ACKNOWLEDGEMENT

I would like to express my gratitude to all those who gave me the opportunity to work and complete this project. I want to thank MANISHRI Industries Pvt. Limited, Cuttack for giving me permission to commence this project in the first instance, to do the necessary research work and to use departmental data. I am deeply indebted to my supervisor Mr. V. Mohanti, Area Manager, MANISHRI Industries Pvt. Limited whose help, stimulating suggestions and encouragement helped me in all the time of research for and writing of this project. My colleagues from the MANISHRI Industries Pvt. Limited supported me in my research work. I want to thank them for all their help, support, interest and valuable hints. Especially I am obliged to Mr. Mahendra Pd. Singh, Coordinator (BBM) and Mr. Akshay Kumar, Faculty of BBM, S. Sinha College, Aurangabad (Bihar). Especially, I would like to give my special thanks to my friends and Mr. Awadesh Kumar, Faculty of BBM whose constant encouragement enabled me to complete this work.

Ravishankar Kumar Exam Roll No. 13152422042 BBM(II) 2012-13 S. Sinha College Aurangabad (Bihar)

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FACULTY OF MANAGEMENT
S SA AC CH HC CH HI ID DA AN NA AN ND DS SI IN NH HA AC CO OL LL LE EG GE E
( A constituent unit of Magadh University, Bodh Gaya)

AURANGABAD (BIHAR)

Mr. Sudhir Kumar Singh Faculty of Management (B.B.M.) S. Sinha college, Auragabad (Bihar)

Guides Certificate
This is to certify that . Class Roll No. , student of Bachelor of Business Management, S. Sinha College, Aurangabad (Bihar) has undergone a summer project on the topic Refractory Industries at Manishri R & C Pvt. Limited, Cuttack under supervision & guidance. He/ She has prepared this project very sincerely and its finding and the recommendation made in the report are worth implementation. I recommend this project report for evaluation and wish him/ her all success for future career.
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Guides Signature

Objective of the Project report:

Study of Refractory sector Business activity area of Manishri Industries Pvt. Limited Study of product line Financial results Manishri Industries Pvt. Limited Suggestions

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Table of content: Chapter 1. About Refractory Industry - What are Refractories? - Industry Overview - Scope of Growth - Challenges for Industry - Phenomenal growth in Global Market - Recovery in Global Demand - Growth Opportunists 2. About Orissa Industry Ltd. 3. Infrastructure 4. Research & Developments 5. Products 6. Working Capital Management 7. Financial Results 8. Clients 9. Conclusion & Suggestion 10. Bibliography Page No. 5 - 11 7 7-8 8 9 10 11 11 12 13-14 15 - 16 17 -21 22 -27 28 29 - 30 31 - 32
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1. About Industry
What are refractories?
"Refractory" items according to any standard English dictionary are materials which are hard to work with, and are especially resistant to heat and pressure. In practical terms, refractories are products used for high temperature insulation and erosion/corrosion and are made mainly from non-metallic minerals. They are so processed that they become resistant to the corrosive and erosive action of hot gases, liquids and solids at high temperatures, in various types of kilns and furnaces. Refractory is a term given to a class of materials which are produced from nonmetallic minerals and possess capability to withstand heat and pressure. These are products that confer properties like high temperature insulation, resistance to corrosive and erosive action of hot gases, liquids and solids at high temperatures in various kilns and furnaces. The production of refractories started in India in the form of fire clay bricks in 1874. Today, a wide variety of refractory products are manufactured tailor made to suit the requirements of the application in various sectors which include iron and steel, cement, glass, non-ferrous metal, petrochemical, fertilizer, thermal power plants etc. Basalt is a naturally occurring siliceous refractory product. It was formed many, many years ago - and is still being formed in lava flows from volcanic eruptions - under the natural geological forces of heat and pressure. Modern refractory production is largely a replication of this process of forming naturally-occurring (or synthetic) non-metallic mineral oxides (and some non-oxides like carbides or nitrides) under the bonding conditions of high heat and pressure. Of course with technological progress, alternative bonding techniques, such as with chemicals, cements, resins, etc. have also developed. Because refractory products are so resistant to heat, erosion and corrosion, they are typically used in any process involving heat and corrosion such as in kilns and furnaces. According to the main chemical component, i.e.

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fire clay, or magnesia, or zirconia, etc. they are commonly known as alumino-silicate or acid refractories, basic refractories, and neutral refractory products. In physical characteristics, refractories typically have relatively high bulk density, high softening point (or Pyrometric Cone Equivalent), high crushing strength. They are produced as standard bricks, or as shapes (including hollow-wares) or as granular or unshaped or monolithic products. The principal applications of refractories are in iron and steel industries, cement, glass, nonferrous metals, petro-chemicals and fertiliser industry, chemicals, ceramics and even thermal power stations and incinerators. The fortunes of the refractory industry are linked to the growth of iron and steel sector which consumes a mammoth 75% of the refractories produced. Sector wise consumption of the refractories in India is shown below in the pie chart. The specific refractory consumption is about 27 Kg/T in steel industry, 1.7 Kg/T in Cement and 55 Kg/T in glass industry. These sectors are giving high thrust on productivity, quality, cost, energy conservation and cleaner environment which necessitates new generation of refractories with specific requirements. Raw materials used in the production of basic Refractories are magnesites, dolomite, chrome ore, spinel and carbon. Basic Refractory bricks such as Magnesia-chrome and Magnesia- spinel are made up of synthetic magnesia clinker or dead burned natural magnesite; that forms spinel during firing of the brick. The development and application of refractories for various industries, testing procedures of properties and so on are covered in the English language, by a number of well-known technical journals, such as The Bulletin of the American Ceramic Society, Taikubutsu Overseas, Interceram, Ceramic News, Refractories Applications, IRMA Journal, Transaction of the Indian Ceramic Society, Metal News, etc.

