A PROJECT REPORT

ON

Shree Cement Limited

“Selection & Recurtiment policy of shree Cement

Submitted for thepartial fulfillment of two years full time course

Master In Business Administration

Submitted To :- Submitted By :-

FACULTY OF MANAGEMENT STUDIES MAHARISHI

ARVIND INSTITUTE OF ENGINEERING & TECHNOLOGY,

JAIPUR

(Affilated to rajasthan technical university)

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ACKNOWLEDEMENT

project study is successful not only by the single efforts of trainee alone but there are several people who are helpful in making training a completed job done for a specific purpose. It is a matter of great privilege and immense pleasure to be associated with an esteemed organization like Shree Cement Ltd.

Also acknowledging the work and help of all those who have guided us for the completion of the project on time is indeed a duty of ours knowledge the fact that no words can measure their guidance to any extent.

Like wise in completion of my summer training I would like to thanks many authorities and personalities upon whose guidance and sincere cooperation.I made myself to finish and complete the summer training schedule with grace and confidence.

First of all, I would like to pay my sincere and honest regard to , Training Incharge, under whom I have done my training and who aspired me through the training with his skills and knowledge and inculcated in me to face the challenges of the market with confidence.

Secondly, I also dedicated my warm thanks to all the staff members and my colleagues during the summer training who didn’t let me down rather inspired me all the time performing the best.

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PREFACE

The summer training project of management course plays an important role for a

management student to develop him into a well groomed professional. It provides him

the theoretical concepts and practical exposure in the field of application. Summer

training project also provides him an idea of dynamic and versatile professional world as

well as an exposure to the intricacies and complexities of the corporate world.

My summer training in SHREE CEMENT LIMITED Jaipur was an eye opening

experience to see the level of customer satisfaction among people of the jaipur city &

local area

During MBA program I was taught about two dozen subjects which if not applied

properly are a simple waste of time. At SHREE CEMENT LMITED I got a chance to

apply management theories to the latest competitive and marketing oriented

environment.

In two months of market exposure, I learned a lot of various aspects of organizational

structure, departments, sales, communication and their impact. Now I can say one thing

that the best way to learn is at work. It was a real interesting experience and I enjoyed

every part of it and hope that it would be helpful in my future.

-: CONTENTS :-

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1 Industry overview 9

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1.1 Cement industry in India 9

1.2 Major Players in Indian Cement Industry 10

1.3 Process Technology 11

1.3.1 Raw Materials for Cement Production 11

1.4 Process 11

1.4.1 Stages of Cement Production 12

1.5 Types of Cement 15

1.6 Scale of Operations 17

1.6.1 Industrial production 17

1.7 Exports 20

1.8 Policy Initiatives 22

1.9 Future Outlook 22

1.10 Significant Consolidations 22

1.11 Competitor & Environment Analysis 24

PART-2

2 Company Overview – Shree Cement Limited 25

2.1 Introduction 25

2.2 Vision of SCL 26

2.3 Philosophy of SCL 26

2.4 Mission of SCL 27

2.5 SCL manufacturing units 27

2.6 Business & Managerial Challenges for SCL 30

2.7 Market of SCL 31

2.8 SCL’s Brands & Products 32

2.9 Strengths of SCL 32

2.10 SCL’s Manpower profile 35

2.11 Key Operational Highlights 36

2.12 Recognition and Awards 42

2.13 SCL vis-à-vis Competitors 42

2.14 Information Technology at SCL 46

2.15 Bangur Cement – SCL’s Premium Brand 48

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2.16 Comparison between various cement brands 50

PART-3

3 Marketing research 53

3.1 Classification marketing research 54

3.1.1 Process of marketing research 55

3.2 Research methodology 56

3.2.1 Data collection 57

3.2.2 Area covered 59

3.2.3 Data analysis 60

3.2.4 Findings 69

PART-4

4 Questionnaire 70

Performa of Questionnaire 71

Dealer /sub dealer report 72

PART-5

5.1 Conclusion 78

5.2 Recommendation 79

5.3 Bibliography & webliography 81

List of tables

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EXECUTIVE SUMMARY

Cement is a key infrastructure industry. It has been decontrolled from price and

distribution on 1st March, 1989 and delicensed on 25thJuly, 1991 Moreover it is the

material which plays an important role in building not only the colossal structures but

also our dreams in the form of our houses, keeping us protected against the changing

climate. Our country takes the pride of being the second largest manufacturer of cement

in the world preceded by only China. We have constantly been exercising one of the

best practices of cement production, giving rise to productivity, quality and efficiency.

The cement industry in India is experiencing a boom on account of the overall growth of

the Indian economy. The demand for cement, being a derived demand, depends

primarily on the industrial activity, real estate business, construction activity, and

investment in the infrastructure sector. India is experiencing growth on all these fronts

and hence the cement market is flourishing like never before. Indian cement industry is

globally competitive because the industry has witnessed healthy trends such as cost

control and continuous technology up gradation. It is believed that cement demand in

India is expected to grow at 10% annually in the medium term buoyed by housing,

infrastructure and corporate capital expenditures.

As mentioned above, the Indian cement industry is the second largest producer of

quality cement, which meets global standards. The cement industry comprises more

than 50 cement companies with 130 large cement plants with an installed capacity of

156.26 million tonnes and more than 300 mini cement plants with an estimated capacity

of 11.10 million tonnes making a total installed capacity of 167.36 million tonnes.

Continuous technological upgradation and assimilation of latest technology has been

going on in the cement industry. Indian cement industry is modern and uses the latest

technology. India is also producing different varieties of cement like Ordinary Portland

cement (OPC), Portland Pozzolana cement (PPC), Portland Blast furnace Slag Cement

(PBFS), Oil Well Cement, Sulphate Resisting Portland Cement, White Cement, etc.

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Future growth of the industry is belief to be driven by expected GDP growth of more

than 8 percent, growth of the housing sector and the development of roads, ports,

airports and other infrastructure.

This project is pertaining to explore the market perception of Shree cement’s brand vis-

à-vis competitors by taking care of all the components of marketing mix. Keeping main

objective of the study in mind the survey has been done in jaipur city & local area

The methodology of the study contains interacting with distributors and dealers,

questioning them around the various attributes of the market to collect the facts about

the market scenario of the region and eventually exploring their role in marketing of

company’s brand

For past two months, I have been working as a summer trainee on this project assigned

to me . The idea was to study the importance and role of various factors of the

marketing mix in the cement industry in terms of Quality (Product), Price, Promotional

activities, Services to the dealer and Dealers profitability.

The report also throws light on dealer’s opinions and preferences when it comes to

discounts and benefits offered to them and promotional support provided by company to

help dealers. This information is vital to the company in forming its strategy and

schemes to increase its market share.

To start with an attempt was made to understand and diagnose the prevailing situation

of Shree’s cement. Carrying out the industry analysis, competitor’s analysis, channel

analysis and SWOT analysis did it. To get the real market scenario, a survey of dealers

was conducted to get their perception about the prevailing situation and to find their

expectations.

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According to dealer’s feedback Quality, Availability and Profit margin are the factors on

which Bangur is rated high.

A positive relationship was seen between Brand image and Quality of the cement.

Along with this there was no significant relationship between the Profit margin and the

sales.

Survey results confirm that SCL has been able to make a mark in market and perceived

to have good quality and also there is a great demand of cement in market. But survey

results also shows that despite of above mentioned positive factors it has not been able

to make a breakthrough in building its brand name the reason come out to be its low

brand awareness (lack of dealer motivation/ meetings/ advertising) and cut-throat in-

house brand competition.

To increase the brand awareness aggressive promotion need to be carried out ensuring

its effectiveness in making a mark, also as survey results confirm that it’s the

dealer/mason/contractor who is the ultimate decision maker in choosing a brand so

efforts need to be made to build long term relationship with all these people. Meetings,

gifts, and kit distribution are the best tool to ensure masons understanding and

satisfaction. As dealer play a prominent role in sale of a brand every possible effort (like

training/ plant visit/ additional margin/ sufficient POP material distribution/ grace period

of three days for payment) need to be made a strong dealer network.

PART 1INDUSTRY OVERVIEW

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1.1 CEMENT INDUSTRY IN INDIA

Cement industry is a capital intensive and cyclical industry. The demand for cement is

linked to economic activity, can be categorized into two segments, household

construction and infrastructure creation.

The Indian Cement Industry today is the second largest in capacity and production with

an installed capacity of around 157 mtpa after China. The Indian Industry charted a fast

track growth of around 10% per year on an average during the last decade. Demand

has shown an upward surge in recent times buoyed by housing sector, infrastructure

development, and increase in capital expenditure by corporate and growing retail

sector. The cement demand in the country is expected to grow at an annual rate of 8%

for the next five years.

The Indian cement industry is a mixture of mini and large capacity cement plants,

ranging in unit capacity per kiln as low as 10 tonnes per day (tpd) to as high as 7500

tpd. Majority of the production of cement in the country (94%) is by large plants, which

are defined as plants having capacity of more than 600 tpd.

The Industry faces several bottlenecks in high cost of inputs like fuel and power, high

taxes and duties and transportation cost. More than 70% of the input cost in cement

manufacture is beyond the control of the industry and is administered by regulatory

authorities. These include royalties and cess on limestone, tariff for coal, rail transport

and power, duties on finished goods, namely, central excise, local sales tax, octroi, etc.

