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MPIIPL ORGANIZATION STUDY

1.1 MEANING OF THE ORGANIZATION:

An organization is an entity comprising multiple people, such as an institution or an


association that has a particular purpose. The word is derived from the Greek word organon,
which means "organ". In other words, an organization is a Social entity, goal-directed which
is designed as deliberately structured and coordinated activity systems and is linked to the
external environment. It is not just a building or a set of policies and procedures. Always
strives for greater horizontal coordination of work activities. Basically, an organization in its
simplest form is a person or group of people intentionally organized to accomplish an overall,
common goal or set of goals. Business organization can range from one person to tens of
thousands in size.

All organizations have a management structure that determine the relationships between
functions and positions, and sub-divide and delegates roles, responsibilities, and authority to
carry out definite tasks. Organizations are open systems i.e., they affect and get affected by
the environment beyond their boundaries.

1.2 ORGANIZATIONAL STUDY:

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An organizational study is one of the most important aspects of MBA program where
practical learning is undertaken. Organizational study is a very important component in and
forms of management education. An organizational study is important for an MBA graduate
as it helps them to connect the theory to actual practice.

The study was conducted at MANCHUKONDA PRAKASHAM INDUSTRIES INDIA


PRIVATE LIMITED, a poles manufacturing industry.

During this study I was able to understand the functional areas of the organization and learned
the theory and practices, which are being followed by the organization.

1.3 NATURE AND SCOPE OF THE STUDY:

MANCHUKONDA PRAKASHAM INDUSTRIES INDIA PVT LTD. Is a pole


manufacturing industry head office at Hyderabad. This company particularly manufactures
pre-stressed cement concrete poles.

Their head office is at Hyderabad and branches at 4 more places namely Tirupathi (AP),
Sholapur (MH), Chopan (UP), and Bhopal (MP). They are major market share holder and are
the market leader in the PSCC poles manufacturing market. This study has helped in learning
and studying about the company on how it has become the market leader and the strategies
used by the company.

1.4 OBJECTIVES OF THE STUDY:

 To understand the structure and functioning of the organization.


 To understand the core business level functions in the organization.
 To study in detail the organizational structure and design.
 To know the delegation of authority in the structure.

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 To study and understand the technology and materials used in the production department.

1.5 METHODOLOGY:

1.5.1 PRIMARY DATA


Primary data is the research carried on in the organization through first-hand investigation,
information given by department managers and personal observations.

1.5.2 SECONDARY DATA


Secondary data is the information available in the company website, company journals,
magazine and various other reference books.

1.6 LIMITATIONS OF THE STUDY:

 There is a little difficulty in obtaining information from the executives due to their busy
schedule.
 An in-depth study could not be carried out due to lack of sufficient time.
 The reliability of the data obtained in the study depends on the company’s reports and the
information given by the executives.
 The company has limitations to disclose their financial details, so a detailed analysis of
the same was not possible.

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INDUSTRY PROFILE

1.7 POWER INDUSTRY:

Power is one of the most critical components of infrastructure crucial for the economic
growth and welfare of nations. The existence and development of adequate infrastructure is
essential for sustained growth of the Indian economy.

India’s power sector is one of the most diversified in the world. Sources of power generation
range from conventional sources such as coal, lignite, natural gas, oil, hydro and nuclear
power to viable non-conventional sources such as wind, solar, and agricultural and domestic
waste.

Electricity demand in the country has increased rapidly and is expected to rise further in the
years to come. In order to meet the increasing demand for electricity in the country, massive
addition to the installed generating capacity is required.

The power sector in India is basically divided into 3 stages-

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 Power generation
 Power transmission
 Power distribution

1.7.1 POWER GENERATION:

Electricity generation is the process of generating electric power from sources of primary
energy. For electric utilities in the electric power industry, it is the first stage in the delivery of
electricity to end users, the other stages being transmission, distribution, energy storage and
recovery, using pumped-storage method. Production is carried out in power stations (also
called "power plants").

Almost all commercial electrical power on Earth is generated with a turbine, driven by wind,
water, steam or burning gas. The turbine drives a generator, thus transforming its mechanical
energy into electrical energy by electromagnetic induction.

1.7.2 POWER TRANSMISSION:

Power transmission is the movement of energy from its place of generation to a location
where it is applied to perform useful work. Since the development of technology, transmission
and storage systems have been of immense interest to technologists and technology users.
Power transmission is usually performed with overhead lines as this is the most economical

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way to do so. Underground transmission by high-voltage cables is chosen in crowded urban


areas

1.7.3 POWER DISTRIBUTION:

Electric power distribution is the final stage in the delivery of electric power; it carries
electricity from the transmission system to individual consumers. Distribution substations
connect to the transmission system and lower the transmission voltage to medium voltage
ranging between 2 kV and 35 kV with the use of transformers. Primary distribution lines
carry this medium voltage power to distribution transformers located near the customer's
premises. Distribution transformers again lower the voltage to the utilization voltage used by
lighting, industrial equipment or household appliances.

Urban distribution is mainly underground, sometimes in common utility ducts. Rural


distribution is mostly above ground with utility poles, and suburban distribution is a mix.

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For the distribution of the electricity certain infrastructures are used. Such as-

 SUBSTATIONS
 WIRES
 POLES

 SUBSTATIONS:

A substation is a part of an electrical generation, transmission, and distribution system.


Substations transform voltage from high to low, or the reverse, or perform any of several
other important functions. Between the generating station and consumer, electric power may
flow through several substations at different voltage levels. A substation may include
transformers to change voltage levels between high transmission voltages and lower
distribution voltages, or at the interconnection of two different transmission voltages.

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 WIRES:

A wire is a single, usually cylindrical, flexible strand or rod of metal. Wires are used to bear
mechanical loads or electricity and telecommunications signals. Wire is commonly formed by
drawing the metal through a hole in a die or draw plate. Wire comes in solid core, stranded, or
braided forms. Although usually circular in cross-section, wire can be made in square,
hexagonal, flattened rectangular or other cross-sections, either for decorative purposes, or for
technical purposes such as high-efficiency voice coils in loudspeakers.

 POLES:

A utility pole is a column or post used to support overhead power lines and various other
public utilities, such as electrical cable, fiber optic cable, and related equipment such as
transformers and street lights. It can be referred to as a transmission pole, telephone pole,
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telecommunication pole, power pole, hydro pole, telegraph pole, or telegraph post,
depending on its application. Electrical wires and cables are routed overhead on utility poles
as an inexpensive way to keep them insulated from the ground and out of the way of people
and vehicles. Utility poles can be made of wood, metal, concrete, or composites. They are
used for two different types of power lines; sub transmission lines which carry higher voltage
power between substations, and distribution lines which distribute lower voltage power to
customers.

The other name for the industry under which the company I studied comes under is the
CEMENT CONCERTE POLES INDUSTRY. Under this industry there are companies
which are involved into producing of 3 main kinds of poles. Namely:
 PSCC Poles (Pre-stressed cement concrete poles)
 RCC Poles (Re-inforced cement concrete poles)
 Spun Poles

MANCHUKONDA PRAKASHAM INDUSTRIES INDIA PRIVATE LIMITED is a


company which produces PSCC Poles and will be entering into the manufacturing of Spun
poles in future.

Cement concrete poles Industry:


 Is an unorganized industry with more than 500 manufacturers.
 It is a fragmented industry.
 The size of the cement concrete poles industry is 12,000 crore.
 There are no barriers for entry and exit into the industry.
 This industry is highly competitive.
 There is no one-to-one competition, like Pepsi and Coca Cola.
 The competition is many-to-many.