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Overview
The Indian refractory industry started its journey with first line of production in Kolkata in 1874. Today, the industry comprises over 100 established units, with 11 large plants, 24 medium-scale units and the rest in the small-scale sector. However, while the refractory industry in India took off in the late 19th century, the real growth came in the late 1950s when the public sector steel plants were set up and Tata Steel embarked upon its expansion plans. Currently, the Indian refractory industry has an aggregate production capacity of 20 lakh tonnes per annum. The capacity utilization, however, currently stands at around 60 percent or 11.5-12 lakh tones per annum. About 75 per cent of the refractories that are manufactured find application in the steel industry, 12 per cent in the cement industry, 5-6 per cent in non-ferrous industries, three per cent in the glass industry and the balance in other industries . Necessarily, refractories are used either where high temperature or high rate of abrasion/corrosion/erosion is involved. Traditionally, refractories are made of naturally-occurring minerals, such as bauxite, kyanite, magnesite, fireclay, chrome ore, etc. Lately, however, the industry has been using man-made raw materials, such as brown-fused alumina, tabular alumina, fused magnesia, silicon carbide, magnesia alumina, etc. Refractory plays a dynamic role not only for metallurgical but also for shaping up chemical and petrochemical, glass, ceramic, cement and limestone industries. Major research work has so far been concentrated for the development of new refractory and also for its reduction in consumption for steel industries. But, the industry's efforts have so far proved futile as no major breakthrough has been achieved. Indian refractory industry, meanwhile, is required to upgrade their operations with global technologies which need huge investment. But, in the long run, the investment is bound to fetch higher returns too.

Present Scenario of Industry

Being fully reliant on end user industries including steel and aluminum, the Indian refractory industry is currently encompassing the downward cycle. Although this has not affected the growth rate of the industry at all, yet it is a matter of great concern. The global economic slowdown has affected the local manufacturing sectors badly with demand from auto, aviation and railways remains stagnant since the blip of meltdown felt about 12 months ago. Being immune to the global industrial development, India's refractory industry has witnessed a dramatic squeeze in margins amidst poor demand from end users and raising raw material prices. Sudden fall in demand has also caused huge inventory pile ups thereby pressurizing manufacturers to clean up stockpiles at the price decided by the end users. The Indian refractory manufacturers are squeezed between the raw material suppliers and steel makers. The negotiating power of refractories makers is very poor, mainly due to its size, as it is catering to an industry far bigger in size, primarily steel. Raw material prices are on fire. But unlike steel makers, it is difficult for refractory manufacturers to pass on the burden of increasing raw material prices. Even for them, who operate in high end technology segments, the real price

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rise of the end products in the last two years has been actually negative. Margins are under severe pressure. Fresh steel production capacity to the tune of 4.8 million tons will come on stream in 2009-10 taking the total finished steel capacity for the industry to around 70 million tons. In view of this, finished steel production is expected to grow by 6.5 percent in 2009-10. The government's emphasis on infrastructure spending in order to stimulate economic growth is expected to keep demand for long products healthy. Real estate construction activity would pick up gradually in the second half of 200910 due to low interest rates and fall in property rates and hence the demand of steel and its backward integration products. Such projects may provide stimulus for refractory companies also. According to available reports, installed production capacity as on December 2006 was roughly around 20 lakh tons per annum. Conservatives estimate that it went up by around 5 to 10 percent in 2007 and remained stagnant in 2008. Similarly, the production capacity that stood at 10 lakh tons per annum is estimated to have grown by at least 10 percent in 2007. But it is expected that by 2010, along with the increase in steel production in the country, the demand for refractories will touch 12 lakh tons per annum. Industry experts, however, draw a different picture. Items, which are enjoying good demand, do not have excess capacity. Makers of these refractories are operating currently at 80 percent capacity utilization. But, apprehensions are that there would be a shortage in the market once the expansions plans by Indian steel producers start rolling at the expected pace.

Scope of Growth
The size of the Indian refractory industry has been pegged at Rs 2,300 crore and it is stated to be growing at 8-10 per cent per annum. Although the specific consumption of refractories has gone down from 30 kg per tonne of steel about 20 years ago to 12-13 kg on an average for the steel industry as a whole and as low as 7-8 kg in the case of some more efficient steel units, the scope for growth is good in view of the continuing growth in the Indian economy and the government's focus on infrastructure development. Despite downturn in steel sector, the domestic refractory industry that supplies raw materials to steel plants and industries, posted 21 percent growth in turnover at Rs 4,480 crore in 2009-10 against Rs 3,640 crore in 2008-09, when the growth was 16 percent over 2007-08. The capacity utilization of the industry was 65 percent.

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In 2009-10, the import of refractories was down 11 percent to Rs 1,277 crore, according to Indian Refractory Makers Association (IRMA) chairman, A K Chattopadhyay. This was largely due to drop in the imports of fireclay and high alumina bricks mostly under OEM contracts. But, then, the exports during the period also declined to Rs 446 crore mainly due to the meltdown in European and the American markets. Crude steel production in 2010-11 is expected to rise to 72 million tones despite the slide in the first quarter. In 2009-10, the crude steel production was 64.88 million tonne. Out of total production of 64.88 million tonne in 2009-10, 29.33 million tonne was produced through the oxygen route, another 15.69 million tonne through the EAF route, and the balance through the induction furnace route. Cautioning against the frenzy to sign MoUs to set up steel plants 53 in Karnataka, 71 in Jharkhand and several dozens each in Orissa and West Bengal, Chattopadhyay said that infrastructure bottlenecks could throttle these ambitious plans. The production of 100 million tonnes of crude steel would mean transportation of 350 tonnes of raw materials. According to Dr J.J. Irani, Director of Tata Sons and Former Managing Director of Tata Steel, With the government aiming to invest more and more on infrastructure development, the steel industry in the country is slated to grow to, possibly, 120 million tonnes or even up to 150 million tones by 2015. According to most reports, the cement, aluminium and other industries are also to grow to unprecedented heights. This should be good news for refractory producers in India.

