Final Report

Grasim Harihar Industries

INDUSTRIAL PROFILE:

Birth of Textile Industry in India:

The rich tradition of Indian textile dates back to 4000 years BC.

Travellers in 13th century wrote about the excellence of the Indian fabric.

The post world-war second witnessed the launching of large scale

programs by the less developed countries for the development and

expansion of the textile industries along with the older textile producing

countries. These industries put into operation plans for the modernization

and recognition of textile. Consequently the industries find themselves

today up-to-date.

The textile Industry, which launched the industrial revolution, is

now over 200 years old. India is the largest textile producing country in

the world. In terms of installed capacities, production of the cloth and

yarn and employment potential, the textile industry has few equals. We

have the decentralized sector comprising the handloom and the power

looms. The organized cotton mill sector consists of both private mill and

government owned national corporation group of mills and other sector

like the woollen, the raw silk and synthetics, the jute and pure silk.

Production of the silk sector reached a maximum of about 4800

million meters in 1956. Since then there has been gradual reduction. This

is because the average counts of the country as a whole have been

increasing gradually in response to public taste. People prefer finer fabric,

which takes longer time to produce. It is also interesting to note the

steady increase in the blended fabrics as well as 100% non-cotton fabrics

during this period. This accounted for 25% of the total production.

JSS College, Dharwad 1


India has had such a rich tradition in textile; we can study the

evolution of textile Industry under two heads:

Natural Fibers

Man made fibers

Natural Fiber:

The origin of the cotton textile Industry, the largest single industry

in the country dates back to 1818 when the first cotton mill was

established at fort Gloster near Calcutta. The grant of protection by the

Government and Swadeshi movement enabled the industry to step rapid

strides. By September 1976 as many as 105 mills were taken over by the

National Textile Corporation.

Man Made Fibers:

Man made textile made their appearance on the Indian scène about

four decades ago. It was only in 1950 that first Rayon manufacturing

unit’s commenced production in India. Subsequently Acetate filament

yarn and staple fibers were added to the cellulose production. However,

cellulose fiber had entered the world scene around the turn of the century

and made their debut in India later. Synthetics on the other hand made

their first world appearance in 1940 and in India in 1962, when the first

Nylon plant was commissioned. The first polyester staple fiber plant went

on stream in 1965 and subsequently plays propylene staplene staple and

acrylic staple came on scene. The man made fiber industry has gathered

momentum over the years. These fibers became popular because of the

following characteristics:



They have a very short life of less 3 to 4 times than, that of cotton

cloth.

Wash and wear qualities of polyester and blended fabrics reduce

the maintenance the cost in terms of washing and ironing of cloths

is reduced.

Prestige values are associated to blended fabrics.

Viscose Staple Fiber:

Grasim is India's pioneer in Viscose Staple Fiber (VSF), a man-

made, biodegradable fiber with characteristics akin to cotton. Extremely

versatile and easily blended with other fibers, VSF is widely used to

manufacture fabrics for both woven and knitted garments. The range of

applications extends from apparel — both top wear and bottom wear —

to home textiles, dress material, knitted inner wear and outer wear, and

non-woven fabrics.

Aditya Birla Group is today the world's largest producer of VSF,

commanding a 24 per cent global market share and meeting over 98 per

cent of India's VSF requirements.

Grasim's VSF plants are located at Nagda in Madhya Pradesh,

Kharach in Gujarat and Harihar in Karnataka, with a combined installed

capacity of 2,51,850 tones per annum. Nagda is its largest unit producing

a wide range of VSF to suit customer requirements in terms of length,

denier and color. Nagda is also the largest producer of spun-dyed

specialty fiber in the world.

The Harihar unit produces rayon grade pulp, the basic raw material

for VSF production and raw white VSF. The Company's rayon grade

plant was the first in India to use totally indigenous resources like



eucalyptus. It uses an in-house technology for producing rayon pulp with

an innovative oxygen bleaching process to reduce the use of chlorine.

The VSF plant at Kharach, set up in 1997, employs the most

contemporary technology, and today overseas customers demand "fiber

from Kharach". The AV cell unit in Canada, an overseas joint venture,

also supplies dissolving grade chemical pulp to the Group's VSF units in

India, Thailand and Indonesia.

This spread and scale of operations makes the Group's VSF

operations extremely cost competitive. In addition, vertical integration

into production of various principal raw materials required for VSF

production — caustic soda, CS2 and rayon grade pulp — heightens its

competitive edge.

Grasim has earned prestigious awards for its technology and its

innovative range of fibers. Made from wood pulp through an eco-

friendly, non-polluting process developed and patented by the Aditya

Birla Group, it is the world's only heavy-metal-free viscose fiber.

The Birla Research Institute for applied sciences at Nagda along

with the Company's R&D teams endeavors to make technology work for

improving quality, lowering costs and optimizing resources, the

Company's Textile Research Application Development Centre (TRADC),

coming up at Kharach, will continually develop new applications and

products. It will also explore possibilities of strategic alliances with

downstream textile product manufacturers to commercialize the

applications, leveraging superior quality of VSF in terms of feel, comfort,

hygiene and aesthetics.



All of the VSF business offerings have been branded under the

'Birla Cellulose' umbrella. To penetrate into niche market segments, and

to grow further, the division has ventured into the production of high

performance viscose fibers aptly named Viscose Plus, High Wet Modulus

Fibers (Modal) and Birla Excel, the new generation solvent spun fibers.

Grasim is also the largest producer of sodium sulphate, a by-product of

VSF manufacture.

Capacities at a glance

Division Capacity

Viscose staple fiber 2,51,850 tpa

Plant wise break-up:

:: Nagda 142,350 tpa

:: Harihar 40,150 tpa

:: Kharach 69,350 tpa

Rayon grade pulp (Harihar) 70,000 tpa

Central India polyesters:

It came into existence on 28 may 1986 at Mumbai. The company

obtained the certificate of commencement of business on 4th September,

1986. The company has been promoted by Deccan Cements Limited,

DCL Finance Limited, State Industrial and Investment Corporation of

Maharashtra, Ltd. (SICOM), Asian Development Bank (ADB) of Manila,

EMS Inventa AG, Switzerland and Kuwait Real Estate Investment

Consortium (KREIC). The Company Manufacture Polyester filament

yarn (PFY) and polyester chips.

In 1990, the Company obtained the approval of Government to

enhance the manufacturing capacity of polyester filament yarn from



15,000 tones to 25,000 tones per year. The Company had undertaken to

expand the existing spinning capacity by 12,000 TPA by addition of 4

spinning lines.

The Company has entered into an agreement with the National

Chemical Laboratory (NCL) of Pune for R & D in a number of areas to

improve plant operations.

During the current year, the company proposes to boost the exports

in view of the expanded production particularly with that of Micro Denier

Yarn.

The company has been awarded ISO 9002 certificate from Bureau

Veritas Quality International Ltd., UK (BVQ). The ISO 9002 certificate

should help the company’s exports especially in the European markets. Annual Unaudited Results (Rs. in Millions)

.Period Ended

Mar2005(12 Months)

Period Ended

Mar2004(12 Months)

% Change

Sales Turnover 4250.50 3530.10 + 20.41Other Income 26.60 30.50 -12.79Total Income 4277.10 3560.60 + 20.12Total Expenditure 4093.90 3207.10 + 27.65Operating Profit 183.20 353.50 -48.18Interest 0.00 0.00 N/AGross Profit 183.20 353.50 -48.18Depreciation 170.70 286.89 -40.50Tax 0.00 0.00 N/AReportedPAT 12.50 66.59 -81.23

Futura polyesters:The Company was incorporated in 1960 February at Mumbai. The

company manufactures heavy organic chemicals such as acetic acid, ester

solvents, benzyl products, plasticizers and polyester fiber and computer

software. Polyester fiber is sold under the trade mark `FUTURA`.



The Company set up a plant for the manufacture of 6,100 tones of

polyester fiber under the brand name `FUTURA` at Manali in Tamil

Nadu State.

