CONTENTS Chapter: 1 Page.No 1.1 Introduction of the study 2-3 1.2 Objective of the study 3-4 1.

3 Scope of the study Chapter: 2 2.1 Industry profile 4-15 2.2 Company profile 15-22 2.21 Product profile 22-30 2.22 Competition and Awards 30-33 2.23 Vision, Mission and Values 33-35 Chapter:3 Organization structure 35-37 Chapter:4 Functional Departments 37-58 4.1 Production Department 4.2 Finance Department 4.3 Maintenance scheduling Department 4.4 Human Resource management 4.5 Purchase Department 4.6 Sales Department Chapter:5 SWOT Analysis 68-61 Chapter:6 Finding, Suggestion&Conclusion 61-64 Learning experience 64-70 Bibliography Annexures 1. Balance sheet 2. P&L Account

LIST OF TABLES Table 1 VSF Production comparisons. Table 2 Comparisons of cotton, viscose and polyester. Table 3 Capacity of different division. Table 4 Ownership pattern of Grasim Industries Ltd. Table 5 Shareholding pattern - Grasim Industries Ltd. Table 6 Capital Structure - Grasim Industries Ltd. Table 7 Competitors. Table 8 Products. Table 9 Brands. Table 10 Wor ers strengths Table 11 Format of training plan. Table 12 Format of training calendar Table 13 Yarn performance Table 14 Balance sheet Table 15 P&L Account.

Chapter: 1 1.1 General Introduction The main objective of the study is to provide an insight to the student the vari ous functional aspects of business establishment. Bangalore University as part of the curriculum. Organization is an association of persons to attain common objectives, the perso ns association in the organization has respective authority, responsibilities an d relationship which are used for accomplishing objectives. Organization has str ucture, process, relationship, authority and responsibility performance, group b ehavior and its separate identity. Individuals are defined as having body, soul and behavior. Collection of individuals is organization. It refers to collection of different body, soul and behavior. They act, interact, react and counteract with each other. If they controlled and directed towards achieving of goal, they perform organization behavior. According to Gary Johns, Organizations are social inventions for accompli shing goals through group efforts. This definition, through simple, covers a wide variety of group such as business, schools, hospitals, fraternal groups, religi ous bodies government agencies and the li e.

1.2 Objective of the study . To study the impact of management on the performance of the organization. To study the various department of the organization. To now the process of management in the Grasim Industries Ltd. Kumarapatnam, Aditya Birla Group. To offer valuable suggestion this may be useful. To now the vision, Mission and goal of the organization. To now the organization culture. 1.3 Scope of the study The study is carried out in umarapatnam (Harihar). This study provides an opportunity to have comparative study and and political implementation of management and the organization. The activity is carried out from Grasim Industries ltd.

Chapter: 2 2.1INDUSTRY PROFILE

theoretical

Today Aditya Birla Group is The worlds largest producer of viscose staple fiber. The worlds fourth-largest producer of insulators. The worlds No.1 producer of carbon blac . The worlds fifth-largest producer of acrylic fiber. The worlds seventh-largest cement producer. Among the best energy-efficient fertilizer plants. Largest cement player in India. The top fashion (branded apparel) and lifestyle player in India. The second-largest producer of viscose filament yarn in India. The largest producer in the chlor-al ali sector in India. Among the top three mobile telecom players in India. Among top 10 BPO companies in India. A leading player in life insurance and asset management in India.

CLASSIFICATION OF FIBERS Today, it can be seen that textiles and woven fabrics are used worldwide variety of applications such as the apparel industry, house hold textiles and furnishin gs, medical items, industrial uses and technical products. Fabric weavings consu mes about 28 million tones of fiber every year. It has been predicted that globa l production of woven products will grow by 25% between 2002 and 2010, reaching more than 35 million tones. Manmade fibers are classified into three classes, those made from natural polyme rs those made from synthetic polymers and those made from inorganic materials. History of the principal natural and manmade fibers used in textiles for apparel and home fashion NATURAL FIBERS EST. DATE FIBER BACKGROUND AND PRODUCTION 5,000+ BC FLAX: Generally considered to be the oldest natural textile fi ber. Fine linen was used as burial shrouds for the Egyptian pharaohs Largest producer: Soviet States; other large producers include Poland, Germany, Belgium and France. Largest exporters are Northern Ireland. 3,000+ BC COTTON: Earliest use estimated between 3,000 BC to 5,000 BC. Worn by Egyptians earlier than 2,500 BC. Eli Whitney s invention of the cotton gin in 1793 revolutionized the processing of cotton. The development of the power loom in 1884 brought significant improvements and v ariations to cotton fabrics. Major producers: United States, Soviet States, China and India. Lessor producers include Pa istan, Brazil, Tur ey, Egypt, Mexico Iran and Sudan. 3,000 BC WOOL: Used by people of the Late Stone Age, There are 40 different breeds of sheep, which produce approximately 200 types of wool of varying grades. Major producers include: Australia, New Zealand, Soviet States, China, South Afr ica, and Argentina. 2,600 BC SILK: Believed discovered by a Chinese princess. Sil is made from two continuous filaments cemented together and used to form th e cocoon of the sil worm. Sil culture began about 1725 BC, sponsored by the wife of China s emperor. Secrets of cultivation and fabric manufacturing were closely guarded by the Chin ese for about 3,000 years. There is a story that two mon s smuggled seeds of the mulberry tree and sil worm eggs out of China by hiding them in their wal ing stic s. India learned of sil culture when a Chinese princess married an Indian prince. The major producer and exporter of sil is Japan.

MAN-MADE FIBERS DATE FIBER FIRST COMMERICAL PRODUCTION 1910 RAYON The first man-made fiber. The first commercial production of rayon fiber in the United States was in 1910 by the American Viscose Company. By using two different chemicals and manufacturing techniques, two basic types o f rayon were developed. They were viscose rayon and cup ammonium rayon. Today, there are no producers of rayon in the U.S. 1924 ACETATE: The first commercial production of acetate fiber in the United States was in 1924 by the Celanese Corporation. 1939 NYLON: The first commercial production of nylon in the United States wa s in 1939 by the E. I. du Pont de Nemours & Company, Inc. It is the second most used man-made fiber in this country, behind polyester. 1950 ACRYLIC: The first commercial production of acrylic fiber in the United States was in 1950 by E. I. du Pont de Nemours & Company, Inc. 1953 POLYESTER: The first commercial production of polyester fiber in th e United States was in 1953 by E. I. du Pont de Nemours & Company, Inc. Polyester is the most used man-made fiber in the U.S. 1954 TRIACETATE: The first commercial production of triacetate fiber in t he United States was in 1954 by the Celanese Corporation. Domestic Triacetate production was discontinued in 1985. 1959 SPANDEX: The first commercial production of spandex fiber in the United States was in 1959 by E. I. du Pont de Nemours & Company, Inc. It is an elastomeric man-made fiber (able to stretch at least 100% and snap bac li e natural rubber). Spandex is used in filament form. 1961 POLYOLEFIN/ POLYPROPYLENE: The first commercial production of an olefin fiber manufactured in the U.S. was by Hercules Incorporated. In 1966, polyolefin was the world s first and only Nobel-Prize winning fiber. 1989 MICRO FIBERS/ MICRODENIER: The first commercial production of micro fiber in the U.S. was i n 1989 by E. I. du Pont de Nemours & Company, Inc. Today micro fibers are produc ed in a variety of synthetic fibers (i.e. polyester, nylon, acrylic, etc.) The true definition of a micro fiber is a fiber that has less than one denier pe r filament. Micro Fiber is the thinnest, finest of all man-made fibers. It is fi ner than the most delicate sil . To relate it to something more familiar--A human hair is more than 100 times the size of some micro fibers 1993 LYOCELL: The first commercial production of lyocell in the U.S. w as in 1993 by Courtaulds Fibers, under the Tencel A trade name. Environmentally friendly, lyocell is produced from the wood pulp of trees grown specifically for this purpose. It is specially processed, using a solvent spinni ng technique in which the dissolving agent is recycled, reducing environmental e ffluents. RAYON GRADE FIBER Manufactured fiber is a cellulosic- based from wood pulp. It is basicall y manufactured with eucalyptus as basic raw material. Characteristics of fibers o Soft and comfortable. o Drapes well. o Highly absorbent. o Dyes and prints well. o No static no pilling problems. o Fabric can shrin appreciably if washing dry clean only rayon. The drawing process applied in spinning may be adjusted to produce rayon fibers of extra strength and reduced elongation. Such fibers are designated as

