are significantly higher year on year (34%), in particular cost of imported coal which has tracked global oil developments and shown no signs of abatement in the near future. Ambuja Cements also had an exceptional gain of Rs303 crore net of tax on the sale of its remaining stake in Ambuja Cements Pvt. Ltd to Holderin Investments Ltd, the investment subsidiary of Swiss cement major Holcim Ltd. Grasim Industries, part of the Aditya Birla Group, said net profit for the quarter came in at Rs672 crore, while revenue grew to Rs4,430 crore from Rs4,060 crores. Production increased by 3% at 3.99 million tonne, while ready mix concrete volumes grew by 61% due to the commissioning of new plants. Few week before, UltraTech Cement Ltd said its profit for the first quarter rose 2% while ACC Ltd, the countrys largest cement maker, on Thursday reported a near 27% drop in its second-quarter net profit hurt by a surge in fuel and input costs.

1.3 FEW FACTORS WHICH MAY INFLUENCE THE CEMENT INDUSTRY

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1.Foreign grip on local cement industry hardens With the proposed sale of Frederick County, Va.-based Riverton Investment Corporation to an Italian company for $107 million. 2.UK cement industry cement and clinker sales rise in 2007 The UK cement industry has published its figures for cement sales for 2007. 3.Contractors everywhere scrambling for cement Increased construction along the Wasatch Front and elsewhere in the United States had national cement producers scrambling to cement.

4.Demand for cement in China to reach 1.3 billion metric tons in 2010. Demand for cement in China will rise 5.1 percent annually to 1.3 billion metric tons in 2010. 5. Energy efficiency and capital embodied technical change. 6. Decreasing oil prices. 7. competition for shipping, and other forces are continuing to drive material prices higher, etc.

PEST Analysis
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PEST analysis stands for "Political, Economic, Social, and Technological analysis" and describes a framework of macroenvironmental factors used in the environmental scanning component of strategic management. It is a part of the external analysis when conducting a strategic analysis or doing market research and gives a certain overview of the different macroenvironmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. Political factors include areas such as tax policy, employment laws, environmental regulations, trade restrictions and tariffs and political stability. Economic factors are economic growth, interest rates, exchange rates andinflation rate. Social factors often look at the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Technological factors include ecological and environmental aspects and can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Technological factors look at elements such as R&D activity, automation, technology incentives and the rate of technological change. Identifying PEST influences is a useful way of summarising the external environment in which a business operates. However, it must be followed up by consideration of how a business should respond to these influences. Political / Legal Economic Social

Technological

POLITICAL ASPECTS:
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Cement plant is deemed to be manufacturing activity for the purpose of incentives for the industry in line with the approved policy of Government of India. All cement plants are entitled to "Industry" status. Such units are eligible for all concessions and incentives applicable to Industries. The State Government encourages flow of investments including FDI and provides full support wherever required. The State Government can offer customized package of incentives for prestigious investment proposals i.e. projects where total investments are more than Rs. 10 Crore or a Fortune 500 company is implementing the project. All cement Units with a connected load exceeding 100 KW shall be charged a concessional rate of Electricity Duty. State Financial Institutions and the Banks, in line with the approved policy of Government of India, treat cement plants as priority sector.

ECONOMICAL ASPECTS:
Cement sector uses low cost highly skilled human resources in which India enjoys internationally competitive advantage. It should be emphasized that the internal strengths of Indian cement industry principally comes from domestic entrepreneurship and domestic capabilities. The impact of WTO and need for free trade areas can be observed by the fact that Indian firms have established operations in countries like Mauritius and Brazil while avoiding Eastern Europe. Global expansion of Indian cement firms is in part funded by international capital. Indian companies raise a part of their capital requirement abroad via bank debts. This exposes companies to vagaries of interest rate fluctuations and inflation rate changes.

SOCIO CULTURAL ISSUES:

Expansion of cement development centers abroad by Indian cement firms is very limited and is mostly driven by labor costs. Indian cement firms are used to intense competition in global markets. Most companies compete only on price and have gained reputation as price warriors. Indian managers do not consider the need to customize software solutions for a foreign country to be a major impediment for global expansion.

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 TECHNOLOGICAL ASPECTS:
Export of cement and related services is heavily dependent on transport infrastructure. Modern advances in technology and transport media has a revolutionary change in the scenario. Latest chemical analysis and there properties forced the industry to keep them updated. The universal nature of Internet and satellite communication capability provided by Indian government has mitigated the importance of telecommunication infrastructure. Also to organize global fests like Olympics there is demand of a very good infrastructure, thus technology matters.

PORTERS 5 FORCES ANALYSIS

Porter's 5 Forces analysis focuses on the external factors of the industry. The original competitive forces model, as proposed by Porter, identified five forces which would impact on an organizations behavior in a competitive market. These include the following: The rivalry between existing sellers in the market. The power exerted by the customers in the market. The impact of the suppliers on the sellers. The potential threat of new sellers entering the market. The threat of substitute products becoming available in the market

Force 1:

The Degree of Rivalry

There are many companies which are into the business of producing and distributing Cement and there is heavy competition with them in terms of grapping the market share . There is no substitute product of Cement due to which this industry has no rivalry with other industries but in between its own community is has many rivals.

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The Indian cement industry faces dramatic changes, challenges, and constraints as it uses the global delivery model to transform itself into a knowledge leader competing with established global giants. Since rival firms often hire managers and engineers professionals who have experience working at established firms, the labor cost for Indian firms is expected to increase as they compete to retain talent. Unless the Indian educational system can produce a large number of high-quality new graduates to meet the demand for engineers, there will be a gradual movement of work to other emerging industries.

Force 2

: The Threat of Entry

New entrants to an industry can raise the level of competition, which may cause in reducing its attractiveness. The threat of new entrants largely depends on the barriers to entry. In Cement industry it is easy to enter but talking about Products it is tough because it depend on the reliability of customer. Key barriers to entry include In industry Economies of scale is very slow because it take time to increases customer loyalty and whole growth is depend on that only. For new entrant it very big challenge for them to establish business because it require huge amount of capital and investment. In cement sector distribution play major role, without that it is not possible for publisher to reach customer so; its also a problem to new entrants. In todays scenario cement manufacturing is a profitable business and many new companies are attracted to enter into this business. Then also there is no threat to the existing companies as they have been identified by their performance and services they provide to the customers. Companies are given exploring, disturbing and producing cement block on the basis of their financial, technical and performance.
Force 3:

The Threat of Substitutes

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The presence of substitute products in cement industry can lower industry attractiveness and profitability because they limit price levels. The threat of substitute products depends on: In cement sector once competitor got customer reliability then its difficult to divert customer mind. In cement industry price plays major role and its totally depend on market price i.e. substitutes price. The relative price and performance of substitutes. Shree cement ltd. is into cement manufacturing business where there is no substitute product so the threat of substitute is not possible for this industry.
Force 4:

Buyer Power

The most important determinants of buyer power are the size and the concentration of customers. Cement industry has expanded their production to a large extent by their performance due to which they are able to satisfy the ultimate customers by providing the services. Brand loyalty is a negligible factor in the software industry mostly due to the concept of customized business solutions. But however there is the advantage of bulk orders being processed due to the fact that most of the firms cater to business to business prospects only. The reputation and the size of the firm also plays an important role in the choice of clients.

Force 5:

Supplier Power

Suppliers are the businesses that supply materials & other products into the industry. The cost of items bought from suppliers (e.g. raw materials, components) can have a significant impact on a company's profitability. If suppliers have high bargaining power over a company, then in theory the company's industry is less attractive. The bargaining power of suppliers will be high when: In an industry there are many buyers and few suppliers but

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in pharmaceutical sector there are many buyers and many suppliers so bargaining power over a company is not much this factor may attract to new entrant in industry. The industry is not a key customer group to the suppliers but pharmaceutical industry is the key customer to the supplier because for suppliers other buyers are few. Almost all cement company supplies cement on their own so there is no supplier power which can affect their business.

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2. INTRODUCTION OF SHREE CEMENT LTD.

Over the last decade, a significant change in business environment has caused organizations around the world to transform their business model in order to maintain leadership. This change is hyper-competition - a state that renders traditional competitive advantage unsustainable. Rapid product introductions to battle the pressures of commoditization is impacting organizational bottom line faster than ever before. Shree Cement Ltd. is an energy conscious & environment friendly business organization. Having Nine Directors on its board under the chairmanship of Shri.B.G. Bangur, the policy decisions are taken under the guidance of Shri. H.M. Bangur, Managing Director. Shri. M.K.Singhi, Executive Director of the Company, is looking after all day-today affairs. The company is managed by qualified professionals with broad vision who are committed to maintain high standards of quality & leadership to serve the customers to their fullest satisfaction.The board consists of eminent persons with considerable professional expertise in industry and field such as banking, law, marketing & finance. Shree cement a leading cement manufacturer of North India, has been participating in the infrastructure transformation for India for over two decades. It started operation in 1985 and has been growing over since. Its manufacturing units are located in Beawar, Ras in Rajasthan. It also has grinding unit at Khuskera near Gurgaon. It has 3 brands under its portfolio viz Shree Ultra Jung Rodhak cement, Bangar Cement and Tuff cement. Its record of steady profitability and healthy operating margin was maintain in 2007- 08 as well. it registered a growth of 51% in net sales which stood us at rs.2065.87 cr in 2007- 08. Its net profit increase by 47% to rs.260.37 cr. During the year. Shree always strives to sustain it reputation as a respected corporate citizen. Its acknowledges that is operation have multiple impacts on the environment and communities in which it operates. Its business strategies and performance demonstrate a high level of commitment to preservation of enviorment and social development apart from economic success.

2.1 About Shree Cement Ltd.

Shree Cement Ltd Industry : Cement - North India BSE Code : 500387 House: Bangur

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NSE Code : SHREECEM

Incorporation Year :1979

Shree Cement Ltd. is an energy conscious & environment friendly business organization. Having Nine Directors on its board under the chairmanship of Shri.B.G. Bangur, the policy decisions are taken under the guidance of Shri. H.M. Bangur, Managing Director. Shri. M.K.Singhi, Executive Director of the Company, is looking after all day-to-day affairs. The company is managed by well qualified professionals with broad vision who are committed to maintain high standards of quality & leadership to serve the customers to their fullest satisfaction.The board consists of eminent persons with considerable professional expertise in industry and field such as banking, law, marketing & finance & general management.

Shree Cement Ltd is a professionally managed company. The company always believes in complete transparency and discharge of the fiduciary responsibilities which has been assumed by Directors as well as by the Senior Management Executives and/or Staff. Therefore in order to ensure the continuity thereof though, not written but otherwise ingrained, the Board of Directors has approved of the following Code of Conduct for all Directors as well as for the Senior Management Executive and/or personnel and other employees. All the Directors as well as Senior Management Executive and/or Personnel owe to the Company as well as to the shareholders : i) "Fiduciary duty" ii) Duty of skill and care iii) Social responsibility With the above objects in mind the following code of conduct has been evolved and it is expected that all Directors as well as Senior Management Executives and/or personnel will adhere to it.