1.8 GLOBAL SCENARIO:

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The first poles were used in 1816 by the telegraph inventor Sir Francis Ronalds who set up
eight miles of overhead cable in Hammersmith. Utility poles were first used in the mid-19th
century in America with telegraph systems, starting with Samuel Morse who attempted to
bury a line between Baltimore and Washington, D.C., but moved it above ground when this
system proved faulty. Today, underground distribution lines are increasingly used as an
alternative to utility poles in residential neighborhoods, due to poles' perceived ugliness.
The standard utility pole in the United States is about 40 ft (12 m) long and is buried about
6 ft (2 m) in the ground. However, poles can reach heights of 120 ft (37 m) or more to satisfy
clearance requirements. They are typically spaced about 125 ft (38 m) apart in urban areas, or
about 300 ft (91 m) in rural areas, but distances vary widely based on terrain.
Most utility poles are made of wood, pressure-treated with some type of preservative for
protection against rot, fungi and insects. Southern yellow pine is the most widely used species
in the United States; however, many species of long straight trees are used to make utility
poles.
In the United States, standards for wood preservative materials and wood preservation
processes, along with test criteria, are set by ANSI, ASTM, and American Wood Protection
Association (AWPA) specifications. Despite the preservatives, wood poles decay and have a
life of approximately 25 to 50 years depending on climate and soil conditions, therefore
requiring regular inspection and remedial preservative treatments. Woodpecker damage to
wood poles is the most significant cause of pole deterioration in the U.S.
Other common utility pole materials are steel and concrete, with composites (such as
fibreglass) also becoming more prevalent. One particular patented utility pole variant used in
Australia is the Stobie pole, made up of two vertical steel posts with a slab of concrete
between them.
As wood pole material provides great flexibility during placement of hardware and cable
apparatus. Holes are easily drilled to fit the exact hardware needs and requirements. In
addition, fasters such as lags and screws are easily applied to wood structures to support
outside plant apparatus.

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Countries like Thailand, Africa use flat poles. They are of two types depending upon the end
use of the pole-Low tensile and High Tensile Line. The latter is primarily used for
transmission of electricity. These poles are essentially made of concrete which are inevitably
less costly and more economically maintainable than the conventional steel poles. The steel
poles are costly and very difficult to maintain. The life span of these poles is 20 to 25 years.
But the only positive point about steel poles is that they are light in weight. Whereas, concrete
poles are less in cost compared to steel poles, but are heavier in weight. The life span of the
concrete poles is 50-60 years.

Mostly spun poles and steel poles are used globally. Spun Concrete Transmission Pole is the
result of technological expertise using centrifugal casting and spinning to produce a dense,
durable concrete, slender & elegant Spun Poles.

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1.9 INDIAN SCENARIO:

There is a growing demand for investment in power distribution sector as the need for adding
power generation capacity is very high during 12th (2012-17) and 13th (2017-22) 5 year plans
in India. The additional power generation capacity that is required to be added in these two 5
year plans is 189 GW, which is almost 75% of present capacity of 250 GW. Hence, we can
expect a huge demand for PSCC poles given the expansion of power generation capacity.

 Demand for electricity is expected to increase at a CAGR of 9 per cent to 1,915 TWh
over FY07–22
 Current production levels are not enough to meet demand; annual demand outstrips
supply by about 7.5 per cent
 All India per capita consumption of electricity was 917.2 KWh (Provisional) during
FY13

Figure 1.1: Electricity Forecast

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 The government is targeting capacity addition of around 89 GW under the 12th (2012–
17) and around 100 GW under the 13th (2017–22) Five-Year Plan
 The expected investments in the power sector during the 12th Plan (2012–17) is
USD223.9 billion
 There is a tangible shift in policy focus on the sources of power. The government is keen
on promotion of hydro, renewable and gas-based projects, as well as adoption of clean coal
technology.

Figure 1.2: Generation Capacity

Demand for poles is directly depended on power consumption of the country. During the
fiscal year 2017-18, the gross electricity generated by utilities in India was 1,303.49 TWh and
the total electricity generation (utilities and non utilities) in the country was 1,486.5 TWh. The
gross electricity consumption was 1,149 kWh per capita in the year 2017-18. India is the
world's third largest producer and third largest consumer of electricity. Electric energy
consumption in agriculture was recorded highest (17.89%) in 2015-16 among all countries.

India has surplus power generation capacity but lacks adequate infrastructure for supplying
electricity to all needy people. In order to address the lack of adequate electricity supply to all
the people in the country by March 2019, the GoI launched a scheme called "Power for all".
This scheme will ensure continuous and uninterrupted electricity supply to all households,

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industries and commercial establishments by creating and improving necessary infrastructure.


It is a joint collaboration of the GoI with states to share funding and create overall economic
growth.

Rural and Urban electrification:

Main meaning of this electrification is to provide round the clock power to the rural areas and
for the betterment in the present distribution of power in the urban areas.

As on 28 April 2018, 12 days ahead of the set target, all Indian villages were electrified.
India's Ministry of Power launched Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) as
one of its flagship programme in July 2015 with the objective of providing round the clock
power to the rural areas. It focuses on reforms in rural power sector by separation of feeder
lines (rural households & agricultural) and strengthening of transmission and distribution
infrastructure. The earlier scheme for rural electrification viz. Rajiv Gandhi Grameen
Vidyutikaran Yojana (RGGVY) has been subsumed in the new scheme as its rural
electrification component.

India has achieved 100% electrification of all rural and urban households. As of 4 January
2019, 211.88 million rural households are provided with electricity, which is nearly 100% of
the 212.65 million total rural households. Up to 4 January 2019, 42.937 million urban
households are provided with electricity, which is almost 100% of the 42.941 million total
urban households.

The distribution is done through the poles. Commonly carried out in two types of electric
power lines:

 Sub transmission line- These lines carry high voltage power from regional substations to
the local substations

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 Distribution line-These lines carry power from local substations to the customers.

MANCHUKONDA PRAKASHAM INDUSTRIES INDIA PVT LTD. Is a company that


helps in supplying the power through the distribution line. They supply PSCC poles to the
electricity sector for distribution of the power across the country.

MARKET SHARE ANALYSIS:

MANCHUKONDA PRAKASHAM INDUSTRIES PRIVATE LIMITED hold 300 crores


as their market share which is equal to 2.5% of the market share, being the market leader. And
the rest hold 0.5%-1%. The overall industry demand for PSCC poles per annum is roughly
Rs. 3000 crores with average growth rate of 10-15% per year. Manchukonda Prakasham
Industries is the industry leader with 7-8% market share. The industry is highly fragmented
and highly unorganized. The closest few competitors have production capacities much lower
than that of Manchukonda, with market shares ranging anywhere from 0.5 to 1% of the total
industry demand size.

1.10 MAJOR PLAYERS:


The industry comprises of major players and small players. The competition is between 20%
of the major players and the rest are small players. Few of them are:

RAJVAIBHAV

Established in the year 1996 at Bengaluru, Karnataka, Rajvaibhav Enterprises Pvt. Ltd.” are
involved as the manufacturer and trader of a wide assortment of Manhole Covers, Electric
Pole, Drain Cover and many more. These products are known for their unmatched quality at
the logical price. Furthermore, we ensure to timely deliver these products to our customers,
through this we have gained a huge clients base in the market.

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SHREE RAJYALAKSHMI POWER INFRA PVT LTD.

Founded in the year 2015 at Srikakulam, (Andhra Pradesh, India), Shri Rajyalakshmi Power
Infra Private Limited engaged in manufacturing, wholesaling, trading and retailing a
comprehensive range of PSC Pole and Concrete Spun Pole. Under the supervision of “N
Viswanath Rao (Director)”, they have attained a dynamic and perfect position in this highly
competitive industry.

