TOC-H INSTITUTE OF SCIENCE AND TECHNOLOGY

COCHIN UNIVERSITY

REPORT ON
Organization Structure Study of CEMA
Electric Lighting Products India Pvt.
Ltd.

ABDUL SAMAD P.K

6/5/2010
ACKNOWLEDGMENT
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It gives me extreme pleasure and satisfaction to express my sincere thanks to all
those who helped me directly and indirectly to make this study a faithful one.

First of all, I would like to express my gratitude to my research guide

Mr.Biju(faculty, MBA department) for the unlimited encouragement and
generous help without which this study would not have been completed. And also
I would like to express my sincere thanks to Dr. Job V. Kuruvilla, Principal of Toc H
College and all the faculty members of MBA Department.

I like to express my heartfelt gratitude to Mr.Ramesh Chandra the (V.P

Operations) and Mr. Vijay Krishnan (project guide) and all those employees of
CEMA ELECTRICS PVT INDIA Ltd who gave me their support and information
necessary for this study. And I remember with gratitude all my friends and
classmate for their unreserved support.

I am very much thankful to almighty god for showering his blessings to complete
my project successfully.

ABDUL SAMAD P.K

Contents

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1.    Excutive Summary.

2.   Objective. 

3 .   Scope.  

4.     Introduction – Types of Organizational structures.

5. CEMA Organizational Profile (refer attached file)

a.  Products

b.    Distribution Channel

c. Organizational Process

d.    Regional Structure – North, South, East , West

6.     Current Organizational Structure

a.     Current organizational structure

b.      Competence assessment

7.     Conclusion and Recommendations.

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Excutive Summary

I underwent an organizational study at CEMA Electric Lights And Products Pvt Ltd situated at
Bangalore to acquaint myself with the business environment for a period of one month as a part
of the MBA curriculum at Toc-H Institute of Science and Technology of the Cochin University .

CEMA Electric Lighting (CEMA) is a leading lighting solutions company with a major presence
in the Home and Professional Lighting segments in India catering to around 2 lakh retail outlets
through its network of over 600 distributors.

The company was formed in Jan 2007 from the acquisition of General Electric’s Consumer Lighting
Business in India along with the CEMA brand and currently has over 750 employees. CEMA’s vision
is to grow into a leading provider of lighting products in the world offering state-of-the-art, cost
effective lighting solutions that enhances the lifestyle of the customer.

The company manufactures and markets a wide variety of lighting products including Compact
Fluorescent Lamps (CFL), Tubular Fluorescent Lamps (FTL), High Intensity Discharge Lamps (HID)
and Metal Halide Lamps (MH), Domestic & Commercial Light Fixtures.

The primary source of revenue for CEMA is from the Consumer Sales channel. Other channels
available for sale of products are LISO (for Made to Order products, Exports (for sales outside
India) and Components & OLM Sales (for lamp components and branding of lamps for other
companies in the Lighting industry).The company has branches at different regions i.e
south,west,east,north. Each branch has a Branch manager who is the in-charge of the all the
functions in the particular branch.

Organization structure involves formal and recognizes structure where in each and every
individual and group have a definite relationship with each other, have a specified area of exist
function to perform, authority to mobilize resources, obligation to act, responsibility for
achieving the objective and accountability for their performance.The company has mainly four
departments i.e Sales&Marketting,Operations,Finance & HRM department.

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The study was conducted to understand the structure, function and processes of various
departments and their interdependence. During the course of study I was able to successfully
interact with the various heads of the organization. They were happy to give me all possible
information.

The methodology consists of data collection through interview, observation and literature
review. The data collected from different sources are classified, analyzed and interpreted. Based
on which an organizational structure, its functions and various departments are identified. The
various departmental functions are clearly identified and their processes & activities carried out
are recorded.

An in-depth analysis is made us to understand the departmental process based on which a

process chart is prepared. The analysis further formed the basis for identifying the departmental
interdependence.. The various departmental functions are clearly identified and their processes &
activities carried out are recorded. The study further revealed some of the challenges faced by the
departments.

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OBJECTIVES
The following are the primary objectives of the study on the Organizational Structure of
CEMA Electric Lighting.

 To understand the organizational structure or hierarchy of the company

 To understand the working of the various departments

 To enable us to gain an insight in to the corporate world.

