Institutional Training Report Submitted as part of MBA

Institutional Training Done by Mr. ESJ In

THERMAX INDIA LTD, PUNE JUNE 2010

CERTIFICATE
This is to certify that Institutional Training Report submitted by Mr ESJ in partial fulfillment of the requirements for the degree of Master of BusinessAdministration is a bonafide record of work carried out by her under my supervision. The contents of this report, in full or in parts have not been submitted in any form to any other institute or university for the award of any degree or diploma.

Faculty Guide

Programme Manager

Internal Examiner

External Examiner

TABLE OF CONTENT:

S NO

CONTENT COMPANY PROFILE TOP MANAGEMENT PRODUCT PROFILE BOILER AND HEATING SBU INTRO HUMAN RESOURCE DEPT PRODUCTION DEPT FINANCE DEPT MARKETING DEPT PURCHASE DEPT UTILITY DEPT CONCLUSION BENEFITS

PAGE NO

1 2 3 4 5 6 7 8 9 10 11 12

6 11 15 17 18 35 42 46 51 51 53 53

THERMAX INDIA LTD

CHAPTER 1 INTRODUCTION TO COMPANY:
In the beginning there was fire. Then there was steam. Steam produced mechanical movement. It could be used to produce electricity too. The use of steam rewrote the history of human civilization. It was the driving force of industrial revolution, the precursor of modern age, as we understand it. Even in this age of cybernetics, genetic engineering and information superhighways, boilers that produce steam are critical on-line equipment, across diverse industry segments be it a small scale unit which needs a 600 kg/hr, or a fertilizer plant,which needs a 300 tones/hr high pressure steam generator. THERMAX means maximum utility of thermal energy, name itself specifies the accuracy and efficiency of this fast growing organization. At present, a Pune based engineering company Thermax LTD was started in the year 1966, as a small boiler-manufacturing unit in Dadar (Mumbai). It was named initially as WANSON (INDIA) PVT. LTD as had technical collaboration with Belgian Company called WANSON. It began manufacturing coil type packaged boilers unit called Vaporax and then thermic fluid heater(Thermopac). The then factory, had occupied an area of 5000 square feet, but with increase in production and development of new techniques and wide varieties of boilers it faced the need for more space and hence was shifted to Chinchwad,Pune. In 1980, the company decided to go ahead individually and was named as THERMAX. From then till now, Thermax has grown by leaps and bounds.Today activities of Thermax are no longer confined to boiler making, but are extended to the growing line of businesses like pollution control, industrial & domestic water treatment, surface coating heat recovery unit, chemicals,absorption cooling, & grain storage system.

The Strength Of Thermax India Limited Lies In:

Its Ability To Motivate And Harness The Capabilities Of Its Human Resource Develops And Nurtures A Strong Vendor Base.

Its Commitment to Quality, Cost, Delivery, Safety and Customer Satisfaction.

Strong In-House Research & Development, Coupled With Access To World Class Technology Through Collaboration with Babcock & Wilcox Power Generation Group, Inc. (B&W PGG), a global leader in power generation industry to engineer, manufacture and supply supercritical boilers for the Indian power sector.

Thermax Ltd. is an INR 3,246 crore (USD 800 million) company, providing a range of engineering solutions to the energy and environment sectors.

Sales Turnover of Its Boiler Division Exceeds Rs. 380 crores. An Impressive List Of Customers Adds Testimony To The Capabilities Of Thermax India.

Thermax India LimitedS Success Lies In Management Philosophy Matched By Its Commitment To Total Quality By Identifying And Meeting Customer Needs, Which Would Include The Expectation On Quality, Delivery, Price, Etc., Tuning to the needs of the day, all of Thermax solutions are innovative, energy-efficient, environment-friendly and easy to operate.

Milestones Achieved By the Company:

1966 Wanson India starts operations in Pune, manufacturing small coil-type packaged boilers (Vaporax), in collaboration with Wanson, Belgium. It was the first year of operations; the company employed 145 people and posted a turnover of INR 20.00 lakhs. A S Bhathena was appointed Managing Director.

1973 Wanson receives its first export order for 10 paint booths to the former USSR. Multitherm, India's first packaged water tube boiler for Indian coal, is developed by Wanson R & D. 1975 Thermax gets into the water treatment business, to complement its boiler business. 1976 Thermax acquires Tulsi Fine Chemicals, which later became the Chemical division of the company. 1979 In a synergistic move, Thermax starts the Enviro division for Air Pollution Control equipment. 1980 Wanson India becomes Thermax Pvt Ltd. Conserving energy, preserving the environment was adopted as the corporate vision. 1981 R D Aga appointed Chairman and Managing Director of Thermax Pvt Ltd. 1985 Anu Aga begins her career in Thermax with the Human Resources department. 1986 The company launches the Thermax Service Franchise Scheme, a first of its kind in India. 1987 Thermax introduces vapour absorption machines in collaboration with Sanyo, Japan. 1989 The company forms the joint venture Thermax Babcock & Wilcox Ltd. 1994 Tata McGraw-Hill publishes R D Agas book Changing the Mindset Reflections of a Chief Executive. 1995 On February 15, 1995 Thermax goes public with an issue (IPO) of 60,88,700 equity shares. The issue was over subscribed seven times. 1996 February 16 - R D Aga passes away after a heart attack in Mumbai. February 19 - Anu Aga is appointed as Executive Chairperson. August - Thermax bags the single largest contract for captive power, water treatment and absorption cooling from Arvind Mills. The order value - INR 136 crores.

December - the Energy & Environment Research Centre is inaugurated. 2000 June - Thermax acquires boiler company, M E Engineering Ltd, in UK. July 21 - Prakash Kulkarni takes over as the Managing Director of the company. August 2000, the company forms its Executive Council. September - Thermax gets ISO 14001 certification for its manufacturing facility at Chinchwad. 2001 On January 15, 2001, the Thermax board is reconstituted with four independent directors, three non-executive promoter directors and one fulltime director. In March 2001, Thermax starts subsidiary company, Thermax Inc, in the US. In June 2001, Thermax posts a net loss of INR 13.22 crores. In August 2001, Thermax announces a VRS scheme as part of its restructuring exercise. In all, 420 employees opted for the scheme.

