PREFACE

Knowledge is one of the most important Treasures for any person. The amount of the knowledge in this world is a doubling every five years and with the end of the 21st century it is now expected to double every two years. So if I plan to be in this knowledge explosion means that I would be facing with unprecedented challenges and opportunities. How well I address that I would depend upon, in large part on my ability to adapt to the continuing changes. Journal work like this gave an exposure to the practical and real life experience of the modern market.

Theories don’t teach unless accompanied by the working in original situation. This project report was carried out according to the course of MBA.

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DECLARATION

I, Mr. SHAMJI L MAKWANA. here by declare that this project is the record of authentic work carried out by me, in well reputed company AMUL INDUSTRIES PVT LTD. during the academic year 2007-2008, under the guidance of Mr. Devang Vaghela faculty of H. N. Shukla college of Business studies. This is my real work and has not been submitted to any other university or institute towards the award of any degree.

Date: -

Place: -

(Student Name) SHAMJI L. MAKWANA

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ACKNOWLEDGEMENT

Through this acknowledgement, I express my thanks towards all those people who helped me for the preparation of Summer Project Report, which has been a learning experience. I am extremely thankful to Ms. Nisha Korvadiya (HR executive) & Mr Manhar .Parekh(manager P& Administration), Rajkot for getting me acquainted to the company and giving me the golden opportunity to carryout this interesting training at Amul industries pvt. Ltd. I would like to thank Mr. Parag Solanki (Quality Control dept.) Mr. M. R. Trivadi (Account dept.), Mr. Raju Chudashama (Marketing dept.), Mr. Sharad Thakkar (Exprot Marketing dept.), Mr. Manish P. Vekariya (Purchase dept.), Mr. Bhavesh Vora (Production dept.) for helping me to do my project successfully. I am grateful to each one working in the organization for their humble and generous behavior towards me. I am sincerely thankful to the team of AMUL INDUSRIES PVT. LTD. In addition of allowing me to industrial training of the company and study of the organization and various aspects of managerial functions, they provide me many details. In the preparation of this study report. I take this opportunity to thank my professor Mr Devang Vaghela faculty member of the

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institute, Shree H. N. Shukla college of business studies, who has accompanied me and the providing me all the facilities to make the industrial training more fruitful. Last but not least I am also grateful to my friends and all those who directly or indirectly helped me completion of the project.

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HUMAN RESOURCE DEPARTMENT 8. INDUSTRY OVERVIEW 2. MARKETING DEPARTMENT 6. COMPANY OVERVIEW 3. BIBLIOGRAPHY 5 . QUALITY CONTROL DEPARTMENT 5. PRODUCTION DEPARTMENT 4.CONTENT 1. FINANCE DEPARTMENT 7. FINDINGS & CONCLUSION 9.

INDUSTRY OVERVIEW 6 .

Telco. Bajaj. it can be classified into three distinct phases namely: 1. Period post Liberalization (1991 onwards). This period witnessed the emergence of a new generation of auto ancillary manufacturers who were required to meet the stringent quality standards of Maruti's collaborator Suzuki of Japan. The period prior to the entry of Maruti Udyog Ltd was characterized by low technology and assured business for most of the auto-component manufacturers who used to supply to a handful of players in the Indian automobile market like Hindustan Motors. Period after the entry of Maruti Udyog Ltd till economic liberalization (1984 to 1991). The good 7 . Premier Automobiles. the auto ancillary industry in the country showed a spurt in growth. If the evolution of this industry is traced in India. With the entry of Maruti in the 1980s. 3. Mahindra & Mahindra etc.HISTORY OF INDUSTRY The Indian Auto Component Industry had its small beginnings in the 1940s. Period prior to the entry of Maruti Udyog Ltd (1940s to 1984) 2.

Demand is derived from original equipment manufacturers (OEM) as well as the replacement market. Daewoo etc.. 8 . Today. which saw a lot of consolidation. The performance of auto ancillary sector is closely linked to those of the auto sector. technological collaborations and equity partnerships within the industry and with leading global players abroad. With the liberalization of the Indian economy in 1991 and coming of many foreign automobile manufacturers like Hyundai. favorable interest rates and general improvement in per capita income points towards higher demand for automobiles in the future. Hence. commercial vehicles) have an impact on auto ancillary demand. This has made the automotive component manufacturers in India to be under severe pressure to meet such onerous demands.performance of Maruti resulted in an upswing for the domestic auto ancillary industry. while OEMs account for 27%. which contribute more than 85 percent of India's production. the automotive companies have to further enhance the quality of their products and operations as global players require quality components at reasonable prices and at precise time durations. the auto ancillary industry witnessed huge capacity expansions and modernization initiatives in this period. many international and local automotive players are increasingly sourcing components from Indian automotive component manufacturers.. Demand swings in any of the segments (cars. Replacement demand accounts for close to 57% of total demand. According to the Indian auto component industry body ACMA the auto components industry in India is dominated by around 500 key players. This also led to a tough competitive scenario. two-wheelers. As the demand for manufactured automotive components with the tag "made in India" increases. Factors like increased public spending. with exports accounting for the balance 16%. today all the major players in this industry are having one or the other logistics management system. to meet such demands. The automobile sector is cyclical and dependent on the growth of the economy and improvement in infrastructure. It was also during this period that auto components from India began to be exported.

