final ir project

Indian Rayon

GENERAL ORGANIZATION STUDY

A PROJECT REPORT submitted by

ASHOK JIVANI

Batch:- 2008-10

Roll no:- 08077

TO

Director (PGDM)

In partial fulfillment of the requirements of

Tolani Institute of Management Studies, Adipur

For the award of the degree of

Post Graduate Diploma in Management

Tolani Institute of Management Studies

Adipur – 370205

JULY 2009


Indian Rayon

ACKNOWLEDGEMENT:

“Change is the Law of Life, Challenge Is the Aim of Life” to experience

the vast growing change of industries and challenges attached to working

environment in India. Summer training is the best period to know the integrity

of corporate world. On my knowledge-enhancing sojourn to Veraval for summer

placement at INDIAN RAYON (A ADITY BIRLA NUVO LTD). Who has given

me lot of insight into the intricacies of FINANC profession in such a short stint.

No words of appreciation shall however suffice to acknowledge the guidance,

help, support and cooperation meted out to me at the organization. In this brief period,

I was afforded lot many opportunities to interact with many professionals of different

fields only to enlighten me and open up new vistas of my limited knowledge the doors

of which would have remained closed had this opportunity not been granted to me.

I am very thankful to MR. RAHUL MOHONOT (President), who has given

lot of inspiration recognition to me. The ACCOUNT team who taught me many

practical lesson MR.SHUDHIR MISHRA (Gen, Manager and Finance.),

MR.SATISH SHAH (Assistant manager). Mr. P. N. RAO (Sr. President Of Hr),

Miss. AAKANSHA TYAGI (HR. Officer) and Miss. SHRADDHA MEHTA. The

main vidya or treasure of knowledge it was impossible without Mr. J.V.DAVE

(Librarian) providing books and journals and above all a real guidance to me.

Also I pass on my heart-felt gratitude to all my faculty teachers for inculcating

such a uniquely wonderful and yet enlightening exposure only to enhance one’s

knowledge, skills and aptitude. For which I shell ever be indebted & profoundly

obliged.

Great thanks for support and blessings of almighty and my parents.

ASHOK JIVANI


Indian Rayon

CONTENTS:

Description Page NO.

Acknowledgement 2

Contents 3

List of tables 4

List of figures 4

List of Abbreviation 5

Abstract

1.INTRODUSTION

1.1 PROJECT

1.2 INDUSTRY

1.3 COMPANY

1.4 REVIEW OF LITERATURE

10

10

12

13

128

2. General Department 8

3. Production Department 27

4. Personal Department 51

5. Marketing Department 70

6. Finance Department 96

7. Methodology 125

8. Recommendations 131

9. Conclusion 132

Appendices 134

Bibliography 149


Indian Rayon

LIST OF TABLES

S.no Table title Page No.

1. Production Capacity 37

2. Worker & Staff 56

LIST OF FIGURESS.no Table title Page No

1. Domestic Competitors – VFY 82

2. Domestic Market Share 83

3. Export Share 83

4. Caustic Market Position 84

5. Performance IR 102

6. PBIT 102

7. Production 103

8. Sales 103

9. Capital Structure 104

10. Capitalization 105

11. Current Assets 112

12. Dividend Distribution 121

13. Profitability Ratio 122

14. ROE 123

15. Net Profit Ratio 123

16. Current Ratio 124


Indian Rayon

Abbreviations:

IR: Indian Rayon

VFY: Viscose Filament Yarn

Dept: Department

CFO: Chief financial officer

WCM: World Class Manufacturing

GRN: Good Receipt Note

TPM: Total Production Management

EOQ: Economic Order Quantity

ABC: Always Better Control

SRTEPC: Synthetic Rayon Textile Export Promotion Council

JIPM: Japanese Institute of Plant Management

IREU: Indian Rayon Employee Union

RMS: Rayon Mazdoor Sangh

IRKM: Indian Rayon Kramchari

CFD: Corporation Finance Division


Indian Rayon

EXECUTIVE SUMMERY:

The study undertaken by the student is mainly focused on the “Organization

Study” management as well as the getting exposure of all the department of the

organization and analysis of financial performance of Rayon division of Indian

Rayon.

The organization is a large scale successful player in VFY and Chemical

business. It has strong finance structure and good reputation in the market. The

management of the organization does the utilization of assets and funds effectively

and efficiently.

The study undertaken with aims of following objectives.

To determine the various technical’s for managing continuous flow of raw

materials, store and spares.

To determine the collection and the distribution procedure of the organization.

To determine the accounting policy and reporting system of the organization.

Analysis of financial ratios.

Thus, this report contains the component of working capital management

system, ratio analysis etc. of the organization.


Indian Rayon

DECLARATION:

I hereby Ashok Jivani declare that I have undertaken training at INDIAN

RAYON ( A UNIT OF ADITYA BIRLA NUVO LTD). I have prepared my report

on Organization Studies at ADITY BIRLA NUVO LTD.

All the matter and content involved in this report is original.

All the analysis and findings are done by me.

All the information and figures have been taken from different sources.

Place: Verval

Date: 10-07-2009

Jivani Ashok

PGDM SEM- I I

ROLL NO: 08077


Indian Rayon

GENERAL

Department:


Indian Rayon

INDEX

GENRAL DEPARTMENT:

Sr. no Particular Page no.

1 Introduction 10

2 History & Development 16

3 SWOT Analysis 17

4 Board of Directors 20

5 Plant Location 21

6 Organization Structure 22

7 Size form of organization 23

8 Implements of 5’s 25

9 Vision & Mission 26

10 Group Value 26


Indian Rayon

1. INTRODUCTION

1.1 Project:

The project has been done on General organization study at INDIAN

RAYON. The project has been conducted specially at finance, marketing and HRM

department of INDIAN RAYON. The analyses are done on INDIAN RAYON but

some of the analysis are done on INDIAN RAYON (A UNIT OF ADITYA BIRLA

NUVO LTD) as a whole.

This topic was selected by me because of criticalities involved in managing

the organization study. I selected this topic to learn all the concepts related to

industry. I chose INDIAN RAYON for this purpose as INDIAN RAYON is a

successful company.

Every business needs investment to procure fixed assets, which remain in use

for a longer period. Money invested in these assets is called ‘Long term Funds’ or

‘Fixed Capital’. Business also needs funds for short-term purposes to finance current

operations. Investment in short term assets like cash, inventories, debtors etc., is

called ‘Short-term Funds’ or ‘Working Capital’. The ‘Working Capital’ can be

categorized, as funds needed for carrying out day-to-day operations of the business

smoothly. The management of the working capital is equally important as the

management of long-term financial investment.

This project contains all the concepts which are considered by the

manufacturing organizations. I have tried to deal with all the concepts and have learnt

many important concepts.


Indian Rayon

PROMOTER:

ADITYA VIKRAM BIRLA

(November 14, 1943 – October 1, 1995)

A formidable force in Indian industry, Mr. Aditya Birla dared to dream of

setting up a global business empire at the age of 24. He was the first to put Indian

business on the world map, as far back as 1969, long before globalization became a

buzzword in India.

The Aditya Birla Group, Epitomizing the philosophy of its Legendary leader –

the late Aditya Vikram Birla – one man who Made a difference. Rooted in Indian

values, yet global in vision.

Rock solid in fundamentals. Nurturing a culture where success does not Come

in the way of the need to keep learning afresh, to keep Innovating, to keep

experimenting. Transcending the conventional Barriers of business to send out the

message that it cares.


Indian Rayon

1.2 Indian rayon :

Indian Rayon & Industries Limited (IRIL), a Rs 15.95 billion Aditya Birla

Group company, operates a wide range of businesses. Incorporated in September

1956. As a part of its backward integration process, IRIL set up a 33,000-tone caustic

soda plant with bi polar membrane cell technology from Krupp UDHE Gm of

Germany Located at Veraval in Gujarat, the Caustic Soda Division was commissioned

in 1997.

A 50 TPD Flaking plant was commissioned in January 1998. In the

process ,Caustic Soda Lye Chlorine & Hydrogen gases are simultaneously produced

from cells as by products. The Capacity of Caustic Soda is 100 TPD, Chlorine gas and

Hydrogen gas are 88.60 MT and 29400 nm3, per day respectively. The Chlorine and

Hydrogen gases produced from cells are further purified in respective sections. The

products produced are of high quality since the process demands very high quality of

raw materials. The Hydrochloric acid is produced with chlorine and Hydrogen gas.

The capacity of HCI is 90 TPD on 32%. About 30 per cent of Caustic Soda is for self-

consumption and remaining is for sales Caustic soda lye produced is of 32%

concentration , chlorine and hydrogen are produced as gases from cells. These two

gases are further purified in respective sections. The Plant is divided in to the

following sections Brine Section Catholyte & Acolyte Handling Chlorine

Liquefaction ,Hydrogen Bottling, Caustic Evaporation & Flaking Hydrochloric Acid

Synthesis Sodium Hypo Chlorite. There are five chemical plants – Acid plant, Carbon

– Disulphide plant, Water treatment plant, De-mineralization plant and effluent

treatment plant.


Indian Rayon

Transcending the conventional barriers of business to send out a

message that "We care".

1.3 introduction to Aditya Birla Group :

The Aditya Birla Group is India’s first truly multinational corporation. Global

in vision, rooted in Indian values, the group I driven by a performance ethic pegged

on value creation for it multiple stakeholders. A US $ 7.5 billion conglomerate, with

a market capitalization of US $ 8.5 billion, it is anchored by an extraordinary force of

72,000 employees belonging to over 20 different nationalities. Over 30% of its

revenue low from it operations across the world. The Group’s products and services

over distinctive customer solutions. Its 72 state of art manufacturing units and sect

oral services span India.

A US $28 billion corporation, the Aditya Birla Group is in the league of

Fortune 500. It is anchored by an extraordinary force of 130,000 employees,

belonging to 25 different nationalities. In India, the Group has been adjudged "The

Best Employer in India and among the top 20 in Asia" by the Hewitt-Economic Times

and Wall Street Journal Study 2007. Over 50 per cent of its revenues flow from its

overseas operations.


Indian Rayon

The Group operates in 25 countries — India, UK, Germany, Hungary, Brazil,

Italy, France, Luxembourg, Switzerland, Australia, USA, Canada, Egypt, China,

Thailand, Laos, Indonesia, Philippines, Dubai, Singapore, Myanmar, Bangladesh,

Vietnam, Malaysia and Korea.

Aditya Birla is organized into various subsidiaries that operate across different

sectors. Among these are viscose staple fibred, non-ferrous metals, cement, viscose

filament yarn, branded apparel, carbon black, chemicals, Modern retail (under the

'More' brand of supermarkets, and also under the Trinethra, and Fabmall brands until

recently), fertilizers, sponge iron, insulators, financial services, telecom, BPO and IT

services. The Group consists of four main companies, which operate in various

industry sectors through subsidiaries, joint ventures, etc. These are Hindalco, Grasim,

Aditya Birla Nuvo, and UltraTech Cement. The Group has been adjudged the best

employer in India and among the top 20 in Asia by the Hewitt-Economic Times and

Wall Street Journal Study 2007.

The origins of the group lie in the conglomerate once held by one of India's

foremost industrialists Mr. Ghanshyam Das Birla. He bequeathed most of these

companies to his grandson, Mr. Aditya Vikram Birla – the father of the current

Chairman of the group, Mr. Kumar Mangalam Birla. Mr. Kumar Mangalam Birla is

the grandson of Mr. Basant Kumar Birla, who heads his own independent business

conglomerate. Several other members of the Birla Family, own and run their

independent business groups.

Globally the Aditya Birla Group is:

A metals powerhouse, among the world's most cost-efficient aluminum and

copper producers. Hindalco-Novelis is the largest aluminum rolling

company. It is one of the three biggest producers of primary aluminum in

Asia, with the largest single location copper smelter.

No.1 in viscose staple fibred.

The fourth largest producer of insulators.


http://www.adityabirlainsulators.com/

http://www.grasim.com/

http://www.novelis.com/

http://www.hindalco.com/

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

http://en.wikipedia.org/wiki/Non-ferrous

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

Indian Rayon

The fourth largest producer of carbon black.

The 11th largest cement producer globally, the seventh largest in Asia and

the second largest in India.

Among the world's top 15 BPO companies and among India's top four.

Among the best energy efficient fertilizer plants.

In India:

A premier branded garments player.

The second largest player in viscose filament yarn.

The second largest in the chlor-alkali sector.

Among the top five mobile telephony companies.

A leading player in life insurance and asset management.

Among the top three supermarket chains in the retail business.

Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where

success does not come in the way of the need to keep learning afresh, to keep

experimenting.

Beyond business — the Aditya Birla Group is:

Working in 3,700 villages.

Reaching out to seven million people annually through the Aditya Birla

Centre for Community Initiatives and Rural Development, spearheaded

by Mrs. Rajashree Birla.

Focusing on: health care, education, sustainable livelihood, infrastructure and

espousing social causes and running 41 schools and 18 hospitals.

History& development :


http://www.adityabirla.com/social_projects/overview.htm

http://www.adityabirla.com/social_projects/overview.htm

http://www.morestore.com/

http://www.birlasunlife.com/BirlaSunLife/Mutual_Fund/BSLAMC_MP/index.aspx

http://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/index5.aspx

http://www.ideacellular.com/

http://www.adityabirlanuvo.com/indianrayon/index.aspx

http://www.adityabirlanuvo.com/maduragarments/index.aspx

http://www.adityabirlanuvo.com/indogulf/index.aspx

http://www.minacs.adityabirla.com/

http://www.grasim.com/

http://www.birlacarbon.com/

Indian Rayon

Indian Rayon & Industries Ltd. Incorporated in 1956 by Morarji.j.Vaidya for

the production of rayon filament yarn, Indian rayon & Industries was taken over by

Aditya Birla in 1966. It was formally known as Indian Rayon Corporation Ltd., which

is 1600 cr. Multi-product, and multi-location industrial conglomerate, a part of Aditya

Birla Group.

