A REPORT ON ORGANISATIONAL STUDY

AT

CARBORUNDUM UNIVERSAL LIMITED (CUMI)

SIPCOT, RANIPET

A PROJECT REPORT

Submitted in partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted By

SASIREKHA A

(510120631024)

Under the Supervision of

Prof. Dr. S. MOHAN RAJU, B.E., M.B.A., Ph.D.,

DEPARTMENT OF MANAGEMENT STUDIES

ADHIPARASAKTHI COLLEGE OF ENGINEERING

KALAVAI

AFFILIATED TO ANNA UNIVERSITY

CHENNAI – 600025

(2021 – 2022)

1
 CERTIFICATE

This is to certify that the project entitled “A REPORT ON ORGANISATIOANAL

STUDY AT CARBORUNDUM UNIVERSAL LIMITED” submitted by Ms. SASIREKHA
A (510120631024), Department of Management Studies, Adhiparasakthi College of
Engineering, Kalavai Affiliated to Anna University, for the award of the degree of MASTER
OF BUSINESS ADMINISTRATION, is a record of bonafide work carried out by him under
my supervision during the period, 01.08.2021 to 31.08.2021, as per the University code of
academic and research ethics.
The contents of this report have not been submitted and will not be submitted either in
part or in full, for the award of any other degree or diploma in this institute or any other institute
or university. The project fulfills the requirements and regulations of the University and in my
opinion meets the necessary standards for submission.

Place: Kalavai

Date: 26-01-2022

Head of the Department Signature of the Guide

Dr. S. MOHAN RAJU, B.E., M.B.A., Ph.D.,

Internal Examiner External Examiner

2
 DECLARATION

I hereby declare that the project is titled as A Summer Internship Project Report on
“ORGANISATIONAL STUDY AT CARBORUNDUM UNIVERSAL LIMITED”
submitted by me to Adhiparasakthi College of Engineering, Kalavai, in partial fulfillment of the
requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION is
a bonafide work carried out by me under the supervision of Prof. Dr. S. MOHAN RAJU
Department of Management Studies.

I further declare that the work reported in this project has not been submitted and will not
be submitted, either in part or in full, for the award of any other degree or diploma in this
institute or any other institute or university.

Place: Kalavai

Date: 26-01-2022

Signature of the Student

SASIREKHA

510120631024

3
 ACKNOWLEDGEMENT

At the outset, I thank the Almighty God for His blessings for granting me the knowledge
and right aptitude to successfully complete my project work.

I wish to express my sincere thanks to respected Vice President of ACMEC Trust,

Sakthi. Thirumathi. Dr. B. UMADEVI, Correspondent and Mr. R. KARUNANITHI,
Secretary and our beloved Principal Prof. Dr. K. BALAKANNAN, M.E, Ph.D., for providing
me an excellent academic environment and giving me an opportunity to express my ideas and
thoughts for this research work.

I would like to sincerely acknowledge gratitude to Prof. Dr. S. MOHAN RAJU B.E.,
M.B.A., Ph.D., Head of the Department, Department of Management Studies, for providing me
an opportunity to do my project work.

I would like to express my special gratitude and thanks to my guide Prof. Dr. S.
MOHAN RAJU B.E., M.B.A., Ph.D., Head of the Department, Department of Management
Studies, whose esteemed guidance and immense support encouraged me to complete the project
successfully.

I also thank all the Faculty Members of the Department of Management Studies of
Adhiparasakthi College of Engineering, Kalavai, for giving me the courage and strength that I
needed to achieve my goals.

My special thanks to my Friends for their timely help and suggestions rendered for the
successful completion of this project.

This acknowledgement would be incomplete without expressing my whole hearted

thanks to my parents for their continuous support and guidance in all walks of my life.

Ms. SASIREKHA A

(510120631024)

4
 INDEX

TITLE PAGE NO

CERTIFICATE 2

DECLARATION 3

ACKNOWLEDGEMENT 4

INDEX 5

CHAPTER I INTRODUCTION 6-8

CHAPTER II INDUSTRY PROFILE 9 - 14

CHAPTER III COMPANY PROFILE 15 - 25

ORGANISATION STRUCTURE & FUNCTIONAL

CHAPTER IV 26 - 36
DEPARTMENTS

CHAPTER V SWOT ANALYSIS 37 - 39

CHAPTER VI CONCLUSION 40 – 41

5
 CHAPTER – I

INTRODUCTION

6
1.1 INTRODUCTION:

The organizational study was conducted in Carborundum Universal Limited, Ranipet. As a

part of MBA course this organizational study helps to know about the organizational activities
and various functions of the different department. The organizational study was mainly
conducted for knowing the particular organization and also for getting amble information about
the activities of each department.