SHREE CONCRETE PVT LTD.

Incepted in the year 1987, Shree Concretes Pvt. Ltd. is engaged in manufacturing excellent
quality RCC Pipes, PSC Poles and Asbestos Cement Pipe. Located at Kanpur, (Uttar Pradesh,
India), they have developed a state-of-the-art infrastructural facility. Under the valuable
management of our mentors “Vaarun Saraogi & Tarun saraogi”, are successfully going ahead
in this competitive market.

SR INDUSTRIES

Incepted in the year 2009, SR Industries is considered amongst the renowned manufacturers
of an immaculate collection of RCC Poles, PSC Pole, Concrete Pole, Cement Pole and
Electric Pole. The complete provided range is manufactured with utmost precision at their
well-equipped manufacturing techniques.

MARUTHI CONCRETE PRODUCTS

Established in the year 1998, Maruthi Concrete Products is one of the famous names in the
market. The ownership type of their company is sole proprietorship. The head office of their
business is located at Bengaluru, Karnataka.

CONCRETE UDYOG LTD.

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CONCRETE UDYOG LTD. is engaged in manufacturing of highly engineered concrete and


steel products such as Pre-Stressed concrete Pipes, Pre-Stressed Cement Concrete Pressure
Pipes, Reinforced Cement Concrete Pipes, Pre-Stressed Cement Concrete Poles, Bar Wrapped
Steel Cylinder Pipes and Mild Steel Pipes. More than 3 decades old, Concrete Udyog Ltd. is
adapting it's strategy and business commitments to emerge as a key player in the industry.

1.11 PEST ANALYSIS:

PEST Analysis is a simple and widely used tool that helps you analyzes the

 Political
 Economic
 Socio-Cultural
 Technological changes in the Business Environment.

This helps in understanding the “Big Picture”, and forces of change that a business is exposed
to, and from this it helps take advantage of the opportunities available.

PEST Analysis is useful for four main reasons:

1. It helps you to spot business opportunities and it gives advance warnings of significant
threats.
2. It reveals the direction of change within the business environment, thereby helping a
business cope up and work according to change, rather than against it.
3. It helps avoid un-necessary projects that a firm might take up for various reasons that are
beyond the firm’s control.
4. It helps avoiding wrong assumptions that a business is likely to make.

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POLITICAL ENVIRONMENT:

The political environment strongly influences the concrete poles industry. As the words
“Power for all” a scheme started by the GoI, refers to providing with electricity to all
households urban and rural. For the distribution of electricity such poles are required within
the state to connect the wires from the substations to the households. And once the electricity
is reached to the households the political environment becomes strong.

ECONOMIC ENVIRONMENT:

Power is the most needed component to all the industries let it be small industry, large
industry, agricultural industry, manufacturing industry. All these industries are totally not
depended on the machine force; they can carry on works to an extent with the labour force.
But the service industry is totally depended on machines which require power. This increase
in power distribution to the rural areas increases the supply to the poles and also increases the
opportunities to the small scale and large scale industries to develop those in the backward
areas.

SOCIAL ENVIRONMENT:

Education is a must in the current scenario of the world as well as the country. For proper
education without any interruption we need continuous supply of power. Especially in the
rural and tribal areas we need to develop the education system the power is needed. Once the
electricity problem is solved the people can spend more time on their studies. For continuous
supply of electricity the poles are required. The government supplies electricity free of cost to
the below poverty line homes.

TECHNOLOGICAL ENVIRONMENT:

More technology, more machines, more power. Artificial intelligence, robotics, and
automation all this is possible only with proper electricity distribution. In the present scenario
the labour force or man power is replaced with technology. With the new invention of state-

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of-art technology the concrete batch mixing plant was introduced to reduce the time process
for the preparation of concrete.

1.12 PORTER’S FIVE FORCE MODEL

Figure 1.1: PORTER’S FIVE FORCE MODEL

 BARGAINING POWER OR BUYERS:

Since it is a highly competitive market and it is price sensitive. It is a buyers’ market and
therefore the sellers are under huge margin pressure (profits are less). Therefore the
bargaining power of the buyers is very high.

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 BARGAINING POWER OF SUPPLIERS:

The major suppliers to this industry are the-

 Cement manufacturers
 Steel wire manufacturers

The bargaining power of both the suppliers is moderate, since they are many in number and
the companies does not buy only from one manufacturer, they take from multiple
manufacturers.

 THREAT OF SUBSTITUTES:

The steel pole industry and the spun pole manufacturers are a threat to this cement concrete
pole industry. These act as a substitute to the cement concrete poles. Since globally the steel
and spun poles are used but in India even cement concrete poles are in use with neck to neck
competition with steel and spun poles. In rural areas cement poles are used because the steel
poles are costly which are not affordable by the rural areas.

 The threat from steel poles is- less in rural electrification market and moderate in urban
areas.
 The threat from spun poles is- is less because the production capacities is less and are
mostly used in coastal areas where cyclones are to occur.

The overall threat from the substitutes is less.

 COMPETITIVE RIVALRY:

Since it is a highly competitive market and no barriers to entry into the market there are many
manufacturers who will be competing with each other in this competitive market. Since the
infrastructure is of many kinds. Each manufacturer will be competing with those who produce
similar kind of products.

 THREAT OF NEW ENTRANTS:

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The threat of new entrants is high in this industry because any number of manufacturers can
enter into the market set up a factory, manufacture poles and supply them to the customers.
This seems to be an easy business opportunity because the industry does not have any barriers
to let enter new manufacturers into the market.

COMPANY PROFILE

2.1 ABOUT THE COMPANY:

Manchukonda Prakasham Industries India Private Limited (MPIL) is No. 1 manufacturer of


Pre-Stressed Cement Concrete (PSCC) poles in the World founded by Mr.Manchukonda
Prakasham, promoter of MPIL, has an annual production capacity of 2.0 million poles split
across its 5 plants located in 5 major states in India - Telangana, Andhra Pradesh,
Maharashtra, Madhya Pradesh and Uttar Pradesh. The plants cater to Rural Electrification
demands by various state governments and corporate customers in India.

The company has currently established itself as the market leader in the World, having started
off its operations way back in 1971. It has been producing around 1 million poles per annum
since the financial year 2006-07.

In the year 1995, the company established its first production unit at Renigunta Mandal,
Chittoor District, Andhra Pradesh, India. After successfully running that unit for 4 years, the
second unit was established in the year 1999 at Bibinagar, Nalgonda Distirct, Telangana,
India. The Bibinagar unit is known in the market as the single largest manufacturing unit in
India and rest of South Asia. These two units are presently meeting the demands of electricity
distribution companies operating in Telangana & Andhra Pradesh. These 2 production units
are covering the needs of neighboring states as well.

The company established its third production unit near Varanasi in 2005 to address the
demands from customers located in the state of Uttar Pradesh and other neighboring states. Its
fourth production unit, with a capacity of 0.5 million poles per annum, is operational near

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Sholapur in the state of Maharashtra since 2008. Its latest production unit is located at Bhopal,
Madhya Pradesh, and is operational since 2012. In addition to the reputation of being a
´quantity´ producer in terms of volume of production, MPIL is also known for maintaining
highest ´quality´ standards for its entire line of products. Its production processes are
governed by stringent quality norms as per ISO 9001:2000 guidelines. Its raw material
procurement policy is guided more by quality factors than cost factors.

