Organization study on Tylsan Nec Ltd.,

Organization Study on Tulsyan Nec Ltd.,

Institute of Management Studies, Kuvempu University

CHAPTER 1

INTRODUCTION

I SEEMA BANU studying at Institute of Management Studies

(Kuvempu University) undertook an internship study at Tulsyan Nec Ltd to

fulfill the requirement of MBA degree course of Kuvempu University. This

was undertaken during Aug-september2012 and main purpose of this

internship was to know how the theoretical aspects we study during our

course, are put into practice by the company.

The objective of undergoing this internship was to get practical

exposure to the structure and functioning of the organization. It was also

meant to study the activities of various departments such as finance,

marketing, production, human resource, purchase, store and service etc.

The report traces the growth and development of the company and

gives a skeletal outline about the technologies adopted by the company; the

report also explains the values and gives a brief about the financial aspects of

TULSYAN NEC LTD.

1.1 INTRODUCTION

HDPE/PP oriented strips are becoming increasingly popular in India &

have caught the eye of many end users for their requirement of packing

materials. They have become popular on account of their inertness towards

chemical, moisture & excellent resistance towards rotting & fungus attack.

They are non toxic. Lighter in weight & have more advantages than

conventional bags. PP/HDPE woven sacks laminated with LDPE/PP liner

have wider applications. HDPE woven sacks are much stronger & can

withstand much higher impact loads because of HDPE strips elongation at



break is about 15-25% as compared to 30% of Jute. These sacks are much

cleaner & resist fungal attack. Jute prices are very unstable in the market

since Jute is an agriculture product. These sacks have many advantages over

other conventional sacks materials & are quite competitive in price. The

major users of HDPE/PP woven sacks are fertilizer, sugar, cattle feed, cement

& other chemical Industries. Oil seeds, salt, starch, pesticides, detergents &

many other items are also being packed in woven sacks. Fabric from HDPE

strips is also ideal for the Manufacture of shopping bags, sport hold-all, deck

chairs, books binding Cinema screen wall facing & carpet backing etc.

1.2 Objectives of the study

1. The objectives of the study are to learn & understand the working of

various functional departments like Production, Marketing, Finance and

Human Resource.

2. SWOT ANALYSIS to identify the major strengths & weaknesses of the

company for improvement.

3. Study the performance of Tulsyan NEC Ltd.

4. To study the financial position of Tulsyan NEC Ltd.

1.3 Scope of the study:

The scope of the study was limited to know the organization structure

and functions of the department. The study was mainly on finance, marketing

and human resource of the organization. The information is being collected

through various sources.



1.4 Sources of the data:

The data for the study was obtained through primary source and

secondary source.

Primary source:

The primary source of data was obtained by personally meeting the

employees of the Organization, and also data are collected through

discussions and interviews with concerned executives and observation

method.

Secondary source:

The secondary source of data includes the background papers prepared

by the department for conferences, Meetings etc.. Departmental notes, and

Reviews, Reports, the factory records, Books, Annual Reports, Information

sheet and Internet.

1.5 Limitations of the Study:

As every study has its own limitations this study is also have some of the

limitation to collect the information and present the things in the effective

manner.

The various limitation of the study are as follows:

The study is an academic effort; it has its own limitation of cost and

time constraint.

The opinions collected from the employees might not be hundred

percent correct or may be biased also

This project has been taken in busy schedule so whatever information

gain by them is treated as correct.



CHAPTER SCHEME

Chapter 1: This chapter deals with Introduction, Objectives, Scope of the

study, Methodology and Limitations.

Chapter 2: This chapter covers with Industry Profile .

Chapter 3: this chapter covers company profile and product profile

Chapter 4: This chapter covers Mckinsey 7’s model & functional area of all

the Departments.

Chapter 5: This chapter covers organization Strength, Weakness,

Opportunities and Threats.

Chapter 6: This is the final chapter it covers Findings, Suggestions and

Conclusion.

Annexure

Bibliography



CHAPTER 2

INDUSTRY PROFILE

2.1 Introduction

Polymers are a large class of materials consisting of many small

molecules (called monomers) that can be linked together to form long chains,

thus they are known as macromolecules A typical polymer may include tens

of thousands of monomers. Because of their large size, polymers are

classified as macromolecules.

In the late 1830s, Charles Goodyear succeeded in producing a useful

form of natural rubber through a process known as "vulcanization." Some 40

years later, Celluloid (a hard plastic formed from nitrocellulose) was

successfully commercialized. Despite these advances, progress in polymer

science was slow until the 1930s, when materials such as vinyl, neoprene,

polystyrene, and nylon were developed. The introduction of these

revolutionary materials began an explosion in polymer research that is still

going on today.

Unmatched in the diversity of their properties, polymers such as cotton,

wool, rubber, Teflon(tm), and all plastics are used in nearly every industry.

Natural and synthetic polymers can be produced with a wide range of

stiffness, strength, heat resistance, density, and even price. With continued

research into the science and applications of polymers, they are playing an

ever increasing role in society.



2.2 DISCRIPTION

Polypropylene is lightweight thermoplastic polymer that provides raw

material for manufacturing various textiles, containers, equipments, and

components and is used in various industrial applications also. In other words,

it is a kind of thermoplastic resin that is hard and tough and also can be

converted into fibers and moulded articles.

Polypropylene is made from the polymerization of pure propylene gas

at low temperature and pressure. This polymer is known for its unique

features such as anti rusting, good insulator, low density, highly crystalline,

high resistance to fatigue and a high melting point. It is also known as a

saturated polymer.

Polypropylene is a type of plastic polymer that is mainly used in

packaging and moulded articles. The polymer was discovered much after

polyethylene but even though; it gained much importance and rose up to the

level in context of popularity. Since it has been discovered, until now, it has

made its mark into the daily routine activities of the masses.

The major uses in which polypropylene is required are flexible

packaging, rigid packaging, automotive parts, consumer products, fiber

products and other industrial applications.

Polypropylene is produced by polymerizing propylene gas or propylene

monomers in the presence of a catalyst. In the year 2004, United States of

America is the largest producer of the polymer with a total production of

around 8.4 million metric tons. The major companies indulged in the

production include Exxon Mobil and Shell. Consumption of polypropylene is

dominated by Asian continent with a share of around 40% in the total



consumption figures of around 32.9 billion tons. Country wise, United States

of America stands at top in the list of major polypropylene consumer

countries. The following is the list relating to the major plastic consuming

countries of the world

United States of America

Germany

Japan

Singapore

Canada

Malaysia

Thailand

Indonesia

Vietnam

China

India

Pakistan

The world market is growing at an average of 3% per year. The world

trade in polypropylene has a same pattern as in the case of polyethylene. The

major exporters of this polymer lie in the Southern Asian and the Middle

Eastern area and South Korea is one of the dominant players in the world

market. The other exporters include USA and the countries in the western

European region.

In woven sacks industry production takes places from using HDPE

(hydro polyethylene) and PP(propylene)of plastic contents the cost incurred in

producing both the raw materials are more or less same but most of the



companies are producing pp raw materials for its production purpose because

its abundance availability in the market and number of suppliers are more.

In India woven sacks industries are providing employment

opportunities over 1 million people. However the industry is growing

tremendously due to quality packaging capabilities this industry

approximately contribute to GDP of the nation around 0.12%.

2.3 History

Polypropylene is a polymer of the modern world. It was discovered as

late as in 1954 by Professor Giulio Natta. Till this time polyethylene was

already discovered and the catalysts that were used in the polyethylene

industry were used by the professor to the propylene gas to produce

polypropylene. The commercial production of polypropylene initiated in the

year 1957 as it can also be produced at room temperature and low pressure.

For his work, Natta along with Karl Ziegler, the discoverer of the catalysts,

got the Nobel Prize in the year 1963. With its production, it was readily

accepted by various industries as it is economical and possesses exclusive

physical properties.

With time and the introduction of new technologies of production,

improvements were done relating to the types of catalysts used and

controlling the structure of the product. The world production of the polymer

crossed the 14 million tons mark.

Polypropylene is a versatile polymer as it can be used in a vast number

of applications and today the polymer has become non – substitutable.



2.4 COMPETITORS PROFILE

There are 536 Companies who are in the same industry in India,

some of the major

Companies listed below with their brief manufacturing details.

1) Ispa Exim Pvt. Ltd.

Manufacturers and exporters of HDPE sacks, polypropylene woven

sacks, polypropylene woven fabric, laminated fabrics, unlamented fabrics,

laminated fabrics, tea bags, food packaging paper bags, valve bags, t-shirt

bags, cement bags and printed bags.

2) PVN Plastics Industries

Engaged in manufacturing of HDPE and PP woven sacks, woven

polypropylene sacks, laminated woven fabrics, PP laminated gusseted bags,

boxed bags, shopping bags, lumber cloth, sand bags, BOPP printed sandwich

bags and wide with fabric.

3) Vivek And Company

Exports and manufactures woven sacks, woven sacks bags. Also deals

in jute twine, jute yarn, jute soil saver, jute mesh, jute geo textiles, geo jute,

jute sheets, sand bags, natural jute fiber sand bags, shopping bags and jute

shopping bags.

4) Welpack Industries Ltd.

Engaged in manufacturing and exporting of hdpe bags, hdpe t-shirt

bags, hdpe vest carrier bags, hdpe shopping bags, hdpe carry bags, hdpe pick

up bags, printed hdpe bags, plain hdpe bags, hdpe plastic bags and 20 micron

hdpe bags.



5) Lamifab Industries

Manufacturers and exporters of woven sacks, PE woven sacks, PP

woven sacks, un laminated woven sacks, laminated woven sacks, PP

laminated sacks, PP un laminated sacks, PE laminated woven sacks, PE un

laminated woven sacks.

2.5 Indian market scenario for polypropylene

India is not among the dominant producers of polypropylene in the

world but is an upcoming player. The polymer industry is growing at about

12-15% annually. The country is able to produce around 4,500 thousand

metric tons of plastic products annually. Of this, 60-70% accounts for the

production of polyethylene (PE) and polypropylene (PP). However, India

stands eighth in the world consumption of polypropylene and is poised to

become the third largest consumer after the US and China. India was a net

importer of plastic products some time ago but due to the high rate of

development in this sector in the country, India has transformed itself into a

net exporter

2.6 Largest producers of polypropylene in the world

United States of America is the largest producer of polypropylene.

