kishan cemenet bba mba project report

8/2/2019 Kishan Cemenet Bba Mba Project Report

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PROJECT REPORT

PREPARED BY

SADARIYA PRASHANT

CLASS

S.Y.B.B.A.

ROLL NO.

73

SEAT NO

...............

ACADAMIC YEAR

2008-2009

GUIDED BY

MS.ALPA JOSHI

SUBMITTED TO: SAURASHTRA UNIVERSITY RAJKOT.

COLLEGE : SHREE GYANYAGNA COLLEGE

OF SCIENCE & MGT.

K I S H A N C E M E N T P v t . L t d .Page 66


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DECLARATION

I, the undersigned SADARIYA PRASHANT a student of

S.Y. B.B.A. hereby declare that the project work presented in this reportis my own work and has been carried out under the supervision of Ms.

ALPA JHOSHI of GYANYAGNA COLLEGE OF SCIENCE & MGT,

Rajkot.

This work has not been previously submitted to any other

university for any other examination.

Date: -

Place: - Sign: -



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PREFACE

There is no under developed country in the world, which is

not struggling for change. Change that induced by the internal and

external forces of trade an commerce and industry through science and

technology demands rapid individuals and social adjustments and I

renders obsolete products and process skills, attitude an with them men

and jobs. Meetings this challenges of change is the primary

responsibility of management. An institution lacking adaptability to

change has no future adaptability to change is necessary quality to good

management.

In todays world of cutthroat competition, the Bachelor of

Business Administration (B.B.A.) graduates are sure to have an edge

over their counterparts.

The unit, which I have selected for my project report, NEW

KISHAN CEMENT PVT LTD.that is a manufacture of cement. Thevarious departments studied and visited by me are production

department, personnel department, marketing department and financial

department. The information printed in this report is a perfect match of

the theoretical concepts and practical applications. Almost all the

information is collected either from the related officers or by taking

interviews of managers and departmental heads of the organization has

collected information



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ACKNOWLEDGEMENT

With great enthusiasm I present my individual report in the S.Y.

B.B.A. The industrial training reports on NEW KISHAN CEMENT

PVT. LTD.

I convey my deepest gratitude to Mr. KALPESH MARDIYA and

all other employees of NEW KISHAN CEMENT PVT. LTD. who have

been very co-operative and helpful in preparation of my project report.

I am also thankful to Ms. ALPA JOSHI my lecturer who has

guided and corrected me throughout the preparation of my project.

Lastly, I am thankful to my friends an also my familymembers who always encouraged me and co-operated with me for the

successful completion of the project report.



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INDEX

SR, NO PARTICULER PAGE

NO

1 General information

2 Production department

3 Personnel department

4 Marketing department

5 Finance department

6 Future plan

7 SWOT analysis

8 Conclusion

9 Suggestion

10 Bibliography



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GENERAL INFORMATION

INDEX

SR, NO PERTICULER PAGE NO

1 Board of directors

2 content

3 history



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4 Size & form of the organization

5 Location of the industry

6 Goals of the company

7

BOARD OF DIRECTORS

M.D. Mr. Rajan V. Vadalia

Chairman Mr. Rajan V. Vadalia

Director Mr. Navneet Vadalia

Director Mr. Ketan Vadalia



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Director Mr. Hasmukh Maradia

Auditors H. Jamnadas,

Heera Panna,Rajkot.

Banker Dena Benk



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CONTENTS

Name of Company: - New Kishan Cement Pvt.

Ltd.

Area of Location: - Shapar-Vereval

District-Rajkot

State-Gujarat

Year of Establishment: - 1994

Registered office: - NEW KISHAN CEMENT,Gandhi chambers,

Gondal Road,

Rajkot-360 002

Size of Unit: - Small Scale

Line of Activity: - Manufacturing of Portland

Cement

Accounting Year: - April to March

No. of Employees: - 50 skilled workers

25 staff members



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BRIEF HISTORY

The origin of New Kishan Cement goes back to 1994 when

its young founders constituting the Board of Directors, started

the company, which was namedNEW KISHAN CEMENT,

with an initial capital of Rs. 10 only.

Synchronizing with these ideas of Central Government and the

Government of Gujarat for the growth and the development of themedium and large-scale industries for achieving the objectives like the

development of the industry for gainful employment and balanced

industrial development.

