1

DECLERATION
I Undersign Mr.Vimal V Gadhavana the student
of SY BBA OF shri V.J.MODHA COLLAGE OF IT
&MANAGEMENT PORBANDAR. Here By 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. MR.Bharagav Radia &
Mrs.Chandni chotai.

This work has not been previously submitted to any

other university for any examination.

PREFACE

This is an accepted fact that each and every Work has twoaspects and
this universal truth is also applicable so far aseducation is concerned,
it also has two aspects one is theoreticaland another is practical.
Theoretical knowledge with practicalexperience is must for every
student of Business Administration.Thus, practical experience plays a
vital role in acquiring realknowledge.

After looking to the importance of practical study, Saurashtra

University outlined the draft SY. B.B.A. program under which the
students are required to visit any one industry for 10 days to acquire
some practical knowledge. it gives opportunity to increase our
knowledge and standard and also develops the ability.

I have visited 'SAURASHTRA CEMENT LIMITED' located at

Ranavav, l visited the company on 22/11/2010 to 7/12/2010. Located
general information regarding personnel, marketing, production and
financial field of management.

To the best of my effort to cover as much fresh information available

to prepare this project report with a very careful study tried my best to
highlight and include all kinds of information which is possible.

ACKNOWLEDGEMENT

In reference with the practical training, I would like to express my

sense of gratitude to the management of Saurashtra Cement Limited
for giving me the golden opportunity for 1O days in its company.

I am particularly grateful to the principal of our college

Mr.DARSHAN SEATH and also deep appraisal to BBA. In charge
Mr.BHARGAV RADIA &Mrs.CHANDNI COTAI for allowing and
giving me necessary guidance concerning with project report. I also
express my due thanks to Mr. KHAUTI (Manager H.R.D.), Miss
Shruti Sinha, Mr. Modha andTheir colleagues for rendering all
necessary information and extending finest hospitality to me.

Again I sincerely thanks to all whom directly or indirectly

Contributed to me in my report construction.

Place:-PORBANDAR
Date .' / /

Yours faithfully
GADHAVANA VIMAL

HIGHLIGHTS OF MEHTA GROUP

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 cables, power capabilities in
consultancy, management and financial services etc.

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 late Shree Nanji KalidasMehta

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

: I N D E X

Sr. no

Particular

GENERAL INFORMATION

PRODUCTION DEPARTMENT

PERSONNEL DEPARTMENT

MARKETING DEPARTMENT

FINANCIAL DEPARTMENT

SWOT ANALYSIS

FUTURE PLAN

SUGGESTION

CONCLUSION

10

BIBLIOGRAPHY

Page No.

G E N E R AL
INFORMATION
7

Contents
Sr. No.

Particulars

Page No.

Introduction About Unit

21

History & Development

22

Highlights Of Company

24

Managing Body

27

Size Of The Unit

29

Form Of The Business Org.

30

Organization Structure

31

INTRODUCTION ABOUT THE UNIT

The flagship company of the Mehta group, SAURASHTRACEMENT
LIMITED is one of the leading players in the Indian cement industry.
Saurashtra Cement Limited is situated at Ranavav near Porbandar.
Saurashtra Cement Limited is one of the leading players in Indian
cement industry, manufacturing ordinary and Pozzolana Portland
cement. IHATHI CEMENT' is the brand leader in Gujarat and has
established itself over the decades as a Choice of every generation
for its strength and durability.

Today, with large-scale modernization and expansion, SCL plant is

comparable to the best cement plant in the World. The quality of
manpower, energy, efficiency and quality of the product are on par
With international standards; understandably it emerged as India's
major export of clinker.

SCL exports its products ie4 clinker and cement in many foreign
countries. For this purpose SCL produces high strength cement. The
major strength of SCL is its brand name and strong quality.SCL
implements effective quality management system as per ISO 9002 for
consistency and progressive improvement in product quality. By its
product quality, SCL enables to earn foreign exchange.

HISTORY OF THE UNIT

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 9h January
1957 to commence the business under the provision of the company's
act 1956.The actual production Was started in1959.