The Company entered into collaboration agreements with Chemtex

Fibers Inc., U.S.A., for the supply of machinery equipment and technical

data from abroad and Chemtex Overseas Inc., U.S.A., for covering

procurement and supply of machinery in India in addition to the technical

data and continuing know-how. These companies are the wholly owned

subsidiaries of Chemtex Inc., U.S.A., which by another agreement

guaranteed their performance.

The Company received industrial license for expanding the

capacity of polyester staple fiber from 6,100 tones to 12,000 tones per

annum.

The Company converted letters of intent to increase the capacity of

the Manali unit to 30,000 tones per annum and to manufacture 3,500

tones per annum of polyester filament yarn at Manali. Letter of intent was

converted into industrial license. Foreign Collaboration was approved by

Government.

The Company set up a software division at Bangalore which would

initially develop software packages for various industries.

Annual Unaudited Results (Rs. in Millions). Period Ended Period Ended % Change



Mar2006(12 Months)

Mar2005(12 Months)

Sales Turnover 4711.50 4739.39 -0.59 Other Income 48.80 58.80 -17.01 Total Income 4760.30 4798.20 -0.79 Total Expenditure 4502.50 4367.20 + 3.10 Operating Profit 257.80 431.00 -40.19 Interest 189.10 191.70 -1.36 Gross Profit 68.70 239.30 -71.29 Depreciation 148.19 147.30 + 0.60 Tax 18.60 37.20 -50.00 Reported PAT -114.00 36.10 -415.79

COMPANY PROFILE GRASIM INDUSTRIES HARIHAR POLY FIBER :

A. Background of the Company:

Grasim Industries, a flagship of the Aditya Birla Group was originally

incorporated as Gwalior Rayon Silk Manufacturing (Weaving) Company

in 1947. The company’s key businesses are viscose stable fiber (VSF)

and cement. It also produces sponge iron, chemicals and textiles. Grasim,

which commenced operation in 1950 by manufacturing fabrics using

imported

Rayon (a manmade cellulosic fiber) at Gwalior, has now turned into

India’s top ten largest private sector companies in terms of assets and

sales. The company’s foray into cement became a successful

diversification and now it is the largest producer of cement in India with

the acquisition of UltraTech Cemco (erstwhile L&T). Previously, it

acquired Shree DigVijay Cement, cement division of Indian Rayon and

Dharani Cement.

The company had successful joint ventures abroad that include viscose

staple fiber plants in Thailand & Indonesia and carbon black plants in



Thailand & Egypt and pulp plant in Canada. Joint ventures in India are

Tanfac Industries, Bina Power Supply Company, Birla AT&T Co and

Bihar Caustic & Chemicals. The company recently divested its stake in

Mangalore Refinery and Petrochemicals. The company also acquired

controlling stake in Bihar Caustic & Chemicals by an open offer made

during 2002-03. Grasim’s subsidiaries are Kerala Spinners, Sun God

Trading and Investments and Samruddhi Swastik Trading and

Investments.

The company hived off its software business Birla Technologies Ltd

(BTL) to PSI Data Systems, a group company for a consideration of

Rs113mn during the year 2001-02. Further, Grasim has currently hived

off its stake in Indo-Gulf fertilizers as well.

Products:

Viscos Staple Fiber:

The company has 14% of the world market share in VSF. The company

produced 221,005 tons of VSF, which is 2% lower than previous year.

This was due to water scarcity and the closure of Pulp and Fiber plants at

Nagda where the factory remained close for 45 days. To avoid this

problem, they have increased the reservoir at Nagda. The outlook for

VSF looks positive with increasing global demand. The realizations

improved by 6% to Rs72.3/kg. A steep price rise in raw materials led to a

squeeze in the operating margins by 300bps.

Cement Business:

With the current capacity of 13.5mn tons, and when combined with

UltraTech Cemco, its total capacity stands at 31mn tons. While the

cement industry grew at 5%, Grasim grew at 7.5% in volume terms. The

operating margins increased by 200bps driven by higher prices and lower



power cost. The company gained market share in south where the sales

increased by 11% while in the north and the east, the sales grew by about

8- 9%. West was extremely competitive throughout the year. Key

emphasis is laid on RMC, blended cement, setting up captive power

plants and improving operational efficiencies. The realizations improved

to Rs1, 712/ton.

Textile Business:

The textile business witnessed a turnaround in the current year. It has

gained in terms of volume and profitability. The company’s products are

marketed under the popular brand ‘Grasim’ and ‘Graviera’. The

production grew 17% to 149lakh meters.

Chemical Business:

The company performed well in this business as the production grew by

4% to 157,541 tons. Here, the average realizations grew by 13% to

16,338/ton due to better international market conditions. The operating

margins are up by 400bps due to full capacity utilization of the company.

Sponge Iron:

The company’s sponge iron division is installed with a capacity to

produce 9lac tons per annum of sponge iron located at Salav (in Raigad

Dist) of Maharashtra. It was the star performer in the current year due to

robust steel prices. The average production grew 12% yoy to 687,272

tons and the realizations improved 44% to 9,188/ton.

OUR VISION – OUR MISSION – OUR VALUES



VISION, MISSION AND QUALITY POLICY:



Vision: To be a premium global conglomerate with an each business:

To achieve prime business status in the global economy by

undertaking the quality productions of goods which are essential to bring

modernity to the nation.

Mission:

To deliver superior value to our customers, shareholder, employees

and society at large.

To execute the productive activity to reach the valuable customers

with the help of the shareholders and employees. It also aims at satisfying

the needs of society and enabling its progress at large. The means of

services are founded upon the values. Which are significant at all times.

Values:

Integrity

Commitment

Passion

Seamlessness

Speed

PRODUCT/SERVICES PROFILE:



Our product

Unit Products

Harihar Polyfibers Rayon grade pulp

Grasilence Division Viscose staple fiber

Carbon Di sulphide

Sulphuric Acid

Sodium sulphate

The Pulping Process at Harihar Polyfibers:

The production process is the isolation of cellulose from the rest of the

wood constituents. The eucalyptus wood logs are chipped in every

efficient high speed fulghum chippers. The chips are screened and cooked

in batch digesters employing prehydrolysis sulphate process. The

liberated cellulose (pulp) along with spent cooling liquor is blown to a

blow tank. The entire digester, washing and bleaching plants have been

automated to reduce steam consumption, improve turbine efficiency,

reduce process variation, reduce chemical consumption and improve

environmental performance.

After; passing through a closed compact; pressure screen, the pulp is

washed in four stage counter current pressure washers screened and

centri- cleaned to remove shives, ash and silica. The pulp is bleached in

multistage bleaching sequence to desired brightness and characteristics,

screened and cetricleaned. The pulp is then de-watered in screw presses,

50% of de-watered pulp at 48-50% moisture content is supplied as such

to fiber plant for production of viscose staple fiber. The balance 50% of

pulp is dried to 68% dry content in rotary flash dryers baled and

dispatched to fiber plant at nagda for production of VSF.



The Fiber process at Grasilence Division:

The unit is manufacturing VSF Grasisik by adopting in house

development and patented friendly Zinc free process. In this process there

is no generation of hazardous waste.

The manufacturing process starts with steeping of rayon grade pulp in

caustic soda solution and separating the excess lye in slurry press to

obtain a mat of alkai cellulose. The alkai cellulose is shredded and

maturing drum and they reacted with carbon disulphide under vacuum in

simplexs to yield cellulose Xanthante. The xanthate is dissolved in

caustic soda to give a honey like liquid called “viscose”.

The viscose is then filtered in 3 stages of filtration using continuous

filters, deaerated and ripened under controlled conditions in spinning

tanks. It is then extruded as filaments through noble metal spinnerets on a

spinning machine into a spinning bath containing sulphuiric acid, sodium

sulphate and special additives. The filaments are then cut into fiber form

of required staple length. The fiber mat is further treated in an after

treatment machine where it is washed, de-sulphurished with caustic soda,

bleached with hypo chlorite, finished with finishing, agents, opened and

dried in drum dryer. This viscose staple fiber is then baled and sold.

