“ANALYSIS OF WORKING CAPITAL MANAGEMENT”

AT
KAJARIA CERAMICS LIMITED,
SIKENDRABAD {BULANDSHAHR}
SUMMER TRAINING PROJECT REPORT
SUBMITTED TOWARDS PARTIAL FULFILLMENT
OF
BACHELOR OF BUSINESS ADMINISTRATION
(AFFILIATED TO CH. CHARAN SINGH UNIVERSITY,
MEERUT)
ACADEMIC SESSION
[2015-2018]

Submitted By:

SHUBHAM DUHAN
Roll No.:1593509671

UNDER THE GUIDANCE OF:

EXTERNAL SUPERVISOR INTERNAL SUPERVISOR

Mr. Vishal Srivastava Mrs. Akansha Tyagi
(Account Manager) (Assistant Professor)
(Kajaria Ceramics Ltd.) IMS,Ghaziabad

INSTITUTE OF MANAGEMENT & STUDIES, GHAZIABAD

(UNIVERSITY COURSES CAMPUS)
NH-24, ADHYATMIC NAGAR, GHAZIABAD

i
 DECLARATION

I Shubham Duhan(1593509671) hereby declare that the Research Project Report titled

“Analysis of Working Capital Management at Kajaria Ceramics Ltd. is an original

work done by me under the guidance of Mrs. Akansha Tyagi (Associate Professor) and no

part is taken from any other project or material published or otherwise submitted to any other

college or institute.

Date: Name: Shubham Duhan

Place: BBA-VIth Sem.

Roll No. 1593509671

ii
 ACKNOWLEDGEMENT

It has provided me a platform to nurture all the skills and techniques required for

doing this project. For any endeavor to be undertaken for efforts of many are required

and this effort would not have been completed without them.

At first, I deeply express my gratitude to my Mrs. Akansha Tyagi (Assistant

Professor) and my faculty guide for giving necessary instruction and guidance on

how to pursue this research project. I really found your guidance extremely

helpful at every step to the research and in analyzing the various facts and figures.

I feel great pleasure in expressing my gratitude to my Company Guide Mr. Vishal

Srivastava (Account Manager-Kajaria Ceramics Ltd.).

I am sincerely thankful to the above people who were very kind and co-operative with

us when ever we needed them.

Name: Shubham Duhan

BBA-VIth Sem.
Roll No. 1593509671

iii
 EXECUTIVE SUMMARY

This report aims at analyzing and reporting on the working capital management of Kajaria
Ceramics Ltd for the brand of Kajaria. Pioneering role that it has played in the evolution of
the categories it has had a presence in. Kajaria Ceramics is the popular brand in the tiles
category and captures the 16% market share and reaches the no.2 position in the ceramics
tiles industry. In 1988 Kajaria pioneered the concept of branded tiles and since has invested
heavily in product development, clinical studies and consumer awareness. The product is
essentially a floor and wall tiles.
This report is not aiming at the overall marketing mix or the marketing strategy of Kajaria
Ceramics Ltd, but is an attempt to analyse the working capital of Kajaria tiles.

The consumer’s patriotic love for floor and wall tiles is unfared. Kajaria yet to establish their
tiles use in the average houses hereinlies the great opportunities. Within the market, it is safe
to conclude that Kajaria has hit off rather well with the masses. Kajaria has clearly lost it
head start advantage and thereby acquiring just 16% of the market share while others enjoy
rest of the market share. This could be well attributed to Kajaria successful ATA
(Availability, Taste and Affordability) marketing module, the attributes most rated by the
consumers. Lack of publicity has hampered the growth progress of the brand so aggressive
advertising is needed to promote tiles. The brands such as that of Kajaria tiles by Mr.
Chetan Kajaria, a gold medalist in Engineering from Pune University and
MBA from Boston College, USA. Another fact which has helped the company
to control its cost is the supply of piped natural gas, which ended the
company dependence on LPG\LDO in addition to reducing cost.
The report also enlists various recommendations based on BCG Growth Share Matrix
analysis, SWOT Analysis etc. This analysis has been done on the basis of the information
gathered from the company website and other online resources and books and articles.

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 TABLE OF CONTENTS

S.No. Topic Page no.

Certificate I
Declaration II
Acknowledgement III
Executive Summary IV
1. Introduction 1-3
2. Company profile 4-23
2.1 Milestones
2.2 Mission
2.3 Translating vision
2.4 Performance of kajaria ceramics
2.5 Products profile
2.6 Competitors
3. Literature Review 24-26
4. Working Capital Mamagement 27-48
4.1 Defining Working capital
4.2 Classification of Working capital
4.3 Components of Working Capital
4.4 Working capital policies
4.5 Cash Management
4.6 Management of Accounts Receivables
4.7 Budget and Safety Stocks
4.8 Blue Print of Good Working Capital
Management Policy
4.9 Ratio analysis
5 Research methodology 49-53
5.1 Objectives
5.2 Sample Design
5.3 Data Collection
6 Data Analysis 54-67
7 Results and Findings 68-70
8 Limitations 71-72
9 Recommendations 73-75
10 Conclusion 76-77
Bibliography 78-79
Annexure 80-81
Balance Sheet 2015-16 82-86