Saurashtra Cement Ltd. Was originally promoted by LATE

SHREENANJI 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
excellencein productivity, quality, innovation and management. The
company hasbeen certified for ISO 9002 from RWTUV Germany.
There are so manyachievements of company, Which create HISTORY

10

Name

: SAURASHTRA CEMENT

LIMITED

Plant Address

SAURASHTRA CEMENT

LIMITED
NEAR RAILWAY STATION,
RANAVAV - 360560
TEL: +91-2801-230824 / 27 / 28 /29
FAX: +91-2801-230830 /
230687

E-mail: scl_rnv@mehtagroup.com

Registered Office :

SAURASHTRA CEMENT

LIMITED
NEAR RAILWAY STATION,
RANAVAV - 360560

(GUJARAT)

Corporate Office

AGRIMA BUSINESS

CENTER,
3rd FLOOR N. K. MEHTA
INTERNATIONALHOUSE,
11

178, BACK BAY

RECLAMATION,
MUMBAI - 400 020

12

Marketing Office
STATION

302/305, SAKAR, 3rd FLOOR,

OPP. GANDHIGRAM RAILWAY

AHMEDABAD - 380 009

Central Marketing Office : - PELIKAN, 7th FLOOR,

CHAMBER OF
COMMERCE,COMPOUND,

ASHRAM ROA AHMEDABAD 380 009

Share Department :- N. K. MEHTA INTERNATIONAL

HOUSE,
5th FLOOR, 178, BACK BAY
RECLAMATION
MUMBAI - 400 020
Website

Brand Name :-

:- www.mehtagroup.com

HATHI CEMENT
SIDDHI CEMENT

13

:-

CHHOTU CEMENT
Product
ORDINARY PORTLAND CEMENT

(OPC)
53 GRADE CEMENT
43 GRADE CEMENT

POZZOLANA PORTLAND CEMENT

(PPC)
SULPHATE RESISTANT CEMENT
(SRC

Year Of Established:-

11' June, 1956

Number Of Employees :-

2558 Employees
(1708 Skilled and

850Unskilled)
Sister Concern .:LTD.
Subsidiary Companies :International LTD.

GUJARATSIDDHI CEMENT
Agrima Consultants
Concorde cement.pvt. Ltd.
Rati Investment Ltd.
RIA Holdings Ltd..
Parchit Holdings LTD.
14

Pranay Holdings Ltd.

15

MANAGING BODY
Board Of Directors:-

Name

Designation

Mr. M. N. Mehta

Chairman

Mr. D. N. Mehta

Deputy Chairman

Mr. Jay Mehta

Executive
President

Mr. H. D. Mehta

Director

Mr. S. V. S. Raghvan

Director

Mr. M. N. Rao

Director

Mrs. Savita V. PiIIi

Director

Mr. Anish Modi

IDM Nominee

Mr. Alexander Shaik

IDM Nominee

Mr. Chetan Jain

IDM Nominee

Mr. M. S. Gilotra

Managing Director

Mr. Raj K. Poddar

Dy.
Managing
Director

Vice

16

Bankers :Dena Bank

Central Bank Of India
Rajkot Nagrik Sahkari Bank Ltd.

17

SIZE OF THE UNIT

In the Consideration of the size of the unit, there are only three
different types of industry.
LARGE SCALE INDUSTRIES
MEDIUM SCALE INDUSTRIES
SMALLSCALE INDUSTRY

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, I the industry

which has share capital more than Rs. 5 corers is the large scale
industry'. In other word the amount of investment invested by the
owners is must be more thanks. 5 corers. The investment of SCL is
lacks; hence id is more than 5crores.Therefore, SC

18

6 - FO R M O F B U S I N E S S O R G AN I
S AT I O N

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 name.

So SCL is said to be PUBLIC LIMITED COMPANY.

19

20

Contents
Sr. NO.

Particulars

Introduction

Organisation Structure

Numbers of Products
Manufactured

Production Planning

Production Control

Raw Material and Sources

Machineries and Uses

Production Process

Page No

21

1-I N T R O D U C T I O N
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 labour, energy, materials, equipments,
machinery etc.

Production Department is one of the most important part of an

enterprise, which is responsible for the actual transportation of
materials into finished production. It deals with man, machine,
organisation, 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 manner.

