kishan cemenet bba mba project report
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PROJECT REPORT
PREPARED BY
SADARIYA PRASHANT
CLASS
S.Y.B.B.A.
ROLL NO.
73
SEAT NO
...............
ACADAMIC YEAR
2008-2009
GUIDED BY
MS.ALPA JOSHI
SUBMITTED TO: SAURASHTRA UNIVERSITY RAJKOT.
COLLEGE : SHREE GYANYAGNA COLLEGE
OF SCIENCE & MGT.
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DECLARATION
I, the undersigned SADARIYA PRASHANT a student of
S.Y. B.B.A. hereby declare that the project work presented in this reportis my own work and has been carried out under the supervision of Ms.
ALPA JHOSHI of GYANYAGNA COLLEGE OF SCIENCE & MGT,
Rajkot.
This work has not been previously submitted to any other
university for any other examination.
Date: -
Place: - Sign: -
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PREFACE
There is no under developed country in the world, which is
not struggling for change. Change that induced by the internal and
external forces of trade an commerce and industry through science and
technology demands rapid individuals and social adjustments and I
renders obsolete products and process skills, attitude an with them men
and jobs. Meetings this challenges of change is the primary
responsibility of management. An institution lacking adaptability to
change has no future adaptability to change is necessary quality to good
management.
In todays world of cutthroat competition, the Bachelor of
Business Administration (B.B.A.) graduates are sure to have an edge
over their counterparts.
The unit, which I have selected for my project report, NEW
KISHAN CEMENT PVT LTD.that is a manufacture of cement. Thevarious departments studied and visited by me are production
department, personnel department, marketing department and financial
department. The information printed in this report is a perfect match of
the theoretical concepts and practical applications. Almost all the
information is collected either from the related officers or by taking
interviews of managers and departmental heads of the organization has
collected information
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ACKNOWLEDGEMENT
With great enthusiasm I present my individual report in the S.Y.
B.B.A. The industrial training reports on NEW KISHAN CEMENT
PVT. LTD.
I convey my deepest gratitude to Mr. KALPESH MARDIYA and
all other employees of NEW KISHAN CEMENT PVT. LTD. who have
been very co-operative and helpful in preparation of my project report.
I am also thankful to Ms. ALPA JOSHI my lecturer who has
guided and corrected me throughout the preparation of my project.
Lastly, I am thankful to my friends an also my familymembers who always encouraged me and co-operated with me for the
successful completion of the project report.
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INDEX
SR, NO PARTICULER PAGE
NO
1 General information
2 Production department
3 Personnel department
4 Marketing department
5 Finance department
6 Future plan
7 SWOT analysis
8 Conclusion
9 Suggestion
10 Bibliography
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GENERAL INFORMATION
INDEX
SR, NO PERTICULER PAGE NO
1 Board of directors
2 content
3 history
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4 Size & form of the organization
5 Location of the industry
6 Goals of the company
7
BOARD OF DIRECTORS
M.D. Mr. Rajan V. Vadalia
Chairman Mr. Rajan V. Vadalia
Director Mr. Navneet Vadalia
Director Mr. Ketan Vadalia
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Director Mr. Hasmukh Maradia
Auditors H. Jamnadas,
Heera Panna,Rajkot.
Banker Dena Benk
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CONTENTS
Name of Company: - New Kishan Cement Pvt.
Ltd.
Area of Location: - Shapar-Vereval
District-Rajkot
State-Gujarat
Year of Establishment: - 1994
Registered office: - NEW KISHAN CEMENT,Gandhi chambers,
Gondal Road,
Rajkot-360 002
Size of Unit: - Small Scale
Line of Activity: - Manufacturing of Portland
Cement
Accounting Year: - April to March
No. of Employees: - 50 skilled workers
25 staff members
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BRIEF HISTORY
The origin of New Kishan Cement goes back to 1994 when
its young founders constituting the Board of Directors, started
the company, which was namedNEW KISHAN CEMENT,
with an initial capital of Rs. 10 only.
Synchronizing with these ideas of Central Government and the
Government of Gujarat for the growth and the development of themedium and large-scale industries for achieving the objectives like the
development of the industry for gainful employment and balanced
industrial development.
Hence, the promoters of the project had decided to set-up a unit in
the village of Shapar in the city of Rajkot to the manufacturing of the
finished ordinary Portland cement installing a cement plant.
