CHAPTER 1

INTRODUCTION AND INDUSTRY PROFILE [PESTEL & FIVE FORCES]

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 CHAPTER 1

1. INTRODUCTION AND INDUSTRY PROFILE [PESTEL & FIVE FORCES]

1.1 INTRODUCTION:
Organizational Studies is an interdisciplinary course of study focusing on administrative, economic,
political, psychological and sociological factors that affect cooperative human systems. A major in
Organizational Studies emphasizes an understanding of how organizations operate, how they affect society
and how they change. Students are encouraged to design a specific thematic focus to structure the depth of
their study.

Students interested in public administration, business administration, public health administration,

organizational behaviour, industrial psychology, labour, or sociology of work may find this program an
appropriate preparation for either career or graduate work in these areas.

Basically, an Organization in its simplest form is a person or group of people intentionally organized to
accomplish an overall, common goal or sets of Goals. Business Organizations can range in size from one
person to tens of thousands.

All organizations have a management structure that determines the relationships between functions and
positions, and subdivide and delegate roles, responsibilities, and authority to carry out definite tasks.
Organizations are open systems, i.e. they affect and get affected by the environment beyond their
boundaries.

Organization is the process of identifying and grouping work to be performed, defining and delegating
responsibility and authority and establishing relationships for the purpose of enabling people to work most
effectively together in accomplishing objectives. The work of each and every person is defined and authority
and responsibility is fixed for accomplishing the same.

Basically, Organization refers to a collection of people, who are involved in pursuing defined objectives. It
can be understood as a social system which comprises all formal human relationships. The organization
encompasses division of work among employees and alignment of tasks towards the ultimate goal of the
company. It can also be referred as the second most important managerial function that coordinates the work
of employees, procures resources and combines the two, in pursuance of company‘s goals.

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1.2 PRIMARY OBJECTIVES:

The primary objective of the study is to measure the effectiveness of communication prevailing in the
organization.

1.3 SECONDARY OBJECTIVES:

The secondary objectives of the study are:

 To analyze the interaction among various levels of management.
 To find out the satisfaction level of meetings organized in the organization.
 To analyze the scope for the improvement of existing system.
 To find out the effectiveness of periodical training provided for the employees regularly in the
organization.
1.4 ORGANIZATION STUDY: AN OVERVIEW

The organization study at ―BHARATHI CEMENTS‖ being accustomed to the Organisation structure for a
period of 15 days. This company involves in the production of Cement. The organizational study is a very
good chance for the intern‘s to expand their learning and skills.

The learning in the organization will starts from :

• Raw material extraction to production then to packaging of material.

• In this process the overall departments included.
• It also includes the collection of secondary data.
• Through this project we can expect the following outcomes:
1. Practical knowledge
2. Skills

1.5 NATURE AND SCOPE:

NATURE:

The nature an organization is to observe the division of work, interrelated activities, assigning duties to
employees, decision process etc.

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SCOPE:

• It helps to analyse the interaction among various levels of management.

• It helps to find out the satisfaction level of meetings organized in the organization.

• It helps to analyse the scope for the improvement of existing system.

• It helps to find out the effectiveness of periodical training provided for the employees regularly in the
organization.

1.6 OBJECTIVES:
The following are the objectives formulated to study the organization:

• To understand the relation between theory & practices in management sciences.

• To gain an insight into the function of manufacturing firm.
• To gain knowledge in functional area of management.
• To understand the management functions in the firm.
• To understand industry and sector with regard to the cement industry.
• To apply management models in this study.

1.6.1 METHODOLOGY:
The methodology adopted for this study was, through identifying suitable firms having all functional
areas such as production, materials, inspection, finance, h.r marketing etc.…..

The methodology was to identify the right organization which has the following criteria:
• It must be a registered company.
• The firm must be into a manufacturing of goods.
• Firm must have key functions such as marketing, operations, Finance, H.r,
Logistics, etc..
• The work force should be greater than 1500 employees.

Upon selection of firm the intern has work for 15 working days covering required areas as per organizational
study guidelines Data & information were gathered from both primary & secondary data Primary data
through interactions and discussions. Secondary data through published sources. The gathered data and
information were analyzed subjectively to draw inferences for the accomplishment of set of objectives All
the data, information & analysis were reported appropriately.

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1.7. ORIGIN OF THE INDUSTRY IN INDIA:
A joint venture of Vicat, France with 51% majority stake holding having a manufacturing plant at Kadapa
in Andhra Pradesh. The Company was incorporated on May 12, 1999 as Raghuram Cement and
Minerals Private Limited. The ownership of the company was changed and the company was renamed
later as Bharathi Cement Corporation Limited on August 6, 2008. In April 2010, Vicat SA,
France acquired a majority stake in the company. Later, the name of the company was changed to Bharathi
Cement Corporation Private Limited from September 1, 2010.Bharathi Cement Corporation Private
Limited is a producer of superior quality cement setting new standards in construction and isa subsidiary of
Vicat Group in India.

1.8 INDUSTRIAL PROFILE:

• 1 Cement Plant - 5 MTPA
• Aggregate Quarries
• 1 Laminated Bag Manufacturing Unit
• 1 Concrete Batch Plant
• Operating in 5 South Indian States
• Exports to Sri Lanka
• 30MW Captive Power Plant at Bharathi Plant, Kadapa setting up a new benchmark in the industry by
completing within 18 months from the date of order.

1.9 INTRODUCTION: [Origin of the word Cement]

• The word ―CEMENT‖ is from the Swan ―to cut‖ and originally had reference to store cuttings used in
lime mortar. Then it is logical that in to middle age of the substances known as ―MORTAR‖ which is
now used to the word was commonly called as ―CEMENT‖.
• In correct modern age,cement generally mean the substances which binds the stones or bricks with
which are built and term may be used with respect to any materials serving such a purpose.
1.9.1 PORTLAND CEMENT
• Port land Cement is a finely ground powder, usually grey which when mixed with water hardens and
develops strength primarily because of a large content of hydrous calcium Silicates. There and other
constitutes react chemically with the water by hydration and hydrolysis. The most common raw
materials are lime stone and clay or shell. It is produced by burning at high temperature materials
containing lime, alumina, iron and silica in predetermined proportion to given the desired and
properties.

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 • Normally, Gypsum or its derivatives are added during grinding stage for set control. Portland cements
with special properties are produced by varying the oxide composition and also by adding small
amounts of chemicals agents at the clinker grinding stage or later. When mixed with water alone to
form hard mass. Early investigators advanced divergent theories as to why Portland cement forms a
rigid strong coherent mass when it reacts with water. It has since been established that a colloidal of
high internal surface area is formed. Whatever the extent of direct chemical continuity, it is apparent
that the large internal surface forces may also be involved.
1.9.2 PRODUCTION OF CEMENT:
• Methods of production of cement have changed greatly over the years. It has changed so much that
there old process has no connection with the modern process. Earlier, the fire which was used to burn
the raw materials was done in a fixed place i.e., it was stationer; it could not be moved or rotated.
• After a few years intermittently operated kilns were used. The production was done on a small scale.
The kilns which were used for burning underwent great changes. The most notable was the
introduction of the rotary kilns. In1877 T.R. Crompton obtained a British patent as a rotary kiln for
the purpose was not a success. Fredrick Ransack obtained British and US patents in 1885 and 1886
respectively.
1.9.3 HOW IS CEMENT USED?
• A mixture of cement and water is called heat cement paste, whether fresh or hardened. In some
granting operations, so including oil well cementing. The paste used as such generally; however, it
constitutes the hardening ingredient in mortar or concrete. This Cement paste ordinarily amounts
from 20% to 35% of the volume of the concrete.
1.9.4 STORAGE OF CEMENT:
• Cement should be stored very carefully. That is in huge closed containers that is silos. It is stored in
closed placed to avoid contact with atmosphere. This so because if it gets mixed with the moisture in
the atmosphere. It becomes useless. It can also be stored in storage shed. Cement was previously
packed in gunny bags. But by the time it reached actual consumer half it would have been split over.
This was compounded sealing problem. The bags were sealed with threads. But was not so
• strong. But after the polythene or Plastic bags came into scene the loss has been curtained.

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1.10 MANUFACTURING PROCESS FOR CEMENT:

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1.11 INNOVATION & DEVELOPMENTS IN CEMENT INDUSTRY:
• … Bharathi Cement Corporation Private Limited (BCCPL) is a producer of Superior Quality
Cement has set new standards in the cement business. Bharathi Cement has a 2 production lines with
using state-of-the-art technology having a total capacity of 5 MTPA and is located at
Nallalingayapalli, in Kadapa district of Andhra Pradesh. The company has also 2 subsidiaries:
• Bharathi Polymers India Private Limited (laminated PP bag manufacturing unit) and Bharathi
Rock Products India Private Limited (Aggregates division). It also invested to build a robust back-
end rail and road transport system ensuring the delivery of cement within 24 hours of placing an
order.
• The state of the art technology adopted at the plant consists of Vertical Roller mills of LOESCHE,
Germany for grinding of raw material, coal & cement and pyro processing section supplied by
FLSmidth Denmark.

1.11.1 German Technology: For cement grinding, the manufacturing facility uses the Type 63.3
Vertical Roller Mill, which is the most advanced Vertical Roller Mill from LOESCHE, Germany. With a
capacity of 360 tonnes per hour, this is the world‘s first and largest VRM cement mill.