22

2 - ORGANISATION CHART OF
PRODUCTION
DEPARTMENT
Production department is one of the most important department
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 organisation chart of the production department SCL is as
follows.
General Manager (Operation)
Assistant General Manager (Operation)

Dy. Gen. Manager

Dy. Gen. Manager

(Quality Control)

(Production)
Supervisor

Workers

23

Production System of SCL

24

P
R
O

FEEDBACK

OUTPUTS

INFORMATIO
N

D
U
C

MANUFACTURING

PROCESS

SYSTEM

O
N

MANUFACTURING

INPUTS

PLAN

S
Y
S

MEN
MACHINES
MATERIALS

MONEY

MINUTES

METHODS
25

S
C
3 Number
of Production Menufactured
Every
L 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.Portlend cement. SCL produces high strength cement for
exporting.

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

follows:
ORDINARE PORTLAND CEMENT (OPC)

53 Grade Cement
43 Grade Cement

POZZOLANA PORTLAND CEMENT (PPC)

SULPHATE RESISTANT CEMENT (SRC)

26

4-PRODUCTION

PLAN N I N G

As viewed by Charles A. Koepke, The coordination of a series

of functions according to a plan which will economically utilise the
plant facilities and regulate the orderly movement of goods through
their manufacturing cycle from the procurement of all materials to the
shipping of finished goods at a predetermined rate.

Production planning is an essential prerequisite of production

control. Production control cannot be imagining without planning.
Planning is the function of the management to look ahead, anticipate
difficulties and take steps to remove the adverse before they are
materialized.

Production planning is concerned with specifying how the

productions resources of the business enterprise are to be employed
over a given future time period in response to the predicted a
forecasted demand for the products or services.

Production planning may be defined as foreseeing or picturing

ahead every step in a long series of operations, each step to be taken
at right place, at a right degree and right time so that the required
quantity may be manufactured at right time and at most economic
cost.

27

5-PRODUCTION

CONTROL

The other important aspect of production is production control.

Only planning does not ensure that production is highlighted by
planned activities and is being dine in planned manner. Controlling is
the process that evaluates the equal performance of production units
in lights of standards set in advance. It is highly integrated with
production planning as it involves guiding production along the lines
set by the production plan.

At SCL, also plans are designed looking to the factors prevailing

in the market and looking to the circumstances prevailing around like
demand, supply etc. and accordingly production is controlled. The
total production is controlled by the computers from CCR (Computer
Control Room).

28

6 - R AW M AT E R I AL AN D
CES

SOUR

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;
1.
2.
3.
4.
5.

LIME STONE
MARL
IRONE ORE
SAND STONE
GYPSUM
a. MARINE
b. CHEMICAL (P.P.)
c. PHOSPHO
6. COAL
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.

29

1-Lime Stone:SCL ADITYANA MINES

2-Marl:SCL ADITYANA MINES

3-Iron Ore:BAN GANGA MINERALS

SHAHPUR, RAJASTHA

4-Sand Stone:SUNHEM MINERALS

CHOTILA

5-Gypsum:A- MARINE
GANDHIDHAM, MORBI, BHAVNAGAR,
NAVLAKHI
1-SH Nathji TRADE CO., PBR
2-TATA CHEM, MITHAPUR
B-CHEMICAL (P.P.)
30

THAN, MORBI, KADI

1-SH. HARSIDDHI TRADE CO., PBR
2-MUNJAR ENTERPRISE, PBR

C-PHOSPHO
G.S.F.C

6-Coal Imported:SOUTH AFRICA

1-ESTECO COAL SUP., MUMBAI
2-M/S GLENCORE INDIA, MUMBAI
3-APR COAL & ENERGY
4-COMTOIR BALLAND, GENEVA

31

7 - M AC H I N E

AN D

USES

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 cement.

1-Lime Stone Crusher:a.

b.
c.
d.

E. V. CRUSHER
CRUSHER
SECONDARY CRUSHER
MINI CRUSHER

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.

32

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: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.

33

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

clincer.

9-Cement Mill:USE:-Cement mill is used to grind the clinker (i.e. half

Produced cement). In cement mill grinded clinker
Is available in the form of cement.

10-Cement Silo:USE:-This machine used to store the finished product

I.e. the ground cement.

