Vous êtes sur la page 1sur 100

A PROJECT REPORT ON

AMUL INDUSTRIES PVT. LTD.

PREPARED BY

DODIYA JIGNESH K
MBA – (Sem – III)

ACADEMIC YEAR
2008-2009

UNDER THE GUIDANCE OF

PRO.JAGRUTI T THAKER

SUBMITTED TO
N.R.VEKARIA INSTITU OF BUSINESS MANAGEMENT,
SAURASHTRA UNIVERSITY, RAJKOT.

COLLEGE CERTIFICATE

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 1


J.J.C.E.Trust Sanchalit

Bilkha Road,
JUNAGADH - 362001
Date:

This is to certify that Mr.JIGNESH K. DODIYA. Student of M.B.A. Sem -


III of this college has taken industrial training undergone at 'AMUL industry pvt.
Ltd – Rajkot’ for 6 weeks starting from may, 15 as a part of his study.

He has prepared project report and submitted a copy of the project report of
mentioned training to the institute.

Project Guide Director

Prof. JAGRUTI T. THAKER Shri H. J . Doshi

DECLARATION

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 2


I, Mr. JIGNESH K. DODIYA , here by declare that this project is the record of
authentic work carried out by me, in well-reputed technology company Amul
Industry Pvt. Ltd. During the academic year 2008-2009, under the guidance of Prof.
Jagruti T. Thaker of N.R. Vekaria Institute of Business Management Studies.

This is my real work and has not been submitted to any other university or
institute towards the award of any degree.

Date: -

Place: - Junagadh (JIGNESH K. DODIYA)

ACKNOWLEDGEMENT

First of all, I wish to thank the N.R VEKARIA INSTITUTE OF BUSINESS


MANAGEMENT STUDIES, whose course curriculum provided me with an
opportunity for an exposure to the field of summer training project research.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 3


I acknowledge my deep indebtedness to Mr. Manhar Parekh head of H. R.
department who despite his busy schedule and spared his valuable time for guiding me
throughout the project-study.

I am highly obliged to Mr. Sureshbhai Patel, M.D of Amul Industries Pvt.


Ltd.,Rajkot, to give me such a golden chance to work with such a huge company and
to open the door of the company for me work there and to pass six golden week of my
life.

I am sincerely thankful to my guide Prof. Jagruti T. Thaker, and Dr. Niraj P.


Ramani, H.O.D. of our College, who have always co-operated me in all respect
throughout my project study.

I also express my deep sense of gratitude to our parents who helped me


throughout in every possible way.

PREFACE

“Knowledge is one of the most important Treasures for any person”. The
amount of the knowledge in this world is a doubling every five years and with the end
of the 21st century it is now expected to double every two years. So if I plan to be in
this knowledge explosion means that I would be facing with unprecedented challenges

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 4


and opportunities. How well I address that I would depend upon, in large part on my
ability to adapt to the continuing changes. Journal work like this gave an exposure to
the practical and real life experience of the modern market.

Learning is the process, which stops with the life; my variance visits to plant &
office of the company as filled our empty coffers with enlightening knowledge, which
will be the everlasting in our life.

Theories don’t teach unless accompanied by the working in original situation.


This project report was carried out according to the course of MBA.

All the valuable data are collected from reliable source of the company, which
are trustworthy. I will always remember my second year of MBA; especially because
it was privilege that I got opportunity in such a reputed company. An activity such a
project report gives lot of pleasure to me, as I enjoy living practical life.

CONTENT

1. INDUSTRY OVERVIEW 7

2. COMPANY OVERVIEW

3. PRODUCTION DEPARTMENT

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 5


4. QUALITY CONTROL DEPARTMENT

5. MARKETING DEPARTMENT

6. FINANCE DEPARTMENT

7. HUMAN RESOURCE DEPARTMENT

8. FINDINGS & CONCLUSION

9. BIBLIOGRAPHY

INDUSTRY OVERVIEW

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 6


COMPANY PROFILE

Name :- Amul Industries Pvt. Ltd.

Registered office :- Aji Industries Pvt. Ltd.


Plot no.332\333,
Rajkot - 360 003.
Gujarat, INDIA.

Establishment :- 1988

Chairman & Promoter :- Mr. Chandubhai Patel

Managing Director :- Mr. Sureshbhai Patel

Bankers :- State Bank of Saurashtra

Telephone no. :- 91-281-387461/2387898

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 7


Fax :- 91-281-387762

E-mail :- info@amulind.com

Website :- www.amulind.com

Weekly off :- Monday

Board of Director :- Nipul Santoki


Atul Santoki

Manufacturing Product :- Connecting Rod,


Crank Shaft,
Cam Shaft & Mfg Product

Legal advisors :- Mr. J. N. Shah


Product made :- Automobiles parts
Installed capacity :- 262.25
History of Industry

The Indian Auto Component Industry had its small beginnings in the 1940s. If
the evolution of this industry is traced in India, it can be classified into three distinct
phases namely:

1. Period prior to the entry of Maruti Udyog Ltd (1940s to 1984)


2. Period after the entry of Maruti Udyog Ltd till economic liberalization (1984
to 1991).
3. Period post Liberalization (1991 onwards).

The period prior to the entry of Maruti Udyog Ltd was characterized by low
technology and assured business for most of the auto-component manufacturers who
used to supply to a handful of players in the Indian automobile market like Hindustan
Motors, Premier Automobiles, Telco, Bajaj, Mahindra & Mahindra etc.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 8


With the entry of Maruti in the 1980s, the auto ancillary industry in the country
showed a spurt in growth. This period witnessed the emergence of a new generation of
auto ancillary manufacturers who were required to meet the stringent quality standards
of Maruti's collaborator Suzuki of Japan. The good performance of Maruti resulted in
an upswing for the domestic auto ancillary industry. It was also during this period that
auto components from India began to be exported.

With the liberalization of the Indian economy in 1991 and coming of many
foreign automobile manufacturers like Hyundai, Daewoo etc., the auto ancillary
industry witnessed huge capacity expansions and modernization initiatives in this
period. This also led to a tough competitive scenario, which saw a lot of consolidation,
technological collaborations and equity partnerships within the industry and with
leading global players abroad.

Today, many international and local automotive players are increasingly


sourcing components from Indian automotive component manufacturers. As the
demand for manufactured automotive components with the tag "made in India"
increases, the automotive companies have to further enhance the quality of their
products and operations as global players require quality components at reasonable
prices and at precise time durations. This has made the automotive component
manufacturers in India to be under severe pressure to meet such onerous demands.
Hence, to meet such demands, today all the major players in this industry are having
one or the other logistics management system.

