SUMMER TRAINING PROJECT REPORT ON

RADHE Renewable Energy Development Pvt. Ltd.

1

PREPARED BY
PAREKH NILDIP N. ROLL NO - 34 “KNOWLEDGE GURUKUL INSTITUTE OF BUSINESS MANAGEMENT”

ACADEMIC YEAR
2008 - 2010

GUIDED BY
MS. MILI THAKKAR MR. JAYESH VACHHANI

SUBMITTED TO
SAURASHTRA UNIVERSITY, RAJKOT

SUBMITTED ON
5TH SEPTEMBER, 2009

2

DECLARATION

I Undersigned, PAREKH NILDIP N., A Student of MASTER IN BUSINESS ADMINISTRATION (MBA Sem-3rd) from KNOWLEDGE GURUKUL INSTITUTE OF BUSINESS MANAGEMENT, RAJKOT, hereby declare that the project work presented in this report is my own contribution and has been carried out under the supervision of MS. MILI THAKKAR AND MR. JAYESH VACHAANI OF KGIBM.

I precisely assure you that this work has not been previously submitted to any other University for any examination by any student.

DATE: PLACE: - RAJKOT _____________________ (PAREKH NILDIP) Signature

3

ACKNOWLEDGEMENTS
“Education never ends but it is a Continuous Process” this famous quote, noted by a French Philosopher, is on the top of my mind, while I am submitting this report. As we know Management refers to “Manage + Men + T (Time, Task, etc.)”. We all agree with this statement & wish to include that it would have been not possible to complete this project without many people’s directly or indirectly help and support. I am thankful to all of them. First and foremost I am thankful to my guides MS. MILI THAKKAR AND MR. JAYESH VACHHANI, who helped not only as guide but also as a friend. Only because of their guidance I could finish my summer training project report. I would also like to give my heartily thanks to MR. VIJAY

KALAVADIYA, Managing Director of RADHE RENEWABLE ENERGY DEVELOPMENT Pvt. Ltd. who permitted me to make the project. I am very much thankful to MR. VIJAY KALARIYA and PANKAJ SIR who arranged all possible visits at RADHE. I am glade thankful to all the staff members of RADHE RENEWABLE ENERGY DEVELOPMENT Pvt. Ltd. and all my colleagues for their co-operation & their valuable support. Last but not the least; I am thankful to my family members and my friends who gave me their blessings and inspiration needed to prepare this report. I am pleased that I took training at RADHE DEVELOPMENT Pvt. Ltd. RENEWABLE ENERGY

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PREFACE

There is a well Known Proverb That “The Practice Makes a Man perfect”. As per this proverb one can become perfect only by practicing the theory. In this age the theoretical knowledge is not sufficient. One also needs the practical knowledge to survive in the market which is full of competition. A diamond when taken out from a mine looks just like a piece of rock. But when it is polished given a good shape, it becomes beautiful and valuable. Similarly, the talent and ability of a student to perform is increased by practical knowledge. The prime objective of practical training in M.B.A. Program is to make a student practically conversant with the real working system of any organization. In M.B.A. course, the students have a special and compulsory subject namely ‘A Summer Training Project Report’ implied by SAURASHTRA UNIVERSITY. Under this subject, students are required to visit one industry. The object behind this subject is to develop students’ awareness about industrial field and business structure and also to give the practical idea about the functioning of various industrial organizations which may differ from theoretical knowledge which the students get from their college. So, to attain this objective and to have the outlook of all intricacies of corporate world I have undertaken the Summer Training at RADHE Renewable Energy Development Pvt. Ltd. I have tried my best and have applied all my efforts, knowledge and sources available in this summer training project report.

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TABLE OF CONTENT

NO.

PARTICULARS

PAGE NO.

1.

GENERAL INFORMATION

07 16 27 39 52

2.

PRODUCTION DEPARTMENT

3.

FINANCE DEPARTMENT

4.

HUMAN RESOURCE DEPARTMENT

5.

MARKETING DEPARTMENT

6.

SWOT ANALYSIS

67

7.

REVIEWS AND FINDINGS

71

8.

CONCLUSION

72

9.

BIBLIOGRAPHY

73

6

1. GENERAL INFORMATION

7

INDEX

NO.

PARTICULAR

PAGE NO.
09 10 11 12 13 14 15

1. 2. 3. 4. 5. 6. 7.

COMPANY OVERVIEW COMPANY PROFILE HISTORY & DEVELOPMENT OF THE COMPANY HEAD OF DEPARTMENTS MISSION & VISSION REGISTERED OFFICE ORGANIZATION STRUCTURE

8

COMPANY OVERVIEW

In the present economical revolution in world, to survive in the present situation each and every industry needs to make implementation in their old style manufacturing process or has to adopt new Energy efficient Technology. Today, fuels are the back bone of every industry. As fossil fuel price in worldwide is increasing day to day due to its high demand so non-conventional & renewable energy technology is the only solution to survive, make more profit and create eco-friendly environment. The RADHE Group, founded by Dr. S. V. Makadia, is India's largest private sector enterprise, with businesses in the energy sector. The flagship company, RADHE Renewable Energy Development Pvt. Ltd. is the largest private sector company in Metoda, India. RADHE enjoys global leadership in its businesses, being the leading manufacturer of Gasifier plant and Briquetting machines and enjoys successful and satisfied customer base across the globe. THE KEY TO RADHE’S SUCCESS: •
• • • •

