A1 Cement Industries

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The Industrial Visit

PROJECT REPORTon

Prepared By: -

MEHTA DHARMESH

F.Y.B.B.A.

Guided By: -Niraj Pandya

Charmi Badani

College: -

R. P. Bhalodia College

Submitted to:

Saurashtra University

Year :

2005 06

City :

Rajkot

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Declaration

I, the undersigned DHARMESH B. MEHTA, a student of

F.Y.B.B.A., here by declare that the project work which is

presented in this report, is my own work. I have prepared this

project report under the supervision and guidance of Mr. Niraj

Pandya and Mrs. Charmi Badani of Shri R. P. Bhalodia College,

Rajkot.

I feel very good to prepare this project report. This project

report was submitted to saurashtra university of Rajkot. By

preparing this project report, I got an opportunity of practical study.

- DHARMESH

MEHTA

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Acknowledgement

It is a great experience for me to prepare a project report. I

feel happiness that I present this report before you. I thanked all

those persons who are involved in the making of project.

Firstly, I would like to thank my college R. P. Bhalodia

College and my Teachers Mr. Niraj Pandya and Miss. Charmi

Badani who have give us complete information regarding the

project report. I prepared this project under their guidance.

I am very happy that I have chosen B.B.A course because,

by choosing this course one become aware of practical studies.

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Preface

The practical study is more important than theorical study.

Practical studies are the part of B.B.A. course, B.B.A. is a special

professional course regarding business. Practical study implied by

Saurashtra University in B.B.A. under this subject, the student

requires to visit one small scale industry.

The visit is very helpful to the students because students

get the practical knowledge about the working of industry and

seeing the atmosphere of business units. With the help of industrial

visit, student develop his awareness about industrial field.

As a B.B.A. student, I had got an opportunity to visit, an

industry. That industry was A1 cement industries. it was a great

experience for me. I have tried my level best to get as possible as

information about industry. I thanked all members who helped me

to get an information.

- Dharmesh

Mehta

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Main Index

No. of Points Points Page No.1 General information 6-14

2 Marketing Department 15-20

3 Production Department 21-29

4 Personal Department 30-35

5 Financial Department 36-41

6 Conclusion 42-43

7 Suggestions 44-45

8 Bibliography 46-47

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Sr. No. Points Page No.

1 History of the industry 8

2 Company Profile 9

3 Organization Chart 10

4 Location of the industry 11

5 Achievements 12

6 Objectives of Business 13

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1. History of the industry: -

The history of the any company is very important. This

company A1 cement ind., was established in the year2005.

Today this industry becomes very famous because of the

hard work of the industries members. The contribution of the

workers is very high for the development of the industry.

Mr. Dilipbhai was the chairman of the A1 cements ind. A1

cement ind. established for manufacturing Cement.

Now, the business of the company is running very smoothly

and successfully.

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2. Company profile: -

Name: -

A1 Cement Industries

Area of Location: -

8-A National Highway,

TIMBADI, MORBI

Dist.: RAJKOT

Address of the Register Office: -

VARDHMAN TRADERS

5-6, Anand Shoping Center,

Vorabag, Same kanthe

MORBI-2

Brand Name: -

A1 CEMENT

EAGLE CEMENT

Name of Partners: -

Mr. Dilipbhai M. Mehta (25%)

Mrs. Ritaben D. Mehta (25%)

Mr. Hiteshbhai A. Mehta (20%)

Mr. Jitendrabhai A. Mehta (15%)

Mr. Rashmibhai A. Mehta (15%)

Size of Unit: -

Small Scale industry

Establishment Year: -

2005

Accounting Year: -

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April to March

3. Organization Structure: -

The organization structure is given below of the company.

Directors

Head of Production Head of Personal Head of Marketing Head of

Financial

Department Department Department Department

Staff Staff Staff Staff

Workers Workers Workers Workers

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4. Form of an Organization: -

Form of any big organization is very important. A1 CEMENT

IND. is a private limited company. According to companies act

1956, They follow all the rules and regulation of the companies act.

A1 CEMENT IND is a very big industrial company. It is

located at, 8-A National Highway TIMBADI is spread in

approximately 5 Acer. This is the carpet area of industry.

The investment of the company behind land and machinery

more than 3 crores. It is a very big organization.

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5. Location of the Industry: -

When the new industrial unit is to be established, one major

decision has to be taken. That is the location of the industry. There

are many factors which affecting the location of the industry such

as Technical Factors, Economic Factors and Other Factors etc.

Generally, the location of the company should be very

easiest in which the industry can get necessary things very easily.

