project report on cci

7/31/2019 Project Report on Cci

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ADVANCED MANAGEMENT COLLEGE Page 1

INDUSTRY PROFILE

Introduction

Cement is a key infrastructure industry. It has been decontrolled

from price and distribution on first march, 1989 and delicensed on twenty fifth

July, 1991. However the performance of the industry and price of cement are

monitored regularly. The constraints faced by the industry are reviewed in the

infrastructure coordination committee meating held in the cabinet secretariat

under the chairmanship of secretary (coordination). Its performance is alsoreviewed by the cabinet committee on infrastructure.

Capacity and production

The cement industry comprises of one hundred twenty five large

cement plants with an installed capacity of 151.28 million tones and more

than 300 mini cement plants with an estimated capacity of 11.10 million tones

per annum. The Cement Corporation of India, which is a Central Public SectorUndertaking, has 10 units. There are 10 large cement plants owned by various

State Governments. The total installed capacity in the country as a whole is

159.38 million tones. Actual cement production in 2002-03 was 116.35

million tones as against a production of 106.90 million tons in 2001-02,

registering a growth rate of 8.84%.

Keeping in view the trend of the growth of the industry in

previous years, a production target of one hundred twenty six million tons has

been fixed for the year 2003-2004.


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Export

Apart from meeting the entire domestic demand, the industry is also

exporting cement and clinker. The export of the cement during 2001-2002 and

2003-2004 was 5.14 million tones and 6.9 tons respectively. Exporting duringApril-may, 2003 was 1.35 million tones. Major exporting were Gujarat

Ambuja Cement Ltd and L&T Ltd.

Recommendations On Cement Industry

For the development of the cement industry working group on cement

industry was constituted by the planning commission for the formulation of

X five year plan. The working group has projected a growth rate of tenpercent for the cement industry during the five year plan and has projected

creation of additional capacity of 42 to 62 million tones mainly through

expansion of existing plants. The working group has indentified following

trust areas for improving demand for cement.

Further push to housing development programs.

Promotion of concrete highways and roads.

Use of ready mix concrete in large infrastructure project.

Further, in order to improve global competitiveness of the Indian

cement industry, the department of industrial policy and promotion

commissioned on the study on global competiveness of the Indian

industry through an organization has made several recommendations

for making the Indian cement industry more competitive in the

international market. The recommendations are under consideration.


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Industrial Background

The history of the cement industry in India dates back to the 1889

when a Kolkata-based company started manufacturing cement from

Argillaceous. But the industry started getting the organized shape in the early

1900s. In 1914, India Cement Company Ltd was established in Porbandar

with a capacity of 10,000 tons and production of 1000 installed. The World

War I gave the first initial thrust to the cement industry in India and the

industry started growing at a fast rate in terms of production, manufacturing

units, and installed capacity. This stage was referred to as the Nascent Stage

of Indian Cement Company. In 1927, Concrete Association of India was setup to create public awareness on the utility of cement as well as to propagate

cement consumption

The cement industry in India saw the price and distribution control

system in the year 1956, establish to insure fair price model for consumer as

well as manufacturer. Letter in 1977, government authorize new

manufacturing units (as well as existing unit going for capacity enhancement)

to put a higher price tag for their products. A couple of year later, government

introduces a three-tire pricing system with different pricing on cementproduction in high, medium and low cost plants

Cement industry, in any country, plays a major role in the growth of

nation. Cement industry in India was under full control and supervision of the

government. However, it got relief in the large extent after the economic

reforms. The government interference, especially in the pricing, is still evident

in India. In spite of being the second largest cement producer in the world.

India falls in the list of lowest per capita consumption of cement with 125kg.

the reason behind this is the poor rural people who mostly live in mud hutsand cannot afford to have the commodity. Despite the fact, the demand and

supply in India has grown up. In the fast developing country economy like

India there is always large possible of expansion of cement industry.


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Major players

There are number of players prevailing in the cement industry in India.

However, there are around 20 big names the accounts for more than 70% of

the total cement production in India. The total installed capacity in distribution

over around 129 plants, owned by 54 major companies across the nation.

Following are some of the major names in the Indian cement industry.

Company Production Installed capacity

ACC 17902 18640

Gujarat Ambuja 15094 14860

Ultratech 13707 17000

Grasim 14649 14115

India Cements 8434 8810

JK Group 6174 6680

Jaypee Group 6316 6531

Century 6636 6300

Madras Cement 4550 5470

Birla Corp. 5150 5113

Present scenarioPost 1990s have seen a sea of change in the industry policy in India. The

over protective Indian markets were opened to foreign companies and

investors. Thus Indian industry registered an imperative growth during the last

decades and half. The number of industry in India have population, it was

realize


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COMPANY PROFILE

Cement Corporation of India Limited (CCI) was incorporated as a

Company wholly owned by Government of India on 18th January 1965 with

the principal objective of achieving self sufficiency in cement production. The

authorized and paid-up capital of the company as on 31.3.2010 was Rs. 900

crore and Rs. 811.41 crores respectively.

CCI is a multi unit organization at present having ten units spread

over eight states with a total annual installed capacity of 38.48 lakh MT. All

Factories, Zonal Offices and Corporate Office at Delhi are inter connected

through Internet. In line with the advancement in cement technology CCI had

been adopting the latest one with one million tone plants at Tandur and

Nayagaon.

CCI manufactures various types of cements like Portland

Pozzolana Cement (PPC), Portland Slag Cement (PSC) & Ordinary PortlandCement (OPC) of varying grades via 33, 43, 53 and 53S (special grade cement

for manufacture of sleepers for Indian Railways) grades. Under strict quality

control with the brand name ofCCI Cement.

CCI with a strong work-force of 1079 employees (as on

31.03.2010) has always encouraged balanced regional growth with most of its

factories located in underdeveloped/backward areas. CCI has also been

contributing to the development of areas around factories by adopting nearby

villages and providing the basic facilities like school, health center, drinking

water etc.

For maintaining the ecological balance CCI is launching massive tree

plantation drives from time to time at all units and in surrounding areas.


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CCI has established a wide network of ten units with total capacity of

38.48 lakh tones of cement per annum. The units are spread throughout the

country from east (Bokajan in Assam) to west (Akaltara, Mandhar in

Chhattisgarh and Nayaagon in Madhya Pradesh) and from North (Rajban inHimachal Pradesh and Charkha Dadri in Haryana) to South (Kurkunta in

Karnataka and Adlibbed, Tandur in Andhra Pradesh), with one cement

grinding unit in Delhi.

state and national highways, the cement industry has witnessed tremendous

growth. Production capacity has gone up and top cement companies of the

world are vying to enter the Indian market, thereby sparking off a spate of

mergers and acquisitions. Indian cement industry is currently ranked second in

the w9rld.