11-Cement Packer:-USE:-The

cement from the solo is

packed automatically
By the cement packer.
34

8-PRODUCTION

PROCESS

Production process must operate to satisfy customer demands

particularly relating to mostly quality, time, quantity and price. The
production 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.

35

MINING
C R U S H I N G
R E C L A I M I N G
R A W
B L E N D I N G
P R E

M I L L

&

S T O R A G E

H E A T E R

&

S I L O

K I L N

C O O L E R
C E M E N T

M I L L

P A C K I N G

1-Mining :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.
36

The material so recovered is transferred to the crusher.

2-Crushing :The limestone craven out from Mines is generally in the form of
boulders. Hen 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.

37

3-Reclaining :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.
Reclaimers starts reclaiming the material, which is transported
to raw hill hoppers through a set of belt conveyors.

4-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
38

5-Blending & Storage Silo :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 conveyo

6-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.

39

7-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.

8-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

40

9-Packing :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 50kgs.
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.

41

42

Content
Sr. No

Particulars

Page No.

Introduction

70

Organization Chart

71

Recruitment, Selection, Induction

73

Training & Development

79

Job Description

82

Promotion & Transfer Policy

83

Performance Appraisal System

85

Wage & Salary Distribution

86

Facilities & Benefits to the Workers

87

10

Employee Safety

90

11

Provident Fund Scheme

92

12

Working of ESI Scheme

93

13

Industrial Relations

94

43

1-I N T R O D U C T I O N
Every enterprise depends upon human being.
It is truly said the people are our single most important
resources. Because of the unique important of human
resources now a days a personnel function i.e.
Manpower
Management
Function
is
becoming
increasingly specialized. The term PERSONNEL refers
to number of groups of persons working in the unit. As
per human resources approach, the people working in
an organisation are a valuable resources whose talents
have to be developed and utilised in the best manner
possible for the achievements of organisational goals.
In other words, Personnel Management is the
direction and coordination of human relations in the
business orgenisation, thereby obtaining maximum
production with minimum of physical and mental effort
by the group of workers.

Someone truly defines;

COMING TOGETHER IS BEGINING
KEEPING TOGETHER IS PROGRESS
WORKING TOGETHER IS SUCCESS.

44

2- ORGNISATION CHART OF PERSONNE

L
DEPARTMENT
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 labour force in any organisation. 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 organisation chart
of personnel department of SCL is as follows;

45

General Manager (Personnel & Admn.)

Dy. Manager (Personnel & Admn.

HRD)

Sr.
Manager
Jr. Officer

Sr.
Officer

Sr.
Officer

Managem
ent
Training

Time
Office
Welfare
Transpo
rt
Canteen

46

3 - RECRUITMENT, SELECTION &

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

A-Recruitment :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 :There are mainly two types of Recruitments

sources;
1-INTERNAL SOURCES
2-EXTERNAL 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.

47

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
follows.
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
48

 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

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.

49

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 record.
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 :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.

50

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.
51

5-Physical Examination :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 etc.

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
52

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 regulations.

53

4 - TRAINING & DEVELOPMENT

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.\
1. ON THE JOB TRAINING METHOD
2. OFF THE JOB TRAINING METHOD
54

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 :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
55

to manage the work in their organisation effectively

and efficiently

5 - J O B

D E S C R I P T I O N

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 work.

56

6 - PROMOTION & TRANSFER POL

ICY

Promotion Policy :Opportunities for advancement in service are one

of the best incentives an organisation can provide to its
employees. Promotion is one of the best forms of
incentives, which generates a sense of loyalty to the
organisation. 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 organisation 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.

57

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

7 - PERFORMANCE APPRISAL SYST

EM
Organisations are established to achieve certain
objectives. Achievements of goals or target depend
upon the performance of individual employees. Thus,
performance appraisal forms an important part of HRM.
Performance appraisal is the step where the
management finds out how effective it has been at
58

hiring and placing employees. Performance appraisal is

a process of evaluating an employees performance.
As viewed by Fillipo, Performance appraisal is a
systematic periodic and impartial rating of employees
excellence in matters pertaining to his present job and
to his potentialities for a better job. Thus, performance
appraisal will help the management to perform
functions relating to selection, development, salary,
promotion, penalties etc.
SCL constantly does the activity of performance
appraisal as it thinks it helps in improving the
performance of employees. They can know the
limitations and abilities of employees and can put right
person at right place. Thus, they can have satisfactory
work.