7 billion in 2009. the auto components industry was worth over US$ 10 billion.8 billion. especially the ones having exposure to small cars producers. This has been propelled by strong domestic demand and an indigenization drive. clocking 34 per cent growth in the past three years. According to estimates by the Automotive Component Manufacturers Association (ACMA). "The industry has grown at a CAGR of 20% between 2000 and 2005 with total output in value terms touching US$ 10 billion in 2005.an integral part of the manufacturing business . according to a McKinsey-ACMA report on the Status of the Indian Auto Industry. The reduction in excise duty on small cars affected in the 2006 Budget had created positive market sentiment towards auto-ancillary units. riding on the outsourcing wave. domestic production increased by 17 per cent in 2005-06 to $10 billion.8 billion.The domestic auto component sector ." say data published by independent market observers too. Exports have grown at a much higher rate of 34% CAGR during the same period with output touching US$ 1. In 2005. India has joined the billionaire club on the export front. which is expected to nearly double every four years.is on the fast track. and reach US$ 40 billion by 2014. PERFORMANCE OF INDUSTRY The Indian automotive component industry has witnessed a CAGR of 20 per cent in the last five years (between 2000-2005). while exports jumped by 30 per cent to $1. The reduction in peak customs 9 . to 18.

Daimler Chrysler. The vast market for auto components. propelled by a surging domestic demand. and the diverse products and technology involved ensures a place and role for many. But that 20 per cent is big business. Volkswagon. According to Baba Kalyani.duty levels and the reduction in import duty on ferrous and non-ferrous metals should also provide some relief to the auto ancillary producers. and the boost in demand will see the emergence of several new players in the industry." he stated. There is lot of positive factors .7 million vehicles. The domestic industry is set to grow manifold over the next few years as estimates point out that the Indian auto components industry will invest about $1 billion towards ramping up capacities and acquiring newer technologies every year for the next 10 years. Fiat. The auto-component business that is favorable for India totals to some $380 billion. And that part will never be more than 20 per cent. The Indian auto industry produces an estimated 9. chairman. India enjoys a cost advantage with 10 . "Even if you get 10 per cent of that. which has pushed the growth rate of the auto industry to 20% in the last couple of years. HUGE BUSINESS POTENTIAL Exciting times lie ahead for the Indian automotive component industry. the auto-component business is huge and what players like us from the developing world are trying to do is to get a part of that business.India has emerged as an outsourcing hub for auto parts for international companies such as Ford. The industry is transforming. Bharat Forge Ltd. it is $38 billion! It is a hell of a lot more than what we are doing as a whole country. General Motors. and Toyota.

The industry displays tremendous potential in generating employment and boosting entrepreneurship in the country. The manufacturing costs in India are 25 to 30 percent lower than its western counterparts. The spate of new investment plans announced by global and domestic automobile manufacturers promises the emergence of India as a global hub for auto components. but from its full service supply capability. there is also the domestic car industry. Auto sales within India are expected to touch 10 million by 2009 and Indian auto majors have registered a growth of over 24 per cent in vehicle exports in September 2006 alone. driven by a rising consumer base and affordable loans. Major Players Asahi India Bharat Forge Exide Industries Mico Sundaram Clayton Sundaram Fasteners Sona Koyo Steering Jay Bharat Maruti Bharat Seats Amara Raja Batteries Subros Motherson Sumi Amtek Auto EL Forge TVS Autolec 11 . Besides the burgeoning demand from global auto majors.regard to castings and forgings. India's competitive advantage does not come from costs alone. which is growing at a spanking rate of over 16 per cent.

LTD. 12 .HISTORY AND DEVELOPMENT OF AMUL INDUSRIES PVT.

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Tecumseh Products are to name some of them. Amul Industries started its functions in 1988 as a small scale industry. Voltas. Industrial Chains. Ingersoll-Rand. Diesel Engines. L & T John Deere Ltd.. Tata Motors. Diesel Engines and Hydraulic Motors. Anti Friction Roller Bearings. Forgings. Pune & Hyderabd and is engaged in various engineering products like Connecting Rods. Mahindra & Mahindra Group. Escorts Tractors etc. to 12 Kgs. Simpson & Co. Eicher Tractors as well as Motors. Single & Double Cyl. Hero Motors. Within a short span of 15 years the company has been able to touch turn over of 40 corers with more than 400 people working with it. Our list of customers include almost all automobile giants in India including Cummins India Ltd. Swaraj Engines. New Holland Tractors Ltd.. Hermetically Sealed Compressors. Machine Refurbishing etc. today we are manufacturing 175 different types of Connecting Rods and are considered one of the biggest Connecting Rod manufacturers in India.. Kirlosker Oil Engines.3 Kg.. Material range includes Steel & Aluminium in both forging and casting condition. Also to include are the customers from other segments like Generators. Crank Shafts. Started in 1965 today the group is employing about 1200 people and 15 companies located in Rajkot. Air Compressors. Greaves Ltd. 14 .. in weight and from 90 mm to 310 mm in center distance..COMPANY OVERVIEW INTRODUCTION: - Amul Industries is a part of 89 Million Group known as Adico-Galaxy group of industries. We are also gearing up our selves for processing Connecting Rods of unconventional materials. Our Connecting Rods range Our Connecting Rods range from 0. Ashok Leyland Ltd. Same Engines.

We are also equipped with Connecting Rod Fracturing (for Casting Connecting Rods) and Crank Shaft Radius Rolling facility. ScanMax. Nut Runner. and John Deere-USA etc. and Calibration Masters for Dimensional Checking. Lombardini Italy. We enjoy the status of being the only supplier having these facilities in India. Spectro Scope for Chemical & Physical testing and Latest CMM (Three Coordinate Measuring Machine). This facility is studded by specially designed UTM. FMC-USA. We are also exporting our products to more than 20 countries in Europe and Middle East Countries for Heavy & Medium Commercial Vehicles as well as compressors. Our disciplined system of working. 15 . Electronic Torque Tester. Our manufacturing facilities are backed up with latest & precision measuring systems. Marposs Final Inspection Gauge (To check 19 parameters of Con Rod at a time). We are also equipped with Connecting Rod Fracturing (for Casting Connecting Rods) and Crank Shaft Radius Rolling facility.Our Products are also exported to overseas OEMs like Iveco-Italy. QS (1998) as well as TS 16949 accreditations. We enjoy the status of being the only supplier having these facilities in India. Micro Scope. state of the art technology and high degree of quality controls have fetched us ISO 9002 (1994).