Challenges For Industry

The Refractory Industry must upgrade itself to take benefit of increased business from the steel industry, stated R K Vijayvergia, Executive Director-Operations, SAIL, at a recently held conference. In his special address, Vijayvergia said, Steel industry forms the major end use segment for ref ractories consuming around 70 percent of its total annual production. The Refractory Industry has to keep pace with steel industry with regard to quality and quantity demands. Meanwhile, with the changed business scenario more and more customers are looking forward to total refractory management which encompasses creation of value added service, responsive supply chain network and understanding of customers' requirement. The major Indian refractory manufactures need to gear up to cater the need of steel industry. World leaders in refractories like RHI from Austria, Vesuvius from Belgium, French giant Calderys, Pohang from South Korea etc have also made their presence in India, which is a good sign for the industry. Recently SAIL has taken over Bharat Refractories Ltd which is now named as SAIL Refractorry Unit (SRU). SAIL is in the process of augmenting and upgrading the facilities at SRU for higher production to meet the quality requirement of SAIL. Recycling and reuse of refractory is another area of utmost important. In order to reduce the volume of waste refractories, it is necessary to cut down their consumption by prolonging life furnace lining. In the field of refractory major technological development in the world have taken place in the area of monolithic and carbon containing refractories. Currently the share of monolithic in India is around 25 percent of total refractory consumption which is less than Japan where it is more than 50 percent. Economic volatility and risks, information and

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communications, climate change, domestic reforms, inclusiveness and low cost innovations are the key influencing factors for the strategic direction of the business standards. Refractory producers in India have to rise to the occasion by providing ready, regular, speedy and consistent supplies, Irani said. It would also be important for Indian refractory manufacturers to focus on their raw materials security. Industry insiders do acknowledge that raw materials security is a concern especially with China imposing quantitative restrictions on export of raw materials and also jacking up prices over the last year or so. Cheaper refractory imports from China are also putting a pressure on the industry's margins. Hiring and retaining skilled manpower is a major challenge that the Indian refractory industry has to cope with.

Phenomenal Growth in Global Markets

With the staggering recovery from last year's downturn in steel industry, the global refractories market will reach 59 million tonnes and $31 billion by 2015. Key market drivers include growing use in metal and non-metallic mineral products production; emerging markets such as China and India; and increased preference for lighter and stronger refractory materials. New and advanced products, as well as installation/repair practices, are also expected to spur global demand for refractories in the next few years. Global demand for refractories declined during late 2008 and into 2009 as a result of the economic crisis and declining steel production and consumption. Steel use contracted by 6.2 percent in 2009. Nevertheless, with the economy gradually rebounding from recession and global steel production beginning to recoup, demand for refractories is forecast to increase starting in late 2010. Asia-Pacific constitutes the largest and fastest growing regional market for refractories, accounting for an estimated unit share of more than 70 percent, according to the report. China and India are driving overall growth of Asia-Pacific in the global market. Fuelled by strong industrial production, China accounted for a major share of the global market in 2010. Meanwhile, an increasing level of industrialization is fueling growth in the Indian steel industry, providing ample growth opportunities for refractories. Iron and steel remains the major end use market for refractories. However, the declining steel industry usage of refractories bodes well for the growth of refractories in other end-use sectors. Growth in the production of cement, ceramics and other mineral products is expected to complement this growing trend in the coming years. In addition, an upsurge in the use of refractories in metal and non-metallic mineral products' production is expected to widen the market's growth prospects. In terms of material , clay refractories represent the largest and fastest growing segment. The market is projected to grow at a CAGR of 6.6 percent over the analysis period. The market for non-clay refractories is projected to reach 19.6 million metric tons by 2012. By form type, bricks and shapes represent the leading segment, while monolithics and others are projected to surpass $10.34 billion by 2012.
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Growth prospects are high for monolithic castables and preformed shapes that feature higher performance and flexibility than other refractory forms. Significant growth potential is expected

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in zircon/zirconia, silicon carbide extra-high alumina, and other more specialized refractory materials that offer strong performance in specific applications. In addition, an above average growth is foreseen in the case of cost-effective refractory materials, including silica, high alumina, ceramic fibers, and insulating types.

Recovery In Global Demand

Global demand for refractories declined during late 2008 and in 2009, as a result of the economic crisis, and declining production and consumption of steel, the largest end-use market for refractories. Steel use contracted by 6.2 per cent in 2009. Nevertheless, with the economy gradually rebounding from recession and the global steel production beginning to recoup, demand for refractories is forecast to increase starting from late 2010. Asia pacific constitutes the largest and fastest growing regional market for refractories, accounting for an estimated unit share of more than 70 percent. China and India are driving overall growth of Asia-Pacific in the global market. Fuelled by strong industrial production, China accounted for a major share of the global market in 2010.

Growth Opportunities
Meanwhile, increasing level of industrialization is fuelling growth in the Indian steel industry, providing ample growth opportunities for refractories. Iron and steel remains the major end-use market for refractories. However, the declining steel industry usage of refractories of late bodes well for the growth of refractories in other end-use sectors. Growth in production of cement, ceramics, as well as other mineral products is expected to complement this growing trend in the coming years. In addition, an upsurge in the use of refractories in metal and non-metal l ic mineral products production is expected to widen the market's growth prospects. In terms of material , clay refractories represent the largest and fastest growing segment. The market is projected to grow at a CAGR of 6.6 percent over the next two years. The market of non-clay refractories is projected to reach 19.6 million tones by 2012. By form type, bricks and shapes represent the leading segment, while monolithics and others are projected to cross $10.34 billion by 2012. Growth prospects are high for monolithic castables and preformed shapes that feature high performance and flexibility than other refractory forms. Significant growth potential is witnessed in zircon/zirconia, silicon carbide extra-high alumina, and other more specialised refractory materials that offer strong performance in specific applications. Besides, an above average growth is foreseen in the case of cost-effective refractory materials, including silica, high-alumina, ceramic fibres, and insulating types.

