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Prepared by

Devariya Tejas N.

Shree V.J. Modha College of I.T. & Management, Porbandar

Academic Year

S.Y B.B.A. (SEM.-4)

Enrollment No:010001142098
Title page

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I, the undersigned, Mr. Tejas N.Devariya, the, the student of

S.Y.BBA of shri V, j, Modha College Porbandar. Hereby declare

that the project work presented in this report is my own work
and has been carried out under the supervision of panel of
Prof.Bhargav Radiya & Chotai Chandni

This work has not been previously submitted to

any other university for any examination.
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This is an accepted fact that each and every work has two
aspects and this universal truth is also applicable so far as education is
concerned, it also has two aspects one is theoretical and another is practical.
Theoretical knowledge with practical experience is must for every student of
Business Administration.
After looking to the importance of practical study ,Saurashtra
University outlined the draft S.Y. BBA Program under which the students are
required to visit ant one industry for 10 days to acquire some practical

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I have visited HATHI CEMENT LTD located at Ranavav I

visited the company onto
.I collected general information
regarding personnel, marketing, production and financial of management.
I hope that report is in its present form would better serve the
needed enriching practical knowledge at S.Y. BBA level


I am TEJAS DEVARIYA, A Student of S.Y. B.B.A highly thankful to the management and
the staff of Hathi Cement Ltd. I am especially thankful to Mrs. (Director of the operation)
for helping me in my practical studies. In addition to following me details which were very
useful in preparing this report.
I am really thankful to our shri V.j.Modha college of IT Professor in change prof.for the
encouragement and the college staff for providing us all the facilities for making the visit
more learning oriented.

Date:Page No-



The Mehta Group World Wide

The Mehta group, in spirit is truly an international Indian. The Mehta

group today has a multinational presence and its business cover a wide
spectrum. Its activities span all over the world with manufacturing activities in
sugar, tea, packing, international trade, cement and building materials, electric
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cables, power capabilities in consultancy, management and financial services


The Mehta group today is poised on the threshold of an exciting new

phase of its evolution, ready to grasp the opportunities offered by the recently
globalised economy.

The founder of Mehta group was lateShree NanjiKalidas Mehta whose

courage and tenacity prevails even today. The main intension of the Mehta
group to help convert that potential into reality.

The Mehta Group - India



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Sr. No.



History & Development

Size Of The Unit


Organization Structure
Contribution Of the unit To
the Industry

Time Keeping System

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History of the unit means the past performance of the industry.

Saurashtra Cement Ltd. The flagship company of the Mehta group was
set up on 11th June, 1956. SCL obtained license at 9th January 1957 to
commence the business under the provision of the company act 1956. The
actual production was started in1959.
Saurashtra Cement Ltd. Was originally promoted by LATE SHREE
NANJI KALIDAS MEHTA in 1956. On his expiry on1969, SHREE
KHIMJIBHAI MEHTA took over the reigns as chairman of SCL. As he was
keeping indifferent health, SHREE MAHENDRA N. MEHTA took over as
chairman of SCL in early 1983.
Company has recognized as an export house by the Government of India
and also honored. The company also got the award for excellence in
productivity, quality, innovation and management. The company has been
certified for ISO 9002 from RWTUVGermany. There are so many
achievements of company, which create HISTORY.

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Development of the Unit

Saurashtra Cement Ltd. Was established by Mehta Group. Mehta
group was and is of industrialist nature and may in future. By efficient efforts of
Mehta group, SCL is progressed up and up.
Saurashtra Cement Ltd. Produces ordinary and Pozzolana Portland
cement. As we all know that cement is a basic need for any kind of construction
activity. The companys actual production started in 1959. At that time installed
capacity was 600 tons per day. Because of the high potential and actual demand
of cement, SCL had increased their installed capacity is 4500 tons per day. This
is a great development of the unit.
Saurashtra Cement Ltd. Is the classic example of how the gray caters to
the specific needs of its economic environments in this case providing with an
excellent blue print of how a sick plant can be rapidly earned around providing
high quality raw material for building up India industrial infrastructure and
bringing in valuable foreign exchange which is the countrys No. 1 priority
Initially, the company was more of lab our intensive but after the
modernization and installation of new technical machines, it has put the
company to the foot front.
A major expansion and modernization project is now under way, which
increase capacity, reduce energy consumption, improve product Quality and
significantly control pollution levels by incorporating Bag house in the system.

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In the consideration of the size of the unit, there are only three different types of
Saurashtra Cement Ltd has set up itself as a Large Scale Industry. As
a general point of view, large-scale industry based upon a few criteria viz. on
the amount of investment in the industry or on the number of person employed
or on the number of person employed or on the production of the company etc.
As the investment point of view, the industry which has share
capital more than Rs. 5 cores is the large scale industry. In other word the
amount of investment invested by the owners is must be more than Rs. 5 cores.
The investment of SCL is lochs; hence id is more than 5 cores.

Therefore, SCL is a Large Scale Industry.

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There are so many of Business Organization. SCL is itself a
PUBLIC LIMITED COMPANY. The company is only indirectly defined in
the Act Sec 3(i) (ii) states Public Limited Company means a company which is
not a private company.