A group consolidating its position under the chairmanship of Shri Kumar

Mangalam Birla taking the aspirations from the legacy of a leading industrialist, Late

Shri Aditya Vikram Birla. The organization of a long, illustrious & magnificent

legacy spread over a period of 125 years. The organization came on the sphere of

Rayon Industry in 1963, where Late Shri Lal Bahadur Shashtri laid down its

foundation stone.

Shri Morarji Vaidya of Vaidya Group started this organization with production

capacity of 4MT per day in collaboration from Von-Kohom International of USA. In

1966 it was taken over by Shri Aditya Vikram Birla and since then has been a part of

the AV Birla combine.

In 1976, it was merged with Jayashree Textile & Industries, which owned 3 textile

units & an insulator Unit. Indian rayon & industries limited, a flagship company of

the Aditya Birla Group, is among India’s top 25 corporations with a turnover of over

Rs.15 Billions.

SWOT Analysis:


Indian Rayon

The overall evaluation of division like strengths, weakness, opportunity and

threats is called SWOT analysis.

Strength:

Yarn produce here is of high quality then also management always tries to

increase the quality of yarn in order to fulfill their potential customer and new

ones. Total produced items+ wasted are being sold; this shows the efficiency

of sales activity.

Better pacing, carriage and transportation system with all modern equipment

and good after sales service.

Regular meeting and seminars are conducted in the entire department in order

to find our loopholes and solve the same.

Division also have continuous spinning yarn department in which the modern

technology is used for the spinning the yarn and its is adopted fro Germany.

Divisions have domestic as well as export market and for this they are doing

the Internet marketing in order to find new markets.

Division has WCM (World Class Manufacturing) ceil in which they look out

for better way of manufacturing.

ISO 9002 for the better quality of the production carries division.

Division is certified by ISO 14001 for the good environment management

system, for their division has hoti-culture department in order to look to the

surrounding environment.

Weakness:


Indian Rayon

Cost of production is more due to existence of very old technology installed in

this division.

Many process steps and process is more sensitive to normal process variations.

Division is unable to pay more attention toward proper human resource

management.

Location away from consuming centers.

Bigger process cycle/higher process stock.

Opportunity:

Division should find new market area for its products specially chemicals.

More research activity should be done, as there is chance of finding new

markets.

VFY use for certain textile items is specific and indispensable.

Quality has ore weight age in international market. Indian rayon Pot Spinning

Yarn is next to Asahi Japan and better than Chinese and Russian Yarn used in

international market.

Biggest opportunity, when opening up of global market MFA expires in

2005. Quota restriction will boost the export of yarn directly and though

Textile in World’s tows biggest market Europe an US.

Threats :


Indian Rayon

Government policies are the main hurdles of the division’s performance.

Emergence of cotton threads made the market share of Rayon Yarn low.

Fashion changes are also basic threats for such division.

The Viscose Process is highly polluting. The basic raw material (pulp) is again

pollution prone.

Challenges ahead

The Rayon division along with the industry facing the following challenges.

Comparatively poor quality.

Unregulated dumping of the products from China.

Higher cost per Kg. of production.

Sustaining sales volume.

BOARD OF DIRECTORS:


Indian Rayon

Chairman; Mr. Kumar Mangalam Birla

President: Mr. Rahul Mohnot

JT.President (F&C) Mr. D.P. Modani

JT. President (Marketing): Mr. K.D. Joshi

SR.VICE PRESIDENT (HR): P. Narsimah Rao.

Chief Finance Officer: Mr. Adesh Gupta

Company Secretary: Mr. Devendra Bhandari

Advisors: Shri M.C. Bhareja

Shri S.B. Agrawal

Shri R.I. Bawala

Auditors: Khimji Kunwarji & Co. Mumbai

S.R. Batliboi & Co

Registered office & corporate office:

Indian Rayon Indian Rayon

Junagadh – Veraval Road, (Corporate Finance Division)

Veraval – 362 266, Gujarat (India) A-4 Aditya Birla Centre,

Tel.: (02876) 245711 S.K. A hire Marge,Worli,

Fax: (02876) 243220 Mumbai-400 030.

E-mail: [email protected]

PLANT LOCATION:


Indian Rayon

For any Company the location of its manufacturing unit (plant) is very

important. Easy availability of raw material, cheap labors, Transport etc are better

features for selecting location of plant.

For IR (Indian Rayon) transportation through sea route is easy, as it is located

at sea cost of Veraval. By sea route raw material is imported from foreign countries. It

also Export through sea route.

It has large demand local market so they are very near to market E.g.: -

Gujarat, Maharashtra, Chennai, and Delhi.

SR.

NO

COMPANY KEY PRODUCTS AND SERVICES

01 GRASIM Viscose staple fiber, cement sponge, iron textiles,

exports, software consulting

02 HINDALCO Aluminum

03 INDIAN RAY ON Viscose filament yarn, textiles, insulator, carbon black

04 INDO GULF Fertilizers, copper

05 BIRLA GLOBAL FINANCE Financial services

06 HIGI INDUSTRIES Files, casting gases

07 ESSEL MINING Iron and manganese or mining Ferro alloys, HPE

woven sacks

08 SHREE DIGVIJAY

CEMENT

Blended yarns

Aditya Birla Group of companies:


Executive President

ProductionDepartment

EngineeringDepartment

CommercialDepartment

Administration

Department

Personal & HRD

Department

Viscose Maintenance

Finance Raw Material

Time Office

Spin bath Electrical Share Legal

Spinning

Welfare

Instrumentation

Stores and Purchases

Octroi Labor Office

After Treatment

Textile

Chemical

Research & Developme

nt

Quality Control

Internal Audit

Sales Personnel

HRD

Estate

Security

Indian Rayon

Size & form of organization :


Organization Structure

Indian Rayon

The size of this particular unit “INDIAN RAYON & INDUSTRIL LTD” is

large scale industry. We can say that of this unit is heavy industry, because it

processes all feature of heavy industries like it has large amount of capital, have a

production cycle & also uses heavy & costly machinery & bulk material. Hence it is

quite nature that this industry requires large number of person.

‘INDIAN RAYON & INDUSTRY LTD” is a public limited company this

company is in corporate on 26th September, 1956 under the companies Act, 1956 &

they have started public issue. This production process is also long duration.

Aditya Birla Nuvo Ltd.(Rayon Division) consists of all three level of

management.

Top level management

Middle level management

Bottom level management

Top level management of Indian Rayon is at the corporate office of Aditya

Birla Nuvo Ltd. Consists of board of company involving all major Decisions related

to the company.

Middle level management of Indian Rayon is within the premises of Factory

called “ADMINISTRATIVE BLOCK” consisting of all major departments.

Human Resource Department.

Finance & Accounting Department.

Marketing Department.

Production Department.

Here each Department has his Department heads. The organization adopts

Departmentalization. The position indicating on horizontal line as per relationship.

BEAT THE BEST :


Indian Rayon

“Together Let’s Achieve the Excellence to Beat the Best”

To position ourselves as the leading edge word- class corporation in an

increasingly competitive an borderless world, our group’s carefully revolved around

customers our employees and our shareholders our aim is to deliver value of these key

constituents.

In our Endeavour to attain our goals, world- class manufacturing programmed

will be the driving force of all of our operation. We have inculcated a couture which

aims to Zero pollution, Zero customer complaints and Zero Abnormally movement.

KUMAR MANGLAM BIRLA

IMPLEMENTS OF 5’S :


Indian Rayon

5’S CONCEPTS

a) “S”(Seiri) : Sort out unnecessary items in the work plase & discard

them.(Organization)

b) “S” (Seiton) : Arrange necessary items in good order so that they can

be easily picked and used. ( Neatness)

c) “S” (Seiko): Clean & maintain workplace so that there is no dust and

dirt.(Cleanliness)

d) “S” (Seiketsu) : Standardize the work procedneure for everything use

do.(Standardizeion)

e) “S” (Shitsuke) : Develop a habit of doing right things a standardized.

(Discipline)

VISION & MISSION :


Cleanlines

Productivity

Health

Action

Discipline

Attitude

Indian Rayon

GROUP VALUE:

LITERATURE REVIEW:


vision

To be a premiun globle conglomerate with a clear focuse an each business.

mission

To delivery superiror value to our customers, Shareholder's Employees & Society large.

value

IntegrityCommitmentPassionSemlessnessSpeed

Indian Rayon

During the literature review the attempt was made to undertake the detailed

review of all the secondary data available regarding the chemicals. The major step of

the literature review is as follows:

Detail information regarding the product was collected.

The list of the industries lying in the each end use segment was collected.

The literature review covered the information:

Product literature of various companies.

Trade journals like chemical weekly and chemical industrial news.

Chemical weekly-buyers guide.

Other data given by the department of caustic marketing.


Indian Rayon

RESEARCH

METHODOLOGY:


Indian Rayon

INTRODUCTION:

As per the project has to be completed within the resource limitations of the

time, money, etc. the systematic methodology was adopted to have the efficient

utilization of resources and to provide the guideline for carrying out research. The

framework of the methodology adopted had really help for completing the project

easily, economically, efficiently and timely. Throughout the complete project work

followed without any major changes in it.

Objectives:

To find out level of product quality and quantity by Indian Rayon.

To find out delivery performance.

To find out quality of documentation about order status.

To find out availability of after sales services.

To find out the complaint about the product.

To find out the response of the marketing persons of the Indian Rayon.

Field research:

Secondary data has its limitations. It dose not provide detailed information

regarding present policy and future scenario etc. in detail. To overcome this limitation

of secondary data, the main research was conducted. The main objective of field

research was:

To have information regarding customer satisfaction or dissatisfaction. So that

the company can bridge this gap for healthy relationship.


Indian Rayon

To have information regarding company’s strength, weakness, opportunities

and threats.

Details about the field research are given below:

Sampling plan:

In this field study, the sampling plan is not universe because I have visited only customers of

Jetpur, Navagadh, Veraval and Ahmadabad.

Data collection method:

There are many methods of data collection. Here, we will use the questionnaire

method having some important questions.

The research has taken depth interview of each respondent, the

researcher also tried to ask questions, even if they were not in questionnaire for

getting more information. The interview was structured one. Thus during

interview specific pattern of questions or specific questionnaire was followed for

one detailed questionnaire was prepared. During the field survey, interview was

mostly conducted with key person of the unit.


Indian Rayon

PRODUSTION

DEPARTMENT :


Indian Rayon

INDEX

PRODUCTION DEPARTMENT :

Sr. No. Particuler Page

No.

1 Introduction 29

2 Plant of the Company 32

3 Introduction of Company’s Product 34

4 Manufacturing Process 35

5 Production Capacity 37

6 Utilization Product 40

7 Pslant Layout 41

8 Material Handling 42

9 Purchase Department 43

10 Inventory Department 46

11 Qulity Policy 48

12 Production Planning and Control System 49

13 World Class Manufacturing 50


Indian Rayon

INTRODUCTION :

Production means creation of utilities and it covers all the activities of

procurement,allocation and utilization of resources such as labour, energy material,

equipment, machinary etc.

Every industrial organisation must do two things:

One is produce something.

The other is to market what is produced.

Production is a fabrication of physical object through use of Men,Material &

Eqipment.

“production Manegement deals with the decision making related to

produstion process so that resulting goods or services is prodused according to

specification, in amounts and by schedule demanded and at minimum cost”

E.S.Buffa.

Production must be oprated is an economic and efficent manner,because cost

of production isa vital factor in facing market compitition and ensuring normal profit

or return on investment.

The main raw material for the manufacture of yarn is wood pulp. Different

types of pulp are used in the process depeding upon the market availbility and for

acquiring the required quality. The pulp is also imported. Apart from pulp, the other

major raw material are castic, sulphric acid and carbon di-sulphric. The Company has

gone for backward intergrating by manufacturing sulphric acid and carbon di-

sulphric.


Co – Gen.Power Plant

Capacity 49.0 TPD

Caustic PlantRayon Plant

Capacity 225 TPD

Bi-polar membrane Technology

Capacity 36.5 MW

Indian Rayon

PLANTS OF THE COMPANY:

Rayon Plant:


Input

Material Labour Capital Energy Information

Resources

Production

Process

Output

Product Service Information

Indian Rayon

The Rayon Plant located at Veraval is an ISO 9002 and ISO 14001 certified

Plant. The main product of the Rayon Plant is the Viscose Filament Yarn apart from

chemicals like Sulphuric Acid, Carbon-di-sulphide, which are both consumed in-

house and Sodium Sulphate, which is a by-product.

The Installed capacity is as follows:

Viscose Filament Yarn : 49 Tonne per day Company is the market leader in

terms of Sales and Quality.

Exports constitute about 17% of the total turnover.

Power Plant:

To meet the power and steam requirement of the Rayon & Caustic Plant, the

company has set up a 34.5 MW Thermal Power Plant with the state of art technology.

As the international trends in fuel and power management goes strongly in

direction of producing pollution free power, two CFBC [Circulating Fluidized Bed

Combustion] type boilers have been installed whose

Capacities are as follows:


Indian Rayon

No. Of boilers 3

Capacity of Boilers Steam Quantity 50x2 TPH & 105x1 TPH, Steam Pressure 90 Kg/cm2, Temperature of SH steam 510 degree Celsius

Coal Handling Capacity 150TPH

The CFBC boilers are considered to be the most efficient and environment

friendly boilers and it provides excellent combustion and emission characteristics and

is flexible in using different combinations of fuel.

Caustic Soda Plant:

Caustic soda being one of the major inputs for producing Rayon a modern

Membrane Cell Technology Chlor-Alkali Plant has been installed and commissioned

in the year 1997. The Caustic Plant is integrated with Power Plant & Rayon Plant.

Caustic Soda Plant is highly Power intensive & integration with Power Plant provides

multiple advantages.

It is based on 'Membrane Cell Technology' from UDHE (Germany). The

technology is most modern and highly energy efficient and completely free from

hazardous pollution. The plant caters to the requirements of Rayon Plant as well as

nearby market.

