Indian Rayon 2009-10

Name & Address of the Company

Registered office:Indian Rayon Division Veraval-362226 Junagadh-Veraval Highway, Dist.:- Junagadh Fax no. : - 91-2876-243220 Email: [email protected] Rayon and Caustic Soda Plant Indian Rayon Division Veraval 362 266 Gujarat India Tel: 91-2876-245711 Fax: 91-2876-243220 Email: [email protected]

PRESENT MANAGING BODY Promoter

: Mr. Morarjibhai

Managing Director

: Dr. Bharat K. Shing

Managing Group

: Aditya Birla Group

Board of Directors

: Mr. Kumar Manglam Birla, Chairman : Mrs. Rajashree Birla : Mr. H.J. Vaidya : Mr. B.L. Shah : Mr. P. Murari

: Mr. B.R. Gupta : Ms. Tarjani Vakil : Mr. S.C. Bhargava : Mr. G.P. Gupta : Dr. Rakesh Jain : Mr. K.K. Maheshwari : Dr. Bharat K. Singh : Mr. Arun Maira : Mr. Pranab Barua Managing Director

: Dr. Bharat K. Singh

Joint Managing Director

: Dr. Rakesh Jain

Chief Financial Officer

: Mr. Shusil Agarwal

Company Secretary

: Devendra Bhandari

Executive Rayon Division Mr. K.K. Maheshwari

: Business Director (Whole Time director)

Mr. Rahul Mohnot Mr. K.C. Jhanwar

: President : Senior Executive President

Bankers State Bank of India United Bank of India UCO Bank Corporation Bank Canara Bank Punjab National Bank City Bank American Express Bank Ltd. Hongkong & Shanghai Bank Allahabad Bank Standard Chartered Bank HDFC Bank Ltd. Auditors Khimji Kunverji & Co., Mumbai S. R. Batliboi & Co., Mumbai Solicitors Mulla & Mulla And Craigie, Blunt & Caroe, Mumbai

Vision, Mission & Values of the Indian Rayon

1. INTRODUCTION TO YARN INDUSTRY Viscose Filament Yarn (VFY) is made from natural fibers. Fabric made with VFY feels like cotton, drapes, like wool sheaths & clings like stain and has the luster & feel of silk.VFY is used by manufacturers of apparel, saris, Suit linings etc. India is the second largest producer of VFY in the world. Aditya Birla Nuvo Ltd. Has a 28 percent market share. With capacity of 16400 tons per annum (TPA). Aditya Birla Nuvo Ltd. Also account for 33% of VFY exports from India. Continues Spinning yarn (CSY) of 1000tpa. Introduction to Aditya Birla Group. Aditya Birla Group is India’s second largest business house with turnover of Rs. 200 billion assets and 65000 employees in 15 all over several countries and make it India’s first truly multinational conglomerate. Aditya Birla group reaches out to the core sector in India industries integral to the nation growth: Cement Fertilizers Viscose staple department Textiles Petroleum refining Telecommunication Industries chemicals and Financial services Aditya Birla Nuvo Ltd. (previously known as Indian Rayon and industries limited) is 16000 Cr. Multi products and multi-location industrial conglomerate, a part of Aditya Birla Group, organization a long illustrious and magnificent legacy spread over a period of 125 years. The group is consolidating its position under the chairmanship of shri Kumar Managalam Birla taking the aspirations from the legacy of leading industrialist, Late Aditya Vikram Birla. Beyond the Business A Value-based caring corporate citizen the Aditya Birla group inherently lives in the Trusteeship concept of management. Part of the group’s profits is ploughed back into meaningful welfare-driven initiative that makes a qualitative difference to the lives of marginalized people. These activities are carried out under the aegis of the Aditya Birla centre for community initiatives and rural development, which is spearheaded by Mrs. Rajashree Birla. A leading Player

1. The The seco second nd larg largest est pro produc ducer er of vis viscos cose e fila filamen ment t yarn yarn (VFY) (VFY) in Ind India ia. . 2. The The lar large gest st bran brande ded d app appar arel el comp compan any y in in Ind India ia. . 3. The The sec secon ond d lar large gest st prod produc ucer er of carb carbon on blac black k in in Ind India ia. . 4. Life Life insu insuran rance ce joint joint ventu venture, re, Bir Birla la sun lif life e insu insuran rance ce com compan pany y Ltd, Ltd, is India’s second largest private sector insurance company. 5. Insul Insulato ator r join joint t vent venture ure wit with h Birl Birla a NGK NGK ins insul ulato ators rs pvt. pvt. Ltd Ltd. . Is Ind India’ ia’s s largest and word’s third largest producer of insulators. 6. Emer Emergi ging ng play player er in high high grow growth th IT serv servic ices es and and BPO BPO sect sector or. . Capacities of ABNL BUSINESS CAPACITY Visc Viscos ose e fila filame ment nt yar yarn n (VFY (VFY) ) 1640 16400 0 tpa. tpa. Caustic soda 82125 tpa. Carbon black 230,000 mtpa. Flax yarns 15340 spindles Wool combing 8000 tpa. Worsted yarns 25548 spindles Synt Synthe heti tic c yar yarns ns 5720 57208 8 spi spind ndle les s Line Linen/ n/fi fire re reta retard rdan ant t fabr fabric ics/ s/ot othe her r fabr fabric ics s 107 107 loom looms s Insu Insula lato tors rs 3800 38000 0 tpa. tpa. BPO 9089 seats (Source: Fact and Figures of Birla Group Publication)

MILESTONES 2009 Acquired 76 per cent stake in appolo sindhoori, a retail broking company, for Rs. 251.6 crore in February – March – 2009. Acquired balance 50 per cent stake in Birla Sunlife distribution for Rs. 7.6 crore in March 2009. 2008 Promoters infused Rs. 341.3 crore on conversion of 17 lakh warrants and Rs. 377.4 crore as 10 per cent application money on 1.88 crore warrants in march – 2008. 2007 Wholly owned subsidiary "Aditya Birla Insulators Ltd." merged into Aditya Birla Nuvo w.e.f. 1 April 2007 Raised Rs. 777 crore through rights issue of equity shares Brownfield expansion of 60,000 tpa completed at Hi-Tech Carbon, Gummidipundi, taking total capacity to 2, 30,000 tpa 2006 Increased stake from 20.7 per cent to 35.7 per cent in Idea Cellular Limited Acquired Minacs, a leading Canadian BPO company in August 2006 Insulators JV with NGK terminated mutually in November 2006 Caustic soda capacity increased by 65 TPA taking total capacity to 225 tpd 18 mw power plant commissioned in September 2006 in the Rayon division The chlor alkali and chlorine derivatives businesses of Aditya Birla Nuvo, Bihar Caustic and Grasim become a single SBU 2005 Indian Rayon rechristened as Aditya Birla Nuvo