Japan and South Korea are the other two major producers of polypropylene

lying in the Asian continent. Taiwan is an important Asian producer.

Germany, France and UK are also contributing to the total world production.



2.7 Indian polypropylene market

Since polypropylene has made an impact into every aspect of life and

work, India also is not far from being affected. The polymer has found its way

into various industrial applications and has become an integral part of the

economy as a whole. India has an installed polymer production capacity of

around 4500 thousand metric tons per year. Polyethylene and polypropylene

production accounts for around 70% of the total polymer production in India.

The major producers of polypropylene in India are Reliance, Haldia

Petrochemicals and Gas Authority of

India. Regarding the consumption of polymers in the country, India

stands at the 8th place with a mere 4 kg per capita consumption per year. The

Indian plastic polymer consumption in 2003-04 stood at around 4.2 million

tons. But, it is expected to take a jump from the eighth position to the third

position in the major consuming countries’ list in the upcoming years if the

rate of consumption continues.

The polymer industry in India is growing @ 12-15% annually. India

was a net importer of plastic products some time ago but due to the high rate

of development in this sector in the country, India has transformed into a net

exporter. The country registered an export surplus of Rs 462 core in plastic

products in the year 2003, though 1995-96, India was importing plastic

polymers worth a staggering Rs 1538 core. The prices of polypropylene in the

country are excessively fluctuating as they directly depend on the

international demand and supply conditions.



Market Influencing Factors

• Fluctuations in the crude oil and natural gas prices

• Economic growth of the major polypropylene consuming countries like

USA and China

• Domestic industrial growth and development

• Demand for consumption in the international market

• Government policies and regulation



CHAPTER 3

COMPANY PROFILE

Tulsyan NEC Ltd is one of India's leading manufacturers of Thermo

Mechanically Treated(TMT) Bars. The company is engaged in the

Manufacturing TMT bars, Synthetics Woven Fabrics and Sacks. They have

their manufacturing plant at Chennai (Ambatuur & Gummudipoondi) and

Bangalore (Dodabalapur). Their products include TMT Bars, sponge, Billets

and ingots in the steel division and in synthetic division it includes PP Woven

Sacks, FIBC and Woven Fabric. The company is an ISO 9001-2000 Certified

Company. The Company is the Flagship Company of the Tulsyan Group. The

company is into manufacturing of Thermo Mechanically Treated Bars. It is

the first Licensed Rolling Mill in South India to produce TMT Bars and

obtain ISI 1786 and ISO certification. Tulsyan Steel is registered with the

Bureau of Indian Standards and each TMT Bar is accompanied by a BIS Test

Certificate. Tulsyan NEC Ltd Was incorporated on April 11, 1947 as National

Engineering Company Ltd in Kapurthala, Punjab. In July 7, 1947, the

company received the certificate of commencement of business. The

Company was established to manufacture CTD bars, MS Rounds and other

finished steel Products. In the year 1965, the re- rolling facilities at Kolkata

was relocated to Chennai. In the Year 1986, the company was taken over by

Tulsyan Group. In the year 1994, the company Established additional facility

of 36000 MTPA to manufacture MS Ingots. In July 1994, the Company

entered the capital market with their maiden public issue and their equity

shares were listed on the BSE. In the year 1996, the company received an

award from the Government of Karnataka for export performance. In June

1996, Tulsyan Synthetics Ltd was amalgamated with the company. In August



1996, the name of the company was changed from National Engineering

Company Ltd to Tulsyan NEC Ltd. In the year 2004, the company installed

furnace having Billet Manufacturing capacity of 72000 MTPA at

Gummudipoondi. In the year 2005, they set up wind Mill at Devarkulam. In

the year 2007, the company installed Rolling Mill at Gummudipoondi Having

capacity of 150000 MTPA. In the year 2008, the company signed a Mau with

Power Trading Corporation and Suhaly Abdul Mohsin Al- Shouibi & Sons

holding Co Ltd. In August 2008, they entered into an MOU with Budhrani

Group of Companies for setting up a joint Venture company. In the year

2009, the company increased the Billet manufacturing capacity by 72000

MTPA at Gummudipoondi. During the year 2009-10, the company completed

the expansion by increasing the Rolling Mill capacity by 150000 MTPA at

Gummudipoondi. Also, they acquired Chitrakoot Steel & Power Pvt Ltd with

sponge iron manufacturing capacity of 36000 MT per annum. The company's

shares were permitted to trade on National Stock Exchange of India Ltd with

effect from November 05, 2009. The company is in the process of Setting up

setting up a captive power plant of 35 MW capacity in Gummudipoondi,

Tamil Nadu. The company is one of the reputed manufacturer's of Synthetic

Woven Sacks/Fabric and is regularly supplying bags to all the major cement

companies and many other reputed organizations in India and also exporting

the same on a regular basis. Manufacturing unit is having well equipped

chemical and physical laboratory to monitor the quality of the product.

Besides the sophisticated plant and machinery and the matching in-plant

working environment, organization is managed by a team of dedicated and

well experienced technocrats who believe in excellence of the product

Tulsyan NEC ltd is a leading supplier of Pp FIBC, Jumbo Bags, and Woven

Sacks. The Organization is proud to be esteemed supplier of many customers



around the world with the primary goal to meet their clients requirement and

establish mutually pleasant business relationships with them. The sacks are

used to pack cement, food grains, sugar, seeds, branded products, pulses,

chemicals, resins etc. offer circular or flat fabric to be converted to sacks or

bags at customer's end or to use as over wrap for textile packing, upholstery,

for carpet backing, baling and tarpaulins. The sacks, bags, fabrics can be

supplied in any color, with printing of logo or packed products specifications.

The Synthetics/Plastic division has recorded steady growth over the years.

The Company entered the export market during 1993-94 with an export

turnover of Rs.2.41 lakhs during the first year, exports has steadily grown

since then. The Company got an export award from the Government of

Karnataka for its export performance for the year 1995-96. In course of time

the company has extended its product range to include manufacture of

Flexible Intermediate Bulk Containers (FIBC) and Wide Width Woven Fabric

(WWWF)

3.1 VISION STATEMENT

To be a global leader in Synthetic fabrics and delight the customer by

creating products that offer unmatched superiority.

3.2 MISSION STATEMENT

Our mission is to become a benchmark organization in packaging

industry. For this we are constantly striving to develop our organization,

enhance professional skills and upgrade infrastructure system so as to be

highly successful in the competitive environment of the new millennium.



3.3 Objectives of the Company

The objectives of the company

To Maximize the profit of the company

To reduce the Wastage

To increase 70%-80% Employment opportunity

Employee Welfare

Creating social Responsibility

To maintain Hygienic factors

Learning and Development

3.4 Customers Profile

3.4.1 Table: 1

STEEL DIVISION PLASTIC DIVISION

DLF Groups of Companies Dalmia Cement (Bharat) Ltd

TVS Group of Companies Grasim Industries Limited

HCL technology Ltd. Grasim Industries Limited

Gammon India Ltd. Ultratech Cements Companies LTD

Cognizant Tecnologies Associated Cements Companies

Ltd

Larsen & Tourbo Ltd. Industrial Mineral Company

Prestige Group of Companies Mangalore Chemicals & Fert Ltd

Central/State Class 1 contractors Fritz Marketing Inc..,- USA



3.5 Suppliers profile

3.5.1 Table: 1

Local International

Vinmar International Ltd- USA Reliance Industries Ltd – Mumbai

Basell Asia Pacific Ltd- Usa Blend Colors Pvt Ltd

Trion Energy Ltd – Usa Ltd Konkan Specialty Poll Product Pvt

Oman Polypropylene L.L.C. – Oman Plasmix Limited

Borouge Pvt Ltd – Abu Dhabi – UAE S.C.J. Colourants

Saudi Basic Industries Corporation

3.6 PRODUCT PROFILE

» Cement Bag

» Fertilizer Bag

» HDPE Sacks

» HDPE Woven Sacks

» HDPE and PP Woven Sacks

» Jumbo Bags

» Packaging Sacks

» Polypropylene Woven Sack

» Sandbags

» Woven Bags

» Woven Sacks

» Woven Sacks Bags



3.7 Polypropylene Products

The company engaged in manufacturing, exporting and supplying

polythene and bags. These are manufactured using fine quality raw material

obtained from trusted and reputed vendors across the nation. All the products

we manufacture are in accordance with industrial standards and strictly follow

the defined parameters. We offer:

Jumbo Bags

They put forward high quality Jumbo Bags. Manufactured using high

quality raw material that is procured from trusted and reputed vendors across

the nation these possess features like wear & tear resistance, strength and long

life. These are in extensive demand in the market and are widely appreciated

by the clients due to its flexible intermediate bulk containers that are custom

tailored so as to suit the individual requirements. Used for carrying bulk cargo

in single package option, these are widely acknowledged by the varied

industries. Clients can avail these within stipulated time frame and at market

leading prices.

Coated Or Uncoated Bags

They bring forward high quality Coated or Uncoated Bags that are

manufactured using high quality raw material that is procured from trusted

and reputed vendors of the market. These possess features like wear &tear

resistance, strength and long life. Also, these are in extensive demand in the

market and are widely appreciated by the clients. Acknowledged as per the

industrial standards, they offer these at cost-efficient prices. Clients can avail

these within stipulated time frame and we can also customize these as per

their needs and requirements.



PP/HDPE Woven Sacks

They are engaged in offering PP/HDPE Woven Sacks. Manufactured

using high quality raw material that is procured from trusted and reputed

vendors across the nation these acquire features like wear & tear resistance,

strength and long life. We offer these sacks in tri-color printing, laminating

and finishing. These are in extensive demand in the market due to the both

inside and outside lamination of the sack. They offer these at cost-efficient

prices and clients can avail these within stipulated time frame.

Polypropylene Asbestos Bags

They are engaged in offering Polypropylene Asbestos Bags that are


and reputed vendors across the nation these possess features like wear & tear

resistance, strength and long life. There products are in high demand among

the clients due to their various designs and excellent printings. Having

expertise in manufacturing clear bags with great printability, they offer these

at cost-efficient prices. Clients can avail these within stipulated time frame.

Polypropylene Container Liners

They bring forward high quality Polypropylene Container Liners.

