CHAPTER : 1

INTRODUCTION ABOUT

ORGANIZATION AND INDUSTRY

INTRODUCTION TO PVC PUMPS PVT LTD. :

An internship is the- job training for many professional jobs, similar to an apprenticeship, more
Often taken up by college and university student his undergraduate or master degree in their
free Time to supplement their formal education and expose them to the world of work.
Internship offers Various occasion to interns during internship programs to expand familiarity
in their choose area of Work, to find out what they have an importance in an exacting in specific
line of business, develop professional network links, build interpersonal skill or get some credit
points if it’s a “sandwich course” They are in.

Employers too benefit from an internship arrangement as it gives access to interns with some
skills to Execute relevant tasks for the employer. Many interns end up with permanent service
with the same Organization in which they are interned. Their worth to the organization may be
greater then before by The fact that they require modest or less training.

An internship may be compensated non compensated or some time to some extent paid. Paid
Internships is usually the norm in fields like medical and health science, engineering, laws and
politics, Business, graphic design accounting, banking and I finance, information technology,
media, Journalisms, hospitality and tourisms whereas unpaid internship are common.

At NGO/ Not for-profits organizations and think tanks and are deemed voluntary internships
may be Part-time or full-time; in general, they are part-time during the academy year and full-
time in the Summer vacations.

They usually last for six weeks to two months, its tenure very from organization, and it May be
shortening or long based on the organization for which they intern. Since 1990’ s economic
reforms in India, bought a sea change in business and academic culture, internships have found
a Prominent place in the life of a business and management studies. An increasing presence of

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 Multinational companies, rapid economic growth, globalization, individual’s aspirations,
urbanization Have all influenced the role and desirability of internships.

AN OVERVIEW OF INDIAN PUMP INDUSTRY

Pumps play a dominant role in the sectors like agriculture, production of oil and natural gas,
petroleum refining, petrochemicals, power generation, domestic and house hold utilities, etc,
and contribute a major part in nation’s economy.

Manufacturing Scenario:
Presently, the gross value of pumps production in India is estimated to be in the order of
USS450 Million (approx..1.2 million No). The scales of production and corporate structures of
manufacturers angel from the small scale industries, medium to large scale industries, both in
the unorganized sectors and also public sector units.

In terms of drive ratings, the range of manufacture extends from fractional horse power designs
to large pumps of drive rating of the order of three MW. Almost al types of pumps,
manufactured internationally are also made in India.

Demand and Supply Situation:

Indian pumps have contributed to the Nation’s economy significantly. Prominent sectors
amongst them are agriculture, on shore and offshore production of oil and natural gas,
petroleum refining, petro chemicals, mining, ship-building and marine duties , power
generation , public water supply and sanitation, domestic and households utilities, process
industries producing fertilizers, insecticides, pesticides, drugs and pharmaceuticals, textiles,
soaps and detergents, cosmetic and health Care products, dairies, vegetable oil and processed
and packed food products, breweries, paints, etc.

Indian pump manufacturers seem to fulfill all the demands of pump-usage, since imports are
not very significant. Some special materials used for special duties like requirements of very
fine vacuum are also imported. The quantities are small although the unit cost of these pumps
may be high.

Globalization of Indain economy increased enthusiasm of some importers to sporadically

import a few Container-loads of run-of-the mill type pumps for agriculture and Domestic duties.
However, those Events do not seem to have caught any fancy in the Indain markets. Pump
automatically gets imported with systems, not de-packaged for items that can be procured

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 indigenously. Yet, Users do seek import substitutes due to the cost- effectiveness of Indian
manufacture and for better guarantee of support with respect to after-sales service.

Indian pump industry: Marching on the growth path

India has been a traditional producer of pumps with a seven decade history . However, with
the recent globalization that the country is marking and increasing its presence in the world
pump market. While Major global economics are still feeling the effects of 2009 recession,
signs of strength are occurring in the Indian economy. Investor confidence has largely been
restored, and investments that had become a crucial commodity in the many regions, India not
excluded. Emphases on water quality, coupled with stringent waste water discharge
regulations, are creating opportunities for the water and waste water space to see the potential
for significant growth. This create an opportunistic scenario for pumps suppliers.

Reasons for pump market growth:

India has been a traditional producer of pumps with a seven decade history. However, it is only
with the recent globalization that country is marking and increasing its presence in The world
pump market. India produces more than two million pump units per year. with about 95% Of
demand accounted for by domestic manufacturers and imports making up the remaining
percentage.

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 Chapter-2

Organization Profile

ANOVERVIEW OF INDIAN PUMP INDUSTRY:

Pumps assume an overwhelming part in the divisions like farming, creation of oil and gaseous
petrol, Oil refining, petrochemicals, control age, local and family utilities, and so an, and
contribute a noteworthy part in country’s economy.
Pump isn’t another idea in Indian business. Truth be told, the Pichkari which lord Krishna
and his mates utilized for sprinkling shading water on Gopi’s, can be named as the most
established reference to a Pump idea, particularly of the responding plunger write. Along
these lines, pumps must be an Indian innovation, yet business generation of pumps in India, as
contemporarily comprehended, is cited to be path back in the main decade of twentieth
century.

Request and Supply Situation :

Indian pumps have added to the country’s economy altogether. Noticeable parts among them
are Farming, inland and seaward creation of oil and gaseous petrol, oil refining, petrochemicals,
mining,Send building and marine obligations, control age, open water supply and sanitation,
local and marine Local and family unit utilities, process business delivering manures, bug
sprays, pesticides, medications and pharmaceuticals, materials, cleaners and cleansers,
corrective and human service items, dairies, vegetable oil and prepared and stuffed sustenance
items, bottling works, paints, and so forth Indain pump makers appear to satisfy everyone of
the request of the pump-utilization, since imports are not exceptionally critical. Some
exceptional development pumps of extraordinary materials utilizes for unique obligation like
prerequisites of finer vacuum are additionally transported in. The amount are little in spite of
the fact that the unit cost of these pumps might high.