The performance of auto ancillary sector is closely linked to those of the auto
sector. Demand swings in any of the segments (cars, two-wheelers, commercial
vehicles) have an impact on auto ancillary demand. Demand is derived from original
equipment manufacturers (OEM) as well as the replacement market. Replacement
demand accounts for close to 57% of total demand, while OEMs account for 27%,
with exports accounting for the balance 16%.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 9


According to the Indian auto component industry body ACMA the auto
components industry in India is dominated by around 500 key players, which
contribute more than 85 percent of India's production.. The automobile sector is
cyclical and dependent on the growth of the economy and improvement in
infrastructure. Factors like increased public spending, favorable interest rates and
general improvement in per capita income points towards higher demand for
automobiles in the future.

The domestic auto component sector - an integral part of the manufacturing


business - is on the fast track, clocking 34 per cent growth in the past three years. This
has been propelled by strong domestic demand and an indigenization drive. India has
joined the billionaire club on the export front, riding on the outsourcing wave.

PERFORMANCE OF COMPANY

The Indian automotive component industry has witnessed a CAGR of 20 per


cent in the last five years, according to a McKinsey-ACMA report on the Status of the
Indian Auto Industry. In 2005, the auto components industry was worth over US$ 10
billion, which is expected to nearly double every four years, to 18.7 billion in 2009,
and reach US$ 40 billion by 2014.

According to estimates by the Automotive Component Manufacturers


Association (ACMA), domestic production increased by 17 per cent in 2005-06 to $10
billion, while exports jumped by 30 per cent to $1.8 billion. "The industry has grown
at a CAGR of 20% between 2000 and 2005 with total output in value terms touching
US$ 10 billion in 2005. Exports have grown at a much higher rate of 34% CAGR
during the same period with output touching US$ 1.8 billion," say data published by
independent market observers too.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 10


The reduction in excise duty on small cars affected in the 2006 Budget had
created positive market sentiment towards auto-ancillary units, especially the ones
having exposure to small cars producers. The reduction in peak customs duty levels
and the reduction in import duty on ferrous and non-ferrous metals should also provide
some relief to the auto ancillary producers.

The Indian auto industry produces an estimated 9.7 million vehicles, propelled
by a surging domestic demand, which has pushed the growth rate of the auto industry
to 20% in the last couple of years. The domestic industry is set to grow manifold over
the next few years as estimates point out that the Indian auto components industry will
invest about $1 billion towards ramping up capacities and acquiring newer
technologies every year for the next 10 years.

MISSION OF THE COMPANY:

Our mission is to provide total customer satisfaction with best quality.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 11


VISION OF THE COMPANY:

To be the “NUMBER ONE” connecting rod supplier in world in next five


years.

OBJECTIVE

OBJECTIVES OF THE COMPANY


• Consistently reduce the customer complaim.
• Consistently reduce the No. of system non-conformities in on going internal
audits.
• Consistently reduce the cost of product manufacturing.
• Consistently reduce rejection, re-work and process variations.
• Improve product and process and process performance.

POLICY

POLICY OF THE COMPANY


• Consistently supplying quality product to our valued customers in time.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 12


• Continually improving the quality standards by implementing process
control and prevention techniques.
• Improving manufacturing facilities.
• Complying with government and safety regulations.
• Continually improve the effectiveness of quality management Systems.

ORGANIZATION CHART

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 13


HUGE BUSINESS POTENTIAL

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 14


Exciting times lie ahead for the Indian automotive component industry. The
industry is transforming, and the boost in demand will see the emergence of several
new players in the industry. The vast market for auto components, and the diverse
products and technology involved ensures a place and role for many.

According to Baba Kalyani, chairman, Bharat Forge Ltd, the auto-component


business is huge and what players like us from the developing world are trying to do is
to get a part of that business. And that part will never be more than 20 per cent. But
that 20 per cent is big business. The auto-component business that is favorable for
India totals to some $380 billion. "Even if you get 10 per cent of that, it is $38 billion!
It is a hell of a lot more than what we are doing as a whole country," he stated.

There is lot of positive factors - India has emerged as an outsourcing hub for
auto parts for international companies such as Ford, General Motors, Daimler
Chrysler, Fiat, Volkswagon, and Toyota. India enjoys a cost advantage with regard to
castings and forgings. The manufacturing costs in India are 25 to 30 percent lower
than its western counterparts. India's competitive advantage does not come from costs
alone, but from its full service supply capability.

Besides the burgeoning demand from global auto majors, there is also the
domestic car industry, which is growing at a spanking rate of over 16 per cent, driven
by a rising consumer base and affordable loans. Auto sales within India are expected
to touch 10 million by 2009 and Indian auto majors have registered a growth of over
24 per cent in vehicle exports in September 2006 alone. The industry displays
tremendous potential in generating employment and boosting entrepreneurship in the
country. The spate of new investment plans announced by global and domestic
automobile manufacturers promises the emergence of India as a global hub for auto
components.

COMPETITORS

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 15


To prepare an effective marketing strategy, a company must study its
competitors as well as its actual and potential customer. Companies need to identify
competitors strategies, objectives, strength, weakness, and reaction patterns. They also
need to know to design an effective competitive intelligence system. A company
should identify competitors by using both industry and market based analysis.

As important as a competitive orientation is in today's global market, company


should not over do the emphasis on competitors. They should maintain a good balance
of consumer of and competitor monitoring. Bhavani & Co. Calex. Co. Anand
Enterprise. (Rajkot.) BqJqJ Sons Ltd, (Ludhiana.) 4- Swastic Drilling co Ltd, (New
Delhi.) + Kishan Auto parts Ltd, (Rajkot.) -*.- J. J. Auto Engineering,
(gota-Alimedabad.)

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 16


SWOT ANALYSIS

STRENGTH:

"Amul Industry" has experience and qualified staff. Very high brand
identify. Very less dependent on government for wall and power. Sound to cope
up with the economic situation. High distribution efficiency. Excellent
management team to cope with changing environment.

WEAKNESS:

"Amul Industries" employees are dis-satisfied with their pay-scale.


Competition is increases in auto-parts industry. There is no advertisement.

OPPORTUNITY:

The receipts of the bulk order of customer are great opportunity for
industry. Company provides after sales service to their customer.

THREATS:

Threats from the economic cycle, Le,, recession or growth. Capacity


expansion by the competitors. Change in government policies in terms of coal,
diesels, rawmaterial, and transportation.