2002 April - Thermax gets ISO 14001 certification for its chemical plant at Paudh. In the same month, Thermax announces turnaround results with a net profit of INR 24 crores. 2003 February 13 - Dr. N D Joshi's Best innovator award Instituted. Shree Cement Project completed in a record time of 17 months. Thermax wins Performance bonus from the customer. March - Anu Aga honoured with Lifetime Achievement Award by Financial Express/Electrolux. 2004 Thermax registers highest ever profit after tax of INR 54 crores. Launches Project Evergreen to consolidate its leadership position in India and prepare for global leadership in chosen fields. McKenzie appointed as consultants in this transformation exercise. Thermax buys out Babcock & Wilcox stake in Joint venture; opens office in China. Thermax ranked No.3 among the top ten places to work (Business Today/Mercer Survey). Anu Aga retires as Chairperson and Meher Pudumjee takes over. 2005 Thermax top line grows by 62% and achieves a Group turnover of INR.1281 crores. International business of Thermax grew by 70% to INR 352 crores. Thermax launches 14 new products and applications during the year. To achieve synergies in related business, the companys six core businesses are restructured into three groups Cooling & Heating, Chemicals & Water and Projects.

Thermax among the 20 Indian companies featured in the Forbes Asia List of Asias Best under a Billion companies. Thermax wins a performance bonus cheque of INR 1 crore from Madras Cement Ltd for fast track completion of its captive power plant.

2006 Thermax posts a record profit of INR 123 crores, up by 77% over the previous year. Thermax group turnover touches INR 1606 crores. Meher Pudumjee honoured with the Young Achiever award by Financial Express. Work begins on an additional manufacturing facility at Vadodara, Gujarat to cater to the growing business of the Boiler and Heating business. Incorporates wholly owned subsidiary in China (Thermax Zhajiang) to expand its China operations and begins work on a manufacturing plant for vapour absorption machines in Jaixing, near Shangai. 2007 Thermax signs technology agreement with German Air Pollution Control leader 2008 On January 29, 2008, appointed of Dr. R A Mashelkar, Independent Director as an Additional Director of the Company with immediate effect. Thermax signs license pact with Babcock & Wilcox

Board of Directors

Meher Pudumjee, Chairperson Meher Pudumjee took over as Chairperson of Thermax Limited on October 5, 2004, after the retirement of Anu Aga. A Postgraduate in Chemical Engineering from the Imperial College of Science & Technology, London, Meher joined Thermax as a trainee engineer in August 1990. Meher is a member of Confederation of Indian Industry's (CII) Family Business Forum and the Young Indians (Yi).

M S Unnikrishnan, Managing Director M S Unnikrishnan, took over as Managing Director on July 1, 2007. Earlier, as Executive Vice President, he was head of the company's project business, viz. captive power, boilers & heaters and air pollution control. He led the human resource function of Thermax during its critical turnaround period and later established the Project Management Office, to spearhead the transformation initiative of the company.

Anu Aga, Director Anu Aga, after retiring as Chairperson of Thermax in October 2004 continues as Director on the Company's Board of Directors. She began her career in Thermax in 1985 and later was in charge of the Company's human resources function from 1991 to 1996. She took over as the Chairperson of the Thermax Group in February 1996, after her husband Rohinton Aga passed away.

Tapan Mitra, Director

Pheroz Pudumjee, Director

Dr. R A Mashelkar, Director

Dr. Jairam Varadaraj, Director

Dr. Von Massow, Director

Executive Council
Ravinder Advani Sharad Gangal Gopal Mahadevan Hemant Mohgaonkar S. Ramachandran R. V. Ramani Dr. R. R. Sonde M. S. Unnikrishnan

Manufacturing Excellence:
Thermax systems and products are backed by three state-of-the-art manufacturing facilities in India, and a newly set up plant for absorption chillers in China. Our manufacturing plants are certified to adhere to rigorous standards: ISO 9001:2000 for quality management for all business operations ISO 14001:2004 for environmental management

 OHSAS 18001:1999 for occupational health & safety for manufacturing operations Thermax manufactures to international standards like ASME, BS, DIN, GOST, API and CE, besides the IBR code in India and AQSIQ in China. Its facilities are inspected by Lloyds, Bureau Veritas, SGS and TUV.

Network
It is a 24 * 7 service provided from a highly secured data centre. Data centre hosts server farms for different applications catering to various business needs. Installed with proximity cards and LCD displays for alerts and warnings, it is manned by skilled professionals to ensure un-interrupted services to the business users. To safe guard Business Interest And To Provide Un-Interrupted Service, The Infrastructure Is Further Strengthened With A State-Of-The Art Business Continuity Centre, Maintained In A Standby Mode. Thermax supports its global client network through an extensive Sales and Service network. With Headquarters in Pune, India, its 19 International offices are located across Asia Pacific, Middle East, Africa, Russia, UK, USA and South America. Exports account for around 20% of Thermax revenues. The company's subsidiaries play a significant role spearheading its business in international markets: Thermax (Europe) Ltd. Thermax Inc., USA Thermax do Brasil Energia e Equipamentos Ltda., Brazil Thermax (Zhejiang) Cooling & Heating Engineering Co. Ltd., China

Product Profile
SOLID FUELS, AGRO-WASTES, BIOMASS
Circulating Fluidized Bed Combustion Boiler (CFBC) Atmospheric Fluidized Bed Combustion Boiler (AFBC) Travelling Grate

OIL & GAS

Bi-Drum Packaged/Site Erected Boiler (FM/HCFM/PFM) Singe-Drum High-Capacity Boiler ("Radiant" Boiler)

Heat Recovery Steam Generator (HRSG)

LEAN GAS FIRED BOILER

Blast Furnace Gas, Coke Oven Gas, Corex Gas Fired Boiler CO/H2 Gas Fired Boiler

FIRED HEATER
Petrochemical Upstream Oil & Gas Refinery

WASTE HEAT RECOVERY BOILER (WHRB)

Sponge Iron Coke Oven Non Ferrous (Copper Smelter/Zinc Smelter etc) Refinery and Petrochemical Cement Chemical Sulphur Recovery Exhaust Gas Boiler Hydrogen Plant

WASTE TO ENERGY
Spent Wash/Spent Grain Fired Boiler Municipal Solid Waste/Refuse Derived Fuel Fired Boiler

SERVICES
Renovation and Modernisation
The boiler is the heart of any industrial plant, and even the smallest problem with it can have an adverse impact on your profits. The Renovation and Modernization group (an SBU of Thermax Ltd) has

successfully implemented R&M solutions for larger boilers and heaters since early 90s. The five-pronged R&M approach, that tailors technology and experience based solutions for boiler users, has benefitted over 150 customers around the world.