Merger of Indo Gulf Fertilizers Limited and Birla Global Finance Limited with the company, effective from 1 September 2005. By Virtue of the merger, Birla Sun Life Asset Management and Birla Sun Life Distribution, leading players in high growth Asset Management and Wealth Management industry came into the company's fold. Increased stake from 4.3 per cent to 20.7 per cent in Idea Cellular Limited, a company in the high growth telecom sector 2004 Brownfield expansion of 40,000 tpa completed at Hi-Tech Carbon, Gummidipundi, taking total capacity to 1,60,000 tpa 2003 Greentech Environment (Silver) Award 2002-2003 in Chlor-Alkali sector for outstanding achievement in environment Joint venture with NGK of Japan – Birla NGK Insulators Pvt Ltd – launched on 6 February 2003 Entry into business process outsourcing (BPO), with the acquisition of Trans Works, a leading Indian ITES / BPO company 2002 Insulators business hived into a separate subsidiary, effective from 1st August 2002 2001 Life insurance joint venture — Birla Sun Life Insurance Company commences operations in March Indian Rayon acquires PSI Data Systems 2000 Indian Rayon acquires Madura Garments, taking the Aditya Birla Group to the top of the league in the branded apparels sector 1999 Indian Rayon returns surplus cash to shareholders through a buyback

1998 Indian Rayon's cement business transferred to Group Company Grasim, as part of cement business consolidation. Production commences at Hi-Tech Carbon's second carbon black plant at Gummidipundi, Chennai. 1988 Indian Rayon forays into carbon black. Hi-Tech Carbon (Renukoot) goes on stream 1987 Indian Rayon Corporation renamed as Indian Rayon And Industries Limited, to reflect the diversified activities of the company

1984 Indian Rayon enters in cement business. 1981 Jay Shree Insulators' second unit at Halol goes on stream. 1976 Indian Rayon's viscose filament yarn plant at Veraval goes on stream. 1966 The Birla acquire Indian Rayon Corporation Ltd. 1963 Indian Rayon's viscose filament yarn plant at Veraval goes on stream 1956 Indian Rayon Corporation Ltd is incorporated ADITYA BIRLA GROUP COMPANIES COMPANY KEY PRODUCTS /SERVICES 1 GRASIM Viscose staple fiber, cement sponge, iron textiles, exports, software consulting 2 HINDALCO Aluminum 3 INDIAN RAYON Viscose filament yarn, textiles, insulator, carbon black 4 INDO GULF Fertilizers, copper 5 BIRLA GLOBAL FINANCE Financial services 6 HIGI INDUSTRIES Files, casting gases 7 ESSEL MINING Iron and manganese or mining Ferro alloys, HPE woven sacks 8 SHREE DIGVIJAY CEMENT Blended yarns

HISTORY AND DEVELOPMENT OF INDIAN RAYON The late Prime Minister Shree Lal Bahadur Shastri laid the foundation stone of Indian rayon and industries ltd. It was incorporated on the 26th September 1956 under the company act of 1956 and the company was getting the commencement certificate on 13th feb.1958. The inauguration of the company was done or an American ambassador Mr.H.H. Galbreth on 13th April 1963 and on the same day company took its trial production. Shree Morarji Vaidya one of the leading industrialist of Gujarat with a view manufacture viscose filament yarn (VFY) in collaboration with von-kohorn international of USA started this organization. Once a sick company and virtually on the verge of closure was taken over by Shree ADITYA VIKRAM BIRLA in 1966,Who believed consolidation, expansion and diversification, because of his believed and sincerity toward work the company has not only turned around but has also made up strong market position today. By 1975 the JAYSHREE TEXTILES has merged with Indian rayon. The Indian rayon industries

ltd. is public ltd. Company. LOCATION Indian Rayon unit is located at VERAVAL, in approx.185 kms. From Rajkot. The place is 1 land, popularly known as ‘Prabhas Kshetra’, religious radius of approx.5.5kms envelopes and Triveni.

district of Junagadh on NH-8 meter above sea level. The eternal the out ridge of Veraval, which has Lord Somnath Temple, The Bhalka Tirth

INTRODUCTION Production means creation of utilities and entails and procurement and utilization of factors of production, which includes manpower, material, buildings and equipments. Production is fabrication of physical object through use of men, material and equipment. “Production management deals with decision making related with production process, so that the resulting goods or service is produced according to specification, in the amounts and by schedule demanded and at minimum cost.” Production must be operated in an economic and efficient manner because cost of production is vital factor in facing market competition and in ensuring normal profit or return on investment.

INPUTS Material Labors Capital Energy OUTPUTS Product

Services information

PRODUCTION PROCESS

Introduction to company’s product There are 12 units working under INDIAN RAYON (A unit of Aditya Birla Nuvo Ltd.) division of Birla group. Various types of products are producing in each an every unit. Here we are mainly concern with rayon division where total four products are manufactured. These are as under. 1. 2. 3. 4.

VISCOSE FILAMENT RAYON YARN SULPHURIC AC ACID (H (H2SO4) CARBON-DI-SULPHIDE (CS (CS2) ANHYDROUS SODIUTEM SULPHATE

Vital and essential raw material for Viscose filament Rayon Yarn are wood pulp, caustic soda (NaOH) while for the production of sulphuric acid – sulphur, oxygen gas and water are required and super and are required for production of carbon-di-sulphide. There is separate plant for each and every product. The fourth product sodium is a by product. Than use of each product is as under. Use of Rayon Yarn in manufacturing of: 1. 2. 3. 4. 5.

Menthol of gas lanterns. Dress materials and saris, . Elastic tapes. Fancy ncy yar yarn ns and and fin finishi shing fab fabric rics. Warp Warp and and /or /or weft weft for for wea weavi ving ng of suit suitin ing g and and shir shirti ting ng’s ’s Use of sulphuric acid (H2SO4) in:

1. Chem Chemic ical al indu indust stry ry &Agr &Agroo- chem chemic ical al indu indust stry ry. . 2. Paint & Dye industry 3. Medicine industry 4. Rayon industry. Use of carbon-disulphide (CS2): 1. 2. 3. 4.

Glass industry Pharmaceutical in industry Rayon industry Base for Agro gro-che chemic mical indus dustry try Use of Sodium sulphide in:

1. 2. 3.

Glass industry Paper industry Dye industry

Production process of Viscose Filament Yarn # Sources Wood pulp is made of cellulose from the following trees. Eucalyptus (South Africa) Sprell (Canada) Bamboo (India) (A) VISCOSE SECTION The process is carried out in the following stages: Conversion of wood cellulose into alkali cellulose i.e. mixing of wood pulp with NaOH Conversion of alkali cellulose into sodium cellulose xanthenes. Conversion of sodium cellulose xanthenes into viscose solution. Branded as ray one, the VFY is available in more than 400 shades. These include natural whites as well as a wide array of colors, ranging from purest tints through medium tones to vibrant deep shades; Located at Veraval in Gujarat, VFY plant is the first in Aditya Birla Nuvo to be accredited with the ISO 9001 and the ISO 14001 certification. It also has the OHSAS 18001 Life at Indian Rayon. As a part of its backward integrated process, it has an 82125 tones caustic soda plant with membrane cell technology from UDHE gmbh (Germany). Recently Indian Rayon won the top rank award at the national Energy conservation Awards 2006 presented by Ministry of power, of India. (B) SPIN BATH SECTION Spin bath is quality section to spinning rayon yarn. Spin bath is an important constitute for the viscose to be re-generated in to cellulose. The main composition of the spin bath solution acid (H2SO4) and sodium hydroxide (NaOH) other composition is ZnSO4, Na2SO4, temperature etc. Which constitute the spin bath solution and the sodium sulphide (Na2SO4) is receive is a by Sodium sulphide is by product which is requires 22 tones per day. This by product Na2SO4 should be removed from spin bath solution and spin bath solution is transferred to spinning section by total six drums out of which two of them are in old spin bath dept. while other four are in new spin bath dept.