Viscose staple fiber is a most versatile fiber, which is widely used in

commodity textile applications either as 100% fiber is in blends with

synthetic fibers such as polyester, cotton, acrylic, wool etc., this as

resulted in the improvement in the quality of the blended fabrics at

reduced cost. Cotton and viscose are the only two fibers, which are

biodegradable.

The other attributes that position VSF superiority over cotton are:

13% moisture regain as compared to 7% for cotton.

Soft feel for comfortable wear.



Superior luster and aesthetic appeal.

Most blend friendly fiber.

Excellent static dissipation for higher comfort.

Easy dyning and printing with excellent tones of colour.

High thermal resistances for maintaining cool in summers and warmed

in winters.

Area of operation-Regional:

Place Company

Belgaum Hindalco.(alumina refining)

Malkhed Grasim(grew cement Rajashree cement)

Harihar Grasim(VSF Harihar polyfibres)

Banglore Adity Birla NOVO (Madura Garments)

PSI Data systems (Software Transworks BPO)

Mangalore HGI (Gas)

National:

State Place Company

Punjab Bhatinda Grasim (Cement Grinding)

Haryana Bhiwani Grasim (textiles-fabric and

yarn)

Rajasthan Shambhupura Grasim (grey cement- aditya

cement)

Kharia

Khangar

Grasim (white cement- Birla

white)

Uttar Pradesh Renukoot Hindalco(aluminium)

Aditya Birla Nuvo(Hi-Tech



Carbon)

Renusagar Hindalco (Power generation

)

Jagdishpur Indo Gulb Fertilisers

Gujarat Dahej Hindalco (Birla Copper)

Sikka Shree Digvijay cement (grey

cement)

Kharach Grasim (VSF-Birla cellulosic)

Veraval Adity Birla NUVO (VFY)

Vapi Essel mining

(Ferro chemical Divn)

Halol Birla NGK insultors

Pipavav Ultra Tech cement

(greny cement)

Jafrabad Ultra tech cement (grey

cement)

Magdulla Ultra Tech cement (grinding)

Madhya Pradesh Jawad Grasim(grey cement vikram

cement)

Nagda Grasim (chemicals, VSF)

Malanpur Grasim (textiles vikram

wollens)

Jharkhand Mari Hindalco (alumina refining)

Lahardaga Hindalco (bauscite mining)

Garhwaroad Bihar caustic (chemicals)

West Bengal Belur Hindalco (sheet)



Rishra Aditya Birla NUVO(Jayshree

textiles, lines) Birla NGK

insulators

Midnapur Aditya

Durgapur Ultra tech cement (grinding)

Maharashtra Taloja Hindalco (sheet)

Kalwa Hindalco (foil and packaging)

Durgmanwadi Hindalco (bauxite mining)

Hotgi Grasim (cement grinding)

Salav Grasim (vikram ispatsponge

iron)

Mumbai PSI Data Systems. (software)

Transworks (BPO)

Birla Global Finance Ltd

Birla Sun life Insurance

company Ltd.

B.S.L Distribution company

Ltd.

Pune Indus cellular

Chhattisgarh Raipur Grasim Cement (grey cement)

Kusami Hindalco (bauxite mines)

Hirmi Ultra tech cement (grey

cement)

Orissa Hirakud Hindalco (aluminium

smelting, power generation)

Barbil Essel mining (mines)



Sambalpur Aditya aluminium

Koraput Aditya aluminium

Rayagada Utkal alumina

Andhra Pradesh Kollur Indal (soil and packaging)

Tadpatri Ultra tech cement (grey

cement)

Tamil Nadu Reddipalyam Grasim south (grey cement)

Gummidipoondi Aditya Birla Nuvo (Hi tech

corbon

Cuddalore Taafac (chemicals)

Kerala Alupuram Hindalco (extrusions,

smelters)

Global:

Country Company Product/services

Canada AV Cell Inc. Softwood/hardwood

pulp (for VSF

manufacture)

AV Nackawic Inc Dissolving pulp (for

VSF manufacture)

Egypt Alexandria carbon

black co. S.A.E

Carbon black

Alexandria Fiber

company S.A.E

Acrylic fiber

China Liaoning Birla carbon

company Ltd.

Carbon black

Thailand Thai Rayon VSF

Indo Thai Synthetics Spun and fancy yarns



Century textiles Fabries

Aditya Birla chemicals Caustic soda, chlorial,

Epichlorohydrin,

Sodium sulphite,

Sodium metasulphite,

Epoxy resias, Sodium

phosphates, Speciality

phosphates.

Indonesia PT Indo Bharat Rayon VSF

PT Elegout textile

industry

Yarns

PT Indo Raya Kimia Corbon disulfide

Philippines Indo phil textile mills Yarns

Indo phil cotton mills Yarns

Indo phil Acrylic

manufacturing

corporation

Yarns

Malaysia Pan century Edible oils Refined palm oil, palm

olein, stearin and

PFHD

Pan century

olerchemicals

Fatty acids, glycerins

Australia Aditya Birla minerals

Ltd.

Copper



COMPETITORS INFORMATION:

Central India polyesters:

It came into existence on 28 may 1986 at Mumbai. The company

obtained the certificate of commencement of business on 4th September,

1986. The company has been promoted by Deccan Cements Limited,

DCL Finance Limited, State Industrial and Investment Corporation of

Maharashtra, Ltd. (SICOM), Asian Development Bank (ADB) of Manila,

EMS Inventa AG, Switzerland and Kuwait Real Estate Investment

Consortium (KREIC). The Company Manufacture Polyester filament

yarn (PFY) and polyester chips.

In 1990, the Company obtained the approval of Government to

enhance the manufacturing capacity of polyester filament yarn from

15,000 tones to 25,000 tones per year. The Company had undertaken to

expand the existing spinning capacity by 12,000 TPA by addition of 4

spinning lines.

The Company has entered into an agreement with the National

Chemical Laboratory (NCL) of Pune for R & D in a number of areas to

improve plant operations.

During the current year, the company proposes to boost the exports

in view of the expanded production particularly with that of Micro Denier

Yarn.

The company has been awarded ISO 9002 certificate from Bureau

Veritas Quality International Ltd., UK (BVQ). The ISO 9002 certificate

should help the company’s exports especially in the European markets.

Futura polyesters:



The Company was incorporated in 1960 February at Mumbai. The

company manufactures heavy organic chemicals such as acetic acid, ester

solvents, benzyl products, plasticizers and polyester fiber and computer

software. Polyester fiber is sold under the trade mark `FUTURA`.

The Company set up a plant for the manufacture of 6,100 tones of

polyester fiber under the brand name `FUTURA` at Manali in Tamil

Nadu State.

The Company entered into collaboration agreements with Chemtex

Fibers Inc., U.S.A., for the supply of machinery equipment and technical

data from abroad and Chemtex Overseas Inc., U.S.A., for covering

procurement and supply of machinery in India in addition to the technical

data and continuing know-how. These companies are the wholly owned

subsidiaries of Chemtex Inc., U.S.A., which by another agreement

guaranteed their performance.

The Company received industrial license for expanding the

capacity of polyester staple fiber from 6,100 tones to 12,000 tones per

annum.

The Company converted letters of intent to increase the capacity of

the Manali unit to 30,000 tones per annum and to manufacture 3,500

tones per annum of polyester filament yarn at Manali. Letter of intent was

converted into industrial license. Foreign Collaboration was approved by

Government.



The Company set up a software division at Bangalore which would

initially develop software packages for various industries.

INFRASTRUCTURAL FACILITIES:

Water Treatment:

Water constitutes one of the major physical environments of man. It is

used almost for all purposes. Like bathing, drinking, industry etc. This

water contains varying amounts of organic and inorganic contaminants

may be dissolved suspended or colloidal. Hence the aim of water

treatment is to produce water fit to be used as boiler feed and other

purpose.

