organisation study on shree cement, beawar

cc

ACKNOWLEDGEMENT

There are number of people to acknowledge and thank for their contributions to this

Project. Here is a consideration of all those esteemed people who provided not only their

valuable time but also their views and transferred their knowledge and experiences, which

further enhanced the project and made it more than what it would have been.

I offer my special thanks to SHREE CEMENT LIMITED, Mr Gopal Tripathi , Mr

Nemichand Jain (Financial Officer), Mr S R Singhi(HR) and for all his educative guidance

and more support that they have provided during the preparation of the project. I would also

like to thank my Mentor Prof Lakshman who provided his valuable guidance, which has

helped me in enhancing the quality of the project report and also to deans for arranging

organization study for all students.

Also, please accept sincere apologies along with a thank you who have contributed

but their names have not been included.

Thank You…

Yours faithfully,

Nitin Moyal

MATS INSTITUTE OF MANAGMENT

cc

DECLARATION

I hereby declare that this project has been prepared by me during the period 30th Oct to 8th Nov under the guidance of Prof. Lakshman MATS School of Business & IT, Bangalore I further declare that this project report is prepared from the information collected from the company, the sources available from the Company and the same is purely for academic purpose. This project has not formed the basis for the award of any other degree/diploma of any University/Institution.

I also hereby declare that all the information given in the report is true to my

knowledge.

Reg no.

Place: Bangalore

Date:

Nitin Moyal


cc

PARTICULARS Page No.

Chapter 1 Industry Profile Introduction Global Scenario Indian Scenario Key players in the Industry PEST Analysis

Porter’s 5 forces Analysis

Chapter 2 Organization Profile Introduction Vision and Mission Objectives and Goals SWOT Analysis Products and Markets Chapter 3 ORGANIZATION STRUCTURE Introduction Organization Structure Review of Organization Structure Chapter 4 Business Level Functions Marketing Function Finance Function Human Resource Function

Operation & Quality Function

Chapter 5 Conclusion & Observations Findings Bibliography


cc

SCOPE OF THE STUDY:

Organizational Functioning is an important factor for any Organization to achieve the desired

goals and Objectives. This requires Co-ordination at all levels to smooth functioning. This

study is to know the overall efficiency and performance of TEXTILE Industries and a general

study on Shree Cement Ltd at Beawar, Rajasthan.

As a part of two year MBA program at the end of 1st trimester, we had to carry

on a project in an organization in order to understand the organization structure and their

functions. This was a great opportunity to get the first hand information and understand the

functioning of the various departments

1.2 OBJECTIVES OF THE STUDY:

The following are the objectives of the study

To know the Global and Indian Scenario

To know the Key Players in the Industry

To know the Business Level Functions & Process of the Organization

To know the Company Profile

To do SWOT Analysis, PEST Analysis etc. of the Company

To learn about the Organizational Culture, Values, Benefits in a Practical way

To get an exposure to the different functions of the Organization and understand

how they are performed and coordinated.

To relate various concepts studied in the first term to a real Organizational

environment

To learn about convincing people and how to extract what we want

To make contacts with the industrial people and maintain it.


cc

1.3 LIMITATIONS OF THE STUDY:

The following are the limitations of the study,

As we had a limitation of time, the detailed report about the operations of the

organization was not possible.

The information given by the persons may not be complete because of their busy

work schedules

The report suffers from the limitation of meeting only the departmental heads

because of lack of permission to interact with other people.

1.4 METHODOLOGY USED FOR

ORGANIZATION STUDY:

PRIMARY:

The following are the primary datas collected for the study,

Personal Interviews - There was interview sessions with each of the functional heads

and that was followed as questions which were asked depending upon situations.

Observations - There was a keen sense of observation followed during the study

period to follow the various functions of the company and how they are integrated with

each other.

SECONDARY:

The following are the secondary data’s collected for the study,

Internal Data - These are all the companies’ own data which they provided like Organization

structures, Balance sheet, Annual reports etc.


cc

External Data- These are all the data relating to the company or Organization derived from

external sources such as internet, and other types of media services that give a wide picture

of the Organization with respect to the external work.

Global Scenario Indian Scenario Past & Current Situtation Few Influencing Factors Key Player PEST Ayalysis Porters five Forces


cc

Introduction

Cement is a key infrastructure industry. It has been decontrolled from price and

distribution on 1st March, 1989 and delicensed on 25th July, 1991. However, the performance

of the industry and prices of cement are monitored regularly. The constraints faced by the

industry are reviewed in the Infrastructure Coordination Committee meetings held in the

Cabinet Secretariat under the Chairmanship of Secretary (Coordination). Its performance is

also reviewed by the Cabinet Committee on Infrastructure.

Global bigwigs in cement

La Farge, France

Holcim, Switzerland

Cemex, Mexico

Italcementi, Italy

Heidelberg Cement, Germany

Capacity and Production


cc

The cement industry comprises of 125 large cement plants with an installed capacity

of 148.28 million tonnes and more than 300 mini cement plants with an estimated capacity of

11.10 million tonnes per annum.

Recommendations on Cement Industry

For the development of the cement industry ‘Working Group on Cement Industry’ was

constituted by the Planning Commission for the formulation of X Five Year Plan. The

Working Group has projected a growth rate of 10% for the cement industry during the plan

period and has projected creation of additional capacity of 40-62 million tonnes mainly

through expansion of existing plants.

Technological change

Cement industry has made tremendous strides in technological upgradation and

assimilation of latest technology. At present ninety three per cent of the total capacity in the

industry is based on modern and environment-friendly dry process technology and only seven

per cent of the capacity is based on old wet and semi-dry process technology. There is

tremendous scope for waste heat recovery in cement plants and thereby reduction in emission

level. One project for co-generation of power utilizing waste heat in an Indian cement plant

is being implemented with Japanese assistance under Green Aid Plan. The induction of

advanced technology has helped the industry immensely to conserve energy and fuel and to

save materials substantially.


cc

The Cement Corporation of India, which is a Central Public Sector Undertaking, has

10 units. There are 10 large cement plants owned by various State Governments. The total

installed capacity in the country as a whole is 159.38 million tonnes. Actual cement

production in 2002-03 was 116.35 million tonnes as against a production of 106.90 million

tonnes in 2001-02, registering a growth rate of 8.84%.

Keeping in view the trend of growth of the industry in previous years, a production target of

126 million tonnes has been fixed for the year 2003-04. During the period April-June 2003,

a production (provisional) was 31.30 million tonnes. The industry has achieved a growth rate

of 4.86 per cent during this period.

A primer on the Indian cement industry

Highly fragmented (low entry barriers)

Cyclical industry


cc

Highly capital & energy intensive

Heavily taxed sector

High bulk (volume) low value product

Heavy dependence on 3 sectors viz. coal, power and transport

Exports

Apart from meeting the entire domestic demand, the industry is also exporting cement and

clinker. The export of cement during 2001-02 and 2003-04 was 5.14 million tonnes and 6.92

million tonnes respectively. Export during April-May, 2003 was 1.35 million tonnes.

Major exporters were Gujarat Ambuja Cements Ltd. and L&T Ltd.

Recommendations on Cement Industry

The Working Group has identified following thrust areas for improving demand for

cement;

(i) Further push to housing development programmes;

(ii) Promotion of concrete Highways and roads; and

(iii) Use of ready-mix concrete in large infrastructure projects.

Further, in order to improve global competitiveness of the Indian Cement Industry, the

Department of Industrial Policy & Promotion commissioned a study on the global

competitiveness of the Indian Industry through an organization of international repute, viz.

KPMG Consultancy Pvt. Ltd. The report submitted by the organization has made several

recommendations for making the Indian Cement Industry more competitive in the

international market. The recommendations are under consideration.

Technological change

Cement industry has made tremendous strides in technological upgradation and

assimilation of latest technology. The induction of advanced technology has helped the

industry immensely to conserve energy and fuel and to save materials substantially. India is

also producing different varieties of cement like Ordinary Portland Cement (OPC), Portland


cc

Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement,

Rapid Hardening Portland Cement, Sulphate Resisting Portland Cement, White Cement etc.

Production of these varieties of cement conform to the BIS Specifications. It is worth

mentioning that some cement plants have set up dedicated jetties for promoting bulk

transportation and export.

Past years

The Cement industry continued its growth trajectory over the past seven years.

Domestic cement demand growth surpassed the economic growth rate of the country for the

past couple of years. Over the past five years (FY03-07), cement demand grown at a CAGR

of 8.37% higher than the CAGR of supply at 4.84%. Demand for cement in the country is

expected to continue its buoyant ride on the back of robust economic growth and

infrastructure development in the country.

The key drivers for cement demand are real estate sector, infrastructure projects and

industrial expansion projects. Among these, real estate sector is the key driver and accounted

for almost 55% of cement demand in FY 07. Cement is a bulky commodity and cannot be

easily transported over long distances making it a regional market place, with the nation

being divided into five regions. Each region is characterised by its own demand-supply

dynamics. The Southern region dominated the cement consumption at 44.5 mn tonnes in FY

07, accounting for about 30% of total domestic cement consumption.

Real estate sector is the booming sector in Indian economy. It promotes the

infrastructural development and Foreign Direct Investment (FDI) in the country.

Everyone has the dream to have a house. And it is such a scenario where so many

people now have started living in nuclear families. Break-ups in joint families during last few

decades promote the people to buy home and apartments for their own. In the last few

decades, the income of middle class people is rising. Which in turn increased the domestic

demand for cement.


cc

Infrastructural development of any country depends on its realty sector development.

For introducing foreign companies, hospitals, schools, townships, offices the country needs

development in the realty sector.

India's economy is a developing one. And Reality sector forms 5-6 per cent of the

Gross Domestic Product (GDP). Large scale investment, rapid urbanization and Foreign

Direct Investment (FDI) are contributing to the growth of real estate sector in India.

Government also promotes the international business groups to invest in this industry. It is

such an industry where so many of job opportunity exist and it promotes several different

industries like glass, iron, cement, painmt, steel etc.

Domestic Cement industry is highly insulated from global cement markets. Exports

have been constant at about 6% of total cement demand for past few years. With GoI

intervention, making cement duty free, cement is being imported from neighbouring

countries. However, due to logistics issues and lack of port handling capabilities, imports of

cement will remain negligible and do not pose a threat to domestic industry.

CURRENT SITUATION

Top cement companies record slowest growth in eight quarters

Warning signs are showing up on the country’s cement industry, as it struggles with

escalating input costs and a forced inability to pass on the costs to their customers.

Two of the top four cement manufacturers in the country have seen their profits slide in the

quarter ended 30 June, while the other two witnessed their slowest growth in eight quarters.

On Friday, Ambuja Cements Ltd said its net profit for the quarter fell 33% to Rs577.02 crore,

year-on-year, while Grasim Industries Ltd reported a marginal 0.4% rise.

Ambuja Cements’s quarterly net sales rose 8% to Rs1,569.77 crore and its domestic

despatches were up 5%, but exports fell 70% reflecting the export ban initiated by the

government, which impacted six weeks in the quarter.

“Cost pressures continue to be unrelenting,” Ambuja Cements said in a statement. “Fuel and

power costs in our plants are significantly higher year on year (34%), in particular cost of


cc

imported coal which has tracked global oil developments and shown no signs of abatement in

the near future.”

Ambuja Cements also had an exceptional gain of Rs303 crore net of tax on the sale of its

remaining stake in Ambuja Cements Pvt. Ltd to Holderin Investments Ltd, the investment

subsidiary of Swiss cement major Holcim Ltd.