1.11.2 Robotic Labs: BCCPL has established an Ultra-modern quality control and assurance facility
which provides high quality. It includes:

 QCX/ Robotic Lab

 Cross Belt analyzers for limestone
 Cross belt ash analyzer for coal
 Bruker XRF & XRD
 Auto- Sampling Systems etc.
 Tamper-Proof Packing
 Easy Handling
 Sack is required with valve that facilitates easy filling and self closing operation.
 Brick shape of sack facilitates easy handling, compact storage, and efficient transportation.

Sack is required with valve that facilitates easy filling and self closing operation.Brick shape of sack
facilitates easy handling, compact storage, andefficient transportation.

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1.12 GROWTH AND PRESENT STATUS:

PRESENT STATUS :

Bharathi Cement started commercial production on 28th September 2009. Today, Bharathi is a leading
cement brand and company in South India. Bharathi Cement is of superior quality, the services are of world
class, and the packing is tamper proof. At present, Bharathi Cement operates a 5 million tonnes (MT)
capacity cement plant in Kadapa district of Andhra Pradesh.We were the first cement company in combined
Andhra Pradesh to install an ultra-modern cement plant with quality being controlled by a Robolab to ensure
consistency in every bag of cement.

GROWTH :

 Bharathi Cement Corp. Ltd has commissioned the first phase of its 5 million tonne (mt) cement plant
in Kadapa district of Andhra Pradesh, making the company the newest entrant into an expanding
cement market and adding to concerns of a glut as manufacturers step up production of the building
material.
 The Hyderabad-based Bharathi Cement, in which French cement major Vicat Group holds majority
share, is aiming at strengthening its presence in the western and eastern regions of the country with
new plants and products.
 The company having a strong presence in south India, Goa and Maharashtra, is planning two new
production plants in Vizag and Mumbai in the next two to three years. The two plants can cater to
the demand in eastern and western parts of the country. Reddy, who was here for the launch of its
new ultra-fast multipurpose green cement best suited for cement bricks manufacturing for the first
time in the country, said the company hopes to raise its present market share of 4% in the country by
another 1 % with the new plants and products. We will next come out with environment-friendly
composite green cement which will use less limestone.
 Besides Bharathi Cement‘s 5 million tonne capacity plant at Kadapa, Vicat group owns another
cement unit in Karnataka with 2.75 million tonnes now. The cement industry in the country, which
has been growing at about 5% annually for the last few years, is seeing better prospects in the current
year.

 The growth could increase to 7 to 8% this year probably because the government spending is more as
it is the year. It sells the building material in Andhra Pradesh, Tamil Nadu, Karnataka, Kerala,
Maharashtra and Goa.

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1.13 GLOBAL SCENARIO:

 A host of global cement giants—France‘s Lafarge and Vicat, Switzerland‘s Holcim and Iris firm
CRH—are in talks to acquire a controlling stake in Hyderabad-based privately-held Bharathi Cement
to boost their Indian presence, a person close to the development said.
 Vicat, France: Vicat, France is our majority stakeholder and partner. Vicat acquired Bharathi Cement
partly in April 2010. The partnership is successful due to healthy financing, professional
management team from India, France and Switzerland. The integration is very successful. Sharing of
knowledge and experience benefitted the company and all the customers.
 Limestone Deposits For Bharathi Cement Sterpeticav limestone deposits for bharathi cement
ZCRUSHER crusher details of bharathi cement limestone deposits for bharathi cement limestone
crusher used in kesoram cement factory and crushing machine details of bharathi cement bangladesh
grinding kamgar foundation orgin Cement mill.

1.14 KEY PLAYERS IN THE INDUSTRY:

 The Indian cement industry is the second largest in the world after China, employing in excess of a
million people throughout the country. The cement industry contributes a big deal to the Indian
economy, more so because the construction industry in India relies heavily on the cement industry
for natural reasons.
 The Major players in cement production are Ambuja cement, Aditya Cement, J K Cement and
L & T cement. Apart from meeting the entire domestic demand, coming to Nationwide players in
cement production are Ultratech cement, Shree cement, Dalmia cement, Orient cement, Birla
corp from meeting the India wide or Nationwide.

1.15 MARKET SCENARIO:

 Cement industry sees about 10 to 18 per cent growth in demand in Telangana and Andhra Pradesh
during the next two to three years due to various heavy projects being undertaken by the respective
governments. We believe that AP and Telangana should grow anywhere between 10 to 18 per cent. It
would be a good double digit growth over next two to three years. This is in terms of demand which
indicates sales. Tamil Nadu we expect it to be 5 per cent to flat. Kerala would also see a similar
demand. Karnataka we expect it to be anywhere between 2 to 5 per cent. Key demand drivers for the
industry are individual house builders and government initiatives.
 Cement Industry in South India in general and AP and Telangana, in particular, is facing a huge
capacity overhang with an installed base of around 150 million tonnes and a demand of only around

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 60 MT in South India and an additional 20 MT is going to neighbouring markets like East and
Western India.Due to the demand issues overall average capacity utilisation of the industry is sub 60
per cent and there has been high volatility in the pricing,the industry representatives said adding the
prices may vary from time to time, at times weekly, indicating a perfect .competition among players.
 The industry vehemently denies the allegations of cartelisation by saying that the market reflects the
highly competitive nature. Industry expectation was that GST rate would have been in the lower slab
than current 28 per cent considering that it is a core sector. The company launch of its new ultra-fast
multipurpose green cement best suited for cement bricks manufacturing for the first time in the
country, said the company hopes to raise its present market share of 4% in the country by another 1
% with the new plants and products.

1.16 PESTEL ANALYSIS :

PEST analysis is a useful tool for understanding the big picture of operating and takes advantage of
opportunities.
Pest analysis includes political, environmental, social and technological factors which affects both the
companies as well as industry.

 POLITICAL FACTOR:
The price of cement is primarily controlled by the coal rates, power tariffs, railway tariffs, freight, royalty
and cess on limestone. Interestingly, government controls all of these prices. Government is also one of the
biggest consumers of the cement in the country. Most state governments, in order to attract investments in
their respective states, offer fiscal incentives in the form of sales tax exemptions/deferrals.
 Political stability and importance of Cement sector in the country's economy.
 Level of corruption - especially levels of regulation in Industrial Goods sector.
 Bureaucracy and interference in Cement industry by government.
 Legal framework for contract enforcement

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  Intellectual property protection
 Trade regulations & tariffs related to Industrial Goods
 Favored trading partners
 Anti-trust laws related to Cement
 Pricing regulations – Are there any pricing regulatory mechanism for Industrial Goods
 Taxation - tax rates and incentives
 Wage legislation - minimum wage and overtime
 Work week regulations in Cement
 Mandatory employee benefits
 Industrial safety regulations in the Industrial Goods sector
 Product labeling and other requirements in Cement.

 ECONOMIC FACTOR:
The industry is on the boom, with a lot of government infrastructure and housing projects under
construction. The export segment of the industry is expected to grow again on account of various
infrastructure projects that are being taken up all over the world and numerous outstanding cement plants
coming up in near future in the country.
 Government intervention in the free market and related Industrial Goods
 Exchange rates & stability of host country currency.
 Infrastructure quality in Cement industry
 Comparative advantages of host country and Industrial Goods sector in the particular country.
 Skill level of workforce in Cement industry.
 Education level in the economy
 Labor costs and productivity in the economy
 Economic growth rate.
 Discretionary income
 Unemployment rate
 Inflation rate
 Interest rates

 SOCIAL FACTOR: The cement industry in India consists of both the organized sector and the
unorganized sector. Organized sector comprises of the well-known cement manufacturing
companies while the main players of the unorganized sector are the regional and local cement-
producing units in various states across the country.
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  Demographics and skill level of the population
 Class structure, hierarchy and power structure in the society.
 Education level as well as education standard in the Bharathi cement industry
 Culture (gender roles, social conventions etc.)
 Entrepreneurial spirit and broader nature of the society. Some societies encourage entrepreneurship,
Attitudes (health, environmental consciousness, etc.)
 Leisure interests

 TECHNOLOGY FACTOR:
The Government of India plans to study and possibly acquire new technologies from the cement industry of
world. The government is discussing technology transfer in the field of energy conservation and
environment protection to help improve efficiency of the cement industry. Cement industry has made
tremendous strides in technological up-gradation and assimilation of latest technology. At present 93% of
the total capacity in the industry is based on modern and environment-friendly dry process technology.
 Recent technological developments by Industry & competitors
 Technology's impact on product offering
 Impact on cost structure in Cement industry
 Impact on value chain structure in Industrial Goods sector
 Rate of technological diffusion

 ENVIRONMENTAL FACTOR:

Different markets have different norms or environmental standards which can impact the profitability of an
organization in those markets. Even within a country often states can have different environmental laws and
liability laws.Before entering new markets or starting a new business in existing market the firm should
carefully evaluate the environmental standards that are required to operate in those markets. Some of the
environmental factors that a firm should consider beforehand are:

 Weather
 Climate change
 Laws regulating environment pollution
 Air and water pollution regulations in Cement industry
 Recycling
 Waste management in Industrial Goods sector

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  Attitudes toward ―green‖ or ecological products
 Endangered species
 Attitudes toward and support for renewable energy

 LEGAL FACTOR:

In number of industries, the legal framework and institutions are not robust enough to protect the intellectual
property rights of an organization. A firm should carefully evaluate before entering such markets as it can
lead to theft of organization‘s secret sauce thus the overall competitive edge. Some of the legal factors that
consider while entering a new market are:

 Anti-trust law in Cement industry and overall in the country.