8-WAGE & SALARY ADMINISTRATI

ON
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
59

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 grade.
Thus, companys wage and salary system is
enough competitive and satisfactory.

9-FACILITIES
THE WORKER

AND

B E N E F I T ST O

The human concept of labour has been recognized

widely in the industrial word. It is very necessary to
provide such facilities and benefits to the workers for
any industry. SCL has made some welfare activities to
motive the employees and to increase their moral.
60

Facilities and benefits should lead to enhanced

productivity and satisfaction of employees. All the
benefits and facilities are essential to take care of
workers and keep them fit and faithful.
SCL provides following facilities and benefits to
their employees.

61

1-Housing Facility :Saurashtra Cement Limited has its own colony.

There are different types of quarters with different
facilities. SCL provides quarter facility to employees at
free of charges.

2-Medical Facility :Company has its own dispensary near the plant
location. In this dispensary, the employees are provided
free medical services and medicines. Company also
provides ambulance in emergency cases.

3-Training
Facility :-

And

Transport

The company provides traveling and transport

facilities for their employees comfort. Company
provided four wheelers van to the executives like car,
jeep, and two wheelers to the lead of all the
departments like Honda, Bajaj etc. Fuel and
maintenance charges are provided by the company.
SCL provides traveling facility from porbandar to
Ranavav & Ranavav to their employees.

4-Canteen Facility :The company has its canteen and provides

refreshment facilities to its employees. The company
provides coupons for tea & snack to the employees.
62

The refreshment items are given at very reasonable

rate.

5-Creational
Facility :-

&

Entertainment

SCL provides club for recreation and entertainment

to the employees and their families. In which they can
play, read and arrange entertainment programs etc.
Company arranges entertainment programs as
musical parties, magician shows etc. for workers and
their families.

6-Death Relief Fund :SCL provides death relief fund to its employees.
The company pays amount as per act to any current
employees die in any reason.

Other Facilities :1.SCL provides gray gratuity scheme for the

employees.
2.SCL provides provident fund scheme for the
employees.
3.SCL provides uniform, shoes, goggles and cap to its
employees for safety.
4.SCL provides leave facility to its employee.
SCL provides parking facility.
63

5.SCL provides facility to withdraw amount in

advance by the employees as per their post and
standard of wages
6.Whenever company achieves its predetermine goal
very effectively management declares bonus to
their employees as an additional inactive.

10 - E M P L O Y E E

SAFETY

In simple terms, SAFETY means freedom from

the occurrence or risk of injury or loss. Industrial safety
or employee safety refers to the protection of the
workers from the danger of industrial accidents.
production, loss of man-hours and also loss to workers,
employers and to the nation. Thus, to prevent the
accidents the need of safety is felt.
Safety is primarily the responsibility of the
management to control the number of accidents. SCL
becomes more conscious about its employees safety.
SCL arranges safety programs for its employees in
which they provide training to them for safety. If
workers are imparted training, the accidents will be
reduced automatically. In SCL, safety posters with
poignant illustrations and penetrating slogans may be
put up on the walls near workplace.
In the celebration of safety week the company put
many slogan and poems for safety. Some of the are as
follows.
64

1-

SAFETY IS A FOUNDATION OF
Health and Wealth

11 - P R O V I D E N T

FUNDS

SCHEME

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 account.
As contributory, by both the parties, employees
and employers contribute in the provident funds
scheme.

65

12 - W O R K I N G O F E. S. I. S C H E M E
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.

66

67

Contents
Sr
No.

Particulars

Page
No.