Carborundum Universal was established in 1954 as a joint venture between the Murugappa
Group, India, the Carborundum Co., USA, and the Universal Grinding Wheel Co. Ltd, U.K. The
main business activity of Carborundum Universal involves manufacture of coated abrasives,
bonded abrasive, super-refractories, electro-minerals, industrial ceramics and ceramic fibers.
Further, CUMI produces about 20,000 different varieties of abrasive products, refractory
products, and electro-minerals. Carborundum Universal Ltd. has 10manufacturing facilities
across India and these manufacturing facilities are meticulously connected with wide network of
distributors and sub - distributors.
CUMI is known to be an innovator and exports its products to 43countries spread across
North America, Europe, Australia, South Africa, and Asia. All the manufacturing facilities
of Carborundum Universal are ISO 9001:2008 , ISO 14001: 2004and ISO 18001: 2007 certified
for quality standards , environment-friendly and health-safety manufacturing practices
respectively.

1.2 OBJECTIVES OF THE STUDY:

 To study the functions of various departments.
 To understand the process flow in each departments.
 To understand hierarchical structure of various departments.
 To do SWOT analysis of organization.
 To have an exposure to the working environment.

7
1.3 SCOPE OF THE STUDY:
The study has been conducted at Carborundum Universal Ltd, Sipcot, Ranipet during the
period of August, 2021.The study focuses on overall understanding of how the various
departments in the organization function.

1.4 LIMITATION:
 Time is a major limitation since the organizational study was only for a period of one
month.
 Officers were at the peak of work and busy schedule of the department heads.

8
 CHAPTER – II

INDUSTRY PROFILE

9
2.1 ABOUT MURUGAPPA GROUPS:

It founded in 1900, the Murugappa Group is one of India’s leading business conglomerates.
The Group has 28 businesses including nine listed Companies traded in NSE & BSE.

Headquartered in Chennai, the major Companies of the Group include Carborundum

Universal Ltd., Cholamandalam Investment and Finance Company Ltd. Cholamandalam MS
General Insurance Company Ltd., Coromandel International Ltd., Coromandel Engineering
Company Ltd., E.I.D. Parry (India) Ltd., Parry Agro Industries Ltd., Shanthi Gears Ltd., Tube
Investments of India Ltd., and Wendt (India) Ltd.

Renowned brands like BSA, Hercules, Montra, Mach City, Ballmaster, Ajax, Parry’s, Chola,
Gromor, Shanthi Gears and Paramfos are from the Murugappa stable. The Group fosters an
environment of professionalism and has a workforce of over 50,000 employees.

Group Philosophy

“The fundamental principle of economic activity is that no man you transact with will
lose, and then you shall not”

- An excerpt from Arthashastra

10
2.2 HISTORY OF ENTERPRISE:

The Murugappa Group began as a banking enterprise in the pre -World War 1 era in Burma
(Myanmar).

Shifting to India during the turbulent war years, the Group established its base in the South. It
grew by leaps & bounds, building strong, market-leading companies in critical sectors like agri-
solutions, financial services & engineering.

Today, the Murugappa Group is an INR 417 billion conglomerate, with an exceptional
reputation for value creation and high standards of governance.

2.3 MILESTONES:
A journey of excellence our milestones reflect our eventful journey since 1900.
 1900 – 1915:

The Group's founder, Dewan Bahadur AM Murugappa Chettiar sets up money lending
and banking business in Burma (now Myanmar) under the name AMM Rm Firm.

 1915 – 1934:
The Group diversifies into textiles, rubber plantations, insurance and stock broking.
Expands business to Malaya (now Malaysia), Vietnam and Ceylon (now Sri Lanka)
 1934 – 1949:
Moves assets to India before the Japanese invasion of Burma in World War II. Ventures
into industry with investments in emery paper and steel furniture
 1950 – 1980:
Establishes companies in core industrial sectors and re-enters the financial services
sector.

 1981 – 1990:

Enters agriculture sector with the acquisition of the 200-year old ailing company, E.I.D.

Parry, a large sugar manufacturer in Tamil Nadu. Expands further into agriculture, growing the

fertiliser business through its company Coromandel International Limited.

11
  1991 – 2000:

Formation of the Murugappa Group structure, streamlining of core businesses and

realigning of portfolios. Expands global presence through JVs with leading international

companies

 2001 – 2010:
Increases global footprint and enhances customer touch points in cycles, farm inputs and
general insurance.

 2011 – 2019:

Achieves ambitious revenue targets at 3 times GDP. Garners significant leadership

positions through increased capital expenditure and significant growth in adjacency businesses

and acquisitions.