 Discrimination law
 Copyright, patents / Intellectual property law
 Consumer protection and e-commerce
 Employment law
 Health and safety law

1.17 VOICE OF THE INDUSTRY:

PERFORMANCE CULTURE:
Our aim is to bring culture of performance orientation as well as aligning the employee‘s performance with
business objectives through ―Performance Management System‖. This platform gives us an opportune to
acknowledge the contribution of employees for their good performance and bring in more accountability at
each level in organization. Performance Management System (PMS) is a vital tool to review performance
and develop employees. PMS is effectively used to help set performance expectations and monitor them
through interactive dialogues. The focus is on helping achieve set targets.
EMPLOYEE ENGAGEMENT:
Our HR systems are aimed at employing, developing and retaining best talent through employee
engagement at all levels. We strongly believe organizations success is sustainable only when it‘s all
employees as well as channel partners are engaged and works towards common goal.

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1.18 PORTER’S FIVE FORCES ANALYSIS:

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a. BARRIERS TO ENTRY(HIGH):

• RAW MATERIAL: Cement being a high bulk and low value commodity, outward freight accounts
for close to one fifth of the total manufacturing cost. In addition, for every tonne of cement produced,
close to 1.7 tonnes of raw material (including coal) is transported.
• LOCATION: In this scenario, the location of the cement plant becomes crucial. While deciding on
the plant location, there is a trade-off between proximity to raw material sources and proximity to
markets. . Access to limestone reserves (key input) also acts as a significant entry barrier. It is
necessary to locate the plant close to the mineral deposits, so as to minimise raw material assembly
costs. Given that 1.4-1.5 tonnes of limestone are required per tonne of clinker, locating the plant
along the limestone deposits is the logical corollary.
• COMPETITION: High level of competition in the cement industry. The Indian cement industry is
weakly oligopolistic in nature on a national level with top 6 firms among more than 100 firms
capturing 55% of the cement market. This nature has been consistent through the years.
• COST: High capital costs and long gestation periods. a new cement works producing 1m tonnes a
year, the smallest worth building, costs around $200m. It is much cheaper for an incumbent to
expand.

b. BUYER POWER (LOW): This refers to the effect customers can exert on a particular industry.
In the cement industry, the bargaining power buyers is low because the majority of buyers are bulk
buyers. For example, big construction firms, corporate who want to build their own offices, etc. These
buyers can bargain with the cement companies. However, their bargaining power is not very high as their
purchases form a small part of the total production of the companies. Hence, they cannot exert much
influence on the manufacturers. Moreover, one potential bargaining power with the buyers is the threat of
importing cement. However, this threat is limited to an extent as the cost of import will increase the
overall cost of the project.. Pure buyer power exists when only one buyer exists in the market
(monopsony). In this case power is entirely in the hands of the buyer. In the cement industry, facts
suggest that this effect is minimal. The power of consumers is limited due to the lack of substitutes, the
small number of cement firms (oligopoly), and the inelastic demand that consumers have for the product.
Buyers are said to be powerful if they are highly concentrated, purchase a large amount of the product, or
if there is product standardization. The last effect exists but its impact is weak because of persistent
shortages in the cement market. Given the fact that the buyers in the cement market lack the
characteristics that give them power over producing firms, the competitive level of the industry judged
through this force is very low. Firms have an easier time setting price while buyers act generally as price
takers.
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c. SUPPLIER POWER (MODERATE): In this industry, the suppliers exert a very high power.
This is so because the raw materials form a very large part of the process in the manufacturing of cement.
Shortage in supply of raw materials can cripple the whole plant and can lead to huge losses. When the
suppliers demand something, the negotiations have to be completed quickly and the result is more or less in
favour of suppliers. For example, if the coal suppliers stop supplying coal to the plant, it cannot function and
production will come to a standstill. The supply of coal has to resume as quickly as possible. Hence, the
suppliers exert a great amount of influence in the decisions of the cement manufacturing companies. But
since all the raw materials are natural resources, they are under the Government‘s control. Companies have
to buy rights from the government to set-up the cement plant. Hence the supplier‘s power is moderate.
d. INTER FIRM RIVALRY (HIGH): Cement industry is one of the highly competitive markets in
India. Many players in this industry are large scale players with huge capital invested in setting up the
production units. This factor raises the exit barrier for the companies. Hence, they stay in the industry and
start aggressive competition. Also, the differentiation in types of cement is marginal, hence the switching
cost to customers is not high, so firms compete intensely to gain market share. Also, sometimes problem of
overcapacity comes into play. This leads to a price war and competition intensifies.
e. THREAT OF SUBSTITUTES (LOW): Lack of substitutes, other products that are not within
the same industry but can be used instead, means that the industry does not face a credible threat of
competition. This represents the reality of the cement industry. No product exists to date that can substitute
effectively for cement. While construction firms can use less cement in exchange for using other materials
that have some cementitious quality, that substitution effect is negligible on the market price of cement
(United States Geological Survey, 2008). An industry is only threatened if another industry produces a
similar product (e.g. aluminum cans vs. plastic bottles), or if consumers of that product can decrease the
ratio of their use of that product and use another product i.e. minimal partial substitution. Both of these
choices are virtually non-existent to cement consumers, hence the threat of substitutes is very low. In India,
cement is the ultimate material used for almost all type of construction work. Bitumen is one of the
substitutes of cement but these days cement is even replacing bitumen.

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 CHAPTER 2

COMPANY PROFILE [SWOT AND BALANCED SCORE CARD]

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 CHAPTER 2

2. COMPANY PROFILE [SWOT AND BALANCED SCORE CARD]

2.1 BIRTH OF BHARATHI CEMENTS:

On March 27 2006, the Government issued a GO allotting 2037 acres of mining lease to the company and
the following year, it was allotted another 487 acres. In the same year the construction was started and
today, the first cement plant of Bharathi cement is completed. It just has a single plant (2.5 Million Tonne
capacity) at present at Nallalingayapalli village, Kamalaparam mandal, Kadapa dist.

2.2 HISTORY: BHARATHI CEMENT

A joint venture of Vicat, France with 51% majority stake holding having a manufacturing plant at Kadapa in
Andhra Pradesh.

The Company was incorporated on May 12, 1999 as Raghuram Cement and Minerals Private
Limited. The ownership of the company was changed and the company was renamed later as Bharathi
Cement Corporation Limited on August 6, 2008. In April 2010, Vicat SA, France acquired a majority
stake in the company. Later, the name of the company was changed to Bharathi Cement Corporation
Private Limited from September 1, 2010.

The company commenced the commercial production of line 1 with a capacity of 2.25 MTPA on September
28, 2009 at Nallalingaya Palli, Kamalapuram Mandal, YSR District, AP. It sells the cement under the brand
name, ―Bharathi Cement‖. Later the line 2 was commenced on February 4, 2011 and the total capacity was
increased to 5 MTPA. In 2015, a 30 MW captive power plant was set up to meet the power requirements of
the company.

A producer of superior quality cements setting new standards in construction and is a subsidiary of Vicat
Group in India. BCCPL was founded by the promoters of Sakshi Telugu Daily & Sakshi TV, under the
chairmanship of Smt. Y.S. Bharathi Reddy and professionals with wide experience in Power, Cement,
Infrastructure and Aggregates.

BCCPL delivers a production capacity of over 5 Million Tonnes per annum with an ultra-modern
manufacturing facility located at Nallalingayapalli, in Kadapa district of Andhra Pradesh, and marketing its
cement under brand name of ―BHARATHI CEMENT‖ since 2009.

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2.3 JOURNEY OF BHARATHI CEMENTS:

 28th Sep' 2009,First production line of 2.25 MTPA has been commissioned.
 7th Nov' 2009,Product launch at Bangalore for markets of Karnataka.
 28th Feb' 2010,Company has established its own a laminated packing bag manufacturing unit at
Pullivendula .
 30th Apr' 2010,Vicat Group from France has acquired majority stake of 51% in Bharathi Cement
Corporation Pvt. LTD.
 17th Jun' 2010,Product Launch in state of Maharashtra at Pune.
 21st Aug' 2010,Product launch at Goa.
 14th May' 2011,First Foreign Tour of Dealers, at Hong Kong.
 17th Dec' 2012,Product Launch at Mumbai for markets Of Mumbai.

2.4 VISION AND MISSION: To partner our customers in building the best, by delivering superior
quality cement that‘s produced with best in class technology. To grow by building lasting relationships with
business associates and contribute to the well-being of society.

2.5 OBJECTIVES OF A COMPANY: Bharathi (BCCPL) is a subsidiary of Vicat Group. The

Vicat Group manufactures Cement, Ready-Mixed Concrete, Concrete Product (Precast) and
Aggregates. In 1817 Louis Vicat discovered artificial cement. His son, Joseph, created Vicat
Company in 1853. The Group continues expanding under the President Jacques Mercero n-Vicat
and is present in 11 countries (France, US, Turkey, Senegal, Switzerland, Egypt, Italy, Mali,
Kazakhstan, Mauretannia and India). The Vicat Group has 6,700 employees and generates sales of
Euros 2 billions. Bharathi was founded by the promoters of Sakshi Telugu Daily & Sakshi TV,
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under the chairmanship of Sri Y.S. Jagan Mohan Reddy and senior professionals with vast
experience in Power, Cement, Infrastructure, Ready-Mixed Concrete, Aggregates and Waste
Management.