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SIZE & FORM OF THEORGANISATION
On the basis of the size plant of the industries can classified in the
following categories.
1. Large scale
2. Medium scale
3. Small scale
Small scale industries are mainly labor intensive industries while
large scale industries are capital intensive industries.
In case of NEW KISHAN CEMANT PVT LTD.It is a medium
scale industry because its initial investment is more than the limit of
small scale industry.
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LOCATION OF INDUSTRY
Theoretically speaking a part of industry is a place where
main money and machinery are brought together for manufacturing the
product thus it involves the basic problems of the place where the plantto be located.
Plant location means deciding a suitable location area place
etc.
NEW KISHAN CEMENT PVT LTD. is situated as under
NEW KISHAN CEMENT PVT.LTD.
SHAPAR-VERAVALDistrict-Rajkot
State-Gujarat
Some of the main factors are affecting to take the decision of
plant locate are as a follows.
Near to the market
Transportation facilities
Infrastructure facilities
Raw material availability
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Labour availability
Natural resources
GOALS OF THE COMPANY
Every company wants to achieve the higher goal but as on
behalf of this industry NEW KISHAN CEMENT PVT LTD. to
scale their product only national level but they planning to
international level and achieve the higher growth.
And try to provide the more and more satisfaction customer
and prepare higher quality product and scale it in the market.
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PRODUCTION INDEX
SR NO. PARTICULARS PAGE NO.
1 Introduction to production department 12
2 Introduction to unit department 13
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3 Organizational chart 14
4 Raw material & its sources 15
5 Production process 16
6 Plant location 19
7 Plant layout 20
8 Plant maintenance 21
9 Quality control 22
10 Inventory control 23
INTRODUCTION TO THE PRODUCTION
DEPARTMENT
Production is the basic activity of the industrial unit. All
other activities revolve around this activity. The end product of the
production activity is the creation of the various goods and services for
the satisfaction of human wants. Production involves step-by-step
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conversion of one form of material into another through various
chemical and mechanical processes to create of enhance the utility of the
product of the service.
Production management deals with the decision makingrelated to the production process so that the resulting goods and services
are produced according to the satisfaction in the amount and by schedule
demanded and at the minimum cost.
INTRODUCTION TO UNIT DEPARTMENT
This department which is related with the technical and the
manufacturing of the cement and are also responsible for all the
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activities of the technical and controlling of the production and
technical.
The following persons are the heads or responsible for this
department: -
Mr. Navnitbhai G. Vadalia
Mr. Rajanbhai V. Vadalia
If we consider, the production, the manufacturing process
related with the machines and workers and files are also maintained.Finally, the department sends the report to the Head Office at Rajkot.
ORGANIZATIONAL CHART
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RAW MATERIALS AND ITS SOURCES
DIRECTORSDEPARTMENTAL
HEADMANAGER
ASSISTANT
MANAGER
EXECUTIVE
STAFF
WORKERS
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The main raw materials that are used for the manufacturing
of the Portland cement (53Grade) used by the company are:-
Limestone
Clay
Coke-breeze
Silica
The raw materials are bringing purchased from porbandar, Rajkot,Ranavav and again Porbandar respectively.
PRODUCTION PROCESS
MINING OF LIMESTONE
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CRUSHING
STACKING
RECLAIMING (BELT CONVROYR)
RAW-MILL GRINDING
STORAGE
PRE-HEATING
KILN
CLIN KERISATION
COOLER CLINKER(STORAGE)
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CLINKER GRINDING CEMENT MILL(ADDING GYPSUM)
CEMENT STORAGE (SILO)
PACKING PLANT & TRANSPORTATION
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PRODUCTION PROCESS
GRINDING :-
The raw material called limestone, lignite, petcock, silica
are mixed in appropriate percent and grinded by the mill called raw mill.
The product obtain from the raw mill is called raw mix.
HEATING :-
The raw mix is mixed with 13 to 15% of water to make
lodles. Then the lodles spread inside the kill. That material burnt inside
the kill at the temperature of 1300 . To 1400. C. The burnt material is
called Clinker.
MIXING :-
After clinker is obtain 1 to 2 % of gypsum is mixed and
grinded by the mill and the final product obtain is called cement.
