anand surana project final 9-9-2011

51
Chapter 1: INDUSTRY PROFILE 1.1.1 HISTORY OF CEMENT INDUSTRY Page 1

Upload: anand-c-indi-indi

Post on 06-Apr-2018

221 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 1/51

Chapter 1:

INDUSTRY PROFILE

1.1.1 HISTORY OF CEMENT INDUSTRY

Page 1

Page 2: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 2/51

The history of Cement can be traced to the days of Babylonia and Assyria. The Egyptians used

clay motor in the Pyramids and Romans Produced type of Cement of by mixing Volcanic Ash with

Quicklime which, to this day, is often entirely free from fissures whenever mankind has undertaken to

  build with any degree of permanence and using rock stone or brick, it has been found that some

form of Cement is an indispensable construction material.

Before the development of Portland Cement the Principal Cements were Natural Cement and

Puzzolan. Natural Cement is made from Cement rock, naturally occurring limestone that needs only to be

 burned and pulverized. Puzzolan Cement is a mixture of slaked lime and granulated blast furnace slag.

The history of Portland Cement traces back to 18th Century when a patent for making of Portland

Cement was obtained by Joseph, a brick layer of Leeds, England in 1824. This Cement was called as

Portland cement because when it hardened it produced a yellowish Gray mass resembling in appearancethe stone from the famous quarry of Portland, England. the new Cement did not receive ready acceptance

 because of the established reputation of the natural Cements. it was not the until the 1850 that Portland and

 by 1860 the industry had developed in the European continent, particularly in Belguam, Germany and

France. The industry was well established in Europe before the first patent to produce Portland cement

was granted in 1872 in the US in the year 1904 Portland Cement entered into India since then it has been

one of the major industry Indian economy constituting a major share.

1.1.2 PERFORMANCE OF CEMENT INDUSTRY

India holds the pride of being the second largest producer of cement next to China and the country is

acting as a home for a number of top cement companies. Cement industry in India is growing at a faster 

 pace nowadays with the increasing number of construction projects taking place in different parts of the

country.

Cement Company, in any country, plays a major role in the growth of the nation. Cement industry in

India was under full control and supervision of the government. However, it got relief at a large extent

after the economic reform. But government interference, especially in the pricing, is still evident in India.

In spite of being the second largest cement producer in the world, India falls in the list of lowest per capita

consumption of cement with 125 kg. The reason behind this is the poor rural people who mostly live in

mud huts and cannot afford to have the commodity.

Despite the fact, the demand and supply of cement in India has grown up. In a fast developing economy

like India, there is always large possibility of expansion of cement industry. Above all, the country is

Page 2

Page 3: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 3/51

expecting further growth in this industry in the coming years due to the growth of the top companies in

this sector. The list of top players in the cement industry in India is given below:

1.1.3 List of Top players in the cement industry in India:

• ACC Limited

• Gujarat Ambuja Cements Limited

• Ultratech

• Grasim

• India Cements

• JK Cement Limited

• Jaypee Group

• Century Cement

Some of the details regarding these top players in the cement industry in India is given below:

ACC Limited:

ACC Limited is the one of the prominent manufacturers of cement and concrete in India and they have

several zonal officer, 19 sales officer, 19 ready mix concrete plants and 14 modern cement factories in

different parts of India. They have more than 65 years of experience in cement and concrete production.

Gujarat Ambuja Cements Limited:

This company came into existence in the year 1986 it has seen very good growth during the past decade.

They are presently producing nearly 160 lakhs tons of cement and they are owning some of the state-of-

the-art manufacturing facilities with advanced technological instruments.

Ultratech:

UltraTech is a popular name in the cement industry in India and they have production facilities spread

over eleven integrated plants and most of their plants have received ISP 14001 and 9001 certifications and

OHSAS 18001 certifications as well. Some of their products include:

• Portland Pozzolana cement

• Portland Blast furnace slag cement

• Ordinary Portland cement

Grasim:

Page 3

Page 4: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 4/51

Grasim Industries in the cement sector in India is a flagship of Aditya Birla Group, who are leaders in

different sectors in India. As most of us know Grasim is a popular name in the textile industry in India as

well. This company is operating 10 ready mix concrete units, 4 bulk terminals and 11 composite plants.

India Cements:

India cement is not only a leader in the cement industry in India, but they have also made their mark in the

real estate and infrastructure sector in India. They are one among the preferred cement companies mainly

 because of their quality product offered at affordable cost.

JK Cement Limited:

JK Cement Limited began their operations in the year 1975 and they are leaders in the cement production

in the Northern part of the country. Initially, the company began its operations with a production capacity

of 0.3 million tons of cement and now they have a production capacity of 2.8 million tons of cement. As

far as the manufacture of white cement is concerned, they are the second largest company in India.

Jaypee Group:

Jaypee Group has their largest cement production unit in the state of Uttar Pradesh and some of their 

 popular products include Portland Pozzolana Cement and ordinary Portland cement. In the near future, the

company is planning to expand its cement capabilities through green field additions and acquisition.

Century Cement:

This company is a flagship of the popular BK Birla Group, who has made their presence felt in different

industries like chemicals, rayons, textiles, etc…in India. One of their popular brand Birla Gold has acquire

a very good name in the construction industry in India.

Therefore, the cement industry in India is growing considerably with the help of the heavy contributions

made by these top players and this industry is expected to grow further, which in turn can improve

employment opportunities in the country as well.

1.1.4 Production and Growth of cement industry in India

Domestic demand is one of the chief reasons for the rapid growth of cement manufacturing in India. One

can say that the domestic demand for the commodity has in fact clearly overtaken the rate of economic

growth in the country. It is estimated that the consumption of cement in the country is bound to rise more

than 22% within the next two years. In terms of cement consumption, Maharashtra State leads the list with

12.18%, followed by Uttar Pradesh, whereas in terms of production, the State of Andhra Pradesh leads the

table reporting 14.72% of production. The second place in the manufacturing is bagged by Rajasthan.

Page 4

Page 5: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 5/51

During October 2009, the country produced a total volume of 12.37 MT compared to a manufacturing of 

11.61 MT recorded in the same month during the previous year. The cement manufacturing units are also

motivated to take up their production rate owing to the rapidly increasing demand in the market. Most

encouragingly, the cement companies witnessed a net profit growth rate of 85%. This huge success has

further encouraged the firms in India to account for about 8% of India’s economic development.

Some of the regions where major clusters of cement industries located in India are Satna (Madhya

Pradesh), Yerranguntla (Andhra Pradesh), Chandrapur (Maharashtra), Bilaspur (Chattisgarh), Gulbarga

(Karnataka), Nalgonda (Andhra Pradesh), and Chandoria (Rajasthan).