Shivaji Nagar. Gujarat . Adarsh Colony. Pune .com PUNE OFFICE "Safalya" . 16 . Phone0281-2387898/2387037 Fax:0281-2787762 Email :info@amulind.1103/A-9.411 016.BASIC INFORMATION OF THE COMPANY NAME & ADDRESS OF THE UNIT: ADDRESS PLANT / HEAD OFFICE AMUL INDUSTRIES PVT. 2. Vidya Bhavan High School.INDIA.360 003. Rajkot . Opp.Aji Industrial Estate.LTD. Near Model Colony Telephone Exchange.

600 017. Banjara Hills. Road No.14. T . CHENNAI OFFICE A/2. Vikaspuri. New Delhi . . High School.110 018 HYDERABAD OFFICE 8-2-293/174/a-27 B.N. D Block.Nagar. . Ansari Flat No.L. Near N. Hyderabad . Road. 4. Chennai . Malad (West) Mumbai .MUMBAI OFFICE A/5.500 034 17 .V. Madley Road.400 064. Anat Nagar.Raddy Colony. Dedoot Apartments.8. S. DELHI OFFICE 64.

– 2005 NON ENGINEERING COMPANIES 1. Adico Forge Private Ltd. Galaxy Hotels 2. Adico Spares Pvt Ltd – 1965 3. Forge & Forge Pvt Ltd – 1965 4. Galaxy Chains Pvt Ltd. Amul Crank Shaft Pvt. Avirat Engineering Co. Modern Construction Co. Ltd. – 1982 7. Galaxy School Systems 3. 18 . 9. Amul Industries Pvt Ltd -1988 2. Advin Diesel Pvt Ltd – 1974 5.GROUP OF COMPANY: ENGINEERING COMPANIES 1. – 2005 10. Advance Diesel Engines Pvt Ltd – 1994 6. Galaxy Bearings Ltd – 1990 8.

4. Ltd. 5. 7. 6. 19 . Galaxy Galaxy Galaxy Galaxy Stone Mining Decore Pvt. Granites Leathers MISSION OF THE COMPANY: Our mission is to provide total customer satisfaction with best quality. VISION OF THE COMPANY: To be the “NUMBER ONE” connecting rod supplier in world in next five years.

YEAR OF ESTABLISHMENT: 1988 INVESTMENT: In 1988 Rs. PROMOTERS OF THE CO. Mr Girdharlal Veljibhai. HDFC Bank. Suresh Patel. Mr. Standerd Chartered Bank. AUDITORS: Atul bhai Kalariya & company. Corporation Bank. Chandubhai Patel. Mr. Nipul Santoki. 1 Lack.: Mr. BANKERS: State bank of Saurashtra. 20 .

LTD.360 003.com FORM OF THE ORGANIZATION: Private Limited Company The major functions are grouped under 5 departments. 2. SIZE OF THE ORGANIZATION: small Scale Unit 21 . Production Department 2. Gujarat . Finance Department 4. Human Resource Department 5. Quality control Department.INDIA.REGISTERD OFFICE & CORPORATE OFFICE: AMUL INDUSTRIES PVT.Aji Industrial Estate. Marketing Department 3. Rajkot . Phone0281-2387898/2387037 Fax:0281-2787762 Email :info@amulind. The departments are: 1.

Mr. Organization Chart: 22 . Nipul Santoki. Executive director. Suresh Patel. Mr. Mr Girdharlal Veljibhai. Director. Managing director.BOARD OF DIRECTORS: Chairman & managing director. Chandubhai Patel. Mr.

RECOGNITION & ACHIEVEMENTS 23 .AWARDS.

Best Supplier award by Tekum sekh 5. PRODUCTION DEPARTMENT 24 . Best Supplier award by Mahindra & Mahindra 4.1 Best Supplier award by Cummins 2. Supplier performance award 2006-07. Best Supplier award by LG 3.

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5 Selection of Location 1.6 Material handling system 1.4 Plant Layout 1.PRODUCTION DEPARTMENT 1.2 Production Process 1.3 Types of plant layout 1.1 Introduction 1.7 Production planning & control 26 .

1 Introduction:- Production is the basic activity of all the industrial units. We can say that Production activity is nothing but the step conversion of one form of material into another either chemically or mechanically. Semi automatic machinery ensures the steady and smooth operation of unit. According to E Buffa. All other activities revolve around this activity. 27 .1. The production activity is process by which the goods are produced or utility enhanced. “Production is the process by which goods or services are created. where process operating persons closely monitor the whole plant operation through visual.” The whole process is semi automatic. The end product of the production activity is the creation of goods or services for the satisfaction of human wants.

face groove P.E. Rod notch milling 28 .E. B. face & chamfer N. There are different products like: a) Connecting road b) Cam shaft PROCESS:A. B. Cap spot face F. Bush boring S. Rod opening T. Final parting face grinding G. pre boring (Ruf boring) H. Grinding B. final boring M. Boring D. Tapping K. Bolt hole pre drilling I.E. Oil hole drilling O.E.E. B. Bolt hole final drilling J. Oil hole top face L.2 PRODUCTION PROCESS: Different process can be done according to different product at Amul Industries Pvt. Rib milling E. 1st & 2nd face R. Ltd.1. S. Connecting rod A. B. heating Q. Drilling C.

U. Weight greding 29 .

CAM SHAFT A. Hardness testing 30 . Final Greding M. Profile turning D. 5mm cotation H. Notching E. Ruf greding G.1 B.1 F. Drilling 8. M greding L. Drilling 7. Drilling 6. Punching I. Straitening K.2. Hardening J.1 C.