Grasim Industries, part of the Aditya Birla Group, said net profit for the quarter came in at

Rs672 crore, while revenue grew to Rs4,430 crore from Rs4,060 crores.

Production increased by 3% at 3.99 million tonne, while ready mix concrete volumes grew by

61% due to the commissioning of new plants.

Few week before, UltraTech Cement Ltd said its profit for the first quarter rose 2% while

ACC Ltd, the country’s largest cement maker, on Thursday reported a near 27% drop in its

second-quarter net profit hurt by a surge in fuel and input costs.

FEW FACTORS WHICH MAY INFLUNCE THE CEMENT INDUSTRY

1. Foreign grip on local cement industry hardens

With the proposed sale of Frederick County, Va.-based Riverton

Investment Corporation to an Italian company for $107 million.

2. UK cement industry cement and clinker sales rise in 2007

The UK cement industry has published its figures for cement sales for

2007.

3. Contractors everywhere scrambling for cement

Increased construction along the Wasatch Front and elsewhere in the

United States had national cement producers scrambling to cement.

4. Demand for cement in China to reach 1.3 billion metric tons in 2010.

Demand for cement in China will rise 5.1 percent annually to 1.3 billion

metric tons in 2010.


cc

5. Energy efficiency and capital embodied technical change.

6. Decreasing oil prices.

7. competition for shipping, and other forces are continuing to drive

material prices higher, etc

Indian cement industry – Major players in 2008


cc

Competition

Last Price Market Cap.(Rs. cr.)

SalesTurnover

Net Profit Total Assets

Ambuja Cements 54.20 8,252.38 5,704.84 1,971.10 4,991.67

ACC 418.50 7,853.31 6,878.00 1,438.59 4,459.12


9.9

shree

cc

UltraTechCement 324.95 4,045.17 5,509.22 1,007.61 4,437.49

India Cements 82.50 2,325.52 3,044.25 637.54 5,132.59

Shree Cements 439.95 1,532.66 1,367.98 177.00 1,942.92

Madras Cements 63.35 1,507.52 2,011.88 408.28 2,589.49

Chetinad Cem 401.00 1,183.08 930.18 163.77 828.68

Rain Commoditie 116.00 835.60 -- -0.56 717.62

Birla Corp 98.00 754.65 1,724.78 393.57 1,232.47

Dalmia Cement 90.00 728.45 1,480.67 347.15 2,730.48

Comparison with Competitors

Balance Sheet ------------------- in Rs. Cr. -------------------

Shree Cement

sAmbuja Cements ACC UltraTechCement India Cements

Mar '08 Dec '07 Dec '07 Mar '08 Mar '08

Sources Of Funds

Total Share Capital 34.84 304.48 187.83 124.49 281.87


SC12

cc

Equity Share Capital 34.84 304.48 187.83 124.49 281.87

Share Application Money 0.00 0.00 0.10 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 637.97 4,356.77 3,964.78 2,572.50 2,314.94

Revaluation Reserves 0.00 0.00 0.00 0.00 724.30

Networth 672.81 4,661.25 4,152.71 2,696.99 3,321.11

Secured Loans 1,167.07 100.00 266.03 982.66 971.02

Unsecured Loans 103.05 230.42 40.38 757.84 840.49

Total Debt 1,270.12 330.42 306.41 1,740.50 1,811.51

Total Liabilities 1,942.93 4,991.67 4,459.12 4,437.49 5,132.62

Shree Cement

sAmbuja Cements ACC UltraTechCement India Cements

Mar '08 Dec '07 Dec '07 Mar '08 Mar '08

Application Of Funds

Gross Block 2,187.30 5,231.05 5,464.07 4,972.60 4,708.69

Less: Accum. Depreciation 1,427.34 2,271.19 2,149.35 2,472.14 1,244.24

Net Block 759.96 2,959.86 3,314.72 2,500.46 3,464.45

Capital Work in Progress 17.96 696.79 649.19 2,283.15 574.91

Investments 591.00 1,288.94 844.81 170.90 129.28

Inventories 176.57 581.60 730.86 609.76 350.64

Sundry Debtors 49.39 145.68 289.29 216.61 311.07

Cash and Bank Balance 50.47 114.94 78.87 100.69 7.84

Total Current Assets 276.43 842.22 1,099.02 927.06 669.55


cc

Loans and Advances 421.14 237.04 544.31 390.43 1,062.06

Fixed Deposits 416.96 535.85 664.61 0.00 417.80

Total CA, Loans & Advances 1,114.53 1,615.11 2,307.94 1,317.49 2,149.41

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 296.80 1,081.70 1,991.27 1,708.96 1,143.36

Provisions 243.73 493.55 666.27 125.55 65.89

Total CL & Provisions 540.53 1,575.25 2,657.54 1,834.51 1,209.25

Net Current Assets 574.00 39.86 -349.60 -517.02 940.16

Miscellaneous Expenses 0.00 6.22 0.00 0.00 23.79

Total Assets 1,942.92 4,991.67 4,459.12 4,437.49 5,132.59

Contingent Liabilities 90.94 1,193.08 890.62 645.17 597.23

Book Value (Rs) 193.13 30.62 221.33 216.65 92.13

Ambuja Cements LimitedType Public, Listed on BSE, NSE

Founded 1986

Headquarters Mumbai, India

Key people

Suresh Neotia, Chairman

N. S. Sekhsaria, Vice Chairman

A. L. Kapur, Managing Director

Industry Cement

Products Cement and Clinker

Website www.GujratAmbuja.com


http://www.gujaratambuja.com/

http://en.wikipedia.org/wiki/Website

http://en.wikipedia.org/wiki/Clinker

http://en.wikipedia.org/wiki/Cement

http://en.wikipedia.org/wiki/Product_(business)


http://en.wikipedia.org/wiki/Industry

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Mumbai

http://en.wikipedia.org/wiki/National_Stock_Exchange

http://en.wikipedia.org/wiki/Bombay_Stock_Exchange

http://en.wikipedia.org/wiki/Category:Types_of_companies

http://en.wikipedia.org/wiki/Image:Flag_of_India.svg




cc

Ambuja Cements Limited, formerly known as Gujrat Ambuja Limited is a major Cement

producing company in India. The Group's principal activity is to manufacture and market

cement and clinker for both domestic and export markets.

The Company also operates a hotel through its subsidiary GGL Hotel and Resort Company. It

has shown innovation in utilizing measures like sea transport, captive power plants, and

imported coal and availing of govt. sops and subsidies to constantly check the costs.

Ambuja Cements Limited was earlier known as Gujarat Ambuja Cements Limited (GACL).

The company was set up in 1986. In this short span Ambuja Cements has achieved massive

growth and presently, the total cement capacity of the company is 16 million tonnes. The

company has three subsidiaries, viz, Ambuja Cement Rajasthan Limited (ACRL), Ambuja

Cement Eastern Limited (ACEL) and Ambuja Cement India Limited (ACIL). Ambuja also

has a strategic investment in ACC through its subsidiary (ACIL).

Ambuja Cements is the most profitable cement company in India, and the lowest cost

producer of cement in the world. One of the major reasons that Ambuja Cements is the

lowest cost producer of cement in the world is its emphasis on efficiency. Power consists

over 40% of the production cost of cement. The company improved efficiency of its kilns to

get more output for less power. Thereafter Ambuja Cements set up a captive power plant at a

substantially lower cost than the national grid. The company sourced a cheaper and higher

quality coal from South Africa, and a better furnace oil from the Middle East. As a result,

today, the company is in a position to sell its excess power to the local state government.

Ambuja cement is the first company to introduce the concept of bulk cement movement by

sea in India. This resulted in speedier transportation and brought many coastal markets within

easy reach. Ambuja Cements has a port terminal at Muldwarka, Gujarat. It is an all weather

port that handles ships with 40,000 DWT. The port has a fleet of seven ships with a capacity

of 20500 DWT to ferry bulk cement to the packaging units. The company has bulk cement

terminals at Surat, Panvel, and Galle. The Surat terminal has a storage capacity of 15,000

tonnes and Panvel terminal has a storage capacity of 17,500 tonnes. Both the terminals have

bulk cement unloading facility. The port at Galle, 120 km from Colombo, Sri Lanka, handles

million tonnes of cement annually.


cc

Ultra Tech Cement LimitedCompany Profile:

Ultra Tech Cement

Limited

Ticker: 532538

Exchanges: BOM

2008 Sales: 55,663,000,000

Major Industry: Construction

Sub Industry: Cement Producers

Country: INDIA

Employees: 3989

Ultra Tech Cement Limited. The Group's principal activities are to manufacture and market clinker and cement in India. The Group has intstalled capacity of 18.2 million tonnes per annum comprising 5 integrated Cement Plants, supported by 5 Grinding Units and 3 Terminals, one of which is located in Sri Lanka. The Group exports to the Middle East and Sri Lanka. It also exports in small quantities to Bangladesh and some European nations.

The Groups cement business is under both Grasim and UltraTech cement. Together the two companies under the group account for a substantial share of the cement market in India. UltraTech cement comprises the cement business of L&T which was acquired by the group. UltraTech announced an increase in sales by 17% and Profit After Tax by 46% for the current quarter ending.

PEST analysis

PEST analysis stands for "Political, Economic, Social, and Technological analysis" and

describes a framework of macroenvironmental factors used in the environmental scanning

component of strategic management. It is a part of the external analysis when conducting a

strategic analysis or doing market research and gives a certain overview of the different

macroenvironmental factors that the company has to take into consideration. It is a useful

strategic tool for understanding market growth or decline, business position, potential and

direction for operations.


http://en.wikipedia.org/wiki/Market_research

http://en.wikipedia.org/wiki/Strategic_management

http://en.wikipedia.org/wiki/Environmental_scanning

http://en.wikipedia.org/wiki/L%26T

http://en.wikipedia.org/w/index.php?title=UltraTech&action=edit&redlink=1

http://en.wikipedia.org/wiki/Grasim


cc

Political factors include areas such as tax policy, employment laws, environmental

regulations, trade restrictions and tariffs and political stability.

Economic factors are economic growth, interest rates, exchange rates and inflation

rate.

Social factors often look at the cultural aspects and include health consciousness,

population growth rate, age distribution, career attitudes and emphasis on safety.

Technological factors include ecological and environmental aspects and can

determine barriers to entry, minimum efficient production level and influence

outsourcing decisions. Technological factors look at elements such as R&D activity,

automation, technology incentives and the rate of technological change.

Identifying PEST influences is a useful way of summarising the external environment in

which a business operates. However, it must be followed up by consideration of how a

business should respond to these influences.

