Professional Documents
Culture Documents
The Bengal Iron Works was founded at Kulti in Bengal in 1870 which began its production in 1874
followed by The Tata Iron and Steel Company (TISCO) was established by Dorabji Tata in 1907, as
part of his father's conglomerate. By 1939 it operated the largest steel plant in the British Empire.
The company launched a major modernization and expansion program in 1951.
Prime Minister Jawaharlal Nehru, a believer in socialism, decided that the technological revolution
in India needed maximization of steel production. He, therefore, formed a government owned
company, Hindustan Steel Limited (HSL) and set up three steel plants in the 1950s.
The Indian steel industry began expanding into Europe in the 21st century. In January 2007 India's
Tata Steel made a successful $11.3 billion offer to buy European steel maker Corus Group. In
2006 Mittal Steel (based in London but with Indian management) merged with Arcelor after a
takeover bid for $34.3 billion to become the world's biggest steel maker, ArcelorMittal (based in
Luxembourg City), with 10% of the world's output.
Humans are historically linked with making artifacts from materials such as ceramics, stone, wood,
and metal ore. Businesses and individuals add value to raw materials by altering their form,
refining, and processing them into more useful finished products.
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By adding value to raw materials, manufacturing creates wealth in the form of a profit, rendering it
a profitable venture. While people started to specialize in the skills classical to manufacturing
goods, other people provided businesses with funds to acquire materials and equipment.
The invention and improvement of steam engines and other technologies created an early modern
industrial era where companies adopted machines in the manufacturing process. While the change
increased the volume of finished products, it also reduced the number of workers needed to produce
them.
For example, assembly line manufacturing and mass-production reduced the need for part
customization. Instead, it allowed companies to manufacture replaceable parts while promoting the
availability of goods.
Labour productivity in India is less when compared with other nations like China due to the lag in
supply chain management, transportation, production planning and maintenance. Today, 62% of India’s
population is in the working-age group and more than 54% of the total population is below 25 years of
age.
Intellectual property protection & Enforcement: IP protection and enforcement is an expensive and
high risk in India. Another challenges with IP rights in India is that India is currently going through some
significant IP reforms, which make things more complex and, at least for now, uncertain.
Cost and fragmentation of transportation and logistics: transportation is very costly and slow in
India. It can take long delivery time to get product to the coasts from some places in India.
Furthermore, logistics are inferior. The positive point is that the Indian government notice this
problem in infrastructure and is working to resolve it.
Manufacturing skill gap: The engineers in today’s manufacturing industry still practice the tried and tested
manufacturing method. This is another challenge faced by many. Younger generations are faster at adopting latest
technology and embracing younger generation is essential to modernise the manufacturing industry.
Compucare has ease this challenge for a classic company with its innovative Production Monitoring Solution.
Compucare has also implemented this ideology and has modern, highly skilled work force, offering innovative solution.
Partnering with educational institutions.
This can ensure more young people are aware of the benefits of a career in manufacturing. In fact,
more and more manufacturing companies have been doing this. Case in point: 32% of Generation Z
has had a manufacturing career suggested to them, compared to only 18% of Millennials.
The reluctance of Banks: Currently, banks are hesitant to offer loans for industrial activities.
Biased trade regime: India’s trade regime is biased towards capital-intensive manufacturing.
Small enterprises, because of their smaller size, suffer from low productivity, preventing them from
achieving economies of scale.
Currently, India spends about 9% of GDP on research and development, a considerably small amount
when compared with other developed nations. This prevents the sector to evolve, innovate and grow.
MSME sector is facing tough competition due to the cheap imports from China and other countries that
have a free trade agreement with India.
Black money and corruption are also hindering the sector’s growth.
SWOT Analysis
3
• The strengths of the manufacturing industry are that it is
relatively stable. althought the demand for manufacturing
tends to fluctuate with the ups and downs of the economy,
it is characterized by regular periods of recorvery following
strengths any downturns. moreover, manufacturing has become
highly efficient over the last century, with the ability to
maxiimize both the productivity of the workers and
machines to maximize profits.
4
Table 1.1 SWOT analysis
Major Players in the sector
A. List of Top 10 Manufacturing Companies in India
i. UPL LTD
ii. UltraTech Cement LTD
iii. Motherson sumi system LTD
iv. JSW steel LTD
v. Grasim Industries LTD
vi. Maruti Suzuki India LTD
vii. Mahindra & Mahindra LTD
viii. Hindalco Industries LTD
ix. Tata steel LTD
x. Tata motors LTD
B. GDP from Manufacturing in India increased to 6315.03 INR Billion in the first quarter of
2021 from 5558.84 INR Billion in the fourth quarter of 2020. GDP From Manufacturing in India
averaged 4753.03 INR Billion from 2011 until 2021, reaching an all-time high of 6315.03 INR
Billion in the first quarter of 2021 and a record low of 3331.04 INR Billion in the third quarter of
2011. This page provides - India GDP from Manufacturing- actual values, historical data, forecast,
chart, statistics, economic calendar and news.