1.Performance Enhancement Solutions

Steaming capacity enhancement Efficiency improvement Pollution abatement solutions Instrumentation and controls upgrade Troubleshooting and de-bottlenecking

2.Pressure Part Replacements and Upgrades

Enhancing pressure parts by redesigning heat transfer surfaces like furnace water walls, superheaters, reheaters, economizers etc.

Replacement of pressure parts for life extension

3.Utility Boiler Revamps

Remaining life analysis and life extension studies Selective pressure part replacement/ upgrades Re-engineering of fuel firing system Performance enhancement solutions Emission control solutions

Boilers And Heaters SBU:

Heating, the prime mover of Thermax business continues to maintain its leadership in the Indian market for packaged boilers and heating systems. The wide ranges of customers further reinforce the dominance of the division in the market. The customer portfolio includes industries such as Iron and Steel, Oil and Gas,Refinieries and Petrochemicals,Power Generation,Cement,Textiles, Fertilisers,Chemicals,Pharaceuticals,Food Prossing,Sugar,Beverages and Distilleries,Hotels and Commercial Complexes,Paper and Pulp,Automobile etc

It is a Strategic Business Unit in Itself having the following departments and functions. My institutional training was done in this SBU.

CHAPTER 2: Various Departments:

Few major departments of Thermax India Heating SBU :

Personal Department Production Department Finance Department Marketing Department

Human resource Department

HEAD HR

VICE PRESIDENT

GENERAL MANAGER

HR MANAGER

ASST HR EXECUTIVES UNIT HR MANAGER LINE STAFF MEMBERS

Thermax India Is A Growing As Well As Learning Organization And The Work Atmosphere Is Designed To Encourage And Provide Opportunities For "Knowledge-Enhancement". To All The Employees In Their Sphere Of Work. They Learn, Coach Others, Work As A Team, Provide Leadership And Meet Business Challenges In An Open And Professional Atmosphere.

Hr Values and Principles CULTURE & VALUES

Integrity People & leadership Accountability Speed & adaptability Execution

PRINCIPLES
Passion for customers Innovation is our livelihood Leveraging technologies Excel at globalization Continuous improvement in everything

HR POLICIES:
Employee Welfare Policy Thermax ensures fair payment, benefits and good service conditions to all outsourced employees as well. They are also part of social gatherings and celebrations of the Company.

A transportation facility is provided by Thermax for the employees. Thermax does not encourage its employees to work after office hours. In case of astringencies if women employee has to stay back in the office, a pool car facility is provided to ensure that she is been dropped home safely. Employees are provided with Company Leased Accommodation. We believe that owning a house provides the employee a sense of security. Hence, a housing loan is provided for purchasing / constructing a house. Thermax also has a tie up with the HDFC which provides housing loan at the discounted rate to the employees.Employees are given financial assistance with various loan schemes such as vehicle loan, housing loan, and emergency loan.

Thermax ensures smooth movement of the employee from one place to the other in case of transfers or deputation. The expenses incurred for transportation and relocation on such accounts is reimbursed to the employees.A formal suggestion scheme is in place, where workers suggestions are rewarded.

Health Policy
At Thermax there is a strong commitment from top management towards Health Safety & Environment. Thermax addresses the health, safety, environment issues through an integrated HSE management system. The integrated HSE management system (environment management system as well as Occupational Health and safety management system) is duly approved by accredited agency M/s DNV Netherlands. Health examination of all employees is carried out before they join the company and thereafter it is done based on risk factors. The monitoring of workplace parameter is carried out and the corrective actions, if required, are taken. The health awareness training programmes including ergonomic trainings are regularly organised for the employees. Bi-annual medical checkup is carried out for all the workers to support them to find out the deceases, so that the proper care can be taken to ensure healthy living. Once the medical checkup is done, the diseased workman is made aware of the Do's and Don'ts in his Diet & Nutrition & regular exercises to follow. A family programme on Moral Re-armament is organised outside the factory, where the couple is exposed to many factors of life (Personal & Professional). At Thermax all the employees and their dependents are covered under a mediclaim policy, which provides reimbursement for hospitalisation expenses. A medical trust is also established for the benefit of the workmen, where workmen and management contribute funds in the ratio of 1:2. Medical benefits are given to workers from this trust. All employees are covered under a Personal Accident Policy. A staff welfare trust is also established. Hospitalisation expenses not covered under the insurance scheme for staff are reimbursed through this

trust. In order to extend financial help to a workman who is genuinely sick and has no leave to his credit, the sick leave bank concept is introduced. In the event of death of an employee, a minimum of Rs.100 gets deducted from the salary of all employees. The company also makes a contribution equal to the amount collected through employees. The amount collected is paid to the dependents of the employee. A professional counselor is retained by the company to counsel those workers who are addicted to bad habits. Counseling helps them to overcome their personal problems. Medical fitness certified by the company doctor, is a pre-requisite for joining the organisation. Thermax has a fully equipped medical inspection room with services of two para-medical professionals and a duty doctor. An ambulance with all life support facilities is available full time at the premises to handle any emergency. The organisation also has a tie-up with the specialised medical professionals around the manufacturing premises to provide the best treatment in cases of medical emergency.

