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INTRODUCTION

As a part of the MBA course curriculum, it is advised to do an organization study to


understand how a company functions and how the theoretical knowledge differs from the
actual practices. It gives a dynamic exposure to the management students during the course
of the study. This helps to gain realistic and factual knowledge about the functions and
activities of each department in the organization.
An organization is a social arrangement which pursues collective goals, controls its own
performance and has a boundary separating it from its own environment. Organization is the
association formed by a group of people who see that there are benefits available from
working together towards some common goals.
An organization study is the study of individual and group dynamics in an organization
many factors come into play. Organization studies attempt to analyze and understand these
factors. It refers to the study of the organization as a whole and getting adequate knowledge
of various departments in the organization.
This organization study was conducted at Carborundum Universal Madras India Ltd.
(CUMI) which is an important segment of Murugappa Group. CUMI offers more than
20000 varieties of products. CUMI’S product offering comprises of coated abrasives,
bonded abrasives, electro minerals, super refractories and industrial ceramics. This study
was conducted in the Electro Minerals Division (EMD) of CUMI, which is situated in
Kerala.

OBJECTIVES OF THE STUDY

A. To understand the working of an organization


B. To examine the organizational structure of the company
C. To get knowledge about the working of each department in an organization
D. To get knowledge about the key information and policies of an organization
E. To develop the SWOT analysis of the company.

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METHODOLOGY

The organizational study is descriptive in nature and it is based on both primary and
secondary data. Primary data are being collected through the direct interactions with the
managerial staffs of CUMI. Secondary data are those collected from annual reports,
brochures and company websites, other records and reports etc.

LIMITATIONS OF THE STUDY

 Difficulty in meeting the officials because of their busy schedules.


 Due to the insufficient time the whole activities in the organization could not be
completely studied.
 Delay in providing the required data’s from the top level.
 Not providing the official documents.
 Permission was not given to visit the factory due to safety concern.
 The company refused to provide confidential information.

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INDUSTRY PROFILE

Aluminum is mainly produced from bauxite. Over 90% of the world’s bauxite resources
are concentrated on the tropical and sub-tropical belt in Australia, Guinea, vJamaica,
Surinam, Brazil, and India. Its applications are widespread and include spark plugs, tap
washers, electronic and laboratory ware and wear parts etc.
Alumina or aluminum oxide is produced from Aluminum are also known as bauxite.
Despite its name, it has nothing to do with clay or black soil but resembles a flour or very
white sand. Alumina is then transformed into aluminum through electrolytic reduction. One
tone of aluminum is produced from every two tones of alumina. Fused alumina is made in
electric are furnances by passing a current between vertical carbon electrodes. The heat
generated melts the alumina. The furnace consist of a water cooled steel shell and 6-8 tones
batches of material are fused at any one time. The fused alumina has high density, low
porosity, low permeability and high refractoriness. As a result it is used in the manufacture
of abrasives and refractory.
 India is considered to be the fifth largest producer of Aluminum in the world. It accounts
to around 5% of the total deposits and produces about 0.8 million tons of aluminum.
 In India, CUMI is one of the leading players in aluminum oxide grains. Apart from
CUMI, Grind well Norton, Orient and SNAM Abrasives are the others. Imports from
China are also a major source of electro minerals for the India Market.
 Aluminum Oxide industry is one of the major Industries in India. Aluminum is the most
widely used oxide ceramic material. Its applications are widespread, and include spark
plugs, tap washers, electronic sub stares, grinding media, abrasion resistant tiles, cutting
tools, bio-ceramics and laboratory ware and wear parts etc.
 It is estimated that if the country’s aluminum consumption rate maintains, it’d be having
the reserves for over 350 years.
 Carborundum Universal Ltd is a largest high alumina ceramic manufacturing company in
super refractories , electro minerals, industrial ceramics and ceramic fibres.
 The company’s major customers include bearing automobile and auto ancillary, alloy
steel, foundry and forging, fabrication and general engineering industries.

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WORLD SCENARIO

The electro mineral industry faced competition from imports but this was counted by
delivering quality product. In the export market, removal of anti-dumping duty of
Chinese product export to Europe. However, during period, the European countries are
falling to financial crisis. Many of companies stopped their production or quantity of
production is decreasing due to financial crisis.

INDIAN SCENARIO

CUMI will continue to focus on quality and application, specific product offering and on
improving its customer base. In the domestic market there are 3 manufactures for electro
minerals. CUMI is market leader in the Indian Industry. The export market will be
targeted with Silicon Carbide micro grit with improved in product quality. CUMI is a
major player in the domestic market for the Brown and White Fused Aluminum Oxide
and silicon Carbide. The key success factor in the industry is cost and quality, while entry
barriers are sophisticated technology. The availability of substitute product, product
differentiation and imports continue to be the principle challenge in the business.

STATE SCENARIO

There was a 17% increase in powder tariff in Kerala, which adversely affected the
profitability of the electro-minerals industry. This was future compounded by the low
power plant due to poor monsoon in kerala last year. The cost push created by
improvement in operating efficiencies of the country. Use of consumption and reduction
in power consumption and improvement in crude recovery helped in the same.

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COMPANY PROFILE

Carborundum Universal Limited (CUMI) is one of the flagship companies of US $ 4.4 billion
Murugappa Group.

Carborundam Universal Limited (CUMI) was found in 1954 as a triparite collaboration between
the Murugappa Group, Carborundum Inc., USA and the Universal Grinding Wheel Co Ltd, UK.
CUMI is a $380 million sales company, pioneered the manufacture of Coated and Bonded
Abrasives in India, besides Super Refractories, Electro Minerals, Industrial Ceramics and
Ceramic Fibres. It manufacture over 20000 different varieties of abrasives, electro minerals,
ceramics and refractories manufactured at 25 locations across India, Russia, South Africa,
Australia and China. In sync with the global vision, CUMI is expanding its product spread.

Most of the manufacturing facilities of CUMI are ISO 9001:2008, ISO 14001:2004 and OSHAS
18000 certified to ensure robust quality systems and environment friendly manufacturing
practices. State-of-the-art facilities and strategic alliances with global partners have earned
CUMI a reputation for quality and innovation. It is one of the few manufactures of abrasives and
ceramics in the world with fully integrated operations that stretch from mines to market.

CUMI is equipped with a state-of-the-art Research and Development centre which works
aggressively on product development and efficiently enhancement. Its in-house R&D and
collaborative research with leading research institutions have ensured market Leadership in India
and overseas. CUMI has in place manufacturing practices like lean and Six Sigma to enhance
product reliability.

CUMI is known to be an innovator and exports its products to 43 countries spread across the
globe. CUMI’s global expansion into Australia, USA, Canada, UAE, Russia, China, Thailand
and South Africa has enlarged its customer base. The company has a commanding list of
subsidiaries across the globe that include Volzhsky Abrasive Works-Russia, CUMI Australia Pty
Ltd,Foskor Zirconica Pty Ltd-South Africa, CUMI Middle East-RAK, CUMI Canada Inc, CUMI
America Inc.,Sterling Abrasives Ltd-Ahmedabad and many more.

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VISION

To be globally admired ceramic company in the field of electro-minerals and fine powders.

MISSION

We will steadily improve EMD’s profitability and grow aggressively in new products and Micro
Grits.