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Global Perspective
The manufacturing sector is a major part of the economy as it accounts for nearly 16% of the global
GDP in 2018. As a result, the government across the countries primarily focuses on encouraging the
manufacturing sector. Certain initiatives in emerging economies to promote the manufacturing
sector include Make in India and Made in China (MIC) 2025. MIC 2025 is the first stage of a larger
three-step strategy to transform China into a leading manufacturing power. The initiative seeks to
move China up the manufacturing value chain by utilizing innovative manufacturing technologies
or smart manufacturing.
In addition, Make in India is an initiative was launched in 2015 to encourage the production of
goods in India. This aims to reduce India's dependency on exporting nations by producing goods in
their own country. Since the launch of Make in India, FDI in the country has followed an optimal
trend. During the period, April 2014 to March 2019, FDI inflow in India was $286 billion, which is
nearly 46.9% of the overall FDI received in the country since April 2000 ($592 billion). This
resulted in owing to the investment-friendly policies and opening of FDI allowance in several
sectors.
The global manufacturing sector has undergone a tumultuous decade: large developing economies
leaped into the first tier of manufacturing nations, a severe recession choked off demand, and
manufacturing employment fell at an accelerated rate in advanced economies. Still, manufacturing
remains critically important to both the developing and the advanced world. In the former, it
continues to provide a pathway from subsistence agriculture to rising incomes and living standards.
In the latter, it remains a vital source of innovation and competitiveness, making outsized
contributions to research and development, exports, and productivity growth. But the manufacturing
sector has changed—bringing both opportunities and challenges—and neither business leaders nor
policy makers can rely on old responses in the new manufacturing environment
Summary
Manufacturing is the production of goods through the use of labour, machines, tools ,
and chemical or biological processing or formulation. Manufacturing began in the 19th century.
There are some challenges which faced by the manufacturing sector. And in manufacturing sector
there also strength, threats, opportunities, weaknesses. The manufacturing sector is a major part of
the economy as it accounts for nearly 16% of the global GDP in 2018. In the manufacturing
business are responsible for the safe and efficient planning, management and maintenance of
production methods and processes. Typical areas of work include: Research, Designs, development,
production and Quality assurance.
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CHAPTER:2 Company profile
Mena
xv. Sohar, oman
Kuwait
xvi. Eastern plaza, fahaheel
xvii. Egaila, Kuwait
UAE
xviii. Abu Dhabi, UAE
xix. Qasimiya street, Sharjah, UAE
Saudi Arabia
xx. Dammam, Al kho
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2.1.4 Brief history
Larsen & Toubro originated from a company founded in 1938 in Mumbai by two Danish
engineers, Henning Holck-Larsen and Soren Kristian Toubro. The company began as a
representative of Danish manufacturers of dairy and allied equipment. However, with the start of
the Second World War in 1939 and the resulting blockade of trade lines, the partners started a small
workshop to undertake jobs and provide service facilities. Germany's invasion of Denmark in 1940
stopped supplies of Danish products. The war-time need to repair and refit and degauss ships
offered L&T an opportunity, and led to the formation of a new company, Hilda Ltd, to handle these
operations. L&T also started to repair and fabricate ships signalling the expansion of the company.
The sudden internment of German engineers in British India (due to suspicions caused by
the Second World War), who were to put up a soda ash plant for the Tata's, gave L&T a chance to
enter the field of installation.
In 1944, ECC (Engineering Construction & Contracts) was incorporated by the partners; the
company at this time was focused on construction projects (Presently, ECC is the construction
division of L&T). L&T began several foreign collaborations. By 1945, the company represented
British manufacturers of equipment used to manufacture products such as hydrogenated
oils, biscuits, soaps and glass. In 1945, the company signed an agreement with Caterpillar Tractor
Company, USA, for marketing earth moving equipment. At the end of the war, large numbers of
war-surplus Caterpillar equipments were available at attractive prices, but the finances required
were beyond the capacity of the partners. This prompted them to raise additional equity capital, and
on 7 February 1946, Larsen & Toubro Private Limited was incorporated.