A public company may be said to be an association consisting of not

less than 7 members registered under the companies act 1956 and which is not a
private company within the meaning of the act. Such company may invite the
general public to subscriber for any shares in or debentures of the company. The
limit of 50 members is also not applicable to public company. The shares of
such company are freely transferable after some necessary transaction. It should
be noted that public company must add the word LIMITED at the end of its

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Organization is a group of people working
together cooperatively under authority towards achieving goals
and objectives that mutually benefits the organization.
Company creates suitable organization structure, which is
suitable for it.
SCL is a large-scale industry. So Line and Staf
organization is suitable for it. Therefore, SCL follows Line and
Staf organization structure.
Line and Staf organization is an ideal combination of staf
efectiveness significantly.
Line and Staf organization refers to an organization
pattern in which individual specialist and group of specialist
advice line officer for the special aspect of their activity.
In SCL, line managers are guided by the qualified staf


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Now a day so many small, medium and large-scale cement

manufacturing units are scattered all over the country. SCL is one of
the leading companies of cement in India.
SCLs contribution towards the industry is as follows.
1-Assists Construction Industry:-

Since, cement is a basic raw material in the construction in

the activities; it is highly used in construction of buildings, bridges,
dams, houses, roads etc. SCL produces around 17% of total cement
production of India. Thus, by providing better quality and bulk
quantity of cement, SCL tries its best to reduce the shortage of
2-Earns Foreign Exchange:-

SCL exports around 25% to 35% of its total production in

different countries such as Sri-Lanka, Bangladesh, Korea, and
Malaysia etc. Thus, this enables the unit to earn precious foreign
exchange for the country.

5Time Keeping Systems

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Time keeping system is one of the important function of an

organisation. It is an important thing that for each and every employee working
hours should be fixed. And as per the government rules against exploitation of
workers, a company does not forced to get worked done through any employee
more than 8 hours in a day. To maintain this rule, company must determine its
own simple time keeping system by which company gets more benefits and it
can successfully and effectively utilise available manpower.

So far as SCL is concerned, it is a continues process i.e. it carries 24

hours unbroken manufacturing process and it requires big arrangement of time
keeping system. SCLs time keeping system is classified into two parts.

Time Keeping System for Blue Collared Employees


First Shift


04:00 a.m. To 12:00 p.m.

Second Shift

12:00 p.m.

To 08:00 a.m.

Third Shift

08:00 p.m.

To 04:00 a.m.

During all these three shifts working period, workers get half an hour
as a recess.

Time Keeping System for White Collared Employees

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For white-collared employees of the managerial levels company

arranged general shift.

General Shift :-

08:00 a.m. To 05:00 p.m.

During this period, white collared employees get an hour as a recess.

SCLs whole time keeping system is maintained by the computerized

punching machine. Under this system each and every employee has given a
card. Each and every employee must get their card punched by punching
machine at each and every time of his entry or exit. Punching machine records
time at which an employee comes on the service and leaves from service.

By installing punching card system, employees and employers are

truly benefited i.e. Benefit to employees is employer could not exploit them by
forcing to work more hours than service hours. Benefit to employer is he can
check the fulfiltime of the service hours by each and every employee

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Sr. No.



Organization Chart

Raw Material Availability

Types of Product

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Machineries Used
Production Process

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1 - Introduction
The PRODUCTION FUNCTION of a business is
concerned with the creation of a product or a service required
to satisfy customers needs, want and desires. Production
means creation of utilities and covers all the activities of
procurement, allocation and utilization of resources such as
labor, energy, materials, equipment, machinery etc.
Production Department is one of the most important parts
of an enterprise, which is responsible for the actual
transportation of materials into finished production. It deals
with man, machine, organization, to accomplish both
productivity and satisfaction the desirable and results.
Thus, PRODUCTION means to produce goods in require
quantity at the required time and with the required quality in
the most economical manne

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Production department is one of the most important

departments of an enterprise, which is responsible for the actual transformation
of material into finished products.
As concerned to SCL, the entire production activity is done under
supreme command of General Manager of production department. If we go
from top to bottom then there is a large work force, which includes supervisor
engineers, foremen, fitters etc.
The organization chart of the production department SCL is as follows.

General Manager
Assistant General Manager

(Quality Control)




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Production System of SCL




ng Process






3- Raw Material Availability

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RAW MATERIAL is the starting point of producing a product. Thus,

raw materials are required to produce final products. As concerned to SCL, for
the production of Portland cement, they use various types of raw materials as;


c. Phosphors
For the purpose of producing the best quality of cement, it is very
necessary that raw material is available in huge quantity and with the best
quality at reasonable rate.
The SCL collects raw material from various places, which are as under.


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5-Gypsum:a- MARINE
1-SH Nathji TRADE CO., PBR

4- Types of Product
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Every enterprise may produce a product or service. Generally, we may

have mixture of techniques drawn from different types of production to obtain
most effective result. Generally, for a special purpose, the firm is to be produced
a certain product.
As concerned to SCL, it manufactures only one product i.e. Portland
cement. SCL produces high strength cement for exporting.

The number of product (cement) manufactured by SCL are as follows:


53 Grade Cement
43 Grade Cement

5- Machineries Used
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The modern age can be termed as MACHINE AGE because the use of
machine has become inevitable in the ultimate production of cement. As
concerned to SCL, they use various types of machine for the production of

1-Lime Stone Crusher:a.



USE: - Crusher crushes the limestone and other raw

Material like marl and clay into approx size of
1:1 and even less inches.

2-tacker:USE: - This imported machine is used to add necessary

Raw material into crushed materials as prescribed
By quality department.

3-Lime Stone Reclaimed:USE: - This machine used to spread the layers of limestone
And other corrective materials as per as the requisite
Of quality department.

4-Raw Mill:Page No-28

USE: - Raw mill is generally used to grind the various types

Of raw materials.

5-Raw Material Silo:A-BLENDING SILO:USE:-This machine is used for proper mixing of ground
Material so as the homogeneous can be received.
B-STORAGE SILO:USE:-The material which is perfectly mixed in blending
Silo is stored in storage silo.

6-Pre Heater:USE:-The stored material is pre heated by this machine.