Operational Excellence:
Driving Continuous Improvement .Operational excellence Builds off Our Earlier Productivity Initiative and Takes Broader Holistic View Of Our Operating Environment. Under The New Initiative, We Incorporate The Principle To Learn Manufacturing, Sales and Operations, Planning Supplier Management And Material Management And Place Them Under The Vigor Of Our Previously Established MVP Initiative. Our Goal Is To Be The Service The Customers And Also Deliver On Going Productivity Savings And Working Capital Improvement.

HR Philosophy:
To Be Strategic Business Partner In pursuit of Organization Excellence By

Continuous Value Addition Opportunity Competency Development Cross Functional And Transactional Exposure

HR Values:

Training To Equip Man Power To Perform Effectively In Their Present Jobs.

To Introduce And Sustain An Objective System Of Evaluation Of

Performance Based Results.

Recruitment And Induction Of Talented Man Power Development of Employees through Assessment of Their Potential.

To Nurture The Entrepreneurial Spirit Among The Employees. Plan and Monitor Development and Succession Planning In the Organization.

Human Resource Development

HRD Plays A Major Role In Designing And Monitoring Development Efforts In The Organization. It Emphasizes Developing the Organization and Its People and Their Competencies Various Activities

Staffing And Retention Induction And Placement Compensation Survey Performance Management Training Management OD Interventions Career Planning and Progression Rewards And Recognition

Separation

Competency Development

Initiatives:

Employees Honored With Long Service Awards Concept Of Performance Incentive Scheme Introduced. Productivity Linked Bonus Scheme Arrived With Unions. Benevolent Fund Scheme Launched. Training Learning Centre & Skill Centre Established

Kinds of Training Initiatives:

Thermax has world class training infrastructure that can accommodate 236 participants at a time. Additionally, there product installations where participants can have hands on experience. A monthly training calendar is circulated to all employees to update their identified learning needs. Training programmes are decided on the basis of employee feedback and discussions with heads of departments and HR Associates. The calendar circulated through email is later posted on the company intranet. On the job training & certification is provided for critical areas like non destructive testing, welding engineering, and project management. In-house training is also conducted for design, project management and ERP software. New programs are periodically introduced to update employee awareness and knowledge in areas such as creativity, international business etiquette, world class manufacturing, export documentation, work life balance and emotional Intelligence.

Company Orientation Program

A two day Company Orientation Program is conducted each quarter, where new hires from across locations are invited to participate at the Pune Centre. The programme gives an overview of Thermax including its growth and development, business areas, corporate initiatives and guided tour of the manufacturing facility. two day Outbound Development Program with exercises designed around the core values. For fresh graduates, a comprehensive Engineer Trainee (ET) Scheme has been designed. A two week long induction programme orient young engineers to company history, industry practices and customer installations, besides engineering fundamentals and behavioural training.

Technical Training
To maintain the technical competence of employees, a core strength of the company, business. Groups are continuously involved in providing specific training on processes and products. More than 125 technical training modules have been designed & developed on different topics and are in use. An in-house team of experienced trainers run the programme. Technical training is also extended to channel partners, service franchises, and technicians from client installations.

Management Education tie-ups

Thermax builds managerial capability through tie-ups with various management educational institutes. ICFAI Business School provides a part time MBA to its employees. Thermax is a corporate life member of Project Management Associates (PMA), Delhi which offers International Project Management Certification. 107 Thermax project professionals have been awarded certificates jointly by PMA India & IPMA, Switzerland. An 18 month in-house Managerial Development Program (MDP) in association with Narsee Monjee Institute of Management Studies, Mumbai has also been introduced. 87 employees have graduated so far and the third batch is undergoing training.

Time Office
The Time Office Is The Mouth Piece Of The Hr Department. The Main Function Of The Time Office Is To Maintain The Attendance Of The Employees And Also Passing Information From The Hr Department To The Employees And Vice-Versa. Each employee in Thermax has a photo id card with a barcode behind the card.This has to be swiped every time one comes in and goes out.Therefore no manipulation can be done.Hence It Plays An Important Role In the payment of salary.

Benefits Given To the Employee

Leave Benefits Canteen Facilities

Insurance

Provident Fund Benevonant Fund (Health Loans, Children Educational Loans Etc) Pf Withdrawals (Construction House, Buying Of Land, Marriage)

Leave Benefits

Casual Leave 10 Days (For Employees Joined Before 2005), 7 Days (For Employees Joined After 2005)

Medical Leave 14 Days (For Employees Joined Before 2005), 8 Days (For Employees Joined After 2005) Accident Leaves 10 Days (Given Only When The Doctor Inside The Plant Recommends)

Earned Leave - The Untaken Medical Leaves Will Be Carried To The Next Year (This Is Only For The Employees Who Are Working For More Than 10 Years, Casual Leaves Are Not Accumulated). These Earned Leaves Sold for Encashment.

Company Holiday 10 Days The Above Mentioned Leaves Are Paid Leaves

If The Employees Take Leave More Than The Above Mentioned Amount They Will Not Be Paid Salary For Those Days Awards Will Be Given To The Employees Who Have Attendance Ranging From 100% To The Specified Range Of Casual Leaves (14 Days). The Award Is Given On The Basis Of the Attendance Of The Employees In A Particular Season.

1.

Intervention With Employee:

Counseling (Work Place / Family Issues) Attitudinal & Behavioral Training Quality Of Life (Family Budgeting, Healthy Relationships, Etc) Self Development Training(Personal Effectiveness, Goal Setting, Etc) Mass Awareness Pre-Retirement Counseling Deaddiction Counseling & Referrals Life Plan (Financial Management, Planning For Future)

2. Intervention With Employees Family:

Parenting Skills Roles & Responsibilities Supplementary Income Generation Training Domestic Safety Quality Of Life

3. Intervention With Employees Children

Career Guidance & Counseling Workshops Educational Development Programmes Summer Workshops Childrens Day Celebrations Personality Development & Growth Labs

Medical Set Up
1 Consulting Room, 1 Medical Store, 1 Minor Surgery Room, 1 Pharmacy and One Ambulance Room

Functions
Headed By A Qualified Full Time Medical Practitioner Called Factory Medical Officer (Fmo).