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Product layout:In this type of layout the machines are arranged in sequence as required by the particular product. In such production the operation differs from product to product. This is also known as “The Product Line Layout”.3 LAYOUT:1. the process rather than the product has the dominating role. In this type of layout. Process layout:In this type of layout all machines performing similar type of operation are grouped at one location. This type of process is more suitable for job order type of production. in the manufacture required by its manufacture. Job shop layout:In this type of layout there is processing of job production and hence the system is very flexible. 32 . 3. Product is more suitable for continuous flow production with few items of production. 2. the product is dominating over the process. In this layout one product goes through all the machines lined up. In this layout several products may share a machine to make its full use. In this type of layout. So a proper combination is made in order to best suit the production process. The layout depends upon the analysis of the universe of orders received and is a very complex affair.1. A proper compromise reaping the benefits of both is made possible in this type of layout. 4. Mixed or combined layout:Generally pure process or pure product is not found in practice.

In producing automobile parts the raw materials goes through different process step by step in order to get converted into final product. Connecting rod.4 PLANT LAYOUT OF AMUL Ind. is engaged in producing automobile parts which is used in automobile industries The Production process of AMUL Ind.e.1. which facilitates the production of Automobile parts in a systematic way. As Amul practices continuous flow of production and the process is arranged based on the next process. involves producing of many parts i.:Product layout: AMUL Ind. 33 . cam shaft etc. so it is organized in a product layout form.

34 .5 Selection of Location:Location of the plant is important for any industry because it is helpful to reduce cost. Transportation: It is a very important thing to be kept in mind while deciding the location. Power: We know that power is basic element for running smooth activity for any industry. 3. Labor: On growing modernization of plants. So here maximum utilization of resource is possible. If industry located in well facilitate area than you can get all facility immediately. Rajkot is such a place where you can get all facility like transportation by road. The cheap availability of labour from the near by areas has proved to be great help for the company. the requirement for skilled man power has increased then that of unskilled man power. railway and airport and also get technical and non-technical manpower easily. Rakot is centre area which is connected through National highway 8-B and 8-A and Airport facility also available so it is helpful to reduces cost of transportation for the company. Factors Affecting Layout Of Company: Location factors are very much important in establishing a production plant. It cost widely affects the overall cost.1. So generally people choose such a place where power is easily available 2. 1.

3. 35 .1. These raw materials are then issued to purchase Department and are moved inside the plant from one process to another till they are converted into finished goods. They are moved either manually or mechanically. FACTORS AFFECTING MATERIAL HANDLING 1.6 MATERIAL HANDLING SYSTEM In a manufacturing firm. 2. the raw materials are obtained from the suppliers and are stored in the storeroom. Thus material handling involves movements of materials from one place to another for the purpose of processing. The job tackled by material handling equipment like lift and trolley etc. Types of the product Plant layout Material handling equipment etc.

Production Planning and control are 2 important aspect of production.7 Production planning & control. production planning is jointly done by Production and marketing department on the basis of order. Where unit is constantly evaluated and compare with the standards set in advance. Production department plans production and its operations. 36 . Production control cannot be imaged without production planning. department and strict control on the production activity and continuously evaluated the performance. And on the basic of production planning. Production planning is the function of management to look ahead. At AMUL Ind. Production planning is prerequisite of production control.1. anticipate difficulties and take steps to remove obstacles before they are materialized.

QUALITY CONTROL DEPARTMENT 37 .

For this quality company use the quality control department to check the quality of the product. The consumer of the final product of company wants certain quality of products. If consumer is not satisfy with the product of the company then it may happens that company loose the customers. So company has produced qualified products." Quality is an important dimension of Production & Operation Department. 38 . It is not enough for company to produce the goods or services. That’s why quality control department is most important. But company has produce product with good quality. Because people wants qualified products."Quality is an asset which may be offered to the potential customer of a product or a service.

39 . In this department quality of the entire product is checked. If there is something defect then it sends to back for to improve the product.  Amul has also quality control department.QUALITY POLICY Amul Industries is committed for achieving “Total Customer Satisfaction” through 1. Improving manufacturing facilities. This commitment is met by nurturing quality culture & team spirit. 2. Consistently supplying quality products to our valued customer in time. Continuously improve on quality standards by implementing process controls & prevention techniques 3.

3.Major function undertaken by AMUL: 1. 2. RECEIVING INSPECTION: In this first step all specification according to product drawing check like dimension check. FINAL INSPECTION: 40 . INPROCESS INSPECTION REPORT: In this process they checking randomly any piece at every hour to know product is produced at uniformly.

width. 41 .In this step finally inspection done visually by checking physical parameter like product band. Control process for minor variation 2. central dimension etc. 4. LAYOUT INSPECTION REPORT In this step randomly three to five pieces selected for various parameter check when it goes from forging to dispatch. 5. Control process capability for major variation. STUDY PROCESS CONTROL There are mainly two processes 1.

Marketing Department 42 .

This companies need to adjust themselves to changing situation by upgrading the technology. widening product range. and distribution of ideas. to achieve goal for selling in particular segment.  Essentials of automobile parts Marketing: o Focus on brand name o Effective public relations o Price differentiation o Strong distribution network 43 . As additional companies are coming up in the other region. to establish good image of brand of product to customer. there is stiff competition. promotion. developing new market segments.2.  Need for Marketing of automobile parts: Some of the factors like competition create awareness of product to customer. pricing.1 Introduction:  Definition: Marketing is the process of planning and executing the conception. market penetration. etc are driving force behind marketing task. channel of distributions etc. improving existing. goods and services to create exchanges (with customers) that satisfy individual and organizational objectives.

2 Organization chart of Marketing Department: M.2.D. MARKETING DEPARTMENT DEVELOPMENT MARKETING REGULAR MARKETING 44 .

Earth mover 6. 1. can not serve all the customers in market. Sport utility vehicle 3. Car segment 4. Heavy motor vehicle 2. Diesel engine 5. adopts market segmentation on following basis. AMUL Ind.3 Market Segmentation: A company.2. Tractor segment 45 . To maximum utilization of available market & resources to the sales the company adopts the market segmentation policy. which decides to operate from some part of market normally.