Introduction of the company’s products :


Indian Rayon

There are elevan units working under IR division of Birla Group. In every

unit various are produced. Here we can mainly concerned with Rayon’s division,

manufacturing.

Viscose Filament Rayon Yarn.

Sulphuric Acid.

Carbon Di-Sulphide.

Anhyrlrous Sodium Sulphate.

Vital and essential for viscose filament rayon wood pulp, caustic soda (NaOH)

,WHILE FOR THE PRODUSTION OF THE Sulphric Acid Sulphur, Oxygen gas and

water are requried for production of Carbon-Di-Sulphate.There is separate plant for

each product. The fourth product is a by-product. The use of each product is as under.

Uses of Rayon Yarn:

Mantal of gas lanterns.

Dress material and shree.

Elastic tapes.

Fancy yarn, Finishing fabric and laces.

Embroidery works.

Wrap for weaving for suiting and shirting.

Making border design stick with dress materials ets.

Uses of Sulphuric Acid:

Chemical industry.

Agro-Chemical industry.

Paint industries.

Dye industries.

Medicine industry.

Uses of Carbon-di-sulphide:

Glass industries.


Indian Rayon

Pharmaceutical industries.

Rayon industries.

Base of Agro-Chemical industries.

Uses of Sodium Sulphate:

Glass industries.

Paper industries.

Dye industries.

Paint industries.

MNUFATURING PROCESS :


Indian Rayon

The main materials required for Rayon Yarn are:

Raw-materials & chemicals :

Raw-Materials Chemicals

Wood pulp (Cellulose) Sulphuric acid

Wood fibred Carbon Di sulphide

Flax fibred Sodium Sulphate

Staple & Synthetic fibred Caustic Soda

Cotton Staple & Synthetic Yarn

Carbon Black Feed Stock / Coal tar/ Fabrics/ Others

Above 80% of the Wood pulp is importing form outside India, Since it is

imported form Canada, Sweden and South Africa. The sheets of Wood pulp are made

for cellulose form the following three:

Eucalyptus (S.A)

Spruce (Canada)

Bamboo (India)

Production process :

It undertakes different type of departments which are as under


Indian Rayon

Viscose Department

Ripening Room

Spinning Department

After Treatment Department

Textile Department

Packing Department

Transport

PRODUCTION CAPACITY:


Indian Rayon

Production capacity means capacity of the firm or an organization to produce

the products in a specific time. Though, IR is an emerging company, it has got great

increase in its production capacity.

Indian Rayon is second largest in production of Rayon.

Business-wise capacity

As on 31 March 2008 31 March 2009

Manufacturing capacity

Viscose filament

yarn

MTPA 16,400 16,400

Caustic soda MTPA 82,125 91,250

Insulators MTPA 38,800 38,800

Carbon black MTPA 2,30,000 2,30,000

Flax yarn Spindle

s

15,340 15,084

Worsted yarn Spindle

s

25,548 25,548

Wool combing Cards 6 7

Linen fabric Looms 107 106

Urea (Reassessed

installed capacity)

MTPA 8,64,600 8,64,600

UTILIZATION OF PRODUCT:


http://www.adityabirlanuvo.net/indogulf/index.aspx

http://www.adityabirlanuvo.net/jayashreetextiles/index.aspx




http://www.adityabirlanuvo.net/hitechcarbon/index.aspx

http://www.adityabirlanuvo.net/adityabirlainsulators/index.aspx

http://www.adityabirlanuvo.net/indianrayon/index.aspx

http://www.adityabirlanuvo.net/indianrayon/index.aspx

Indian Rayon

Product produced is used in following industries:

Garments:

In the garments segment, the division’s performance has been encouraging as

it registered profitable growth. The long – term out look for the business is positive.

The division will continue to maintain its edge through innovative product

differentiation, aggressive expansion of its retail reach in malls and high streets.

Providing the consumer international class experience of its life style brands. The

company plans to introduce international labels in the current fiscal policy.

Carbon black:

With the upswing in the Auto & Tyre sector, the company’s carbon black

business continues with its upward climb. There is reason to believe that this

buoyancy is here to stay for a while.

Company is amongst the lowest cost producers in India. A simultaneous focus

on R & D to produce value added glades would help leverage the Birla Carbon

Brands & expand markets.

Textile:


Indian Rayon

Our company textile division performance has improved substantially, on the

wings of its linen & fabric flax yarn.

The year ahead seems to be good with the boost given to the textile sector and

encouraging environment post WTO. The company strategy will be to promote linen

fabric as a regular wear by focusing on quality of comfort and wider availability

across retail chains. It will concentrate on niche segment to improve margins.

Insulator:

Insulator JVS should contribute positively with the stabilization of its new kiln

& quality efforts.

CHEMICAL PLANT S IN INDIAN RAY ONE :

Acid Plant

Carbon-disulphide Plant

Water Treatment Plant

Demineralization Plant

Effluent Treatment Plant


Indian Rayon


Indian Rayon

PLANT LAYOUT :

“A good plant layout is one which allows material rapidly and directly for

processing. This reaches transport handling, clerical and after costs down per unit,

space requirements are minimized and reduce idle machine and idle main time.”

Objectives of ideal plant layout :

(1) Minimization of material handling.

(2) Avoidance of industrial accident.

(3) Better working conditions for the employees.

(4) Effective utilization of resources.

(5) Improves the quality of operations

(6) Achieves minimum overall cost.

IR adopt process layout in his Viscose Filament yarn plant also in caustic soda

plant. There is separate department of each process such as viscose dept, spin bath

dept, spinning dept, after treatment dept, textile dept and packing dept and raw

material, semi finished goods and finished goods are transfer one process to another

process by using conveyers, rails, cranes, trucks.


Indian Rayon

MATERIAL HANDLING :

“Material handling is the art and science involving the movement, packing

and storing of substance in any form.”

-- American Handling society

Material handling can be defined as “controlling the amount, location,

movement and timing of the various commodities used in and produce by the

industrial enterprise.”

INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) is totally using the

automatic process for production, but at certain stage uses equipment for the sifting of

raw material. The company use trolley as an equipment for material handling in its

viscose section to brought up the wood pulp from the storage department an in after

treatment department to put the cakes in washing and knitting. After the last stage of

production, the final product sends to the packing section with the help of trolley.

Many a times INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) uses

Conveyers

Rails

Crain

Trucks

(For the supply of raw material to various departments.)

The diesel power house of the INDIAN RAYON (A Unit of Aditya Birla

Nuvo ltd.) uses conveyer belts for the supply of coal that is import from Bihar. Where

the other raw materials like wood pulp, Sulphuric etc. are brought by land route. I.e.

rails and truck to the factory.


Indian Rayon

PURCHASE DEPARTMENT :

Purchasing function is the hart of any business and it is suppose to be cast

goldmine to profits.

“The task of purchasing is too related to going to the open market, finding

the desire material at the lowest possible price and selecting the supplier to offer

minimum prices having required quality of material.”

Purchase the right quality of material.

To purchase right quantity of material.

To make the material available at the right time.

To purchase the material at the right price.

To purchase material from right source.


Indian Rayon

Purchase procedure of Indian Rayon

Inventory department :

Inventory dept. of INDION RAYON (A unit of Aditya Birla Nuvo Ltd.)

scientific mounting level method. In this company, inventory control is long

process.Any dept. that is in need of any material prepares an indent after filing it is

sent to the purchase dept. of the company.While the placing the purchase order

INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) Considers the following

factors.

Old rate of the product

Lowest bids

Reputation of supplier

Delivery period

Payment terms

Technical evolution

After sales service

Performance guarantee

The above question are comparing on the basis of comparison chart which

they prepare with the help of all the information. The decision of purchase is one by

the authority. The purchase order is placed on the basis of feasibility. So, we can say

that INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) applies integrated material

management concept.


Indian Rayon

Store management :

The store dept. of the INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.)

receives the raw material which was ordered from the supplier. This dept. prepares

good receipt note (GRN). One copy of GRN is send to that dept. which has placed an

indent. Particular dept. approves the materials and sends requisition to store dept. and

collect the material. On the basis of GRN, final invoice is paid Account dept.

Inventory control :

“Plant maintenance ensures that all production facilities are in serviceable

condition at required time, causing no production hold-up, interruption, or loss of

individual efficiency for operation.”

The objective of plant maintenance is to improve functional reliability of

production facility to glorious opportunities. INDIAN RAYON (A Unit of Aditya

Birla Nuvo Ltd.) follows word class manufacturing policy (WCM) of plant

maintenance, which it has adopted in the recent years. However formally it was using

total productive maintenance (TPM) of plant maintenance.

Inventory control one of the key factor on the basis of which the company can

take, decision on behalf of that the cost can be controlled. If the company having a

good control on the inventory than the cost can be controlled more effectively.

The inventory control helps the company in forecasting the feature demand of the

goods as per the requirement of the production and the market.


Indian Rayon

The commonly used inventory control methods that a company uses are the

EOQ and ABC.

EOQ: - (economic order quantity) :

In this method the feature demand of the inventory is been identified as per the

requirement of the company, the key focus in this type of inventory control method is

the optimum utilization.

ABC: - (always better control)

In this type of inventory control method the name itself states the use and

potentially which lies in theirs method. In this method the goods are divided in such a

way that in response to its use and order and cost as the goods are divided in parts as

according to A.B.C.

Quality control :

“Quality is an asset which may be offered to the potential customer of a

product or a service.”

It mainly depends upon two factors:

1. product-service design

2. operating system-makes a product/provides a service


Indian Rayon

Quality policy :

“TOTAL QUALITY MANAGEMENT” covers all stages of manufacturing,

starting from a careful selection of raw material, technology, maintenance of

equipment, training of people to maintain and operate the equipment. We operate

with a very clear “Customer Focus” with regards to the Quality of Products and

Services.

We are committed to:

Meets customer‘s expectation of quality an services in premium segment.

Maintain high morale of employees.

Use eco-friendly technology and maintain pollution free environment.

Pursuit of excellence in the quality of our production techniques.

Commitment to preservation of the ecological balance through a judicious use

Of natural resources.

Enhancement of the competencies of our human assets.


Indian Rayon

The Quality speaks for itself:

They are the first “Rayon Plant” in India to be accredited with, “ISO – 9002

Certification.” They are even the first “Rayon Plant” worldwide to get the “ISO 14001

Certification.”

They are the only “Rayon Company” to have won the prestigious “Synthetic

Rayon Textile Export Rayon Promotion Council (SRTEPC)” award four years in a

row since 1995. This be speaks the stress we lay on internal quality controls. Their

standards of inspection are most stringent.

The Quality Assurance System ensures Consistency in

Whiteness

Brightness

Denier

Number of filaments

Colour

Cone weight


Indian Rayon

PRODUCTION PLANNING AND CONTROL SYSTEM :

Total production management (TPM) :

Maintenance is the key to zero loss, zero breakdowns, zero accidents, and zero

defects. It is in short a Zero-sum philosophy. This concept was put forward by the

Japanese Management expert Seiichi Nakajima in his gospel “Introduction to total

production Management” in 1984 Yamaguchi works at the Japanese institute of plant

management (JIPM). This is a temple of total productive Management (TPM).

Yamaguchi is teaching TPM to Indian companies.

IR follows eight pillars of total production management (TPM), which is

following.

(1) Autonomous Maintenance (Jishu Horizon).

(2) Focused Improvement (Kaizen).

(3) Planned Maintenance.

(4) Quality Maintenance.

(5) Education & Training.

(6) Mass Production design & initial flow control.

(7) Office Improvement.

(8) Safety hygiene and environment control.


Indian Rayon

WORLD CLASS MANUFACTURING :

The economy is integrated to the global economy and industry is facing

global competition. It is therefore, necessary to improve performance so IR & IL co.

adopt WCM model to improve performance and fitting with global competition.

The following characteristics of WCM are used to fulfill the customer

expectations.

(1) Products of high quality.

(2) Products at the right price.

(3) Product with the enhanced features.

(4) Product in a wide variety.

(5) Products delivered in time, in fact short time.

(6) Products delivered with shorter lead times.

(7) Flexibility in fulfilling the demand for the product.

The above listed performance measures are external to the manufacturing

system but are vital for the success of the organization. IR & IL Co. follows WCM

excellence model for competitive advantage as we seen in above diagram.

WCM POLICY followed by IR:

To maximize equipment effectiveness

Competitive and preferred choice of customers.

Achieve zero breakdowns, zero defects, and zero accident and eco-friendly

environment through innovative methods with total involvement of our employees

and b continuous up gradation of technology. This will lead us to excellence and

perfection in all spheres of management, to be globally.


Indian Rayon

PERSONAL

DEPARTMENT :


Indian Rayon

INDEX

PERSONAL DEPARTMENT:

Sr. no. Particular Page. no.

1. Introduction 53

2. Organization Structure 54

3. Manpower Planning 56

4. Recruitment Selection 58

5. Training & Development 59

6. Promotion & Transfer 60

7. Performance Appraisal 61

8. Job Description 62

9. Wages & Salary 63

10. Trade Union 64

11. Employees Benefit & Service 66

12. Time Keeping System 67

13. Working of ESI System 68


Indian Rayon

INTRODUCTION :

“Management is the development of people and not the direction of the

things……management and personnel administration are one and the same. They

should never be separated.”

Lawrence A.

Management is the most important resources among all the resources. How

many funds you have, how many machines you have, how many technological

advancement you have, nothing will work if you don’t have sufficient manpower. So

man is most important resource, so a medium is required to manage this resource. So

there is personnel department.

With reference to INDIAN RAYON & INDUSTRIES LTD., there is personnel

department divided into two parts is HRD & TRAINING and the other is

PERSONNEL DEPARTMENT. In which the responsibility is also divided:

HRD & TRAINING:

It deals with staff in the organization & accountable to vice president.

PERSONAL DEPARTMENT:

It mainly deals with labor force from their recruitment to the all officer connect

labor & workers as consulting agent.


