Professional Documents
Culture Documents
ASHOK JIVANI
Batch:- 2008-10
Roll no:- 08077
TO
Director (PGDM)
In partial fulfillment of the requirements of
Tolani Institute of Management Studies, Adipur
For the award of the degree of
Post Graduate Diploma in Management
placement at INDIAN RAYON (A ADITY BIRLA NUVO LTD). Who has given
me lot of insight into the intricacies of FINANC profession in such a short stint.
No words of appreciation shall however suffice to acknowledge the guidance,
help, support and cooperation meted out to me at the organization. In this brief period,
I was afforded lot many opportunities to interact with many professionals of different
fields only to enlighten me and open up new vistas of my limited knowledge the doors
of which would have remained closed had this opportunity not been granted to me.
I am very thankful to MR. RAHUL MOHONOT (President), who has given
lot of inspiration recognition to me. The ACCOUNT team who taught me many
practical lesson MR.SHUDHIR MISHRA (Gen, Manager and Finance.),
MR.SATISH SHAH (Assistant manager). Mr. P. N. RAO (Sr. President Of Hr),
Miss. AAKANSHA TYAGI (HR. Officer) and Miss. SHRADDHA MEHTA. The
main vidya or treasure of knowledge it was impossible without Mr. J.V.DAVE
(Librarian) providing books and journals and above all a real guidance to me.
Also I pass on my heart-felt gratitude to all my faculty teachers for inculcating
such a uniquely wonderful and yet enlightening exposure only to enhance one’s
knowledge, skills and aptitude. For which I shell ever be indebted & profoundly
obliged.
Great thanks for support and blessings of almighty and my parents.
ASHOK JIVANI
CONTENTS:
Descri Page NO.
ption
Acknow 2
ledgeme
nt
Content 3
s
List of 4
tables
List of 4
figures
List of 5
Abbrevi
ation
Abstrac
t
1.INTR 10
ODUST 10
ION 12
1.1 13
PROJE 128
CT
1.2
INDUS
TRY
1.3
COMPA
NY
1.4
REVIE
W OF
LITER
ATURE
2. 8
General
Depart
ment
3. 27
Producti
on
Depart
ment
4. 51
Persona
l
Depart
ment
5. 70
Marketi
ng
Depart
ment
6. 96
Finance
Depart
ment
7. 125
Method
ology
8. 131
Recom
mendati
ons
9. 132
Conclus
ion
Appendi 134
ces
Bibliogr 149
aphy
LIST OF TABLES
1. Production Capacity 37
LIST OF FIGURES
S.no Table title Page No
1. Domestic Competitors – VFY 82
3. Export Share 83
5. Performance IR 102
6. PBIT 102
7. Production 103
8. Sales 103
Abbreviations:
IR: Indian Rayon
VFY: Viscose Filament Yarn
Dept: Department
CFO: Chief financial officer
WCM: World Class Manufacturing
GRN: Good Receipt Note
TPM: Total Production Management
EOQ: Economic Order Quantity
ABC: Always Better Control
SRTEPC: Synthetic Rayon Textile Export Promotion Council
JIPM: Japanese Institute of Plant Management
IREU: Indian Rayon Employee Union
RMS: Rayon Mazdoor Sangh
IRKM: Indian Rayon Kramchari
CFD: Corporation Finance Division
EXECUTIVE SUMMERY:
DECLARATION:
➢ All the information and figures have been taken from different sources.
Place: Verval
Date: 10-07-2009
Jivani Ashok
PGDM SEM- I I
ROLL NO: 08077
GENERAL
Department:
INDEX
GENRAL DEPARTMENT:
1 Introduction 10
1. INTRODUCTION
1.1 Project:
The project has been done on General organization study at INDIAN RAYON.
The project has been conducted specially at finance, marketing and HRM department
of INDIAN RAYON. The analyses are done on INDIAN RAYON but some of the
analysis are done on INDIAN RAYON (A UNIT OF ADITYA BIRLA NUVO LTD)
as a whole.
This topic was selected by me because of criticalities involved in managing
the organization study. I selected this topic to learn all the concepts related to industry.
I chose INDIAN RAYON for this purpose as INDIAN RAYON is a successful
company.
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.
This project contains all the concepts which are considered by the
manufacturing organizations. I have tried to deal with all the concepts and have learnt
many important concepts.
PROMOTER:
Indian Rayon & Industries Limited (IRIL), a Rs 15.95 billion Aditya Birla
Group company, operates a wide range of businesses. Incorporated in September
1956. As a part of its backward integration process, IRIL set up a 33,000-tone caustic
soda plant with bi polar membrane cell technology from Krupp UDHE Gm of
Germany Located at Veraval in Gujarat, the Caustic Soda Division was commissioned
in 1997.
• The 11th largest cement producer globally, the seventh largest in Asia and the
second largest in India.
• Among the world's top 15 BPO companies and among India's top four.
In India:
• A premier branded garments player.
• Reaching out to seven million people annually through the Aditya Birla
Centre for Community Initiatives and Rural Development, spearheaded
by Mrs. Rajashree Birla.
• Focusing on: health care, education, sustainable livelihood, infrastructure and
espousing social causes and running 41 schools and 18 hospitals.
History& development :
spread over a period of 125 years. The organization came on the sphere of Rayon
Industry in 1963, where Late Shri Lal Bahadur Shashtri laid down its foundation
stone.
Shri Morarji Vaidya of Vaidya Group started this organization with production
capacity of 4MT per day in collaboration from Von-Kohom International of USA. In
1966 it was taken over by Shri Aditya Vikram Birla and since then has been a part of
the AV Birla combine.
In 1976, it was merged with Jayashree Textile & Industries, which owned 3 textile
units & an insulator Unit. Indian rayon & industries limited, a flagship company of
the Aditya Birla Group, is among India’s top 25 corporations with a turnover of over
Rs.15 Billions.
SWOT Analysis:
The overall evaluation of division like strengths, weakness, opportunity and
threats is called SWOT analysis.
Strength:
➢ Yarn produce here is of high quality then also management always tries to
increase the quality of yarn in order to fulfill their potential customer and new
ones. Total produced items+ wasted are being sold; this shows the efficiency
of sales activity.
➢ Better pacing, carriage and transportation system with all modern equipment
and good after sales service.
➢ Regular meeting and seminars are conducted in the entire department in order
to find our loopholes and solve the same.
➢ Division also have continuous spinning yarn department in which the modern
technology is used for the spinning the yarn and its is adopted fro Germany.
➢ Divisions have domestic as well as export market and for this they are doing
the Internet marketing in order to find new markets.
➢ Division has WCM (World Class Manufacturing) ceil in which they look out
for better way of manufacturing.
➢ ISO 9002 for the better quality of the production carries division.
Weakness:
➢ Cost of production is more due to existence of very old technology installed in
this division.