The only areas where industry can induce cost controls and economy are reduction in

consumption of inputs like fuel and power through energy efficiency, improved

productivity through planned maintenance and reduction of stoppages, etc. The

continuous efforts by the industry in these areas have brought in good results. It is

noteworthy that the energy consumption by the most efficient cement plants in India at

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the level of 665 Kcal per kg of clinker and 69 kWh per tonne of cement are comparable

with the best achieved in the world.

1.2 Major Players in Indian Cement Industry:

Domestic players:1.) ACC Limited

2.) Ambuja Cements Limited

3.) Birla Corporation Limited

4.) UltraTech Cement

5.) Binani Cement

6.) Shree Cements Limited

7.) India Cements

8.) J K Cement

9.) Grasim

10.) Jaypee Group

11.) Madras Cements

12.) Century Textiles

Major foreign players: 1.) Holcim

2.) Lafarge

3.) Italcementi

1.3 PROCESS TECHNOLOGY

1.3.1 Raw Materials for Cement Production

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Cement is usually used in mortar or concrete. Here it is mixed with inert material (called

aggregate), like sand and coarse rock. Portland cement consists of compounds of lime

mixed with oxides like silica, alumina and iron oxide.

There are three major raw materials for cement:

1.) LimestoneLimestone is the main raw material and is the source of calcium carbonate. Calcium

carbonate is burnt to obtain calcium oxide (CaO). The other sources of calcium

carbonate are marl, chalk, seashell and coral reef. Limestone is the most abundant

source of CaO. The other user industries for limestone are iron & steel, fertilizer and

chemicals. Cement is the biggest limestone user in

India accounting for over 75-80% of limestone produced in India. The composition of

limestone used by the various sectors varies. For cement, the CaO content of limestone

should be a minimum of 44%. Typically, 1.4-1.5 tonnes of limestone are required per

tonne of clinker. Thus, for a 1 million tonne cement plant, assured availability of cement

grade limestone reserves of the order of 50-60 mt in the close vicinity is important.

2.) GypsumGypsum is used as a retarding agent. Ground clinker, on contact with water, tends to

set instantaneously because of the very fast reaction between tri-calcium aluminates

and water. In the presence of gypsum, the desired setting time can be achieved.

Gypsum is added to the extent of 5% during the clinker grinding stage. Gypsum is

naturally available in abundance in Rajasthan, Gujarat and Tamilnadu.

3.) Granulated Blast Furnace Slag (GBFS) and Fly AshThe other raw materials that are also used in the manufacture of cement are blast

furnace slag (a waste product obtained from iron-smelting furnaces) and fly ash (leftover

ash from a thermal power station). Limestone contains about 52% of lime and about

80% of this lime is lost during ignition of the raw materials. Similarly, Clay contributes

about 57% silica of which about 25% is lost during ignition. GBFS is obtained by

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granulation of slag obtained as a by-product during the manufacture of steel. It is a

complex calcium aluminium silicate and has latent hydraulic properties. That is why it is

used in the manufacture of Portland blast furnace slag cement.

1.4 PROCESS

1.4.1 Stag es of Cement Production

There are seven stages of cement production at a cement plant:

1. Procurement of raw materials2. Raw Milling - preparation of raw materials for the pyroprocessing system3. Pyroprocessing - pyroprocessing raw materials to form cement clinker4. Cooling of cement clinker5. Storage of cement clinker6. Finish Milling7. Packing and loading

Figure 1.1: Cement manufacturing from the quarrying of limestone to the bagging of

cement

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While adding fresh capacities, the cement manufacturers are very conscious of the

technology used. In cement production, raw materials preparation involves primary and

secondary crushing of the quarried material, drying the material (for use in the dry

process) or undertaking a further raw grinding through either wet or dry processes, and

blending the materials.

Clinker production is the most energy-intensive step, accounting for about 80% of the

energy used in cement production. Produced by burning a mixture of materials, mainly

limestone, silicon oxides, aluminium, and iron oxides, clinker is made by one of two

production processes: wet or dry; these terms refer to the grinding processes although

other configurations and mixed forms (semi-wet, semi-dry) exist for both types.

In the dry process, the raw materials are ground, mixed, and fed into the kiln in their dry

state.

In the wet process, the crushed and proportioned materials are ground with water,

mixed, and fed into the kiln in the form of slurry.

The choice among different processes is dictated by the characteristics and availability

of raw materials. For example, a wet process may be necessary for raw materials with

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high moisture content (greater than 15%) or for certain chalks and alloys that can best

be processed as a slurry. The dry process is the more modern and energy-efficient

configuration. In general, the dry process is much more energy efficient than the wet

process, and the semi-wet somewhat more energy efficient than the semi-dry process.

The semi-dry process has never played an important role in Indian cement production

and accounts for less than 0.2% of total production.

In 1960, around 94% of the cement plants in India used wet process kilns. These kilns

have been phased out over the past 46 years and at present, 96.3% of the kilns are dry

process, 3% are wet, and only 1% are semidry process. Dry process kilns are typically

larger, with capacities in India ranging from 300- 8,000 tonnes per day or tpd (average

of 2,880 tpd). While capacities in semi-dry kilns do range from 600-1,200 tpd (average

521 tpd), capacities in wet process kilns range from 200-750 tpd (average 425 tpd).

Over the last decade, increased preference is being given to the energy efficient dry

process technology so as to obtain a cost advantage in a competitive market. Moreover,

since the initiation of the decontrol process, many manufactures have swSHREE

CEMENThed over from the wet technology to the dry technology by making suitable

modifications in their plants. Due to new, even more efficient technologies, the wet

process is expected to be completely phased out in the near future. Due to the

dominant use of carbon intensive fuels such as coal in clinker making, the cement

industry has been a major source of carbon dioxide (CO2) emissions. Besides energy

consumption, the clinker making process also emits CO2 due to the calcining process.

1.5 TYPES OF CEMENT

There are different varieties of cement based on different compositions according to

specific end uses, namely, Ordinary Portland Cement, Portland Pozzolana Cement,

White Cement, Portland Blast Furnace Slag Cement and Specialised Cement.

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The basic difference lies in the percentage of clinker used.

1.) Ordinary Portland Cement (OPC):OPC, popularly known as grey cement, has 95 per cent clinker and 5 per cent gypsum

and other materials. It accounts for 70 per cent of the total consumption.

2.) Portland Pozzolana Cement (PPC):PPC has 80 per cent clinker, 15 per cent Pozzolana and 5 per cent gypsum and

accounts for 18 per cent of the total cement consumption. It is manufactured because it

uses fly ash/burnt clay/coal waste as the main ingredient.

3.) White Cement:White cement is basically OPC - clinker using fuel oil (instead of coal) with iron oxide

content below 0.4 per cent to ensure whiteness. A special cooling technique is used in

its production. It is used to enhance aesthetic value in tiles and flooring. White cement is

much more expensive than grey cement.

4.) Portland Blast Furnace Slag Cement (PBFSC):PBFSC consists of 45 per cent clinker, 50 per cent blast furnace slag and 5 per cent

gypsum and accounts for 10 per cent of the total cement consumed. It has a heat of

hydration even lower than PPC and is generally used in the construction of dams and

similar massive constructions.

5.) Specialised Cement:Oil Well Cement is made from clinker with special additives to prevent any porosity.

6.) Rapid Hardening Portland cement:Rapid Hardening Portland Cement is similar to OPC, except that it is ground much finer,

so that on casting, the compressible strength increases rapidly.

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7.) Water Proof Cement:Water Proof Cement is similar to OPC, with a small portion of calcium stearate or non-

saponifiable oil to impart waterproofing properties.

In India, the different types of cement are manufactured using dry, semi-dry, and wet

processes. In the production of Clinker Cement, a lot of energy is required. It is

produced by using materials such as limestone, iron oxides, aluminium, and silicon

oxides. Among the different kinds of cement produced in India, Portland Pozzolana

Cement, Ordinary Portland Cement, and Portland Blast Furnace Slag Cement are the

most important because they account for around 99% of the total cement production in

India.

The Portland variety of cement is the most common one among the types of cement in

India and is produced from gypsum and clinker. The Ordinary Portland cement and

Portland Blast Furnace Slag Cement are used mostly in the construction of airports and

bridges. The production of white cement in the country is very less for it is very

expensive in comparison to grey cement. In India, while cement is usually utilized for

decorative purposes, marble foundation work, and to fill up the gaps between tiles of

ceramic and marble.

The different types of cement in India have registered an increase in production in the

last few years. Efforts must be made by the cement industry in India and the

government of India to ensure that the cement industry continues innovation and

research to come up with more and more varieties in the near future.

1.6 SCALE OF OPERATIONS

The cement industry has witnessed a significant change in the scale of operations. In

1961, the largest kiln in operation had a capacity of 750 tpd. In 1970, of the total 119

kilns, 1 had over 1,000 tpd capacity, with 55 having less than 400 tpd capacity. In 1980,

11 of the total 141 kilns were over the 1000 tpd mark, with 1 kiln having a capacity

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larger than 3,000 tpd (roughly 1 mtpa). The 1990s saw still higher capacity 4500-5000

tpd (or 1.5 mtpa) kilns. The recent practice for a large size plant is to have 6,500-7,000

tpd (or 2.5 mtpa) capacity.