2.2 BRIEF HISTORY OF THE COMPANY:

 In 1971, Mr. Manchukonda Prakasham established a proprietorship firm which was


engaged in trading of kirana and spices items.
 In 1982, the main activities carried out by the company were transportation contracts and
PSCC Poles contract manufacturing at Electricity Board premises.
 In 1984, the proprietorship firm was reconstituted as a partnership firm.
 The company was engaged in contract services such as electrical lines and sub-stations,
UG / AB cable works and civil & building works since 1984.
 In 1995, when all other suppliers were working on contract manufacturing basis, the
Electricity Board has chosen the company to be the first supplier in the state to supply poles
from its own manufacturing facility as a fully independent supplier unlike a contract
manufacturer.
 The company undertook major plant modernization program in 2007 like installing
automatic Concrete Batch Mixing Plant etc.,
 The company has commenced implementation of ERP in 2004.
 The company’s turnover, for the first time, crossed Rs. 100 crores in the financial year
2007-08.
 In 2008, the partnership firm was reconstituted as a private limited company under Part
IX scheme of Companies Act 1956 and the partners became directors.

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2.3 INFRASTRUCTURE:

MPIL is consciously investing heavily in upgrading its technology infrastructure to meet its
customers’ expectations in terms of quality, price and service delivery and also to facilitate
conducting its other business operations with zero latency.

MPIL’s state-of-the-art infrastructure includes the following.

AUTOMATED BATCH MIXING PLANT:


MPIL has commissioned the best-in-class automated batch mixing plant to ensure
consistency of it's product quality and cut down its production process cycle time.

QUALITY TESTING INFRASTRUCTURE:


MPIL has installed testing and measuring equipments to ensure end products are properly
tested as per quality norms.

LOGISTICS INFRASTRUCTURE:
MPIL has its own fleet of vehicles for transporting poles from it's production plants to

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customer's locations. This helps in offering ultimate service quality to all it's customers
with respect to delivery of poles on time consistently.

COMMUNICATION INFRASTRUCTURE:
MPIL has installed video / audio conferencing facility along with state-of-the-art EPABX
to connect with its business ecosystem and streamline its business critical communication
processes.

INFORMATION TECHNOLOGY INFRASTRUCTURE:


MPIL has invested in BPM based business solution to streamline its business processes and
also in internet based secure remote access technology to access the business solution from
anywhere, anytime.

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2.4 BRIEF BACKGROUND OF THE COMPANY:

Manchukonda Prakasham
Chairman & Managing Director

Mr. Manchukonda Prakasham, son of Mr. M.Muthaiah (leading spice trader in Nalgonda), is
the founder of Manchukonda Prakasham Industries India Private Limited. In 1971, he entered
into the business on his own dealing in Kirana and spices items. In 1983, Mr. Prakasham
diversified into logistics contracts for transportation of pre-stressed cement concrete (PSCC)
poles. Later, he ventured into contract manufacturing of PSCC poles. He is the first generation
industrialist from his family having ventured into trading – services – manufacturing. He is a
very highly rated entrepreneur and has been a successful business person since 1971. His
experience, coupled with strong sense of business vision and acumen in PSCC pole industry,
has made him the undisputed ´market leader´ in India.

Manchukonda Ravikumar
Executive Director

Mr. Manchukonda Ravikumar has been associated with MPIIL ever since he completed his
bachelor of engineering (civil engineering) degree in 1997. As Executive Director, he is
responsible for overall business vision, plan, strategy and operations relating to sales and
marketing functions covering products and services. He is also responsible for managing
logistics operations (covering route planning, delivery, and maintenance) and achieving
operational efficiency in terms of service, cost and timeliness.

Manchukonda Surender
Executive Director

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Mr. Manchukonda Surender manages production, purchase and technology functions at


MPIiL since 2000. He is a bachelor of engineering graduate in civil engineering. His primary
responsibility includes achieving overall manufacturing operations efficiency, quality and cost
effectiveness for the company. He is also responsible for managing IT & Networking
infrastructure and purchase operations within the company.

2.5 Mission

To win the lifetime trust of it's customers, investors, employees, suppliers and other
stakeholders by delivering superior business values to them consistently thereby ensuring a
mutually rewarding long term business relationship.

2.6 Vision

Being a market leader in South Asia, Manchukonda's vision is to achieve number # 1 status in
every market segment it enters globally for manufacturing and supply of high quality and
market affordable pre-stressed cement concrete products that come with highest service
delivery standards.

2.7 Values

Manchukonda maintains its value system at very high levels while transacting with customers
and other constituents of the business.
It believes in:

 Trust

 Credibility

 Openness

 Commitment

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MPIIPL ORGANIZATION STUDY

 Quality

 Ethics

 Honesty

 Care

2.8 OBJECTIVES OF THE COMPANY:

 Consumer satisfaction through quality of products and services, achieved by consistent


adherence to procedure and system.
 Timely delivery of the goods to the customers.
 To always be first in quality race.
 Always upgrading and changing their environment according to the changes in the
technology.
 To meet clients expectations.
 To follow the norms and regulations of the company and work according to them.
 To keep up with the employee satisfaction.
 Team work and re-organization that each employee is important for the
Company’s growth and prosperity.

WHY MANCHUKONDA?
Manchukonda Prakasham Industries is the most preferred vendor for its clients for the
following reasons.

 Company that creates business value consistently thereby winning the customer trust
 A major PSCC-Poles-Player in India´s rural power distribution sector
 Countrywide player with largest production & delivery infrastructure
 Industry´s best-run-company driven by customer-centric processes
 A technology innovator in business operations
 Undisputed industry leader with highest production capacity
 A market performer with highest line-length of flat poles

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MPIIPL ORGANIZATION STUDY

 The most preferred vendor for major customers


 Company that employs its self-managed logistics for assured deliveries
 Company that delivers highest quality products all the time
 The most reliable supplier for large deliveries in short time

For Example, the company supplied a large volume of Poles in the shortest possible time to
restore power infrastructure after HUDHUD cyclone in Andhra Pradesh.

MPIL’s Quality Policy states:


Manchukonda Prakasham Industries India Private Limited (MPIL), is the world's largest Pre-
Stressed Cement Concrete (PSCC) poles manufacturer with national and international standards
quality and timely delivery to the total customer satisfaction and always stood first in the
quality race.

Manchukonda Prakasham & Co., with a dedicated and highly skilled team with the support of
technical and Quality control personnel are always upgrading the technology to meet the
expectations of the clients.

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MPIIPL ORGANIZATION STUDY

2.9 SWOT ANALYSIS:

SWOT refers to
 Strengths,
 Weaknesses,
 Opportunities and
 Threats.

SWOT analysis is a process where the management team identifies the internal and external
factors that will affect the company’s future performance. The company’s strengths and
weaknesses are the internal factors. Opportunities and threats deal with factors external to the
company--environmental factors. SWOT analysis is done as part of the overall corporate
planning process in which financial and operational goals are set for the upcoming year and

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MPIIPL ORGANIZATION STUDY

strategies are created to accomplish these goals.

STRENGTHS:

 A major PSCC-Poles-Player in India´s rural power distribution sector – Market Leader in


India.
 Well recognized as the best brand in the industry.
 Countrywide player with largest production & delivery infrastructure – 5 plants
 Industry´s best-run-company driven by customer-centric processes – Fully automated
with an integrated ERP system
 Undisputed industry leader with highest production capacity - with a production capacity
of 1.5 million poles.
 A market performer with highest line-length of flat poles – has installed capacity of more
than 10 million poles
 Company that employs its self-managed logistics for assured deliveries - more than 50
company owned trucks for delivery.
 Company that delivers highest quality products all the time – Best raw material
procurement and excellent production processes.
 Company is totally debt-free & Posted profits consistently
 Excellent revenue growth was achieved last year
 Highly transparent & Visionary leadership

WEAKNESESS:

 Though Market Leader with highest market share, the market share is still small
compared to industry size.
 Roofless plant leading to stoppage of work during extreme weather conditions such as
rain and heat.
 The company’s dependency on DISCOM’s planned investments in expanding T&D
infrastructure.