HPF gets water from Tungabhadra River. This water is generally low in

mineral contents but will have lot of floating matters as well dissolved

solids. Depending upon the quality of raw water the treatment is carried

out in the plant. The different steps involved in treating this water are:

1. Sedimentation with coagulation.

2. Filtration.

3. Demineralization.

4. Softening.

Intake well supplies about 48000 M3-50000 M3 of river water per day

for pumps of 250 HP capacities are provided fro this. The PH o water

ranges between 7.8-8 comes to constant head tank where coagulating

agents like polyaluminium chloride and soda ash is added to water. Now

a day they are adding PAC because the river water contains less turbidity.

If more turbidity is in river water then alum and soda ash are added The



PH after the addition of chemicals comes down 7-7.5. The water then

goes to the clarifier for sedimentation.

Canteen facility- Subsidized food and refreshment.

Transport facilities- Group transport facility to and from factory site.

Staff colony- Situated on the bank of sacred river Tungabadhara, 251

family accommodation and 72 rooms in bachelor’s hostel set in sylvan

surroundings with lush green lawns, parks and sliady avenues.

Temple- Lord Shiva temple in a screen location.

Auditorium- Multi purpose equipped with a 35-mm movie projector,

accommodating 1500 persons and serves as an indoor badminton court as

well.

School-An English medium higher secondary school affiliated to CBSE

up to class X and pre-university classes XI-XII under Karnataka board

with excellent performance in curricular activities.

Dairy- with 64 jersey cows provides quality milk at subsidized rates for

colony residents.

Medical Center- With four qualified doctors, medical facility is available

round the clock along with weekly services of consultant specialists.

Club and library – Recreational facilities lide billiards, hard court tennis,

table tennis, carom, chess, badminton, other outdoor games to keep you



fit. Library is stocked with a side range of books and latest periodicals to

keep up well read and informed.

Market Center- Provision shop, hairdressing saloon, laundry, tailoring

shop, beauty parlor, and fresh produce from colony orchard all in one

place.

Guest house- 18 well furnished rooms and dinning facility for the comfort

of guests.

Conveyance- For the convenience of students going for higher studies

(degree, engineering, medical etc) to Davanagere.

Picnic spot- To escape from the hums drum of daily life and spend

sometime with nature.

Labour workers colony- 96 quarters for workers in workers colony.

AWARDS AND ACHIEVEMENT: Harihar Grasim has received

1974 ICMA Sir P.C.Ray award for development of indigenous

technology for producing Rayon grade pulp from hybrid

Eucalyptus.

1991 Award for environment central strategies and safety in chemical

Plants.



1994 An Award for outstanding contribution towards promoting

savings conferred on Grasim Social Service society,

kumarapatnam.

1995 An Award for o/s contribution in the field of industrial and

labours relation.

2000 Aditya Birla Group chairman’s Bronze medal for

implementation of world class manufacturing practices.

2001 ICMA Award for obtaining ISO 9001-2001 certification.

2002 The Aditya Birla Group chairman’s planet award for

community development

2002 Greentech Industrial safety Gold Award for outstanding

achievement in the field of industrial safety.

2003 Aditya Birla Group chairman’s Gold Award for manufacturing

excellence and competitive advantage.

2004 Golden Peacock Environment Excellence gold award 2002-03

for outstanding achievement towards environment protection

and clean environment.

2003 Ranked 1st in TERI, corporate award for environment

excellence.

2004 Unit has emerged as one of the top performers with 3 leaf rating

in the green rating award by center for science and environment.



2004 Technical paper titled chelation with magnesium salt for

enhancing Rayon grade pulp quality presented during IPPTA

Seminar, was adjudged as one of the best.

2005 Technical paper titled state of the art technologies and

approach to improve “chemical recovery efficiency” presented

during IPPIA seminar, was adjudged as the best and awarded

first prize.



WORK FLOW MODEL:

Wood Yard:

Wood Yard department is the department where the woods are receiving

from forest and to the store it and also to supply the woods to the chipper

house. The wood yard department also sends woods pieces to the

laboratory for checking the desived properties lof the wood. Wood yared

department provides tractors, pocklines, and also lorries for shifting the

woods. This wood yard department provides 65% pf fresh wood and also

35% of old wood to the chipper house. The words, which are used for, the

;perpetrations of pulp in Grasim Industries are:-

1. Eculiptus.

2. Cusurina.

The woods are recieveing from both private source and also from

government sources. The Grasim Industries recievs the wood from

Karnataka, Tamilnadu, Maharastra and also Andra Pradesh sources.

According to lthe government rule, if andy company is cutting or taking

the wood means, that company, should plant the same amount of trees.

This is also done byu the Grasim Industries.

The main fundamentals of the wood yard department are:-

1. Receiving the wood

2. Checking the wood

3. Storing the wood

4. Feed the wood to chippers.



CHIPPER HOUSE:

The main function of the chipper house is to making of the wood chips

from wood barrels. In chipper house wood barrel is feed to cutting

chipper and then wood chips are formed.

The block diagram of the chipper house is shown below:-

The wood is fed into the chipper M/C. The chipper M/C is rotated

at a high speed with the help of the motor. During the rotation the wood is

feeded into the rotating blades through conveyers, which cuts the wood

and forms the chips. Then the chips, are feed into the drum screener. The

function lof the drum screener is to accept only the required size of the

chips whtere as the bigger size chips are feeded into the rechipper M/C

that again cuts the chips into a smaller size. Then this rechiped chippers

are again sent to drum screen which accept the required size chips. The

dusts coming from this process are sent to the boiler, where as the

accepted chips are sent to the silo.

JSS College, Dharwad

Chipper M/C

DrumScreen Vibrators

Silo

Pulp mill

Dust

Boiler

Rechipper

Wood Yard

28


Machines Conveyer Chipper Drum screen Rechipper

Type Chain 2

straves

Reversible

Disc with 8

knives

Rotating Drum Disc blowing

type (is knives)

Make Fulgham

(USA)

Fulgham(USA) Fulgham(USA) Fulgham(USA)

Capacity 25TPH 25TPH 60TPH 10-15TPH

Speed 1500rpm 600rpm 18rpm 870rpm

Drive 30HP 350HP 60HP 150HP

Feed Horizantal Bottom Horizantal Horizantal

PULP MILL:

Pulp mill is a plant when the pulp is manufactured. The wood chippers,

which are coming from the chipper house, are taken into the digestion

tank and then it is cooked by using the white liquor. Then the cooked

product is converted into bleached pulp by using the bleaching agents like

SO2, oxygen, HCL, COZ, and CIZ.

The block diagram process of the pulp will is shown below:



PULP DRYING:

The main function of the pulp drying is to dry the pulp. The pulp coming

out of the pulp mill consists of 5% of pulp and remaining is water. In pulp

drying, the water in the pulp is removed and the % of the pulp is

increased. The block diagram of the pulp drying diagram of the pulp

drying process is shown below.


ChipperHouse

Digester Storage Tank Pressure Washer

UnbleachedCentrigleacer

High-density Tougher

Bleacher

BL NotlerVacuum Filter

Pulp

30


PROCESS:

The pulp, which is produced in pulp mill department, consists of 5% pulp

and remaining is water. So it is required to remove the water. The pulp

from the pulp mill is stored in head box. Then it is sent to the screw press

to remove then it passed to the boaster 1 which again water is squeezed

and the % of pulp is increased to 48.5%. For grasinline department this %

of pulp is enough where as for bail 70% pulp is required. So this pulp is

again passed to the booster 2 in which again squeezing takes place. Then

it is sent to the drum. To the drum slot air, is supplied which is at


Pulp Mill Head box (storing)

Screw Press (squeezing)

Primary Booster

Primary Booster 42% of Pulp

Loose Pulp to generation

To prepare Rayon

Secondary Booster

Dry Drum temp (220-230degree)

Hot air generation

Induced draft fan

Ceylon Tank

Extension

Gowdon

31


temperature of 220-230deegree.Due to the 70% and then it is sent to the

make bail.