➢ Many process steps and process is more sensitive to normal process variations.
Opportunity:
➢ Division should find new market area for its products specially chemicals.
➢ Quality has ore weight age in international market. Indian rayon Pot Spinning
Yarn is next to Asahi Japan and better than Chinese and Russian Yarn used in
international market.
Threats :
➢ Government policies are the main hurdles of the division’s performance.
➢ Emergence of cotton threads made the market share of Rayon Yarn low.
➢ The Viscose Process is highly polluting. The basic raw material (pulp) is again
pollution prone.
Challenges ahead
The Rayon division along with the industry facing the following challenges.
➢ Comparatively poor quality.
➢ Unregulated dumping of the products from China.
➢ Higher cost per Kg. of production.
BOARD OF DIRECTORS:
Chairman; Mr. Kumar Mangalam Birla
PLANT LOCATION:
For any Company the location of its manufacturing unit (plant) is very
important. Easy availability of raw material, cheap labors, Transport etc are better
features for selecting location of plant.
For IR (Indian Rayon) transportation through sea route is easy, as it is located
at sea cost of Veraval. By sea route raw material is imported from foreign countries. It
also Export through sea route.
It has large demand local market so they are very near to market E.g.: -
Gujarat, Maharashtra, Chennai, and Delhi.
02 HINDALCO Aluminum
Organization Structure
The size of this particular unit “INDIAN RAYON & INDUSTRIL LTD” is
large scale industry. We can say that of this unit is heavy industry, because it processes
all feature of heavy industries like it has large amount of capital, have a production
cycle & also uses heavy & costly machinery & bulk material. Hence it is quite nature
that this industry requires large number of person.
‘INDIAN RAYON & INDUSTRY LTD” is a public limited company this
company is in corporate on 26th September, 1956 under the companies Act, 1956 &
they have started public issue. This production process is also long duration.
Here each Department has his Department heads. The organization adopts
Departmentalization. The position indicating on horizontal line as per relationship.
➢ 5’S CONCEPTS
a) “S”(Seiri) : Sort out unnecessary items in the work plase & discard
them.(Organization)
b) “S” (Seiton) : Arrange necessary items in good order so that they can
be easily picked and used. ( Neatness)
c) “S” (Seiko): Clean & maintain workplace so that there is no dust and
dirt.(Cleanliness)
GROUP VALUE:
LITERATURE REVIEW:
During the literature review the attempt was made to undertake the detailed
review of all the secondary data available regarding the chemicals. The major step of
the literature review is as follows:
➢ Detail information regarding the product was collected.
➢ The list of the industries lying in the each end use segment was collected.
RESEARCH
METHODOLOGY:
INTRODUCTION:
As per the project has to be completed within the resource limitations of the
time, money, etc. the systematic methodology was adopted to have the efficient
utilization of resources and to provide the guideline for carrying out research. The
framework of the methodology adopted had really help for completing the project
easily, economically, efficiently and timely. Throughout the complete project work
followed without any major changes in it.
Objectives:
➢ To find out level of product quality and quantity by Indian Rayon.
➢ To find out delivery performance.
➢ To find out quality of documentation about order status.
➢ To find out availability of after sales services.
➢ To find out the complaint about the product.
➢ To find out the response of the marketing persons of the Indian Rayon.
Field research:
Secondary data has its limitations. It dose not provide detailed information
regarding present policy and future scenario etc. in detail. To overcome this limitation
of secondary data, the main research was conducted. The main objective of field
research was:
➢ Sampling plan:
In this field study, the sampling plan is not universe because I have visited only customers of
Jetpur, Navagadh, Veraval and Ahmadabad.
There are many methods of data collection. Here, we will use the questionnaire
method having some important questions.
PRODUSTION
DEPARTMENT :
INDEX
PRODUCTION DEPARTMENT :
INTRODUCTION :
The main raw material for the manufacture of yarn is wood pulp. Different
types of pulp are used in the process depeding upon the market availbility and for
acquiring the required quality. The pulp is also imported. Apart from pulp, the other
major raw material are castic, sulphric acid and carbon di-sulphric. The Company has
gone for backward intergrating by manufacturing sulphric acid and carbon di-sulphric.
Input
• Material Production Output
• Labour
Process • Produ
• Capital ct
• Energy • Servic
• Informati e
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Rayon Plant:
The Rayon Plant located at Veraval is an ISO 9002 and ISO 14001 certified
Plant. The main product of the Rayon Plant is the Viscose Filament Yarn apart from
chemicals like Sulphuric Acid, Carbon-di-sulphide, which are both consumed in-
house and Sodium Sulphate, which is a by-product.
Viscose Filament Yarn : 49 Tonne per day Company is the market leader in
terms of Sales and Quality.
Exports constitute about 17% of the total turnover.
Power Plant:
To meet the power and steam requirement of the Rayon & Caustic Plant, the
company has set up a 34.5 MW Thermal Power Plant with the state of art technology.
No. Of boilers 3
The CFBC boilers are considered to be the most efficient and environment
friendly boilers and it provides excellent combustion and emission characteristics and
is flexible in using different combinations of fuel.
Caustic soda being one of the major inputs for producing Rayon a modern
Membrane Cell Technology Chlor-Alkali Plant has been installed and commissioned
in the year 1997. The Caustic Plant is integrated with Power Plant & Rayon Plant.
Caustic Soda Plant is highly Power intensive & integration with Power Plant provides
multiple advantages.
There are elevan units working under IR division of Birla Group. In every
unit various are produced. Here we can mainly concerned with Rayon’s division,
manufacturing.
➢ Viscose Filament Rayon Yarn.
➢ Sulphuric Acid.
➢ Carbon Di-Sulphide.
➢ Anhyrlrous Sodium Sulphate.
Vital and essential for viscose filament rayon wood pulp, caustic soda (NaOH)
,WHILE FOR THE PRODUSTION OF THE Sulphric Acid Sulphur, Oxygen gas and
water are requried for production of Carbon-Di-Sulphate.There is separate plant for
each product. The fourth product is a by-product. The use of each product is as under.
➢ Chemical industry.
➢ Agro-Chemical industry.
➢ Paint industries.
➢ Dye industries.
➢ Medicine industry.
Uses of Carbon-di-sulphide:
➢ Glass industries.
➢ Pharmaceutical industries.
➢ Rayon industries.
➢ Base of Agro-Chemical industries.
➢ Glass industries.
➢ Paper industries.
➢ Dye industries.
➢ Paint industries.