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FIDUCIARY DUTIES
All Directors as well as Senior Management Executives and/or personnel while dealing on behalf of the company will exercise the power conferred upon him / them and fulfill his / their duties honestly and in the best interest of the company. DUTY TO EXERCISE POWER FOR PROPER PURPOSES The Board from time to time shall determine the powers to be exercised by the Directors as well as the Senior Management Executives and/or Personnel and all such powers shall be exercised reasonably. CONFLICT OF INTEREST None of the Directors and/or Senior Management Executives and/or personnel will put himself in a position where there is potential conflict of interest between personal interest and his duty to the company. None of the Directors and/or Senior Management Executive and/or personnel will exploit an opportunity arising while associated with the Company for his personal gain either directly or indirectly. SECRET PROFITS The Director as well as Senior Management Executives and/or personnel while discharging their duties in a fiduciary capacity is precluded from making any personal profit from an opportunity which may arise being a Director and / or Senior Management Executive of the Company and should always ensure that he is acting for and on behalf and for the good of the Company. DUTY OF SKILL AND CARE Since all the Directors as well as Senior Management Executives and / or personnel are acting in a fiduciary capacity and for the benefit of the company, being advocates of the business of the Company, none of them will do anything which is in conflict with the interest of the company.

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ATTENTION TO BUSINESS All Directors as well as Senior Management Executives and/or personnel will give proper attention to the business of the company. SECRECY AND CONFIDENTIALITY None of the Directors as well as Senior Management Executives and/or personnel while associated or working for the company will be entitled to disclose either directly or indirectly or make use of the confidential information which may come in their possession while acting on behalf of the company and shall not divulge the financial status and position of the company to any person or persons. INTERNAL TRADING None of the Directors as well as Senior Management Executives and/or personnel will directly or indirectly in the name of his family members and/or associates will indulge in any internal trading of the companys shares and stocks. RISK AND PROPER PROCESS The Senior Management personnel and/or employees are expected to keep the Directors fully informed about the effect of the policies adopted by the company from time to time and also regarding the risk connected with such policies. Senior Management personnel and/or staff who have been entrusted with specific duties for ensuring compliance of statutory requirements including the rules and regulations shall forthwith comply with the same and keep the Board of directors fully informed about such compliance or non-compliance. Senior Management personnel will from time to time provide or cause to be provided a true and faithful account of the companys working and effectiveness of the procedures adopted by the company from time to time. All Directors as well as Senior Management Executives and/or personnel are aware that while working with the company they have a social responsibility as well and therefore from time to time will devote such time for the upliftment of the downtrodden, poor and needy persons in the locality.

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Shree Cement supplemented its attractively low capital investment per tonne with one of the lowest manufacturing costs in the Indian cement industry. Starting with 0.6 million tons per annum of cement in 1985, the capacity was upgraded to 0.76 million tons in 1993. Second plant with installed capacity of 1.24 million tons per annum was commissioned in 1997, in record time of 18 months, raising total capacity to 2.0 MTPA. Even during recession in the industry, it was possible for it to enhance capacity further to 2.6 MTPA due to its strategic location and better brand image and is the largest single location plant in North India. The companys installed capacity accounted for 15 percent of Rajasthans total capacity in 2002-03 and 2.5 percent of Indians production in 2002-03. Cement production increased 3.42% from 2.747 million tons in 2002-03 to 2.841 million tonnes in 2003-04. At the end of year 2008, Shree Cement Limited has entered the big league with current overall production capacity of 9.1 million tons. Shree Cement has evolved into one of Indias top ten cement makers with 18% market share in North India.

Believing in the theory of self-sufficiency, Shree Cement Limited has installed its own Captive Power Plants at Beawar & Ras with a combined capacity of 119.50 MW. Once again, the low cost was the result of scores of initiatives across all levels within the company. Some resulting in small savings. Some in big. But each primarily driven by the belief that what was being done could be done better.

SCL Mission
SCL is a cement manufacturing company committed to creating wealth for all our stakeholders. We will strive for leadership in our chosen products and markets by providing high quality products and services to our customers. We will seek profitable growth by innovative application of science and technology.We will pursue excellence in all that we undertake and take steps to continuously improve. We will take responsible care of the environment around us and improve the quality of life in the communities .

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2.2 History of the Company

1979 - The Company was incorporated on 25th October, at Jaipur. The Company was promoted by members of the Bangur family and others.Shree Digvijay Cement Co. Ltd., Graphite India, Ltd. and Fort Gloster Industries, Ltd. took active part in the promotion of the Company. The Company manufacture's cement & cement products. - To reduce fuel and power consumption, the Company adopted the latest dry process, four stage preheater precalcination technology of clinkerisation and air swept roller mill grinding system for raw material and coal grinding. - The Company entered into agreement with F.L. Smidth & Co. A/s Copenhagen, a designer and manufacture of cement plants, its associates F.L. Smidth & Cia. Espanola S.A., Madrid and with Larsen & Toubro Ltd., Mumbai for the supply of plant equipment and services for the proposed project. 1984 - 70 No. of equity shares subscribed for by the signatories to the Memorandum of Association. In Oct./Nov. 1,53,99,930 No. of equity shares issued of which 1,06,99,930 shares reserved for firm allotment as follows: (i) (ii) (iii) (iv) (iii) 36,99,930 shares to Directors, their friends etc. including upto 25,00,000 shares to NRIs with repatriation rights. The balance 47,00,000 shares offered to the public of which 18,80,000 shares offered for allotment on preferential basis to Non-Residents. 1985 - Commercial production commenced from 1st May. 1986 - A diesel generating set of 13.6 MW was installed for captive power generation. 1987 - 46,00,000 shares issued to financial institutions in conversion of loans. 11,00,000 shares each to Graphite India, Ltd. and Fort Gloster Industries, Ltd. And 48,00,000 shares to Shree Digvijay Cement Co. Ltd.;

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1991 - Production of clinker and cement declined due to a major shut down of the plant for implementation of modernisation/renovation/modification work. - The Company undertook to set up a new cement plant of 0.6 million TPA capacity in Rajasthan - 7,96,000 No. of Equity shares issued to financial institution in conversion of loan. 1992 - 36,00,000 shares allotted to FLT Ltd. a wholly owned subsidiary of P.L. Smith & Co. Denmark under financial collaboration agreement. 1993 The Company undertook a scheme of implementing second stage

of its licensed capacity to increase its capacity to 3300 tonnes per day. - The Company issued 21975 - 16% each with equity warrants and these will be converted as per institutional guidelines. 2,40,021 shares issued in pursuance of scheme of Amalgamation.

1994 - The Company issued 10,00,000-16% Secured Redeemable NCD of Rs 100 each on private placement basis. - A scheme of amalgamation of an existing leasing and finance Company with the Company was prepared for undertaking leasing activities and other financial services on M/s. Mannakrishna The Company Investment, undertook Ltd. the is a subsidiary of of new the unit Company. of 124

1995

implementation

MT capacity per annum named Raj Cement. - 43,95,000 No. of Equity shares on surrender of detachable optional share warrants attached with 16% unsubscribed non-Convertible Debentures of 100 each. 1996 - The Company commissioned its second cement plant - Raj Cement with a capacity of 12.4 lakh tonnes per annum in Beawar. - 58,06,204 rights shares issued (prem. Rs 10 per share) in the prop. 1:5.

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1998 - Shree Cement, the Calcutta-based PD-BG Bangur group company, has decided to issue preference shares aggregating Rs 15 crore to mobilise long-term funds. - Shree Cement's expansion in capacity by 12.4 lakh tonnes at the new unit in Reawar, has made it a leading cement manufacturer in North India. - ICRA has downgraded the rating of the NCD programme of Shree Cement Ltd (SCL) from LAA to LA. - The Rs 372-crore 1.25 million tonne cement plant near Ajmer was commissioned during the year after considerable delay due to an explosion in the electro-static precipitator. - Shree Cements has an installed capacity to produce up to two million tonnes of cement per annum in Rajasthan and has an equity capital of about Rs. 34 crores. 1999 - The company has been awarded the first prize for energy conservation in 1998 in the cement sector. - SCL, belonging to the house of Bangurs, is one of the largest cement manufacturers in North India, having the installed capacity of 2 million tonnes. Its plants are located in Rajasthan. The new plant was set up at Beawar with the capacity of 1.24 million tpa in Rajasthan.

Powered by Purpose
We are conglomerate commited to significantly enhancing value for all our stakeholders by:

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Fostering a spirit of continous learning and innovation, Using science and technology in a responsible way, Providing high quality products and services and becoming the most prefered partner,Having people who practice values and high standards of behaviour,

Seeking sustained and dynamic growth and securing long term success.

PEOPLE AS PROGRESS DRIVERS

Shree believes that what is present in the minds of people is more valuable than the assets on the shop floor. All the companys initiatives are directed to leverage the value of this growing asset.

TEAMWORK
Shree leverages effective team working to generate a sustainable improvement.

LEADERS AT EVERY LEVEL

Shree believes in creating leaders -not just at the organizational apex but at every level, resulting in a strong sense of emotional ownership. CUSTOMER FOCUS Shree is committed to deliver a superior quality of cement at attractively affordable prices. SHAREHOLDER VALUE Shree is focused on the enhancement of value through a number of strategic and business initiatives that generate larger and a better quality of earnings. COMMUNITY AND ENVIRONMENT Shrees community concern extends from direct assistance to safe and dependable operations for its members and the environment.

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VISION
To register a strong consumer surplus through a superior cement quality at affordable prices.

MISSION
To sustain its reputation as the most efficient cement manufacturer in the world. To drive down costs through innovative plant practices. To increase the awareness of superior product quality through a realistic To strengthen realisations through intelligent brand building.

and convincing communication process with consumers.

25-Mar-10

S EEPAR AR HR IW

LEARN& TURN THEWHEE L

28

Energy Conservation Efforts

With a quest to excel in the field of production, energy and environment, Shree Cement has started putting up untiring efforts since beginning. Energy conservation is an effective way of reducing manufacturing cost, green house gas emission specially CO2 and preservation natural resource and could be achieved through awareness generation. Thus Internal benchmarks were set. The energy saving potentials identified and proper plans formulated for modernisation of plant, effective monitoring, better operational controls, upgradation / modification of process control and instrumentation, intelligent substitution like use of fly ash & petroleum coke, the byproducts of thermal power and refinery industry respectively. Besides, the management encouragement, participation of employees, Shree R&D center efforts and manpower training have also helped in achieving the targets. A Presentation in Table free metting in cement This energetic demoaneur permeates down the line, and this has created a performance enhancing culture in Shree Cement. New heights have been achieved in reducing energy consumption and reduction in energy cost as percentage of production cost. Shree is leader of the energy management movement in the cement sector in the country.