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MPIIPL ORGANIZATION STUDY

OPPURTUNITIES:

 The company has opportunity to set up manufacturing units in other uncovered states.
 The huge installed base of older poles require replacement in the years to come
 With huge investments planned for power transmission and distribution sector in the
coming years, various state governments are likely to plan for both extensive and intensive
electrification of rural areas.
 The established players are likely to consolidate their business as result of huge churn in
the market as a result of which a number of unviable manufacturers are likely to move out of
the business.

THREATS:

 Intense competition from unorganized tiny and small vendors who avoid payment of
taxes if any.

5S SYSTEM:

5S is a workplace organization method that uses a list of


5 Japanese words: seiri (整), seiton (整頓), seisō (清掃), seiketsu (清潔), and shitsuke (躾).
These have been translated as "Sort", "Set In order", "Shine", "Standardize" and "Sustain". The
list describes how to organize a work space for efficiency and effectiveness by identifying and
storing the items used, maintaining the area and items, and sustaining the new order. The
decision-making process usually comes from a dialogue about standardization, which builds
understanding among employees of how they should do the work.
WHITE HOUSE APPARELS PVT. LTD follows this system of 5S for efficiency and
effectiveness by identifying and storing the items used, maintaining the area and items, and
sustaining the new order.

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1. SORT:

 Reduce time loss looking for an item by reducing the number of items.
 Reduce the chance of distraction by unnecessary items.
 Simplify inspection.
 Increase the amount of available, useful space.
 Increase safety by eliminating obstacles.

2. SET IN ORDER:

 Make the workflow smooth and easy.

3. SHINE:

 Prevent deterioration.
 Keep the workplace safe and easy to work in.
 Keep the workplace clean and pleasing to work in.
 When in place, anyone not familiar to the environment must be able to detect any
problems within 50 feet in 5 sec.

4. STANDARDIZE:

 Establish procedures and schedules to ensure the repetition of the first three ‘S’
practices.

5. SUSTAIN OR SELF-DISCIPLINE:

 Ensure that the 5S approach is followed.

2.10 PRODUCTS OF THE COMPANY:

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MPIIPL ORGANIZATION STUDY

FLAT POLES

MPIL´s key product portfolio includes mainly utility poles for the power market segment.
Utility poles are a common feature of our everyday landscape. They support the wires that
bring electricity from the power company to our homes and enable our growing network of
telephones, televisions, and computers. They are manufactured in various forms as PSCC
poles, RCC (Reinforced Cement Concrete) poles and Spun poles. They are usually
manufactured as per the standard specifications of the customer.

MPIL´s main business focus lies in manufacturing of PSCC poles. They are basically cement
concrete poles which are pre-stressed using steel wires to provide more structural strength.
They are manufactured as per standard REC specifications followed by various customer
organizations implementing Rural Electrification programs launched by various state
government controlled electricity boards.

PRODUCT RANGE:

Poles manufactured as per REC specifications Pole Sizes Range from 8 M to 11 M in


Length and 140 Kgs to 400 Kgs in Strength. Poles Tested for ensuring high quality PSCC Flat
Pole: Product Range Customized design for Poles more than 12 m length and having strength
more than 500 kgs.

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MPIIPL ORGANIZATION STUDY

SPUN POLES AND PILES:

Manchukonda Prakasham Industries India Private Limited, a market leader in pre-stressed


cement concrete flat poles in India, is planning to diversify into pre-stressed cement concrete
spun pole/pile business by setting up a most advanced and state-of-the-art spun pole/pile
manufacturing unit near Hyderabad, India. The project will be commissioned on fast track
basis and is expected to be operational during the current calendar year 2013.

Unlike the pre-stressed cement concrete flat poles and wooden poles, the spun poles have
superior strength and appearance. The increase in strength is achieved through centrifugal
spinning with those of pre-stressing and high strength concrete in the manufacturing process.
The advanced centrifugal spinning ensures the concrete is compacted into a hard and dense
material exhibiting superior strength and excellent finish.

The company will be focusing primarily on the following few application segments to market
spun poles:

Power Segment:

 Transmission & Distribution Infrastructure (Power transmission & distribution poles)


 Township Lighting (Street/High-mast lighting & Sports/Yard lighting poles)
 Traction Infrastructure (Electric train traction poles)

Telecom Segment:

 Telecom Tower (Telecom poles)

And for spun piles, following are some of the application segments to be of immediate

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MPIIPL ORGANIZATION STUDY

business focus:

 Foundation Pile (Building/Port/River Structures, Bridges, Retaining Walls)


 Columns (Building Structures, Bridge Piers)

The company is actively looking forward to procure high quality spun pole production
machinery and equipments from reputed global vendors for setting up its manufacturing plant
to release high quality spun poles or piles into the market at the earliest.

2.11 SERVICES:

MPIL´s services delivery life cycle includes planning & design, erection, commissioning and
maintenance of power transmission and distribution related projects for various state
controlled Electricity Boards.

MPIL has implemented several projects for it's customers offering a spectrum of services.
includes services for complex as well as massive project services. Some of the projects are
multi-million and multi-year projects. Almost all projects are completed on time, budget and
quality.

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Service Offerings

High Mast Light Works


MPIL offers ‘High Mast Lights’ installation and maintenance services for city corporations
and highways departments. Its offers a complete life cycle services from design to
maintenance in this space.

HVDS Works
MPIL offers installation and commissioning services of HVDS (High Voltage Distribution
System) for its various customers. This involves distribution of power over HT / LT lines
which can be designed and erected as per customer’s requirements. Typically, installation &
commissioning of 11 KV substation works come under this category.

Sub Station Construction Works


MPIL offers civil and structural works that involves construction of sub stations as part of
total electrical transmission and distribution projects.

HT/ LT Over Head Line Works


MPIL offers HT/LT Over Head works in the power transmission and distribution space.

Under Ground Cabling Works


MPIL has undertaken several projects relating to Under Ground Cabling works. As part of
total turnkey projects, MPIL provides installation services for switchgear, RMU, MV/LV
transformer and low voltage distribution panels.

Pole Erection Works


MPIL undertakes pole erection project works under Rural Electrification as well as urban
street lighting schemes.

Power Transmission Tower Works


As part of power transmission and distribution turnkey projects, MPIL offers services for
installing and maintaining towers.

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MPIIPL ORGANIZATION STUDY

2.12 CUSTOMERS:

Major customer to MPIIPL are-

 The state electricity boards (Government)

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MPIIPL ORGANIZATION STUDY

 Major corporate companies that take up power transmission and distribution projects, and

 Retail contractors who buy in small quantities.

The customer category-wise contract terms are as follows.

Government Corporate Retail/Cash

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MPIIPL ORGANIZATION STUDY

Sales
RFQ Tender based Quotation based Call based
bids
Payment Credit LC 100% Advance
Quantity Medium - Large Medium - Large Small
Delivery Few Days Few Days Immediate

2.13 Corporate Social Responsibility (CSR) initiatives:

The company believes in undertaking social responsibility measures for promoting better life
in society where it operates.

About Manchukonda Foundation

The Foundation adopted a Government Primary School, Shaikpet in 2016 and provided the
school with core facilities and other academic infrastructure. As most of the Government
Schools in the country are less equipped in terms of faculty, facilities and other infrastructure,
the Foundation had decided to adopt one such school and help the school in achieving
academic excellence on par with well equipped private schools. The Foundation had provided
following support to another primary school, Government Boys Primary School (Old

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MPIIPL ORGANIZATION STUDY

Malakpet) to enhance its academic infrastructure. The Foundation had organized a flood relief
camp near Umamaheswara Colony, Kompally and distributed food items to the flood-affected
public during floods in September 2016.