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2. About Manishri Industries

MANISHRI was started in the year 1972 by our founder Late Sri B.C.Mohanty, who was one of the pioneer in the field of Refractories. He started his career in OCL, during the construction period of the plant as a technical apprentice. During that period he gained tremendous insights into refractory technology by working alongside refractory consultants from Europe. After spending 10 years in production department of OCL he joined ORIND as Production Head and brought the plant to its technical peak. Plant

After working for 10 years, there he then came forward to put his vision into reality by starting a refractory plant of his own - MANISHRI. His vision was to build a plant in such a location that it will be close to major Steel Plants like Rourkela Steel Plant, Durgapur Steel Plant, Bhilai Steel Plant, Visakhapatnam Steel Plant as well as NALCO, HZL, IMFA etc. which were major refractory consumers. Also the plant should be close to 3 major Ports Vijag, Kolkata & Paradeep with an eye for International Market. Moreover, the plant was to be situated in a close proximity to the Talabasta Mines of Orissa which has the best deposits of Fireclay in the Country.

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With his farsightedness and vision MANISHRI was born and has progressed from a Small Scale Industry to one of the leading players in refractory market.

3. Infrastructure
MANISHRI is located in the coastal belt of Orissa, a beautiful land with abundant natural resources, in Eastern India.The manufacturing facilities have the latest plant & machinery, which are regularly upgraded. The facilities are mainly engaged in the production of Refractory Bricks, Monoliths , Precast shapes and specialities . While optimising its manufacturing of quality products MANISHRI strives hard to sustain ECO-FRIENDLY process -striving to be friend of the environment MANUFACTURING FACILITIES PRIMARY GRINDING: JAW CRUSHER---------------------------------------------2 NOS DISINTIGRATER-------------------------------------------2 NOS DOUBLE DECKED IMPACT MILL WITH VIBRATINGSCREEN AND MAGNETIC SEPARATOR AND HOPPERS---------------------------2 NOS SECONDARY GRINDING: TUBE BALL MILL------------------------------------------3 NOS PULVERISOR----------------------------------------------2 NOS MIXING: HIGH INTENSITY COUNTER CURRENT MIXER (750Kgs)-----------------------------3 NOS PADDLE MIXER -------------------------------------------1 NOS MULLER MIXER-------------------------------------------1 NOS COUNTER CURRENT MIXER (CYLINDRICAL)------2 NOS CASTING AND RAMMING: PNEUMATIC RAMMER-----------------------------------5 NOS PIN VIBRATOR --------------------------------------------9 NOS VIBRATING TABLE----------------------------------------3 NOS KILNS: VERTICAL SHAFT KILN (15000C)-----------------------1 NOS CONTINUOUS RING CHAMBER KILN WITH GAS PRODUCER PLANT (15500C)----------------------------1 NOS HIGH TEMPERATURE TUNNEL KILN(16500C)-------1 NOS TUNNEL DRIER---------------------------------------------1 NOS

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PRESSING FACILITY: FRICTION SCREW PRESS (400 TONS)-----------------1 NOS (150 TONS)------------------9 NOS HYDRAULIC PTRESS (300 TONS )-----------------------2 NOS (150 TONS)-----------------------1 NOS WORKSHOP: FULLY MODERNISED WORK SHOP WITH LATHE /SHAPING /GRINDING/POLISHING EQUIPMENTS FOR MAKING INTRICATE DIES AND MACHINE MAINTAINANCE.

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4. RESEARCH & DEVELOPMENT

Through its innovative research and development approach MANISHRI has been able to add new products and import substitutes to the existing ones.MANISHRI has strategic alliance with Research & Development Centre for Iron & Steel (RDCIS) and Central Glass & Ceramic Research Institute, (CGCRI) for continuous development & up gradation of future generations of refractories. The Research & Development facility also emphasises on Process Monitoring & Quality Control. The R & D wing is continuously engaged in new product developments and more importantly in providing value for money to its customer. RESEARCH AND CONTROL LAB: Fully equipped and calibrated laboratory facility for physical and chemical laboratory facility for physical and chemical tests along with all necessary reagents. DIGITAL SPECTROMETER PYROMETER PCE FURNACE RUL FURNACE PLC FURNACE CCS MACHINE RTE FURNACE HMOR FURNACE AND FACILITIES FOR POROSITY/BULK DENSITY/ABRADIBILITY INDEX/SLAG AND CID RESISTANCE/THERMAL CONDUCTIVITY ETC ARE AVAILABLE. Quality culture The companys management has defined and documented its policy for quality including objectives for quality and its commitment to quality. Quality Policy is notified at all levels of employees. The Management ensures that the Quality Policy is understood, implemented and maintained by all employees in the organisation. Quality Policy MANISHRI strives to provide value for money to its customers by achieving highest possible quality standard products and services through rigid process control, dedicated team work, safety reliability, social responsibility and environment at large, ON TIME EVERY TIME

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Quality Objectives Quality Policy is relevant to the companys organisational goals and expectation and needs of its customers. Quality Policy is supported by the following objectives : 1. 2. 3. 4. 5. To achieve optimum production and turnover in a qualitative manner. To produce quality product and service at competitive rate. To build, establish and maintain image, brand and reputation of MANISHRI as a quality manufacture. To induce quality consciousness at all stages of our process through upgrading technology, resources and man power. To foster team spirit, openness and healthy and safe work culture.

