An

Industrial Training Report

On
AMBUJA CEMENT LIMITED
(KODINAR)

Submitted By
Meghna V. Vadariya

S.Y.B.B.A. (A)
Roll No. 56

Guided By
Prof. Anish Durvesh

Submitted To
Saurashtra University

Page 1
 Rajkot

Shri Patel Kelvani Mandal College of

Technology
College Road, Junagadh.

Academic year
2015-2016

Page 2
 PREFACE

Now a day in modern business there is requirement of high skill. And skill is
refaced to the practical as well as theoretical knowledge and to improve skill
both are important at high rate in the business. And in S.Y.B.B.A I get the chance
to improve my skill on the way of study.

I am really thankful to “Saurashtra University” because they included one

of the different subjects with the other six subjects. And the subject is
“FIELDPROJECT IN BUSINESS” as per the Bhavnagar university in S.Y.B.B.A the
student have to collect the information, and understand process of three
department like finance department, human resource depart department,
marketing department, production process and get a training after choosing a
one company. So, as a student I select “Gujarat Ambuja Cement Ltd.” which is
situated at Kodinar.

I tried maximum as my level to collect information of all the department of

the company "GUJARAT AMBUJA CEMENT LTD". Like finance department,
human resource depart department, marketing department and production
process. And after complete this project I really understand the field work is
really very important in the business as well as in study to improve our skill.

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During the project time I give maximum attention to understand function of
management.

- Meghna V. Vadariya

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 ACKNOWLEDGEMENT

I am really heartly thankful to our management of P.K.M. College because

without their guidance I cannot able to complete and submit my project
within the time period. I am also especially thankful to Director Dr. Praful
Kanjiya, and Anish sir who provide very nice guidance to full fill my project.

And as my duty I cannot forget my duty to thankful to “GUJARAT AMBUJA

CEMENT LTD” company which is situated at Kodinar, who provide me better
& latest information about all the department and process of all departments.
I am also thankful to branch of Bhavnagar, approved by Ambuja cement Ltd.
Because it is the link between us and “GUJARAT AMBUJA CEMENT LTD” .and
it really works as a chain between us and “GUJARAT AMBUJA CEMENT LTD”.

- Meghna V. Vadariya

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 DECLARATION

I, undersigned, Meghna V. Vadariya the student of S.Y.B.B.A., Shri P.K.M.

College of Technology & B.Ed., Here by declared that this Project Report is my
own work and it has been carried out under the guidance of Prof. Anish Durvesh.
This report has not been submitted to any other University for examination.

Place:-Junagadh

Date:- 26th March 2016

Meghna V. Vadariya.

Page 6
 INDEX

SR PAGE
CONTENTS NO.
NO.
1 General Information
2 Financial Department
3 Production Department
4 Marketing Department
5 Human Resource Department
6 Awards and Achievements
7 Future Plans
8 Suggestions
9 Conclusion
10 Bibliography

Page 7
Page 8
 INTRODUCTION OF COMPANY

AMBUJA CEMENTS LTD.

Their people practice a simple philosophy.

“Give a man orders & he’ll

Do the task reasonably well

But let him set his own targets,

Give him freedom & authority,

And his task becomes

A personal mission:”I CAN”.

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 Ambuja Cement Limited is India’s one of the major Company in the
cement industry. Its first plant “Ambuja Cement” was begun in 1986 & is located
near the coastal town of Kodinar in the Saurashtra region of Gujarat. The area has
huge deposits of limestone, a key of ingredient in the manufacturing of high
quality of cement.

The plant with an installed capacity of 0.7MTPA (million tons per year)
was a huge success with some equipment changing and optimizing the existing
plant company had produced 1MTPA from the plant. Then another plant “Gujarat
Line-1” again with an installed capacity of 1MTPA was erected in the same area
and commissioned in 1992. Then a new unit “Gujarat Line-2” with an installed
capacity of 1 MTPA was erected in the same area and commissioned in 1996.
Then through continues improvement Ambuja unit and Gajambuja line -1 have
upgraded by 0.5 MTPA each. In addition to these plants Ambuja Cement Ltd. has
packing units at Surat (Gujarat) and Panvel (Maharashtra). Loose cement is
dispatched to these locations by sea-route.

Ambuja has large port facility at Muldwarka, near Kodinar. Ambuja

Cement Ltd. has seven ships to carry the bulk cement to the packing units. This
has brought substantial saving by bringing down the transportation costs, which
plays a major role in deciding prices. Bulk cement is also exported to Srilanka,
the island Mauritius and gulf Country. Ambuja Cement Ltd. has captive power
plant comprising of 58bmw DG sets and is self-sufficient.

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 HISTORY & DEVELPOMENT
In India, manufacturing of cement was first started in Madras in 1904.First
three companies were started in 1912-1913 and real beginning was started. When
the plans started there were 21 factories with an annual capacity of 328 million
tons. After 1949 the cement industry had a complete interference of govt. the
production, distribution and price of cement and this hampered the growth of
industry. It was only in 1977 that govt. announces 12% post tax return on net
worth, which was fair enough, and retention price would be fixed to ensure it.

The rapid growth of the Indian economy has developed the basic industries
like cement, iron and steel and fertilizers have prospered. This is also a result of
the govt.’s incentives of developing such industries. At the time of the installation
of this plant, there was not any cutthroat competition in the cement industry.

Thus, the above mentioned are the main reason, which encouraged this
organization to enter into the cement industry. The Ambuja Cement Ltd. is a
company, which has been promoted by the Gujarat Industrial And Investment
Corporation Ltd.