PersonnelDepartment

Vice President

Personnel H. R. D.

General Manager Manager

Chief Manager Sr. Officer

Welfare Dispatch Labor Office

Dy. Manager Manager

Labor Manager Time Officer

Sr. Officer Sr. Officer

Indian Rayon

ORGANIZATION STRUCTURE

OF

PERSONNEL DEPARTMENT:


Indian Rayon

MANPOWER PLANNING :

Manpower is the key economic resources which should demand the same

attention from the company that it gives to planning at finance, equipments, raw

materials, production, sales and profits. A manpower planner functions should be:

The interpret production & sales forecast in terms of manpower requirements.

To indicate the manpower constraints on company policy for the future.

Manpower planning is the process of assigning the right number of people right

kind of people at the right time doing work for which they are economically most

useful.

Importance of manpower planning:

In Any organization manpower has its importance due to following

reasons.

The executive sources of knowledge for an organization & people.

Industrial knowledge is the starting point of organization knowledge.

The knowledge of each individual can’t be replicated.

Only people can spread knowledge resources across the company.

It is only people who can convert knowledge into efficient action.


Indian Rayon

Manpower planning for workers:

All the departments need additional requirement of manpower to contact the

personnel department, which makes the arrangement for the required manpower.

Every month the personnel department issues personnel reutilization from the all

departments and this forecasts its manpower demands of each department accordingly

the requirements are made.

The worker is divided into three categories:

Permanent

Badly

Temporary

The badly worker is the substitute for the permanent worker in the absence of

the permanent worker.

The temporary worker is employed for a limited period for a temporary work.

The causal worker is employed for an occasional work. The present split up to

workers & staff IR is given below:

RECRUITMENT & SELECTION :

Recruitment:


1 Permanent workers 2300

2 Badly workers 410

3 Temporary workers …..

4 Casual workers …..

5 Apprentices workers 25

6 Trainees workers …..

7 Staff workers 505

Indian Rayon

Once a determination of human resource recruitment has been made, the

recruitment and selection process can being. Recruitment is the process to dissolve the

sources of manpower to meet the recruitment of staff in schedule and to employee

effective measure for attracting that manpower in adequate number.

Recruitment means to seeking or obtaining recruits to replacing or to fill up

deficiencies. It refers to the entire process and set up activities involved in bringing

together prospective employees.

Recruitment process:

Recruitment process for blue collar worker is called traditional method. These

are stages of recruitment process for blue collar workers. They are as follows:

Within organization. i.e. permanent workers.

Badly or temporary workers.

Trainees.

Apprentices.

Casual applicant.

Employee recommendation of trade union.

Labor contractors.

If any worker remains absent or leave the job and it become possible to

transfer any other worker in the vacancy.

If any worker dies than as per vacancy available to his son is given to “sons of

the souls” is recruitment of labor.

Selection:


Indian Rayon

Selection is the process to choose or picking up the suitable candidate by

rejecting or excluding unsuitable.

Selection is also negative process. In selection some employees are selected

for particular job but many employees are rejected. For the workers, it is made by

supervision and labor welfare officers. At the time of selection physical fitness, past

experience, honesty, etc. are given importance.

For technical staff and administrative persons, Indian Rayon & Industries Ltd.

Arranges a written test and it is followed by personal interview. The performance of

candidate in both written test and oral test is given base for selection. The selected

employees are taken on the period of six month or twelve month. All the employees,

if found suitable during the period are chosen during the final selection and gets

permanent job. For white collar job, the company adopts the following stages for

selecting prospective candidates.

Reception of application.

Preliminary interview.

Application blank.

Psychological test.

Interview

Reference checking

Medical examination

Final selection

TRAINING & DEVELOPMENT :


Indian Rayon

“Training is an important aspect of personnel which increases the

knowledge and skill of a worker for doing a specific job.”

C.B.MEMORI

Training for the workers:

The HRD Department prepares schedule for the workers in need of training

to develop a job. A company’s main purpose is to give knowledge about new

technology and confirm the main purpose of giving training is:

Improving skill & knowledge of workers towards qualities of Product.

To give the technical knowledge and safety measure training.

Discipline, good conduct and job responsibility.

Operating the working programs.

Training for the officers:

Training is important for success of every business. It depends on manager’s

intelligence and skill and company has to give training to the officers, so they can

match with new technology. So company has to send officers into conference,

seminars, national & international conference from which company can take benefit

in proper time. So officers need training for these benefits.

Training for the supervisors:

Supervisor plays a very vital role in organization and supervisor is also

important for industrial piece. So supervisor should be trained for their work by

increasing workers efficiency. Supervisor can increase production. So by this way,

company could reach to the goal by help of supervisor.IR gives good training to the

supervisors are trained under the guidance of the chief executive of the company.

PROMOTION & TRANSFER :


Indian Rayon

Promotion:

Promotion means increase in authority, responsibility, status, salary, etc. it

means to do up liftmen of an employee within the organization and push in the

direction of top level.

The promotion policy of IR is based on seniority and merit consideration and

stressing more emphasis on his seniority. Employees are promoted considering his

ability to deal with problems of people, subordinates, etc.

Employees are promoted within the organization in case of vacancies or new

post creation. In case of promotion of unskilled and semiskilled worker is same as

administration department through seniority and merit basis.

Transfer:

Transfer means change in work place or department. The authority,

responsibility may be more or less or remain constant in transfer.

Transfer is a shift causing movement of individuals from one position to

another without change in duties. IR constitutes or various units located at different

places within the country. Yet inter unit transfer practice is not followed by IR.

PERFORMANCE APPRAISAL :


Indian Rayon

Motivation:

“The emphasis industrial psychology has shifted from the studies of the

isolated individual and physical environment to the consideration of motivation &

morale.”

- I.A.C. BROWE

IR motivates staff by performance appraisal. Every staff member recognizes

his work and he always tries to do better work & effective work if his work is

recognized.

IR motivates staff by performance appraisal. For e.g. their regular work,

honesty can also such things are being kept in mind.

Quality circle:

Quality circle is a group of workman working voluntarily for improvement of

their total quality of work. The basic objective is to help workman in developing

themselves. There are 36 quality circle in IR.

JOB DISCRIPTION :


Indian Rayon

The first & immediate product of job analysis process is the job description.

It is an important document which is basically descriptive in nature & constitutes a

record of existing pertinent job facts.

In IR the matter of job description being confidential, we have not been given

the more information about its uses, contents, written methods, etc.

Just we have been said that training & HRD department prepares a file for each

job for the same purpose.

It includes:

Title of job

Nature of job

Job summery

Working condition

Supervision given or received.

WAGE & SALARY :


Indian Rayon

The basic purpose of wage & salary administration is to establish and

maintain equitable section & is concerned with financial aspect.

In concern with operation of manpower administration, preparation of wage

sheet is through the part of personnel department. It has fixed payment as per the time

rates. This unit pays to workers as per department wise and between the 4 th to 10th of

every month.

The worker payment is comprises of basic pay + dearness allowances +

overtime + medical + HRD. Medical allowances are given to all employees of the

organization. Permanent workers are provided 10% and badli workers are provided

7.5% allowances.

Clerks are provided as per the terms and condition of the government from

work.

In IR wages & salary is always paid through the bank to the worker and staff

from the bank counter.

There are two systems by which wages are paid. They are:

Time wage system

Piece wage system

TRADE UNION :


Indian Rayon

There are more than 4200 employees in organization and for sake of

protection of their rights have formed their trade union. Presently, there are 3 trade

unions:

Indian Rayon employee union (IREU)

Rayon mazdoor sangh (RMS)

Indian Rayon karmachari (IRKM)

Only workers are not members of the trade union, staff employees has

also get the membership of trade union from above employee union, its strength is

60% of total working force.

Company has been keeping a good relation with trade union has a

top position in organization.

EMPLOYEES BENEFITS & SERVICES :

Uniform & other facility:


Indian Rayon

IR provides uniform to its workers of the company. In this each employee gets

a 10 meter cloth with stitching allowances in the very first month of the year. The

company distributes sweater to its workers in the viscose department. The company

pays Rs.200 to each employees of the company to purchase their shoes.

Recreation & Entertainment facility:

The company has its own big auditorium in which it arranges picture for

entertainment of its employees. It charges cheap rates. It also provides many types of

sports facility.

Independence day celebration:

The company celebrates the independence day every year. On this day the

programmed of national flag hosting is followed by sweet distribution.

Republic day:

The company also celebrates the republic day with arranging many sports

activities & other programs.

Death relief fund:

In case of death of any employee while working in any company provides his

family with Rs.4000 as general expenses and company also deducts Rs. 10 of all the

employees of the company and collects about Rs. 5000 and provides to their family.

Library:

IR has a small but very useful library in company. It also gives the facility of

internet to its employee and Mr. J. V. Dave very well runs it.

Quarter facility:


Indian Rayon

The IR is having quarter with 2 rooms, kitchen for administration and

executive officer as a normal payment of Rs. 100. staff pays Rs.70. bachelor equipped

with canteen, mess and common room.

Credit co- operative society:

Members are given loan facility up to an amount of Rs.20000 at a nominal

interest. This is managed by co-operative society.

School facility:

Both science & commerce up to 12th std. affiliated with Gujarat board.

Approximate number of students every year is 2000. 40-50% of the students are

employees’ children.

Medical facility:

Company has its own dispensary in factory. Also in this dispensary

workers are treated up on free of charge. Company has its own doctors for this

dispensary.

Milk & dairy facility:

IR provides milk to the workers working in chemical & spinning

department. The milk is purchased from Junagadh dairy.

Time keeping system :


Indian Rayon

Time is precious and we cannot get the time once passed so it is not only the

responsibility of an individual’s but only the responsibility of the industries to make

best use of the time. The company has time keeping system.

There are 3 shifts at Aditya Birla Nuvo Ltd. They are as under:

Shift:

(A) 7: 00 AM - 03: 00 PM

(B) 3: 00 PM - 11: PM

(C) 11:00 PM - 1: 30 PM

General shift 8: 30 AM - 5:30 PM

Lunch break 12:30 PM - 1: 30 PM

\

\

WORKING OF ESI SYSTEM :


Indian Rayon

ESI means employee state insurance scheme. It is necessary in all then

company according to 1948 act, an insurance facility provided to the workers. The

deduction of salaries of worker is made every month by the company.

If any accident occurs on the job to the worker this reserved money is given

him from the insurance. If any kind of illness is there this money is used by the

company. The worker can get salary without work up to 2 months according to

scheme.

But, ESI scheme is not applicable for this unit, instead of it (IRIL) has

insured all of its employees under oriental insurance company and it has own

dispensary.

Provident fund scheme :

IR manages PF scheme for the employees who are receiving salary about

Rs. 1600 per month and remaining employees are covered carried on by the

government rules framed.

An employee who becomes a member of PF scheme must be permanent

employee. He has to contribute his 12% of salary towards PF every month out of this

family pension fund, administration charge and PF is paid. In 12% PF scheme, there

is 8.33% pension & 3.67% PF are include into the scheme.

Every year the employees are handle the slip showing amount of PF. An

employee also gets loan from PF in case of marriage, sickness, house loan etc.

Industrial relation :


Indian Rayon

Industrial relation between labor and management better and harmonious

industrial relation and option of any friction between the employers and employees

results in industrial peace maintenance of improved industrial relation or peace in the

industry is highly essential for all the countries.

It is useful for administration of company to have a good industrial relation.

In this company, relation between labor and management is very good applicable.

There was major strike in 1982 and 2000 after there is no strike.

SOCIAL RESPONSIBILITY:

The company is conscious of its social responsibilities and is carrying them

very well.

Company performs its responsibility towards society by extensive rural

development activities. The company has set up a separate trust for this purpose

namely “Janseva trust”. This trust has launched rural uplifting activities in the rural

areas near the Veraval city. This trust gives training to the farmers to use the modern

inputs in farming. This trust also provides the assistance to these farmers to purchase

those inputs. The programs of adult education, family planning, women welfare

activities, mass tree plantation and assistance for self employment are also being

taken by this trust regularly.


Indian Rayon

MARKETING

DEPARTMENT:


Indian Rayon

INDEX

MARKETING DEPARTMENT :

Sr. no Particular Page. No

1. Introduction 72


3. Product 75

4. Customer Support Service 76

5. VFY & Caustic Marketing 77

6. VFY Marketing Analysis 82

7. Caustic Marketing Analysis 87

8. Centre Marketing Advantage 88

9. Marketing mix 89

10. Product Life Cycle 90

11. Sales Promotion 91

12. Market Segmentation 92

13. Market Profile 93

14. Advertising 94

15. Channel Distribution 95


MARKETING

“CUSTOMER IS NOT GOD, CUSTOMER IS KING.

GOD FORGIVES, KING DOESN’T”

Indian Rayon

INTRODUCTION :

Marketing is a process by which individuals and groups obtain what then need

and want by creating and exchanging products and value with others.

A market consists of all the potential customers sharing a particular need or

want who might be willing & able to engage in exchange to satisfy the need or want.

The concept of market brings us full circle to the concept of marketing. Marketing

means working woth the markets to actualize potential exchanges for the purpose of

exchanging human needs and wants.

“A market may considered as a convenient meeting place where buyers and

sellers gaiter to gather of goods and services.”

The Indian Rayon, a unit of Adity Birla Nuvo Ltd. Has a very efficient and

excellent marketing department, which tries to provide maximum satisfaction to the

customers while having reasonable, profits on the other hand.


“ORGANIZATION STRUCTURE OF “MARKETING DEPARTMENT” DDEPARTDEPARTMENT”

VicePresident

Raw Material& Storage

TransportSales & Marketing

Legal & Liaison

General Manager

Sr. OfficerGeneral Manager

Sr. Officer

D. Manager

Sr. Officer Sales Officer

Manager

Indian Rayon


Indian Rayon

PRODUCT :

The product is anything that can be offered to satisfy the need or want.

Product is most important and tangible component of marketing program.