29

As a recognition of this fact Shree has been nominated the leader of the Cement sector task force constituted by the Bureau of Energy Efficiency under the aegis of Ministry of Power, Govt. of India. The task force has been assigned responsibility to suggest measures for improving energy conservation practices in the cement industry sector of whole India. These energy conservation efforts have been recognized at National & International levels.

Environment Management
Shree follows the maxim of Clean and Green is Profitable. It is committed to a low carbon economy and strives to reduce its carbon footprint. It actively contributes at national and international platforms to create awareness and undertake efforts towards a greener earth.

Environment Report
To maintain the transparency with the stakeholders we publish Corporate Sustainability Report depicting Economic, Social and Environment performance in supplement to the annual report. At the same time the compliance reports of all the units are available on website.

30

Operational Measures and TQM Policy

Shree Cement has been continuously striving to reduce energy consumption in cement manufacture at each stage. The increasing consciousness for energy conservation and steps taken towards effective monitoring, better operational control and process optimisation in addition to various modification/retrofitting of energy efficient equipments have contributed greatly in energy conservation and improved productivity. The management has set up an energy conservation cell, which has laid down the methodology of measurement of parameters. Logical approach and implementation of innovative ideas. To counter the emission level a full fledged environment improvement wing has also been established for monitoring stack emission, fugitive dust emission, noise level and other related parameters. Various other measures taken include

Prevention of idle running of equipment by providing interlocking arrangement and operating with a PLC system. Generation of daily report on idle running of equipment also in terms of monetary losses.

Minimizing ingress of false air into the kiln, cooler, coal mill, cement mill and raw mill circuits. Raw mix optimization. Use of low ash coal. Ensuring operational availability of various equipment. Preventive maintenance approach. Efficient management information system for identifying various important parameters for efficient operation of the equipment and taking timely remedial measures.

Setting targets for production and energy consumption in various sections of the plant. Involvement in benchmarking studies carried out by various national and international agencies, which is considered as one of the management tools to achieve excellence in all spheres.

Regular monitoring and calibration of flow meters. Waste minimisation by installation of efficient dust collector equipments. Controlling lighting loads in plant and use of appropriate sized motors. Optimisation of grinding media

31

Various modification jobs carried out since last final yraes in the plant given below: The Results continous thrust on impronving engry consumption level Rao brought down power & fuel consumption as under: Although power consumption for the year indicate marginal increase during the year,the unit wise consumption has gone down for last year.

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Sustainability Policy
To produce quality cement in an eco-friendly, healthy & safe working environment in a socially responsible manner with continual improvement in performance and profitability to the satisfaction of all stake holders by ensuring: Customer satisfaction. Clean and green environment. Sound health and safe working practices.

Compliance to the applicable laws and respecting the international instruments. Implementation of the systems and continually improving their effectiveness. Adoption of cost effective technologies and practices for improved productivity and
profitability. Mutually beneficial stakeholders' relationship. Human resource satisfaction.

AN ENERGY & ENVIRONMENT CONSCIOUS SUSTAINABLE ORGANISATION

Health & Safety Policy

PROSPERITY THROUGH HEALTH & SAFETY

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Water Policy
To provide sufficient and safe water to people & plant as well as to conserve water, we are committed to efficient water management practices viz: Develop means & methods for water harvesting. Treatment of waste discharge water for reuse.

Educate people for effective utilisation & conservation of water. Water audit & regular monitoring of water consumption. WATER ADDS VALUE TO PEOPLE & ORGANIZATION, CONSERVE IT INTELLIGENTLY

HIV / AIDS Policy

Being a socio-economic issue concerning stakeholders of the society Shree Cement is committed to:

Create awareness on HIV/ AIDS and its prevention among all stakeholders of the
society.

Treatment of HIV/ AIDS infected patient in the Company's Dispensary without any discrimination.

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Current Organizational Structure Shree Cement Limited Board of Directors

1.

Shri B.G. Bangur

- Executive Chairman

2. 3. 4. 5. 6. 7. 8. 9.

Shri H.M. Bangur Shri R.L.Gaggar Shri O.P. Setia Shri S.K.Somany Dr. Abid Hussain Dr. Y.K. Alagh Shri A. Ghosh Shri M.K.Singhi

- Managing Director

- Executive Director

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Units and Plants

Actual Photo of Unit 1 and 2,Beawar(Raj.)

Unit I & II Bangur Nagar, Beawar 305 901, District Ajmer, Rajasthan (India) Phone: (91)1462-228101-06 * Fax: (91)1462-228117/228119 Email : shreebwr@shreecementltd.com Unit III, IV, V & VI Bangur City, Ras, Tehsil Jaitaran 306 107 Distt. Pali, Rajasthan (India) Phone: (91)1462-228101-06 * Fax: (91)1462-228117/228119 Email : shreebwr@shreecementltd.com

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PRODUCTS
Shree Cement Ltd. Manufacturing Four Famous Brands of the cement in 43 and 53 grades of cement. These are:1. Shree Ultra 2. Shree Ultra Red Oxide 3. Rockstrong Tuff Cement 4. Shree Bangur Cement 5. Shree Power Project

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SHREE POWER PROJECT

Shree Cement Limited have installed 120 MW captive power plants split at two locations (Beawar & Ras) to meet out complete power needs of 10 million tonne Integrated Cement Plant. Captive Power Plants are running in parallel with State grid and exporting power to our cement grinding unit located at Khushkhera, around 300 KM away from Beawar, by utilizing the facility of Open Access with complex monitoring and control to optimize cost of power.

Commissioned 2x18 MW Greenfield Power Plant at Beawar in 2002 and running successfully. One 6 MW TG is also operating successfully with excess steam available from this 2x18 MW Power Plant.

In addition to above 2x18 MW Greenfield Power Plant has been commissioned and is operating successfully at our new Ras Cement Plant. Construction of balance 2x18 MW is in progress and likely to be commissioned in April and October in this year.

We have also installed a Waste Heat Recovery Plant of 3 MW with new design concept for 1st cement kiln. This plant has been commissioned in March, 2008. We have received Water Efficient Unit Award" at the National Award for Excellence in Water Management 2007 conducted by CII Godrej GBC on 29 & 30 November 2007 at CII-Sohrabji Godrej Green Business Centre, Hyderabad.

The Specific feature of the plant Team Work Impact on Environmanet Green Belt Development

38

Addition 6 MW capacity enhancement is in progress.

The specific feature of Power Plant

Fully automatic Operated by a single seat of control through Distributed Control system (DCS) from CCR State - of - the art technology is used. Two Boilers of 80 T /Hr each, first of its kind, designed to burn multi fuel (Indian/imported Coal, Pet Coke, lignite etc) and also capable of burning 100% petcoke a weste product of petroleum industry efficiently.

Steam generator has Atmospheric Fluidized Bed Combustion (AFBC) with ESP which result in low Sox , Nox emission and higher specific steam generation. Steam turbine - Simple impulse with 3 Nos. uncontrolled extraction and condensing turbine with regenerative feed water heating cycle for improved overall thermal cycle efficiency.

Dry dense phase ash handling & transportation system to avoid spillage and emission of ash (No ash disposal to ground). Most modern Reverse Osmosis process to make use of inferior quality water in power plant to conserve good quality water. Total effluent generated from power plant is collected in effluent pit, neutralized and fed again in the second RO based effluent treatment plant. This has reduced water requirement to 3150 KL per day against the required amount of 5200KL other wise

Cooling water blow down is completely utilized to maximum by blending with the raw water reservoir-eliminating blow down effluent to the atmosphere from cooling tower.

The TG has been run at full load of 18 MW since start which is also considered to be the best in India.

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New Project Of SHREE LTD.

RAS Cement Project

Shree Cement Limited is setting up a new green field Project at Village Ras, Tehsil Jaitaran, District Pali of Rajasthan. The capacity of the plant is 3000 Ton Per Day of clinker production with an approximate investment of about Rs. 300 Crores. The company has already engaged eminent Consultant for the same and all the major orders has been placed so as to achieve the ambitious target to commission the plant by August 2005 which is fifteen months from the date of first order placement i.e. May, 2004. The main plant & machineries would be supplied by KHD Humboldt Wedag AG - Germany & GEBR Pfeiffer AG - Germany.The plant will be based on the latest Technology available and maximum Automation would be done to keep the minimum manpower. The company is having sufficient mining lease at Ras to cater its production requirements for the upcoming 50 years.

The Company is also expanding the power generation capacity of its Captive Power Plant to meet the power requirement of the upcoming plant. A dedicated project team is already working round the clock on the Project to achieve the targeted competition by August 2005, and so far 25% of the work

40

has been completed. As the project site is located in proximation to the potential market, it would provide a competitive edge logistically. Latest technology available is being adopted to achieve maximum automation to achieve optimum efficiency and manpower utilization. 2008-09 Unit- VII at RAS. March 2009. 2007-08 -

Unit- VI at RAS. March 2008

2007-08

Kush khera Grinding Unit (KKGU)-I Commenced its Production from July 2007.

2007-08

Kush khera Grinding Unit (KKGU)-II Commenced its Production from December 2007.

2007-08

Unit - V at RAS. August 2007.

2006-07

Unit - IV at RAS Clinker Production started in January 2007.

2006-07

Unit - IV at RAS Cement Production started in March 2007.

2005-06

Unit - III Clinker Production started October 2005.

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PHILOSOPHY
Shree Cement Ltd is a professionally managed company. The company always believes in complete transparency and discharge of the fiduciary responsibilities which has been assumed by Directors as well as by the Senior Management Executives and/or Staff. Therefore in order to ensure the continuity thereof though, not written but otherwise ingrained, the Board of Directors has approved of the following Code of Conduct for all Directors as well as for the Senior Management Executive and/or personnel and other employees. All the Directors as well as Senior Management Executive and/or Personnel owe to the Company as well as to the shareholders : i) "Fiduciary duty" ii) Duty of skill and care iii) Social responsibility With the above objects in mind the following code of conduct has been evolved and it is expected that all Directors as well as Senior Management Executives and/or personnel will adhere to it.

Fiduciary Duties
All Directors as well as Senior Management Executives and/or personnel while dealing on behalf of the company will exercise the power conferred upon him / them and fulfill his / their duties honestly and in the best interest of the company.

Duty to Exercise Power for Proper Purpose

The Board from time to time shall determine the powers to be exercised by the Directors as well as the Senior Management Executives and/or Personnel and all such powers shall be exercised reasonably.

Conflict of Interest
None of the Directors and/or Senior Management Executives and/or personnel will put himself in a position where there is potential conflict of interest between personal interest and his duty to the company.

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Secret Profits
The Director as well as Senior Management Executives and/or personnel while discharging their duties in a fiduciary capacity is precluded from making any personal profit from an opportunity which may arise being a Director and / or Senior Management Executive of the Company and should always ensure that he is acting for and on behalf and for the good of the Company.