The origins of Indian cement industry can be traced back to 1914 when the

first unit was set-up at Porbandar with a capacity of one thousand tones.

Today cement industry comprises of one hundred twenty five large cement

plants and more than three hundred mini cement plants.

The Cement Corporation of India, which is a Central Public Sector

Undertaking, has ten units.

There are ten large cement plants owned by various Central Governments.Cement industry in India has also made tremendous strides in technological

up gradation and assimilation of latest technology. Presently, 93 per cent of

the total capacity in the industry is based on modern and environment-friendly

dry process technology. The induction of advanced technology has helped the

industry immensely to conserve energy and fuel and to save materials

substantially.

Indian cement industry has also acquired technical capability to produce

different types of cement like Ordinary Portland Cement (OPC), Portland

Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil

Well Cement, Rapid Hardening Portland Cement, Sulphate Resisting Portland

Cement, White Cement etc.


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CCI in India is currently going through a consolidation phase.

CCI was incorporated as a Company wholly owned by Government of India

on eighteen January 1965 with the principal objective of achieving self

sufficiency in cement production. The authorized and paid-up capital of the

company as on 31.3.2006 was Rs. 700 cores and Rs. 429.28 crores

respectively.

Issues Concerning Cement Industry

High Transportation Cost is affecting the competitiveness of the cement

industry.

Freight accounts for 17 percent of the production cost. Road is the preferred

mode for transportation for distances less than two hundred fifty km.

However, industry is heavily dependent on roads for longer distances too as

the railway infrastructure is not adequate.

Cement industry is highly capital intensive industry and nearly 55-60 percent

of the inputs are controlled by the government.

There is regional imbalance in the distribution of cement industry. Limestone

availability in pockets has led to uneven capacity additions.

Coal availability and quality is also affecting the production.

2.3 Nature of Business

The Indian cement industry with a total capacity of about two hundred m

tones (MT) in FY09 is the second largest market after China. Although

consolidation has taken place in the Indian cement industry with the top five

players controlling almost 60 percent of the capacity, the balance capacity


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still remains pretty fragmented.

Despite the fact that the Indian cement industry has clocked production of

more than one hundred MT for the last five years, registering a growth of

nearly 9 percent to 10 percent, the per capita consumption of around 134 kgs

compares poorly with the world average of over 263 kgs, and more than 950

kgs in China. This, more than anything, underlines the tremendous scope for

growth in the Indian cement industry in the long term.

Cement, being a bulk commodity; is a freight intensive industry and

transporting cement over long distances can prove to be uneconomical. This

has resulted in cement being largely a regional play with the industry

Divided into five main regions viz. north, south, west, east and the central

region. While the southern region always had excess capacity in the past

owing to abundant availability of limestone, the western and northern regions

are the most lucrative markets on account of higher inc.ome levels. However,

with capacity addition taking place at a slower rate as compared to growth indemand, recently the demand supply parity had also been restored to some

extent in the Southern region. Considering the pace at which infrastructural

activity is taking place in different regions, the players have lined up

expansion plans accordingly.

Given the high potential for growth, quite a few foreign transnational's have

been eyeing the Indian markets and are planning to acquire domesticcompanies. Already, while companies like Lafarge, Heidelberg and

Italicementi have made a couple of acquisitions, Holcim has acquired stake in

domestic companies Ambuja Cements and ACC and has increased its stake

gradually to gain full control. After acquiring stake in big companies,


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transnational eyed median capacity producers. Italcementi acquired 100

percent stake in Zuari Cement and 95 percent stake in Shree Vishnu. Cimpor,

the Portugese cement manufacturer, acquired Grasim's stake (53.63%) in

Shree Dig Vijay. However, it must be noted that the transnational's will find

the going tough since cement is a game of volumes and with the median

capacity of fragmented players, the transnationals will have to acquire

capacities piecemeal and this route is fraught with a lot of uncertainties. The

global players put together account of quarter share of the domestic market.

Further, turning around few of the companies at a time when the cycle is at its

peak would be a difficult task.

Location:Rajban Cement Plant is located at 60 km from Dehradun and 70km from Yamunanagar by road. It is 10 Kms from Ponta Sahib by road. Distt.

- Sirmaur. State - Himachal Pradesh

Capacity:2, 47,000 MT per Annum

Process:Dry process

Type of Cement: Ordinary Portland cement,Pozzolona Portland Cement.

Total layout area:

Factory area + Township Mining Area

-------------------------- --------------

Leased Land 136.338 acres 242.3 hectares

Freehold land 34 bights and 11 bitwise 13.4 hectares

Commencement of Production:01.04.1980

Facility Available :Own township having 449 Nos. of residentialaccommodation with facilities of health centre, shopping complex, recreation


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club, Guest house, Bank, Post office , LPG Shop, Telephone exchange and co-

operative store.

Employees as on 01.07.2011:

i) Executives : 19

ii) Supervisors: 43

iii) Workers : 171

Production during last eight years:Year Cement (MT)

------ ----------------

2003-2004 1,57,945

2004-2005 1,67,555

2005-2006 1,96,650

2006-2007 1,91,000

2007-2008 1,60,160

2008-2009 1,43,400

2009-2010 1, 87,360

2010-2011 1, 57,130

Sales & despatches and accretion/(Discretion) to stock ---6834.04 (Rs. in

Lakhs)

Other Income -----213.92 (Rs. in Lakhs)

Raw Materials Consumed -------713.12(Rs. in Lakhs)

Stores and Packing material consumed ---------382.76(Rs. in Lakhs)

Emp. Remuneration & Benefits -------1119.22 (Rs. in Lakhs)

Interest --------20.95 (Rs. in Lakhs)
http://cementcorporation.co.in/page.php?id=118http://cementcorporation.co.in/page.php?id=118http://cementcorporation.co.in/page.php?id=118


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Depreciation --------93.85 (Rs. in Lakhs)

Other Manufacturing Expenses ----------3608.23 (Rs. in Lakhs)

Profit (+)/Loss (-) --------1109.83 (Rs. in Lakhs)

Reserves & surplus --------- 7092.57 (Rs. in Lakhs)

Net Fixed Assets --------- 1736.94 (Rs. in Lakhs)

Current Assets -------3050.69 (Rs. in Lakhs)

Current Liabilities & Provision --------3318.95(Rs. in Lakhs)

Capital W.I.P --------196.83(Rs. in Lakhs)

Capital Employed---------1468.68(Rs. in Lakhs)


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Key Points

Supply

The demand-supply situation is tightly balanced with the latter being

marginally higher than the former.