MNUFATURING PROCESS :
Raw-Materials Chemicals
Wood pulp (Cellulose) Sulphuric acid
Wood fibred Carbon Di sulphide
Flax fibred Sodium Sulphate
Staple & Synthetic fibred Caustic Soda
Cotton Staple & Synthetic Yarn
Carbon Black Feed Stock / Coal tar/ Fabrics/ Others
Above 80% of the Wood pulp is importing form outside India, Since it is
imported form Canada, Sweden and South Africa. The sheets of Wood pulp are made
for cellulose form the following three:
➢ Eucalyptus (S.A)
➢ Spruce (Canada)
➢ Bamboo (India)
Production process :
It undertakes different type of departments which are as under
Viscose Department
Ripening Room
Spinning Department
After Treatment Department
Textile Department
Packing Department
Transport
PRODUCTION CAPACITY:
Business-wise capacity
As on 31 March 2008 31 March 2009
Manufacturing capacity
Viscose filament MTPA 16,400 16,400
yarn
Caustic soda MTPA 82,125 91,250
Insulators MTPA 38,800 38,800
Carbon black MTPA 2,30,000 2,30,000
Flax yarn Spindle 15,340 15,084
s
Worsted yarn Spindle 25,548 25,548
s
Wool combing Cards 6 7
Linen fabric Looms 107 106
Urea (Reassessed MTPA 8,64,600 8,64,600
installed capacity)
UTILIZATION OF PRODUCT:
Garments:
The division will continue to maintain its edge through innovative product
differentiation, aggressive expansion of its retail reach in malls and high streets.
Providing the consumer international class experience of its life style brands. The
company plans to introduce international labels in the current fiscal policy.
Carbon black:
With the upswing in the Auto & Tyre sector, the company’s carbon black
business continues with its upward climb. There is reason to believe that this
buoyancy is here to stay for a while.
Textile:
Insulator:
Insulator JVS should contribute positively with the stabilization of its new kiln
& quality efforts.
PLANT LAYOUT :
“A good plant layout is one which allows material rapidly and directly for
processing. This reaches transport handling, clerical and after costs down per unit,
space requirements are minimized and reduce idle machine and idle main time.”
IRadopt process layout in his Viscose Filament yarn plant also in caustic soda
plant. There is separate department of each process such as viscose dept, spin bath
dept, spinning dept, after treatment dept, textile dept and packing dept and raw
material, semi finished goods and finished goods are transfer one process to another
process by using conveyers, rails, cranes, trucks.
MATERIAL HANDLING :
“Material handling is the art and science involving the movement, packing
and storing of substance in any form.”
-- American Handling society
Material handling can be defined as “controlling the amount, location,
movement and timing of the various commodities used in and produce by the
industrial enterprise.”
INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) is totally using the
automatic process for production, but at certain stage uses equipment for the sifting of
raw material. The company use trolley as an equipment for material handling in its
viscose section to brought up the wood pulp from the storage department an in after
treatment department to put the cakes in washing and knitting. After the last stage of
production, the final product sends to the packing section with the help of trolley.
Many a times INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) uses
➢ Conveyers
➢ Rails
➢ Crain
➢ Trucks
(For the supply of raw material to various departments.)
The diesel power house of the INDIAN RAYON (A Unit of Aditya Birla Nuvo
ltd.) uses conveyer belts for the supply of coal that is import from Bihar. Where the
other raw materials like wood pulp, Sulphuric etc. are brought by land route. I.e. rails
and truck to the factory.
PURCHASE DEPARTMENT :
“The task of purchasing is too related to going to the open market, finding
the desire material at the lowest possible price and selecting the supplier to offer
minimum prices having required quality of material.”
The above question are comparing on the basis of comparison chart which
they prepare with the help of all the information. The decision of purchase is one by
the authority. The purchase order is placed on the basis of feasibility. So, we can say
that INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) applies integrated material
management concept.
Store management :
The store dept. of the INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.)
receives the raw material which was ordered from the supplier. This dept. prepares
good receipt note (GRN). One copy of GRN is send to that dept. which has placed an
indent. Particular dept. approves the materials and sends requisition to store dept. and
collect the material. On the basis of GRN, final invoice is paid Account dept.
Inventory control :
Inventory control one of the key factor on the basis of which the company can
take, decision on behalf of that the cost can be controlled. If the company having a
good control on the inventory than the cost can be controlled more effectively.
The inventory control helps the company in forecasting the feature demand of the
goods as per the requirement of the production and the market.
The commonly used inventory control methods that a company uses are the
EOQ and ABC.
In this method the feature demand of the inventory is been identified as per the
requirement of the company, the key focus in this type of inventory control method is
the optimum utilization.
In this type of inventory control method the name itself states the use and
potentially which lies in theirs method. In this method the goods are divided in such a
way that in response to its use and order and cost as the goods are divided in parts as
according to A.B.C.
Quality control :
1. product-service design
2. operating system-makes a product/provides a service
Quality policy :
They are the first “Rayon Plant” in India to be accredited with, “ISO – 9002
Certification.” They are even the first “Rayon Plant” worldwide to get the “ISO 14001
Certification.”
They are the only “Rayon Company” to have won the prestigious “Synthetic
Rayon Textile Export Rayon Promotion Council (SRTEPC)” award four years in a
row since 1995. This be speaks the stress we lay on internal quality controls. Their
standards of inspection are most stringent.
➢ Whiteness
➢ Brightness
➢ Denier
➢ Number of filaments
➢ Colour
➢ Cone weight
Maintenance is the key to zero loss, zero breakdowns, zero accidents, and zero
defects. It is in short a Zero-sum philosophy. This concept was put forward by the
Japanese Management expert Seiichi Nakajima in his gospel “Introduction to total
production Management” in 1984 Yamaguchi works at the Japanese institute of plant
management (JIPM). This is a temple of total productive Management (TPM).
Yamaguchi is teaching TPM to Indian companies.
PERSONAL
DEPARTMENT :
INDEX
PERSONAL DEPARTMENT:
INTRODUCTION :
PERSONAL DEPARTMENT:
➢ It mainly deals with labor force from their recruitment to the all officer connect
labor & workers as consulting agent.
ORGANIZATION STRUCTURE
OF
PERSONNEL DEPARTMENT:
MANPOWER PLANNING :
Manpower is the key economic resources which should demand the same
attention from the company that it gives to planning at finance, equipments, raw
materials, production, sales and profits. A manpower planner functions should be:
Manpower planning is the process of assigning the right number of people right
kind of people at the right time doing work for which they are economically most
useful.
✔ Permanent
✔ Badly
✔ Temporary
The badly worker is the substitute for the permanent worker in the absence of
the permanent worker.
The temporary worker is employed for a limited period for a temporary work.
The causal worker is employed for an occasional work. The present split up to
workers & staff IR is given below:
➢ Recruitment process:
Recruitment process for blue collar worker is called traditional method. These
are stages of recruitment process for blue collar workers. They are as follows:
✔ Within organization. i.e. permanent workers.
✔ Badly or temporary workers.
✔ Trainees.
✔ Apprentices.
✔ Casual applicant.