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5. Products
Industrial Products
A. Iron & Steel This Segment is the major consumer of refractory, accounting for 70% of total consumption. MANISHRI since inception has grown with steel plants by supplying quality materials for steel and iron making applications. Over the period, MANISHRI in tandem with its customer has developed various products for application in the following areas. COKEOVENS Intricate moulding , controlled firing and skilled manpower has established MANISHRI'S name as a reputed cokeoven refractory manufacturer. 20 years of solid experience in building cokeoven battery of various size has added numerous feathers to its cap. Bricks for all major area of cokeoven are being manufactured by us i.e. BUS FLUE, REGENERATOR ,CDCP, OVEN ROOFING , DOOR BRICKS etc. BLAST FURNACE A wide range of refractories are being manufactured by MANISHRI for MINI as well as LARGEBLAST FURNACES , in various areas like STACK, BOSH, HEARTH, STOVE,BOTTOM and CAST HOUSE , since 2 decades. TORPEDO LADLE The increasingly severe conditions imposed in high capacity (200 to 500 MT) Torpedo Ladles today are a function of the weight of metal , temperature , transportation time and distance , thermal cycling rate , amount and composition of slag and any metal treatment carried out in the ladle. ELECTRIC ARC FURNACE MANISHRI provides quality refractory for roof of the EAF, both for the periphery as well as the DELTA region ,with high alumina bricks and precast shapes. MANISHRI'S magnesia carbon bricks and ramming mass are best suited for HEARTH region . REHEATING FURNACE MANISHRI has experience in manufacturing refractories for both batch type and continuous type of reheating furnace. Bricks are used in BULL NOSE, ROOF, WALL, BURNER BLOCK etc. Different types of castables and PRECAST shapes are also manufactured for reheating furnace application.

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STEEL LADLES The advent of continuous casting has placed severe demands on refractories f or ladles, on account of : Temperature of steel has increased. Longer dwell time In ladle processes, operations like vacuum degassing, gas purging and desulphurisation were developed. For meeting this severe demand MANISHRI has designed ZONAL LINING PATTERN of MGO-C bricks in the slag zone and AL-MGO-C spinnel bricks for side wall and bottom with high spalling resistance and slag resistance in mind. OPEN TOP HOT METAL LADLE MANISHRI'S high quality high grog bricks with low porosity and with high spalling resistance are ideally suited for use in open top ladles . Recent development of SiC quality bricks by MANISHRI has given excellent results in bottom region of open top hot metal ladle. TUNDISH MANISHRI'S mullite based zero cement CASTABLE is highly recommended for permanent lining of tundish in the con-cast process. Precast shapes made there of are used as striker pad and other flow control devices like Baffle, Dams, Weir etc with excellent result. MANISHRI also provides basic spring mass suitable for tudish coating/spring/trowlling. B. Aluminum MANISHRI, a pioneer in the supply of all range of refractories to Aliminium Industry since two decades has some of the big names in Aluminium manufacturing like NALCO, INDAL, BALCO, MALCO etc. in its list of satisfied customers . Our product almost covers up the entire range of refractory application in the Aluminium Industry. MANISHRI has captive mines for TALBASTA CLAY, which is the best deposit for 42% Chamotte Clay, in the Country. This Clay has a very low iron content and when fired at 1450-15000C, produces a very high quality dense sintered grit, with very low porosity. It is also located very near the Indian RareEarths Complex which produces high quality of Sillimanite sand. Based on the above two raw materials and Andalusite, we have formulated the high purity mullitised grog used in making of bricks and castable suitable for Aluminium industry application. Our main area of concentration in Aluminium Plant is "Refractories for Anode Baking Furnace".

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C. Cement MANISHRI has wide range of products for Rotary kiln as well as lime calcinations kiln of cement plant. Very high quality MAGNESIA CHROME bricks for the burning zone and HIGH ALUMINA bricks for preheating zones and calcining zones are manufactured by MANISHRI.Manishri also provides complete monolithic lining in rotary kilns to enhance lining life. In lime calcinations kiln, pre heating and calcining processes are repeated and the brick lining is exposed to severe spalling. MANISHRI produces high fired basic bricks for calcining zone and high alumina and fire clay bricks for top and bottom zones to withstand such severe operating conditions.Fire clay bricks and insulating bricks are installed as back up lining for proper thermal insulation.

D. Glass & Ceramics MANISHRI manufactures very good kiln furniture for use in various types of tunnel kiln, shuttle kiln and batch type kilns. Insulating material, cordierite furniture, silicon carbide material, synthetic alumina based refractory, are increasingly provided by MANISHRI to various ceramic industry. Glass industry requires very specialised refractory blocks made out of chammotte, sillimanite, zircon, mullite and various other material. MANISHRI provides turnkey solutions to glass industry by providing these big blocks for most of the areas of Glass Tank furnaces. E. Petroleum MANISHRI offers total refractory and castable solution for refinery sectors. The products have been approved by M/s. Engineers India Limited and finds wide acceptance in refining and petrochemicals for use in CDU, VDU, PDA, VBA, DCU, UDEX, EDA/IFP Crude Heaters, Hydro Cracker, Hydrogen Reformer, AU-Furnace and SRU . MANISHRI'S 90% and 96% Al2O3 Bricks give excellent performance in INCINERATOR NEAR BURNER of SRU in petrochemical sectors as well as are being exported to refinery based markets in MIDDLE EAST.

MANISHRI manufactures very good quality insulation bricks and castables for application in the above industry segment. The important refractory items for the

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F. Fertilizer & chemicals

above usage are the

ACID PROOF bricks, Tiles, castables and sealing compounds.

Besides this there is a requirement of high alumina dense bricks and castables in various furnaces in such type of industry. MANISHRI has earned a reputation with various project consultants like EIL, PETRON, DAEWOO, HUNDAI, PUNJ LOYD, L & T, etc for supply of refractory to various projects.