Value for the Customers Sound Business Concepts & Investment Philosophies Adherence to the Best Business Practices Strong Management Team Professional and Dedicated Organization

9

COMPANY PROFILE

Company Name Establishment year Type of Ownership Type of Unit Product Working hours Accounting Year Bankers Promoter & Chairman Directors Auditer Email Total Products Total Number of Employees

RADHE RENEWABLE ENERGY DEVELOPMENT Pvt. Ltd. 1992 Private Limited Medium Scale Unit Industrial Products 9 Hours March-April 1) Corporation Bank 2) HDFC Bank Dr. S. V .MAKADIA Mr. SANDEEP MAKADIA & Mr. VIJAY KALAVADIA H. JAMANADAS & co. info@radhegroup.com 2 230

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HISTORY AND DEVELOPMENT OF THE COMPANY

The managing Director of Radhe Renewable Energy Development Pvt. Ltd. Dr. S.V. Makadia started the company in 1992. Dr. S.V. Makadia tried so many businesses but he failed in those. Then he joined the field of Renewable Energy. Radhe Renewable Energy Development Pvt. Ltd. is the core company of the Radhe group of companies located at Rajkot, Gujarat, India. This Group’s main line of activity is research, development, manufacturing and marketing of non-conventional & renewable energy equipments i.e. bio mass gasifier, white coal, fluidized bed furnace. Radhe Renewable Energy Development Pvt. Ltd. starts with producing of ‘white coal’. Then Dr. S.V. Makadiya expanding his business and started to manufactured a huge Gasifiers plant. Today Radhe Renewable Energy Development Pvt. Ltd. is the first and foremost company in INDIA which enjoys the credit of developing and manufacturing of Gasifer plants, which run on renewable fuel i.e. Biomass Briquettes or white coal. Now the company is in a position to offer different size and types of Gasifiers suitable for various applications with maximum efficiency and acceptable by quality standards. Interaction and communication with foreign companies engaged in similar activities is also in the progress, which finally will result in sharing of technology for mutual interests.

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HEAD OF DEPARTMENTS

Mr. Sandeep Makadiya DIRECTORS & Mr. Vijay Kalavadiya HR & ADMINISTRATION FINANCE & ACCOUNT PRODUCTION RESEARCH & DEVELOPMENT MARKETING ELECTRIC STORE & PURCHASE EDP CONTROL & Co-ORDINATE TECHNICAL Mr. Vijay Kalavadiya Mr. Nilesh Makadiya Mr. Chiman Ukani Mr. Kaushik Guradhariya Mr. Shailesh Makadiya Mr. Rupesh Chauhan Mr. Haresh Changela Mr. Jayesh Popat Mr. G B. Bavishi Mr. Vimal Kalavadiya

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MISSION & VISSION

To encourage and promote the Non- Conventional and Renewable Energy Resources.

To make India Self-depended in Energy Resources and reduce Fuel Import.

To utilize waste-land for Bio-mass cultivation.

To create employment round the year.

To enrich Earth’s resources with the winds of change creating cleaner environment for the next generation.

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REGESTERED OFFICE RADHE RENEWABLE ENERGY DEVELOPMENT PVT. LTD

Plot No.2621/22, Lodhika G.I.D.C., Kalawad Road. P.O.Metoda, Tal. Lodhika, Dist. Rajkot

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ORGANIZATION STRUCTURE

DIRECTOR

MANAGING DIRECTOR
P.A

Administration

Marketing

Works

Finance

Human Resource Department

Planning and designing

Production

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2. PRODUCTION DEPARTMENT

16

INDEX

NO.

PARTICULAR

PAGE NO.

1. 2. 3. 4.

INTRODUCTION ORGANIZATION CHART FOR PRODUCTION DEPARTMENT PRODUCTS PLANT LAYOUT

18 19 20 26

17

INTRODUCTION

“Production is Fundamental Function of the Company”.
Production is the basic activity of all the industrial units. All other activities revolve around this activity. We can say that Production activity is nothing but the step conversion of one form of material into another either chemically or mechanically. The end product of the production activity is the creation of goods or services for the satisfaction of human wants. The production activity is process by which the goods are produced or utility enhanced. “Production is an organized activity of converting raw material in to final product.” Every process of converting raw material in to final goods is known as production process. Production department is lifeblood of company. Each and every company tends to produce something. A product which produced by the company has specific process. A worker, technology, raw material, power, transportation are needed for production. A product may be useful for market or industry after the process of manufacturing had been done.

RADHE RENEWABLE ENERGY DEVELOPMENT PVT. LTD. is engaged in manufacture and promotion of heavy machine. At present the unit is producing about 2 products, which comprises as under.

1) Bio-mass Gasifier System 2) Bio-mass Briquetting Plant

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ORGANISATION STRUCTURE

PRODUCTION MANAGER

Job contractor

Quality Controller

Supervisor

Labor

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PRODUCTS

 Bio-mass Gasifier Plant

GASIFICATION is a process, which converts solid carboneous material/fuel, waste material in to useful clean gaseous fuel called PRODUCER GAS. And the plant is known as Bio-mass Gasifire plant.