high tenacity rayons, which have about twice the strength and two-thirds of the s tretch of regular rayon. An intermediate grade, nown as medium tenacity rayon, is also made. Its strength and stretch characteristics fall midway between those of high tenacity and regular rayon. Some Major Rayon Fiber Uses Apparel: Accessories, blouses, dresses, jac ets, lingerie, linings, millinery, s lac s, sport shirts, sportswear, suits, ties, wor clothes. Home Furnishings: Bedspreads, blan ets, curtains, draperies, sheets, slipcovers, tablecloths, upholstery. Industrial Uses: Industrial products, medical surgical products, nonwoven produc ts, tire cord. Other Uses: Feminine hygiene products. General Rayon Fiber Care Tips most rayon fabrics should be dry-cleaned, but some types of fabric and garment construction are such that they can be hand or mach ine washed. For washable items, use the following as a guide: Fabrics containing rayon can be bleached; some finishes, however, are sensitive to chlorine bleach. Use mild lu ewarm or cool suds. Gently squeeze suds through fabric and rinse in lu ewarm water. Do not wring or twist the article. Smooth or sha e out article and place on a non-rust hanger to dry. Rayon sweater s should be dried flat. Press the article while damp on the wrong side with the iron at a moderate setti ng. If finishing on the right side is required, a press cloth should be used. Between wearing, rayon articles may be pressed with a cool iron. The World Viscose Fiber - Trends in Demand and Supply is the Sixth annual compen dium in a series covering the trends in global demand and supply of textile fibr e/filament industry. The compilation covers all major fibre producing countries accounting for 85% of global production and consumption. Time series on trends f rom 1990 to 2009 on production, imports, exports and apparent consumption is pre sented country-wise for 13 countries including all major Asian countries, USA an d West Europe. The viscose fiber/filament industry recovered in 2009, with production growing 1 0% as against the decline of 13% it suffered in 2008. Staple fibers production i ncreased 12% Million tons while filament yarns declined 0.4% tons. Asia now a ccounts for 85% of staple fibre capacity and 80% of viscose filament yarn. China alone accounted for more than half of global capacity in 2009. In 2003, there were signs that viscose staple demand had turned around. Subseque ntly, viscose staple demand has grown strongly, particularly in China, which acc ounted for 43% of global viscose staple consumption in 2009 compared to 20% in 1 995. In case of filament China consumed 38% of global VFY as against 14% in 1995 .The other major consumers of viscose staple fibre were India, Tur ey, Indonesia and Taiwan. Similarly, VFY was largely in demand in India, Luxembourg, Japan an d Pa istan. Viscose staple and filament production declined 13% in 2008. During the year 86, 000 tons of capacity was added, comprising mostly of staple fibre. Filament capa city addition was only 30,000 tons during the year. Production of staple fibre d eclined 13% while that of filament was down 9%. VSF production in China was down 13% while that of VFY declined 6%. However, con sumption declined at a much faster pace of 14% in case of VSF and 23% in case of VFY. During the year, China exported 154,000 tons of VSF accounting for almost 30% of global trade. Chinas PSF capacity although remained stable in 2009, accounted for 60% of global capacity while production grew 4%, implying rise in capacity utilization. India , the second largest producer, increased its volumes by 26%, Taiwan managed to l ift output as well by 13% while output declined in South Korea by close to 3%. N orth Americas, the distant second largest PSF producing region, led by USA and t o a smaller extent by Mexico. VSF: Fluctuating Fortunes

Historically, the prices of substitute fibers had often had an impact on the dem and for VSF. The demand for VSF was at its pea in the 1960s, when it commanded a mar et share of 20% in the global fiber mar et. Over the years, this had decli ned gradually. Over the decades, the production cost of VSF had risen steadily, owing to soarin g raw material (especially wood pulp) costs and the highly power intensive natur e of the alling

Service beyond VSF In 2002, Grasim began implementation of its Service beyond VSF strateg y. The company had the following objectives: - To provide complete solutions for its customers fiber related needs, - To ensure maximum customer satisfaction resulting in higher customer retention , - To achieve higher sales by ma ing customers increase the usage of VSF in their yarn, - To fully utilize its production capacity, and - To gain mar et share from cotton and polyester. Product Development Initiatives Grasim recognized that its efforts to enlarge the mar et for its VSF wou ld be futile unless new applications and products were brought out regularly. Pr oduct development in VSF was virtually nonexistent as compared to other fibers w hich regularly came out in newer versions. Therefore, along with its provision o f value added services, Grasim made efforts to introduce newer variants of VSF. The Impact of Service beyond VSF According to company sources, the "Service beyond VSF" strategy was a re mar able success. The strategy was believed to be directly responsible for incre asing its ey customers asset utilization by 18%, and their fiber to yarn recov ery by 1%, and for bringing about a 40% improvement in quality in their products .

Table 1. VSF Production comparisons (In 000s tones) Year Production in India Production in World Production in Grasim 1997-98 188.40 2271 174 1998-99 178.18 2129 164 1999-00 202.04 2111 188 2000-01 236.17 2290 219 2001-02 185.28 1291 176 2002-03 224.61 2266 224 2003-04 221.01 2387 221 2004-05 248.95 2660 245 2005-06 256.84 2879 255 2006-07 271 3125 270.2