These are made using high grade material such as polyethylene or

polypropylene. These dry bulk container liners are also known as shipping,

sea bulk or sea land container liners and are stitched using coated or non-

coated fabric. Known for economical value than the conventional blown film

liners, these are supplied in bulk to cater to the requirements of our clients

spread across the globe and within the stipulated time frame.



Polyethylene Liners

They are engaged in offering Polypropylene Liners that are


and reputed vendors based across the nation these possess features like wear

& tear resistance, strength and long life. These are manufactured at a

completely automatic unit packing system together with palletizing facility,

which is available at the plant. These are in extensive demand in the market

and we offer these at cost-efficient prices. Clients can avail these within

stipulated time frame.

TULSYAN Company is producing wide variety of products to fulfill

the requirements of the different customers. FIBCs are more recent

innovation on the international scene. The rising cost of manual handling in

developed countries has forced them to adopt more of automated techniques

for bulk product handling.

In the case of bulk commodities with large volume handling

requirements, tank cars for road or rail transport, bulk carriers for marine

transport and silos and conveying systems for storage are well established.

Economics of scale play an important part in cost control. However at points

of distribution of such commodities or where the commodity volumes are not

so large and intermediate bulk handling system is required. This requires the

availability of a safe, convenient and cost effective container for storage and

handling. The FIBC has proved to be the most effective container to meet

these needs.



FIBCs have been standardized in size ranges from 200 kg to 4 tones

depending on bulk density and modes of transport and handling. Loss

protection and safety aspects have a major bearing on the FIBC design as do

the lifting, transport, loading and unloading methods. Further the commodity

properties have a bearing on the container stability which also needs to be

taken care of by proper design. The FIBC has, therefore, a much higher level

of design engineering input when compared to the conventional small woven

sack, even though both use similar types of fabric.Besides stronger and more

reliable fabric quality the FIBC calls for properly designed lifting straps, a

body configuration with reinforcements to ensure stability during storage and

handling and suitable inlets and outlets for ease of loading or unloading and

for protection against spillage or leakage.

3.7 Infrastructure

We have huge infrastructure that enables the team to work easily and in

collaboration with each other. The infrastructure is loaded with state-of-the-

art machinery and the team can easily incorporate new techniques to enhance

their efficiency. The base is divided into various segments like the

manufacturing unit, quality department, design department, warehouse unit,

etc. The new installed machines at the infrastructure help in enhancing the

production rate thereby enhancing client’s satisfaction.

3.8 Domestic Manufacturers

GAIL.

GE Plastics India.

Haldia Petrochemicals.

IPCL.



Karnataka Petrosynthese Limited.

NOCIL.

Reliance.

Supreme Industries

3.9 International Manufacturers

Exxon Mobil.

Honam Petrochemicals.

Hyundai Petrochemicals.

Samsung.

Shell.

Dow Chemicals.

3.10 Tulsyan Group of Companies

Established in 1938

Activities

Iron and Steel Trading

Manufacturer of Tin Containers

Manufacturer of Cardboard Boxes

Manufacturers and Exporters of Leather Products

Manufacturer of Knitted Textile Gloves

Cold Storage Activities

Rice Processing Division

Tulsyan NEC Limited

Iron and Steel



Windmill

Technologies

Synthetic

Turnover

$ 180 Million

Tulsyan NEC Limited

Flagship Company of the Group

Turnover $ 60.00 Million

Tulsyan NEC LTD

Divisions

Iron and Steel

Windmill

Technologies

Synthetic

Iron and Steel Division

Activities

Manufacturing- CTD/TMT/CRS Steel Bars

Trading

Turnover

$36.00 million



Windmill Division

Eight in Number- Power Generated is for self consumption for the Iron and Steel Division

Capacity 1800 KWA

Technologies

Activities

Web Designing/Hosting

Medical Transcription at Chennai

30 Foreign Language Translation

3.11 Directors & Key Management Personnel: Board of Directors Lalitkumar Tulsyan

Executive Chairman Sanjay Tulsyan

Managing Director

S. Soundararajan

P.T. Rangamani

A.P. Venkateswaran

S. Ramakrishnan

Sanjay Agarwalla

V. Kirubanandan

C. Ramachandran

V. Subramani (Company Secretary)



Registered Office 61, Sembudoss Street,

Chennai - 600 001.

Corporate Office Apex Plaza, I Floor, New No. 77, (Old No. 3), Nungambakkam High Road, Chennai - 600 034. Tel.: 044-3918 1060, Fax: 044-3918 1097 E-mail: [email protected] Web site: www.tulsyannec.co.in Administrative Office 37, Kaveriappa Layout, Miller Tank Bund Road, Vasanth Nagar, Bangalore - 560 052. Bankers

Canara Bank

Syndicate Bank

Andhra Bank

State Bank of India

IDBI Bank

Indian Overseas Bank

Shamrao Vithal Co-operative Bank

Auditors C.A. Patel & Patel, Chennai. Share Transfer Agents Cameo Corporate Services Ltd. Subramanian Building, 1 Club House Road, Chennai - 600 002.



CHIEF EXECUTIVES Shri Ram Babu - General Manager (Rolling Division)

Shri Dinesh Goyal - General Manager (Ingot division)

Mrs. Uma - DGM (F&A)

Shri K.Anantheeswaran - Billet division)

Shri A.P.Harish - President (Operation)

Shri K.Chakraborthy - General Manager (Works)

Shri Sandip Lahurawalla – General Manger Exports

Shri J.M.Manohar - Manager Exports

Shri Murari Lal Sharma - General Manager Raw materials Shri.V.Padmanaban – General Manager Marketing 3.12 AWARDS AND ACHIVEMENTS Export House

State Award For Excellence In Exports From Government Of

Karnataka For The Period 1995 – 1996

State Award For Excellence In Exports From Government Of

Karnataka For The Period 1996 - 2000

AIFTMA Export Award 1997 – 1998

All India Flat tape Manufacturers Association From National

Association Of Plastics Woven Sacks Manufacturer For Excellence In

Exports For Medium /Large Scale Sector For The Year 1997 - 1998

AIFTMA Export Award 1998 – 1999 -II

Export Promotion Awards 2000 – 2001

Large /Medium Scale – II



ISO Certified In 2002

Rated by Business Barons As One Among The 1st 500 Most

Outstanding Companies In The Country For The Financial year 2002



CHAPTER 4

McKINSEY 7’S FRAME WORK

4.1 Introduction

In 1980s the MCKINSEY’S 7S Framework model comes into

existence this is a management model developed by well-known business

consultants Robert. H. Waterman and Tom Peters.

How do you go about analyzing how well your organization is

positioned to achieve its intended objective? This is a question that has been

asked for many years, and there are many different answers.

Some approaches look at internal factors, others look at external ones,

some combine these perspectives, and others look for congruence between

various aspects of the organization being studied. Ultimately, the issue comes

down to which factors to study.

While some models of organizational effectiveness go in and out of

fashion, one that has persisted is the McKinsey 7S framework. Developed in

the early 1980s by Tom Peters and Robert Waterman, two consultants

working at the McKinsey & Company consulting firm, the basic premise of

the model is that there are seven internal aspects of an organization that need

to be aligned if it is to be successful.

The 7S model can be used in a wide variety of situations where an

alignment perspective is useful, for example to help you:

Improve the performance of a company.

Examine the likely effects of future changes within a company.



Align departments and processes during a merger or acquisition.

Determine how best to implement a proposed strategy.

This model there is seven basic dimension which represent the core of

managerial activities. These are the ‘levers’, which the executive use. The

originators of the model have coned the managerial variables with words

beginning with the letters so as to increase the communication power of the

model. The 7-s diagram illustrates the multiplicity interconnectedness of

elements that defines an organization ability to change. The theory helped to

change managers thinking about how companies could be improved. It’s says

that it is a matter if devising a new strategy and following neither it through

nor it is a matter of setting up new system and letting them generates

improvements.

Their organization must have a high degree of it, internal alignment

amongst all the seven’s. All S’s are interring related and a change in one has a

ripple effect on all the others. It improves their organization you have to pay

attention to all of the seven elements at the same time. There is no starting

point or implied hierarchy. Different factors may drive the business in any

one organization.

McKinsey Company, a very well known management consultancy

firm, developed the 7-S framework. It aimed to diagnose the cause of

company firm problem and to formulate program for improvement.

It’s all very well devising a strategy, but you have to be able to

implement it. If it’s to do any good, the seven ‘S’ framework first appeared in

“The art of Japanese Management” by Richard Pascal and Anthony Athos in

1981. They had been looking at how Japanese industry had been so



successful, at around the same time that Tom Peters and Robert Wateman

were exploring what made a company excellent.

The seven S model was born at a meeting of the four authors in 1978. It

went on to appear in “In search of Excellence” by Peters and Waterman, and

was taken up as a basic tool by the global management consultancy

McKinsey. Managers, they said, need to take account of all seven of the

factors to be sure of successful implementation of a strategy large or small.

They are all interdependent, so if you fail to pay proper attention to one of

them, it can factor will vary over time and you can’t always tell how. That’s

changing like a lot of these models, there’s good dose of common sense in

here but the 7S framework is useful way of checking that you have covered

all the bases.

4.2 The 7S McKinsey Model

The model is based on the theory that, for an organization to perform

well, these seven elements need to be aligned and mutually reinforcing. So,

the model can be used to help identify what needs to be realigned to improve

performance, or to maintain alignment (and performance) during other types



of change. Whatever the type of change – restructuring, new processes,

organizational merger, new systems, change of leadership, and so on – the

model can be used to understand how the organizational elements are

interrelated, and so ensure that the wider impact of changes made in one area

is taken into consideration.

We can use the 7S model to help analyze the current situation (Point

A), a proposed future situation (Point B) and to identify gaps and

inconsistencies between them. It's then a question of adjusting and tuning the

elements of the 7S model to ensure that your organization works effectively

and well once you reach the desired endpoint.

4.3 Structure:

Organization structure refers to the relativity more durable

organizational arrangements and relationships. Its prescribes the formal

relationship among various position and activities. Arrangements about

relating relationship, how an organizational members is communicate with

the others, what role he is to perform and what rules and procedures exists

to guide the various activities performed by members of all part of the

organization.

The general admission of the company is carried out by the

departments and these are downwards communication in the company. The

information flows from the top level of management to the lower levels.

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

management of an organization. Organizational arrangement and

relationship among various position and activities.