Technology Up-gradation

At present, the cement industry in the country is undergoing a technological change on account of up

-gradation and assimilation witnessed in the sector. Presently, not less than 93% of the total capacity is

wholly based on manufacturing under the modern dry process, which is deemed more environment-

friendly, while the remaining rest 7% employs old wet and semi-dry process technology.

There is also an enormous scope of waste heat recovery in the cement manufacturing plants that will give

way to reduction in the levels of emission and consequently contribute to environment-friendly practices.

The recent up gradation of technology across the cement industry segment has helped the industry to

enormously conserve fuel and energy and make a huge saving on materials. The cement industry in India

has developed its technical capabilities to produce a range of cement types including Ordinary Portland

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

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

Major Players in Indian Cement Industry

A number of successful companies are leading the cement production in the country. However, about 20

 big firms alone account for over 70% of the total cement production in the nation. The total installed

capacity of cement in the country is found distributed over 129 plants, which are owned by 54 major 

companies functioning from the breadths and lengths of the nation. The major players in the cement

industry in India include ACC, Gujarat Ambuja, Ultratech, Grasim, India Cements, jaypee Group, JK 

Group, Century, Madras Cements and Birla Corp.

1.1.5 Future Ahead of Indian Cement Industry

The annual demand for cement in India is consistently growing at 8-10%. NCAER has estimated after an

extensive study that the demand for cement in the country is expected to increase to 244.82 million tonnes

 by 2012. At the same time, the demand will be at 311.37 million tonnes if the projections of the road and

housing segments are met in reality. However, the realization of this capacity might get delayed on

Page 5

Page 6: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 6/51

account of delay in equipment delivery and construction of plants caused by heavy pending orders in the

 books of suppliers. The crude oil prices have pronounced a heavy impact on the profits made by cement

manufacturers. Once the economic growth passes on this burden to the consumers, this situation will be

eased at the manufacturer end. The government has taken measures to increase the availability of 

indigenous coal for cement manufacturers to bring down production costs.

Developments in the domestic environment and a large number of infrastructure projects have created an

unforeseen demand for cement consumption in India, which is bound to increase manifold over the

coming years. While concrete steps are being taken to bring down, costs, the cement industry is heading

towards a very bright future in India.

1.1.6 List of countries by cement production

This is a list of top countries by cement production in 2010 based on USGS Mineral Program Cement

Report. (Jan 2011)

While the top 3, China, India and USA, didn't change in the last 5 years, declining US production by

36.5% is noteworthy. The most progressing countries in terms of ranking are Turkey (10 th to 4th), Brazil

(13th to 5th) and Vietnam (17th to 9th). All top European cement producing countries except Turkey lost

their rankings (Spain, Russia, Italy, Germany and France), as a result of the global financial crisis.

1.1.7 Recent Mergers and Acquisitions in Cement Industry in India

1. UltraTech Cement is going to absorb its sister concern Samruddhi Cement to become biggest

cement company in India.

2. World's leading foreign funds like HSBC, ABN Amro, Fidelity, Emerging Market Fund and Asset

Management Fund have together bought 7.5% of India Cements (ICL) at a cost of US$ 124.91

million.

3. Cimpor, a Cement company of Portugal, has bought 53.63% stake that Grasim Industries had in

4. French cement company Vicat SA bought 6.67% share of Sagar Cement at a cost of US$ 14.35

million.

5. Holcim now holds 56% stake of Ambuja Cement. Previously it held 22% of stake. The company

utilized various open market transactions to increase its stakes. It invested US$ 1.8 billion for that.

1.1.8 Recent Investments in the Indian Cement Industry

1. In a recent announcement, the second largest cement company in South India, Dalmia Cement

declared that it's going to invest more than US$ 652.6 million in the next 2-3 years to add 10 MT

capacity.

Page 6

Page 7: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 7/51

2. Anil Ambani-led Reliance Infrastructure is going to build up cement plants with a total capacity of 

yearly 20 MT in the next 5 years. For this, the company will invest US$ 2.1 billion.

3. India Cements is going to set up 2 thermal power plants in Andhra Pradesh and Tamil Nadu at a

cost of US$ 104 billion.

4. Anil Ambani-led Reliance Cementation is also going to set up a 5 MT integrated cement plant in

Maharashtra. It will invest US$ 463.2 million for that.

1.1.9 Current Scenario of cement industry.

The Indian cement industry is the second largest producer of quality cement. Indian Cement Industry is

engaged in the production of several varieties of cement such as Ordinary Portland Cement (OPC),

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

Hardening Portland Cement, Sulphate, resisting Portland Cement, White Cement, etc. They are produced

strictly as per the Bureau of Indian Standards (BIS) specifications and their quality is comparable with the

 best in the world.

The Indian cement industry is the second largest in the world. The industry occupies an important place in

the national economy because of its strong linkages to other sectors such as construction, transportation,

coal and power. The cement industry is also one of the major contributors to the exchequer by way of 

indirect taxes.

Indian Cement industry is comprised of 148 large cement plants with around 46 member companies. The

installed capacity of these large cement plants is estimated to be 219.17 million tonne during 2009-10 (as

on March 2009).There are 95 large cement plants with capacity of of million tonnes and above and around

1,40,000 mnpower is employed uder these plants (one Mn.T cement generates downstream employment to

50,000 persons). Also,there are 365 mini and white cement plants with an installed capacity of 11.10

million tonne .

Cement Production & Dispatches.

1Description Jan-11 Dec-10 Jan-10

2010-11 2009-10

(Apr-Jan)

2 Cement Production 14.52 13.59 14.65 136.51 130.85

3 Cement Dispatches 14.47 13.60 14.59 135.56 130.09

Page 7

Page 8: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 8/51

 

Chapter 2:

COMPANY PROFILE

 

2.1 PROFILE OF BAGALKOT CEMENT INDUSTRIES

1. History of company

Page 8

Page 9: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 9/51

2. Growth of the company

3. Product and production process

4. Introduction to various Departments

5. Organization Structure

CEMENT

Cement means any substance, which acts as a binding agent for materials. Cement is produced at

high temperature with intimate mixture of Calcerous, Silicons and Aluminous substances and crushing the

resulting Clinkers to a powder. Cement is the most expensive ingredient in concrete and is available in a

variety forms. The properties of Cement depend upon the Chemical compositions, the process of 

Manufacture and the degree of fineness to which it is ground. When cement is mixed with water, a

chemical reaction takes place as a result of which the cement pastes first sets and then hardness to a stone

like mass depending upon its chemical composition.

2.2 HISTORY OF THE COMPANY

The Bagalkot Cement Company was incorporated on 6 th September 1955. It was started by Late

Shri A.G. Tendulkar. The company started its Production with installation of wet process kiln with a

capacity of 300 TPD in 1960; initially it was started with one kiln, one raw mill and one Cement mill as itsmachinery assets, 1200 strong workforce and 990 acres of land property. The plant produces Portland

cement.