 The Murugappa Group Today:

The Murugappa Group turnover is at INR 417 billion.Coromandel is presently the 5th
largest Agrochemical Indian player. Operates the largest network of agri-retail chains, ‘Mana
Gromor’ in India with over 750 centres.
E.I.D. Parry is one of India’s largest integrated sugar producers. The company is a global
leader in the organic spirulina space.
CUMI enjoys the widest global footprint in the Murugappa Group with over 20,000
products across 3 business verticals being manufactured in 5 countries and sold in over 50
countries.
TII is one of the country’s leading engineering companies, the second largest
manufacturer of bicycles, and a preferred tier 1 supplier for the automotive industry.
Cholamandalam Investment and Finance Company is a leading comprehensive financial
services company present across 1000+ branches serving over 10 Lakh customers with an AUM
crossing INR 60,000 Crores.
Cholamandalam MS General Insurance is ranked 7th among private insurers serving over
14 million customers. Chola MS’s GWP is at INR 4000 Crores in premiums and the PBT is at
INR 200 Crores.

12
 Cholamandalam MS Risk Services executes 400+ Projects on an average every year. In
EHS Risk Engineering Consultancy, the company has the largest contingent of 270+ engineers.
Parry Agro produces 13 million kgs of tea on its own and has outsourced leaf production
of 1 million kg from the Assam Rajajuli factory. Paralai estate in Annamalai, Tamil Nadu, is
certified organic.

2.4 VALUES OF MURUGAPPA GROUP:

Five Lights – Integrity, Passion, Quality, Respect, Responsibility

These Five Lights are Spirit of Murugappa group, these values, believes and principles have
always guided them to show their way forward.
1) INTEGRITY - The value professional and personal integrity above all else. We achieve
our goals by being honest and straight forward with all our stakeholders. We earn trust
with every action, every minute of every day.
2) RESPONSIBILITY - Company has responsible corporate citizens. We believe we can
help make a difference to our environment and change lives for the better. We will do
this in a manner that befits our size and also reflects our humility.
3) PASSION - Company has a healthy desire to stretch, to achieve personal goals and
accelerate business growth. We strive constantly to improve and be energetic in
everything that we do.
4) RESPECT – Company respect the dignity of every individual. We are open and
transparent with each other. We inspire and enable people to achieve high standards and
challenging goals. We provide everyone equal opportunities to progress and grow.

13
 5) QUALITY – Company will take ownership of our work. We unfailingly meet high
standards of quality in both what we do and the way we do it. We take pride in
excellence.

2.5 WHISTLE BOWLER POLICY OF MURUGAPPA GROUP:

This policy has been created with the objective of providing employees, customers and
vendors an avenue to raise concerns about anything which seems to go against the company's
commitment to the highest possible standards of ethical, moral and legal business conduct and its
commitment to open communication. This policy also seeks to provide necessary safeguards for
protection of employees from reprisals or victimization, and for whistle blowing in good faith.

The whistle blower policy is intended to cover serious concerns that could have a large
impact on the company such as actions (actual or suspected) that:

- May lead to incorrect financial reporting

- Are not in line with applicable company policy

- May be detrimental to the image of the group

- Violate the accepted values of the group

- Are unlawful

- Amount to serious improper conduct (including any kind of harassment)

The complainant or the whistleblower as he or she is called is not expected to prove the truth
of an allegation; the complainant needs to demonstrate to the ombudsperson that there are
sufficient grounds for concern. Certain safeguards have been provided which will prevent
harassment or victimization of the complainant.

Every effort will be made to protect the complainant's identity, subject to legal constraints.
Complainants must put their names to allegations as follow-up questions and investigations may
not be possible unless the source of the information is identified.

14
 CHAPTER – III
COMPANY PROFILE

15
3.1 COMPANY OVERVIEW:

CUMI was founded in 1954 as a tripartite collaboration between the Murugappa Group,
The Carborundum Co., USA and the Universal Grinding Wheel Co. Ltd., U.K.

Carborundum Universal is a $ 380 million sales company in the space of Abrasives,

Electrominerals and Ceramics. CUMI pioneered the manufacture of coated and bonded abrasives
in India, besides super refractories, electro minerals, industrial ceramics and ceramic fibres. In
sync with the global vision, CUMI is expanding its product spread. The Company makes
over 20,000 varieties of products manufactured at 25 locations across India, Russia, South
Africa, Australia, China, Thailand and Canada. CUMI exports its products to 43 countries
spread across the globe. All the manufacturing facilities of CUMI are ISO 9001:2015 and ISO
14001: 2015 certified for quality standards and environment-friendly manufacturing practices.

State-of-the-art facilities and strategic alliances with global partners have earned CUMI a
reputation for quality and innovation. CUMI is fully vertically integrated from mining and
calcination of bauxite to manufacture of electro minerals, abrasives and refractories with
operations in India, Australia, Canada, China, Middle East, Europe and US.

Electro Minerals Division of CUMI is in the business of Brown Fused Alumina, White
Fused Alumina, Silicon Carbide & High Quality Micro Grits. The Division also offers other
Fused and Sintered products for various applications.