(C) SPINING SECTION In this section viscose solution from viscose section is directly supplied through dye to spinning machine for bright and colored yarn. Merging pump drives fixed amount viscose in one minute depending upon the capacity of the pump. Viscose temperature is around 28 degree centigrade. Spin bath is also following

with high speed from the spin bath section at 56 degree centigrade to spinning section. Viscose coming from heat cons in the contact with spin bath coagulation of viscose which takes place to form yarn of particular denier. (D) AFTER TREATMENT SECTION Raw cake from spinning section is brought to A.T. section in raw cake trucks. Here the raw cakes pass through 20 parts for 19 minutes each. In these 20 parts the different machines are fixed in which the washing, bleaching and draying are done by soft water. Various hydros expected chemicals etc. are used to removed impurities, dust and dirt. Afterward the cakes are dried in the dryer room by the air. (E) TEXTILE SECTION The dry cakes are now dry to wining. The yarn is in the form of consort, and hank time duration of coming depends upon the denier of yarn. The textile departments place where the manufacturing process of rayon yarn comes to an end. Although it comes under production processes but its function is auxiliary and very important in nature.

(F) PACKING SECTION After wining the cones and hank, they are sent to the pacing section where they are visually check by the inspectors a grades are given as per the quality. At present cones are packed in cardboard boxes. Then the cartoons, which are filled by inspection side; helpers, are first brought to the weighting balance where the weight is balance as per the pre-determined standard. After that a computer pacing slip is made having various necessary details. On is paste on cartoon, second is kept inside the cartoon and third is kept for record purpose. After that the cartoon are stepped with Polly propylene type. Finally B.O.P.P. adhesive tape is applied at the joint of top flaps of cartoons. They fully packed and sealed cartoons are sent to bonded stores room (B.S.R.) for sales department to be dispatch. The packing slip is having following details: Name of the parts. Registered trade mark of the company Date of packing Quality grade and weight The color of cones and hanks Denier

PLANT LAYOUT “A good plant layout is one which allows material rapidly and directly for processing. This reaches transport handling, clerical and after costs down per unit, space requirements are minimized and reduce idle machine and idle main time.” Objectives of ideal plant layout (1) Minimization of material handling. (2) Avoidance of industrial accident. (3) Better working conditions for the employees. (4) Effective utilization of resources. (5) Improves the quality of operations (6) Achieves minimum overall cost. IR & IL Co. adopt process layout in his Viscose Filament yarn plant also in caustic soda plant. There is separate department of each process such as viscose dept, spin bath dept, spinning dept, after treatment dept, textile dept and packing dept and raw material, semi finished goods and finished goods are transfer one process to another process by using conveyers, rails, cranes, trucks

SELECTION OF LOCATION There was no regional advancement before the establishment of factory. Veraval region was very much backward in terms of industrial activities. People over here were also socially as well economically backward. So the government decides to develop the area with the establishment of the factory. For this the land cost guarantee an various other incentive like smooth supplement of the water an electricity were also provided by the Govt. up to 1979. From 1979 the company has establishment its own power plant and water supplement from Govt. is still continuing but the company has to pay the water charges as per the Govt. rule. This industry was not paying Octroy duties local Veraval city. A slew of initiatives are underway to improve quality, increase the share of value added products and lower the cost. Technology up gradation is being under taken to improve quality. During FY 2006-07, caustic soda capacity increased by 65 tpd taking total capacity to 225 tpd. New 18mw power plant commissioned in September 2006 in rayon division. Out of VFY capacity expansion by 1000 tap, first phase of capacity enhancement by 400 mtpa has been accomplished in January 2007.

MATERIAL HANDLING “Material handling is the art and science involving the movement, packing and storing of substance in any form.” -- American Handling society Material handling can be defined as “controlling the amount, location, movement and timing of the various commodities used in and produce by the industrial enterprise.” INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) is totally using the automatic process for production, but at certain stage uses equipment for the sifting of raw material. The company use trolley as an equipment for material handling in its viscose section to brought up the wood pulp from the storage department an in after treatment department to put the cakes in washing and knitting. After the last stage of production, the final product sends to the packing section with the help of trolley. Many a times INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) uses • Conveyers • Rails • Crain • Trucks (For the supply of raw material to various departments.) The diesel power house of the INDIAN RAYON (A Unit of Aditya Birla Nuvo ltd.) uses conveyer belts for the supply of coal that is import from Bihar. Where the other raw materials like wood pulp, Sulphuric etc. are brought by land route. I.e. rails and truck to the factory. PURCHASE DEPARTMENT Purchasing function is the heart of any business and it is suppose to be cast goldmine to profits. “The task of purchasing is too related to going to the open market, finding the desire material at the lowest possible price and selecting the supplier to offer minimum prices having required quality of material.” • • • • •

Purchase th the ri right quality of of ma material To pu purchase ri right qu quantity of of ma material To make the the mate ateria rial avail ailabl able at rig right tim time To pu purchase th the material at at right pr price To pu purchase ma material fr from right source

PURCHASE PROCEDURE OF INDIAN RAYON INVENTORY DEPARTMENT Inventory dept. of INDION RAYON (A unit of Aditya Birla Nuvo mounting level method. In this company, inventory control is Any dept. that is in need of any material prepares an indent sent to the purchase dept. of the company. While the placing the purchase order INDIAN RAYON (A Unit of Ltd.) Considers the following factors.

Ltd.) scientific long process. after filing it is Aditya Birla Nuvo

• • • • • • • •

Old rate of the product Lowest bids Reputation of supplier Delivery period Payment terms Technical evolution After sales service Performance guarantee

The above question are comparing on the basis of comparison chart which they prepare with the help of all the information. The decision of purchase is one by the authority. The purchase order is placed on the basis of feasibility. So, we can say that INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) applies integrated material management concept. STORE MANAGEMENT The store dept. of the INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) receives the raw material which was ordered from the supplier. This dept. prepares good receipt note (GRN). One copy of GRN is send to that dept. which has placed an indent. Particular dept. approves the materials and sends requisition to store dept. and collect the material. On the basis of GRN, final invoice is paid Account dept.