The company was registered with an Authorized Capital of Rs 10, 00,000 ordinary shares of Rs 10 each.

The shares of company are registered at Mumbai; Later on the Company was sold to Shahu Jain Group in

1986, in the 5-year 1971 the name of the company was changed to Bagalkot Cement Industries Limited.

The Shahu Jain Group didn’t find it as a viable unit and handed over the cement plant to Kanoria group of 

Industries in the year 1972.

In earlier days Bagalkot Cement Factory was considered as a totally unviable unit, but now it is

turned out to be one of the best Cement Manufacture units in north Karnataka.

The credit goes to the present Management of the Company under the leadership of shri Ajay

Kanoria. At the time of taking over the unit in 1972, was able to run the old plant by continuous

improvements with some Capital Expenditure to reduce Cost of Production.

Page 9

Page 10: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 10/51

2.3 GROWTH OF THE COMPANY

  The present Management of Kanoria Group Keeping in view of the good prospect for the Cement

Industry has made many changes. In order to economize the Cost of production, Management modernized

the machinery’s and changed the production process from Wet to Dry method. As a result, its capacity of 

  production changed from 90 thousands tones/ annum to 3.3 lack tones/annum. To bring more

Technological changes in production the management reached an agreement with M/s Blue Circle

Industries PLC in 1985. Under the services of BCI, it has been envisaged that the existing capacity

1000TPD will reach to 1200 to 1500 TPD under existing resources only.

To meet the growing needs of the nation, another Wet process Kiln of 300TPD was installed. The

entire machinery for the two kilns was imported from M/s Krupps of West Germany. In order to upgrade

the capacity of the Kiln and bring operational improvement, the company entered into a technical

agreement with PLC UK, who is one of the largest operating cement companies in the world.

The chief advantages of this technical agreement with Blue Circle are:-

1. Sustained increased production of cement.

2. Improved thermal efficiency of the Kiln.

3. Energy conservation.

4. Training.

5. Improved method of plant maintenance

In September 1982, to achieve fuel saving, the two wet process Kilns were replaced by a new

1000TPD dry process Kiln, supplied by ACC Ltd.

The precision and care observed at Kanoria Industries Ltd., throughout the manufacturing process,

reflects in quality and product which surpasses the specifications laid down by the Indian Standards

Institution (ISI).The cement produced undergoes a number of physical tests such as Compressive strength,

Fineness, Setting time, Soundness etc.

Page 10

Page 11: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 11/51

In order to overcome the chronic power shortage of the state electricity grid, Bagalkot has installed

a Diesel Generator set of 4000Kw capacity from Japan. With the assistance of M/s Blue Circle BCIL has

set up a separate training department in the company, which caters to complete training needs of the

managerial, supervisory & operating staff. BCIL enjoys a unique distinction of offering cement in a

variety of packing bags viz. jute, HDPE & paper bags etc. according to customer needs & preferences.

2.4 INFRASTRUCTRAL FACILITIES, INPUTS AND SOURCES

1. Location: The Bagalkot Cement Industries Ltd., Cement Division, is located 2kms away from

BAGALKOT, on 990 acres of own land. Bagalkot town is connected with a Broad gauge Railway

Line. The company has a railway siding up to the factory site. The town is well connected by road

ways.

2. Raw material: The main sources of raw material are Limestone. Bagalkot district is having very

rich sources of limestone belt. The plant is located near the raw material resource. The other raw

material includes silica, gypsum, bauxite etc., which are purchased from outside supplier.

3. Water: Water is quite important, as it is used in the manufacturing process at KIL. The company

has two sources of water, one through municipal connection from Bagalkot Municipal and the

other one from bore well in the factory.

4. Power: The Company has a dual system of purchased and self generated power. To overcome the

chronic power shortage of the state electricity grid, the plant has installed a D.G. Set of 4000Kw.

The plant is dependent on the KEB for the rest of power requirement.

2.5 CONTRIBUTION TO THE NATION & SOCIETY

The company is committed to the goal of contributing to the national growth. It is paying

approximately Rs 10 crores per annum as central excise duty, Rs 4 crores as sales tax to the state Govt.,

about 2 crores as a central sales tax, turnover tax, entry tax, additional tax to the state Govt of Maharastra

and Goa, Rs 3.5 crores of railway freight per annum. Apart from this thousands of families depend on

cement factory for their livelihood.

The company has also committed to its social obligations hence, has provided school, Temple and

has organized medical camps to the employees of the factory and people of Bagalkot.

ENVIRONMENT PROTECTION

Page 11

Page 12: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 12/51

The Company is situated in a full greenery atmosphere and has given prime importance for 

environment protection.

At the time of installation and modernization of the plant, adequate measures were taken to install

 pollution control equipment for the all process equipment’s. Two number of Electrostatic Precipitators

(ESP), one each for Kiln and Raw mill. Number of pulse jet bag type dust collector were installed for 

cement mill, coals mills and packing house etc., at an expenditure of over Rs 1.25 Crs, to maintain dust

emission level within the stipulated levels. Apart from this, the company has invested in the most modern

and advanced equipment’s for blasting operations.

In order to operate all the pollution control equipment’s about 97kw of electric power is required.

Therefore the Company has installed second DG set in 1989 and with this the pollution control

equipment’s has been monitoring strictly in spite of power cuts from KEB by utilizing installed DG sets.

The company has planted about 65000 trees to give aesthetic look to the plant and protect the

environment. The company has fulfilled all the obligations of statutory and non-statutory requirements of 

 pollution control and obtained consent from the pollution control board, Government of Karnataka.

2.6 PRODUCT PROFILE 

BCIL’S cement division produces two types of cement namely,

Page 12

Page 13: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 13/51

1. BAGALKOT CEMENT (PSC Portland slag cement) it is not having any grade. Even after final

reading on 28th days, the strength will increase.

2. BAGALKOT SUPREME (OPC Ordinary Portland cement) it is 43-Grade cement, on 28 th day the

final reading is done. Thereafter the strength of the cement remains the same.