The company pioneered the manufacture of Coated Abrasives and Bonded Abrasives in
India in addition to the manufacture of Super Refractories, Electro Minerals, Industrial Ceramics
and Ceramic Fibres. Today the company’s range of over 20,000 different varieties of abrasives,
refractory products and electro-minerals are manufactured in ten locations across various parts of
the country.
With state-of-the art facilities and strategic alliances with global partners, CUMI has
achieved a reputation for quality and innovation. CUMI is one of the five manufacturers in the
world with fully integrated operations that include mining, fusioning, wind and hydro power
stations, manufacturing, marketing and distribution.

16
 Almost all of CUMI’s ten manufacturing facilities have received the ISO 9001:2008
accreditation for quality standards. A well connected marketing and distribution network of
offices and warehouses in India and abroad, ensure that service to customers is given prime
importance.

CUMI’s constant innovation and product upgradation, through in-house R&D and
strategic alliances with global leaders in grinding technology, have not only ensured it market
leadership in India and abroad, but also international recognition as a manufacturer of quality
abrasives and a provider of total grinding solutions.

CUMI’s products are being exported to 43 countries spread across North America,
Europe, Australia, South Africa and Asia.

3.2 CUMI BUSINESS DISTRIBUTION (as per revenue)

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3.2.1 ABRASIVES:
Abrasives, CUMI’s largest segment engaged in the business of engineering surfaces
recorded a marginal decline of 0.2% at consolidated level and a growth of 0.4% on standalone
basis. This decline is attributed to pandemic induced downward demand trend and slow growth
in user industries mainly automotive, auto ancillary, fabrication and general engineering. The
business continued to focus on expansion of its robust distribution network and adopted several
digital initiatives which will give it a sustainable competitive advantage in years to come.

Revenue growth in Volzhsky Abrasive Works, (VAW) and CUMI America, our Russian
and American subsidiaries was impacted by their domestic markets – slowing auto/ auto
component markets as well as owing to the lock down conditions. Sterling Abrasives, the
subsidiary manufacturing specialist conventional Abrasives, benefitted from higher agricultural
acreage, thus achieving growth and profitably.

CUMI Abrasives and Ceramics Company, China despite the challenging business
conditions registered growth in its revenues.

3.2.2 CERAMICS:
The Ceramics business which comprises both the Industrial Ceramics and Refractories
recorded a marginal decline at both standalone and consolidated levels largely due to the
pandemic. With prudent cost management, favorable product mix and maintaining efficiencies,
the business recorded profits. Largely export driven, the Industrial Ceramics business was able to
to serve its customers despite the nationwide lockdown imposed at the beginning of the year. The
business focus was on enhanced marketing efforts to tap newer markets, strengthening its
positioning across geographies, as well as forging alliances with global customers for long term
sustainable solutions.

The business has positioned itself as a global player with smart manufacturing initiatives
and completed the addition of a Continuous Metallization furnace towards capacity addition. In
collaboration with Gas Authority India Limited (GAIL), the business recently executed a project
to bring Piped Natural Gas (PNG) to its facility in Hosur. The transition from liquid fuel to
natural gas is expected to reduce emissions significantly in line with CUMI’s sustainability
goals.

18
 The trade tensions between China and Australia hampered the business of CUMI
Australia, the subsidiary engaged in lined equipment business for wear resistance. CUMI
Australia was impacted by logistics issues relating to container availability and port congestions.
This coupled with the COVID-19 challenges resulted in a fall in revenues and consequently, the
profitability as well. The Industrial Ceramics business arm of CUMI America did well despite
the prevailing conditions there.

3.2.3 ELECTROMINERALS:
Riding on the shortages of supplies from China, global trade tensions and increasing
minerals demand since second quarter of the year, the Electrominerals business was able to
recover quickly from the difficulties of the lock down. Despite the volatility in prices of raw
materials and supply chain challenges, the business registered a good growth in revenues both at
standalone and consolidated levels at 7% and 4% respectively. The austere measures undertaken
to control fixed costs, improve efficiencies, and optimum sourcing of raw materials aided the
business to record a significant growth in profits of over 46% at a standalone level and 30% at a
consolidated level. This was ably supported by the growth at VAW, Russia with optimum
capacity utilisation, favourable product mix as well as commercial launches of new products for
niche segments.

3.2.4 SUPER REFRACTORIES:

CUMI Super Refractories a market leader in the manufacture of specialty refractory

products in India since 1965 with technical know-how from Carborundum USA. The division
specializes in the manufacture of both fired and monolithics range of refractories catering to the
critical and demanding high temperature applications for various industrial applications.

Primary product lines in the Fired range include Silicon Carbide, Nitride Bonded Silicon
Carbide, Mullite, and Zircon- Mullite, High Alumina, and Insulating fire bricks.The primary
product lines in the monolithics range include the Conventional Castables, Low Cement
Castables, Insulation Castables, Self-flow Castables, Gunning Materials, Ramming
Masses and Laying Mortars.