Globalization of Indain economy expanded excitement of few merchants to sporadically import

a couple of Holder heaps of ordinary sort pumps for forming and households obligations. Be
that as it may. Those occasion don’t appear to have gotten any extravagant in the Indian
markets. Pump naturally gets foreign mad with frame works, not de-bundled for things that can
be secured indigenously. However, Users do look for import substitutes because of the cost -
viability of Indian make and for better assurance of help concerning after-deals benefit.

Explanation behind pump advertise development :

India has been a customary maker of pumps with seven decade history . Nonetheless, It is just
with the current globalization that the nation is stamping and expanding its essence on the
planet pump advertise. Indian creates in excess of two million pump for every year, with
around 95% of interest represented by residential producers and imports making up the rest of
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 the rate. The water and wastewater segment is one of the best three end-client markets for
draws in India and Is required to be a solid territory of interest for direct makers through the
following decade. A few elements are driving opportunity and development in the Indian
water and wastewater industry, and the direct business in general:

Keeping up and improving water quality :

Increased controls, effective enactment and business like rules are required to be zones of core
interest. This is vital if natural corruption is to be in the long run controlled and turned around.
Consistence will Turn into an imperative measure for the business. Foundation extension:
India’s total national output(GDP) development has drifted at around 8%, and Framework
related advancement interests in the eleventh Five Year plan are arranged in the different
billions.

Market challenges:
While this market holds incredible guarantee for expanding pump incomes in the water and
wastewater Space, numerous components challenge managed showcase development. One is
the proceeded with Potential for political unsteadiness, which can have huge negative impacts
on ventures financed by the Legislature. An adjustment in government tends to differ or
abrogate arranged activities, especially in the water and wastewater area. Further issue is the
irregularity in the usage of ecological norms at the state level. This is noteworthy limitation on
showcase development in the most states don’t have framework Set up to screen water
contamination levels adequately, deliberately reliability.

IN addition, ecological organizations have not been allowed firm help or powerful
administrative orders, Constraining their ability to be compelling. An absence of cognizant
endeavors for the requirement of natural enactment can influence the development in the
advertise,

Anticipated development:
An indicating by a statistical surveying report titled India Pumps market outlook to 2019-
Driven by Government Investment and technological advancements by Ken research. Ken
Research reported its most recent production on “Indian pumps market outlook to 2019 Driven
by Government investments and Technological Advancements” which gives an exhaustive
investigation of different perspectives, for example, advertise size and market division of the
pumps showcase by modern pumps and rural and local pumps. The production talk about
significant drivers and development restrictions responsible for change in the request. Exchange
of pumps has additionally been featured Alongside industry late improvements. The report
additionally covers the incomes and pieces of pie of significant direct makers India. The report
is valuable for pump makers, providers, merchants and new players wandering in the market.
The pump advertise In India has seen declining development rates of the late because of

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 increasing expense of generation, deficiency in local request and absence of government
interest in end client Ventures. The plunging development is significantly started from reducing
income. India modern pumps showcase. The drop in income created in this section has been
great extent caused by taking off crude materials costs. The pump advertise in India is involved
substantial organizations, for example, Kirloskar Brothers Ltd, LSB pumps, and Shakti pumps
alongside a tremendous sloppy part containing little and medium endeavors. The Indian pumps
showcase incomes have developed at a CARG of 14.0% from 2010-2014 Based on type, pumps
can be portioned into diffusive pumps and positive uprooting pumps. In FY2014, radial pumps
represent ~ % of the offers of pumps in India since they have higher utility when contrasted
with positive removal pumps. Based on end utilize, pumps could be isolated into modern pumps
and farming and house hold pumps. The modern pumps fragment is principally is used in end
utilize section including oil and gas, control age, metals and mining, water and wastewater and
chemical and others. Then again, farming and residential pumps are normally used I horticulture
and building administration . In FY 2014, The Industrial pumps portion contributed % in the
aggregate income produced by the market as mechanical pumps are in more request when
contrasted with agrarian and household pumps joined together. The venture declared by the
Indian government for the advancement of framework will bring about expanded spending on
mechanical and agrarian pumps, rising weight net revenues because of high crude material
expenses will influence the development of this industry later on”, as per the research associate,
Ken Research.

As indicated by the exploration report, the Indian pumps market will develop at an impressive
CAGR Rate in this manner surpassing INR 190.2 billion by 2019 driven by numerous
mechanical and large scale economy factors.

Technologies, Collaborations and Indigenous R&D1:

Most of the world-renowned technologies have been operative in India. Majority of them seem
to be European, to name a few, KSB, Seltzer, Weir, SPP, Allweiler, Bornemann, Alsthom,
Stork, Terromaecanica, Godiva, Pleuger, Grundfos, ABS, Flight, Denver Orion, etc. Amongst
them American , Japanese and Australian. technologies can be sighted in Worthington-Dresser,
Ingersoll Rand, Gould’s, Duroc, Ebara, Asia LMI, Warman, etc. Indian technical skills and
engineering aptitudes have shown good capabilities of almost immediate absorption of the
involved design manufacturing and quality control specifications and application engineering
needs. That gives a good picture of the internationally competitive field already in play in India.
The Indian craftsman often enterprises in reverse engineering at very competitive costs.
Amongst the notable achievements of indigenous development and R&D can be cited, the
primary coolant pumps and sodium coolant pumps for nuclear power, large 2250 mm delivery-

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 size vertical turbine pumps and concrete volume pumps for cooling water circulation in thermal
power generation can also be cited.

Cavitation’s studies and CFD(Computational Fluid Dynamics) Analysis of flow patterns at

pump suction and deriving improvements in pump and sump designs are all becoming common
practice.