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 GASIFIER TECHNOLOGY The development of Bio-mass Gasification technology over the past 20 years has significantly increased the use of various solid fuels & it’s a novel technology. The Gasifier is essentially a reactor, where various complex physical & chemical processes take place like Drying, Heating, Pyrolysing, Particle Oxidation & finally reduction as it flows through it. The gas, which produces is know as producer gas.

 APPLICATION OF GASIFIER PLANT:
The Gasification technology has wide range of applications, notably in Ceramics Industries Rubber Industries Pharmaceuticals Textile Processing Unit Cement Industries Rolling Mills Chemicals Industries Food Processing Unit Paper & Pulp Industries Various Dryers Forgings Industries Other Industries where Heat is require

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 FEATURES & ADVANTAGES:
The bio-mass Gasifier system is capable for gasifying several types of solid fuel such as wood, bio-mass Briquettes, charcoal, Indian steam coal, imported coal at high efficiency. • TECHNICAL FEATURES − − − Low nox formation due to low flame temperature. Negligible Sox formation due to bio-mass as a feed stock. After combination of procedure gas ash and smoke

emissions are very negligible compare to solid and liquid fuel combustion. − − − − − − − Acceptability of range of carbonous material. Facility to switch over the online fuel change. Auto ash removal system. Low temperature & pressure during operation. Stable operation to maintain stability in end process. High standard safety precaution facilities and Emergency shut down facilities.

automization.

ENVIRONMENTAL & SOCIO-ECONOMIC BENEFITS − − − − − Worldwide environment friendly accepted renewable Environmental friendly & reduce green house gas Replaces fossil fuel & reduce oil import bill. Generate employment. Payback period 6-8 months.

technology. emission.

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 PROCESS
The essence of gasification process is the conversion of solid carbon fuels into carbon monoxide by thermo chemical process. The gasification of solid fuel is accomplished in air sealed, closed chamber, under slight suction or pressure relative to ambient pressure. Gasification process occurring in general explained in this section.

Gasification is quite complex thermo chemical process. Splitting of the gasifier into strictly separate zones is not realistic, but nevertheless conceptually essential. A gasification stage occurs at the same time in different parts of gasifier.

23

In gasification, the combustion is carried out at sub-stoichiometric conditions with air to fuel ratio being 1.5:1 to 1.8:1. The product gas thus generated during the gasification process is combustible. This process is made possible in a device called gasifier with a limited supply of air.

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 Bio-mass Briquetting plant:

MODEL : JUMBO-90

The Briquetting press is a ram type press designed for continuous heavy-duty operation with two load wheels. One of the load wheels acts as a pulley, and driven by the main motor through a flat belt forced lubrication is provided by oil lubrication system which gives a longer life to the press.  Key Features of the Project • • • • • •

High Profitability. Excellent growth potentiality. Ready Market. Wide variety and easy availability of agro waste from Various crops. Short gestation and quick returns. Employment Potentiality. Conversion of natural resources into Hi-tech energy & Maintenance of ecological balance.

25

 Working of Briquetting plant Briquetting plan works under the project “Best from West”. User collects different type of agriculture waste and converts into biomass fuel.  Raw material Major Agro - waste that can be used as raw material.

Ground shell Wood chips  Final product

Sugarcane waste Forestry waste

Coffee husk Rice husk

Final product from plant is white coal. Looking at the success of the 2 models in operation, the company decided on looking forward to expanding its products and services abroad and started presentation of the Technology to underdeveloped & developing countries to contribute further in the conservation of natural

26

resources

and

utilize

agricultural

waste

to

convert

into

non

conventional energy.

PLANT LAYOUT
“Plant layout refers to the arrangement of the physical facilities such as machinery, equipment, furniture etc… with in the factory building in such a manner so as to have quickest flow of material at the lowest cost and with the least amount of handling in processing the product from the receipt of material to the shipment of the finished product.”

Plant layout is an important decision as it represents long-term commitment. An ideal plant layout should provide the optimum relationship among output, floor area and manufacturing process. It facilitates the production process, minimizes material handling, time and cost, and allows flexibility of operations, easy production flow, makes economic use of the building, promotes effective utilization of manpower, and provides for employee’s convenience, safety, comfort at work, maximum exposure to natural light and ventilation. It is also important because it affects the flow of material and processes, labor efficiency, supervision and control, use of space and expansion possibilities etc.

In Radhe Renewable Energy Development Pvt. Ltd. There is production of giant machines so it is not possible to manufacture final product and then transport it. Moreover all the work depends upon the order. They divide the product in five parts, manufacture all that part, transport it and finally they fit that plant on the desired spot of customer. So there is a job-shop type of plant layout.

27

3. FINANCE DEPARTMENT

28

INDEX

NO.

PARTICULAR

PAGE NO.

1. 2. 3. 4. 5. 6. 7. 8. 9.

INTRODUCTION ORGANIZATION STRUCTURE FINANCIAL PLANNING CAPITAL STRUCTURE MANAGEMENT OF FIXED ASSETS MANAGEMENT OF WORKING CAPITAL RECIEVABLE MANAGEMENT INVENTORY MANAGEMENT MANAGEMENT OF CASH

29 30 31 32 33 34 36 37 38

29

INTRODUCTION

It is said that, “Finance is the arms and legs of business “. A potential and capable management can run the department very money should be utilized in adequate manner. effectively. In finance department, each and every decision should be taken in such a way that every pie of

In a modern business world, finance is considered as the “lifeblood of business” without finance it is impossible to think even about single business activity. So organizations must have large or extra ordinary management of finance to compete other players. In simple words, finance management can be called “simply a task of providing funds for an enterprise in achieving organization goal”.