“Product planning determines the characteristics of the product best

meeting the consumers’ numerous desires, characteristics that a stability, to

products and incorporate this characteristics into the finished products.”

Product planning involves three major important considerations:

Introduction and development of products.

Modification of the existing Products.

Elimination of unprofitable products.

Aditya Birla Nuvo Ltd. Create Product plan according to the requirement of

the clients, market condition, cost of products and its rivals.

The theoretical consideration of product planning and development includes

following aspects, which can be witnessed in Aditya Birla Nuvo Ltd.

Product mix:

Product Mix, also called as product assortment is the set of all product and

items that a Co. offers for sale. A Co.’s product mix has certain Width, Length, Depth

and Consistency. Aditya Birla Nuvo Ltd., along with the VFY it also manufactures

some chemicals and by-products, which required for the production of yarns.


Indian Rayon

Main product from producer to end user :

Product Market End use Customer Discount/Incentives

Nature Basis

Viscose

Filament

Yarn

Domestic

&

Inter-

national

Embroidery,

Dress Material,

Saris

Weavers in

organized sector

and sold

through

dealers& agents

Quality

discount,

Price discount,

Loyalty

Discount,

Cash discount

Discount is

given for

lifting higher

quantity,

timely

payment and

over & above

Caustic Soda Domestic

Row material

for

manufacturing

soap, cleaning

edible oil,

dyeing,

aluminum

sector, VFY,

Textile, etc...

Organized as

well as

Unorganized

sector

Quality

discount

Based on order

booking at the

time of

delivery

CUSTOMER SUPPORT SERVICES:


Providing Techno –

Commercial Supports

OTIF & Effective communication

Periodic Customer

Satisfaction Survey

Plant Visit Major

Buyers

Periodic Customer Meet.

Sustainable Relations

Reduced Customers ComplaintsResponse Time – Within 48 hrs.

Imparting good practices of WCM/TPM

Partnership Marketing

Building Personal Rapport

Effective Distribution ,

logistic Network

Indian Rayon

VFY & CAUSTIC MARKEING :


Indian Rayon

The Indian Rayon . has three main plants out of which three Plants are:

1.Rayon plant

2. Caustic Plant

3.Power plant

Produces Viscose filament yarn and chemicals respectively.

The IR has two Marketing Departments and both have different marketing sub

committees for Rayon products and Caustic products.

IR has its main sales office at Mumbai, but at Veraval it has only dispatch

office from where they send product as per instruction of Mumbai Head office for

Sales.

IR believes that satisfied customer is a result of chain of satisfied internal

customer.. Subcommittee assured to implement systems that directly lead to higher

level of satisfaction of customers. Directly linking with vision strive to become a

world class customer oriented organization with special focus on creating value for

customers while increasing the revenue inflow on a sustainable basis. Achieve higher

level of customer satisfaction through institutionalization of systems. In this report,

both the Plants’ Marketing information is included in two different segments. As:

VFY (Viscose Filament Yarn) Marketing

Caustic marketing

VFY MARKETING


Indian Rayon

MARKETING ANALYSIS :

The Sub Committee has a well-established market information system to

provide input on the marketing environment to identify and encase the opportunity.

The following statistics are prepared as market information system through market

report.

Global VFY Scenario

Global VFY Demand & Supply

Global Segments

Domestic Segments

Domestic Scenario

Domestic Segment Analysis

Export Scenario

Objectives :

To have a highly delighted customer base.

To develop committed, target oriented internal customer supplier

relationships.

To ensure cost effective, profitable marketing operations.

To maximize realizations, through focus on direct sales and reduced logistics.

To develop customer centered, profit oriented long term marketing strategies.

To ensure transportation of goods in strict adherence of safety and

environmental guidelines.

To ensure timely Redressed of customer complaints / grievance.

Marketing strategies


Indian Rayon

Creating responsive marketing structure :

Proactive Customer visits and Technical support.

Proactive visits rather than complaint handling visits.

Technical person to solve customer issues.

Better Intelligence – Improving reliability of forecasts.

Application and Business Development Team.

- New Application / Sampling Development

- Sourcing Partners

- Co-ordination with our customers

Better Planning / System Support to Marketing Team.

Marketing team more time in market

Understanding customer requirement :

Customers voices are captured through customer meets, Systematic regular

surveys, Customer feedback and through\market visit. Customer meets are conducted

at various centers, one to one discussions are held to understand the customers

requirements and expectations. Yearly Customer Satisfaction surveys are conducted

to identify the customer need and gap analysis done to customer create delight.

Special requirement of customers are implemented. Customer visits to plant are

organized.

Customer satisfaction :


Indian Rayon

Yearly customer satisfaction surveys are conducted to understand the

expectations of customers and also to assess our strengths and weaknesses vis-à-vis

other Viscose Filament Yarn manufacturers .Surveys are carried out to cover all

segments and regions. Feedback of the customers was taken for all the three functional

categories viz. Pre sales, Sales and Post Sales. The feedbacks and outputs of the

survey caressed for future improvement.

The learning of the Customer Satisfaction surveys are shared with employees in

the form of “Customer Satisfaction Survey Report”.

Customer complaints :

The committee views seriously on the Customer Complaints. Prompt and

appropriate redresses extended through its well-defined Complaint handling system.

The customer complaints are registered at the depots through complaint form.

Immediate redresses actions are taken through the trained technician’s visit to the

customer. Actions taken and the status of the complaint are given to marketing office

at Mumbai. Pending complaints are informed to Quality Control Dept. from where

remedial actions are taken Complaint nature, remedial action taken and status are

monitored and learning incorporated to eliminate origination of similar complaints in

future.

Steps to revive demand :


Indian Rayon

Revival of Application Development Efforts on an Emergency basis by IR as

well as in co – ordination with AMFI.

Price and Quality stability to Embroidery segment.

Short term- focus Mid End segment at Salem and Ulhasnagar

(till quality improves) Long term-Premium customers as

quality improve.

Premium Customers Acquisition in Georgette Segment (100 brat)

To maintain lead in Bras so (120 Brat)

Improving volumes in super fine Diner 40-50-60 segment

Revive Knitting segment at Tripura (150/300)

Delivery management & after sell services :

There is a systematic coordination between the marketing and production

dep’t. Customers need and requirements are communicated to the plant, where

machine wise production planning is done and implemented. This way machines are

run indirectly by the customers.

Stock transferred to depots set in four zones

The delivery to customers are controlled by the marketing

The depots are interlinked and linked with Marketing officials at Mumbai.

Customers complaints are addressed to give quick redresses.


MAJOR VFY DOMESTIC MANUFACTURERS & INSTALLED CAPACITYVS ACTUAL PRODUCTION DURING 08-09

INDIAN RAYON16000 TPA

17600TPA 08 -09

NATIONAL RAYON

16000 TPA13250 TPA 08-09

CENTURY RAYON16000 TPA

19200 TPA 08-09

KESORAM6500 TPA

6095 TPA 08-09

DOMESTIC COMPETITORS - VFY

VFYDOMESTIC

MANUFACTURE

Indian Rayon


42%0%16%5%

37%

The major competitor of Indian Rayon is the Century Rayon. Kesoram Rayon and National Rayon are other VFY market players. RAY ONE has 29 % share in Domestic Market, it has been striving to increase its export and captured 42 % of total VFY export from India with a growth status of 26.7 % in 2000 – 01 to 42 % in 2008 – 09.

Domestic market share Export Share

32%

29%7%

8%

24%

Indian Rayon

Century

Keshoram

NRC

BRC

Indian Rayon

COMPITITIVE POSITION VFY:


1190

260

230

700

Potential CapacityCaustic

9081075TOTAL

214250BCCL

200225IR

494600GRCD

Present CapacityChlorine/ HCL

Present CapacityCaustic

Indian Rayon

CAUSTICMARKETING :

Aditya Birla Group’s worldwide position in caustic market:


Global96%

India4% AB Group

1%

Global India AB Group

Global Capacity 62 Million Ton /Annum Indian Capacity 2.3 Million Ton /Annum

Indian Rayon

IR marketing committee- objectives :

Development of Marketing Strategies.

Internal & External Customer Satisfaction

Develop the organization to make it a customer oriented enterprise by focusing on

internal customer supplier relationship.

Strict adherence of safety and environment guidelines while dispatching goods to the

customer.

Customer services and Relationship Management

Timely redressed of customer complaints.

Processes to Meet Marketing Objectives :

Market Environment Analysis

Customer Requirement need-gap analysis.

Strategic Planning & Budgeting

Production-Delivery alignment.

System Improvements

Customer Support Services

Customer Satisfaction Assessment

Internal Customer-Supplier Relationship Assessment

Goal, targets & action plan :

Believing the external customer satisfaction is outcome of internal customer

satisfaction The subcommittee derives Goals and Targets in the form of result and

control indicators respectively based on Unit's Business goal.

During Planning & Budgeting exercise, goals and targets for the coming

financial year and projections of the next 2 years are evaluated comparing with our

own group units and for all the three units BCCL / IRIL / Grasim Chemical with

market scenario in India and world. Targets are reviewed during P & B exercise.


Indian Rayon

Also targets has been set for following areas.

Targets for increasing market share in Saurashtra Zone.

Targets set for enhancing direct sales.

Product wise realizations and ECU realizations.

Reducing working Capital Blocks –Credit days and Chlorine Toner rotation

Targets set for internal customer satisfaction by QCDIP (Quality, Cost,

Delivery & speed, innovations, Productivity).

Action plans are as given below :

Detailed time bound action plan is prepared in order to meet targets and systems

developed for same.

Market Environment Analysis.

Customer Requirement need.

Strategic Planning & Budgeting.

Production-Delivery alignment.

Systems Improvements.

Customer Support Services.

Customer Satisfaction Assessment.

Review Mechanism.

Internal Customer-Supplier Relationship Assessment.

Monthly review of QCDIP in L2 and L1 team meetings.

Systems are institutionalized for measuring, monitoring.

Market Intelligence System & Monthly MIS.

Progress-reports on Action-plans.

Comparative Performance analysis with group chemical units.

Monthly Performance review meetings.

Hired, outside research agency to conduct independent customer satisfaction

survey.

targets.


Nagda

Hyderabad

Veraval

Garhwa

Delhi

Baroda

Gujarat (Except Kutch & Saurashtra), Maharashtra

Saurashtra & Kutch & Western Rajasthan

Southern India

Madhya Pradesh, Chhattisgarh, Nagpur- Chandrapur Area & Southern Rajasthan

Eastern India, Eastern part of UP from Kanpur onwards Nepal and Bangladesh

Delhi, Punjab, Haryana, Jammu, Himachal Pradesh, Western UP, & Eastern Rajasthan

CMO

Indian Rayon

Present Marketing setup in Caustic marketing :

Aditya Birla Group has a central marketing setup between all the AB group’s

Companies which are manufacturing Chemical products. Each unit is look over

specific area for the marketing, which are specified by the central committee.

There are six units of AB group in India which produce Caustic products, these

are Veraval, Baroda, Nagda, Garhwali, Delhi & Hyderabad. These all the units have

allotted regions in which it is situated and nearby area for the Sales & Marketing

activities.


Business Director

Sr. Executive President

Indian Rayon

CENTRAL MARKETING ADVANTAGE :

Cost cutting :

Improved Logistics

Reduction of Man Power

Effective utilization of resources (ERP)

Reduction of selling, ADM. & other expenses.

Explore new market segments & penetrate existing market for

higher realization:

Stronger Distribution Network.

Withdrawal from lesser realization zones.

Thrust on Direct Sales.

Higher capacity utilization.

Optimum use of resources

Assured supplies – Higher retention of customers - Improved sales

volume.

Avoid internal competition.

Concerted and coordinated efforts in chosen segments / territories


Marketing Mix

Target Market

Indian Rayon

MARKETING MIX :

Marketing mix is the set of marketing tools that firm uses to pursue its

marketing objectives in the target market.

It consists of everything the firm can o to influence the demand for its

products. The many possibilities can be collected into 4 groups of variables known as

the four Ps i.e.

Product price place promotion


PLACE

Channels

Coverage

Assortments

Locations

Inventory

Transport

PRODUCT

Product Variety

Quality

Design

Features

Brand Name

Packaging

Sizes

PROMOTION

Sales promotion

Advertising

Sales force

Public elation

Direct marketing

PRICE

List Price

Discounts

Allowance

Payment period

Credit terms

Indian Rayon

PRODUCT LIFE CYCLE :

A company’s positioning and differentiation strategy must change as the

product, Market and competitors change over time.

INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) is passing from

maturity sate. Hence, this company can make changes in its products and technology

by adopting new machines like horizontal spinning machine and pot spinning yarn

process.

Because of the technology adaptation, absorption and innovation the benefits

derive by the INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) are:

Quality improvement in existing range.

Development of new market segment.

Improvement in process, cost control and productivity.

Improvement energy efficiency.

Reduction in import material consumption.


Indian Rayon

SALES PROMOTION :

Companies use sales – promotion tools to create a stronger and quicker

response. There is a separate organization, which jointly made efforts for sales

promotion and this organization is followed by INDIAN RAYON (A Unit of Aditya

Birla Nuvo Ltd.) This organization is known as “The silk and Rayon Textile

Export Promotion Council.”

The head office of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.)

does all the activities of the sales promotion. It promotes its sales via dealers i.e. the

product is sale thought middle man.

Following tools have been use in this method:

Buying allowance discount

Display allowance

Dealers contest

Concession on the net sales 25

Free gift


Indian Rayon

MARKET SEGMENTATION :

“Market Segmentation consists of taking this total market for the product

and dividing it into several sub-marketer segments each of which tens to be

homogenous in all the significant aspect.”

The company identifies different ways to segment the market and develops the

profiles of the resulting market segments.

There are two approaches regarding market segmentation:

People oriented approach

Product oriented approach

INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) uses ‘people oriented

approach’ method for market segmentation. They classify their consumer on the basis

of place, income, geographical location, etc.