The company started its commercial production in October in 1986. Later

the company in order to expand its production setup and another plant in Kodinar
itself called Gajambuja Line-1 in 1992 followed by the third one Gajambuja Line-
2 in 1998 making the total production to reach approximately three million tons
per annum marks.

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 COMPANY PROFILE
Name Ambuja Cement Ltd.

Address QATER No :F 219,

HDFC ATM,
Ambuja Nagar,
Kodinar – 362715,
Gujarat, India.
Contact No.
(02795) 237829/ 30/ 31/ 32
E-mail [email protected]

Fax No. (02795) 232163

Chief Promoter Mr. Narotam Sekhsaria

Mr. Suresh Neotia
Size of Unit Large Scale Unit

Form of Organization Private Limited Company

Bankers State Bank of India

Bank of Baroda
Dena Bank

Year of Establishment September, 1986

Main Products Cement

Brand Name Ambuja Cement

Market International Market

Slogan Giant Compressive Strength

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 PRESENT MANAGING BODY

 Mr. Suresh Neotia : Chairman Emeritus

 Mr. N. S.Sekhsaria : Chairman
 Mr. Paul Haribhakti : Vice Chairman
 Mr. Ajay Kapur : Managing Director & CEO
 Mr. Onne van der Weijde : Managing Director
 Mr. SanjeevChuriwala : Chief Financial Officer
 Mr. Rajiv Gandhi : Company Secretary
 Mr. Bernard Terver : Director
 Mr. Bernard Fontana :Director
 Mr. Rajendra P Chitale :Director
 Mr. Nasser Munjee : Director
 Mr. OmkarGoswami : Director
 Mr. B. L. Taparia : Director
 Mr. ShaileshHaribhakti : Director
 Mr. HaigreveKhaitan : Director

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 SIZE OF THE UNIT

Size of industry is decided on the capital investment of unit is fixed

assets. The size of industry is classified in four type and they are as under.

(1) Small Scale Industry

(2) Medium Scale Industry
(3) Large Scale Industry

1. Small Scale Industry:

The investment of an industry in its fixed assets does not exceed Rs. 3
crores are known as small scale industry.

2. Medium Scale Industry:

The investment of an industry in its fixed asset is more than Rs. 3 crores
but not exceed Rs. 5 crores are known as medium scale industry.

3. Large Scale Industry:

The investment of any industry in its fixed assets is more than Rs. 5 crores
are known as large scale industry. “Ambuja Cement Ltd.” is large scale
industry. Its total capital is Rs. 86crores investment in plant and machinery.

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 FORM OF ORGANIZATION

Whether, a particular type of organization will be suitable to a particular

type of business or not is largely dependent upon different factors e.g. nature of
business, motive and incentives, finance requirement, scale of operation etc.

A comparative idea for different forms of business organization is given

below:

 Sole proprietorship
 Partnership
 Joint Hindu Family Business
 Co-operatives
 Joint Stock Company
 Public Enterprise
 Private Enterprise

The name of the unit in which I prepared report on Ambuja

Cement Ltd. The name Ambuja Cement Ltd. itself suggest Ambuja
is a Public Company. Ambuja Cement Ltd. is public company
having common scale and liability.

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 ORAGANIZATION STRUCTURE

General organization chart is a blue print of company organization.

Anybody understands a position of employees. General organization structure
process is very important and hard process.

We can understand an authority and responsibility of officers and

employees. And also general structure showed a relationship between officer to
officer, employees to employees. And also shown a group activity, so best
structure means a best result.

According to my observation, authority is in the hand of top level

management and responsibility rests with medium and low level management.

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  ORGANIZATION CHART:

Page 17
 FACTOR AFFECTING LOCATION

Location of unit is most important factor for to be consideration for

successful working of any organization. It also plays vital role in the development
of the unit. The total cost of manufacturing cost of any business unit is higher due
to the wrong selection of location of their business. The main object of an
industrial concern is to maximum profit through minimum of production cost.

Ambuja Cement Ltd. is situated near Vadnagar village in Kodinar. The

location of the plant is very beneficial for its existences as the area is surrounded
by limestone, which is one of the basic raw materials in cement production.
Company is also benefited as the area of the plant site is near the sea coast which
facilitates the transportation through sea route. Ambuja has also developed its
own seaport for transporting cement to other destinations. This has helped
Ambuja Cement Ltd. to export their product easily through seaport directly
increasing the export of their goods.

Location factors are very much important in establishing a cement plant.

1. Input
In terms of input, about 1.5 tons of limestone is required to produce one
ton of cement. Hence location of the plant is based on the limestone
deposit. The major cash out flow come by way of royalty and cash
payments. India’s estimated total reserve of cement grinding stone is about
90 billon tons.

2. Power

It is used in raw material grinding. Clinkerization of lime stone is done in

the kiln operation and then clinker is grinding with gypsum to form
cement. The older plant required 120 to 130 units per ton of cement
produced, while modern energy efficient plants consume 80 to 90 units

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 per ton. Cement manufacturing is continuous process, so quality of power
plants is important.

3. Coal

Coal is another major input, which along with electricity forms 40% of
total cost. There is a several coal shortage for the industry. The coal is
generally imported from certain African countries, which are unloaded at
companies’ Muldwarka port that is near to the factory site.

4. Labor

On growing modernization of plants, the requirement for skilled man

power has increased then that of unskilled man power. The cheap
availability of labor from the nearby areas has proved to be great help for
the company.

5. Transportation
It is a very important thing to be kept in mind while deciding the location.
It cost widely affects the overall cost. The seacoast is one of the important
transportation modes for exporting companies. The company has its own
jetty at Muldwarka. This reduces cost of transportation for the company.