VALUE CHAIN

user
key inputs plants products
industries

CUMIS’S EDGE

 Global Reach in Marketing & Services


 Operation in India, Russia & South Africa
 Total product capacity of 150000 MT per annum
 Raw material security
 Application Experts at your Service
 Best in Class Facilities in the world
 Consistent Product Quality
 Advanced Milling Machines and Technology
 Warehouse in Europe

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MANUFACTURE PRODUCTS

 Abrasives
 Power tools
 Super Refractories
 Ceramics
 Electro Minerals
 Ware house Equipment
 Material Handling Equipment
 Metal working fluids
 Strapping Tools

PRODUCTS

 CUMI SLICE
 CUMI KLEAN
 CUMI SHARP
 CUMI MET
 CUMI HEAT
 CUMI TEC
 CUMI PLANS

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Product Percentage

Abrasives
Ceramics
Electrominerals

BOARD OF DIRECTORS

Management

Mr. M M Murugappan – Chairman


Mr. T L Palani Kumar – Non Executive Independent Director
Mr. Shobhan Thakore – Non Executive Independent Director
Mr. M Laskhminarayan – Non Executive Independent Director
Mr. k Srinivasan –Managing Director

Management Committee

Mr. N Ananthaseshan – President ( Abrasives )


Mr.Rajesh Khanna – Executive Vice President (Ceramics)
Mr. R Rajagopalan – Executive Vice President (Refractiories & Prodorite)

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Mr. M Muthiah – Executive Vice President (HR)
Mr. R Sridharan – Executives Vice President and Chief Financial Officer

Subsidiaries

 Net Access India Limited


 Southern Energy Development
 Sterling Abrasives Limited
 Cellaris Refractories India Limited
 CUMI International Limited
 CUMI (Australia) Pty Limited
 Volzhsky Abrasives Works
 Foskor Zirconia (Pty) Limited
 CUMI America Inc.
 CUMI Canada Inc.
 CUMI Middle East FZE
 CUMI Abrasives & Ceramics
 Thukela Refractories Isithebe Pty Ltd
 CUMI Europe S.R.O.

Joint Venture

 Wendit (India) Limited


 Murugappa Morgan Thermal Ceramics Ltd (MMTCL)
 Ciria India Limited ( Ciria India)

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MURUGAPPA GROUP

Founded in 1900, the USD $ 4.4 billion Murugappa group is one of the India’s
leading business conglomates. The group has 28 business including eight listed
companies actively traded in NSE & BSE. Headquartered in Chennai, the major
companies of the group include Carborundum Universal Ltd, Cholamandalam
Investment and Finance Company Ltd, Cholamandalam MS General Insurance
Company Ltd, Coromandel International Ltd, Coromandel Engineering Company
Ltd, E.I.D parry (INDIA) Ltd, Parry Agro Industries Ltd, Tube Investments of
India and Wendt (India) Ltd.
Market leaders in served segments including Abrasives, Auto Components,
Cycles Sugar Firm, Farm Inputs, Fertilizers, Plantations, Bio-products and
Nutraceuticals, the Group has forged strong alliances with leading international
companies like Groupe Chimique Tunisien, Foskor,dad Cargill, Mitsui Sumitomo,
Morgan Crucible. The group has a wide geographical presence spanning 13 states
in India and 5 continents. Renowned brands such as BSA, Hercules, Ballmaster,
Ajax, Parry’s, Chola and Paramfos are from Murugappa Stable. The organization
fosters an environment of professionalism and has a workforce of over 32000
employees.

HISTORY OF THE COMPANY

1954-1963 - Revenues Rs. 19 million

 Company acquired a coated abrasives facility from Ajax Products Pvt. Ltd
 Started bounded Abrasives facility set up at Chennai, India
 Started Bauxite mining at Bhatia, Gujarat, India

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 CUMI Incorporatedas a joint venture betweenCarborundum
Company,USA,universal Grinding Wheel Company, UK and the Murugappa
groups,India.

1964-1973 - Revenues Rs. 78 million

 The company started manufacture of super refractories at Chennai,India


 Started brown Aluminium oxide grains plant atEdappally, India
 Started bauxite calcinations facility at Okha, Gujarat, India

1974-1983 - Revenues Rs. 337 million

 Acqusition of Eastern Abrasives Ltd, a coasted abrasives manufacturer in


Kolkata, India
 Establish second bonded abrasives plant at Hosur,near Bangalore, India
 Established MMTCL as a joint venture with Morgan Group plc. For Ceramic
fibres.

1983-1993 - Revenues Rs.1308 million

 Expansion of bonded abrasives plant at Honsur with a modern facility for virtified
grinding wheels
 Founded new silicon carbide plant at Koratty & Refractories plant India
 Started industrial ceramics plant at Honsur, India
 Acquisition of 40% interest in went (India) Ltd., a joint venture with Wendit
Gmbh, Germany for Tools for Stones.

1994-2003 - Revenues Rs. 3150 million

 Build 13 MW Hydel project at Maniyar, Kerala.


 Started second unit at Edappally for manufacture of brown Aluminium Oxide grains
 Acquired a controlling interest in stering Abrasives Ltd, Ahmedabad, India

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 Acquired a controlling interest in cut fast Abrasives Ltd. And cutfast polymers Ltd, a
Chennai based abrasives manufacturer and subsequent mergers.
 Established CUMI America inc., USA & CUMI Australia Pty.Ltd.
 Established a 5.5 MW natural gas based thermal power plant in Nallur in Tamil Nadu,
India through Southern Energy Development Corporation Ltd.
 Acquired Prodorite AntiCorrosives Ltd., a leading player in ant-corrosion engineering.
 Established Cloth processing facility at Maraimalaninagar, Tamil Nad

2004-2014 - Revenues Rs. 22 billion

 Capital investment of about Rs.4 billion for various modernization, expansion / new
product projects.
 Established automated thin wheel facility at Honsur and Chennai, India
 Started modern silicon carbide micro grit plant in chennai, India
 Establishment of state of –the-art coasted abrasives plant at Sriperambudur,Chennai,India
 Establishment of CUMI Middle East & CUMI Canada Inc.
 Modern polymer manufacturing facility near Chennai, India
 Acquisition of 51% holding Foskor Zirconia (pvt)Ltd, South Africa,the world’s largest
manufacturer of Zirconia
 World class facility for wear resistant linear tiles,Hosur,India.
 Acqusition of Thukela Refractories isithebe pvt Ltd, South Africa, a fused minerals
manufacturing facility in South Africa.
 Establishing of ceramic Foam Refractories Plant in Kochi, India in collaboration with
cellaris Ltd, Israel.

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OBJECTIVES

The following arethe 5 major objectives of Carborundum Universal Ltd.

 Integrity
“we value professional and personal integrity above all. We achieve our goals, been
honest and straight forward with all our stakeholders. We earn trust with every action,
every minute,every day”.
 Passion
“we play to win. We havea healthy desire to stretch, to achieve personal goals and
accelerate business growth. We strive constantly to improve and be energetic in
whatever we do”.
 Quality
“we take ownership of ourwork. We unfailingly meet high standards of quality in
both what we do and the way we do it we take pride in excellence”.
 Respect
“we respect the dignity of every individual. We are open and transparent with each
other. We inspire and ensble people to achieve high standard and challenging goals.
We provide everyone equal opportunities to progress and grow”.
 Responsibility
“we are responsible corporate citizens. We believe we can make a difference to our
environment and change livesfor the better.we will do this in a manner that benefits
our size and reflects our humility”.