Managing Director

Management Representative

Chief Executive Officer

General Manager

HOD

Su pervisor

Workers

HOD (Purchase & Spare)

Superviser

Workes

HOD (Purchase of Material)

Purchase Officer

Superviser

Worker

General Manager

Assistant

HOD

Human Resource

Assistant

Commercical Maneger

Assistant

HOD

Accountant

Assistant

Organizational chart

4.3 Chart: 1

DEPARTMENTS OF ORGANISATION

Production department

Purchase department

Quality department

Finance department

Marketing department

Human resources management



4.4 SYSTEM

System refers Formal and informal procedures that govern everyday

activity, covering everything from management information systems, through

to the systems at the point of contact with the customer (retail systems, call

centre systems, online systems, etc). System is northing but the daily

activities and procedures that staff members engage in to get the job done.

PRODUCTION DEPARTMENT

Production is the conversion of raw materials into the end product by using

processes, machines, men, tools, and so on. It is the process by which goods

and services are created. As we study the overall organization we come know

that the company is following the Pull System process of production.

PULL SYSTEM

It is a system of production in which products are produced only as they are

ordered by customers or to replace those taken for use. Or a JIT system.

5 P’S OF PRODUCTION MANAGEMENT

Production management is related with five p’s namely the product, plant,

process, programs, and people.

1. Product:- In the TULSYAN NEC LTD product means woven sacks

manufactured by using polypropylene and hydro poly ethylene and

these are plastic raw materials.

2. Plant: The plant is broad concept which is used produce the product.

The machineries used to manufacture the given product are called the

plant.



Manufacturing facilities

The company posses world-class manufacturing facilities for

production of high quality Polypropylene (PP) woven fabrics, woven sacks /

bags. The machine at the companies facility incorporate latest technology that

provide great flexibility and cost saving in manufacturing process. The

company’s manufacturing facilities include the following :

Extruder

Cutting and stitching machine

Lamination plant

Woven bags sewing machine

Circular weaving machine

Hydraulic bailing press for HDPE/PP bags

Extruder:- The company has two advanced range of extruder machines,

which are based on latest European design technology to produce different

kinds of yarns in colours. Both the extruders are based on of Kolsite make

produces finest quality of yarn along with environment friendly operations.

Extruders (PP / HDPE Stretching Lines)

Features:

Very Fine Quality of Yarns.

High Flexibility to produce different

kind of coloured yarns.

European design technology.

Make: GCL&WINDSOR

Capacity:1000 KG/HOUR

Number of machines:3units



Cutting and Stitching machine:

The company use latest model of cutting and stitching machines made

by GCL. The new age machine cuts, bottom folds and stitches the bags or

sacks. The complete processing is done just from the tubular fabric roll. These

machines can carry operations like counting, staking and conveying.

Make: GCL

Type: cutting and stitching machine

Capacity: 3000bags/hrs

Lamination Plant

“Touch Screen Type” Operation Panel & Synchronized System as

Standard Equipment

Line Speed: Max 120 meter/min

Equipped Auto Roll Changing System

Woven Bag Sewing Machine

The company has installed high speed, double needle woven sewing

machines specially designed by Arm Strong. The double needles of the

machine provides a long lasting stitch. These machine can efficiently stitch

heavy weight material such as HDPE, PP, Multiwall Papers and other type of

woven sacks. The bobbling stitching system of the sewing machine is

designed to enhance the overall production efficiency. Can also use any type

of cotton and synthetic yarns.



Features :

Electrically operated

Easily convertible in single needle machine

Easy adjustment of distance between the needles

Fully automatic lubrication with oil recycling

Number of machines : 20

Circular Weaving Machine

The new generation circular weaving machine with six shuttle is designed to

weave fabric suitable for a variety of applications like plastic

granules/fertilizer/chemicals and smaller covering fabric/tarpaulin etc.

Additionally, these machines have an option to produce Anti-slip fabric on

special request.

Features :

Type : Circular weaving machine

6-shuttle: 80 looms

Capacity : 200000 meter/day

Hydraulic Bailing Press For HDPE/PP Bags

This is hydraulic bailing press which is used for pressing PP/HDPE

bags to minimize the volume for convenient packaging & transporting. These

machines are designed for free shift operation and can produce different

pressure as per the requirement.



Features :

Compact hydraulic block

Overload protection valves

Push button operation

Preset bale height table auto stop

Pressure regulator and gauge

Emergency brak

3. Process: - There are various processes involved in the Production activity.

Extrusion

Weaving

Quality analysis

Fabric printing

Cutting

Stitching

Bailing

4. Programs: - The programs include the activity concern with the

company’s achievement to the strategic goals of the company the

retaining the talented employees the organization.

Since company has started so many years ago it has expanded its business

in overall India and its supplying of goods and services according to the

requirements of the customers .

5. People: - People refers to the workers or employees working in the

Organization. This company is providing the employment mostly to the

persons who are having the technical background such as Engineers,



Diploma holder, ITI holders etc and occasionally it provides employment

opportunity to the non technical persons. It has efficient HUMAN

RESOURCE DEPARTMENT to maintain and nurture the human

relationship with in the organization.

Product portfolio:-

A customer focused, innovative and solution-driven company, it holds

expertise in successfully manufacturing and supplying high quality packaging

products. The company is committed to provide their clients a one stop

packaging solution. The company uses only high grade raw materials such as

HDPE/PP granules, LDPE/LLDPE granules, master batches and printing ink,

for products which are procured from reliable and trusted vendors. The

products are used for the packing of different products such as cement, sand,

polymer resins and agro products.

The company offers the following:

PP/HDPE Woven Sacks

FIBC bags

Polypropylene Asbestos Bags

Polypropylene Container Liners

Polyethylene Liners

Coated or Uncoated Bags

Jumbo Bags



Manufacturing Process

PP Woven sacks bags:- The company offers PP woven sacks that are

available in a host of fascinating colors, designs and sizes. These allow

sufficient passage of air to the packed items and can also be laminated for

moisture proof packing of different items. These products ensure the

phenomenon of ‘breathing’ space in packed grains.

Salient features of PP woven bags:-

Light weight and easy & cheap to transport

Bright 2 / 3 / 4 color printing offer aggressive marketing prospects

No problems in stacking. Can be gusseted to further improve stacking

High Tensile strength and durability

Cost effective in comparison to other alternative packing material

No Seepages specially in poly lined or laminated bags

Technical specifications for different areas it is used

For Fertilizers:

Size – Length 915 mm, Width 610 mm

Open mouth

Bottom stitched duly laminated with PP/LDPE inside

Colour Milky White or others

Printed with flexo printing as per IS - 9755 – 1985 for packing 50.0 kgs



For Cements:

Size – Length 710 mm, Width 480mm with self closing valve, Weight 70-

75 gms per bag

Printed with flexo printing for packing 50.0 kgs as per IS - 11652 –1986

For Sugar:


Open Mouth Or Top Hemmed

Bottom Stitched with inside separate loose liner bag of 25 micron

thickness stitched at bottom and printed with flexo printing for packing 50

kgs Sugar



Bottom Stitched with inside separate loose Liner bag of 25 micron

thickness stitched at bottom and printed with flexo printing for packing 25

kgs Sugar.

For Food Grains:




thickness stitched at bottom OR without liner and printed with flexo

printing for packing 50 kgs food grains.






thickness stitched at bottom OR without Liner and printed with flexo

printing for packing 25 kgs food grains.

For Fabrics

PP / HDPE woven circular fabrics are available in rolls of different colors

/ shades, width and other specifications as per the clients’ requirements.

They are put to direct uses or for conversion to Bags and Sacks at

customers' end.

4.10 Following is the manufacturing process of PP woven sacks bags

The process of manufacturing PP woven bags involves mixing raw

materials starting with PP or HDPE pellets and other additives, extruding the

raw materials into a yarn, weaving the yarn into a fabric in a process similar

to the weaving of textiles, laminating the fabric, cutting the fabric into

appropriate sizes for the bags, sewing the bags, printing onto the bags and

finally packaging the bags.

a) Tape Extrusion:

The raw material consisting of Raffia grade polypropylene and suitable

master batch is fed through a plastic extruder fitted with a `T’ die. The

extruded sheet is cooled and slit into small width continuous tapes, which

pass over a hot air oven during which the orientation of tapes take place.

These tapes are stretched and annealed, to achieve the required denier rating.



b) Fabric Weaving:

These tapes are wound on cheese winders which are used on circular

weaving looms to produce continuous Circular fabric of the required lay flat

width. The fabric produced is wound into rolls.

THE CIRCULAR WEAVING MACHINE

a) Sacks Production:

The Woven fabric in roll form is unwounded and cut into required

length units. One end of fabric unit is folded at one of its corners such that

after stitching a spout opening is formed. The other side of the fabric unit is

fully stitched to get a woven sack. These sacks are tested for strength and

dimensional requirements as per the buyer’s specification. The approved

sacks are printed as per buyer’s requirement. Then the sacks are piled,

compressed in a baling press, baled and dispatched.

b) Waste Recycling:

The waste generated during the entire production process is converted

into reusable chips using an agglomerated.

Manufacturing process of Flexible Intermediate Bulk Container (FIBC)

A Flexible Intermediate Bulk Container, FIBC , big bag, bulk bag,

or Super Sack is a standardized container in large dimensions for storing

and transporting dry, flowable products, for example sand, fertilizers , and

granules of plastics. FIBCs are most often made of thick woven polyethylene

or polypropylene, either coated or uncoated, and normally measure around

110 cm or 45-48 inches in diameter and varies in height from 100 cm up to

200 cm or 35 to 80 inches. Its capacity is normally around 1000 kg or



2000 lbs, but the larger units can store even more. The average bulk bag made

to ship one metric ton can weigh between 5-7 lbs. Transporting and loading is

done on either pallets or by lifting it from the loops. Bags are made with

either one, two or four lifting loops. The single loop bag is suitable for one

man operation as there is no need for a second man to put the loops on the

loader hook. Emptying is made easy by a special opening in the bottom such

as a discharge spout, of which there are several options, or by simply cutting

it open.