19
 Super Refractories is dedicated to providing our customers with the highest-quality, most
highly effective products, systems and services. The products manufactured conform to the ISO
9001 Quality standards and procedures, ensuring customer satisfaction.In addition to being a
leading supplier of specialty refractory in the Indian market, we serve customers in the Middle
East, Asia, Europe, North America, Australia, ASEAN and SAARC countries.

3.2.5 OTHER BUSINESSES:

Southern Energy Development Corporation Limited, the gasbased power generation

subsidiary continues to support the power requirements of the plants in Tamilnadu, India.
Generation was marginally affected owing to the pandemic lock down in quarter one. This
coupled with the reduction in gas price impacted its profitability for the year. During the year,
the subsidiary company diversified its product offerings to solar energy based solutions in
addition to the gas based supply in line with the overall sustainability goals of the Company.

Net Access, the subsidiary providing IT facilities management and allied services
recorded a decline in revenues and profitability owing to the challenging conditions. The
subsidiary’s role in ensuring a seamless adaptation to remote working of all line functions across
the organisation ensuring the safety of the employees who could continue to work from home
throughout the year, was significant and commendable. It also provided a strong IT platform
migrating to the new normal conditions, thus helping to manage the demands of going virtual.

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3.3 COMPANY YEAR EVENTS:

1954 – 1963 Revenue: Rs.19 million

 Incorporate as a joint venture between carborundum company, USA/Universal Grinding

Wheel Company, UK and the Murugappa Group, India.
 Acquired a coated abrasives facility from Ajax Products pvt.ltd.
 Bonded abrasives facility set up at Chennai, India
 Bauxite mining at Bhatia, Gujarat, India

1964 – 1973 Revenue: Rs.78 million

 Manufacture of Super Refractories at Chennai, India.

 BFA Edapally.

 Calcination facility of Okha.

1974 – 1983 Revenue: Rs.337 million

 Acquisition of Eastern Abrasives Ltd, a coated abrasives manufacturing in Kolkata, India.

 Second bonded abrasives plant at Hosur, India.

 Establishment of MMECL as a joint venture with Morgan Group plc, for ceramic fibres.

1984 – 1994 Revenue: Rs.1308 million

 Expansion of bonded abrasives plant at Hosur with a modern facility for vitrified
grinding wheels.

 Silicon carbide plant at Koratty & Refractories plant Ranipet, India.

 Industrial ceramic plant at Hosur, India.

 Acquisition of 40% interest in Wendt (India) Ltd., a joint venture with Wendt Gmbh,
Germany for super abrasives.

1995 – 2004 Revenue: Rs.3150 million

 12 MW Hydel project at Maniya, Kerala.

 Second unit at Edapally for manufacture of brown aluminum oxide grains.

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  Acquired a controlling interest in Cut fast Abrasive Tool Ltd, and cut fast Polymer ltd, a
Chennai Based abrasive manufacturer and subsequent mergers.
 Established a 5.5MW natural gas based thermal power plant in Nallur in Tamil Nadu,
India through Southern Energy Development Corporation Ltd.
 Acquired Prod rite Anticorrosive ltd, a leading player in anti-corrosion engineering.
 Cloth proceeding facility at Maraimalainage, Tamil Nadu.

2005 – 2013 Revenue: Rs.12126 million

 Modern silicon carbide micro grit plant in Koratty, IndiaEstablishment of CUMI Middle
East & CUMI Canada Inc.
 Establishment of state-of-the-art coated abrasives Sriperambudur, Chennai ,India
 Acquisition of monolithic refractory facility in Jabalpur, India
 Acquisition of Volzhskiy Abrasives Works, Russia
 Acquisition of 51% holding Foskor Zirconia (Pty)Ltd ,South Africa, the world’s
Largest manufacturer of Zirconia
 Establishment of state-of-the-art super refractory’s plant at Ranipet Serkaddu, India.
 Commission of a modern 1,000 tonne vitrified bonded abrasive plant & 2000 tonne
organic bonded abrasives facility in china.

2014 – 2020 Revenue: Rs.16723 million

 Establishment of Toll manufacturing model operations in China.

 Expansion of industrial ceramics at Hosur.

 Commissioned three fusion plants at its Electro – mineral complex at Cochin, India.

 5 CUMI’s plants were awarded with JIPM Award for Excellence in TPM consistency/
TPM excellence, Category ‘A’.

3.4 RANIPET PLANT:

Carborundum Universal Limited Ranipet, Refactories plant established in 1990. The

plant main product is both fired and monolithics range of refractories catering to the critical and
demanding high temperature applications for various industrial applications.