CONSUMER Products
Basic Bricks 1. Basic Bricks (Burnt Qualities) a. Magnesite b. Magnesite Chrome c. Chrome Magnesite d. Chromite 2. Basic Bricks (Chemically Bonded Qualities) a. Magnesite-Chrome b. Chrome Magnesite 3. Basic Bricks (Direct Bonded Quality) 4. Magnesia Carbon Bricks Fireclay & High Alumina Bricks 1. Fireclay Bricks 2. Checkers, Wall & Dome Bricks for BF Stoves 3. Refractories for Aluminium Industries 4. High Alumina Bricks Monolithics Basic 1. Basic Mortars & Patching Mass 2. Basic Gunning Mass 3. Basic Ramming Mass (for BOF/OHF/Tundish) 4. Basic Ramming Mass (for Induction Furnaces) Fireclay & High Alumina 1. Fireclay & High Alumina Castables 2. Specialised High Alumina Castables- I 3. Specialised High Alumina Castables- II 4. Specialised High Alumina Castables- III 5. Low Cement Castables 6. Fireclay and High Alumina Bamming Mass and High Alumina Silicate Gunning Mass

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7. Fireclay and High Alumina Mortars

Services
MANISHRI has a dedicated team of Engineers and Skilled Professionals, engaged in providing excellent services support to its valued customers. With 30 years of Design engineering exposure behind it, MANISHRI can provide the following services in the field of refractory. Refractory Lining Design Turnkey Installation Application and Maintenance of Refractory Lining Jobs Hot repairs and Remedies Inspection and Testing Product Development Project Cost Estimate & Reports Outsourcing of Allied Products

MANISHRI offers emergency services, 24 hrs. a day and 7 days a week. Whether your needs are refractory repairs, trouble shooting or installation, MANISHRI is the single point services provider for all kind of heating equipments.

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6. Working Capital Management

Every business needs investment to procure fixed assets, which remain in use for a longer period. Money invested in these assets is called Long term Funds or Fixed Capital. Business also needs funds for short-term purposes to finance current Operations. Investment in short term assets like cash, inventories, debtors etc., is called Short-term Funds or Working Capital. The Working Capital can be categorized, as funds needed for carrying out day-to-day operations of the Business smoothly. The management of the working capital is equally important as the management of long term financial investment. Every running business needs working capital. Even a business which is fully equipped with all types of fixed assets required is bound to collapse without: (i) Adequate supply of raw materials for processing; (ii) Cash to pay for wages, power and other costs; (iii) Creating a stock of finished goods to feed the market demand regularly (iv) The ability to grant credit to its customers. All these require working capital. Working capital is thus like the lifeblood of a business. The business will not be able to carry on day-to-day activities without the availability of adequate working capital. Working capital cycle involves conversions and rotation of various constituents components of the working capital. Initially cash is converted into raw materials. Subsequently, with the usage of fixed assets resulting in value additions, the raw materials get converted into work-in- progress and then into finished goods. When sold on credit, the finished goods assume the form of debtors who give the business cash on due date. Thus cash assumes its original form again at the end of one such working capital cycle but in the course it passes through various other forms of current assets too. This is how various components of current assets keep on changing their forms due to value addition. As a they rotate and business operations continue. Thus, the working capital cycle involves rotation of various constituents of the working capital Working Capital Management is concerned with current assets current liability and their relationship to the firm. Working Capital policies affects the future returns and risk of the company; consequently they have an bearing ultimate bearing on shareholder wealth. Generally Working Capital Divided into two parts: (i) Gross Working Capital (ii) Net Working Capital (i) Gross Working Capital: Gross Working Capital refers to the firms investment in current assets. Current assets are the assets which can be converted in to cash within an accounting year and include cash, short term securities, debtors, and stocks.
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(ii) Net Working Capital: Net Working Capital refers to the difference between current assets and current liabilities. Current liabilities those claims of outsiders which are expected to matured

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for payment within an accounting year and include creditor, bills payables, and outstanding expanses. Net working capital can be positive or negative. A positive net working capital will arise when current assets exceeds current liabilities. Negative net working capital occurs when current liabilities are in excess of current assets

Component of Working Capital:

Working Capital Cycle of Manishri

Working Capital Cycle of Manishri

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Above is the working Capital Cycle Of the Manishri, which shows how cash converted into work-in-process after that finished goods and how debtors again converted into cash. The length of the operating cycle of Manishri is the sum of inventory conversion period and debtor conversion period. The inventory conversion period is the total time taken for producing and selling the product. Typically it includes, raw material conversion period, work-in-progress conversion period, stores and spares conversions period, fuel conversion period, and finished goods conversion period. The debtor conversion period is the time required to collect the outstanding amount from the customer. Operating cycle is the time duration required to convert sales, after the conversion of resources into inventories, into cash. The operating cycle of Manishri includes three phases: Acquisition of resources, such as raw materials, labour, power, and fuel etc. Manufacture of the product which includes conversion of raw material into work-inprogress in to finished goods. Sale of the product either for cash or credit. A credit sale creates accounts receivable for collection

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Data Analysis Each and every company needs norms and actual for fulfillment of their daily needs and to achieve the predetermine target. So here is some of norms and actual of Manishri of last 2 years from the year 2010-2011. WORKING CAPITAL MANAGEMENT IN MANISHRI
WORKING CAPITAL; AS ON 31.03.2011
ITEMS NORMS AS PER NORM ACTUAL AS ON 31.03.2010 32 (59 Days) 13.47 (11 Days) 5.15 (246 Days) 3.56 (23 Days) 39.66 (27 Days)

Rs. in Lakhs
DIFF

RAW MATERAIL

45DAYS OPF CONSMN 15DAYS COST OF PRODUCTION 120DAYS OF CONSUMPTION 15DAYS OF CONSUMPTION 30DAYS COST OF PRODUCTION PLUS E.D ACTUAL 70 DAYS OF SALES

24.8 (45 Days) 20.03 (15 days) 2.52 (120 Days) 2.41 (15 Days) 44.85 (30 Days)

-4.23

WORK IN PROGRESS STORES & SPARES FUEL FUEL

7.2

-6.56

2.63

FINISHED GOODS

1.15

OTHERS DEBTORS AL CURRENT ASSETS CREDITORS (OPERATION) OTHER CREDITORS & PROVISIONS Incl. not due within one year

46.59 113.67 (70 Days) 254.87

46.59 109.44 (68 Days) 249.87

-5.19 0 -5

45DAYS,COST OF PRODUCTION ACTUAL

60.1 (45 Days) 25.29

73.01 (66 Days) 25.29

12.91

TOTAL CURRENT LIABILITY NETWORKING CAPITAL

85.39

98.3

12.91

169.48

151.57

17.91

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WORKING CAPITAL; AS ON 31.03.2010