2.2 Company profile Location The Grasim industrial Ltd, Harihar, is located on the ban of river Tungabhadra 14 ms away from Davangere at umarapatnam (near Harihar).A small town in Davange re district in Karnata a state. It is located in area of 260 hectare which inclu des plant, staff, colony and wor ers colony and forest area. The co-ordinate hel ped to generate employment for 2500 persons directly and about 5000 persons indi rectly. The company always attempts to update for wor ing condition with the mod ern approach and concentrate on its product quality. This industry has 2 units namely HariharPolyfiber. Grasilene Division. HariharPolyfiber HariharPolyfibers is a unit of Grasim industries Ltd. It was established in 197 2. This plant is set up to produce Rayon grade pulp with indigenous now-how, en gineering and equipment. Rayon grade pulp is the basic raw material used in the manufacturing of viscose staple fiber. The plant started its production in 1972 with initial investment of Rs. 160 cr. Initially producing only pulp in poly fibers division and later in 1977 fiber wi th an investment of Rs.340cr. Harihar manufacturing Rayon grade pulp and viscose staple fiber from eucalyptus and mixed hard woods self reliance, which is one o f the vital areas of Indian economy. Now Grasim is the pioneer in the world to p roduce. Rayon grade pulp from eucalyptus and casuarinas after intensive research wor in may 1990. Hariharpolyfiber introduced oxidative extraction stage in its conventional bleaching sequence to reduce the consumption of chlorine and there by minimize effluent load. Grasim forest research institute is established for producing superior genotype, high tech plant lets of woody preemies through micro propagation technology of tissue culture. Production process Rayon grade pulping is the process of separation of alpha cellulose from the bal ance wood constituents. Debar ed wood is chipped to suitable size. Chipped wood is coo ed by pre hydrolyzed sulphate pulping process in digester. Cellulose pulp so generated is washed on pressure washes the washed pulp is bleached, dried an d baled. Wea blac liquor from washing operation is concentrated in evaporators and burnt in recovery boilers to form smelt and to generate steam and power req uired for the process. The smelt so obtained causticised with lime to recover th e coo ing liquor to be reused in the process. The lime sludge generated during c austerizing is fully recycled in lime iln to produce lime. HariharPolyfibers - A unit of Grasim industries Ltd. Plant installed - 1972. Product - dissolving pulp. Capacity - 70,000 T A P Process pre-hydrolysis Raw materials eucalyptus and mix hard wood Water sources- Tungabhadra River Grasilene Division This plant was set in year 1977 to produce viscose staple fiber with indigenous now how, engineering and equipment. VSF is the closest man made substitute for cotton used in the manufacturing of f abrics for common man. Its production capacity of 4400 TPY, which has since then expanded to 42,000 TPY. VSF is produced in various combinations of denier and staple length and supplied to around 200 textile mills all over India. In addition to fiber production the unit also has plant to recover process by product sodium sulphate and produces 30,000 TPY of sulphuric acid, 6600 TPY of carbon di-sulphate and sulphuric acid are used for captive consumption and also sold in the mar et as per requirement. Production Process

Rayon grade pulp is steeped in caustic soda solution and the excess lye is separ ated in slurry press to obtain a mat of al ali cellulose. After shredding al ali cellulose and related with carbon disulphide to yield cellulose xanthenes. The xanthene is dissolved in dilute caustic soda to give a honey li e liquid called v iscose. Viscose is filtered, de aerated and ripened. It is then extruded as filaments th rough noble metal Spinnerets into a spinning bath containing sulphuric acid, alu m, sodium sulphate and special additives. The filaments are cut into fiber form of required staple length. The fiber mat i s washed, desulphurised, bleached, and soft finished; opened and dried this visc ose staple fiber is then baled. The energy requirements of both HariharPolyfibers and Grasim division are met fr om a fully fledged captive power plant. During the course of time both units wer e integrated and synergized for continues operations, in this integrated operati ons, the units have continuously up graded their processing of plant and equipme nt and have been able to improve product quality and reduce cost through innovat ive technologies and clean aimed not merely to meet the stipulated discharge sta ndards but to move towards intrinsically cleaner processes. Grasim industries Ltd were incorporated in the year 1947 by Birla group. Growth has been the ey wor at Grasim. Since its incorporation Grasim industries Ltd. A member of Aditya Birla group was introduced on Aug 25th 1947nin the state of M adhya Pradesh exactly 10 days after the country get independence. This company has been striving to faster a simple corporate philosophy that is t o constantly achieve excellence in all spheres of management by continues improv ements. It has a highly focused company which has judiciously and successfully m ade large investments in the core sector industries for meeting its basic requir ements. The plant was set up with complete indigenous engineering equipment i.e most of the equipment was manufacturing in their own wor shop production of Rayo n grade pulp indigenously was a big leap towards import substitution which saved enormous foreign exchange for the nation. The company has helped to generate employment, in addition to the general econom ic up liftmen of the community at large; the company has been alive to its socia l responsibilities also. Grasim Industries Ltd has informed that the Board of Di rectors of the Company at its meeting held on October 23, 2008, has appointed Sh ri. A K Dasgupta as an Additional Director of the Company. The dynamic multinational company THE BIRLA GROUP consists of more than 6 lac sha reholders and has asset of dedicated and devoted personnel. Mr. Kumarmangalam Birla, son of late Mr.AdityaVi ram Birla, now heads Grasim ind ustries Grasim is one among the Indias top 10 industrial enterprises having 43 un its spread all over country and about 18 units overseas. Grasim has joint ventur es out of which 4 are in India and 5 abroad. The Grasim is a part of Aditya Birl a Group. The Aditya Birla Group is Indias second largest business industries with, A turnover of rs.220 billion, An asset base of over Rs.1.68 billion. A premise conglomerate of Indias leading companys including Grasim, Hindal company , Indian Rayon and Engulf. Leadership position in ey business with strong comp etitive edge. For over 50 year now Aditya Birla Group has been and continuous to commodities o ffering total customer satisfaction. Its states of the art manufacturing units an d sectarian services span are in India, Indonesia, Thailand, Malaysia, Philippin es, Egypt, Canada, USA and UK group has trading operation in Singapore, Dalasi, UK, USA, South Africa, Tanzania, Mayan mar, Russia and china. Excellence in corner stone of its worldwide presence the thread that binds a mor e than 75,000 strong wor force spanning more than 40 crores. A caring corporate citizen, the Aditya Birla Group in heartily believes in the trusteeship concept management. The word high performance terms BIRLA stands for, B Bench Mar I - Innovative

R Reliable L Learning A Adaptable Nature of business carried Grasim Industries Ltd. The Groups principal activities are to manufacturing and m ar et cement, fiber and pulp, sponge iron, textile, chemical and other. The grou p operates in 5 segments cement, fiber, pulp, textiles, sponge iron and chemical s. The fiber and pulp segment products include viscose staple fiber and Rayon gr ade pulp. The sponge iron segment manufacturing and mar ets sponge iron. The che micals segment includes caustic soda and allied chemical, the textiles segment i ncludes fabrics and yarn.

BOARD OF MANAGEMENT Mr. Kumar Mangalam Birla, chairman. Ownership partners Mrs. Rajshree Birla. Mr. M. L. Apte. Mr. M. C. Bagrodia. Mr. B. V. Bhargava. Mr. Y.P. Gupta. Mr. Cyrillshoroff. Mr. S.G. Subramanian. Mr. Shailendra. Mr. K. Jain.

BUSINESS HEAD Mr. Shailendra Jain Mr. Saurab. Misra Mr. Ravi Kastia Mr. S.K Saboo Mr. Vi ramRao Mr. K KMaheshwari Mr. D.D. Rathi Mr. Asho Malu Mr. D.P. Mandelia

VSF Cement Sponge iron Textile Spinning Textile fabric Chemicals CEO Company secretary Adviser

2.21Product Profile At the core of Indian economy the group enjoys a dominant position in Aluminum a nd copper, viscose staple fiber and viscose filament yarn, carbon blac and insu lators, fertilizers and cement. Insurance and asset management, software and tel ecom Garments.

In India the group is The largest manufacturing of viscose staple fiber (90% mar et share). The largest in Aluminium. The largest in copper capacity. The third largest in cement. The largest domestic manufacturing of insulator. The most cost competitive fertilizer operation. Rayon type fiber of s irt with different texture

Rayon grade pulp is steeped in caustic soda. Excess lye is drained in slurry process to obtain al ali cellulose. Al ali cellulose is reacted with carbon di-sulphate then dissolved in dilute cau stic soda to give viscose which is de aerated, filtered and ripened before extr usion into a spinning bath containing sulphuric acid, sodium sulphate and a spec ing additive. Cellulose is regenerated in the form of fine filaments and sodium sulphate proc essed with the liberation of carbon disulphide. The filaments are cut into required staple length, washed, desulphurised, bleach ed, soft finished and dried and baled to obtain viscose staple fiber. Verification of quality of raw materials. Testing of product at various stages of production. Quality report reactor. Quality verification from staple. The following factors have been determined while planning the product realizatio n. Product requirements (technical specifications) and objectives of the division. Processes required including the inputs (Material and equipments, infrastructure and utilities) documents (procedures, wor instructions, data) and provision of required resources specific to product. Records needed to provide evidence that the realization processes and resulting product meet requirements.