✔ Employee recommendation of trade union.
✔ Labor contractors.
If any worker remains absent or leave the job and it become possible to
transfer any other worker in the vacancy.
If any worker dies than as per vacancy available to his son is given to “sons of
the souls” is recruitment of labor.
Selection:
Selection is the process to choose or picking up the suitable candidate by
rejecting or excluding unsuitable.
For technical staff and administrative persons, Indian Rayon & Industries Ltd.
Arranges a written test and it is followed by personal interview. The performance of
candidate in both written test and oral test is given base for selection. The selected
employees are taken on the period of six month or twelve month. All the employees,
if found suitable during the period are chosen during the final selection and gets
permanent job. For white collar job, the company adopts the following stages for
selecting prospective candidates.
✔ Reception of application.
✔ Preliminary interview.
✔ Application blank.
✔ Psychological test.
✔ Interview
✔ Reference checking
✔ Medical examination
✔ Final selection
➢ Promotion:
Promotion means increase in authority, responsibility, status, salary, etc. it
means to do up liftmen of an employee within the organization and push in the
direction of top level.
➢ Transfer:
Transfer means change in work place or department. The authority,
responsibility may be more or less or remain constant in transfer.
PERFORMANCE APPRAISAL :
➢ Motivation:
“The emphasis industrial psychology has shifted from the studies of the
isolated individual and physical environment to the consideration of motivation &
morale.”
- I.A.C. BROWE
IR motivates staff by performance appraisal. Every staff member recognizes
his work and he always tries to do better work & effective work if his work is
recognized.
➢ Quality circle:
JOB DISCRIPTION :
The first & immediate product of job analysis process is the job description. It
is an important document which is basically descriptive in nature & constitutes a
record of existing pertinent job facts.
In IR the matter of job description being confidential, we have not been given
the more information about its uses, contents, written methods, etc.
Just we have been said that training & HRD department prepares a file for each
job for the same purpose.
It includes:
➢ Title of job
➢ Nature of job
➢ Job summery
➢ Working condition
➢ Supervision given or received.
organization. Permanent workers are provided 10% and badli workers are provided
7.5% allowances.
Clerks are provided as per the terms and condition of the government from
work.
In IR wages & salary is always paid through the bank to the worker and staff
from the bank counter.
There are two systems by which wages are paid. They are:
➢ Time wage system
➢ Piece wage system
TRADE UNION :
There are more than 4200 employees in organization and for sake of
protection of their rights have formed their trade union. Presently, there are 3 trade
unions:
Only workers are not members of the trade union, staff employees has
also get the membership of trade union from above employee union, its strength is
60% of total working force.
Company has been keeping a good relation with trade union has a
top position in organization.
➢ Republic day:
The company also celebrates the republic day with arranging many sports
activities & other programs.
➢ Library:
IR has a small but very useful library in company. It also gives the facility of
internet to its employee and Mr. J. V. Dave very well runs it.
➢ Quarter facility:
The IR is having quarter with 2 rooms, kitchen for administration and
executive officer as a normal payment of Rs. 100. staff pays Rs.70. bachelor equipped
with canteen, mess and common room.
➢ School facility:
Both science & commerce up to 12th std. affiliated with Gujarat board.
Approximate number of students every year is 2000. 40-50% of the students are
employees’ children.
➢ Medical facility:
Company has its own dispensary in factory. Also in this dispensary
workers are treated up on free of charge. Company has its own doctors for this
dispensary.
Time is precious and we cannot get the time once passed so it is not only the
responsibility of an individual’s but only the responsibility of the industries to make
best use of the time. The company has time keeping system.
➢ There are 3 shifts at Aditya Birla Nuvo Ltd. They are as under:
Shift:
(A) 7: 00 AM - 03: 00 PM
(B) 3: 00 PM - 11: PM
(C) 11:00 PM - 1: 30 PM
\
WORKING OF ESI SYSTEM :
ESI means employee state insurance scheme. It is necessary in all then
company according to 1948 act, an insurance facility provided to the workers. The
deduction of salaries of worker is made every month by the company.
If any accident occurs on the job to the worker this reserved money is given
him from the insurance. If any kind of illness is there this money is used by the
company. The worker can get salary without work up to 2 months according to
scheme.
But, ESI scheme is not applicable for this unit, instead of it (IRIL) has
insured all of its employees under oriental insurance company and it has own
dispensary.
IR manages PF scheme for the employees who are receiving salary about
Rs. 1600 per month and remaining employees are covered carried on by the
government rules framed.
Industrial relation :
SOCIAL RESPONSIBILITY:
MARKETING
DEPARTMENT:
INDEX
MARKETING DEPARTMENT :
INTRODUCTION :
Marketing is a process by which individuals and groups obtain what then need
and want by creating and exchanging products and value with others.
A market consists of all the potential customers sharing a particular need or
want who might be willing & able to engage in exchange to satisfy the need or want.
The concept of market brings us full circle to the concept of marketing. Marketing
means working woth the markets to actualize potential exchanges for the purpose of
exchanging human needs and wants.
The Indian Rayon, a unit of Adity Birla Nuvo Ltd. Has a very efficient and
excellent marketing department, which tries to provide maximum satisfaction to the
customers while having reasonable, profits on the other hand.
CUSTOMER IS KING.
GOD FORGIVES, KING DOESN’T”
PRODUCT :
The product is anything that can be offered to satisfy the need or want. Product
is most important and tangible component of marketing program.
Aditya Birla Nuvo Ltd. Create Product plan according to the requirement of
the clients, market condition, cost of products and its rivals.
Product mix:
Product Mix, also called as product assortment is the set of all product and
items that a Co. offers for sale. A Co.’s product mix has certain Width, Length, Depth
and Consistency. Aditya Birla Nuvo Ltd., along with the VFY it also manufactures
some chemicals and by-products, which required for the production of yarns.
Nature Basis
Quality Discount is
Weavers in discount, given for
organized Price lifting higher
Domestic Embroidery,
quantity,
Viscose & Dress Material, sector and discount,
Saris sold through Loyalty timely
Filament Inter-
dealers& payment and
Yarn national Discount,
agents over & above
Cash
discount
Row material
for
manufacturing
Organized as Based on
soap, cleaning
well as Quality order
edible oil,
Unorganized discount booking at
Caustic Domestic
dyeing,
sector the time of
Soda
aluminum
delivery
sector, VFY,
Textile, etc...