ITEMS NORMS AS PER NORM ACTUAL AS ON 31.03.2010 19.02 (35 Days) 14.06 (12 Days) 3.82 (246 Days) 2.68 (21 Days) 25.52 (18 Days)

Rs. in Lakhs
DIFF

RAW MATERAIL

30 DAYS OPF CONSMN 15DAYS COST OF PRODUCTION 90DAYS OF CONSUMPTION 15DAYS OF CONSUMPTION 30DAYS COST OF PRODUCTION PLUS E.D ACTUAL 60 DAYS OF SALES

16.39 (30 Days) 17.66 (15 days) 2.52 (90 Days) 1.96 (15 Days) 40.08 (30 Days)

2.63

WORK IN PROGRESS STORES & SPARES FUEL FUEL

-3.6

1.3

0.72

FINISHED GOODS

-14.56

OTHERS DEBTORS AL CURRENT ASSETS CREDITORS (OPERATION) OTHER CREDITORS & PROVISIONS Incl. not due within one year

37 86.12 (60 Days) 201.73

37 103.75 (68 Days) 205.85

0 17.63 4.12

45DAYS,COST OF PRODUCTION ACTUAL

52.98 (45 Days) 17.69

65.01 (56 Days) 17.69

12.03

TOTAL CURRENT LIABILITY NETWORKING CAPITAL

70.67

82.7

12.03

131.06

123.15

-7.91

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Term of Payment in MANISHRI Analysis with Its Specified Customers: In MANISHRI the term of payment is generally made with different basis, by which the customers of the MANISHRI are pay, the money with definite period. In the procedure MANISHRI has made standard relation with the customers and gives more scope to them for make payment with limited time. It will be help to customers of MANISHRI for increase their product purchase reasonable time in this procedure get benefit by both customers of MANISHRI and MANISHRI. Actually in term of payment are very easy for customers to accept because it shows clear cut procedure of payment in a definite period. Generally the term of payment made by MANISHRI towards its customers in four types, which are 30days payment, Letter of credit (LC), Post dated cheque (PDC)/Stock in sales and Advance payment. In this four term of payments are very help to MANISHRI as well as its customers to make payment within the time or in specified time. For analysis the customers of MANISHRI we have to categories them in this four method , by which we can easily know the which customer paid in which term and specified them for next better relation and sales more deal with them. So we can get more order from them and as a result get more profit. 30 DAYS PAYMENT: In this term MANISHRI gives 30 days to its customers to make payment .in this term customers has to pay 20% in advance, 50% at the time of dispatch the goods and left 30% within 30 days generally big companies are come under this term because they have get product in quick time so they make payment in time, by which they get more scope by MANISHRI next time when they need product in short time. By which sale will be increase by MANISHRI and get more profit. LETTER OF CREDIT (LC) A letter of credit (LC) is signed instrument undertaking banker of buyer of a to pay seller a certain sum of money on presentation of document, evidencing shipment of a specified goods and subject to compliance with the stipulated term and condition. It is bank promise to pay upon the satisfactory compliance with LC terms & condition by the beneficiary. Three part of this term are issuer, applicant and beneficiary. Issuer-the entity that issue credit i.e. a bank or financial institution. In MANISHRI banks deal with customers are State Bank of India (SBI) and Central Bank of India (CBI).Applicant It is the customer who request the issuer the credit he wants for beneficiary. In MANISHRI various customers make payments in this are JSW steel and power limited, Hindustan copper etc. SALES TO STOCKIST Sales to stock is term in which different stocker purchased the products directly from company and sell to customers in some extra benefit. In this Terms Company has no so risk about payment because company deal with stocker not with the customers. In MANISHRI provide the products to stocker in directly payment term by they do not take any type risk at the time of sales. In this term payment may be late but ensure that payment will be made in specified time. ADVACE PAYMENT In this term payment is made in advance before purchased. In MANISHRI generally deal this term with small undertakings. These small customers are generally purchased small amounts of products so that MANISHRI want get advanced by that they produce according to orders. In this process payment is made easily but formalities must be maintained

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7. Financial Results
Balance Sheet 31-Mar-12 Equity Capital Preference Capital Share Capital Reserves and Surplus Loan Funds Current Liabilities Provisions Current Liabilities and Provisions Total Liabilities and Stockholders Equity (BT) Tangible Assets Net Intangible Assets Net Net Block Capital Work In Progress Net Fixed Assets Investments Inventories Accounts Receivable Cash and Cash Equivalents Other Current Assets Current Assets Loans & Advances Miscellaneous Expenditure Other Assets Total Assets (BT) 72.78 0.00 72.78 10.11 270.23 1475.45 3.21 1478.66 39.97 0.00 39.97 8.88 48.85 36.73 150.21 36.03 4.11 0.73 191.08 96.42 1458.71 %BT 31-Mar-11 3.97 0.00 3.97 0.55 14.75 80.55 0.18 80.72 2.18 0.00 2.18 0.48 2.67 2.01 8.20 1.97 0.22 0.04 10.43 5.26 79.63 72.78 0.00 72.78 10.39 271.29 1267.87 2.53 1270.40 42.26 0.00 42.26 9.49 51.75 36.73 129.78 50.93 5.51 0.52 186.74 96.61 1253.00 %BT 31-Mar-10 4.48 0.00 4.48 0.64 16.70 78.03 0.16 78.19 2.60 0.00 2.60 0.58 3.19 2.26 7.99 3.13 0.34 0.03 11.49 5.95 77.12 72.78 0.00 72.78 10.65 269.23 1044.58 1.13 1045.71 45.75 0.00 45.75 0.00 45.75 36.73 133.82 28.18 4.96 0.11 167.07 80.09 1068.73 %BT 5.20 0.00 5.20 0.76 19.25 74.70 0.08 74.78 3.27 0.00 3.27 0.00 3.27 2.63 9.57 2.02 0.35 0.01 11.95 5.73 76.43