Duty of Skills and care

Since all the Directors as well as Senior Management Executives and / or personnel are acting in a fiduciary capacity and for the benefit of the company, being advocates of the business of the Company, none of them will do anything which is in conflict with the interest of the company.

Attention to Business
All Directors as well as Senior Management Executives and/or personnel will give proper attention to the business of the company.

Secrecy and Confidentiality

None of the Directors as well as Senior Management Executives and/or personnel while associated or working for the company will be entitled to disclose either directly or indirectly or make use of the confidential information which may come in their possession while acting on behalf of the company and shall not divulge the financial status and position of the company to any person or persons.

Internal Trading
None of the Directors as well as Senior Management Executives and/or personnel will directly or indirectly in the name of his family members and/or associates will indulge in any internal trading of the companys shares and stocks.

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Risk and Proper Process

The Senior Management personnel and/or employees are expected to keep the Directors fully informed about the effect of the policies adopted by the company from time to time and also regarding the risk connected with such policies. Senior Management personnel and/or staff who have been entrusted with specific duties for ensuring compliance of statutory requirements including the rules and regulations shall forthwith comply with the same and keep the Board of directors fully informed about such compliance or non-compliance. Senior Management personnel will from time to time provide or cause to be provided a true and faithful account of the companys working and effectiveness of the procedures adopted by the company from time to time. All Directors as well as Senior Management Executives and/or personnel are aware that while working with the company they have a social responsibility as well and therefore from time to time will devote such time for the upliftment of the downtrodden, poor and needy persons in the locality.

Position in Market Challenges

Due to the nature of the product - bulky, low priced - it became increasingly difficult to sell the product across a large territory. Besides, higher realisations in distant territories did not mean that the gain would accrue to the company since the incremental freight would neutralise the price advantage. As a result, it became important to arrive at a median between realisations and distribution costs and earn a comfortable margin

44

Training and Development

SCL gives more occurs on training & development of an employee because through proper training, the skills of an employee can be developed which in turn results in org.development & achievement.

Competitive Scenario
The competition is very stiff globally as well as regionally.SCL wants to fight for each & every bottles. Overall organization culture consist ofOpen & transparent Free forums of communication Cross functional forms Employee involvement in decision making Performance linked assessment Mutual trust & respect Non-interference in internal matter

Main competitor Binani cement,Birla cement.India cement,JK lakshmi cement,Ambuja cement.

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Marketing Presence
Over the last three years, Shree considerably strengthened its marketing presence. Since the company is based in Rajasthan, the state is the companys principal market. Rajasthan is Indias largest cement producing state and Shrees is the largest single location plant in northern India. The companys northern-most positioning within Rajasthan makes it the closest among all Rajasthan manufacturers to Delhi, Haryana and some parts of Punjab, a significant cost edge. The company enjoys a market share of about 11 per cent in north India.

Innovative and Cost Conscious Management

Leadership in the use of alternative waste fuel First cement plant in India to maximise substitution of imported coal by petcoke (petroleum industry waste) thereby increasing profitability and saving natural resources. Initiatives for Global Warming reduction Pioneered in the application of innovative Electro

Static Precipitator technology in DG power generation to save fuel and coPGDMt pollution, and replaced HSD by LDO. Achieved unity power factor in electrical distribution system to reduce maximum demand, and transmission / distribution losses Partial utilization of waste heat for 3 MW power generation. Initiator in the use of petcoke for power generation in India 36MW captive thermal power plant under commissioning to generate quality power for the Plant,avoid transmission and distribution losses, and provide surplus power to Rajasthan. Savings : Rs 496.46 million pa Development of DD Cones In house development of Deduiling Cones for cyclones resulting in reduction in pressure drop, higher outputs and lower energy consumption.

46

 Single Roller press for two Ball Mills Capacity enhancement & utilization of CM-2 Roller press for capacity increase and energy saving in CM-1 ---Energy Saving - 2.02 kwh / T cement

The trend of Raw mill and Kiln stack dust emission (ugm/m3) is given below: Year 2006-07 2007-08 2008-09 Unit I 46 35 50 Unit II 41 31 37 Unit III 27 29 37 Unit IV 28 37 Unit V 25 32 Unit VII 32

Fugitive Emission Management:

Installed dust collector at clinker unloading area and coal unloading area. Special attention is given to suppress fugitive dust being generated at various crusher and transfer points by spraying fine droplets of water. Concrete road in and around the plant and cleaning by vacuum machine. Covering of material transport system. Replacing conventional blasting system to rock breaker.

Additional measures for emission management:

To control emissions on an ongoing basis, the company trains employees on prudent management of machines, waste material and waste heat recovery. Implementation of Environment Management System (EMS) Environment week celebration Distribution of environment booklets.

2.3 Culture at SHREE CEMENT LTD.

Organisational culture at Shree Cement Ltd. is founded on pillars of meritocracy, innovation, learning and openness. Our performance orientation encourages meritocracy by rewarding performance. The value driven performance orientation makes us a unique and preferred organisation.We instill these qualities in every employee through our beliefs and actions.

47

You will have the freedom to initiate and realize your goals. Your actions will reap the benefits you envisaged. We will always be there to facilitate your growth. Active and unhindered participation brings us closer not only to each other but also to ourselves. A new standard of excellence is set by providing stimulating environment that empowers, recognises, removes hurdles that hinder innovation and shares successes.

Location
Shree Cement Unit I & II is located at Beawar, 185 Kms. from Jaipur off the DelhiAhmedabad highway. Amongst the plants in the state it is nearest from its marketing centers. Bangur Cement Unit (III, IV, V, VI & VII) is located at RAS, 28 Km from Beawar in Pali Distt. We are coming up with Grinding Units at Suratgarh & Laksar (Distt. Haridwar, Uttrakhand). Shree Cement Grinding Unit (KKGU) is located at Khush Khera Dist. Alwar Nearest to Delhi.

48

Regd. Office & Works: Shree Cement Ltd. Bangur Nagar, Post Box No. 33 Beawar 305901 Rajasthan India Corp. 21, Strand Road, Calcutta- 700001. Office:

Contact to SCL

Nagar, Distt. Phone: Fax: Toll Email free

Beawar Ajmer, (91) (91) no.:

305

901, Rajasthan

1462-228101-06, 1462-228117/19 1800 180 6003-04

Website:www.shreecementltd.com : sclbwr@shreecementltd.com 21, Strand Road, Kolkata - 700 001 Phone Corporate Office Fax Email Plants: Unit Bangur District Phone: Nagar, Ajmer, I Beawar * & 305 Fax: Rajasthan : :(91)33-22390601-05 033 2243 4226 :

sclcal@shreecementltd.com Khushkhera Cement Grinding Unit(s) II Plot No SP 3-II, A-1, RIICO Industrial 901,Area, (India) Khushkhera (91)1462-District * Fax: (91) 1493-517227 (Bhiwadi) Alwar, 301707, Rajasthan

(91)1462-228101-06

228117/228119 Email : shreebwr@shreecementltd.com

Phone: (91) 1493-250521/ 22/ 23/ 24

49

Unit Distt. Phone:

III, Pali,

IV,

V Rajasthan * Fax:

&

VI (India) (91)1462-

Bangur City, Ras, Tehsil Jaitaran 306 107 (91)1462-228101-06

228117/228119 Email : shreebwr@shreecementltd.com Marketing Offices A-6 Yudhisther Marg, Opp. Yojana Shree 122-123, Ultra Hans CementBhawan, Bhawan, C Scheme, Jaipur-302 005,

1 Bahadur Shah Zafar Marg, New Delhi-110 002Rajasthan Phone: (91) 11-23370828, 23379218, 23370776 Phone: (91) 141-2223918, 2225950 Fax: (91) 11-23370499 Fax: Email (91) 141-2381091 : Email: scldel@shreecementltd.com

Bangur 6B, 15, New Fax: 6 Floor, Hansalaya Delhi-110 (91) Barakhamba

Cement Building, Road, 001 11-23702794-96

scljpr_jp1@shreecementltd.com 91, Dulheshwar Garden, C Scheme, Sardar Jaipur-302 Fax: Email jhanwara@bangurcement.com (91) 001, Patel Marg, Rajasthan 141-2360891 :

Phone: (91) 141-2361735, 2361696

Email : sharmaps@bangurcement.com Tuff 14E, New Phone: (91) 14 Cemento Floor, 3556 Hansalaya Cement Building, Road, Delhi-110 11-23731085, 001 61512430

14-15, Hawa Jaipur-302

Indira Sarak, 001

Plaza, Sodala, (Rajasthan)

15-Barakhamba

Phone: (91) 141-2222032, 6455692 Fax: (91) 141-2222031

Fax: (91) 11-23731084 Contact SCL at : sclbwr@shreecementltd.com

Shrees Milestones
2006-07 - 8th Golden Peacock Award for environment excellence 2006.

50

2006-07 -Unit - IV at RAS Clinker Production started in January 2007. 2006-07 -Unit - IV at RAS Cement Production started in March 2007. 2005-06 -CII Energy Excellence Management Award 2005 2005-06 -Launch of Bangur Cement in Feb 2005 2005-06 -Unit - III Clinker Production started October 2005 2005-06 -Unit - III Cement Production started October 2005 2004-05 -National Award for Excellence in Cost Management -2005 by Institute of Cost and Works Accounts of India (ICWAI), New Delhi. 2004-05 -Certificate of Merit Award by Bureau of Energy Efficiency, Ministry of Power,Govt. Of India for the year 2004. 2004-05 -National Award for Second Best improvement in Electrical Energy Performance (Unit II) by NCCBM 2003-2004. 2004-05 -Rajasthan Productivity Award 2004. 2003-04 -National Award for second Best Quality Excellence by National Council for Cement and Building Materials (NCCBM) for the year 2002-03. 2003-04 -National Award for Best Thermal Energy Performance for U-II by NCCBM for the year 2002-03. 2006-07 -Best Corporate Governance Award (RCCI) for the year 2006 2007-08 -Best Employer Award for Rajasthan for the year 2007 2007-08 -Golden Peacock Award for Excellence in Corporate Governance in

manufacturing sector.

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2007-08 -Second prize for National Energy Conservation by Bureau of Energy Efficiency in cement sector for the year 2007. 2007-08 -NCCBM award for Best Improvement in Thermal Energy Performance during year 2006-07. 2008-2009-India Manufacturing Excellence award by Frost and Sullivan for the year . 2009-2010 National Award for Excellence in. Energy Management .

Quality Initiatives
Shree Cement possesses one of the few R&D centres in the Indian cement industry. This center has been recognised by the DSIR, Government of India. The research team is headed by a highly qualified and experienced scientist. Shree's R&D center has directly contributed in the conservation of electrical and thermal energy, an improvement in product quality, cost reduction, mineral conservation through the intelligent use of fly ash and a waste reduction in mines through the use of low ash coal. Stacker-Reclaimer for homogenization of lime stone On-Line Sampling System by Auto Samplers X Ray Analyzers Automatic Raw Mix Design Controls by Ramco-Software On Line Raw meal Blending Control in C.F. Silos Coal homogenization (Stacker-Reclaimer) Gypsum homogenization Fuzzy Logic Control for Kiln operation Roller Press Control & High Efficiency Separator for particle size distribution

Markets classification Markets States

52

Primary-Rajasthan Secondary-Delhi, Punjab, JK, Haryana, Western U.P. and Uttaranchal Tertiary Gujarat, M.P. and Central U.P.