CUMI ELECTRO MINERALS DIVISION OVERVIEW

Founded in 1900, the INR 300 Billion Murugappa Group is one of India’s leading business
conglomerates. The Group has 28 business including nine listed companies traded in NSE
&BSE. Headquartered in Chennai, the major companies of the group include Carborundum
universal Ltd. Cholamandalam MS General Insurance Company Ltd.,Coromandel International
Ltd.,Coromandel Engineering Company Ltd.,E.I.D. Parry (India) Ltd., Parry Agro Industries
Ltd.,Shanthi Gears Ltd.,Tube Investments of India Ltd., and Wendt (India) Ltd.

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Market leaders in several segments including abrasives, Auto Components, Transmission
systems, Cycles, Sugar, Farm Inputs, Fertilisers, Plantations, Bio-products and Nutraceuticals,
the Group has forged strong alliances with leading international companies. The group has a
wide geographical presence all over India and spanning 6 continents.

Renowned brands like BSA, Hercules, Montra, Ladybird, Mach City, Ball master, Ajax, Parry’s,
Chola, Gromor, Shanthi Gears and Paramfos are from the Murugappa stable. The Group fosters
an environment of professionalism and has a workforce of over 32000 employees.

CUMI is fully vertically integrated from mining and calcinations of bauxite to manufacture of
electro minerals, abrasives and refractories with operations in India, Australia, Canada, Middle
East, Europe and US.

The Electro Minerals Division of CUMI is in the business of Brown Fused Alumina, White
Fused Alumina, Silicon Carbide & High Quality Micro Grits. The division also effects other
Fused and Sintered products for various applications.

3.1 Table showing major alumina production companies and their market
share

COMPANY MARKET SHARE


CUMI 35-40%
Grind well Norton Ltd 30%
Snam Abrasives Pvt.Ltd 10-15%
Orient Abrasives 20%

QUALITY POLICY OF CUMI

Carborundum universal limited Madras India provides quality products and


services to focus on total customer satisfaction. Its achieved through total employee involvement,
supported by proper systems and process.

Awards and ISO Certification


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 CUMI achieved the prestigious commendation award for energy conservation from the
Government of Kerala for the year 997-1998, in the major industries category.
 All the manufacturing facilities of Carborundum Universal are ISO 9001:2000 and ISO
14001 certified for quality standards and environment friendly manufacturing practices
respectively.

FUTURE PLANS

 Implementation of new chemical plant called cellars at Kalamassery


 Up gradation of substation for meeting increased power demand
 Integrated programs for cost reduction and increasing profits.

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PRODUCT PROFILE

MAJOR PRODUCTS AND ITS USES

 Fused products
 Specialty products
 Micro powders

The following is a brief explanation about the various types of electro minerals falling
into these 3 categories, produced by the Electro Minerals Division(EMD) OF
Carborundum Universal Limited.

 Fused products

 Brown Fused Alumina

Brown Fused Alumina is a tough, sharp abrasive which is highly suitable for grinding metals of
high tensile strength. Its thermal properties make it an excellent material for use in the
manufacture of refractory products. This material is also used in other applications like blasting
and surface hardening.

 White Fused Alumina

White Fused Alumina is a highly purity, synthetic mineral, manufactured by the fusion of
controlled quality pure grade Bayer Alumina in an electric are furnace at temperatures greater
than 2000c followed by a slow solidification process. Strict control over quality of raw materials
and fusion parameters ensure products of high purity and high whiteness.

White Fused Alumina is highly friable and hence used in vitrified Bonded Abrasives products
where cool, fast cutting action inessential and also in the manufacture oh high purity Alumina
refractories. Other applications include use in Coated Abrasives, Surface treatment, Ceramic
Tiles, Anti-Skid Paints, Fluidized Bed Furnaces and Skin / Dental Care.

 Silicon Carbide

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Silicon Carbide is a man-made mineral of extreme hardness and sharpness. It is the ideal
abrasive for grinding / sanding materials of low tensible strength such as cast Iron, Brass,
Aluminum, Bronze etc. Its thermal properties make it an excellent medium for use in the
manufacture of refractory products and crucibles.

 Specialty products

 Semi-Friable Alumina

Semi-friable Alumina is a low titania containing brown corundum produced by controlled


smelting of special grade Bauxite in an electric are furnace above 2000 deg C.The lower titania
gives an intermediate toughness between that of White and Brown Regular Corundum and strict
control of this parameter over a narrow band ensures consistent quality.

In Bonded Abrasives, semi friable alumina can be used in depressed center wheels, cut off
wheels, in surface and Cylindrical Grinding of heat sensitive metals, alloys etc.The wheels made
of this material are made best use of where cool and fast cutting is required.

In coated Abrasives, these grains are best suited for use in metal finishing and for sanding of
wood, plastic coatings and paint.

 Blue Fried Semi Friable Alumina

Blue Fried Semi Friable Alumina is a low titania containing brown corundum produced by
controlled smelting of special grade Bauxite in an electric are furnace at greater than 2000 deg C.
The lower titania and an intermediate toughness between that of white and Brown Regular
corundum and strict control of this parameter over a narrow band ensure consistent quality.

 Fused Mullite

Fused Mullite is manufactured by fusing a mixture of high purity Bayer Alumina and pure
Quartz in a tilting type are furnace at a temperature around 2000 deg C. Controlled cooling of the
molten mass ensures a high degree of mullitization characterized by well-defined columnar
crystals.

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 Fused Zirconia

CUMI manufactures Fused Calcia Stabilized Zirconia material for use in the manufacture of
slide gate refractories used in the continuous casting of steel.

 Sintered Alumina

Azotizes a sintered alumina abrasives grain. It is manufactured by our patented state-of-the-art


process through sol-gel technology. This grade of sintered alumina abrasive grain is well known
for its high performance and unique fracture characteristics. It performs better in high pressure
grinning application and also withstands other severe application conditions. It also provides
cooler cutting and longer life of the wheel. All these make this grain a unique choice for the
abrasive manufacturers.

 Zirconia Mullite

CUMI’s fused Zircon Mullite(ZirMul)is manufactured by fusing a mixture of high purity raw
material by a unique process. The fused solidified ZirMul is crushed and graded to custom sizes
in a state of the art facility.

CUMI HEAT ZirMul is used in application requiring high resistance to environmental corrosion
and a low coefficient of thermal expansion like refractory shapes requiring resistance to molten
slag and molten glass ceramic pressure casting tubes etc

 Nebulox

Nebulox ultra light porous insulation refractories offers very low thermal conductivity for high
temperature applications up to 1700 degree Celsius. Produced from pure raw materials through a
patented technology, Nebulox products are free from fiber and hence safe for health and
environment. The unique porous structure offers excellent thermal shock resistance over wide
temperature range and can be easily machined to suit the specific applications.

 MICRO POWDER

Brown fused alumina – micro grit

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Brown fused alumina micro grit are produced by the grinding and the classification of selected
Macro grain feed stock in an advanced milling and classifying technology. This ensures an iron
free product of narrow particle size distribution with a high repeatability .

Major application include

 Bonded abrasives and coated abrasives


 Lapping and micro blasting application
 Surface hardening
 Brake linings

1.White fused alumina- Micro Grit

White fused alumina are produced by the grinding and classification of selected macro grain feed
stock in an advanced milling and classifying facility. This ensures an iron free product of narrow
particle

Size distribution and high whiteness

Major applications include


 Bonded abrasives and Coated abrasives
 Floor/ wall laminates
 Thermal spraying
 Lapping and micro blasting applications
 Super refractoriness, ceramics and tiles
 Brake linings

1.Semi Friable Alumina – Micro Grid

Blue semi friable Alumina Micro Grits are produced in an advanced milling and classifying
facility using selected macro grains as feedstock.

