Assignment Template

Name of the student Gonuguntla Hareesh Kumar

Group Number 7
Student Code 7C
Name of the given organization Grasim Industries Ltd. - Cements

Section A

History of the organization

Grasim was founded on 25 August 1947, just after 10 days of India accomplished freedom.

Grasim, which began as a material manufacturer, has successfully expanded into VSF, concrete, wipe
iron, and synthetic substances.

The Aditya Birla Group is India's first worldwide partnership working in the country for more than
fifty years and internationally for almost 30 years. A US$ 7.59 billion conglomerate, with a market
capitalization of US$ 7 billion, it is secured by an unprecedented power of 72,000 workers having a
place with more than 20 distinct ethnicities. More than 30% of its incomes stream from its activities
across the world. The Group's items and administrations offer particular client arrangements. Its 66
producing units and sectoral administrations range India, Thailand, Indonesia, Malaysia, Philippines,
Egypt, Canada, Australia and China.

The Aditya Birla Group is a dominant player in all the sectors in which it operates Such as viscose
staple fibre, non-ferrous metals, cement, viscose filament yarn, branded apparel, carbon black,
chemicals, fertilizers, sponge iron, insulators, and financial services.

The firm is also a major player in the following areas:

 The world's number one in "Viscose Staple Fiber."

 The World's Largest "Palm Oil Producer" in a Single Location.
 The largest "Integrated Aluminum Producer" in Asia.
 a globally competitive and rapidly expanding "copper producer"
 The third-largest producer of "insulators" in the world.
 The fourth largest producer of "Carbon Black" in the world.
 The Eighth Largest Producer of "Cement" in the World, and the Largest in a Single
Geography.
 India's Leading "Garments" Branded Player.
 Among the most energy-efficient private sector "fertilizer plants" in India.
 India's second-largest "Viscose Filament Yarn" producer.
 The second largest private sector "insurance company" in India, as well as the fourth largest
"asset management company."

The Aditya Birla Group's origins may be traced back to the 19th century in the scenic town of Pilani,
located in the Rajasthan desert.

Seth Shiv Narayan Birla began trading in cotton here, establishing the groundwork for the House of
Birlas.
The Birla firm grew fast during India's difficult 1850s period.

Ghanshyamdas Birla, the Group's founder, established enterprises in important sectors such as
textiles and fibre, aluminium, cement, and chemicals in the early twentieth century.

Products / businesses of the organization

Company has mainly 5 products as below:-

1. Cement
2. VSF
3. Sponge iron
4. Textiles
5. Chemicals

CEMENT: Grasim is one of India's largest grey cement producers, with a total grey cement capacity
of 13.12 million tons per year (tpa).

All of its plants are near large limestone mines and are fully automated to ensure consistent quality.

All of the company's cement plants are ISO 9001 certified for quality systems and ISO 14001 certified
for environmental management systems.

Birla Plus, Birla Super, and Birla Ready Mix Concrete are its national brands.

Cement Varieties for Different Markets:

Birla Super Cement for multi-story buildings, dams, and bridges

Rajashree Cement for residential and commercial construction

Birla Plus is recommended for mass concrete laying and non-structural applications.

Birla Coastal is used for foundation work and in coastal areas, as well as sugar and fertilizer plants.

VSF:-

Grasim is India's pioneer in Viscose Staple Fibre (VSF), a man-made, biodegradable fibre with
characteristics similar to cotton.

VSF is widely used to make fabrics for both woven and knitted garments because it is extremely
versatile and easily blended with other fibres.

Apparel — both top and bottom wear — to home textiles, dress material, knitted inner and outer
wear, and non-woven fabrics are among the applications.

Aditya Birla Group is now the world's largest producer of VSF, with a 24% global market share and
meeting more than 98% of India's VSF requirements.