General Health Care Of the Employees And Family Health Care According To Their Dependence and Preference. Emergency Health Care (Both During Working Hours And Also NonWorking Hours) Work-Spot Accidental Care (Treatment Will Be Given For Minor Injuries And For The Major Accidents First-Aid Will Be And They Are Referred To The Nearer Hospital) Sanitation Maintenance, Maintenance Of Toilets Maintenance of Drinking Water Provision like Aqua guard Pre- Employment Medical Care For Both Permanent And Temporary Employees Recommending Sick Leave Sanitation Activity Factory & Colonies

Methods of Recruitment
These Are The Recruitment Policies Thermax India Follows

Internal Methods

Promotions and Transfers:

Promotion and transfers are the most adopted internal way to recruit employees in Thermax India.They follow this method because they know about the existing employees and they dont want to hit the ego of the old employees. Promotions are most widely used.

External Methods
Thermax banks on its competent and committed professionals to provide creative engineering solutions to industry and to sustain its ambitious growth plans. Thermax have mature systems and processes for inducting, developing and retaining talent. They advertise through relevant newspapers and jobsites, and also highlight them on this website.

We have three modes of recruiting people for which we advertise in relevant newspapers or host them on this website: Engineer Trainee Induction Program A comprehensive Engineer Trainee (ET) Scheme inducts and launches fresh engineers in various functions across the company. The programme is designed to develop technical excellence from early days of an employee. Engineering trainees from reputed engineering colleges are periodically recruited. They are trained intensively for one year through an intensive programme that begins with exclusive induction sessions spread over a two week period. Hands-on training at the work place, manufacturing facilities and customer installations follow before they are absorbed as confirmed employees of Thermax.

Thermax Graduate Programme In 2007 the Thermax Graduate Programme' (TGP) was launched to provide an opportunity to young graduate students from science streams from across India to develop careers with Thermax. Launched on a pilot basis, the programme aims to create competent and technically competent individuals to one of the core Thermax businesses in the area of sales, logistics and services. The program is managed by Thermax in partnership with Sinhgad College of Engineering, Pune.

Lateral Recruitments On a continuing basis, Thermax takes in experienced professionals from different disciplines to sustain its businesses and drive its innovative projects. Besides their functional expertise, they are assessed for compatibility with the cultural ethos and values of Thermax. Once recruited, they undergo an induction programme and join the Thermax teams.

Retention Policies& Procedures

In Effective Succession Planning The Employees Will Seek Integrated Retention Policies & Procedures. These Include Tracking Of Reasons For Quits, Especially Among The High Potential Workers On Going Employees Attitude Survey To Provide Information For Successful Retention Strategies And To Predict Turnover Tracking Voluntary Turn Over By Department Then Focus Efforts On The Problem Areas Providing Incentives For The People To Remain With The Organization These Are Not Always Financial.

Retention Strategies

Understanding Turnover Labor Market Issues Measuring Turnover Resignation Rates Vacancy Rate Stability Index Wastage And Survival Curves Exit Interviews And Surveys

Safety Policy
There is a clear message from the top management, that safety is one of the top most priorities for Thermax. Safety is considered as a line responsibility throughout the organisation. The applicable national rules and regulations are complied with a minimum standard procedure and there is always an effort to continually improve the HSE performance through the structured management system. Thermax has been certified for OHSAS:18001 (Occupational Health Safety Assessment Series) and ISO:14001 (Environment Management System) International Standard for continuous improvement in Health, Safety and Environment. To improve the safety at workplace, jobs that are undertaken go through a job hazard analysis process so that the hazards are identified and control measures are put in place. In Thermax the ERIC (elimination, reduce, control, isolate) philosophy for safety at the workplace, is an integral part of plant and site activities. Thermax encourages a lot of employee engagement initiatives to inculcate culture of safety as way of life. A well-defined safety policy has been displayed and communicated to the employees. Some of the practices in vogue are as under:

Formation of a safety committee having equal participation of shop floor operators. Training of all levels of employees working in manufacturing units, offices as well as at sites. This includes not only the Thermax employees but also the employees of sub-contractors/contractors of outsourced activities. Putting the Disaster Management Plan in place where employees at the shop floor are trained to perform roles such as 'fire fighters, 'first aid attendants' to deal with any emergency that may arise. Provision of good quality personal protective equipment to all at the shop floor. Training of operators to conduct 'Safety Audits' on the shop floor and at the site.

A Central Safety Committee comprising of all shop floor managers and representatives of labor union reviews and resolves issues elevated to the committee. To reinforce the culture safety Safety Week' is celebrated in the month of March by organizing safety slogan and poster competition, etc. On the occasion of safety day all employees take the safety oath. All visitors to the manufacturing premises are briefed about the hazards within the premises and safety requirements. Regular mock drills are conducted to ensure preparedness in dealing with emergencies.

Actions to Promote a Safety Mindset:

Safety Induction to all personnel on joining at Project Site.

Daily Safety Tool Box Talks: These Safety Talks are organised daily on a relevant subject, prior to commencement of work. 43 standard Safety Tool Box talks are prepared for Project Site Operations. On Job Training: On job training is organised for operators and slingers to understand critical points for safety in crane and machine operations. Contract workmen are operating machines at sites. Fire fighting demonstration: Demonstrations are organised on how to use portable fire extinguishers. Specialised training on Risk Assessment and Job Hazard Analysis for site engineers. This involves ongoing monitoring of the hazard identified, risk assessment and risk control processes and reviewing them to make sure they are working effectively. We are focusing on the ERICapproach which is Eliminate, Reduce, Isolate and Control. General safety awareness during site conferences at HO. This programme provides information on behavioral safety, principles of accident prevention programme and how to keep the workplace. Safe with appropriate control measures, by eliminating likely harm, injury or ill health.