1.6.1 Industrial production:

The cement industry is enhancing its production levels as new homes and offices are

being built, and in keeping with the economy’s annual growth rate. According to the

Cement Manufacturers Association, the overall cement production rose by 8.11 per cent

during 2010-11 to 168.29 million tonnes (mt) as against 155.66 mt in 2009-10.

Table 1.1 : Statistics

Cement (million tonnes)

    2009-10 2010-2011

    (Apr-Mar)

(a) Production 155.66 168.31

(b) Dispatches (Including Export) 155.26 167.67

(c) Export 3.65 5.89

(d) Cap. Uti. (%) 96 94

Source: Cement Manufacturers’ Association

PRODUCTION SITES OF VARIOUS BRANDS OF CEMENT

BRAND NAME PRODUCTION SITE

Shree Beawer Distt. Ajmer

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Bangur Rass Distt. Pali. Jetaran

Cemento Rass Distt. Pali. Jetaran

Ambuja Rabriyawas Distt. Pali. Jeteran

Binani Pindwada Distt. Sirohi

Ultra Tack Shambhupura Distt. Chittorgarh

Birla Chetak Chittorgarh

Birla Uttam Modak Distt. Kota

J.K. Laxmi Banas Distt.Sirohi

J.K. Super Nimbaheda Distt. Chittorgarh

ACC Lakheri, Distt. Bundi

Table 1.2: Production and growth rates

CEMENT PRODUCTION Weight: 1.99%Month  

Production (Thousand Tonnes) Growth Rates (%)

2008-09 2009-10 2010-11 08-09 to

09-10 09-10to 12-13

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April 12240 13730 14520 12.2 5.8May 12630 13490 14820 6.8 9.9June 12010 13410 14220 11.7 6.0July 11160 12720 13910 14.0 9.4August 11160 11480 13400 2.9 16.7September 10845 12630 13310 16.5 5.4October 12218 13370 14370 9.4 7.5November 11599 12970 13650 11.8 5.2December 12968 14010 14630 8.0 4.4January 13571 14550 15360 7.2 5.6February 12757 13500 15230 5.8 12.8March 14650 15450 16890 5.5 9.3Cumulative Total (Apr-Mar) 147808 161310 174310 9.1 8.1

Source : Department of Industrial Policy & Promotion

1.7 EXPORTS20

The export of Indian cement has increased over the years, giving a boost to the Indian

cement industry. The demand for cement in the foreign countries is a derived demand,

for it depends on industrial activity, real estate, and construction activity. The cement

industry in India has around 300 mini cement plants and 130 large cement plants. The

total production capacity of these plants is around 167.36 million tons. The India cement

industry is technologically very advanced, as a result of which the quality of Indian

cement is now considered the second best in the world. This has given a major boost to

the Indian export of cement. The production of cement in India is not only able to meet

the domestic demand, but large amounts are also exported. A fair amount of clinker and

cement by-products are also exported by India. As the quality of Indian cement is very

good, its demand in the international market is always high.

In 2001-2002, 3.38 million tons of cement was exported from India. That figure stood at

3.47 million tons in 2002-03, and 3.36 million tons in 2003-04. In 2001-2002, 1.76

million tons of clinker was exported from India. In 2009- 2010 clinker exports amounted

to 6.45 million tons, and in 2010- 2011 the figure stood at 9.64 million tons. This shows

that the export of Indian cement has been increasing at a steady pace over the years.

Export of India cement has been mostly to the West Asian countries.

The major companies exporting Indian cement are:

• Gujarat Ambuja

• Ultra Tech Cement

• Aditya Cement

Export of Indian cement has registered growth a fair amount of growth, giving a boost to

the Indian economy. That it continues to rise, more efforts must be made by the cement

industry in India and the government of India.

The types of cement in India have increased over the years with the advancement in

research, development, and technology. The Indian cement industry is witnessing a 21

boom as a result of which the production of different kinds of cement in India has also

increased.

By a fair estimate, there are around 11 different types of cement that are being

produced in India. The production of all these cement varieties is according to the

specifications of the BIS.

1.8 POLICY INITIATIVES

FDI Policy: the cement sector has been gradually liberalized. 100 per cent FDI is now

permitted in the cement industry.

1.9 FUTURE OUTLOOK

Considering an expected production and consumption growth of 9 to 10 per cent, the

demand-supply position of the cement industry is expected to improve from 2009-10

onwards, resulting in an expected price stabilization. The cement industry is poised to

add 111 million tones of annual capacity by the end of 2010-11 (FY 10), riding on the

back of an estimated 141 outstanding cement projects.

1.10 SIGNIFICANT CONSOLIDATIONS

As discussed earlier in this report, the cement industry is witnessing a number of

Mergers & Acquisitions (M&As). The extent of concentration in the industry has

increased over the years.

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This concentration is mainly because of the focus of the larger and the more efficient

units to consolidate their operations by restructuring their business and taking over

relatively weaker units. The relatively smaller and weaker units are finding it difficult to

withstand the cyclical pressure of the cement industry.

Some of the key benefits accruing to the acquiring companies from these acquisition

deals include:

Economies of scale resulting from the larger size of operations

Savings in the time and cost required to set up a new unit

Access to new markets

Access to special facilities / features of the acquired company

Benefits of tax shelter.

The relative market share of large players in the cement industry has changed

significantly over the years. Consolidation of capacities has seen UltraTech, Grasim,

India Cement and Gujarat Ambuja emerging as the leading players in India apart from

ACC, which has been the market leader during all the years excepting FY2001. All the

players have resorted to a combination of Greenfield capacities as well as takeover of

existing capacities for growth.

Some examples of the consolidation witnessed among domestic players in the recent

past include:

Gujarat Ambuja taking a stake of 14 per cent in ACC

Gujarat Ambuja taking over DLF Cements and Modi Cement.

ACC taking over IDCOL

India Cement taking over Raasi Cement and Sri Vishnu Cement

Grasim's acquisition of the cement business of L&T

Grasim taking over Indian Rayon's cement division.

Grasim taking over Sri Digvijay Cements.

L&T taking over Narmada Cements

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1.11 Competitor & Environment Analysis

PORTER’S MODEL

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Figure 1.3: Porter’s model

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PART 2COMPANY OVERVIEWShree Cement Limited

2.1 INTRODUCTIONBeing among the top ten cement producers in the country Shree Cement Limited (SCL)

enjoys a market share of about 16 per cent in Northern region of India. Over the years,

Shree Cement has built an identity as one of the world’s most efficient cement

manufacturers. First of all, its production has been consistently in excess of its rated

capacity. Secondly company’s per tonne energy consumption is one of the lowest in the

world. And also it has a unique distinction of operating both its cement as well as

captive power plant on alternative fuel.

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Table 2.1: Shree- Market Share

The BG Bangur family is the principal promoter of Shree Cement. Mr. H. M. Bangur is

the Managing Director while Mr. M. K. Singhi is the current executive director of Shree

Cement. It is located at Beawar, in Ajmer district 185 Kms. from Jaipur off the Delhi-

Ahmedabad highway.

2.2 Vision of SCLTo register a strong consumer surplus through a superior cement quality at affordable

prices.

2.3 Philosophy of SCLShree Cement is guided by the philosophy that productivity will lead to profitability which

ultimately will lead to the prosperity of the region and all concerned with SCL.

2.4 Mission of SCLThe mission of the organization is highlighted by the following.

To sustain its reputation as the most efficient cement manufacture in the world.27

To strengthen realizations through intelligent brand building.

To drive down cost through innovative plant practices.

To increase the awareness of superior product quality through a realistic and

convincing communications process with consumers.

2.5 SCL manufacturing unitsPresently Shree Cements has three units. Two units are at Beawer (incorporated in

1979 and1997) and third unit is at Ras (Started in 2005). Fourth unit at Ras has been

started in March 2010 and another two units at Ras and Khushkhera near Alwar are

also started to enhance the capacity of the company to 10 mtpa from the present figure

of 6 mtpa by the year 2011. The proximity to Delhi, Jaipur and Haryana, which are the

most lucrative markets in the region, makes it a strategic location.

UNIT-1Incorporated in 1979.

Put up in 1985.

Cement Production (Expected Production) – 1.20 million tonnes

UNIT-2Put up in 1997.

Cement Production (Expected Production) – 2.10 million tonnes

UNIT – 3Incorporated in 2010

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Cement Production (Expected Production) – 1.50 million tonnes

UNIT – 4Incorporated in March 2011

Cement Production (Expected Production) – 1.50 million tonnes

UNIT - 5Started in Ras,

Unit – 6Grinding unit at Kuskhera in Rajasthan.

Figure 2.1: SCL Production vis-à-vis Market Share in Northern Region

The growth of company’s market share is going hand in and with its production,

supporting its cyclical business model of produce more-sell more-reinvestment more.

Capacity enhancement at SCL has also been considerable from its 0.6 mtpa in 1985

growing 10 times to 6 mtpa presently and is projected to touch a figure of 10 mtpa by

2010.

2.6 Business & Managerial Challenges for SCLCement market for SCL is highly competitive with major competitors having advantage

of brand equity, capacity and early movers. The major competitors are Binani, Birla 29

(with products like Birla Super and Birla Chetak), Grasim (with products like Vikram and

Birla Plus), Gujarat Ambuja, JK (with products like JK Nimbahera), Laxmi, Mangalam

(with products like Mangalam and Birla Uttam), ACC, DCM Shriram, L & T and

Kamdhenu. Each of these players has their dominance across whole Rajasthan in

addition to their respective regional dominance.