Features of Bagalkot Cement:

Improved soundness

1. Higher long term strength

2. Resistance to attack by sea water 

3. No risk on early age of Thermal cracking

4. Resistance to corrosion proof Reinforcement in concrete

  Application of C ement:

1. Bridges & Fly-over  

1. Roads & pathway

2. Deep Foundation & Marine works

3. Water storage tanks & Reservoirs

4. Marine constructions like Ports, Harbors & Jetties

5. Effluent treatment plants & swages treatment plants

2.7 Customers of Bagalkot cement industries

"Partial list of some of the important customers of BCIL"

 

Academy of 

liberal education,Kurnajibhay

Jadadgurutontadary

vidyapeth

Prabhu lingeshwar sugars,Jamakhandi

Page 13

Page 14: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 14/51

,Gadag

 

Alma motor co,Belgaum Kalayani steels, Ginigera Pragaticonstructions,Dharwad

 

Apmc,Bagalkot Kamala & Venkappa m.agaddi

Charitable,trust. Bangalore

Ramkey engg

Pvt,ltd , Navanagar 

 

Badami sugars limited,Badami Karnataka liberal ltd, Gagad Regal,developers&associates,Udupi

 

Bagalkot D.C Karnataka Land

Army,Corporation,

Karnataka

Renuka,sugarsworks, Munavalli

 

Bellary D.C Kirloskar ferrous ltd, Bevinhdi R.R.Fabricaturs,

Bharuka power corporation,Shivapur K.H. B Hosing Projects Gadag Sandur real

Bilgi sugars limited, Bilgi K.N.Constructions,

Bangalore

Sandurreal,estate,

Sandur 

 

B.L.D.E. Association, Bijapur Koppal D.C SmtK.V.Agadi,EnggcollegeLaxmeswar 

 

Page 14

Page 15: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 15/51

B.T.D.A.Projects , Bagalkot K.P.R Constructions ,Badami Taj Exotica, Goa

 

Dharwad D.C. Mukand ltd, Ginigera The ugar sugarsworks, Ugarkhurd

 

Gadag D.C. Mysore construction company,

Bangalore

Venkateshwar  power  projects,Chikkodi

 

Hospet Ispot corporation,Hospet Nector constructions pvt ltd,Hubli Water treatement plants

Page 15

Page 16: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 16/51

Chapter 3

ORGANISATION STRUCTURE

2.8 ORGANISATION STRUCTURE

  Chairman

  Director

Page 16

Page 17: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 17/51

Mktg Mgr A/C Manag L&P HRD R/M Officer VP (power) Mgr System

 

Regional A/C Officer Personal Officer Mgrs (Stores)

Officer HRD Mgr Elect Mgr DG

Manager Assts

Area Sales Peons Security Purchase Asst Mgr Asst Mgr Elect Asst. Engg

Manager Officer Officer 

 

Sr. Sales Clerk Assts Clerk Junior Engg Operator 

Officer 

Sales Workers Workers Workers

Representative

Sales Asst

Mgr Kiln Sr. Mgr Mines Sr. Mgr Mec Mgr.Instr Sr. Mgr (P&QC)

Burner Engg Asst.mines Mgr Sr.Plant Engg Asst.Engg Asst

Page 17

Page 18: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 18/51

Worker Asst.Engg Plant Engg Mechanic Chemist

 

Foreman Asst.Engg Worker Tester 

 

Worker Junior Engg Worker 

Page 18

Page 19: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 19/51

Chapter 4

Functional Areas

4.1PRODUCTION DEPARTMENT

PRODUCTION PROCESS OF CEMENT PLANT

Cement is manufactured from various methods for eg wet process and dry process. Bagalkot

Cement Industries Ltd., manufacturers cement adopting Dry process method. Various processes in the

 production are as follows.

LIME STONE:

Page 19

Page 20: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 20/51

Lime stone is the basic ingredient in the process of manufacturing cement. As with any cement

making process, they need source of lime. Lime stone is ideal but a hard rock. Lime stone is obtained from

 blasting out in quarry. It contains up to 98 % calcium carbonates.

Before lime stone can be used in the cement making process, it has to be fed into a crusher, where

it is reduced in size to pieces around 20-25 mm across suitable for feeding to the raw mills.

CEMENT CHEMIST’S NOTATION:

Lime CaO ‘C’

Silica SiO2 ‘S’

Alumina Al2 O3  ‘A’

Ferric oxide Fe2 O3 ‘F’

STOCKPILE / BLENDING:

The crushed raw materials are stored for ready to use. In many plants, a blending or homogenizing

stockpile is used in order to assist in checking any chemical variations in the raw materials coming from

the quarries. A stacker builds up layer upon to form the stockpile, such as the longitudinal one.

Depending on the area of the quarry, each layer may be of slightly different chemical composition.

RAW MILLING / BALL MILL:

After mixing in correct proportion, the limestone and shale are fed to a raw mill where they are

ground to a fine powder. In most modern plants, a closed circuit ball milling system is used.

The ball mill is basically steel tube containing steel balls or media ranging in size typically from 90

mm downwards.

The ball gradually grinds the raw materials to fine powder. The mill is usually of single chamber 

design and may be fitted with a classifying lining.

Page 20

Page 21: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 21/51

The lining has the effect of grading the ball sizes, larger balls are kept at the inlet end, when the

larger pieces of raw material have to be broken and smaller balls at the out let end, where the finger 

grinding is taking place.

RAW MEAL BLENDING:

The raw meal is then conveyed to silos for further blending. It is essential for the raw meal to

consist chemical quality, if problems at the kiln stage are to be avoided.

The base of the blending silo is divided into segments covered with porous tiles or canvas. As the

silo is filling, air is blown through the base to keep it clear.

The air flow is then increased to fluidize the meal, making it to act like liquid.

Blending is achieved by arranging up to three times as much air to be blown through one section of 

the bases compared to the others.

A tumbling mixing action is imparted to the raw meal after a predetermined mixing time, or when

the technical department is satisfied that the raw meal is of consistent chemical composition.

RAW MEAL STORAGE;

The raw meal is fed from the blending silos to storage silos below. It is now ready to be introduced

to the next stage of process, the kiln system.

PRE-HEATER (4 STAGE SUSPENSION):

The raw material passes through a pre – heater. These 4 stages of suspension pre-heater is just one

of many types in use. It consists of 4 stages of cyclones.

From the kiln hot exhaust gases enter the bottom of the pre-heater column at the stage- 4 cyclone

and travel upwards through each of the other stages.

The raw meal is fed into the gas duct from the stage- 2 cyclones. The meal is immediately picked

up by the hot gas and carried into the stages 1 cyclone.

Page 21

Page 22: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 22/51

The process continues until the meal falls from the stage-4 cyclone and into the kiln inlet chute or 

hearth. At each pre- heater stage, heat from the hot gases is transferred to the meal. The gases from the

kiln enter the pre- heater at about 1000° C and leaves stage-1 at about 350° C. The raw meal leaves stage-

4 at about 800° C.

CALCINATION:

At this temperature of 800° C the calcination of calcium carbonate takes place in the raw meal that

is conversion of calcium carbonate CaCO3 to lime CaO has started.

About 30% of the Calcination will be taken place by the time the raw meal reaches the kiln.

DUST CONTROL ELECTROSTATIC PRECIPITATORS:

To prevent dust from the kiln system or raw milling system from entering the atmosphere, the gas

is passed through electrostatic precipitators. To maximize their efficiency it is sometimes necessary to

condition the dust laden gas using a water spray, either in the pre-heater or in an external conditioning

tower.