RImparting
P Periodic
Sustainable
Building
Partnership
Effective
OTIF &goodEffective
elre Distribution
Customer
Personal
Relations
Marketing
communication
practices ,of
raodSatisfaction
Rapport
logistic
WCM/TPM
v Survey
in
u Network
oti
c
d
eiV
dcin
sg Tolani Institute of Management Studies
tT
u
es
sM
tact
ojh
o Indian Rayon
on
m
m
ero
er
rB
–
sM
u
e
yC VFY & CAUSTIC MARKEING :
C
eo
o
trm
.sm
m The Indian Rayon . has three main plants out of which three Plants are:
ep
1.Rayon plant
r
l
c2. Caustic Plant
a
i
ia3.Power plant
n
l Produces Viscose filament yarn and chemicals respectively.
t
The IR has two Marketing Departments and both have different marketing sub
sS
R
u committees for Rayon products and Caustic products.
p
e
p
s
op IR has its main sales office at Mumbai, but at Veraval it has only dispatch
roffice from where they send product as per instruction of Mumbai Head office for
o
tSales.
n
s
s
e IR believes that satisfied customer is a result of chain of satisfied internal
customer.. Subcommittee assured to implement systems that directly lead to higher
T
ilevel of satisfaction of customers. Directly linking with vision strive to become a
mworld class customer oriented organization with special focus on creating value for
ecustomers while increasing the revenue inflow on a sustainable basis. Achieve higher
level of customer satisfaction through institutionalization of systems. In this report,
–both the Plants’ Marketing information is included in two different segments. As:
W
✔ iVFY (Viscose Filament Yarn) Marketing
✔ tCaustic marketing
h
i
n
4 VFY MARKETING
8
MARKETING ANALYSIS :
h
r
s
Tolani Institute of Management Studies
Indian Rayon
Objectives :
Marketing strategies
Creating responsive marketing structure :
Customer satisfaction :
The learning of the Customer Satisfaction surveys are shared with employees in
the form of “Customer Satisfaction Survey Report”.
Customer complaints :
Export
Domestic
TheShare
market share
rayonCetdiIRu
7%240165 NRCBKeshor29%4ma
0%
8%37 32%
major competitor of Indian Rayon is the Century Rayon. Kesoram Rayon and
5% 16%
National Rayon are other VFY market players. RAY ONE has 29 % share in Domestic
7% 42%
Market, it has been striving to increase its export and captured 42 % of total VFY export
29%
from India with a growth status of 26.7 % in 2000 – 01 to 42 % in 2008 – 09.
24%
Indian Rayon
Century
Keshoram
NRC
37% BRC
8% 32%
CAUSTICMARKETING :
Aditya Birla Group’s worldwide position in caustic market:
➢ Production-Delivery alignment.
➢ System Improvements
➢ Customer Support Services
➢ Customer Satisfaction Assessment
➢ Internal Customer-Supplier Relationship Assessment
➢ Systems Improvements.
➢ Customer Support Services.
➢ Customer Satisfaction Assessment.
➢ Review Mechanism.
➢ Internal Customer-Supplier Relationship Assessment.
➢ Monthly review of QCDIP in L2 and L1 team meetings.
➢ Systems are institutionalized for measuring, monitoring.
➢ Market Intelligence System & Monthly MIS.
➢ Progress-reports on Action-plans.
➢ Comparative Performance analysis with group chemical units.
➢ Monthly Performance review meetings.
➢ Hired, outside research agency to conduct independent customer satisfaction
survey.
➢ targets.
Aditya Birla Group has a central marketing setup between all the AB group’s
Companies which are manufacturing Chemical products. Each unit is look over
specific area for the marketing, which are specified by the central committee.
There are six units of AB group in India which produce Caustic products, these
are Veraval, Baroda, Nagda, Garhwali, Delhi & Hyderabad. These all the units have
allotted regions in which it is situated and nearby area for the Sales & Marketing
activities.
Eastern
Gujarat
Saurashtra
Southern
Madhya
Delhi,(Except
India,
Punjab,
Pradesh,
India
&
Eastern
Haryana,
Kutch
Chhattisgarh,
Kutch
part
&
Jammu,
& of
Himachal
Nagpur-
Saurashtra),
UP
Western
from
Chandrapur
Pradesh,
Western
Maharashtra
Area
Rajasthan
Kanpur
& Southern
UP, &
onwards
Eastern
Rajasthan
Rajasthan
Nepal
and
Bangladesh
MARKETING MIX :
Marketing mix is the set of marketing tools that firm uses to pursue its
marketing objectives in the target market.
It consists of everything the firm can o to influence the demand for its
products. The many possibilities can be collected into 4 groups of variables known as
the four Ps i.e.
PLACE
Channels
Coverage
Assortments
Locations
Inventory
Transport
PRODUCT
Product Variety
Quality
Design
Features
Brand Name
Packaging
Sizes
PROMOTION
Sales promotion
Advertising
Sales force
Public elation
Direct marketing
PRICE
List Price
Discounts
Allowance
Payment period
Credit terms
SALES PROMOTION :
The head office of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.)
does all the activities of the sales promotion. It promotes its sales via dealers i.e. the
product is sale thought middle man.
MARKET SEGMENTATION :
“Market Segmentation consists of taking this total market for the product
and dividing it into several sub-marketer segments each of which tens to be
homogenous in all the significant aspect.”
The company identifies different ways to segment the market and develops the
profiles of the resulting market segments.
There are two approaches regarding market segmentation:
➢ People oriented approach
➢ Product oriented approach
INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) uses ‘people oriented
approach’ method for market segmentation. They classify their consumer on the basis
of place, income, geographical location, etc.
The branches of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) are
located at Ahmadabad, Delhi, Mumbai, Amritsar, Surat, Bangalore, and Madras. Its
head office is situating at Mumbai which takes all the decisions regarding the
company’s products.
There are different manufacturing companies that consumes and demand for
the specific type of yarn of very fine quality. The demand for yarn differs from
company to company on the basis of their handloom production. So, this company has
segmented. The total market on the basis of product application consumer industry
wise.
The INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) marketing office
is at Mumbai. The company has various type of segments. They are selling its product
in India as well as exporting in many countries.
➢ Branch abroad:
ADVERTISING MANAGEMENT :
Rayon Yarn is use as a raw material in textiles industries that are not affected
by any media of advertisement and that is the reason why the company is not
advertising its product.
The company publishes magazines, which depicts various facts and figures of
companies manufacturing process, EXIM policy, pricing policy, strategies, etc.
I short; the companies adopt the direct advertising method.
CHANNEL OF DISTRIBUTION :
FINANCE
DEPARTMENT :
INDEX
FINANCE DEPARTMENT :
INTRODUCTION:
2. Financial control:
Financial control is a critically important activity to the help the business
ensures that the business is meeting its objectives.
ORGANIZ
ATION STRUCTURE
Board of director
G.M. Finance
O Sr. Manager
Assistant
Assistant
f Manager
Manager
f Creditor
Salary
Cash
i
c
e
r
Officer
PRODUCTION:
Source: As per the Information Given by Production Manager
CAPITAL STRUCTURE :
Capital structure may be defined as the combination of debt and equity that
lead to the maximum value of the firm.