After India's independence in 1947, L&T set up offices in Calcutta (now Kolkata), Madras
(now Chennai) and New Delhi. In 1948, 55 acres of undeveloped marsh and jungle was acquired
in Powai, Mumbai. A previously uninhabitable swamp subsequently became the site of its main
manufacturing hub. In December 1950, L&T became a public company with a paid-up capital
of ₹20 lakh (equivalent to ₹18 crore or US$2.5 million in 2019). The sales turnover in that year
was ₹1.09 crore (equivalent to ₹97 crore or US$14 million in 2019). In 1956, a major part of the
company's Mumbai office moved to ICI House in Ballard Estate, which would later be purchased
by the company and renamed as L&T House, its present headquarters.
During the 1960s, ventures included UTMAL (set up in 1960), Audco India
Limited (1961), Eutectic Welding Alloys (1962) and TENGL (1963).
In 1965, L&T had been chosen as a partner for building nuclear reactors. Dr. Homi Bhabha, then
chairman of the Atomic Energy Commission (AEC) had in fact first approached L&T in the 1950s
to fabricate critical components for atomic reactors. He convinced Holck-Larsen, a friend with
whom he shared an interest in the arts that the company could do it, indeed must do it. L&T has
since contributed significantly to the Indian nuclear programme ... Holck-Larsen was once asked by
a junior engineer why L&T should get into building nuclear power plants when companies in the
US and Germany were losing money on nuclear jobs. He replied: 'Young man, India has to build
nuclear power plants.
During the 1970s, L&T was contracted to work with Indian Space Research Organisation (ISRO).
Its then chairman, Vikram Sarabhai, chose L&T as manufacturing partner. In 1972, when India
launched its space programme, L&T was invited to participate.
In 1976, ECC bid for a large airport project in Abu Dhabi. ECC's balance sheet, however, did not
meet the bid's financial qualification requirement. So it was merged into L&T. ECC was eventually
rechristened L&T Construction and now accounts for the largest slice of the group's annual revenue.
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In 1985, L&T entered into a partnership with Defence Research and Development
Organisation (DRDO). L&T was not yet allowed by the government to manufacture defence
equipment but was permitted to participate in design and development programmes with DRDO.
After the design and development was done, L&T had to hand over all the drawings to DRDO. The
government would then assign the production work to a public sector defence unit or ordnance
factory for manufacture. After a series of successes and positive policy initiatives, L&T today
makes a range of weapon and missile systems, command and control systems, engineering systems
and submarines through DRDO.
9
10
11
Table 2.1 organizational structure of L&T
Weakness
• slowdown in middle east
• average experience employee age nearing retirement
• huge attrition rate
• low employee satisfaction
• week global reach
• lack of innovation
opportunities
• major infrastructure project coming up (govt.)
• india's growth rate above 10%
• opportunities from other south Asian countries (less dev)
• global economic recovery
• investment in Defense sector
Threats
• Threat of a second Global Financial Turmoil
• vendor issues
• goverment policies
• competitors
• Taxation policies
• Inflationary and cost pressures
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Reliance
1960–1980
The company was co-founded by Dhirubhai Ambani and Champaklal Damani in 1960's as Reliance
Commercial Corporation. In 1965, the partnership ended and Dhirubhai continued
the polyester business of the firm. In 1966, Reliance Textiles Engineers Pvt. Ltd. was incorporated
in Maharashtra. It established a synthetic fabrics mill in the same year at Naroda in Gujarat. On 8
May 1973, it became Reliance Industries Limited. In 1975, the company expanded its business into
textiles, with "Vimal" becoming its major brand in later years. The company held its Initial public
offering (IPO) in 1977. The issue was over-subscribed by seven times. In 1979, a textiles company
Sidhpur Mills was amalgamated with the company. In 1980, the company expanded its polyester
yarn business by setting up a Polyester Filament Yarn Plant in Patalganga, Raigad, Maharashtra
with financial and technical collaboration with E. I. du Pont de Nemours & Co., U.S.
1981–2000
In 1985, the name of the company was changed from Reliance Textiles Industries Ltd. to Reliance
Industries Ltd. During the years 1985 to 1992, the company expanded its installed capacity for
producing polyester yarn by over 1,45,000 tonnes per annum.
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The Hazira petrochemical plant was commissioned in 1991–92.
In 1993, Reliance turned to the overseas capital markets for funds through a global depository issue
of Reliance Petroleum. In 1996, it became the first private sector company in India to be rated by
international credit rating agencies. S&P rated Reliance "BB+, stable outlook, constrained by the
sovereign ceiling". Moody's rated "Baa3, Investment grade, constrained by the sovereign ceiling".
In 1995/96, the company entered the telecom industry through a joint venture with NYNEX, USA
and promoted Reliance Telecom Private Limited in India.