Demand

Housing sector acts as the principal growth driver for cement. However, in

recent times, industrial and infrastructure sector have also emerged as demand

drivers for cement.

Barriers to entry

High capital costs and long gestation periods. Access to limestone reserves

(principal raw material for the manufacture of cement) also acts as a

significant entry barrier.

Bargaining power of suppliers

Licensing of coal and limestone reserves, supply of power from the state grid

and availability of railways for transport are all controlled by a single entity,

which is the government. However, nowadays producers are relying more on

captive power, but the shortage of coal and volatile fuel prices remain a

concern.

Bargaining power of customers

Cement is a commodity business and sales volumes mostly depend upon the

distribution reach of the company. However, things are changing and few


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brands have started commanding a premium on account of better quality

perception.

Competition

Due to large number of players in the industry and very little brand

differentiation to speak of, the competition is intense with players resorting to

expanding reach and achieving pan India presence


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COMPETITORS

L&T cement plants

AC ltd cement plants

Gujarat ambuja plants

JK cement plants

JK Lakshmi cement

Madras cement

India cement

Shangri industries

Dalmia cement

ITD cementation India

Dalmia cement Bharat

Ultratech cement

Relience cement plant

India cement plant

Birla group

Jaypee group

Tata group cement

Century cement

Grasim cement plant


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2.5 BOARD OF DIRECTORS

Board of Directors

Mr. A.K. SRIVASTAVA Chairman

Mr. R.K. HARKAWAT Director (PERSONAL)

Mr. R.P. TAK Director (FINANCE)

Mr. SURAJIT MITRA

Mr. R. ASOKAN

Mr.Maj. Gen. (Retd.) UMESH KUMAR JHA

HEAD OF DEPARTMENT

Mr. SARSVATI PARSAD (Chief Vigilance Officer)

Mr. R.N. CHAUHAN (Addl. G.M.)

Mr. S. PUROHIT (DGM Finance)

Mr. V.K. SINGH (DGM MM)

Mr. O.P. SONI (CMO)

Mr. RAMENDRA SINGH (SR. Manager personal)

Mr. R.R DESHPANDE


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VISION, MISSION

AND OBJECTIVE

VISION

To be known for producing quality cement.

Self sufficiency in cement production.

MISSION

Ensure customer delight

Involve employees as partners in progress

Set new standards in good corporate citizenship

OBJECTIVES

To achieve a pioneering and leading position in the exploration,

prospecting and proving cement grade lime stone reserves and deposits

to sustain ambitious growth plan of the corporation, in particular and of

the cement industry, in general

To emerge as a growing and important leader in the production ofcement in the country by creating additional capacity ether by

expansion are by improved technology are by starting by new cement

plants

To emerge as a leader in sating up capacities in deficit/remote area for

removing existing regional imbalance of production and consumption


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in pursuance of the national policy in this regard

To emerge, resultantly as the largest seller of cement in the country and

to continue to perpetuate and improve upon the same position by

constant increase in the production capabilities.

To develop and enter export market for export of cement particularly, to

neighboring South East Asian countries.

To undertake detailed and scientific scanning of the marketing

potentialities for development and diversification into areas of cement

based building materials such as AC sheets, pipes, sleepers, ready mixed

concrete and to undertake appropriate research studies for development

of other building binding materials as a substitute for cement.

To occupy position both of dominance and eminence in the Research and

Development in different fields of cement technology and process and

also bring about new innovations in the design, layout and other

technical specifications of new cement plants and other related auxiliary

inputs to the cement industry.

To develop capability and to sustain, perpetually, sound technical and

engineering knowledge to render technical Consultancy services both in

the field of plant layout as well as in the cement process technology both

within and outside the country.

To develop expertise and sustain sound practices in project management

by application of modern management techniques of planning,


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monitoring review and process of the projects undertaken to ensure their

completion within sanctioned costs without any time overrun.

To ensure sound commercial policies, customers acceptance and

satisfaction for the Corporation's products and other services.

To develop confidence in the customers and to sell products/services of

high quality and prices determined from time to time by the Government

and to sustain a sound image for the products supplied and services

rendered which are the results of latest sophisticated technology and

manufacturing techniques.

To generate a participative culture and management style which will

create good in-house working conditions and job satisfaction to all

employees, to ensure fair wages commensurate with their performance,

create a sense of involvement and belonging to the Corporation, instill a

sense of confidence in the matter of their career growth and advancement

and create an atmosphere of mutual respect and goodwill amongst all

sections of the employees.

To sustain continuous development of managerial talent so as to ensure

their best contribution in the matter of utilization of resources placed and

their disposal for managing and to provide adequate training and

development opportunities for all our workmen.

To develop organization structure with well defined objectives and

responsibilities to create an atmosphere where freedom to function and

flexibility to perform is ensured for all according to their ability,


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capacity, resourcefulness and initiative.

To develop internal resources to sustain future growth of the Corporation

as envisaged.

To put in its humble mite and fulfill its social and community obligations

by pursuing national policies in regard to development of rural and

backward areas to the extent resources of the Corporation could be

deployed.

To review from time to time the environmental impact of setting up of

our industries and to continuously find ways and means to offset

minimize impact of such environmental pollution

2.7 Product Profile

CCI manufactures various types of cements like ordinary Portland

Cement (OPC) & Pozzolana Portland Cement (PPC) of different grades via

33, 43, 53 grades under strict quality control with the brand name of CCI

Cement.

Salient characteristics of different types of cement produced by CCI are:


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CHARACTERISTICS

OPC 53

GRADE

IS 12269

OPC 43

GRADE

IS 8112

OPC 33

GRADE

IS 269

PPC IS

1489

YEAR 1987 1989 1989 1991

Fineness Minimum

specific surface cm2/gm

3000 3000 3000 3200

Setting time (minutes)

a. Initial not less

than

30 30 30 30

b. Final not more

than

600 600 600 600

SoundnessExpansion by

a. Le-Chatelier

(mm) 10.0 (max)

10.0 (max) 10.0 (max) 10.0 (max) 10.0

(max)

b. Autoclave (%) 0.8 (max) 0.8 (max) 0.8 (max) 0.8 (max)

Minimum compression strength (Kg/cm2)

a. 3 days 270 230 160 160

b. 7 days 370 330 220 220

c. 28 days 530 430 330 330

In CCI CEMENT quality parameters namely fineness & compressive

strength are maintained 15-20 percent over and above the prescribed BIS

specifications.


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2.8 Area of Operation

Cement production markets have become global markets. The large corporate

buyers are interested in buying cement companies all across Europe. We help

business owners of cement companies directly in the sale or purchase of a

company. Corporate Finance in Europe knows the European cement market

very well. We know the main decision makers (CEO's, CFO's and board

members or PE investors behind them) at cement companies.