46 .4 Price Mix: Price is the only element of marketing mix that produces revenue. Nut bush charges 4. Other cost. AMUL Ind. It also says as cost plus & target pricing. Packing cost 5. So any mistake in deciding price will affect too much to unit. Follows pricing policy as mention below:Cost Oriented Pricing: It is the simplest method for price. Transportation cost 6. Raw material 2. keeps the following point in mind while deciding on cost base. AMUL Ind. So we can say that price is one of the most important element determining company’s market share and profitability. it is the most crucial decision. Machining cost 3. 1. When it comes to setting up the price.2. Price decides the market share and profitability.

AMUL Ind. Here AMUL Ind follow business To business marketing means they use zero level system. is mainly concern in manufacturing of automobile parts so there is no requirement of door-to-door marketing.” When producer relinquishes some control over how and to when products are sold to marketing intermediaries.2.5 Channel Management According to Bucklin. 47 . “A channel of distribution shall be considered to comprise a set of institution which performs all of the activities utilized to move a product and its title from production to consumption. it is said to be the channel of distribution.

To stimulate the buyer for purchasing the product. newspaper. etc. outdoor display. Advertising: In the present period of business management. There are various advertising media like magazine. To earn profitability in business it is very necessary to advertise our product of doing its publicity. whether it is to build brand preference for all over the world to motivate developing nation. Objectives to be achieved by the AMUL Ind. make sales promotion. 48 . advertising is the most important media to stay in the market. B. aerators. radio. catalogs. Sales Promotion: Definition: To communicate with individuals. competitive condition of market. 2. With the help of various auto fair AMUL Ind. television. Advertising is the cost effective way to disseminate messages.2. through sales promotion are: 1. direct mail. promotion is combination of two strategies i. adopts ACMA as their advertising tool.6 Promotion Mix: AMUL Ind.e. groups or organizations to directly or indirectly facilitate exchanges by informing and persuading one or more audiences to accept an organization's products. A. cards. Advertising is primarily a private enterprise marketing tool. To consider the type of market. it is used in all countries of world. Through advertisement one can differentiate its product from the product of the other company. AMUL Ind.

4. Cummins India Ltd. Swaraj Enginer Ltd. 8. 10. Tata Motors Ltd. INGERSOLL-RAND (India) Ltd. Zaheerabad) 3. Greaves Cotton Ltd. Same Deutz . Simpson & Co.Fahr India (P) Ltd. Eicher Group (Pithampur. 12. 6. Ltd. 13. 9. Mahindra & Mahindra Group (Mumbai. Hero Motors Ltd. Igatpuri. Kirloskar Oil Engines Ltd. Alwar) 5.LIST OF CUSTOMER 1. Ltd. 2. Lombardini India Pvt. 49 . Tecumseh Products (India) Ltd. (Tractor Unit) 7. Nagpur. 11.

Human Resource Management 50 .

51 . 3. and controlling are included and also operating function under which procurement development. under which planning.INTRODUCTION:- Manpower is one of the important aspects to be taken into consideration. Effective utilization of personnel in the achievement of organization goals. 2. To select the personnel on need.“It is basically concerned with two important function is managerial function. The main objectives of personnel department are: 1. organizing. Human resource management deals with the human aspect of the organization. To maintain harmonious relations between workman & management. directing. To safeguard the interest of labor and management by securing the highest level of mutual understanding and goodwill among those sections in the company which participate in the manufacturing process? 4. Thus in short. it is concerned with the obtaining and maintaining of satisfactory and satisfied work costs. compensation integration and separation are included. If a company has highly advance technology for the production unit but does not have well skilled labor to operate the machineries then all the technology is a waste. Personnel management is management of man power is being defined by various experts as follows: By Adovin Flippo:. Even after having highly advanced technology the unit cannot excel in its production objectives. 5. To sustain & improve work condition so that the employee may sick to their jobs for longer period.

the importance of personnel has been identified and realized and therefore maximum efforts are being done to develop it and thus Amul has maintained a separate department having separate nice president. FUNCTIONAL OBJECTIVE: It refers to maintain the department contribution at a level appropriate to the organization’s needs. Resource are wasted when HRM if it her more or less sophisticated to suit the organization’s demand. PERSONAL OBJECTIVE: It refers to assist the employees in achieving their personal goals.Now a day in India. Personal objective if the employees must be met if worker are to be maintained. HRM is not an end in itself. retained and motivated. ORGANIZATIONAL OBJETIVE: This refers to recognize the role of HRM in bringing about organizational effectiveness. I is only a means to assist the origination with its primary objectives. at least in so far as these goals the individual’s contribution to the organization. 52 . OBJECTIVE OF HRM: SOCIATEL OBJECTIVE: This refers to be ethically and socially responsible to the needs and challenges of the society while minimizing the negative impact of such demands upon the organization.

o To conduct interview for selection of efficient person. Personnel Department is under direct control of senior general Manager who is responsible to managing director in AMUL Ind. consists of line and staff type of organization. Here the main functions followed by personnel department are: o To identify the actual requirement of personnel and than fulfilling it with appropriate and efficient personnel. 53 . o To deal with the matter relating to transfer and promotions. o Wage & Salary administration. o Job description o To maintain the personnel record.ORGANIZATION OF PERSONNEL DEPARTMENT AMUL Ind. o To lay down the recruitment procedure.

SELECTION.RECRUITMENT. AND PLACEMENT:- Recruitment can be actually defined as “the generation of the application for specific post” thus it is a searching of prospective candidates. the department heads fills up a requisition form in which all age. while selecting the means of communication for recruitment emphasizes is given on targeting proper personnel. the skilled employees are not available vary easily. When vacancy is found in any of the organization department. one can not find a right person at right time. at right place. 54 . In India. etc. and experience is being sent to the personnel department and after it is being approved is being advertised on the notice board of unit or in newspaper. magazines. every qualification. a process of getting potential employees who are willing to apply for the job in the company. duty.