INVENTORY CONTROL “Plant maintenance ensures that all production facilities are in serviceable condition at required time, causing no production hold-up, interruption, or loss of individual efficiency for operation.” The objective of plant maintenance is to improve functional reliability of production facility to glorious opportunities. INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) follows word class manufacturing policy (WCM) of plant maintenance, which it has adopted in the recent years. However formally it was using total productive maintenance (TPM) of plant maintenance. Inventory control one of the key factor on the basis of which the company can take, decision on behalf of that the cost can be controlled. If the company having a good control on the inventory than the cost can be controlled more effectively. The inventory control helps the company in forecasting the feature demand of the goods as per the requirement of the production and the market. The commonly used inventory control methods that a company uses are the EOQ and ABC EOQ: - (economic order quantity) In this method the feature demand of the inventory is been identified as per the requirement of the industry, the key focus in this type of inventory control method is the optimum utilization.

ABC: - (always better control) In this type of inventory control method the name itself states the use and potentially which lies in theirs method. In this method the goods are divided in such a way that in response to its use and order and cost as the goods are divided in parts as according to A.B.C.

QUALITY CONTROL “Quality is an asset which may be offered to the potential customer of a product or a service.” It mainly depends upon two factors: 1. product-service design 2. oper operat atin ing g sys syste temm-ma make kes s a prod produc uct/ t/pr prov ovid ides es a ser servi vice ce Quality Policy • • •

We are committed to, Meet Meets s cus custo tome mer‘ r‘s s exp expec ecta tati tion on of of qua quali lity ty an serv servic ices es in prem premiu ium m seg segme ment nt. . Maintain hi high mo morale of of em employees. Use Use eco eco-f -fri rien endl dly y tec techn hnol olog ogy y and and main mainta tain in pol pollu luti tion on free free envi enviro ronm nmen ent. t. Environmental policy

We believe that preservation of environment is essential for the survival of our business, employees, society and surroundings. We shall achieve it with the involvement of our workforce, venders, customers and neighborhood. Major function undertaken by INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) • Regular ch checking of of se set pa parameter. • Checking individual. • Checking abnormally in the process. • High Highli ligh ghti ting ng the the var varia iati tion on fro from m the the set set oper operat atio ion n proc proced edur ure/ e/pa para rame mete ters rs. . TECHNICAL SALES:• Regul gular mar market ket vi visit sits to to me meet con cons sume umers de demand. nd. • Regu Regula lar r com compa pari riso son n of of yar yarn n qua quali lity ty and and phy physi sica cal l pro prope pert rtie ies s of of oth other er manufacturer. • Chec Checki king ng and and sug sugge gest stio ion n to to eli elimi mina nate te mark market et comp compla lain ins. s. IMPROVEMENT CELL: • Analy alysis sis of of bre brea akdo kdown and and sto stoppa ppage of pr proce ocess. • Sugg Sugges esti tion on for for imp impro rove veme ment nt in in exis existi ting ng ope opera rati tion onal al sys syste tem m for for bett better er pla plant nt control. • To carr carry y out out stud study y on on spe speci cifi fic c prob proble lem/ m/ef effe fect ct and and to to sug sugge gest st thei their r ste steps ps. . • To deve develo lop p dif diffe fere rent nt shad shades es/ / pro produ duct ct for for sal sales es prom promot otio ion. n. INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) has receive Occupation Health & Safety Assessment series 18001-1999 (OHSAS) certificate and it is the first company to receive ISO 9002 certificate in Rayon industry in Nation. It has also received 14001 environment certificates. INSPECTION INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) maintains very high standard of

quality. Each and every cone/hank is subjected to visual inspection in order to decide the quality of cone/hank. One operator is inspecting 1400 cones/shift and 1200 cones/shifts of color yarn. After inspection the operator is putting a gummed quality label on every cone. These cones are being wrapped in transparent polythene sheets along with and ungummed quality label.

Production planning and Control System Total Production Management (TPM) Maintenance is the key to zero loss, zero breakdowns, zero accidents, and zero defects. It is in short a Zero-sum philosophy. This concept was put forward by the Japanese Management expert Seiichi Nakajima in his gospel “Introduction to total production Management” in 1984 Yamaguchi works at the Japanese institute of plant management (JIPM). This is a temple of total productive Management (TPM). Yamaguchi is teaching TPM to Indian companies. IR & IC Co. follows eight pillars of total production management (TPM), which is following. (1) (2) (3) (4) (5) (6) (7) (8)

Autonomous Maintenance. Focused Improvement. Planned Maintenance. Quality Maintenance. Education & Training. Mass Production design & initial flow control. Office Improvement. Safety hygiene and environment control.

Total Production Management (TPM)

World Class Manufacturing

The economy is integrated to the global economy and industry is facing global competition. It is therefore, necessary to improve performance so IR & IL co. adopt WCM model to improve performance and fitting with global competition. The following characteristics of WCM are used to fulfill the customer expectations. (1) Products of high quality. (2) Products at the right price. (3) Product with the enhanced features. (4) Product in a wide variety. (5) Products delivered in time, in fact short time. (6) Products delivered with shorter lead times. (7) Flexibility in fulfilling the demand for the product. The above listed performance measures are external to the manufacturing system but are vital for the success of the organization. IR & IL Co. follows WCM excellence model for competitive advantage as we seen in above diagram. WCM POLICY followed by IR&IL Co. To maximize equipment effectiveness Achieve zero breakdowns, zero defects, and zero accident and eco-friendly environment through innovative methods with total involvement of our employees and b continuous up gradation of technology. This will lead us to excellence and perfection in all spheres of management, to be globally. Competitive and preferred choice of customers. WCM Excellence Model for Competitive Advantage

Introduction Personal department is a link between the top management and the workers or we can say it acts like bridge between the employees and employers. It is basically concerned with human relationship within the organization and helps in maintaining smooth relationship between employee and employers. It is the art of getting things done by other people. Manpower is the most important resource among all the resources. Factors such as funs, machineries, technological advancement etc that are require in order to run the organization doesn't have sufficient manpower and suitable managerial personnel and practices. With reference to INDIAN RAYON (A unit of Aditya Birla Nuvo Ltd.) the personnel department of which is divided into i.e. HR & Training and the other one is personnel department. PERSONNEL DEPARTMENT It mainly deals in the process of recruitment of manpower, and acts as a consulting agent between the officers and the workers.

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HR & TRAINING It deals with the staff members of and organization and is accountable to the vice president.