2.6 ABOUT A VICAT GROUP:

In 2010, Vicat Group bought 51% majority stake in Bharathi Cement Corporation Private Limited. Bharathi
Cement made a mark in the Indian Cement Market by creating a niche for itself in the premium segment.
Partnering with Vicat, France led Bharathi Cement reach a strong position in the market and a cement brand
to reckon with.

Vicat In India operates with 2 cement manufacturing companies with a single brand Bharathi
Cement” ensuring operational synergy. The company owns the state-of-the art manufacturing plants in
Kadapa and Kalaburagi with a combined production capacity of 7.75 MTPA. With its state-of-the-art
processes, committed teams, efficient delivery and a strong distribution network of over 3000 dealers,
Bharathi Cement is a leading cement company of the Southern & Central India with headquarters in
Hyderabad.

Vicat in India functions in 3 verticals - Cement, Aggregates and Polymers with a team of over 850
professionals and operations spread across 7 states in India. Bharathi Cement is the flagship brand of Vicat
Operations in India.

Vicat, France is the pioneer in cement manufacturing since its invention by Louis Vicat in 1817. The group
operates in 11 countries with business interests in Cement, Ready-Mixed Concrete, Concrete Product
(Precast) and Aggregates.

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 2.7 SWOT ANALYSIS:

SWOT analysis is a strategic planning technique used to help a person or organization identify strengths,
weaknesses, opportunities, and threats related to business competition or project planning.

2.7.1 ANALYSIS FRAMEWORK:

SWOT Analysis is a simple but useful framework for analysing your organization's strengths, weaknesses,
opportunities, and threats. It helps you to build on what you do well, to address what you're lacking, to
minimize risks, and to take the greatest possible advantage of chances for success. It can be used to kick off
strategy formulation informally, or in a more sophisticated way as a serious strategy tool. You can also use it
to get an understanding of your competitors, which can give you the insights you need to craft a coherent
and successful competitive position. When carrying out your analysis, be realistic and rigorous. Apply it at
the right level, and supplement it with other option-generation tools where appropriate.

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 2.8 PRODUCTS AND MARKETS:

OPC 43 OPC 53 PPC PSC Exports Aggregates PPL Bags

OPC 43: SUITABLE FOR RESIDENTIAL, COMMERCIAL, INDUSTRIAL

STRUCTURES, BRIDGES AND DAMS, HIGHWAYS, HIGH-RISE BUILDINGS,
RUNWAYS ETC.

2.8.1 OPC 43: Ordinary Portland Cement (OPC) 43 Grade is premium 7 quality cement manufactured
from world renowned Narzi limestone. Made using next generation German Technology, the 43 Grade
cement develops high early strength as well as high ultimate strength.

ADVANTAGES:
• Superior quality ensures substantial savings in cement consumption
• Development of very high compressive strength in early stages helps in early de-shuttering
• Superior resistance to sulphate attack due to less C3a content
• Low alkali content in cement provides protection against alkali aggregate reaction
• High fineness results in better workability enduring dense, durable concrete

APPLICATIONS:
• Suitable for residential, commercial, industrial structures, bridges and dams, highways, high-rise
buildings, runways etc.
• Pre-stressed concrete.
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 • Recommended for all types of RCC structures, concrete blocks, electric poles, paver blocks etc.

(OPC) 53 GRADE: SUITABLE FOR RESIDENTIAL, COMMERCIAL,

INDUSTRIAL STRUCTURES, BRIDGES AND DAMS, HIGHWAYS, HIGH-RISE
BUILDINGS, RUNWAYS ETC.
2.8.2 (OPC) 53 GRADE : Ordinary Portland Cement (OPC) 53 Grade which surpasses the
requirements of IS12269-1987 Grade. It is produced by inter grinding of high grade clinker (with high C3S
content) and right quality gypsum in predetermined proportions.

It is recognized for its high early strength and excellent ultimate strength because of its optimum particle
size distribution, superior crystalline structure and balanced phase composition and hence widely used and
suitable for speedy construction, durable concrete and economic concrete mix designs.

ADVANTAGES:
 Superior quality ensures substantial savings in cement consumption

 Development of very high compressive strength in early stages helps in early de-shuttering

 Superior resistance to sulphate attack due to less C3A content

 Durable Concrete

 Feasible for economical concrete mix designs

 Low percentage of alkalies, chlorides, magnesia and free lime results in longer life of concrete
structures.

APPLICATIONS:
 Suitable for Residential, Commercial, Industrial Structures, Bridges And Dams, Highways,high-rise
Buildings, Runways etc.

 Recommended for all types of RCC Structures, Concrete Blocks, Electric Poles, Paver Blocks Etc.

PPC: SUITABLE FOR HYDRAULIC STRUCTURES, MASS CONCRETING

WORKS, MARINE STRUCTURES, MASONRY MORTARS AND PLASTERING

2.8.3 PPC: Portland Pozzolana is premium composite cement produced from superior quality Narzi
limestone, using next generation German Technology to meet international standards. The cement is
manufactured by inter-grinding high quality clinker with carefully chosen, good quality High Reactive Silica
(HRS) Which is collected from Electro Static precipitators (ESP) and contains high quality gypsum.

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HYDRATION OF BLENDED CEMENT:

Ordinary Portland Cement + Water → C-S-H Gel + Ca(OH)2 (Alkali)

High Reactive Silica(HRS) + Alkali → Secondary Gel Formation

As a result of the above secondary hydration, pore refinement takes place, making the concrete more
impermeable to sulphate and chloride attacks. This makes the concrete structure more durable.

ADVANTAGES:

 Low heat of hydration

 Resistant to sulphate and chloride attacks

 Resistance to alkali silica reaction

 Reduction in water demand

 Reduced bleeding due to high fineness of cement

 Pore refinement leading to improved density of concrete.

APPLICATIONS:

 Mass concrete work

 Marine works

 Residential and commercial high rise buildings

 Industrial structures

 Suitable for wide range of applications as a substitute for OPC.

PORTLAND SLAG CEMENT (PSC) : SUITABLE FOR HYDRAULIC STRUCTURES, MASS

CONCRETING WORKS, MARINE STRUCTURES, MASONRY MORTARS AND
PLASTERING

2.8.4 PORTLAND SLAG CEMENT (PSC): Portland Slag Cement (PSC) is a premium
composite cement produced from superior quality Narzi limestone, using next generation German
technology to meet international standards. Slag cement begins in an iron blast furnace. Carefully controlled
amount of iron ore, along with limestone or dolomite are fed into a blast furnace and heated to 2,700°F.
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When molten, the iron is tapped for steel production and the slag is diverted to the granulator. Here, the slag
is rapidly quenched with large quantities of water.

The process minimises crystallisation and forms granulated slag, which is composed principally of calcium
aluminosilicate of lime, which has a glassy form. Formation of this glass provides slag cement with its
cementitious properties. At this point, the slag possesses the consistency of fine sand. It is then dewatered
and dried. Finally, the slag is ground to a fine powder and becomes slag cement, or it is inter-ground with
Portland cement clinker to make a blended cement.

ADVANTAGES:

 Improved Workability

 Improved Resistance to chemical attack

 Reduced Permeability

 Improved Strength

 Environment Friendly

 Easier Finish

 Higher Compressive and Flexural Strengths

 Protection against Chloride and Sulphate attack

 Reduces heat of hydration

 Better cohesive mix

 High Carbonation Resistance

 Highly resistant to alkali aggregate reaction

 Protection of Reinforcement

APPLICATIONS:
 Residential, Commercial and Industrial Projects

 Dams and other mass concrete works

 Water Retaining Structures

 Concrete Roads and Flyovers

 Marine Constructions

 Pre-cast Concrete Products

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  Foundations and Pile Construction

EXPORT CEMENT: NOT ONLY HAVE WE EARNED THE TRUST IN OUR OWN
COUNTRY, BUT, WE HAVE EARNED THE SAME IN OUR NEIGHBOURING
COUNTRIES AS WE PRODUCE CEMENT THAT MEETS THE EUROPEAN
STANDARDS.

2.8.5 EXPORT CEMENT & SPECIAL CEMENT:

• Bharathi cement is an active player in the area of cement export to our neighbouring countries - Sri
Lanka and Bangladesh since 2010.
• Bharathi cement is producing the desired quality of cement meeting the Sri Lanka Standards and
also, produces the cement that meets the European standards.
• Ordinary Portland Cement (42.5 N) grade is manufactured for the SriLankan market and sold under
the brand name of DHT cement.
• Special Cement, Company also produces special cement based on customer requirement with
required stringent norms for special applications like asbestos manufacturing etc.
• We are also exporting clinker as per our overseas valued customers meeting EN and other specific
needs.

AGGREGATES WITH OUR OWN QUARRIES, WE CATER TO A RANGE OF

MATERIALS USED IN THE CONSTRUCTION BUSINESS. E-SAND IS ONE OF
OUR PREMIUM PRODUCT AND IT'S IN DEMAND.
2.8.6 ENGINEERED GRANULATES:
 E-Sand: A more effective, economical and premium quality replacement for natural sand.

 E-40: 40mm cubicled engineered aggregate that helps better mix during construction is best suitable
for constructions of road, railway track works etc.

 E-20: 20mm cubicled engineered aggregate that can help in optimum mix-design and improved
quality of concrete.

 E-12: 12mm cubicled engineered aggregate that in combination with e-20 will enhance the quality
and life of concrete.