 To understand the responsibilities and duties carried out by each department.

SCOPE:

The scope of this study is limited to the following:

 Studying the organizational structure of CEMA Sales and Marketing Organization

head quartered at Bangalore till 3rd level

 Understanding the roles and responsibilities of various functions within the

organization and their inter-relationships

 Providing pertinent recommendations based on the analysis of the current

organizational structure keeping in view the overall objective of the company.

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INTRODUCTION

Organization study is the study of organizational structure or hierarchy of the company.

The study was conducted with a view to understand functions of CEMA lights and its various
departments. The main objective of the study is to identify various positions held by each
person in each departments and their duties and responsibilities to the firm for achieving the
common goal of the organization.

Organization structure involves formal and recognizes structure where in each and every
individual and group have a definite relationship with each other, have a specified area of exist
function to perform, authority to mobilize resources, obligation to act, responsibility for
achieving the objective and accountability for their performance. It’s an arrangement of activities
and assignment of activities and assignment of personnel to their activities in order to achieve the
organizational goal.

Types Of Organization Structures

1. Bureaucratic structures

Bureaucratic structures have a certain degree of standardization. They are better

suited for more complex or larger scale organizations. They usually adopt a tall
structure. Then tension between bureaucratic structures and non-bureaucratic is
echoed in Burns and Stalker]distinction between mechanistic and organic
structures. It is not the entire thing about bureaucratic structure.

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2. Functional structure

Employees within the functional divisions of an organization tend to perform a

specialized set of tasks, for instance the engineering department would be staffed
only with software engineers. This leads to operational efficiencies within that
group. However it could also lead to a lack of communication between the
functional groups within an organization, making the organization slow and
inflexible.
3. Divisional structure

It is also called a "product structure", the divisional structure groups each

organizational function into a divisions. Each division within a divisional structure
contains all the necessary resources and functions within it. Divisions can be
categorized from different points of view.

4. Matrix Structure

The matrix structure groups employees by both function and product. This

structure can combine the best of both separate structures. A matrix organization
frequently uses teams of employees to accomplish work, in order to take advantage
of the strengths, as well as make up for the weaknesses, of functional and
decentralized forms.

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INDUSTRY PROFILE

The lighting industry in India is growing at nearly 17 to 18% per annum over the
last two to three years to an annual turnover of Rupees 7500 crores plus.
ELCOMA, is an Association of Electrical Lighting Manufacturers in India. Till
recently, membership to this Association was restricted only to lamp and
component manufacturers, but by a decision in the Governing Body it has been
decided to extend membership to manufacturers of luminaries and accessories as
well.

In order to focus attention on this industry and ensure that it derives the maximum
attention by the policy makers within the Government, Elcoma has established a
Secretariat in Delhi to follow up not only with the Government, but with all
concerned stake holders and decision makers.
Recognizing the Government policy of reserving certain lighting areas of
manufacture for the Small Scale, Elcoma has now opened its doors to this sector.
The association has, already been accepted by all concerned as the apex body for
the lighting industry in India. This has enabled the association to represent to the
Government for issues and problems faced by the industry, and its success in this
regard is quite well known. The Cema is a member of the ELCOMA association.
Industry expected to grow at 10-12% in the next few years.

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Major players 

Company Profile

CEMA Electric Lighting is a leading lighting solutions company with a major presence in the
Home and Professional Lighting segments in India catering to around 2 lakh retail outlets
through its network of over 600 distributors.

The company manufactures and markets a wide variety of lighting products including Compact
Fluorescent Lamps (CFL), Tubular Fluorescent Lamps (FTL), High Intensity Discharge Lamps (HID)
and Metal Halide Lamps (MH), Domestic & Commercial Light Fixtures.

CEMA’s vision is to grow into a leading provider of lighting products in the world offering state-of-
the-art, cost effective lighting solutions that enhances the lifestyle of the customer. CEMA operates
on its core principles; value for its people and a strong commitment to a clean environment.

CEMA owns the CEMA brand and also possesses a license from General Electric Corp. to manufacture
and market consumer lighting products under the GE brand name in India, Sri Lanka, Bangladesh, Nepal,
Bhutan and Maldives. Both the CEMA and GE brands have a high equity and acceptability in the Indian
lighting market.