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 CONTRIBUTION OF UNIT TO THE INDUSTRY

Ambuja Cement as a large scale manufacturing unit contributes to the unit,

contribution to the country, contribution to the society and government it many
ways.

Ambuja Cement is the most profitable cement company in India, and one
of the lowest cost procedures of cement in the world. Ambuja Cement can now
join hands with a distinguished organization that has been a fountainhead of ideas
and talent for the cement industry.

Ambuja cement foundation has made to improve the quality of life in

communities across the country. Ambuja cement foundation is give contribution
to water resource management, skill development training, agriculture, health and
education.

Its profited ring played an important role in the economic growth. Ambuja
Cement is helping it India as well as other countries also

Page 20
 .

Page 21
 Introduction

“Money is the life blood of business”

Money is one type of factor of production which is known as capital. It is

sure that the money is required for starting of the business, expansion, for
development of new unit, and liquidation of the business.

Thus the money is required the starting of business to liquidation of

business of the business. The money is work as lubricant oil in the business. So,
without money the business cannot even start. So the company has to attention on
how they get money, how they utilize the money, how they invest it to get
maximum interest……this all the thing is known as financial management.

FINANCE means procurement of fund and maximum utilization of fund

which available in the business. So, it is required to control on the money and it
known as financial management.

Financial management is a planning, efficient allocation of funds and

control on the money. Financial information is required for:

1. Share holder
2. Creditors

Looking to the importance of financial management G.A.C.L. has

established a separate financial department which is made financial budget for all
over the company and solves the problem of finance in the company.

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 ORGANIZATION OF FINANCE
DEPARTMENT

In Gujarat Ambuja Cement Ltd., the finance & account department is

headed by the Vice President (Finance). Under him there are 2 group of executive
and its chart is as……….

In G.A.C.L all the authority is establish to the vice president of finance and
he has to maximum utilization of fund.

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 BANKERS

The G.A.C.L is gating finance or banking facility by……………

Bank of India
Dena Bank
Bank of Baroda
Punjab national Bank
ANZ Grind lays Bank

Page 24
 CAPITALIZATION
Capitalization means total funds required for doing business, funds like
equity fund, borrow fund, fixed asset, current asset etc…as per financial point of
view capitalization is required for earning fair rate of return on the investment. In
other word, the Capitalization refers to the decision regarding the total
requirements of long term funds.

Types of capitalization:

There are three type of capitalization

(1). OVER CAPITALIZATION.

It Means the real value of share is reduced then the book value of the asset.
It occurs when the real value of the assets is less than the long term funds of
company.

(2). UNDER CAPITALIZATION

It Menace real value of share is higher than book value of the assets. It
occurs when the real value of the assets are more than the long term funds of
company.

(3). FAIR CAPITALIZATION

It menace real value of share & book value asset is equalize each other.

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 CAPITAL STRUCTURE

The G.A.C.L is public limited company so the company has issued the
equity share capital which is known as long term capital. To handle capital
structure is very difficult task. Capital structure of the company involves many
functions like borrowed capital, owner's capital, share capital. Borrowed capital
means the capital borrowed from the out spiders. It may be another company,
some banks or from some industries share capital means capital gain from funds
and shares. The capital structure of GUJARAT AMBUJA CEMENT LTD. Is
as….

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 MANAGEMENT OF FIXED ASSETS

Generally there are two types of assets:

(1). Fixed Assets:-

The fixed asset are those asset which gives long time benefit in the
business like plant, machinery, equipment, building etc. The investment in fixed
asset of G.A.C.L. is RS. 3469.89(in cores). The design of plant is derived from
the Germany; it was the latest cement plant in Asia.

(2). Current Assets:-

The current assets are such asset which gives short time benefit and which
are use day to day in business. Like inventories, cash and bank, loan and advance.

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 MANAGEMENT OF WORKING CAPITAL
Working capital means short time assets and liabilities. To done the
continuous routine activity we need some working capital so, in simple word
working capital is nothing but analysis of Current Assets & Current Liability.

There are mainly two concepts of working capital.

(1) Gross Working Capital

(2) Net Working Capital

Gross working capital is the capital investment in the term current assets
i.e. cash, short term securities, debtors, bills receivable and stocks etc.

Net working capital is the difference between current assets and current
liabilities. Working capital management mainly on three bases……..
(1) Management of inventory.
(Value of raw material, working process, finished goods and scrape)
(2) Management of receivables.
(3) Management of Cash & Bank.

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 FINANCIAL RATIO ANALYSIS
Financial ratio is one of the most important tools to analysis and criticizes
the account prepared by the business. A financial ratio means relation between
two or more related item of financial statements known as ratio. The ratio may be
in proportion or in percentage (%).because of ratio analysis the company can
make future estimation and take step for future.

RATIO ANALYSIS

There are three branches of accounting:

(1) Financial Accounting.

(2) Cost Accounting.
(3) Management Accounting.

In Management Accounting Manager has to prepare various

statements. Manager has to do some analysis & interpretation of various
data. Through this analysis manager has to evaluate past information, current
position and predict future position. So, this purpose he has to do analysis of
various financial situations.

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 Ratio Analysis

[For year 2006-07 only]

(1) NET PROFIT RATIO :-

= Net Profit (PAT)*100

Sales
Net Profit (PAT) = 1769.10
Sales = 5705
= 1769.10*100
5705
= 31.10 %

This ratio gives the information about actual margin of profit realized from
routing activity. Generally standard margin is 10% to 15%. But t is 31.10 % so,
company has good profitability.