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These high quality powders are used in the manufacture of Bonded Abrasives and Coated
Abrasives.

2.Blue Fired Semi Friable Alumina – Micro Grit

Blue Semi Friable Alumina Micro Grits are produced in an advanced milingand classifying
facility using selected macro grains as feedstock. The fine powder is further heat treated at a high
temperature in a specially designed kiln to build predictable toughness characteristics.

These high quality powders are used in the manufacture of Bonded and Coated Abrasives.

 Silicon Carbide Powers – Micro Grid


 Silicon Carbide Micro Grits are produced by milling of selected and cleaned macro grain
feedstock.

Major application include:-

 Bonded abrasives
 Coated abrasives
 Super finishing stones
 Lapping
 Silicon wafer slicing
 Brake Liners
 Diesel particulate filters

Thermal spray powders- Micro Grits

CUMI products pure Alumina, Alumina – Titania Composite, Pure Chromia Powders for thermal
spray and plasma spray applications.

The closely controlled Chemical Composition and particle size distribution are instrumental in
producing uniform high quality ceramic coatings. The dense and rounded particles ensure free
flow of the powders.

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ORGANIZATIONAL STRUCTURE

An organizational structure refers to the determination of organization system of the enterprise. It


determines the program and the procedures by which the administrative relations of an enterprise
are defined and established. No activity of the organization can go out of this structure. As the
policy of the enterprise determines the limits within which the enterprise has to work. In the
same manner organisation structure determines and defines the shape and size of the enterprise
according to which the administrative and organizational decisions have to be taken. It is also the
frame work of activities of the enterprise , it may also be considered as the map of the
organisation that deal with organizational arrangement.

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Managing Director

Vice President EMD

GM GM AGM AGM Sr. Mgr. HR AGM Mfg


Marketin Technical EDA Accounts
g
Technical
M AGM Sr. Sr. Manager
Sr.Mgr. EDA Manager Deputy
Marketin Technical Manager Accounts Manager
g

Manager Junior Manager Junior Junior Manager


Marketin officer Supervisor supervisor
g

Deputy Staff Deputy staff Staff Deputy


Manager Manager
Manager

Junior Executives
Officer Executives

Staff Junior
officer Junior
Officer

Staff and
Operatives Staff and
Operative
s

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FUNCTIONAL DEPARTMENTS OF CUMI

Following are the departments of CUMI

 Human Resource Department

 Production Department

 Commercial Department

 Shipping Department

 Accounts Department

 Maintenance Deaprtment

 Quality Control Department

 Research and Development Department

 Systems Department

 Marketing Department

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HUMAN RESOURCE DEPARTMENT

Chart showing Human resource departmental hierarchy

Sr. Vice President

Sr. Manager HR

Sr. Manager HR

Deputy Manager HR

Supervisor HR

Staff

HR is always has been one of the focus points in business strategy. HR strategy is
carefully linked to the vision, mission and overall business strategy of the company.In CUMI,
the HR department responsible for putting together the human resource plan based on the
corporate plan. It is responsible for recruitment and selection of employees, transfers, payroll
processing, canteen and legal proceeding.

HR planning is done with the 3+1+3 business plan (3-past three years performance,
1- current year performance, 3- forecast of future three year performance). The company
evaluates oh HR requirements estimated by a series of analysis. The basic objective of this
department is effective utilization of HR, desirable working relationship among all employees
and maximum individual development. The most appreciating feature of CUMI is its profound
flexibility in

communication between any subordinate and superior. This contributes to a friendlier


corporative environment.

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HR Strategy

CUMI’s business strategy is evolved from Domestic & Global market trends, Economic
Growth, Competitor Analysis and Customer Industries Growth plan. HR strategy is linked to
business strategy and facilitiates the organisation to achieve the objective by building people
capabilities.

CUMI’s concern for people has been driving force for the growth of the organisation of the
last 5 decades. The sustained growth over the past several years attributed to the knowledge, skill
of the people and technology. HR has always been one of the focus points in the business
strategy. The HR strategy is carefully linked to the Vision, Mission and overall business strategy
of the Company.

HR Values

 Concern for people


 Integrity
 Customer Orientation
 Team Work
 Continuous Improvement
 Execution Excellence

HR Principles

 Whether workmen or management staff, employees are employees. They are not different
blocs, but two faces of the same coin
 Unions are treated with respect and are made partners in the progress
 Harmony and peace cannot be at the cost of dilution of organization ethos. Fairness and
Firmness will govern all employee relations.
 Communication and dialogue would be the assence of managing relationships
 A proactive approach and a state of mental and physical preparedness would help in
managing unpleasant surprises

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HR Functions

 Recruitment and selection.


 Preparing appointment letters.
 Arranging training and development programmes for employees.
 Keeping all statutory obligations.
 Collecting data from all other factories to enable them prepare details from long term
negotiation.
 Informing the concerned department about the change of factory rules and other related
acts.
 Maintaining strict discipline
 Making daily attendance of the employees, pay the over time, this department also does
all correspondence relating to the ESI AND PF.
 Running canteen.

Recruitment and Selection

In CUMI recruitment and selection is based on integrity, competency and the ability to
work in team. Company take value fit individuals with group into consideration are placed under
one year probation in which the superior access his/her abilities, team work and performance in
the pressure situations. But successful completition of probation does not imply on assurance for
permanent employment. Based on experience and qualification selection of employees is done at
Head Office, Chennai. The management gets peoples through campus recruitment and personal
reference.

Linear managers are expected to prepare job description and job specification in respect
of job to be filled, HR department is expected to oversee and ensure proper compliance with
statutory and organizational requirement and policies. The recruitment process is three tier
method-direct, indirect, and third party. The source of recruitment included both internal and
external. The internal source includes more preferred by the company. The management chooses
external sources kike campus recruitment, personal reference, etc

26
Chart showing the selection procedure CUMI

Aptitude Test

Group Discussion

Personal Interview

Medical Checkups

Final Interview

Induction:

The workers who are recruited and selected are given an individual program, introducing them
to the plant, their work and to the concerned department. For managerial personal, the induction
method used is apprenticeship-training method, immediate supervisors trains employees. For
workers shop floor training is given. The three levels of induction at CUMI are;

 Corporate induction:- Mainly for corporate personnel, given from the Head Office,
Chennai.
 Induction across unit:- Given for the management staff across the unit in order to know
the various dynamics exists in groups.
 Department/Functional unit induction:- That is given both management and non
management staff, that is given by each department managers or supervisors.

27
Performance Appraisal

Methods used for performance appraisal are supervisory rating and self-rating. Management
staffs are appraised under a new method called score card, where employees are rated concerning
their work. The performance appraisal for managers is called policy development.

Training and Development

The need for training id determined by identifying the gap between present performance of
an employee and the desired performance. In CUMI it is done on the basis of skill matrix.