Indian pump industry: Marching on the growth path

India has been a traditional producer of pumps with a seven decade history. However, it is
only with the recent globalization that the country is marking and increasing its presence in
the world pump market.

While major global economics are still feeling the effect of the 2009 recession, signs of strength
are occurring in the Indain economy. Investor confidence has largely been restored, and
investment that Had been suspended due to the slowdown In demand are beginning to pick up
pace. Water has become a crucial commodity in many regions, India not excluded Emphases
on water quality, coupled with stringent waste water discharge regulations, are creating
opportunities for the water and wastewater space to see the potential for significant growth.
This creates an opportunistic scenario for pump suppliers.

Reasons for pump marketing growth:

India has a traditional producer of pumps with a seven decade history. However, it is only with
the recent Globalization that the country is marking and increasing its presence in the world
pump market. India produces more than two million pump units per year, with about 95% of
demand amounted for by domestic manufactures and imports making up the remaining
percentage .

The water and wastewater sector is one of the top three end-user markets for pumps in India
and is expected to be strong area of demand for pump manufactures through the next decade.
Several key factors are driving opportunity and growth in the Indian water and wastewater
industry, as well as the pump industry as whole.

Maintaining and enhancing water quality

Increased regulation, efficient legislation and pragmatic guidelines are expected to be areas of
focus. This is important if environmental degradation is to be eventually controlled and reversed
. Compliance will become an impotent measures for the industry.

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 Infrastructure Expansion :
India’s gross domestic product (GDP) growth has hovered at about 8% and infrastructure-
related developments investments in the 11th five year plan are planned in the multiple billion.

Projected growth:
In spite of these issue, The overall Indian pumps market in the water and wastewater sector is
expected to continue in growth mode Forecast for this industry through 2017.Revenue in the
base Year of2016 were an estimated 5,635.8 million Indian rupees (INR), which translates,
based on January 2011 conversion rates, to just under $124 million. Currently centrifugal is the
bulk of this number, constituting approximately over 95% of revenues. While growth is
expected for both types of pumps, centrifugal units are expected to continue to be heavily
favored in demand. The compound annual growth rate for pumps in this sector is forecast at
just over 18 percent, based on the growth trends indicated for the country as well as the industry.

Centrifugal pumps play a pivotal role in municipal water supply and irrigation projects. With
many projects lined up in both these areas during the forecast period, strong growth is projected
for these units. PD pumps are largely confined to wastewater treatment and sanitary
requirements. Lack of awareness among end users.

BAGROUND OF ORGANIZATION
Name of the company – PVC Pumps Private Limited
Year of Establishment – 1992
Year of Incorporation - 2001
Bord of directors - Mr. T.M Chandrakantha(CEO)
Mr. Rajendra prasad
Number of employees - Above65
Legal Status - Private Limits Company
Unit under reference – Plot no,1c,KIADB Industrial area, Lokkikere road, Davanagere
Karnataka.

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 NATURE BUSINESS CARRIED
PVC Pump private ltd is a Manufacture of Submersible pumps:
Submersible pumps

The product ranges are as below:

• 100 mm 3 phase submersible pumps

• 100mm single phase pumps
• 150 mm 3 phase submersible pumps
• Open well 3 phase submersible pumps
• Open well 1 phase submersible pumps
• The material of pumps shall confirm to the grades as per IS 8034 and 9283
Are any other standard as per customer requirements. .The pumps capacity for 0.5HP to20HP
And installed capacity is 500 pumps per month. The list is exhaustive however PVC PUMPS
will make anything and everything clients look for in precision Submersible pumps. It includes
purchase of raw material and conversion of raw material into finished Goods and selling of
finished goods into their clients.

PVC PUMPS purchase raw material from:

• High-Tech Industries, Jaipur
• Ganesh Engineering Work (Ahmadabad)
• PVC Trading Co (Bangalore).

INFRASTRUCTURAL FACILITIES:
All framework offices required to help the hierarchical procedures are given. Theis incorporates
structure, Workspace and related utilities, process gear, apparatuses and supporting
administration.

Area:
Unit 1:2400 sq, ft built up area and 50000 sq. ft. open area
Other facilities:
• It has a separate plant and modern technology for producing product.
• Rest room facilities
• Water facility
• Company provides Security measures for employees.

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 III. VISION, MISSION AND QUALITY POLICY

Vision: “To be the most successful submersible pump manufacturer/ Supplier in Karnataka”

Mission: “To manufacture and supply quality submersible pumps at right time at time to
satisfy Continuous”.

Quality Policy:

• “To manufacture and supply quality submersible pumps as per Is-standards at right time
to Satisfy customer requirements through continuous improvements”.
• The quality policy was declared by managing director in a meeting of all employees called
by Him on 25.03.2001.
• He explained the roles of each and every individual towards achievement of quality policy
Through quality objectives.
• The quality policy boards written in both English & Kannada are displayed in the
organization At prominent places.
• The deployment of the quality policy among the workman is done through discussion by
Respective HOD.
• PVC pumps have been giving a better quality product to their clients from many years.
Since

They are producing better quality products, now they have already got ISO 9001:2008

Quality policy is realized throughout the organization by

• Quality policy is realized throughout the Communicating the quality policy to all the
employees organization by
• Monitor and follow-up results on a continuous Implementing continual improvement.
• Processes throughout the organization.

Quality objectives of the organization are:

• To define and document customer requirements and review effectively so as to ensure

customer satisfaction.
• To procure quality materials and services from approved sources.
• To process quality products through continues monitoring and improvements
• technology Optimum utilization of resources to supply quality products consistently.
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 • To work as a team and motive each other each other to common goal. . To shoulder social
responsibility by keeping safe and hygienic environment.
• Optimal utilization of critical machinery as well as consistently meeting the customer
delivery requirements.

IV. WORKFLOW MODEL

PRODUCTION:
Induction is the process by with raw material and other inputs are converted into fished goods.