(2) Current ratio :

= Current Assets
Current Liability

Current Assets: - Inventories, sundry debtors, Cash and Bank Balances, other
current assets, loans and advances.

Current liability: Liabilities, Provisions.

= 1587.33
1169.09

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= 1.36:1

This ratio gives the actual information about the liquid position of the
company. Standard margin of this is 2:1. Here, it is actually 1.36:1 which near the
standard margin so, presenting good liquidity of the company.

(3) Liquid ratio

= Liquid Assets
Liquid Liability

Liquid Assets = Current Assets – Stock

Liquid Assets = 1587.33 – 317.00

Liquid Liability = Current Liability – Bank Over Draft

= 395.75 – Nil
= 395.75
=1267.33
1169.09

=1.08: 1

This ratio gives the information above actual liquidity of the company.
Standard margin of this is 1: 1 and here, it is1.08: 1so company has good liquid
position.

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 LEVERAGE ANALYSIS
The term LEVERAGE may be defined as the employment of assets or
sources of funds for which the firm's pay fix cost or fix return.

TYPES OF LEVERAGES

1. Financial Leverage
2. Operating Leverage
3. Composite Leverage

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Page 33
 INTRODUCTION

Production is the process where raw materials are converted into finished
goods. All the process is differ to each product.

Production means creation of utilities and covers all the activities of

procurement, allocation and utilization of resource such as energy material etc.

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 COMPANY PRODUCT & MANUFACTURING
PROCESS

 Company Product:
Ambuja Cement produces many type of cement like as:

Rapid Haudening
cement
Sulphate
Resistance
Cement

OPC=43 Grade

OPC=33
Grade

OPC=53
Grade

Masonry

PPC

Page 35
Page 36
  Manufacturing Process:

Manufacturing means to make semi-finished goods into finished goods and

manufacturing process summation of all the steps making semi-finished goods
into finished goods.

Every manufacturing firm should have sound manufacturing process to

manufacture goods without sound. Manufacturing process, manufacturing cost
will be directly reflect in the profit if the organization.

The basic raw material required to produce cement are as follows:

1. LIMESTONE
2. RED CLAY
3. GYPSUM
4. COAL
5. FLY ASH
6. SILICA s

According to the mode of preparing the raw mix three different processes
can manufacture cement:

A. Wet Process
B. Semidry Process
C. Dry Process

Page 37
 MANUFACTURING PROCESS CHART:

MINING AND CRUSHING OF

MAKE A
CRUSHING GYPSUM AND
CLINKER
LIMESTONE COAL

STORAGE OF DRYING OF STORAGE OF

DRY CLINKER CLINKER CLINKER

CRUSHING THE
CLINKER AND
ADDED THE
PACKING
CHEMICAL

Page 38
 1. MINING & CRUSHING OF LIMESTONE:

Limestone is the basic raw material to produce cement. It is mainly obtain

from the open cost mining. The limestone is hauled through dumpers up to the 70
to 75 mm size. The crushing of limestone is done through hopper crushed
material passed on the conveyor belt in which the addictive material is added to
the material.

2. CRUSHING OF GYPSUM & COAL:

The second stage of cement manufacturing is to crush the gypsum & coal
by griddling machine.

3. MAKE A CINKER:
Clinker is a precondition to make cement. So to make cement of clinker is
needed. So, to make a clinker all crushed material like limestone, gypsum & coal
water with the help of elevator.

4. STORAGE OF CLINKER:

After a making of clinker it storage in a one place. It’s called silo. As per
the requirements clinker is send at required place weighing bin.

5. DRYING OF CLINKER:
After making a clinker, it dried in heating machine at 1200-1400 degree
Celsius temperature. Minimum 1 hour required for drying the clinker.

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 6. STORAGE OF DRY CLINKKER:
After the drying a clinker it stored in a one place. It’s called silo. As per the
requirements, clinker is send at required place through conveyor belt.

7. CRUSHING THE CKINKER & ADDED THE CHEMICAL:

Dried clinker is again crushed in the grinding cement mill. And chemical is
added as per the grad of cement. After adding the chemicals, this all things are
mixing in the raw mill. After this process all these mixing material is transfer in
to the ruler. Rulers exclude the wastage & clean to the cement.

8. PACKING:
Packing is the final step of cement manufacturing process. Clean cement
again stored in a silo and last as per the requirement it come in weight box
through conveyor belt. After this cement bag which have capacity to include 50
kgs. Cement in it.

Page 40
Page 41
 INTRODUCTION
The term marketing is derived from Latin word ‘marcutus’ which means a
place where business is conducted.

Market:-

The market means a place where buyer and seller meet each other and the
deals finalize.

Marketing:-

Marketing means to delivered goods and services at a right time, at a right

place, and to the right person. – It’s known as marketing. The bases of marketing
are selling of the product. But the term marketing is very wide and various. The
marketing head office of Gujarat Ambuja Cement Ltd. at Mumbai which includes
the Marketing Department of Gujarat Ambuja Cement Ltd. is in Gujarat,
Maharashtra, Rajasthan and other stat of the country and also in foreign country.
Gujarat Ambuja Cement Ltd. covers sales area in South Gujarat, Mid Gujarat,
North Gujarat, Saurashtra and Kutch, Gandhinagar and Kheda. Marketing is starts
with human’s needs and wants. People want their basic need like food, air,
water clothing & shelter to survive. The human wants are unlimited, various, and
wide so, the marketing process will never becomes top.