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Organization Structure of Personnel Department

Manpower planning "The process of determining manpower requirements and means for meting those requirements in order to carry out the integrate plan of the organization." -- Coleman

INDIAN RAYON (A unit of Aditya Birla Nuvo Ltd.) uses 'PURTA' which is known as the system of control through budgets and standards in modern cost accounting and management costing. 'PURTA' summaries the objective of the whole organization. All the department that is needed of additional requirement of manpower has to contact the personal dept. which makes the arrangement for the require manpower. Every month the personal dept. issues personal requisition from the dept. and this forecasts its manpower demand of each dept. and this forecasts its manpower demand of each dept. accordingly the requirement is made. In INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.)The workers are divided into three categories.-Permanent, Badly and Temporary. INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.)Man Power Resource Is: Permanent 2144 Badly 785 Staff 533 Total Manpower 3462

Job Description The job description means to give the information and guidance to candidate about his particular job for which he has been selected. INDIAN RAYON (A unit of Aditya Birla Nuvo Ltd.)Started the Job analysis and evaluation (JAE) Initiative across all the businesses with an objective of creating clear documentation of roles and responsibilities, to help to clarify accountabilities and expectation from the jobs. And also facilitate goal setting and performance measurement of all managerial personnel. In INDIAN RAYON (A UNIT OF ADITYA BIRLA NUVO Ltd.) the duties and responsibilities of administrative dept. are collected though job description which is as under: Observation of employees at the time of their work Discussions with departmental head and outside experts. In INDIAN RAYON (A UNIT OF ADITYA BIRLA NUVO Ltd) the employees are categories: CATEGORIES OF EMPLOYEES Total 9 categories - from senior vice president to Assistant CATEGORIES OF WORKERS Total 4 categories - Unskilled, Semiskilled, Skilled, Highly Skilled. MANAGERIAL LEVEL Those personnel that Are selected at this level are being made well converse with their: Nature of job Duties n responsibilities Job summary Position and status Working condition

Recruitment and Selection

RECRUITMENT: "Recruitment is process to discover the sources of manpower to meet the requirement of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of and efficient working force." The recruiting procedure of INDIAN RAYON (A unit of Aditya Birla Nuvo Ltd.) Consists of three segments. • Requirement of Workers • Requi quirem rement ent of of exe exec cutiv tives and and Man Mana ager gerial staff. aff. • Requirement of technical Personnel. So far as INDIAN RAYON (A unit of Aditya Birla Nuvo Ltd.) is concerned the requirement procedure is directly depended upon human forces and is related to the selection of well qualified Personnel's. SELECTION: The selection process is concerned with securing relevant information about an application. INDIAN RAYON (A unit of Aditya Birla Nuvo Ltd.)Recruitment and selection procedure for blue collar force is as per the labor laws. For the recruitment of the labour in the Co. it is essential that he should acquire the certificate of ITI examination. Workers are selected by the concern supervisors and the labour welfare officers. Physical fitness, attitude for work etc. are concerned at the time of selection. With reference to the method, the INDIAN RAYON (A unit of Aditya Birla Nuvo Ltd.) Uses the indirect method more frequently for the recruitment of its employees. Sometimes the INDIAN RAYON (A unit of Aditya Birla Nuvo Ltd.)Also uses the Third Party Method at the time of selection of high level personnel like General Manager, Secretary and vice-president.

Recruitment and Selection Procedure for White Collar Force White collie job refers to the selection of officers and managers. For this purpose the INDIAN RAYON (Aunt of Aditya Birla Nuvo Ltd.) is largely depended upon the fresh candidate and/or the Co. is following the formal selection procedure: • • • • • • •

Application Receipt Employment Test Group Discussions Final Interview Medical Examination Reference checked Orientation

Induction Induction is a technique by which a new employee is rehabilitating into the change surrounding and introduces to the practices, policies and purpose of the organization. INDIAN RAYON (Aunt of Aditya Birla Nuvo Ltd.) doesn’t believe in induction because it believes that it wastage of time and so it doesn't give any importance to the induction

INDIAN RAYON (Aunt of Aditya Birla Nuvo Ltd.) Maintains record of every employee for long term uses and for this purpose the HR Depts. the Co. Prepares separate files for the workers and staff. This reports include the application of the employees, bio-data, salary, increment, etc. This report is maintained to keep the record of each and every employee and which can be referred to whenever any grievance or dispute arises. Personnel Records Personnel Records is a piece of writing or a chart which provides ready information and which preserves evidence for future reference. IR&IL Co. Maintain records of every employee for the long term uses and for this purpose the HR dept. of the Co. prepares separate files for the workers and staff. This report includes application of the employee, bio-data, salary, increment, etc. This report is maintained so as to keep the record of each and every employee and which can be referred to whenever any grievance or dispute arises.

Training & Development Training: "Training is a process of learning a sequence of programmed behavior.” it is a short-term process utilizing a systematic and organizes procedure by which nonmanagerial personnel learn technical knowledge and skill of definite process. Training for the workers The HR department of INDIAN RAYON (A unit of Aditya Birla Nuvo Ltd.) prepares schedule for training of the workers in order to make them familiar with their task and to develop the job. The main purpose of the company behind imparting training is to make the workers well converse with the new technology. Training for clerk and Technical staff The INDIAN RAYON (Aunt of Aditya Birla Nuvo Ltd.) is not imparting any training course as far as clerical staff is concerned. But the supervisors are trained for: Gaining knowledge of responsibility. ● Cost control and Cost effectiveness ● Knowledge of all disciplinary action ● Development of leadership quality

The other purpose of INDIAN RAYON (A unit of Aditya Birla Nuvo Ltd.)Behind imparting training is: To create awareness among the workers regarding the quality of products and to improve knowledge thereby. ● Enchantment of technical knowledge and various safety measurement techniques. ●To improve the discipline of the workers, good conduct and job responsibility. ●

Executive Development

INDIAN RAYON (Aunt of Aditya Birla Nuvo Ltd.) aims at improving the managerial skills and effectiveness of its every individual through a planned and deliberate profile and process of learning. The Personal & HR Dept. of the Co. arranges various conferences and invites guests and other executive from its different units to audit the organization and to impart training to the executives. On the contrary the officers and the managers of this Co. are also sent to its different units within the country as well as abroad for the exchange of ideas and relate to operation management and also for improvement of this technical knowledge.

Performance Appraisal It is the process of evaluating the performance and qualification of the employees in terms of the requirement of the job, for which he is employed. The main aim of the evaluating system is to identify the performance gap (if any).this gap is the shortfall that occurs when performance doesn't meet the standard set by the organization as acceptable. INDIAN RAYON (Aunt of Aditya Birla Nuvo Ltd.) the management is using the open system of studying performance appraisal system. When a new candidate is recruited management examines his performance for two years which is called as the apprentice period. In this Co. normally three years of period is considered to be qualified period for promotion. At the meanwhile of three years the performance of thru employee is continuously is observed and taken into account while giving promotion. During this period the management prepares the confidential report of the performance and behavior of the candidate. The performance appraisal system adopted by INDIAN RAYON (A unit of Aditya Birla Nuvo Ltd.) is traditional one. It conducts the performance appraisal programmed in the of May every year and all the employees are divided into two categories .i.e. staff members and operating workers.

Time Keeping System Time is precious and responsibility of an make best use of the The company has time

we cannot get the time once passed so it is not only the individuals but only the responsibility of the industries to time. keeping system.