History

Although there is disagreement on exactly where FIBCs were first

made and used, it is certain that they have been employed for a variety of

packaging purposes since the 1940s. These forerunners of the FIBC as we

know it today were manufactured from PVC rubber and generally utilized

within the rubber industry for the transportation of carbon black to be used as

a reinforcing agent in a variety of rubber products. One of the first known

importers of the PVC containers into the United States is Robert Williamson,

founder and CEO of B.A.G. Corp., in 1969. These first PVC bags were

imported from Japan as an efficient way to solve the loading and handling

problem faced by crop dusters. By the 1960s, with the development of

polypropylene combined with advances in weaving, the bulk bags as we

know them today came into being and were rapidly adopted by a wide variety

of oil and chemical companies to store and transport powdered and granular

products. It was during the oil crisis of the mid 1970s that the FIBC really

came into its own for transporting huge quantities of cement to the Middle

East from across Europe for the rapid expansion of the oil producing



countries. At its zenith, upwards of 50,000 metric tons of cement was being

shipped out on a weekly basis to feed the vast building programme. The

Flexible Intermediate Bulk Container Association (FIBCA) was formed in

1983 by the companies that were manufacturing bulk bags at that time. The

modern FIBC transports a growing figure of over ¼ billion tonnes of product

each year and is used to handle, store and move products as varied as cereals

to powdered chemicals and flour to animal feeds. With a capacity of up to

3m³ and load capability ranging from ½ a tonne to two tones FIBCs are

highly cost effective, easily recyclable and ideal for virtually any free-flowing

granule, powder, pellet or flake. FIBCs are also being developed to hold and

filter fluid products.

Process

a) Tape Extrusion: The tapes are produced by extrusion of

polypropylene with master batch using a `T’ die. Orientation,

stretching and annealing of the tapes are done to obtain the required

denier rating. As the tapes are wider and thicker, in order to facilitate

weaving, the tapes are folded into three layers use a tape folding

equipment or slit into fine fibers using a fibrillate to obtain compact

fibrillated tape, which are wound on cheese winders.

b) Fabric weaving:

Using an eight shuttle circular loom, the folded or fibrillated tapes are

woven into a circular woven fabric of required lay flat width, which are

wound into rolls.



c) FIBC production:

The circular woven fabric is cut into required length. The top and

bottom covers are also woven fabric which is slit opened to give open width

fabric. The inlet and outlet spouts are small tubular woven fabric. The

handles are made out of knitted polypropylene fibers.

All these elements are cut into the required size as per the design of

FIBC and are stitched together, to obtain the circular woven fabric it is cut

into required length. The top and bottom covers are also woven fabric which

is slit opened to give open width fabric. The inlet and outlet spouts are small

tubular woven fabric. The handles are made out of knitted polypropylene

fibers. All these elements are cut into the required size as per the design of

FIBC and are stitched together, to obtain the FIBC of required capacity and

Safety factor. An inner layer of HDPE blown film is also employed to avoid

seepage. The single use FIBCs employ less denier tapes than the multi-use

FIBCs of corresponding capacity.

d) FIBC Testing:

The following tests are conducted on FIBCs

i) Ultra-violet stability test of polypropylene fabric.

ii) Tensile testing of FIBC fabric and handles.

iii) Test for resistance to impact collusion

The test parameters are based upon the design and utility conditions of FIBCs.

4.14 Printing & Packing: The quality approved FIBCs are printed as per

customer’s requirement and baled using a baling press.



Classification of FIBC

Construction

Lifting options

Electrostatic properties

Industries served

Flood barriers use

Construction:-

U-Panel construction

Circular/Tubular construction

Baffle construction

Four side panel construction

Round construction

Lifting options:-

Cross corner lifting loops

Corner lifting loops

Four loops

Two loops

Sling loops

Full loops

Electrostatic properties:-

Type - A - no special electrostatic safety features

Type - B - Made from plain (non-antistatic) polypropylene. Type B

bags are not capable of generating propagating brush discharges. The

wall of this FIBC exhibits a breakdown voltage of 4 kilovolts or less.



Type - C - Conductive FIBC. Constructed from electrically conductive

fabric, designed to control electrostatic charges by grounding. A

standard fabric used contains conductive threads or tape.

Type - D - Anti-static FIBCs, essentially refers to those bags which

have anti-static or static dissipative properties without the requirement

of grounding

Industries served:-

Chemicals

Fertilizers

Fiberglass

Food Products

Grains

Mining (Used to hold shotcrete)

Pharmaceuticals

Pigments

Plastics

Refractories

Rubber Additives

Seed

Advantages of HDPE / PP Woven Sacks and Bags

Moisture Proof : HDPE / PP Bags are inherently moisture repellent.

Light Weight : HDPE / PP Bags being light weight, offers easy and cheap

transportation.

Printing : Bright 2 / 3 Color printing offers aggressive marketing prospects.

Stack ability : No problems in stacking. Can be gusseted to further improve



stacking.

Strength : High Tensile strength and long life. No corrosion.

Economical : Highly economical compared to other alternative packing

material.

Seepage : No Seepages specially in paper lined bags.

PROCESS FLOW CHART FOR WOVEN SACKS/FIBC

Raw Material PP/HDPE + Master Batch

Extrusion

Sheet Die

Cooling Water Bath

Sitting Unit

Hot Air Woven



Stretching Unit

Annealing Unit

Tape Folding Unit

Cheese Winders

Quality Control Testing

Weaving on Looms

Fabric Rolls

Fabric Cutting Fabric Stitching



Fabric Stitching Fabric Lamination

Quality Control Testing Fabric Welding

Printing Quality Control

Bailing Bailing

Dispatch Dispatch

FIBC’S & SMALL SACKS WIDE WIDTH FABRIC

4.4 Chart: 1

PURCHASE DEPARTMENT

The most important aspect in any organization is flow of materials from

outside the organization to fulfill the requirements of the each department.

This activity is taken care by the PURCHASE DEPARTMENT.

Purchase department plays an important in the organization

effectiveness and its productivity. Purchase department has to make timely

order of the raw material for the uninterrupted production process, and the



spare parts for the machines which helps in orderly replacement of spares

with the production moving.

Objectives of the purchase department:

A. To procure quality raw material at the least cost.

B. To maintain sufficient stock at go downs.

C. To preserve the stock at maximum care.

D. To maintain safety stock level.

E. Estimate the future fluctuation in prices of raw material arrangement of

finance to fulfill the maximum stock level.

The department is responsible for the following:

Domestic purchase

Imports

Trading of Raw Material

Dispatches to factories

Storage at godown

Excise obligation



Hierarchy of purchase department

4.4 Chart:2

IN TULSYAN NEC LTD the purchase department may be split into two

divisions:

Department of purchase of spare parts

Department of purchase of raw material

Purchase of spare parts department:

Purchase of the spare parts is maintained by the Bangalore branch

itself. Here requirement of all the machines spares and parts are looked by

this department. Each production department head will place orders that they

require, Sometimes the department will assess the required spares and parts

and place order in time or refill of the spare parts stock. Head of purchase

department, based on the past records will identify the requirement. The stock

of spares and parts are maintained in the average stock level.

Purchase Officer

Store Officer

Helpers

Helpers

Store assistant

Helpers



The process of purchase of spares and parts are as follows:

They will send an indent to the supplier of the spare parts including

specification of the spare parts. Supply will be received approximately after

certain days.

LOCAL - 8 TO 10 DAYS

OUTSIDE - 15 TO 20 DAYS

Process of Purchase of spare parts

Good receipt cum inspection note (GRIN)

Quality & quantity (Store check)

Quality department checker (jobbers)

Department head (GRIN sign)

Accounts department (payment)

4.4 chart: 3



This process chart give us a clear picture how ordered spare parts will

be received in the organization.

PROCESS OF PURCHASING OF RAW MATERIAL

4.4 Chart: 4

Responsibilities & Authorities:

Responsibility & Authorities of GM are covered in quality manual.

Manager (RM)

Responsibilities

Maintain inventory status.

Maintain subcontractor purchase and payment statement.

Verification of Excise Documents

Import material follow ups

Co-coordinating with factories for their requirements and their

ensuring.

General manager(Raw

material)

Executive

(Raw material)

Executive

(Imports)

Go-down incharge

Manager(Raw material)



Timely deliveries.

Authorities:

Authorizing excise documents.

Releasing indents purchase order with approval of the GM.

Dispatch order for sales

Responsibilities Executive (Imports)

Preparation of import clearance documents.

Execute all import materials clearance formalities.

Bonding/De-bonding or import materials.

Clearance and transshipment of stores from the port of entry.

Responsibilities of go down in-charge

Receipt of stores.

Proper storage & handling of materials.

Preservation and safety of material.

Issue of raw material as per the instructions from(RM).

Ensure proper loading.

Major suppliers of the raw material

Reliance industries ltd

Indian petrochemical corporation ltd

Gas authority of India ltd

Haldia petrochemical ltd



QUALITY DEPARTMENT

QUALITY CONTROL DEPARTMENT

The company believe that quality is essential to the success of any

business therefore company has adopted good quality practices and try to

instill these practices into the organization's culture and our product

range. With the strict quality measures, the company has mastered the art of

producing flawless products and are constantly incorporating innovations.

Aspiring for the total customer satisfaction, company lay stress on efficiency,

quality and commitment. The main objective is to manufacture and supply the

best quality product to the world with latest and advanced technology.

Company has commit to provide material quickly, flexibly and with service

tailored directly to the needs.

The products are checked on the following quality parameters:

Finish

Durability

Resistance to water

Strength

Quality is desired attributes and characteristics in material, semi

finished products and finished item it is a relative term and can be expressed

based on end usage. In simple words quality is doing the right things at first

time and every time.

Quality is:

Degree of performance

Degree of preference.



Degree of excellence

Promises made to the customers

Quality of design

There are 8 dimensions of quality:

i. Performance

ii. Features

iii. Reliability

iv. Conformance

v. Durability

vi. Serviceability

vii. Aesthetics

viii. Perceived quality

In TULSYAN NEC LTD each department head or supervisor

especially in extrusion and weaving section, checks the tape quality, fabric

strength which is needed to meet the demands and requirements of the

customers. They use a special machine to check the strength of the fabric after

the weaving of sample, then if any defects are found it will be informed to the

departmental head or the concerned person in charge. Currently the company

is looking towards covering their quality under various international market

standards namely Srilanka, UK and middle east countries .The company is

also getting the rebars certificate from CRM Beligum. The company has a

Microsoft ERP solution which will further add quality system.