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 ORGANISATION OF MARKETING
DEPARTMENT
It is true that the human wants are unlimited, various, and wide so, it is a
responsibility of Marketing Department to organization it’s department in such a
way that it can help to satisfy the human wants. It does not help in the sales and
distribution of the goods and services only but it also help to customers
satisfaction. Gujarat Ambuja Cement Ltd. has its head marketing office at
Mumbai. The unit has adopted the marketing strategy of Geographical area wise.
In Gujarat the burden of marketing is carried by private marketing agency
MITCO which is situated at Ahmadabad.

The Organization structure of Marketing department

of G.A.C.L.

MANAGING DIRECTOR

MANAGING MARKETING MANAGER

ASST. MANAGER

SENIOR SALES OFFICER

SALES OFFICER

SENIOR EXECUTIVES

MARKET REPRESENTATIVE

Page 43
 PRODUCT PLANNING
To satisfy customer needs and wants product planning is essential. Many
products affect some factor like geographic factor, cultural factor, social factor,
demographical factor, psychological factor, and many others.

Product planning is related following matters…………..

1. Product mix {Product width, line, depth, & distribution Channel}

2. Packing
3. Labeling
4. Branding
5. After sales service
6. Organizing
7. Product research

The main product of G.A.C.L is cement and Product planning of G.A.C.L

is as under…………………………

 Port land pozoland cement [PPC]

 High strength ordinary port land cement [HSOPC]
 53 grade cement.
 Special cement for railway etc.

In product planning the product, which is demanded the most is paid

more attention. G.A.C.L. has also done the same. This unit has paid more
attention to OPC because it is demanded more G.A.C.L. products other types of
also but only anticipation of its demand for e.g. in Narmada Project, PPC was
demanded which was fulfilled only by G.A.C.L.

G.A.C.L. has paid special attention for the quality maintenance. The
quality test is held every day and every after one hour taken by G.A.C.L. for only

Page 44
maintaining a standard quality, and because of this it got the ISI mark. It has been
given……….

 ISO 2000 [ For pollution free production ]

 ISO-9002 [ For quality ]

MARKET SEGMENTATION

Market Segmentation is a process of dividing total heterogeneous market

into various segments. Each segments tends to be homogeneous in all significant
accepts, for the purpose of selecting one or more segment as a target market for a
company and separate marketing mean is a reward to be developed for even
segment.

It is an act of classifying consumers on the basis of their characteristics to

select target market.

There are two type of market segmentation in G.A.C.L:

1. Consumer Oriented Segmentation.

2. Product Oriented Segmentation.

Market can be divided on Geographic Segmentation, Psychographic

Segmentation and Demographic basis.

G.A.C.L. has adopted market Segmentation mainly on two bases.

(1). Consumers Segmentation.

(2). Geographic Segmentation.

Page 45
 (1) Consumer Segmentation: it is divided in 3 divisions in G.A.C.L.

A. The general public segment.

B. The Government segment.
C. The contractor segment.

(2) Geographical Segmentation:

It is divided in 2 divisions in the G.A.C.L. at Bombay covers the region of

Rajasthan, M.P., Maharashtra etc. while Ahmadabad covers only Gujarat because
it forms the major part of G.A.C.L. market. Because of quality G.A.C.L. taking
maximum benefits of market response. As a result G.A.C.L. is the market
leader in Gujarat.

Market segmentation are use full as under…………………..

1. Maximum market for the product can be achieved.

2. Market gets new opportunities.
3. Selecting of channel of distribution.
4. Selecting advertising media.

Page 46
 PRICING POLICY:
Price is the main factor to satisfy the customer. Prices are known by
different names like - fees, fare, rant, commission etc. The pricing policy is
directly or indirectly affects the fixed cost, variable cost, Government policy etc.

(A) COST ORIENTED PRICING:

In this product the price is decided as per the cost of product and it is also
known as target pricing.

(B) DEMAND ORIENTED PRICING:

In this product the price is decided as per the consumer demand.

Gujarat Ambuja Cement Ltd. has many competitors in India and other
country also. So, they have set prices taking into consideration all of them. Thus,
the prices are always fluctuating it is also fluctuated by government.

Gujarat Ambuja Cement Ltd. looks upon following factors for determining
prices:-

(1) Cost of production.

(2) Advertising.
(3) Distribution cost.
(4) Sales promotion cost.

Gujarat Ambuja Cement Ltd. provides some motivation like gifts,

discounts; commission etc. for increases the efficiency of the dealers, stockiest to
selling more.

Page 47
 CHANNELS OF DISTRIBUTION:
A channel of distribution refers to a process of distribution goods and
services to the consumers by producer. It is known as distribution channel
because there were made channel between producer and consumer while the
selling and buying process is doing the market and it is as………………

1. Zero level distribution

Producer Consumer

2. One level distribution.

Producer Retailer Consumer

3. Two level distribution

Producer Wholesaler Retailer Consumer

4. Three level distribution

Producer Agent Wholesaler Retailer Consumer

In G.A.C.L. the main channel of distribution is three level of distribution.

In G.A.C.L. marketing agency MITCO is engages in performing marketing
activities in Gujarat. They have their sales representatives in Gujarat appointed by
MITCO. It collects the order from the Gujarat and provides them their stock by
transport facility.

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TRANSPORT FACILITYS:

In G.A.C.L. the transportation of cement bag is done by two ways………

(3) one is roadways (name of the road)

Rajmoti Roadways
Autohires Roadways
Abhishek Rodways.