Today finance management has a deeper meaning. The role of finance manager is not limited to arrangements of finance only. But it holds a key position in top management of companies.

In Radhe Renewable Energy Development Pvt. Ltd. Financial Department is handled by mainly two types of persons, Auditors, and Financial planners.

30

ORGANIZATION STRUCTURE

FINANCIAL MANAGER

Auditor

Financial Planner

Accountant

Clerk

Clerk

31

FINANCIAL PLANNING

It is said that the most important task of financial manager is financial planning and proper plan avoids problem of the future. Finance is the function of organization which should be used in proper way. There is always scare of finance in an organization. The financial manager should have planning of finance. Each & Every company has financial planning for its future
plans. Financial planning is decided in the meeting of directors.

The basic purpose of financial planning is to make sure that adequate funds are raised at the minimum cost and they are used wisely. It should be seen that finance is neither excess nor inadequate. Financial plan is essential for the organization and operation of an enterprise and involves the following three basic steps: • • Determining financial objectives; both short term and long term Formulating financial policies such as capitalization, capital structure, source of finance, investment of funds, dividend etc… • Making adjustments and re-adjustment i.e. re-planning for removing defects and ineffectiveness.

In Radhe Renewable Energy Development Pvt. Ltd. Dr. S.V. Makadiya, who is managing director of the company, takes all financial decision with help of C.A. he deals with the matters like long term finance, source of finance etc.

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CAPITAL STRUCTURE

Capital structure decision is yet another important area under financial management. Capital structure refers to the mix or proportion of firm’s permanent long term financing represented by debt preference must ensure the maximization of wealth of shareholders so even the capital structure decision must be taken in the light of wealth maximization objectives. That particular mix of debt and equity which maximizes the value of the firm is known as optimum capital structure in simple word capital structure refers to the composition of capital.

Capital structure = Long term debts + Preference share capital + Equity share capital + Reserves.

In Radhe Renewable Energy Development Pvt. Ltd. The capital structure does not include any type of share capital. They have established their business on the basis of their own capital. The capital Structure of Radhe includes also debts.

33

MANAGEMENT OF FIXED ASSETS

Fixed assets are the tangible assets, which cannot be turned into cash on short period of time. Management of fixed assets is the most important decision in the field of finance for any organization and especially in RENEWABLE ENERGY industry, which has its most of investment in fixed assets.

Fixed asset is the asset which is used for long time period. These assets are not purchased for selling purpose but companies purchased it to use. Fixed assets include land, building, machinery, furniture etc… These all assets are purchased for long time period. To keep them for long time and to use it in best way company requires managing it and the process of managing them is called Management of Fixed Assets.

Radhe Renewable Energy Development Pvt. Ltd. Adopt capital budgeting method for manage fixed assets. Capital budgeting of the company is done by chartered accountant with help of chairman. They include following three points in capital budgeting method.

 Forecasting expenditure  Estimating available funds  Selection of project

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MANAGEMENT OF WORKING CAPITAL
“Working capital, some times it called as net working capital. It represented by the excess of current assets over current liabilities and identifies the liquid portion of total enterprise capital, which constitutes the margin of buffer for maturing obligation within the ordinary operating cycle of business.” Working capital is most important part of any business unit. These should be enough working capital in business. Generally working capital is considered as different between current assets and current liabilities. There are some sources of working capital management, which can be explained as under:

Long Term Working Capital:
The long-term working capital requirements include the initial

working capital and the regular working capital. The investment in the regular working capital is almost of the permanent nature and requires long term funds. Various sources for providing log term working capital requirements are summarized as follows:  Issue of Shares  Issue of debentures  Retained profits  Sale of fixed assets  Security from employees and from customers  Term loans

35

 Short Term Working Capital:
Short-term requirements of working capital involve financing of day-to-day business operations. Normally, the duration of such requirement does not exceed a year. The sources of short term working capital or seasonal working capital may be classified into two heads, (a) Internal, and (b) External.
 INTERNAL SOURCES: Under this category, the sources of

working capital are tapped from within. The main internal sources are: • • • Depreciation Funds Provision For Taxation Accrued Expenses

 EXTERNAL

SOURCES:

An

external

source

means

the

sources providing finances for company’s working capital other than those of internal sources. These may be enumerated as below: • • • • • • • Normal Trade Credit Credit papers Bank Credit Customer’s Credit Public Deposits Loans From Managing Director Or Directors Government Assistance

36

Now, if we talk about Radhe Renewable Energy development Pvt. Ltd. They are using Retained Profits, Term loans, and Sale of fixed assets as a LONG TERM WORKING CAPITAL SOURCES and Depreciation funds, bank credit, Loans from directors and managing directors as a SHORT TERM WORKING CAPITAL SOURCES.