A Large Scale Interactive Process (LSIP) was held on January 11, 2008, where 200 Site-In-Charges along with the company leadership team comprising of the MD, EC members, all SBU Heads and Project Heads participated. There were more than 20 major commitments made, with an implementation plan complete with individual responsibilities and time targets. Safety organisation has been restructured in February 2008, to ensure the continuing focused approach towards safety.

Additional Safety Measures Followed in Thermax India Ltd :

o o

No Smoking Inside The Factory Follow The Waste Procedure For Disposing The Wastes Inside The Factory. If In Doubt , Please Get Assistance From HRD

Do Not Operate/ Handle The Machines/ Equipments Without Permission From The Concerned Supervisor

Prevention Of Pollution And Hazards Related To Occupational Health Safety

Continual Improvement In Environmental Performance, Prevention Of Occupational Illness & Safety Issues

COMPARISSION OF THEORY AND PRACTICES:

THE ESI ACT (1946)

THEORY
The employee state insurance act,[ESIC] 1948,is a piece of social welfare legislation enacted primarily with the object of providing certain benefits to employees in case of sickness, maternity and employment injury and also to make provision for certain others matters incidental thereto

PRACTICAL I observed that in Thermax India the nomination forms duly filled along with their post card size family photo (person eligible under this Act) by the employees covered under the ESI Act are submitted to the concerned ESI local offices. ESI cards are given to the employees for availing the medical services from their local ESI hospitals.

The Employees can avail medical treatment and medical advice by this scheme. The Employees who are availing leave under this scheme will have to produce necessary documents while proceeding on leave and while returning from the leave from the ESI and the employee will not be paid salary/wages for the days under ESI leave and no other leave will be clubbed with this ESI leave.

INDUCTION:
THEORY Induction is a training program to train the newly appointed employee to know about the organization. This induction program will conducted by every organization to train the newly appointed employees to know about the organization. Every organization followed some procedure for induction program. PRACTICE In practical I observe that Induction training is the core area that
THERMAX INDIA concentrates more employees to the culture of THERMAX INDIA will provide induction training induction program will be mainly focuses on grooming the newly joined INDIA . After selection, THERMAX program to all employees. The on:

An introduction to THERMAX INDIA. Business activities of THERMAX INDIA. A brief on the Directors & Employees of THERMAX INDIA. Visit to different parts/departments of THERMAX INDIA. Systems and procedures to adopt in the service place.

Introduction of the job the employee is supposed to handle. Formalities during the joining the company

PRODUCTION DEPARTMENT

HEAD PRODUCTION

VICE PRESIDENT

GM PRODUCTION

UNIT HEAD

UNIT PRODUCTION MANAGER

UNIT HEAD ACCOUNTS

UNIT HEAD TRAINEE

ACCOUNTANTS

SUPERVISOR

SUB SUPERVISOR

ELECTRICIANS

WORKERS

QC SUPERVISOR

Safety Measures Before Entering The Plant:

These are to be followed compulsorily for personal safety. Wear Safety Shoes,Helmets,Safety Belts etc No nylon/polyester clothing Use leather hand gloves while working on hot surfaces Use dark protective glasses near welding location

Process for Manufacturing Shell Boilers:

1.

Material Arrives in store

2. Tested and IBR Certified Certification helps in maintaining quality as well as the identification and tracebility of the parts.Each material is punched with Job no,Part no,Heap no,Cast no etc.
3.

Actual Shell boiler manufacturing starts from:

Plate Cutting
The machines in this plant are: Plate cutting Machines: Koike CNC Plasma Cutting Machine Portable Gas Cutting(PUC) Machine Both these machines are use for programmable straight and direct cutting of plates.The maximum thickness of plates that can be cut with these machines are 100m.They have an angle accuracy of +/-2 degree.The cut plates are then moved onto the next plant for rolling.

Rolling of Plates
The machines in this plant are:

Plate Rolling Machines: Regular Plate Rolling Machine Used for pre-pinching as well as rolling of plates having thickness ranging from 8mm to 16mm. Big Himalayan Rolling Machine This machine is used for the rolling of plates having thickness ranging from 16mm and above.

Welding Process
Submerged Arc Welding Machine: The plates are welded together into shells by submerged arc welding(SAW) process longitudinally as well as circumfically.All main shell and furnace shells longitudinal seams and circumferential seams of boilers are welded by submerged arc welding to get radiographic joints. The welds are placed next in an electrode drying oven of about 50 to 200 degrees celsius.This is done to get a perfect and consistently flawless welds.Improper storage may expose them to rain and dampness.Such electrodes give porous welds and fuse slowly. Hydraulic Dress: This machine is used for bending the plates required for MTFH boilers and also to remove distortion of tubes used in shell and tube type boilers.There are 4 such machines in the Pune plant each having a capacity of processing 350 tubes at a time. Corrugatin Machine: On corrugation machine furnace shells are made of different lengths,sizing as well as beveling at different angles is done on specifically designed fixtures as needed for different kind of boilers.Then the following is done: 1.Tube to Tube plate welding 2.Tube plate to shell welding 3.Furnace Shell to Tube Plate welding 4.Main shell to saddle welding

Tube Expansion and Beading

In all shell type boilers tubes are lightly expanded or beaded after stress reliving depending on type of boilers.Normally beading is done for solid fuel boilers and expansion is done for Oil Fired boilers.

Beading: Beading is a tube expansion process where in addition to

expansion, tube end are formed to circular shape.Here beading of tubes of 63.6mm X 3.66mm and 76.2mm X 3.6mm are done.

Stress Reliving Furnace:

Tube expansion and beading induces stresses in parts.These stresses can cause distortions in the part long term. If the parts are clamped in service, then cracking could occur. Also hole locations can change causing them to go out of tolerance. For these reasons, stress relieving is very necessary and unavoidable.

Hydraulic Testing
The process is done in a Hydraulic Test Bay.The process is as follows: Test setup is designed to fill water in a boiler using a hydro-pump with high discharge. Once water is filled the boiler is pressurized with a pressure pump giving pressures as high as 1.5 times design pressure. Reading recorded and documented and checked by quality control. This process is repeated 2 to 3 times.