(4) other is sea ways (name of the ship)

Ambuja Kirit
Ambuja Shakti
Ambuja Vaibhav
Ambuja Shikar
Ambuja Gaurav

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 CHANNELS OBJECTIVES

No any activity is done without any objectives in mind. Every economics

activity is Done or made to achieve certain aim or target whatever it is objectives
is a goal and all Actions are directed towards that goal more ever, Which the
results or performance of an action can be measured or compared.

Ambuja Cement Ltd. has the following channel objectives.

 To ensure dispatch of cement as per market needs and to provide best

services to the customers an terms of timely and speedy delivery of
material.

 To ensure adequate availability of material at Muldwarka terminal as per

ship Planning. Dispatch For maximum possible quantity.

 Rendering appropriate services to the transport’s truck drivers with

minimum detention of their vehicles at our factory.

 To ensure complains of various statutory requirements connected to the

above Movements, without any deviation. Maintaining of effective public
relations with the concerned government officers.

Page 50
 FUNCTION OF SERVICE MARKETING
CHANNEL
Marketing channels consist of channel member who perform many
function. Marketing channels, particularly, indirect channel (wholesaler, retailers,
and agents) perform many functions to facilitate availability of products to
consumers with ease. Their functions offer benefits or services to manufactures
on one hand and to the consumers on the other hand. Main services or benefits
offered by marketing channel can be classified into two group’s service to
consumers and services to producers.

1. Service To Producers:

A. Transporting F. Ordering & financing

B. Place constraints G. Processing
C. Concentration on production H. Negotiating
D. Information link I. Risk bearing
E. Promotion J. Economy

2. Service To Consumer:

A. Credit facility D. Easy accessibility

B. After self service E. Better selection
C. Education and communicating
Nowadays, marketing channel plays a crucial role for both, producers and
ultimate consumers. For many products' it is difficult about successful
implementation of marketing strategy without active involvement of marketing
channel.

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 FACTOR AFFECTING CHANNEL DECISION

Decision on channel of distribution is treated as strategic one as it plays

significant role to satisfy consumer and also improve competitive strength.
Choice of marketing channel, being very critical must be made carefully.

1. FACTOR RELATED TO PRODUCTS:

Product is prime factor in channel decision. Product related factors are

among most relevant and powerful factors affecting channel decision. Channel
must be fit with type and nature of company’s products.

A. Perish ability of product

B. Technical aspects
C. New v/s existing product
D. Size of product
E. Divisibility of product
F. Unit price of product

2. FACTOR RELATED TO COMPANY:

Company’s internal situation has direct impact on choice of marketing

channel. Manager has to analyses company-related factor to decide the best fit
channel.

A. Company’s financial position

B. Product mix of company
C. Desire for control
D. Experience and Expertise
E. Facilities and staff
F. Company’s past experience

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 3. FACTORS RELATED TO MIDDLEMEN:

Companies consider several middlemen related factor while deciding on

channel. Most common factors include:

A. Creditworthiness of Middlemen
B. Attitudes of Middlemen
C. Service rendered by Middlemen
D. Financial capacity of Middlemen
E. Terms and Conditions

4. FACTOR RELATED TO MARKET:

Market is a crucial factor in channel selection. Most common factors

include:

A. Size of market
B. Geographical concentration
C. Service expected by market
D. Habits of consumer
E. Current market trend

5. FACTOR RELATED TO COMPETITION:

Current and anticipated competition affects company’s decision on

marketing channel. Relevant competition related aspect must be analyzed while
selecting the channel.

A. Intensity of competition
B. Response and reactions of competitors
C. Company’s competitive position in market

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 6. FACTOR RELATED TO ENVIRONMENT:

Marketer has to consider overall business environment while deciding on

marketing channel. Domestic and global environmental forces have direct or
indirect impact on company’s activities and operations.

A. Economic condition of country

B. Phases of trade cycle
C. Legal provision
D. Availability of facilities

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EVALUATION OF CHANNEL ALTERNATIVES

After noting various channels alternatives which alternatives would best

satisfy the long term objectives of the firm taking in view the factors which affect
the channel decisions for this purpose, each alternatives must be rated against
economics, control and adaptive criteria.

 ECONOMIC CRITERIA
For evaluating the effectiveness of channels of distribution the economic
criteria are the most important since the firm pursues the profits.

 CONTROL CRITERIA

In evaluating the channel the second main consideration is that of the

control i.e. how usual the marketer is in a position to have a control over a
particular channel? The name would be the control; the better would be channel
of distribution.

 ADOPTIVE CRITERIA

The next consideration in channel decision is to see whether the channel

would be suitable to adopt the changing conditions in future. Each channel
alternatives involves some duration of commitment and loss of flexibility.

For example a channel alternative involving a long commitment must

appear to be greatly superior on economic or control grounds in order to be
considered but it is not valid on the ground of adoptability. The above three
criteria must be considered to decide the effectiveness of a various Channels of
distribution.

Page 55
Page 56
 Introduction

Definition:-
A Human Resource Management can be defining as “H.R.M is Managerial
function which concurred with hiring, motivation, directing and maintaining the
people in the organization. – It is known as Human Resource Management.
Human Resource Management (H.R.M) is also known as personal management.
Without H.R.M a company cannot achieve their goal easily. All the company has
H.R.M department.

Highlight on Human Resource Management:

1) It is managerial and top level function.

2) It is concerned with employees, both as individuals as well as a group.
3) It is try to develop employee skill and better performance.
4) Personnel Management is a continuous process.
5) Without H.R.M a company cannot achieve their goal easily. Gujarat Ambuja
Cement Ltd has H.R.M department having an experienced Vice President.