Hence, the promoters of the project had decided to set-up a unit in

the village of Shapar in the city of Rajkot to the manufacturing of the

finished ordinary Portland cement installing a cement plant.



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SIZE & FORM OF THEORGANISATION

On the basis of the size plant of the industries can classified in the

following categories.

1. Large scale

2. Medium scale

3. Small scale

Small scale industries are mainly labor intensive industries while

large scale industries are capital intensive industries.

In case of NEW KISHAN CEMANT PVT LTD.It is a medium

scale industry because its initial investment is more than the limit of

small scale industry.



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LOCATION OF INDUSTRY

Theoretically speaking a part of industry is a place where

main money and machinery are brought together for manufacturing the

product thus it involves the basic problems of the place where the plantto be located.

Plant location means deciding a suitable location area place

etc.

NEW KISHAN CEMENT PVT LTD. is situated as under

NEW KISHAN CEMENT PVT.LTD.

SHAPAR-VERAVALDistrict-Rajkot

State-Gujarat

Some of the main factors are affecting to take the decision of

plant locate are as a follows.

Near to the market

Transportation facilities

Infrastructure facilities

Raw material availability



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Labour availability

Natural resources

GOALS OF THE COMPANY

Every company wants to achieve the higher goal but as on

behalf of this industry NEW KISHAN CEMENT PVT LTD. to

scale their product only national level but they planning to

international level and achieve the higher growth.

And try to provide the more and more satisfaction customer

and prepare higher quality product and scale it in the market.



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PRODUCTION INDEX

SR NO. PARTICULARS PAGE NO.

1 Introduction to production department 12

2 Introduction to unit department 13



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3 Organizational chart 14

4 Raw material & its sources 15

5 Production process 16

6 Plant location 19

7 Plant layout 20

8 Plant maintenance 21

9 Quality control 22

10 Inventory control 23

INTRODUCTION TO THE PRODUCTION

DEPARTMENT

Production is the basic activity of the industrial unit. All

other activities revolve around this activity. The end product of the

production activity is the creation of the various goods and services for

the satisfaction of human wants. Production involves step-by-step



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conversion of one form of material into another through various

chemical and mechanical processes to create of enhance the utility of the

product of the service.

Production management deals with the decision makingrelated to the production process so that the resulting goods and services

are produced according to the satisfaction in the amount and by schedule

demanded and at the minimum cost.

INTRODUCTION TO UNIT DEPARTMENT

This department which is related with the technical and the

manufacturing of the cement and are also responsible for all the



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activities of the technical and controlling of the production and

technical.

The following persons are the heads or responsible for this

department: -

Mr. Navnitbhai G. Vadalia

Mr. Rajanbhai V. Vadalia

If we consider, the production, the manufacturing process

related with the machines and workers and files are also maintained.Finally, the department sends the report to the Head Office at Rajkot.

ORGANIZATIONAL CHART



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RAW MATERIALS AND ITS SOURCES

DIRECTORSDEPARTMENTAL

HEADMANAGER

ASSISTANT

MANAGER

EXECUTIVE

STAFF

WORKERS



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The main raw materials that are used for the manufacturing

of the Portland cement (53Grade) used by the company are:-

Limestone

Clay

Coke-breeze

Silica

The raw materials are bringing purchased from porbandar, Rajkot,Ranavav and again Porbandar respectively.

PRODUCTION PROCESS

MINING OF LIMESTONE



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CRUSHING

STACKING

RECLAIMING (BELT CONVROYR)

RAW-MILL GRINDING

STORAGE

PRE-HEATING

KILN

CLIN KERISATION

COOLER CLINKER(STORAGE)



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CLINKER GRINDING CEMENT MILL(ADDING GYPSUM)

CEMENT STORAGE (SILO)

PACKING PLANT & TRANSPORTATION



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PRODUCTION PROCESS

GRINDING :-

The raw material called limestone, lignite, petcock, silica

are mixed in appropriate percent and grinded by the mill called raw mill.

The product obtain from the raw mill is called raw mix.

HEATING :-

The raw mix is mixed with 13 to 15% of water to make

lodles. Then the lodles spread inside the kill. That material burnt inside

the kill at the temperature of 1300 . To 1400. C. The burnt material is

called Clinker.