Chart showing Training need identification Procedure

Business Plan / Long term strategy

Policy Development

Skill matrix for operatives/competency


requirement for managers

Competency gap

Training need identification

Skill Matrix

The objective of skill matrix is to have a scientific analysis of skill level. The aim is that
technology changes fast and now technology demands new skill. Therefor, this helps the
employees to progress the career plan. Skill matrix measures the certain aspects of an individual/
personal characteristic, discipline, skill work performance and participation in management. The

28
skill matrix is to find out the attitude of individual towards work and skill of the person to
perform. It is to identify scientifically the skill level existing in the organisation and to develop
the skill level patterns to meet the business requirements. In Skill matrix , the department head
and the employee rated based on certain parameters. In rating the performance, it is classified
into three- good performance, average performance and the poor performance.

Training for management staff

 Adevanced TQM orientation.


 Negotiation skill.
 Out bound training.
 SHE programs.

Training for non-management staffs

 Skill improvement training.


 Multi skills.
 Process orientation.
 Energy management conversation.
 TQM orientation.

CUMI’s policy on HR planning

CUMI will ndeavour to ensure effective staffing, the right person for the right position. We
would also attempt to develop and optimize the internal human resource and its potential.

 Recruitment policy

CUMI will recruit based on integrity, competency and the ability to work in team. It
would also endeavour to select individuals with leadership potential, customer orientation
and quality focus. Above all, CUMI also take the value-fit of the individualwith the group
into consideration.

 Policy and carrier planning

29
CUMI believes that it is their responsibility to develop the employees to their potential so
that the future challenges could met with the existing talent.

 Performance Management System

The performance management system is based on the Balance Score Card.

 The balance score is the culmination of the business plan and is the complete
strategic map which identifies the strategic indications and trust area of business,
the balance score card is the authentic document approved by the Murugappa
Corporate Board.
 Based on the approval balance score card and functional score card are evolved
from the above. These plans are reviewed on a monthly basis against the plan.
 The feedback and the learning from the monthly reviews and the course
corrections are incorporated.
 The performance management system is online with policy development.
 The system is designed to capture the objectives & measures in the policy
development table drawn up for the current year.
 The objective and measures are to be clear cut, specific and quantifiable.
 The appraiser and appraise will jointly discuss and arrive at the best regrouping
possible for the objectives.
 In the discussion, the appraiser and the appraise agree on action plans including
resources and support. This summarized and signed off by the appraiser and
appraise.
 Control charts are maintained at agreed frequently and reviewed.

 Policy Development
 Evolve long term policy
 Identify linking long term strategy
 Define objective
 Clarify of methods
 Pick control charts

30
 Deploy
 Establish review mechanism
 Corrective step

 Compensation
CUMI believes that compensation should be based on the individual performance, is
classified through a quantifiable objective measures.

PRODUCTION DEPARTMENT

Chart showing production department hierarchy

Sr. Vice President

AGM (Manufacturing )

Sr. Manager (BFA) Sr. Manager (WFA)

Furnace Quality control Grain Processing & sleeping

supervisor Supervisor supervisor

Jr. Supervisor Jr. Supervisor Jr. Supervisor

Operatives operatives operatives

31
Electro Minerals Divisions (EMD) at Edappally has two plants. Plant 1 with BFA
(Brown Fused Alumina) and plant 2 details with WFA (White Fused Alumina)

32
Chart showing Production Process

Raw Material Storage

Raw Material Handling

weighing

Raw material mixing

furnacing Shell cooling

Pig cooling

Breaking

Sledging Scrap Recycling

crushing

Magnetic separation Weighing Crude forwarding

33
Production Capacity

Production capacity of plant 1 is 1000 tons per month and of plant 2 is 850 tons per
month. Plant 1 BFA, which is used the raw material for grinding wheels, crane paper etc.
Calcined Alumina, coke and iron boring are the raw material used for the production of Brown
Fused Alumina.

Plant 2 produces WFA, which is used as virtified abrasive and highly purity Alumina
refractory. Calcined alumina electrodes & electricity are the raw materials used for the
production of WFA. Production process of both the WFA and BFA are the same.

Raw materials are taken from the go down through elevator to the storage bin. The raw
materials for producing Brown Fused Alumina are Calcined alumina, iron boring, char fines and
scrap etc. In the case of White Fused Alumina, the raw material are taken through blender were
all these are blended for 6 minutes. From blender through elevator this mixture is stored in bins
out of which 11 bins are carried to furnace as 4:3:3 ratios. For producing BFA, the raw materials
are furnacing at 2150c.

In the case of WFA, the raw material is furnacing at 1450c for 6hours. Then the furnace is
cooled for 3 hours. Then it is rolled out and the shell is nremoved with the help of a carne and
‘pg’ (pig is used nthe nstate of alumina) the pig is shifted to pig yard and allowed to air cooling
for 5 days. From the pig yard the pig is taken to the break yard.

In the break yard the pig is broken by dropping an iron ball weighing about 2.5 ton, which is
lifted with the help of electromagnet. The pig is thus broken and crushes.

From it, the good parts for further processing like the crude are selected and the remaining
scrap is selected for using it as a part of raw materials. The crude is then fed into the jaw crusher,
which breaks it into small pieces. The crude is ten conveyed to the grain processing plant. One
pig gives 8-9 tons of Aluminum Oxide.

The basic operation taking place in grain processing are crushing and grading. The sizes 4
inches are the inputs to grain producing plant. In the first stage the crushers crude is passed
through 36 tons crusher where its size is minimized to 0.75mm. After this a series of primary and

34
as well as secondary roll crushers taken place. From the secondary roll crusher the grains are
passed on scalper.

Grains used for bonded and refractory are then passed through can any mills for shaping the
grains with the help of magnet the grains are passed through Grades, were the grains are
seperated into different sizes and collected into bins. Chart showing Grain processing Unit

Silo

Jaw Crusher

Roll Crusher

Group Grading

Individual Grading

Final Material

Quality Checking

packing

For manufacturing virtified grains are further passed through a high intensity magnet
separation. The grains are passed to deck grader where the grains are separated and
collected into bins. Then the quality is checked and packing is done as per customer
specifications.

35
Work Shifts

The company works in 3 shifts:

1. 12 AM – 8 AM (Shift A)
2. 8 AM – 4 PM (Shift B)
3. 4PM – 12 AM (Shift C)
4. 9 AM- 5 PM (General Shift D)

Application of Products

 Bonded Abrasives: BFA is used for manufacturing of grinding wheels, which are
used on metal of high tensile strength and in paper and clothes. Bonded abrasives
industry is mainly meant for auto ancillaries, bearings and other engineering
industries.

 Coated Abrasives: The coated abrasives industry makes parts for automobiles,
hand tools, sanitary fittings, wood and leather pads

36
COMMERCIAL DEPARTMENT

Chart showing Commercial departmental hierarchy

Sr. Vice President

AGM (manufacturing)

Sr. Manager (Commercial)

Supervisor

staff

The main function of this department is procuring the raw materials and other required
materials for the company. Commercial departments invites quotation from various suppliers and
make a vendor list on the basis of some criteria basically based on their previous experiences,
quality of the product, delivery speed and price which is called vendor rating.

The department issues materials as per the order given by the concerned departments through
Material Requisition (MR). If the required material is out of stock, commercial department head
invites quotation is chosen and the purchase order is placed. On the arrival of the material, it is
checked and issued to the concerned department.

37
Chart showing the Purchase procedure

Purchase Request

Authorization

Quotation

Take latest Quotation

Purchase Order

Material Collection

Payment of Material

Purchase request:

If the departments require any materials, they will place a material requisition to the commercial
department. If the required material is not in the store, the store manager places a purchase
requisition (PR) to the plant manager.