RECEIVABLE MANAGEMENT

In the present competitive scenario it is necessary for any type of companies to provide credit facility to their regular customers to increase sales and to meet competition. But it is also essential to receive the bills as speedily as possible. Receivables are a direct result of credit sales. Credit sales id resorted to by a firm to push up its sales which ultimately result in pushing up the profits earned by the firm. At the same time selling goods on credit, results in blocking of funds in accounts receivable. Radhe Renewable Energy Development Pvt. Ltd. Takes some part of money in advance at the time of receiving order and rest of the part is collected at the time of delivery. They also provide 30 days credit to its regular customer and also get 45 to 50 days credit from suppliers.

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INVENTORY MANAGEMENT
Primarily executives in production, purchasing and marketing department take decisions relating to inventories. Usually purchasing shapes Raw material policies & production department, work in progress is influenced by decision of production department and the production & marketing department executives shape finished goods policies. The finance manager has the responsibility to ensure that inventories are properly monitored and controlled. Inventories constitute a major element of working capital. It is, therefore important that investment in inventory is properly controlled, Inventory management covers a large number of problems including fixation of minimum and maximum levels determining the size of inventory to be carried, deciding about the issues, receipts and inspection procedures, determining the economic order quantity, proper storage facilities, keeping check over obsolescence and ensuring control over movement of inventories. Risk and Costs associated with Inventory: Risk in Inventory: Mainly there are three types of risks involved in Inventory Management, (1) Price decline (2) Product deterioration, and (3) Obsolescence. Costs in Inventory:

38

Costs involved in inventory are, (1) Material Cost, (2) Ordering Cost (3) Purchasing (4) Transportation and Inspection (5) Accounting (6) Setup costs. In Radhe Renewable Energy Development Pvt. Ltd. production is order base, so firm determines the working capital accordingly and tries to utilize optimum level for raw material and parts of plant.

MANAGEMENT OF CASH
Cash is the most important factor in financial management. It is also the most important current assets for the operations of the business. As because cash in limited in every enterprise and it cannot be raised as and when one likes it. Therefore it is desirable and available cash much be managed properly. Even for finance manager, the Cash Management is the most important function. It is the duty of the finance manager to provide adequate cash to each of the units. For the survival of the business it is absolutely essential that there should be adequate cash. It is the duty of finance manager to have liquidity at all parts of the organization while managing cash. On the other hand, he has to ensure that there are no funds blocked in idle cash. In Radhe Renewable Energy Development Pvt. Ltd. All the cash budgeting process handle by CA. they keep these records by preparing cash budget. Moreover all the bank transactions are also maintain day to day.

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4.HUMAN RESOURCE DEPARTMEN T

40

INDEX

NO.

PARTICULAR

PAGE NO.

1. 2. 3. 4. 5.

INTRODUCTION ORGANIZATION STRUCTURE TIME KEEPING SYSTEM RECRUITMENT AND SELECTION WAGE AND SALARY

41 42 43 44 46

41

6. 7. 8.

TRAINING AND DEVELOPMENT PERFORMANCE APPRISAL EMPLOYEE WELFARE

47 49 50

42

INTRODUCTION
In business each and every activity is done by man. Manpower is most important power in any organization. It is necessary to use manpower in such a way so that the maximum outcome can be obtained. The need of personnel management in an organization is to get maximum output.

“Personnel management is planning, organizing, directing and controlling of recruitment, development, compensation, integration, maintenance and separations of human resources to the end that individual, organizational and social objectives are accomplish.”

-Flippo

In the personnel management, man has to play a very important and challenging job. No two persons are similar in mental abilities, tradition, behavior, and sentiments etc… Though they have to work together by adjusting above things to achieve an organizational goal and that is called an organization.

43

ORGANISATION STRUCTURE

H. R. MANAGER

Assistant

Clerk

Receptionist

Time kipper

44

TIME KEEPING SYSTEM

It is often said that, “Time and Tide waits for no one”. Time management is the most important factor for any organization. If you see flash backs of those organizations who succeed, you will find that only those organizations succeed whose time management was brilliant. Now, let’s talk about Time keeping system in the organizations. What is the Time keeping system? Time keeping system in the organization refers to the Working Hours during which all the workers, employees and even top persons of the organization including Board of Directors, Managers Etc… are gathered and work for the common goal. In Radhe Renewable Energy Development Pvt. Ltd. people of all levels respect and give more importance to the Time Management. And they keep separate registers for the purpose of Time keeping. Time Keeping System of Radhe Renewable Energy Development Pvt. Ltd. is as under:

SHIFT TIME OFF DAY LUNCH BREAK

9:00 am to 7:00 pm WEDNESDAY 1 hour 30 minutes

45

RECRUITMENT AND SELECTION

 RECRUITMENT

Recruitment can be actually defined as “The generation of the application for specific post”. Thus it is a searching of prospective candidates, a process of getting potential employees who are willing to apply for the job in the organization.

“Recruitment is the process of searching for prospective employees and stimulating them to apply for job in the organization”.

 There are main two sources for recruitment. • • Internal sources External sources

Radhe Renewable Energy Development Pvt. Ltd. has adopted both types of sources for recruitment of the person. Radhe is concern with heavy machines. So it requires both Skilled and Unskilled workers. For unskilled workers, they use internal sources. They recruit unskilled workers on reference of current or previous workers and for skilled workers and official staff, they use external sources. They give advertisement in news papers and recruit employees.