Political / Legal Economic Social Technological

- Environmental regulation and protection

- Economic growth (overall; by industry sector)

- Income distribution (change in distribution of disposable income;

- Government spending on research

- Taxation (corporate; consumer)

- Monetary policy (interest rates)

- Demographics (age structure of the population; gender; family size and composition; changing nature of occupations)

- Government and industry focus on technological effort

- International trade regulation

- Government spending (overall level; specific spending priorities)

- Labour / social mobility

- New discoveries and development

- Consumer protection - Policy towards unemployment (minimum wage,

- Lifestyle changes (e.g. Home working,

- Speed of technology transfer


http://en.wikipedia.org/wiki/Inflation_rate

http://en.wikipedia.org/wiki/Inflation_rate

http://en.wikipedia.org/wiki/Exchange_rate

http://en.wikipedia.org/wiki/Interest_rate

http://en.wikipedia.org/wiki/Economic_growth

cc

unemployment benefits, grants)

single households)

- Employment law - Taxation (impact on consumer disposable income, incentives to invest in capital equipment, corporation tax rates)

- Attitudes to work and leisure

- Rates of technological obsolescence

- Government organisation / attitude

- Exchange rates (effects on demand by overseas customers; effect on cost of imported components)

- Education - Energy use and costs

- Competition regulation - Inflation (effect on costs and selling prices)

- Fashions and fads - Changes in material sciences

- Stage of the business cycle (effect on short-term business performance)

- Health & welfare - Impact of changes in Information technology

- Economic "mood" - consumer confidence

- Living conditions (housing, amenities, pollution)

- Internet!

POLITICAL ASPECTS:

Cement plant is deemed to be manufacturing activity for the purpose of incentives for

the industry in line with the approved policy of Government of India.

All cement plants are entitled to "Industry" status. Such units are eligible for all

concessions and incentives applicable to Industries.

The State Government encourages flow of investments including FDI and provides

full support wherever required. The State Government can offer customized package

of incentives for prestigious investment proposals i.e. projects where total investments

are more than Rs. 10 Crore or a Fortune 500 company is implementing the project.


cc

All cement Units with a connected load exceeding 100 KW shall be charged a

concessional rate of Electricity Duty.

State Financial Institutions and the Banks, in line with the approved policy of

Government of India, treat cement plants as priority sector.

ECONOMICAL ASPECTS:

Cement sector uses low cost highly skilled human resources in which India enjoys

internationally competitive advantage.

It should be emphasized that the internal strengths of Indian cement industry

principally comes from domestic entrepreneurship and domestic capabilities.

The impact of WTO and need for free trade areas can be observed by the fact that

Indian firms have established operations in countries like Mauritius and Brazil while

avoiding Eastern Europe.

Global expansion of Indian cement firms is in part funded by international capital.

Indian companies raise a part of their capital requirement abroad via bank debts. This

exposes companies to vagaries of interest rate fluctuations and inflation rate changes.

SOCIO CULTURAL ISSUES:

Expansion of cement development centers abroad by Indian cement firms is very

limited and is mostly driven by labor costs.

Indian cement firms are used to intense competition in global markets. Most

companies compete only on price and have gained reputation as price warriors.


cc

Indian managers do not consider the need to customize software solutions for a

foreign country to be a major impediment for global expansion.

TECHNOLOGICAL ASPECTS:

Export of cement and related services is heavily dependent on transport infrastructure.

Modern advances in technology and transport media has a revolutionary change in the

scenario. Latest chemical analysis and there properties forced the industry to keep

them updated.

The universal nature of Internet and satellite communication capability provided by

Indian government has mitigated the importance of telecommunication infrastructure.

Also to organize global fests like Olympics there is demand of a very good

infrastructure, thus technology matters.

PORTER’S 5 FORCES ANALYSIS


cc

Porter's 5 Forces analysis focuses on the external factors of the industry. The original

competitive forces model, as proposed by Porter, identified five forces which would impact

on an organization’s behavior in a competitive market. These include the following:

The rivalry between existing sellers in the market.

The power exerted by the customers in the market.

The impact of the suppliers on the sellers.

The potential threat of new sellers entering the market.

The threat of substitute products becoming available in the market

.

Force 1: The Degree of Rivalry

There are many companies which are into the business of producing and distributing Cement

and there is heavy competition with them in terms of grapping the market share . There is no


http://www.coursework4you.co.uk/sprtbus67.htm

cc

substitute product of Cement due to which this industry has no rivalry with other industries

but in between its own community is has many rivals.

The Indian cement industry faces dramatic changes, challenges, and constraints as it

uses the global delivery model to transform itself into a knowledge leader competing

with established global giants.

Since rival firms often hire managers and engineers professionals who have

experience working at established firms, the labor cost for Indian firms is expected to

increase as they compete to retain talent. Unless the Indian educational system can

produce a large number of high-quality new graduates to meet the demand for

engineers, there will be a gradual movement of work to other emerging industries.

Force 2: The Threat of Entry

New entrants to an industry can raise the level of competition, which may cause in reducing

its attractiveness. The threat of new entrants largely depends on the barriers to entry. In

Cement industry it is easy to enter but talking about Products it is tough because it depend on

the reliability of customer. Key barriers to entry include

In industry Economies of scale is very slow because it take time to increases customer

loyalty and whole growth is depend on that only.

For new entrant it very big challenge for them to establish business because it require

huge amount of capital and investment.

In cement sector distribution play major role, without that it is not possible for publisher

to reach customer so; it’s also a problem to new entrants.


cc

In today’s scenario cement manufacturing is a profitable business and many new companies

are attracted to enter into this business. Then also there is no threat to the existing companies

as they have been identified by their performance and services they provide to the customers.

Companies are given exploring, disturbing and producing cement block on the basis of their

financial, technical and performance.

Force 3: The Threat of Substitutes

The presence of substitute products in cement industry can lower industry attractiveness and

profitability because they limit price levels. The threat of substitute products depends on:

In cement sector once competitor got customer reliability then it’s difficult to divert

customer mind.

In cement industry price plays major role and it’s totally depend on market price i.e.

substitutes price. The relative price and performance of substitutes.

Shree cement ltd. is into cement manufacturing business where there is no substitute product

so the threat of substitute is not possible for this industry.

Force 4: Buyer Power

The most important determinants of buyer power are the size and the concentration of

customers. Cement industry has expanded their production to a large extent by their

performance due to which they are able to satisfy the ultimate customers by providing the

services.

Brand loyalty is a negligible factor in the software industry mostly due to the concept

of customized business solutions.

But however there is the advantage of bulk orders being processed due to the fact that

most of the firms cater to business to business prospects only.

The reputation and the size of the firm also plays an important role in the choice of

clients.


cc

Force 5: Supplier Power

Suppliers are the businesses that supply materials & other products into the industry.

The cost of items bought from suppliers (e.g. raw materials, components) can have a

significant impact on a company's profitability. If suppliers have high bargaining power over a

company, then in theory the company's industry is less attractive. The bargaining power of

suppliers will be high when:

In an industry there are many buyers and few suppliers but in pharmaceutical sector

there are many buyers and many suppliers so bargaining power over a company is not

much this factor may attract to new entrant in industry.

The industry is not a key customer group to the suppliers but pharmaceutical industry

is the key customer to the supplier because for suppliers other buyers are few.

Almost all cement company supplies cement on their own so there is no supplier power

which can affect their business.

Company Profile

Background & History

Mission ; Vission &

Philosophy


cc

Objective & Goals

Milestones

SWOT Analysis

Products & Market

Balance Score Card

Over the last decade, a significant change in business environment has caused

organizations around the world to transform their business model in order to maintain

leadership. This change is hyper-competition - a state that renders traditional competitive

advantage unsustainable. Rapid product introductions to battle the pressures of

commoditization is impacting organizational bottom line faster than ever before.

Shree Cement Ltd. is an energy conscious & environment friendly business

organization. Having Nine Directors on its board under the chairmanship of Shri.B.G.

Bangur, the policy decisions are taken under the guidance of Shri. H.M. Bangur, Managing

Director. Shri. M.K.Singhi, Executive Director of the Company, is looking after all day-to-

day affairs. The company is managed by qualified professionals with broad vision who are

committed to maintain high standards of quality & leadership to serve the customers to their


cc

fullest satisfaction.The board consists of eminent persons with considerable professional

expertise in industry and field such as banking, law, marketing & finance.

Shree cement a leading cement manufacturer of North India, has been participating in

the infrastructure transformation for India for over two decades. It started operation in 1985

and has been growing over since. Its manufacturing units are located in Beawar, Ras in

Rajasthan. It also has grinding unit at Khuskera near Gurgaon. It has 3 brands under its

portfolio viz Shree Ultra Jung Rodhak cement, Bangar Cement and Tuff cement.

Its record of steady profitability and healthy operating margin was maintain in 2007-

08 as well. it registered a growth of 51% in net sales which stood us at rs.2065.87 cr in 2007-

08. Its net profit increase by 47% to rs.260.37 cr. During the year.

Shree always strives to sustain it reputation as a respected corporate citizen. Its

acknowledges that is operation have multiple impacts on the environment and communities in

which it operates. Its business strategies and performance demonstrate a high level of

commitment to preservation of enviorment and social development apart from economic

success.

History of CompanyYEAR EVENTS

1979 - The Company was incorporated on 25th October, at Jaipur. The Company was

promoted by members of the Bangur family and others.Shree Digvijay Cement Co. Ltd.,

Graphite India, Ltd. and Fort Gloster Industries, Ltd. took active part in the promotion of the

Company. The Company manufacture's cement & cement products.

- To reduce fuel and power consumption, the Company adopted the latest dry process, four

stage preheater precalcination technology of clinkerisation and air swept roller mill grinding

system for raw material and coal grinding.

- The Company entered into agreement with F.L. Smidth & Co. A/s Copenhagen, a designer

and manufacture of cement plants, its associates F.L. Smidth & Cia. Espanola S.A., Madrid

and with Larsen & Toubro Ltd., Mumbai for the supply of plant equipment and services for

the proposed project. 1984 - 70 No. of equity shares subscribed for by the signatories to the


cc

Memorandum of Association. In Oct./Nov. 1,53,99,930 No. of equity shares issued of which

1,06,99,930 shares reserved for firm allotment as follows:

(i) 48,00,000 shares to Shree Digvijay Cement Co. Ltd.;

(ii) 11,00,000 shares each to Graphite India, Ltd. and Fort Gloster Industries, Ltd. And

(iii) 36,99,930 shares to Directors, their friends etc. including upto 25,00,000 shares to NRIs

with repatriation rights. The balance 47,00,000 shares offered to the public of which

18,80,000 shares offered for allotment on preferential basis to Non-Residents.

1985 - Commercial production commenced from 1st May.

1986 - A diesel generating set of 13.6 MW was installed for captive power generation.

1987 - 46,00,000 shares issued to financial institutions in conversion of loans.

1991 - Production of clinker and cement declined due to a major shut down of the plant for

implementation of modernisation/renovation/modification work.

- The Company undertook to set up a new cement plant of 0.6 million

TPA capacity in Rajasthan

- 7,96,000 No. of Equity shares issued to financial institution in conversion of

loan.

1992 - 36,00,000 shares allotted to FLT Ltd. a wholly owned subsidiary of P.L. Smith & Co.

Denmark under financial collaboration agreement.

1993 - The Company undertook a scheme of implementing second stage

of its licensed capacity to increase its capacity to 3300 tonnes per day.

- The Company issued 21975 - 16% each with equity warrants and these will be

converted as per institutional guidelines.

- 2,40,021 shares issued in pursuance of scheme of Amalgamation.

1994 - The Company issued 10,00,000-16% Secured Redeemable NCD of Rs

100 each on private placement basis.


cc

- A scheme of amalgamation of an existing leasing and finance Company with the

Company was prepared for undertaking leasing activities and other financial services on large

scale.

- M/s. Mannakrishna Investment, Ltd. is a subsidiary of the Company.

1995 - The Company undertook the implementation of new unit of 124

MT capacity per annum named Raj Cement.

- 43,95,000 No. of Equity shares on surrender of detachable optional share warrants

attached with 16% unsubscribed non-Convertible Debentures of 100 each.