We like to show you that we understand the cement market, the relevant

synergies and plans of the different buyers. We are up to date with the latest

and most realistic valuations that currently occur in the market. With this

knowledge we can not only help you in finding the buyer that pays the highest

price, but also ensure you to find the most suited strategic partner for your

business for the long run. We can help you through the complete process if

you want to sell a cements business.

The effects of the recession on cement production

The recession was originated in the US financial system and the housing

market and has rapidly spread its efforts across the world. Later on this

affected the real economy due to the shrinking of global demand trade flows.

The decreasing activity in the construction sector will decrease the world

wide cement production volume in advanced economies and lower growth

rates in emerging markets.


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2.9 Manufacturing Strategy

Asbestos is a naturally occurring mineral that exists in abundance in

numerous countries around the world. The material can be found in the soil orin exposed outcroppings of rock, and it exists in a variety of types, chemical

compositions, and colors. Asbestos is a strong, virtually fireproof, and highly

corrosion resistant material that has fascinated and served mankind for

thousands of years, but in the late nineteenth century, its commercial use

began to increase. In the late 1880s, several asbestos-containing composite

products and materials began to enjoy popularity in the United States and

around the world, and one of the most welcomed and widely utilized of these

items was asbestos cement.

Asbestos-cement is a mixture of primarily chrysotile or white asbestos and

Portland cement. Because asbestos has a very high tensile strength and

superior resistance to degradation from corrosive chemicals, it was considered

to be an excellent additive to the particular chemical matrix of Portland

cement. Depending on the specific use or application of the finished product,

the ratio of asbestos to cement can vary from between 10 to seventy-five

percent by weight. Once the cementitious product is fully cured, the asbestos

fibers are bound in a hard. mass that is stable and durable.

One of the earliest asbestos-cement products that had appeared in the United

States went on the market in 1905, and it was in the form of a coating that had

been developed by H. W. Johns Manufacturing Company (later to be known

as Johns-Manville). The asbestos-cement coating had originally been

promoted as a highly effective roof repair material that could add years of life

to roofs that were once thought to be beyond repair. Often sold as a

convenient, premixed paste, asbestos-cement soon became the low cost


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material of choice for roof and flashing repairs or waterproofing around

chimneys, skylights, roof vents, drainage scuppers, etc.

2.10 Achievement

The excellence award instituted by the Institute of Economic studies (I.E.S.),

New Delhi was conferred on corporation in March, 2005 for achieving

Excellence in Productivity, Quality, Innovation and Management.

Manual Limestone Mine in Mines Safety Weeks (MSW) and Mine

Environment & Mineral Conservation week (MS & MCW) participated in

various competitions from 2002-03 onwards and various prizes were won in

consecutive years from 2001 onwards till date.

A. Various Prizes were won by Rajban Unit organized by Directorate of

Mines Safety Ghaziabad Region as detailed below.

2004-05 2005-06 2006-07 2007-08

1. Mine working & Roads First - - First

2. Explosives Third Third Second Third

3. Training & Personnel Second Second First -

4. Overall Performance First Third Third Third

5. Publicity & Propoganda First - - -

6. Noise & Air Pollution Third - - Third

7. Welfare, House-keeping First Second - First


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and Protective Equipments

B. Mines Environment & Mineral Conservation week organized by Indian

Bureau of Mines, Dehradun

Region for the year 2004-05, 2005-06, 2006-07 & 2007-08.

"DHRUV" Trophy for Large Mechanized Mine for extra-ordinary efforts for

the protection of Environment & Mineral Conservation.

C. Various Prizes were won by Tandur Unit for mines safety (DGMS awards

for group large mechanized mines) & mines environment and ,mineral

conservation (IBM awards) as detailed below

2006-07 2007-08

Mine Working Second Prize Second Prize

Top Soil & Water Quality Management Second Prize Second Prize

Air Quality Management First Prize -


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Following prizes were won by Bokajan Unit during "North East Mine

Environment and Mineral

"Conservation" 2007 -08

A forestation Third Prize

Reclamation & Rehabilitation First Prize

D. Following Prizes were won by Bokajan Unit during mines safety week for the

Year

2005-06

Open Cast mines Working Third Prize

Publicity and Propaganda Second Prize

General Health &Welfare First Prize

Drilling & Dumper Operations Third Prize

Overall mines Performance Second Prize

Mines Survey & records Second Prize

The Bokajan unit won the First Prize in "Mines Waste Dump Management"

among North-East Mines during Mines Environment Conservation Week under

the guidelines of Mines Statutory Body "Indian Bureau of Mines".

3. CCI has been awarded the 'All India Organizations of Employees


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Industrial Relations Award' for the year 1993-94 for promoting sound

industrial Relations environment.

4. May Day Award 1994.'

5. Bokajan Cement Factory has bagged the National Safety Award for the

year 1990.

6. Kurkunta Cement Factory has bagged the National Award for energy

efficiency in Cement Industry for the year 1989-90 awarded by the National

Council of Cement & Building Materials (NCCBM) in association with

Ministry of Energy.

7. CCI has been awarded second prize under Indira Gandhi Raj Bhasha

Award for 1987-88 for outstanding achievement in promoting the official

language policy of the Government.

8. The Annual Report and Accounts (1986-87) of the Company were highly

commended and awarded the plaque by the Institute of Chartered

Accountants of India (1988).

9. CCI has been awarded the International Asia Award 1984 in consultation

with the Chamber of Commerce and Industry for distinguished contribution

towards development and evolution of economy in Asian Area (1984).


commended and awarded the plaque by the Institute of Chartered

Accountants of India (1984).

11. Mandhar Cement Factory was selected for productivity award (second

best among all cement factories) by the National Productivity Council for the

overall productivity for the year 1983.


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12. Kurkunta Cement Factory which had operated at more than 110 percent

capacity during 1982-83 was adjudged by the National Productivity Council

as best among all factories in Cement industry for its highest overall

productivity in the productivity year 1982.

13. Mandhar Cement Factory was adjudged by the National Productivity

Council as the best in terms of 'Energy Conservation' which is one of the

core factors of productivity, for the year 1982.

14. The Annual Report and Accounts (1980-81) of the Company were

adjudged. the best and awarded the silver shield by the Institute of Chartered

Accountants of India (1982.)


Commended and awarded the plaque by the Institute of Chartered



Commended and awarded the plaque by the Institute of Chartered



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2.11 Organization Chart

Communication within the organization is free and informal most of the time.

Each one in the organization is clear about his role i.e. duties and responsibilities.

There is a cordial relationship between superiors and their subordinates. Formal

communication is hardly found. Superiors are used to give instructions to their

subordinates in clear terms and in informal manner. That makes the subordinates feel

comfortable and understand their duties to be performed. It is common scene that

superior himself coming to the subordinate and giving him directions.