Introduction

104

Structure of marketing Department

105

Product Planning

107

New Product Development

108

Marketing Segmentation

109

Pricing Policy

111

Channel Of Distribution

112

Sales Promotion

113

Advertisement

115

10

Branding

117

11

Competitors

120

12

Market Share

121

13

Marketing Research

123

15

International Marketing

124
68

1- I N T R O D U C T I O N
In modern competitive age, Marketing plays an
important role in the business for the accomplishment
of certain goal. Someone truly defines, Nothing
happens our economy until somebody sells something.
It states the importance of the marketing. According to
PHILIP KOTLER, Marketing as the human activity
directed at satisfying needs and wants through
exchange process. Every industry is in search of
profitable market for its product.
Marketing department is the Eye of the
organisation. Marketing management may be defined
as a process of management of marketing programs for
accomplishing organisational goals and objectives.
Marketing management represents an important
functional area of business management efforts for the
flow of goods and services from the procedure to the
consumers.
Marketing is the creation and delivery of
standards of living to the society. Marketing
management represents marketing concepts in action
i.e. preplanned demand management under customer
oriented marketing philosophy.
In this competitive age, each firm tries to increase
sales volume and market reputation by providing
consumer satisfaction and quality products.

69

2-ORGANISATION
MARKETING

STRUCTURE OF
DEPARTMENT

As we know that each company has its own

marketing department. Marketing organisation 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.

70

The
organisation
chart
of
marketing
department of Saurashtra Cement Limited is as follows.

General Manager
(Marketing)
Dy. Manager
(Marketing)

Assistant
Manager

Sales
Officer
Head
Clerk

(Marketing
Dispat
ch

Salesm
en

71

-: THE MARKET SCL :-

BODY
OF

BUYER
F
S M
L

K
E
T

C
O

E I

E S

D F

MARKET
F

THE
CIRCLE OF

B A
A C
C T
K

EXCHANGE
F

I
O

I
N
F

N
&
D
I

BODY

O S
R S

OF

M A

72

T
I

A T
S

T I
S

O F

3 - P R O D U C T

P L A N N I N G

A
Product planning is essential task of marketing
C
department because of it is based stone of the
functions of marketing. In simple words, product
T
planning means deciding about the product in the
I
present what to do in the future in term of product
O
items, utilities of the product, design of product, price
of the product, modification of present product etc.
N
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 planned 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.
Lazo and Carbin truly defines that Planning is
looking ahead to where we want to go and obstacles we
are likely to encounter in doing it.

73

4 - NEW

PRODUCT

DEVELOP

MEN
Frequent changes in the environmental conditions
of the market take place in case of all products,
consumers needs, wants and their expectations
changed from time to time. All these changes make it
compulsory for every businessman and industrialist to
develop a new product.
Every industrial enterprise wants to capture a
major share of the market to defeat their competitors.
It is therefore necessary for the enterprise to represent
its product in the market in the new and improve style
to attract the consumers. But new product
development involves greater risk and cost because the
product is new for both the company as well as market.
Despite new product development is the life sources of
the companys future.
SCL produces the best quality of cement and
clinker. So there is no need for them to develop a new
product but still for fulfilling the requirement of small
and less quantity buyers, company developed the new
small pack available in 5kgs. And 10kgs. And brand
name is given as CHOTU HATHI

74

5-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 can not 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.
75

As per quantity of the cement

CHOTU HATHI
For Repairs &
Small
Users
Market of SCL is also segmented according to
demand.
MARKETSHARE
50%
30%
MARKERT
20%
MARKET

SEGMENTATION
GOVT. OF INDIA
EXPORT
SCATTERED

76

6 - P R I C I N G

P O L I C Y

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.

77

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.

7-CHANNELS 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
COMPANY
of distribution,
which is favourable for the company.

DISTRIBUTOR
/
CHANNEL
OF DISTRIBUTION.
STOCKIST
SUB-DEALERS
CUSTOMER

78

79

8-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 marketing.
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 promotions.
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 contractors.

80

 SCL provides entertainment shows and invites

contractors, dealers and masons with their
families.
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 Ahmedabad.
At Rajkot district dealers receive gold coins based
on their sales performance.
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
promotion.

9- A D V E R T I S E M E N T
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 helps 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
81

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 cassettes slogans are also recorded for
advertisement.
There are so many ways of advertising, which the
company uses. The company uses following media to
advertise their product.