1996 - The Company commissioned its second cement plant - Raj Cement with a capacity

of 12.4 lakh tonnes per annum in Beawar.

- 58,06,204 rights shares issued (prem. Rs 10 per share) in the prop. 1:5.

1998 - Shree Cement, the Calcutta-based PD-BG Bangur group company, has decided to

issue preference shares aggregating Rs 15 crore to mobilise long-term funds.

- Shree Cement's expansion in capacity by 12.4 lakh tonnes at the new unit in Reawar,

has made it a leading cement manufacturer in North India.

- ICRA has downgraded the rating of the NCD programme of Shree Cement Ltd

(SCL) from LAA to LA.

- The Rs 372-crore 1.25 million tonne cement plant near Ajmer was commissioned

during the year after considerable delay due to an explosion in the electro-static precipitator.

- Shree Cements has an installed capacity to produce up to two million tonnes of cement

per annum in Rajasthan and has an equity capital of about Rs. 34 crores.

1999 - The company has been awarded the first prize for energy conservation in 1998 in

the cement sector.

- SCL, belonging to the house of Bangurs, is one of the largest cement manufacturers in

North India, having the installed capacity of 2 million tonnes. Its plants are located in

Rajasthan. The new plant was set up at Beawar with the capacity of 1.24 million tpa in

Rajasthan.


cc

2002

-Unit I and Unit II of the company receives National Award for 'Best Electrical Energy

Performance' and 'Best Thermal Energy Performance' in the Cement Industry for the year

2000-01

-Decides to change the Accounting year to April - March each year and accordingly

the current year is only for nine months.

-Appoints Mr M K Singhi as the Executive Director of Shree Cements.

-In pursuance to the IDBI, company approve for early redemption of privately placed

under noted cummulative redeemable preference shares.

-Change in Management Structure: Mr B G Bangur re-appointed as executive

chairman and Shri H M Bangur re-appointed as the Managing Director for a period of five

years.

2003

-Members approve for the delisting of its shares from 4 stock exchanges of Jaipur,

Kolkota, Delhi and Chennai exchanges.

-Confers the Runner up National Safety Award by the Ministry of Labour,GOI, in

recognition of outstanding performance in Industrial Safety achieving longest accident free

period.

-Receives permission for delisting of shares from Delhi Stock Exchange.

-The company has been conferred National Award for Excellence in Energy Management

2003 instituted by the Confederation of Indian Industry (CII) and Sohrabji Godrej Green

Business Centre.

-Delisting of equity shares from Madras Stock Exchange Association Ltd

2004


cc

-Company conferred 'BEST PRODUCITY AWARD-2003' by the Rajasthan state

Productivity Council in recognition of productivity measures and productivity improvements

achieved

- Rajasthan Chamber of Commerce & Industries, Jaipur presents 'RCCI Excellence Award'

to Shree Cement Ltd in recognition of Overall Best Corporate Governance Practices and

Disclosures in Annual Report among all companies having registered office in Rajasthan.

-Delist from The Calcutta Stock Exchange Association Ltd (CSE).

2007

- Shree Cement Ltd has appointed Shri. Amitabha Ghosh as Director of the Company w.e.f.

May 14, 2007.


cc

LOCATION

Shree Cement Unit I & II is located at Beawar, 185 Kms. from Jaipur off the Delhi-Ahmedabad highway. Amongst the plants in the state it is nearest from its marketing centers. Bangur Cement Unit (III,IV,V & Vi) is lacated at RAS,28 Km from Beawar in pali Dist.Shree Cement Grinding Unit (KKGU) is located at Khush Khera Dist. Alwar Nearest to Delhi.


Shree Cement Ltd

Industry : Cement - North India BSE Code : 500387

House : Bangur NSE Code : SHREECEM

Incorporation Year 1979

Registered OfficeBangur Nagar,Beawar,Ajmer,Rajasthan-305901

Telephone 91-1462-228101-06

Fax 91-1462-228117/228119

Chairman B G Bangur

Managing Director

Company Secretary

Auditor B R Maheswari & Co

Face Value 10

Market Lot 1

Listing Mumbai,NSE

RegistrarKarvy Computershare Pvt LtdPlot No 17-24,Vittal Rao Nagar,Madhapur,Hyderabad-500081

Chairman & Managing Director B G Bangur

President M K Singhi

Director G D Bangur

Joint Managing Director H M Bangur

DirectorR N DeyV N Dhoot

Nominee (IDBI) I T Vaz

Nominee (LIC) N Ramamurthi

Director R L Gaggar

Company Secretary K K Dangi

Nominee (LIC) Harkirat Singh

Company Secretary S L Bhansali

cc

Regd. Office & Works:

Shree Cement Ltd.

Bangur Nagar, Post Box No. 33 Beawar 305901

Rajasthan India

Corp. Office: 21, Strand Road, Calcutta- 700001.

LOCATION MAP

CEMENT PLANT


cc

MISSIONTo sustain its reputation as the most efficient cement manufacturer in the world.

To drive down costs through innovative plant practices.

To increase the awareness of superior product quality through a realistic

and convincing communication process with consumers.

To strengthen realisations through intelligent brand building.

VISION

To register a strong consumer surplus through a superior cement quality at

affordable prices.

P


cc

HIOLOSOPHY

Let noble thoughts come to us from all over the world.

Rigveda.

Shree Cement Ltd is a professionally managed company. The company always believes in

complete transparency and discharge of the fiduciary responsibilities which has been

assumed by Directors as well as by the Senior Management Executives and/or Staff.

Therefore in order to ensure the continuity thereof though, not written but otherwise

ingrained, the Board of Directors has approved of the following Code of Conduct for all

Directors as well as for the Senior Management Executive and/or personnel and other

employees.

All the Directors as well as Senior Management Executive and/or Personnel owe to the

Company as well as to the shareholders :

i) "Fiduciary duty"

ii) “Duty of skill and care”

iii) “Social responsibility”

With the above objects in mind the following code of conduct has been evolved and it is

expected that all Directors as well as Senior Management Executives and/or personnel will

adhere to it.


cc

FIDUCIARY DUTIES

All Directors as well as Senior Management Executives and/or personnel while dealing on

behalf of the company will exercise the power conferred upon him / them and fulfill his /

their duties honestly and in the best interest of the company.

DUTY TO EXERCISE POWER FOR PROPER PURPOSES

The Board from time to time shall determine the powers to be exercised by the Directors as

well as the Senior Management Executives and/or Personnel and all such powers shall be

exercised reasonably.

CONFLICT OF INTEREST

None of the Directors and/or Senior Management Executives and/or personnel will put

himself in a position where there is potential conflict of interest between personal interest and

his duty to the company. None of the Directors and/or Senior Management Executive and/or

personnel will exploit an opportunity arising while associated with the Company for his

personal gain either directly or indirectly.

SECRET PROFITS

The Director as well as Senior Management Executives and/or personnel while discharging

their duties in a fiduciary capacity is precluded from making any personal profit from an

opportunity which may arise being a Director and / or Senior Management Executive of the

Company and should always ensure that he is acting for and on behalf and for the good of the

Company.

DUTY OF SKILL AND CARE

Since all the Directors as well as Senior Management Executives and / or personnel are

acting in a fiduciary capacity and for the benefit of the company, being advocates of the

business of the Company, none of them will do anything which is in conflict with the interest

of the company.


cc

ATTENTION TO BUSINESS

All Directors as well as Senior Management Executives and/or personnel will give proper

attention to the business of the company.

SECRECY AND CONFIDENTIALITY

None of the Directors as well as Senior Management Executives and/or personnel while

associated or working for the company will be entitled to disclose either directly or indirectly

or make use of the confidential information which may come in their possession while acting

on behalf of the company and shall not divulge the financial status and position of the

company to any person or persons.

INTERNAL TRADING

None of the Directors as well as Senior Management Executives and/or personnel will

directly or indirectly in the name of his family members and/or associates will indulge in any

internal trading of the company’s shares and stocks.

RISK AND PROPER PROCESS

The Senior Management personnel and/or employees are expected to keep the Directors fully

informed about the effect of the policies adopted by the company from time to time and also

regarding the risk connected with such policies.

Senior Management personnel and/or staff who have been entrusted with specific duties for

ensuring compliance of statutory requirements including the rules and regulations shall

forthwith comply with the same and keep the Board of directors fully informed about such

compliance or non-compliance.

Senior Management personnel will from time to time provide or cause to be provided a true

and faithful account of the company’s working and effectiveness of the procedures adopted

by the company from time to time.

All Directors as well as Senior Management Executives and/or personnel are aware that

while working with the company they have a social responsibility as well and therefore from


cc

time to time will devote such time for the upliftment of the downtrodden, poor and needy

persons in the locality.

Success Driver

PEOPLE AS PROGRESS DRIVERS

Shree believes that what is present in the minds of people is more valuable than the assets on

the shop floor. All the company’s initiatives are directed to leverage the value of this growing

asset.

TEAMWORK

Shree leverages effective team working to generate a sustainable improvement.

LEADERS AT EVERY LEVEL

Shree believes in creating leaders -not just at the organizational apex but at every level,

resulting in a strong sense of emotional ownership.

CULTURE OF INNOVATION

Shree believes that what is good can be made better -across the organization.

CUSTOMER FOCUS

Shree is committed to deliver a superior quality of cement at attractively affordable prices.

SHAREHOLDER VALUE

Shree is focused on the enhancement of value through a number of strategic and business

initiatives that generate larger and a better quality of earnings.

COMMUNITY AND ENVIRONMENT


cc

Shree’s community concern extends from direct assistance to safe and dependable operations

for its members and the environment

Shree - Milestones

2007-08 - Best Employer Award for Rajasthan for the year 2007

2007-08 - Golden Peacock Award for Excellence in Corporate Governance in manufacturing sector.

2007-08 - Second prize for National Energy Conservation by Bureau of Energy Efficiency in cement sector for the year 2007.

2007-08 - NCCBM award for Best Improvement in Thermal Energy Performance during year 2006-07.

2007-08 - NCCBM award for Best environmental excellence in plant operation during 2006-07.

2007-08 - India Manufacturing Excellence award by Frost and Sullivan for the


cc

year 2007.

2007-08 - Launch of Tuff Cemento 3556 in March 2007

2007-08 - Kush khera Grinding Unit (KKGU)-I Commenced its Production from July 2007.

Shree - Milestones

2006-07 - Best Corporate Governance Award (RCCI) for the year 2006.

2006-07 - 8th Golden Peacock Award for environment excellence 2006.

2006-07 - Unit - IV at RAS Clinker Production started in January 2007.

2006-07 - Unit - IV at RAS Cement Production started in March 2007.

Shree - Milestones

2005-06 - CII Energy Excellence Management Award 2005

2005-06 - Launch of Bangur Cement in Feb 2005

2005-06 - Unit - III Clinker Production started October 2005

2005-06 - Unit - III Cement Production started October 2005

Shree - Milestones

2004-05 - National Award for Excellence in Cost Management -2005 by Institute of Cost and Works Accounts of India (ICWAI), New Delhi.


cc

2004-05 - Certificate of Merit Award by Bureau of Energy Efficiency, Ministry of Power,Govt. Of India for the year 2004.

2004-05 - National Award for Second Best improvement in Electrical Energy Performance (Unit II) by NCCBM 2003-2004.

2004-05 - Rajasthan Productivity Award 2004.

Shree - Milestones

2003-04 - National Award for second Best Quality Excellence by National Council for Cement and Building Materials (NCCBM) for the year 2002-03.