VISCOSE STAPLE FIBER: ANOTHER NAME FOR COMFORT What is viscose? Comfort is a fiber called Birla viscose. A manmade fiber thats 100% natural base d soft and absorbent, it goes into everything from fabrics to shirts, trousers, diapers, sanitary nap ins, tissues, nitwear, towels and bed linen and wherever life demands a smooth caress. Birla viscose has moisture regain which is nearly twice that of cotton. This is why it smoothes and cools s in faster than cotton. Whats more, its drape and sheer vibrancy of colors have only added to its reputa tion as a high Fashion fiber. Birla viscose dissipates static by nature is soft to feel and very comfortable o n the s in. It offers distinct advantages to the value chain at each stage. Birl a viscose also possesses an exhaustive range of over 5000 pre dyed shades under spun shades which carries the oc otex standard 100 certification. Specially Birl a viscose includes anti bacterial, chlorine free, micro denier and hollow flat s uper absorbent fibers. More and more fabrics and garments the world over are wea ving into Birla viscose. And spinners, weavers and garment manufacturers across the globe are realizing Birla viscoses advantages. Grasim is Indias pioneer in viscose staple fiber (VSF), a manmade biodegradable f iber with characteristics a in to cotton. As an extremely versatile and easily b

endable fiber, VSF is widely used in apparel, home textiles, dress materials, nitted wear and non-woven applications Table 2. Comparisons of Cotton, Viscose and polyester Parameters Comparative Rating Cotton Viscose Polyester Comfort: Moisture regain Good Very good Poor Thermal protection Good Very good Poor Air permeability Very good Good Poor Softness Good Very good Poor Static dissipation Good Very good Poor Smoothness Poor Good Very good Aesthetic : Drape Good Very good Poor Luster Poor Very good Very good Crease recovery Poor Poor Very good Uniformity Poor Very good Good Utility performance: Ant pilling Good Very good Poor Wash and wear Good Poor Very good Locations of VSF Units Canada. Nagda. Karachi. Harihar. Thailand. Indonesia. Table 3. Capacity Division Capacity(TPA) Plant wise brea up; Nagda 1,42,350 Karachi 69,350 Rayon grade polyfiber(Harihar) 70,000 Harihar 40,150 Table 4.Ownership pattern of Grasim Industries Ltd. The following table shows the total number equity share of Rs.10 each fully paid . SL No Category of shareholder Total Shareholders Shares as % of Total No. of Shares 1 Life Insurance company of India 85,55,507 9.33 2 Aberdeen asset managers Ltd account, Aberdeen International India opport unities fund Mauritius Ltd 39,10,786 4.27 3 ICICI prudential life insurance company Ltd. 19,44,738 2.12 4 Unit Trust of India 18,49,850 2.02 5 Fran lin Templeton Investment funds 13,19,627 1.44 6 General Insurance Corporation of India 10,43,140 1.14 TOTAL 1,86,23,648 20.31 Table 5.Shareholding pattern - Grasim Industries Ltd. Holder s Name No of Shares % Share Holding Promoters 23430069 25.55% Foreign Institutions 21630794 23.59% General Public 10484523 11.43% Financial Institutions 8871759 9.67% Ban s Mutual Funds 7444015 8.12% Other Companies 6456087 7.04% Foreign OCB 2622613 2.86% Foreign NRI 724806 0.79%

Table 6. Capital Structure - Grasim Industries Ltd. Period Instrument Authorized Capital Issued Capital - P A I D U P From To (Rs. cr) (Rs. cr) Shares ue Capital (Rs. Cr) 2009 2010 Equity Share 95.0 91.7 91683571 2008 2009 Equity Share 95.0 91.7 91674534 2007 2008 Equity Share 95.0 91.7 91674228 2006 2007 Equity Share 95.0 91.7 91673834 2005 2006 Equity Share 95.0 91.7 91673654 2004 2005 Equity Share 95.0 91.7 91672097 2003 2004 Equity Share 95.0 91.7 91671233 2002 2003 Equity Share 95.0 91.7 91669685 2001 2002 Equity Share 95.0 91.7 91669685 2000 2001 Equity Share 95.0 91.7 91669685 1999 2000 Equity Share 95.0 91.7 91669649 1996 1999 Equity Share 95.0 72.3 72313970 1994 1996 Equity Share 75.0 72.3 72313970 1993 1994 Equity Share 75.0 67.4 67435922 1992 1993 Equity Share 75.0 67.4 67435922 1991 1992 Equity Share 65.0 60.5 60502177

(nos) 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0

Face Val 91.7 91.7 91.7 91.7 91.7 91.7 91.7 91.7 91.7 91.7 91.7 72.3 72.3 67.4 67.4 60.5

2.22Competitions and Awards AWARDS: Grasim :: Forbes magazine ran s Grasim at 1,380 in its listing of the Forbes 2000 Best Companies . :: Forbes magazine ran s Grasim among the fabulous 50 companies in Asia. :: Ran ed 2nd for Best Corporate Governance Practices in Asia-Pacific by IR Global Ran ings. Also ran ed best company in corporate governance practices in basic materials industry, globally. :: Ran ed as the Best Investor Relations Company - Building Materials in As ia by Institutional Investors Magazine. :: Global Cement Award for the lowest injury incidence rate presented to Gr asim South, Reddy pal yam. :: National Award for Quality Excellence in Indian Cement Industry presente d to Grasim Cement, Raipur.

Grasim, 2007 :: ellence Viscose

HariharPolyfiber IMC Rama rishna Bajaj National Quality Special Award for performance exc 2007 in the manufacturing category. Staple Fiber

2004 :: The 2004 Stoc holm Industry Water award. 2003 :: Deming Quality Control award. :: IMC Rama rishna Bajaj National Quality award. :: IMC Rama rishna Bajaj National Quality award commendation certificate fo r Grasilene Division. :: CII Exim Ban award commendation for business excellence. :: Greentech Gold award for environmental excellence. 2002 :: Chairman s Gold award for manufacturing excellence. :: CII Exim Ban award commendation for commitment of TQM. :: . Rajiv Gandhi National Quality award best of all :: ISO - 9001 certification. :: ISO - 14001 certification. 2001 :: Rajiv Gandhi National Quality award commendation certificate. :: Corporate Citizen award for excellent contribution in the area of social development. 2000 :: Chairman s Silver award for manufacturing excellence. :: Rajiv Gandhi National Quality award commendation certificate.

Table 7.COMPETITORS Company Location ACC Limited Mumbai, India Mitsubishi Rayon To yo, Japan Tata Group Mumbai, India

2.23 VISION, MISSION, AND VALUES Vision To be a premium global conglomerate with an each business: To achieve prime busi ness status in the global economy by underta ing the quality productions of good s which are essential to bring modernity to the nation. Mission To deliver superior value to our customers, shareholder, employees and society a t large.To execute the productive activity to reach the valuable customers with the help of the shareholders and employees. It also aims at satisfying the needs

VSF, Harihar :: Golden Peacoc Harihar

Environment Management Award presented to the VSF unit at

of society and enabling its progress at large. The means of services are founde d upon the values. Which are significant at all times Values Integrity Commitment Passion Seamlessness Speed

Table 8.