Grasim's VSF plants are located in Nagda, Madhya Pradesh, Kharach, Gujarat, and Harihar,
Karnataka, and have a total installed capacity of 2,51,850 tons per year.

VSF:-

Nagda is its largest unit producing a wide range of VSF to suit customer requirements.
The Harihar unit produces rayon grade pulp, it uses an in-house technology for producing rayon pulp
with an innovative oxygen bleaching process to reduce the use of chlorine. Grasim has earned
prestigious awards for its technology and its innovative range of fibers. Made from wood pulp
through an eco-friendly, non-pollutant patented by the Aditya Birla Group, it is the world's only
heavy-metal-free viscose fiber.

Grasim is also the largest producer of sodium sulphate, a by-product of VSF manufacture.

Sponge iron: With the commissioning of Vikram Ispat's gas-based sponge iron plant at Salav in
Alibag, Maharashtra, Grasim entered the sponge iron business in 1993.

The plant, which has a current capacity of 900,000 tons per year, is India's largest merchant
producer of sponge iron.

Textiles: Grasim has a strong presence in fabrics, synthetic yarns, worsted yarn, and is well known
for its branded suits Grasim and Graviera, which are made from various polyester and viscose
blends.

It has textile plants in Bhiwani, Haryana, and Malanpur, Madhya Pradesh.

Bhiwani's fabric operations are centralized, with a processing capacity of 17 million meters per year.

Perceived image of the organization (positive and negative) in the

society
Grasim Industries is a global leader in the Viscose Staple Fiber Industry, with major holdings in
Cement, Textiles, and the Fashion Industry in addition to VSF.

They have also broadened their portfolio by introducing new fibre lines for industry and consumers.

Grasim is also environmentally sustainable, and they adhere to a wide range of environmental
measures in addition to having the ISO-14000 certification. They also have a strong environmental
management system.

As a rapidly growing industry, Grasim places a high value on its employees and has an excellent
Human Resources Management system in place.

They have also succeeded in building a socially responsible brand through a plethora of CSR
activities, which have won many awards and accolades both nationally and internationally, as they
are one of the major leaders on a global scale.

Suggestion of the group to the organization for future development

It can use its large brand equity as an anchor for promotional activities, forming a larger customer
base and commanding larger market share.

It can also leverage its position as the world's second largest producer of VSF to form meaningful
partnerships with international corporations, allowing it to expand its global footprint.
 Section B

Answer to question related to POM (POM 3)

According to you what are the strengths and weaknesses of the

organization
Strengths: -

 As the company is a subsidiary of the Aditya Birla Group, it has significant brand equity, this
can be viewed as a part of their overall success.
 Aditya Birla Group's strong brand equity
 Grasim is the world's second largest producer of VSF-Viscose Staple Fiber, with a significant
market share and turnover.
 Because of the high quality and variety of the Viscose Staple Fiber, it has been able to capture
new markets.
 Birla Group's operations in various sectors assist its subsidiaries in all aspects of growth.
 Grasim employs approximately 7000 skilled workers.
 Grasim Industries manufactures fiber and pulp, chemicals, cement, and textiles.
 A well-known market player in the cement, textile, and chemical industries in India and around
the world.
 Strong presence in India, with high-capacity production and cutting-edge plants and factories
 Ranked among the top companies for sustainable practices and CSR initiatives

Weakness: -

 As cotton and other natural fiber prices fall, sales of VSF fibers fluctuate, affecting the
company's profits.
 The Grasim Industry also spends less on advertising, marketing, and promotion. this could be
the reason for fluctuating profitability.
 Input costs have risen for Grasim industries which has resulted in reduced profits
 High debt may hurt the company's finances and negatively affect common stockholders
 A rise in input costs (such as fuel) for the company has led to falling profits
 High dependence on Indian Market for sales

Answer to question related to MAA (MAA 3)

Ratio Analysis
Answer to question related to OBHRM (OBHRM3)

Answer to the question related to BC (BC3)

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