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2.8.7 PPL LAMINATED BAG:

Polypropylene Bags are different from bags made from other polymers, including cellophane, polyethylene,
and vinyl. Polypropylene is similar to polyethylene; however, it is better by certain characteristics, the
important being - its low cost. The specific properties inherent to polypropylene give a good reason to
choose it over other types of polymers, including polyethylene. The specific properties inherent to
Polypropylene makes it a better reason and choice over other types of polymers, including polyethylene.

FEATURES:

The high chemical resistance of these bags is not the only feature to favour this. Polypropylene packages
have other features - the ability to protect the contents from dust and moisture, impact resistance, resistance
to sliding, and high durability. They are neither subject to decay or mould and are suitable for automated
processing and stacking. They keep static electricity minimised, which is very important in storing electronic
goods.

Today, technology allows to produce the package in various configurations, including polypropylene bags
with patch handles, adhesive tape, hang-holes, grommets, micro-punching, bottom fold, and many other
handy options. The bags can combine several of the enlisted configurations in a single item.

USAGE:

Today, in all industries, polypropylene packaging is in great demand and used for packaging, transportation
and storage of bulk chemicals, food products, agricultural products, and debris. Polypropylene bags are also
used for packing of textiles, jewellery, printed materials (postcards, magazines), personal hygiene items,
stationery, bakery products, toys etc.

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ADVANTAGES:

1. Cost Effective
2. More Durable
3. Light Weight , Stiffer And Stronger
4. Resistant To Various Damages
5. Better Moisture Retention Properties

2.9 MARKET SHARE:

The market share of the company accounts to 39.80% currently. It is believed that if these four companies
do not increase their market share in the coming years, then their combined share could drop to 34%.
Bharathi Cement, the fully-owned domestic unit of the French cement firm Vicat Group, today said it is
eyeing to double the turnover to Rs 2,000 crore by 2013 when its plant at Gulbarga in Karnataka will go on
stream and double the capacity by 2016 to 10.5 million tonne. Our turnover from the existing two plants at
Kadapa in Andhra Pradesh in 2011 is expected to be over Rs 1,000 crore. We are targeting Rs 2,000 crore
turnover after the completion of our Rs 1,400-crore plant at Gulbarga in Karnataka.

The upcoming two units at Gulbarga will have a combined capacity of 5.5 mt, and the line of 2.75 mt will be
operational by the second half of 2012, he said. In 2012, we expect to ramp up the capacity to 7.5 mt and
reach 10.5 mt by 2015-16 from the present 5 mt, he added. Bharathi has lined up Rs 1,400 crore investment
for the Gulbarga unit, he said, while the Andhra plants cost it Rs 1,450 crore. The investment for the Andhra
plants was met through equity, whereas we are getting finance for the Karnataka plant from IFC. We will
also erect a 30-MW captive power plant for unit one and will double it to 60-MW for the second unit, he
said. Bharathi which at present enjoys 3 per cent market share, aims to raise it to 4 per cent next year and to
6 per cent the year.

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2.10 PRESENT STATUS OF THE INDUSTRY:
At present, Bharathi Cement operates a 5 million tonnes (MT) capacity cement plant in Kadapa district of
Andhra Pradesh. The Vicat Group operates a 2.75 MT capacity cement plant in Gulbarga district of
Karnataka. Jointly, Vicat Group has a cement capacity of 7.75 MT in India. We were the first cement
company in combined Andhra Pradesh to install an ultra-modern cement plant with quality being controlled
by a Robo lab to ensure consistency in every bag of cement. A strong team of professionals works hard for
the product positioning in premium category, apart from achieving sales targets month after month, creating
new records and benchmarks. This testifies that Bharathi Cement recognises human resources as an asset for
the growth of the company. At Bharathi Cement, this is being achieved with Robolab, which monitors
samples at all levels to ensure consistent grain and texture. The samples are collected from the market and
tested in approved labs on a continuous basis to check the quality daily and monitor consistency.

2.11 FUTURE PLANS:

Bharathi Cements Ltd is planning to expand its cement plant production capacity in Nallalingayapalli in
Kamalapuram Mandal in YSR Kadapa district in Andhra Pradesh. The project involves expanding existing
clinkering capacity from 3.3 MTPA to 4.42 MTPA and cement production capacity from 5.0 mtpa to
5.8 mpta, a captive power plant based on waste heat recovery of 9.5 MW. The project cost is estimated
at ₹ 1050 million. As of December 2018, the project is in planning stage.

The company having a strong presence in south India, Goa and Maharashtra, is planning two new
production plants in Vizag and Mumbai in the next two to three years. The two plants can cater to the
demand in eastern and western parts of the country. The launch of its new ultra-fast multipurpose green
cement best suited for cement bricks manufacturing for the first time in the country, said the company. It
hopes to raise its present market share of 4% in the country by another 1 % with the new plants and
products. We will next come out with environment-friendly composite green cement which will use less
limestone. Besides Bharathi Cement‘s 5 million tonne capacity plant at Kadapa, Vicat group owns another
cement unit in Karnataka with 2.75 million tonnes now.

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2.12 BALANCED SCORE CARD:

 Every Organization aspiring to improve its performance in many appears of functionalities.

Procurement being a major area of spend, its performance is significantly attribute to the
overall performance of the organization. Procurement needs to demonstrate value delivery to
the organization. Procurement Performance Management, or PPM, refers to the holistic process of
Measuring, Standardizing or Indexing, Managing and Initiating steps to increasing the added value
of the procurement department.
 Procurement Performance Measurement is closely related to spend management or it is an integral
component of procurement management. It describes key indicators, methods, and processes that are
necessary for measuring procurement success. Monitoring procurement system performance
provides managers with the information they need to evaluate how well the system is functioning
and to identify areas where additional measures may be required to improve the overall procurement
performance. To effectively monitor procurement performance, appropriate performance monitoring
indicators must be in place and they must be supported by both management and operational
personnel.
 In doing so, the process is observed from the finding of savings potentials via modern methods of
spend management and their realization through procurement initiatives to the final measurement of
success and for sustainable management.

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 CHAPTER 3

ORGANISATIONAL DESIGN

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 CHAPTER 3

3. ORGANIZATION DESIGN:

The study of Cement Industry/company shows clearly on formal chart. This shows clearly the reporting
relationship with each role. Organizational structure is the formal or quasi-formal network of reporting or
control relationship in an organization and the powers and duties associated with each role in this network.
Organization study is usually conducted in a well-structured and reputed organization. The basic objective
of conducting organization study is simply to understand and learn the actual structure and working of each
and every department of an organization. The main purpose of the study is to observe, analyse and interpret the functions and

procedures of each and every department of the selected organization.

3.1 PRESENT ORGANIZATION STURCTURE:

Managing
Director

General
Manager

Marketing Finance Production Dispatch General Stores

Department Department Department HR Department Department Department
Department

Equipment Planning Purchase

department department Department
QC department Manufacturing

Packaging
department

Production

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 3. 2 STRUCTURE OF THE ORGANIZATION:

a. CENTRALIZED STRUCTURE:

 In this type of organizational structure, all decisions, as well as processes, are defined; and
handled by the top management.
 Employees and managers are responsible for the successful implementation of
decisions and have to follow them.
 The employees low in the chain of command play a minimal role in the process of
decision-making.
 The power of decision- making is held at the top level and there is a wide chain or
hierarchy of managers and subordinates.
 Thus, the centralized structure has a top-down approach for decision flow Company
uses the centralized structure as it is vast in size with around 2000 employees.
 The flow of command is from top to bottom .
 Each departments has managers ,executives, officers, associates and employees.
 Efficiency is ensured in each departments and maximum utilization of resources is ensured
with its structure.
b. LINE ORGANIZATION STRUCTURE:
 Line organization structure is the oldest and simplest form of organization.
 In these organizations, a supervisor exercises direct supervision over a subordinate.
 The line of authority flows vertically from top most executive to the lowest
subordinate throughout the organization.
 Where, managers have direct authority over their respective subordinates through the chain of
command.
 Authority flows directly from top to bottom through various managerial positions.
 It is simple form of organization.
 Only one form of authority that is line authority exists in this form of organization.
 Line authority refers to the direct authority of a manager over his subordinates.

c. DIVISIONAL ORGANIZATION STRUCTURE:

In this type of structure, the organization can have different basis on which departments are
formed.

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 CHAPTER 4

BUSINESS LEVEL FUNCTIONS / PROCESSES (FUNCTIONING OF

VARIOUSDEPARTMENTS, BEST PRACTICES, INTER-RELATIONSHIPS
AMONG DEPARTMENTS)

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 CHAPTER 4

4. BUSINESS LEVEL FUNCTIONS / PROCESSES

(FUNCTIONING OF VARIOUS DEPARTMENTS, BEST PRACTICES,

INTERRELATIONSHIPS AMONG DEPARTMENTS)

Functional units of your organization are involved in higher level strategies by providing input into
the business unit level and corporate level strategy, such as providing information on customer feedback or
on resources and capabilities on which the higher level strategies can be based.