Authorization

Purchase requisition is checked by the plant manager and approved for the quotation.

Quotation:

Commercial department invites the quotation from the vendors.

Takes the least quotation:


38
Commercial department selects the least quotations.

Purchase order :

Commercial department makes the least quotations with the consideration of their previous
experience, quality of the product and delivery speed then placing a purchase order to the
appropriate vendor.

Material collection:

Where the materials are reached to the company, the store manager inspects the materials and
then issues to the concerned department.

Payment for the material:

Payments are done by way of cash on the spot of the delivery.

Store

Main raw material is alumina calcined supplied mainly by INDICO, NALCO. The company is
considering purchase from other source also. Every item is attached with a ‘Bin Card’ , which
has UNIX CODE NUMBER consisting of 14 digits. The card has description of the item, date of
receipt, date of supply, balance, signature, remark & stock number.

CUMI has a very good store. In this store, they divide the entire inventory into 3 classes for
controlling the inventory. These are : A-class items, B-class items and C-class items.

A - class items: This class items are very closely related to the production process. They
always keep tight control on this class items because if it not supplied in time it may affect
the production.

B - class items: Although this class items are related to the production. It has not much
importance to the production. They keep moderate control on this class items.

C – class items: This class items are not directly related to the production. They have only
less control over these items. These types of inventory control help to the easily handling of
the materials.

39
In these store, they also follow JIT inventory systems. It means that required material are
purchased only after getting the material requisition, so that it need not kept for a longer
period hence can reduce wastage. As the vendors are very close to the company, they can
purchase materials according to the requirements. Therefore, there is no need for bulk
purchase.

Some of the vendors who supply on time are:

 Goodwill Enterprises
 Rose Bearings
 S N Industries group
 Divya Gas Agency
 Jose Electrical

This JIT inventory system helps to avoid unwanted cost, accumulation of stock and
destruction of materials etc.

40
SHIPPING DEPARTMENT

Chart showing shipping department hierarchy

Sr. Vice President

AGM (manufacturing)

Junior Officer

Junior Supervisor

Workers

Trainees

The shipping department deals without bounded logistics and the shipping of finished goods.
There is 6 permanent staff in this department. Apart from them there are temporary workers and
casual workers.

Order acknowledgement is the main document maintained in this department. It contains

 Pending order report


 Customer details
 Transpot mode
 Bills which are pending

41
For shipping is adopted, everything undertaken as per FEPA standards (Federation of
European Producers of Abrasives). Priority to when it is to be (which customer) given will be
decided by shipping department.

This department is responsible for the packing of finished products. They start
dispatching only after getting the green card from the quality control department. This
department has also the responsibility to determine the no: of casual workers required for the
loading and uploading functions. However there is forklift to do the loading and uploading
functions. This department is also in charge of oreparing invoice.

Then it is packed in various quantities. In every shift 210 bags weighing 50kg
(domestic purpose) and 25kg (Export purpose) is packed. The bags are placed in pallet and
lifted by crane and taken to separates area from were trucks carry it to destinations.

42
ACCOUNTS DEPARTMENT

Chart showing financial department hierarchy

Sr. Vice President

AGM (Accounting)

Manager (Accounts)

Deputy Manager

Junior Officer Junior Officer

Junior Supervisor Junior Supervisor

Duties of the accounts assistants is cash cash transactions, accounts payable, tax remittance,
payments and vouchers, etc. duties of the supervisor are maintaining the trial balance, capital
expenditure and debt management, etc. A responsibility of the accounts manager is making
monthly reports, auditing and fund management etc. AGM (Accounts) has the full
responsibilities of accounts department.

43
Major functions of accounts department

 Keeping Depreciation account.


 Preparing income and expenditure account.
 Preparation of Budget for three years.
 Departmental budgeting
 Prepare management reports
 Coordinating the auditing functions
 To prepare business plan 3+1+3

Capital Structure

CUMI’s capital structure is consist of equity share capital, preference share capital,
reserves and surplus, long term loans, deferred tax liability.

Source of Funds

CUMI’s main source of fund is from corporate office (chennai). Issuing of share and short
term loans from the company’s consortium of banks like SBI is the other source of fund.

Accounting Policies

The company policy has a special accounting policy, which is the basis of the financial
statement. It is accordance with the accounting standards issued by the institute of Chartered
accounts of India.

44
MAINTENANCE DEPARTMENT

Chart showing maintenance departmental hierarchy

Sr. Vice President

AGM (Production)

MANAGER (Maintenance)
)

Maintenance Operatives Maintenance Operatives


( mechanical) (Electrical)

Main function of Maintenance department

 Repairing works.
 Cleaning works.
 Maintenance according to needs

The main responsibilities of this department are to ensure that no interruption occurs in the
production process. For this equipment should be maintained properly. For this purpose, their
function can be classified into two;

1. Preventive maintenance
“Preventive is better than cure” CUMI believes in his proverb. Every Sunday
maintenance operators will inspect and does the maintenance work in the whole plant.
2. Break down maintenance
If any breakdown occurs, the concerned department will send a complaint to the
maintenance department with the help of personal computer (ERP System RAMCO
No:2). Then the maintenance department head issues a work order pending on man
power available.

45
QUALITY CONTROL DEPARTMENT

Chart showing Quality Departmental Hierarchy

Sr. Vice President

General Manager (Technical)

Manager (quality assurance)

Quality Inspectors (chemical & physical)

Trainees

CUMI is renowned for its quality,not only in electro minerals but also in all their products such
as abrasives and ceramics.It was proved during the Chinese invasion of the market some years
back when the Indian economy was opened to the outside world.The Chinese came out with low
quality and cheap products did not survive for long but CUMI withstood all the problems and
went on to become worlds best seller.

Quality Policy of CUMI

“We shall pro-active meet customer expectation by providing quality products and services”.

This shall be achieved through

46
 Total commitment of the management is implementing an effective quality control
system.
 Contributed technological development to fulfill changing need of customers.
 Total employee involvement for continuous improvement.
 Enhancing employee competency through education and training.
 Building mutually beneficial relationship with suppliers.

ISO Certification

CUMI has got ISO 9001-2000 series certification for quality assurance in
design,development,production,installation and servicing.This year and company is going for
ISO 14001 certification for environmental affairs.This is given for companies which do not cause
any damage to the environment.

Quality is checked during

 Raw materials are taken for production.


 Mixing of raw materials
 Furnacing
 Pig yard crushing
 Before packing the final products

There are two types of laboratories in checking the quality,they are

 Chemical lab
They check the chemical properties such as gravity,percentage of weights of each
material of product,fusion level and contribution of product etc.
 Physical lab
They check the free iron,HM(Hand Magnet),bulk density ans size analysis.

Final checking of the product is done in the bin.Quality analyzer checks each bin and puts a bin
card.If the bin card colour is green that bin contains the product which accepted and it goes to the
packing section.If the bin card colour is red,the product is rejected and if the bin card is
yellow,they resrve that product for recycling.