7-Kiln:USE:-Heated material is entered in the kiln where coal
Firing is going on. Chemical reaction takes place
Inside the kiln.
8-Clincer Cooler:USE:-This machine is used for cooling down the hot

6- Production Process
Production process must operate to satisfy customer demands
particularly relating to mostly quality, time, quantity and price. The production
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process means to produce a certain product from raw materials to finished

goods. After the production process, the raw material and semi finished goods
convert in to finished goods.

As concerned to SCL, it produce only one product i.e. Portland cement.

SCL follows following steps to produce cement.

1-Mining :-

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Mining is the first and the starting point of the production of the cement.
Limestone is the main raw material, which is chemically called CaCo3, is
available in the form of hills. Company has its own mines from where it can
easily get limestone. First of all the quality of limestone is checked and once the
suitability is established, mining is done. Limestone will be taken out by
quarrying (drilling) and blending. Blasting is done using electric power passed
through explosive, which breaks limestone into form of boulders.

The material so recovered is transferred to the crusher.


The limestone craven out from Mines is generally in the form of

boulders. When the process of Crushing takes place. Here the boulders of
limestone are crushed into approximate sizes of one to one and half inches in
the crusher. This crusher is a revolving hammer type crusher, which crushes the
limestone into small pieces.

Likewise, marl, clay etc are also crushed to reduce their size. Then they
are transported to stacker by the means of a set of belt conveyors.

3-Raw Mix

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Reclining:After crushing material, it is transported to the stock pills having capacity

of 17000 to 18000 m.t. The layers of limestone and other corrective materials
are spread as per requirement of quality department to get targeted value. Once
the quality targets are achieved, pile is declared ready for reclamation.

Recliners starts reclaiming the material, which is transported to raw hill

hoppers through a set of belt conveyors.

Raw Mill :The small crushed limestone pieces are taken into limestone bin and the
second bin of clay is also installed with that limestone bin. As per the
requirement, the materials are controlled. Now the material is available for
further raw mill procedure. The raw mill is provided with grounding medias of
steel blades of various sizes from 45 mm to 90 mm diameters.
In the raw mill, small pieces of limestone, clay and other objective
materials are feed through a box feeder and grinded together. Weight feeding
ratios are set as per instruction of quality department.
During grinding the dust type of limestone powder is collected into
cyclone. From cyclone sight heavy powder is converted into blending silo,
electrostatic precipitator. And the heavy material is separated and it is
transferred to blending silo, the remaining unused dust is driven out by stack.

4- Storage & Belding

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The raw material, which enters into, the raw mill is grounded into the
fine powder and is transferred to blending silo. Here, air at different pressures
admitted from the bottom and received the homogeneous materials.

This grounded material after homogeneousing is transferred to storage

silo. After all these process the material goes into pre heater by phumatic


Pre Heating & Kiln:The raw material enters into preheating cyclone from storage. In first
stage, the material travels downward because of gravity and gain temperature
approximately 870 Celsius to 880 Celsius. At the last stage calciner fuel is
introduced and the process is called as per calcinations.

The prepared material enters in the kiln and travels towards the kiln
outlay and coal firing is taking place, also chemicals reaction takes place inside
kiln burning zone, between lime, silica and alumina.

The material gains temperature approximately 1300 Celsius to 1400

Celsius at burning zone and becomes clinker.

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Cooler:Because of heat of 1300 celsius to 1400 celsius the clinker becomes so

hot and hence it is entered into cooler and cooled down approximately
temperature to 200 celsius by cooling fans. The clinker movement in the cooler
is achieved by the movement of the clinker.

During cooling down this material the hot gas disposed from the material
and to utilise this hot gas for energy conservation, it is transferred to coal mill.
The dust so recovered in cooled is transferred to dust collection and useless gas
is driven out by stack.

6-Cement Mill
Clinker is half produced cement. The produced clinker is
fed to cement mills by overhead cranes and gypsum is fed to another hopper.
The quality control department fixes the ratio of gypsum and clinker.

The cement-grinding mill is also a ball mill and the grinding process is
same as the raw material. Grinding Iron balls are already available in the mills
and clinker is first crushed and then grounded due to impact and attribution.

As soon as this process is completed, the perfectly mixed and grounded

material is available and that is called CEMENT. Finally cement transferred to
cement silos through air sliders and bucket elevator and dispatched.

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Cement produced in cement mills is conveyed to to cement silos.

There are eight cement silos where different grades of cement are stored.
From the cement silos the cement is transported to hopers. There are four
packers, which are run depending upon requirements. Each packer consists of
twelve spouts and empty bags are fixed on the spout manually and it gets
weighted and sewed automatically. When the weight of cement reaches to
On an average 27 to 28 bags are filled and packed every minute, on
attainment on the belt conveyors and are ultimately carried upto the truck where
it is loaded and counted manually.

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Sr. No.


Organization Of Marketing Department

Product Planning

Market Segmentation

Market Segmentation

Pricing Policies

Channel Of Distribution

Sales Promotion


Marketing Research


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International Marketing

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1- Organization of Marketing Department

As we know that each company has its own marketing
department. Marketing organization is made up of people
activity, authority, responsibility and relationship for the
purpose of achieving marketing objects.
Marketing department has got most dynamic functions to
do, which needs marketing experts, enthusiastic sales
personnel, target oriented and motivate sales manager etc.
The organization chart of marketing
department of Saurashtra Cement Limited is as follows .