THE MCKINSEY’S 7S MODEL IS AS FOLLOWS:

The design of an organizational structure is a critical task of the

top management of an organization. It is the selection of whole

organization. It refers to organizational arrangement and relationships. It

prescribes formal relationship among various positions and activities.

Arrangements about reporting relationships, how an organization

members is to communicate with other members, what roles he has to

perform and what rules and procedures exist to guide the various

activities performed by members are all part of organizational structure.

In Harihar Polyfibers limited the organization structures is flexible

enough to counter balance of the external environment. This will help in

the smooth functioning of the activities of the company. The company is

having its regional office at Bombay and to take a situation in the external

environment. The senior executive president is in a position to control the

activities of the organization. For taking the entire problem he must have

with technical and managerial knowledge. The Vice President of each

department is responsible for the activities done in their respective

departments.

The Senior Executive President and Vice President departments

come under top management. Under this the position like General

Manager, Deputy General Manager, Senior Manager and Assistant

General Manager positions comes under middle level management. All

the departments of the Harihar Polyfibers are interring related with each

other to maintain control over the organization.




PRESIDENT

EXECUTIVE PRESIDENT

VICE PRESIDENT

VICE PRESIDENT COMMERCE

VICE PRESIDENT TECHNICAL

VICE PRESIDENT H.R.M.

HRD P & I R SECURITY MEDICAL

GUEST HOUSE

TRANSPORT

COLONY

DGM AGM

AGM

OFFICER

JOINT MANAGER

OFFICER


THE MCKINSEY’S 7S MODEL

The hard elements of McKinsey’s model are feasible and easy to

identify. They can be found in strategy statements, corporate plans,

organizational charts and other documentations.

The four soft S’s however, are hardly feasible. They are difficult to

describe since capabilities, values and elements of corporate culture are

continuously developing and changing. They are highly determined by

the people at work in the organization. Therefore it is much more difficult

to plan or to influence the characteristics of the soft elements. Although

the soft factors are below the surface, they can have a great impact of the

hard structures, strategies and systems of organization.


Strategy

Structure

Systems

Skills Style

Staff

Shared Values

34


THE 7S ARE:

Structure

Skills

Systems

Style

Staff

Shared values, and

Strategy

There is no particular order to the 7’s.

STRUCTURE:

The organization as well as the group and ownership structure is

included here. Also note Porter’s categorization of group

structure:Efficient Allocation of Capital, Allocation of Resources, etc.

Mr. Kumar Mangalam Birla is the chairman of the company; the

company board also includes Executive Directors, Directors, Advisor and

Company Secretary in the board. The company Head office and

registered office is at Ujjain, in Madhya Pradesh



Within each unit there are H.R. Department, finance department

and marketing department. The divisional Heads and Senior Heads of

divisions head each division. The vice president is the head of each unit.

The Executive president heads all the division:


HARIHAR POLYFIBER

UNIT

HPF VP TECHNICAL

PRODUCTION

TECHNICAL

MECHANICAL

ELECTRICAL

CIVIL

COMMERCIAL

ACCOUNTS

TIME OFFICE

MARKETING&

SALES

RAW MATERAIL

SYSTEM

LEGAL

HRDVP HRM

HRD

P& IR-HPF

SECURITY

36


Board of Directors:

Mr. Kumar Mangalam Birla, chairman.

Mrs. Rajashree Birla.

Mr. M.L Apte.

Mr. B.V. Bhargava.

Mr. R.C.Bhargava.

Mr. Cyril Shroff.

Mr. S.C. Subrahmanyan.

Mr. Shailenra K. Jain, Whole Time Director.

SKILLS:

Skills refer to the fact that employees have the skills needed to carry out

the company’s strategy. Training and Development ensuring people know

how to do their jobs and stay up to date with the latest techniques.

The company requires technical skills for production and manufacturing

divisions. Also it requires strong management skills in marketing and

H.R. divisions. The marketing executives must have good communication

skills and better knowledge of the company and its product. Many

marketing executives have the engineering background with MBA

degree.

Marketing executives are also required to have very strong verbal and

written communication skills, especially presentation skills as most of the

time they have to do the presentation for their clients and for the higher

authorities.



Senior level executives must be good analyzing individual strength and

weakness, so that they can allocate work to individuals effectively. They

also must have strong skills of analyzing the market situation and

changes.

SYSTEMS:

The decision making system within the organization can range from

management intuition, to structured computer systems to complex export

systems and artificial intelligence. It includes

Computer systems

Operational Systems

Marketing Systems

HR Systems etc.

Grasim industry is having its branch office at many places in India so

as to ensure that the required information has been gathered at the right

time and at the right place.

In Grasim Industry the rules governing the employees are explained to

each employee on joining the company. They will be provided with the

handbook, which will be having all the information regarding the

company. There are detailed procedures laid out by the corporate office

on procurement of items and supplies, making travel arrangement,

allowances, reimbursements, leave and other arrangements. In general

HR department and the unit heads are responsible for ensuring that the

staff follows all procedures.



With regard to office systems, all the offices are computerized for the

purpose to enable greater speed and timeliness of the completion of the

projects. All the entries regarding marketing are done online with the help

of Internet. So that there will not be any delay in communication land

flow of information.

With regards to performance appraisal system, the company has been

providing many good opportunities to employees for their carrier

development. The company does the performance appraisal by

conducting Induction training program for employees who joins the

company. Also company conducts training program for the executives of

all the levels one or two times a year. This is conducted in well known

H.R. and Training institute of the company.

QUALITY SYSTEMS:

Birla White is the first cement plant to get ISO 9002 QMS certification

from RWTUV, Germany. It is also IQRS level-5, certified from DNV,

Netherlands.

Quality is the key stone for the company’s business excellence and our

ultimate goal of total customer satisfaction.

Style:

Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behavior and thought:

Leadership Style

Organization Culture



The company culture is very informal, youthful and dynamic. It

encourages free and participative thinking. The Grasim Industry has the

participative type of leadership style in practice. The top and middle

executives of the management tend to be totally accessible and encourage

the participation in decision-making, by conducting the debate and

discussion. This type of leadership style attracts talented people to enter

the company and make them to feel company as their family. Also this

style motivates the employee to stay in the company.

Staff:

Staff means that the company has hired able people, trained them well

and assigned them to the right jobs. Selection, training, reward and

recognition, retention, motivation and assignment to appropriate work are

all key issues.

In Grasim Industry entry-level staffs are recruited from premier

Management and Engineering institutes through campus recruitment.

Each regional unit head visits the management and an engineering

institute located in their area and does the recruitment for the company. In

entry-level fresher and people with one year or less than that also

considered. Each unit specifies the number and type of people required

and the recruitment is done as per that specification. The candidates are

placed usually according to their location preference to particular unit or

location. The entry-level recruitment process involves short listing and

selecting the candidates based on resumes group discussion and personal

interview.



Middle level staff is recruited from the competing companies in the

industry and also from company within itself. This involves personal

interview and usually group discussion.

Senior level recruitment takes place by taking help from marketing

companies or advertising companies in the country.

Shared Values:

A shared value means that the employees aware the same guiding values.

Values are things that you would strive for even if they were

demonstrably not profitable. Values act as an organization’s conscience,

providing guidance in times of crisis. Identifying corporate values is also

the first essential step in defining the organization’s role in the larger

community in which it functions.

Strategy:

The integrated vision and direction of the company, as well as the manner

in which it derives, articulates, communicates and implements that vision

and direction.

The Grasim Industry is a worldwide leader in viscose staple fiber (VSF),

and it is a largest producer of white cement in India. The Birla White

Cement division changed its slogan from “Whitest White Cement” to

“My Kind of Design”. The company is having many products, which are

produced by using the white cement, differentiates company products

from competitors product.