MIXING :-

After clinker is obtain 1 to 2 % of gypsum is mixed and

grinded by the mill and the final product obtain is called cement.

BRANDING :-

The word brand is comprehensive term. It means a sign or

symbol of quality. Branding is the best means to capture and retain the



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consumer demand in a competitive market. All product of the unit are

sold under the same brand KISHAN

PACKING :-

The unit has its packing department. The company mainly

looks for packing of its product. The product is filled in airtight bag of

50 kg with its price on its bag.

LABELING :-

Label is a part of a product. It gives verbal information

about the product and the seller. It is apart package, which can be

directly attached to the product.



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PLANT LOCATION

The location of the industry plays an important role in the

success or failure of the organization. It plays a vital role in the

development of the unit. Thus, a god location may reduce the cost of

production and distribution helps in evaluating either the competitive

strength or the profit margin of the business. Therefore, the site for the

factory should to select very carefully.

New Kishan Cement Pvt. Ltd., which is situated at Shapar-

Veraval, Rajkot. Due to its location it enjoys many advantages such as:-

As it is developed in a backward area, the government provides it

with incentives.

Electricity is widely available at their place by an own generated

power by D.G. set

Raw material, which is required for the production process, is

easily made available.

Infrastructure facilities such as communications water, road, etc.

are well established.

Moreover, it is situated near to a well-developed city like Rajkot,

one of its domestic markets.



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PLANT LAYOUT

The plant layout is the overall arrangement of the production

process, store-room, tool room, etc. and all other accessories required

for facilitating the production an d service facilities and provides for the

most effective utilization of men materials and machines consulting the

process, it is a master blue-print for coordinating all operations

performance inside the factory.

According to F.G. MOORE-A good layout is one which allows

materials rapidly and directly for processing. This reduces materials

rapidly and directly for the processing. This reduces transport handling,

clerical and other costs per unit space requirement are minimized and it

reduces idle machines and idle men.

There are mainly two types of Plant Layout: -

Process Layout

Product Layout

In New Kishan Cement Pvt. Ltd., the type plant layout found is

known as product layout. Where the machines are placed in such a

manner that it helps only in the production of one type of product.

Generally, product layout is found in all those industries, which are

engaged in the manufacturing of the cement.



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PLANT MAINTENANCE

The efficiency of the production functional reliability of the production facilities, which are nothing but a package of land,

building,etc., and plant services such as power plant, gas, water supply,

etc. All these facilities are subject to wear and tear simply by elapse of

time or by the frequency of their use. The basic aim is to keep all the

production facilities in a constant and smooth servicing function and

thus involves indirect costs of production activity.

In other words, maintenance is not just a repair function,

but also a combination of any actions carried out to retain an item in, or

restore it to an acceptable condition. This, contributing to the revenue by

reducing the operating cost and increasing the quality and quantity of

the production.

It is necessary to devise appropriate maintenance system. In

New Kishan Cement Pvt. Ltd., maintenance request maintaining the

production staff details, the defect and the possible rectification

required. There is an Asset or Facilities register where there is detaileddescription of each physical asset such as name, code, vendors spares

vendors, interchangeable parts, etc. the register is maintained on the

basis of the asset classification in terms of usage, technical category and

maintenance methods.



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QUALITY CONTROL

The quality control department inspects the basic raw

material, which is procured, for quality assurance test.

In this department various physical and metallurgical tests

are undertaken before issuing the raw material to the production

department.

In New Kishan Cement Pvt. Ltd., not only the raw materialis checked but also the final output is checked before it is dispatched off.

The material is tested in the laboratory with some special tools and

equipments.

This process is necessary in order to get sufficient and

effective management production.



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INVENTORY CONTROL

Inventory control refers to the process whereby the

Investment in materials and parts is carried in stock is regulated within

the predetermine limits set in accordance with the inventory policy

established by the management.

Inventory is defined as a usable resource, which is physical

and tangible such as materials. Though inventory is a usable resource, it

is also an idle resource, unless it is managed efficiently and effectively.

Inventories constitute the largest component of current assets in many

organizations. So poor management would therefore result in the

business failure. Hence, efficient inventory control therefore can

significantly contribute to the overall profit-position of the organization.

In New Kishan Cement Pvt. Ltd., the inventories are

adequately and efficiently maintained so that they are made available as

and when required.