General Manager (Marketing)

Dy. Manager (Marketing)


Assistant Manager

Head Clerk



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2- Product Planning
Product planning is essential task of marketing
department because of it is based stone of the functions of marketing. In simple
words, product planning means deciding about the product in the present what
to do in the future in term of product items, utilities of the product, design of
product, price of the product, modification of present product etc. Thus, product
planning is essential in the present dynamic market situation.
Today, there is tough competition prevailing among the cement
manufactures. Thus, each manufacturer has to plan its product in such a way
that it own demand in the market.
In SCL, product planning is done keeping in view the demand as well as
supply factors.
If the company finds that the demand for cement is increasing than
automatically it increases the production and vice versa. However there are so
many other factors which are also considered while planning the product like
availability of raw material, availability of manpower electricity etc.
Laze and Carbine truly defines that Planning is looking ahead to where
we want to go and obstacles we are likely to encounter in doing it.

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3- Market Segmentation

Market segmentation represents an important recent

advancement on marketing thinking and strategy. The modern marketing is
customer oriented. So it is very necessary to have a clear picture of the
customers characteristics, which are not alike. Customers are may differ in
their wants, purchasing power, geographic locations, buying attitudes, tastes,
habits, nature, interest etc. So all the needs of a consumer cannot be satisfied
with the same product. Such selection of subject as a homogeneous gray is
called Market Segmentation
As viewed by WILLIAM J. STANTON, Market segmentation consists
of taking the total heterogeneous market for a product and dividing it into
several sub markets or segment, each of which tends to be homogeneous in full
significant aspects.
As concerned to SCL, the customers who require cement in bulk quantity
can buy Hathi Cement and those who want cement in small quantity can have
Chotu Hathi available in 1 kg., 5kgs. And 10kgs. Packs. Generally, builders use
Hathi Cement but sometimes small packs are also required for repairs so they
can go for the Chotu Hathi.

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As per quantity of the cement

Market of SCL is also segmented according to demand.









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4- Pricing Policies
The term price is used to mean the money of any product or
service. Price is an important aspect of marketing. As defined by an economist,
Price is the exchange value of a product or service always expressed in terms
of money. Thus, we can say that price is the agreement between sellers and
buyers concerning what each receives. Pricing is a very critical decision in
marketing management. The main objective of the firm, that is to earn a profit
very much depends upon the correct price decision.

In simple words, pricing decisions means decision of determining the

price of a product. The price of a product must be determined in such a matter
as to after a reasonable amount of profit to the manufacturer a reasonable
remuneration to middlemen and the maximum satisfaction to consumer.

The SCL has followed such pricing policy, which can promote its sales
considerably. While fixing the right price the company takes into account cost
of production, prevailing market trend pricing policy of competitors etc.

SCL has adopted flexible and reasonable pricing policy. At the end of
every month, directors of each zone, marketing officer meet together at the
marketing office. They check the suitability of the current price in the right of
current degree of competition; changes in demand, advertising and other
services etc. then they fix up their product price.

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5- Channel of Distribution
Channel of distribution means the proper way or proper path
through which the distribution performs the work of moving goods from
producers to consumers. As viewed by Richard Buskirk, Distribution
channels are system of economic instruction through which a producer of goods
delivers them in to the hands of their users. In other words, channel of
distribution is a route through which goods move from the place of production
to the place of consumption.

There are different channels of distribution, i.e. goods may be passed to

the consumers through wholesaler and retailer or only through retailers or only
through wholesalers or directly by producer to consumers. The producer may
choose the best channel of distribution, which is favorable for the company.

SCL has selected the following channel of distribution.





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6- Sales Promotion
Sales promotion is the step taken to increase the
quantum of sales of the product. In this competitive age, sales promotion is
necessary for boosting up the sales and contributes more market share. A vital
link between personal selling and advertising is represented by the function of
sales promotion. Sales promotion helps salesmen to do a better job of selling by
making advertising work more effectively. It is a vital function of modern
Nothing happens until somebody sells something. The sales promotion
activities help in promoting the sales of the concern effectively. It plays an
important role in todays competitive world.
SCL gives more weight age to sales promotion in comparison with other
similar companies. SCL is mostly concerned with dealers of cement, masons
and contractors. They are inspired by the company by giving following
They arrange dinner for contractors, dealers and masons
They conduct meeting with these persons and discuss about the quality,
changes in products as well as performance of cement sold by them.
SCL gives cash discount as well as quantity discount to their dealers and
SCL provides entertainment shows and invites contractors, dealers and
masons with their families.
SCL gives valuable items to them based on their sales performance.
For e.g. Mr. Hasubhai Jadav of Mahadev Cement Sales, Dhandhuka
receives two motorcycles from Mr. Anil Srivastava. He was awarded for
recording the highest sales for Hathi Cement in Ahmadabad.
At Rajkot district dealers receive gold coins based on their sales
In SCL, its dealers and customers are gifted valuable items. They are
gifted useful items like calendars, key chains, pens etc. as a part of sales
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7- Advertising
In this complex business world, no industry or company can survive
without advertisement. We have to believe that advertising is a form of mass
communication. The business needs the help of advertisement to make the
business prosperous. It is paid for by a seller or manufacturer who wants to
communicate about his product or services to his customers. The main role that
advertising does is that it promotes the sales and therefore it is also called
promotional activity.
The American Marketing Association has defined advertising as Any
paid form of non personnel presentation and promotion of goods, services or
ideas by an identified sponsor.
SCL advertise their product by the means like newspaper, wall paints, and
hoardings with effective slogan. To sand first in the market and increase
popularity SCL has adopted many advertising media.
The Hathi Utsav at Mahuva and Baroda saw important roads, cross roads
and kiosks decorated with banners. Cement shops belonging to dealers
and sub-dealers were also decked up.
SCL also advertise by distributing gifts to masons, contractors etc. i.e.
actual users of cement.
On the festival Navratri, Company distributes audiocassettes of Ras
Garba free of cost and in that cassette slogans are also recorded for
There are so many ways of advertising, which the company uses. The
company uses following media to advertise their product.