Products CAPACITY(TPA) Rayon grade pulp Viscose staple fiber 72,000

UNIT PRODUCTS HariharPolyfibers Grasim Industries Byproducts;

Carbon di sulphide Sulphuric acid Sodium di sulphate

31,025

20,000 24,500 5800 Table 9. BRAND VSF Brands Birla cellulose Logo Company Grasim

Chapter: 3 organization structure 1.Organization Structure

Head- commercial Jt. President Pulp & fiber Head technical Service President Pulp & fiber Head HRM Vice President Pulp & fiber

Head Head Head Head Head Head Head Head Head Head Head Head

Raw material Head Production pulp Head HRD(pulp &fibre) Material Head production fibre Head P & IR(pulp) finance & A/C Head Engg(pulp &fibre) Head P & IR (fibre) Systems Head Tech cell(pulp) Head Time Office Chemical (Pulp) Head Tech cell(fibre)7 fibre Head Security chemical (fibre) Head WCM(pulp &fibre) power plant Head Qs (pulp &fibre) Sales Head Fire & Safety(pulp) Coal Head Fire & Safety (fibre) Legal Rural Development First Aid Center

2.

Organization Structure Business D

irector Head pulp ope rations V P V P Commercial HRM HRD me Office General Manager Manager Officers Rural Development P & IR Security Ti V P Technical

Chapter: 4. FUNCTIONALDEPARTMENTS 4.1 Production Department Grasim unit Kumarapatnam (HariharPolyfiber) has the following departments. 1. Wood Yard Hariharpolyfiber manufacturing Rayon Grade pulp. The main Raw material for manuf acturing of pulp is wood i.e. eucalyptus and caesarians. But eucalyptus is use m ore than caesarians. These raw materials are stored in the wood yard section of the factory. The wood yard has the area of 36 acres, where wood is stored. The wood is procured from the eucalyptus plantations from the nearby areas of Bangal ore Guribidanoor, Kolar from Karnata a, Tamilnadu, Maharashtra and also Andhra P radesh. The main function of this department is to chec up whether the woo d supplying quality wood or not i.e. some specification has to be met li e 8 inc h diameter demar ed i.e certain length has to be maintained, otherwise departme nts can reject the load. Arrangement of water pipe lines made during fire hazards and insec ticides spray in order to eep wood free from pests to insects. This department is internal supplier of the chipper house it supplies 65 fresh & 35% stored wood

. 2. Raw material Hariharpolyfiber is wood based industries the basic raw materials being pulp woo d species li e eucalyptus and caesarian. The requirement of wood for sustained p roduction is 3,50,000 metric tons PA. The raw materials department is responsibl e for procurement of wood to met through the following sources, Large scale contracts (70%) Government agencies (20%) Procurement center of the company (10%) 1.Chipper house Department: Pulp division produces Rayon Grade pulp using wood as Raw material. Chip house i s first lin with the production line of this division. The main function of the department is to cut the wood into required sizes to meet the production and qu ality requirement. The wood is fed into the chipper machines, the chipper machine is r otated at a high speed with the help of the motor during the rotation the wood i s feeded into the rotating blades through conveyers, which cuts the wood and for ms the chips. Then the chips feed into the drum screener. The function of the dr um screener is to accept only required size of the chips where as the bigger siz e chips are feeded into the re-chipped machine that again cuts the chips into a smaller size then these re-chipped chippers again sent to drum screen which the required size chips. The dusts coming from this process are sent to the boiler, where as the accepted chips are sent to the silo. The bloc diagram of the chipper house is as shown below

Pulp Mill Department: Pulp mill is a plant where the pulp is manufactured. Chemically wood contains 3 major components namely cellulose, non cellulose and inorganic. Non-cellulose an d inorganic compound are removed during pulp process of dissolving pulp. Pulping process can be described as under, The chip from SILO are ta en to pulp mill where it under goes 4 stages, Pre hydrolysis. Washing. Coo ing. Bleaching. With the help of belt conveyer chips are filled in digester of 130 m^3 a nd water is poured and . drainis let out conta ins any dust material or any mud. Pre hydrolysis; The chips normally first enter the pre steaming where they are wetted and prehea ted with steam. Cavities inside fresh wood chips are partly filled with liquid a nd partly with air. The steam treatment causes the air to expand and about 25% o f the air to be expelled from the chips. Washing; The brown stoc from the blowing goes to the washing stages where the us ed coo ing liquors are separated from the cellulose fibers. Normally a pulp mill has 3-5 washing stages in series. Washing stages are also placed after oxygen d elignification and between the bleaching stages as well. Pulp washers use counte r current flow between the stages such that the pulp moves in the opposite direc tion to the flow of washing waters. Several processes are involved: thic ening /

dilution, displacement and diffusion. Coo ing; The wood chips are coo ed in huge pressurized vessels called digesters. Some dig esters operate in batch manner and some in continuous processes. In a continuous digester the materials are fed at a rate which allows the pulping reaction to b e complete by the time the materials exit the reactor, typically delignification requires several hours at 130 to 180 C. Under these conditions lignin and hemice llulose degrade to give fragments that are soluble in the strongly basic liquid. The solid pulp is collected and washed. At this point the pulp is quite brown a nd is nown as brown stoc . Bleaching; Bleaching of wood pulp is the chemical processing carried out on various types o f wood pulp to decrease the color of the pulp, so that it becomes whiter. The ma in use of wood pulp is to ma e paper where whiteness (similar to but not exactly the same as "brightness") is an important characteristic. Bloc diagram of pulp mill as shown below

Pulp drying department;

Pulp produced in the pulp mill is ready for conversion int o various end products. Wet pulp is drained and by using fuel burner the pulp is dried. This dried pulp is very easy to handle eliminating procedures. The main function of the pulp drying is to dry the pulp. T he pulp coming out of the pulp mill consists of 5 % of pulp and remaining is wat er. In pulp drying process, the water in the pulp is removed and the % of pulp i s increased Process; The pulp, which is produced in pulp mill department, consists of 5% pulp and rem aining is water. So it is required to remove the water. The pulp from the pulp m ill is stored in head box. Then it is sent to the screw press to remove then it passed to the boaster 1 which again water is squeezed and the % of pulp is incre ased to 48.5%. fromgrasilene department this % of pulp is enough where as for ba il 70% pulp is required and this pulp is again passed to the booster 2 in which again squeezing ta es place. Then it sent to the drum. To the drum slot air, is supplied which is at temperature of 200 to 230 degree. Due to the 70% and then i t is sent to the bail.

4.2 Finance Department The account department is involved in monitoring ent thus ensuring that the unit is functioning as iation. Important functions constitute Planning and budgeting. C.V.A (cash value added) calculation. Bill passing for the supplier as well as

the functions of other departm per plan though with minor dev the following, the contractors.

Cash as well as ban transactions. MIS related activities such as generation of MIS and review meetings from corre ctive actions. As such these activities form an important part of the functioning within organi zation. Planning and budgeting activities are done once a year and budgets so formed and reviewed quarterly. Quarterly revisions of estimates are e ssential to transform the year data for assessing the performance of the unit in cash terms. Separate cash affiliated to the accounts department does bill passi ng activity. The payment of the bill is done in the accounts department. MIS gen erated from accounts department contains details of the functioning of all the d epartments in the line of the consumption patterns of all the products as well a s the by- products. If there are any deviations from the budget or the quarterly estimates that are serious in nature then these deviations are discussed in the monthly review meeting.