BRANDING :-
The word brand is comprehensive term. It means a sign or
symbol of quality. Branding is the best means to capture and retain the
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consumer demand in a competitive market. All product of the unit are
sold under the same brand KISHAN
PACKING :-
The unit has its packing department. The company mainly
looks for packing of its product. The product is filled in airtight bag of
50 kg with its price on its bag.
LABELING :-
Label is a part of a product. It gives verbal information
about the product and the seller. It is apart package, which can be
directly attached to the product.
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PLANT LOCATION
The location of the industry plays an important role in the
success or failure of the organization. It plays a vital role in the
development of the unit. Thus, a god location may reduce the cost of
production and distribution helps in evaluating either the competitive
strength or the profit margin of the business. Therefore, the site for the
factory should to select very carefully.
New Kishan Cement Pvt. Ltd., which is situated at Shapar-
Veraval, Rajkot. Due to its location it enjoys many advantages such as:-
As it is developed in a backward area, the government provides it
with incentives.
Electricity is widely available at their place by an own generated
power by D.G. set
Raw material, which is required for the production process, is
easily made available.
Infrastructure facilities such as communications water, road, etc.
are well established.
Moreover, it is situated near to a well-developed city like Rajkot,
one of its domestic markets.
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PLANT LAYOUT
The plant layout is the overall arrangement of the production
process, store-room, tool room, etc. and all other accessories required
for facilitating the production an d service facilities and provides for the
most effective utilization of men materials and machines consulting the
process, it is a master blue-print for coordinating all operations
performance inside the factory.
According to F.G. MOORE-A good layout is one which allows
materials rapidly and directly for processing. This reduces materials
rapidly and directly for the processing. This reduces transport handling,
clerical and other costs per unit space requirement are minimized and it
reduces idle machines and idle men.
There are mainly two types of Plant Layout: -
Process Layout
Product Layout
In New Kishan Cement Pvt. Ltd., the type plant layout found is
known as product layout. Where the machines are placed in such a
manner that it helps only in the production of one type of product.
Generally, product layout is found in all those industries, which are
engaged in the manufacturing of the cement.
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PLANT MAINTENANCE
The efficiency of the production functional reliability of the production facilities, which are nothing but a package of land,
building,etc., and plant services such as power plant, gas, water supply,
etc. All these facilities are subject to wear and tear simply by elapse of
time or by the frequency of their use. The basic aim is to keep all the
production facilities in a constant and smooth servicing function and
thus involves indirect costs of production activity.
In other words, maintenance is not just a repair function,
but also a combination of any actions carried out to retain an item in, or
restore it to an acceptable condition. This, contributing to the revenue by
reducing the operating cost and increasing the quality and quantity of
the production.
It is necessary to devise appropriate maintenance system. In
New Kishan Cement Pvt. Ltd., maintenance request maintaining the
production staff details, the defect and the possible rectification
required. There is an Asset or Facilities register where there is detaileddescription of each physical asset such as name, code, vendors spares
vendors, interchangeable parts, etc. the register is maintained on the
basis of the asset classification in terms of usage, technical category and
maintenance methods.
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QUALITY CONTROL
The quality control department inspects the basic raw
material, which is procured, for quality assurance test.
In this department various physical and metallurgical tests
are undertaken before issuing the raw material to the production
department.
In New Kishan Cement Pvt. Ltd., not only the raw materialis checked but also the final output is checked before it is dispatched off.
The material is tested in the laboratory with some special tools and
equipments.
This process is necessary in order to get sufficient and
effective management production.
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INVENTORY CONTROL
Inventory control refers to the process whereby the
Investment in materials and parts is carried in stock is regulated within
the predetermine limits set in accordance with the inventory policy
established by the management.
Inventory is defined as a usable resource, which is physical
and tangible such as materials. Though inventory is a usable resource, it
is also an idle resource, unless it is managed efficiently and effectively.
Inventories constitute the largest component of current assets in many
organizations. So poor management would therefore result in the
business failure. Hence, efficient inventory control therefore can
significantly contribute to the overall profit-position of the organization.
In New Kishan Cement Pvt. Ltd., the inventories are
adequately and efficiently maintained so that they are made available as
and when required.