PRODUCTION MANAGEMENT

Induction management refers to application of management principle to the production in a

factory. In other words, production management involves application of planning, organizing,
and controlling to he production process .Production function can offer competitive advantages
to a firm in the following areas. Shorter new product lead time.

• More inventory turns

• Shorter manufacturing lead time.
• High quality.
• Better customer service.
• Reduced wastages.

PRODUCTION ACTIVITIES AT PVC PUMPS

PVC PUMPS comprises of advanced production unit guided by assistant production manager.
The activities production department starts from production planning

The responsibilities and authorities vested with production in charge are as

follows:
• Daily production planning. production monitoring
• Review of non-conforming products.
• Production as well as quality control.
• Production equipment maintenance and repairs. Health and safety
• ISO Documentation

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 • Attending external audits

PRODUCTION PROCESS AT PVC PUMPS:

The basic steps involving in production process consist of:

Incoming
Inspection

Cutting

Lathing

Pressing

Winding

Assembling

Fitting

Quality test

Painting

packing

Forwarding

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 PRODUCTION PROCESS FLOW CHART AT PVC PUMPS:

RECEIVE
CUSTOMER DISPATCH
ORDER

PURCHASES TO
SUPPLIERS FINAL
INSPECTION

RECEIVE RAW
PACKING
MATERIALS

INCOMING REDECLARATION
INSPECTION
OF ISI

CUTTING QUALITY TESTING

& PERFORMANCE

LATHING FITTING

PRESSING WINDING ASSEMBLING

PACKING

PACKING
Showing Production Process Flow Chart

Customer order is received on monthly basis. Raw material and subcontracts parts are received
through Invoice /DC as applicable along with the self-inspection reports or test

INCOMING INSPECTION:

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 Preliminary inspection is done by the stores personnel for verification of the part no, grade
quality, and packing etc. The discrepancies on the preliminary inspection is entered in the
DC/invoice and communicated to the supplier. For hardware no inspection except for quality
carried out. Consumable and spares are inspected against, visual defects, brand n me, type code
and quality and update in the Bin Card. Inspection of all incoming material are taken up against
the General Inspection plan and the or respective drawings or specification. The results of the
inspection are recorded. Tools are inspected for specification and against drawings as necessary
for the purchase of the same. On occasion of material rejected at the incoming stage, a supplier
defect notice is raised and is forwarded along with rejected parts to the supplier and the same
is followed up by the QA In charge.

LATHING
A lathe is a machine tool which turns cylindrical material, touches a cutting tool to it, and cuts
the material. The lathe is one of the machine tools most well used by machining. The lathe is a
machine tools the work piece between two rigid and strong supported called centres or in chuck
or face plate which revolves. The cutting tool is rigidly.

Held and supported in a tool post which is fed against the revolving work. The normal cutting
operations are performed with the cutting tool fed either parallel or at right angles to the axis of
the work. Examples of objects that can be produced on a lathe include candlestick holders, gun
barrels, cue sticks, tables' legs, bowls, baseball bats, musical instruments, crankshafts, and
camshafts.

V. PRODUCT/SERVICE PROFILE

PVC PUMPS manufactures a wide range of pumps components based upon the specific needs
of their clients. The various products of PVC PUMPS are as follows:

Submersible pumps
The product ranges are as below:
• 100 mm single phase pumps
• 100mm 3 phase submersible pumps
• 150mm 3 phase submersible pumps
• Open well 3 phase submersible pumps
• Open well 1 phase submersible pumps
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 VI. OWNERSHIP PATTERN
(THIS IS A PARTNERSHIP COMPANY)

Name of the Relationship

shareholder with Share
promoters in
capital

Mr. Prasad Promoter 60%

Mr. Cousin 20%

Vijayakumar

Mr. Cousin 20%

Chandrakantha

Table 1

PVC Pumps private Ltd is driving maker and of Submersible pumps, PVC PUMPS. PVC
Pumps Private Limited is a Private Company consolidated on 28 December 2001. It is delegated
Indian Non-Government Company and is enlisted at Registrar of Companies, Bangalore. Its
approved offer capital is 100,000 and its paid up capital is 100,000

VII FUTURE GROWTH AND PROSPECTUS

PVC pumps private limited is 266 25 best Company in India which is involved in other wholesale
n.e.x, while there are 16460 companies rated inferior than PVC pumps private ltd.

• PVC pumps private Ltd is 391" best company in Karnataka which is involved in other
wholesale n.c.c, while there are 230 companies rated inferior than PVC pumps private
Ltd.
• PVC pumps private Ltd. Started in 2001 i.e., company is 18 years old.

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 COMPETITOR'S INFORMATION

• Asian Pumps Pvt Ltd, Bangalore.

• Swastik Pumps, Peenya II Stage Bangalore.
• Akshaya Pumps Pvt Ltd, Davanagere.
• Vinayaka Industry harihar.
• Bairavi Industry, Sandur. Bellary District.

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 Chapter- 3
Mckensy's 7s Framework

Mckensy's 7s Framework

The 7-S model is better known as Mckensy’s 7-S model. The name McKinsey is associated
with the 7-S model this is because it is named after two persons who developed this model,
Tom Peters and Robert Waterman. They were the consultants at Mckinsey& co. at that time
they published their 7-S model in their article "STRUCTURE IS NOT ORGANISATION"
(1980) and in their books "THE ART OF JAPANESE MANAGEMENT" (1981) and "IN
SEARCH OF EXCELLENCE" (1982).

The model starts on the premise that an organization is not just structure, but consists of seven
elements:

Figure No: 4 Mckensy's 7s Framework

Showing Mckensy's 7's framework

The model is most often used as an organizational analysis tool to assess and monitor changes
in the internal situation of an organization. The model is based on the theory that, for an
organization to perform well, these seven elements need to be aligned and mutually reinforcing.
So, the model can be used to help identify what needs to be realigned to improve performance,
or to maintain alignment (and performance) during other types of change.