47
CUMI follows Total Quality Management(TQM) system for sustaining and improving the
quality of the product. The TQM values followed by the company are ;

 Customer first attitude


 Total involvement
 Emphasis on the leadership
 Internal customer support
 Continuous improvement
 Improving quality of life of the employee and society.
 On time delivery
 Excellence in all aspects
 To reduce total cost.
 To reduce wastage in the producton and improve productivity

FIVE S

SEIRI, SEITON, SEISO, SEIKETS, SHITSUK are the series of steps taken for
ensuring proper segmentation.
 SEIRI(sorting)
 It is scoring between wanted and unwanted things in selected areas and
region.
 Dispose of unwanted items.
 Clear off walking
 SEITON (Systemaizing)
 It means a place for everything in its place.
 SEISO (Shining)
 It deals with the job of thoroughly clearing the work place, machine
and tools after use.
 Identify most cause of loud noise, vibration, heat, building equipment
and take remedial action.
 SEIKETSU (Standardizing)
 Develop standards

48
 Establish checking procedure
 Creating visual control
 Devise ways and means to expose problems
 SHITSUKE (Self-discipline)
 Develop action plan for maintaining the set standards.
 Give unambiguous advice, instruction in every work associates.
 Carry on 5’s activity as a matter of habit and enthuse others to practice
5’s.
 Conduct self-audit.

Quality circle:

Quality circle is a small group of employees who meet regularly for solving different problem
with quality, efficiency and safety.

SGA (Small Group Activities):

It is an interdepartmental activity mainly for solving quality problems which includes both
management staff and employees.

CFT (Cross Functional Activities):

It is the management level activities mainly for solving the problem in all departments of the
company.

49
RESEARCH AND DEVELOPMENT DEPARTMENT

Chart showing Research and Development departmental hierarchy

Sr. Vice President

General Manager

Sr. Manager (R&D)

Supervisor Manager New Products

Operatives

CUMI has limited has a good R&D department, which is engaged in the development of new
products and the existing products. R&D is done on the basis of the market demand, research and
customer specification. Moreover, the company policy regarding R&D is that 6% of its scales
should be from new products.

The R&D has full-fledged pilot plant with fascilities of fusion, crushing and grading. This
section continuously tries to improve the product quality, its application, production process, etc.
This department always interacts with various universities in India and abroad for products
development.this department also gives the opportunities to different institutions to do project
works.

The R&D wing comes out with constant innovations and up gradations of products, which makes
the company a world leader in grinding technology. Its core competence provides total grinding
solution which enables maximum grinding efficiencies and reduced cost for customers.

50
SYSTEMS DEPARTMENT

Chart showing systems department hierarchy:

Sr. Vice President

Deputy Manager

System Operatives

System Trainees

RAMCO virtual works, a Chennai based software company provides ERP solution.

The company uses ERP because it provides:

 Integrated market information


 Better handling of raw materials
 Better process control
 Reduce the time and cost
 To record the details of HR
 Integrated financial information

The company’s entire work, raw materials to marketing of finished good is influenced by
the ERP. If any department is facing any problems, that information will spread to the
entire organisation and then the concerned person or department will approach and solve
that problem within the shortest period. These are done with the help of ERP. CUMI has

51
internet, which is easily accessible. The type of network is used by the company is star
network. Office automation facilities are provided by RAMCO virtual works. It is
Chennai based and perform the activities like payroll service, shipping and updates etc.

Types of server

 Exchange server for mail transcription.


 Front-end is based on Chennai and the Back-end in CUMI, Edappally.
 Internet connectivity- Broadband 256kbps
 Types of the operating system that are used by the company are Windows XP,
and Windows 7.

Security systems:

 E-scan:- that acts as antivirus


 Fortiguard:- This blocks unwanted websites.

52
MARKETING DEPARTMENT

Chart showing marketing departmental hierarchy:

Sr. Vice President EMD

GM (Sales & Marketing)

AGM (Sales& Marketing AGM (Business development)


exports)

Manager
key Deputy
Manager Manager
accounts Manager
(Customer (Exports)
Manager (production
&
sales Management)
marketing
Eastern
service)
Region

Manager
sales-
Jr. Officer Executive west
(customer (Marketing &norther
services) services) -n region

Deputy
manager
sales
southern

CUMI has an excellent of marketing executives spread all over the country to facilitate large
sales and customer service. The company has a traditional marketing wing, which look sales and
services operations. The team also conducts market analysis, which helps to the management
make correct and important decisions. It also helps making modifications of existing poducts and
introducing new products.

53
The main responsibilities of this department are the following;

 Retaining the regular customers.


 Identifying new needs arising in the market.
 Market expansions.
 Payment follow up.

As a part of marketing research, the sales executives study the requirements of their customer,
both new and existing customers. They collect information from the customer and prospective
customer directly. The first 15 days of every month they do the above mentioned activities and
the rest of the days do the payment of the follow up. There ia a value target and based on this
production is carried out.

Main customers

The main customer industries of the CUMI are:

 Automobile industry
 General metal cutting industry
 Polishing of the metal surfaces
 Marine paints, etc.

The main customer companies are:

 Vishwa vishal
 Mechans in UK
 Milthon
 Indoflogates
 Tata Refractories

BRANDING

CUMI made its brand well known in the industry through continuous hard work and
determination. This was possible because of the following reasons.

 Consistent high quality and reliability

54
 Fair pricing practices transparency
 Relationship management

Distribution

Several steps were initiated visibility and proximately to the customer and also to enhance
capacity for delivering products on time to customers. The company has embarked on a direct
marketing programmed for selected products to make them more cost effective to customers.
Major initiatives in this direction are;

 Setting up experiences centre under the brand ‘CUMI WORLD’.


 A greater emphasis on branding by standardizing CUMI outlets across the country.
 Never delivery mechanism such as automatic vending machines.
 Expanding the concept of ‘CUMI suraksha’ the unique user insurance scheme to more
centres, also setting the first claim under the same.

In addition, the company further strengthened its distribution set up and also cosolidated its
logistics arrangements. Information technology tools are being deployed to facilities better
understanding of dealer’s performance and inventory.

55
BUSINESS PROCESS FLOW
BUSINESS PROCESS FLOW

Raw Material Storage

Raw Material Handling

weighing

Raw material mixing

furnacing Shell cooling

Pig cooling

Breaking

Sledging Scrap Recycling

crushing

Magnetic separation Weighing Crude forwarding

56
3C ANALYSIS

COMPANY ANALYSIS
1. Name of Organization: : CARBORUNDUM UNIVERSAL Ltd

2 .Year of Founding: : 1954

3. Type (Sole proprietorship /partnership/public) : Public

4. Founders : Murugappa Groups

5. No. of Employees : 480

6. Category : Electro Minerals. COMPEITOR


ANALYSIS

You may use the following format for presenting Competitor Analysis;

Name of Very big Big Medium Small Very small


competitors

Grindwell - - - -
Norton 

Orient - - -
Abrasives 

Wendt - - - -

COMPANY MARKET SHARE


CUMI 35-40%

Grind well Norton Ltd 30%

Orient Abrasives Pvt.Ltd 10-15%

57
STRENGTH

 Low cost of production


Company owns mines in Gujarat and also a hydro electric project in Maniyar. This
reduces the cost of processing raw matrials and production.

 Good customer relations


The company treats the customer with respect and concern
.
 Excellence in management of change
CUMI is having a better organisational climate and manage the environment effectively.
The company grows in an accelerated manner with new products and services. CUMI has
the sbility to change according to the circum stances. When the cost of production was
rising, it decided to cut short the cost by reducing labour.

 Self sufficient in power production


It has been found that one of the major problem facing nerw firms are power and its cost
to maintain. CUMI was able to counter that problem to an extend by establishing a hydro
electric plant in Maniyar.

 Efficient R&D department


The company has got a strong R&D department. CUMI has a policy that 6% of total sale
every year should be from new products. R&D enables the company to have an edge over
competition in the new product development.