Share Capital of the INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd). Has
same as compare to previous year. Company has also increase reserves & surplus,
secured loans, unsecured loans respectively, 53.72%, 12.76%, and 76.74% as compare
to the previous year. Company has paid to the preference share capital decrese51% in
this year.
CAPITALIZATION :
For the Co the Book value and Real value of Share are two main components
or assessment of Co.’ financial position which can be calculated as per under.
= 95.00 + 5396.50
9.5
= 578.05 Rs.
There are three conditions of the company in term of the capitalization are as
follows.
Fair capitalization :
➢ It is received when earning of the unit is same to the capital employed.
Earning = Capital Employed.
➢ And book value of a safe is also equal to the real assets.
Book Value = Real value
Under capitalization :
➢ It is found when earning is more than capital employed.
EARNING > CAPITAL EMPLOYED.
➢ In this case book values of assets of the firm are less then the real value.
Over capitalization:
➢ In this case book value of the assets of the firm are more then the real value.
BOOK VALUE > REAL VALUE
The closing market price of the Co. per share is Rs 425.55 as on march-09
which is greater than its book value per share.
From this we can say that co. is facing under capitalization. The above graph
depicts that the Co’s earning per share has increased by 12.83% as compared to its
previous year.
LEVERAGE:
The employment of and asset or source of funds for which the firm has to pay
a fixed cost or fixed return is termed as Leverage.
There are two types of leverages:
• Operating Leverage
• Financial Leverage.
➢ Financial leverage:
➢ Operating leverage:
CAPITAL BUDGETING:
These benefits may be either in the form of increased revenue or decreased cost.
Aditya Birla Nuvo Ltd. undertakes Capital Budgeting every year with the help
of financial experts of financial dept on basis of payback period method.
The Co. always aims at increasing and expanding the installed capacity of
Rayon Yarn production. It constantly tries for its success. At present the installed
capacity of plant is 16000 tons/ annum.
At present the main objective of Company is replacement and modernization
of machine and fixed assets and business expansion by adding new machineries and
technology. The unit base takes this decision on payback period.
The operating cycle can be said to be at eh heart of the need for working
capital.
The ray one industries are manufacturing concern it needs a large amount of
fund for smoothing day-to-day operation. This working capital can be classified in
terms of cash, inventory, loans & advances and debtors or it can be said a current
assets of the organization. This is very significant part of the total asset. The current
assets of the year 2006-2007 are given below.
Current assets:
Net working capital concept also covers the question of judicious mix
of long-term and short-term funds for financing current assets. For every firm, there
is a minimum amount of net working capital, which is permanent. Therefore, a
portion of the working capital.
The credit policy of the firm affects working capital by influencing the level of
book debts. The credit terms to be granted to customers may depend upon norms of
the industry to which the firm belongs. But a firm has the flexibility of shaping its
credit policy within the constraint of industry norms and practices. The firm should be
discretionary in granting credit terms to its customers. Depending upon the individual
case, different terms may be given to different customers, will be detrimental to the
firm and will create a problem of collecting funds later on. The firm should be prompt
in making collections. A high collection period will mean tie – up of funds in book
debts. Slack collection procedures can increase the chance of bad debts.
In order to ensure the unnecessary funds are tied up in book debts, the firm
should follow a rationalized credit policy based on the credit standing of customers
and other relevant factors. The firm should evaluate the credit standing of new
customers and periodically reviews credit – worthiness’ of the existing customers. The
case of delayed payment should be thoroughly investigated.
➢ Marketing tool: -
To beat the competitors and to attract the potential customers, Ray one
division offers nominal credit period as marketing tool
➢ Transit delay: -
Indian Ray one division has the market throughout the country so it takes
time for the goods to reach from one place to another. So transit delay is one of factor
for which the company has to allow the credit period as the days of grace. Days of
grace vary from place to place depending upon the distance.
➢ Industrial practice: -
Ray one division is the industrial commodity seller the output of which is the
input of other industry. So it sell the product it has to allow the credit period to these
buyers.
➢ Buyer requirement:
In some cases the buyers having the good payment track record are no
interested to operate without credit period.
➢ Growth: - The need for working capital is directly related to the firm’s
growth.
Empirical observation show that the financial managers have to spend much of
their time to the daily internal operations, relating to current assets and current
liabilities of the firms. As the largest portion of the financial manager’s valuable time
devoted to working capital problems, it is necessary to manage working capital in the
best possible way to get the maximum benefit.
It refers to the firm’s investment in current assets. Current assets are the assets
which can be converted into cash within an accounting year or operating cycle.
INVENTORY MANAGEMENT :
“Inventory refers to the stockpile of the products a firm is offering for sale
and the components that make up the product.”
RECEIVABLE MANAGEMENT:
It means when firm make ordinary sales on credit and payment has not been
received yet. Such management of receivables Aditya Birla Nuvo Ltd. grants the
credit term to its customers for 15 days. However, in exceptional cases it is increased
to certain extent. The purchaser sends bank drafts on expiry of credit period.
CREDIT STANDARDS:
As per the industrial standard for rayon, the organization runs well on the track
of Average collection period. But because of the core competition in the chemical
market the avg. collection period increased and reach near to the 25 to 30 days, so it
can conclude that organization investment in receivables is not very high.
The customers are paying its obligation to the organization in time. The
default rate is nearly zero in the organization.
CREDIT TERM
VFY = 15 days
Chemical = 45 days
The collection of the fund is done by HDFC Bank, which plays and agent role.
The avg. collection period for the account receivables between 21 to 27 days.
Total debt of company as on 31st March, 2005 is 260.90 corers which have
increased as compare to that of the last year’s debt. i.e. 31stMarch, 2004 was 186.14
crores. So, it can be said that debtors are up by Rs. 74.72 cores. Major addition was
on account of insulator domestic marketing.
As a result of the above mention, there is an increase in the Net Sales of the
company by 9% as compare to that of last year’s sales.
= 14200.44
1343.60
= 10.57
CASH MANAGEMENT:
Generally any organization holds the cash for ;
➢ Transaction motive.
➢ Precaution motive.
➢ Speculative motive.
➢ Compensating motive.
INDIAN RAY ONE holdsthe cash only for the transaction motive. It holds the
cash for smoothing the day-to-day operation only. If there is surplus of cash in the
Co., it is transferred to the CFD while if there is deficit of the cash in the organization,
it borrows it from the CFD and also decision regarding the investment of cash in to
Marketable Security is done through the CFD only.
Cash collection;
Cash Disbursements;
INDIAN RAY ONE keeps a maximum level of cash balance worth and average
payment for three days. If cash is more than its maximum level than the cash if
transferred to the CFD and if cash is less than the level than the requirement of the
cash is borrowed from the CFD.