There are 3 shifts at Aditya Birla Nuvo Ltd. They are as under: Shift: (A) 06: 45 AM - 02: 45 PM (B) 02: 45 PM - 10: 45 PM (C) 10: 45 PM - 06: 45 PM General shift

8: 30 AM - 5:30 PM

Lunch break

12:30 PM

- 1: 30 PM

Promotion and Transfer Promotion "A promotion is the transfer of an employee to a job which pays more money or one that carries some proffered status." --Scott and Clothier INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) Have sound personnel policy. The policy is a blend of seniority and merit consideration stressing more emphasis on seniority. And employee is promoted considering his ability to deal with the problems occurs among the subordinates and seniors as well as level of proficiency, loyalty, etc. Promotion is given after every 3 or 4 years on the basis of disciplinary action and by performance appraisal system. Employees are promoted within the organization in term of vacancies or creation of new post .INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) Adopts to take the advance of the employees, one very well aware of companies policy and production procedures in term to motivate them. Transfer " A lateral shift causing movement of individuals from one position to another usually without involving any marked change in duties, responsibilities, skilled needed or compensation." INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) runs various units located at different places within the country, yet under this unit transfer practice are not followed. Sometimes some workers are transferred from one department to another because of physical fitness problem. Absenteeism

Absenteeism is the total man shifts lost because of absence as a percentage of the total number of man shifts scheduled to work. IR&IL Co.’s personnel department is very alert about absenteeism in company. The Time Office Department of the Co. which comes under Personnel dept. keeps the records of the daily presence and absents and accordingly the wage sheets of the employees are prepared. The Time Office of the Co. keeps records of two types of absenteeism – one which is called as authorized leave and the other one unauthorized leave. In the month May the percentage ratio of absenteeism is more and so the overtime wage bill of the employee increases. Role of Human Resource Development The HRD department of the IR&IL Co. undertakes training programs in various sectors: • Development of of ef effective co communication • Managerial as assessment of of pr proficiency • Relationship management • Managerial ef effectiveness • Leadership de development • Team building • Time management, etc.

Trade Union “A Trade union is a continuous association of wage earners for the purpose maintaining or improving the conditions of their working force” – Webb Nature of Trade Union (1) (1) A com combi bina nati tion on of work worker ers s or or emp emplo loye yees es. . (2) (2) Comb Combin inat atio ion n coul could d be per perma mane nent nt or or temp tempor orar ary. y. (3) To regul regulate ate rel relati ation on among among workm workmen, en, and emp employ loyers ers. . In IR&IL Co. there are more than 4000 employees in the organization and for the state of the protection of their rights that have formed their trade union. Presently there are three trade unions. 1. India dian Ray Rayon on Emplo mploy yee Uni Unio on (IR (IRE EU) 2. Indi Indian an Rayo Rayon n Karm Karmac acha hari ri Mand Mandal al (IRK (IRKM) M) Which is associated with the Hind Mazdoor Sabha Karmachari Mandal? 3. Rayon Mazdoor Sangh (RMS) This is associated with Bhartiya Mazdoor Sangh Not only the workers are the member of trade union but the staff employees have also got the membership of trade union. The strength of IREU is about 60% of total working force, the rest of two uses to follow the decision and negotiations made by the IREU. The advantage of registered trade union is that police can’t arrest any

representative of trade union. relation with trade union. Industrial Relation

Henceforth company has been keeping a good

“Industrial relation is the part of management which is concerned with the manpower of the enterprise whether machine operator skilled workers or managers” – Bethel Smith. Industrial Relation covers the following areas (1) Colle llecti ctive Barga rgaini ining. (2) (2) Role Role of of Mana Manage geme ment nt uni union ons s and and gove govern rnme ment nt. . (3) Machi Machiner nery y for for res resolu olutio tion n of of ind indivi ividua dual l disp dispute utes. s. (4) Indiv Individu idual al griev grievanc ance e and dis discip ciplin linary ary poli policy cy and and practi practice. ce. (5) Labour le legislation. (6) (6) Indu Indust stri rial al rel relat atio ions ns tra train inin ing. g. As it is useful for the organization, the IR&IL Co. has also developed good and appreciable industrial relation. There 1. 2. 3.

exist three Trade Unions all over the unit that are: Indian Rayon Employee Union Rayon Mazdoor Sangh Indian Rayon Karmachari

The last major strike in this unit was in 2001 after that no strike has been occurred till now. This strike was settled down by the Memorandum of Settlement which was made by the Co. along with the Labor Union. The strike was basically in reference to the wage payment of the worker and bonus. Grievance Handling “Grievance is a written complaint filed by an employee and claiming unfair treatment” - Dale Yoder. “Any real or imagined feeling of personal injustice which an employee has concerning his employment relationship”

Keith Davis. Course of Grievance (1) Concerning wages. (2) Conce ncerni rning su super pervis vision. on. (3) (3) Conc Concer erni ning ng wor worki king ng con condi diti tion ons. s. (4) Colle llecti ctive barga rgaini ining. To handle and solve such grievance the IR&IL Co. have special Procedure; like wise 1. In IR&IL IR&IL Co. Co. the the work workman man wil will l take take his his grie grievan vance ce in ora oral l or or writt written en to his immediate superior, such as section head. In case if the complaint is against the immediate supervisor it should be written and submitted to the next higher authority. 2. If the the deci decisi sion on of his immed immediat iate e supe superio rior r on on the the nex next t high higher er aut author hority ity is not satisfactory, he has to forward to the manager of the department. 3. The The mana managem gement ent bring brings s out out the sit situat uatio ion n to the griev grievan ance ce shi shift ft if the workers are not satisfied. Or reply is not received within seven working days. If the solution is satisfactory the copy of it is forwarded to grievance

committee, otherwise the matter will be included in the agenda for discussion at the next meeting of the grievance committee. Employees Services & Welfare Activities & Amenities To motivate the employees and to increase their morals it becomes very necessary for every company to perform the activities which can be helpful in the achievement of this motive and there by the efficiency and satisfaction of the employee can be raised accordingly. In this regard IR&IL Co. provides the following facilities: QUARTERS FACILITLY: The IR&IL Co. gives quarter facilities to its employees – the staff as well all as the workers. Basically this quarter a facility is given on the basis of the category of employee. The management staff and the executive level employees are also given the housing facility but it would be with some extra and specific facilities. IR&IL Co. has provided these facilities to almost 90% or its staff level employees. RECREATIONAL AND ENTERTAINMENT FACILITY: The company has its won auditorium in which it conducts different types of programs and games on different type of occasions especially for its staff members. It also provides many type of sports facility to its workers. There are lawn tennis courts, table tennis, cricket grounds, etc. It has competitive players units in its cricket team. WELFARE CENTER: The centre was established in 1993 for the benefit of workmen and their families. The facility includes games like volley ball, tennis, carom, chess, reading room and library. For ladies embroidery and tailoring classes are conducted as a continuous activity. INDEPENDENCE AND REPUBLIC DAY CELEBRATION: The company celebrates the Independent & Republic Day every year. On this day the program of the national flag hosting is followed by sweet distribution to all the employees of the company. CREDIT COOPERTIVE SOCIETY: Members are given loan facility up to and amount of Rs. 60000 at the nominal interest rate. This is managed by cooperative society. DEATH RELIEF FUND: In case of death of any employee while working in the company, management provides his family with Rs. 4000 as funeral expenses. The company also deducts Rs 10 of all the employees and collects about Rs. 50000 and provides to the dead person’s family. And the company itself also gives Rs 1400 along with the amount received from United India Insurance Company. SCHOOL FACILITY: It has set up a school both English Medium as well as Hindi Medium. English Med. Is up to 12th standard having both Science and Commerce stream and affiliated with Gujarat Board (GSEB). Every year 2000 approx. number of students is admitted over here out of which more than 50% of the students are employees’ children. Where as Hindi Med. School has been set up four years back. It is the only Hindi Me. School in the entire district. It is upgraded by one standard every year. 50% of the school fee is reimbursed by the company of the employees children.