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PERSONNEL DEPARTMENTINDEX

SR NO PARTICULARS PAGE NO

1 Introduction to personnel department 26

2 Introduction to the units department 27


4 Recruitment, Selection and Induction 29

5 Wage and Salary Administration 30

6 Staff Welfare Activities 31

7 Working Hours 33

8 Trade Union 34



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INTRODUCTION

The importance of personnel management is being increasingly

realized in industrial and non- industrial organization in India as well as

abroad. The management of the human resources is a very complicated

and a challenging task. It concentrates with the activities related to the

human element of the organization. A personnel manager solves the

problem of manpower and keeps their morale and motivation high.

Personnel management is regarded as a must for

successful running of the enterprise. A proper management

resource helps the organization to maximize the utilization of

other resources.



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INTRODUCTION TO THE UNITS

DEPARTMENT

This department is mainly responsible for the recruitment,

selection, training, development, promotion, etc. all that is related to the

employees.

The person responsible to the departments is as follows:-

Mr. Navneet G. Vadalia

The department maintains all the details regarding its employees for

their reference in future and as and whenever required.



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In order to solve the personnel problems efficiently and in a

responsible manner, it has become necessary to establish a separatepersonnel department in the organization. It is one of the most important

parts of the organization.

The organizational chart of New Kishan Cement Pvt. Ltd. is as

follows: -

DIRECTORS

PERSONNEL MANAGER

ASSISTANT

WORKERS(STAFF)



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RECRUITMENT

The recruitment process started with identification of vacancies to

be filled up it is basically concerned with the identification of sources

from where the personnel can be employed and motivating them to offer

for the employment.

According to EDWARD FLIPPO recruitment is both positive

and negative activity. It is process of searching for prospective

employees, stimulating and encouraging them to apply for job in an

organisation.

There are mainly two types of sources to do the recruitment INTERNAL SOURCES

EXTERNAL SOURCES

IN KISHAN CEMENT PVT LTD.. recruitment is done through

internal sources such as when any vacancies, occur, existing, employees

are given first preference they are promoted or transferred on the basis

of merit seniorities of performances.



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SELECTION

The object of manpower selection is to as certain clearly the type

of person rallied and to secure an appropriate candidate for filling that

position it is also concerned with security relevant information about an

applicant.



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INDUCTION

Induction is a technique by which a new employee is rehabilitated

into enhanced surrounding and introduced to the practiced, policies and

the objective of the organization. In other words it is a welcomingprocess. The idea is to welcome a new comer make him\her fell at home

and generate a feeling of belongingness, however its small but is

meaningful and has significance as a part of total organization.

Process of Induction.

Firstly, information is given to newly appointed person to whom

he has to given a report and the place of report.

Secondly, the respective manager welcomes the employees.

Thirdly, it gives overall information about the department in

which he is designated.



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WAGES AND SALARY

ADMINISTRATION

The wage and salary administration is concern with the financial

aspects of needs, motivation and rewards.

WAGE is the remuneration paid for the service of labor in

production, periodically to an employee or worker, which is a blue

collared worker.

SALARY refers to the monthly or weekly rates paid to the

clerical, administrative and professional employees, that is, white collar

workers.

New Kishan Cement Pvt. Ltd. provides minimum wages to the

unskilled laborers who are appointed on the daily basis, basically, the

wage and salary paid to the employees in the organization ranges from

RS. 10,000, accordingly.

Management also provides certain extra facilities to its workers. It

provides its workers with 8.33% bonus in March.



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STAFF WELFARE ACTIVITIES

Today it is a proven fact that the employees are the most

important assets of a business unit. To motivate and to increase their

morale it becomes necessary for every unit to perform its activities,

which can be helpful in achieving the best results.

New Kishan Cement Pvt. Ltd. provides the following facilities to

its employees-

Leave Facilities:-

New Kishan Pvt. Ltd. provides leaves to its employees on alternative

basis that is if in this week the employees of the morning shift were on

leave then in the next week the employees of the other shift would get

leave.

The workers can enjoy the following leaves during the

year:

15 days earned leave

07 days casual leave

07 days sick leave

The administrative staff can enjoy the following leave during theyear:

27 days earned leave

07 days casual leave



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o7 days sick leave

Holidays:-

New Kishan Cement is found to be on a holiday only on 2 occasions,

that is at the time of Diwali and Janmastami otherwise, the company is

working on all the 365 days.