TIMBADI is a very good location for the establishment, any

company because it is situated at the end of the city MORBI

therefore industry can be reduced the transportation cost,

employees can be defend easily and when industry has a need of

Raw Material, Raw Materials are available very easily.

Therefore, the company or industry is situated there.

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6. Objectives of Business: -

Generally, the main object of a business to get more and

more profit. All the business activities are running with the main

object of profit but profit is not only the object of any business.

There are many objects such as to contribution in the development

of the country, Social responsibility etc.

A1 CEMENT IND. main objectives are given below:

To earn Medium Profit.

To provide social facilities.

Elimination of customers problems.

Continuous improvement through reduction of

Rejuction and Rework.

Contribution in the development of the country.

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Index of Marketing Department

Sr. No. Particulars Page No.1 Introduction 17

2 Organization Chart 18

3 Pricing Policy 19

4 Advertising, 20

5 Competitors 20

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2. Organization chart: -

Directors

Head of marketingDepartment

Sales manager

Dealer

Customer

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3. Pricing Policy: -

The prices of the product are depend upon the expenses

which is made for making product. The expenses such as the cost

of raw material, cost of over heads, factory overheads,

administrative overheads, selling and distribution overheads,

margin of profit etc.

The company decide the price after counting these all

above expenses. The cement bag per Rs. 150 or Rs 155

The period of credit sales is for 30 days and if the payment

is not paid upto due date, other delivery will be stopped.

Market :-

Saurastra and Kutch.

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4. Advertising: -

In this modern time, advertising is very important for

increasing the sales of the product of the company or industry.

Advertising is the best tool for increasing sales. Big company spent

lots of Rupees for good Advertising.

A1 Cement Ind.. The main method of advertising is Wall

Paintings, Paper Media, Pamphlets, Metal Board, Magazines etc.

In all the advertisements the brand A1 Cement highlighted.

5. Competitiors :-

Today, competition increases very fastly in any business.

Competition is very important for the development of the economy

and country.

The company has to find new and new product to continue

in the market. There are lots of competitors in the market for

cement. Therefore, company tries their level best to face the all

competitors. They are as under.

Prince Cement

Ganesh Cement

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Index of the Production Department

Sr. No. Particulars Page No.

1 Introduction 23

2 Organization Chart 243 Main Products 25

4 Raw Materials 25

5 Production Process 26-28

6 Store Department 29

7 Production Capacity 29

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1. Introduction :-

Production department is a department which is concerned

with the production activity. Production is a term, which is

synonymous with manufacturing, transforming, processing,

fabrication etc. It is a process where in materials are converted into

finished goods. These goods are either consumed by the

consumers or are used by other factories or industries for further

processing.

Generally, production process will start when the raw

materials are available in the industry and production process

stopped when finished product being prepared.

Thus, in short planning for production is the main activity of

the production department.

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2. Organization Chart: -

Directors

Head of department

Staff

Workers

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3. Main Products: -

The main product of the company is O.P.C. (ordinary Portland cement)

like 43 grade, 53 grade

4. Raw Materials: -

The production process is generally based on various raw

materials. Raw materials are very important for the product. For

the production department, only find out the source of raw

materials and after getting raw materials, production process willstart.

This company produced cement therefore they have need

many raw materials. Which are generally available in the market.

Products various raw materials such as Lime stone, Clay, Coke-

breeze, silica, Iron dust, Gypsum.

Sources of Raw materials:-

All the raw materials are get from different sources. i.e.

silica from kutch, lime stone and gypsum from Porbandar, clay from local

market and cock-breeze and iron dust from the Rajkot.

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In past S.C.L. use to produce cement by wet process, but because

of availability of innovated technology the company uses dry process for

producing cement as it does seve tremendous, advantages which directly

effects the cost.

The production process of S.C.L. company involves following

steps.

1) Mining: -

In production of the cement limestone is the substance and

this is available in the form of boulders. Company has its own

mines from where it can easily get limestone. First of all boreholi

samples are drawn to ascertain the quality of lime stone once the

suitability is established mining is done. Drill holes are made at

fixed ocations, which are filed with explosives. Blasting is done

using electric power passed through explosive, which breakes

limestones and rocks in to boulders. Then it is transported to

crusher.

2) Crushing: -

In this step, the boulders, of limestones are crushed in

impact type of crusher to reduce their size. Likewise, marl, clay etc

are also crushed to reduce their size. Here the large boulders of

limestone, marl etc are feed to the crusher where they get broken

in to small fraction which then transported to stracker by the mean

of a set of conveyors.