Restructuring, new processes, organizational merger, new systems, change of leadership,

understand how the organizational elements are interrelated, and so ensure that the wider impact
of changes made in one area is taken into consideration.

• Structure
• System
• Style
• Staff
• Skills
• Strategy

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 • Shared Value

STRUCTURE:

P.V.C Pumps organization structure refers to the relativity more durable organizational
arrangements and relationships. It prescribes the formal relationship among various positions
and activities. Arrangements about relating relationships, how an organizational member is to
communicate with the others, what role he is to perform and what rules and procedures exists
to guide the various activities performed by members of all part of the organizations. PVC
pumps pvt ltd follows ethics in their organization in order to maintain a healthy organization
and relationships among all the members. Managing Director empowers sub-ordinates to report

Line and Staff organization structure:

Managing
Director

GM

Production Purchase Finance Marketing

Department Department Department Depatment

Employees Employees Employees Employees

SYSTEMS:

Every organization has some systems or internal processes to support and implement the
strategy and run day-to-day affairs.

For example a company may follow a particular process for recruitment. These processes are
normally strictly followed and are designed to achieve maximum effectiveness.

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 RECRUITMENT SYSTEM
INTERNAL RECRUITMENT AT PVC PUMPS

At PVC PUMPS mostly the following internal recruitment takes place:

• Employee referrals.
EXTERNAL RECRUITMENT AT PVC PUMPS
PVC PUMPS mostly recruit employees externally through:
• Labour contractor
• Besides employees referrals too
• Advertisement

TRAINING SYSTEM

PVC PUMPS spend adequate amount of time and money on training and development
programmers such as: P.V.C PUMPS PVT. LTD., DAVANGERE

• Once in a year "safety, first aid and firefighting training" are conducted.
• Orientation classes are conducted to make the new recruits adaptable to the organization
culture, organization environment.
• Training from superiors
• Operative Training.

STYLE:

PVC Pumps Pvt Ltd includes the Leadership style of top management and the overall operating
style of the organization. Style impacts the norms people follow and how they work and interact
with each other and with customer.

The management training is totally democratic there are no restrictions to any employee to
express his opinion. PVC Pumps has got open door policy i.e. any level of employee can meet
directly to his superior or managing director without any hesitation. This leads to the free flow
of communication within the organization.

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 STAFF:

The people / human resource management processes used to develop managers, socialization
processes, ways of shaping basic values of management cadre, ways of introducing young
recruits to the company, ways of helping to manage the careers of employees. PVC Pumps Pvt
Ltd consists of highly experienced semi-skilled staff directing the operations.

PUMPS all personnel go through regular training.

PVC PUMPS currently employed 55 and above employees as:

SKILL:

Skills include the distinctive competencies that reside in the organization. These can be
distinctive
competencies of people, management practices, systems and technology.

The employees in P.V.C Pump Pvt Ltd need to have both specific as well as generic skills.
Generic skills mean problem solving skills, decision making skills, communication skill etc.
Specific skill means time management, shop floor management, building teams, leadership,
Motivation, creativity and environment Shop floor employees are ITI and Diploma holder
Mechanical engineer Technicians.

STRATEGY:

Strategy refers to the systematic action and allocation of resources in P.V.C pumps Pvt Ltd to
achieve the companies aim. The company is procuring the good quality of raw materials from
local suppliers, which increases their quality of the finished goods to meet the customer
expectations. The integrated vision and direction of the company as well as the manner, in
which it drives, articulate, communicates and implements that vision and direction. It can also
be defined as the choice of direction and action that the company adopts to achieve its objectives
in a competitive situation.

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 SHARED VALUES:

In shared values, a role of the vision statement is to impart to the organization and externally
what the organization stands for and what it believes in. usually this is related to the top
management in which top management not only formulate and constantly reiterate values and
beliefs but also adhere to them.

➢ PVC Pumps Pvt Ltd has a strong commitment towards environment and pollution control.
The institute has undertaken a number of R&D projects to develop industrial pollution
control technologies.
➢ PVC Pumps Pvt Ltd support anti-corruption practices and demonstrate it by participating in
global compact of united nations which include anti-corruption principles.
➢ Understanding the needs of buyers and offering those good products.
➢ Providing an enabling environment to faster growth and learning for our employees.
➢ Maximize the profit by satisfying the buyers and increasing the marketing share.
➢ Fulfilling the societal objectives with the constant attachment and contribution to the society
for wellbeing of both company and society.

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 PORTER'S 5 FORCE MODEL PVC PUMPS PVT LTD

PORTER'S FIVE FORCESMODEL:

Definition:
Porter's Five Forces is a model that identifies and analyses five competitive forces that shape
every industry and helps determine industry's weaknesses and strengths. Frequently used to
identify an industry's structure to determine corporate strategy, Porter's model can be applied
to any segment of the economy to search for profitability and attractiveness.

Introduction:
Porter's Five Forces is a business analysis model that helps to explain why different industries
are able to sustain different levels of profitability. The model was published in Michael E.
Porter's book, "Competitive Strategy: Techniques for analysing Industries and Competitors"
in 1980. The model is widely used to analyse the industry structure of a company as well as
its corporate strategy. Porter identified five undeniable forces that play a part in shaping every

Market and industry in the world. The forces are frequently used to measure competition
intensity, attractiveness, and profitability of an industry or market. These forces are

1. Competition in the Industry

2. Potential of new entrants into the Industry
3. Bargaining Power of suppliers
4. Bargaining Power of customers
5. Threat of substitute products

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 PORTERS FIVE FORCES MODEL: PVC PUMPS INDUSTRY

Dimension of Porter Five Force Impact: High/Low

Model

Competition in the Industry Low

Potential of new entrants into the High

Industry

Bargaining Power of suppliers Low

Bargaining Power of customers Medium

Threat of substitute products Low

Table No: 2

Porter Five Forces Model for PVC Pumps Industry:

THREAT OF NEW ENTRANTS: LOW

1. Economies of scale
2. Product differentiation
3. Brand identity/loyalty
4. Access to distribution channels
5. Capital requirements
6. Access to latest technology
7. Access to necessary inputs
8. Absolute cost advantages
9. Experience and learning effects
10. Government policies
11. Expected retaliation from existing players

BARGAININGPOWER OF SUPPLIERS: HIGH:

1. Number of suppliers
2. Size of suppliers
3. Supplier concentration
4. Availability of substitutes for the supplier's products
5. Supplier threat of forward integration

23 | P a g e
 6. Industry threat of backward integration
7. Supplier's contribution to quality or service of the industry products
8. Importance of volume to supplier
9. Total industry cost contributed by suppliers
10. Importance of the industry to supplier's profit

BARGAINING POWER OF BUYERS: LOW

1. Buyer volume (numbers of customers)
2 Size of each buyer's orders
3. Buyer concentration
4. Buyer's ability to substitute
5. Buyer's information availability
6 Buyer's threat of backward integration
7. Industry threat of forward integration
8. Price sensitivity

THREATOF SUBSTITUTE PRODUCTS OR SERVICES: MEDIUM

1. Number of substitute products available
2. Buyer's propensity to substitute
3. Relative price performance of substitutes
4. Perceived level of product differentiation
5. Substitute producer's profitability & aggressiveness

RIVALRY AMONG EXISTING COMPETITORS: LOW

1. Number of competitors
2. Diversity of competitors
3. Industry concentration and balance
4. Industry growth
5. Industry life cycle
6. Quality differences
7. Product differentiation
8. Brand identity/loyalty
9. Intermittent overcapacity
10. Informational complexity
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 11. Barrier

Chapter 4
SWOT ANALYSIS
SWOT Analysis is made to examine the interior quality and shortcoming and outside
circumstances and angers Fruitful business expands on their qualities, adjust their
shortcomings, and secure against award and outer dangers. They additionally watch out for their
general business condition and spot and endeavour new open doors quicker than contenders

STRENGTHS:
• It is something the organization does well relative to competitors. It arises from resources
and competencies available in an organization. It creates strategic advantage.
• PVC Pumps having semi-skilled & skilled employees.
• Continuous improvement in profit
• Company manufactures quality pumps & supplies to government.
• PVC Pumps is producing 800 pumps per month.
• Continuous supply of raw materials by suppliers helped the company to work continuously.
• Satisfied and motivated employees & workers.
• Company has got ISO 9001-2000 certification
• Competent promoters having 26 years of experience in the same line of business.
• Continues increase in demand for pumps is also one of the positive things to the company.

WEAKNESS:
It is something the organization does poorly relative to competitors. It arises from deficiency
in
resources and competencies. It creates competitive disadvantage.
• Lacks in financial strength.
• Lack in infrastructural facilities.
• There is no proper promotion strategy.
• Lack in proper technical machines.
• Inadequate labour supply.

OPPORTUNITIES:

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 It is the major favourable situation in an organization's external environment. It provides
position of superiority in relation to competitors.

SWOT MATRIX FOR PVC PUMPS PVT LTD,DAVANAGERE

STRENGTHS WEAKNESS

Successful in establishing good urban and Lack of experience for unskilled labours.
rural local market.

Good employer and employee New to the market.

relationship.

Production quality is the strength of the Preference will not be given to those who
PVC PUMPS PVT LTD Industries. are not getting van facility and village
network distribution.

Strong financial base. High R&D COST

Competent manpower like factory

workers.

Good dealer distributor network and

market

base.

Well-built management team.

Availability of necessary infrastructure.

OPPORTUNITIES THREATS

Expand the market in rural areas. Competition by the large-scale industries.

Upgrading the products. Cost pressures by customers.

Introduce new products, and technology Cost pressures by competitors.

to the new generation
Increasing distribution cost.
Company can try and increase the number
of

product range in the same product line

Servicing low income people with new Changing technology.
schemes

Good raw to enhance Material sources Changing technology.

production.

Wide distribution throughout Karnataka.

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 • New technologies are increasing.
• Increasing demand for pumps.
• Government has given some exemptions to the company.
• Sales are good.
• It can produce the pumps according to demand.
• Good quality pumps are manufactured and sold easily.

THREATS

It is a major unfavourable situation in an organization's external environment. It provides position

of inferiority in relation to competitors

• Strong competitors.
• Changes in technology.
• Insufficient supply of power
• Political or Environmental changes.

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 Chapter -5
ANALYSIS OF FINANCIAL STATEMENT
LIQUIDITY RATIOS
1.Current ratio: This is most widely used ratio to know the working capital position. This
ratio expresses the relationship between current assets and current liabilities. This ratio gives
the information about firm ability to meet short term and long term working capital.

Particulars 2016 2017 2018 2019 2020

Current 7.62 10.6 8.79 7.52 51
ratio

From the above analysis it is inferred that the Current Ratio is always maintain the above the
standard. The Current ratio form the above calculation is worth 5.25 in 2009. it has been
decreased in 2010 to 3.7 and in the year 2011it has increased to 30. The Short-term solvency
is very good but the mean time excessive investment or holding the amount in terms of cash is
not generating any income to the Company. Management should think and wisely invest the
excessive cash in income generating activities; it will improve the profitability and the Long
term solvency of the Company.
2.Quick ratio: liquid ratio express the relationship between liquid assets and liquid liabilities.
The ideal ratio for a concern is 1:1. This ratio is measure payment of immediate liabilities.
𝑛𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠−𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
Acid test ratio =
𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑎𝑖𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
Particulars 2016 2017 2018 2019 2020
Quick ratio 3.875 6.860 6.340 5.184 32.88