Wall Paintings
Audio Visual Advertising
Gift Articles

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8- Marketing Research
The American marketing Association has defined marketing research as
The gathering recording and analyzing of all facts about problem
relating to the transfer and sale of goods and services from producers to
Marketing research involves a study of consumer performances, habits
and attitudes. It helps us to decide how market operations should be directed.
It also involves an examination of trends, so that its findings indicate the
future pattern of the market and assist in shaping marketing policies.
In SCL, regular survey of dealers and customers are done to identity
the need and expectation of the customer to mark positive and negative points
of their marketing strategies and products. By this way, company comes to
know about the marketing problems and remedies of it.
International market:International marketing means trade activity, which crosses the
geographical boundary of a country. In the other words, when buying and
selling activity take place between two or more countries this is known as
international market. The firm buying refers to import and selling refers to
export in international market. The modern transport services have made
international trade speedier.
SCL exports its product to many foreign countries. Foreign purchases
never accept any fluctuations in the quality of cement. For export SCL has to
produce high strength cement. SCL export to,
Sri Lanka
Some countries of gulf

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9- International Marketing
International Marketing means trade activity, which crosses
the geographical boundary of a country. In the other words, when buying and
selling activity take place between two or more countries this is known as
International Marketing. The term buying refers to import and selling refers to
export in international market. The modern transport services have made
international trade more speedy.
SCL exports its products to many foreign countries. Foreign purchases
never accept any fluctuations in the quality of cement. For export SCL has to
produce high strength cement. SCL exports to.


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Page No-49

Sr. No.


Organization Of HRD

Recruitmrnt,Selection And Induction


Training And Management Development


Job Description

Page No.

Promotion And Transfer Policy

Wages And Salary Administration

ESI scheme

Provident Fund Scheme

Grievance Handling Procedure

1- Organization of HRD
Personnel department is an important part of any industry because it is
the department of human beings, without human beings no company can exist.
Personnel department is a clue between management and its labor force in any

Page No-50

organization. In other words personnel manager work as a bridge between the

top management and workers.
In SCL, its personnel department has developed very healthy and cordial
relationship between its management and its work force. The organization chart
of personnel department of SCL is as follows;

2- Recruitment, Selection and Induction Procedure

Page No-51

Recruitment has been regarded as the most important function of

personnel management. Recruitment is the first step in the employment process
which aims at developing and maintaining sufficient manpower resources upon
whom the organisation can depend when it need additional employees. As
viewed by FILLIPO. Recruitment is the discovering of potential applicants
for actual or anticipated organisational vacancies.

Sources of recruitment :In the general sense, Recruitment, Selection and induction all are very important
for any industry of firm.

A-Recruitment :-

There are mainly two types of Recruitments sources;


1-Internal sources :-

Internal sources are the most obvious sources. These include personnel
already on the pay roll of an organisation i.e. its present working force.
Page No-52

Whenever any person retired or any vacancy arises because of any

reason, company fills that place by promoting, transferring or demoting.
Company promotes employees on the basis of his degrees, performance,
discipline, seniority, job knowledge, personnel records etc.
By this way, company gets employees, who are well known about the
company and his work.
2-External sources :External sources of recruitment means company fills its vacancy by the
sources out side the organisation. External sources of Recruitment are as

Advertisement in Newspaper
Advertisement in Television
Advertisement in Radio
By consulting employment agencies
By making campus recruitment
By political recommendation
By employee recommendation
Through Labour Union
By gate hiring

SCL recruits employees by the following ways i.e. recruitment for top
level or middle level and recruitment of lower level, whenever SCL is in
need of employees, it takes into consideration the following methods.

Advertisement in Newspaper
Advertisement in Magazine
By consulting Employment Agencies
And when SCL is in need of lower level employees or blue-collared
employees, it takes into consideration the following methods.

Advertisement in local Newspaper

Page No-53

By Employee Recommendation
Through Labour Union
By Gate Hiring
Thus, recruitment is a linking activity together those with jobs and those
seeking jobs.
B-Selection :Selection is a deliberate effort of the organisation to select a fixed number
of personnel from a large number of applicants. It is the process of choosing the
individuals who possess the necessary skill, abilities and personality to
successfully fill specific jobs in the organisation. In short, Selection is
concerned with packing the right candidates from a pool of applicants.

There are so many techniques to select the employees. Selection process

of SCL is as follow;

Selection Process Of SCL :1-Application Blank :The application blank from is invariably used as one of the selection
tools. The applications are the starting point of the selection process, where
applications blanks are used, and the data becomes a part of the employees
Applications blank contains identifying information i.e. a family
background, date and place of birth, age, and information regarding education,
information regarding experience, expected salary and allowance and
information regarding community activities.

2-Employement Tests:-

Page No-54

An employment or a selection test is an instrument designed to measure

selected qualities and abilities of a prospective incumbent in terms of job
specifications. Psychological test assets natural abilities of the candidates.
Psychological tests are of various kinds.

As concerned to SCL, they use written test, group discussion etc. as

selection tools. Company conducts tests and by this way they are weeding out
unfit candidates.

3-Personnel Interview :After going through test, the successful candidates are interviewed.
Interview must be conducted in a friendly atmosphere and the candidate must be
made to feel at ease. In personnel interview, company collects certain
characteristics not possible in application blank i.e. characteristics like
quickness of reaction, manners, poise, appearance, sense of humor etc.
As concerned to SCL, in between personnel interview interviewers weed
out some candidates who are unfit for job and declare some of them are
successfully candidates.

4-Reference Checks :Reference checks serve as an important selection technique, if conducted

properly. The applicant is asked to mention the names and address of his former
employers and also two or three persons known but not related to him.
This way, the company investigates the candidates previous history,
character and behavior etc. After checking reference, suitable candidates are
sent to go for the physical examination.