The company is having strategy of going for more tonnage; better quality

and customer services rather than more margins.

The focus is on the all-round development of the communities around the

plants located mostly in distant rural areas and tribal belts. All the group

companies: Grasim, Hindalco, Indian Rayon, Indo Gulf and Rural

Development Cells, which are the implementation bodies.

Projects are planned after a participatory assessment of the communities

around the plants. Each project has a one-year and a three-year rolling

plan, with milestones and measurable targets. The objective is to face out

the companies’ presence over a period of time and handover the reins of

further development to the people. This also enables to widen the

company reach along with internal performance assessment mechanisms,

the projects are audited by reputed external agencies, which measures it

on qualitative parameters, helping the company to gauge the effectiveness

and providing excellent inputs.



HUMAN RESOURCE DEPARTMENT

Human Resource and HR department have always been key

factor in the group’s success. Outstanding personalities like G.D Birla

and Aditya Vikram Birla have set new records of achievement in India’s

arena, supported by a team of dedicated and capable mangers at level.

The group officers you not merely a job, but an opportunity

to fulfill your long terms career plans.

Specifically, the Aditya Birla group offers:

An unlimited choice of openings.

Executing global career opportunities.

The resources to back your ideas to upgrade your skills.

Training schemes.

The department procures in the organizations describe the quality

management system as per the requirement of ISO 900/in 2000 and

EMS as per 1400/in 1996 adopted in HRD and has reference to quality

manuals, common producers, environment manual and environment

procedures of pulp division and Grasiline division.

The HRD personnel are responsible to carry out the functions of

HRD department in context to the procedures laid out while

interfacing with reactions. Departments of both divisions and shall

follow the procedures delineated here in.

HRD department extends business friendly service functions to

both Pulp and Grasiline division.



(a)Objectives of HRD department broadly revolved around

~ Achievement focused.

~ Development oriented.

~ People sensitive.

Important functions are:

Placement of qualified and competent human resources at the right

time.

Determine and enhance the necessary quality through focused

training, education and skills development.

Career Planning

Succession planning

Apprising and rewarding the performance

Effective team building

Measurement of employees satisfaction

Analyzing the reasons and employees attribution correcting

the same.

Development of leadership among managers through delegation

and empowerment.

HR department has infrastructures like Buildings, Training, Hall,

Computers, and Audio Visual.

Aids and other associated utilities.

Department is headed by deputy general manager (HRD)

associated by component staff.



(b)HRD Chart:

RESPONSIBILITIES AND AUTHORITIES (HRD)

Deputy GM:

Responsible for implementing company HR policies and programs.

Selection, Recruitment and Placement.

Management Development programs and employee Training.

Performance appraisal.

MIS (HR)

Assistant manager and senior officer (HRD).

Identification of competencies.

Preparation of training calendar.

Designing and organizing training programmer as per calendar.

Summer placements, Vocational training of students of various

institute.

Management information System (Training).

Recruitment.

(c) HRD in HPF performs following functions:



Training.

Recruitment.

Performance appraisal.

Organization Development.

Organization Behavior.

The Grasim unit that produces Rayon Grade Pulp at Kumarapatnam

(HPF and Grasilene division) has a strong work force of 2910 workers.

UNITS STAFF WORKERS

HPF 343 172

GRALIENE 242 1019

TOTAL 623 2287

The unit provides the following facilities to the workers.

Working Hours:

The unit operates in four shifts:

A shift 7.00 am to 3.00 pm.

B shift 3.00 pm to 11.00pm.

C shift 11.00 am to 7.00 am.

General shift-8.30am to 5.30pm.

Uniform:



Workers are eligible P.A. for the following:

Shirt Cloth for 2 shirts.

Pant Cloth for 2 pants.

Shoes (black) 1 pair.

Socks (blue) 2 pair.

Stitching charges Rs.300/-

Female members will be issued saree or cloth for salwar kameez.

Industrial Canteen:

Canteen will provide break fast and meals services to workers at

subsidized rates. Canteen is open at fixed timings on all working days.

Canteen coupons will be issued through time office on 5th of each month

and cost of the coupons will be deducted from the salary.

Leave:

1. Conformed workers are eligible for following member and

type of leaves subject to staff member putting up a minimum

240 days of attendance in a calendar year.

Casual lave-8 days.

Privilege leave-30 days.

Sick leave-7 days.

Special leave-10 days.

Half day is permissible in exceptional circumstances.

To those not covered under employees state insurance

scheme.

2. Intervening holiday/weekly off will be counted as leave

during leave period.



3. a) Privilege leave can be accumulated up to 300 days.

b) Sick leave can be accumulated up to 30 days.

4. Staff members making the attendance by purchasing the

cards are eligible for compensatory off lieu of overtime duty.

5. National and festival holidays-10 days in a calendar year and

as notified.

Disbursement of Salary:

Normally, Salary is distributed on or before 5th day of each month

through bank.

Medical facilities:

Medical Center : Giving many facilities to the employees

Occupation health-cum-first aid center

Medical reimbursement : which gives money facilities to the

employees for major operations

Leave Travel Assistance:

Confirmed staff members are eligible for leave travel assistance

every year at 1.5 times the average basic salary for the calendar year.

To claim income tax exemption on I.T.A. claim needed to be

supported by actual bills and such benefit is available two times in the

block of four years period. Unclaimed and eligible LTA amount will be

paid in the last quarter of every year after deducting income tax at source,

if any.

Staff members have an option to carry over this amount up to 2

years, on application.

Conveyance Allowance:

Library cum reading room.



TV room.

Indoor games like Billiards cock, table tennis, carom.

Facilities for outdoor games like Cricket, Basket Ball, and Tennis

etc.

Matches/ Tournaments are conducted on Independence Day/

Republic Day.

Community festivals like Ganesh Chaturthi, Holi, Diwali are

celebrated.

Monthly fees are to be paid to the club separate sports like

Billiards, Shuttlecock etc.

INSURANCE SCHEME

Company takes group insurance policy in live of EDLI scheme for

providing better benefits to the nominees of staff in case of death

of staff member during the service period.

All members who are members of PF are covered under personal

accident policy, which provides insurance against accident.

Traveling Allowance for Business visits:

Staff member on business visits are eligible for traveling, daily and

conveyance allowance and for other expenses as per applicable rules.

Retirement:

Staff members after prescribed year of service are covered under

superannuation scheme of CIC. The employee’s contribution towards the

scheme is 10% of salary to those drawing basic salary more than 7500/-

per month it is 15%of basic salary. Out of the above contribution of

8.33% on Rs.6500/- is contribution to employee pension account.



Gratuity:

Gratuity will be paid as per payment of gratuity Act, 1972.

Company may at its discretion pay gratuity at one month’s salary for

every completed year of services to the staff retires/dies after 15 or more

years of continue service.

Marriage Gift:

Company gives cash gift to staff member or to his/her children

when they get married.

Merit Scholarship to employee’s children:

Children of staff studying in professional course like Engineering,

Medical, Dental, Management studies, Charted Accountant are eligible

for merit scholarship linked and as per schemes.Loans:

Particular of Loan Eligibility service (Years)

Maximum amount Interest rate (PA)

Marriage: Daughter

Son 10

10

10 months salary

05 months salary

Nil

Nil

Medical for Expensive

Treatment (Self, Wife,

Children)

10 05 months salary Nil

General 02 01 month salary

Nil

Vehicle 05 Rs.35, 000 Nil

Appliances 03 Rs.7, 500/- Nil

Education 10 75% of fees paid or



Rs.20, 000/- which

ever is less.

9%

These loans are subject to applicable income tax rules.

SKILL

Waterman considers skills as one of most crucial attributes of

capacities of an organization the term skills include those characters,

which most of people uses to describe a company. A Grasim industry is a

Viscose Staple Fiber and pulp manufacturing company it is known for its

manufacturing skills. Grasim industry is a dynamic multinational

company “the Aditya Birla Group”, consists of more than 55

professionally managed large units. It enjoys the confidence of more than

6 lakh shareholders and has an asset of dedicated and devoted personnel.