46

 SELECTION
Selection is the process by which qualified personnel can be chosen from the applications which have been offered to the candidates for the job. Generally the selection procedure is managed by the HR Department of a particular organization and they choose candidates who have some skills for a particular job and then they place right candidate at the right place and at the right time.

Radhe Renewable Energy Development Pvt. Ltd. Following the selection procedure which is stated below:

Preliminary interview

Application form

Employee test

Interview

Reference check

Appointment

Placement

47

WAGES AND SALARY

Wages and salary administration refers to the establishments and implementation of sound policy and practical of employee’s compensation so that the satisfaction of employees and employers is maximized.

Wages and salaries are reward of work for every employee. Wages and salary should be rational and enough for employee’s work.

Basic purpose of wages and salary administration is to establish and maintain effective wage and salary structure. Proper and regular wages and salary helps to avoid industrial disputes, and increase moral of worker and efficiency of worker.

In Radhe Renewable Energy Development Pvt. Ltd. All the labors and employee are given wage and salary at the end of month. Moreover they also provide different allowances and bonus facilities. On overtime hours they are giving double pay to their workers and employees.

48

TRAINING AND DEVELOPMENT

“Human resources are valuable assets. They should be preserve, maintain & utilize properly. Training means a process by which the aptitude, skill, and ability of a person to perform a specific job can increase”. J.R.D. TATA

“Development is the long-term educational procedure; utilize the systematic and organized procedure by which managerial personnel can learn conceptual & theoretical knowledge for the general purpose.”

There are many workers work in the organization. Some of them are skilled and some of them are unskilled. Hence, company has to give them special training, practical knowledge etc. Training and Development is necessary to know about the working conditions and techniques of the company.

Radhe Renewable Energy Development Pvt. Ltd. gives training to worker by two methods:

 On the job training  Off the job training

49

 On The Job Training: Through this method, the company provides training to workers by placing them with some of the experienced persons for practical knowledge.

 Off The Job Training: Through this method, the company provides training to office staff by arranging lecture, conference or case study in factory premises or out of factory premise.

In

Radhe

Renewable

Energy

Development

Pvt.

Ltd.

they

arrange seminars on following.

 Stress management  Time management  Motivational  Mind power

50

PERFORMANCE APPRISAL

Performance Appraisal is a continuous process whereby each employee’s performance is to be assessed and systematically reviewed by his superiors and guidance given to the employees to overcome in the short period and increase his effectiveness in the job. The system is quite equal in various administrative decisions as selection, training, promotion, transfer, increment, etc. by this way the organization can make the best use of its manpower.

Purpose of Performance Appraisal at RADHE
 Evaluation of Performance of work assigned.  Plan for training & development need.  Determined suitability for promotion  Recommendation for salary review.  To serve as a controlling/measure.

51

EMPLOYEE WELFARE

Human resource is the valuable assets of any organization. Employee will work hard only when the employee are treated properly and taken care by the management. The management of Radhe Renewable Energy Development Pvt. Ltd. provides many benefits to the employees which are as under.

 Medical Facilities:

Radhe Renewable Energy Development Pvt. Ltd. Has Tie up with one private hospital and when any employee is sick and injured, goes to hospital and gets the necessary treatment.

In case of accident, the company pays the full expenditure, incurred for the treatment of workers. If the accident was occurred within the organization, while worker was performing duty, the workers will get salary too for the days of rest advised by the doctors.

 Leave facility:
 Festival Leave: All the employees and staff get festival leave.  Sick Leave: The unit grants sick leave to the employees. He can take leave for 20 days and time during a year.
 Casual Leave: Radhe procure 1 day as a casual leave.

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53

Canteens Facility:

Canteens facility is provided to office staff people.

Three time tea provided for all the worker per day.

 Other Facility:
 Education facility to employee family  Entertainment Facility

 Festival celebration  Tour  Yoga classes

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1. MARKETIN G DEPARTMEN T

55

INDEX

NO.

PARTICULAR

PAGE NO.

1. 2. 3. 4. 5.

INTRODUCTION ORGANIZATION STRUCTURE COMPETITION MARKETING RESEARCH MARKET SEGMENTATION, TARGETING, AND POSITIONING PRICING POLICY SALES PROMOTION DISTRIBUTION CHANNEL

54 55 56 57 59

6. 7. 8.

62 64 66

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INTRODUCTION

Marketing is the core part of any organization. Without marketing company cannot sell their product in the market very easily. Generally, marketing includes needs, wants, interests, tastes, preferences etc… There is a simple rule which marketing follows that give only those things which consumer wants. In today’s world customers are called “KING OF THE MARKET”. If you will not serve them what they want, you will be thrown out of the market.

From the above paragraph we can say that, “Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating value and exchanging products with others.”

Since the marketing is the most important and core concept, Radhe Renewable Energy Pvt. Ltd. work by keeping in mind this concept. They take care about the customer’s needs and wants while delivering product to the customer.

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ORGANISATION STRUCTURE

MARKETING MANAGER

Sales coordinator

Communication coordinator

Web Marketing executive

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COMPETITION

“COMPETITION LEADS COMPANY TOWARDS THE SUCCESS” Competition plays a crucial role in any type of businesses. Competitors are one of the company’s stakeholders. The main threat of any new company is the threat of entry while enter into new market because of existing competitors. The challenge which companies have to face during its entry into the new market is to make their image on the customer’s mind and make them aware about their product.