2003-04 - National Award for Best Thermal Energy Performance for U-II by NCCBM for the year 2002-03.


cc

RAS CEMENT

PROJECT

Shree Cement Limited is setting up a new

green field Project at Village Ras, Tehsil

Jaitaran, District Pali of Rajasthan. The

capacity of the plant is 3000 Ton Per Day

of clinker production with an approximate

investment of about Rs. 300 Crores.

The company has already engaged eminent

Consultant for the same and all the major

orders has been placed so as to achieve the

ambitious target to commission the plant

by August 2005 which is fifteen months

from the date of first order placement i.e.

May, 2004.

The main plant & machineries would be

supplied by KHD Humboldt Wedag AG -

Germany & GEBR Pfeiffer AG -

Germany.The plant will be based on the

latest Technology available and maximum

Automation would be done to keep the

minimum manpower. The company is

having sufficient mining lease at Ras to

cater its production requirements for the

upcoming 50 years.

SWOT ANALYSIS


cc

Strength and weaknesses are essentially internal to the organization and relate to the matter

concerning resources, programmes and organization in key areas such as

• Sales

• Marketing

• Capacity

• Manufacturing cost etc

Opportunity and Threat are external to the organization and can exist or develop in the

following areas

• Size & Segmentation

• Growth pattern and maturity

• International dimensions

• Relative attractive of segments

• New Technologies etc

STRENGTH

Company is established in Beawar where most of the land is rocky and material is

suitable for the production of cement, thus it is closely bound to the resources.

Specific chemical composition which makes it coerosion free and also have a very

good chemical recovery efficiency.

Company have its own electricity production unit thus need not to depend on the

availability of power n dependency on electricity department.

Well transport facility, it has its own railway track.

Leading brand in north India. Thus people gives preference to the brand.

Maintain a very good customer loyality and relationship.

A very superior production quality thus customer are always satisfied.

Upper level of management is too skillfull.


cc

Weakness

Poor access of distribution.

Very less advertising thus in other part of country its not as popular.

Technical knowledge is less at lower level of employee, which is draw back for

achieving maximum profit.

Its difficult for them to change to an alternate line o production with existing

machinery.

Opportunities

Changing customer taste, thus they may get the market from the switchers.

Liberalization of geographic works, thus they can enter into different market.

Huge land available for expansion of business in future.

Govt is planning for betterment on infra structure thus there will be huge demand for

cement.

Booming real estate sector.

Good relation with bankers thus for expansion of business they need not to look too

far.

Threats

Changing customer taste, any time they may switch to other.

Advancement in technology.

Entry of new player.

Few major players are situated near the main plant thus market share is difficult to

increase.

Change in govt policy as they may increase the tax.

Non availability on raw material.

Labour and higher technical personnel may switch to another plants.


cc

Shree Ultra Cement 53 Grade BIS Specification 53 Grade Shree Ultra Cement 53-Grade

Fineness (m2 / kg) 225 385

Soundness

Le chatelier expansion (mm) Max. 10 1.0

Auto-clave expansion (%) Max. 0.8 0.606

Setting Time (Mins)

Initial Min. 30 111

Final Max. 600 166

Compressive Strength (MPa)

3 days 27 41.3

7 days 37 54.7

28 days 53 67.6


cc

BIS specification Shree Ultra Cement - 43 Grade

Shree Ultra Cement - 43 Grade

Fineness (m2 / kg) 225 355

Soundness - -

Le chatelier expansion (mm) Max 1.0 .084

Auto-clave expansion (%) Max. 0.8 .075

Setting Time (Mins) - -

Initial Min. 30 115

Final Max. 600 176

Compressive Strength (MPa) - -

3 days Min 23 38

7 days Min33 50

28 day Min. 43 63.5


cc

TUFF Cemento 3556 IS Specification 43 Grade 3556

FinenessSpecific Surface (m2 / kg)

Min.330 406

Setting Time(Minutes.)(a)Intial

Min.30 110

(b)final Min.600 175

Soundness Test(a)Le-Chatelier Method (mm)

Max. 10 1.0

(a)AutoClave(%) Max. 0.800 0.068

Compressive Strength (MPa)(a)3 days(Min.)

Min.16 39

(b)7 days(Min.) Min.22 49

(c)28 days(Min.) Min. 33 59

Quality Initiatives


http://www.shreecementltd.com/section_main.asp?section=S1#%23

cc

Shree Cement possesses one of the few R&D centres in the Indian cement industry. This

center has been recognised by the DSIR, Government of India. The research team is headed

by a highly qualified and experienced scientist. Shree's R&D center has directly contributed

in the conservation of electrical and thermal energy, an improvement in product quality, cost

reduction, mineral conservation through the intelligent use of fly ash and a waste reduction in

mines through the use of low ash coal.

Computer Aided Mine Planning System

Stacker-Reclaimer for homogenization of lime stone

On-Line Sampling System by Auto Samplers

X Ray Analyzers

Automatic Raw Mix Design Controls by Ramco-Software

On Line Raw meal Blending Control in C.F. Silos

Coal homogenization (Stacker-Reclaimer)

Gypsum homogenization

Fuzzy Logic Control for Kiln operation

Roller Press Control & High Efficiency Separator for particle size distribution

Packing by Automatic Electronic Packers

Markets classification

Markets States

Primary Rajasthan

Secondary Delhi, Punjab, JK, Haryana, Western U.P. and Uttaranchal

Tertiary Gujarat, M.P. and Central U.P.

The Balance Score Card Approach


cc

The Balanced Scorecard (BSC) is a performance management tool which began as a concept

for measuring whether the smaller-scale operational activities of a company are aligned with

its larger-scale objectives in terms of vision and strategy. The Balanced Scorecard helps the

organization to act in their best long-term interests. It was introduced by Robert S. Kaplan

and David P. Norton in 1992.The Balanced Scorecard provides managers with the

instrumentation they need to navigate to future competitive success.

The Balanced Scorecards includes four processes:

1. Translating the vision into operational goals;

2. Communicating the vision and link it to individual performance;

3. Business planning;

4. Feedback and learning, and adjusting the strategy accordingly.

Kaplan and Norton found that companies are using Balanced Scorecards to:

Drive strategy execution;

Clarify strategy and make strategy operational;

Identify and align strategic initiatives;

Link budget with strategy;

Align the organization with strategy;

Conduct periodic strategic performance reviews to learn about and improve strategy.

The Four Perspectives

The grouping of performance measures in general categories (perspectives) is seen to aid in

the gathering and selection of the appropriate performance measures for the enterprise. Four

general perspectives have been proposed by the Balanced Scorecard:

Financial Perspective;

Customer Perspective;

Internal process Perspective;

Innovation & Learning Perspective.


http://en.wikipedia.org/w/index.php?title=David_P._Norton&action=edit&redlink=1

http://en.wikipedia.org/wiki/Robert_S._Kaplan

http://en.wikipedia.org/wiki/Performance_management

cc

The financial perspective examines the company’s implementation and execution of its

strategy is contributing to the bottom-line improvement of the company. The three stages are

rapid growth, sustain and harvest. Financial objectives and measures for the growth stage will

stem from the development and growth of the organization which will lead to increased sales

volumes, acquisition of new customers, and growth in revenues.

The customer perspective defines the value proposition that the organization will apply in

order to satisfy customers and thus generate more sales.

The internal process perspective is concerned with the processes that create and deliver the

customer value proposition. It focuses on all the activities and key processes required in order

for the company to excel at providing the value expected by the customers both productively

and efficiently. The internal process perspective are operations management (by improving

asset utilization, supply chain management, etc), customer management (by expanding and

deepening relations), innovation (by new products and services) and regulatory & social (by

establishing good relations with the external stakeholders).

The Innovation & Learning Perspective is concerned with the jobs (human capital), the

systems (information capital), and the climate (organization capital) of the enterprise. These

three factors relate to what Kaplan and Norton claim is the infrastructure that is needed in

order to enable ambitious objectives in the other three perspectives to be achieved.

Note

The company shree cement do not follow the balance score card approach.


cc

Current Organization Structure

Types of Organization Structure

Functional Division Of Company

Critical Review


cc

ORGANIZATION DESIGN


CHAIRMAN { SHREE B.G. BANGAR}

EXECUTIVE DIRECTOR { SHREE M.K. SHINGHI }

MR. R.C. GAGGAR

MR. O.P. SETIA

MR. S.K. SOMANI

MR. ABID HUSSAIN

MR. Y.K. ALAGH

MR. A.K. GHOSH

MANAGING DIRECTOR { SHREE H.M.BANGAR }

BOARD OF DIRECTORS

cc

ORGANIZATION DESIGN

Organization Design is a formal, guided process for integrating the people, information and

technology of an organization. It is used to match the form of the organization as closely as

possible to the purpose(s) the organization seeks to achieve. Through the design process,

organizations act to improve the probability that the collective efforts of members will be

successful.

Typically, design is approached as an internal change under the guidance of an external

facilitator. Managers and members work together to define the needs of the organization then

create systems to meet those needs most effectively. The facilitator assures that a systematic

process is followed and encourages creative thinking.

Hierarchical Systems

Western organizations have been heavily influenced by the command and control structure of

ancient military organizations, and by the turn of the century introduction of Scientific

Management. Most organizations today are designed as a bureaucracy in whom authority and

responsibility are arranged in a hierarchy. Within the hierarchy rules, policies, and procedures

are uniformly and impersonally applied to exert control over member behaviors. Activity is

organized within sub-units (bureaus, or departments) in which people perform specialized

functions such as manufacturing, sales, or accounting. People who perform similar tasks are

clustered together.

The same basic organizational form is assumed to be appropriate for any organization, be it a

government, school, business, church, or fraternity. It is familiar, predictable, and rational. It

is what comes immediately to mind when we discover that ...we really have to get organized!


cc

As familiar and rational as the functional hierarchy may be, there are distinct disadvantages

to blindly applying the same form of organization to all purposeful groups. To understand the

problem, begin by observing that different groups wish to achieve different outcomes.

Second, observe that different groups have different members, and that each group possesses

a different culture. These differences in desired outcomes, and in people, should alert us to

the danger of assuming there is any single best way of organizing. To be complete, however,

also observe that different groups will likely choose different methods through which they

will achieve their purpose. Service groups will choose different methods than manufacturing

groups, and both will choose different methods than groups whose purpose is primarily

social. One structure cannot possibly fit all.

Organizing on Purpose

The purpose for which a group exists should be the foundation for everything its members do

— including the choice of an appropriate way to organize. The idea is to create a way of

organizing that best suits the purpose to be accomplished, regardless of the way in which

other, dissimilar groups are organized.

Only when there are close similarities in desired outcomes, culture, and methods should the

basic form of one organization is applied to another. And even then, only with careful fine

tuning. The danger is that the patterns of activity that help one group to be successful may be

dysfunctional for another group, and actually inhibit group effectiveness. To optimize

effectiveness, the form of organization must be matched to the purpose it seeks to achieve.

The Design Process

Organization design begins with the creation of a strategy — a set of decision guidelines by

which members will choose appropriate actions. The strategy is derived from clear, concise

statements of purpose, and vision, and from the organization’s basic philosophy. Strategy

unifies the intent of the organization and focuses members toward actions designed to

accomplish desired outcomes. The strategy encourages actions that support the purpose and

discourages those that do not.


cc

Creating a strategy is planning, not organizing. To organize we must connect people with

each other in meaningful and purposeful ways. Further, we must connect people with the

information and technology necessary for them to be successful. Organization structure

defines the formal relationships among people and specifies both their roles and their

responsibilities. Administrative systems govern the organization through guidelines,

procedures and policies. Information and technology define the process (es) through which

members achieve outcomes. Each element must support each of the others and together they

must support the organization’s purpose.