The company was formed in Jan 2007 from the acquisition of General Electric’s Consumer Lighting
Business in India along with the CEMA brand and currently has over 750 employees. CEMA Electric
Lighting Products India Private Ltd. (CEMA) is a subsidiary of Saratoga Lighting Holdings; a company
focused on the global lighting industry and has operations in several countries including USA, China and
India.

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Saratoga Lighting is a portfolio company of Saratoga Partners, a U.S. based private equity firm that
manages a group of investment limited partnerships with approximately $750 million of committed and
invested institutional equity funds. Since 1984, the Saratoga partnerships has acquired or invested in 33
portfolio companies with an aggregate enterprise valuation of approximately $3.7 billion in a variety of
industries.

CEMA is led by Chief Executive Mr. Sabu Krishnan, who has spent more than 26 years in the lighting
industry and has significant experience in running international operations.

CEMA manufactures its light source and glass products at its facility in Limbasi, Gujarat. With its Sales
and Marketing headquarters in Bangalore, CEMA operates 15 regional/branch offices in India.

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PRODUCT PROFILE

CEMA has over 300 SKU’s in consumer, commercial, roadway and industrial lighting and
brings you a complete range of lamps, luminaires, accessories and

control gear.

Major Product categories include:-

Downlighters

DISTRIBUTION CHANNEL

The primary source of revenue for CEMA is from the Consumer Sales channel. This is primarily Made-
to-stock products stocked at various branch locations and sold to the registered Distributors/Dealers of the
company. They in trun sell the products to the retailers who will sell the product to end customers.

Other channels available for sale of products are LISO (for Made to Order products, Exports (for
sales outside India) and Components & OLM Sales (for lamp components and branding of lamps
for other companies in the Lighting industry)

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M
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ORGANISATIONAL PROCESS

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ORGANISATIONAL CHART

Level -1

Functional Areas

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Level -2
Sales & Marketing

 Product management
 Sales

Operations

 Sourcing/Vendor Development
 Purchase
 Logistics
 Branch operations

 Finance
 Human Resource Management

Roles, Responsibilities and Competency Analysis

1. Director

 He provide leadership ,vision & guidance to for the entire organisation .

 He has to define the Quality policy and objectives and ensure that they are understood
across all levels .
 He has to define clearly the responsibilities and authorities of Heads of departments.
 Communicating to the organization the importance of meeting customer requirements as
well as statutory and regulatory requirements.
 He has the authority to appointing management representatives,giving approval of
quality policy & objectives and give sanctioning of resources.
Competency

Education: MBA

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Experience : 15-20 years in Lighting, FMCG or Consumer Goods manufacturing and marketing company
having handled range of commercial, operations and technical responsibilities in a leadership role.

Assessment: Meets Requirements

2. V.P Sales & Marketing

a. Preparation of   Strategy for4 P’s of Marketing i.e Product, Price, Place and Promotion.

b. Plan for new product introductions and fixing Product Price and Schemes.

c. He has the authority to provide approval for new channel partners and give sanction for special
price approvals.

d. It is the duty of V.P is that to review the customer satisfaction and dissatisfaction of data.

Competency

Education: MBA

Experience : 10-15 years in Lighting, FMCG or Consumer Goods manufacturing and marketing company
having handled range of commercial and technical responsibilities.

Assessment: Meets Requirements

3. Product Manager
The main duty of Product manager is to conducting continuous market research about the
product and take initiative for New Product Identification (N.P.I).
b. Collection and analysis of customer feedback about the product.
c. The Product manager is only the person who has the authority to give initial approval for
launching all products.
Competency

Education: MBA

Experience : 3-10 years in Lighting manufacturing and marketing company having handled sales and
product management.

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Assessment: Meets Requirements

4. DGM Engineering and Quality

a. The main duty is to clearly define and manage the Quality management system of the
organization.
b. He is responsible for communicating clearly the quality policy to different levels in the
organization & ensures that proper training and education relating to the policy is getting various
levels in the organization.

c. collection and analysis of customers compliance and take corrective actions.

d. He has the authority to enforce compliance to Quality procedures and policies at all levels in
the organization
Competency

Education: Post-Graduate in Engieering/Quality

Experience : 8-10 years in Lighting or Consumer goods manufacturing firm having handled roles in
Design, Engineering, Quality & Process Excellence

Assessment: Meets Requirements

2. VP Operations
a. The V.P Operations is responsible for formulating long-term strategic source plan and
selection of vendors for products.
b. Pricing the products and negotiation with vendors and decision on logistic models.