Adoption of GPS, Shaikpet, Hyderabad

The Foundation had provided the following facilities and other academic infrastructure to
GPS, Shaikpet during the last one year.

 RO Drinking Water Plant


 Dual Desks
 Almirahs
 Public Addressing System
 School Building Colouring
 Wash rooms construction for Teachers
 School Cabinet Student Dresses
 School Band Brass Set
 Computer Repairs & Upgradation
 Distributing Note Books
 White Boards
 Electrical Tubes, Fans and Writing
 Drawing Wall Pictures
 Digital Classroom
 Ties and Belts for all Students

Conducting Water Camps at Major Locations in Hyderabad City

The Foundation has been conducting water camps at major locations such as NIMS Hospital
Gate in Punjagutta; near Indo-American Cancer Hospital Road in Banjara Hills; and near
Punjagutta Police Station to serve purified drinking water to the thirsty general public during
summer months every year.

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MPIIPL ORGANIZATION STUDY

Conducting Relief Camps

The Foundation had organized a flood relief camp near Umamaheswara Colony, Kompally
and distributed food items to the flood-affected public during floods in September 2016.

Ishva Foundation

Teaching Soft Skills

Smile Foundation

Parental Counseling

Teach for India

Teach For India places Fellows for a period of two years in full-time teaching positions in
low-income schools. We strive to place Fellows within high-need schools - where poverty and
other environmental factors may limit our students’ choices in the future. Within their
classrooms, Fellows are responsible for ensuring that their students reach ambitious academic
and personal goals that are deeply grounded in their context and developed in partnership with
key people in our children’s lives - parents, other teachers, and community members.

2.14 Awards and achievements:

Mr.Manchukonda Prakasham, promoter of MPIIL, has been given the coveted ´Pearls of
Andhra Pradesh´ award as First Best SSI Entrepreneur for ´Par Excellence´ by the Chief
Minister of Government of Andhra Pradesh for the year 2003-2004.

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Manchukonda Prakasham Industries played a stellar role in supplying thousands of poles for
restoring distribution power Infrastructure in coastal Andhra Pradesh affected by HUDHUD
cyclone. The company proved its mettle as a credible supplier of poles in LARGE
QUANTITY (43,500 poles) in SHORTEST POSSIBLE TIME (13 days).

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MPIIPL ORGANIZATION STUDY

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MPIIPL ORGANIZATION STUDY

3.1 ORGANIZATIONAL STRUCTURE:

An organizational structure is a system that outlines how certain activities are directed in
order to achieve the goals of an organization. These activities can include rules, roles
and responsibilities. The organizational structure also determines how information flows from
level to level within the company. For example, in a centralized structure, decisions flow from
the top down, while in a decentralized structure, the decisions are made at various levels.

ORGANIZATIONS ARE A VARIANT OF CLUSTERED ENTITIES:

An organization can be structured in many different ways, depending on their objectives. The
structure of an organization will determine the modes in which it operates and performs.
Organizational structure allows the expressed allocation of responsibilities for different
functions and processes to different entities such as the branch, department, and workgroup an
individual.

Organizational structure affects organizational action in two big ways. First, it provides the
foundations on which standard operating procedures and routines rest. Second, it determines
which individuals get to participate in which decision-making processes, and thus to what
extent their views shape the organization’s actions.

3.2 REVIEW IN CHOICE OF DESIGN:

Changing an Organisation structure can seem like an overwhelming task. The Organisation is
designed in such a way that hierarchical structure does not have many levels. Each head of the
department are given some powers and duties to be fulfilled by them effectively.
Manchukonda Industries India Pvt Ltd has properly organized the structure to function it
effectively.

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MPIIPL ORGANIZATION STUDY

3.3 Organisation Design:

 Alignment of departments and groups that provide similar services in Manchukonda


Prakasham Industries PVT LTD so that is well positioned to meet present and Manchukonda
Prakasham Industries PVT LTD Organisation Study future goals and objectives, foster
collaboration and minimize duplication of effort.
 Manchukonda Prakasham Industries PVT LTD structure that supports work being
performed at the right level and to the right standards.
 A team comprised of staff members who have the skills and abilities to perform the
required work and/or have a professional development plan which includes a timeframe when
incumbents should be functioning at full capacity.

An effective Organisation design leads to less contradictions, co-ordination among employees


increases, flexibility, faster decision making, removes complexity, stress, more ideas can be
brought forward to encourage employees. A key element in Organisation success is its
structure- how work activities are organized; and how responsibility and authority are
identified. Structure affects how employees even at the very top of an Organisation execute
their responsibilities and authority, coordinate and work with others and achieve the
Organisations goals and objectives. Poor Organisational design and structure results in a
bewildering morass of contradictions: confusion within roles, a lack of co-ordination among
functions, failure to share ideas, and slow decision-making bring managers unnecessary
complexity, stress, and conflict. Often those at the top of an Organisation are oblivious to
these problems or, worse, Technical and professional staff.

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MPIIPL ORGANIZATION STUDY

3.4 ORGANIZATIONAL CHART:

The organization is headed by Mr. Prakasham Manchukonda, Chairman & Managing


Director, and ably supported by his sons: Mr. Ravikumar Manchukonda & Mr. Surender
Manchukonda who are currently Executive Directors and have been with this company since
graduation. Most of the key managers have been working with the company for a long period
of their career.

Figure 3.1: Organization Chart Of MPIIPL

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MPIIPL ORGANIZATION STUDY

Breakup of employees by function – managerial, sales, marketing, operations etc. Please


also classify this by location:

Sl.No Department Managers Execution staff


01 Sales & Marketing 5 12
02 Engineering 2 3
03 QA & Process Engg. 2 5
04 Production (HO) 2 5
05 Logistics (HO) 1 3
06 Purchase 2 6
07 IT 2 6
08 Admin & HR 2 6
09 Finance & Accounts 3 8
10 MD’s Office 2
11 Operations – Bibinagar 5 22
12 Operations – Tirupathi
13 Operations – Sholapur 4 12
14 Operations – Chopan 15 40
15 Operations – Bhopal 03 03

Consultants and independent contractors engaged:

 Company is taking services of one management consultant in the area of Technology &
Strategy.
 Company is also taking help of one consultant in the area of QA and Process
Engineering.

Company engaged independent labor contractors at all the plants

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MPIIPL ORGANIZATION STUDY

3.5 ROLES AND RESPONSIBILITIES ACCORDING TO THE LEVEL


OF MANAGEMENT:

The three levels of management typically found in an organization are-

 Top-level management

 Middle-level management

 Low-level management

The people who take care of each level are:

 Low-level managers;

 Middle-level managers; and

 Top-level managers.

These managers are classified in a hierarchy of authority, and perform different tasks. In
many organizations, the number of managers in every level resembles a pyramid.

Figure 3.2: Management levels

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MPIIPL ORGANIZATION STUDY

TOP LEVEL MANAGEMENT:

The board of directors, president, vice-president, and CEO are all examples of top-level
managers.

These managers are responsible for controlling and overseeing the entire organization. They
develop goals, strategic plans, company policies, and make decisions on the direction of the
business.

In addition, top-level managers play a significant role in the mobilization of outside resources.