Now let’s just imagine the market without competition. If there is no competition, the company cannot know about their ability, qualities, and also limitations. Companies will work without enjoy and only in one way i.e. monotonously, if there is not any competition.

COMPETITORS OF RADHE
While company entered into the business of Renewable Energy, at that time the concept of Renewable Energy was new for all. At that time, the company was not facing any type of competition, but now when it is one of the best in the Renewable Energy it is also facing competition.

The main competitors of RADHE are: − JAY KHODIYAR RENEWABLE ENERGY DEVELOPMENT − ANKUR SCIENTIFIC Pvt. Ltd.

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MARKETING RESEARCH
Marketing research is essential from the viewpoint of knowing the consumer needs and wants, and to satisfy them.

MARKETING RESEARCH Refers to,” The systematic gathering, recording, and analyzing of data about problems relating to the marketing of goods and services.”

MARKETING RESEARCH is a formal communication link with the environment to provide accurate and useful information for better decision making.

The critical task of the Marketing Manager is DECISION MAKING. Marketing Research helps by providing good information to help in decision making.

The information gathered during Marketing Research can help:  Develop sales forecasts  Design new products, based on customer opinion  Create attractive packaging  Guide advertising plans

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MARKETING RESEARCH IN RADHE

Radhe Renewable Energy Development Pvt. Ltd. is doing marketing research on continuous bases and applies following marketing research process which includes:

1. 2. 3. 4. 5. 6. 7.

Define the Research Problem Determine Research Design and Data Sources Develop Sample Design and Sample Size Develop Measurement Instruments Collect and Prepare Data Analyze and Interpret Data Communicate Results

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MARKET SEGMENTATION, TARGETING AND POSITIONING

MARKET SEGMENTATION :
“Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes”.  BASES FOR SEGMENTING CONSUMER MARKET:

Behavioral Segmentation: Segments based on actual behavior or product usage

Demographic Segmentation Segments based on demographic factors (e.g., gender, age,

income, education, etc.) • Psychographic Segmentation Segments based on state-of-mind issues (e.g., motives, attitudes, opinions, values, lifestyles, interests, personality, etc.) • Geographic Segmentation Segments based on geographic location

 BASES FOR SEGMENTING BUSINESS MARKET:

Type of Organization

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• • • •

Organizational Characteristics Benefits Sought or Buying Processes Personal and Psychological Relationship Intensity

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 LEVELS OF MARKET SEGMENTATION:

MARKET TARGETING:
“Market Targeting refers to choose the specific segment toward which a firm directs its market efforts”.

 FIVE BASIC STRATEGIES FOR TARGET MARKET SELECTION: • • Single Segment Targeting Selective Targeting

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• • •

Mass Market Targeting Product Specialization Market Specialization

 MARKET POSITIONING:
“Market positioning refers to the place which the product occupies in consumers’ minds relative to competing products”.  POSITIONING STRATEGIES:

• • • • •

Identifying possible competitive advantages Choosing the right competitive advantage Selecting an overall positioning strategy Developing a positioning statement Communicating the chosen position

SEGMENTATION, TARGETING, AND POSITIONING IN RADHE

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RADHE RENEWABLE ENERGY DEVELOPMENT Pvt. Ltd. possess more than 60% stake of Renewable Energy’s market. And RADHE mostly provide their products to the business customers. RADHE RENEWABLE ENERGY DEVELOPMENT Pvt. Ltd. segment products according to their customer’s needs and wants. After segmenting products according to customer’s needs and wants, they target customers on the basis of segmentation and then they sell their products to the customers. At last when targeted customers purchase their product, the process is completed by making positive impact on customer’s mind.

In the time of their foundation they used to do mass marketing, but now with the change of time they change their marketing style from mass marketing to target marketing. And they got more benefit from target marketing.

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PRICING POLICIES
In general, pricing refers to cost + profit. Price is the only element in the marketing mix that brings in the revenues. All the rest are costs. Deciding the price of any product or service depends upon the characteristics of that particular product or service.

 Pricing policies includes following things:
 Selecting the pricing objective • •

Survival Maximum current profit Maximum market share – penetration pricing Maximum market skimming Product quality leadership

• •

 Determining the Demand: • Price sensitivity – – – – – – – – – Unique value effect Substitute awareness Difficult comparison End benefit Total expenditure Shared cost Sunk investment Price – quality Inventory effect

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Price elasticity of demand –

This determines the changes in demand with unit change If there is little or no change in demand, it is said to be If there is significant change in demand, then it is said to

in price price inelastic.

be price elastic  Estimating Cost: • • • • • • • • • • • Fixed costs Variable costs Learning curve Activity based costing Target costing

 Pricing Methods: Markup pricing Target return pricing Perceived value pricing Value pricing Going rate pricing Sealed bid pricing

 Set Final Price

PRICES IN RADHE
In RADHE, as they are providing their product according to the customer’s needs and wants, the prices are not fixed for any product. They can estimate the price of the product only after receiving the order from the customer. It is impossible for those companies, who manufacture big plants, to set standard prices.