4.5 STAFF

Staff means the employees and their general capabilities. The

company's people resources and how they are developed, trained, and

motivated. Staff means that the company has hired able people trained them

well and assigned them to the right job. Selection training reward recognition

motivation and assignment to appropriate work are all the key issues.

Staffing is the process of acquiring the manpower for the company and

insuring that they have potential to contribute to the achievements of

company’s goal. It is selecting people for specific company position and

developing in these and subsequent abilities and skills that they would need to

be effective in these and subsequent assignment.

The staffing function applies to the whole company good performing

companies paid attentions to the development of managers. On the Indian

since there are some example of firm which are relatively more concerned

about the processes of management development.



HUMAN RESOURCES MANAGEMENT

HIERARCHY OF HUMAN RESOURCE DEPARTMENT

4.5 Chart:1

Introduction:

Human resource is very important for the success of any organization.

Human resource management is the wealth of an organization, which can help

in achieving its goals. Human resource management is concerned with the

human being in an organization. It reflects a new out look, which views

organization manpower as its resource and assets.

Meaning of Human resource management:-

Human resource management is that process of management which

develops and manages the human elements of enterprise. It is not only the

management of skills but also the attitudes and aspiration of people. When

HOD/HR manager

Executive

Assistant supervisor

House keeping supervisor

Executive

Assistant supervisor

House keeping supervisor



individuals come to work place, they come with not only technical skills,

knowledge, experience, but also with personal feelings, desires, motives,

attitudes, values etc.., So Human resource management means management of

various aspects of Human resource.

HRM is a management function that helps a manager to recruit, select,

train and develop members for an organization. It is mainly concerned with

the people dimension in organization.

Tulsyan company has nearly 1640 employees (including contract

labours) as compared to previous year and the industrial relations remained

cordial during the year. To meet the ongoing challenges in the market place

employees are trained continuously to upgrade both their knowledge and

skills.

CLASSIFICATION OF EMPLOYEES

Permanent employees

Casual employees

Apprentice

FUNCTIONS OF THE HR DEPARTMENT

Recruitment of candidates.

Selection of best suited and right persons.

Training and development of employees.

Framing of rules.

Creating a good working environment.

Motivating the employees to work up to their potentials.

Maximizing the performance of employees.



Maintenance of records.

Maintenance of industrial relations.

Employee service and benefits

MAINTENANCE OF SERVICE REGISTER\ PERSONAL FILES

Tulsyan maintains a service register of each employee maintaining all

the service records and the below mentioned facts according to the HRD wing

of the respective organization.

Particulars of the employees.

Date of joining.

History of services.

Pay scale/ increment /advances.

Particulars of leave availed including leave encashment / maternity

leave.

Particulars of record of rewards, praise, punishment or censure

including suspensions

Place of position.

Name / age of family members for provide medical benefits.

Permanent residence address and present postal address.

Details of training program undergone.

HR PRACTICES OF TULSYAN NEC LTD

Provident fund and pension fund.

Gratuity.

Compensation for accidents.



Shift allowances.

Overtime allowances.

Death relief fund.

Provide loans through the banks.

Leave encashment such as all permanent employees as on the date of

settlement will be given leave encashment in the form of following:-

Earned leave.

Casual leave.

Maternity leave.

Commuted or half day leave.

The primary responsibilities of the human resource department is

1. MANPOWER PLANNING

As an annual exercise, human resource department reviews the existing

manpower plan for the year from the entire department. On discussion and

consultation with managing director, the same shall be approved with changes

if any.

2. RECRUITMENT AND SELECTION

Based on the manpower plan and recruitment that follow due to

resignation, termination, retirement, and transfer, concerned department heads

shall give the manpower requisition along with job description according to

which human resource department arrange for Recruitment of personnel. The

sourcing of manpower will be through advertisements, consultations, walk-in,

and on-gate-advertisement or wanted lists on gates of the concerned

departments of the company.



3. INDUCTION AND PLACEMENT

The selected candidates will go through process of induction into the

company’s system and procedures. The induction and placement is given to

the selected candidates by departmental heads,

4. WAGES AND SALARY ADMINISTRATION

The wages and salary as prescribed by the company’s rule will be

disposed as follows.

A. Confirmed staff : Last day of the month.

B. Unconfirmed staff : Fifth day of the next month.

C. Workman : Seventh day of the next month.

5. PERFORMANCE AND POTENTIAL EVALUATION

The performance of the entire trainee will be evaluated once in three

months. All other employee’s performance will be reviewed once in a year.

On being found that their performance and potential to perform is up to the

expectation of the, management, employees will be rewarded with normal

increment, merit increment, lump sum payment and promotion. Those

employees whose performance is below the management expectation will be

given consulting in. In spite of such counseling, if the employees continue to

perform below expectation his awards or rewards will be differed, postponed

withheld depending on the degree of his poor performance.

6. PROMOTION, TRANSFER AND CAREER PLANNING

Promotion to higher posts to the employees is strictly and solely on

merit basis and experience. Transfer is affected on need basis and career

planning in envisaged.



7. DISCIPLINE AND INDUSTRIAL RELATIONS

The company standing orders governs the employees and the industrial

relations between the management and workman are cordial and harmonious.

To maintain this sort relationship between the employees and employer or

labors and superiors,

The company has conducted so many cultural programs, debate

competition, issuing questionnaire to the employees about the company’s

working environment.

It follows strict supervision on the workers absenteeism as well as find

out the reasons for the same and also tries to solve the problems of

absenteeism. The company has maintained the absence rate of the workers

very effectively by discovering optimum solution for the absenteeism and has

decreased the rate of absence from 5% to 3%.

TULSYAN Company is labor oriented and having a training and

development programs at minimum level. The company has only few

employees at plant who are having technical skills, and maximum number of

labors having less or no technical background.

EMPLOYEE WELFARE

The welfare measures at TULSYAN NEC LTD as follows.

1. Uniform: All the staff and labor members are provided with proper

uniforms and shoes. The workmen are provided with two pairs of shirt

and pants, two pairs of socks and a pair of leather shoes. The purpose

behind this is to maintain discipline and remove the disparity with in

the group of workers.



2. Canteen : In order to enable all its employees to have subsidiary food,

management of TULSYAN NEC LTD has provided a canteen facility

which well furnished and provides food by giving coupons to the

workmen at RS 85 per week. There are separate canteens for male and

female workmen.

3. Soft drinks: The employees at staff level are allowed to enjoy soft

drinks at wholesale price which is deducted from their salaries.

4. Tea / coffee: The workmen and staff members are having the facility of

getting tea and coffee at subsidized rate, served twice a day to all its

employees of the organization.

5. Loans to employees : All confirmed employees who have five years of

completed service, will be given loan which is repayable in equal

installments. Workmen also have the facility to procure the loan from

company through Syndicate bank where company has most of the

transactions.

6. Salary advance: Employees on emergency are given salary advance

which is fully deducted in the next month salary. It boosts the employee

moral and builds the loyalty with the company.

7. Insurance: personnel department is responsible for ensuring the

property of the company towards fire policy, burglary, cash in transit

and its employees towards workman’s compensation policy, group

personnel accidents, insurance med claim, and fidelity insurance.

8. Provident fund : As usual in all the companies provident fund in given

to the employees by contributing half by the employer remaining is

deducted from the salary or wages of the workmen and staff members

of the company.



9. ESI Benefits: The company provides employee state insurance to the

all the employees who worked more than 31 days in previous year.

10. Parking avenues: The company has provided well roofed parking

slots to the employees and workmen vehicles who usually come by

bicycles and scooters.

Shift timings of the organization:-

Since it’s a production unit the company maintains 5 shifts out of them

3 are production shifts and 2 are general shifts, the following are production

shift timings

7:00am-3:00pm

3:00pm-11:00pm

11:00pm-7:00am

The following are the general shift timings

8:30am-5:00pm

10:00am-6:00pm

4.6 STRATERGY

Strategy refers to the systematic action and allocation of resources to

achive the companies aim the integrated vision and direction of the company.

Plan for the allocation of firm’s scarce resources over time, to reach identified

goals, governments’ competition, and customers.

Strategy is a plan an organization formulates to gain a substantial

advantage over the competition. Strategy is the art of devising ang employing

a system of activities that mobilizes all resources towards a valuable goal.

“strategy is the determination of basic long term goals and objectives of an



enterprise, and the adoption of course of action and the allocation of resources

available for carrying these goals.

MARKETING DEPARTMENT

Hierarchy of marketing department

4.6 Chart: 1

Marketing is a process of persuasive action which makes the buyers to buy

the products and services at given price is called marketing.

Marketing management is a process of planning and executing the

conception, pricing, promotion and distribution of goods services and ideas to

create exchanges with target groups that satisfy customers and organizational

objectives. Marketing management is a process involving analysis, planning

implementation and control that it covers goods, services and ideas that it

rests on the notion of exchange and the goal is to produce satisfaction for the

parties involved.

General manager

Domestic market

Executive satish

Sales Sales Sales

Export market

Executive maria



MARKETING MIX

Marketing refers to the four P’s:-

Product

Promotion

Pricing

Place

Promotion

Promotion activity of the products produced by the TULSYAN NEC

LTD is totally taken care by head office of the company which is situated at

Vasanthnagar, Bangalore. Promotion of the products is looked after by the

company’s marketing executives.

Pricing

Pricing is relying on the quality and quality ordered by the customers.

When customer places bulk orders for the products and services, company

will quote the low price for the orders or vice-versa. All the pricing quotation

is fixed by the head office of TULSYAN NEC LTD. Only manufacturing

process will be done in the plant. The head office will receive the cost of each

order placed by the customers. It will then check the cost of the orders and

then fix the price for the orders

Place

Place refers to the space of finding the targeted customers of the

produced goods and services. Mainly company will browse the customers via



internet or through the directories, which contains information about the

customers.