Here the top management are the

 Managing director: Mr. MANCHUKONDA PRAKASHAM

Roles & Responsibilities Corporate Policy, Governance, Budgeting,


Planning, Strategy, Performance
Management, Control, Finance & Statutory
Compliance

 Executive director: Mr. MANCHUKONDA RAVIKUMAR

Roles & Responsibilities Policy, Planning, Execution & Control functions


covering Sales & Marketing, and Logistics

 Executive director: Mr. MANCHUKONDA SURENDER

Roles & Responsibilities Policy, Planning, Execution & Control functions


covering Production, Purchase, Engineering &
IT

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MPIIPL ORGANIZATION STUDY

MIDDLE-LEVEL MANAGEMENT:

General Managers, branch managers, and department managers are all examples of middle-
level managers. They are accountable to the top management for their department’s function.
Middle-level managers devote more time to organizational and directional functions.

The middle-level managers belonging to this company are the:

 Manager- Purchases: Mr. Ramesh K


 GM Production: Mr. J Nageshwar Rao
 Head QA & Process Engineering: Mr. Prasad K V
 GM Finance & Accounts: Mr. Wahab M
 Head-Technology & strategy: Mr. Sugumar K
 VP- Sales & Marketing: Mr. Ekambaram
 Manager- Admin & HR: Mr. Shravan Kumar A
 Manager- IT: Mr. Nazeer S A

Their roles can be emphasized as:

 Executing organizational plans in conformance with the company’s policies and the
objectives of the top management;

 Defining and discussing information and policies from top management to lower
management; and most importantly

 Inspiring and providing guidance to low-level managers towards better performance.

Some of their functions are as follows:

 Designing and implementing effective group and intergroup work and information
systems;

 Defining and monitoring group-level performance indicators;

 Diagnosing and resolving problems within and among work groups;

 Designing and implementing reward systems supporting cooperative behavior.

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MPIIPL ORGANIZATION STUDY

LOW-LEVEL MANAGEMENT:

Supervisors, section leads, and foremen are examples of low-level management titles. These
managers focus on controlling and directing.

The low-level managers belonging to this company are the:

 Asst. Manager- Purchases: Mr. Srikanth


 DGM- Production: Mr. Venugopal
 AGM- Sales & Marketing(Government): Mr. Sudheendra K
 AGM- Sales & Marketing(Corporate): Mr. N Nageshwar Rao

Low-level managers usually have the responsibility of:

 Assigning employees tasks;

 Guiding and supervising employees on day-to-day activities;

 Ensuring the quality and quantity of production;

 Making recommendations and suggestions; and

 Up channeling employee problems.

Also referred to as first-level managers, low-level managers are role models for employees.
These managers provide:

 Basic supervision;

 Motivation;

 Career planning;

 Performance feedback; and

 Staff supervision.

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KEY LEVEL BUSINESS FUNCTIONS AND PROCESSES

DIFFERENT DEPARTMENTS OF THE COMPANY:

The various departments of the company are as follows:

1. Sales department

2. Purchase department

3. Finance & Accounts department

4. Production department

5. Quality control department

6. Engineering department

7. Logistics department

8. Human Resource department

9. Administration department

10. Internal audit department

11. Strategy department

12. Research department

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MPIIPL ORGANIZATION STUDY

SALES

PURCHASE

FINANCE &
ACCOUNTS

PRODUCTION

QUALITY
CONTROL

ENGINEERING
MANCHUKONDA PRAKASHAM
INDUSTRIES INDIA PVT LTD
LOGISTICS

HR

ADMIN

INTERNAL
AUDIT

STRATEGY

R&D

Figure 4.1: Various departments of the organization

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MPIIPL ORGANIZATION STUDY

1. SALES DEPARTMENT:
The sales department is headed by the Executive Director who is also responsible for
Logistics operations. There are 25 people working under him under this department.

The department comprises of 3 different sub-categories. They are:

 Sales to Government
 Sales to Corporate
 Sales to retail contractors
Each headed by a different person.

2. PURCHASE DEPARTMENT:
The purchase department is headed by the Senior Manager. There are 10 people working
under him.

The major raw materials are steel, cement, crushed sand & stone aggregates, which are
purchased centrally at the head office Hyderabad. The rest of the direct materials are
purchased locally.

The raw materials are procured before the production process starts and are stored in rooms
located in each and every factory.

3. FINANCE & ACCOUNTS DEPARTMENT:


It is the life blood and heart of every Organization. It is mainly involved with the
managerial decision making and is concerned with the proper utilization of funds. The
finance department gets its funds mainly from Banks and internal accruals i.e., from the
profits generated through business operations. The company is regular in paying back the
loans it has borrowed, it has maintained good relations with the banks there is no problem in
procuring the funds. The department is headed by the General Manager who reports directly
to the Managing Director. There are 20 people working under him in this department,
including the internal audit.

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MPIIPL ORGANIZATION STUDY

Looking forward, the finance department will work with managers to prepare the
organization’s budgets and forecasts, and to report back on the progress against these
throughout the year. This information can be used to plan staffing levels, asset purchases and
expansions and cash needs, before they become necessary.

FEW MAIN FUNCTIONS OF THE DEPARTMENT ARE:

a) Reporting and Financial Statements –


The Company maintains its accounts using Tally ERP 9. The primary reason
you collect data properly in your accounting software is to prepare financial reports that can
be used for budgeting, forecasting and other decision making processes. In addition, these and
other reports are needed for communication to investors, banks and other professionals that
play a role in the growth of your business.

b) Payroll –
The company’s Payroll is a critical function of the accounting department and
includes making sure all employees are paid accurately and timely. In addition, proper tax is
assessed and tax payments are on time with state and federal government agencies.

c) Accounts Receivable and Revenue Tracking –


Another critical duty of the accounting department is to account for and track
receivables, including outstanding invoices and any required collection actions. Accounts
receivable is responsible for creating and tracking invoices. The responsibility here includes
assuring that customers pay those invoices on time, so a system of friendly reminders is
crucial.

d) Accounts Payable –
In order to maintain great relationships with vendors Manchukonda Prakasham
Industries India Pvt Ltd makes sure that everyone gets paid on time. The role of the
accounting department includes keeping an eye on opportunities to save money.

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MPIIPL ORGANIZATION STUDY

4. PRODUCTION DEPARTMENT:
The production department looks after the production process and the needs and requirements
for producing the poles.
 There is manual process and machine process involved for the production of the
poles. Roughly,
 60% of the process is manual and
 The remaining 40% is machine process or automated process.
 The production department is headed by the GM Production
 There are 300 people working under this department.

PRODUCTION PROCESS:

The poles are produced by pouring concrete into moulds fitted with pre-stressed steel wire
reinforcements and followed by compacting and curing. The production cycle varies from 6-8
hours depending on the production environment. The key processes involved in pole
production are:

Figure 4.2: Production Process

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MPIIPL ORGANIZATION STUDY

The picture above is shows the complete manufacturing process of PSCC poles.

1. Mould Preparation: Moulds are cleaned and applied with mould release oil for easy
lifting of finished poles out of the mould box.

2. Pre-Stress Wire Fixing: The steel wires are pre-stressed and passed through mould boxes.
The pre-tensioning of wires improves the strength of the poles.

3. Concrete Making: Concrete is produced using ‘batching plants’ located within factory
premises.

4. Concreting: The concrete is poured into mold boxes.

5. Compacting: The mold boxes are vibrated so that concrete gets compacted.

6. Steam Generation: Steam is produced using boiler. The picture below shows the boiler
room where steam is generated.

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MPIIPL ORGANIZATION STUDY

7. Steam Curing: The steam is passed over the mold boxes to remove moisture from
concrete. The steam pipes carrying steam to the production beds is shown in the picture
below:

8. Pole Release Preparation: At this stage, the pre-tension wires are cut and hence poles are
de-tensioned.

9. Lifting: The poles are lifted from mold boxes using gantry cranes and transported to other
location for further processing.