An electrostatic precipitator is a chamber in which electrodes and earthed collectors plates are

suspended.

At the dust laden, gas enters the chambers. It is ionized by an electrical discharger and the dust is

attracted to the collector plates. By vibrating the collector plates periodically, the dust drops into the

 precipitator’s hopper and is returned with the raw meal to the kiln system.

The cleaned exhaust gas, mainly carbon dioxide, Nitrogen and water vapour can then be safely

released into the atmosphere

THE KILN:

The pre-heated partially calcinied raw meal is fed into the kiln, a steel tube typically with a lengthto diameter ratio of 16:01and inclined at an angle of about 3 degree rotates at a speed of up to 3 rpm on a

system of rollers and tyre’s and is driven through a gear mounted around its circumference.

The seals at either end of the kiln are designed to prevent the ingress of cold air and to

accommodate expansion and rotation. The Kiln is lined with refractory bricks and is fired either by coal,

gas or oil at the lower end. If coal is used, it must be first pulverized, often using a ring roller mill. If 

heavy fuel oil is used, it must first be heated to reduce its viscosity and aid atomization.

Page 22

Page 23: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 23/51

Raw meal from the pre-heater enters at the higher end and gradually moves down as the kiln

rotates, heating up as it does so. At first, the rest of the calcinations take place, so that the feed consists

mostly of lime, silica, alumina, and iron oxide, all in a hot reactive state.

The hottest part of the kiln is near the tip of the flame. This is the burning zone where the feed is at

a temperature of around 1450° C and is in partially molten state. It’s here that the four main constituent of 

the feed are combined by chemical reaction from cement clinker.

CLINKER:

Clinker a round ball like structure is a mixture of complex compounds referred to in cements

notations as C2S C3A and C4AF.

GRATE COOLER:

Another type of cooler in common use is the grate cooler. Here in an empty cooler, the

reciprocating grate through which air is blown is visible. As the clinker moves along the grate cooler, air 

cools it and the air itself cools the per-heater prior to entering the kiln, as secondary combustion is blown

through the grate. Some of this excess hot air is used to dry and convey the cool in coal fired plants and

the rest is exhausted to atmosphere after passing through dust arresting equipment. After cooling the

clinker is stored ready for grinding into cement.

CEMENT MILLING:

The mixture of clinker and Gypsum is passed to the cement mill. Outwardly, the cement ball mill

is similar to the raw mill.

The cement mill is divided into, 2 to 3 chambers by perforated steel diaphragms, each chamber 

containing a range of ball sizes, because cement requires finer grinding, the smallest balls are smaller than

those used in a raw mill.

OPEN CIRCUIT MILLING:

Open Circuit Milling is often used for Ordinary Portland Cement, OPC. Here the Cement is ground

to required fineness, in one pass through the mill. 0pen Circuit mills are generally longer than closed

circuit mills for this reason. The ground cement is conveyed directly away and the mill is vented via a dust

filtration system.

CLOSED CIRCUIT MILLING:

Page 23

Page 24: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 24/51

In certain circumstances, closed circuit milling can have the advantages of consuming less power 

overall. The closed circuit system is similar to that used for Raw Milling, a classifier separating out the

coarse fraction of the product and returning it to the mill for further grinding. This is particularly suitable

for rapid hardening cement RHC, which should to be ground very finely.

STORAGE:

From the milling system, the cement is often pumped through pipes by what is basically a screw

fed blower. The high speed screw delivers the cement into a high volume air flow provided by

compressors. The air conveys the cement along a pipeline to storage silos.

DISPATCH:

Cement is bagged, prior to bulk dispatch by either rail or road. The latest packing plants are fully

automatic. For packing, various types of the bags are used like HDPE, polythene bags, paper bags

 

4.2 MARKETING DEPARTMENT

THEORETICAL BACKGROUND

Definition of Market

A market is the set of all actual and potential buyers of a product/service. To understand the

companies, customers, competitors, demand of the product and so on, everyone needs marketing research.

Definition of Marketing Research

1. Some companies use the term market research instead of marketing research. The former term is

accurate for describing research into markets. Their size, geographical distribution, incomes and so

forth. However, it fails to cover the idea of research into the effects of marketing efforts on market,

Page 24

Page 25: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 25/51

for which the term marketing research is more accurate. Marketing research is increasingly coming

into favor as term describing both ideas - Kotler.P

2. Marketing research is on the other hand, a broad and widely used term and is inclusive of 

marketing research activities – Clark & Clarm

3. Marketing research is the systematic objective and exhaustive search for and study of the fact

relevant to any problem in the field of marketing – Crisp .R .D.

4. Marketing research is the systematic gathering, recording and analyzing of data about marketing

 problems to facilitate decision making – Cundiff. F .W. & Still R.L.

5. According to these definitions marketing research is nothing but a systematic study and collection

of information about specific situation pertaining to a particular product.

 SCOPE OF MARKETING RESEARCH

The scope of marketing research is very wide. The development of various statistical techniques

and operation research has widened its scope considerably. It embraces all research activities carried on in

connection with management of marketing work. The eight common activities in order of importance or 

determination of market characteristics development of market potential are market share analysis,

competitive product studies, new product acceptance and potential short range forecasting and studies of 

 business trends.

SIGNIFICANCE OF MARKETING RESEARCH

There are some of the functions leading to the head for marketing research:-

1. It is a tool for decision making.

2. It’s a cause and effect of large scale enterprise.

3. Growth and complexity of markets.

4. It helps to change the pattern of consumption.

5. Reaction in market is required for a systematic study.

6. Marketing research is used in designing marketing operations.

Page 25

Page 26: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 26/51

7. Importance of marketing research in designing marketing strategy.

8. Importance of marketing research in determining in advertising.

OBJECTIVES OF MARKETING RESEARCH

The objective of marketing research and analysis may be stated as follows:

1. To define the probable market for specialized product and to report on general marketing

conditions and tendencies buying habits etc.

2. To asses competitive strength and policies.

3. To estimate potential buying power in various areas.

4. To indicate the distribution methods best suited to the product and market.

5. To known the companies expected shares in the market.

6. To assess the probable volume of future sales.

7. To study the geographical distribution of the market.

8. To known about the customer acceptance of the product.

METHODS OF CONDUCTING MARKETING RESEARCH

1. Desk Research Method

1. Trade journals

2. Restricted Sources

3. Company’s Accounts and Reports

4. Government publication

5. Directories

6. International Agency

7. Salesman’s Reports

Page 26

Page 27: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 27/51

8. Specialized Libraries

9. Periodicals and Books

1. Field Investigation Method

1. Mail order survey

2. Group interviews on panel

3. Personal interviews

1. Structured interviews

2. Un Structured interviews

3. The free interviews

4. The focused interviews

5. Aided recall interview

6. Departments interview

1. Observation Method

Mechanical over- valuation

2. Experimental Method

1. Control group design

2. Salesman reports

3. Factorial design

STEPS IN MARKETING RESEARCH PROCESS

1. The first step consists to carefully defining the problem and setting the survey objectives.

2. The second step consists of developing a plan for collecting data from primary and secondary

sources.