5-Physical Examination :-

Page No-55

Candidates who have crossed the above hurdles are required to go for the
medical examination. This is very important because a person of poor health can
not work competently and the investment in him may go waste.
As concerned to SCL, it conducts physical examination to see that the
candidate is medically suited for the job or not.

6-Final Selection :If a candidate successfully overcomes all the above obstacle or tests given,
he would be declared selected. An appointment letter will be given to him
mentioning the terms of employment, pay scales, and post on which selected

C-Induction :Induction is a welcoming process, the idea is to welcome a newcomer,

make him feel at home and generate in him a feeling that his own job, however
small, is a meaningful and has a significance as a part of the total organisation.
As viewed by Billimorid, Induction is a technique by which a new employee
is rehabilitated into the changed surrounding and introduced to the practices,
policies and purposes of the organisation

Induction is the process to make the candidates well known about the
company. As concerned to SCL, they give the information about the
organisations history, objectives, philosophy polices, future development,
opportunities etc. Candidate is also introduced to his co-workers, subordinates
and supervisors. The personnel officer gives the information regarding his
duties, responsibilities and authorities according to companys rules and

3- Training and Management Development Programme

Page No-56

The natural of jobs in the industry are fast changing. New

methods and processes care being discovered everyday and the old techniques
are becoming obsolete. Thus, training becomes necessary not only for the new
entrants but also for the present employees.

Training :Training is defined as the act of increasing the knowledge and skill of an
employee for doing a particular job. Training implies activities that each
employees how to perform their present jobs better. According to DALE
YODER, Training is the process by which man power is filled for the
particular jobs it is to perform.
Training teaches employees required skills, knowledge or attitude and
helps them in improving their performance by improving new skills, new
techniques of doing the work and by improving their work habits.
As concerned to SCL, they give training to their employees. There are
two principal methods of employees training, which are used by SCL.



Page No-57

1-On The Job Training Method:On the job training method is suitable method is suitable for all levels of
personnel. The object of on the job training is to bring the employees to at least
a minimum acceptable standard of performance in the shortest possible time.

There are various methods of on the job training. The company uses the
methods like orientation training, job instruction, job rotation, coaching etc.

2-Off The Job Training Method :In this method, trainees have to leave their work place and devote their
time to the development objective.
The company uses the methods like lectures, audiovisual conferences,
discussion, case study, role playing etc.

Development Programme:Page No-58

The management development process ensures that the enterprise has the
effective managers it needs to accomplish its present and future requirements. It
seeks to improve the performance of existing managers providing them relevant
opportunities to grow and develop.

Management development is a systematic process of training and growth

by which managerial personnel gain and supply skills, knowledge, attitude and
insights to manage the work in their organisation effectively and efficiently.

Periodically, SCL conducts meetings and invite professional experts as

well as experts of the similar company to express their opinions and

In SCL, the company does provide better and professional management

development sources for all levels of staff members.

4- Job Description
Page No-59

Job description is a written is a statement of duties, responsibilities

and authorities of different job. It provides information about job i.e. what
employee has to do on the job, to whom he is responsible, to who he has to lead
or guide and what authority is given to him.

Job description is an important document, which is basically descriptive

in nature and certain statements of job analyses. It provides both organisational
as well as functional information. It defines the scope of job activities, major
responsibilities and positioning of the job in the organisation. It provide the
worker, analyst and supervisor with a clear idea of about the work must do to
meet the demand of the job.

At present SCL does not apply any job description system. When a
person joins the company, all the rules and regulations, his duties and
responsibilities are made clear to him, so that he can perform effectively his

5- Promotion and Transfer Policy

Page No-60

Promotion Policy:Opportunities for advancement in service are one of the best incentives an
organization can provide to its employees. Promotion is one of the best forms of
incentives, which generates a sense of loyalty to the organization. A promotion
takes place when an employee moves to a position higher than the one formally
occupies. Performance is a term, which covers a change and needs higher
responsibilities. It normally also means increased pay and better term and
condition of service, resulting into a higher status of rank.

In short, a promotion may be defined as an upward movement of an

employee in an organization to another job, which commands better pay, better
status or prestige and higher opportunities and responsibilities, better working
condition, hours of work and facilities etc.

SCL gives promotion on the basis of seniority, abilities, and educational

qualification, experience and also on the merits of the employees. Thus, SCL
mainly promotes on the basis of job knowledge and skills of employees.

Page No-61

Transfer Policy:-

Transfer is the process placing employees in positions where they are

likely to be more effective or where they are likely to get more job satisfaction.
A transfer is a horizontal or lateral movement of an employee from one job,
section, department, shift, plant or position

As concerned to SCL, in lower level transfer takes place to solve the

problems of employees i.e. if any employee wishes to transfer his shift and went
to another shift in which an employee also wishes to transfer his shift then SCL
transfer their shifts. Thus, there is an internal transfer.

When company finds well knowledge persons who are wrongly place din
controversy department then it transfers that employee to his knowledgeable

In SCL, we found that there is inter departmental transfer.

6- Wage and Salary Administration

Page No-62

There is a famous quotation that People do what they do to

satisfy some need. Before they do anything they look for a reward or pay off.
Wages and salary constitute the major factor in the economic and social life of
any community. Wages and salary is most important to an any industrial worker
because his standard of living and that of his family depends upon his earnings.
Wages and salaries are forms of compensation but they are quite different. The
term wage is defined as the remuneration paid to the annual basis. Thus, wages
and salaries play a vital role in an organisation because a satisfied worker is
just like an asset for a firm.

SCL gives the importance to wage and salary administration to arrange

well-satisfied wage and salary structure for its employees. For the evaluation
company has concentrated its attention on duties, responsibilities, experience
and necessity of work to determine wage and salary.