3.Cash Ratio: it is ratio of cash equalent balance to current liability it can be caluclated, since
cash is the most liquid asset, a financial analyst may examine cash ratio and eqalent to current
liabilities. Trade investment on marketable securities are equalent of cash; therefore, they may
be included in the competition of cash ratio.
𝐶𝑎𝑠ℎ
Curent Ratio = 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑎𝑖𝑏𝑎𝑙𝑖𝑡𝑖𝑒𝑠

Particulars 2016 2017 2018 2019 2020

Cash Ratio 0.069 1.131 0.516 0.192 3.147

: This ratio shows how the company can pay their laibabilities from the cash. From above the tabale we can
say that the company have sufficient amount of funds to meet the curent laibalities of the comapany. In the
year 2011 we can see the big variation because increse in bebtors and decrease in creditors of the company.
28 | P a g e
2. Long term solvency Ratio:-
i. Debt Equity Ratio: Debt equity measures the ratio of long term or total debt to shareholder’s equity.
The relationship between borrowed funds and owners capital is popular measure of the long term
financial solvency of a firm.

𝐿𝑜𝑛𝑔 𝑡𝑒𝑟𝑚 𝐷𝑒𝑏𝑡

Debt equity Ratio =
Net worth
Particulars 2016 2017 2018 2019 2020
Debt Equity 2.201 3.001 5.145 3.913 2.71
Ratio

ii. Debt to asset Ratio: The debt to asset ratio measures the extent to which borrowed funds
supports the firm’s assets.

Meaning: Debt ratio may be used to analyse the long term solvency of a firm. The film may be interested
in knowing the proportion of interest bearing debt in capital structure. Total debt includes long term and
short term borrowing.
𝐷𝑒𝑏𝑡
Debt to asset ratio = 𝐴𝑠𝑠𝑒𝑡𝑠

Particulars/years 2016 2017 2018 2019 2020

Debt to asset 0.688 0.750 0.782 0.725 0.700
ratio

2. Proprietary Ratio: The ratio that expenses the relationship between proprietor’s fund and total assets
is called proprietary. This ratio can be calculated as under.
𝐸𝑞𝑢𝑖𝑡𝑦
Propritary ratio =
𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
Particulars 2016 2017 2018 2019 2020

Proprietary 0.312 0.249 0.152 0.237 0.257

ratio

1. Fixed asset to net worth ratio: the ratio, which establishes the relationship between
assets and shareholders fund, is called asset to fixed net worth ratio. This ratio can be calculated as
follows:

𝐹𝑖𝑥𝑒𝑑 𝑎𝑠𝑠𝑒𝑡𝑠 (𝑎𝑓𝑡𝑒𝑟 𝑑𝑒𝑝′ 𝑛)

Fixed asset to net worth ratio = 𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟𝑠 𝑓𝑢𝑛𝑑

Particulars 2016 2017 2018 2019 2020

FANWR 1.335 1.698 3.570 2.408 1.758

29 | P a g e
 2. Ratio of current asset to net worth ratio: the ratio which establishes the
relationship between current assets and shareholders’ funds is called ratio of current assets to net
worth ratio
Current Assets
Current Assets to net worth Ratio =
Networth/Proprietor,s Fund

Particulars/years 2016 2017 2018 2019 2020

Ratio of current 1.252 2.290 2.833 1.904 2.058
assets to N/W

5. Times interest earn ratio/ interest coverage ratio:

It is used to test the firms debt serving capacity. The higher its value, the better able the firm is to full fill
interest obligation. The TIER is calculated as fallows.
𝐸𝐵𝐼𝑇
Interest Coverage Ratio = 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡

Particulars/years 2016 2017 2018 2019 2020

Interest 2.785 1.983 0.309 1.44 1.52
coverage ratio

4.ACTIVITY RATIO:-
1. FIXED ASSET TURNOVER RATIO: This ratio measures sales per rupee of investment in fixed assets.
𝑠𝑎𝑙𝑒𝑠
FATR= 𝐹𝑖𝑥𝑒𝑑 𝑎𝑠𝑠𝑒𝑡𝑠 (𝑁𝑒𝑡 𝐵𝑙𝑜𝑐𝑘)

Particulars/years 2016 2017 2018 2019 2020

Fixed asset T/o 2.318 2.320 2.087 2.096 2.387
Ratio

Working Capital Turnover Ratio:

2.working capital turnover ratio: working capital of a concern is directly related to sales this ratio
measures the efficiency with which working capital is being used by a company . It can be defined as

Net Sales
𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑅𝑎𝑡𝑖𝑜 =
Working Capital
Particulars/years 2016 2017 2018 2019 2020
Working capital 2.847 1.899 2.968 3.057 2.080
T/O ratio
30 | P a g e
In the year 2008-09 the ratio was high at 1.057, which indicates efficient utilization of working capital. But in
the year 2009-10 and 2010-11, ratios decreased to 0.520 and 0.906 respectively. And it shows working capitals
are not utilized properly due to excess of working capital, its low which signifies lower revenue.

3.Current asset turnover ratio: If the ratio is high then it indicates the firm is in good position. It
shows the over or under trading is relation to the quantum of working capital.
𝑁𝑒𝑡 𝑠𝑎𝑙𝑒𝑠
Current asset turnover ratio = 𝐶𝑢𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠

Particulars/years 2016 2017 2018 2019 2020

Current asset 2.473 1.720 2.630 2.650 2.038
ratio

3. Proprietary fund turnover ratio:

𝑆𝑎𝑙𝑒𝑠
Proprietary fund turnover ratio =
𝑃𝑟𝑜𝑝𝑟𝑖𝑒𝑡𝑎𝑟𝑦 𝑓𝑢𝑛𝑑 (𝑠ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟𝑠 𝑓𝑢𝑛𝑑)

Particulars/years 2016 2017 2018 2019 2020

Proprietary Fund T/O 3.097 3.939 7.454 5.048 4.197
ratio

4. Sales to current assets ratio:

𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
Sales to current asset ratio = 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠
Particulars 2016 2017 2018 2019 2020
Sales to 2.473 1.720 2.630 2.650 2.038
current asset
ratio

4). Profitability Ratio:

1.Gross profit ratio: Gross profit ratio measures the relationship of gross profit to net sales and is usually
represent as ratios. Thus, it is calculated by dividing the gross profitby sales.