22
3.5 VISION AND MISSION:

3.5.1 VISION:
The Vision of the Carborundum Universal Limited is “We will be an Admired Company
in Abrasives & Technical Ceramics, driven by Innovation, to create Stakeholder Wealth”.

3.5.2 MISSION:

The Mission of the Carborundum Universal Limited is “We will steadily improve
Refractories profitability and grow aggressively in new products”

 To be innovative, resourceful and profitable company.

 To meet customer requirements of quality service and price consistency.
 To make doing business with easy and delightful to our customers.

3.5.3 OBJECTIVES:

 To maintain the market leadership.

 To minimize the cost incurring in production process.
 To maintain the product quality.
 To be competitive at all markets.
 To utilize the new technological changes for the benefit of the company.

23
3.6 BOARD OF DIRECTORS:

 Mr. M. M. Murugappan : Chairman

 Mr. Sanjay Jayavarthanavelu
 Mr. Aroon Raman
 Mrs. Soundara Kumar
 Mr. P. S. Raghavan
 Mr. Sujjain S. Talwar
 Mr. Sridharan Rangarajan
 Mr. N. Ananthaseshan
 Mr. V. G. Rajendran
: Non – executive Director
: Non – executive Director
: Non – executive Director
: Non – executive Director
: Non – executive Director
: Director – Finance & Strategy
: Managing Director
: Senior Vice President – Super Refactories

3.7 CUMI PLANT LOCATION:

 CUMI Tiruvottiyur, Tamil Nadu

 CUMI Bonded Division, Hosur, Tamil Nadu
 CUMI Cut fast Division, Pallikaranai, Tamil Nadu
 CUMI Parganas District, West Bengal
 CUMI Windfarm, Tirunelveli, Tamil Nadu
 CUMI Industrial Ceramics Division, Dharmapuri, Tamil Nadu
 CUMI Super Refractories Division, Ranipet, Tamil Nadu
 CUMI Electrominerals Division, Kalamassery, Kerala
 CUMI Micro Plant, Cochin SEZ, Kakkanad

3.8 PLANT LOCATION OF SUBSIDIARIES / JOINT VENTURES:

 Sterling Abrasives Ltd, Gujarat

 Murugappa Morgan Thermal Ceramics, Ranipet , Tamil Nadu
 Wendt Ltd, Hosur, Tamil Nadu
 Volzhsky Abrasive Works, Russia
 CUMI Abrasives & Ceramics Co. Ltd, China
 CUMI Australia PTY. Ltd, Malaga
 CUMI Canada Inc.

24
3.9 CSR ACTIVITIES:

 Educational Sponsorship for Economically Deprived Children.

 Key Children Project-for Child Development.
 Adopted Schools and Communities in Thiruvottiyur and Ranipet.
 Solid Waste Management Program to improve the overall health of the community.
 CUMI Centre for Skill Development for enhancing employment skills in manufacturing
sector.

25
 CHAPTER – IV

ORGANISATION STRUCTURE & FUNCTIONAL

DEPARTMENTS

26
 4.1 ORGANISATION STRUCTURE:

MANAGING DIRECTOR

N. ANANTHASESHAN

N ANANTHASESHAN
SENIOR VICE PRESIDENT

V. G. RAJENDARAN

N ANANTHASESHAN
GENERAL MANGER

FRANKLIN

N ANANTHASESHAN

MANAGER SENIOR SYSTEM SENIOR MANAGER SENIOR SENIOR

ACCOUNT MANAGER ADMINISTRA ENGINEERING & MANAGER TQM MANAGER HR
SHIPPING TOR MAINTANCE & QA

HR EXECUTIVE
ASSIT OPERATIVES DEPUTY DEPUTY
SHIPPING MANAGER
ACCOUNT MANAGER MANAGER QA
EXECUTIVES

SUPERVISIOR
TEAM SUPERVISIOR
SUPERVISOR MEMBERS
STORE

TEAM
OPERATIVES MEMBERS

27
4.2 FUNCTIONAL DEPARTMENTS:

4.2.1 PRODUCTION DEPARTMENT:

SILICON CARBIDE is the major product produced in CUMI Ltd. Raw materials used
are quartz and raw petroleum coke. These two raw materials are furnished at a temperature
of2200 °C. This furnished product is classified in to two

 Micro
 Jet Milling
 Air Classifier
 Quality Control Check
 Bagging
 Macro
 Furnace Plant
 Grain Plant

 PRODUCTION CAPACITY:

Production capacity of the plant 1 is 1000 tons per month and the plant 2 is 750 tons
per month.

 PACKING:

25kg multiply paper bags of 1000 kg palletized. Other packaging types are requested.

 WORK SHIFTS :

The company works in 3 shifts.