Management Decision - Making

Like any other organizations, the policy decision is taken at the top i.e. by the

Board of Directions, subject to the provisions of bye-law, and directions conveyed

in resolutions of General Meetings of the society. The Board has full authority to

carry on the business of the society. The Board may meet as often as it considers

necessary for the transactions of the business but not less than once a month. The

members of the board are personally liable for all transactions conducted in

contravention of the Byelaw. Provision 38 of the bye law lists down the business

of the Board. To quote some of them:-

To dispose of applications for membership and for share and their

transfers.

To raise loans and prescribe conditions on which deposits may be raised.

To check the accounts of the society.

To institute, defined or compromise legal proceedings.

To sanction working expenses.


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ORGANISATION CHART

Chairman - cum

Managing Director

Director Director Director Director Chief VIG

(PER) (FIN) (MKTG) (OPNS) Officer

Sr. Manager CMP DGM ZM ZM ZM

(PER) (FIN) North East South

Manager

Mktg.

Addl. D.G.M. Sr. Mgr.

GM (M.M) ADM

GM GM GM GM GM GM D.G.M. Sr.Mngr. .

(RJO) (TDO) (BKO) (MDO) (KKO) (NYO) (OPNS) G&M


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Fig. 3.1 (Organization Chart)

2.9 Social Responsibility

Social responsibility has been assuming increasing importance and there is

growing awareness among the Corporate Sector these days that every company

should contribute positively towards the 'social goals. One of the protagonists of

Social Audit believe three reasons for acceptance of Social Responsibility,

They are:

Management has become separate from ownership and is less concerned

with the preservation of capital and more interested in performance

which can have social component.

Companies should concern themselves with non-profit social activities.

Income as a measure of performance has been deemphasized in favor of

future potential and social image.

Apart from the primary role of increasing the cement production and making

cement available in needy, remote and back ward areas of the country, the

Corporation has been, suomoto, bestowing considerable attention towards

contributing to the Society and the Community at large by adopting villages

adjoining its operating units to make them better place to live in. CCI has been

providing reasonable medical and educational facilities to the locals through its

own health centers and educational institutions. CCI also has been engaging

themselves in improvement of other infrastructure like road, water supply facilities


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and development of non conventional energy sources to the adopted nearby

villages. In the commitment of environmental improvements, CCI has been

developing parks, play grounds and is also planting/rearing trees

As part of anti-pollution measures, CCI is committed to make the environment

around its factories dust free by installation of ESP systems in the old plants not

having this facility.

All new plants have these systems already. The Conventional measurement of

profitability and growth as reflected in the profit & loss statement and the balance

sheet is not adequate enough to reveal extent of contribution business houses had

made to the community in discharge of its responsibility to various facets of

society. It may perhaps take some more years before we develop suitable

techniques for measuring social and community contribution with relative degree

of confidence and accuracy. Nevertheless, we have taken inspiration from

standards and concepts evolved by David F. Linowes and the Abt, Associates

Annual Report 1972 which provide guidelines to draw social statement of various

social events enervating as by-products of a business activity. CCI has been

making efforts to bring out "Social Account" by drawing upon the guidelines of

"Abt: Associate Annual Report 1972' with such modifications as considered

suitable. This is the Twenty 3rd year in succession in which such an account is

being projected and included in the Annual Report of the Company. The Social

income statement comprises three sub statements each showing Company's social

impact separately on staff, community and the general public comparing the

benefits vis-a-vis the detriments (Costs) to the Society. In this connection, it may

be taken note of that Social Accounts are "Society's statements" and not of the

Company, as they portray the total social benefits drawn by the Society from the


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Company's multifarious operations as well as the detriments developed on the

society due to the Companies activities.

The Environment

From the outset, CCI has believed that a cement plant cannot flourish at the

cost of the environment. That's why it adheres to the most rigorous international

environmental norms.

The pollution levels at all its cement plants are even lower than the rigorous Swiss

standards of 100 mg/NM3.

At the Himachal Pradesh plants, surface miners have been employed to scrape the

surface of the mines. Thus ensuring that all the mining is totally blast free. There is

no noise or air pollution.


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FUNCTIONAL DEPARTMENTS

HUMAN RESOURCE DEPARTMENT

FINANCE DEPARTMENT

PRODUCTION DEPARTMENT

MARKETING DEPARTMENT

PURCHASE DEPARTMENT

QUALITY ASSURANCE DEPARTMENT


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Functional Departments:

Human Resource Department

Human Resources are of vital importance and significance to an enterprise and

constitute a primary of the total resource held. A peculiar aspect of human

resources is that while these have infinite potential yet whatever is realised out of

this resource is generally akin to the tip of the iceberg the remaining whole lot

lying submerged untapped. Deliberate efforts have therefore, to be made to

augment the gap between Actual and potential human resource may also be

branded as Mother Resources through the medium of which other scare resource

viz. Machines, material, money are organized, co-ordinate, directed and controlled.

Maximum realization of the Potentialities of this Mother resources is of crucialimportance for the success of an enterprise. The in-house management and

leadership styles the participative, collaborative and supportive climate, the

motivation environment, care concern and fellow feelings for each other, the

freedom and flexibility to operate within given frame-work of organization goals

and objectives productivity oriented performance yard sticks and continued

managements positive awareness for training & development effort to keep the

threat of human obsolescence at are some of the essential inputs for tapping this

resource by mere efflux of time unless they are effectively and meaningfully putto use continually .

CC is fully conscious of these phenomena and utmost attention and priority to

maintain the human asset of fine fettle. The procurement, development,

compensation, integration and maintenance of human resources are thoughtfully

planned, skillfully organized, carefully controlled and deftly directed so as to

secure the meaningful and the individuals needs, organizational goals and social

objective are successfully accomplished.

A good insight into existing human potential can be well perceived through the

profile of the human power distributed profession wise and age wise 15.35

percentage of the total employees strength of CCI represent technically and

professional qualified degree/diploma holders. As such 49.18 percentage of total

strength of the organization is in the age group of 26-50 year. However, average


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age of our employees comes to50 years. The broad distribution of CCI human is as

under:

Administrative Department

Mr. A.K. Srivastava is the Chairman and Managing Director and including

them, CCI is having six Board of Directors. All the major policies and decisions

are framed by administration department. CCI policies (top to bottom), intake of

new employees, market policies is taken by Administration Department. The

department is having the strength of highly intelligent six members forming a

cutting edge team. Presently CCI is trying to increase its business in market and as

well as capturing more shares of domestic market. Production is the functional

3.2 Production Department

Area responsible for turning inputs into finished outputs through a series of

production processes. The Production Manager is responsible for making sure thatraw materials are provided and made into finished goods effectively. He or she

must make sure that work is carried out smoothly, and must supervise procedures

for making work more efficient and more enjoyable.