1831.78 100.00

1624.85 100.00

1398.37 100.00

1831.78 100.00

1624.85 100.00

1398.37 100.00

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8. Clients
MANISHRI'S clients list reads like a whos who of Indian Industries. From Public Sector Giants to small private sector enterprise, MANISHRI offers its clients ease of availability; time bound deliveries and high quality products. The stress on customer satisfaction is the primary focus of the endeavors at MANISHRI. This is the reason that, till date MANISHRI has never received One time orders the relationships have continued. 1. National Aluminium Co. Ltd. Nalco Bhawan, Bhubaneswar. 2. Bharat Aluminium Co. Ltd., Korba. 3. Rourkela Steel Plant , Rourkela. (SAIL) 4. Bhilai Steel Plant , Bhilai. (SAIL) 5. Durgapur Steel Plant , Durgapur. (SAIL) 6. Bokaro Steel Plant , Bokaro. (SAIL) 7. Visakhapatnam Steel Plant , Visakhaptnam. (RINL) 8. Neelachal Ispat Nigam Ltd.,Duburi(NINL). 9. Ispat Industries Ltd. 10. Research & Development Centre for Iron & Steel , Ranchi. (SAIL) 11. Kalinga Iron Works, Keonjhar. 12. Hindustan Zinc Ltd., Visakhapatnam & Chittorgarh. 13. Konark Metcoke Ltd. Duburi 14. Bharat Electronics Ltd., Taloja 15. Bharat Heavy Electricals Ltd. Chennai. 16. Central Glass & Ceramics Research Institute, Kolkata 17. Indian Charge Chrome Ltd., Choudwar. 18. Regional Research Laboratory, Bhubaneswar. 19. OCL India Ltd., Rajgangpur.

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20. Mideast Integrated Steels Ltd., New Delhi. 21. Bharat Heavy Plates & Vessels Ltd., Visakhapatnam. 22. Indian Metals & Ferro Alloys Ltd., Visakhapatnam. 23. Fero Chrome Plant, Jaipur Road. 24. OSIL Steel Works, Keonjhar 25. Hindustan Petroleum Corporation Ltd., Visakhapatnam.

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9. Conclusion & Suggestion

Working capital it is the life blood of any company. so it is natural that differ major departments like production, marketing, purchase, inventory, maintenance along with the finance department have to function efficiently for maintaining a good working capital management. By studying the working capital of MANISHRI the efficiency of different departments are come into picture along with that of finance department. Though MANISHRI is managing its working capital well, a thorough study of the working capital management of the company brings out many opportunities for improvement of the company. Though MANISHRI is trying to overcome its shortcomings at various levels, here are some suggestions for MANISHRI, which may help to improve the working capital position. 1. MANISHRI has introduced a group of people for overcoming from drawbacks of collecting money from their customer. At one area where MANISHRI is lacking and it has to take immediate action in regularity in collection from debtors. It is seen many times that the focus on collections is irregular. 2. If we will see that 30 days credit payment M/S MANISHRI actually receives its money by the end of 55th or 60th day. If possible they can try to reduce the number of credit days by offering the goods at lower price or by offering some discount to there customer. Track and purse late payers. Getting external help if MANISHRIs efforts fail. MANISHRI marketing personals have to be hard on issue. Solve the problems of the customers vis. Problem of invoice not received, problem of wrong invoice etc. 3. The production departments can try to improve the quality and minimize the rejections with aid of suitable techniques. 4. The finished stocks should be stored properly otherwise some of the products which get hydrated very fast will be damaged quickly and they will be treated as non-moving current asset. 5. Special care should be taken to reduce the non-moving finished stock that should be evaluated and production departments have to plan to minimize occurrence of such causes. 6. In MANISHRI coal is supplied from MCL which is near to Cuttack working unit. MANISHRI can negotiate with MCL and receive coal on regular basis due to that the storage burden of coal for the company will reduce.. 7. Material management department along with finance department can try to bargain with supplier to reduce the price and change the mode off payment, which is suitable for the company.
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8. Individual person assigned for different task which directly or indirectly affects the working capital should be made realise their responsibilities. This can be done by giving the persons at work more authority, responsibility, remuneration for increasing their efficiency. All different works relating persons, as it is needed as together form a team. 9. MANISHRI is financed from two major banks with whom MANISHRI is doing business since long time. In my opinion it should try assessing the working capital finance with other leading banks of India, whose branches are not more than 20 K.ms from the office. Who knows the new banks may provide better or comparative finance. 10. Material management department along with finance department can try to bargain with supplier to reduce the price and change the mode off payment, which is suitable for the company. 11. The production departments can try to improve the quality and minimize the rejections with aid of suitable techniques. 12. The finished stocks should be stored properly otherwise some of the products which get hydrated very fast will be damaged quickly and they will be treated as non-moving current asset. 13. Material management department along with finance department can try to bargain with supplier to reduce the price and change the mode off payment, which is suitable for the company. 14. Debtors realization in not very much smooth and regular which should be looked into with some kind of innovative credit policy as a result of which helps the drawing power under Maximum Permissible Bank Finance to a favorable condition.The utilization of current assets towards repayment of creditors and other liabilities should be proper and accurate in order to derive maximum drawing power under MPBF. What we have seen between the financial year 2005-06 and 2006-07 MPBF drawing power has been sustainably reduced due to realization of loans and advances to repay the creditors which should not be the practices in general. 15. The company should plan the repayment schedule of its loan and advances in such a way that a minimum burden should fall on the companys liquidity and working capital requirements. 16.Repayment of bank borrowings particularly working capital finance through surplus cash to reduce the interest cost.

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10. BIBLOGRAPHY
www.manishri.com www.indiarefractory.com www.ocl.com www.moneycontrol.com www.scribd.com www.wikipedia.com www.ggogle.com

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