Another issue is that the product (cement) cannot be differentiated clearly on the basis

of quality and hence, cost plays one of the most important roles in this industry. If the

company can control cost of manufacturing & distribution, then only would profitability of

the company increase.

Logistics is the most important cost associated with cement industry. This is the single

most important reason for strong dominance of all cement companies in the regions

around their factory. But if this system can be improved upon, and costs can be

managed, then Shree Cements Ltd. can strengthen their hold in present states of

distribution as well as look forward to gaining foothold in newer and farther regions.

2.7 Market of SCLEach cement manufacturer has a primary and secondary market. The former is one,

which is the closest to the production centre where it fetches the best realizations while

the latter is usually at a distance where realizations are lower.

Table 2.2: Market Classification for Shree Cements Ltd.

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SCL with a market share of 16% has the second largest market presence in the

northern region, next only to the Gujarat Ambuja Cement and ACC combined. SCL

positioning within Rajasthan (in the north of the state) makes it the closest among all

Rajasthan manufacturers to the lucrative markets of Delhi, Haryana and some parts of

Punjab, giving it a significant edge in transport costs. The other cement units are

located further down, at distances ranging from 150- 200 kilometres.

Shree Cements is one of the largest cement companies in North region having existing

capacity of 5.5mn tonnes of cement per annum located in central Rajasthan. The

company primarily caters to Rajasthan, Punjab, Haryana, Delhi and Uttranchal in the

Northern region and Uttar Pradesh in Central region. Rajasthan accounts for

approximately 30% of the company's sales while Delhi and Haryana together account

for approximately 40% of sales.

2.8 SCL’s Brands & ProductsShree manufactures:

• Ordinary Portland Cement (OPC)

• Red Oxide Cement (ROC)

Its output is marketed under the ‘Shree Ultra Ordinary Portland Cement’ and ‘Shree

Ultra Red

Oxide Cement’ brand names. The product today constitutes almost 37% of SCL’s

sales. Under its premium products category, SCL has launched ‘Bangur Cement’ Dec.

2005 and a new brand

‘Tuff Cemento 3556’ has been introduced in the market in April 2011. The company

positioned its brands around longer life (durability), emphasizing product longevity.

2.9 Strengths of SCL

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1.) Low Cost Producer: SCL is one of the lowest cost producers of cement in India.

The prime reasons behind this are captive power plants, use of pet coke in both captive

power plant and kiln and proximity to the markets.

2.) Limestone Reserve: SCL has a total of 700 mn tones of limestone reserve which

would be sufficient to meet its requirements for the next 40 years. Shree Cement's third

unit is located at the pithead of limestone reserve unlike the other two units in Beawar,

Rajasthan. Unit IV, which is expected to be commissioned in FY08, would also be

located at the pithead of company's limestone reserve. As the new plants are located at

the pithead of limestone reserve, the raw material cost per ton of cement is expected to

go down as the company would be saving in cost of transportation.

3.) Captive Power Plants: During FY05, the company sourced 99% of power

requirement from its captive power plant. The company has existing power plant

capacity of 42 MW. The company is installing additional power plant of 18 MW

capacities, which would supply power to its new cement units, thereby ensuring

continuation of self sufficiency in terms of power requirement. Shree Cement's power

usages per ton of cement at 75 Kwh is amongst the lowest in the industry. The

company uses low cost pet coke in both its power plants and kiln. Pet coke is not only

cheaper compared to the imported coke but also has high calorific values thereby

reducing the overall cost.

4.) Strong sales network of 28 sales offices, 1200 dealers and 4000 retailers.

5.) Progressive Management: Shree Cement supplemented its attractively low capital

investment per tonne with one of the lowest manufacturing costs in the Indian cement

industry. The path of sustainable growth has been made possible because of

management strategy of taking triple bottom-line approach of Economic, Environmental

and Social performance listed below:

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6.) Mining: Limestone being the predominant raw material, Shree Cement plants are

situated near limestone quarry fields. To minimize the transportation cost, Shree

Cements has leased two mines one at Beawer and other at Ras with reserves that will

last for a long time. The Ras mines give a limestone of very good quality which is easier

to process.

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2.10 SCL’s Manpower profile

Well experienced and skilled manpower resources capable of handling both

project implementation and operations.

The skill enhancement is a regular exercise under a well defined training manual.

Company imparts more than 20,000 hours of in-house training to its employees

every year

Figure 2.5: Manpower profile at SCL

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2.11 Key Operational Highlights The cost of production of the Company is one of the lowest in India

Operating profit margin is highest in World Cement Industry

100% self sufficiency in meeting power requirement

100% self dependent on limestone sourcing

Consistent dividend paying company

Recognized as one of the most Energy Efficient units in India

Strong brand image – Bangur Cement, Shree Ultra Red Oxide Cement and

Shree Ultra Ordinary Portland Cement have high consumer recall. New super

premium brand Tuff Cemento produced with German technology has a lot of

expectations.

Initiatives for global warming reduction

Pioneered in the application of innovative Electro static precipitator technology in Dg power generation to save fuel and combat pollution, and replaced HSD by LDO.

Achieved unity power factor

… In electrical distribution system to reduce maximum demand, and transmission / distribution losses

Partial utilization of waste heat

35

… For 3 MW power generation.

Initiator in the use of pet coke for power generation in India

36 MW captive thermal power plant under commissioning to generate quality power for the plant, avoid transmission and distribution losses, and provide surplus power to Rajas than.

SAVINGS: Rs 496.46 Million pa

Development of DD conesIn house development of deduiling cones cyclones resulting in reduction in pressure drop, higher outputs and lower energy consumption.

Single roller press for tow Ball Mills

Capacity enhancement & utilization of CM –2 Roller press for capacity increase and energy saving increase CM –1, Energy saving –2.02 KWH / The

Objective, CSI (Cement sustainability initiative)

1. The purpose of the Cement Sustainability Initiative is to:2. Explore what sustainable development means for the participating companies

and the cement industry.3. Identify and facilitate actions that companies can take as a group and individually

to accelerate the move towards sustainable development.4. Provide a framework through which other cement companies can participate,

and5. Provide a framework for engaging external stakeholders.

Agenda, CSI

The 10 companies involved in the CSI have chosen to develop an agenda for three reasons:To prepare for a sustainable future by making a more efficient use of natural resources and energy, and engaging with lock issues increase emerging market

To meet the expectations of stakeholders and maintain their ‘license to operate’ increase communities across the world through a greater transparency of operations effective engagement with society and initiating action, which lead to sustained positive changes, and

To individually understand and build new market opportunities through process innovation, which achieve greater resource/ energy efficiency and long – term coos

36

savings; product and service innovation to reduce environment impacts and work with other industries on novel uses of – product and waste material in cement production.

The companies have identified six key areas where they believe that the CSI can make a significant contribution towards a more sustainable society:

Climate protection.

Fuels and raw materials.

Employee health and safety.

Emissions reduction.

Local impacts.

Internal business processes.

Productivity

Shree Cement supplemented its attractively low capital investment per tonne with one of the lowest manufacturing costs in the Indian cement industry.

Timely execution of Unit-III along with better price realization and cost optimization measures made the year a hallmark for the Company:-

The turnover of the Company has more than doubled during the year. The operating profit margin of the Company at 44.84% is highest in the Indian

cement industry. The proportion of blended cement in the total production has increased to 76% in

the current year against 54% in the previous year. Company started use of wet fly ash for producing blended cement which is economical and environment friendly.

The capacity utilization level of the Company further improved during the year from 114% to 116% with Unit-III recording 99% in its very first full year of operation. This compares well with the all India average of 94%.

Continued thrust on improving energy consumption levels has brought down power and fuel consumption as under:

37

 

Although Power consumption for the year indicates marginal increase during the year, the unit-wise consumption has gone down from last year. The

Reduction in energy consumption with increasing production base has significantly contributed to cost efficiency of the Company.

Dynamic and efficient logistic management practices have enabled Company to contain increase in freight cost in spite of rising diesel prices and loading restrictions on trucks. Company has made optimal use of its in-house railway sidings facility with appropriate route plan to limit freight cost.

The Company's marketing strategy of maintaining multiple brands competing with each other with a view to garner increased market share has yield good returns. As a result,

Company has retained market leadership status in Rajasthan and Delhi.

“Jung Rodhak” brand has further strengthened its presence in its segment in the North India market.

“Bangur Cement” launched last year in the premium quality segment, has been well received in the market and has been improving its market share. Its marketing strategy of appointment of Business associates and Business partners has enabled the Company to keep its debtors levels at zero and minimizing the Working Capital requirement.

Company has introduced another premium quality brand “Tuff Cemento 3556”. The new brand has started attracting customer’s attention and is getting good response.

The proportion of trade sale to total sale increased during the year from 66% to 74% showing higher customer recall and satisfaction.

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The Company continued with its highest credit rating of PR1+ for its short-term debt and AA for its long-term debt enabling containment of its cost of funds despite large borrowing requirements for its capital expenditure programme

The interest cost has been kept at a low level in the rising interest rate environment through optimal utilization of funds and judicious mix of rupee and fully hedged foreign currency borrowings.

Timely execution of projects is a hallmark of the Company. The 1.5 MTPA capacity expansion with captive power plant of 18 x 3 MW completed in Feb 08 has been achieved well within the targets both time and budget.