Exercising Choice

Organizations are an invention of man. They are contrived social systems through which

groups seek to exert influence or achieve a stated purpose. People choose to organize when

they recognize that by acting alone they are limited in their ability to achieve. We sense that

by acting in concert we may overcome our individual limitations.

When we organize we seek to direct, or pattern, the activities of a group of people toward a

common outcome. How this pattern is designed and implemented greatly influences

effectiveness. Patterns of activity that are complementary and interdependent are more likely

to result in the achievement of intended outcomes. In contrast, activity patterns that are

unrelated and independent are more likely to produce unpredictable and often unintended

results.

The process of organization design matches people, information, and technology to the

purpose, vision, and strategy of the organization. Structure is designed to enhance

communication and information flow among people. Systems are designed to encourage

individual responsibility and decision making. Technology is used to enhance human

capabilities to accomplish meaningful work. The end product is an integrated system of

people and resources, tailored to the specific direction of the organization.


cc

TYPES OF ORGANIZATION STRUCTURES

1. Functional structures

Early organizational design divided enterprises into relatively simple parts, splitting them into

defined activities such as production, marketing or personnel. Functional organizations have

the advantage of being simple to understand with clear lines of command, specified tasks and

responsibilities. Staff can specialize in a particular business area such as production or

marketing and follow well-defined career paths. This is equally true of human resource

specialists who can develop expertise in specific areas such as employee relations or reward

management.

There are also major disadvantages to functional structures. People managers have to tread

carefully because this form of organization is prone to interdepartmental conflict, often

degenerating into 'them and us' tribal warfare. Coherence and good communication are

particularly hard to achieve between virtually independent functions.

2. Divisional organizations

Split into self-contained units, able to react to environmental changes as quickly as small

companies, they are also described as multidivisional or 'M-form' organizations. Divisions

encourage team spirit and identification with a product or region. Managers can develop

broad skills as they have control of all basic functions. Each division is likely to have a

devolved human resource function. But there is a risk of duplicating activities between head

office and divisional human resource departments and of conflict between staff in successful

and unsuccessful divisions. The divisional function may play a coordinating role, reconciling


cc

decisions taken at the corporate and business unit levels. This results in a complex picture of

people management.

3. Federations

One variant of the divisional form which has a particular relevance because of its human

resource implications is the 'federation', a loosely connected arrangement of businesses with a

single holding company or separate firms in alliance. This form of organization has attracted

criticism from stock market analysts who find difficulty in comprehending its subtle

informality.

4. Matrix organizations

Matrix forms of management can be regarded (arguably) as an early form of 'network'

structure. They focus on project teams, bringing skilled individuals together from different

parts of the organization. Individuals were made responsible both to their line manager and

the project manager involved. Before the advent of network technology, many matrix

organizations were dogged by duplication and confusion: the 'matrix muddle'.


cc


FUNCTIONAL DIVISION MARKETING

MR. NARIP BAJWA(HEAD)

MR. DIWAKAR PAYAL( Sn V.P.) MR. VINAY WADHVE ( Sn V.P.) MR. A.B. REDDY ( Sn V.P.)

FIANANCE

MR. ASHOK BHANDARI( HEAD )

MR. N.C. JAIN ( Sn G.M. ) MR. L.K. BHANAWAT ( Sn G.M. ) MR. SUBHSH THAJO ( Sn G.M. )

HR

MR. S.R. SHINGHI ( HEAD )

MR. ALOK MOROLIYA ( Sn Mgr ) MR.GOPAL TRIPATHY (Dept Mgr)

TECHNICAL

MR. SANJAY JAIN ( MECHANICAL ) MR. RAMAN MAHAJAN ( ELECT ) MR. ANIL SHARMA ( INSTRUMENT ) MR. C.K. KHATRI ( LAB ) MR. R.K. BHARGAV ( R&D ) MR. R.K. MANAWAT ( PROCESS )

COMMERCIAL

MR. SANJAY MEHTA ( V.P. )

MR. R.C. GAUR ( Sn GM )

MR. K.K. JAIN ( GM )

MR. ARVIND KHICHI ( JT V.P. )

OPERATION

MR. P.N. CHHANGANI ( V.P. ) MR. P.K. TRIPATHY ( WORKS )

PURCHASE AND SALES

MR. K.C. GANDHI ( V.P. ) MR. ANIL SHUKLA ( Sn Mgr)

PRODUCTION

MR. S.C. SUTHAR ( JOIN VP ) MR. C.B.K. NAIDU ( Mgr proc )

cc

CRITICAL REVIEWThe most common complaints by the users have been:

1) Lack of Advertisement:-

There is no brand visibility of Bangur cement as a company. Advertisement ultra tech can be

seen overall on Rajasthan at public places but hardly any advertisement on Bangur Cement.

Thus we can say that marketing department is not working at its level best.

2) Less Wall-painting:-

Many sub dealers have not got any shop paintings. While carrying the survey it was

sometime difficult to locate the dealer’s shop which shows that the company need to increase

the promotion to make its presence felt.

3) Absence of company literature:-

There has been a limited company literature and stationary material and this had led to low

recognition for the brand.

4) Online payment system:-

The dealers are finding it difficult to send the demand drafts for the payment of purchased

material on the same day because of slow courier service. The dealers have suggested that

they will make the DD on the same day but there should be at least 24 hours time before the

DD reaches to the region.

5) Low margins:-

As compared to the others brands Bangur provide very low margins, so dealers are less

interested in the bangur cement.


PURCHASE AND SALES

MR. K.C. GANDHI ( V.P. ) MR. ANIL SHUKLA ( Sn Mgr)

PRODUCTION

MR. S.C. SUTHAR ( JOIN VP ) MR. C.B.K. NAIDU ( Mgr proc )

cc

6) Quality of bags:-

It was often found during the survey that the quality of bags were inferior due to which the

dealers faces problem while handling.

7) Delivery problem:-

Company should appoint people who ensure that the dealer & builders will get their product

as per the same shown to them and in pre decided time because they complained of delivery

problem and sample not matching.

Marketing Function

HR Function

Operation & Quality Funtion

Finance Function

ERP

Logistics


cc

The advent of globalization has brought marketing to the forefront of all the business activities. Increased competition has resulted in a customer driven market with ever rising


cc

consumer expectations. At SHREE, marketing is not merely identified innovative measures to sell its products, but to proactively gauge their changing needs and produce accordingly.

Indian cement industry clocked an impressive growth of 9.8% during FY 07-08. As against it , SHREE registered a growth of 31% in sales volume. Net sales value showed rise of 51%.

Market share

Shree’s strategy of quality advertising combined with active field marketing helped it

increase its market share in north India. Company maintained its leadership position in the

key market of Rajasthan, Delhi & Haryana. Company increased its market share in North

India to 16.4% against 13.9% of last year.

Our focus on increasing marketing share in areas which are closer to their plants offer them

the advantage of low radius. The strategy benefited them in significantly increasing their

market share in the nearer markets of Rajasthan and Haryana. Going forward they aim to

further consolidate and increase our presence to attain the leadership mantle in the entire

North Indian market.

Rich dividends from Multiple Brands Strategy

Shree’ s strategy of multiple competing brands paid rich dividends in term of achieving

deeper market penetration, distinct customer segment, improved brand equity and overall

increase market share in North India. Shree was able to acquire newer market and extend its

domination to the existing market. Increased growth indicates Shree’ s superior preparedness

to tap the emerging business opportunity.

Strengthening Distribution Network

Company has been marketing significant investment in strengthening marketing expertise and

creating execution excellence to enhance customer servicing. Multiple brand strategy adopted


cc

by the company build a large network of dealers & retailers and other marketing

infrastructure. Total number of dealers and retailers stood at 4275 & 12157 respectively.

The sales force was suitably assisted by quality advertising and sales promotions activities.

TV commercials, hoardings as well as print media were used to create and brand awareness.

Total advertising spending was increased by 29%.Company’s multiple efforts towards

marketing excellence have resulted in the trade sales increase from 35.72 lac tons to 41.13lac

tons- an increase of 15% over the previous year.

Institutional sales

The institutional sales segment witnessed increased demand due to heightened activities in

infrastuctureand commercial real estate such as multiplexes, malls, IT office space etc.

Considering the high demand potential of this segment, they stepped up their efforts to

increase sales, to institutional customer. The results were encouraging as the institutional

sales witnessed a massive 76% rise during the year. They were able to acquire quality

conscious and prestigious customer.


cc


cc

Empowering People

At SHREE they consider their people as their greatest assets. They drive growth and achieve long term sustainability of their business. Their culture fosters differential thinking, empowering people by investing in their professional growth. The company strives to be recognize as the best place for the best people to do the best work.

Promoting Progress

SHREE cement was awarded the best employer award for 2007 by the employer’s association of Rajasthan. Shree prides itself in promoting progress by creating and maintaining a work environment which is conducive to both professional and personal growth. The exceptional performance of people manifest itself in the overall performance of the company and growing outlay for human resources.

Training & Development

SHREE’s HR policies are directed towards enhancing knowledge, experience & skill of its

people and retain a skilled workforce. Various multi skills training programs are arranged to


cc

acquire cross-functional expertise. These are put to use through job enlargement and increase

responsibilities. It leads to an all round development of the employees, such programmes

benefit the company through cost reduction, improved processes and overall enhanced

productivity. Employees also gains through knowledge enrichment and career progression.

Talent Management

SHREE believes the right mix of talent is the key to rip the benefit and avail of the business

opportunities presented by current pace of globalization. SHREE has an excellent

combination of professional competencies in its workforce be in managerial and technical.

Encouraging Innovation

At SHREE, spirit of innovation permeats through every rung of employees. Company

encourages original thoughts which translates into action that yield benefit. A unique scheme

“JO SOCHE WO PAVE” has been running for past many years to encourage the employees

to suggest innovative ideas towards cost reduction, process improvement, energy &

environment conservation. Good ideas are recognized and rewarded at company gathering.

PEOPLE

• Jo soche woh paave

• Creating leaders at every level

• Recognition and reward scheme

• Nomination to vishwakarma rashtriya puraskar

• Multiskill development training programme


http://www.shreecementltd.com/story_main.asp?storyid=Web210212101138shree10:04:20%20AM127&sitecode=shree




http://www.shreecementltd.com/story_main.asp?storyid=Web210212101138shree11:26:02%20PM130&sitecode=shree

cc

• Ascent programme

• The company’s people achievements

Jo soche woh paave

Shree has invested wisely in its people assets over the last few years to sustain a culture of

excellence through the following initiatives:

The company incentivised ownership through the ‘Jo soche woh paave’ scheme.

The company trained and multi-skilled so that members could deepen and extend their

competencies across the house keeping, maintenance, risk management, team building

and environment, health and safety functions.

CREATING LEADERS AT EVERY LEVEL

Shree Cement emphasises that creating leaders not just at the organisational apex but at

every level results in strong sense of emotional ownership. Thus the employees are delegated

with responsibility and authority to adopt one Electric motor and related equipment for

keeping watch and care resulting in energy conservation, thus generating multiple CEO's in

the Energy Management System.