Food and Shelter:-

New Kishan Cement Pvt. Ltd. provides its employees with good

food by making canteen arrangements for them, were food is being

provided as and when required.

New Kishan Cement Pvt. Ltd. also provides good shelter

facilities to its employees by allowing leaving in the quarters, whichare being built in the factory premise only

Provident fund:-

The company provides the facility of Provident Fund as per

the Govt.s Act for provident fund.

Bonus:-



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Each employee is paid 100% bonus once a year that is in

March. Thus, by giving bonus to its employees it gives job

satisfaction to its employees.

First Aid:-

The first aid box is always kept in the company so that the

first aid facilities are being provided immediately to any of the

employees as and when required.



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WORKING HOURS

It has been assumed that number of working days per year would

be 300 days and factory would work in 3 shifts a day.

The company works in 3 shifts, that is:

The morning shift - 04:00 AM to 12:00PM

The afternoon shift - 12:00 PM to 08:00PM

The evening shift - 08:00 PM to 04:00AM



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TRADE UNIONS

A trade union is defined as a continuous and voluntary association of thesalary or wages earners and engaged in whatever industry or trade, formed for

safe guarding the interests of its members, maintaining and improving the

conditions and securing better relations between them and their employees,

through collective bargaining.

As in every company, New Kishan Cement Pvt. Ltd., also has a trade

union, where there is one union leader and others as its followers. The leader

tries to present and solve all the problems of its co-workers by presenting it tothe management and provide them with the required satisfaction.



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MARKETING DEPARTMENT

INDEX



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SR NO PARTICULARS PAGE

NO

1 Introduction to marketing department

2 Introduction to the unit department

3 Organizational chart

4 Market Segmentation

5 Pricing policy

6 Market research

7 Channels of Distribution

8 Sales policy

9 Advertising

10 Competitors

INTRODUCTION



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Marketing management represents an important functional area of

business management for the flow of goods and service from the producers to

the consumers. It looks after the marketing system of the enterprise. Marketing

management performs all the managerial function in the field of marketing.

Marketing is a social and managerial process by which individuals and

groups obtain what they need and want through creating, offering, and

exchanging products of value with other. Marketing management is a task of

influencing the level, timing and composition of demand in a way that will help

the organization to achieve objectives.

Introduction to units department



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This department is responsible for the selling and

marketing activities. Respective files are maintained here.

The persons responsible for the department are as follows: -


Mr. Ketanbhai L. Vadalia

Mr. Navnit G. Vadalia

This department contains all the selling processes. It alsomaintains certain useful books such as the order book ledger, bank

register, etc. which are required and necessary to be maintained.




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The organizational depends upon the nature of the sales

promotion, distribution, market research, and other activities that are

directly or indirectly connected with the market.

The organizational chart of New Kishan Cement Ltd.is as

follows:-

MARKET SEGMENTATION

It means the process of taking the total homogenous market

for a product and dividing it into several sub homogenous parts.

DIRECTORS

MARKETING MANAGER

SALES STAFF

9AGENTS



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The market of the firm is segmented on the following

geographic basis.

LOCAL

In local segment, the firm covers all the areas of Saurashtra

in which it sells out its products to its customers.

NATIONAL

In national segment, they provide their product to various

other states of their country.

INTERNATIONAL

In international segment, they provide their product to

various other foreign countries.

PRICING POLICIES

Pricing is the only variable factor determining the revenue

income. The pricing of the product of the company is done considering

the following:-



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PRICE = Raw-Material Cost + Variable Cost + Transportation

Cost + Duties + Profit Margin.

MARKET RESEARCH



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It has a wider meaning and scope. It is the systematic

gathering, recording and analyzing the data about the problems

connected with the market place, problems like pricing etc.

New Kishan Cement Pvt. Ltd goes for market researchthrough internal sources. They conduct meetings with their agents and

collect information about the present market conditions. It is useful in

the field of high selling and rising demend.



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CHANNELS OF DISTRIBUTION

The distribution channel adopted by New Kishan Cement is

as under: -

MARKETING MANAGER

AGENTS

DEALERS

CONSUMERS

THE DISTRIBUTION CHANNEL IS INPORTANT

FACTOR OF MARKETING TO BOOST UP THE SALES OF THE

COMPANY.