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 ORGANIZATION STRUCTURE

Gujarat Ambuja Cement Ltd established the line and staff type of
organization. Personnel department is under direct control of vice president
Senior Manager is responsible to vice president. The main functions of personnel
department of Gujarat Ambuja Cement Ltd. Is…………………

1) To recruitment of employee.
2) To conduct interview for selection of efficient person.
3) To make man power planning.
4) To give guidance, and motivation to the employee.
5) To dealing with transfer and promotion.
6) Wage and salary administration.
7) To maintain the personnel records. The organization chart of personnel
department of the G.A.C.L is as under:

Page 58
 Organization chart of H.R.M

Page 59
 RECRUITMENT, & PLACEMENT

Recruitment:-

Employees are the asset of the company, so it to get skillful person for
proper management of man, machine, money and material.

This process is held by Personnel Department. The process of recruitment

gets started because of transfer, dismissal or promotion of the employee. The
person in charge gives advertisement through various means of communications
like new paper, Television, Magazine etc. The recruitment is may be
on……………….

(1) At management and administration level.

(2) At staff level.
(3) At worker level.

Selection process:-

Generally the following procedure is taken into consideration while selection the
member.

1) Choose proper media for Advertisement.

2) Accept all the application, and analysis them.

3) Select applicant on the basis of application.

4) Sand them call latter.

5) Conduct personal interview.

6) Then selected employees are given an Appointment letter and make

induction in the organization.

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 PROMOTION AND TRANSFER POLICY

PROMOTION POLICY:-

"Promotion" is refers to the more authority, salary, and more responsibility.

In Gujarat Ambuja Cement Ltd., they use only performance basis

promotion. So, employees are promoted on the basis of their skill, performance
and their achievement level.

TRANSFER POLICY:-

"Transfer refers to the transfer of person in other department, or on other

site with same authority, responsibility, and same salary.

In Gujarat Ambuja Cement Ltd., the workers are shifted internally –in
Shift A to B, B to C, and C to A.

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 WAGE AND SALARY ADMINISTRATION

Wage and salary are most use full to give motivation to the employee.
Wage and salary means the monitory reward paid to the employee on behalf of
his work.

In Gujarat Ambuja Cement Ltd. they pays salary to Employees and Wages
to labors And other allowances are paid. The amount of wage & salary paid
depends on grades.

A Grade / Management Category are…..

Basic salary + house Rent Allowance + 10% provident Fund +Medical

Allowance + medical Allowance + Vehicle Allowance + Bonus + D.A.

OVERTIME PAYMENT:-

Overtime payment is admissible toward wage board workers only. The

over time payment is made on the basis of overtime memo received from the
department head.

EXTRA DUTY INTIMATION:-

If in accident case worker may lose his efficiency of performing the present
job. In such cases company make transfer of the employee and if he is not able to
work at all the units, the unit pays a reward to employee. On the event of death of
a workman the wages and other dues shall be paid to the nominee as declared
under the provident fund Act.1952.

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 PROVIDENT FUND POLICY

The Gujarat Ambuja Cement Ltd. Has to follow Provident fund Act
1952.Provident fund will be deducted from salary of employee at a rate of 12%.

DETAILS ARE AS UNDER:-

 Employee’s contribution @ 12% will be deposited in provident fund

account.
 Employer’s contribution @ 12 will be deposited in two different accounts a
follows.
•Deducting 8.33% goes to pension account.
•And 3.67% goes to P.F. Account.

COLLECTIVE BARGAINING:-

Collective bargaining is negotiation between an employer and a group of

workers to reach an agreement on working condition. It is also considered as one
of the remedial measure to set industrial dispute.

There is no formal collective bargaining in Gujarat Ambuja Cement Ltd. If

there were any problem arise it is solved by management and lab our unions. By
meeting and the decisions making.

TRADE UNION:-

According to Section 2(b) of Trade Union Act of 1926.

Gujarat Ambuja Cement Ltd. has no formal trade union. There is one
active labour union known as "Gujarat Ambuja Cement Karmachari Sangh".
It is only the union which fights for the rights of workers & solves the disputes.

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 PERSONNEL RECORDS

Personnel record is a very important thing which includes name, address,

date of birth, qualifications, hobby, experience etc. and as it helps to take timely
decisions. It also preserves evidence for future reference or use. Looking to the
importance of personnel records Gujarat Ambuja Cement Ltd. has maintained
separate file for each and every necessary details.

EMPLOYEES BENEFICIAL SERVICES

The personal management is tried to focus on employee and employer to

give best services. Thus it increases the satisfaction and the long run income of
the company. The Gujarat Ambuja Cement Ltd., provide the best services to their
employee. The facilities provided by the organization to the employees is as
under……………………….

(A) EDUCATIONAL FACILITIES :

The Gujarat Ambuja Cement Ltd. has its own English medium school
situated in Kodinar city. The fees are very normal so, that a common person can
able to provide their child a better education.

(B) MEDICAL FACILITIES :

The unit has its own medical center established in colony when any family
member of employee or himself is sick he can directly visit to the nearby hospital
and can go under Medical treatment. In case of any injury or accidents the
company pays the full expenditure, incurred for the treatment of worker. During
his rest period he would get the salary of those days.

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(C) LEAVE FACILITIES:

The following are the leave facilities provided by the company to the
employees:

 Festival Leave:
All the workmen are granted National and social Festival holidays.

 Sick Leave:

The unit grants 12 days as a sick leave to the employees. He can take leave
for 12 days in one year for his sickness.

 Casual Leave:

A workman may be granted Casual leave of absence with pay not

exceeding 7 days.