The company secured quality standard systems. It is a leading supplier of

technology and machinery to the production of man-made fiber. It has

received prestigious award in the area of productivity and total preventive

maintenance.

TRAINING METHODS TO GRASIM HARIHAR

EMPLOYEES



There are two broad types of Training: On-The-Job and Off-The-

Job techniques. Individual circumstances and who, what and why of the

training Programme determine which method to use.

ON-THE-JOB TRAINING:

It is ‘learning by doing while working’. Training is imparted to

employees while they perform their regular jobs. In these methods they

do not lose time while they are learning. On-the-job training includes

coaching, orientation, job instruction training, apprenticeship, internships

and assistantships, job rotation and coaching.

OFF-THE-JOB TRAINING:

This type of training is imparted Off-The-Job outside the work

premises. These include classroom activities like lectures, special study,

film television conferences or discussions, case studies, role-playing.

Simulation programmed instruction and laboratory training.

TRAINING METHODS FALLOW UP AT GRASIM:

LECTURE COURSES:

Formal lecture courses Offer and Opportunity for employees to

acquire knowledge and develop their conceptual and analytical abilities.

To be effective the lecture must motivate and create interest among the

trainees and advantage of lecture method is that it is direct and can be

used for a large group of trainees. Thus, cost and time involved are

reducing.

CASE STUDY:



Case analysis takes the actual experience of organizations, these

cases describe as accurately as possible, real problems have faced.

Trainees study these cases to determine problem, analyze causes, develop

alternative solutions, select what they believe to be the best solution, and

implement it. Case Study can provide stimulating discussions among

participants, as well as excellent opportunities for individuals to defend

their analytical and judgmental abilities.

GROUP DISCUSSION:

This method involves a group of people who pose ides, examine

and share facts, ideas and data, test assumption, and draw conclusions, all

of which contribute to the improvement of job performance. The success

of this method depends on the leadership qualities of person who leads

the group.

ROLE PLAYING:

It is defined as a method of interaction that involves realistic

behavior in imaginary situations. This method of training involves action,

doing and practice. The participants play the role of certain characters.

Such as the production manager, mechanical engineer, foremen, workers

and the like. This method is mostly used for developing interpersonal

interactions and relations.

DEPARTMENTAL PROCEDURE FOR TRAINING AND

DEVELOPMENT



Human Resource Department has its own departmental procedure

which guides and influence for carrying out the HRD function in an

effective manner.

COLLECTION OF DATA:

The personal data of employees consisting of department,

designation, date of joining, date of birth, educational qualification,

experience and training needs is collected.

IDENTIFICATION OF NEEDS:

After collecting a personal data employee next step is to identify

training need of individuals through training need identification format,

IDP, performance appraisal and survey reports. The training needs are

identified once in a year and this is the responsibility of DGM (HRD).

List of training programmers inclusive of the codes with tainting

identification format are sent to the departmental heads to nominate their

colleagues either to external or in-house training.

PLANNING AND DEISNING TRAINING:

After identifying a training need training curriculum is planned and

designed considering the method/techniques of imparting training.

PREPARATION OF TRAINING PLAN AND TRAINING

MODULE

Training plan and training module are prepared to provide

complete details of training programmes.



The following are the details in the training plan and module:

Training program title

Objectives of training

Syllabus of the training

Contents/Curriculum of the programmed

Faculty

Duration of the program.

Considering training module the training calendar is prepared

according to needs for each program, training hours, no of personnel to be

trained, availability of faculty, availability of infrastructure and training

method. Preparation of the training notes, writing-ups and other reference

material required for the in-house program are done.

In case of external program arrangements are made to provide the

training as per the recommendations of functional heads/HOD.

FORMAT OF TRAINING PLAN

SL.NO Name of the

Program

Duration of

Training

No. of

Person

Total hours

of Training

PREPARATION OF TRAINING CALENDAR

It includes names of programmed, the month in which it is to be

conducted and dates of the training programmed. The information about

the number of participating in each batch of each programmed is also

stated.



FORMAT OF TRAINING CALENDER

SL.

NO.

Training

Program

Months in

which

training is

to

conducted

No. Of

program

Duration

in days

No. of

participants

Mans

days

SELECTION OF TRAINEES

Faculty/Trainer plays a very important role in the success of a

training program. Trainer who is going to influence and motivate the

trainees so, selection of a right type of a trainer is a very important

responsibility. It is the responsibility of the AGM (HRD).

For proper selection the following criteria are considered.

SELECTION OF INTERNAL FACULTY

For in-house training, trainer is selected, based on their expertise

and experience.

SELECTION OF EXTERNAL FACULTY

Recognition, Reputation, Education and experience of the

trainer.

Recognized institutions.

Selecting the external faculty from faculties’ directory for

specific training programmes. Involving specialization

/expertise.

SELECTION OF PARTICIPANTS



According to the personal data collected about employee and the

training needs identified the participants are selected for training

programmes.

FOLLOWING CRITERIA ARE CONSIDERED

Identified needs

Trainees available for the programme

Discussion with departmental heads to know the trainees

who are in need

PROVIDING TRAINING:

TRAINING INFRASTRUCTURE

To provide the training it is ensured that training aids like OHP,

Transparencies, and disperse materials relevant to the training program

are prepared. For the efficiency and effectiveness of the training program,

Training hardware’s are checked that they are proper working condition.

TRAINING PROGRAMME AT GRASIM

The programmes held by the HRD department are mainly classified as

the programmes for the employee and staff. The programmes are called

as Employee Development Programme (EDP) and Management

Development Programme (MDP).

TYPES OF TRAINING PROGRAM

In-House Training:



This programme mainly deals with the development of the employees.

For In-House Program mainly internal facilities are developed nearly 3-4

programmes are held per month. The batch strength is around 30-40 per

month.

External Training:

According to the requirements of the organization it sends people

to different institutions for training and development in behavioral as well

as technical aspect. These programmes are called “Knowledge Integration

Programme (KIP)”.

Technical Training Programme:

This is held for technical people and when the trainee needs are

identified, external agencies are contracted and invited for conducting

lecture. The agencies that have been conducting lecture are L&T,

Chennai & Semens.

Vendor’s Development:

These programmes are mainly held for higher-level staff to

enhance the knowledge in the fields of logics etc.

Staff Development:

Various programs like drama, Stage Play, Lectures are held mainly

to develop the employee in his behavioral aspects.

CLASSIFICATION OF TRAINING PROGRAMS

1) Training Program for Staff

a) Behavioral Program:



Transactional Analysis

Communication Skills and Presentation Skills

Team Building and Group Dynamics

Project Management

Interpersonal Skills

Creativity and Innovation

Management Style 36 Degree way

Conceptual Thinking

Performance Managements

b) Technical Program:

Six Sigma

Total Productivity Management

Energy Conservation

Hydraulics

Pneumatics

Bearings and Tribology

Pumps

c) System:

World Class Office Management

Computers and Networking

Quality Management System

EMS

OHMS

2) Training Programs For Workmen:

EDP

EDP for Spouse



3) Special Programme:

Society

Suppliers

SWOT ANALYSIS:

Strengths: Double digit growth rate: Cement demand has grown in tandem with strong economic

growth; derived from:



-Growth in housing sector (over 30%) key demand driver;

-Infrastructure projects like ports, airports, power projects, dam &

irrigation projects

-National Highway Development Programme

-Bharat Nirman Yojana for rural infrastructure

-Rise in industrial projects

-Export potential also demand driver

Capacity utilization over 90%

Weakness: Low value commodity:

Cement Industry is highly fragmented

Industry is also highly regionalized

Low – value commodity makes transportation over long distances

un-economical

Opportunities: Demand–supply gap: Substantially lower per capita cement consumption as compared to

developing countries (1/3 rd of world average)

Additional capacity of 12 million tons per annum will be required

to match the demand

Limited green field capacity addition in pipeline for next two years,

leading to favorable demand – supply scenario

Threats: Rising input costs: Government intervention to adjust cement prices

Possibility of over bunching of capacities in the long term as some

of the players have already announced new capacities

Transportation cost is scaling high; bottleneck due to loading

restrictions



Coal prices climbing up; industry players say current shortage of

coal in the country is estimated to be over 10 million tones

CONCLUSION

1. From the data collected it is concluded that the mentorship concept yielded

positive changes in the mentees.