During the year Company has undertaken implementation of an “Enterprise Resource Planning” (ERP) Project with Oracle E-Business Suite to manage its expanding business operations. ERP Project shall help it in improving its business matrices by process optimization, improving logistics and integration across disciplines. The project is expected to be operational in FY 2010-11

2.12 Recognition and Awards• Whitehopleman UK - International Cement Consultants have consistently maintained 4

star rating for Shree since 2000 (No one in the world has been assigned a 5 star

rating!!)

• Excellence in Energy Management Award 2006 from Confederation of Indian Industry

for the second time

• National Awards for Energy Conservation and Best Thermal and Electrical Energy

from

Ministry of Power, Govt of India

• National Safety Awards by Ministry of Labour, Govt. of India

• ICWAI National award 2008 for excellence in cost management

• Golden Peacock Award-2009 &2010 in recognition of its excellent Environment

Management practices

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2.13 SCL vis-à-vis CompetitorsSCL has been omnipresent in the performance with various achievements within a short

period of time. Following figures suggests that it has been doing the best job among its

peers in terms of high capacity utilization, low power consumption, low power

generation cost, and low fuel consumption ratio.

Table 2.4: SCL figures vis-à-vis competitors

It has also been encountering the lowest Variable Cost in its peer group because of its

constant efforts in saving cost of power and fuel consumption which is not only the

40

lowest but is approx. 75% of the average of other players. Freight and selling expenses

of for SCL is also the lowest amongst all.

Table 2.5: SCL’s Variable Cost Comparison with others

SCL’s ability to produce cement with lowest power consumption and other low costs of

production and raw material procurement has resulted into the top EBITDA Margin

figures for SCL amongst all its competitors.

41

Figure 2.6: Power Cost Comparison

Figure 2.7: EBITDA Margin Comparison

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2.14 Information Technology at SCLSCL has embraced Information Technology in a big manner and made investments to

establish strong IT infrastructure:

• IT Policy & Quality Standards: SCL has clearly defined IT policy. Backup and

Disaster

Recovery Policy, SCL Internet/Network Access Policy and Business Continuity Plans

have been endorsed and religiously implemented.

• ‘SUMriddhi’ - Shree Enterprise Resource Planning: The Shree ERP programme,

christened ‘SUMriddhi’, was developed deploying Oracle 9i RDBMS and Developer

2000 platform. A comprehensive ERP program was designed to integrate all functional

modules, namely Financial Accounting & Costing (FA), Material Management (MM),

Personnel and Payroll (PP), Laboratory and Quality Control, Integrated Management

System (IMS) and Raw Material Procurement (RMP) with the objective to make

43

operations online. The company expects to implement ERP ‘live’ across the

organisation in 2010-11.

• Online operations of Sales and Distribution: Company successfully implemented

the computerization of its sales and distribution functions by integrating all

branches/dealers through a secured connectivity with the plant for online order

processing. In the second phase, necessary enhancements will make the system work

in a centralized manner using dedicated and secure Virtual Private Network (VPN)

across its branch/dealer network.

• SCL’s IT Infrastructure: The Company has a scalable, state-of-the-art IT network

infrastructure, with optic fibre cable-based gigabit backbone, high-end layer 3

swSHREE CEMENThes, Cisco routers and IBM corporate-computing servers. Shree

has a secure network across its corporate and site locations with e-trust firewall

supplemented with intrusion detection system and Active Virus Defense Solution from

Network Associates. The organisation is provided with the latest computing tools in

hardware and software.

• SCL’s corporate website: The Company launched its content-exhaustive corporate

website shreecement.com on 1 August 2003. The portal is dynamic, informative and

user-friendly with a menu-driven interface. The website contains the latest information

about the company with news flashes and a photo gallery. The website is e-commerce

enabled, which provides access to customers on their latest account statement and

vendors/ suppliers on order positions for the e-procurement program.

• E-Procurement: Shree implemented an e-procurement programme to facilitate

purchases through the reverse auction process to maximize price benefits and

transparency.

• Paperless office: Shree is moving towards the ultimate goal of achieving a paperless

office environment through a widespread use of e-mails and instant messaging for daily

communication across all its offices. A program was undertaken for storing and

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cataloguing the huge archive of blueprints of technical drawings in a digitised form for

instant accessibility.

• Raw material procurement: The entire raw material procurement operation was

integrated with ‘SUMriddhi’ - Shree ERP, to increase efficiency and control.

• Training: Shree is committed to enhance the IT skills of not only employees across all

functions but their family members as well. As a result, training is an ongoing process

and more than 200 personnel were imparted training across departments.

• Online Knowledge management: Shree has launched a platform for sharing

knowledge across the enterprise. A knowledge management tool was developed and

implemented through which people across all levels can contribute and share

achievements, domain expertise, social and cultural ideas. This also provides a ‘public

folder’ for up-to-date information on the cement industry and the company.

• Network Security: SCL network is protected by the high end e-Trust Firewall from

Computer Associates and Network Associates Intrusion Detection System (IDS). SCL

has implemented Network Associates Active Virus Defence for virus protection and

SPAM control. All network resources are protected by adopting strong password

policies. SCL has enforced three-layer security for all data and information systems.

2.15 Bangur Cement – SCL’s Premium Brand

45

Bangur cement started with a vision to be the most effective and efficient cement brand

of the country. As in Bangur cement, SCL aimed at providing the best quality cement

that ensures customer satisfaction. The Bangur cement is advertised with a tagline

saying “The best, not inexpensive”.

To serve the fast growing National Capital Region (NCR) with immediate and prompt

services, Bangur cement is establishing a grinding capacity at Khuskhera in Alwar

District of Rajasthan, which is just 80 kms away from the capital. Excelling in the quality,

price, availability and packaging of the product, SCL aspires to be the first choice of the

consumers. The Bangur cement plant is one of the most modern and sophisticated

plants in the India equipped with state-of-the-art German Technology.

Following factors makes Bangur cement, the SCL’s premium brand:

Best Quality of Lime Stone: The Ras belt is among the finest quality limestone

deposits in India. Importantly, it is a single source of limestone belt where all

necessary ingredients of cement are available in limestone and there is no

dependency on outside sources, thus enabling consistency in quality.

Better Quality Control, Clinkerisation and superior cement grinding makes the

quality of the brand one of the best in the industry. State-of-the-art technology: The plant has been set up in the technical

collaboration with internationally acclaimed German cement manufacturer.

In line with its marketing strategy, Bangur cement realized sales predominantly in the

trade segment. The brand contribution to more then 40% of the trade sale of the

company, registering 14.20 Lac MT sales out of the total of 35.92 Lac MT .In fact ,

trade sales accounted for 95% of total sales of BANGUR CEMENT while non trade

sales was just 5%. BANGUR CEMENT registered its 55% sales of its total sales in its

46

home market, Rajasthan. By selling within a smaller radius, the company was able to

notch higher net realization because of lower logistics.

MARKET SHARES: - Rajasthan-9%, Haryana-6%, Delhi-4%.

2.16 COMPARISON OF POTENTIALITYOF VARIOUS CEMENT BRANDS

COMPARISON OF POTENTIALITY OF VARIOUS CEMENT BRANDS IN RAJASTHAN

BRAND NAME SALES (IN MATRIC TONES)

AMBUJA 121000

ULTRA-TACH 145000

BINANI 103000

BANGUR 55000

SHREE ULTRA 100000

TUFF CEMENTO 40000

J.K.LAXMI 83000

ACC 17000

MANGLAM 40000

BIRLA CHETAK 81000

J.K.SUPER 65000

SHREE RAM 6000

COMPARISON OF POTENTIALITY OF VARIOUS CEMENT BRANDS IN RAJASTHAN (IN TRADE)

47

BRAND NAME SALES (IN MATRIC TONES)

  JAIPUR DISTRICT JAIPUR LOCAL

AMBUJA 25000 17000

ULTRA-TACH 26000 14000

BINANI 12000 10000

BANGUR 6500 4000

SHREE ULTRA 8500 7500

TUFF CEMENTO 4500 3000

J.K.LAXMI 7500 5500

ACC 4500 3000

BIRLA UTTAM 4000 3000

BIRLA CHETAK 5000 3000

J.K.SUPER 6500 5000

Figure 2.8 COMPARISON OF POTENTIALITY OF VARIOUS CEMENT BRANDS IN RAJASTHAN (IN TRADE)

48

49

Factors Affecting Recruitment process :-

Factors which affect the recruitment process can be classified into two heads:-

External Factors -

Supply and demand

Unemployment rate

Labor market

Political - social

Image

Internal Factors -

Recruitment policy

Human resource planning

Size of the firm

Cost

Growth and expansion

These are the main recruiting stages

Sourcing

1. advertising, a common part of the recruiting process, often encompassing

multiple media, such as the Internet, general newspapers, job ad newspapers,

50

professional publications, window advertisements, job centers, and campus

graduate recruitment programs.

2. recruiting research, which is the proactive identification of relevant talent who may

not respond to job postings and other recruitment advertising methods done in. This

initial research for so-called passive prospects, also called name-generation, results

in a list of prospects who can then be contacted to solicit interest, obtain a resume/CV,

and be screened .

Screening & selection

Suitability for a job is typically assessed by looking for skills, e.g. communication,

typing, and computer skills. Qualifications may be shown through résumés, job

applications, interviews, educational or professional experience, the estimony of

references, or in-house testing, such as for software knowledge, typing skills ,

numeracy, and literacy, through psychological tests or employment testing. In

some countries, employers are legally mandated to provide equal opportunity in

hiring. Agencies are particularly suitable for recruitment of executives and specialists.