55 . follows step by step process for recruitment of manpower. In AMUL Ind. Many times they recruit manpower from database. Skilled persons are also obtained through some technical institute like ITI etc. First candidate fill up man power acquisition form than personnel manager and general manager check criteria like qualification. The requisition of skilled and unskilled personnel is being fulfilled through advertisement in newspaper or sometimes by personnel recommendation by the present employee for his relation or by supervisors. experience etc.1. AMUL Ind. and if they satisfy than they call for personnel interview. Recruitment process. same recruitment process follows for helper through general manager.

The company has adopted two methods of selecting the essential workers in the organization. This is a kind of preliminary interviews.2. One of them is to call the candidates for personnel interview and to know his basic knowledge. attitudes regarding the job and some other basic testing. for selection of technical staff first they take their practical test and if they satisfied than company take their feedback and for non-technical staff they check computer literacy and English fluency. In AMUL Ind. 56 . Selection Procedure for workers.

containing the information as above. He is also being given the general idea a responded to his duties. which is generally for one year. he has to go for the probation (induction) perform. rules. responsibilities. its structure. the induction period is very necessary. The employee has to fill various forms regarding PE.INDUCTION: Once the candidate is selected. regulation. The reason behind induction program is to make the employee well set with new environment speedily. behavior. etc and is provided with “Induction kit”. for which he has been selected. 57 . work. EST. To facilitate the selected candidate to have introduction with the organization.

skill. o It helps in yielding higher productivity with the use of efficiency. prevention from accident to make healthy environment.: o It helps in personnel development. efficient manpower planning to raise in stopped of work. The training needs one determined by the departmental needs and the concerned officers. 58 . The seminar and training program one also held within the campus premises. who require much of theoretical knowledge and for a long duration of period. ability of a person to perform a specific job can increase”. o It also brings acceptability of changes. AMUL Ind. Development is a related process but can be rather be more important for managerial level employees. has given specific importance to training and development program because.TRAINING AND DEVELOPMENT Training means “Any process by which the aptitude.

there is no policy of following written job description as they don’t feel it important. it refers to the data obtained through of the analysis process. d) Relation with the job. This information includes following points. e) Tools and equipments involves in doing job.JOB DESCRIPTION: Job Description is a written documentary outline of the principle facts about individual jobs. a) Working condition b) nature of the job c) About his/her duties and responsibilities. describes job as means of giving job related information and guidance to candidate for which he/she is selected. Personnel department of AMUL Ind. g) About sub-ordinate to whom he/she will have to control and guide. In short. 59 . In AMUL Ind. When any candidate is selected at that time information is given to him about his/her job. Generally it is being performed orally. This is done to avoided confusion in duties and responsibilities of different employees. f) About superior from whom he/she will have to control and guide.

Thus it means to increase in authority. responsibility. So here the promoting system is subjective not the objective. etc. there is one specific criteria and system and program to transfer the person from one job to another higher job. Their skills and performance within the organization in job. In normal courses employees are promoted on the basis of seniority and work performance for helper and behavior. status. in AMUL Ind. education and work experience for official staff. salary. 60 .PROMOTION AND TRANSFER POLICY Promotion means to uplift of an employee within the organization and advance him in the direction of top level. This policy increases the interest and efficiency of the person who is working in the organization.

increment. by this way the organization can make the best use of its manpower. training. etc. b) Plan for training & development need.PERFORMANCE APPRAISAL SYSTEM Performance Appraisal is a continuous process where by each employees’ performance is to be assessed and systematically reviewed by his superiors and guidance given to help the employee to overcome the short coming and increase his effectiveness in the job. promotion. e) To serve as a controlling/measure. transfer. Purpose of Performance Appraisal at AMUL Ind.: a) Evaluation of Performance of work assigned. 61 . c) Determined suitability for promotion d) Recommendation for salary review. The system is quite equal in various administrative decisions as selection.

There wage and salary is the compensation paid to the employees in monitory terms on a record of their work. AMUL Ind. also provides facility of Provident fund to their Employee. Any employee who has 120 days of continues job. wages & salaries are paid on 7th day of every month. In addition to wage and salary. 62 . other payment as house allowance is also paid. a financial scrutiny on the part of employees. In AMUL Ind. This unit is making cash payment. after retirement from job. It has initial relation with job evaluation department.WAGES AND SALARY ADMINISTRATION For a Personnel Department wage administration is the most important decision for the personnel manager. The amount of salary paid depends on the post of the employees. A separate salary call has been maintained to the salary records. Provident Fund Scheme Provident fund is a statutory obligation of cost of the employees by the act. As par company act 1956. It is applicable to the unit which engaged more than 50 employers within its organization.

” According to Amul it is our best policy that in our organization grievances are never happened. work assignment. overtime. If this type of situation occur in organization we can solved it within our four walls. payment. promotion. leave. 63 .GRIEVANCE HANDLING PROCEDURES: “Complains affecting one or more individual workers in respect of their wages. working condition and interpretation of service agreement with constitute grievance.

TRADE UNION Trade union is a completely voluntary association. 64 . There is no trade union available in AMUL Ind. It tries to improve relationship between employees and management.

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) birthday etc. qualification and experience Background and other personal information like 65 . The data regarding the details of each employee is fed into the computer and stored.PERSONNEL RECORD: In Amul personnel department maintains personal file of each employees of the company. but in case it gets deleted then Amul also maintains hard copy. the file is being kept under the control of personnel department in the following sequence. In this file necessary details regarding the person are kept at Amul has introduces a modern method of keeping records of personnel. Name of Employee Employee Number Designation Department Permanent and Local address Application form Interview letter Appointment letter Medical fitness certificate.