Page 27

Page 28: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 28/51

3. The third step consists of collecting information through the fieldwork or laboratory work.

4. The fourth step consists of analyzing the information to find means variances and various

relationships in the data.

5. The fifth step consists of presenting the main findings to the managers, so that they can make

 better decisions.

DIFFERENT BRANCHES OF MARKETING RESEARCH

1. The product research

2. Industrial equipment research

3. The price research

4. The distribution research

5. The retail shops investment research

6. Shop audit research

7. The Sales Estimate Research

8. Dealers survey research

9. The readership research

10. The Services Research

11. The consumer research

4.3 FINANCIAL DEPARTMENT

Finance is the backbone of any Organization and therefore efficient management of finance leadsthe organization to the success. It is very crucial to any venture adopted at the Corporate and unit

levels. The different sections and there functions are given:

1. MAIN ACCOUNTS: Deals with accounting of official assets, interplant reconciliation,

coordinating section for all accounts, MIS etc.

2. PURCHASE ACCOUNTS: Deals with the payments and accounting of supplies, Bills against

 purchase order of spares and store, ferrous group, ingot mould etc.

Page 28

Page 29: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 29/51

3. CASH ACCOUNTS: Deals with disbursement and receipt of cash as per bills passed by the

officers of various sections.

4. PLANT EQUIPMENTS A/c: Deals with the accounting of IPO investments in planning units and

is related to project.

5. STORES A/c: Deals with accounting and maintenance of stores ledger, receipts, balance of 

receipts.

6. PROVIDENT FUND A/c: Deals with the accounting of provident fund, gratuity etc.

7. SALES TAX A/c: Deals with the accounting of sales tax matters.

8. SALES A/c: Deals with the preparation of invoice & accounting thereof.

9. COST& BUDGET A/c: Deals with standard costing and preparation of cost sheet. It also prepares

 budget of saleable products, import of items and projection of profits generation.

10. RAW MATERIALS A/c: Deals with the valuation of receipt of raw material including ferrous

and non-ferrous items.

4.4 HUMAN RESOURSE DEPARTMENT & ITS FUNCTIONS

1. Human resource planning:

HR functions, analyses jobs, skills, task-present and future project needs and uses statistical

data to plan human resource activity.

2. Recruitment training: 

First of all, notification is made by Company according to the required vacancy in the respective

units. All the further procedure is carried out by HRD.

1. Applications are accepted according to required norms.

2. Scrutinization is done and call letters are sent to the eligible Candidate

1. Candidates are called for test and interview.

Page 29

Page 30: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 30/51

1. After completing the training session successfully and satisfactorily, the trainees are placed

according to their Job specialization.

Special recruitment drive is conducted for local people whose lands have been acquired by

company.

Also recruitment for Sc/St candidates is conducted time to time.

3. Induction: 

 Newly selected candidates are oriented about the organization and its various aspects with help of 

Supervisors under whom they start working as assistant or trainees.

1. Training& Development:

Selected candidates are taken as management trainees and given training according to their 

requirement. Besides these new employees, T&D dept also provides opportunities for learning skills,

information and attitude related to job for old employees.

5. Placement:

The GM of respective shops according to the organization’s needs, places all the trained

workers in the workshop or offices with qualified individuals.

6. Performance appraisal:

The performance of employees is monitored and recorded time to time & again for appraising

the same.

7. Compensation & Benefits:

Company focuses time productivity & talent as the basis of Compensation & Reward.

2.13 OTHER DEPARTMENTS

MINES DEPARTMENT

There they have six quarries, out of six only one quarry is open for mining purpose and here

 blasting is done and limestone is collected. For getting the limestone from the quarry, holes are made

Page 30

Page 31: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 31/51

through drilling machines; the holes are of size of 6-7 mts. After this the stones are explored with the

explosives get the limestone in smaller pieces.

But now there are no mines in Bagalkot. Hence they have purchased land in Kaladagi, near 

Bagalkot where the mines are available. They are getting the limestones from Kaladagi through road

transport.

CRUSHING DEPARTMENT

After mining, the limestone is brought to the crushing department. Here the limestone will be

unloaded into the main crusher and the output will be the size of 4- 10 inches and the same is put into the

secondary hopper and the output will be of 2 inches. After this, it is sent to third hopper, here the size will

 be 12mm and this is send to raw mill through belt conveyors. They were shifting the crushing machine

from the earlier place, which was dissolved in water due to floods.

RAW MILL

The raw mill consisting of a rotating ball machine, which converts the limestone into smaller 

 pieces, thus the limestone coming from crusher will be loaded into rotating ball machine, being made of 

iron, hit the limestone and makes it into smaller of limestone which is return sent to the kiln for further 

 processing.

KILN DEPARTMENT

From the raw mill, limestone which is converted into small particulars which is fed into the kiln,

with iron, added to it in proportion as per the requirements. And later it is heated at a temperature of 1400degree celcius-1500 degree Celsius. And at the end of the process clinker is produced.

CEMENT MILL

From kiln department the clinker through the belt falls into cement mill in which it is divided into

three chamber clinker and gypsum is mixed and made into fine powder state and from here, it is sent

through silo through the conveyor belt.

Page 31

Page 32: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 32/51

PACKING HOUSE

In the silo there is large number of buckets at its bottom, which transfer the cement to the overhead

trunks it is ready for packing and the packing is done automatically. The cement bags packed are of 50kgs

weight.

LABORATORY AND QUALITY DEPARTMENT

The laboratory of KIL s well equipped with all modern instrument of testing cement, here the

cement sample is taken for the test and it is tested on the base of specifications and recommended by ISI

and CEMENT ASSOCIATION OF INDA. The features like setting time, compressive strength limestone

quality composition, gypsum, iron ore and grade of the cement are tested as per the norms. This process of 

testing is a continuous process followed to make the orders. The primary duty of the stores is to see that

the production is stopped.

RAW MATERAL DEPARTMENT :Here every type of material i.e. whatever is required by the factory s

supplied by this department, after receiving and before using the imported raw materials they are very

strictly checked for ordered quantity and quality. The quality checking is usually done in chemical

standards.

This department functions very strictly, as the quality of the finished product i.e. cement depends

upon the quality of the raw materials.

INSTRUMENTATION DEPARTMENT

They are mainly responsible for the work of connecting the machines to the manufacturing process

and setting the machine as per the requirement of the department and in the case of any repairs in the

machines installed these are set right by this department.