 Privilege leave:

Privilege leave is the leave for workers only. The workers can get a
privilege leave if he works for continuous 209 days.

(D) CANTEEN FACILITIES:

The Gujarat Cement also provides a good canteen, where every worker can
go and take refreshments and snacks at cheap rates and hygienic than other stuffs
available in the market.

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(E) OTHER ALLOWANCE:
 Health Allowance:

Health allowance is provided 5 % of the basic salary to the worker who

works near the boiler, kiln etc. where the temperature is very high.

 House rent allowance:

The unit has its own residential building constructed within the unit.
This makes the workmen easy to reach. It can provide quarters to all workmen.

(F) TRANSPORT FACILITY:

Gujarat Ambuja Cement Ltd. has its own bus which traveling from Gujarat
Ambuja Cement Ltd. to Kodinar and Veraval. In workers bus they travel freely
(no fare). There is even one school bus facility provided too.

(G) BANKING FACILITY:

Gujarat Ambuja Cement Ltd. has its own banking facility provided.

(H) RECREATION AND SPORTS:

In its residential colony the unit has build up a recreation and sports
club. The club is facilitated by outdoor & indoor games. The club has a library
too.

(I) LIBRARY FACILITIES:

The unit has its well developed library. This has many types of Newspapers
in May languages and many magazines Indian and Abroad.

Page 66
 TIME KEEPING SYSTEM

“Everything you buy, but time can’t buy”

Time keeping means the regulation timing of workers who are work of the
industry. It means staff or workers how many hours they work in industry. They
have to work in industry at certain hours or period. Time keeping system is
important to maintain the record of absence the organization. Every firm has their
own time keeping system.

There are totally two shifts for the workers for the workers for work in the
industry the chart of Ambuja Cement Company’s time keeping system is note as:

 SHIFT:

 8 A.M. to 12 P.M.
 2 P.M. to 6 P.M.

Lunch Time: 12 P.M. to 2 P.M.

Page 67
Page 68
 AWARDS AND ACHIEVEMENTS

 AWARDS OF ACL:

Year Awarded by purpose

1989-90 The Economic Times, Harvard Best Corporate performance award.
Business School Association of India
1989-90 National Productivity Council Certificate of Ment for Productivity
in Cement Company
1990-91 National Productivity Council Second Prize for Productivity in
Cement Industry
1990-91 Gujarat Pollution Control Board. 1st prize for environmental
management.
1991-92 National Council of Cement & National award for best energy
Building Material performance
1991-92 Bureau of India Standards
1992-93 National Productivity Council 2nd best productivity performance
award
1993-94 International Green and Social Best production and product goal
Council, Hyderabad award
2000-01 National Award 2nd best environmental award
2000-01 Special Export Award Outstanding export award
2002-03 National award Prevention of pollution
2007-08 National award Excellence in water management
2008-09 National award Best Environmental excellence in
plant operation
2008-09 Ram krishna Bajaj National Quality Performance excellence trophy

Page 69
  ACHIEVEMENTS OF ACL:

 Fastest project Commissioning.

 Fastest stabilization of project.
 Highest productivity.
 Lowest power and Coal Consumption.
 Best environment Management.
 Pioneering transportation of bulk cement by sea.
 Highest product quality.
 Carving a strong brand.

Page 70
Page 71
 FUTURE PLANE

During 2009 a new bulk cement terminal started operation at Kochi,

providing access to new markets in the South and two new captive power units,
each with 15 MW capacities, were commissioned at Bhatpara (Chhattisgarh) and
Maratha (Maharashtra).

Significant progress has been made during 2009 on the two major
expansion projects which will enable the company to secure its market position
through the next business cycle.

Production trials at the 2.2 million tonnes clinker production line at

Bhatpara began in mid December 2009 and the plant is expected to be fully
stabilized during the first quarter of 2010, along with a 33 MW captive power
unit.

The new clinker production line at Rauri (HP), also with 2.2 million tonnes
capacity, has commenced production trials during January 2010 and is expected
to get fully stabilized during the first quarter of 2010. The associated cement
grinding facilities at Dadri (UP) and Nalagarh (HP), each with 1.5 million tonnes
capacity, will also be commissioned during this quarter. The total cost of these
two projects will be approximately Rs. 2,700 crore.

Page 72
Page 73
 SUGGESTIONS

 Hydraulic training should also be conducted.

 Time duration of this training is short so it should expand 1 or 2 hours.

 Practical knowledge is also important so demo should be given.

 Deep & clear knowledge is required from trainers’ side on drier,

maintenance, valve & other equipment.

 Improvement is needed on fundamental topics.

 Trainer should only give the topic related knowledge not give a knowledge
of the any out of the topics.

 Training on pneumatic concept should be clear.

Page 74
Page 75
 CONCLUSION

 After the analysis of the training program we concluded that the trainee got
more knowledge about the pneumatic components & troubleshooting in
technical department.

 The trainee can understand about the air, gas, water, leakage of the pipes,
cylinders, compressed air valve, dryer, fitter, lubrication, etc.

 The trainee can aware about the pneumatic symbols so they can run
machinery effectively.

 Improve the energy conservation by this technique; understand the problem

of stoppage, Implementation of the proper maintained practice, Regular
check up of the plant.

Page 76
Page 77
 BIBILIOGRAPHY

The books referred by me for the report are as follows:

 Dr. R.B.RUDANI

BASIC OF MARKETING MANAGEMENT

- S.CHAND & COMPANY LTD., New Delhi.

 TAPAN K PANDA

MARKETING MANAGEMENT

- Himalaya Publishing House, New Delhi.

 Web Site

www.ambujacement.com

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