LIBRARY FACILITY: Company is having its own library which contains useful books related to all the sectors of the study and magazines of all kinds. It also provides internet facility to its employees. LABOUR WELFARE FACILITY: Welfare activities are one of the major activity, which is closely related with IR&IL Co. The company is doing various types of welfare activities. CANTEEN FACILITY: The company has followed the Factories Act that reveals that wherever there are 250 or more workers working, there should be a canteen facility for them. This canteen facility runs on no profit any loss bases. It provides snacks, tea and coffee at nominal rate to the employees. FIRST AID FACILITY: IR&IL Co. had its own dispensary in the factory, besides first aid box, which is being provided in every dept. The dispensary is taking nominal fee from the employee and its family. The co. had its own Ambulance too.

INTRODUCTION Financial management can be defined as: The management of the finance of a business/organization in order to achieve financial objective. Taking a commercial business as the most common organizational structure, the key objectives of financial management would be to: • • •

Create wealth of the business. Generate cash, and Provi ovide an adequ equate ate ret return urn on inve nvestm stment. nt.

There are three key elements to the process of financial management. 1. FINANCIAL PLANNING. Management to need to ensure that enough funding is available at the right time to meet the need of the business. In the short term, funding may be needed to invest in equipment and stock, pay employees a fund sales made on credit. 2. FINANCIAL CONTROL: Financial control is a critically important activity to the help the business ensures that the business is meeting its objectives. 3. FINANCIAL DECISION- MAKING A key financing decision is weather profits earned by the business should be retained rather than distributed to shareholders via dividends. If dividends are too high, the business may be starved of funding to reinvest in growing revenues and profit further. There are three major decisions. (1) INVESTMENT DECISION Investment decision related to the selection of assets in which funds will be invested by the firm. The assets that can be acquired fall in two category (I) Long term assets, which yield return over period of time in future (II) Short term assets, which are convertible into cash within a year. This includes, (1) Capital bu budgeting (2) (2) Work Workin ing g capi capita tal l Man Manag agem emen ent. t. (2) FINANCE DECISION Finance decision is generally concerned with financing mix or capital structure or leverage. It is generally a decision made on the composition of capital with reference to equity share and debt.

(3) DIVIDEND DECISION Dividend decision is generally related to distribution of dividend. Two alternatives are available in dealing with the profits of a firm. They can be distributed to the share holders as dividend as they can be retained in business itself. The decision as to which course should be followed depends largely on a significant element in dividend decision i.e. decide the dividend payout ratio (D/P ratio).

ORGANIZATION STRUCTURE

CAPITAL STRUCTURE Capital structure may be defined as the combination of debt and equity that lead to the maximum value of the firm. “Capital structure refers to the mix of long-term sources of funds such as debenture, long-term debt, preference share capital and equity share capital including reserve & surplus. The company should planed and get optimum capital structure.”

PARTICUL PART ICULARS ARS (RS. I IN N CRORES) CRORES) 2008-09 2007-08 Share Capital 95.01 95.01 Reserves & Surplus 5396.50 3510.45 Secured Loans 5033.10 4463.50 Unsecured Lo Loans 3860.90 2184.40 Preferen Pref erence ce shar share e capi capital tal 25.50 25.5 0 50.0 50.00 0 Source: Annual Report of year 2008-09

Share Capital of the INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) has increase by 0% as compared to previous year. Company has also increase reserves & surplus, secured loans, unsecured loans respectively, 53%, 12.50%, and 76.71% as compare to the previous year.

Capitalization From accounting point of view “capitalization means accumulated funds which have been invested for same business purpose to earn quite of return” For the Co. the Book value and Real value of Share are two main components or assessment of Co. financial position which can be calculated as per under. YEAR WISE EPS RS. IN CRORES 2008-08 (45.73) 2007-08 15.95 2006-07 31.98 2005-06 2005 -06 26.1 26.11 1 2004-05 19.00 2003-04 18.59 2002-03 20.71 2001-02 7.04 2000-01 11.44 1999-00 9.62

Book value per share is Rs. 578.05 Book value

Equity share Capital + reserves & surplus No. of Equity Shares (%) =

95.01 + 5396.50 9.5 = 578.05 Rs.

There are three conditions of the company in term of the capitalization are as follows. (1) FAIR CAPITALIZATION – It is received when earning of the unit is same to the capital employed. Earning = Capital Employed - And book value of a safe is also equal to the real assets. Book Value = Real value (2) Under Capitalization - It is found when earning is more than capital employed. EARNING > CAPITAL EMPLOYED - In this case book values of assets of the firm are less than the real value. BOOK VALUE < REAL VALUE (3) Over Capitalization - It is found when earning is less than the capital employed. EARNING < CAPITAL EMPLOYED - In this case book values of the assets of the firm are more than the real value. BOOK VALUE > REAL VALUE The closing market price of the Co. per share is Rs 399.25 as on march-08 which is greater than its book value per share. From this we can say that Co. is facing under capitalization. The above graph depicts that the Co’s earning per share has increased by 10.83% as compared to its previous year. The reason for the increase in the value of Co. is Increase in sales and profit. Increase in price of yarn. Leverage The employment of and asset or source of funds for which the firm has to pay a fixed cost or fixed return is termed as Leverage. There are two types of leverages: • Operating Leverage • Financial Leverage. FINANCIAL LEVERAGE: The leverage associated with financial activities is called Financial Leverage. It represents the relationship between the firms’ earnings before interest and taxes and the earning available for ordinary shareholders. It is defined as the ability of firm to use fixed financial charges to magnify the effects of change in EBIT on EPS IR&IL Co. has posted a superior financial performance during the year 2008-09. The revenue has grown to 13643.19 Crores against 11861.11 Crores in the previous year. Financial Leverage = EBIT EBT = 419.71 162.30 = 2.59 % OEPRATING LEVERAGE The leverage associated with the investment (asset acquisition) activities is referred to as Operating Leverage. It is determined by the relationship between

the firm’s sales revenue and its earnings before interest and tax (EBIT). Operating leverage results from the existence of fixed operating expenses in the firm’s income stream. With fixed cost the percentage change in profit accompanying a change in volume is greater than percentage change in fixed asset.