CRITICAL REVIEW
The most common complaints by the users have been: 1) Lack of Advertisement:There is no brand visibility of Bangur cement as a company. Advertisement ultra tech can be seen overall on Rajasthan at public places but hardly any advertisement on Bangur Cement. Thus we can say that marketing department is not working at its level best. 2) Less Wall-painting:Many sub dealers have not got any shop paintings. While carrying the survey it was sometime difficult to locate the dealers shop which shows that the company need to increase the promotion to make its presence felt. 3) Absence of company literature:There has been a limited company literature and stationary material and this had led to low recognition for the brand 4) Online payment system:The dealers are finding it difficult to send the demand drafts for the payment of purchased material on the same day because of slow courier service. The dealers have suggested that they will make the DD on the same day but there should be at least 24 hours time before the DD reaches to the region. 5) Low margins:As compared to the others brands Bangur provide very low margins, so dealers are less interested in the bangur cement.

3. Reasearch Methodology
53

3.1 Title of the Study : Management study of shree cement ltd. 3.2 Duration of the Project : During the Summer internship programme with Shree
Cement Ltd, from 19th June 2010 to 4th Aug 2010, project duration 45 days.

3.3 Objectives of the study

1. To know the Global and Indian Scenario. 2. To know the Key Players in the Industry. 3. To know the Business Level Functions & Process of the Organization 4. To know the Company Profile 5 .To do SWOT Analysis, PEST Analysis etc. of the Company 6. To learn about the Organizational Culture, Values, Benefits in a Practical way 7. To get an exposure to the different functions of the Organization and understand how they are performed and coordinated. 9. To relate various concepts studied in the first term to a real Organizational environment 10.To make contacts with the industrial people and maintain it.

3.4 Types of research

1). Descriptive vs. Analytical: Descriptive include survey and fact-finding of different kinds. The major purpose of descriptive research is description of the state of affair, as it exists at present. In analytical research, on the other hand, the research has to use facts or information already available, and analyze these to make critical evaluation of the material. 2.) Applied vs. Fundamental: Research can either be applied research or fundamental (or basic or pure). Applied research aims at finding a solution for an immediate problem facing a society or an industrial/business organization, whereas fundamental research is mainly concern with generalizations and with the formulation of a theory. Gathering knowledge for knowledges sake is termed as pure or basic research. 3).Quantitative vs. qualitative: Quantitative research is based on the measurement of quantity or amount. Qualitative research, on the other hand is concern with qualitative phenomenon that is phenomena relating to or involving quality or kind.

54

4).Conceptual vs. Empirical: Conceptual research is that related to some abstract idea (s) or theory. On the other hand, in empirical research realize on inexperience or observation alone, often without due regard for system and theory.

RESEARCH DESIGN
The preparation of research design facilitates research to be as efficient as possible yielding maximal information. In other words, the function of possible research design is to provide for the collection of relevant evidence with minimal expenditure of effort, time and money. Types of research design Research design of exploratory research Research design in case of descriptive and diagnostic studies Research design in case of hypotheses testing research The research design used in my project is descriptive type. Research Design includes the following steps-

Formatting the objective of the study

Design the method of data collection

Selecting the sample

Processing and analysis of data

Reporting the findings

3.5 Sample size and method of selecting sample 55

During the summer training project I have taken a sample size of 25 employees of the organization.

Sources of data collection

Data can be collected from two important sources Primary Data Secondary Data

(1) PRIMARY DATA The Primary Data are those which are collected a fresh and for the first time, and thus happen to be in character. Primary data can be collected by various methods. For e.g., observations, questionnaire etc. (2) SECONDARY DATA Secondary data are those data which have already been collected by someone else and which have already passed through the statistical process. It can be collected through-

Books, journals, reports, magazines

Data collection method

Mainly primary data has used for this research ,the source of primary data is observation questionnaire

3.6 Scope of the Study

56

The research has studied the main theory ground and concept of the company analysis with reference to simple and analytical calculation to make comparative analysis of SCL company

This study is useful to me get the knowledge about the different contents relates to
company analysis. The diligence work is useful to other research and students for further study in this field.

3.7 Limitations of study

Because of the time limitation, it may be possible that some important data are left out to be analyzed. To common limitation of the project is that the project is based on future and as we know that the future is always uncertain, the project predicts all about the future but the preceding the future is one limitation because of the uncertainty of the future.

The input by using which the project is made is primary data & no secondary data is
used in making the project. So, there can be fault in primary data or can be problem in obtaining the primary data.

MANAGEMENT STUDY OF SHREE CEMENT LTD.

57

Oraganogram of Shree Cement Ltd.

Unit 1 and 2 Structure

58

59

INTRODUCTION OF ORGANIZATIONAL STUDY

Organizational Functioning is an important factor for any Organization to achieve the desired goals and Objectives. This requires Co-ordination at all levels to smooth functioning. This study is to know the overall efficiency and performance of TEXTILE Industries and a general study on Shree Cement Ltd at Beawar, Rajasthan. As a part of two year MBA program at the end of 2nd Semester, I had to carry on a project in an organization in order to understand the organization structure and their functions. This was a great opportunity to get the first hand information and understand the functioning of the various departments .

TYPES OF ORGANIZATION STRUCTURES

1. Functional structures
Early organizational design divided enterprises into relatively simple parts, splitting them into defined activities such as production, marketing or personnel. Functional organizations have the advantage of being simple to understand with clear lines of command, specified tasks and responsibilities. Staff can specialize in a particular business area such as production or marketing and follow well-defined career paths. This is equally true of human resource specialists who can develop expertise in specific areas such as employee relations or reward management. There are also major disadvantages to functional structures. People managers have to tread carefully because this form of organization is prone to interdepartmental conflict, often degenerating into 'them and us' tribal warfare. Coherence and good communication are particularly hard to achieve between virtually independent functions.

2. Divisional organizations
Split into self-contained units, able to react to environmental changes as quickly as small companies, they are also described as multidivisional or 'M-form' organizations. Divisions encourage team spirit and identification with a product or region. Managers can develop broad skills as they have control of all basic functions. Each division is likely to have a devolved human resource function. But there is a risk of duplicating activities between

60

head office and divisional human resource departments and of conflict between staff in successful and unsuccessful divisions. The divisional function may play a coordinating role, reconciling decisions taken at the corporate and business unit levels. This results in a complex picture of people management.

3.Federations
One variant of the divisional form which has a particular relevance because of its human resource implications is the 'federation', a loosely connected arrangement of businesses with a single holding company or separate firms in alliance. This form of organization has attracted criticism from stock market analysts who find difficulty in comprehending its subtle informality.

4. Matrix organizations
Matrix forms of management can be regarded (arguably) as an early form of 'network' structure. They focus on project teams, bringing skilled individuals together from different parts of the organization. Individuals were made responsible both to their line manager and the project manager involved. Before the advent of network technology, many matrix organizations were dogged by duplication and confusion: the 'matrix muddle'.

FUNCTIONAL DIVISION
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MARKETING MR. NARIP BAJWA(HEAD) MR. DIWAKAR PAYAL( SnV.P.) MR. VINAY WADHVE( Sn V.P.) MR. A.B. REDDY( Sn V.P.) FIANANCE
MR. ASHOK BHANDARI( HEAD ) MR. N.C. JAIN ( Sn G.M. ) MR. L.K. BHANAWAT ( SnG.M. ) MR. SUBHSH ( S r G .M . )

HR
MR. S.R. SHINGHI ( HEAD ) MR. ALOK MOROLIYA ( Sn Mgr ) MR.GOPAL TRIPATHY (Dept Mgr)

TECHNICAL
MR. SANJAY JAIN ( MECHANICAL ) MR. RAMAN MAHAJAN ( ELECT ) MR. ANIL SHARMA ( INSTRUMENT) MR. C.K. KHATRI ( LAB ) MR. R.K. BHARGAV ( R&D ) MR. R.K. MANAWAT( PROCESS )

COMMERCIAL
MR. SANJAY MEHTA ( V.P. ) MR. R.C. GAUR ( Sn GM ) MR. K.K. JAIN ( GM ) MR. ARVIND KHICHI ( JT V.P.)

OPERATION
MR. P.N. CHHANGANI( V.P. ) MR. P.K. TRIPATHY( WORKS )

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PURCHASE AND SALES

MR.SHAILENDAR GAUR(Asst.manager Purchase) MR. K.C. GANDHI ( V.P. ) MR. ANIL SHUKLA ( Sn Mgr)

PRODUCTION
MR. S.C. SUTHAR ( JOIN VP) MR. C.B.K. NAIDU ( Mgr.process)

STUDY OF MARKETING FUNCTION

The advent of globalization has brought marketing to the forefront of all the business activities. Increased competition has resulted in a customer driven market with ever rising consumer expectations. At SHREE, marketing is not merely identified innovative measures to sell its products, but to proactively gauge their changing needs and produce accordingly. Indian cement industry clocked an impressive growth of 9.8% during FY 07-08. As against it , SHREE registered a growth of 31% in sales volume. Net sales value showed rise of 51%.

Market share

Shrees strategy of quality advertising combined with active field marketing helped it increase its market share in north India. Company maintained its leadership position in the key market of Rajasthan, Delhi & Haryana. Company increased its market share in North India to 16.4% against 13.9% of last year. Our focus on increasing marketing share in areas which are closer to their plants offer them the advantage of low radius. The strategy benefited them in significantly increasing their market share in the nearer markets of Rajasthan and Haryana. Going forward they aim to further consolidate and increase our presence to attain the leadership mantle in the entire North Indian market.

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Rich dividends from Multiple Brands Strategy

Shree s strategy of multiple competing brands paid rich dividends in term of achieving deeper market penetration, distinct customer segment, improved brand equity and overall increase market share in North India. Shree was able to acquire newer market and extend its domination to the existing market. Increased growth indicates Shree s superior preparedness to tap the emerging business opportunity.

Strengthening Distribution Network

Company has been marketing significant investment in strengthening marketing expertise and creating execution excellence to enhance customer servicing. Multiple brand strategy adopted by the company build a large network of dealers & retailers and other marketing infrastructure. Total number of dealers and retailers stood at 4275 & 12157 respectively. The sales force was suitably assisted by quality advertising and sales promotions activities. TV commercials, hoardings as well as print media were used to create and brand awareness. Total advertising spending was increased by 29%.Companys multiple efforts towards marketing excellence have resulted in the trade sales increase from 35.72 lac tons to 41.13lac tons- an increase of 15% over the previous year.