In SCL, some employees are working under the wage board provision.
Therefore, the unit provides wage according to this wage board policy. The
company provides salary as per the grade system like managerial grade, officer
grade supervisor grade etc. all employees get remuneration according to that

Thus, companys wage and salary system is enough competitive and


7- ESI Scheme
Page No-63

E.S.I. scheme means Employees State Insurance Scheme. In order

to provide sickness benefits to workers the Employees State Insurance Act was
passed in 1948. It is a social scheme, providing insurance when any type of
difficulty may comes to the employees. It is a scheme for the protection and
benefits of workers and their families. It covers all type of employees, i.e.
manual, clerical, supervisory and technical within certain wage level.

Under this act, some extra benefits are provided to employees like
maternity leave, medical leave, sick leave, disability compensation etc.

In our training we found that SCL has not adopted Employees Insurance
Scheme. SCL has adopted Group Gratuity Scheme. Group Gratuity Scheme
consists an insurance of the employees in a group.

8- Provident Fund Scheme

Page No-64

The act for employee provident fund was passed in 1952.

Under this act all employee have to contribute some percentage of his salary to
this fund, which accumulates amount in the employees account. This scheme is
said to be one of the compulsory saving scheme, which helps employee in
retired age. A special reserve fund was made for making the payment to
outgoing members.

The company is more conceals about its provident fund scheme, which
contributes by depositing the funds dues with the appropriate authority in
regular period. As per the rules and regulations, the company deducts 12% from
the salary of employees and adds 12% and this is credited to concerned persons

As contributory, by both the parties, employees and employers contribute

in the provident funds scheme.

9- Grievance Handling Produce

Page No-65

In this industrial age, it is difficult to find a company or

an industrial concern which functions absolutely smoothly at all times. It is but
natural that grievances take place in an organization. The employees working in
a ray cannot be fully satisfied in all respects. The management even cannot
satisfy the feelings and ego of all its employees. It is natural that employees
have grievance against their employers while in some cases employers have
grievance against their employees. According to Richard P. Calhoon, a
grievance as anything that an employer thinks or feels is wrong, generally
accomplished by an activity disturbing feeling.

The major disputes may be handed over to the statutory machinery set up
under the Industrial Disputes Act, 947 but miner grievance must be settled by
establishing a grievance procedure so that the industrial relations reform.

From, the observation I found that SCL follows a simple and systematic
procedure to handle the grievances. Whenever any employee has any grievance
he promptly meets to his immediate supervisor.

Supervisor tries to satisfy his need. If he is not satisfied from supervisor

he can approach upper level persons. Mostly grievances are handled at the
earlier stage. Upward going of Grievance Handling procedure is as follows:
Above mentioned procedure is not always comes into existence in major cases
grievance may be generally handled at the earlier stage.

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Sr. No.


Page No.
Page No-67

Organization Of Finance Department

Financial Planning

Capital Structure

Management Of Fixed Assets


Management Of Working Capital

Leverage Analysis

Profitability And Dividend Distribution

1- Organization of Finance Department

Because of vital importance of financial decision to a firm, it is
essential to set up a sound and efficient organization for the finance functions.
The ultimate responsibility of carrying out the finance function lies with the top
SCL has kept separate department of finance. The organization chart of finance
department of SCL is as follows:
Page No-68

2- Financial Planning
According to Newman, Planning is deciding in advance
that is to be done in the future time period. Financial planning means deciding
in advance, the financial activities to be carried on to achieve the basic objective
of the firm. The basic objective of the firm is to get maximum profit out of
minimum efforts. The planners of financial policies must see that adequate
finances are available with the concern when they are required because an
inadequate supply of funds will hamper operations and may lead to difficulties.
Therefore a proper financial planning is necessary for the smooth running of the

Page No-69

SCL plans finance as follows:

1-Determining Financial Objective:SCL firstly determines for how long period the finance is require i.e. for
short term or long term objectives. By considering the financial objectives, SCL
makes a determined effort to arrange the necessary funds at proper time, which
is necessary for the smooth running business.

2-Formulating Financial Policies:After words, SCL formulates financial policies to be followed by the
planners to achieve the financial objectives

3-Developing Financial Procedure:Developing financial procedure relates to the control and administration
of financial activities. SCL subdivides financial activities
And delegates authorities to subordinates to perform such activities
4-Reviewing Financial Plan:-

Page No-70

SCL reviews plan from time to time in the light of changing economic,
social, and business environment.

3- Capital Structure
Capital structure is the important aspect of the financial
management. According to Grestenberg, The makeup of a firms
The asset of company can be financed either by increasing the owners
claims or the creditors claims. The owners claims increase when the firm
raises funds by issuing ordinary shares or by retaining the earnings, the
creditors claims increase by borrowings.

Page No-71

Thus, company procures funds by issuing various types of securities i.e.

ordinary shares, preference share, bonds and debentures.
In broader sense, capital structure includes all the long-term capital. It
decides the proportion of funds to be raised by issue of ownership capital (i.e.
ordinary share capital and preference share capital) and the amount to be raised
by borrowings (i.e. debentures, bonds, public deposits etc.) taking into account
the cost of capital (i.e. dividend or interest) and its impact in income and
stability of the company.
Generally even company would by towards maintaining optimum capital
structure which means an idea combination of borrowed and owned capital that
may attain the managerial goal i.e. maximizing the market value for share or
minimization of cost of capital.
SCL has framed its capital structure as follows:

Share Capital
Reserve & surplus
Secured loan
Deferred payment credits
Unsecured loan

4- Management Of Fixed Assets

Generally there are 2 types of assets,

Fixed Assets
Current Assets

Page No-72

Fixed Assets:There are those assets which give long time benefits to the
business like plant and machinery, equipment, building etc.