Five Production Sub-Functions

In a manufacturing company the production functions may be split into five

sub functions:

The production and planning department will set standards and targets for


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each section of the production process. The quantity and quality of products

coming off a production line will be closely monitored. In businesses

focusing on lean production, quality will be monitored by all employees at

every stage of production, rather than at the end as is the case for businesses

using a quality control approach.

The purchasing department will be responsible for providing the materials,

components and equipment required. to keep the production process running

smoothly. A vital aspect of this role is ensuring stocks arrive on time and to

the right quality.

The stores department will be responsible for stocking all the necessary

tools, spares, raw materials and equipment req~ired to service the

manufacturing process. Where sourcing is unreliable, buffer stocks will need

to be kept and the use of computerized stock control systems helps keep

stocks at a minimal but necessary level for production to continue

unhindered.

The design and technical support department will be responsible for

researching new products or modifications to existing ones, estimating costs

for producing in different quantities and by using different methods. It will

also be responsible for the design and testing of new product processes and

product types, together with the development of prototypes through to the

final product. The technical support department may also be responsible for

work study and suggestions as to how working practices can be improved.

The production department will be concerned with the manufacture of

products.

This will include the maintenance of the production line and other necessary


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repairs. The works department may also have responsibility for quality

control and inspection.

A key aspect of modern production is ensuring quality. The term quality meansfitness for purpose i.e. a product; process or service should do exactly what is

expected of it.

Process of manufacture:

Production utility and services departments of the product:

The factory manufactures ordinary Portland cement and dozzolana cement by

adopting Dry Process

High grade limestone is mined at the companys mines loca ted at about 12 kms

from the factory. The mining operations are mechanized. The limestone mind is in

the form of boulders of 300 mm to 450 mm size. These are transported by road.

By contractor to crusher located at about 2 kms away from the mines face. The

boulders are crushed to less than 25 mm size and transported to the factory by

means of a by cable ropeway of which each bucket is of 1.5 tones capability.

The crushed limestone on receipt at the factory is stacked in piles at the qantry.

From the qantry it is fed to a hopper by travel crane. Correcting materials such as

iron ore/dust. Shale, and sandstone are added to the limestone and fed to the raw

mill. In the raw mill the limestone along with the additives is ground to the fines

which is known as raw meal. The air separator in the raw mill separates the fines

and coarse materials are again fed to the raw mill. The silos have two compartment

blending silo and storage silo. Compressed air is circulated continuously for 4 to 5

hours in the blinding silo to homogenize the raw mill. The homogenized raw meal

is stored in storage silo.


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From the storage silo, the homogenized raw meal is pumped to the preheated by

FK pump through screw conveyor elevator and weigh feeder. The preheated is four

stage suspension type. Hot air is circulated by ID Fan through cyclones in four

stage to achieve the desire temperature.

The raw meal from the preheated is fed to rotary kiln from one end, pulverized

coal is fed from other end. Clinker is formed in the coal. Clinker is formed in the

form of granules at about 14000. Decarbonation also takes place at this stage. The

clinker is cooled to 400oc in the planetary coolers and stored in the gantry mill

through conveyor belts.

Other materials likes qypsum, brick bats, fly ash, rice husk ash etc, are also stored

in hoppers, the clinker, alongwith these other additives, required is fed to the

cement mill through feed tables from the hoppers. The additives will depend on the

quality of cement to be produced pozzolana or ordinary materials are ground to

fines by rotation. The ground cement is stored in silos. Compressed air is circulated

continuously inside the silo to keep the cement intact.

The cement is extracted from the silos through screw conveyor and elevated to the

fluxo machine hopper. The cement is packed in bags by rotary fluxo packer, each

bag containing 50 kg of cement.

Total quality management

Every employee is expected to take responsibility for managing quality

issues in order to make sure that waste is minimized and quality maximized. This

is often referred to as total quality management and is part of the lean productionmethods used in modern industry.

For businesses to be competitive, Production and Marketing need to work in an

integrated way. Marketing is concerned with knowing and understanding the

requirements of customers, so that Production can provide the market led products


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that are required. This also requires excellent communication systems to be in

place.

Incumbent is primarily responsible for the effective operations of quarries, rawmills, kilns, cement mills, dispatch, plant for truck and rail wagons, and process

control of production lines. Incumbent is accountable to Plant Manager for all

matters related to Production Department.

Duties Performed

Plans, directs and supervises the activities of personnel assigned to

Production Department. Performs supervisory functions and exercises

authority at the Department Head level as established by management.

Plans, directs and coordinates the development of a product mix to ensure

smooth operation and reduced costs of prime quality products. Includes

reviewing, analyzing and evaluating the use of various raw material

alternatives in the production process and determining the costs and benefits

of using such alternative raw materials.

Coordinates and ensures the efficient planning for production and quality

control of Type I & Type V cement and/or Oil Well cement. Includes

coordinating with Marketing for determining quantity requirements for the

various types of cement.

Coordinates with the respective maintenance organizations to ensure that

Plant equipment and machinery will be readily available for production

purposes in line with the production plan.

Initiates and directs studies to determine raw materials availability at

Company quarry areas, normally the gypsum, limestone and clay quarries.


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Such studies are to determine the quantity and quality of raw materials

available at areas designated for the quarries.

Initiates and directs studies designated to improve the productivity andefficiency of raw mills, kilns and cement mills. Such stu


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professional standards. Work accomplishments are subject to review by Plant

Manager. Confers with Plant Manager on matters of importance related to

Production Department.

3.3 Financial and Accounting Management

The importance of finance in the business is same as the importance of the

spring in the clock. Finance is required from the starting of the business until it

terminates, as a means of the business transaction. Finance is the blood of the

business without which an enterprise cannot survive.

"Finance is that administrative area or set of administration function in an

organization which relates the arrangement of cash and credit so that organization

may have the means to carry out its objective as satisfactory as possible".

Meaning of Financial Management

Financial management is the concern with the managerial decision that

results in the acquisition and financing of long term and short term credit of

the firm. Financial management is a managerial activity, which is concern

with planning and controlling of the firm financial resources.

In L.D.P.M., there is a separate department of finance and Accounts, which

handles different financial transactions and keeps on track of the revenues

and expenses of the company. The finance department manages by top level

management.


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Sources of Finance

Sources of finance means medium through which the business enterprises gets the

finance for establishment and for smooth running of the business. There is twotype sources of which is given below

Long-term Sources of Finance

It is a source of finance, which is required for long time and it is a permanent

source of finance.