It is also known as RPO (Recruitment Process Outsourcing)

Definition of selection

Select mean to choose. Selection is the process of picking individuals who have

relevant qualifications to fill jobs in an organisation. The basic purpose is to

choose the individual who can most successfully perform the job from the pool of

qualified candidates.

The purpose of selection is to pick up the most suitable candidate who would

meet the requirements of the job in an organisation best, to find out which job

applicant will be successful, if hired. To meet this goal, the company obtains and 51

assesses information about the applicants in terms of age, qualifications, skills,

experience, etc. the needs of the job are matched with the profile of candidates. The

most suitable person is then picked up after eliminating the unsuitable applicants

through successive stages of selection process. How well an employee is

matched to a job is very important because it is directly affects the amount and

quality of employee’s work. Any mismatched in this regard can cost an organisation

a great deal of money, time and trouble, especially, in terms of training and operating

costs. In course of time, the employee may find the job distasteful and leave in

frustration.

The Process

Selection is usually a series of hurdles or steps. Each one must be successfully

cleared before the applicant proceeds to the next one. The time and emphasis

place on each step will definitely vary from one organization to another and indeed,

from job to job within the same organization. The sequence of steps may also vary

from job to job and organization to organization.

For example :- some organizations may give more importance to testing while others

give more emphasis to interviews and reference checks. Similarly a single brief

selection interview might be enough for applicants for lower level positions, while

applicants for managerial jobs might be interviewed by a number of people.

A company is known by the people it employs. In order to attract people with talents,

skills and experience a company has to create a favourables impression on the

applicants’ right from the stage of reception. Whoever meets the applicant

initially should be tactful and able to extend help in a friendly and courteous way.

Employment possibilities must be presented honestly and clearly. If no jobs are

available at that point of time, the applicant may be asked to call back the

personnel department after some time.

52

The selection process can be successful if the following requirements are satisfied

1. Someone should have the authority to select. This authority comes from the

employment requisition, as developed by an analysis to the workload and work force.

2. There must be some standard of personnel with which a Prospective employee

may be compared, i.e. a comprehensive job description and job specification should

be available before hand.

3. There must be a sufficient number of applicants from whom the required

number of employees may be selected.

The ability of an organization to attain its goal effectively and to develop in a

dynamic environment largely depends upon the effectiveness of its selection

programme. If the right person is selected, he is valuable asset to the organization

53

BARRIERS TO EFFECTIVE SELECTION The main objective of selection process is to hire people having competence and

commitment towards the given job profile. But due to some reason the main

purpose of effectively selecting candidates is defeated. These reasons are:

1: Perception or the Halo effect:- Many a times the interviewer selects a

candidate according to the perception he has or he made up while talking or looking

at the individual. This way he does not see through the caliber or the efficiency of

the individual and many times it leads to the selection of the wrong candidates.

2: Fairness:- During the selection process the interviewer does not select the

individual on the basis of his knowledge and hence the right type of the candidates is

not selected.

3: Pressure:- The people from the HR department and also have a lot of

pressure from the top management and from other top class people for selecting

the candidates they want. This ways the purpose of effective selection process

of effective selection process is defeated as they have to select that individual

whether or not he is capable of the job. that is being offered.

SELECTION PROCEDURE

Selection procedure employs several methods of collecting information about

the candidates qualifications , experience, physical and mental ability, nature and

behavior, knowledge and aptitude for judging whether a given applicant is suitable

or not for the job. Therefore the selection procedure is not a single act but is

essentially a series of methods or stages by which different types of information can

be secured through various selection techniques. At each step facts may come to

light, which are useful for comparison with the job requirement and employee

specifications54

IN DETAIL EXPLANATION

(A) JOB ANALYSISJob analysis is the basis for selecting the right candidates. Every organization should

finalize the job analysis, job description, job specification and employee specifications

before proceeding to the next step of selection essentially a series of methods or

stages by which different types of information can be secured through various

selection techniques. At each step facts may Come to light, which are useful for

comparison with the job requirement and employee specifications.

(B) HUMAN RESOURCE PLANEvery company plans for the required number of and kind of employees for a

future date. This is the basis for recruitment function.

(c) RECRUITMENTRecruitment refers to the process of searching for prospective employees and

stimulating them to apply for jobs in an organization. It is the basis for the

remaining technologies of the screening the candidates in order to select the

appropriate candidates for the jobs

.

(D) DEVELOPMENT OF BASES FOR SELECTIONThe company has to select the appropriate candidates from the pool of applicants.

The company develops or borrows the appropriate bases/techniques for screening

the candidates in order to select the appropriate candidates for the jobs.

(E) APPLICATION FORM:Application form is also known as application blank. The techniques of application

blank are traditional and widely accepted for securing information from the

prospective candidates. It can also be used as a device to screen the candidates at

the preliminary level. Many companies formulate their own style of application forms

55

depending upon the requirement of information based on the size of the

company, nature of business activities, type and level of the job etc. Information is

generally required on the following items in the application forms:

1. Personal background

2. Educational qualifications

3. Work experience

4. Salary (drawing and expecting)

5. Personal attainments including likes and dislikes

6. References

(F) WRITTEN EXAMINATION:Organizations have to conduct written examination for the qualified candidates after

they are screened on the basis of the application blanks so as to measure the

candidate ability in arithmetical calculations, to know the candidate attitude towards

the job, to measure the candidate s aptitude, reasoning, knowledge in various

disciplines, general knowledge and English language.

(G) PRELIMINARY INTERVIEW:

The preliminary interview is to solicit necessary information from the prospective

applications and to assess the applicant suitability to the job. An assistant in

the personnel department may conduct this preliminary interview. The information

thus provided by the candidate may be related to the job or personal specifications

regarding education, experience, salary expectations, attitude towards job, age,

physical appearance and other requirements etc. Thus preliminary interview is

useful as a process of eliminating the undesirable and unsuitable candidates. If a

candidate satisfies the job requirements regarding most of the areas, he may be

selected for further process. Preliminary interviews are short and known as stand up

interviews or sizing up of the applicants or screening interviews. However, certain

required amount of care is to be taken to ensure that the desirable workers are

not eliminated. This interview is also useful to provide the basic information about

the company to the candidate.

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(H) BUSINESS GAMES:Business games are widely used as a selection technique for selecting

management trainees, executive trainees and managerial personnel at junior, middle

and top management positions. Business games help to evaluate the applicants

in the areas of decision-making, identifying the potentialities, handling the situations,

problem- solving skills, human relations skills etc. participants are placed in a

hypothetical work situation and are required to play the role situations in the game.

The hypothesis is that the most successful candidate in the game will be most

successful one on the job

.

(I) GROUP DISCUSSION is used in order to secure further information regarding

the suitability of the candidate for the job. Group discussion is a

method where groups of the successful applicants are brought around a conference

table and are asked to discuss either a case study or subject matter. The candidates

in the group are required to analyze, discuss, find alternative solutions and select the

sound solution. A selection panel thenobserves the candidates in the areas of

initiating the discussion, explaining the problem, soliciting unrevealing information

based on the given information and using common sense, keenly observing the

discussion of others, clarifying controversial issues, influencing others, speaking

effectively, concealing and mediating arguments among the participants and

summarizing or concluding aptly.

The selection panel, based on its observation, judges the candidate skill and ability

and ranks them according to their merit. In some cases, the selection panel may also

ask the candidates to write the summary of the group discussion in order to know the

candidate writing ability as well.

Types of test:Tests are classified into six classes, each class is again divided into different types of

tests. They are:

57

APTITUDE TESTS:

These tests measure whether an individual has the capacity or latent ability to learn a

given job if given adequate training. Aptitudes can be divided into general and mental

ability or intelligence and specific aptitudes such as mechanical, clerical, manipulative

capacity etc. General aptitude test is of two types namely intelligence quotient (IQ)

and emotional quotient (EQ).

(1) Skill tests:

These tests measure the candidate ability to do a job perfectly and intelligently.

These tests are useful to select the candidates to perform artistic jobs, product

design, design of tools, machinery etc. The candidates can be selected for assembly

work, testing and inspection also.

(2) Mechanical aptitude tests:

These tests measure the capabilities of spatial visualization, perceptual speed and

knowledge of mechanical matter. These tests are useful for selecting apprentices,

skilled, mechanical employees, technicians etc.

(3) Psychomotor tests:These tests measure abilities like manual dexterity, motor ability and eye hand

coordination of candidates. These tests are useful to select semi-skilled workers and

workers for repetitive operations like packing and watch assembly.

(4) Clerical aptitude tests:These types of tests measure specific capacities involved in office work. Items of this

tests include spelling, computation, comprehension, copying, word measuring etc.

58

ACHIEVEMENT TESTS:

These tests are conducted when applicants claim to know something as these tests

are concerned with what one has accomplished. These tests are more useful to

measure the value of a specific achievement when an organization wishes to employ

experienced candidates. These tests are classified into (a) job knowledge test and (b)

work sample test. Thus, the candidate achievement in his career is tested regarding

his knowledge about the job and actual work experience.

SITUATIONAL TESTS :

This test evaluates a candidate in a similar real life situation. In this test the

candidate is asked either to cope with the situation or solve critical situations of the

job.