3) Reclaiming: -

After crushing material, it is transported to stock piles where

the layers of limestone and other corrective material are spread as

per requirement of quality department.

4) Raw-Mill: -

In the raw-mill, small pieces of limestone clay and other

collective materials are fired through a box feeder and grinded

together. Weight fuding ratios are bet as per instruction of quality

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deparment. Material falls on the rotating table at mill and ground

due toimpact of rollers. In short, the raw materials are grounded in

to fine powder in the raw-mill.

5) Blending & Storage Silo: -

The ground material is transferred through out steams to

blending silos where the materials are properly mixed for making

the material homogenized. Then, the mixed material is stored in

storaged silo. Afterwards, the materials goes into pre-heater.

6) Pre-heater & Kiln: -

The stored material is transported to pre-heating cyclone.

Here, the material is pre-heated at appropriate temperature of 870

to 880 .c. then, prepared material enters where coal firing is taking

place, also chemical reaction takes place inside kiln burning zone.

Between lime, silica and alumina.

The material gains temperature approximately 1300 . c to

1400 . c at burning zone and becomes clinker.

7) Cooling: -

Because of heat of 1300 . c. to 1400 . c., the clinker

becomes so hat and hence it is transported to coolers where it get

cool down by cooling yans.

During this procedure, the hat gas is disposed off from

material and to utilize this hot gas for energy conservation, it is

transferred to dust collector and use less gas is driven out by

stack.

8) Cement Grinding: -

Clinker is half produced cement. The produced clinker is fed

to cement mills by overhead cranes and gypsum is fed to another

hopper. The quality control department fixes the ratio of gypsum

and clinker.

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Grinding iron balls are already available in the mills and

clinker is first crushed and then grounded due to impact and

attribution.

As soon as this process is completed, the perfectly mixed

and grounded material is available and that is called (EMEN)

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9) Packing: -

Cement produced in the cement mill is conveyed to storage

silos in the packing plant through air slides and bucket elevator.

There are eight storage silos where different grades of cement.

(i.e. 43 grade, 53 grade, OPC) are stored.

From the storage silos, the cement is transported to hopers.

There are four packers, which are run depending upon

requirements. Each packer consist of twelve spouts and empty

begs are foxed on the spouts manually and it gets weighted and

sewed automatically.

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6. Store Department: -

The company produced many Cement bag everyday. It is a

very important that company having different store department

which is very big. The Cement bag sold. The capacity of the store

department is 500 to 1000 Cement bag to store. Also they are

store different kinds of raw material which are used for making

Cement .

7. Production Capacity: -

The company produces many Cement bags in every day.

The company, produces minimum 200 to 300 Cement bags

everyday in Boom period, but in depression period, they produced

minimum 100 to 150 Cement bags every day. The highest 500

Cement bag produced in one day. The annual production of the

company is more than 90,000 Cement bags.

The company will be try to produce more and more to

Cement bags everyday.

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Index of Personnel Department


1 Introduction 32

2 Training 333 Infrastructure Facilities 33

4 Time Keeping System 34

5 The Number of Workers 34

6 The System of Selection Employees 35

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1. Introduction: -

Personnel Management is the planning, organizing,

directing, controlling of procurement, development compensation,

integration and malignance of people of the purpose of contribution

to organization, individual and social goals.

Flippo: Principles of

Personnel

Management.

Personnel management is the direction and co-ordination of

human relations in the business organization, there by obtaining

maximum production with minimum of physical and mentle efforts,

stress and strain of the individual worker and group of workers and

without sacrificing the genius well being of the employees.

Incentives to the workers is very important if the company

wants to get more and more help of workers.

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2. Training: -

There are many workers work in the company. Some of

them are skilled and some of them are unskilled. Thence, company

has to give them special training, practical knowledge etc. Training

is necessary to know about the working conditions and techniques

of the company.

In this company, no special training sessions are held. The

one month training period during the recruitment process. This is

because the production process does not require any such

technology, which is frequently changing.

3. Infrastructure Facilities: -

Workers and Employees are very important for any bigorganization. The business is continue in the market because of

the working of workers and employees. Therefore, companies give

various facility to the workers such as Medical, Houses etc.

A1 Cement Ind. Company provides various Infrastructure

facilities to the workers such as provident fund, gratuity, holidays,

medical services etc. Also, they given 20% Bonus to the workersevery year. Sometimes, they also provides insurance facility.