Newspapers
Magazines
Radio
Wall Paintings
Hoardings
Audio Visual Advertising
Gift Articles
Posters

82

10- B R A N D I N G
In this age of competition, every producer wants to
capture the major share of the market. For this
purpose, he wants that his product should have
different image. So that it may attract a maximum
number of customers. To have a different image, the
producers determine a particular brand name of the
product.
According to American Marketing Association, A
brand is a name, firm, sign, symbol or design or a
combination of them which is implemented to identify
the goods or services of one seller or group of sellers
and to differentiate them from those of competitors.
As concerned to SCL, it has adopted the suitable
brand name for its product. The cement produced by
SCL is branded as HATHI CEMENT.
Thus, branding is a means of product identification.
Popularity of brand creates a separate market for the
product. Really The stronger the brand, the stronger its
market.
Branding is the management process covering
various activities. In which adopting brand mark is the
most important activity. Brand mark is in the form of a
symbol, design or distinctive coloring or lettering. When
a brand mark is registered and legalized it becomes a
Trade Mark.
83

SCL has adopted following Trade Mark.

84

11 - C O M P E T I T O R S
In todays world, there is a competition in ach and
every field. Hence, the first priority for any firm is not to
attain maximum profit but to survive in the market.
Competitors are those who sell the goods and
services of the same and similar description in the
same market. Apart from competition on price factor,
there are other forms of competition like product
differentiation. It is therefore necessary for each firm to
identify and monitor its competitors.
According to PHILIP KOTLER The best way for a
company to grasp the full range of its competition is to
take the viewpoint of a buyer, what does a buyer think
about that which eventually leads to purchasing
something.
SCLs main competitors are as follows;
GUJARAT AMBUJA CEMENT
ADITYA BIRLAS KAMAL CEMENT
ALTRATECH CEMENT
TATA SUCH CEMENT

85

12 - M A R K E T

S H A R E

Every industrial enterprise wants to capture a

major share of the market to defeat their competitors.
Each firm always tries to expand its market share.
Market share of Hathi Cement compared to its
competitors.

In Gujarat Region :Gujarat Ambuja Cement

26.50%

Hathi Cement

20.00%

ACC

18.00%

Sandhi Cement

14.50%

Kamal Cement

10.00%

Others

11.00%

In Saurashtra Region :Gujarat Ambuja cement

27.00%

UltraTech Cement

16.50%

ACC

13.50%

Hathi Cement

12.00%

Sandhi Cement

11.50%

Binani Cement

08.50%
86

Others

11.00%

From above we can say that Hathi cement is at on

second position in Gujarat and Fourth position in
Saurashtra.

Market Share Of Hathi Cement :-

87

In Gujarat Region :

13 - M A R K E T R E S E A R C H
The American Marketing Association has defined
marketing research as, The gathering, recording and
analyzing of all facts about problem relating to the
transfer and sales of goods and services from
producers to consumers. Marketing research involves
a study of a consumer preferences, habits and
attitudes. It helps us to decide how market operations
should be directed. It also involves an examination of
88

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 identify the need and expectation of the
customer to mark positive and negative points of their
marketing strategies and products. By this way
company can come to know about the marketing
problems and remedies of it.

89

14 - I N T E R N A T I O N A L

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 know 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.

MALAYSIA
KOREA
SRI LANKA
BANGLADESH
SOME CONTRIES OF GULF

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Contents
Sr.
No

Particulars

Introduction

Organization Chart of Finance

Department

Financial Planning

4.

Capital Structure

Management Of Working Capital

6.

Leverage Analysis

Page
No

92

1 :- I N T R O D U C T I O N
In todays dynamic and ever changing world,
finance is the lifeblood of any business. Finance is the
pillar of the industry because it plays a vital role of
supporting all the business activities. Any economic
activity
is
not
possible
without
appropriate
arrangement of finance. Thus, Financial Management is
the most require too.
Someone rightly defined, If you have money, and
you manage it properly, you will make more money. It
means the management of finance is necessary for any
industry.
Financial Management is an essential part of any
economic activity. Financial Management is that
managerial activity which is concerned with the
planning and controlling of the firms financial
resources. According to Joseph and Massie, Financial
Management is the operational activity if a business
that is responsible for obtaining and effectively utilizing
the funds necessary for efficient operation.
So, we can say that finance is the central point of
any organisation.