Also its checked if any leakage is there through the tube or tube plate joint.If so then its sent to the reframe section for rectification. The chances of error is as low 1 out of 200 boilers.

Shot Blasting and Painting

All shell boilers are shot blasted before painting.This gives better results in painting as surface to be painted is cleaned removing all rust,mill scales,dirt etc

 Then the boilers are painted using a air assisted painting gun in down draft painting booth which is located near shot blasting room.Painting is done in required colours by using paints and primers which have properties of anti corrosive and sea worthy.

Lagging
It is the process where in the boiler is covered with thermally insulated material along with sheet metal for the purpose of thermal insulation and for the aesthetics of the boilers. The major steps involved are: Insulation: Covering boiler with rock wool Cladding: Covering of boiler with pre coated sheet metal

Integrated Marking Machine

EP7 and P120 are the two marking machines.These machines can mark data Matrix 2d codes, which allows sufficient amount of information to be encoded into small area.These can be read by portable or integrated optical readers.

Features
Fully programmable Robust and Reliable High Speed Powerful integrated software Consistent precision and quality

Quality Policy
Thermax quality policy starts and ends with the customer as a focal point: understanding the customer's requirements, designing optimal solutions to meet those requirements, building systems and processes in place to

ensure quality at every stage, and achieving our commitments on delivery and service before and after sales.It is an endeavour to create a culture of total quality where continuous improvement of our products becomes a way of life.

Manufacturing Excellence
Thermax systems and products are backed by three state-of-the-art manufacturing facilities in India, and a newly set up plant for in China. These manufacturing plants are certified to adhere to rigorous standards:
ISO 9001:2000 for quality management for all business operations ISO 14001:2004 for environmental management OHSAS 18001:1999 for occupational health & safety for manufacturing operations Thermax manufactures to international standards like ASME, BS, DIN, GOST, API and CE, besides the IBR code in India and AQSIQ in China. These facilities are inspected by Lloyds, Bureau Veritas, SGS and TUV.

The Products Manufactured Are Subjected To Strict Surveillance At Every Stage Of Manufacture To Ensure Acceptable Quality Product. The Company Is Committed To Quality Management and Obtained Qs9000 TQM Award.

Finance Department
DEPARTMENT STRUCTURE

Head Finance

Asst Head FINANCE

GM FINANCE

CHIEF ACCOUNTANT

ADMINISTRATION ACCOUNTANT

UNIT ACCOUNTS

ACCOUNTANTS

Functions of financial department

The finance department will record the day to day business activities of Thermax. They will prepare the statements regarding stock receivable goods etc. these informations are needed to bank and different government authorities

They will do the receiving payments from customers dealers and accounting their funds. The finance department will do all the budgeting They will do the preparation and maintenance of all records

Purchase order will be maintained They will do the preparation of fund flow and cash flow statement for every month.

All functions connected with control of finance,sales,tax,central excise, commercial function The financial audit, cost audit and timely submission of reports to the management and government Scrutinizing all bank and cash book

 Assisting the sales manager in processing report from customer complaints and follow-up on outstanding collections

HIGHLIGHTS(09-10)
Total income of the company stood at Rs. 3235 crore,marginally lower compared to the previous year.

Profit after tax, compared to last year, was lower at Rs. 141 crore, due to a one time extraordinary expense of Rs. 115 crore (net of tax) towards a business settlement. Completes the year with a record order book of Rs. 5381 crore.

Financial Result Of Thermax

(Rupees in crore) 2009-10 2008-2009 Total income Profit before interest, depreciation, tax and extraordinary items Interest & depreciation 3235.23 3303.17 433.88 41.94 453.23 35.38 417.85 (1.36) 131.91

Profit before tax & before extraordinary items 391.94 Extraordinary items of expenses / (income) (Net of tax) Provision for taxation (incl. deferred tax) 114.86 135.64

Profit after tax & extraordinary items Balance carried forward from last year

141.44 548.00

287.30 359.20 646.50 59.58 10.12 28.80 548.00

Profit available for appropriation (cumulative) 689.44 Proposed equity dividend Tax on dividend Transfer to general reserves Surplus carried forward 59.58 9.90 14.20 605.76

The consolidated total income of the Thermax Group has reduced, marginally, to Rs. 3422.2 crore from Rs. 3500.7 crore last year. Income from international business was down to Rs.720.4 crore from Rs. 958.8 crore.The Group registered a profit before tax of Rs. 400 crore as against Rs. 423.3 crore in the previous year. Profit after tax & extraordinary items and minority consolidated interest decreased by 50.1% to Rs. 144.3 crore owing to a one-time extraordinary expenditure of Rs. 114.9 crore(net of tax) relating to the business settlement with Purolite. Consequently, earnings per share (EPS) also reduced to Rs.12.11 as compared to Rs. 24.25 in the previous year.The liquidation process of ME Engineering Ltd., the erstwhile UK based step-down subsidiary, was completed during the current year. Voluntary winding-up of Thermax Energy Performance Services Ltd., the joint venture company, is under way and is expected to becompleted this year. Thermax Hong Kong Ltd., a whollyowned subsidiary has been registered for a dormancy status in March 2010. Accordingly, these companies have not been considered for consolidation. The company had paid a dividend of Rs 5 per equity share of face value Rs 2.