Major Players

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 17


 Asahi India
 Bharat Forge
 Exide Industries
 Mico
 Sundaram Clayton
 Sundaram Fasteners
 Sona Koyo Steering
 Jay Bharat Maruti
 Bharat Seats
 Amara Raja Batteries
 Subros
 Motherson Sumi
 Amtek Auto
 EL Forge
 TVS Autolec

HISTORY AND DEVELOPMENT OF AMUL INDUSRIES


PVT. LTD.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 18


COMPANY OVERVIEW

INTRODUCTION: -

Amul Industries is a part of 89 Million Group known as Adico-Galaxy group


of industries. Started in 1965 today the group is employing about 1200 people and 15
companies located in Rajkot, Pune & Hyderabd and is engaged in various engineering
products like Connecting Rods, Crank Shafts, Anti Friction Roller Bearings, Industrial
Chains, Single & Double Cyl. Diesel Engines, Forgings, Machine Refurbishing etc.

Amul Industries started its functions in 1988 as a small scale industry; today
we are manufacturing 175 different types of Connecting Rods and are considered one
of the biggest Connecting Rod manufacturers in India. Within a short span of 15 years
the company has been able to touch turn over of 40 corers with more than 400 people
working with it.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 19


Our C Our Connecting Rods range from 0.3 Kg. to 12 Kgs. in weight and from 90
mm to 310 mm in center distance. Material range includes Steel & Aluminium in both
forging and casting condition. We are also gearing up our selves for processing
Connecting Rods of unconventional materials.

Our list of customers include almost all automobile giants in India including
Cummins India Ltd., L & T John Deere Ltd., Tata Motors, Ashok Leyland Ltd.,
Mahindra & Mahindra Group, Simpson & Co,. Swaraj Engines, Eicher Tractors as
well as Motors, Hero Motors, Greaves Ltd., Same Engines, New Holland Tractors
Ltd., Escorts Tractors etc. Also to include are the customers from other segments like
Generators, Air Compressors, Hermetically Sealed Compressors, Diesel Engines and
Hydraulic Motors. Ingersoll-Rand, Kirlosker Oil Engines, Voltas, Tecumseh Products
are to name some of them.

Our Products are also exported to overseas OEMs like Iveco-Italy, Lombardini
Italy, FMC-USA, and John Deere-USA etc. We are also exporting our products to
more than 20 countries in Europe and Middle East Countries for Heavy & Medium
Commercial Vehicles as well as compressors.

Our disciplined system of working, state of the art technology and high degree of
quality controls have fetched us ISO 9002 (1994), QS (1998) as well as TS 16949
accreditations.

Our manufacturing facilities are backed up with latest & precision measuring
systems. This facility is studded by specially designed UTM, Micro Scope, Spectro
Scope for Chemical & Physical testing and Latest CMM (Three Co-ordinate
Measuring Machine), ScanMax, Marposs Final Inspection Gauge (To check 19
parameters of Con Rod at a time), Electronic Torque Tester, Nut Runner, and
Calibration Masters for Dimensional Checking.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 20


We are also equipped with Connecting Rod Fracturing (for Casting Connecting
Rods) and Crank Shaft Radius Rolling facility. We enjoy the status of being the only
supplier having these facilities in India.

We are also equipped with Connecting Rod Fracturing (for Casting Connecting Rods)
and Crank Shaft Radius Rolling facility. We enjoy the status of being the only supplier
having these facilities in India.

BASIC INFORMATION OF THE COMPANY

NAME & ADDRESS OF THE UNIT: PLANT / HEAD OFFICE ADDRESS


AMUL INDUSTRIES PVT.LTD.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 21


2-Aji Industrial Estate,
Rajkot-360003.
Gujarat - INDIA.
Phone0281-2387898/2387037
Fax:0281-2787762
Email :info@amulind.com

PUNE OFFICE

"Safalya"-1103/A-9,
Adarsh Colony,
Opp. VidyaBhavanHighSchool,
Near, Model ColonyTelephone
Exchange,
Shivaji Nagar,
Pune - 411 016.

MUMBAI OFFICE

A/5, Anat Nagar,


Near N.L.HighSchool,
4,S.V.Road, Malad(West)
Mumbai - 400 064.

CHENNAI OFFICE

A/2, Ansari FlatNo.-8,Madley Road,


TNagar,
Chennai - 600 017.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 22


DELHI OFFICE

64, Dedoot Apartments,


D-Block,Vikaspuri,
New Delhi - 110 018

HYDERABAD OFFICE

8-2-293/174/a-27
B.N.Raddy Colony,
Road No.-14,BanjaraHills,
Hyderabad - 500 034

GROUP OF COMPANY

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 23


ENGINEERING COMPANIES
1. Amul Industries Pvt Ltd -1988
2. Adico Spares Pvt Ltd – 1965
3. Forge & Forge Pvt Ltd – 1965
4. Advin Diesel Pvt Ltd – 1974
5. Advance Diesel Engines Pvt Ltd – 1994
6. Avirat Engineering Co. – 1982
7. Galaxy Bearings Ltd – 1990
8. Galaxy Chains Pvt Ltd.
9. Adico Forge Private Ltd. – 2005
10. Amul Crank Shaft Pvt. Ltd. – 2005

NON ENGINEERING COMPANIES


1. Galaxy Hotels
2. Galaxy School Systems
3. Modern Construction Co.
4. Galaxy Stone Mining
5. Galaxy Decore Pvt. Ltd.
6. Galaxy Granites
7. Galaxy Leathers

AWARDS, RECOGNITION & ACHIEVEMENTS

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 24


1 Best Supplier award by Cummins

2. Best Supplier award by LG

3. Best Supplier award by Mahindra & Mahindra

4. Best Supplier award by Tekum sekh

5. Supplier performance award 2006-07.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 25


DEPARTMENTS

The major functions are grouped under 5 departments. The departments are:

1. Production Department
2. Marketing Department
3. Finance Department
4. Human Resource Department
5. Quality control Department

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 26


N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 27
PRODUCTION DEPARTMENT

1.1 Introduction
1.2 Production Process
1.3 Types of plant layout
1.4 Plant Layout
1.5 Selection of Location
1.6 Material handling system
1.7 Production planning & control

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 28


1.1 Introduction:-

"Production is a process by which goods and services created"

According to E Buffa,

Production department is the heart of all business. Production means


conversation of raw material into serni-finished of finished product. It is fact that for
the manufacturing of successive products, proper production department and accurate
with conversation and transformation of raw material or semi-finished good into
finished product. Production activities operate in an economical and effective manner.