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4. Time Keeping System: -

The whole time of day, of the duties of workers is given

below:

Time:

Shift I

8:00 AM to 12:00 AM is the working time.

12:00 AM to 2:00 AM is the lunch time.

Shift II

2:00 AM to 6:00 AM is again the working

time.

5. The Number of Workers: -

It is a small company. The total staff of the

company approximately 40 members including manager,

employees, workers etc. They have no any ladies workers.

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6. The System of Selection of Employees: -

The system of selection of employees is very important

thing. Some in cottage industry, we can see that workers and

employees are not qualified as much as small scale industries.

Some industries, select the employees or workers in experience

basis, while some industries select on qualified basis.

This company select the workers both on experience basis.

It means that experience involve in worker or employees.

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Index of Financial Department


1 Introduction 382 Capital Structure 39

3 Financial Planning 39

4 Profit Trend 40

5 Fixed Assets and Working Capital 40

6 Account 41

7 Investment and Depreciation 41

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1. Introduction: -

Finance management is that management activity which is

concerned with the planning and controlling of the firms financial

resources in modern business. The finance is the blood of

business economy. Finance department is very important in any

company. We include capital, fixed assets, working capital etc, in

finance.

Finance is that administrative area in an organization which

related with the arrangement of cash and credit so that

organization may have the means to carry out its objective as

satisfactorily as possible.

Finance department plays a very important role in the

development and growth of Business. If you have money and you

management, it properly you will make more money. This means

management of finance is necessary for all.

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2. Capital Structure: -

Capital is the blood of any company or organization. All

business activities are run with the help of capital.

The capital structure of the company is given

Particulars Amount

Reserve and Surplus = 1.50 Crore

+ Unsecured Loans = 1.00 Crore

+ Bank Loan = 0.5 Crore

Total 3 Crore

The 12% Interest given on the unsecured loan.

3. Financial Planning: -

Every company having financial planning for the future.

Financial planning is decided in the meeting of directors. Various

Financial Planning such as availability of fund.

The basic purpose of financial planning are to make sure

that adequate funds are raised at the minimum cost and that they

are used wisely. It should be seen that finance is neither excess

nor inadequate.

In financial planning, they do not think investment in other

place.

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4. Profit Trend: -

Profit is the main aim or goal of any company. All business

activities are running with the main object of earning profit.

5. Fixed Assets and Working Capital: -

Fixed assets are those assets, which are not easily

convertible in cash.

There are different types of fixed assets in any company.

Different types of fixed assets such as Plant & Machinery, Electric

Fittings, Furniture and Fixtures, Factory Building, Vehicles etc.

Working Capital: -

The capital required for day to day transaction, that called

working capital.

On account of very good network of sales, the company

does not face any difficulties in managing working capital.

The information of working capital is given below:

Current Assets 1Crore

Current Liabilities 0.3 Crore

Net Working Capital 0.97Crore

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6. Account: -

According to companies acts 1956, public ltd. company and

private ltd. company must prepare the account of the financial

year. Thence, the company has been prepared the account.

For preparing account, they follow the double entry

mercantile system. This is the modern method of preparing

account. The account is prepared in computer. Mr. N.P. Hadyal is

the auditor of the company.

7. Investment and Depreciation: -

Investment: -

Investment means to invest money in any place.

In this company they invest money fully on assets.i.e Fixed

assets.

Depreciation: -

Generally, in the initial stage company does not count

depreciation on the fixed assets. Then, after they count

depreciation on fixed assets.

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Conclusion

I think that I had got a golden opportunity to visited. A1

Cement ind,. I got a whole information regarding production,

personnel, financial and marketing. During my study, I marked that

the company is best in management, in working in providing

facilities to the workers etc.

I have come to the conclusion that this company has an

efficient in production process and marketing. It possess proper

finance. Thence, this company has a many scope for expansion

and development. The product of this company is very good in

quality. The Brand Name is A1Cement Customer would like to

purchase product of Company. The staff is interested to improve

the product as per changing and environment.

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Suggestions

After visiting the company, I think that the company is well

and efficient, there is nothing as such which I can suggest to the

company. But, I also want to tell something to the company that

the company uses. old technology, thence, their profit reduces.

New business units used new technology, therefore if company

use new modern technology, they will make more profit. I know

that now, they are make profit but they increases in them if they

will use modern technology. Today, company is in developing

stage in the use of modern technology.

So, my point of view, they should take this point positively

and should not be misunderstood.

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Bibliography

Growth of Structure of industry

Principles of Personnel management.

Financial management I.M.Panday

Marketing Philip kotter

A1 Cement Industries

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