Balance Sheet Of Thermax LTd

Mar '08 12 mths Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 23.83 23.83 0.00 0.00 712.31 0.00 736.14 0.00 0.00 0.00 736.14 Mar '08 12 mths Gross Block Less: Accum. Depr Net Block Capital Work in Progress Investments Inventories Sundry Debtors 419.30 140.70 278.60 56.25 579.74 199.52 505.31

Mar '09 12 mths 23.83 23.83 0.00 0.00 938.06 0.00 961.89 0.00 0.00 0.00 961.89 Mar '09 12 mths 602.89 162.98 439.91 21.05 196.84 266.42 540.78

Mar '10 12 mths 23.83 23.83 0.00 0.00 1,026.96 0.00 1,050.79 0.00 0.00 0.00 1,050.79 Mar '10 12 mths 688.44 194.59 493.85 13.84 378.16 246.36 747.05

Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Adv Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)

27.85 732.68 283.96 0.06 1,016.70 0.00 1,058.67 136.48 1,195.15 -178.45 0.00 736.14 184.20 61.78

11.96 819.16 482.50 328.82 1,630.48 0.00 1,211.09 115.30 1,326.39 304.09 0.00 961.89 221.38 80.73

40.09 1,033.50 653.85 565.46 2,252.81 0.00 1,990.42 97.45 2,087.87 164.94 0.00 1,050.79 227.72 88.19

INTEGRATION WITH OTHER DEPTS

The finance dept should maintain good relation with other depts. It is needed for the smooth functioning of the company. In Thermax every dept is linked to the finance. Therefore it is important for the organization to keep a good atmosphere among the depts. As finance is the base for anything in the organization. The other departments too see to it that there is no chaos in the organization.

Marketing Department
HEAD MARKETING

MARKETING MANAGER COIL

MARKETING MANAGER SHELL ASST EXECUTIVE MANAGER

ZONAL MANAGER

AREA SALES MANAGER

GROUND EXECUTIVE

Direct Marketing:
Thermax India Ltd follow the policy of direct marketing. It means the organization has direct contact with the customers. They sell their products directly to the customers and also gets feedbacks from them. This helps the organization to improve its product as per customer needs. Also they have a very few Thermax Channel Associates(TCA) in some places. Since boiler is a capital good the marketing mix also changes:

Price strategy
Frequently effected with the procurement of boilers a more or less formalized advertisement to the whom are applicable suppliers (Competitive Bidding). A strategy over price distinction or price adjustment is with difficulty possible therefore.

Communication politics
The communication politics require an intensive satisfaction of the need for information of the individual members in the Buying center. Fairs or exhibitions are more important than Mediawerbung. Also the Ingredient Branding (label name of components) continues to increase ever in meaning.So Thermax constantly participates for fairs and exhibitions all over the country and abroad.

Distribution politics
Within the distribution politics the focus is with high-quality capital goods on the direct sale, supply security as well as the personal sales. Many high-specialized suppliers of boilers are world-wide active, since there are few potential customers in each country only. To that extent cultural differences and state-specific regulations are to be considered e.g. within the range of the industrial safety.

Development tendencies
Since the products of the individual manufacturers differ in many markets only slightly from each other, the accompanying services become increasingly more important the differentiation of the competition:

Consultation before the purchase Planning services for the integration of the product into the production process of the customer

Training and production optimization Servicing contracts Spare part supply Tele service

COMPARISSION OF THEORY AND PRACTICES:

PRICING: TARGET RATE OF RETURN: THEORY: Target rate of return is a type of pricing where all the expenses will be added and a part of margin also will be added to gain profit . this is to get back what the investor invested. This type of pricing is adopted to get the capital return as soon as possible. Practicals : Thermax India Ltd also adopts this policy . All the expenses are added and a margin of profit is also added to gain profit. Material cost Power cost Stores and tools Selling and expenses Repairs and maintenance And all other administrative expenses

DIRECT MARKETING: THEORY:

Direct Marketing Is Concerned With Establishing Relation Between The Business Offering A Product Or Service And The Final Customer. Direct Marketing Has Been Defined By The Institute Of Direct Marketing As: The Planned Recording, Analysis and Tracking of Customer Behavior To Develop A Relational Marketing Strategies. The Process of Direct Marketing Covers a Wide Range of Promotional Activities You May Be Familiar With Direct-Response Adverts On Television And Radio Mail Order Catalogues Magazine Inserts Direct Mail Telemarketing Fairs and Exhibitions

Pratical :
Thermax India ltd follow the policy of direct marketing. It means the organization has direct contact with the customers. They sell their products directly to the customers and also gets feedbacks from them. This helps the organization to improve its product as per customer needs.

PURCHASE DEPARTMENT:
Purchase department follows a continuous series of process: Buying parts from various supplies with its code . After negotiation it will be documented and signed by a dept person, so that the production department doesnt face any problems. Then the product will be insured. Exports are also handled by this dept.

UTILITY DEPARTMENT:
The various functions of this dept are: Maintaining the machines. Production activity carried out without disturbance Civil activities are also carried on by this dept. They do gardening too.

Research and Development

Thermax is planning to increase its production capacity by investing in the following two areas: Research and Development Market Development These investments will enable it to provide better technology products to its clients.

New centre for research, technology and innovation

The Thermax Board has given its approval to invest in an ambitious Research, Technology & Innovation Centre (RTIC). Over a period of two years, new infrastructure building, instrumentation, advanced computing facilities, centres of excellence will be created to establish and sustain this initiative.

The centre will be guided by a newly formed Innovation Council of external experts led by Dr. R A Mashelkar. Focusing on collaborative research, the centre will undertake projects with premier research and scientific institutes. The centre will aim to revitalise the innovative traditions of Thermax and drive creative practices across the company.

CONCLUSION:
My institutional training at THERMAX INDIA LIMITED was a unique experience and a one which I would cherish in my memory for a long time. This institutional training helped me in bringing up the manager inside me and which grew substantially over a period of time that I spent in the organization. The HR Department especially thought me a lot of things about negotiation and team work.

BENEFITS:
This institutional training helped me in the following ways: Learnt the management principles, and how they are practiced effectively. Understood how to retain your existing customers, while thriving to increase customer base. Taking initiative and responsibilities and putting forth your point, while an opportunity is provided. Thinking differently and innovatively as to how to cut the cost while the organization is facing a crisis situation. How to maintain a manager subordinate relationship. Managing people efficiently as well as efficiently and dealing with issues similarly.

Thinking more on a grass root level and not just from a mere outside view.

On the whole this institutional training was knowledgeable and a unique experience which helped me in developing my managerial skills and filled me with the intellect, confidence and courage to face the challenges in corporate world as well as in my personal life.