The branches of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) are

located at Ahmadabad, Delhi, Mumbai, Amritsar, Surat, Bangalore, and Madras. Its

head office is situating at Mumbai which takes all the decisions regarding the

company’s products.

There are different manufacturing companies that consumes and demand for

the specific type of yarn of very fine quality. The demand for yarn differs from

company to company on the basis of their handloom production. So, this company has

segmented. The total market on the basis of product application consumer industry

wise.

The INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) marketing office

is at Mumbai. The company has various type of segments. They are selling its product

in India as well as exporting in many countries.


Indian Rayon

Market profile of organization in India:Market profile of organization in India:

Branch abroad:

Korea, Italy, Africa, Saudi Arabia, Bangladesh.


SELLING OF PRODUCT OF INDIAN RAY ONEE IN INDIAN MARKET

VERAVAL Factory & Caustic Soda Mktg..

SURAT

AHMEDABAD

AMRITSAR

PANIPAT

DELHI

BELGAUM

MUMBAI VFY Mktg..

SALEM

BANGALORE

KOLKATA

VARANASI

Indian Rayon

ADVERTISING MANAGEMENT :

“Any paid form of non-personal communication of ideas, goods or services

by business firm identified in the advertising message intend to lea to sale

immediately or eventually.”

--American Marketing Association

Advertising is basically used for:

Creating or enhancing goodwill

Preparing ground for new product

Creation of demand

Facing the competition

INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) is very sound

company producing industrial product. Major factories producing rayon yarn in India

are under one management i.e. The Birla group. The Aditya Birla Group has covered

near about 75% of the yarn market. Thus there is no question of advertising.

Rayon Yarn is use as a raw material in textiles industries that are not affected

by any media of advertisement and that is the reason why the company is not

advertising its product.

The company publishes magazines, which depicts various facts and figures of

companies manufacturing process, EXIM policy, pricing policy, strategies, etc.

I short; the companies adopt the direct advertising method.


Indian Rayon

CHANNEL OF DISTRIBUTION :

“The middleman is not a hire link in a chain forgets by a manufacturer, but

rather and independent market, the focus of a group of customers for whom he

buys.”

INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) has adopted its own

sales branches and sales offices in context of its channel distribution. The company

has selected the distribution channel keeping in view the demand of the customer and

the current market trend.

In INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) the main product is

rayon yarn so, this unit utilize zero level (Direct selling) and one level of channel of

distribution. They are conduction the sales activity with the help of their own sales

depots and agent’s dealers, sub dealers etc. indifferent cities and different states.

INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) sales marketing office

is at Mumbai which performs the functions of selling the product of the company. The

marketing office collects all the orders from the twelve different sales branches. All

the sales branches of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd)

maintains the facilities like storage, after sales service etc.

INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) also produced

chemical along with the yarn like sodium sulphate, sulphuric acid and carbon-di-

sulphide are distributed though dealers and selling agent.


COMPANYSALES

OFFICERCUSTOMB

ERS

Indian Rayon

FINANCE

DEPARTMENT :


Indian Rayon

INDEX

FINANCE DEPARTMENT :

Sr. no Particular Page. No

1. Introduction 98


3. Revenue & PBIT Chart 102

4. Production & Sales Chart 103

5. Capital Structure 104

6. Capitalization 107

7. Leverage 109

8. Capital Budget 110

9. Working Capital Management 116

10. Inventory Management 117

11. Receivable Management 118

12. Credit Standers 119

13. Cash Management 120

14. Dividend Distribution 121

15. Profitability Ratio 122

INTRODUCTION:


Indian Rayon

Financial management is the managerial activity which is concerned with the

planning and controlling of the firms of the financial resources.

Finance management is concern with the efficient use of an important

economic resource, namely capital fund.

- Solo man

Money is the lifeblood of modern business. Money is required to purchase

expensive on raw materials, labor and operational and administrative need of

business. A human body with bones, flesh, skin, and different organs but without

blood is of no use; similarly an organization or an industry win without finance is also

useless.

In simple words, financial management is concerned with the financial

problems of the organization.

In Indian ray one Industry is a separate financial department where in all

financial decision is taken by the experts, Indian ray one believes in maximum profit

at least cost but the finances in such a way that the goal of business say, profit

maximization is realized.

Financial management can be defined as:


Indian Rayon

The management of the finance of a business/organization in order to

achieve financial objective.

Taking a commercial business as the most common organizational structure,

the key objectives of financial management would be to:

To produce wealth for the business.

To generate cash.

To supply adequate return on investment.

To protect business from risk and uncertainty.

There are three key elements to the process of financial management:

1. Financial planning:

Management to need to ensure that enough funding is available at the right

time to meet the need of the business. In the sort term, funding may be needed to

invest in equipment and stock, pay employees a fund sales made on credit. In the

medium and long term, funding may be required for significant additions to the

productive capacity of the business or to make acquisitions.

2. Financial control:

Financial control is a critically important activity to the help the business

ensures that the business is meeting its objectives.

.3. Financial decision- making :

A key financing decision is weather profits earned by the business should be

retained rather than distributed to shareholders via dividends. If dividends are too

high, the business may be starved of funding to reinvest in growing revenues and

profit further.

There are three major decisions :


Indian Rayon

(1) Investment decision.

Investment decision related to the selection of assets in which funds will be

invested by the firm. The assets that can be acquired fall in two category (I) Long

term assets, which yield return over period of time in future (II) Short term assets,

which are convertible into cash within a year. This includes,

(1) Capital budgeting

(2) Working capital Management.

(2) F inance decision.

Finance decision is generally concerned with financing mix or capital structure

or leverage. It is generally a decision made on the composition of capital with

reference to equity share and debt.

(3) Dividend decision.

Dividend decision is generally related to distribution of dividend. Two

alternatives are available in dealing with the profits of a firm. They can be distributed

to the share holders as dividend as they can be retained in business itself. The decision

as to which course should be followed depends largely on a significant element in

dividend decision i.e. decide the dividend payout ratio (D/P ratio).

ORGANIZATION STRUCTURE


Sr. Manager

AssistantManagerCreditor

AssistantManager

Cash

Assistant Manager

Salary

Officer Officer Officer Officer Officer

Indian Rayon

PERFORMANCE OF IR CO. FOR THE YEAR 2008-09


President & CFO

Corporate finance

Executive president

(Rayon Division)

Board of director

Sr. Vice President

(Finance & comm.)

Officer

G.M. Finance

Indian Rayon

SOURCE OF TOTAL REVENUE (RS. 9918.71CR.)

13%3%

11%

5%

11%29%

4%1%

17%6%

REVENUE

FERTILIZERS FINACIAL GARMENTSRAYONE YARN CARBON BLACK TELECOMINSULATERS SOFTWARE BPOTEXTILES

PBIT:

RAYON YARN ; 89.82 CABON

BLACK; 24.69

INSULATER; 108.4

TEXTILES; 32.69

FERTILIZERS; 209.74

OTHERS; 40

So

urce: Annual Report of 2008-09

PRODUCTION:


Indian Rayon

CA

US

TIC

SO

DA

SP

UN

YA

RN

S

CA

RB

ON

BLA

CK

INS

ULA

TE

R

VF

Y

CA

US

TIC

SO

DA

SP

UN

YA

RN

S

CA

RB

ON

BLA

CK

INS

ULA

TE

R

VF

Y

2008-09 2007-08

0

50000

100000

150000

200000

250000

0-50000

50000-100000

100000-150000

150000-200000

200000-250000

Source: As per the Information Given by Production Manager

2008-09

2007-08

0

50000

100000

150000

200000

250000

9271 11349

SALES

VFY

CASUTIC SODA

CARBON BLACK

INSULATER

SPUN YARNS

CAPITAL STRUCTURE :


Source: Information Given by HRD

Indian Rayon

Capital structure may be defined as the combination of debt and equity that

lead to the maximum value of the firm.

“Capital structure refers to the mix of long-term sources of funds such as

debenture, long-term debit, preference share capital and equity share capital

including reserve & surplus. The company should planed and get optimum

capital structure.”

PARTICULER (RS. IN CRORES)

2008-09 2007-08

Share Capital 95.00 95.00

Reserves & Surplus 5396.50 3510.50

Secured Loans 5033.10 4463.50

Unsecured Loans 3860.90 2184.40

Preference share capital 25.50 50.00

Source: Annual Report 2008-09

Share Capital of the INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd).

Has same as compare to previous year. Company has also increase reserves &

surplus, secured loans, unsecured loans respectively, 53.72%, 12.76%, and 76.74% as

compare to the previous year. Company has paid to the preference share capital

decrese51% in this year.

CAPITALIZATION :


Indian Rayon

From accounting point of view “capitalization means accumulated funds

which have been invested for same business purpose to earn quite of return”

For the Co the Book value and Real value of Share are two main components

or assessment of Co.’ financial position which can be calculated as per under.

YEAR EPS (RS. IN CRORES)

2008-09 14.5

2007-08 26.1

2006-07 25.6

2005-06 24.5

2004-05 18.3

2003-04 21.1

2002-03 17.0

2001-02 7.0

2000-01 11.0

Source: Annual Report 2008-09

Book value per share is Rs. 578.05


Indian Rayon

Book value:- Equity share Capital + reserves & surplus

No. of Equity Shares (%)

= 95.00 + 5396.50

9.5

= 578.05 Rs.

There are three conditions of the company in term of the capitalization are as

follows.

Fair capitalization :

It is received when earning of the unit is same to the capital employed.

Earning = Capital Employed.

And book value of a safe is also equal to the real assets.

Book Value = Real value

Under capitalization :

It is found when earning is more than capital employed.

EARNING > CAPITAL EMPLOYED.

In this case book values of assets of the firm are less then the real value.

BOOK VALUE < REAL VALUE

Over capitalization:


Indian Rayon

It is found when earning is less then the capital employed.

EARNING < CAPITAL EMPLOYED.

In this case book value of the assets of the firm are more then the real value.

BOOK VALUE > REAL VALUE

The closing market price of the Co. per share is Rs 425.55 as on march-09

which is greater than its book value per share.

From this we can say that co. is facing under capitalization. The above graph

depicts that the Co’s earning per share has increased by 12.83% as compared to its

previous year.

The reason for the increase in the value of Co. Is

Increase in sales and profit.

Increase in price of yarn.

LEVERAGE:


Indian Rayon

The employment of and asset or source of funds for which the firm has to pay

a fixed cost or fixed return is termed as Leverage.

There are two types of leverages:

Operating Leverage

Financial Leverage.

Financial leverage:

The leverage associated with financial activities is called Financial Leverage.

It represents the relationship between the firms’ earnings before interest and taxes and

the earning available for ordinary shareholders.

It is defined as “the ability of firm to use fixed financial charges to magnify

the effects of change in EBIT on EPS.”

Aditya Birla Nuvo Ltd. has posted a superior financial performance during the

year 2008-09. The revenue has grown to 4786.18 Corers against 3953.06 Cores in

the previous year.

Financial Leverage = EBIT

EBT

= 408.26

162.30

= 2.52 %

Operating leverage:


Indian Rayon

The leverage associated with the investment (asset acquisition) activities is

referred to as Operating Leverage. It is determined by the relationship between the

firm’s sales revenue and its earnings before interest and tax (EBIT).

Operating leverage results from the existence of fixed operating expenses in

the firm’s income stream. With fixed cost the percentage change in profit

accompanying a change in volume is greater than percentage change in fixed asset.

CAPITAL BUDGETING:


Indian Rayon

The system of Capital Budgeting is employee to evaluate expenditure

decision, which involve current outlays but are likely to product benefits over a period

of time longer than one year.

These benefits may be either in the form of increased revenue or decreased cost.

There is various method of Capital Budgeting:

Internal rate of return

Average rate of return

Profitability index

Payback period

Net present value

Aditya Birla Nuvo Ltd. undertakes Capital Budgeting every year with the help

of financial experts of financial dept on basis of payback period method.

The Co. always aims at increasing and expanding the installed capacity of

Rayon Yarn production. It constantly tries for its success. At present the installed

capacity of plant is 16000 tons/ annum.

At present the main objective of Company is replacement and modernization

of machine and fixed assets and business expansion by adding new machineries and

technology. The unit base takes this decision on payback period.

WORKING CAPITAL MANAGEMENT:


Indian Rayon

Working Capital is concerned with management of current asset. It is and

important and integral part of financial management as short-term survival is

prerequisite for long-term success.

The divisional management of INDIAN RAY ONE (A Unit of Aditya Birla

Nuvo Ltd.) manages the working capital within the broad framework laid by and with

consultation of Corporation Finance Division (CFD). Decision regarding the

utilization of the current assets is made in accordance with the policy of company.

The operating cycle can be said to be at eh heart of the need for working

capital.

Need of working capital:

The ray one industries are manufacturing concern it needs a large amount of

fund for smoothing day-to-day operation. This working capital can be classified in

terms of cash, inventory, loans & advances and debtors or it can be said a current

assets of the organization. This is very significant part of the total asset. The current

assets of the year 2006-2007 are given below.

Current assets:

Financial year 2008-09 (Rs. crore)


Receivable

Inventory

Cash

Indian Rayon

Current Assets Amount % of

Inventories 834.80 14.8

Debtors 1343.60 23.82

Cash and Bank balance 1534.40 27.21

Interest accrued on

Investments

19.60 o.35

Loan and advances 1907.70 33.82

Gross Working Capital 5640.10 100.00

Focusing on liquidity management:

Suggests the extent to which working capital needs may be financed by

permanent sources of funds. Current assets should be sufficiently in excess of

current liability to constitute a margin or buffer for maturing obligation within the

ordinary operating cycle of a business.

In order to protect their interest, short-term creditors always like a

company to maintain current assets at a higher level than current liabilities.

However, the quality of current assets should be considered in determining the level

of current assets vis-à-vis current liabilities.

A weak liquidity position poses of threat to solvency of the company

and makes it unsafe and unsound. A negative working capital means a negative

liquidity, and may prove to be harmful for the company. Excessive liquidity is also

bad. It may be due to mismanagement of current assets. Therefore, prompt and


Indian Rayon

timely action should be taken by management to improve and current the imbalance

in the liquidity position of the firm.