(1) Group discussion:This test is administered through the group discussion approach to solve a problem

under which candidates are observed in the areas of initiating, lead ing, proposing

valuable ideas, conciliating skills, oral communicating skills, coordinating and

concluding skills.

(2) In basket:Situational test is administered through in basket method. The candidate in this test is

supplied with actual letters, telephone and telegraphic message, reports and

requirements by various officers of the organization, adequate information about the

job and organization. The candidate is asked to take decisions on various items based

on the in basket information regarding requirements in the memoranda.

59

INTEREST TESTS:These tests are inventories of the likes and dislikes of candidates in relation to work,

job, occupations, hobbies and recreational activities. The purpose of this test is to find

out whether a candidate is interested or disinterested in the job for which he is a

candidate and to find out in which area of the job the candidate is interested. The

assumption of this test is that there is a high correlation between the interest of a

candidate in a job and job success. Interest inventories are less faked and they may

not fluctuate after the age of 30

.

PERSONALITY TESTS:These tests prove deeply to discover clues to an individual value system, his

emotional reactions and maturity and characteristic mood. They are expressed in

such traits like selfconfidence, tact, distrust, initiative, emotional control, optimism,

decisiveness, sociability,conformity, objectivity, patience, fear, judgment dominance or

submission, impulsiveness, sympathy, integrity, stability and self-confidence.

(1) Objective tests: Most personality tests are objective tests as they are suitable for

group testing and can be scored objectively.

(2) Projective tests: Candidates are asked to project their own interpretation of

certain standard stimulus basing on ambiguous pictures, figures etc. under these

tests. Personality tests have disadvantages in the sense that sophisticated

candidates can fake them and most candidates give socially acceptable answers.

Further, personality inventories may not successfully predict job success. A number of

corrective measures tried as personality inventories are widely subject to faking. They

are:

1. Forced choice of Edward personnel preference schedule.

2 .Gordon personal profile.

3. The Minnesota Multi-phase Inventory offers different methods

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MULTI-DIMENSIONAL TESTING:

However, the need for multi-skills is being felt be most of the companies consequent

upon globalization, competitiveness and the consequent customer centered

strategies. Organization have to develop multidimensional testing in order to find

out whether the candidates possess a variety of skills or not, candidate ability to

integrate the multi-skills and potentiality to apply them based on situational and

functional requirement.

INTERVIEW

Final interview follows after tests. This is the most essential step in the process of

selection. In this step the interviewer matches the information obtained about the

candidate through various means to the job requirements and to the information

obtained through his own observation during the interview. The different types of

interviews are:

PRELIMINARY INTERVIEW:

(1) Informal interview: This is the interview, which can be conducted at any place

by the person to secure the basic and non-job related information. The interaction

between the candidate and the personnel manager when the former meets the latter

to enquire about the vacancies or additional particulars in connection with the

employment advertisement is an example of the informal interview.

(2) Unstructured interview:In this interview, the candidate is given the freedom to tell about himself by revealing

his knowledge on various items/areas, his background, expectations, interest etc.

Similarly, the interviewer also provides information on various items required by the

candidate.

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DECISION-MAKING INTERVIEW:

After the experts including the line managers of the organization in the core areas of

the job examine the candidates, the head of the department/section concerned

interviews the candidates once again, mostly through informal discussion. The

interviewer examines the interest of the candidate in the job, organization Reaction

adaptability to the working complaining, promotional

opportunities, work adjustment and allotment etc. The personnel manger also

interviews the candidates with a view to find out his reaction/acceptance regarding

salary, allowances, benefits, promotions, opportunities etc. The head of the

department and the personnel manager exchange the view and then they jointly

inform their decision to the chairman of the interview board, which finally makes the

decision about the candidate s performance and their ranks in the interview. Most of

the organizations have realized that employee s positive attitude matters much rather

than employee s skill and knowledge. Employees with positive attitude contribute

much to the organization.Hence, interviewers look for the candidates with the right

attitude while making final decision.

(J) MEDICAL EXAMINATION:Certain jobs require certain physical qualities like clear vision, perfect hearing unusual

stamina, tolerance of hardworking conditions, clear tone etc. Medical examination

reveals whether or not a candidate possesses these qualities. Medical examination

can give the following information:

1. Whether the applicant is medically suited for the specific job

2. Whether the applicant has health problems or psychologica attitudes like

ly to interfere with work efficiency or future attendance

3. The offer. Whether the applicant suffers from bad health which should be

corrected before he can work satisfactorily

4.It reveals the applicant physical measurements

5. It is used to check the special senses of the candidates.

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(K) REFERENCE CHECKS:

After completion of the final interview and medical examination, the personnel

department will engage in checking references. Candidates are required to give the

names of references in their application forms. These references may be from the

individuals who are familiar with the candidates academic achievement or form the

applicant s previous employer, who is well versed with the applicant job

performance, and sometimes from coworkers. Incase the reference check is from

the previous employer; information for the following areas may be obtained. They

are job title, job description, and period of employment, pay and allowances, gross

emoluments, benefits provided, rate of absence, willingness of the previous employer

to employ the candidate again and soon Further, information regarding candidate s

regularity at work, character, progress etc. can be obtained. Often a telephone call

is much quicker. The method of mail provides detailed information about the

candidate performance, character and behavior.

However, a personal visit is superior to the mail and telephone methods and is used

where it is highly essential to get the detailed, actual information, which can also be

secured by observation. Reference checks are taken as a matter of routine and

treated casually or omitted entirely in many organizations. But a good reference check

used sincerely will fetch useful and reliable information to the organization.

(L) FINAL DECISION BY THE LINE MANAGER:The line manager concerned has to make the final decision whether to select or reject

a candidate after soliciting the required information through techniques discussed

earlier. The line manager has to take much care in taking the final decision not only

because of economic implications but also because of behavioral and social

implications. A careless decision of rejecting would impair the morale of the people

and they would suspect the selection procedure and the basis of selection of this

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organization. A true understanding between line managers and personnel

managers should be established to take proper decisions.

(M) JOB OFFER:Thus, after taking the final decision, the organization has to intimate this decision to

the successful as well as unsuccessful candidates. The organization offers the job to

the successful candidates either immediately or after some time depending upon its

time schedule. The candidate after receiving job offer communicates his acceptance

to the offer or requests the company to modify the terms and conditions of

employment or rejects the offer.

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DATA ANALYSIS AND INTERPRETATION

1. How do you recruit the employees?

S.NO Particulars No.of Respondents Percentage

1. Internal 14 70

2. External 6 30Total 20 100

Interpretation: From the above table 70% of the employees are recruiting internally and 30% of the employees are recruiting externally.

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2. If external how do you recruit the employee?

S.NO Particulars No.of Respondents

Percentage

1. Through agencies 12 60

2. Through reference 4 203. Casual application 2 104 Data banks 2 10

Total 20 100

Interpretation: From the above table 60% of the employees are through agencies and 20% of the employees through reference, 10% of the employees from casual applications and 10% of the employees are recruiting data banks.

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3. How will you inform the vacancy position of the job to internal conditions?

Interpretation: from the above table 60% of the respondents responded about the information of vacancy position is through notice board, 30% said through department head and 10% said through word of mouth.

S.NO Particulars No.of Respondents Percentage

1. Through word of mouth

2 10

2. Notice board 12 603. Department

heads 6 30

Total 20 100

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4. What are the major sources for identification of candidates for recruitment?

S.NO Particulars No.of Respondents Percentage

1. Through adds 12 60

2. Internet 6 303. Consultants 2 10Total 20 100

Interpretation: From the above table we concluded that 60% fo the respondents recruited through ads and 30% fo the candidates recruited internet and 10% of the candidates recruited consultants.

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5. Who are involved in the manpower planning?

S.NO Particulars No.of Respondents Percentage

1. Department heads

4 20

2. HR department 10 503. Above two 6 30Total 20 100

Interpretation: From the above table 50% of the employee said HR department will participate in the manpower planning, 30% of the employee said both the department heads and HR department and 20% of the employees said department heads.

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6. How frequently do the companies recruit the employee?

S.NO Particulars No.of Respondents Percentage

1. Quaterly 2 10

2. Half yearly 2 103. Annually 4 204. Whenever

required 12 60

Total 20 100

Interpretation: From the above table we concluded the employees 10% quarterly, 10% half yearly, 20% annually and 60% of employee recruiting whenever required.

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7. What is your level of satisfaction regarding the present recruitmentpolicy?

Interpretation: From the above table we concluded that the present recruitment policies are 70% satisfied, and the 30% are needs improvement of the recruitment policy

8.Do you feel any improvements in the present recruitment process?

S.NO Particulars No.of Respondents Percentage

1. Satisfied 14 70

2. Need improvement

6 30

Total 20 100

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Interpretation: From the above table we concluded the improvement in the present recruitment policy to recruit 90% of yes and 10% of no above all for the improvement in the present recruitment policy

S.NO Particulars No.of Respondents Percentage

1. YES 18 90

2. NO 2 10Total 20 100

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9. Does the company deserve the campus selection?

Interpretation: From the above table 85% of the employees said ‘Yes’ about the campus selection in the organization and the remaining 15% said ‘No’

S.NO Particulars No.of Respondents Percentage

1. YES 17 85

2. NO 3 15Total 20 100

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10.Which type of interview do you follow for selecting the employees?

Interpretation: From the above table 70% of the employee said structured interviews while selecting employee and 10% of the employee said stress in the organisation.