Production department of the business is concerned with the certain of a


product for a service required to satisfy customers needs, wants, desire production
management is called upon to develop and establish close relationship between market
demand and production capabilities of the enterprise regularly.

In deals with man, machine and by the help of both productivity and
satisfaction and desirable results.

The production department of "AMUL INDUSTRIES PVT.LTD." Is fully


equipped with machines of latest technology. Latest technical based computers such as
sectional computers, which are, know, as computer is very helpful. The computers run
manpower. In today's modem world whole production department is computerized.

Instead of wasting time for opening file, document to get information regarding
any product just fit on computers and within few minutes you can get detail
information.

The whole process is semi automatic, where process operating persons closely
monitor the whole plant operation through visual. Semi automatic machinery ensures the
steady and smooth operation of unit.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 29


1.2 PRODUCTION PROCESS:

Different process can be done according to different product at Amul Industries Pvt.
Ltd. There are different products like:
a) Connecting road
b) Cam shaf

PROCESS:-
A. Connecting rod
A. Grinding
B. Drilling
C. Boring
D. Rib milling
E. Cap spot face
F. Final parting face grinding
G. B.E. pre boring (Ruf boring)
H. Bolt hole pre drilling
I. Bolt hole final drilling
J. Tapping
K. Oil hole top face
L. B.E. final boring
M. B.E. face & chamfer
N. Oil hole drilling
O. B.E. face groove
P. S.E. heating
Q. 1st & 2nd face
R. Bush boring
S. Rod opening
T. Rod notch milling
U. Weight greding

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 30


2. CAM SHAFT

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 31


A. Drilling 7.1
B. Drilling 6.1
C. Profile turning
D. Notching
E. Drilling 8.1
F. Ruf greding
G. 5mm cotation
H. Punching
I. Hardening
J. Straitening
K. M greding
L. Final Greding
M. Hardness testing

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 32


N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 33
1.3 LAYOUT:-

1. Process layout:-

In this type of layout all machines performing similar type of operation are grouped at
one location. In this layout several products may share a machine to make its full use. In
this type of layout, the process rather than the product has the dominating role. This type
of process is more suitable for job order type of production. In such production the
operation differs from product to product.

2. Product layout:-

In this type of layout the machines are arranged in sequence as required by the particular
product. This is also known as “The Product Line Layout”. In this layout one product
goes through all the machines lined up, in the manufacture required by its manufacture.
In this type of layout, the product is dominating over the process. Product is more
suitable for continuous flow production with few items of production.

3. Mixed or combined layout:-

Generally pure process or pure product is not found in practice. So a proper combination
is made in order to best suit the production process. A proper compromise reaping the
benefits of both is made possible in this type of layout.

4. Job shop layout:-


In this type of layout there is processing of job production and hence the system is very
flexible. The layout depends upon the analysis of the universe of orders received and is a
very complex affair.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 34


1.4 PLANT LAYOUT OF AMUL Ind.:-

Process layout:

AMUL Ind. is engaged in producing automobile parts which is used in automobile


industries The Production process of AMUL Ind. involves producing of many parts i.e.
Connecting rod, cam shaft etc. In producing automobile parts the raw materials goes
through different process step by step in order to get converted into final product.

As Amul practices continuous flow of production and the process is arranged based on
the next process, so it is organized in a process layout form, which facilitates the
production of Automobile parts in a systematic way.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 35


1.5 Selection Of Location:-

Location of the plant is important for any industry because it is helpful


to reduce cost. If industry located in well facilitate area than you can get all facility
immediately. Rajkot is such a place where you can get all facility like transportation by
road, railway and airport and also get technical and non-technical manpower easily. So
here maximum utilization of resource is possible.

Factors Affecting Layout Of Company:

Location factors are very much important in establishing a production plant.

1. Power:
We know that power is basic element for running smooth activity for any
industry. So generally people choose such a place where power is easily available

2. Labor:
On growing modernization of plants, the requirement for skilled man power has
increased then that of unskilled man power. The cheap availability of labour from the
near by areas has proved to be great help for the company.

3. Transportation: -
It is a very important thing to be kept in mind while deciding the location. It cost widely
affects the overall cost. Rakot is centre area which is connected through National
highway 8-B and 8-A and Airport facility also available so it is helpful to reduces cost of
transportation for the company.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 36


1.6 MATERIAL HANDLING SYSTEM

In a manufacturing firm, the raw materials are obtained from the suppliers and are stored
in the storeroom. These raw materials are then issued to purchase Department and are
moved inside the plant from one process to another till they are converted into finished
goods.

Thus material handling involves movements of materials from one place to another for
the purpose of processing. They are moved either manually or mechanically. The job
tackled by material handling equipment like lift and trolley etc.

FACTORS AFFECTING MATERIAL HANDLING

1. Types of the product


2. Plant layout
3. Material handling equipment etc.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 37


1.7 Production planning & control.

Production Planning and control are 2 important aspect of production. Production


planning is prerequisite of production control. Production control cannot be imaged
without production planning.

Production planning is the function of management to look ahead, anticipate difficulties


and take steps to remove obstacles before they are materialized. Where n unit is
constantly evaluated and compare with the standards set in advance.

At AMUL Ind. production planning is jointly done by Production and marketing


department on the basic of order. Production department plans production and its
operations. And on the basic of production planning, department and strict control on the
production activity and continuously evaluated the performance.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 38


QUALITY CONTROL DEPARTMENT

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 39


"Quality is an asset which may be offered to the potential customer of a product
or a service."

Quality is an important dimension of Production &


Operation Department. It is not enough for company to produce the goods or services.
But company has produce product with good quality. Because people wants qualified
products. The consumer of the final product of company wants certain quality of
products. If consumer is not satisfy with the product of the company then it may
happens that company loose the customers. So company has produced qualified
products.

For this quality company use the quality control department


to check the quality of the product. That’s why quality control department is most
important.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 40


QUALITY POLICY

Amul Industries is committed for achieving “Total Customer Satisfaction” through

1. Consistently supplying quality products to our valued customer in time.

2. Continuously improve on quality standards by implementing process controls


& prevention techniques

3. Improving manufacturing facilities.


This commitment is met by nurturing quality culture & team spirit.

 Amul has also quality control department. In this department quality of the
entire product is checked. If there is something defect then it sends to back for
to improve the product.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 41


Major function undertaken by AMUL:

1. RECEIVING INSPECTION:

In this first step all specification according to product drawing check


like dimension check.

2. INPROCESS INSPECTION REPORT:

In this process they checking randomly any piece at every hour to know
product is produced at uniformly.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 42


3. FINAL INSPECTION:

In this step finally inspection done visually by checking physical


parameter like product band, width, central dimension etc.