RECOGNITION AND REWARD SCHEME

The management believes in the self-actualisation of its employees by injecting the concept

of Human resource Development in all its policies and strategies. By recognition and reward

the employees are motivated to give their best in the interests of the organization in particular

and for the society in general. So many schemes of recognition and rewards are given to

boost the morale and motivate the employees.

According to Managing Director of the company, morale management is considered to be

more challenging than material management. According to him it is important to keep

walking around and congratulating the teams for their small victories. Efforts and their

success stories are disclosed to all in special functions so that other employees may take


http://www.shreecementltd.com/story_main.asp?storyid=Web210212101138shree11:30:06%20PM131&sitecode=shree


cc

inspiration from them. Employees are rewarded for doing exemplary work in the field of

reducing/ eliminating breakdown, in-house development, better house keeping, and reduction

in raw material, fuel, power and wastage. Cash awards and Certificates of honour have been

given in a function.

For example a scrapper chain of reclaimer II is to be replaced which takes 80 hours. The team

completed this task in minimum possible time with the result that the reclaimer was put into

operation in just 36.5 hours. The team was rewarded with a cash amount of Rs. 11,000/- and

certificate of honour.

MULTISKILL DEVELOPMENT TRAINING PROGRAMME

In 2001-02, the company started the concept of multi skilling to optimise manpower, enhance

skill sets and to facilitate cross-functional development. Unlike other organisations who

introduce multi-skilling for high fliers, the company started this concept first for its workers.

Reason: The company faced a problem of surplus workers. Other organizations would have

resorted to retrenching and laying off, but this is not Shree's philosophy. Shree optimally

utilized its surplus strength by developing worker skills in other technical process. This

helped the company build in a redundancy factor wherein at any given point there was always

a skilled set of people for any function. The company reduced overtime through efficient

manpower utilisation, organised smooth functioning of the production cycle, increased job

security leading to a greater sense of belonging and strengthened industrial relations. As a

result the company did not lose a single day's work due to strikes or lockouts.Employees

were deputed for Multiskill training of fitter trade in different Industrial Training Centers.

Following the success of multi-skilling with workers, the company introduced this concept

with staff members. The objective was to enhance competencies and to enable managers

understand how an initiative taken by their department could affect the productivity and

performance of another department. This broadened the outlook of staff members, making

them think like business managers.


cc

ASCENT PROGRAMME

Small groups have been formulated in order to institutionalize the process of learning, self-

development as well as bringing continuity and inculcating the process of brain storming for

self and organizations development.

Manpower training hours/YearYear 99-00 00-02 01-02 02-03Training hours 4.92 5.28 8.33 12.00

Manpower productivityYear 99-00 00-01 01-02 02-03Productivity (MT/person)

2011 2069 2029 2226

Labour cost

Year 99-00 00-01 01-02 02-03

Labour cost /tonne 63.49 69.63 74.96 88.90


cc

HR training

2001-02 2002-03 Change (%)

Details In-house External Total In-house External Total Over 2001-(%)

Number of Programmes 283 32 315 527 29 556 76.5

Number of participants 4849 55 4904 8794 48 8842 80.3

Man hours 8804 1232 10036 14447 1200 15647 55.91

Average person hours 8.33 12.00 44.05

Executive grade people skill

Qualification %

MBA 5.67

CA/CS/ICWA 2.91

ME/MBBS/MSW 0.58

Post Graduates 12.21

Technical Diploma 19.77

Management Diploma 8.43

Graduates 31.25

ITI 9.30

Inter/SSE 7.85

Below SSE 2.03

OPERATIONAL & QUALITY FUNCTION


cc

Capacity Utilization

In response to a galloping cement demand, Shree has been driving up capacity utilizations

across all its units. In line with its impeccable record of over 100% utilization rate since

inception, company registered an impressive operating rate of 116%. All the more

commendable when compared to the average pan-India operating rate of 94%. Even the

newly started Unit-III recorded 99.3% capacity utilization in its first full year of operations

itself.

Cement and clinker production

Year 2002-03 2003-04 2004-05 2005-06 2006-07

Clinker production

(MT)2.285 2.292 2.483 2.771 3.209

Cement production

(MT)2.747 2.841 3.016 3.220 4.779


cc

Product mix-Blended Cement

Ordinary portland cement(OPC:Red Oxide Cement(ROC))

Year OPC(%) PPC(%)

2002-03 73.39 26.61

2003-04 62.65 37.35

2004-05 59.00 41.00

2005-06 46.00 54.00

2006-07 24.00 76.00

Kiln production


cc

Record Kiln OperationsGood practices in utilizing men and machinery have resulted in outstanding kiln operations.

Kiln-II achieved the twin distinctions of the longest runtime of 337 days as well as the

longest continuous running of 105 days in 2006-07. Highlighting the benefits of sustainable

operations is another fact. A common problem with kilns is stoppage every 3 or 4 months

because of refractory failure. But, at Shree, Kiln-II ran continuously for 9 months without any

shutdown due to refractory failure.


cc

Raw Material Management

Commodity business is dependent upon naturally procured resources for its manufacturing.

The real challenge for SHREE is thus to manage costs and seek alternatives wherever

possible.The fundamental strength of SHREE’s business model starts from its core

competence in raw material management. Its innovative approach and excellent risk taking

capability has its business sustainable.

HiTech Mining

Limestone is the principal raw material in the cement production. The company is committed

to conserve this natural mineral resources to ensure sustainability for long term operations.

Company has been consistently deploying latest technology newer methods of mining.

Company also deployed imported Hi-Tech blast-hole drill machines for improving its

efficiency in its drilling activites.

Manufacturing Practices

Their cement and clinker production exhibit a steady increase over last two years. Cement

production increased 32% to 6.3 million tonnes in FY 07-08. They pursue manufacturing

practices which compare well with world cement industry. They have been awarded highest

rating for the 7th consecutive year by White Hoplema, UK. With continual capacity


cc

expansion, they have gained expertise and knowledge to quickly put new units into stabilized

output mode.

Product Mix

Production of Pozzolona Portland cement (PPC) is both value assertive and eco-friendly. At SHREE

their production of PPC is increasing over the last many years, mirroring industry demand.

Power Consumption

SHREE cement strives to reduce power consumption. It regularly invest in adoption of new

technology and practices for reducing its usage of power. Its unstalled and replaced a range of

energy efficient equipments in the year such as high efficiency fan and motors, VFD etc. it

continually looks at the ways to reduce the idle running of equipment. More finer grinding of

cement lead to more power consumption. The additional cost well recovered through better

price realization.

Quality Philosophy

The company's quality obsession covers the following:

Holistic perspective covering all organisational functions.

Continuous improvement in standards.

Continuous reduction in cost

Strong focus on start of the pipe solutions instead of end-of-th-pipe reviews.

Lapse prevention focus as opposed to a fault-finding culture.

Strong documentation process that enables product complaints to be traced swiftly

and effectively to the root problem.

Performance improvement through knowledge sharing with other plants.

Quality Assurance

Shree markets cement with certificates that testify to the high production standards achieved by the company.


cc

The company's technical officers reach the customer's site to inspect the performance of the material.

Shree conducts special meetings with masons and architects, impressing upon them the quality of its product.

Quality Initiatives

Shree Cement possesses one of the few R&D centres in the Indian cement industry. This

center has been recognised by the DSIR, Government of India. The research team is headed

by a highly qualified and experienced scientist. Shree's R&D center has directly contributed

in the conservation of electrical and thermal energy, an improvement in product quality, cost

reduction, mineral conservation through the intelligent use of fly ash and a waste reduction in

mines through the use of low ash coal.

Computer Aided Mine Planning System

Stacker-Reclaimer for homogenization of lime stone

On-Line Sampling System by Auto Samplers

X Ray Analyzers

Automatic Raw Mix Design Controls by Ramco-Software

On Line Raw meal Blending Control in C.F. Silos

Coal homogenization (Stacker-Reclaimer)

Gypsum homogenization

Fuzzy Logic Control for Kiln operation

Roller Press Control & High Efficiency Separator for particle size distribution

Packing by Automatic Electronic Packers


cc

FINANCE DEPARTMENT

The account department is involved in monitoring the functions of other department thus

ensuring that the unit is functioning as per plan though with minor deviation.

Important functions constitute the following:

o Planning and budgeting

o C.V.A [cash value Added] calculations

o Bill passing for the supplier as well as the contractors.

o Cash as well as bank transactions

o MIS related activities such as generation of MIS and review meetings from

corrective actions.


cc

Planning and budgeting activities are done once a year and budgets so formed are reviewed

quarterly. Quarterly revisions or estimates are essential to transform the yearly data contained

in the budget to operational data pertaining to the immediate quarter incorporating there in

any factors that might have escaped notice during the budget preparation due to the any

reason. Deviations from the budgets are reported in the MIS (CVA is calculated annually for

assessing the performance of the unit in cash terms. Delta C.V.A gives the idea of the cash

value additions done during a year.

Separate cash affiliated to the accounts department does bill passing activity. The payment of

the bill is done in the accounts department. MIS generated from accounts department contains

details of the functioning of all the departments in the line of the consumption patterns of all

the products as well as the by – products etc.

If there are any deviations from the budget or the quarterly estimates that are serious in

natural then there deviations are discussed in the monthly review meetings.

performance has posted a good performance with all round improvement production, sales

and in profitability. A strong demand for celluloic fibre coupled with the company’ strategy

on specilty fibres has driven the performance. The above table gives the details of

performance .

Time office:

The main function of this department id to maintain the records such as Attendance ,Leave and Pay role. They also maintain records of the management, such as the Employee State Insurance (ESI) Provident Fund (PF), Attendance of each employee is maintained by issuing the SWAP cards to the individuals. The time office workers depending on the rules of the government body.

There are 4 major shifts for the workers to work at different time intervals.

Shifts Timings

General 8.30 AM to 5.30 PM

‘A’ Shift 7.00 AM to 3.00 PM

‘B’ Shift 3.00 PM to 11.00 PM


cc

‘C’ Shift 11 PM to 7.00 AM

As on date 155 crore Rs from fund basis limit and 60 crore loan fund basis in which 40 crore is letter of credit and 20 crore is bank guarantee.

Out of 155 crore, 36% is secure from state bank of Bikaner and jaipur.

Working capital demand loan is 90% and cash credit is 10% for which they pay high interest.

Allocation of funds

FMP= 70%

FD= 20%

Liquid funds= 5%

Debt fund= 5%

KEY PEOPLE

Mr. ASHOK BHANDARI ( CFO- KOLKATA )

Mr. NEMICHAND JAIN ( Sn. General Manager of Finance )

Mr. L.K. BHANAWAT ( Sn. Manager of finance )

Mr. SUBHASH YAJOO ( Sn. Manager of finance )

Mr. S.S. KHANDELAWAL ( C.S. )

M/S B.R. MAHESHWARI & CO. NEW DELHI ( Auditor )

M/S K.G. GOYAL & ASSOCIATES, JAIPUR ( Cost Auditor )

M/S P.K. AJMERA & COMPANY ( Internal Auditors )

BANKERS


cc

SBBJ, SBI, ICICI, IDBI, AXIS,PNB,STANDARD & CHARTED, HSBC, CITI BANK

ADVERTISING CONSULTANT

SHRI ALYQUE PADAMSEE

SHREE CEMENT LIMITED

Regd. Office : Bangur Nagar, Beawar-305901, Distt Ajmer (Rajasthan) UNAUDITED FINANCIAL RESULTS

FOR THE QUARTER AND SIX MONTHS ENDED ON 30TH SEPTEMBER, 2008

Rs. in Lac

S.N. PARTICULARS Quarter ended 30.09.2008 (Reviewed)

Quarter ended 30.09.2007 (Reviewed)

Six months ended 30.09.2008 (Reviewed)

Six months ended 30.09.2007 (Reviewed)

Year ended 31.3.2008 (Audited)

1 a. Net Sales 62,918.28 47,602.10 1,24,350.