COMPUTER DEPARTMENT

Here the entering time and exit time of the employees is recorded in computer through punch

machine, which is computerized, and they also prepare the financial accounts, depot sales, sales

accounting, payrolls, inventory and also maintenance of the machines in the computer department.

This department helps each and every department to maintain the records, manipulate them according

to the requirement, etc, it also aims at installing the recent software to make the work of their employees

easier and accurate.

Page 32

Page 33: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 33/51

4.5 ORGANIZATION ENVIRONMENT CHART

Page 33

Page 34: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 34/51

SUCCESS CHART

Purpose

In what business are we?

Prize Plan

Recognition how we can manage?

Success

 

Page 34

Goals

StrategiesStructure

Policies

Systems

Reward

Punishment

Ownership

1. Culture

2. Management style

3. Interaction process

4. Informal patterns network

1. Tools, equipment

2. Machinery

3. Information tech

4. Job design

5. Workflow design

6. Technical expertise

 

Page 35: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 35/51

Perfectness Perform

We must do it

FACTORS EFFECTING ON JOB BEHAVIOR 

 

Page 35

Page 36: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 36/51

 

Table showing major customers of cement:-

Customers No of Occurrences

Contractors 19

Builders 12

Individuals 19

Architects 7

Institutions 5

Others 7

1. From the above table, it is clear that main customer of cement in Bagalkot District are Contractors,

Individuals, & Builders and next to them are the Institutions, Architects and Others.

2.

Table showing the list of other brands of cement, being deal with, by the dealers of Bagalkot cement.

Page 36

Page 37: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 37/51

Brand of cement No of Occurrences

ACC 13

Rajashree 7

Vasavadatta 12

Birla plus 11

JK cements 11

Keshav 5

Ultra tech 5

Inference drawn

1. Majority of the customers prefer and greenish of the cement.

2. Next to this is the price and Advertisement of the cement.

Table showing strong point of Bagalkot Cement

1 2 3 4 5 6 7 8

1. Price 4 8 8

2. Quality 10 8 2

3. Brand name 7 10 3

4. Credit 10 5 5

5. Packaging 6 14

6. Grade 15 5

7. Service/delivery 8 12

Page 37

Page 38: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 38/51

8. Advertisement 10 10

9. Colour 14 4 2

From the above table,

1) It is clear that the main strong points of Bagalkot cement are economical price and service/ delivery.

2) Quality, brand image, colour & advertisement are the minus points in Bagalkot cement.

1.  Table showing customer ranking for features as per their preferences.

Features Ranks, No of Occurrences

1 2 3 4 5 6 7

1. Quality 25

2. Grade 3 17 5

3. Price 12 9 4

4. Service/delivery 6 18 1

5. Packaging 17 2 2 4

6. Colour 13 12

From the above table, we come to know customer prefer quality as the first preference. The second

 preference is given for colour and remaining feature take the subsequent rankings

1. Customer’s ranking for the features of Bagalkot cement.

Features Ranks, No of Occurrences

1 2 3 4 5 6

1. Quality 3 20 2

2. Advertisement 5 20

Page 38

Page 39: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 39/51

3. Price 10 11

4. Service/delivery 13 12

5. Packaging 11 10 4

6. Colour 5 20

As per the customer perception, quality, colour, & advertisement are the weak feature of Bagalkot

cement.

Table showing rankings of the most effective media of advertisement of cement

Media’s Ranks , No of Occurrences

1 2 3 4 5

Press Advertisement 14 8 8

Radio Advertisement 10 10 10

Meetings / Seminars 25 5

T.V. Advertisement 9 9 12

Wall painting 4 10 16

From the above table, we come to know, the most effective media of advertisement of cement is meeting /

seminars and next to this wall paintings and TV advertisement.

How attractive are these markets for Bagalkot Cement?

The factors that determine the attractiveness of the market are the market size, market growth rate,

nature of the market, competitors, and brand loyalty, profit margin for dealers, technological change and

substitutes for the product.

The structure of cement market in India is of oligopoly nature. It is characterized by a few major 

sellers, where in the action of any individual sellers have influence upon his rivals.

Page 39

Page 40: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 40/51

So according to the survey , It is quite clear that if management of the company gives more attention

towards sales promotion activities and more incentives to dealers ,company can grow its market. The

company has got more scope if it leaves an impression on dealers, as they are the final agents to push over 

to the market. The company has got quality. It is geographically well placed. The price of Bagalkot

cement is Rs 220 /bag which is comparatively less than other cement brands. The company should be

aware of the entry of other brands in the market.

VISION, MISSION AND OBJECTIVES OF THE COMPANY

Bagalkot Cement Industries Limited is Karnataka foremost manufacturer of cement and ready mix

concrete with a countrywide network of factories and marketing offices. Established in 1955, BCIL has

 been a pioneer and trend-setter in cement and concrete technology. BCIL brand name is synonymous with

cement and enjoys a high level of equity in the Indian market. Among the first companies in Karnataka to

include commitment to environment protection as a corporate objective, BCIL has won several prizes and

accolades for environment friendly measures taken at its plants and mines. The company has also been

felicitated for its acts of good corporate citizenship.

The cement industry successfully implements a dialogue and communications strategy, tailored for 

different types of stakeholders, that improves the industry’s understanding of stakeholder issues and

concerns. This feedback is used by industry in its business planning and in its drive towards sustainability

alignment.

To become a leading creator of Shareholder Value in the cement Industry

We will use the ENERGY of our people, and implement LEADING EDGE technologies and on both to

deliver effective world-class solutions to our customer.

Company wants to achieve all these Targets

1. Wants to improve his production capacity.

2. Wants to make a positive mind set in customer for using our cement in slab.

 

Page 40

Page 41: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 41/51

MISSION STATEMENT

1. We will provide products of superior Quality at competitive price and ensures sustained

 profitability and growth.

2. We will protect the interest of all concerned Promoters, Shareholders, Customers, Distributors,

Employees, Community.

3. We believe in fair trade practices, principles of integrity standard and strive for total customer 

satisfaction, keeping the environment friendly.

4. We believe that our people are the most valuable assets, personal and organizational growth

synonymous.

5. We will treat our people with dignity, look after the safety, welfare of individuals and their 

Families.

6. We will be a World Class organization through leadership, in production, efficiency, cost of 

leadership by achieving the lowest consumption levels of fuel energy and raw materials.