4.1 MARKETING FUNCTIONS OF THE INDUSTRY:

 DIRECTOR MARKETING: RAVINDER was appointed as a Director on the board of
Bharathi Cement in 2008. He handles Sales & Marketing for Bharathi Cement. He comes with an
experience of over 22 years, having worked for Priya Cements, Bagalkot Cements and Penna
Cements.
 In his earlier associations, he played an instrumental role in introducing HDPE (High-Density
Polyethylene) & Paper Packaging against conventional Jute Packaging. This was a revolutionary
change and welcomed by the cement industry. It helped reduce the cement pilferage reducing the
wastage and giving good value for money to the end user.
 Another milestone in the history of Bharathi, Majority of the volume is being sold in Maharashtra,
Telangana and North Karnataka. There exists a common brand and common marketing team with a
total capacity of 7.75 MT per annum, and a new leader in the cement industry has emerged in South
India.
 This strong team of professionals works hard for the product positioning in premium category, apart
from achieving sales targets month after month, creating new records and benchmarks. This testifies
that Bharathi Cement recognises human resources as an asset for the growth of the company.
 MARKETING TEAM : Bharathi Cement is armed with an experienced and energetic team of
marketing professionals in the areas of Sales, Marketing Services, Technical Support Services,
Logistics and Sales Accounts.
 DISTRIBUTION CHANNEL: Bharathi Cement is being sold in all southern states and
Maharashtra. We have a strong dealer network of 3036 Nos. spread across all states. This is helping
the availability of the product at all places.

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 PREMIUM POSITIONING: Ever since inception in September 2009, Bharathi Cement is
positioned in the premium category on the strength of superior quality, testing of cement with the
help of robolab for consistency and also tamper proof packing.
 SUPERIOR QUALITY: In Bharathi Cement, what goes in every bag is our passion for
excellence and what comes out is product of superior quality. One of the greatest challenges in
cement production is ensuring consistent quality.
 GERMAN TECHNOLOGY: Bharathi‘s cement plant is an ultra-modern one with state of the
art technology including robotic lab. For ensuring consistent quality, it has the most advanced
vertical roller mill (VRM) from Loesche of Germany.
 TAMPER PROOF PACKING: Bharathi Cement is packed in specially made PP laminated
bags which cannot be resealed once they are opened. Hence, the PP laminated bag is completely
tamper-proof, which ensures that the cement is unadulterated. Every bag of Bharathi Cement is
assured of correct weight.
 ADVERTISING AND COMMUNICATION STRATEGY : Ever since launching of the
brand in September 2009, Bharathi is a trend setter in Advertising, Communication and Product
Positioning which resulted in placement of the brand in the premium category. The brand initiatives
with outdoor advertising, electronic media, POP material, event management and organising
meetings like Engineers Meet, Masons Meet, Customers Meet, Dealer Meets at regular intervals
helped the company to develop a relationship with channel partners and get across a message to the
customer that Bharathi Cement is a premium brand.
 TECHNICAL SUPPORT SERVICES: Bharathi Cement has deployed 42 Mobile Vans in all
Southern States and Maharashtra. These Mobile Vans, manned by highly qualified technical officers
and civil engineers, will train masons, construction supervisors and customers about good
construction practices. These Vans on continuously on the road for site visits, and advocate free
construction tips to end-customers round the clock. These Mobile Vans are called Mobile
Construction Advisors (MCA).
 MASONS & EMPLOYEES: Bharathi Cement proudly claims that dealers, masons and
employees are being covered under accidental insurance and the premium is paid by the company.
Apart from discharging Corporate Social Responsibility (CSR), Bharathi Cement also takes care of
the health needs of all business associates.
 LAUNCHING OF NEW PLANTS: A new ultra-fast multipurpose green cement best suited
for cement bricks manufacturing for the first time in the country, said the company hopes to raise its
present market share of 4% in the country by another 1 % with the new plants and products.
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Bharathi Cement launches ‘BharathiUltraFast’ in Karnataka market. It is multi-purpose green cement,
offering the complete package of benefits of standard OPC 53 cement. For the new product launch, Bharathi
Cement plans to tap the strong network of about 3,300 dealers and 10,000 sub-dealers across all the South
Indian states. The company has invested in building a robust back-end rail and road transport system,
ensuring the delivery of its cement within 24 hours of placing an order.

Bharathi Cement's Full Guarantee ad campaign aims to tickle your funny bone. Bharathi Cement‘s latest
advertisement campaign conceptualized by Sunny Side Up, uses the ―full guarantee‖ assurance that
customers seek across various instances in a humorous way to create a strong brand pitch for the cement
manufacturer. The cement category largely follows a set format of advertising, focusing on functional
attributes such as strength and longevity.

4.1.1 SOME MARKETING STRATEGIES:

Handling Brand Activation programs for Andhra Pradesh, Telangana, Kerala, Tamil Nadu, Karnataka &
Maharashtra

 Planning & Execution of Mass Media Activities like Hoardings / Bus Shelters / Bus Branding / Bus/
Rail Stations Branding/Highway Painting / Wall painting / Shop Painting / High Rise Wall Painting /
Rural painting, etc..
 Organizing Dealer Meets/Sub Dealer Meets/Internal Meets.
 Coordinating with the Technical Team for conducting various events like
Mason/Contractor/Counter/Engineer Meets, etc.
 Planning & Monitoring Brand Budget Activities for the financial year.
 Vendor development and management ensuring quality, delivery, deadlines and cost effectiveness.
 Responsible for marketing communications including advertising, collateral, website content,
newsletter, sales kits, B2B & B2C information literatures.

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4.1.2 SURIYA BECOMES BRAND AMBASSADOR FOR BHARATHI CEMENTS :

The company to rope him in is Bharathi cement and right now the busy and high profile business zones
are seeing banners with Suriya holding the cement packet. The reactions have been quite mixed on this
one but it will be interesting to see how this company will do in the future.

4.2 FINANCE DEPARTMENT:

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The finance dept. is headed by General Manager having sufficient industry experience in the field of
accounting, taxation, company law and financial mgt. Finance is the life blood of business. Finance
department consists of all the managerial activities of raising funds and effective utilization. Finance
Department lies in decision making area of investment, finance and dividend. The accounts and
finance departments ensure that the salaries to the employees are paid in time. The department is also
concerned with the preparation of budget and budgetary control of the concern. The departments
ensure that all the entries are properly posted in the books of accounts.

4.2.2 ACTIVITIES PERFORMED:

1. ACCOUNTS PAYABLE (MONEY OUT): In order to maintain great relationships

with vendors making sure that everyone gets paid on time is a vital role. The role of the
accounting department includes keeping an eye on opportunities to save money, for example,
determining if there are discounts or incentives available for paying certain vendors more
quickly. At the very least, AP should be scheduled to assure that the least amount of money has
to go out per payment.

2. ACCOUNTS RECEIVABLE AND REVENUE TRACKING (MONEY IN):

Another critical duty of the accounting department is to account for and track receivables,
including outstanding invoices and any required collection actions. Accounts receivable is
responsible for creating and tracking invoices. The responsibility here includes assuring that
customers pay those invoices on time, so a system of friendly reminders is crucial.

3. PAYROLL: Payroll is a critical function of the accounting

Department and includes making sure all employees are paid accurately and timely. In
addition, proper tax is assessed and tax payments are on time with state and federal
government agencies.
4. REPORTING AND FINANCIAL STATEMENTS: The primary reason you
collect data properly in your accounting software is to prepare financial reports that can be
used for budgeting, forecasting and other decision making processes. In addition, these and
other reports are needed for communication to investors, banks and other professionals that
play a role in the growth of your business
5. FINANCIAL CONTROLS: Financial controls include reconciliations, dividing the
responsibilities and following the GAAP standards of accounting principles, all of which are
implemented with view toward compliance, fraud and theft prevention. The role of the
Controller is to ensure procedures are set up properly to manage that process without errors.
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4.2.3 BOOKS MAINTAINED BY FINANCE DEPARTMENT:

 Cash book
 Bank book
 Sales pay book
 Purchase pay book
 Journal registers

4.2.4 DUTIES OF FINANCE DEPARTMENT:

 Maintaining the books of account

 Preparation of budget estimate
 Preparation of administrated reports
 Schedules of the employees
 Preparation of the monthly and annual accounts
 Verification of all proposal related to finance
 Strict adherence to bill of material during purchase

4.2.5 MAJOR FUNCTIONS OF FINANCE DEPARTMENT:

 Recording of the day today transactions-accounting

 Preparation of various statements regarding stock, receivables etc. Which are to be submitted
to various authorities like bankers, insurers etc.
 Planning and controlling of the expenses/funds for production
 Approving and making payments to different parties like creditors/suppliers.
 Receiving payments from customers/dealers in specified time.
 Raising shot-term loans/credit from bank and other financial institutions.
 Preparation of sales budget/revenue budgets and expenditure budget on a quarterly basis.
 Preparation and maintenance of costing records.
 Preparation of fund flow and cash flow statements for every month.
 Preparing and filing of quarterly and final income tax returns.

4.2.6 BHARATHI CEMENT TO DOUBLE TURNOVER BY 2013:

Bharathi Cement, the fully-owned domestic unit of the French cement firm Vicat Group, today said it is
eyeing to double the turnover to Rs 2,000 crore by 2013 when its plant at Gulbarga in Karnataka will go on

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stream and double the capacity by 2016 to 10.5 million tonne. Our turnover from the existing two plants at
Kadapa in Andhra Pradesh in 2011 is expected to be over Rs 1,000 crore. We are targeting Rs 2,000 crore
turnover after the completion of our Rs 1,400-crore plant at Gulbarga in Karnataka.

4.3 PRODUCTION DEPARTMENT: Production Department is considered as heart of the

organization. It is this department responsible for the company‘s core products takes its physical form.
A production department is a group of functions within a business that is responsible for the manufacture
of goods.