DIVIDEND DISTRIBUTION :
Dividend refers to that portion of a firm’s Net Earnings which are paid out to
the Shareholders. A major decision of financial management is the dividend decision
in the sense that the firm has to choose between distributing the profits to the
shareholders and plugging them back into the business.
In IR Co. the board proposed the dividend of Rs. 4.00 per share for the year
2005-06. It is same as compared to previous year. Dividend payout ratio on of 2005-
06 is increase 3.44% as compared to previous year.
PROFITABILITY RATIO :
EBIT
ROI= * 100
Capital Employed
Financial year 2008-09 (Rs. corer)
YEAR EBIT CAPITAL RATIO (%)
EMPLOYED
2008-09 408.26 8521.46 4.79
2007-08 510.15 6686.16 7.63
EBIT
ROE = * 100
Equity Funds
Financial year 2008-09 (Rs. crore)
YEAR EBIT EQUITY FUNDS RATIO (%)
PBT
NPR = * 100
NET SALES
Financial year 2008-09 (Rs. crore)
YEAR PBT NET SALES RATIO (IN % )
2008-09 162.30 14200.44 1.14
2007-08 314.56 11249.60 2.80
➢ CURRENT RATIO :
CURRENT ASSETS
CURRENT RATIO =
CURRENT LIABILITIES
➢ Rayon division has begged “ Gold Trophy” for highest export from synthetic
and Rayon Textile Export Promotion Council.
➢ “First Prize” of National Energy Conservation Award -2003 for chlor – Alkali
sector both from ministry of power , New Delhi.
➢ The Gujarat safety Council has conferred upon the “Certificate of Honor
2002” upon the division base on its safety record and performance.
Achievements:
➢ The prime minister, Dr. Man Mohan Singh conferred the national energy
conservation award on Indian Rayon.
➢ Mr. S. P. Singh had the privilege of receiving the award on behalf of Rayon
Division, Veraval.
RECOMMENDATIONS:
This experience from my organization study it can be said that the co. is
constantly hardworking for the improvement of its product quality through the
adoption of world class manufacturing policy.
Thus it is a truly highly bench marked company. It does not require any
recommendation. Only one thing the co. should pay more attention towards its human
assets and technology.
CONCLUSION:
After going through the five days training program, functioning of the
organization which I observed fro that it can be concluded that Indian Rayon &
Industries Ltd. is the large scale manufacturing organization and successful player in
the VFY and chemical products. The company has the strong financial structure and
has a food reputation in the market.
Personnel department:
Marketing department:
Here, we can conclude that main marketing officer of this unit is at Bombay it
is very effective at veraval also because they are trying their best to promote sales by
the way of marketing research.
Financial department:
This company has enough sources and proper allocation of fund and defect
financial position of the company is good enough.
The company is also doing its business with the global market. In India, the
share of Indian Rayon and the total export of the VFY are highest.
The total turnover, export, profit and the Co.’s history and development all
reveals that it is highly reputed and progressive company. It is on path of success
APPENDIX:
Production & Sales quantity:
Unit 2008- 2007- 2006- 2005- 2004- 2003- 2002- 2001 2000 1999-
s 09 08 07 06 05 04 03 -02 -01 00
Production (Quantity)
Viscose MT 16,625 17,00 17,669 17,23 16,42 16,06 15,87 12,2 15,4 12,62
filament 0 3 0 0 3 53 96 1
rayon
yarn
Caustic MT 78,574 74,46 67,663 57,05 45,45 39,30 34,87 23,9 30,6 27,41
soda 8 1 7 5 5 76 20 9
Spun MT 9,185 11,26 17,720 19,19 15,44 14,42 13,78 12,7 13,4 14,11
yarns 1 0 5 1 1 17 90 3
Fabric 000 3,646 4,792 5,088 4,646 3,751 2,734 3,627 3,90 5,30 5,902
MT 6 7
Urea MT 1,069,6 880,9 1,028,0 575,6 - - - - - -
(merged 91 91 64 46
w.e.f. 1
Septem
ber
2005)
Carbon MT 202,07 215,1 182,66 175,0 164,0 118,7 112,5 93,6 89,7 95,82
black 6 03 8 80 25 07 63 34 39 8
Insulato MT 32,904 32,92 - - - - 7,673 25,2 25,6 24,35
rs @ 1 77 65 3
Unit 2008- 2007- 2006- 2005- 2004- 2003- 2002- 2001 2000 1999-
s 09 08 07 06 05 04 03 -02 -01 00
Sales (Quantity)
Garmen '000 11,754 10,96 10,709 11,10 8,332 7,552 6,173 7,06 5,88 1,130
ts Nos. 6 4 8 4
(acquire
d w.e.f.
1st
January
2000)
Viscose MT 16,792 17,92 17,039 17,38 16,44 15,69 15,42 12,8 15,3 13,50
filament 3 0 5 4 2 12 26 7
rayon
yarn
Caustic MT 77,590 74,44 67,226 56,95 45,92 39,34 34,20 24,11 31,1 27,51
soda 1 4 0 4 7 1 04 6
Spun MT 9,271 11,34 18,357 18,86 15,68 14,59 13,88 13,1 13,2 14,64
yarns 9 6 6 4 2 88 58 1
Fabric 000 4,049 4,710 4,645 4,418 3,593 2,798 3,614 3,78 5,64 6,351
Mtr 8 6
Urea MT 1,072,8 870,3 1,043,5 563,9 - - - - - -
91 05 65 14
Carbon MT 203,82 214,6 180,89 175,9 165,0 118,1 114,2 94,5 91,7 94,65
black 7 17 3 44 95 82 32 04 35 6
Insulato MT 32,561 32,30 7,776 16,24 9,219 6,813 7,596 25,1 25,6 23,70
rs 4 5 84 91 1
(domest
ic sales
since
02-03)
@
@ Insulator manufacturing unit earlier demerged w.e.f 1 August 2002, merged with
Aditya Birla Nuvo Limited w.e.f. 1 April 2007
Balance sheet:
2008- 2007- 2006- 2005- 2004- 2003- 2002- 2001- 2000- 1999-
09 08 07 06 05 04 03 02 01 00
(Rs. crore)
Net fixed 1,605. 1,501. 1,308. 1,135. 810.28 737.5 684.1 775.3 814.0 885.9
assets 0 6 1 5
Investment
s
Long-term 4,982. 3,909. 3,477. 1,415. 618.3 581.6 415.9 438.8 312.6 229.8
investments 4 8 6 3
Current 730.0 97.5 371.8 260.5 81.3 160.0 98.4 1.0 31.2 114.3
investments
Total 5,712. 4,007. 3,849. 1,675. 699.7 741.6 514.3 439.8 343.8 344.2
investment 4 3 4 8
s
Net current 1,483. 1,458. 972.9 1,127. 462.7 318.9 359.8 425.2 438.1 441.4
assets 7 5 6
Capital 8,801. 6,967. 6,130. 3,938. 1,972.6 1,798. 1,558. 1,640. 1,595. 1,671.
employed 1 5 5 9 1 0 2 3 9 4
Net worth represented by:
Equity 95.0 95.0 93.3 83.5 59.9 59.9 59.9 59.9 59.9 59.9
share
capital #
Share 377.4 377.4 - - - - - - - -
warrants $
Reserves 3,649. 3,551. 3,031. 2,124. 1,294.2 1,204. 1,104. 1,020. 1,068. 1,015.
and surplus 2 3 2 1 8 0 1 1 4
(net of
miscellaneo
us
expenditure
not written
off)
Net worth 4,121. 4,023. 3,124. 2,207. 1,354.1 1,264. 1,163. 1,080. 1,128. 1,075.