S.NO Particulars No.of Respondents Percentage

1. Structured 18 90

2. Unstructured 0 03. Stress 2 10Total 20 100

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11.Do you face any hurdles in selection process?

Interpretation: From the above table 100% of the employees said ‘No’ about the recruiting employee in the organisation.

12. What do you think about the recruitment process in SHREE CEMENT Limited?

sS.NO Particulars No.of Respondents Percentage

1. YES 0 0

2. NO 20 100Total 20 100

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Interpretation: From the above table 70% of the employees said Good about the recruitment process, 20% of the employee ‘Excellent’ and the 10% of the employees ‘Fair’ in the organisation.

13.What factors do you most consider while selecting the employees?

S.NO Particulars No.of Respondents Percentage

1. Excellent 4 20

2. Good 14 703 Fair 2 10Total 20 100

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Interpretation: From the above table we conclude considered the selecting 25% subject, 20% of selecting willingness and 55% of selecting in suitability.

S.NO Particulars No.of Respondents Percentage

1. Subject 5 25

2. Willingness 4 203. Suitablity 11 55Total 20 100

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RECRUITMENT AND SELECTION PRACTICES AT SHREE CEMENT

Human Resource Management at SHREE CEMENT:HRM practice of SHREE CEMENT is the one among the practices followed by the large firms of India. The present chapter deals with the topic of HRM philosophy, HRM policy and the functions of HRM department, Human resource planning process after covering these aspects the chapter will be followed by the recruitment and selection practices of the organisation.

HRM Philosophy: Employees are the valuable resources of the organisation Relationship between different groups so that work is performed effectively. Eliminating waste and improper use of human resource. Human Resource Management Policy. Employees are provided with welfare activities to increase their quality and work life. Employees are provided with necessary training facility, so as to improve their skills. Then ultimately resulting in improved productivity and personnel development.

Functions of Human Resource Management Department

The HR Department looks after the following functions administration of the welfare facilities, reports, loans, advances, transfer, assignment etc. Deals with matter relating to recruitment and selection administration of HRD activities, matter relating to discipline. The Process of Human Resource Planning HRP consists of the following steps;

Analyzing the organisational plans Demand Forecasting: Forecast the overall human resource requirements in

accordance with the organizations plans. Supply forecasting obtaining the data and information about the present inventory of

Human Resource and Forecast the future changes in present Human Resource inventory

Estimating the human resource requirementsRecruitment and Selection Practices at SHREE CEMENT

SHREE CEMENT company recruitment and selection practice is similar to that of the large organisations. Through these practices the HRM department is able to meet the requirements of the organisation. Recruitment and selection process in SHREE CEMENT.

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Position or job vacancy Approval for filling the vacancy/manpower planning Notification of vacancy through advertisements/consultants or agencies Sources of Recruitment

SHREE CEMENT Recruitment Sources are Advertisements Deputation or contract Recruitment consultants. Promotions Transfer.

From these sources as organisation receives the applications for the specified requirements to fill the vacancy. Based upon the departments’ specification a job analysis process will be done by the HRD department accordingly.

On receiving the approval from MD and CEO the HRD initiates the process by advertising the local news paper and national papers depending upon the manpower recruitment or it may be referred to the recruitment consultants, for receiving the suitable applications.

Selection Process in SHREE CEMENT Interviews:

SHREE CEMENT used to recruit through interviews to security the suitable candidate since its inception by selecting the best required from those who are selected in the interviews. Written test was the first step in the selection process and follows with the personal interview. The selected candidates from the written test and the personal interview have to go through group discussion and the best in the group discussion will be selected to meet the requirement. In case the technical recruitment, practical test and selection test are conducted. The candidates who are qualified in the tests will be called for the final interview will be done by the selection committee as constituted by the HRD. HRD will take the initiative of based on the selection committee’s report. All selected candidates will be sent on offer of employment letter, with the date of joining, pay and allowances, designation and the other terms and conditions of employment in SHREE CEMENT.

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At the time of joining the candidate should produce the following documents of the HRD

Educational qualification Proof of data of Birth Experience certificate Relieving letter from the precious organisation Attestation forms for police verification Reference

Policy enquiry about the selected person is made after his interview. Medical examination is also carried out. Selection of local candidate was made particular under certain situations to meet the requirements.

The selected employees will be appointed on training for a period of one year. Based on the appraisal reports, candidates will be absorbed into the suitable grade and will be on probation period of six months. After successful completion of probation period the candidate will be confirmed subject to the appraisal report.Manpower Planning in SHREE CEMENT:

Activity based manning Badly Concept Nominee System Pool Concept Multi-skilling and Flexibility

Manpower Planning in SHREE CEMENT:Separations-

Recruitments Deaths Resignations Transfers Recruitment Promotions Transfers.

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SWOT ANALYSIS

SWOT Analaysis Is a planning tool used to understand the Strengths,

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

business. It involves specifying the objective of the business or project and

identifying the internal and external factors that are supportive or

unfavourable to achieving that objective. SWOT is often used as part of a

strategic planning process.

SWOT is an for Strengths, Weaknesses, Opportunities, Threats.

Overview Matrix:

  POSITIVE/ HELPFUL

to achieving the goal

 

NEGATIVE/ HARMFUL

to achieving the goal

 

INTERNAL Originfacts/ factors of the organization

 

Strengths

Things that are good now, maintain them, build on them and use as leverage

Weaknesses

Things that are bad now, remedy, change or stop them.

 

EXTERNAL Originfacts/ factors of the environment in which the organization operates

 

Opportunities

Things that are good for the future, prioritize them, capture them, build on them and optimize

Threats

Things that are bad for the future, put in plans to manage them or counter them

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What Strengths and Weakness are analyzed?

The strengths and weaknesses analysis is an internal examination that focuses on

your past performance, present strategy, resources and capabilities. It is based on

an analysis of facts and assumptions about the company, including:

People (Human Resources)

o People and skills (in particular marketing, export

experience)

o Staff development

Properties (Buildings, Equipments and other facilities)

Processes (Such as quality, finance, M.I.S. etc.)

o Financial resources (debt to asset ratio and personal equity)

o Governance

o Management/ leadership

o Staff development

o Communication

Products (Publications etc.)

o Sales

o Products

o Markets

What Opportunities And Threat Examined The opportunity and threat analysis is carried out by examining external factors

in your domestic and export markets. This is usually broken down into

environmental factors and competitors, including:

Environmental Factors Demographics

Economic

Political/legal 85

Sociological

Environmental

Technology

Competitor Factors Capability

Resources

Ownership

New entrants

Market segments

Products

Prices

Promotion

Distribution

Substitute products

Suppliers customers

Product life cycle

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CONCLUSION

On the basis of above study it can be concluded that a system of

psychological appraisal can be introduced where psychologists are used

to specifically assess an individual's future potential. The appraisal

normally consists of in depth interviews, psychological tests, discussions

with supervisors and a review of other evaluations. The psychologist then

writes and evaluation of the employee's intellectual, emotional,

motivational and other work related characteristics that suggest individual

potential. This will make the potential appraisal more specific and a

reliable date source for making employee's promotion decisions and future

development.

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Recommendation & Suggestion Systematic and a common methodology should be opted for recruiting

and selecting the employees.

The steps in the process of selection should not very from employee to

employee

The system opted for remuneration should be changed

Experience and qualification should also be considered at the time of

selection

Recruitment should be made in the manner, which helps in the

development of the organisations.

Check if the right person is being placed at the right place

Induction programme should be made in time, but not too late.

The process of selection should be the same for the employees of

same designation and very according to the designations.

Job rotation should be made according to the individual’s skill and

qualification.

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QUESTIONNAIREName…………………………………………………………………Employee No. …………………., Experience…………………………..Designation……………………… Department…………………………

1. How do you recruit the employees?

a) Internal b) External

2. If external how do you recruit the employee?

a) Through agencies b) Through reference

c) Casual applications d) Data banks

3. How will you inform the vacancy position of the job to internal

conditions?

a) Through word of mouth b) Notice boards

c) Department heads

4. What are the major sources for identification of candidates for

recruitment?

a) Through ads b) Internet

c) Consultants

5. Who are involved in the manpower planning?

a) Department heads b) HR Department

c) Above two

6. How frequently do the companies recruit the employee?

a) Quarterly b) Half yearly

c) Annually d) whenever required89

7. What is your level of satisfaction regarding the present recruitment

policy?

a) Satisfied b) Needs Training

8.Do you feel any improvements in the present recruitment process?

a) Yes b) No

9.Does the company deserve the campus selection?

a) Yes b) No

10.Which type of interview do you follow for selecting the employees?

a) Structured b) Unstructured

11.Do you face any hurdles in selection process?

a) Yes b) No

12.What do you think about the recruitment process in SHREE CEMENT

Limited?

a) Excellent b) Good

c) Fair

13.What factors do you most consider while selecting the employees?

a) Subject b) Willingness

c) Suitability

14. Any Suggestions---------

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BIBLIOGRAPHY

K. Aswathappa, Human Resource and Personnel Management ,2007,Tata Mc Graw Hill Publication ,Second Edition.

Gupata C.B, Human Resource Management ,2006,Sultan Chand and Sons ,Sixth Edition.

MAGZINES:

INDIA TODAY

BUSINESS WORLD

REFERENCES WEBLIOGRAPHYThank you

www.shreecementltd.com www.ibef.org www.marketresearch.com www.indianinfoline.com www.busineessconnect.com www.indiancementindustry.com

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