4. LAYOUT INSPECTION REPORT

In this step randomly three to five pieces selected for various parameter
check when it goes from forging to dispatch.

5. STUDY PROCESS CONTROL

There are mainly two processes


1. Control process for minor variation
2. Control process capability for major variation.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 43


Marketing
Department

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 44


2.1 Introduction:

 Definition:

Marketing is the process of planning and executing the conception, pricing, promotion,
and distribution of ideas, goods and services to create exchanges (with customers) that
satisfy individual and organizational objectives.

 Need for Marketing of automobile parts:

Some of the factors like competition create awareness of product to customer, market
penetration, to achieve goal for selling in particular segment, to establish good image
of brand of product to customer, etc are driving force behind marketing task.

As additional companies are coming up in the other region, there is stiff competition.
This companies need to adjust themselves to changing situation by upgrading the
technology, widening product range, developing new market segments, improving
existing, channel of distributions etc.

 Essentials of automobile parts Marketing:

o Focus on brand name

o Effective public relations

o Price differentiation

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 45


o Strong distribution network

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 46


2.2 Organization chart of Marketing Department:

M.D.

MARKETING DEPARTMENT

DEVELOPMENT REGULAR
MARKETING MARKETING

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 47


2.3 Market Segmentation:

A company, which decides to operate from some part of market normally, can not
serve all the customers in market. To maximum utilization of available market &
resources to the sales the company adopts the market segmentation policy.

AMUL Ind. adopts market segmentation on following basis.

1. Heavy motor vehicle

2. Sport utility vehicle

3. Car segment

4. Diesel engine

5. Earth mover

6. Tractor segment

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 48


2.4 Price Mix:

Price is the only element of marketing mix that produces revenue. So we can say that
price is one of the most important element determining company’s market share and
profitability.

When it comes to setting up the price, it is the most crucial decision. Price decides the
market share and profitability. So any mistake in deciding price will affect too much to
unit.

AMUL Ind. Follows pricing policy as mention below:-

Cost Oriented Pricing:

It is the simplest method for price. It also says as cost plus & target pricing. AMUL
Ind. keeps the following point in mind while deciding on cost base.

1. Raw material

2. Machining cost

3. Nut bush charges

4. Packing cost

5. Transportation cost

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 49


6. Other cost.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 50


2.5 Channel Management

According to Bucklin, “A channel of distribution shall be considered to comprise a set


of institution which performs all of the activities utilized to move a product and its title
from production to consumption.”

When producer relinquishes some control over how and to when products are sold to
marketing intermediaries, it is said to be the channel of distribution.

AMUL Ind. is mainly concern in manufacturing of automobile parts so there is no


requirement of door-to-door marketing. Here AMUL Ind follow business To business
marketing means they use zero level system.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 51


2.6 Promotion Mix:

AMUL Ind. promotion is combination of two strategies i.e.

A. Sales Promotion:

Definition:

To communicate with individuals, groups or organizations to directly or indirectly


facilitate exchanges by informing and persuading one or more audiences to accept an
organization's products.

Objectives to be achieved by the AMUL Ind. through sales promotion are:

1. To stimulate the buyer for purchasing the product.


2. To consider the type of market, competitive condition of market.

With the help of various auto fair AMUL Ind. make sales promotion.

B. Advertising:

In the present period of business management, advertising is the most important media
to stay in the market. To earn profitability in business it is very necessary to advertise
our product of doing its publicity. Through advertisement one can differentiate its
product from the product of the other company.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 52


Advertising is primarily a private enterprise marketing tool; it is used in all countries
of world. Advertising is the cost effective way to disseminate messages, whether it is
to build brand preference for all over the world to motivate developing nation. There
are various advertising media like magazine, newspaper, radio, television, outdoor
display, direct mail, cards, catalogs, aerators, etc.

AMUL Ind. adopts ECMA as their advertising tool.

LIST OF CUSTOMER

1. Tata Motors Ltd.

2. Mahindra & Mahindra Group


(Mumbai, Nagpur, Igatpuri, Zaheerabad)

3. Simpson & Co. Ltd.

4. Eicher Group (Pithampur, Alwar)

5. Same Deutz - Fahr India (P) Ltd.

6. Greaves Cotton Ltd. (Tractor Unit)

7. Swaraj Enginer Ltd.

8. Kirloskar Oil Engines Ltd.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 53


9. Tecumseh Products (India) Ltd.

10. INGERSOLL-RAND (India) Ltd.

11. Lombardini India Pvt. Ltd.

12. Cummins India Ltd.

13. Hero Motors Ltd.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 54


Human Resource Management

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 55


INTRODUCTION:-

Manpower is one of the important aspects to be taken into consideration. If a company


has highly advance technology for the production unit but does not have well skilled
labor to operate the machineries then all the technology is a waste. Even after having
highly advanced technology the unit cannot excel in its production objectives. Human
resource management deals with the human aspect of the organization.

Personnel management is management of man power is being defined by various


experts as follows:

By Adovin Flippo:- “It is basically concerned with two important function is


managerial function, under which planning, organizing, directing, and controlling are
included and also operating function under which procurement development,
compensation integration and separation are included.

Thus in short, it is concerned with the obtaining and maintaining of satisfactory and
satisfied work costs. The main objectives of personnel department are:

1. To select the personnel on need.


2. Effective utilization of personnel in the achievement of organization goals.
3. To safeguard the interest of labor and management by securing the highest
level of mutual understanding and goodwill among those sections in the
company which participate in the manufacturing process?
4. To maintain harmonious relations between workman & management.
5. To sustain & improve work condition so that the employee nay sick to
their jobs for longer period.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 56


Now a day in India, the importance of personnel has been identified and realized and
therefore maximum efforts are being done to develop it and thus Amul has maintained
a separate department having separate nice president.

OBJECTIVE OF HRM:

SOCIATEL OBJECTIVE:

This refers to be ethically and socially responsible to the needs and challenges of the
society while minimizing the negative impact of such demands upon the
organization.

ORGANIZATIONAL OBJETIVE:

This refers to recognize the role of HRM in bringing about organizational


effectiveness. HRM is not an end in itself. I is only a means to assist the origination
with its primary objectives.

FUNCTIONAL OBJECTIVE:

It refers to maintain the department contribution at a level appropriate to the


organization’s needs. Resource are wasted when HRM if it her more or less
sophisticated to suit the organization’s demand.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 57


PERSONAL OBJECTIVE:

It refers to assist the employees in achieving their personal goals, at least in so far as
these goals the individual’s contribution to the organization. Personal objective if the
employees must be met if worker are to be maintained, retained and motivated.