We will continue to be a moving force in our national progress

OBJECTIVE

“NO HARM ANYWHERE TO ANYONE ASSOCIATED WITH KIL”

“NO HARM” means:

 No fatalities

 No disabling Injuries

 No Lost Time Injuries No Medical treatment Injuries

 No First Aid Injuries

 No Occupational Illness

Page 41

Page 42: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 42/51

“ANYONE” means:

Employees

Contractors personnel on site

Ready-mix drivers on job

Third party contractors on site

Visitors to KIL site

Chapter 5

SWOT ANALYSIS

Page 42

Page 43: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 43/51

SWOT ANALYSIS

From the survey conducted in and around Bagalkot region and the opinions collected from

Engineers, Contractors, Individuals and Dealers, the company’s environment scenario can be examined by

SWOT analysis

STRENGTH:

1. It’s more workable in Coastal area.

2. Abundance of Lime stone (raw material) available in the region.

3. Its local brand & can be capitalized around Bagalkot surrounding area.

4. It has a formal technical collaboration with M/S Blue Circle Industries Ltd., PLC,UK 

5. A large number of dealers network helps in facilitating better width and depth of penetration in the

market.

WEAKNESS:

1. Lack of marketing oriented activities or strategies due to more sales orientation and profit

consciousness lags to capture the market.

2. There are no interactions in the means of meetings and seminars with Dealers.

3. No preference to localities.

4. No benefit, schemes & Incentives to dealers.

5. People prefer Brand names like ACC, Vasavadatta, L&T, Rajashree,

Page 43

Page 44: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 44/51

6. Inadequate training and orientation just in the marketing strategies and advertisement

OPPORTUNITIES:

1. The company can look forward for a bigger market by changing the name of the product.

2. By utilizing existing dealer’s network and skill force, they can look forward for more ventures in

coastal areas.

3. Until Company attains reputation in the market and captures the heart and mind of people,

company should promote their brand by selling at lower price than their rivals brands.

THREATS:

1. Due to more consciousness towards pollution control social groups in the region will provoke

 public to stop the production.

2. As transportation is costing the company for more than 30% the company should look for other 

means of transporting (for e.g. railways)

3. Due to environmental problem and global warming there is shortage of rain in the state, which will

affect the generation of power. The company has to solely depend on its DC.

4. As the utilization of Slag in the production of Bagalkot Shakti is more vital, the problem occurs

during storage and dumping.

5. Compared to other company the technology of the plant is quite old.

Page 44

Page 45: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 45/51

CHAPTER-5

FINDINGS, SUGGESTIONS AND CONCLUSIONS

Page 45

Page 46: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 46/51

5.1 FINDINGS:

1. Over head of the firm was increasing as compare to its previous year. The prime cost in 2008-

09 15,00,65,350 and in 2009-10 it was increased to 20,05,42,500 and 2010-11 it was increased

to 25,02,00,300 .

2. The work cost in 2008-09 18,06,94,920.00 and in 2009-10 it was increased to 23,04,16,555.00

and 2010-11 it was increased to 29,03,80,520.

3. Cost of goods sold increasing as compare to its previous year.

4. Cost of production: The cost of production in 2008-09. 20, 64, 85,020 and in 2009-10 it was

increased to. 26, 30, 58, 580 and 2010-11 it was increased to 321,494,500.

5. Company try to increase wealth maximization, BCIL has less manpower comparing to work 

load so BCIL has to recruit skilled worker to improve the quality of the work.

Page 46

Page 47: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 47/51

5.2 OBSERVATION AND SUGGESTIONS

After conducting the market survey on the company’s brand cement “Bagalkot Shakti” in and

around Bagalkot region the following observation are made:

 

Out of the sample size of 25 dealers given to me, I could meet 20 dealers, for this the reasons being

some of them have shifted their shop to other areas and few were out of station.

1) The colour of the Bagalkot Cement is one of the major causes for its poor sale in Bagalkot

district. Most of the dealers are unsatisfied with the present color of the cement, they complain about the

whitish color of the cement after curing, which is not desired by Contractors/Engineer/Builders and

individual Customers.

2) Next to this, huge problem of advertisement, which when compared with other brands of 

cement like ACC, Vasavadatta, JK, Rajeshree and Keshav is very stumpy. So it becomes very essential for 

Bagalkot cement to widen its advertising campaign.

3) Instability in the rate of cement is affecting the sales pattern and this to some extent harming

the credibility of Bagalkot Cement in the market.

4) Bagalkot, Badami, Bilagi, Mudhol, Jamkhandi, Hunagund, Ilkal, Markets are to a large extent

dominated by Acc cement. It is due to aggressive advertisement and hectic sales promotion and large

amount of incentives given to dealers. In these areas sale of Bagalkot cement is poor and public awareness

is also not up to the level. It is due to absence of technical seminars and frequent dealers meet.

Page 47

Page 48: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 48/51

5) In cities like the above mentioned, ACC which has brand awareness and its high perceived

quality stands first. People in such places find paying a buck more rather than go for other brands. But

dealers here are not satisfied with the supply of those cements.

SUGGESTIONS RELATING TO COST ANALYSIS

As prime cost, cost of production are increasing in the firm exercise cost reduction and cost control

techniques like material control, labor control, over head control, capital control.

1. As the raw material cost is increasing the firm should use new techniques to reduce it like,

a) the firm allowed near to the sources of raw material

 b) Reducing raw material using in production down time.

1. Company should select effective & cheaper market techniques. It helps to reduces cost of goods

sold.

2. Company should try to increase its profit and at least maintain this type of financial position.

3. Company should control its fixed costs its help to reduce the cost of production.

4. Company try to increase wealth maximization, BCIL has less manpower comparing to work load

so BCIL has to recruit skilled worker to improve the quality of the work 

Page 48

Page 49: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 49/51

5.3 CONCLUSION

India is a largest consumer of cement in the word, India is 3 rd largest producer with total

 production capacity exceeding 102.2 MT, including mini sector. China & Japan stands first & second in

the world in the production of cement.

.

In this study the attempt is to made analysis of the sample unit. Since the BCIL Ltd is facing

heavy competition in an around area of the region, it is essential to focus on the aspect of cost, profitability

etc.

It should try to increase wealth maximization, Cost production is increase it will effect to profit

and sale of cement, Cost accounting is a recent development. It is the branch of financial accounting. It

maintain the records unit wise, process wise, job wise department wise, we can easily control in reduction

of costs by preparation of the statement unit wise or job wise.

 

5.4 LEARNING

Page 49

Page 50: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 50/51

1. An insight about the corporate culture and the functioning of various departments of the

organization.

2. A better insight into the cement industry

3. Functioning of an organization and expectations in the work place

4. Practical usage of financial concepts in the company.

 

BIBLIOGRAPHY

Page 50

Page 51: Anand Surana Project Final 9-9-2011

8/3/2019 Anand Surana Project Final 9-9-2011

http://slidepdf.com/reader/full/anand-surana-project-final-9-9-2011 51/51

1. Company’s websites

2. Manuals provided by the company

3. Interactions with various departments

BOOKS

1. Khan & Jaim ( Cost accounts)

2. Baligar.G.B ( Cost accounts)

3. Reasearch methodology by cooper 

WEBSITES

1. www.bagalkotcements.com

2. www.economywatch.com

3.