PERSONNEL POLICY: a) To select proper personnel on need bases and its effectiveness utilization in achieving goals.Purpose of maintaining personnel records: a) To supply the information required by government agencies. d) To maintain harmonious relation between workman and management e) To enable employees to enjoy a life through active participation in the recreation activities. c) To enable personnel manager to propose training and development programmers. b) To safeguard the interest of labor and management by searching the highest level of mutual understanding c) To advice and assist for high moral and better human values by sustaining and improving the conditions which has been established so that employees may stick their jobs a longer period. b) To conduct research in the field of industrial relation. other agencies and local bodies to enrich companies vision and mission. f) To fulfill legal compliance in time and maintain good relation with government authorities. d) To review and revise scale. 66 .

In case of accident. Possesses good industrial relations. who means the extent of relation between administers and employees of the unit. while 67 . has Tie up with one private hospital and when any employee is sick and injured. AMUL Ind. wishes to inside employee to his organization and also they provide many benefits to the employees which are as under. Medical Facilities: AMUL Ind. incurred for the treatment of workers. The management of AMUL Ind. the company pays the full expenditure. The accident was occurred within the organization. The unit provides the beneficial activities to each of the employees and his family member as mentioned. All the employees are quite satisfied with wage rate and other facilities offered by the organization.EMPLOYEE WELFARE: The profitability and productivity of any organization depends upon the industrial relation. goes to hospital and gets the necessary treatment. A.

He can take leave for 20 days and time during a year. c. Festival Leave: All the employees and staff get festival leave. C. Other Facility: a. c. d. D. Casual Leave: Amul procure 2 days as a casual leave. b. canteens Facility: a.Education facility to employee family. Tour. e. Sick Leave: The unit grants sick leave to the employees. B. Three time tea provided for all the worker per day. Festival celebration. Yoga classes 68 . Entertainment Facility. Leave facility: a.performing duty then the workers will get salary too for the days of rest advised by the doctors. b. . Canteens facility is provided to office staff people. b.

FINANCE DEPARTMENT 69 .

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D.1 Introduction: It is said. A potential and capable management can run the department very effectively. 71 . In AMUL the finance department is handling by two managers. “Finance is the arms and legs of business “.4. One is account manager and other is finance manager under control of M. In finance department each and every decision should be taken in such way that every pie of money should be utilized in adequate manner.

4. Staff 72 .2 Organization of Finance & Account Department: Finance department Account manag Assi. Staff Finance manager Assi.

2. Two are as below: 73 . has the financial year from April to March and on that basis at the year. It consists of budgetary control. are: 1. In the planning of finance not only planning is done for spending the money but also planning is done for finding and evaluating source of finance. Finance Department of AMUL Ind. profitability planning. Sources of funds in AMUL Ind. sales & cash budgeting. INTERNAL SOURCE: Share capital Reserves & surplus. As per Government rules and regulations AMUL Ind. For best utilization of funds. EXTERNAL SOURCE: Secured Loans Unsecured Loans It is tried to collect the fund at very cheap rates & utilized in the best possible manner. Balance sheet is prepared and net profit is find out.4.3 Financial Planning: Financial Planning means planning of finance. explains financial planning as systematic arrangement of financial resources of the company in order to reach the current & future finance requirement. AMUL prepares two types of plan.

AMUL does it annual planning and quarterly basis they compare actual result with standard which predetermined and than find deviation and try to solve for it by many ways like. Control on rejection. and five yearly. To improve the market condition. Amul does its financial planning on yearly. so it is known as shortterm planning. Amul’s financial year is April to march so. SHORT TERM PLANNING Financial planning is done for less than once in a year. 74 .A. two yearly. LONG TERM PLANNING Planning done for more than one year then it is called long term planning. 2. Increase production capacity to increase sales. Amul generally does its long term planning in the month of April. 1. Control of idle machine. 3. 4. B.

31-03-2006 30.224. which compromises a firm’s finance of its assets. is as: Particulars (A) Share capital Rs.283 122.4 Capital Structure: The capital structure is made of debt and equity securities. Capital Structure of AMUL Ind.385.4.000.410 154. It is permanent financing of firm. represented by long term’s debt plus preferred stock plus net worth.000 (B) Reserve & Surplus: (C) Loans & Funds Secured loan Unsecured Loan TOTAL 49.282.067 355. 2005 49767480 2006 81705290 Particulars PBDIT 75 .891.760 Last two years Performance: in Rs.

865 30.919.945 367.410 154.524.757 4.193.026.190.283 122.811.778.Profit before Tax Profit after Tax 13161340 8586767 34199828 22023680 AMUL INDUSTRIES PVT.032.085.680.710. Loans & Advances Inventories Sundry Debtors Cash & Bank balance Loan & advances Less: Current liabilities & Provisions Current liabilities Provisions 154.587 246.674 12.684 101.632 127.714 178. BALANCE SHEET PARTICULARS 1] SOURCE OF FUNDS a) Shareholder’s funds Share capital Reserve funds b) Loaned funds Secured Loans Unsecured Loans c) Deferred taxes 2] APLICATION OF FUNDS d) Fixed assets e) Current assets.426 17.067 11.856 24.153.000 76 .241.154 165.723 408.200.000.000.000.LTD.282.996 5.376 122.341.955.101 121.748.000 27.018 295.604 4.224.501 MARCH’ 06 MARCH’05 120.702.721 285.730 93.483.705 30.344.087.000 49.385.517.647 37.

604 367.161.997.033.868 46.781.660.153.110 213.622.701.505.702.752.123 47.854 98. & selling expenses PBDIT Less: Interest Depreciation Miscellaneous PBT Less: Provision for tax Current tax Deferred tax FBT Short taxation provision NET PROFIT AFTER TAX 878.534 453.586.767 MARCH ’06 MARCH ‘05 77 .032.785 2.758 555.199.271.407.13 558.339 19.664.582.783 711.450.290 28.828 11.705.462 34.045.285 780.957 6.707.087 14.900.261.705 132.353.776) 490.474.636 285.996 163.240 22.413 8.00 1.234.842.684 109.000 (273.775 640.096 36.986 178.054 49.247.480 21.501 Amul Industries Pvt. Ltd.140 13.612 1.904. Profit & loss Account as on march 2005-06 PARTICULAR [1] INCOME Gross Sales Less: Excise duty Net Sales OTHER INCOME STOCK VARIANCE [2] EXPENDITURE: Material consumed & Direct taxes Personnel expenses Adm.680 633.543 79.Net Working Capital 195.091 32.029 793.340 2.886 22.850.767.023.715.488.569 1.138.977.444.834 25.605.177 11.713.811.485 81.077 508.