 6am – 2pm
 2pm – 10pm
 10pm – 6am

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  ROLE AND RESPONSIBIITY OF PRODUCION MANAGER:
 Responsible for managing the production staff.
 Monitoring the day today production.
 Ensuring the timely dispatch of sales vehicles.
 Ensuring quality of the product.
 Training newcomers on the process.
 Preparing the production report on the day today basis.
4.2.2 QUALITY CONTROL DEPARTMENT:
CUMI is renowned for its quality, not only in electro minerals but also in all their
products.
4.2.2.A QUALITY POLICY OF CUMI:
“We shall proactively meet customer expectation by providing quality products and
services.”
This will be achieved through:
 Total commitment of the management in implementing an effective quality
management system.
 Continual technological development to fulfill changing needs of the customer.
 Total employee involvement for continuous improvement.
 Building mutually beneficial relationship with suppliers.
4.2.2.B 5’S POLICY OF CUMI:
CUMI adopted 5s policy for improving the quality of product and work.
1) Sorting:
 Segregate required usable re-workable and absolute item.
 Dispose off the unwanted items.
 Clear off walkways.
2) Systematizing:
 Use labels, colour codes for easy identification.
 Use index doe files, records, drawings etc.., to facilitate retrieve ability.
 Plan storage with accessibility.
3) Shining:
 Inspect the supply lines, scrap yards and gardens.

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  Clear up workplace, machine and tools after use.
 Identify root cause of loud noise, vibrations, head noise, vibration heat buildup in
equipment and take remedial action.
4) Standardizing:
 Establish checking procedure.
 Create visual control.
 Device ways and means and means to expose problems.
5) Self discipline:
 Develop action plan for maintaining the self standards.
 Give unambiguous advice.
4.2.2.C QUALITY AUDIT:
A systematic and independent examination to determine whether quality activities and
related result comply with planned arrangements and whether these arrangements are
implemented effectively and are suitable to achieve objectives.
The company has been following KAIZEN Japanese scheme for continuous improvement
in all activities of the business. This scheme means that the quality of the products or services is
determined by its uses, efficiency, and value for the money, comparison with other products and
some other criteria etc. These parameters are varying depending upon the situations. So there is
no proper measure to determine the quality of products and services.

ISO CERTIFICATION - CUMI has got ISO 9001-2008 series certification for quality
assurancein design / development, production installation and servicing.

4.2.3 HUMAN RESOURCE DEPARTMENT:

Human resource has always been one of the focus points in business strategy. HR
strategy is carefully linked to the vision, mission and overall business strategy of the company.
In CUMI, the HR department is responsible for putting together the HR plan based on corporate
plan. It is responsible for recruitment, selection of employees, transfers, payroll processing,
canteen, and legal proceedings.

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 Human Resource Planning is done with the 3+1+3 business plan (3- past 3 year’s
performance, 1- current year performance,3- forecast of future 3 year’s performance).
The company evaluates the HR requirements estimated by a series of analysis. The basic
objective of this department is effective utilization of Human Resource, desirable working
relationship among all employees and maximum individual development. The most appreciating
feature of CUMI is its profound flexibility in communication between any subordinate and
superior. This contributes to a friendlier cooperating environment. CUMI has a group of very
committed employees. It has strength of 44 permanent employees, 21 management staff, 65non
staff, 21 temporary trainees and 16 contractors.

HR DEPARTMENT HIERARCHY

GENERAL MANAGER

HR MANAGER

HR EXECUTIVE

STAFF

4.2.3.A HUMAN RESOURCE STRATEGY:

CUMI’S business strategy is evolved from Domestic and global market trends, Economic
growth competitor analysis and customer Industries‟ growth plan.HR strategy is linked to the
business strategy and facilities organization to achieve by building people capabilities CUMI‟s
concern for people has been driving force for the growth of the organization over the years
attribute last 5 decades.
The sustained growth over the past several years attributed to the knowledge, skills of the
people and technology. HR has been one of the focus points in the business strategy. The HR
strategy is carefully linked to the vision, mission and overall business strategy of the company.

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4.2.3.B HR VALUES:
 Concern for people.
 Integrity
 Customer orientation
 Continuous improvement
 Executive excellence
4.2.3.C HR PRINCIPLES:
 Whether workers or management staff, employees are employees. They are not different
bloc, but two faces of the same coin.
 Employee Unions are treated with respect and are partners in the progress.
 Harmony and peace cannot be at the cost of dilution of organization ethos. Fairness and
firmness will govern all employee relations.
 Communication and dialogue would be the essence of managing relationships.
 A proactive approach and a state of mental and physical preparedness would help in
managing unpleasant issues.
4.2.3.D HR FUNCTIONS:
 Recruitment & selection.
 Preparing appointment letters.
 Arranging training and development programs for the employees.
 Keeping all statutory obligations.
 Collecting data from all other factories to enable them prepare details for long term
negotiation.
 Informing the concerned department about the change of factory rules & other related
acts.
 Maintaining strict discipline.
 Making daily attendance of the employees, pay and overtime, this department also does
all correspondence relating to the ESI and PF.