Current assets:There are those assets which give short time benefits to the

SCL maintains proper records showing particulars about quantitative

details and condition of fixed assets. In annual report of SCL every year
creditors give report about the condition and quantitative details of fixed
assets. And whenever auditors found any dissatisfaction about it, they inform
the company and company takes necessary steps to remove dissatisfactions.

5- Management Of Working Capital

The term working capital is commonly used for the capital
required for day-to-day working in a business concern. As viewed by Shubin,
Working capital is the amount of funds necessary to cover the cost of operating
the enterprise. The concept of working capital is used in two ways i.e. Gross
working capital and Net working capital. Gross working capital refers to the
firms investment in current assets. Net working capital means the difference
between current assets and current liabilities.

Page No-73

Working capital management therefore refers to all aspects of the

administration of both current assets and current liabilities. In other words,
working capital management is concerned to manage the current assets, the
current liabilities and the interrelationship that exist between them.
As concerned to SCL, the balance of working capital is as follows:

Total Current Assets

Current Assets
Loans and Advances
Total Current assets

Total Current Liabilities

Current Liabilities
Total Current Liabilities

Gross Working Capital: Gross working Capital:It is the total of all current assets that is Stock etc.
Net Working Capital:It is the difference between current assets and current liabilities.
Page No-74

Cash & Bank Balance
Loans & Advances
Current Liabilities





6- Leverage Analysis
The dictionary meaning of the Leverage refers to an increased
means for accomplishing some purpose. However in the areas of finance, the
term leverage has a special meaning. It is used to describe the firms ability to
use fixed-cost assets or funds to magnify the return to its owners. Christy and
Roden define leverage as the tendency for profits to change at a faster rate than
There are primarily two types of leverages.
Page No-75



1-Operating Leverage:The operating leverage may be defined as the firms ability to use fixed
operating costs to magnify the effects of changes in sales on its Earning before
interest and Taxes (EBIT). The operating leverage takes place when a change
in sales produces a greater change in EBIT.
Operating leverage results when changes in value of sales produce a wide
fluctuation in the operating profits of the firm.
The firm is said to have a high degree of operating leverage if it employs
a greater amount of fixed cost and a smaller amount of variable cost. On the
other hand, a firm will have a low operating leverage when it employs a greater
amount of variable costs and a smaller amount of fixed costs.
Operating Leverage = Contribution
Degree of operating leverage = Percentage change in EBIT
Percentage change in sales

2-Financial Leverage:Financial leverage results from the presence of fixed financial changes in
the firms income statement. These fixed charges are too paid regardless of the
amount of EBIT available to pay them. Financial leverage is concerned with the
effects of changes in EBIT on the earnings available to equity shareholders.
In simple words, the effects on earning by the use of fixed cost security
(preference share & debentures) are called financial leverage.

Page No-76

Financial leverage = EBIT


Degree of financial leverage = Percentage change in EPS

Percentage change in EBIT

SCL suffers the losses, so it is not possible to calculate financial leverage.

7- Profitability and Dividend Distribution

Dividend Distribution:-

Page No-77

As far as Saurashtra cement ltd. is concerned the plan is old so the cost
of production is very high and because of competition they follow demand
and competition. Pricing policy moreover marketing is not so good they
suffer from the competitive so they are marking loss.
Saurashtra cement ltd. has not made any profit for the last four years so
there is no distribution of dividend.

Balance Sheet of SCL

Page No-78

Profit And Loss A/C of SCL

Page No-79

Page No-80

Creation is not only the name of any companys growth and
development are also required for its future is always ascertain but still each
and every company has to plan in advance, so that the cycle of work goes

SCL has also adopted kaizen concept.

That is to have continuous important following are the work place for SCL.

To increase production capacity increase 4200 tons so far that company is

thinking to install the modern machinery plan.

Company wants to decrease its cost of production.

Company will introduce various sales promotion techniques in order to

increase market share.

Company wants to purchase D.G. electricity problem.

Page No-81

Its another project is killer-1 project at present it is used to produce pop in

order to meet 100% our cement.

Page No-82


Page No-83

To give suggestion to Hathi Cement Pvt.Ltd which is

so systematic
and well organized is really very difficult, but yet I
have tried my best.

The company should carry out more

activities to reduce the cost of production.


The company should try to cover maximum market

with the help sales promotion.

The company should try to develop its market in

foreign countries too

Page No-84


Page No-85

Conclusion is the finishing or final touch to the whole report for the
visited unit. Industrial training at Saurashtra Cement Limited is my experience
which has enriched my knowledge regarding the practical aspects.

The SCL is the company which suffers losses since few years. It does not
mean that the working condition of the company is not good.

I found that there is a good administration in the firm and good utilization
of total capacity. Its personnel department suggests that they are aware from the
value of personnel and so manage them very systematically. Its production
departments makes determine efforts to maintain the best quality of product.
Marketing department always tries to expand its total market shares. Beyond
doubt, we can say that financial department works so well but finance position
of the company is not so good.

Now days, company suffers losses due to many invisible reasons. But it
tries to progress slowly and gradually by reducing the losses. We may say that
the present working condition of the SCL is well.

I will them all my heartiest best of luck for their future.

Page No-86


Personnel Management :- Dr. C. B. Memoria
- S. V. Gankar
Page No-87

Human Resources & Personnel Management

- K. Aswathapa
Marketing Management :- Philip Kotler
Marketing Management
- Dr. M.
Marketing Management
- William Stanton
Financial Management:- I. M. Pandey
Financial Management
- Dr. M. M. Verma
- R. K. agrawal
Fundamentals of Financial Management
- Prasanna Chandra
Annual Reports of SCL:Year 2015-2016.

Page No-88

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