Need for Long Term Finance

Any business organization needs finance mainly for two reasons

To finance long-term requirements.

To finance day-to-day short-term working capital requirements.

The long-term requirements for finance include funds required for

Setting up of the firm.

Expansion.

Modernization.

Diversification.

Replacement of existing machines.

Other similar capital expenditure decision.

Actually, L.D.P.M is the private organization which is family managed. Therefore,

they do not issue any share to the public. They issue shares within their relatives


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and friends.

Short-term Sources of Finance

Short-term source of finance is a fund, which is required to the firm for their day-

to-day operation or smooth working of the organizations operations. In a current

era, major firm's use following sources for their short-term requirement

Commercial Paper

Certificate of Deposit

Inter corporate Deposit

Factoring

Bank Loan

Following source of finance used by L.D.P.M. for their short term requirement of

fund

Bank Loan

Cash Credit (C.C.)

3.4 Marketing Department

Marketing Policies

From time to time, advertisements are released by our Zonal/Regional

Offices inviting applications for appointment of Stockiest/Distributors. The

application form can be obtained on payment from CCI Offices. Based on the


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present line of business and financial status, appointments are made. An agreement

is executed between the party and CCI after obtaining security deposit. Generally

persons dealing in steel, building materials and other allied products, unemployed

youths, SC/ST and persons from villages having not more than 5000 population

are given preference.

Marketing Network

In line with its consumer oriented marketing policy, CCI is committed to

supply best quality cement at right price and on time. Thus CCI Cement is

marketed through a well established network of Zonal offices, Regional offices,

Dumps and authorized Stockiest/Dealers/Distributors. However, the bulk

consumers, Govt. Depts., PSU's etc. are contacted directly by Marketing/Sales

officials of CCI and orders are obtained through participation in

tenders/submissions of quotations.

For any further details/enquiries contact Marketing/sales personnel at Corporate/Zonal/ Regional offices as given below.

3.5 Quality Assurance Department

A Quality Assurance dept. at Corporate office with representatives at each

cement manufacturing plant is the backbone of Quality, for the product

manufactured by CCI. This cell is directly reporting to C&MD regarding all

quality matters.


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One executive of Production dept. at each unit has been made responsible for

quality assurance. All these executives at unit level are responsible for following

jobs:

To ensure that quality of cement conforms to the laid down standards relating

to fineness, strength, expansion, ingredients etc. and only quality product is

sent out of the factory.

To carry out physical & chemical tests over and above the normal tests

required for the purpose of production by taking necessary number of samples

from each lot.

To carry out inspection of bags at the time of packing as well as to conduct

random sampling tests to ensure that the bags are of good quality and the

weight of the loaded bags are correct.

The short weight bags are not allowed to move out of the factory.

The Executive (QA) checks the details of branding on the bags before packing

of cement.

The Executive (QA) is responsible to monitor adherence to all the stipulations

made by the Indian Bureau of Standards for various tastings. He also monitors

the conditions of various equipments and other stipulations.

The Executive (QA) monitors the mode of sampling by Production

Department for testing of various input materials at different stages and make

comprehensive report to General Manager with a copy to Manager (Prod)


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C.O.

To carry out checking of calibration of the testing machines on random basis.

To innovate the basic method of Quality Control, introduce new concepts relating

to total quality management, its implementation through Production Department

and percolation of total quality management as well as quality consciousness down

the line through Production Department.

To ensure that Weekly Quality Assurance Report in the prescribed format and

Daily Quality Messages are sent to C.O.

For the purpose of collection of samples and carrying out the necessary chemical

& physical tests, the employees detailed at various points including that of

Laboratory under the Production Department, extends necessary services to the

Executive (QA).

The duties and responsibilities of Executive (QA) at the Unit does not include day-

to-day operations in the Production Department. All kinds of tests required for the

production and inspection of inward materials continue to be performed by the

executives of the Production Department.


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AUDITED ACCOUNT FOR THE YEAR 2009-2010

(Rs. in Lakhs)

Sales & dispatches and accretion/ (Discretion) to stock 33425.69

Other Income 3462.44

Raw Materials Consumed 3640.48

Stores and Packing material consumed 1639.50

Emp. Remuneration & Benefits 4597.46

Interest 3752.20

Depreciation 888.27

Other Manufacturing Expenses 17095.32

Profit(+)/Loss(-) 5274.90

Equity 81140.74

Reserves & surplusLoans 46875.17

Net Fixed Assets 10733.75

Other Assets (Including DRE) 1906.88

Current Assets 49033.50

Current Liabilities 36058.56

Capital W.I.P 1577.20

Other Intangible Assets 100823.14

Capital Employed 23708.69

No. of Employees(Nos.) 107


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CHAPTER-6

MCKENSYS

1 MCKENSY'S 7S FRAME MODEL WITH SPECIAL REFERENCE TO

ORGANIZATION UNDER STUDY

The 7's Model is better known as MCKENSY'S 7'S FRAME MODEL. This is

because the two person who developed this model and it is developed by Torn

peters and Robert water man, have been consultants at Mckinsey & Company. They

published their 7's model in their article Structure is not organization" (1980) and

their books " The art of Japanese Management" (1981) and Search of Excellence"

(1982).

The Model starts on the premise that an organization is not just structure, but

consist of seven elements namely, these seven elements are distinguished as so

called Hard 'S' and soft 'S'. The hard elements are feasible and early to identify.

They can be formed strategy, statements, corporate plans, organizational charts and

other documentation.


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The Hard S' are namely following belows.

Strategy

Structure

Systems

The soft S' are namely following belows,

Style

Staff

Skills

Shared value

STRATEGY:

The Strategy adopted by the company is based on the price prevailing in the

market. Company uses the waste elimination strategy by way of using the waste in

manufacturing the by products. The various by products manufactured by the com-

pany as following below,

Molasses is used as major content in production of wines and other alco-

holic products. So it is sold to liquor industry, and income is earned 2 crores per

month.

Bagasse is used for Power Generation and Fresh mud sold to the farmers

during the process, which they turn use to fertilizer for growing the sugar cane.


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SYSTEMS:

The company used FIFO that is First in First out inventory for maintaining

an inventory, company maintains various account book for holding the inventory

in an efficient manner.

STYLE:

The company's Decision making is done by way of selecting the tender as

government decides on sale to be done by the companies in a particular month..

STAFF:

Staffing is the process of acquiring the resources for the organization and

assuring that they have the potential to contribute to the achievement of organiza-

tional goals.

SKILL:

Employee skill is identified by way of performance appraisal; depending on

the strength and weaknesses of the employee the training program is conducted.The company has skilled, unskilled, and semi skilled labors. Depending on the job

nature and importance of the job, and on-job training will given to them.