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SALES POLICY

There are generally 2 types of marketing policy, that is

Cash

Credit

New Kishan Cement Pvt. Ltd., goes for both policies that is, it

gives goods on cash and even at times on credit further giving 2%

cash discount. It depends upon the size of the order. Generally, it

goes for credit policy.



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ADVERTISING

It means the paid communication of the goods, services ar ideas

by the identified sponsors. It is a paid communication for the

advertiuser has to pay for the space or time in which advertisement

appears.

New Kishan Cement Pvt. Ltd. Goes for advertising in thr

newspaper, magazines, radios, and at times also on television.



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COMPETITORS

In the fast growing world of technology almost each and

every company may be having some or the other competitors.

The company, New Kishan Cement Pvt. Ltd., faces

competition from the following competitors in the local market.

Decora Cement

Kangaroo Cement

Sandhi Cement

And Many More



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FINANCE DEPARTMENT

INDEX

SR NO PARTICULARS PAGE NO

1 Introduction to units department 49


3 Total capital 51

4 Means of finance 52

5 Capital structure 53



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INTRODUCTION

In this department, all necessary files and other required

information are, maintained by the employees and the responsiblemanagers.

The person responsible for the department is as follows: -




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The organizational chart of New Kishan Cement Pvt. Ltd.

is as follows: -

TOTAL CAPITAL

The total capital means the amount of the capital being

required by the company to continue its activities, not only at the time ofincorporation but also for the diversification, modernization, and

expansion, etc., of the company. The capital is also used for carrying on

the routine activities of the company. Not only this, the capital is also

for used for the purchase of the capital foods and also for the purchase

DIRECTOR

A/C & OFFICE ADMINISTRATOR

OFFICE MANAGER

ACCOUNTANT

OTHER STAFF



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of the raw materials and also running the routine business activities

successfully.

The total amount of capital initially with the company that

is at the time of incorporation was RS. 5 corers. At present that is afterthe expansion and modernization of the total amount of capital

maintained with the company is approximately RS, 12 Corers.

MEANS OF FINANCE

The means of the finance for the company, New Kishan

Cement Pvt. Ltd., are as under: -



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Dena Bank

Share Capital

Private Savings

Loans from friends and relatives

CAPITAL STRUCTURE



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The term capital structure refers to the proportion of the

debt and equity capital. It can be legitimately expected that if the capital

structure or the financing leverage decision affects the total value of the

firm then the firm should select such a financing mix as well maximize

the shareholders wealth. Such a capital structure is referred to as theoptimum capital structure. In other words, reasonable proportion of debt

and equity capital is called as optimum capital structure; this leads to the

maximum value of the firm.



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SWOT ANALYSIS

The full form of SWOT analysis means:

Strength

Weakness

Opportunity

Threat

The SWOT analysis of New Kishan Cement Pvt. Ltd. is as follows: -

Strength

Happy and contented work force

Efficient management

Weakness

Less production capacity comparatively



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Opportunity

Expansion in untouched markets

Scope of diversification that is manufacturing different types of

cements.

Threats

Competition from various other companies like the kangaroo

cement, Decora cement, etc.



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SUGGESTIONS

As a student of B.B.A. I would suggest that the unit should go for

brand awareness, expand their market size go for more of

advertisements on the televisions, etc

However, if would be just and proper if hey continue to offer theirpresent services with profit.



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CONCLUSIONS



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New Kishan Cement is a very well known firm. It tries to

provide employment more to the unemployed persons and runs the unit

for the betterment of the country, as one of its objectives.

The company administrates all the departments quiteefficiently and effectively. As a result the industry is running with profit

since the year of commencement.

The management has good industrial relation with the

employees and the workers; they are also given the benefits like

Provident Fund, Bonus, etc. Thus, we can say it sets a good example to

the rest. The professional managers, who are aware of the popular

principles and practice of the management; are managing the company.



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BIBILOGRAPHY

Without the theoretical knowledge, we cannot write more

about all the departments like: Personnel, Financial, Marketing and

Production and so I referred the following books.

Production and Operation Management

By Chunawalla Patel

Personnel Management

By C.B Mamoria

Marketing Management

By S.A. Sherlekar

Financial Management

By Khan & Jain By Taxman

www.kishancement.com



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kishan cemenet bba mba project report

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