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PERSONNEL DEPARTMENTINDEX
SR NO PARTICULARS PAGE NO
1 Introduction to personnel department 26
2 Introduction to the units department 27
3 Organizational chart 28
4 Recruitment, Selection and Induction 29
5 Wage and Salary Administration 30
6 Staff Welfare Activities 31
7 Working Hours 33
8 Trade Union 34
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INTRODUCTION
The importance of personnel management is being increasingly
realized in industrial and non- industrial organization in India as well as
abroad. The management of the human resources is a very complicated
and a challenging task. It concentrates with the activities related to the
human element of the organization. A personnel manager solves the
problem of manpower and keeps their morale and motivation high.
Personnel management is regarded as a must for
successful running of the enterprise. A proper management
resource helps the organization to maximize the utilization of
other resources.
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INTRODUCTION TO THE UNITS
DEPARTMENT
This department is mainly responsible for the recruitment,
selection, training, development, promotion, etc. all that is related to the
employees.
The person responsible to the departments is as follows:-
Mr. Navneet G. Vadalia
The department maintains all the details regarding its employees for
their reference in future and as and whenever required.
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ORGANIZATIONAL CHART
In order to solve the personnel problems efficiently and in a
responsible manner, it has become necessary to establish a separatepersonnel department in the organization. It is one of the most important
parts of the organization.
The organizational chart of New Kishan Cement Pvt. Ltd. is as
follows: -
DIRECTORS
PERSONNEL MANAGER
ASSISTANT
WORKERS(STAFF)
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RECRUITMENT
The recruitment process started with identification of vacancies to
be filled up it is basically concerned with the identification of sources
from where the personnel can be employed and motivating them to offer
for the employment.
According to EDWARD FLIPPO recruitment is both positive
and negative activity. It is process of searching for prospective
employees, stimulating and encouraging them to apply for job in an
organisation.
There are mainly two types of sources to do the recruitment INTERNAL SOURCES
EXTERNAL SOURCES
IN KISHAN CEMENT PVT LTD.. recruitment is done through
internal sources such as when any vacancies, occur, existing, employees
are given first preference they are promoted or transferred on the basis
of merit seniorities of performances.
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SELECTION
The object of manpower selection is to as certain clearly the type
of person rallied and to secure an appropriate candidate for filling that
position it is also concerned with security relevant information about an
applicant.
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INDUCTION
Induction is a technique by which a new employee is rehabilitated
into enhanced surrounding and introduced to the practiced, policies and
the objective of the organization. In other words it is a welcomingprocess. The idea is to welcome a new comer make him\her fell at home
and generate a feeling of belongingness, however its small but is
meaningful and has significance as a part of total organization.
Process of Induction.
Firstly, information is given to newly appointed person to whom
he has to given a report and the place of report.
Secondly, the respective manager welcomes the employees.
Thirdly, it gives overall information about the department in
which he is designated.
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WAGES AND SALARY
ADMINISTRATION
The wage and salary administration is concern with the financial
aspects of needs, motivation and rewards.
WAGE is the remuneration paid for the service of labor in
production, periodically to an employee or worker, which is a blue
collared worker.
SALARY refers to the monthly or weekly rates paid to the
clerical, administrative and professional employees, that is, white collar
workers.
New Kishan Cement Pvt. Ltd. provides minimum wages to the
unskilled laborers who are appointed on the daily basis, basically, the
wage and salary paid to the employees in the organization ranges from
RS. 10,000, accordingly.
Management also provides certain extra facilities to its workers. It
provides its workers with 8.33% bonus in March.
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STAFF WELFARE ACTIVITIES
Today it is a proven fact that the employees are the most
important assets of a business unit. To motivate and to increase their
morale it becomes necessary for every unit to perform its activities,
which can be helpful in achieving the best results.
New Kishan Cement Pvt. Ltd. provides the following facilities to
its employees-
Leave Facilities:-
New Kishan Pvt. Ltd. provides leaves to its employees on alternative
basis that is if in this week the employees of the morning shift were on
leave then in the next week the employees of the other shift would get
leave.
The workers can enjoy the following leaves during the
year:
15 days earned leave
07 days casual leave
07 days sick leave
The administrative staff can enjoy the following leave during theyear:
27 days earned leave
07 days casual leave
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o7 days sick leave
Holidays:-
New Kishan Cement is found to be on a holiday only on 2 occasions,
that is at the time of Diwali and Janmastami otherwise, the company is
working on all the 365 days.