Organization of Personnel Department

AMUL Ind. consists of line and staff type of organization. Personnel Department is
under direct control of senior general Manager who is responsible to managing
director in AMUL Ind. Here the main functions followed by personnel department are:

o To identify the actual requirement of personnel and than fulfilling it with


appropriate and efficient personnel.

o To lay down the recruitment procedure.

o To conduct interview for selection of efficient person.

o To deal with the matter relating to transfer and promotions.

o Wage & Salary administration.

o Job description

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 58


o To maintain the personnel record.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 59


Recruitment, Selection, and Placement:-

Recruitment can be actually defined as “the generation of the application for specific
post” thus it is a searching of prospective candidates, a process of getting potential
employees who are willing to apply for the job in the company.

In India, the skilled employees are not available vary easily, one can not find a right
person at right time, at right place.

When vacancy is found in any of the organization department, the department heads
fills up a requisition form in which all age, duty, every qualification, and experience is
being sent to the personnel department and after it is being approved is being
advertised on the notice board of unit or in newspaper, magazines, etc. while selecting
the means of communication for recruitment emphasizes is given on targeting proper
personnel.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 60


1. Recruitment process.

The requisition of skilled and unskilled personnel is being fulfilled through


advertisement in newspaper or sometimes by personnel recommendation by the
present employee for his relation or by supervisors. Skilled persons are also obtained
through some technical institute like ITI etc.

AMUL Ind. follows step by step process for recruitment of manpower.


First candidate fill up man power acquisition form than personnel manager and
general manager check criteria like qualification, experience etc. and if they satisfy
than they call for personnel interview. Many times they recruit manpower from
database.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 61


In AMUL Ind. same recruitment process follows for helper through
general manager.

3. Selection Procedure for workers.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 62


The company has adopted two methods of selecting the essential workers in the
organization. One of them is to call the candidates for personnel interview and to know
his basic knowledge, attitudes regarding the job and some other basic testing. This is a
kind of preliminary interviews.

In AMUL Ind. for selection of technical staff first they take their practical test and if
they satisfied than company take their feedback and for non-technical staff they check
computer literacy and English fluency.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 63


4. Induction:

Once the candidate is selected, he has to go for the probation (induction) perform,
which is generally for one year. To facilitate the selected candidate to have
introduction with the organization, its structure, behavior, rules, regulation, the
induction period is very necessary. The employee has to fill various forms regarding
PE, EST, etc and is provided with “Induction kit”, containing the information as
above. He is also being given the general idea a responded to his duties, work,
responsibilities, for which he has been selected. The reason behind induction program
is to make the employee well set with new environment speedily.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 64


Training and Development

Training means “Any process by which the aptitude, skill, ability of a person to
perform a specific job can increase”.

AMUL Ind. has given specific importance to training and development program
because,:

o It helps in personnel development, prevention from accident to make healthy


environment, efficient manpower planning to raise in stopped of work.

o It helps in yielding higher productivity with the use of efficiency.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 65


o It also brings acceptability of changes.

The seminar and training program one also held within the campus premises. The
training needs one determined by the departmental needs and the concerned officers.

Development is a related process but can be rather be more important for managerial
level employees, who require much of theoretical knowledge and for a long duration
of period.

Job description:

Job Description is a written documentary outline of the principle facts about individual
jobs. In short, it refers to the data obtained through of the analysis process.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 66


Personnel department of AMUL Ind. describes job as means of giving job related
information and guidance to candidate for which he/she is selected. This is done to
avoided confusion in duties and responsibilities of different employees.

When any candidate is selected at that time information is given to him about his/her
job. This information includes following points.

a) Working condition

b) nature of the job

c) About his/her duties and responsibilities.

d) Relation with the job.

e) Tools and equipments involves in doing job.

f) About superior from whom he/she will have to control and guide.

g) About sub-ordinate to whom he/she will have to control and guide.

In AMUL Ind. there is no policy of following written job description as they don’t feel
it important. Generally it is being performed orally.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 67


Promotion and Transfer Policy

Promotion means to uplift of an employee within the organization and advance him in
the direction of top level. Thus it means to increase in authority, responsibility, status,
salary, etc. in AMUL Ind. there is one specific criteria and system and program to
transfer the person from one job to another higher job. In normal courses employees
are promoted on the basis of seniority and work performance for helper and behavior,
education and work experience for official staff. Their skills and performance within
the organization in job. So here the promoting system is subjective not the objective.
This policy increases the interest and efficiency of the person who is working in the
organization.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 68


Performance Appraisal System

Performance Appraisal is a continuous process where by each employees’


performance is to be assessed and systematically reviewed by his superiors and
guidance given to help the employee to overcome the short coming and increase his
effectiveness in the job. The system is quite equal in various administrative decisions
as selection, training, promotion, transfer, increment, etc. by this way the organization
can make the best use of its manpower.

Purpose of Performance Appraisal at AMUL Ind.:

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 69


a) Evaluation of Performance of work assigned.

b) Plan for training & development need.

c) Determined suitability for promotion

d) Recommendation for salary review.

e) To serve as a controlling/measure.

Wages and Salary Administration

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 70


For a Personnel Department wage administration is the most important decision for the
personnel manager. It has initial relation with job evaluation department. There wage
and salary is the compensation paid to the employees in monitory terms on a record of
their work. In addition to wage and salary, other payment as house allowance is also
paid.

In AMUL Ind. wages & salaries are paid on 7th day of every month. This unit is
making cash payment.

A separate salary call has been maintained to the salary records. The amount of salary
paid depends on the post of the employees.

Provident Fund Scheme

Provident fund is a statutory obligation of cost of the employees by the act. Any
employee who has 120 days of continues job, a financial scrutiny on the part of
employees, after retirement from job. It is applicable to the unit which engaged more
than 50 employers within its organization.
As par company act 1956, AMUL Ind. also provides facility of Provident fund to their
Employee.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 71


Grievance Handling Procedures:

“Complains affecting one or more individual workers in respect of their wages,


payment, overtime, leave, promotion, work assignment, working condition and
interpretation of service agreement with constitute grievance.”

According to Amul it is our best policy that in our organization grievances are
never happened. If this type of situation occur in organization we can solved it within
our four walls.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 72


Trade Union

Trade union is a completely voluntary association. It tries to improve relationship


between employees and management.