Net working capital concept also covers the question of judicious mix

of long-term and short-term funds for financing current assets. For every firm, there

is a minimum amount of net working capital, which is permanent. Therefore, a

portion of the working capital.

Determinant of working capital:

The credit policy of the firm affects working capital by influencing the level of

book debts. The credit terms to be granted to customers may depend upon norms of

the industry to which the firm belongs. But a firm has the flexibility of shaping its

credit policy within the constraint of industry norms and practices. The firm should be

discretionary in granting credit terms to its customers. Depending upon the individual

case, different terms may be given to different customers, will be detrimental to the

firm and will create a problem of collecting funds later on. The firm should be prompt

in making collections. A high collection period will mean tie – up of funds in book

debts. Slack collection procedures can increase the chance of bad debts.

In order to ensure the unnecessary funds are tied up in book debts, the firm

should follow a rationalized credit policy based on the credit standing of customers

and other relevant factors. The firm should evaluate the credit standing of new

customers and periodically reviews credit – worthiness’ of the existing customers.

The case of delayed payment should be thoroughly investigated.

Why Ray one Division Grants Credit?


Indian Rayon

Competition: -

Ray one division has to face the competition from companies like Mumbai

based Century Ray one, National Ray one, Kesoram Ray one. So it grants a nominal

credit period of 3 days.

Company’s brand image: -

The ray one division is a part of Aditya Birla Group. So it carries a huge

brand image and its position in the market is that of market follower. So it has higher

bargaining power vice versa. So it allow a very short period of credit.

Marketing tool: -

To beat the competitors and to attract the potential customers, Ray one

division offers nominal credit period as marketing tool

.

Transit delay: -

Indian Ray one division has the market throughout the country so it takes

time for the goods to reach from one place to another. So transit delay is one of factor

for which the company has to allow the credit period as the days of grace. Days of

grace vary from place to place depending upon the distance.

Industrial practice: -

Ray one division is the industrial commodity seller the output of which is the

input of other industry. So it sell the product it has to allow the credit period to these

buyers.


Indian Rayon

Buyer requirement:

In some cases the buyers having the good payment track record are no

interested to operate without credit period.

Issue in working capital management:

Working capital refers to the administration of all components of

working capital – cash, marketable securities, debtors (receivable (Ugarit)) and stock

(inventories) and creditors (payables). The financial must determine levels and

composition of current assets. They must see that right sources are tapped to finance

current assets and that current liabilities are paid in time.

There are many aspects of working capital management, which make it an

important function of the financial manager.

Time: -Working capital management requires much of the financial manager

time.

Investment: -Working capital represents a large portion of the total

investment in assets

Criticality: - Working capital management has great significance for all

firms but it is very critical for small firms.

Growth: - The need for working capital is directly related to the firm’s

growth.


Indian Rayon

Empirical observation show that the financial managers have to spend much of

their time to the daily internal operations, relating to current assets and current

liabilities of the firms. As the largest portion of the financial manager’s valuable time

devoted to working capital problems, it is necessary to manage working capital in the

best possible way to get the maximum benefit.

Concept of working capital :

(1) Gross working capital :

It refers to the firm’s investment in current assets. Current assets are the assets

which can be converted into cash within an accounting year or operating cycle.

(2) Net working capital :

It refers to the difference between current assets and current liabilities.

Positive new working capitals arise when current assets exceed current liabilities. It is

negative in case of current liabilities are in excess of current assets.

Working capital management consists of three main aspects :

(1) Inventory Management.

(2) Receivable Management.

(4) Cash Management.


Indian Rayon

INVENTORY MANAGEMENT :

“Inventory refers to the stockpile of the products a firm is offering for sale

and the components that make up the product.”

The IR Co. is the manufacturing organization, so being manufacturing

organization it needs a large among of the inventories for the smoothing of business

operation. The Co. invests nearly 48 to 50 percent of total current assets in the

inventories. In the IR Co. the inventory is maintain by finding the actual requirement

and the analyzing material, which is scared or not easily meet at the proper time.

Then after the Co. decides the optimum level for each inventory based on the

requirement. But because Co. has a good image to the supplier, it maintains the three

days stock inventories for most of the goods even though the industry standard is

seven days.

In IR Co. there is a special storage dept. and separate inventory management

force which perform certain functions for efficient management of inventories in the

company. It maintains sufficient stock of raw materials in period of short supply and

anticipates price change. It helps sales dept. by maintaining sufficient finished goods

inventories for smooth sales operation.

Inventory Turnover Ratio = Net Sales

Inventory

= 14200.44

834.80

= 17.01 times

Cost of inventory is compared on a weighted average or FIFO basis.


Indian Rayon

RECEIVABLE MANAGEMENT:

The management of receivable is basically concerned with the old customers

and wining the new ones by collecting a regulating the cost management of

receivables also known as trade receivables or customers or debtors receivables.

It means when firm make ordinary sales on credit and payment has not been

received yet. Such management of receivables Aditya Birla Nuvo Ltd. grants the

credit term to its customers for 15 days. However, in exceptional cases it is increased

to certain extent. The purchaser sends bank drafts on expiry of credit period.

The receivables arise out of three features:

It involves an element of risk, which should be carefully analyzes.

It is based on economic value.

It implies future management of receivable.

Management of receivables concerned with retaining the old customers and

wining new by controlling and regulating the costs. Aditya Birla Nuvo Ltd. grants the

credit form to its customers for 15 days.


Indian Rayon

CREDIT STANDARDS:

As per the industrial standard for rayon, the organization runs well on the track

of Average collection period. But because of the core competition in the chemical

market the avg. collection period increased and reach near to the 25 to 30 days, so it

can conclude that organization investment in receivables is not very high.

The customers are paying its obligation to the organization in time. The

default rate is nearly zero in the organization.

CREDIT TERM

VFY = 15 days

Chemical = 45 days

The collection of the fund is done by HDFC Bank, which plays and agent role.

The avg. collection period for the account receivables between 21 to 27 days.

Total debt of company as on 31st March, 2005 is 260.90 corers which have

increased as compare to that of the last year’s debt. i.e. 31st March, 2004 was 186.14

crores. So, it can be said that debtors are up by Rs. 74.72 cores. Major addition was

on account of insulator domestic marketing.

As a result of the above mention, there is an increase in the Net Sales of the

company by 9% as compare to that of last year’s sales.

Receivables Turnover Ratio = Net Sales

S. Debtors

= 14200.44

1343.60

= 10.57


Indian Rayon

CASH MANAGEMENT:

Generally any organization holds the cash for ;

Transaction motive.

Precaution motive.

Speculative motive.

Compensating motive.

INDIAN RAY ONE holds the cash only for the transaction motive. It holds the

cash for smoothing the day-to-day operation only. If there is surplus of cash in the

Co., it is transferred to the CFD while if there is deficit of the cash in the organization,

it borrows it from the CFD and also decision regarding the investment of cash in to

Marketable Security is done through the CFD only.

Cash collection;

INDIAN RAY ONE operating in various geographical area of the country. It tries

to speed up the cash collection by decentralization with the help of ten ash collection

centers all over the India.

Cash Disbursements;

The disbursement is one through centralized system by the organization. The

payment of the bill will be made from the central account (at division place) and form

the head office. So the Co. can enjoy the transit time delay using the factoring.

Optimum Cash Balance ;

INDIAN RAY ONE keeps a maximum level of cash balance worth and average

payment for three days. If cash is more than its maximum level than the cash if

transferred to the CFD and if cash is less than the level than the requirement of the

cash is borrowed from the CFD.


Indian Rayon

DIVIDEND DISTRIBUTION :

Dividend refers to that portion of a firm’s Net Earnings which are paid out to

the Shareholders. A major decision of financial management is the dividend decision

in the sense that the firm has to choose between distributing the profits to the

shareholders and plugging them back into the business.

In IR Co. the board proposed the dividend of Rs. 4.00 per share for the year

2005-06. It is same as compared to previous year. Dividend payout ratio on of 2005-

06 is increase 3.44% as compared to previous year.

2008-09

2007-08

2006-07

2005-06

2004-05

2003-04

2002-03

2001-02

2000-01

1999-00

Dividend Per Share

4 5.8 5.5 5 4 4 3.8 3.3 3 1

Dividend Payout (%)

30.9 26.3 26 25.5 24.1 20.6 24 45.5 28.9 2.8

5

25

45

DIVIDEND

FR

EQ

UE

NC

Y

Source: FINANCIAL YEAR 2008-09


Indian Rayon

PROFITABILITY RATIO :

The profitability ratios are calculated to measure the operation efficiency of

the company. Besides Management of the company, creditors and owners are

interested in the profitability of the firm creditors want to get interest and payment of

principal regularly. Owners want to get a required rate of return on their investment.

This is possible when company earn enough profit.

Generally two major types of profitability ratios are:

(1) Profitability in relation to sales.

(2) Profitability in relation to investment.

(1) ROI (Return on Investment)

EBIT

ROI= * 100

Capital Employed

Financial year 2008-09 (Rs. corer)

YEAR EBIT CAPITAL

EMPLOYED

RATIO (%)

2008-09 408.26 8521.46 4.79

2007-08 510.15 6686.16 7.63


Indian Rayon

(2) ROE (Return on Equity)

EBIT

ROE = * 100

Equity Funds


YEAR EBIT EQUITY FUNDS RATIO (%)

2008-09 408.26 4121.70 9.91

2007-08 510.15 4023.70 12.68

Net Profit Ratio :

PBT

NPR = * 100

NET SALES


YEAR PBT NET SALES RATIO (IN % )

2008-09 162.30 14200.44 1.14

2007-08 314.56 11249.60 2.80


Indian Rayon

CURRENT RATIO :

CURRENT ASSETS

CURRENT RATIO =

CURRENT LIABILITIES


YEAR C.A C.L. RATIO

2008-09 5640.10 3050.30 1.85

2007-08 3050.30 2442.90 1.25


Indian Rayon

AWARDS & ACHIEVEMENTS:

Awards:

Rayon division has begged “ Gold Trophy” for highest export from synthetic

and Rayon Textile Export Promotion Council.

The “ Certificate of merit – 2003 “ of national energy Conservation of VFY.

“First Prize” of National Energy Conservation Award -2003 for chlor – Alkali

sector both from ministry of power , New Delhi.

The prestigious “ Genentech Environment Excellence Silver Award 2002-03”.

In chlor-Alkali sector for outstanding achievement in the field of environment

from Genentech foundation, New Delhi.

The Gujarat safety Council has conferred upon the “Certificate of Honor

2002” upon the division base on its safety record and performance.

The caustic division has achieved the Genentech award in 2004.

Achievements:

The prime minister, Dr. Man Mohan Singh conferred the national energy

conservation award on Indian Rayon.

Mr. S. P. Singh had the privilege of receiving the award on behalf of Rayon

Division, Veraval.


Indian Rayon

FUTURE PLAN OF ACTION:

Development of spatiality yarn.

Eco and energy auditing.

Improvement in intrinsic quality of yarn.

Developing new shades of spun ye yarn.

Development in the quality of existing range.


Indian Rayon

RECOMMENDATIONS:

The process of improvement is an unending journey. World class performance

is a moving target that requires constant attention and efforts.

The management of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd ) is

well organized and has established INDIAN RAYON (A Unit of Aditya Birla Nuvo

Ltd ) as a quality based, High speed, High performance, cost effective organization.

The co. is having an excellent management –worker relationship with

transparent and adaptive management approach.

This experience from my organization study it can be said that the co. is

constantly hardworking for the improvement of its product quality through the

adoption of world class manufacturing policy.

Thus it is a truly highly bench marked company. It does not require any

recommendation. Only one thing the co. should pay more attention towards its human

assets and technology.


Indian Rayon

CONCLUSION:

After going through the five days training program, functioning of the

organization which I observed fro that it can be concluded that Indian Rayon &

Industries Ltd. is the large scale manufacturing organization and successful player in

the VFY and chemical products. The company has the strong financial structure and

has a food reputation in the market.

However y conclusion regarding various department of the company is as

follows.

Personnel department:

At concerned with personnel department, if there are certain problems as they

are solve by mutual understanding between the personnel and the management.

Manpower planning and human assets are well organized. We can say that a present

situation of this unit is very good because of its efficient management and staff.

Marketing department:

Here, we can conclude that main marketing officer of this unit is at Bombay it

is very effective at veraval also because they are trying their best to promote sales by

the way of marketing research.


Indian Rayon

Financial department:

This company has enough sources and proper allocation of fund and defect

financial position of the company is good enough.

The company is also doing its business with the global market. In India, the

share of Indian Rayon and the total export of the VFY are highest.

The total turnover, export, profit and the Co.’s history and development all

reveals that it is highly reputed and progressive company. It is on path of success


Indian Rayon

APPENDIX:

Production & Sales quantity:

Unit

s

2008-

09

2007-

08

2006-

07

2005-

06

2004-

05

2003-

04

2002-

03

2001

-02

2000

-01

1999

-00

Production (Quantity)

Viscose

filament

rayon

yarn

MT 16,625 17,00

0

17,669 17,23

3

16,42

0

16,06

0

15,87

3

12,25

3

15,49

6

12,62

1

Caustic

soda

MT 78,574 74,46

8

67,663 57,05

1

45,45

7

39,30

5

34,87

5

23,97

6

30,62

0

27,41

9

Spun

yarns

MT 9,185 11,26

1

17,720 19,19

0

15,44

5

14,42

1

13,78

1

12,71

7

13,49

0

14,11

3

Fabric 000

MT

3,646 4,792 5,088 4,646 3,751 2,734 3,627 3,906 5,307 5,902

Urea

(merged

w.e.f. 1

Septem

ber

2005)

MT 1,069,6

91

880,9

91

1,028,0

64

575,6

46

- - - - - -

Carbon

black

MT 202,07

6

215,1

03

182,66

8

175,0

80

164,0

25

118,7

07

112,5

63

93,63

4

89,73

9

95,82

8

Insulato

rs @

MT 32,904 32,92

1

- - - - 7,673 25,27

7

25,66

5

24,35

3

Unit 2008- 2007- 2006- 2005- 2004- 2003- 2002- 2001 2000 1999


Indian Rayon

s 09 08 07 06 05 04 03 -02 -01 -00

Sales (Quantity)

Garmen

ts

(acquire

d w.e.f.