93

2-ORGANISATION CHART OF
FINANCE DEPARTMENT
Because of vital importance of financial decision to
a firm, it is essential to set up a sound and efficient
organisation for the finance functions. The ultimate
responsibility of carrying out the finance function lies
with the top management. SCL has kept separate
department of finance. The organisation chart of
finance department of SCL is as follows:

94

Vice President
(Finance)
General Manager (Finance
& A/C)
Dy. General Manager (Finance
& A/C)
Sr. Manager
(Accounts)

Assistant
Manager

Sr.
Officer

Dy.
Manager

(Finance)

(Costing
)
Gr.
Officer

(Finance)
Cashi
er

Sr.
Officer
(Financ
e)
Assistant
Officer

(Costing)
Assistant
Officer

95

3-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 business.
SCL plans finance as follows:

1-Determining
Objective :-

Financial

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
Policies :-

Financial

After words, SCL formulates financial policies to be

followed by the planners to achieve the financial
objectives
96

3-Developing
Procedure :-

Financial

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

97

4 - CAPITAL STRUCTURE
Capital structure is the important aspect of the
financial management. According to Grestenberg,
The make up of a firms capitalization.
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.
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.

98

SCL has framed its capital structure as follows :

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

99

5- M A N A G E M E N T O F
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.
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
Provisions
Total Current Liabilities

100

12 - L E V E R A G E A N A L Y S I S
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 sales.
There are primarily two types of leverages.
1)
2)

OPERATING LEVERAGE
FINANCIAL LEVERAGE

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
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employs a greater amount of variable costs and a

smaller amount of fixed costs.
Operating Leverage = Contribution
EBIT
Degree of operating
change in EBIT

leverage

Percentage
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.
Financial leverage = EBIT
EBT
Degree of financial
change in EPS

leverage

Percentage

102

Percentage
change in EBIT
SCL suffers the losses, so it is not possible to
calculate financial leverage.

103

: SWOT ANALYSIS :

SWOT ANALYSES calls for strength, weakness,

opportunities and threats in relation to a business.

1-Strength :The major strength of SCL is its brand name and

strong quality. It has got the reputation of strength like
elephant
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SCL exports its product to many foreign countries.

For export SCL has produce high strength cement.
There are so many customers who buy Hathi Cement
due to its brand name.
Thus, brand name and strong quality are the major
strength of SCL.

2-Weakness :The main limitation of SCL is the inefficient

management of finance. It does have the strong
support of Mehta Group generating the enough funds.
Yet the utilization of the same is not comprehensive.
Also the marketing management of SCL is not well
developed as it has to continuously effort of to fight
with the competitors yet it can not get percent success.

3-Opportunities :Cement is vital building material. Cement is one of

the most important material for constructing building,
pools, bridges, roads etc. Without cement one could not
thing even of constructing a building. With growth in
population, the need of demand for shelter also goes
up which ultimately affects significantly to the whole
cement industry.
Thus, construction and reconstruction activities are
increasing day by day. Therefore it is an opportunity for
the company to increase its demand.

4-Threats :105

The main threat is the demand generation for the

company and the hot news is that above 50% are not
using Hathi Cement. Now a days there is a
competitions, many cement companies incurring
losses. For SCL, there is a main threat of competitors.

106

FUTURE
PLAN
: FUTURE PLAN:
The promoters of the company, Mehta Group is
well known group in all over the world. The company
has a great support of Mehta Group. Now a days the
company suffers the losses. But it does not mean that
there is no chance of future progress.
As we all know that the cement is a basic necessity
of any constructional activity. The need or demand of
cement increases day by day. From this angle we may
say that SCL would have better prospects in future. Also
SCL exports its products in many foreign countries. It is
considered that SCL enables to earn precious foreign
exchange which makes its future bright.
From seeing the above we can say that companys
future is bright and its market will increase day by day.

107

108

109

: S U G G E S T I O N:
To give suggestion to Hathi Cement Pvt.Ltd
which is so systematicand well organized is
really very difficult, but yet I have tried my
best.
The company should carry out more researse
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
110

111

: C O N C L U S I O N :
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 a 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.
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113

114

Personnel Management :Personnel Management

- Dr. C. B. Memoria
- S. V. Gankar
Human Resources & Personnel Management
- K. Aswathapa

Marketing Management :Marketing Management

- Philip Kotler
Marketing Management
- William Stanton

Financial Management :Financial Management

- I. M. Pandey
Financial Management
- Dr. S. N. Maheshwari

Website :www.mehtagroup.com
www.google.com
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