MARKETING PROCESS

The marketing process followed at Tulsyan is

Analyzing market opportunities

Researching and selecting target markets and positioning the offer

Developing marketing strategy and plans

Planning marketing programs

Organizing implementing and controlling the marketing plans

MARKETING PROCESS OF TULSYAN NEC LTD

SEARCHING CUSTOMERS VIA INTERNET

POSTING COMPANY PROFILE TO CUSTOMERS

REPLY FROM

CUSTOMER

BUILD RELATIONSHIP AND

ENQUIRIES



FIX QUOATATIONS

PRICING QUOTATIONS

PLANNING MARKETING

PROGRAMS

ORGANIZING IMPLEMENTING MARKETING

EFFORTS

4.6 Chart: 2

CUSTOMERS PROFILE

There are nearly 51 overseas customers and few domestic customers. some of

the major customers are as follows:-

Domestic customers

ACC CEMENT

RASHI GOLD

COROMANDEL

AMBUJA CEMENT

BIRLA SUPER

L & T CEMENT



ULTRATECH CEMENT

JUMBO BAGS (FIBC)

VEDANTA (Lanjigarh)

INDIAN OIL

ENCORE

Overseas customers

SHAH& Co

TRACO CABLE COMPANY LIMITED KEJRIWAL

ELECTRONICS LIMITED

P.L. GOYAL & SONS LIMITED

INFO TRENDS

CHETANA LAMINANATES PRIVATE LIMITED

M.B.I.L LIMITED

SHREE LAXMI PACKAGING

ASHIRVAD IMPEX

CHRIST EXPORT

R.P.PLASTIC



FINANCE DEPARTMENT

INTRODUCTION

Finance is regarded as the lifeblood of the business enterprise.

Financial management is very important to any organization. Lack of this

paralyses the activities of the firm. Hence, it is essential to have a sound

financial system organized in an organization or enterprise. Every

organization needs money and the management of it is very important in any

financial system of an organization. Tulsyan has very sound financial

department and well trained and experienced employees to carry out the

financial activities. Here every activity is carried out with utmost care

According to the Consolidated - Audited financial statement for the Year

2011, total net operating revenues increased 46.28%, from INR 608.32 tens of

millions to INR 889.88 tens of millions. Operating result decreased from INR

53.9 tens of millions to INR 53.58 tens of millions which means -0.59%

change. The net income of the period increased 6.89% reaching INR 11.02

tens of millions at the end of the period against INR 10.31 tens of millions

last year. Return on equity (Net income/Total equity) went from 16.01% to

15.25%, the Return On Asset (Net income / Total Asset) went from 3.16% to

2.88% and the Net Profit Margin (Net Income/Net Sales) went from 1.69% to

1.24% when compared to the same period last year. The Debt to Equity Ratio

(Total Liabilities/Equity) was 529.15% compared to 507.13% the previous

year. Finally, the Current Ratio (Current Assets/Current Liabilities) went from

2.43 to 2.18 when compared to the previous.



Objectives:-

The objectives of financial department are as under:-

To ensure that accounting records of various divisions are properly

maintained.

To ensure that sales realization are properly accounted and remained

the marketing section from time to time over the debtors portion in

order to enable them to collect the dues.

The account section objective is also to see that regular payments of

milk bill are made to milk producers on priority.

To see that the payments to creditors are made within stipulated time.

Account section has to provide management timely information about

the financial position of the union and guide them as to viability of the

proposals that come in the course of business activity.

The other objective of finance section is to keep the management /

board appraised of monthly trading and P & L a/c figures.

To include timely submission of financial statements to auditors and

ensure smooth audit is conducted and give audit reports to

management.

Functions:-

The main functions of the financial department are as under:-

To manage cash.

To manage bills.

To manage transportation bills.

To manage pay bills.

To manage accounts.



Working capital ratios

Ratio Analysis can be defined as the study and interpretation of

relationships between various financial variables, by investors or lenders. It is

a quantitative investment technique used for comparing a company's financial

performance to the market in general. A change in these ratios helps to bring

about a change in the way a company works. It helps to identify areas where

the management needs to change. They would deal with some of the

predominant ratios more relatively applicable in working capital management.

Current ratio

This ratio establishes the relationship between current assets and

current liabilities. the purpose of this ratio is to find out the extent of current

assets available against each rupee of current liability of the firm Current

ratio=current assets/current liabilities Current assets include cash, marketable

securities, debtors, inventories, prepaid expenses etc. Current liabilities

includes creditors, bills payable, accrued expenses, short term bank loan,

income tax liability and long term debt etc.

4.6 Table: 1

Year Current assets

Current liability

Current ratio

2009-2010 189.03 125.785 1.502

2010-2011 258.87 167.935 1.5414



Interpretation: From the year 2009-10 the Current ratio has decreased but in

the year 2010-11 the Current ratio has increased.

Quick ratio

This ratio is called as acid test ratio or Quick ratio. It establishes the

relationships between liquid assets are those which can be converted into cash

without any loss or delay. all current assets, excepting stock and prepared

expenses, are considered to be liquid assets. Liquid liabilities are those

liabilities which are payable immediately. all current liabilities, excepting

Bank overdraft, are considered to be liquid liabilities.

Year Quick assets Quick liability Quick ratio

2009-2010 108.115 125.785 0.85952

2010-2011 146.665 295.01 0.49715

4.6 Table: 2

Interpretation: From the year 2009-2010the quick ratio has decreased but in

the year 2010-2011the quick ratio has increased.



REPORT OF THE DIRECTORS TO THE SHAREHOLDERS They presenting the 64th Annual Report of the Company together with

the Audited Balance Sheet, Profit & Loss Account and Cash Flow Statement

for the year ended 31st March, 2011. FINANCIAL RESULTS Rupees in

Lakhs 2010-2011 2009-2010 Profit before Depreciation and tax 2365.39

2258.48 Less: Depreciation 857.88 813.33 Profit for the year before

exceptional items 1507.51 1445.15 Less: Exceptional Items 126.96 85.73

Profit for the year 1380.55 1359.42 Less: Provision for Current Tax 290.00

360.00 Deferred Tax 156.22 150.17 Add: Surplus brought forward 3334.84

2698.85 Amount available for appropriation 4269.17 3548.10 Appropriations:

Interim dividend 50.00 – Corporate Tax on Interim Dividend 8.50 – Dividend

50.00 100.00 Corporate Tax on dividend 5.31 11.26 General Reserve 105.00

102.00 Balance carried forward 4050.16 3334.84 OPERATIONS AND

OUTLOOK During the year under review, Sales and other receipts grew

32.93% YOY to Rs. 84310.61 Lakhs. EBITDA grew by 4.73% YOY to Rs.

2365.39 Lakhs and PAT grew by 10.02% YOY to 934.33 Lakhs. Your

directors expect a growth of 35% in the top line for the FY 2012. As in the

last year during the current year also there were drastic power cuts

consequently effecting our costs and also the production. Due to these power

cuts they could not utilize our capacities in full thus losing out on economies

of large scale production. The 35 MW captive thermal power plant at

Gummudipoondi is expected to commence production from June 2012.

During the current year your company proposes to set up an additional

captive Power Plant of 35 MW capacity, additional Induction furnaces of 4

numbers of 20T each for billet manufacturing with annual installed capacity

of 274000 MTPA this will be set up at the new site where the captive power



plant of 35MW is under implementation. The company is setting up a Wire

Rod and Bundling machine with a coal gasifier at the existing rolling mill

division in Gummudipoondi. DIVIDEND there Company paid interim

dividend of 10% during January 2011. There directors are now pleased to

recommend a final dividend of 10% on the paid up capital of Rs. 5 Crore.

This together with the interim dividend aggregated to a record total dividend

of 20% for the financial year ended 31st March 2011, on the paid up capital

of Rs. 5 Crore.

DIRECTORS

Shri V. Kirubanandan, Director of the Company, retires by rotation and

being eligible, offers himself for re-election.

AUDITORS

The Auditors of the Company M/s. C.A. Patel & Patel, Chartered

Accountants, Chennai, retire at the ensuing Annual General Meeting of the

Company and are being eligible, offer themselves for re-appointment. Some

of the accounting notes of the company

Contigent liabilities:- All liabilities have been provided for in the accounts

except liabilities of a contingent nature, which have been disclosed at their

estimated value in the Notes to the Accounts wherever practicable.

Cash &cash equivalents:- Cash and cash equivalents in the cash flow

statement comprise cash at bank and in hand and short-term investments with

an original maturity of three months or less.



Foreign exchange transaction:- All foreign currency transactions are

recorded at the average exchange rate prevailing during the transaction occur.

Outstanding balance of foreign currency monetary items are reported using

the period end rates.

Segment reporting:- Segments have been identified in line with the

Accounting Standard on Segment Reporting (AS 17), taking into account the

organizational structure as well as differential risk and returns of the segments

Tax & income:- Tax expenses for a year comprises of current tax and

deferred tax. Current tax has measured at the amount expected to be paid to

the tax authority, after taking into consideration, the applicable deductions

and exemptions admissible under the provisions of the Income Tax Act, 1961.

Deferred tax reflects the impact of current year timing difference between

taxable income and accounting income for the year and reversal of timing

difference of earlier years. Deferred tax is measured based on the tax rates

and the tax laws enacted or substantively enacted at the Balance Sheet date.

Lease payments and receipts:- Lease payments have been made towards

land at Chennai and amortized on a straight line basis during the period of

lease. Lease payments have been made towards Hire Purchase of Vehicle.

Details of secured loans:- Loans from Banks secured by exclusive charge on

land, buildings and plant and machinery other than those specifically charged.

Term Loan from Financial Institution is secured by assets purchased under the

loan and are guaranteed by the Managing Director and two Directors of the

company.



SKILLS

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

the company’s strategy. Training and development ensuring people know how

how to dotheir jobs and stay up to date with latest techniques. The company

requires technical skills for production and manufacturing divisions. Also it

ability, knowledge, understanding and judgment to accomplish a task. Skills

may be defined as what the company does best, the distinctive capabilities and

competencies that reside in their organization.

The organization selects and assigns personnel performing work affecting

product quality based on appropriate education skills and experience. The

organization has also a system to assess the competence of its personnel on

periodic basis(performance appraisal and development report) to identify gap

in the performance, if any as well as assessing their training needs to bridge

the gap..

Style

The company follows a centralized system of decision-making. Only

the top management takes the decision and the suggestion of the lower level

employees are taken into consideration.

To study the style of functioning of “TULSYAN NEC LTD”, cultural

style of the organization and how the key mangers behave in achiving

organization’s goals. In “TULSYAN NEC LTD” the decision process are

taken by the management in the head office. The decision are Authoritative in

nature when it comes to decision making. Only the persons who are in higher

authority take decision about the day-to-day operations. Thus, decision making

is restricted to the upper layer of the management. For eg: while taking



decision regarding purchase only the M.D and Directors will take decision

regading the vendor, quantity and quality of the raw material, and tenders. The

higher authorities do everything. There is no participative approach and most

of the employe’s have no or very little knowledge about all the aspects of the

company’s administration.