There is no trade union available in AMUL Ind.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 73


N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 74
Personnel Record:

In Amul personnel department maintains personal file of each employees of the


company. In this file necessary details regarding the person are kept at Amul has
introduces a modern method of keeping records of personnel. The data regarding the
details of each employee is fed into the computer and stored, but in case it gets deleted
then Amul also maintains hard copy, the file is being kept under the control of
personnel department in the following sequence.

1) Name of Employee

2) Employee Number

3) Designation

4) Department

5) Permanent and Local address

6) Application form

7) Interview letter

8) Appointment letter

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 75


9) Medical fitness certificate, qualification and experience

10) Background and other personal information like birthday


etc.

Purpose of maintaining personnel records:

a) To supply the information required by government agencies.

b) To conduct research in the field of industrial relation.

c) To enable personnel manager to propose training and development


programmers.

d) To review and revise scale.

Personnel Policy:

a) To select proper personnel on need bases and its effectiveness utilization in


achieving goals.

b) To safeguard the interest of labor and management by searching the highest


level of mutual understanding

c) To advice and assist for high moral and better human values by sustaining and
improving the conditions which has been established so that employees may
stick their jobs a longer period.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 76


d) To maintain harmonious relation between workman and management

e) To enable employees to enjoy a life through active participation in the


recreation activities.

f) To fulfill legal compliance in time and maintain good relation with government
authorities, other agencies and local bodies to enrich companies vision and
mission.

Employee Welfare:

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 77


The profitability and productivity of any organization depends upon the industrial
relation, who means the extent of relation between administers and employees of the
unit.

The management of AMUL Ind. wishes to inside employee to his organization and
also they provide many benefits to the employees which are as under.

AMUL Ind. Possesses good industrial relations. All the employees are quite satisfied
with wage rate and other facilities offered by the organization. The unit provides the
beneficial activities to each of the employees and his family member as mentioned.

A. Medical Facilities:

AMUL Ind. has Tie up with one private hospital and when any employee is sick and
injured, goes to hospital and gets the necessary treatment.

In case of accident, the company pays the full expenditure, incurred for the treatment
of workers. The accident was occurred within the organization, while performing duty
then the workers will get salary too for the days of rest advised by the doctors.

B. Leave facility:

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 78


a. Festival Leave: All the employees and staff get festival leave.

b. Sick Leave: The unit grants sick leave to the employees. He can take
leave for 20 days and time during a year.

c. Casual Leave: Amul procure 2 days as a casual leave.

C. canteens Facility:

a. Canteens facility is provided to office staff people.

b. Three time tea provided for all the worker per day.

D. Other Facility:

a. .Education facility to employee family.

b. Entertainment Facility.

c. Festival celebration.

d. Tour.

e. Yoga classes

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 79


FINANCE
DEPARTMENT

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 80


4.1 Introduction:

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 81


It is said, “Finance is the arms and legs of business “. A potential and capable
management can run the department very effectively. In finance department each
and every decision should be taken in such way that every pie of money should be
utilized in adequate manner.

In AMUL the finance department is handling by two managers. One is account


manager and other is finance manager under control of M.D.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 82


4.2 Organization of Finance & Account Department:

Finance department

Account manag Finance manager

Assi. Staff Assi. Staff

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 83


4.3 Financial Planning:

Financial Planning means planning of finance. In the planning of finance not only
planning is done for spending the money but also planning is done for finding and
evaluating source of finance.

As per Government rules and regulations AMUL Ind. has the financial year from April
to March and on that basis at the year, Balance sheet is prepared and net profit is find
out.

Finance Department of AMUL Ind. explains financial planning as systematic


arrangement of financial resources of the company in order to reach the current &
future finance requirement. It consists of budgetary control, profitability planning,
sales & cash budgeting.

Sources of funds in AMUL Ind. are:

1. INTERNAL SOURCE:

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 84


Share capital
Reserves & surplus.

2. EXTERNAL SOURCE:

Secured Loans
Unsecured Loans

It is tried to collect the fund at very cheap rates & utilized in the best possible manner.
For best utilization of funds, AMUL prepares two types of plan. Two are as below:

A. SHORT TERM PLANNING

Financial planning is done for less than once in a year, so it is known as short-term
planning.

AMUL does it annual planning and quarterly basis they compare actual result with
standard which predetermined and than find deviation and try to solve for it by many
ways like.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 85


1. Increase production capacity to increase sales.

2. Control on rejection.

3. Control of idle machine.

4. To improve the market condition.

B. LONG TERM PLANNING

Planning done for more than one year then it is called long term planning.

Amul’s financial year is April to march so; Amul generally does its long term planning
in the month of April. Amul does its financial planning on yearly, two yearly, and five
yearly.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 86


4.4 Capital Structure:

The capital structure is made of debt and equity securities, which compromises a
firm’s finance of its assets. It is permanent financing of firm, represented by long
term’s debt plus preferred stock plus net worth.

Capital Structure of AMUL Ind. is as:

Particulars Rs.
31-03-2006
(A) Share capital 30,000,000

(B) Reserve & Surplus: 49,224,410

(C) Loans & Funds

Secured loan 154,282,283


Unsecured Loan 122,385,067

TOTAL 355,891,760

Last two years Performance: in Rs.


Particulars 2005 2006

PBDIT 49767480 81705290


Profit before Tax 13161340 34199828

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 87


Profit after Tax 8586767 22023680

AMUL INDUSTRIES PVT.LTD.


BALANCE SHEET

PARTICULARS MARCH’ 06 MARCH’05

1] SOURCE OF FUNDS

a) Shareholder’s funds
Share capital 30,000,000 30,000,000
Reserve funds 49,224,410 27,200,730

b) Loaned funds
Secured Loans 154,282,283 93,241,376
Unsecured Loans 122,385,067 122,517,674
c) Deferred taxes 11,919,945 12,193,721
367,811,705 285,153,501
2] APLICATION OF FUNDS

d) Fixed assets 154,778,101 121,702,865

e) Current assets, Loans &


Advances
Inventories 120,680,587 101,710,154
Sundry Debtors 246,085,757 165,344,604
Cash & Bank balance 4,955,647 4,087,856

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 88


Loan & advances 37,026,723 24,341,018
408,748,714 295,483,632
Less: Current liabilities &
Provisions
Current liabilities 178,524,426 127,032,996
Provisions 17,190,684 5,000,000
195,715,110 132,032,996
Net Working Capital 213,033,604 163,450,636
367,811,705 285,153,501

Amul Industries Pvt. Ltd.