77 91,702.29 2,10,911.

80 b. Other Operating Income 1,794.19 1,609.06 2,000.86 1,834.48 2,030.39

Total 64,712.47 49,211.16 1,26,351.63

93,536.77 2,12,942.19


cc

2 Expenditure

a. (Increase)/Decrease in Stock in trade and work in progress

1,418.77 (1,126.57)

795.34 (1,875.94)

903.18

b. Consumption of Raw Materials

5,850.18 5,109.48 11,599.32 10,278.81 21,098.97

c. Purchase of traded goods 116.71 146.10 273.12 300.28 618.56

d. Employees cost 2,467.15 1,612.71 4,977.10 3,151.35 7,360.43

e. Depreciation 5,370.17 6,877.15 9,976.12 10,456.81 47,875.86

f. Power & Fuel 15,940.60 8,834.85 31,090.51 17,067.45 36,723.12

g. Freight on Inter-unit Clinker Transfer

1,801.60 446.11 3,401.62 446.11 3,491.39

h. Freight & Selling Expenses 9,509.13 7,573.64 19,736.65 15,286.93 35,976.93

i. Other Expenses 7,537.94 4,891.33 13,145.83 8,700.53 18,498.25

Total 50,012.25 34,364.80 94,995.61 63,812.33 1,72,546.69

3 Profit from Operations before Other Income, Interest & Exceptional Items (1-2)

14,700.22 14,846.36 31,356.02 29,724.44 40,395.50

4 Other Income 1,564.46 1,302.50 2,534.56 2,340.05 5,296.27

5 Profit before Interest & Exceptional Items (3+4)

16,264.68 16,148.86 33,890.58 32,064.49 45,691.77

6 Interest 1,666.89 845.26 3,372.72 1,238.08 4,972.39

7 Profit after Interest but before Exceptional Items (5-6)

14,597.79 15,303.60 30,517.86 30,826.41 40,719.38

8 Exceptional items

- Assets Constructed at Others' Premises W/Off

970.08 - 1,728.24 - 3,888.46

9 Profit from Ordinary Activities before tax (7+8)

13,627.71 15,303.60 28,789.62 30,826.41 36,830.92

10 Tax expense

- Current and Fringe Benefit Tax

3,048.91 4,466.74 7,225.70 8,298.23 12,265.32

- Deferred Tax (170.47) 213.51 (275.35) 213.51 (1,471.60)

11 Net Profit from Ordinary Activities after tax (9-10)

10,749.27 10,623.35 21,839.27 22,314.67 26,037.20

12 Extraordinary Items (net of tax expense)

- - - - -

13 Net Profit for the period (11-12)

10,749.27 10,623.35 21,839.27 22,314.67 26,037.20

14 Paid up Equity Share Capital (Face value Rs. 10 per share)

3,483.72 3,483.72 3,483.72 3,483.72 3,483.72


cc

15 Reserves as per balance sheet of previous accounting year

63,796.81

16 Earnings per share (EPS) (Rs.) -

Cash 45.78 50.85 90.54 94.68 207.94

Basic & Diluted 30.86 30.49 62.69 64.05 74.74

17 Public shareholding

- Number of Shares 1,26,39,468

1,26,39,418

1,26,39,468

1,26,39,418

1,26,39,468

- Percentage of shareholding 36.28% 36.28% 36.28% 36.28% 36.28%

Cement Production in lac ton 17.36 14.52 34.98 28.52 63.37

3358.65 4535.42

Enterprise Resource planning

ERP is actually a process or approach which attempts to consolidate all of a company's

departments and functions into a single computer system that services each department's

specific needs. It is, in a sense, a convergence of people, hardware and software into an

efficient production, service and delivery system that creates profit for the company.

While the idea is easy to grasp in theory, the reality has been different. Most companies have

a conglomeration of different systems and procedures (as well as hardware and software)

designed 'specifically' for their own needs. Employee records (including payroll, medical and

other benefits) are held by Human Resources. Financial data and processing, which includes

payroll computations and employee compensation as well as invoicing and billing for

company products and services, are held by the Finance Department. Production data is held

by manufacturing. Inventories are held by warehousing. Customer orders are held by

Customer Relations, and so on.


cc

The 'dream' of ERP is to have a single software solution integrating the different functions

and activities into a seamless whole where information needed for decision-making is shared

across departments, and the action taken by one department results in the appropriate follow-

up action up and down the line.

The most often-cited example of an ERP software is customer ordering and delivery where a

customer's order moves smoothly from Sales, where the 'deal' is consummated, to Inventory

and Warehousing, which retrieves and packages the order for delivery, to Finance, where

invoicing, billing and payments are handled, and on to Manufacturing, where replacement of

the bought-and-paid-for product is done.

Primary Benefit

Prior to ERP, each department may be considered an independent fiefdom. Once a department's particular function is completed, it no longer cares for what happens afterwards. A customer following up with Sales for his product will be told, "Check with Warehouse", who will then say, "Check with Delivery", who can tell the customer, "Please check with Finance to see if your invoice has been cleared".

Efforts to integrate the system before always met with the stumbling block of different software and procedures. A sales person could not access the finance database to find out the customer's billing status, nor can he easily access the warehouse, inventory or delivery to find out the status of the customer's order.

With ERP, all elements in the supply and production chain can be easily accessed by all those who need the information. This leads to efficiency in customer management and perceived company effectiveness in delivering on customer expectations.

Other Advantages

An oft-overlooked advantage in having a workable and efficient ERP system in place is savings in relation to energy consumption and data management.

Having an ERP system in place implies having a single hardware system to handle the different requirements, translating into reduced power consumption operating off a single database which translates into savings on storage.

The savings generated from a minimum of hardware and storage, coupled with operational efficiencies created from a single system across all departments, translates into measurable profit for the company.


cc

During the year Company has undertaken implementation of an “Enterprise Resource Planning” (ERP) Project with Oracle E-Business Suite to manage its expanding business operations. ERP Project shall help it in improving its business matrices by process optimization, improving logistics and integration across disciplines. The project is expected to be operational in FY 2008-09.

Logistic management

In a material business such a cement,efficient logistic management is the key of higher profitability.when million of tons of low absolute unit cost input and output have to be handle,every penny counts.on an average shree handles approximately 43000 tons of material in a day across 3 location.

Shree witnessed a significant price in logistic cost per ton from rs.324 in the previous year to rs. 484 in the current year.while a part of this was due to increase in fuel cost a majority of this rise isw due to change in pattern of sales.

Challenges

1.the growth in production volumes meant higher dispatches which grew by almost 34%.\

2.the commissioning of the graining unit is almost 6000 tons of clinker had be transopted from Ras on a daily basis. A dealy could mean are shut down at plants as it operated on just in time inventory system .

3 the increase in fuel prices meant that per tone transportation costs would be significantly impacted as company’s new capacity came up at RAS from where rail transport was not possible.

Logistics innovations at shree

Clinker transport to grinding unitThey took several initiatives for economies in freight cost of clinker to their grinding unit commissioned during the year. A separate system of loading at RAS and unloading at KHUSHKHERA , independent from cement loading was established.

Truck turnaround timeThe time that a truck takes to load and unload at the plant premises is directly proportional to the efficiency of the logistics system. In case of road transportation of cement , truck loading time came down from 15.45 hours to 12 hours. For rail transportation loading time for cement was reduced to 10 hours from 10.45 hours and for clinker, it was down to 13 hours from 17 hours.


cc

Benefiting from inbound logisticsThey produce petcoke from Panipat, fly ash from Suratgarh, kota, Panipat and Dadri and gypsum from Jaisalmer and Bikaner. They make sure that these truks are given return load of cement ,so that overall fat is reduced.

Specially designed vehiclesShree devised special closed body trucks designed which can be used to transport multiple materials. They made full use of their railway siding facility available at Beawar. Plants and increased rail loading from 13.67 lac tone to 16.84 lac tone during the year.

A proposal to link Ras plants with Beawar railway siding is under consideration which will pave the way rail transportation from RAs as well in future.

SUGGESTION & RECOMMENDATIONS

Advertising strategies should be revised. More focus should be given on publicity and

awareness among customer should be there.

A price of Bangur Cement is much higher than other competitor’s brands and this lead

to very less margin of profit for retailers. To prevent this type of problem company

should provide more margins of profit & incentives to defer it.

The main & lucrative factor may for Bangur cement is contracted , relation will create

a smooth flow of sales for Bangur cement. So they should make more frequent in

contractor’s meeting.

We often see that retailers would like to sale only that product in which he gains more

profit, so we should give a good margin of profit to retailer.

In sales promotion activity, we should focus on counter meeting, contractor’s meeting

& retailer meeting, in which we can give some gifts and refreshments to contractor,

dealer and retailers.


cc

They should offer POP material and other incentives to push the confidence in Bangur

cement dealers and contractor.

Literature can be provided to stockiest and retailers. This written material will also

help them to advertise and promote the product.

The major problem faced by the retailers is great transparency in prices so company

should make a policy for stability in prices at every stockiest in jaipur city.

Company should also provide more technical services, so they can visit every site &

solve the customer’s problem.

FINDINGS & CONCLUSIONS

Learning is a never ending process which continues from birth of human being to his/her death. It can also be done by reading book and through training and work. Spending 6 days in SHRRE CEMENT LTD. was good learning experience for me. After completing the organization study I come to know that academic learning is different and working in organization and learning is different. After spending such precious time in an organization my major finding in that particular organization are as follows:

Firstly, organization culture of Shree Cement is formal, where every person cannot directly meet to High authority with out any systematic way which I considered was good because it encourages employees at work.

Secondly, organization structure of Shree Cement is well formatted in which each and every department plays important role.

Thirdly, in the organisation structure is divided into to 4 part one is in Finance, Marketing, Operation & Quality, Human and Resources These all departments are headed by different persons but at the same time they work for same objective with full co-ordination which shows the unity level about the organisation.


cc

Fourthly, all the employees and labourers work very hard towards achieving the goal. Even the higher authorities work very hard without wasting time towards the organization goal

Fifthly, security concern in shasun chemicals. doesn’t allow the outsiders to enter into the factory without prior appointment or consulting the higher authorities. They have a very effective security system.

Sixthly, Administrative head role in an organisation very important to make good working environment the practice which I observed was that he was very hard working person and he does his work very efficiently.

Seventhly, marketing department made me to learn about, how the customers can be attracted by giving him innovative thoughts and ideas and benefiting to both the organization and the common people.

Eighthly, an organisation study also makes me learn that any objective cannot achieve with a short span of time it has to be done through systematic ways.

Finally, in any organisation time management play important role because each activity should be done at a right time at right place.

BIBLIOGRAPHY

www.shreecement.com

www.google.com

Annual report of company for the year 07-08

www.wikipedia.com

Bseindia.com

Business world

Many online articles etc.


organisation study on shree cement, beawar

Documents

organization study

organization structures

study period

general study

project report

cc particulars chapter

forces analysis page

cc scope