4.3 Maintenance Scheduling Department The maintenance of the equipment is of prime importance to ensure that the machines run with minimum brea down. Since it is an old plant and wor ing in acidic condition. Other than stoppage maintenance or brea down maintenance, preven tive maintenance and conditions based maintenance are followed in the unit. For preventive maintenance and condition based maintenance the u nit has non destructive testing cell. On the basis of various test and on the ba sis of specification that are supplied by the equipment supplier. NDT prepares the schedule of preventive maintenance on the basi s of the schedule wor order is issued to the concerned section maintenance grou p which carries out the maintenance schedule (slippage). Which are discussed at the brea down meeting CBM are done for critical equipments are those that are hav ing no stand by or those will not effect the production and environment.

4.4 Human Resource Department Human Resource and HR department have always been ey factor in the groups succes s. Outstanding personalities li e G.D Birla and AdityaVi ram Birla have set new records of achievement in Indias arena, supported by a team of dedicated and capa ble mangers at level. The group officers you not merely a job, but an opportunity to fulfill y our long terms career plans. Specifically, the Aditya Birla group offers: An unlimited choice of openings. Executing global career opportunities. The resources to bac your ideas to upgrade your s ills. Training schemes. The department procures in the organizations describe the quality manage ment system as per the requirement of ISO 900/in 2000 and EMS as per 1400/in 199 6 adopted in HRD and has reference to quality manuals, common producers, environ ment manual and environment procedures of pulp division and Grasilene division. The HRD personnel are responsible to carry out the functions of HRD department in context to the procedures laid out while interfacing with reactions. Departme nts of both divisions and shall follow the procedures delineated here in.

HRD department extends business friendly service functions to both Pulp and Gras ilene division. Objectives of HRD department broadly revolved around Achievement focused. Development oriented. People sensitive.

Important functions are: Placement of qualified and competent human resources at the right time. Determine and enhance the necessary quality through focused training, educatio n and s ills development. Career Planning Succession planning Apprising and rewarding the performance Effective team building Measurement of employees satisfaction Analyzing the reasons and employees attribution correctingthe same. Development of leadership among managers through delegationand empowerment. HR department has infrastructures li e Buildings, Training, Hall, Computers, a nd Audio Visual. Aids and other associated utilities. Department is headed by deputy general manager (HRD)associated by component staf f. RESPONSIBILITIES AND AUTHORITIES (HRD); Deputy GM: Responsible for implementing company HR policies and programs. Selection, Recru itment and Placement. Management Development programs and employee Training. Performance appraisal. MIS (HR) Assistant manager and senior officer (HRD): Identification of competencies. Preparation of training calendar. Designing and organizing training programmer as per calendar. Summer placements, Vocational training of students of variousinstitutes. Management information System (Training). HRD in HPF performs following functions: Training. Recruitment. Performance appraisal. Organization Development. Organization Behavior. The Grasim unit that produces Rayon Grade Pulp at Kumarapatna m (HPF and Grasilene division) has a strong wor force of 2910 wor ers. Table 10. Wor ers strength Units Staffs Wor ers HPF 343 172 Grasilene 242 1019 Total 585 1191 The unit provides the following facilities to the wor ers. Wor ing Hours: The unit operates in four shifts: A Shift 7.00 am to 3.00 pm. B Shift 3.00 pm to 11.00pm.

C Shift 11.00 am to 7.00 am. General shift-8.30am to 5.30pm.

Uniform: Wor ers are eligible P.A. for the following: Shirt Cloth for 2 shirts. Pant Cloth for 2 pants. Shoes (blac ) 1 pair. Soc s (blue) 2 pair. Stitching charges Rs.300/Female members will be issued saree or cloth for salwar ameez. Industrial Canteen: Canteen will provide brea fast and meals services to wor ers at subsidized rates. Canteen is open at fixed timings on all wor ing days. Canteen coupons will be is sued through time office on 5th of each month and cost of the coupons will be de ducted from the salary. Leave: 1. Conformed wor ers are eligible for following member and type of leaves subject to staff member putting up a minimum 240 days of attendance in a calenda r year. Casual lave-8 days. Privilege leave-30 days. Sic leave-7 days. Special leave -10 days. Half day is permissible in exceptional circumstances. To those not covered under employees state insurancescheme. 2. Intervening holiday/wee ly off will be counted as leave during leave perio d. 3. a) Privilege leave can be accumulated up to 300 days. b) Sic leave can be accumulated up to 30 days. 4. Staff members ma ing the attendance by purchasing the cards compensatory off lieu of overtime duty. 5. National and festival holidays-10 days in a calendar year and as notified. Disbursement of Salary: Normally, Salary is distributed on or before 5th day of each mo nth through ban . Medical facilities: Medical Center : Giving many facilities to the employees Occupation health-cum-first aid center Medical reimbursement: This gives money facilities to the employees for major op erations. Leave Travel Assistance: Confirmed staff members are eligible for leave travel assistance every year at 1 .5 times the average basic salary for the calendar year. To claim income tax exemption on I.T.A. claim needed to be supp orted by actual bills and such benefit is available two times in the bloc of fo ur years period. Unclaimed and eligible LTA amount will be paid in the last quar ter of every year after deducting income tax at source, if any. Staff members have an option to carry over this amount up to 2 years, on application. Conveyance Allowance: Library cum reading room. TV room. Indoor games li e Billiards coc , table tennis, carom.

Facilities for outdoor games li e Cric et, Bas et Ball, and Tennisetc. Matches/ Tournaments are conducted on Independence Day/Republic Day. Community festivals li e Ganesh Chaturthi, Holi, and Diwali arecelebrated. Monthly fees are to be paid to the club separate sports li eBilliards, Shuttleco c etc. INSURANCE SCHEME: Company ta es group insurance policy in live of EDLI scheme forproviding better benefits to the nominees of staff in case of death of staff member during the s ervice period. All members who are members of PF are covered under personalaccident policy, wh ich providesinsurance against accident. Traveling Allowance for Business visits: Staff member on business visits are eligible for traveling, dail y and conveyance allowance and for other expenses as per applicable rules. Retirement: Staff members after prescribed year of service are covered under Superannuation scheme of CIC. The employees contribution towards the scheme is 1 0% of salary to those drawing basic salary more than 7500/ - per month it is 15% of basic salary. Out of the above contribution of 8.33% on Rs.6500/- is contribu tion to employee pension account. Gratuity: Gratuity will be paid as per payment of gratuity Act, 1972. Comp any may at its discretion pay gratuity at one months salary for every completed y ear of services to the staff retires/dies after15 or more years of continue serv ice. Marriage Gift: Company gives cash gift to staff member or to his/her children w hen they get married. Merit Scholarship to employees children: Children of staff studying in professional course li e Engineeri ng, Medical, Dental, Management studies, Charted Accountant are eligiblefor meri t scholarship lin ed and as per schemes. SKILL: Waterman considers s ills as one of most crucial attributes of c apacities of an organization the term s ills include those characters, which mos t of people uses to describe a company. A Grasim industry is a Viscose Staple Fi ber and pulp manufacturing company it is nown for its manufacturing s ills. Gra sim industry is a dynamic multinational company the Aditya Birla Group, consists of more than 55 professionally managed large un its. It enjoys the confidence of more than 6 la h shareholders and has an asset of dedicated and devoted personn el. The company secured quality standard systems. It is a leading supplier of te chnology and machinery to the production of man-made fiber. It has received pres tigious award in the area of productivity and total preventive maintenance. TRAINING METHODS TO GRASIM HARIHAR EMPLOYEES: There are two broad types of Training: On-The-Job and Off-The- Job techniques. Individual circumstances and who,what an d why of the training Programme determine which method to use ON-THE-JOB TRAINING: It is learning by doing while wor ing. Training is imparted to employees while they perform their regular jobs. In these methods they do not l ose time while they are learning. On-the-job training includes coaching, orienta tion, job instruction training, apprenticeship, internships and assistantships, job rotation and coaching. OFF-THE-JOB TRAINING: This type of training is imparted Off-The-Job outside the wor premises. These include classroom activities li e lectures, special study, film television conferences or discussions, case studies, role-playing. Simulation p rogrammed instruction and laboratory training. TRAINING METHODS FALLOW UP AT GRASIM:

LECTURECOURSES: Formal lecture courses Offer and Opportunity for employees to acquire nowledge and develop their conceptual and analytical abilities. To be e ffective the lecture must motivate and create interest among the trainees and ad vantage of lecture method isthat it is direct and can be used for a large group of trainees. Thus, cost and time involved are reducing. CASE STUDY: Case analysis ta es the actual experience of organizations, th ese cases describe as accurately as possible, real problems have faced. Trainees study these cases to determine problem, analyze causes, develop alternative sol utions, select what they believe to be the best solution, and implement it. Case Study can provide stimulating discussions among participants, as well as excell ent opportunities for individuals to defend their analytical and judgmental abil ities. GROUP DISCUSSION: This method involves a group of people who pose ides, examine and share facts, ideas and data, test assumption, and draw conclusions, all of which contribute to the improvement of job performance. The success of this meth od depends on the leadership qualities of person who leads the group. ROLE PLAYING: It is defined as a method of interaction that involves realis tic behavior in imaginary situations. This method of training involves action, d oing and practice. The participants play the role of certain characters. Such as the production manager, mechanical engineer, foremen, wor ers and the li e. Thi s method is mostly used for developing interpersonal interactions and relations. DEPARTMENTAL PROCEDURE FOR TRAINING AND DEVELOPMENT: Human Resource Department has its own departmental procedure w hich guides and influence for carrying out the HRD function in an effective mann er. COLLECTION OF DATA: The personal data of employees consisting of department, desig nation, date of joining, date of birth, educational qualification, experience an d training needs is collected. IDENTIFICATION OF NEEDS: After collecting a personal data employee next step is to ide ntify training need of individuals through training need identification format, IDP, performance appraisal and survey reports. The training needs are identified once in a year and this is the responsibility of DGM (HRD). List of training programmers inclusive of the codes with tai nting identification format are sent to the departmental heads to nominate their colleagues either to external or in -house training. PLANNING AND DEISNING TRAINING: After identifying a training need training curriculum is pla nned and designed considering the method/techniques of imparting training. PREPARATION OF TRAINING PLAN AND TRAINING MODULE Training plan and training module are prepared to provide co mplete details of training programmes. The following are the details in the training plan and module : Training program title. Objectives of training. Syllabus of the training. Contents/Curriculum of the programmed. Faculty. Duration of the program. Considering training module the training calendar is prepared according to needs for each program, training hours, no of personnel to be trained, availability o f faculty, availability of infrastructure and training method. Preparation of th

e training notes, writing -ups and other reference material required for the in -house program are done. In case of external program arrangements are made to provide the training as per the recommendations of functional heads/HOD. Table 11.FORMAT OF TRAINING PLAN: Sl. No. Name of program Duration of training No. of persons Total hours of t raining PREPARATION OF TRAINING CALENDAR It includes names of programmed, the month in which it is t o be conducted and dates of the training programmed. The information about the n umber of participating in each batch of each programmed is also stated. Table 12. FORMAT OF TRAINING CALENDER Sl. No Training program Months in which training is underta en No. Of p rogram Duration in days No. Of participants Mans days

SELECTION OF TRAINEES Faculty/Trainer plays a very important role in the success o f a training program. Trainer who is going to influence and motivate the trainee s so, selection of a right type of a trainer is a very important responsibility. It is the responsibility of the AGM (HRD). For proper selection the following criteria are considered. SELECTION OF INTERNAL FACULTY For in-house training, trainer is selected, based on their e xpertise and experience. SELECTION OF EXTERNAL FACULTY Recognition, Reputation, Education and experience of thetrainer. Recognized institutions. Selecting the external faculty from faculties directory for specific training pro grammes. Involving specialization /expertise. SELECTION OF PARTICIPANTS According to the personal data collected about employee and the training needs identified the participants are selected for training program mes. FOLLOWING CRITERIA ARE CONSIDERED Identified needs Trainees available for the programme. Discussion with departmental heads to now the traineeswho are in need PROVIDING TRAINING:

TRAINING PROGRAMME AT GRASIM The programmes held by the HRD department are mainly classif ied as the programmes for the employee and staff. The programmes are called as Employee Development Programme (EDP) and Management Development Programme (MDP).

TYPES OF TRAINING PROGRAM In-House Training:

TRAINING INFRASTRUCTURE To provide the training it is ensured that training aids li e OHP, Transparencies, and disperse materials relevant to the training program a re prepared. For the efficiency and effectiveness of the training program, Train ing hardwares are chec ed that they are proper wor ing condition.

This programme mainly deals with the development of the empl oyees. For In-House Program mainly internal facilities are developed nearly 3 -4 programmes are held per month. The batch strength is around 30 -40 per month. External Training: According to the requirements of the organization it sends pe ople to different institutions for training and development in behavioral as wel l as technical aspect. These programmes are called Knowledge Integration Program me (KIP). Technical Training Programme: This is held for technical people and when the trainee needs are identified, external agencies are contracted and invited for conducting lec ture. The agencies that have been conducting lecture are L&T, Chennai & Siemens. Vendors Development: These programmes are mainly held for higher-level staff to e nhance the nowledge in the fields of logics etc. Staff Development: Various programs li e drama, Stage Play, Lectures are held mainly to develop the employee in his behavioral aspects. CLASSIFICATION OF TRAINING PROGRAMS: Training Program for Staff: a) Behavioral Program: Transactional Analysis. Communication S ills and Presentation S ills. Team Building and Group Dynamics. Project Management. Interpersonal S ills. Creativity and Innovation. b). Technical Program: Six Sigma. Total Productivity Management. Energy Conservation. Hydraulics. Pneumatics. Bearings and Tribology. Pumps. b) System: World Class Office Management. Computers and Networ ing. Quality Management System. EMS. OHMS. Training Programs for Wor men: EDP. EDP for Spouses

4.5 PURCHASE DEPARTMENT The Purchasing department pays very important rates in organization become purch asing has its effect on every vital factor concerning the manufacture quality co st efficiency and prompt delivery of good to customer. Its function is to procur e materials suppliers, services, machines on loots at the most favorable terms c onsists with marinating the desired standard of quality. Purchasing is the impor tant function of materials a substantial part of the coat finance is committed w hich affects cash flow position of the company. Thus if the size of a business concern permits there should b

e a separate purchasing department and the responsibility for purchasing all typ es of materials should be entrusted to this department. Purchasing department may be centralized or decentralized, ce ntralized functions are routed through one department purchasing should be made by the purchase department to avoid duplication overlapping and the non uniform procurements the other entire department to ma e timely at suitable purchase. To perform the function effectively the purchasing department follows the following procedure. o Receiving purchase requisitions. o Exploring the sources of supply and choosing supplier.