Profit & loss Account as on march 2005-06

PARTICULAR MARCH ’06 MARCH ‘05

[1] INCOME

Gross Sales 878,582,854 633,842,543


Less: Excise duty 98,444,285 79,488,758
Net Sales 780,138,569 555,353,785
OTHER INCOME 1,904,177 2,407,612
STOCK VARIANCE 11,660,029 1,713,13
793,702,775 558,474,534

[2] EXPENDITURE:
Material consumed & 640,701,834 453,261,886
Direct taxes
Personnel expenses 25,045,868 22,781,091

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 89


Adm. & selling expenses 46,247,783 32,664,077
711,997,485 508,707,054
PBDIT 81,705,290 49,767,480
Less: Interest 28,234,339 21,622,087
Depreciation 19,271,123 14,977,957
Miscellaneous 6,096
47,505,462 36,605,140

PBT 34,199,828 13,161,340


Less: Provision for tax
Current tax 11,850,000 2,900,00
Deferred tax (273,776) 1,752,986
FBT 490,684
Short taxation provision 109,240 178,413

NET PROFIT AFTER TAX 22,023,680 8,586,767

Balance brought forward


from previous year 21,730,544 13,143,777
TOTAL 43,754,224 21,730,544

RATIO ANALYSIS:

[1] GROSS PROFIT RATIO:

The ratio establish relationship of gross profit with sales to measures

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 90


the operating efficiency to the firm and to reflect its pricing policy
The gross profit by sales.

Gross profit ratio of 2005-06 Gross profit ratio of 2004-05

gross profit gross profit


Net sales Net sales

81705290 49767480
780138569 555353785
10.473177 8.9614011

A high ratio is an indication of good management. A relatively low ratio is


Indication of lower profitability.

Amul industries pvt. Ltd. Was the sufficient gross profit ratio

[2] NET PROFIT RATIO:

The Ratio measures the relationship between net profit and net sales
of the firms obtained through divided by the net profit by net sales. It indicates the
proportion of the net profit after deducting all the expenses including tax

Net profit Ratio of 2005-06 Net profit Ratio of 2004-56

Net profit Net profit

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 91


Net Sales Net Sales

22023680 8586767
780138569 555353785

=2.8230472 =1.5461796

The net profit margin indicates the management abilities to insufficient


Profit to sales. A high ratio ensures adequate return to owner and also enables firms
To with stand adverse economic condition.
In Amul Idustries Pvt. Ltd. They have low ratio of the net profit, So we can
say that there highly direct expenses due to this expenses their net profit ratio was
Very low.

[3] DEBTOR TURN OVER RATIO

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 92


The debtor turnover ratio indicates the number of times or the leverage that
debtors turnover ech year. The debtor turnover canbe calculated by deviding total
sales by the year and balances of debtors.

Debtor turnover ratio of 2005-06 Debtor turnover ratio of 2004-05

Sundry
Debtor X 360 Sundry Debtor X 360
Total sales Total sales

246085757 X 360 165344604 X 360


878582854 633842543

=100.83383 days =93.909849 days

[4] CURRENT
RATIO

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 93


The current ratio express relationship between current assets and current
liabilities and can be calculated y dividing current assets by current liabilities

Current Ratio of 05-06 Current Ratio of 04-05

Current assets Current assets


Current liabilities Current liabilities

408748714 295483632
195715110 132032996

2.0884883 2.2379529

The current asset ratio measures the short term solvency of the firm.
In a sound business the current ratio is considered ideal as a one. If currentratio is
lower than short term solvency of the firm is not in a position to meet its current
liablity in time.

In Amul Industries Pvt. Ltd. The current ratio is higher thanthe standard
ratio

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 94


4.6 Management of Fixed Assets:

Fixed assets are the tangible assets, which cannot be turned into cash on short period
of time. Management of fixed assets is the most important decision in the field of
finance for any organization and especially in cement industry, which has its most of
investment in fixed assets.

Company having the following investment in fixed assets:

Particulars Rs. (In Crores)

Building 39151122.17

Furniture & fixture 12731217.53

Land 2943086.10

Plant & machinery 257446920.06

Vehicle 5209067.77

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 95


 Capitalization:

Capitalization refers to the decision regarding the total requirements of the long term
funds. Any imbalance between realization value of assets and total capitalization i.e.
long term funds results is over or under capitalization.

 Over Capitalization:

Over capitalization means real value of shares is higher than book value. It occurs
when the realizable assets are less than the long term funds of the company.

 Under Capitalization:

Under capitalization occurs when the real value of the shares is less than the book
value. It occurs when realizable values of assets are more than the long term fund of
the company.

AMUL is under capitalization this reflect the progressive and healthy stock of the
company.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 96


1.8 Working Capital Management:

 Management of Receivables:

In the present period of the competitive market to increase sales to meet competition it
has become necessary to provide credit facility but it is also essential to receive the
bills as speedily as possible.

Generally AMUL Ind. allows credit for 75 to 120 days.

Management of Inventories:

Primarily executives in production, purchasing and marketing department take


decisions relating to inventories. Usually purchasing shapes Raw material policies &
production department, work in progress is influenced by decision of production
department and the production & marketing department executives shape finished
goods policies. The finance manager has the responsibility to ensure that inventories
are properly monitored and controlled.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 97


FINDINGS

My visit to AMUL Industries Pvt. Ltd. has become the one memorable thing and as
well as useful also .I never forget it and I really feels that AMUL Industries Pvt. Ltd. is
the NO.-1 Connecting rod manufacturing company in India. This training helps me a
lot to get the practical knowledge of the organization. Every people peon to manager
helps me to know me to know the company and also help in prepare the project. It was
a nice experience and I never forgot it.

From the study of the company AMUL Industries Pvt. Ltd. we


can say that the future of the company is bright. It is not new comer in the market at
present. That why market share of company is very good comparing to the other auto
ancillary manufacturer. If they are providing good & more facilities to the consumers
continuously then the consumer can be easily attracted & they are able to get
additional market share of auto ancillary industry.

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 98


So here we can say that Amul industries Pvt. Ltd. Is an enterprise which expanded
very well. If we show the success story of Amul than we can know the what they
achieved and how they achieved. Their success story describes their effort. Amul
started their business in 1988 with only Rs.1 lack as a partnership and today it is
working as a Private limited company as a market leader of connecting rod
manufacturing company.

BIBLIOGRAPHY

A. Reference Books:

o Production Operation Management: By S. N. Charry

o Finance Management: By Khan and Jain

o Human Resource Management: By C.B. Memoria

o Marketing Management: By Phillip kotler

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 99


B. Internet:

1. www.amulind.com
2. www.google.com
3. www.chacha.com
4. www.mahalo.com

N.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES 100

Vous aimerez peut-être aussi