Institutional sales
The institutional sales segment witnessed increased demand due to heightened activities in infrastuctureand commercial real estate such as multiplexes, malls, IT office space etc. Considering the high demand potential of this segment, they stepped up their efforts to increase sales, to institutional customer. The results were encouraging as the institutional sales witnessed a massive 76% rise during the year. They were able to acquire quality conscious and prestigious customer.

STUDY OF FINANCE DEPARTMENT

The account department is involved in monitoring the functions of other department thus

64

ensuring that the unit is functioning as per plan though with minor deviation. Important functions constitute the following: Planning and budgeting C.V.A [cash value Added] calculations Bill passing for the supplier as well as the contractors. Cash as well as bank transactions MIS related activities such as generation of MIS and review meetings from corrective actions. Planning and budgeting activities are done once a year and budgets so formed are reviewed quarterly. Quarterly revisions or estimates are essential to transform the yearly data contained in the budget to operational data pertaining to the immediate quarter incorporating there in any factors that might have escaped notice during the budget preparation due to the any reason. Deviations from the budgets are reported in the MIS (CVA is calculated annually for assessing the performance of the unit in cash terms. Delta C.V.A gives the idea of the cash value additions done during a year. Separate cash affiliated to the accounts department does bill passing activity. The payment of the bill is done in the accounts department. MIS generated from accounts department contains details of the functioning of all the departments in the line of the consumption patterns of all the products as well as the by products etc. If there are any deviations from the budget or the quarterly estimates that are serious in natural then there deviations are discussed in the monthly review meetings. performance has posted a good performance with all round improvement production, sales and in profitability. A strong demand for celluloic fibre coupled with the company strategy on specilty fibres has driven the performance. The above table gives the details of performance .

STUDY OF HR FUNCTION
Training & Development 65

SHREEs HR policies are directed towards enhancing knowledge, experience & skill of its people and retain a skilled workforce. Various multi skills training programs are arranged to acquire cross-functional expertise. These are put to use through job enlargement and increase responsibilities. It leads to an all round development of the employees, such programmes benefit the company through cost reduction, improved processes and overall enhanced productivity. Employees also gains through knowledge enrichment and career progression.

Talent Management

SHREE believes the right mix of talent is the key to rip the benefit and avail of the business opportunities presented by current pace of globalization. SHREE has an excellent combination of professional competencies in its workforce be in managerial and technical.

Encouraging Innovation

At SHREE, spirit of innovation permeats through every rung of employees. Company encourages original thoughts which translates into action that yield benefit. A unique scheme JO SOCHE WO PAVE has been running for past many years to encourage the employees to suggest innovative ideas towards cost reduction, process improvement, energy & environment conservation. Good ideas are recognized and rewarded at company gathering.

PEOPLE
Jo soche woh paave Creating leaders at every level Recognition and reward scheme Nomination to vishwakarma rashtriya puraskar Multiskill development training programme Ascent programme The companys people achievements

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Jo soche woh paave

Shree has invested wisely in its people assets over the last few years to sustain a culture of excellence through the following initiatives: The company incentivised ownership through the Jo soche woh paave scheme. The company trained and multi-skilled so that members could deepen and extend their competencies across the house keeping, maintenance, risk management, team building and environment, health and safety functions.

CREATING LEADERS AT EVERY LEVEL

Shree Cement emphasises that creating leaders not just at the organisational apex but at every level results in strong sense of emotional ownership. Thus the employees are delegated with responsibility and authority to adopt one Electric motor and related equipment for keeping watch and care resulting in energy conservation, thus generating multiple CEO's in the Energy Management System.

RECOGNITION AND REWARD SCHEME

The management believes in the self-actualisation of its employees by injecting the concept of Human resource Development in all its policies and strategies. By recognition and reward the employees are motivated to give their best in the interests of the organization in particular and for the society in general. So many schemes of recognition and rewards are given to boost the morale and motivate the employees. According to Managing Director of the company, morale management is considered to be more challenging than material management. According to him it is important to keep walking around and congratulating the teams for their small victories. Efforts and their success stories are disclosed to all in special functions so that other employees may take inspiration from them. Employees are rewarded for doing exemplary work in the field of reducing/ eliminating breakdown, in-house development, better house keeping, and reduction in raw material, fuel, power and wastage. Cash awards and Certificates of honour have been given in a function. For example a scrapper chain of reclaimer II is to be replaced which takes 80 hours. The team completed this task in minimum possible time with the result that the reclaimer was

67

put into operation in just 36.5 hours. The team was rewarded with a cash amount of Rs. 11,000/- and certificate of honour.

MULTISKILL DEVELOPMENT TRAINING PROGRAMME

In 2001-02, the company started the concept of multi skilling to optimise manpower, enhance skill sets and to facilitate cross-functional development. Unlike other organisations who introduce multi-skilling for high fliers, the company started this concept first for its workers. Reason: The company faced a problem of surplus workers. Other organizations would have resorted to retrenching and laying off, but this is not Shree's philosophy. Shree optimally utilized its surplus strength by developing worker skills in other technical process. This helped the company build in a redundancy factor wherein at any given point there was always a skilled set of people for any function. The company reduced overtime through efficient manpower utilisation, organised smooth functioning of the production cycle, increased job security leading to a greater sense of belonging and strengthened industrial relations. As a result the company did not lose a single day's work due to strikes or lockouts.Employees were deputed for Multiskill training of fitter trade in different Industrial Training Centers. Following the success of multi-skilling with workers, the company introduced this concept with staff members. The objective was to enhance competencies and to enable managers understand how an initiative taken by their department could affect the productivity and performance of another department. This broadened the outlook of staff members, making them think like business managers.

ASCENT PROGRAMME

Small groups have been formulated in order to institutionalize the process of learning, selfdevelopment as well as bringing continuity and inculcating the process of brain storming for self and organizations development.

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Campus Recruitment:
HR department communicate with the placement officer of the institute, inform him about organization manpower requirement along with job description and selection procedure. On fixed date team of SCL visit the campus.HR representative give a brief presentation on organization to aspiring candidate.

Presentation on Company Overview

Written Test (simple aptitude test and technical) Group discussion Interview.

Recruitment & selection process at SCL

During the beginning of year a circular is rolled out so as to have the requirement of manpower collected for different department. Questionnaires is being prepared, two type of circular is released one is for urgent requirement and another is forthcoming year, On the basis of requirement of different head of department manpower slip, number of employees to be recruited are being derived. Concerned head of department send a requisition slip to the HR Department. HR department examine the vacancy and send it to the executive director (E.D.) for approval. After approval, HRD find out the internal source for the requirement as such resumes available in Data bank are sent to concern HOD for screening. After shorting listed candidates, dates of interviews are fixed and Interview Board is finalized .Simultaneously interview letters are released, on the fixed date interviews are conducted by panel meant for the same and suitable candidates are released latter of intents.

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MANPOWER PLANNING
Personnel management is productive exploitation of manpower resources. This is also termed as Manpower Management. Manpower Management is choosing the proper type of people as and when required. It also takes into account the upgrading in existing people. Manpower Management starts with manpower planning. Every manager in an organization is a personnel man, dealing with people.

PLANNING
Planning is nothing but using the available assets for the effective implementation of the production plans. After the preparing the plans, people are grouped together to achieve organizational objectives. Planning is concerned with coordinating, motivating and controlling of the various activities within the organization. Time required for acquiring the material, capital and machinery should be taken into account. Manager has to reasonably predict future events and plan out the production. The basic purpose of the management is to increase the production, so that the profit margin can be increased. Manager has to guess the future business and to take timely and correct decisions in respect of company objectives, policies and cost

70

performances. The plans need to be supported by all the members of the organization. Planning is making a decision in advance what is to be done. It is the willpower of course of action to achieve the desired results. It is a kind of future picture where events are sketched. It can be defined as a mental process requiring the use of intellectual faculty, imagination, foresight and sound judgment. It involves problem solving and decision making. Management has to prepare for short term strategy and measure the achievements, while the long term plans are prepared to develop the better and new products, services, expansion to keep the interest of the owners.

Advantages of manpower planning Manpower planning ensures optimum use of available human resources. 1. It is useful both for organization and nation. 2. It generates facilities to educate people in the organization. 3. It brings about fast economic developments. 4. It boosts the geographical mobility of labor. 5. It provides smooth working even after expansion of the organization. 6. It opens possibility for workers for future promotions, thus providing incentive. 7. It creates healthy atmosphere of encouragement and motivation in the organization. 8. Training becomes effective. 9. It provides help for career development of the employees.

Steps in Manpower planning

1. Predict manpower plans 2. Design job description and the job requirements 3. Find adequate sources of recruitment. 4. Give boost to youngsters by appointment to higher posts.

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5. Best motivation for internal promotion. 6. Look after the expected losses due to retirement, transfer and other issues. 7. See for replacement due to accident, death, dismissals and promotion.

Job description
It will therefore need to set out the title of the job to which the employee is responsible A job description will set out how a particular employee will fit into the organization for whom the employee is responsible. It comprises of a simple description of the role and duties of the employee within the organization.

A job description could be used as a job indicator for applicants for a job. Alternatively, it could be used as a guideline for an employee.

Job

specification

A job specification goes beyond a mere description - in addition, it highlights the mental and physical attributes required of the job holder. For example, a job specification for a trainee manager's post in a retail store included the following:

'Managers at all levels would be expected to show responsibility. The company is looking for people who are tough and talented. They should have a flair for business, know how to sell, and to work in a team.'

Job analysis, description, and specification can provide useful information to a business in addition to serving as recruitment instruments. For example, staff appraisal is a means of monitoring staff performance and is a feature of promotion in modern companies. In some companies, for example, employees and their immediate line managers discuss personal goals and targets for the coming time period (e.g. the next six months). The appraisal will then involve a review of performance during the previous six months, and setting new targets. Job details can serve as a useful basis for establishing dialogue and targets. Job descriptions can be used as reference points for arbitrating in disputes as to 'who does what' in a business. Selection involves procedures to identify the most appropriate

72

candidates to fill posts. An effective selection procedure will therefore take into consideration the following: (1).Keeping the costs of selection down (2).Making sure that the skills and qualities being sought have been identified, (3).Developing a process for identifying them in candidates (4).Making sure that the candidates selected, will want the job, and will stay with the company.

(5).Keeping the costs of selection down will involve such factors as holding the interviews in a location, which is accessible to the interviewing panel, and to those being interviewed. The interviewing panel must have available to them all the necessary documentations, such as application forms available to study before the interviews take place. A short list must be made up of suitable candidates, so that the interviews do not have to take place a second time, with new job advertisements being placed.

The skills required should have been identified through the process of job analysis, description and specification. It is important then to identify ways of testing whether candidates meet these requirements.

Testing this out may involve: (1).Interviewing candidates (2).Asking them to get involved in simulated work scenarios (4).Asking them to provide samples of previous work (5).Getting them to fill in personality and intelligence tests (6).Giving them real work simulations to test their abilities.