4.3.1 PRODUCTION DEPARTMENT WORKS: The production department manufactures

goods for the business which are then sold in order to bring revenue for the business. The production
department is also responsible for the designing of the goods or products of the business which are sold to
other businesses or to the general public. A production function gives the technological relation between
quantities of physical inputs and quantities of output of goods. Some non-mainstream economists,
however, reject the very concept of an aggregate production function.

4.3.2 ORGANIZATION CHART OF PRODUCTION DEPARTMENT: The production

department is provided with adequate and experienced personnel for carrying out the production activities.

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4.3.3 PROCESS LAYOUT OF PRODUCTION DEPARTMENT:

4.3.4 VRM CEMENT MILL

The technology adopted at the plant consists of Vertical Roller mill of LOESCHE, Germany for grinding of
cement to achieve the optimum fineness, and controlled particle size distribution of cement particles. This
mill has a capacity of producing 360 tons per hour

The mill is designed to produce a range of high quality cements such as Ordinary Portland Cement (OPC),
Portland Pozzolona Cement (PPC), Pozzolona Slag Cement (PSC) and Ground slag at varying fineness.

A 6 roller mill can be operated as a 4 roller mill with a capacity of around 80% and a 4 roller mill can be
operated as a 2 roller mill with a capacity of 60%.

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4.4 PROCUREMENT DEPARTMENT: Bharathi Cement plant consumes wide spectrum of inputs
varying from coal, gypsum, slag, packaging bags, lubricants to various mechanical and electrical equipment.
Hence, a team of professionals at corporate region and plant region manages procurement function.

4.4.1 FUNCTIONS OF THE DEPARTMENT:

The basic functions of the procurement are as follows;

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4.5 HUMAN RESOURCES DEPARTMENT: Human Resource Department is one, which
facilitates smooth functioning of organization. The Human Resource Department is provided with adequate
experienced and competent personnel for carrying out the activities of department.

4.5.1 ORGANIZATION CHART OF THE DEPARTMENT:

4.5.2 FUNCTIONS OF HR DEPARTMENT:

1. Recruitment and Selection: A committee of officers called the Central Recruitment Committee handles
the entire recruitment process. The process includes: Screening of applications->Preliminary Short-listing-
>Tests->Interviews>Final selection.

2. Training and Development: Training is imparted to take care of an individual‗s career development as
well as functional and skill enhancement . Programs offered to the employees are A) Executive
Development Programme B) Supervisory Development Programme C) Workers Development Programme

3. Performance Appraisal: The Company‗s performance management system is in itself a benchmark that
provides ample opportunities and motivational incentives to employees. They include: A) Performance
Linked Incentives B) Good Work Awards C) Special Incentives D) Promotion E) Best Employee Awards.

4. Welfare Facilities: Company Provides several schemes for welfare of employees and their families.
These cover A) Housing facilities B) Hospital Facilities C) Financial Assistance.

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5. Grievances Handling: In order to handle grievances, the department has introduced various methods like
enabling employee communication, complaint box, satisfaction surveys.

4.6 OPERATIONS DEPARTMENT: BCCPL has a well-structured and effective operations

department. The basic objective of operations department is to receive the materials and storing the same in
proper condition and issue of materials to the users.

4.6.1 FUNCTIONS OF THE DEPARTMENT:

4.7 QUALITY CONTROL DEPARTMENT:

BCCPL, Continuously manufactures OPC and PPC cements and thus the quality and process control
activities are carried out at all stages of manufacturing process with objective to reach zero defect.

Functions of Department:

The department covers all the processes affecting product quality.

• Inspection, sampling and testing of all the incoming materials, in process materials and
finished products.

• It verifies quality of incoming materials against the purchase order specifications for deciding
its acceptability/rejection.

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A) Inspection of Raw Materials

• Quality Check of incoming raw materials is done in Robolab.

• Fully automated Lab.

B) Inspection of In-Process Materials

• Quality check of mixture is done by checking the

• chemical composition under every stage in
• Manufacturing process.

4.8 SUPPLY CHAIN DEPARTMENT:

Supply chain management (SCM) has become very important element for modern industry success. SCM
integrates the all inbound and outbound activities of a company. Cement industries are the core
manufacturing sectors affecting the growth of modern India. The cement industries in India are facing
different challenges in modern time of competition. After GST implementation in India, cement industries
face many issues and challenges.

Supply chain of cement industries has transformed a lot. Supply chain issues and challenges of cement
industries in India and the impact of GST (Goods and Service Tax) have also been discussed. Old supply
chain, modified supply chain, and critical factors like warehousing eliminations and effect on sale of cement.
Different issues and challenges having influence on performance of case organization. Reduction in logistics
and transportation cost, reduction in time of delivery and reduction in production cost are few main benefits
for cement industries in post GST scenario.

The level of advancement in cement Supply Chain Management (SCM) can facilitate or constrain Indian
economic development. Logistics Management also plays important roles and contribute immensely to the
economy of a nation. The cement industries are playing vital role in the economic and social development of
the countries.

Raw materials>>>>supplier>>>manufacturer>>>>warehouse>>>shipping>>>end user

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4.9 DISTRIBUTION DEPARTMENT:

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4.10 COMPANY INITIATIVES LIKE:

a. ERP:
 It assists the organizations to enhance their performance by providing all the strategic data in one

place.
 It streamlines entire business processes by streamlining them.

 Sage 300 ERP‘s procurement module helps the company to manage procurement of material on a

daily / weekly / monthly basis. Through this module, the management can exercise total control over
all the procurement on values by vendor contract pricing and authorization as well.
 This system maximizes return on investment.

 Follow-ups, pending orders will be monitored closely with the help of the order management system,

executing customer orders and achieving customer satisfaction.

 In case of shortage of stock, transfer from depots and dealers using stock transfer process to deliver

the product to the customers on time.

 Process shipment documents efficiently using mass processing capabilities; improve shipment

volumes
 You should also use your ERP system to identify slow-moving inventory and price it to reflect its

higher warehousing cost.

SOME FACTORS LIKE:

 Help Reduce Operating Costs

 Business Intelligence & Reports
 Management
 Finance & Accounting
 Sales and Distribution

b. SUSTAINABILITY MEASURES:

 Eco-friendly installations

 Reducing Carbon Footprints

 Water Conservation

 Green Belt Development

 Waste Processing

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  Bio-Diversity

 Environment Reporting

At Vicat in India, our aims are business growth, but reduce our environmental footprint and increase positive
social impact. Cement manufacturing is a resource and energy intensive process wherein various natural
resources are consumed. The industry emits a good amount of CO2, affecting natural resources. The
challenge is to balance the growing demand of cement and environmental implications by developing
sustainable solutions for the industry. Cement industry being one of the high risk industry and considering
the business growth, we have identified Safety and made it an integral part since inception. We have made
significant changes for the safety. Both companies of Vicat in India are certified under ―Integrated
Management System‖ (ISO 9001, ISO 14001 & OHSAS 18001) which ensures implementation of health,
environment and safety policy.

c. ENVIRONMENT:

We believe that environmental, economic and social considerations must be a top priority for all the way
along our value chain. We are dedicated to the continual improvement of our environmental performance.
Eco-efficiency is therefore at the heart of our business. We believe the vision of sustainable development
and environment conservation can be achieved more effectively through a structured and systematic
approach.

Vicat in India is empowered by the overarching ‗Health, Environment and Safety Policy‘ under IMS
(Integrated Management System). The policy is in conformance with the Ministry of Environment and
Forests guidelines.

All our manufacturing locations have environment team, equipped with laboratory facilities to enable the
complete monitoring of stack emissions, ambient air quality, noise level and water quality. These teams are
also responsible for implementing various environment initiatives at the units.

Environmental sustainability is inculcated in every walk of our lives. In Vicat India operations, measures for
environmental sustainability.

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d. SAFETY:

The Vicat Groups ranks safety and the working conditions of its employees among its top priorities. A safe
work place leads to better quality of work and life.

Occupational Health & Safety (OHS) is a vital part of Vicat journey towards sustainable development. The
Vicat Groups ranks safety and the working conditions of its employees among its top priorities.

Everyone is committed to promoting any actions that might help achieve ―Zero Accidents‖. We firmly
believe and convinced that Accidents can be avoided.

From the Chief Executive Officer to the front-line employee, irrespective of our job or position in the
organization, we are all driving force in the setting up of accident-prevention systems integrating safety
meetings, training courses, audits, reports and analyses of accidents or near misses, etc. Everyone is
involved in and responsible for their own safety and that of their colleagues in a work environment.
Avoiding accidents is above all a matter of behavior and attention.

At Vicat India, regular meetings are held with all our staff members to discuss security and health issues,
continually research (and implement as appropriate) ways to prevent and manage hazardous situations more
effectively and carefully monitor prevention and security processes within all operations.

OH & S initiatives at our plants

 OH & S brochures, signage‘s, posters and mailers used extensively

 Providing adequate protection equipment & devices to the workmen

 Behavioral Safety Training programmes for workers at all plants

 Line function to work as driving force for ensuring safety

 Standard procedures have been laid out for the loading, unloading and storing of hazardous waste.

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4.11 CORPORATE SOCIAL RESPONSIBILITY:

The faith lies in contributing to social development and improvement as its our duty to give something back
to the society

a. PHILOSOPHY:

Social Responsibility is the foundation of our commitment to sustainable development and an integral part
of our core business. Our CSR philosophy aims at contributing to social development and improvement
through the appropriate use of our fundamental functions.