10. Water Curing: After lifting from poles, they are stacked inside ponds for further curing
and strengthening.

11. Stocking: After water curing, poles are stacked at the stock yard as finished goods
inventory.

12. Delivery: The poles are loaded on to trucks for customer delivery. The poles being lifted
from stockyard for customer deliveries is shown below in the picture:

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MPIIPL ORGANIZATION STUDY

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MPIIPL ORGANIZATION STUDY

5. QUALITY CONTROL DEPARTMENT:

This department is responsible for the following activities:

 Checking quality of raw materials and finished products.


 Cost optimization
 Process optimization
The team comprises of 25 people.

The team is sent to all the plant periodically to oversee quality related activities.

6. ENGINEERING DEPARTMENT:
 This department deals with the design and fabrication of tools and
equipment.
 They also look after the maintenance of the equipments.
 The department is headed by a senior manager
 There are 6 people working under this department.

7. LOGISTICS DEPARTMENT:
The basic motto of this department is to provide uninterrupted supply of the products to the
customers through their own transportation. All the members under this department work
towards one particular goal of timely delivery to the customers and their satisfaction.
 The department is managed by a Senior Manager (Logistics).
 More than 400 people work under this department.
 The company has their own transportation for delivery of the products to the customers.
 The company owns more than 100 trucks for transporting the poles.
 The company charges additional amount for the transportation and delivery of the goods.
 The delivery time taken by the company is 1 day or 2 days, depending on the distance for
the delivery.

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8. HUMAN RESOURCE DEPARTMENT:


 Human resource department is controlled by HR Manager.
 There are 5 people working under this department controlled by the HR manager.
 Currently there are more than 300 permanent employees and more than 1000 contract
employees which are the laborers count in all the factories.
 The office timings are from 10:00 am to 6:00 pm.
 The Factory works for one shift (i.e. Day).
 Office is opened 6 days in a week and Sunday is holiday.
 Office also gives 12 public holidays, 1 day causal leave per month, 7 sick leave, 15
earned leave.
 Attendance is taken through the bio-metric system.
 There is no concept of overtime at this company.
 The labor attrition is very low.

Functions performed by HR Department:

 Legal Aspects
They are connected with-

a) Provident fund Organization


b) Employees state insurance through the ESI Scheme.

 Policy creation:
They frame different policies for improvement of employees

a) Leave policy- standard casual leaves of 1 day per month, sick leave and privileged
leaves.
b) Travel allowance policy- is on actual covering travel expense, accommodation expense,
and local conveyance expense.

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c) Termination policy- can be carried out with a prior notice before 1 month. This is in the
case if the employee wants to resign. The other way is that the person can be terminated by
the company members.
d) Employees discipline policy

 Training and development:


The training and development is done through the following 2 methods:
 On field job training i.e., the employee is kept on job under guidance of supervisor or
manager.
 Periodic class room training i.e., to upgrade the skills of the employees.

 Recruitment process:
Recruitment involves the following steps-
 Job description
 Advertisement through newspapers or word of mouth
 Short listing the resumes
 Interviewing the candidates
 Selection of the candidates
 Issue of appointment letter
 On boarding
 Orientation program

9. ADMINISTRATION DEPARTMENT:
The administration is placed at the head quarter Hyderabad.
The department is headed by Senior Manager who reports to the GM-Finance & Accounts.
The following are some of the activities performed by this department-
 Premises maintenance- the head office
 Payment of property taxes insurance
 Maintenance of utilities such as power, water, A/C, etc.

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 Housekeeping, etc.

10. INTERNAL AUDIT:


 This department takes care of checking all the bills, vouchers, bank statements & other
documents related to business transactions.
 The department is responsible for identifying any deviations from the point of accounting
policies and procedures to be followed.
 Since it is an internal audit, the auditing takes place all through the year for 365 days.
 There are 5 people working under this department.

11. STRATEGY DEPARTMENT:


This department deals with the following 2 major activities:
 Expansion or diversification of business that includes new business initiatives.
 Driving internal operations efficiency.
The department is headed by the technology head and there are 3 people working under this
department.

12. RESEARCH AND DEVELOPMENT:


The research and development team aids the company in staying competitive with
others in the industry. This research aids the department in developing and updating the
products created by the company. The team helps direct the future of the company based on
the information it provides and products it creates.

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13. ENTERPRISE LEVEL INITIATIVES:

 Technology/ systems used (eg. ERP, CRM, Accounting)


The company has put in place an ERP system implemented using advanced Business
Process Management (BPM) technology, AXPERT, which does not require time-consuming,
elaborate and lengthy software coding. This technology allows the company to customize its
enterprise application 100% based on exact functional requirements. The ERP system that has
been implemented covers following functional areas – sales, purchase, production, finance &
accounts, logistics, assets, HR and admin.

The ERP system runs on enterprise edition of Oracle Database installed in Microsoft
technology environment that consists of Microsoft OS, Application and Web Server. The
system software, database and applications are loaded on state-of-the-art advanced DELL
servers. The corporate LAN is protected by advanced SONIC firewall and the external access
is governed by 256 bit SSL encryption. The corporate LAN is exposed to internet cloud using
2 Mbps dedicated leased line supported by additional broadband connectivity. All five plants
are connected with dedicated leased lines for accessing centralized ERP application and other
applications. The following picture summarizes type of IT infrastructure that is currently in
operation within the company.

FIGURE 4.3: ERP of the organization

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Findings

1. The company sells its products in parts of India.


2. The company is the market leader with 2.5% market share which is the highest.
3. The company has a functional organizational structure.
4. It is a centralized organizational structure.
5. Inter department communication is not up to the mark, it takes time for message to be
passed from one department to another.
6. The company has- 12 government clients and state electricity boards, 11 corporate clients
& a few retail contractors.
7. The cost of raw materials used in the production department are priced the same or vary
from location to location and from vendor to vendor.
8. As a policy the company does not maintain excess laborers. However, buffer workforces
to the extent of 15% are always available at the plants as well as at the head office.
9. There is no concept of overtime duty in this company.
10. The information is usually delivered in 2 ways- either from peer-to-peer or occasionally
peer-management-peer.
11. The company does not use third party distribution channels for product delivery. Instead,
it has its own distribution infrastructure. It has its own fleet of trucks or hired vehicles for
transporting and delivering poles.
12. The company enjoys very high brand visibility in the industry on account of strong word
of mouth campaign by customers themselves. However, the company promotes itself in
various ways including sponsoring of seminars, and uploading of profiles at various eBusiness
portals.
13. The brand promotion is mainly done through targeted campaign in the specific power
distribution market segment.

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Suggestions

1) The company can use various other new techniques in the market in order to counter inter
department communication gap. Companies such as biotechnologies provide software which
will help in countering inter department communication problems.
2) The company can extend its business to various other states of the country.

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Conclusion

In the 15 days of my Organizational study that had undergone in “Manchukonda Prakasham


Industries India Pvt Ltd” has given me a lot of knowledge and experience. It gave me glimpses
about what are the functional areas required to run and manage a company. I had visited
various departments in the company learnt their functions. I also understood the rules and
regulations of the company. I interacted with various employees and managers to understand
about the company. Even though the employees were busy with their schedule I tried my best
to interact with the company employees and managers. I had a discussion with my mentor in
the organization to understand the roles and responsibilities of him as well as various people in
the organization since the other heads were busy and could not have a proper interaction.

The company has a good future and will enjoy profits for a long time as they work according
to the rules and regulations set by the industry. And they being the market leader will always
strive hard for maintaining their position and always being the No.1 in the market.

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