4.6 SALES DEPARTMENT The sales department in the pulp department is mainly concerned with the dispatc h of the final product pulp to Nagda and Grasilene division on an average the pu lp production in the unit is about 200 TPD of Grasilene divisions. There is no o pen mar et sale of pulp. Transfer to Nagda is done by road. The pulp and fiber division at Nagda decid e the rate of the transfer. The transportation costs are also borne PRD. Nagda o nly unloading charges are borne by the unit. Table 13. Yarn Performance: Count 305 245 165 VSF 1.2*38 1.5*44 1.5*44 Plant B.C.Kharach B.C.Kharach Rate of production card(MPM) 184 Special speed at R/F 19700 17800 GMS/SPL/8hrs 256 334 505

B.C.Kharach 170 150 15300

Chapter: 5 SWOT ANALYSES Strength and wea ness are essentially internal to the organisation and relate to the matter concerning resources, programs and organisation in ey areas such as : sales, mar eting capacity and manufacturing cost etc. Opportunities and threats are external to the organization and can exist or deve lop in the following areas: size and segmentation, growth pattern and maturity, international dimensions, relative attractive segments and new technologies. Strengths: The HPF unit has developed large scale farm forestry on private lands and meets about 90% ofraw material needs from its own farm forestry program. HPF has the best specific pulping chemical consumption.The unit has the highest chemical recovery efficiency of 97.8% considered as global best practice. Huge land for expansion of business. Well transportation facilities that is NH 4 and railways. Providing the necessary welfare for the employees thus putting the employees in the comfort zone and increasing the retention level of the employees. Appropriate infrastructure for training.

Wea ness: Difficult to change to an alternate line of production with the existing machine ry. Non- availability of adequate quantity of water from the Tungabhadra River durin g the summer season, then under the constrained circumstance. Opportunities: Ground wor for implementation of WCM concepts, an ISO 9001:2000 is already been made to put the above theory into practice. Aditya Birla Group has its production unit outside India also that they can incr ease the production of pulp competition globally. Easy availability of man power for vacant position. Encouragement for young professionals and achievers and identification of fast t rac employees. Reduction in man power by normal retirement by approximately in the next 2 years . Improvement in the quality of production, operation and services through system approach. Comfort zone and increasing the retention level of employees. Strengthening of uniform management to achieve organizational objectives and ver y well established mar et all over the world. Very strong devoted employee force.

Threats: Increase in cost due to increase in man power cost. Healthy competitions within the group in terms of quality/quantity/cost. Decline economy of manufacturing sectors in general. Government policies towards manufacturing industries, imposing environment pollu tion restriction.

Chapter: 6 Findings Employees in production department wor s in shifts. By products are further utilized for production Organization supplies the materials in time by this customers are satisfied. Wor flow model helps in organizing wor by determining authority and responsibi lity forstaff. There is good relationship between the employees and employer. Importance of time management, which helps the entire organization in meeting th e delivery dates of customers. Quality control and assurance guide entire organization in providing quality pro ducts to customer, their by improving loyalty from customer side. Company is ma ing sufficient profit and growing year by year.

Suggestion Grasim has no doubt strived to set very high goals for achievement. There are ce rtain areas where in the company should concentrate more so as to achieve its go als. Directing mar eting may help the company to improve their level of customer sati sfaction, better mar et share s illed personnel for the company can be utilized for this purpose. Company should increase its advertisement and mar eting strategy in order to inc rease the sale of the firm. Company should facilitate training activity to the employees for the better perf ormance in the organization. The company should purchase raw materials at reasonable price. Organization must ta e corrective step for waste management.

Conclusion To conclude the companys financial position is good. The employees of Grasim are smart and dedicated. It is maintaining good reputation in the field of textile. The company considers that employees are its greatest assets of the organizatio n, and its aim is to develop each and every employee to the best of their potent ial nowledge this helped organization to maintain the good relationship between the employer and employee. Finally this organization with its mission, vision, aims at the highest pea and serves the world with the quality product at the lesser cost.

Learning experience One month project in Grasim industries was very useful experience. It helped me to get familiarized about the day to day wor ing of the organization. During my in-plant training period I learned how theoretical aspects are applied in the c orporate world. It gave me a practical exposure to the corporate scenario. Importance of different management function such as planning, organizing, staffi ng, directing and controlling was nown which guide the organization in facing s tiff competition from competitors. I have visited different departments in the o rganization and studied their execution. This helped me to gain a lot of nowled ge about the industries li e unit operation unit processes and how it wor s. It given enough nowledge about the problem faced by industries and how to tac le t he problem in such situation. There are experienced s illed and specialists for production, Mar eting, Finance , Maintainedand HRD and they are well connected with each other. There is no com munication gap between different departments. I observed that the technology used in the production is good enou gh to avoid the production cost. The company has ta en various measures the safe ty and welfare is ta en case off. Over past few wee s. I have been engaged in this wor and I must co nfess that this experience has been an eye opener. I gained an insight into the wor ing of the office and plant and all the activities carried in the organizati on.

Bibliography Boo s; Human Resource Management by S. P. Gupta,Kalyani Publication Edition 2008. Human Resource Management by C.B.Memoria. Human Resource Management byK.Ashwathappa, Edition2007

Websites; http://www.adityabirla.com http://www.grasim.com http://www.fibresource.com http://www.hariharpolyfibers.com http://www.birlacellulose.com Journals; Company magazines. Grasim san alp. Aditya the management journal. Aditya irna. ANNEXURES Table 14. Balance sheet Particulars Mar 11 12 Months Liabilities Share Capital 101.67 Reserves & Surplus 8,032.07 Net Worth 8,133.74 Secured Loans 556.21 Unsecured Loans 257.54 TOTAL LIABILITIES 8,947.49 Gross Bloc 2,983.88 (-) Acc. Depreciation 1,442.07 Net Bloc 1,541.81 Capital Wor in Progress. 100.96 Investments. 6,910.25 Inventories 421.65 Sundry Debtors 478.70 Cash And Ban 14.65 Loans And Advances 538.58 Total Current Assets 1,453.58 Current Liabilities 600.69 Provisions 458.42 Total Current Liabilities 1,059.11 NET CURRENT ASSETS 394.47 Misc. Expenses 0.00 TOTAL ASSETS (A+B+C+D+E) 8,947.49

Annual report 2010-11

Table 15. Profit and loss account Mar 11 12 Months Sales Turnover 4,891.40 Excise Duty 376.81 NET SALES 4,514.59 Other Income 0.00 TOTAL INCOME 4,941.26 Manufacturing Expenses 551.85 Material Consumed 2,060.09 Personal Expenses 300.01 Selling Expenses 0.00 Administrative Expenses 212.23 Expenses Capitalized 0.00 Provisions Made 0.00 TOTAL EXPENDITURE 3,124.18 Operating Profit 1,390.41 EBITDA 1,817.08 Depreciation 176.29 Other Write-offs 0.00 EBIT 1,640.79 Interest 45.59 EBT 1,595.20 Taxes 438.86 Profit and Loss for the Year 1,156.34 Non Recurring Items 0.00 Other Non Cash Adjustments 25.37 Other Adjustments 0.00 REPORTED PAT 1,181.71 Preference Dividend 0.00 Equity Dividend 183.40 Equity Dividend (%) 200.00 Shares in Issue (La hs) 916.99 EPS - Annualized (Rs) 128.87