Food and Shelter:-
New Kishan Cement Pvt. Ltd. provides its employees with good
food by making canteen arrangements for them, were food is being
provided as and when required.
New Kishan Cement Pvt. Ltd. also provides good shelter
facilities to its employees by allowing leaving in the quarters, whichare being built in the factory premise only
Provident fund:-
The company provides the facility of Provident Fund as per
the Govt.s Act for provident fund.
Bonus:-
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Each employee is paid 100% bonus once a year that is in
March. Thus, by giving bonus to its employees it gives job
satisfaction to its employees.
First Aid:-
The first aid box is always kept in the company so that the
first aid facilities are being provided immediately to any of the
employees as and when required.
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WORKING HOURS
It has been assumed that number of working days per year would
be 300 days and factory would work in 3 shifts a day.
The company works in 3 shifts, that is:
The morning shift - 04:00 AM to 12:00PM
The afternoon shift - 12:00 PM to 08:00PM
The evening shift - 08:00 PM to 04:00AM
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TRADE UNIONS
A trade union is defined as a continuous and voluntary association of thesalary or wages earners and engaged in whatever industry or trade, formed for
safe guarding the interests of its members, maintaining and improving the
conditions and securing better relations between them and their employees,
through collective bargaining.
As in every company, New Kishan Cement Pvt. Ltd., also has a trade
union, where there is one union leader and others as its followers. The leader
tries to present and solve all the problems of its co-workers by presenting it tothe management and provide them with the required satisfaction.
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MARKETING DEPARTMENT
INDEX
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SR NO PARTICULARS PAGE
NO
1 Introduction to marketing department
2 Introduction to the unit department
3 Organizational chart
4 Market Segmentation
5 Pricing policy
6 Market research
7 Channels of Distribution
8 Sales policy
9 Advertising
10 Competitors
INTRODUCTION
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Marketing management represents an important functional area of
business management for the flow of goods and service from the producers to
the consumers. It looks after the marketing system of the enterprise. Marketing
management performs all the managerial function in the field of marketing.
Marketing is a social and managerial process by which individuals and
groups obtain what they need and want through creating, offering, and
exchanging products of value with other. Marketing management is a task of
influencing the level, timing and composition of demand in a way that will help
the organization to achieve objectives.
Introduction to units department
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This department is responsible for the selling and
marketing activities. Respective files are maintained here.
The persons responsible for the department are as follows: -
Mr. Rajanbhai V. Vadalia
Mr. Ketanbhai L. Vadalia
Mr. Navnit G. Vadalia
This department contains all the selling processes. It alsomaintains certain useful books such as the order book ledger, bank
register, etc. which are required and necessary to be maintained.
ORGANIZATIONAL CHART
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The organizational depends upon the nature of the sales
promotion, distribution, market research, and other activities that are
directly or indirectly connected with the market.
The organizational chart of New Kishan Cement Ltd.is as
follows:-
MARKET SEGMENTATION
It means the process of taking the total homogenous market
for a product and dividing it into several sub homogenous parts.
DIRECTORS
MARKETING MANAGER
SALES STAFF
9AGENTS
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The market of the firm is segmented on the following
geographic basis.
LOCAL
In local segment, the firm covers all the areas of Saurashtra
in which it sells out its products to its customers.
NATIONAL
In national segment, they provide their product to various
other states of their country.
INTERNATIONAL
In international segment, they provide their product to
various other foreign countries.
PRICING POLICIES
Pricing is the only variable factor determining the revenue
income. The pricing of the product of the company is done considering
the following:-
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PRICE = Raw-Material Cost + Variable Cost + Transportation
Cost + Duties + Profit Margin.
MARKET RESEARCH
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It has a wider meaning and scope. It is the systematic
gathering, recording and analyzing the data about the problems
connected with the market place, problems like pricing etc.
New Kishan Cement Pvt. Ltd goes for market researchthrough internal sources. They conduct meetings with their agents and
collect information about the present market conditions. It is useful in
the field of high selling and rising demend.
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CHANNELS OF DISTRIBUTION
The distribution channel adopted by New Kishan Cement is
as under: -
MARKETING MANAGER
AGENTS
DEALERS
CONSUMERS
THE DISTRIBUTION CHANNEL IS INPORTANT
FACTOR OF MARKETING TO BOOST UP THE SALES OF THE
COMPANY.