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4.2.3.E CUMI’S POLICY ON HRP:
CUMI will recruit based on integrity, competency and the ability to work in a team. We
would also Endeavour to select individuals with leadership potentials, customer orientation and
quality focus. Above all, we also take the value-fit of the individual with the group in to
consideration.
4.2.3.F POLICY AND CARRIER PLANNING:
CUMI believes that it’s our responsibility to develop employees to their potential so that
the future challenges could me met with existing talent
4.2.3.G DEVELOPMENT PLAN
The 3 C’s of retention of talent at CUMI
 Challenge
 Compensate
 Competency
 Areas-operational /cultural excellence
4.2.4 FINANCE DEPARTMENT:

It prepares trail balance, MIS and audit report. The financial department uses Ramco
Virtil Works (RVW).

The accountsdepartment does book keeping, accounting and reporting functions. Itundert
akes the work of pay sheet preparation of staffs and workers, payment of bills, vouchers and
other financial transactions. They also prepare financial reports of the company. All the major
financial decisions are taken at corporate office (Chennai). This department also keeps income
and expenditure accounts, which includes the sale and disposal visible cost, contribution, fixed
overheads, operating and non-operating income etc. The corporate office provides funds for
working capital requirements. Departmental budgeting is also the function of accounts
department.

4.2.4.A MAJOR FUNCTION OF THIS DEPARTMENT:

 Keeping depreciation account.

 Preparation of income and expenditure account
 Preparation of budget for three years.

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  Departmental budgeting.
 Prepare management reports
 Coordinating the auditing functions
 FIFO method used to dispatch stock
 Spare part planning undertaken
 Item wise accounting and control of various inventory items.

4.2.4.B BALANCE SHEET:

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4.2.4.C FINANCIAL HIGHLIGHTS:

 Price/EPS (P/E) - 47.67

 Price/Sales - 6.47
 Earning/Share - 15.00
 Dividend/Share - 1.50
 Dividend/Yield - 0.160%
 Market Capitalization – 16848.34 Cr
 Enterprise Value - 16410.53 Cr
 Consensus Target – 404.67

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36
 CHAPTER – V

SWOT ANALYSIS

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5.1 SWOT ANALYSIS:

5.1.1 STRENGTH:

 The company provides value for money to the customers through their better quality and
innovative products.
 The company treats customers with respect and concern.
 The company has got strong R& D department, which have a policy that 6% of total sales
every year should be from new products. R &D enables the company to have an edge
over competitors in the new product development.
 The company has got professionally managed sales team with strong back up of reputed
dealers.
 ISO 9001: 2008 certification also helps in obtaining some orders as well as maintaining
the standard of the company.
 The greatest strength of the company comes from the employees who are efficient,
energetic and sincere. Dynamic top level management backs them. There is no
barrier between management and workers.
5.1.2 WEAKNESS:

 The salinity of water has to be improved.

 The roads within the company are to be developed so that men and materials can be
moved easily.
 Promotion is based on the seniority not on performance.
5.1.3 OPPURTUNITIES:
 The company can introduce more of its products in the market.
 The company can produce new and improved products with less labor and advanced
technology.
 More mines have to be found out.
 Globalization and liberalization can make its products globally acceptable.
 The company can employ best brains from top business and technical institutions
for better working and management.

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5.1.4 THREATS:
 CUMI faces stiff competition from world majors and local players.
 Power and other equipments are expensive.
 The demand for abrasives has fallen down because of industrial and economy slowdown.
 European financial crisis.

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CHAPTER VI
CONCLUSION

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6.1 FINDINGS:

 Has a good organizations structure and management system.

 Provides better working conditions to workers.
 Growth possibilities.
 Adequate storage facilities.
 Experienced employees.
 Monopolistic nature in Ranipet.
 Effective incentives system.

6.2 CONCLUSION:
CUMI is an ISO 9001:2008 certified company. It is an excellent employer and producer
of World class abrasives and refractory’s. This has happened only with the support of staffs and
Workers in the company. The management is dynamic and supportive and patiently the Worker’s
voices and acts accordingly.
For my study I visited Plant I producing silicon carbride and interacted with some of the
employees there. I could also interact with management staff that provided me with adequate
knowledge regarding various departments in the company. All the staff is very co-operative. The
study has helped me to know the objectives, vision and mission, values, rules and
regulations followed by the company. Company follows Japanese concept of housekeeping- 5S
programmes.
The privileged opportunity of doing four weeks long organization study proved out to be
highly beneficial in the learning point of view. It gave a practical knowledge about the nature of
the business firm and it had enabled me to have an exposure to the majority of the topics related
to company functioning, structure, policies, promotional activities, working environment,
organizational culture etc. It has also helped me to acquire the practical application of the
theories studied in the class room.

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