7 7 5 6 7 9 0 0 3
Long term 2,651. 1,841. 1,869. 972.5 285.3 211.5 197.8 282.7 317.3 320.4
loans 2 2 2
Short term 1,848. 902.2 962.7 591.1 207.7 194.3 70.1 176.4 150.6 275.7
loans 0
Total loan 4,499. 2,743. 2,831. 1,563. 493.0 405.8 267.9 459.1 467.9 596.2
funds 2 4 8 6
Deferred 180.2 200.3 174.1 167.7 125.5 127.5 126.4 101.2 - -
tax liability
Capital 8,801. 6,967. 6,130. 3,938. 1,972.6 1,798. 1,558. 1,640. 1,595. 1,671.
employed 1 5 5 9 0 2 3 9 4
Cash flow:
thereon)
Interest and finance charges paid (254.6) (194.6) (184.7) (62.1) (21.9)
Net cash (used in) / from financing
1,437.3 366.5 1,751.8 675.6 39.1
activities
Net increase in cash and equivalents (7.3) 72.4 2.4 4.8 (3.9)
Cash and cash equivalents (opening
97.2 22.7 20.3 9.4 13.3
balance)
Cash of IGFL and BGFL - - - 6.2 -
Cash acquired on merger of ABIL - 2.0 - - -
Cash outflow on sale of RST unit - (0.0) - - -
Cash and cash equivalents (closing
89.8 97.2 22.7 20.3 9.4
balance)
Ratio analysis:
Unit 08-09 07-08 06-07 05- 04- 03-04 02-03 01-02 00-01 99-00
s 06 05
Ratios and statistics
Operating % 11.6 15.7 16.5 15.9 13.7 15.4 16.0 13.0 13.8 14.4
margin
Gross % 6.9 11.5 12.6 14.7 13.2 15.4 15.1 10.4 10.4 12.1
profit
margin
Net profit % 2.9 6.1 6.6 7.1 6.1 8.3 7.3 3.1 4.8 5.4
margin
Net sales/ X 0.6 0.6 0.7 0.9 1.0 0.9 0.9 0.9 0.9 0.6
average
capital
employed
Interest X 2.0 3.1 3.1 6.5 11.4 10.7 5.5 3.1 2.8 2.5
cover
(EBITDA/
gross
interest)
Debt X 1.2 1.2 1.2 2.9 6.8 1.7 2.0 2.0 1.0 0.6
Service
Coverage
Ratio
ROACE % 5.3 7.5 9.6 11.2 9.7 11.4 11.3 7.6 8.3 5.9
(PBIT/
average
capital
employed)
ROAE % 3.4 6.8 8.4 10.5 8.7 10.8 9.4 3.9 6.2 4.6
(net profit
/ average
net worth)
Current X 2.9 3.1 3.1 3.3 2.7 2.3 2.6 3.0 3.5 3.3
ratio
Debt X 1.1 0.7 0.9 0.7 0.4 0.3 0.2 0.4 0.4 0.6
equity
ratio (total
debt / net
worth)
Debt X 0.6 0.5 0.6 0.4 0.2 0.2 0.2 0.3 0.3 0.3
equity
ratio (long
term debt
/ net
worth)
Dividend Rs. 4.0 5.8 5.5 5.0 4.0 4.0 3.8 3.3 3.0 1.0
per share
Dividend % 30.9 26.3 26.0 25.5 24.1 20.6 24.0 45.5 28.9 11.5
incl.
dividend
tax (as %
to net
profit)
EPS Rs. 14.5 26.1 25.6 24.5 18.3 21.1 17.0 7.0 11.0 9.3
(weighted
average)
CEPS Rs. 29.7 43.9 41.0 38.2 31.0 35.2 32.6 23.0 22.8 20.9
(weighted
average)
Book Rs. 433.8 424 335 264 226 211 194 180 188 180
value per
share
No. of Nos. 155,4 155,0 164,6 89,2 94,1 102,4 117,8 124,1 127,2 133,8
equity 97 28 03 87 37 88 69 53 57 05
sharehold
ers
Closing Rs. 445.0 1,396. 1,070. 748. 402. 188.5 75.3 71.1 80.4 56.3
price as 2 9 0 3
on 31st
March –
NSE
Market Rs 4,227. 13,26 9,992 6,24 2,40 1,128 451 426 481 337
capitalizat cror 4 5 6 9
ion (NSE) e
Price x 30.8 53.6 41.8 30.6 22.0 8.9 4.4 10.2 7.3 6.1
earning
ratio
(NSE)
Price /x 1.0 3.3 3.2 2.8 1.8 0.9 0.4 0.4 0.4 0.3
book
value ratio
(NSE)
Exports Rs. 636.2 624.3 482.6 460. 447. 383.5 372.8 388.3 397.3 296.0
(FOB) cror 1 4
e
Capital Rs. 268.8 224.8 293.9 199. 153. 147.6 33.0 38.9 23.7 185.3
expenditur cror 9 7
e (net) e
Strategic Rs. 1,073. 435.4 2,063. 791. 36.7 165.8 (22.9) 126.2 82.8 5.2
investmen cror 1 6 9
ts (net e
additions)
* before exceptional items
QUSTIONNAIRE:
1) Is company providing accommodation?
Yes No
5) Are you satisfied with the recreational facilities provided by the company?
Yes No
6) Are you satisfied with the wages / salary given by the company?
Yes No
7) Are you provided with the loan facility by the company if required?
Yes No
Yes No
11) Which kind of welfare facilities you would like to add in the list of facilities
provided by the company?
PERSONAL INFORMATION:
Name:
Age: - 20 to 3o 30 t0 40 40 to 50
Above 50
Years of Experience: -
BIBLIOGRAPHY:
Literature:
Web sites:
➢ www. Adityabirla.com
➢ www.indianray one.com
➢ www.adityabirlanuvo.co.in.
➢ www.adityabirla.com/the _group/heritage.htm
➢ www.fabriclink.com/History.html
➢ www.google.com