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STUDY OF OPERATIONAL & QUALITY FUNCTION

In response to a galloping cement demand, Shree has been driving up capacity utilizations across all its units. In line with its impeccable record of over 100% utilization rate since inception, company registered an impressive operating rate of 116%. All the more commendable when compared to the average pan-India operating rate of 94%. Even the newly started Unit-III recorded 99.3% capacity utilization in its first full year of operations itself.

Cement and clinker production

Year Cement (MT) production Clinker (MT) production

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2004-05 2005-06 2006-07 2007-08 2008-09 2009-2010

2.747 2.841 3.016 3.220 4.779 5.233

2.285 2.292 2.483 2.771 3.209 4.241

Record Kiln Operations

Good practices in utilizing men and machinery have resulted in outstanding kiln operations. Kiln-II achieved the twin distinctions of the longest runtime of 337 days as well as the longest continuous running of 105 days in 2006-07. Highlighting the benefits of sustainable operations is another fact. A common problem with kilns is stoppage every 3 or 4 months because of refractory failure. But, at Shree, Kiln-II ran continuously for 9 months without any shutdown due to refractory failure.

Raw Material Management

Commodity business is dependent upon naturally procured resources for its

manufacturing. The real challenge for SHREE is thus to manage costs and seek alternatives wherever possible.The fundamental strength of SHREEs business model starts from its core competence in raw material management. Its innovative approach and excellent risk taking capability has its business sustainable.

HiTech Mining
Limestone is the principal raw material in the cement production. The company is committed to conserve this natural mineral resources to ensure sustainability for long term operations. Company has been consistently deploying latest technology newer methods of

75

mining. Company also deployed imported Hi-Tech blast-hole drill machines for improving its efficiency in its drilling activites.

Manufacturing Practices
Their cement and clinker production exhibit a steady increase over last two years. Cement production increased 32% to 6.3 million tonnes in FY 07-08. They pursue manufacturing practices which compare well with world cement industry. They have been awarded highest rating for the 7th consecutive year by White Hoplema, UK. With continual capacity expansion, they have gained expertise and knowledge to quickly put new units into stabilized output mode.

Product Mix
Production of Pozzolona Portland cement (PPC) is both value assertive and eco-friendly. At SHREE their production of PPC is increasing over the last many years, mirroring industry demand.

Power Consumption
SHREE cement strives to reduce power consumption. It regularly invest in adoption of new technology and practices for reducing its usage of power. Its unstalled and replaced a range of energy efficient equipments in the year such as high efficiency fan and motors, VFD etc. it continually looks at the ways to reduce the idle running of equipment. More finer grinding of cement lead to more power consumption. The additional cost well recovered through better price realization.

Quality Philosophy
The company's quality obsession covers the following: Holistic perspective covering all organisational functions. Continuous improvement in standards. Continuous reduction in cost Strong focus on start of the pipe solutions instead

76

of end-of-th-pipe reviews. Lapse prevention focus as opposed to a fault-finding culture. Strong documentation process that enables product complaints to be traced swiftly and effectively to the root problem. Performance improvement through knowledge sharing with other plants.

Quality Assurance
Shree markets cement with certificates that testify to the high production standards achieved by the company. The company's technical officers reach the customer's site to inspect the performance of the material. Shree conducts special meetings with masons and architects, impressing upon them the quality of its product.

Quality Initiatives
Shree Cement possesses one of the few R&D centres in the Indian cement industry. This center has been recognised by the DSIR, Government of India. The research team is headed by a highly qualified and experienced scientist. Shree's R&D center has directly contributed in the conservation of electrical and thermal energy, an improvement in product quality, cost reduction, mineral conservation through the intelligent use of fly ash and a waste reduction in mines through the use of low ash coal. Computer Aided Mine Planning System Stacker-Reclaimer for homogenization of lime stone On-Line Sampling System by Auto Samplers X Ray Analyzers Automatic Raw Mix Design Controls by Ramco-Software On Line Raw meal Blending Control in C.F. Silos Coal homogenization (StackerReclaimer) Gypsum homogenization Fuzzy Logic Control for Kiln operation Roller Press Control & High Efficiency Separator for particle size distribution Packing by Automatic Electronic Packers

STUDY OF STORE DEPARTMENT

Store department structure

77

Procedure of Stores

ENTRY

ENTRY

ENTRY

ENTRY 78

GATE ENTRY

RECORDED OF PACKAGING MATERIAL

PACKAGING STORES

ONLINE DEPARTME ISSUE NTWISE

ARRANGEMENT OF PACKGING MATERIAL AT STORES

As the gate entry of packaging materials is done, it reaches to the packaging stores after the quality is checked. At packaging stores transfer to that department .if not, than the material is stored at the packaging stores. Materials are not given different codes for their identification but the arrangement of packaging materials is done over there as per the available space problem is their.

ISSUE OF MATERIA L DEPARTM ENTWISE

DEMAND FOR PACKAGING MATERIAL

STOCK VARIFICATION RETURN OF RAW MATERIAL (IF ANY)

QUALITY CHCK

RECEIPT OF THE PACKGIN G MATERIA L

79

Issue of packaging material is done as per the department need /demand. After the issued of the packaging material found not suitable or the remained material is returned to the packaging stores. Daily recording of receipt, issue & return of the material is done both the manually & through the SAP system...The purchase of packaging martial is carried out by the HOD of the packaging stores ads the different department makes their demand through e- mail to the packaging stores .on the average about 2 carore of material is purchased monthly.

Material Handling

From gate to the packaging store material handling is done with the help of vehicles. Material handling is done with the help of hand striker within the packaging stores.

From packaging stores to various department s the material handling is done with the help of FORKLIFT.the materials receipt is made &I f any demand of material is there the material is supposed to be.

STUDY OF RESEARCH & DEVELOPMENT FUNCTION

The primary thrust of SCL Research & Development efforts is to develop products and processes that are efficient, safe and environmentally friendly; and which cater to demands of global and domestic customers. Process and product improvement are also key activities of the R&D group. In order to respond quickly to market demands, every business unit (Agrochemicals, Aromatics, Bulk Chemicals and Intermediates, Colors, Pharmaceutical Intermediates, and Polymers) has its own Research & Development team. The central Research & Development group provides common facilities like pilot plant, certain analytical instruments, technical library etc. Our entire Research & Development team consists of Doctorates and Graduates. We subscribe to several Indian and international journals and magazines. We are well equipped with analytical instruments such as HPTLC, GCMS, DSC, atomic absorption spectrophotometer, HPLC and GC. We have established links with certain CSIR

80

laboratories like IICT, Hyderabad; NCL, Pune; and CSMCRI, Bhavnagar with the primary purpose of technology transfer and sponsored research programmes. During 2004-05, the Research & Development team developed approximately 70 processes and the Company commercialized ~ 40 processes. Close to 30 processes were improved with respect to raw material and utility usage, batch cycle time and waste reduction. Several new methods of analysis (Wet Chemistry, HPLC, GC) were developed. Shree Cement Ltd. spends close to 1% of its sales value on Research & Development. During 2004-05 goods worth Rs 100 crores of sales values were manufactured based on processes developed in our Research & Development laboratori

Types of Communication Channel

In SCL communication is done in following ways.

UPWARD COMMUNICATION:
Upward communication is done bottom to top e.g. lower people report to higher level.

DOWNWARD COMMUNICATIONS:
Downward communication is done top to bottom e.g. higher level people Supply information to bottom.

HORIZONTAL COMMUNICATIONS:
Horizontal communication is done between different departments.

The Cement Sustainbility Initiative

Shree has been a forerunner in adopting the sustainability paradigm. A reflection of the fact is that the company pursues a holistic growth agenda with emphasis on three measures, or bottom lines, of corporate performance economic, social and

81

environmental. Economic performance brings out the companys contribution to production and profit, social performance highlights its contribution to community, the environmental performance brings out the contribution to conserving the environment. Shree was the first Indian and the third Asian cement company to join the Cement Sustainability Initiative (CSI) of the World Business Council for Sustainable Development (WBCSD), Switzerland. As a member of CSI the company is committed to pulling down its energy footprint, implementing best practices and sharing its knowledge with other members. The company has also joined the league of seven nations viz. the Asia Pacific Partnership on Clean Development and Climate change comprising of the USA, Australia, China, Korea, Japan, Canada and India. The company brings out Corporate Sustainability Report (CSR) every year. Prepared along the lines of the latest Global Reporting Initiative (GRI) guidelines, the Reports are being externally assured.

Limitations Of The Study 82

The following are the limitations of the study, As we had a limitation of time, the detailed report about the operations of the organization was not possible. The information given by the persons may not be complete because of their busy work schedules The report suffers from the limitation of meeting only the departmental heads because of lack of permission to interact with other people.

Organizational Design
Organization Design is a formal, guided process for integrating the people, information and technology of an organization. It is used to match the form of the organization as closely as possible to the purpose(s) the organization seeks to achieve. Through the design process, organizations act to improve the probability that the collective efforts of members will be successful. Typically, design is approached as an internal change under the guidance of an external facilitator. Managers and members work together to define the needs of the organization then create systems to meet those needs most effectively. The facilitator assures that a systematic process is followed and encourages creative thinking.

Hierarchical Systems
Western organizations have been heavily influenced by the command and control structure of ancient military organizations, and by the turn of the century introduction of Scientific Management. Most organizations today are designed as a bureaucracy in whom authority and responsibility are arranged in a hierarchy. Within the hierarchy rules, policies, and procedures are uniformly and impersonally applied to exert control over member behaviors. Activity is organized within sub-units (bureaus, or departments) in which people perform specialized functions such as manufacturing, sales, or accounting. People who perform similar tasks are clustered together. The same basic organizational form is assumed to be appropriate for any organization, be it a government, school, business, church, or fraternity. It is familiar, predictable, and rational. It is what comes immediately to mind when we discover that ...we really have to get organized! As familiar and rational as the functional hierarchy may be, there are distinct disadvantages to blindly applying the same form of organization to all purposeful groups.

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To understand the problem, begin by observing that different groups wish to achieve different outcomes. Second, observe that different groups have different members, and that each group possesses a different culture. These differences in desired outcomes, and in people, should alert us to the danger of assuming there is any single best way of organizing. To be complete, however, also observe that different groups will likely choose different methods through which they will achieve their purpose. Service groups will choose different methods than manufacturing groups, and both will choose different methods than groups whose purpose is primarily social. One structure cannot possibly fit all.

Organizing on Purpose
The purpose for which a group exists should be the foundation for everything its members do including the choice of an appropriate way to organize. The idea is to create a way of organizing that best suits the purpose to be accomplished, regardless of the way in which other, dissimilar groups are organized. Only when there are close similarities in desired outcomes, culture, and methods should the basic form of one organization is applied to another. And even then, only with careful fine tuning. The danger is that the patterns of activity that help one group to be successful may be dysfunctional for another group, and actually inhibit group effectiveness. To optimize effectiveness, the form of organization must be matched to the purpose it seeks to achieve.