2. The mentorship concept concentrated much on the work aspects and

developing career plans. Personal matters are also taken into consideration,

which motivates mentees to engage in mentorship concept.

3. The data concludes that mentorship program helps in- career development.

The main objective of the mentorship program is career development and the



objective is thus served.

4. Mentors skills of inspiring mentees are rated very good and excellent, so the

mentors are doing good job in mentoring mentees. So mentees are very

satisfied with the mentors' performance.

5. Mentors give good feedback to mentees. Feedback can be suggestions,

motivations, etc to mentees. Most of the mentees are happy with feedback by

the mentors. They rated feedback as excellent.

6. Most of the mentees rated excellent to the skills of Managing risk by the

mentors. So it is concluded that mentees are very much satisfied with the skills

of mentors. So there is no need of any changes in mentorship program.

7. The instruction given by the mentors are accepted by the mentees. Mentees

are happy with the instruction by the mentors. So mentees really need this kind

of instruction from mentors.



Unit '04-'05 '03-'04 '02-'03 '01-'02 '00-'01 '99-'00 '98-'99 '97-'98 '96-'97 '95-'96 Production Viscose Staple Fibre Tonnes 247,95

2221,005

224,610

176,462

218,847

188,002

164,355

174,281

155,385

162,470

Grey Cement Mn Tonnes 12.44 11.85 11.09 9.53 9.10 8.40 5.82 4.71 4.10 3.27

White Cement Tonnes 315,36

8310,578

310,163

267,915

251,594

240,492

131,979

Sponge Iron Tonnes 780,341

687,272

612,879

559,567

663,998

709,094

670,231

667,350

706,510

347,513

Turnover Viscose Staple Fibre Tonnes 231,53

3229,110

227,900

181,520

203,854

192,452

164,130

171,148

151,838

161,993

Grey Cement Mn Tonnes 12.63 11.96 11.16 9.68 9.16 8.42 5.88 4.70 4.14 3.15

White Cement Tonnes 311,45

4314,819

305,223

266,105

251,291

240,014

133,660

Sponge Iron Tonnes 772,799

676,921

612,425

562,334

673,852

822,996

565,682

767,255

585,917

435,503

Unit '04-'05 '03-'04 '02-'03 '01-'02 '00-'01 '99-'00 '98-'99 '97-'98 '96-'97 '95-'96

Profit & Loss Account Gross Sales Rs crore 7,201 6,130 5,412 5,070 5,582 4,982 4,325 4,023 3,602 3,199 Net Sales Rs crore 6,229 5,213 4,609 4,372 4,822 4,273 3,757 3,500 3,089 2,742 Other Income Rs crore 187 209 133 129 108 88 110 124 135 211 Operating Profit (PBIDT)

Rs crore 1,785 1,504 1,141 937 911 756 678 698 706 773

Interest Rs crore 139 154 168 190 239 256 292 256 259 230 Gross Profit (PBDT) Rs crore 1,646 1,350 973 747 673 500 386 443 447 543 Depreciation Rs crore 285 273 254 252 252 237 210 167 148 124 Profit before Tax & Exceptional Items

Rs crore 1,361 1,077 719 495 421 263 176 276 300 420

Current Tax Rs crore 451 291 192 57 50 12 8 45 41 88 Deferred Tax Rs crore -33 7 -15 51 Net Profit after Tax (before Exceptional Items)

Rs crore 943 779 542 387 371 251 168 231 259 332

Exceptional Items Rs crore -58 0 -174 -84 7 -18 -4 16 Net Profit after Exceptional Items & Total Taxes

Rs crore 886 779 368 303 378 233 164 231 275 332

Equity Shares Dividend (including CTD)

Rs crore 167 145 103 83 81 72 63 54 52 45

Unit '04-'05 '03-'04 '02-'03 '01-'02 '00-'01 '99-'00 '98-'99 '97-'98 '96-'97 '95-'96



Net Fixed Assets* Rs crore 3,204 3,213 3,264 3,263 3,303 3,401 3,354 2,633 2,473 2,222 Investments Rs crore 2,982 2,541 1,796 1,416 682 683 680 717 507 619 Net Current Assets Rs crore 745 550 613 733 991 967 1,002 1,092 1,250 1,012

Rs crore 6931 6,303 5,673 5,412 4,976 5,052 5,037 4,442 4,230 3,853 Share Capital Rs crore 92 92 92 92 92 92 92 72 72 72 Reserve & Surplus* Rs crore 4,232 3,514 2,879 2,615 2,984 2,685 2,524 2,243 2,068 1,845 Deferred Tax Balance Rs crore 599 633 626 641 Loan Fund Rs crore 2,008 2,065 2,076 2,065 1,900 2,275 2,421 2,127 2,090 1,936 Net Worth# Rs crore 4,324 3,606 3,597 3,347 3,075 2,777 2,616 2,316 2,140 1,917

Rs crore 6,931 6,303 5,673 5,412 4,976 5,052 5,037 4,442 4,230 3,853 * Excluding Revaluation Reserve

Rs crore 5 5 6 7 18 20 22 25 28 31

Unit '04-'05 '03-'04 '02-'03 '01-'02 '00-'01 '99-'00 '98-'99 '97-'98 '96-'97 '95-'96 Ratios PBIDT Margin (%) 28.70 28.90 24.76 21.43 18.90 17.70 18.06 19.96 22.86 28.19 Interest Cover (PBIDT-Tax/Interest)

(x) 9.61 7.88 5.65 4.63 3.61 2.91 2.29 2.56 2.57 2.98

ROACE (PBIT/Avg.CE) @

(%) 23.10 20.40 16.18 12.88 13.47 10.53 10.14 13.06 15.04 19.19

RONW (PAT/NW) @ (%) 23.70 22.80 15.00 12.78 12.30 8.64 6.63 10.36 12.76 18.71 Debt Equity Ratio (x) 0.46 0.57 0.58 0.62 0.62 0.82 0.93 0.92 0.98 1.01

Unit '04-'05 '03-'04 '02-'03 '01-'02 '00-'01 '99-'00 '98-'99 '97-'98 '96-'97 '95-'96 Per Share Data Dividend per Share

Rs/share 16.00 14.00 10.00 9.00 8.00 7.00 6.75 6.75 6.50 6.25

Earning per Share @

Rs/share 103 82 59 42 40 27 20 32 36 46

Cash Earning per Share @

Rs/share 130 116 85 75 68 53 45 55 56 63

Book Value per Share

Rs/share 472 393 392 365 335 303 285 320 296 265

Other Information No. of Equity Shareholders No. 174,83

1191,770

242,359

263,549

279,207

298,232

199,083

206,851

213,619

219,859

No. of Employees No. 15,363 15,971 16,648 16,912 21,473 23,345 24,407 23,157 23,397 22,144 Note: In FY 1998-99 the company acquired the cement business of Indian Rayon and Industries Ltd, in a scheme of arrangement.

@ Before Exceptional Items, # Excluding Reserves, * Excluding Revaluation Reserve



NATURAL BIRTH – VSF IS DERIVED FROM WOOD PLUP



VALUES WE VALUE2006 Integrity Commitment Passion Seamlessness Speed



BIBLIOGRAPHY

BOOK

Human Resource Management

o Author : C. B. Gupta 7th Edn. Published by Sultan

Chand and Son’s Education Publication, New Delhi

WEBSITES

* www.grasim.co.in.

* www.google.com


Final Report

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