In 1998/99, RIL introduced packaged LPG in 15 kg cylinders under the brand name Reliance Gas.
The years 1998–2000 saw the construction of the integrated petrochemical complex at
Jamnagar in Gujarat, the largest refinery in the world.
2001 onwards
In 2001, Reliance Industries Ltd. and Reliance Petroleum Ltd. became India's two largest
companies in terms of all major financial parameters. In 2001–02, Reliance Petroleum was merged
with Reliance Industries.
In 2002, Reliance announced India's biggest gas discovery (at the Krishna Godavari basin) in nearly
three decades and one of the largest gas discoveries in the world during 2002. The in-place volume
of natural gas was in excess of 7 trillion cubic feet, equivalent to about 120 crore (1.2 billion)
barrels of crude oil. This was the first ever discovery by an Indian private sector company.
In 2002–03, RIL purchased a majority stake in Indian Petrochemicals Corporation Ltd. (IPCL),
India's second largest petrochemicals company, from the government of India, RIL took over
IPCL's Vadodara Plants and renamed it as Vadodara Manufacturing Division (VMD). IPCL's
Nagothane and Dahej manufacturing complexes came under RIL when IPCL was merged with RIL
in 2008.
In 2005 and 2006, the company reorganised its business by demerging its investments in power
generation and distribution, financial services and telecommunication services into four separate
entities.
In 2006, Reliance entered the organised retail market in India with the launch of its retail store
format under the brand name of 'Reliance Fresh'. By the end of 2008, Reliance retail had close to
600 stores across 57 cities in India.
In November 2009, Reliance Industries issued 1:1 bonus shares to its shareholders.
In 2010, Reliance entered the broadband services market with acquisition of Infotel Broadband
Services Limited, which was the only successful bidder for pan-India fourth-generation (4G)
spectrum auction held by the government of India.
In the same year, Reliance and BP announced a partnership in the oil and gas business. BP took a
30 per cent stake in 23 oil and gas production sharing contracts that Reliance operates in India,
including the KG-D6 block for $7.2 billion. Reliance also formed a 50:50 joint venture with BP for
sourcing and marketing of gas in India.
In 2017, RIL set up a joint venture with Russian Company Sibur for setting up a Butyl rubber plant
in Jamnagar, Gujarat, to be operational by 2018.
In August 2019, Reliance added Fynd primarily for its consumer businesses and mobile phone
services in the e-commerce space.
Values
Growth and success are based on the ten core values of
Care
Citizenship
Fairness
Honesty
Integrity
Purposefulness
Respect
Responsibility
Safety
& truth
The company have got combined Non-executive and Executive directors, the board is composed of
14 directors including 7 independent directors.
15
Table 2.2 organizational structure of Reliance
success and the position attained by reliance industries, itself reflects the leadership provided by its
late initiator, who kept on saying that “Growth has no limit at Reliance. I keep revising my vision.
Only when you can dream it, you can do it.” The leadership is based on creation of value, especially
for consumers and shareholders. The company along with its integration vertically, of their chain,
from refinery to textiles, have got structure which is fully integrated and produces fabrics from
crude oil. The company’s assurance to merit and its hard work to continuously increase the quality
of products, processes and services contributes mainly to its management in its most important
businesses. Use of technique such as TQM(Total Quality Management) has considerably benefited
in getting better output, quality of the product, consistency, efficiency and effectiveness and
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involvement of members in the progress of the business. Manufacturing unit at Hazira(Surat-India)
embarked with Six Sigma during 2001, pleased their shareholders by creation of an organizational
culture of zero defects all the way through involvement of employees. Shareholders also take part in
the processes of identification of project, evaluating the project and its impact on the businesses.
Shareholders are more anxious regarding profitability, customer loyalty and growth in volume
whereas operational management located better prominence on recycling of waste and efficiency.
Weakness
Variation in price of products as compared to other stores
More time in billing
Sometime product is not proper
Opportunities
Fastest growing format
Rural retailing
E retailing
Threats
Social issues
New entrants and local retailer
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Tata
2.3.1 Name & location of the company
Name:- Tata
Location:- Bombay house
Mumbai
Maharashtra, India
2.3.2 Name & Location of the other branches
I. Arlington, north America
II. London, Europe
III. Dubai, United Arab Emirates
IV. Shenton way, Singapore
V. Beijing, china
VI. Mumbai, maharastra
VII. Kolkata
VIII. Mapusa, bardez, india
2.3.3 Year of establishment
1868, Mumbai
2.3.4 Brief history
1868–1904
At the age of 28, Jamshedji Nusserwanji Tata worked in his father's company. In 1870 with
Rs.21,000 capital, he founded a trading company. Further he bought a bankrupt oil mill
at Chinchpokli and converted it into a cotton mill, under the name Alexandra Mill which he sold for
a profit after 2 years. In 1874, he set up another cotton mill at Nagpur named Empress Mill. He
dreamed of achieving 4 goals, setting up an iron and steel company, a unique hotel, a world-class
learning institution and a hydro-electric plant. During his lifetime, in 1903, the Taj Mahal
Hotel at Colaba waterfront was opened making it the first hotel with electricity in India.