The Design Process

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Organization design begins with the creation of a strategy a set of decision guidelines by which members will choose appropriate actions. The strategy is derived from clear, concise statements of purpose, and vision, and from the organizations basic philosophy. Strategy unifies the intent of the organization and focuses members toward actions designed to accomplish desired outcomes. The strategy encourages actions that support the purpose and discourages those that do not. Creating a strategy is planning, not organizing. To organize we must connect people with each other in meaningful and purposeful ways. Further, we must connect people with the information and technology necessary for them to be successful. Organization structure defines the formal relationships among people and specifies both their roles and their responsibilities. Administrative systems govern the organization through guidelines, procedures and policies. Information and technology define the process (es) through which members achieve outcomes. Each element must support each of the others and together they must support the organizations purpose.

4. FACTS & FINDINGS

85

After completing the study I come to know that academic learning is different and working in organization and learning is different. After spending such precious time in an organization my major facts & findings in that particular organization are as follows:

The primary thrust of shree cement ltd. Research and development efforts is to
develop products and processes that are efficient, safe and environmental friendly and which cater to demands of global and domestic customers. Process and product improvements are also key activities of the shree cement limited.

Shree markets cement with certificates that testify to the high production standards
achieved by the company.

Shree cement strives to reduce power consumption. It regularly invest in adoption of

new technology and practices for reducing its usage of power.

The management believes in the self actualization of its employees by injecting the
concept of human resource development in all its policies and strategies.

Shree cement emphasizes that creating leaders not just at the organizational apex
but at every level results in strong sense of emotional ownership.

Marketing department made me to learn about, how the customers can be attracted
by giving him innovative thoughts and ideas and benefiting to both the organization and the common people.

An organization study also makes me learn that any objective cannot achieve with a short span of time it has to be done through systematic ways. In any organization time management play important role because each activity should be done at a right time at right place.

FINDINGS 86

The analysis of the ABC (ALWAYS BETTER CONTROL), the main findings of company are as below:

the

It is managing its inventory with all the advanced techniques. So that there can be put control over inventory conversion period. In the company the total inventory conversion period is good in the year 2008-09. The material having high cost and having low use as compared to the last five years The A" category material are use of at minimum level ,so they can keep an easy control over wastage of material Forms the total inventories low number of inventory have high annual consumption. The company uses the many techniques for the control of the analysis inventory management. It is aware of the control of the inventory management.

5. ANALYSIS AND INTERPRETATION

87

Manpower training hours/Year

Year
99-00 00-02 01-02 02-03

Training hours
4.92 5.28 8.33 12.00

Manpower productivity
Year
99-00 00-01 01-02 02-03

Productivity (MT/person)
2011 2069 2029 2226

Labour cost
Year
99-00 00-01 01-02 02-03

Labour cost /tonne

63.49 69.63 74.96 88.90

HR training

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Number of Number Programmes participants

2001-03 283 32 315 527 29 556 76.5 Average hours person 8.33 4849 55 4904 8794 48 8842 80.3 12.00

of Man hours

8804 1232 10036 14447 1200 15647 55.91 44.05

Executive grade people skill

Qualification %

89

MBA CA/CS/ICWA ME/MBBS/MSW Post Graduates Technical Diploma Management Diploma Graduates ITI Inter/SSE Below SSE

5.67 2.91 0.58 12.21 19.77 8.43 31.25 9.30 7.85 2.03

Cement and clinker production

Year Cement (MT)
2.747 2.841 3.016 3.220 4.779

production Clinker (MT)

2.285 2.292 2.483 2.771 3.209

production

2004-05 2005-06 2006-07 2007-08 2008-09

Allocation of funds
FMP= 70% FD= 20% Liquid funds= 5% Debt fund= 5%

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6. SWOT ANALYSIS
Strength and weaknesses are essentially internal to the organization and relate to the matter concerning resources, programmes and organization in key areas such as Sales Marketing Capacity Manufacturing cost etc Opportunity and Threat are external to the organization and can exist or develop in the following areas Size & Segmentation Growth pattern and maturity International dimensions Relative attractive of segments

STRENGTH 91

 Company is established in Beawar where most of the land is rocky and material is
suitable for the production of cement, thus it is closely bound to the resources.

Specific chemical composition which makes it coerosion free and also have a very
good chemical recovery efficiency.

Company have its own electricity production unit thus need not to depend on the
availability of power n dependency on electricity department.

Well transport facility, it has its own railway track. Leading brand in north India. Thus people gives preference to the brand. Maintain a very good customer loyality and relationship. A very superior production quality thus customer are always satisfied. Upper level of management is too skillfull.

WEAKNESS Poor access of distribution. Very less advertising thus in other part of country its not as popular. Technical knowledge is less at lower level of employee, which is draw back for
achieving maximum profit. Its difficult for them to change to an alternate line o production with existing machinery.

OPPORTUNITIES
Changing customer taste, thus they may get the market from the switchers. Liberalization of geographic works, thus they can enter into different market. Huge land available for expansion of business in future. Govt is planning for betterment on infra structure thus there will be huge demand for cement. Booming real estate sector. Good relation with bankers thus for expansion of business they need not to look too far.

Threats 92

Changing customer taste, any time they may switch to other.

Advancement in technology. Entry of new player. Few major players are situated near the main plant thus market share is difficult to
increase. Change in govt policy as they may increase the tax. Non availability on raw material.Labour and higher technical personnel may switch to another plants

7. CONCLUSION
Learning is a never ending process which continues from birth of human being to his/her death. It can also be done by reading book and through training and work. Spending 45 days in SHREE CEMENT LTD. was good learning experience for me. After completing the organization study I come to know that academic learning is different and working in organization and learning is different. After spending such precious time in an organization my major finding in that particular organization are as follows: Firstly, organization culture of Shree Cement is formal, where every person cannot directly meet to High authority with out any systematic way which I considered was good because it encourages employees at work. Secondly, organization structure of Shree Cement is well formatted in which each and every department plays important role. Thirdly, in the organisation structure is divided into to 4 part one is in Finance, Marketing, Operation & Quality, Human and Resources These all departments are headed by different persons but at the same time they work for same objective with full co-ordination which shows the unity level about the organisation.

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 Fourthly, all the employees and labourers work very hard towards achieving the goal. Even the higher authorities work very hard without wasting time towards the organization goal Fifthly, security concern in shasun chemicals. doesnt allow the outsiders to enter into the factory without prior appointment or consulting the higher authorities. They have a very effective security system. Sixthly, Administrative head role in an organisation very important to make good working environment the practice which I observed was that he was very hard working person and he does his work very efficiently. Seventhly, marketing department made me to learn about, how the customers can be attracted by giving him innovative thoughts and ideas and benefiting to both the organization and the common people. Eighthly, an organisation study also makes me learn that any objective cannot achieve with a short span of time it has to be done through systematic ways. Finally, in any organisation time management play important role because each activity should be done at a right time at right place.

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8. RECOMMENDATION & SUGGESTIONS

Advertising strategies should be revised. More focus should be given on publicity and
awareness among customer should be there.

A price of Bangur Cement is much higher than other competitors brands and this
lead to very less margin of profit for retailers. To prevent this type of problem company should provide more margins of profit & incentives to defer it.

The main & lucrative factor may for Bangur cement is contracted , relation will create a
smooth flow of sales for Bangur cement. So they should make more frequent in contractors meeting.

We often see that retailers would like to sale only that product in which he gains more
profit, so we should give a good margin of profit to retailer.

In sales promotion activity, we should focus on counter meeting, contractors meeting &
retailer meeting, in which we can give some gifts and refreshments to contractor, dealer and retailers.

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 They should offer POP material and other incentives to push the confidence in Bangur
cement dealers and contractor.

Literature can be provided to stockiest and retailers. This written material will also
help them to advertise and promote the product.

The major problem faced by the retailers is great transparency in prices so company
should make a policy for stability in prices at every stockiest in jaipur city.

Company should also provide more technical services, so they can visit every site &
solve the customers problem.

9. QUESTIONNAIRE
This questionnaire is being circulated for surveying the extent of information the employees of SHREE CEMENT Ltd. have about their company, their level of satisfaction and the opinion they have about SCL. All information an details of the survey will be kept confidential only consolidated result will be used for MBA project report. 1. 2. 3. 4. Employee's Name Organization Name : : ______________________ ______________________ : ______________________

Department of the Employee Designation :

______________________

Q.1

How is the demand of shree cement. products in the market ? (a) (b) (c) Moderate Excellent Less

96

(d)

Very Less

Q.2

What is market position of shree cement ? (a) (b) (c) (d) Good Moderate Poor Can't Say

Q.3

What is the quality of material used in production ? (a) (b) (c) (d) High Quality Moderate Quality Better Quality Low Quality

Q.4

What about the price level of material procured for production ? (a) (b) (c) (d) Very price competitive High priced No concern about price Don't know

Q.5

Do you the shree cement. employee's satisfied about the management process of the shree cement Company?

(a)

Highly

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(b) (c)

Moderate Low

Q..6

Do you think that customers of shree cement products are highly satisfied with the

product? (a) Yes (b) No

Q.7 Are you satisfied with the companys production and turnover ? (a) Yes (b) No (c) Yes,but need for further increase

Q.8

State any resource because of which turnover of shree cement product are increase/decreased in last few year.

Q.9

Are you satisfied with the marketing procedure and procurement policy adopted in shree cement ? Say yes or no if no please give comments in 20 words. __________________________________________________________________

Q.10 Please write in 20 words your ideas/suggestions for improving the performance of the company. __________________________________________________________________ __________________________________________________________________

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10. BIBILOGRAPHY
Books
Fredrick .E.wepster.Jr.,The changing role of marketing in corporation, journal of marketing (oct.1992) Kothari, C.R, Reasearch Methodology, New delhi, New age international (p) ltd.1985 Nagargunkar Rajendra, Marketing Research Mc Graw-Hill publication, Edition-2005 Donald R.cooper, Pamela, S.schinler Business research methods, Mc Graw-hill publication New delhi,8th edition Gupta V.K (2000),Marketing of financial services, Mohit publication Kotler Philip, Marketing Management, 11th edition Max Manfred Bergeman, Mixed Method Research Sage pubrns.ltd, New edition Saxena Rajan- Marketing Management, 3rd, Tata Mcgraw Hills Company Stake E.Robert, Research on scientific research Sussex Academic Pr, New Edition

Magazines
Annual report of company for the year 08-09 Business world

Webilography
1:-http://www.Shreeltd.Research and markets.com/Report info.asp.? Report _id=3668 2:-http://www.Shreecement.Research and markets.com/Product/display.asp.? Report_id=35067

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3 :-http://www.en.wikipedia.org/wiki/customer_satisfaction 4:-http://www.management help.org/customer/satisfy.html

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