Competency

Education: Post-Graduate in Operations Management / MBA (Operations Management)

Experience : 10-15 years in Lighting or Consumer goods manufacturing firm having handled
leadership roles in Sourcing & Vendor development, Logistics or Manufacturing.

Assessment: Meets Requirements

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AGM Sourcing

a. He has to forecast demand based on inputs received from various branches and sales and plan
requirements as per forecast and customer orders.
b. He has to raise Purchase Orders and proper and allocation of material to branches.
c. He has the authority to issue purchase orders after approval and allocation to various branches.

Competency

Education: Post-Graduate in Engineering/ MBA (Operations Management)

Experience: 8-10 years in Lighting or Consumer goods manufacturing firm having handled leadership

Asst Manager Purchase

a. He is responsible for acquiring rawmaterials according to the demand of the firm and
forecast the demand for raw materials.
b. He must ensure that availablty of raw materials for countinous production without any
distruction in production process.

Education: Graduate in Commerce

Experience : 8-10 years in Lighting or Consumer goods manufacturing firm having handled leadership
role in Purchase

Assessment: Meets Requirements

Asst. Manager National Logistics

a. He is responsible for storing and maintaining products properly at warehouse and preparation
of accounts.
b. He makes ensure that goods are free from damages and deterioration and continuous
monitoring of branch activities.
c. He has the authority to give approval for expenses for branch and approval for material
transfer between resources.

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Education: Graduate in Operations Management/ MBA (Operations Management)

Experience : 8-10 years in Lighting or Consumer goods manufacturing firm having handled leadership
role in Logistics, Branch management and handling C&FA’s in a pan-Indian setting.

Assessment: Meets Requirements.

FINANCE DEPARTMENT

The department functions under the supervision and direction of the Chief Finance Officer,
Regional Manager Accountant and Branch Accountant.

The Branch Accounts are accountable to Regional accountant and regional account managers are
accountable to Chief finance Officer.

Objectives

a. To manage and account for the financial resource of the organization, to forecast its
requirement in the future and plan accordingly and take corrective actions against
deviations.
b. Report the financial performance of the company to Management and stakeholders and to
comply with Govt. rules and regulations.

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Human Resource Department
a. The H.R Manager is responsible for recruiting and placing personnel as per the needs of
the company and to maintain potential workforce for continuous growth.
b. The Administrative functions of the organizations are also performed by the H.R
manager.
c. Forecasting the demand for employees for the future and take necessary actions.
Regional Structure

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Branch Structure

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Each branch has a Branch manager who is the in-charge of the all the functions in the particular
branch and a Branch Accountant will be there to control financial activities of the branch. The
Branch accountant controls inflow and outflow of cash and meets financial needs of the branch.
The branch manager is accountable to R.B.M and the Branch Accountant is accountable to
R.M.A.

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Conclusion & Recommendations

The study conducted on Orgnizational structure of CEMA Electric Lighting achieved its
pertinent objectives:-

 Organzational structure of CEMA with its various functions and their inter-relationships
were studied.
 Roles and resposnsibilities of different functions outlined were delved.
 Competencies necessary for different roles were outlined and an assessment was
conducted as to whether the persons performing respective roles had the required
competencies.

The following were the major findings and the corresponding recommendations from the study:

 The HR department does not presently involve itself with the Recruitment, Competence
Assessment, Training and employee development related issues. It is necessary to have
a HR Specialist take charge of this role to ensure crucial areas of Traninig,
Employee Development, Recruitment. HR should also play an important role in
Employee Appraisals along with the Function Heads.

 Compentencies of the different roles have been defined and the current
managers/function heads meet these requirements. However, there is no mechanism for
an ongoing evaluation such as annual appraisal acitivity. It is highly recommended to
include Competence requirements and assessment in the Annual appraisal activity.

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 There is an absence of succession and business continuity planning to ensure continuity.
There were a few instances highlighted during interviews with Function heads where a
vacancy due to a person’s resignations had led to discontinuity in services provided by
that Function. Success Planning, and Business Continuity Planning is to be
integratged into the Core planning processes of CEMA.

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