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SALES POLICY
There are generally 2 types of marketing policy, that is
Cash
Credit
New Kishan Cement Pvt. Ltd., goes for both policies that is, it
gives goods on cash and even at times on credit further giving 2%
cash discount. It depends upon the size of the order. Generally, it
goes for credit policy.
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ADVERTISING
It means the paid communication of the goods, services ar ideas
by the identified sponsors. It is a paid communication for the
advertiuser has to pay for the space or time in which advertisement
appears.
New Kishan Cement Pvt. Ltd. Goes for advertising in thr
newspaper, magazines, radios, and at times also on television.
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COMPETITORS
In the fast growing world of technology almost each and
every company may be having some or the other competitors.
The company, New Kishan Cement Pvt. Ltd., faces
competition from the following competitors in the local market.
Decora Cement
Kangaroo Cement
Sandhi Cement
And Many More
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FINANCE DEPARTMENT
INDEX
SR NO PARTICULARS PAGE NO
1 Introduction to units department 49
2 Organizational chart 50
3 Total capital 51
4 Means of finance 52
5 Capital structure 53
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INTRODUCTION
In this department, all necessary files and other required
information are, maintained by the employees and the responsiblemanagers.
The person responsible for the department is as follows: -
Mr. Rajanbhai V. Vadalia
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ORGANIZATIONAL CHART
The organizational chart of New Kishan Cement Pvt. Ltd.
is as follows: -
TOTAL CAPITAL
The total capital means the amount of the capital being
required by the company to continue its activities, not only at the time ofincorporation but also for the diversification, modernization, and
expansion, etc., of the company. The capital is also used for carrying on
the routine activities of the company. Not only this, the capital is also
for used for the purchase of the capital foods and also for the purchase
DIRECTOR
A/C & OFFICE ADMINISTRATOR
OFFICE MANAGER
ACCOUNTANT
OTHER STAFF
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of the raw materials and also running the routine business activities
successfully.
The total amount of capital initially with the company that
is at the time of incorporation was RS. 5 corers. At present that is afterthe expansion and modernization of the total amount of capital
maintained with the company is approximately RS, 12 Corers.
MEANS OF FINANCE
The means of the finance for the company, New Kishan
Cement Pvt. Ltd., are as under: -
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Dena Bank
Share Capital
Private Savings
Loans from friends and relatives
CAPITAL STRUCTURE
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The term capital structure refers to the proportion of the
debt and equity capital. It can be legitimately expected that if the capital
structure or the financing leverage decision affects the total value of the
firm then the firm should select such a financing mix as well maximize
the shareholders wealth. Such a capital structure is referred to as theoptimum capital structure. In other words, reasonable proportion of debt
and equity capital is called as optimum capital structure; this leads to the
maximum value of the firm.
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SWOT ANALYSIS
The full form of SWOT analysis means:
Strength
Weakness
Opportunity
Threat
The SWOT analysis of New Kishan Cement Pvt. Ltd. is as follows: -
Strength
Happy and contented work force
Efficient management
Weakness
Less production capacity comparatively
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Opportunity
Expansion in untouched markets
Scope of diversification that is manufacturing different types of
cements.
Threats
Competition from various other companies like the kangaroo
cement, Decora cement, etc.
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SUGGESTIONS
As a student of B.B.A. I would suggest that the unit should go for
brand awareness, expand their market size go for more of
advertisements on the televisions, etc
However, if would be just and proper if hey continue to offer theirpresent services with profit.
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CONCLUSIONS
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New Kishan Cement is a very well known firm. It tries to
provide employment more to the unemployed persons and runs the unit
for the betterment of the country, as one of its objectives.
The company administrates all the departments quiteefficiently and effectively. As a result the industry is running with profit
since the year of commencement.
The management has good industrial relation with the
employees and the workers; they are also given the benefits like
Provident Fund, Bonus, etc. Thus, we can say it sets a good example to
the rest. The professional managers, who are aware of the popular
principles and practice of the management; are managing the company.
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BIBILOGRAPHY
Without the theoretical knowledge, we cannot write more
about all the departments like: Personnel, Financial, Marketing and
Production and so I referred the following books.
Production and Operation Management
By Chunawalla Patel
Personnel Management
By C.B Mamoria
Marketing Management
By S.A. Sherlekar
Financial Management
By Khan & Jain By Taxman
www.kishancement.com
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