As a good corporate, we commit ourselves to good code of conduct and understand the expectations of a
civil society and community in which we operate through investment and engagement. We are committed to
build relationships based on mutual respect and trust with all the stake holders. We believe through our
social responsibility, we can build the foundation for a better future of the society.

b. POLICY:

As an organization committed to highest standards of operation, Vicat in India's initiatives are primarily
based on need assessment analysis wherein, we adopt a multi-pronged strategy in satisfying the basic,
physiological and self-esteem needs of the community in that order. It focuses on diverse areas including
infrastructure development, Healthcare & Sanitation, Education and Livelihood as identified from time to
time.

All our CSR Projects are undertaken keeping in mind the CSR philosophy of the Company and in alignment
with the permissible activities under the Companies Act, 2013 and rules framed under Section 135 of the
said Act.

c. IMPLEMENTATION:

To implement the company's CSR Programmes, we have constituted CSR Committee as per the CSR
framework under Companies Act 2013. The programs are steered and supervised by a CSR team. The
programs are outsourced to NGOs, International NGOs and external agencies with proven domain expertise
in case external intervention is required.

d. EDUCATION: Charged with delivering value for both business and society, and, we take education
as our foremost responsibility and support child education, because children are our future.

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The urban Schools are developing infrastructure & facilities, teaching patterns and skills to improve the
teaching aptitudes of their teachers. On the other hand primary schools in rural areas are struggling with
basic infrastructure, lack of good teachers, less wages for teachers, and lack of good academic performance
of the students.

To provide quality education, DAV Vicat Vidya Mandir was set up at Kalburgi Plant. 70% of students are
from neighbouring villages. Digital Education classes are held for higher class students for interactive
learning process. At present 250 children pursue education from LKG to VII. A similar school operates in
Kadapa plant area as well as.

To encourage meritorious students, 4 bright students from primary and high school were awarded
scholarships for higher education. The students can utilise the scholarship amount when they turn18.

e. HEALTH/SANITATION: One of the most important sector to pay serious attention is the Health
and Sanitation in the rural part of our country. And we try to make sure they receive that basic health and
sanitation amenities

The villages and its denizens around Kalburgi and Kadapa Plant lacked basic health, sanitation and drinking
water facilities spreading illness. Woman especially had to face a lot of issues when it came to sanitation,
hence, 2 community toilets were built in Chatrasala and Kherchkhed under Kalburgi Plant.

At Kalburgi plant, a Primary Health Center was set up at Chatrasala with a dedicated doctor visiting the
center each day and a gynecologist visits once a week as the nearest Primary Health Center was located in
Chincholi 10 kms away. Around 200+ people visit the clinic and are benefited, also the prescribed medicines
are provided at no cost.

The center has a panel experts from Hyderabad for online consultation apart from physical doctor. So far,
4,500 patients have visited and were diagnosed. Apart from health, safe drinking water was a perennial
issue. 7 reverse osmosis safe drinking water plant were set-up in Chatrasala benefiting 7,000 villagers.
Naandi Foundation manages the operations and maintenance. These RO plants also became a source of
livelihood for the villagers. Awareness drives on water and sanitation are being carried out periodically

f. INFRASTRUCTURE:

Laying of concrete roads in the adopted villages, construction of schools, community hall and uplifting
places of worship and many such local initiatives are undertaken.

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Rural infrastructure is not only a key component of rural development but also an important factor in
ensuring any sustainable poverty reduction programme. The proper development of infrastructure in rural
areas improves rural economy and the quality of life promoting better productivity, increased agricultural
incomes, adequate employment, etc.

Kalburgi Plant has adopted 5 villages for social development. Chatrasala, Kherchkhed, Burugpalli,
Garagpalli and Irugpalli. The villages lacked basic infrastructure with puddled slushy streets and mosquitoes
breeding resulting in unhealthy living conditions. 6000 meters of laid concrete roads significantly improved
the living conditions impacting the lives of 7,000 villagers.

Kadapa Plant has adopted 8 villages that were considered for holistic development. Nallalingayapalli,
Pandillapalli, J. Kothapalli, Agasthalingayapalli, T. Sunkesula, Thippaluru, Gollapalli and Thurakapalli. The
villagers have emphasized for better road as these villages lack good roads resulting in insufficient
transportation and connectivity to other places. Children faced problem reaching schools, especially in
monsoons due to water clogged roads. We have built a 3 kilometers road in Nallalingayapalli, Thurakapalli,
Pandillapalli and T. Sunkesula impacting 6,400 villagers.

CSR ACTIVITES DONE BY THE INDUSTRY

EDUCATION INFRASTRUCTURE

HEALTH

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4.12 WHAT WE OFFER:

Even though our product cannot be serviced once sold we still offer a host of services that could be
beneficial for any end user or our channel partners.

a. MOBILE CONSTRUCTION ADVISOR: MCA:

Bharathi Cement offers laboratory testing facilities of concrete at your door step where the concrete is tested
under standard lab conditions.

At Bharathi we believe in total customer satisfaction. Bharathi cement offers laboratory testing facilities of
concrete at your door step. Your concrete is tested under standard laboratory conditions and test certificates
are issued. The services of experienced civil engineers can be availed.

4.12.1 FACILITIES OFFERED:

 Demonstrations, tips on good construction practices, informative lectures and on-site video
presentations

 On-site training for masons and site supervisors

 Advice on concrete mix proportion

 Testing of fresh and hardened concrete ensuring its superior quality

 NDT (Non Destructive Testing) facilities

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 CHAPTER 5

FINDINGS/CONCLUSIONS/RECOMMENDATIONS/LEARNING OUTCOMES

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 CHAPTER 5

5. FINDINGS/CONCLUSIONS/RECOMMENDATIONS/ LEARNING OUTCOMES

5.1 FINDINGS:

 On the average every vehicle spends nearly 5 hours to complete their process from parking lot to
gate out. The time wastage can be reduced by issuing computerized token.

 The management of inventory should ensure that no inventories are lying in stock for log time.

 Motivation and industrial training facilities should be provided to worker in a convenient manner.

 Remuneration policy will helps to improvement in productivity.

 Improvement or changes could be bought in the work atmosphere so that it may increase
productivity results

 An value the human resource of vital asset. People are always the strength of 'Bharathi Cement'.
Recognizing this, the Company gives great importance to provide.
 Professional Management, a work culture that allows its members a space to learn, innovate and
grow. It gives its people the freedom to think differently, and work as a team to achieve
organizational goals.

5.2 Awards & Recognition:

 Received ―Asia‘s Most Promising Brands Award‖ by World Consulting and Research Corporation
(WCRC) at Bangkok, Thailand on 17th March 2016.

 Received ―Glam Me‖ award at Las Vegas on 24th June 2013.

 Received ―International Gold Star Award‖ at Dubai on 18th November 2013.

 Received ―Excellence in Latest Technology-Cement‖ at Chennai on 25th January 2014.

 Received ―3 Star Rating in Appreciation of

 EHS Practices for Kadapa Plant at Chennai on 7th March 2014.

 Received ―Asia‘s Most Promising Brands Award‖ at Gurgaon, Delhi on 12th January 2015.

 Received ―Excellence in HI Tech Cement Technology Award‖ at Chennai on 24th January 2015.

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  Received ―3 Star Rating in Appreciation of EHS Practices‖ for Gulbarga Plant at Chennai on 14th
March 2015.

 Received ―3 Star Rating in Appreciation of EHS Practices‖ for Kadapa Plant at Chennai on 14th
March 2015.

 Received ―Unnatha Suraksha Puraskara‖ for Kalburgi Plant at Bengaluru from National Safety
Council, Bengaluru.

5.3 SUGESSTIONS

 Bharathi Cement Company, sales officer visit the dealer regularly that is once in every month.
 Bharathi Cement Company should give credit facility to its dealers.
 Bharathi Cement Company should pay much attention towards warehousing and transportation
facilities.
 Bharathi Cement has earned a good name in the market. It should maintain and improve the same its
price is high than the other cements.
 Some types consumers observe only price of the product in this regard BHARATHI fails to
participate in the cement market so product price will be maintain and economic level.

5.4 CONCLUSION:
The Organizational study report of ―BHARATHI CEMENTS, KADAPA‖ has given me deep
knowledge about the organization and the cement industry. The data with regard to the study collected
from the company helps to understand the process of production of cement industry each department in
the company was analyzed in detail various processes are controlled and monitored under the skilled
supervision and skilled labours. The study given information about the manufacturing products,
organizational structure of the company, departmental functions and gives a good knowledge about the
financial position of the company the co-operation and interaction extent by the employees.

This organizational study has enriched my knowledge on industrial practicalities through this
organizational study. Swot analysis, Pest analysis and porters five forces model helped me to analyse
the internal and external environment of the organizations through the different functions ,process and
performance of the organization like Production , marketing ,finance , H.R, quality etc. The finding of
the survey is enough proof to show that Bharathi cements ranks high quality, composition etc.,

.
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5.5 BIBLIOGRAPHY:

a. REPORTS

 Company Profile
 Primary data by visiting the plant
 Secondary data collected inside the firm
 Company brochures
 Internet, company‘s site
b. BOOKS
 Human Resource Management - K ASWATHAPPA
 Marketing Management - Philip Kotler-4"edition
 Principles of Management
c. WEBSITES:
 www.google.com
 www.bharathicement.com
 www.economictimes.indiatimes.com

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