Shard values

Shared values means values and beliefs of the company. Ultimately

they guide employees towards 'valued' behavior. It refers to the core or

fundamental values that are widely shared in the organization and serve as

guiding principle that are important. These values have great meaning

because they focus attention and provide a broader sense of purpose. Value

act as an organization’s conscience providing guidance in time of crisis with a

vision of being a world class, innovation competitive and profitable paper it

has used all the available resources. The company has a goal to all its concern

and share the information available in every concern and produces the

products as concern to the customer’s need. Values act as an organization’s

conscience, providing guidance in time of crisis. Shared values are to

company policies. In “TULSYAN NEC LTD” the following policies are

maintained.



QUALITY POLICIES

They shall make value additions to our customers by providing world

class products.

Meet to the full satisfaction of customers.

Quality by enhancing productivity and efficiency.

Being internationally competitive.

Achieve quality products with total support from all their employees.

Checking continuous improvement.

To listen openly to its customers.

To design the products they want first.

Produce the products cheaply not compromising with quality.

To offer excellence to your customer.

To listen to empower and motivate your employees



CHAPTER-5

SWOT ANALYSIS

SWOT analysis is a structured planning method used to evaluate

the Strengths, Weaknesses, Opportunities, and Threats involved in a project or

in a business venture. A SWOT analysis can be carried out for a product, place

or person. It involves specifying the objective of the business venture or

project and identifying the internal and external factors that are favorable and

unfavorable to achieve that objective. Strengths and weaknesses are often

internal to your organization, while opportunities and threats generally relate

to external factors. For this reason the SWOT Analysis is sometimes called

Internal-External Analysis.

5.1 Strength

Strengths are the qualities that enable us to accomplish the

organization’s mission. These are the basis on which continued success can be

made and continued/sustained. Strengths can be either tangible or intangible.

Strengths are the beneficial aspects of the organization or the capabilities of an

organization, which includes human competencies, process capabilities,

financial resources, products and services, customer goodwill and brand

loyalty. Examples of organizational strengths are huge financial resources,

broad product line, no debt, committed employees, etc. strengths of

TULSYAN NEC LTD are:

The company has very good quality of fabric as well as quality control

system.



Continous improvement of their product by incorporating latest state of

art technology that is printing and lamination departments.

Strict compliance of quality, timely delivery and quality management

services.

The company is providing better packaging solution to requirements of

customers by quoting the pricing reasonably.

5.2 Weakness

Weaknesses are the qualities that prevent us from accomplishing our

mission and achieving our full potential. These weaknesses deteriorate

influences on the organizational success and growth. Weaknesses are the

factors which do not meet the standards we feel they should meet. Weaknesses

in an organization may be depreciating machinery, insufficient research and

development facilities, narrow product range, poor decision-making, etc.

Weaknesses are controllable. They must be minimized and eliminated. For

instance - to overcome obsolete machinery, new machinery can be purchased.

Other examples of organizational weaknesses are huge debts, high employee

turnover, complex decision making process, narrow product range, large

wastage of raw materials, etc. weakness that TULSYAN NEC LTD having

are:

The company has poor advertising strategies to increase their sales.

The company is not ready to acquire bulk orders because of lack of

investment.

The utmost weakness of this company is lack of marketing, they

believe that they are retaining most of their customers.



Attrition rate is more.

5.3 Opportunities

Opportunities are presented by the environment within which our

organization operates. These arise when an organization can take benefit of

conditions in its environment to plan and execute strategies that enable it to

become more profitable. Organizations can gain competitive advantage by

making use of opportunities. Organization should be careful and recognize the

opportunities and grasp them whenever they arise. Selecting the targets that

will best serve the clients while getting desired results is a difficult task.

Opportunities may arise from market, competition, industry/government and

technology. Increasing demand for telecommunications accompanied by

deregulation is a great opportunity for new firms to enter telecom sector and

compete with existing firms for revenue. TULSYAN NEC LTD having

opportunities like:

New business alliance with clients abroad.

It has the potential to diversify in to various related business like sugar

bags, cement bags etc.

The company easily combat with their domestic competitors because of

their quality assurance and quality service.

Flexibility in usage of product makes the company more attractive.

5.6 Threats

Threats arise when conditions in external environment jeopardize the

reliability and profitability of the organization’s business. They compound the

vulnerability when they relate to the weaknesses. Threats are uncontrollable.

When a threat comes, the stability and survival can be at stake. Examples of



threats are - unrest among employees; ever changing technology; increasing

competition leading to excess capacity, price wars and reducing industry

profits; etc. Threats are:

The entry of multi-national automation companies will have a greater

impact on the growth of the company.

Frequent power failure in the work place.

Changes in government policies



CHAPTER 6

FINDING SUGGESTIONS AND CONCLUSION

6.1 Finding

In Tulsyan nec ltd Finance and Marketing decisions are taken by the

head office located at Bangalore.

It has been providing employment opportunity not only for technical

people and also also for non-technical people with minimum education

qualification.

It is providing good quality products and services to the society as well

as to customers.

It has well equipped plant to meet variation in the demand for instance

TULSYAN NEC LTD has VI extruders to make the raw materials

conversion.

It has provided well furnished canteen facilities to all his workers.

It has well supported co-ordinate employees to meet objectives and

goals of the company also maintain industrial peace.

It was founded that there are more number of unskilled labourers in the

company.

Training programmes for every new joiner is given. Online training (it

is regularly given when there is change in orders, complaints and so

on.)

Skilled employees are sent outside the organization for seminars.

It has been maintaining day-to-day transaction in the books of records

are kept manually

All departments are well structured and their functions are clearly

defined.



6.2 Suggestion:

The organization should provide optimal salary to their employees and

workers.

Using the experts in decision making and solving problems of the

industry.

The industry should give the advertisement of the product to create the

place in market.

Giving the opportunities for employees to involve in decision making

Career planning of employees should be focused.

Industry should have skill development programs for the same.

6.3 Conclusion

I had the opportunity take my organization study at. TULSYAN NEC

LTD at Doddaballapura, within a span of 1 month. I was able to gather

information regarding the company and its working environment. It has having

good demand for their product but limited advertisement in market. This

industry is the largest foundry company which is helping the growth of

country economy.

The high performance of Tulsyan NEC Limited is the effort of the

management and the worker in the organization for its high growth and

increased sales and with effective operations management.

TULSYAN NEC LTD having the good working environment. And this

industry having good infrastructure facility to develop the employees. The

employees are very happy to work is the Industry. And industry was taking

well initiative to strengthen their employees and also to improve the quality of



life their employees. The overall study that emerges in this firm has been

maintained well and efficient department in the management. It’s all section

are working efficiently.

Every organization makes sure that its employees are satisfied and are

happy working in the organization. Every working person expects some

benefits from its organization apart from the basic salary paid to him for his

work. An employee tends to be more satisfied from the additional benefits that

he obtains from the organization. Tulsyan NEC Limited is one of those

organizations who provides excellent benefits to its employees and makes sure

that its employees are satisfied and contended working in the organization.



LEARNING EXPERIENCE

The in-plant training created a sense of practical exposure and

enlightenment in my mind as to what actually an organization is and how

theoretical concept are practiced in with only theatrical knowledge; several

management concepts were slightly difficult to analyses. However, after in-

plant training, I have felt empowered with confidence to understand different

management concept in a pragmatic manner.

This training help me a lot to study overall industry by theoretical

concepts which i learnt in my 1st year MBA, and also helped me to gain

knowledge about the industries like product production, production process,

and how it works.

On 14/08/2012 I have visited to industry and I met HR manager and I

came to know what is the product actually The Tulsyan NEC Limited

producing.

On 16/08/2012 I came to know about background of the industry and

directors and promoters of the industry.

On 16/08/2012 I went to production department and saw the process of

the woven sacks

On 18/08/2012 again I went the production department and I saw the

whole machines which is using for the production of woven sacks with the

help of mr. prakash(HR manger)



On 20/08/2012 supervisor showed me the different products of the

industry which they are producing and told about the 5p’s management like

people, production, plant, process, program.

On 22/08/2012 I came to know about the cost accounting calculations

and cost records which they maintained and the techniques and methods for

controlling the cost.

On 23/08/2012 HR mangers told details about the industry has two

division steel and plastic packaging. The steel division is located at Chennai

and goa. And also I came to know vision, mission and competitatores of the

industry.

On 27/08/2012 supervisor shows all the machines and also told their

capacity to produce the bags and the workers needs to handle the machine and

the production capacity per day.

On 29/08/2012 I went to HR department to collect the information

about that department. HR manager Mr. Prakash told me that total employees

working their and benfits and welfare facility of employees which the Tulsyan

NEC Ltd providing them.

On 03/09/2012 I got the information about the purchase department and

about the suppliers.

On 05/09/2012 I came to know the quality of the product which the

industry maintaining to satisfy the customer needs and they showed me the

quality checking machine which checks the strength of the bags.



On 06/09/2012 I went to finance department of the industry and I come

to know that this industry has very sound financial department and well trained

employees to carry the financial activities.

On 08/09/2012 again I went to finance department and get information

about current assets, current liabilities and I collect three years balance sheets

to get overall information of past data.

On 10/09/2012 I went to marketing department and I collect

information like marketing mix and I came to know that this industry doesn’t

not giving any advertisement of their product and customers, competitors of

this industry.

On 12/09/12 finally again I went to HR department to see when

employees get wages or salary in the end of the month and shifting time and

timing of work in the industry.

0n 14/09/2012 I went industry to say thanks to gave an opportunity to

study overall the industry and help me to get all the information of all

department, and finally I collect certificate from the industry.



BIBLIOGRAPHY

Books : Marketing Management- Philip kotler

Human Resource Management-

K.Ashwathappa.Keller Philip.And Keller

Kevin Lane,

Marketing Management 12edition, Prentice-

Hallof India Pvt Ltd, Twelfth Edition.

Websites : www.wovensacks.com

Organization study on Tylsan Nec Ltd.,

Documents

Transcript of Organization study on Tylsan Nec Ltd.,