Gross Profit
Gross Profit Ratio =
Net Sales
Particulars/ 2016 2017 2018 2019 2020
years
Gross profit 0.092 0.089 (0.024) 0.054 0.057
ratio

31 | P a g e
2. Net profit ratio: Net profit ratio establish a relationship between profit after tax and sales and it
indicates management’s efficiency in manufacturing, administering and selling the products
Net Profit After Tax
ProfitNet Ratio =
Net Sales

Particulars/years 2016 2017 2018 2019 2020

Net profit ratio 0.045 0.041 (0.065) 0.043 0.019

3.Operating ratio: Operating ratio measures the relationship of operating cost to net sales
and is usually represented as ratio. And it indicates management’s efficiency in manufacturing,
Operating cost
administering and selling the products. Operating Ratio =
Net sales

Particulars/ 2016 2017 2018 2019 2020

years
Operating P/R 0.931 0.986 1.037 0.966 0.951

4.Debtor’s turnover ratio: This ratio shows how many times sundry debtors turn over
during the year. It can be defined as:

𝐶𝑟𝑒𝑑𝑖𝑡 𝑠𝑎𝑙𝑒𝑠
Debtor turnover ratio =
𝐴𝑣𝑎𝑟𝑎𝑔𝑒 𝑑𝑒𝑏𝑡𝑜𝑟𝑠

Particulars/year 2016 2017 2018 2019 2020

DTR 6.612 3.973 6.016 6.502 5.438

5.Avarage collection period: It can be defined as

365
Avarage collection period =
𝐷𝑒𝑏𝑡𝑜𝑟𝑠 𝑡𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜

particulars/ years 2016 2017 2018 2019 2020

Avg collection period 55.202 91.864 60.670 56.131 67.120

6.ROE (Return on Equity): The turnover on common equity measures the return earned on the
common stockholders’ investment in the firm. Generally, higher the return, the better.
PAT
ROE =
𝑁𝑒𝑡 𝑤𝑜𝑟𝑡

Particulars/years 2016 2017 2018 2019 2020

ROE 0.207 0.262 (0.316) 0.454 0.187
Conclusion:

32 | P a g e
It has been excellent opportunity for me carry out the Internship at Aradhya Steel Pvt ltd, Davangere. It has
helped to a great extent to have an insight into the practical realities of the subject. I try my best effort for the
completion of my project study.
I have been able to study and I feel it is essential to review the various aspects of my study and some-
up the important observation.

Summary of Ratios:
Particulars/years 2016 2017 2018 2019 2020

Current Ratio 7.62 10.6 8.79 7.52 51

Quick Ratio 3.875 6.860 6.340 5.184 32.88

Cash Ratio 0.069 1.131 0.516 0.199 3.147

Debt Equity Ratio 2.201 3.001 5.145 3.913 2.71

Debt to Asset Ratio 0.688 0.750 0.782 0.725 0.700

Proprietary Ratio 0.312 0.249 0.152 0.237 0.257

Fixed Asset to NWR Ratio 1.335 1.698 3.570 2.408 1.758

Ratio of Current Asset to N/W 1.252 2.290 2.883 1.904 2.058

Interest Coverage Ratio 2.785 1.983 0.309 1.44 1.52

Fixed Asset T/O Ratio 2.318 2.320 2.087 2.096 2.387

Working Capital T/O Ratio 2.847 1.899 2.968 3.057 2.080

Current Asset T/O Ratio 2.473 1.720 2.630 2.650 2.038

Total Asset T/O Ratio 1.935 1.970 2.267 2.389

Proprietary Fund T/O Ratio 3.097 3.939 7.454 5.048 4.197

Sales to Current Asset Ratio 2.473 1.720 2.630 2.650 2.038

Gross Profit Ratio 0.092 0.089 (0.024) 0.054 0.057

Net Profit Ratio 0.045 0.041 (0.065) 0.043 0.019

Operating Profit Ratio 0.931 0.986 1.037 0.966 0.951

DTR 6.612 3.973 6.016 6.502 5.438

Avg Collection Period 55.202 91.864 60.670 56.131 67.120

ROE 0.207 0.262 (0.316) 0454 0.187

33 | P a g e
 Chapter-5

LEARNING EXPERIENCE

My sincere thanks to the management of PVC PUMPS PRIVATE LIMITED, DAVANGERE

for their kind permission to undertake 30 days in-plant training in their organization. It is a very
good experience what I have studied in organization.

I have learned the organization structure of the company and also all the functional departments
of the organization. I came to know the process of manufacturing pumps and also the financial
conditions of the company.

I studied many practical aspect as compared to theoretical aspects and it is also exposed me
about working of an organization, to relate the theoretical concepts learnt in the classroom to
organizational functioning, decision making crotalarias and real life application of
management.

I have got the practical orientation of the functions of the various departments of the company.
And I was able to analyse the performance of the company. I understood the application of
theoretical concepts into business decisions in the organization.

I have gained knowledge about all round view0 of the management operation. I got the
knowledge about the Analyses of the present status & future strategies of the company's

34 | P a g e
 BIBILIOGRAPHY

Books referred

• Human resource management by VSP Rao Anurag Jain

• publisher New Delhi 2nd edition year 2010, page No:-123,137,143,144,189 .
• 191,340,342.
• . Referred company's documents

Websites referred

https://pvcindustries-davangere business.site/
https://www.zaubacorp.com/company/PVC-PUMPS-PRIVATE
LIMITED/US1909KA2001PTC029943
http://akvopedia.org/wiki/PVC pumps
http://www.google.co.in McKinney7s Model

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