 Effective working environment


EMD has a very good working environment. It has got professionally managed personnel
department.

 ISO Certification

58
ISO 9001 certification help in obtaining some orders as well as maintaining standard of
the company.

 High capital investment


CUMI has high capital investment. It acts as an entry barrier for the new firms to enter to
this field.

 Knowledge about the market


CUMI has been in the field more than half century. Hence it has deep knowledge about
the market.

 Good safety and welfare measures


The company has to make strict rules regarding wearing of personnnel protective
equipments like safety shooes, helmets, woggles, gloves jackets etc.

WEAKNESS

 Lack ofinsider transportation


The roads within the company are to be developed so that the men and material can be
moved easily.

 Unsatisfactory promotional activities


Promotion is based on the seniority not on performance.

 Lack of pace in financial decisions


As the significant financial decisions are taken at head office at chennai, the speed and
efficiency of the branch is not satisfactory.

 Power failure
The plant entirely depends on KSEB . for power and supply, therefor power failure can
affect the production.

59
 Poor infrastructure and water facility
The salinity of water has to be improved.

OPPORTUNITY

 The company can introduce more of its product in the market.


 The company can produce new and improved products with less labour and advanced
technology.
 More mines have to be found out. Globalisation and liberalisation can make its product
globally acceptable.
 The company can employ the best brains from top business and technical institutions for
better working and management.
 The company can invest more money into the business.
 Foreign acqusitions and merger make it possible to oversee the market.

60
TABLE 4.1

AGE WISE CLASSIFICATION

Age group Number of Male female Percentage


respondents
Below 25 5 5 - 10
26-30 12 12 - 24
30-40 15 15 - 30
Above 40 18 18 - 36

CHART 4.1

Age wise clasification

below 25
26-30
30-40
above 40

Source : Primary data

In the present study figure 4.1 shows, age is one of the important variables. Based on age the
respondents are classified into 4 groups .40percentage of the respondents fall under the
category of age.

61
TABLE 4.2

INJURY RATE IN THE ORGANISATION

Injury rate Number of percentage


employees

Average 10 20
High 9 18
Low 31 62
Total (50) 50 100

CHART 4.2

Injury Rate in the organisation

Average
High
Low

Source : Primary data

According to the above figure majority of the respondents say that there is only low injury
rate in the organization.

62
TABLE 4.3

OPINION ABOUT THE SAFETY LEVEL

Safety Level Number of Employees Percentage


Yes 38 76
No 12 24
Total (50) 50 100

CHART 4.3

Opinion about the Safety Level

Yes
No

Source: Primary data

In the present study figure 4.3 shows, safety level is one of the important aspect.,76
percentage of employees agree that the safety level in the organization is very high.

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TABLE 4.4

EMPLOYEES OPINION ABOUT THE SAFETY EQUIPMENT


PROVIDED IN THE PLANT

Safety Equipments Number of Employees Percentage


Very good 26 52
Good 15 30
Satisfactory 5 10
Dissatisfactory 4 8
Total (50) 50 100

CHART 4.4

Safety equipments provided in the plant

very good
good
satisfactory
dissatisfactory

Source: Primary data

In the present study figure 4.4 shows safety equipments are one of the important aspects , 52
percentage of employees agree that the safety equipments are very good.

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TABLE 4.5

EMPLOYEES INVOLVEMENT IN DECISION MAKING RELATED TO


HEALTH AND SAFETY
Employees involvement Number of employees Percentage
Highly Satisfactory 24 48
Satisfactory 16 32
Average 5 10
Dissatisfactory 5 10
Total 50 100

CHART 4.5

Employees involvement in decision making


related to health and safety

H.S
S
A
D.S

Source : Primary data

In the present study figure 4.5 shows, 48 percentage of the employees highly satisfied in decision
making related to health and safety.

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FINDINGS

 CUMI’s main source of fund from the corporate office (Chennai). Issuing of shares and
short- term loans from the company’s consortium of bank like State Bank of India and
HDFC bank are other source of funds.
 CUMI take suggestions from employees mainly relating to the cost of production. The
better suggestions will be considered by the management and reward properly.
 The performance appraisal method used in CUMI supervisory rating and self- rating.
 The CUMI has been following the KAIZEN Japanese scheme for continuous
improvement in all activities of the business. This scheme means that the quality of the
product and services is determined by its uses, efficiency, and value for the money and
comparison with other products.
 The CUMI can celebrate the birthday of all the employees and it also acts as motivation
technique.
 CUMI uses 5’s to improve the quality it is not only create a clean, healthy and good
working place but also habit for complying with workplace rules and procedures.
 CUMI can take safety measures in order to avoid accident and to hazardous job situation.
 CUMI uses skill matrix to scientifically analyse the skill level of employees.
 CUMI give pensions to their retired employees; the amount will be based on the service
of the employees.
 The maintenance of machines and other parts can be done every Sunday and CUMI also
adopts preventive maintenance to avoid production delays.
 Each department of CUMI is interconnected with the help of ERP systems. Company
uses ERP for market information and better handling and better handling of raw
materials.
 The firm is really committed to its environment. The waste management facility is in
such a way that, it does no harm to the natural environment.
 From the financial analysis of the firm, it has been found out that the firm is making good
profits over the years. This shows the efficiency in managing the funds available to the
firm.

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 CUMI has got ISO 9001-2000 series certification for quality assurance in
design,development, production installation and servicing.
 As it has been found that one of the major problem facing new firms is power and its cost
maintain. CUMI was able to counter that problem to an extent by establishing a Hydro
Electric plant in Maniyar.

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SUGGESTIONS

 The quality of water inside the organisation should be increased.


 Redressal of day-to-day grievances can motivate employees to be more effective.
Grievances should be settled reasonably, swiftly and transparently.
 CUMI should concentrate on promotional activities of both national and international
market to capture the potential customers. It helps to build reputation and fame to the
company.
 The roads within the company are to be developed so that men and material can be
moved easily.
 The CUMI can give promotion to employees not only on the basis of experience but also
considering the performane of the employees.
 By giving more importance to the factor like skill, motivation and creativity equally that
will rresult in a higher levelof performance, productivity and morale in future. This will
also lead to cost effectiveness and efficiency at it best.
 For the purchase of raw materials, the company must consistently search for areas which
can provide better quality raw materials and should strive to make purchase order to that
region. It should been seen that the cost should be seen the cost should not be higher.
 To form a committee this includes representatives from each departments to provide
continuous motivation or guidance for the employees to come up with more suggestion.

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CONCLUSION

The study explored the structure of CARBORUNDUM UNIVERSAL INDIA, The


various products of CUMI and various departments. The study intended to represent a
generalized snapshot of the organisation, the result of the study gives brief information
about the structure and functioning of various departments. The employees of all
departments are well aware of their duties and responsibilities which bring efficiency in
the overall functioning of the organisation. The SWOT analysis reveal the various
strength, weakness, opportunities, and threats of the firm.

The organisation follows an informal way of dealing with the employeesand this has
benefited in the low attrition rate. This Improves the commitment of the employees. The
departmental functions according with the best management practices possible and this
reflects in the steady growth of the company. Latest technology is also implemented
swhere ever possible. This has enhanced productivity because of the efficient
performance of all the departments; company has never faced a loss from its starting of
the business in 1954. Still the company does not have many competitors. Carborundum
universal ltd is one of the leading manufacturesin the field of abrasives.

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