730.754.473177 Gross profit ratio of 2004-05 gross profit Net sales 49767480 555353785 8.9614011 A high ratio is an indication of good management. Was the sufficient gross profit ratio 78 .544 43.544 RATIO ANALYSIS: [1] GROSS PROFIT RATIO: The ratio establish relationship of gross profit with sales to measures the operating efficiency to the firm and to reflect its pricing policy The gross profit by sales. Amul industries pvt.224 13.143. Ltd.777 21. A relatively low ratio is Indication of lower profitability. Gross profit ratio of 2005-06 gross profit Net sales 81705290 780138569 10.Balance brought forward from previous year TOTAL 21.730.

In Amul Idustries Pvt.5461796 The net profit margin indicates the management abilities to insufficient Profit to sales. Ltd. A high ratio ensures adequate return to owner and also enables firms To with stand adverse economic condition. It indicates the proportion of the net profit after deducting all the expenses including tax Net profit Ratio of 2005-06 Net profit Net Sales 22023680 780138569 =2.[2] NET PROFIT RATIO: The Ratio measures the relationship between net profit and net sales of the firms obtained through divided by the net profit by net sales. So we can say that there highly direct expenses due to this expenses their net profit ratio was Very low.8230472 Net profit Ratio of 2004-56 Net profit Net Sales 8586767 555353785 =1. They have low ratio of the net profit. 79 .

The debtor turnover canbe calculated by deviding total sales by the year and balances of debtors.83383 days =93.909849 days [4] CURRENT 80 .[3] DEBTOR TURN OVER RATIO The debtor turnover ratio indicates the number of times or the leverage that debtors turnover ech year. Debtor turnover ratio of 2005-06 Debtor turnover ratio of 2004-05 Sundry Debtor Total sales X 360 Sundry Debtor Total sales X 360 246085757 878582854 X 360 165344604 633842543 X 360 =100.

2379529 The current asset ratio measures the short term solvency of the firm. If currentratio is lower than short term solvency of the firm is not in a position to meet its current liablity in time.0884883 295483632 132032996 2.RATIO The current ratio express relationship between current assets and current liabilities and can be calculated y dividing current assets by current liabilities Current Ratio of 05-06 Current assets Current liabilities Current Ratio of 04-05 Current assets Current liabilities 408748714 195715110 2. In a sound business the current ratio is considered ideal as a one. Ltd. The current ratio is higher thanthe standard ratio 81 . In Amul Industries Pvt.

4.6 Management of Fixed Assets:
Fixed assets are the tangible assets, which cannot be turned into cash on short period of time. Management of fixed assets is the most important decision in the field of finance for any organization and especially in cement industry, which has its most of investment in fixed assets.

Company having the following investment in fixed assets: Particulars Building Furniture & fixture Land Plant & machinery Vehicle Rs.(In Crores) 39151122.17 12731217.53 2943086.10 257446920.06 5209067.77

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 Capitalization:
Capitalization refers to the decision regarding the total requirements of the long term funds. Any imbalance between realization value of assets and total capitalization i.e. long term funds results is over or under capitalization.

 Over Capitalization:
Over capitalization means real value of shares is higher than book value. It occurs when the realizable assets are less than the long term funds of the company.

 Under Capitalization:
Under capitalization occurs when the real value of the shares is less than the book value. It occurs when realizable values of assets are more than the long term fund of the company. AMUL is under capitalization this reflect the progressive and healthy stock of the company.

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1.8 Working Capital Management:
 Management of Receivables: In the present period of the competitive market to increase sales to meet competition it has become necessary to provide credit facility but it is also essential to receive the bills as speedily as possible. Generally AMUL Ind. allows credit for 75 to 120 days. Management of Inventories: Primarily executives in production, purchasing and marketing department take decisions relating to inventories. Usually purchasing shapes Raw material policies & production department, work in progress is influenced by decision of production department and the production & marketing department executives shape finished goods policies. The finance manager has the responsibility to ensure that inventories are properly monitored and controlled.

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FINDINGS

My visit to AMUL Industries Pvt. Ltd. has become the one memorable thing and as well as useful also .I never forget it and I really feels that AMUL Industries Pvt. Ltd. is the NO.-1 Connecting rod manufacturing company in India. This training helps me a lot to get the practical knowledge of the organization. Every people peon to manager helps me to know me to know the company and also help in prepare the project. It was a nice experience and I never forgot it. From the study of the company AMUL Industries Pvt. Ltd. we can say that the future of the company is bright. It is not new comer in the market at present. That why market share of company is very good comparing to the other auto ancillary manufacturer. If they are providing good & more facilities to the consumers continuously then the consumer can be easily attracted & they are able to get additional market share of auto ancillary industry. So here we can say that Amul industries Pvt. Ltd. Is an enterprise which expanded very well. If we show the success story of Amul than we can know the what they achieved and how they achieved. Their success story describes their effort. Amul started their business in 1988 with only Rs.1 lack as a partnership and today it is working as a Private limited company as a market leader of connecting rod manufacturing company.

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N. Internet: www.google. Memoria o Marketing Management: By Phillip kotler B.com 86 .amulind.mahalo.chacha. 1. Charry o Finance Management: By Khan and Jain o Human Resource Management: By C. 2.B. Reference Books: o Production Operation Management: By S. 4.BIBLIOGRAPHY A. 3.com www.com www.com www.

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