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SALES PROMOTION

“Sales Promotion is a Marketing Discipline that Utilizes a Variety of Incentive Techniques to Structure Sales-Related Programs Targeted to Consumers, Trade, and/or Sales Levels that Generate a Specific, Measurable Action or Response for a Product or Service.”  Reasons for the Growth of Sales Promotion:  Sales Managers are Under Great Pressure to Produce Results Quickly.
 Sales Promotion Strategies Target Consumer, Trade, and The Sales

Force.
 Cost for Results In This Industry Are Relatively Low.  Assessment of Sales Promotion is relatively easy.

.  Objectives of Consumer-Oriented Sales Promotion:  Obtaining trial and repurchase.  Increasing consumption of an established brand.  Defending current customers.  Targeting a specific market.  Enhancing advertising and marketing efforts.

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SALES PROMOTION OF RADHE

If we talk about sales promotion in RADHE, they use to promote their product by the way of e-mail, magazines, news-papers, posters etc… Though the demand for their products is always high, they are giving advertisement to maintain their reputation in the market. As we discussed above that their stake in renewable energy’s market is above 60%, they promote their products to reach to the each and every customers. They also use exhibition, shows, demonstration, free sample etc… to promote their products. Radhe Renewable Energy Development Pvt. Ltd. Appoint a public relation officer to get an advantage of public relation. They make the public relation by using following ways.  Seminars  Celebrating environment day  Presentations  Articles on renewable energy  Publishing Message on-‘SAVE ENVIRONMENT’

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DISTRIBUTION CHANNEL

 What is a Marketing Distribution Channel? “Marketing Distribution Channel is a set of interdependent organizations involved in the process of making a product or service available for use or consumption”.  Advantages of a distribution system  Key external resource  Takes years to build  Significant corporate commitment to a large no. of firms  Commitment to a set of policies that nourishes long term relationships

DISTRIBUTION CHANNEL IN RADHE RADHE RENEWABLE ENERGY DEVELOPMENT Pvt. Ltd. follows a very fast distribution channel. There are four levels of marketing channels: 0 – Level Channel 1 – Level Channel 2 – Level Channel 3 – Level Channel

In Radhe Renewable Energy Development Pvt. Ltd there is ‘0’ level distribution channel.

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SWOT ANALYSIS

 STRENGTHS

• • • • • • • • • • •

Well-established workshop. Experienced Engineers under excellent supervision. Intelligent technicians and energetic team. Expert AutoCAD drawing Engineers. Own research and development center. Master technocrat advisers for critical solutions. Prompt after sales services. Quick delivery system (machinery & parts) Customer care attitude and fast proper resulting approach. Design, Development & Simulation facilities All types of fuels testing facility.

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Quality products.

 WEAKNESS

Workers are not motivated at that level which company wants in comparison with its growth. Though HR manager is trying his best behind workers, still workers should be motivated more.

The unit is very much soft in time kipping system. Though they make it more strictly, still they avoid taking steps against employee who ignores the rule of time keeping system.

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 OPPORTUNITIES

As

“Radhe

Renewable

Energy

Development”

enjoys

monopoly in Indian market, they can expand their business in other countries by increasing exports.

Radhe has own R & D department so they can increase their sales by researching more and more.

In Renewable Energy sector Radhe has more than 60% stake still they should try to increase its market share.

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 THREATS

A high price in comparison with their competitors is a main threat of the company. It may result in losing the market share.

Other threats are its competitors,
− JAY KHODIYAR RENEWABLE ENERGY DEVELOPMENT

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ANKUR SCIENTIFIC Pvt. Ltd.

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REVIEWS AND FINDINGS

My visit to Radhe Renewable Energy Development Pvt. Ltd. has become the one memorable thing as well as useful also. I never forget it and I really feel that Radhe Renewable Energy Development Pvt. Ltd. is the NO 1 company in Energy sector in India. The training helped me a lot to get the practical knowledge of the organization. Every people, peon to manager, helped me to know the company and also helped in preparing the project by providing sufficient information. It was a nice experience and I’ll never forget it.

Radhe started their business in 1992 with very less capital and today it is working as a Private limited company as a market leader of Energy Sector. From the study of the company Radhe Renewable Energy Development Pvt. Ltd. we can say that the future of the company is bright. If they’ll continue to provide best facilities to the consumers, the consumers can be easily attracted towards the company & they will able to get additional market share of Energy sector.

So here we can say that Radhe Renewable Energy Development Pvt. Ltd. is an enterprise which expanded very well. If we see the success story of Radhe, we can know that what they achieved and how they achieved and it also describes their efforts.

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CONCLUSION

After visiting Radhe Renewable Energy Development Pvt. Ltd. I feel very glad that I had been part of it for some time. This visit gave me much practical knowledge and a very good experience.

The unit is also enquired with the latest technologies and modern machines. The staff and workers are also well organized and co-operative.

Looking to the unit’s properly and orderly management, I would like to give my best wishes for each and every step they take for expansion and for attaining a bright future.

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BIBLIOGRAPHY

 Reference Books:
 Philip Kotler, Marketing Management  Ashwathappa, Human Resource Management  I M Pandey, Khan & jain, Prasanna Chandra, Financial Management  Ashwathappa, Operation Management

 Websites:
 www.radhegroup.com  www.marketingteacher.com  www.scribd.com  www.mbaclubindia.com  www.caclubindia.com

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