1904–1938
After Jamsetji's death, his older son Dorabji Tata became the chairman in 1904. Sir Dorabji
established the Tata Iron and Steel company (TISCO), now known as Tata Steel in 1907. Marking
the group's global ambitions, Tata Limited opened its first overseas office in London. Following the
founder's goals, Western India's first hydro plant was brought to life, giving birth to Tata Power.
Yet another dream, Indian Institute of Science was established with the first batch admitted in 1911.
1938–1991
J. R. D. Tata was made chairman of the Tata Group in 1938. Under his chairmanship, the assets of
the Tata Group grew from US$101 million to over US$5 billion. Starting with 14 enterprises, upon
his departure half a century later in 1988, Tata Sons had grown to a conglomerate of 95 enterprises.
These enterprises consisted of ventures that the company had either started or in which they held
controlling interest. New sectors such as chemicals, technology, cosmetics, marketing, engineering,
and manufacturing, tea, and software services earned them recognition.[3]
In 1952, JRD founded an airline, known as Tata Air Services (later renamed Tata Airlines). In
1953, the Government of India passed the Air Corporations Act and purchased a majority stake in
the carrier from Tata Sons, though JRD Tata would continue as chairman till 1977.
In 1945, Tata Motors was founded, first focused on locomotives. In 1954, it entered the commercial
vehicle market after forming a joint venture with Daimler-Benz. In 1968, Tata Consultancy
Services was founded.
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1991–present
In 1991, Ratan Tata became chairman of Tata Group.[4] This was also the year of economic
liberalization in India, opening up the market to foreign competitors.[5] During this time, Tata Group
began to acquire a number of companies, including Tetley (2000), Corus Group (2007),
and Jaguar and Land Rover (2008). In 2017, Natarajan Chandrasekaran was appointed chairman.
2.3.5 Name of Founders and Promoters
Founder:- jamsetji Tata
Promoter:-
I. Indian Hotels company
II. Tata chemicals
III. Tata communications
IV. Tata consultancy sevices
V. Tata Elxi
VI. Tata Global beverages
VII. Tata Investment corporation
VIII. Tata motors
IX. Tata power
X. Tata steel
XI. Titan company
XII. Trent
XIII. Voltas
Value
Integrity
Teamwork
Accountability
Customer focus
Excellence
Speed
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Table2.3 organizational structure of Tata
The Tata Group is a very complex organization, owning many different companies but the ownership
structure is highly difficult to grasp, seeing as there is cross-ownership and ambiguity regarding who
makes the decisions (The Economist, 2016; The Economist, 2017; Mundy and Mallet, 2018).
According to The Economist (2016), Tata Sons mostly hold the decision rights as they have big
influences regarding subsidiary board members, and the control of the Tata brand name. The
Economist (2017) also suggests that Ratan Tata holds a lot of power of the governance of both the
Tata Trusts, Tata Sons, and individual Tata companies.
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Adani
6%
28%
foreign promoter
institutions
indian promoter
47% non institutions
19%
23
Table 2.4 promoter of Adani
Adani
atulya resources
LTD
Adani abbot
point terminal
p/l
adani Enterprise
adani power Ltd adani
Ltd
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Table 2.5 organizational structure of Adani
It is the typically hierarchical arrangement of lines of authority, communications, rights and duties
of an organization. It helps to determine how the roles, power and responsibilities are assigned,
controlled, and coordinated, and how information flows between the different levels of
management. Types Of Organizational Structure: 1) Centralized Structure: The top layer of
management has most of the decision making power and has tight control over departments and
divisions. 2) Decentralized Structure: The decision making power is distributed and the departments
and divisions may have different degrees of independence.
2.4.9 SWOT analysis of the companies
• Strong execution track record on the back of the huge success of mundra
port
• The diversified nature of the Adani group
• Great distribution channel of raw material handling system
strength • Coal mine resource
• Adani group’s presence in domestic coal mining will reduce coal cost as
currently adani enterprises is the biggest supplier of coal to Adani power.
opportunities
• The rising maoist insurgency could result in delay and higher coasts
• Increase in private sector power generation.
threats
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