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SHARED VALUE:

Guiding concepts, fundamental ideas around which a business is built-must

be simple, usually stated at abstract level, have great meaning inside the organiza-

tion even though outsiders may not see or understand them. The Maruti

Khandsari. General principles of conduct and action can be summarized as

follows.

Principles of conduct

1. Professional commitment

2. Respect for others

3. Integrity

4. Loyalty

5. Solidarity

Principles of action

1 . Respect for law

2 . Caring for the environment

3 . Workers health and safety

4 . Employee rights.


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CHAPTER 4

SWOT ANALYSIS

Strenth

Brand image

Upgraded technical skills

Wider market all OEM (overall equipment manufacturer)

Highly fund flow due to collaborator / investor

High share holder values

Highly skilled employees

Growing company

Good reputation among customer

Cost as comparison to the competitor cost is less

Machinery are bought from JSM (best Japanese company producing

technical machines)

Varity of machines (big and less tonnage machines)

Good distributions network

Testing machine

Weakness

Follow up strategy

Less cost provide to a vendor create a problem to OEM

Follow up as there standardized


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Contribution should be 40 % of the sales value

Demand of the customers to buy more machines

Changing modules is time consuming

Different range of machines create problems in maintenance

OPPORTUNTIES

Cementsector is a high growing area

Launching of new technology

Customer preferences changes

Govt. policies and tax reduction

Removal of trade barriers

Provision of EPCG license

THREATS

Trades barriers

Technology changes

Entering of new competitor in a market

Competitor cost

Competitors better distribution channel


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FINDING, SUGGESTION AND CONCLUSION

Findings

CCI carries a good image in the consumer's mind.

Most of the retailer's are satisfied from the distribution service of CCI.

There is good demand for CCI products throughout all the consumer classes.

Distributors are choosy about their distribution pattern and therefore prefer

to work on cash and efficient retailers ignoring a mass of other small outlets.

Concentration on top outlets.

Ignorance of small provisional stores who have the potential to sell CCI

products.

It is also noticed that the sales persons are reluctant to take small quantity

orders.

Dealers are concerned with the credit to great extent.

Salespersons usually work as per their convenience.

Dealers have some level of dissatisfaction with some front-end sales persons

of CCI products.

Advertisement plays an important role as it helps in stimulating demand for

the product.

There is huge demand in the corporate world.


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The level of awareness among the customers regarding the product, quality,

range of products etc of CCI products is good.

The perceived quality of CCI products among the customers is high whencompared to other products.

As CCI products being the strongest brand in the industry, many customers

prefer only CCI products even if the competitors offer products of equal or

better quality.

Most of the Top outlets have equivalent sales of competitor products too

Good relationship ties between manager and sales people.

Consumers are not totally aware of the product range of CCI products.

Most of the CCI customers are satisfied with the quality and price of the

products.

Suggestion

Implement New approach plans

Work on Efficient Beat plans only by including weekly and fortnightly

plans.

Attractive incentives to sales persons.

Sufficient stock needs to be maintained at the C & F agents to avoid short

fall.

Advice salespersons to manage time so as to work efficiently.

Cover each and every outlet possible.


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If the Credit Terms can be little more liberalized more dealers will be

willing to keep more CCI products.

Create awareness among consumers as to the benefits of the products.

Work efficiently on claims and damages.

Team of sales force should be maintained on a regular basis to negotiate

with lost dealers, so that the company can expand its distribution network.

Feedback should be taken from the dealers on a regular basis to avoid

dissatisfaction and frustration in dealers towards the company.

Tap new markets like institutions, corporate and medical stores like Cadbury

& Nestle.

Increase shelf life by having an efficient supply chain management.

If any production stock goes below the minimum stock level fresh stock

should be supplied without any delay.

Top outlets should be in constant touch so as to keep the stock level always

above minimum level.

Avoid stock shortage.

Regional promotions need to be carried out so as to concentrate on a particular

region rather than a country as a whole.


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Conclusion

CCI - Provide for setting out the practical regime of right to information for

citizens to secure access to information under the control of public authorities, in

order to promote transparency and accountability in the working of every public

authority.

The bidders for 10 plants of Cement Corporation of India (CCI) have started

the exercise of due diligence, which they are likely to complete in the next month.

The government expects to sell CCI by the end of this year.

The government decision on CCI, which has been incurring heavy losses

over the years, is very clear: any units that are not sold will be closed down. It is

in the process of selling its entire equity in favor of strategic buyers.

So far, the response to CCI privatization has been good. Though no party

has expressed interest to take over the entire company, there are as many as 40

bidders in the race to take over various plants of CCI.

The bidders include major players like Gujarat Ambuja and Grasim.

It may be recalled that CCI is being privatized under the auspices of the

administrative ministry, that of heavy industries, and not under the ministry of

disinvestment.

The IFCI-SBI Caps combine are advising the government on CCI sale.


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Meanwhile the ministry of heavy industries and CCI has expedited the

process of voluntary retirement scheme (VRS).

In the last month alone, more than 250 employees availed the VRS, whereasin the entire financial year of 2000-01 only 57 people had availed the VRS.

Official sources said that the government wants to make the CCI plants

attractive in the eyes of prospective buyers.

Production has declined in the last few years, mainly on account of the

closure of plants. This was the reason that CCI entered into marketing alliances

with Grasim and Zuari in 2001.

Headquartered in New Delhi, CCI has units at Adilabad and Tandur (in

Andhra Pradesh), Bokajan (Assam), Akaltara and Mandhar (Chhattisgarh),

Charkhi (Haryana)

CCI is committed in supplying quality cement to its customers. To achieve this,

fully equipped in house laboratories in manufacturing units keep strict control right

through the manufacturing process from mining of limestone to dispatch of

cement. In new plants, automatic quality control is done through online X- ray

analyzers and computer controlled systems. Research and development center has

also been setup to give backup support for operational efficiency and for

technological innovations.


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LEARNING EXPERIENCE:

The main objective of the internship training is to gain knowledge about

functions of an organization, its background, nature of business, its working and

analysis of various product profile of the organization. Staying in the

CEMENT CORPORATION OF INDIA. for almost a month was a platform for

me to know its business conditions in the initial stage and gradual growth.

I had a limited knowledge about 7s frame work, which was learnt in the class

room. But this internship gave me a opportunity to relate those theoretical concepts

to the organizational functioning.

The study helped me to view the process of producing various products

produced in the milk factory. To know the performance of CCI. Produces good

quality of Cement.

Workers are highly satisfied with wage and salary administration and

welfare facilities.

To conclude internship training at CEMENT CORPORATION OF

project report on cci

Documents