1st

January

2000)

'000

Nos.

11,754 10,96

6

10,709 11,10

4

8,332 7,552 6,173 7,068 5,884 1,130

Viscose

filament

rayon

yarn

MT 16,792 17,92

3

17,039 17,38

0

16,44

5

15,69

4

15,42

2

12,81

2

15,32

6

13,50

7

Caustic

soda

MT 77,590 74,44

1

67,226 56,95

4

45,92

0

39,34

4

34,20

7

24,11

1

31,10

4

27,51

6

Spun

yarns

MT 9,271 11,34

9

18,357 18,86

6

15,68

6

14,59

4

13,88

2

13,18

8

13,25

8

14,64

1

Fabric 000

Mtr

4,049 4,710 4,645 4,418 3,593 2,798 3,614 3,788 5,646 6,351

Urea MT 1,072,8

91

870,3

05

1,043,5

65

563,9

14

- - - - - -

Carbon

black

MT 203,82

7

214,6

17

180,89

3

175,9

44

165,0

95

118,1

82

114,2

32

94,50

4

91,73

5

94,65

6

Insulato

rs

(domest

ic sales

since

MT 32,561 32,30

4

7,776 16,24

5

9,219 6,813 7,596 25,18

4

25,69

1

23,70

1


Indian Rayon

02-03)

@

@ Insulator manufacturing unit earlier demerged w.e.f 1 August 2002, merged with

Aditya Birla Nuvo Limited w.e.f. 1 April 2007

Balance sheet:

2008-

09

2007-

08

2006-

07

2005-

06

2004-

05

2003-

04

2002-

03

2001-

02

2000-

01

1999-

00


Indian Rayon

(Rs. crore)

Net fixed

assets

1,605.

0

1,501.

6

1,308.

1

1,135.

5

810.28 737.5 684.1 775.3 814.0 885.9

Investment

s

Long-term

investments

4,982.

4

3,909.

8

3,477.

6

1,415.

3

618.3 581.6 415.9 438.8 312.6 229.8

Current

investments

730.0 97.5 371.8 260.5 81.3 160.0 98.4 1.0 31.2 114.3

Total

investment

s

5,712.

4

4,007.

3

3,849.

4

1,675.

8

699.7 741.6 514.3 439.8 343.8 344.2

Net current

assets

1,483.

7

1,458.

5

972.9 1,127.

6

462.7 318.9 359.8 425.2 438.1 441.4

Capital

employed

8,801.

1

6,967.

5

6,130.

5

3,938.

9

1,972.6

1

1,798.

0

1,558.

2

1,640.

3

1,595.

9

1,671.

4

Net worth represented by:

Equity

share

capital #

95.0 95.0 93.3 83.5 59.9 59.9 59.9 59.9 59.9 59.9

Share

warrants $

377.4 377.4 - - - - - - - -

Reserves

and surplus

(net of

miscellaneo

us

3,649.

2

3,551.

3

3,031.

2

2,124.

1

1,294.2 1,204.

8

1,104.

0

1,020.

1

1,068.

1

1,015.

4


Indian Rayon

expenditure

not written

off)

Net worth 4,121.

7

4,023.

7

3,124.

5

2,207.

6

1,354.1 1,264.

7

1,163.

9

1,080.

0

1,128.

0

1,075.

3

Long term

loans

2,651.

2

1,841.

2

1,869.

2

972.5 285.3 211.5 197.8 282.7 317.3 320.4

Short term

loans

1,848.

0

902.2 962.7 591.1 207.7 194.3 70.1 176.4 150.6 275.7

Total loan

funds

4,499.

2

2,743.

4

2,831.

8

1,563.

6

493.0 405.8 267.9 459.1 467.9 596.2

Deferred

tax liability

180.2 200.3 174.1 167.7 125.5 127.5 126.4 101.2 - -

Capital

employed

8,801.

1

6,967.

5

6,130.

5

3,938.

9

1,972.6 1,798.

0

1,558.

2

1,640.

3

1,595.

9

1,671.

4

Cash flow:

(Rs. crore) 2008-092007-

082006-07

2005-

06

2004-

05

A Cash flow from operating activities

Net profit before tax 162.3 314.6 311.1 271.8 157.1

Add: adjustments for


Indian Rayon

Depreciation 166.1 141.2 120.4 111.9 77.8

Marketing and technical know-how

written-off- - - - 3.0

Interest expenses (net) 257.4 179.0 171.2 55.8 18.7

(Profit) / loss on fixed assets sold (0.6) (7.2) (2.7) 0.3 (0.4)

(Profit) / loss on sale of investments (6.9) (1.2) (6.8) (2.5) (0.6)

Dividend income (16.8) (4.2) (23.7) (16.5) (6.4)

(Gain) / loss on long term strategic

investments / transfer

of business (net)

0.0 (0.7) (0.2) - (1.9)

Employees stock options

outstanding1.3 0.7 - - -

400.5 307.6 258.2 148.9 90.3

Operating profit before working

capital changes562.8 622.2 569.3 420.7 247.3

Add: adjustments for

Decrease / (increase) in trade and

other receivables(149.8) (141.4) (7.6) 231.5 (89.2)

Decrease / (increase) in inventories 29.0 (258.5) 28.0 (118.7) (78.3)

Increase / (decrease) in trade and

other payables85.4 102.5 (32.7) (275.6) 17.8

(35.4) (297.3) (12.3) (162.8) (149.7)

Cash generated from operations 527.4 342.8 557.0 258.0 97.6


Indian Rayon

Income taxes refund (paid) (net) (82.7) (46.1) (60.7) (81.0) (48.2)

Net cash from operating activities 444.6 278.7 496.4 177.0 49.4

B Cash flow from investing activities

Proceeds from sale of fixed assets 6.9 13.3 8.8 2.2 2.8

Capital subsidy received 0.0 - - - 0.00

Sale / redemption / (purchase) of

investments (net) (749.5) 212.3 (116.1) 257.4 84.9

Proceeds from transfer of business

(net) 0.0 5.1 34.5 - 5.4

Interest received 33.4 24.8 24.3 13.2 4.3

Dividend received 16.8 4.2 23.7 16.5 6.4

Capital subsidy received 1.6 - - - -

Increase / decrease in corporate

deposit 25.9 (89.8) 132.5 (184.6) 2.00

Purchase of fixed assets (275.7) (238.1) (302.7) (200.0) (153.7)

Investment in equity of joint

ventures0.0 - (1,596.9) (661.1) 0.0

Investment in equity of subsidiaries 948.7 (504.6) (453.8) (91.4) (44.4)

Acquisitions 0.0 - - - -

Net cash (used in) / from investing

activities (1,889.3) (572.8) (2,245.7) (847.8) (92.3)


Indian Rayon

CCash flow from financing

activities

Proceeds from issue of share capital

(including share premium) 0.0 1.7 9.8 0.0 0.0

Security premium received 0.0 339.7 759.9 0.1 0.0

Proceeds from issue of share

warrants (net of conversion)0.0 377.4 - - -

Proceeds from / (repayment of)

borrowings (net) 1,755.8 (157.8) 1,272.9 764.9 88.0

Dividends paid (including tax

thereon) (63.9) - (106.1) (27.3) (27.1)

Interest and finance charges paid (254.6) (194.6) (184.7) (62.1) (21.9)

Net cash (used in) / from financing

activities 1,437.3 366.5 1,751.8 675.6 39.1

Net increase in cash and equivalents (7.3) 72.4 2.4 4.8 (3.9)

Cash and cash equivalents (opening

balance) 97.2 22.7 20.3 9.4 13.3

Cash of IGFL and BGFL - - - 6.2 -

Cash acquired on merger of ABIL - 2.0 - - -

Cash outflow on sale of RST unit - (0.0) - - -

Cash and cash equivalents (closing

balance)89.8 97.2 22.7 20.3 9.4


Indian Rayon

Ratio analysis:

Unit

s

08-09 07-08 06-07 05-

06

04-

05

03-04 02-03 01-02 00-01 99-00

Ratios and statistics

Operating

margin

% 11.6 15.7 16.5 15.9 13.7 15.4 16.0 13.0 13.8 14.4

Gross

profit

margin

% 6.9 11.5 12.6 14.7 13.2 15.4 15.1 10.4 10.4 12.1

Net profit

margin

% 2.9 6.1 6.6 7.1 6.1 8.3 7.3 3.1 4.8 5.4

Net sales/

average

X 0.6 0.6 0.7 0.9 1.0 0.9 0.9 0.9 0.9 0.6


Indian Rayon

capital

employed

Interest

cover

(EBITDA

/ gross

interest)

X 2.0 3.1 3.1 6.5 11.4 10.7 5.5 3.1 2.8 2.5

Debt

Service

Coverage

Ratio

X 1.2 1.2 1.2 2.9 6.8 1.7 2.0 2.0 1.0 0.6

ROACE

(PBIT/

average

capital

employed

)

% 5.3 7.5 9.6 11.2 9.7 11.4 11.3 7.6 8.3 5.9

ROAE

(net profit

/ average

net worth)

% 3.4 6.8 8.4 10.5 8.7 10.8 9.4 3.9 6.2 4.6

Current

ratio

X 2.9 3.1 3.1 3.3 2.7 2.3 2.6 3.0 3.5 3.3

Debt

equity

ratio (total

debt / net

worth)

X 1.1 0.7 0.9 0.7 0.4 0.3 0.2 0.4 0.4 0.6

Debt X 0.6 0.5 0.6 0.4 0.2 0.2 0.2 0.3 0.3 0.3


Indian Rayon

equity

ratio (long

term

debt / net

worth)

Dividend

per share

Rs. 4.0 5.8 5.5 5.0 4.0 4.0 3.8 3.3 3.0 1.0

Dividend

incl.

dividend

tax (as %

to net

profit)

% 30.9 26.3 26.0 25.5 24.1 20.6 24.0 45.5 28.9 11.5

EPS

(weighted

average)

Rs. 14.5 26.1 25.6 24.5 18.3 21.1 17.0 7.0 11.0 9.3

CEPS

(weighted

average)

Rs. 29.7 43.9 41.0 38.2 31.0 35.2 32.6 23.0 22.8 20.9

Book

value per

share

Rs. 433.8 424 335 264 226 211 194 180 188 180

No. of

equity

sharehold

ers

Nos. 155,4

97

155,0

28

164,6

03

89,2

87

94,1

37

102,4

88

117,8

69

124,1

53

127,2

57

133,8

05

Closing

price as

on 31st

Rs. 445.0 1,396.

2

1,070.

9

748.

0

402.

3

188.5 75.3 71.1 80.4 56.3


Indian Rayon

March –

NSE

Market

capitalizat

ion (NSE)

Rs

cror

e

4,227.

4

13,26

5

9,992 6,24

6

2,40

9

1,128 451 426 481 337

Price

earning

ratio

(NSE)

x 30.8 53.6 41.8 30.6 22.0 8.9 4.4 10.2 7.3 6.1

Price /

book

value ratio

(NSE)

x 1.0 3.3 3.2 2.8 1.8 0.9 0.4 0.4 0.4 0.3

Exports

(FOB)

Rs.

cror

e

636.2 624.3 482.6 460.

1

447.

4

383.5 372.8 388.3 397.3 296.0

Capital

expenditu

re (net)

Rs.

cror

e

268.8 224.8 293.9 199.

9

153.

7

147.6 33.0 38.9 23.7 185.3

Strategic

investmen

ts (net

additions)

Rs.

cror

e

1,073.

1

435.4 2,063.

6

791.

9

36.7 165.8 (22.9) 126.2 82.8 5.2

* before exceptional items


Indian Rayon

QUSTIONNAIRE:

1) Is company providing accommodation?

Yes No

2) Are you satisfied with working environment?

Yes No

3) Are you feeling secured by working in this company?

Yes No

4) Are you satisfied with your superiors?

Yes No

5) Are you satisfied with the recreational facilities provided by the company?

Yes No

6) Are you satisfied with the wages / salary given by the company?

Yes No

7) Are you provided with the loan facility by the company if required?

Yes No


Indian Rayon

8) Is company providing sufficient compensation to those workers the time of

Accidents?

Yes No

9) Would you like to do job rotation?

Yes No

10) Give parameters for job satisfaction?

Yes No

11) Which kind of welfare facilities you would like to add in the list of facilities

provided by the company?

PERSONAL INFORMATION:

Name:

Age: - 20 to 3o 30 t0 40 40 to 50

Above 50

Education: - Schooling Graduation Post

Position of Job: - Permanent Temporary


Indian Rayon

Years of Experience: -

Monthly Income: - less then 5000 5001 to 10000

10001 to 15000 Above 15000

BIBLIOGRAPHY:

Literature:

financial Reports of the Financial year 2008-2009

Financial management By I.M. Pandey 4th edition

Fact and Figures of Birla Group Publication

Financial statement of Ray one Division, ABNL.

Financial management -Khan &Jain 5th edition

Human remorse management -Aswathappaa

Marketing Management- Philip Kotler

Web sites:


Indian Rayon

www. Adityabirla.com

www.indianray one.com

www.adityabirlanuvo.co.in.

www.adityabirla.com/the _group/heritage.htm

www.fabriclink.com/History.html

www.google.com


http://www.fabriclink.com/History.html

http://www.adityabirla.com/the%20_group/heritage.htm

http://www.adityabirlanuvo.co.in/

http://www.indianrayon.com/

final ir project

Documents

list of figures s

ones knowledge

treasure of knowledge

limited knowledge

lot of insight

afforded lot

lot of inspiration recognition

ashok jivanicontents