Working Capital Working capital concerned with the Management of current assets. It is important and integral part of financial management as short-term survival is prerequisite for long term success. Concept of working capital (1) Gross working capital It refers to the firm’s investment in current assets. Current assets are the assets which can be converted into cash within an accounting year or operating cycle. (2) Net working capital It refers to the difference between current assets and current liabilities. Positive new working capitals arise when current assets exceed current liabilities. It is negative in case of current liabilities are in excess of current assets. Working capital management consists of three main aspects (1) Inventory Management. (2) Receivable Management. (3) Cash Management.

The divisional management of IR&IL Co. manages the working capital within the

broad framework laid by and with consultation of Corporation Finance Division (CFD). Decision regarding the utilization of the current assets is made in accordance with the policy of company. The operating cycle can be said to be at eh heart of the need for working capital.

Inventory management “Inventory refers to the stockpile of the products a firm is offering for sale and the components that make up the product.” The IR&IL Co. is the manufacturing organization, so being manufacturing organization it needs a large among of the inventories for the smoothing of business operation. The Co. invests nearly 48 to 50 percent of total current assets in the inventories. In the IR&IL Co. the inventory is maintain by finding the actual requirement and the analyzing material, which is scared or not easily meet at the proper time. Then after the Co. decides the optimum level for each inventory based on the requirement. But because Co. has a good image to the supplier, it maintains the three days stock inventories for most of the goods even though the industry standard is seven days.

In IR&IL Co. there is a special storage dept. and separate inventory management force which perform certain functions for efficient management of inventories in the company. It maintains sufficient stock of raw materials in period of short supply and anticipates price change. It helps sales dept. by maintaining sufficient finished goods inventories for smooth sales operation. The company is maintaining proper records of inventory. No material discrepancies have been noticed on physical verification of stocks as compared to book records.

Inventory Turnover Ratio = Inventory

Net Sales =

13643.19

747.60 = 18.25 Times Cost of inventory is compared on a weighted average or FIFO basis. For the inventories of stores and spares the organization uses the Music 3D system (Multi Unit Selective Inventory Control) of inventory management.

Cash Management Generally any organization holds the cash for Transaction motive, Precaution motive, Speculative motive, Compensating motive. The IR&IL Co. holds the cash only for the transaction motive. It holds the cash for smoothing the day-to-day operation only. If there is surplus of cash in the Co., it is transferred to the CFD while if there is deficit of the cash in the organization, it borrows it from the CFD and also decision regarding the investment of cash in to Marketable Security is done through the CFD only.

CASH COLLECTION IR&IL Co. operating in various geographical area of the country. It tries to speed up the cash collection by decentralization with the help of ten ash

collection centers all over the India. The disbursement is one through centralized system by the organization. The payment of the bill will be made from the central account (at division place) and form the head office. So the Co. can enjoy the transit time delay using the factoring.

OPTIMUM CASH BALANCE The IR&IL Co. keeps a maximum level of cash balance worth and average payment for three days. If cash is more than its maximum level than the cash if transferred to the CFD and if cash is less than the level than the requirement of the cash is borrowed from the CFD. IR&IL Co. manages it’s in a manner that enables the firm to remain in liquidity position at its best. The company has no accumulated losses at the end of the financial year and it has not incurred any cash losses in the current or in the immediately preceding financial year.

Dividend Distribution Dividend refers to that portion of a firm’s Net Earnings which are paid out to the Shareholders. A major decision of financial management is the dividend decision in the sense that the firm has to choose between distributing the profits to the shareholders and plugging them back into the business. In IR & IL Co. the board proposed the dividend of Rs. 4.00 per share for the year 2005-06. It is same as compared to previous year. Dividend payout ratio of 2005-06 is increase 3.44% as compared to previous year. YEAR

DIVIDEND Per Share 2008-09 4.0 2007-08 5.8

Payout (%) 31.0 26.3

2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00 1998-99

5.5 5.0 4.0 4.0 3.8 3.3 3.0 1.0 4.0

26.0 25.5 24.1 20.6 24.0 45.5 28.9 2.8 28.3

Profitability Ratio The profitability ratios are calculated to measure the operation efficiency of the company. Besides Management of the company, creditors and owners are interested in the profitability of the firm creditors want to get interest and payment of principal regularly. Owners want to get a required rate of return on their investment. This is possible when company earn enough profit. (1) (1) (2) (2)

Generally two major types of profitability ratios are: Prof Profit itab abil ilit ity y in rela relati tion on to sale sales. s. Prof Profit itab abil ilit ity y in rel relat atio ion n to inv inves estm tmen ent. t.

(1) ROI (Return on Investment) EBIT ROI=

* 100 Capital Employed

YEAR

EBIT

2007-08 2008-09

CAPITAL EMPLOYED RATIO (%) 492.85 419.71

6686.16 8521.46

7.37 4.93

(2) ROE (Return on Equity) EBIT ROE= YEAR

* 100 Equity Funds EBIT

2007-08 2008-09

EQUITY FUNDS 492.85 419.71

RATIO (%)

4032.87 5894.40

12.22 7.12

Balance Sheet 2008-09

Financial year 2008-09 (Rs crore) Balance sheet consolidated 2008-09 2007-08 Sources of funds Shareholders’ funds: Share Shar e capi capital tal 95.01 95.0 1 95.0 95.01 1 Preferen Pref erence ce shar share e capi capital tal 25.50 25.5 0 50.0 50.00 0 Share warrants 377.41 377.41 Reserves and surplus 5396.50 3,510.45 5894.40 4,032.87 Minority interest 179.20 174.41 Loan funds: Secured loans 5033.10 4463.46 Unsecured loans 3860.90 2184.40 8894.00 6,647.86 Deferred tax liabilities 214.00 226.19 Policyholders funds 8596.90 6,484.67 Fund for future appropriation 129.00 25.88 Tota Total l fund funds s empl employ oyed ed 2390 23907. 7.50 50 17,5 17,591 91.8 .88 8 Application of funds Fixed assets Goodw oodwi ill on conso nsolidat idati ion 3422. 22.60 2571. 571.0 04 Net block 3653.20 2533.44 Capital work-in-progress 128.80 70.70 6665.80 5,447.80 Investments 11082.40 7320.10 Current assets, loans and advances: Inventories 747.60 776.60 Sundry debtors 887.20 753.20 Cash and bank bala balances nces 89.8 89.80 0 97.2 97.20 0 Intere Int erest st accru accrued ed on inv invest estme ments nts 0.00 0.00 0.2 0.20 0 Loans and advances 532.60 524.00 2257.20 2151.10 Less: current liabilities and provisions Current liabilities 677.00 559.10 Provisio Prov isions ns 96.4 96.40 0 133. 133.50 50 773.50 692.60 Net current assets 2589.80 2,252.80 Tota Total l fund funds s util utiliz ized ed 2390 23907. 7.50 50 17,5 17,591 91.8 .88 8

Introduction Marketing deals with identifying and meeting human and social needs. One of the shortest definition or marketing is “meeting needs profitably.” “A market may be considered as a convenient meeting place where buyers and sellers gather together for exchange of goods and services.” Marketing is a process by which individuals and groups obtain what they need and want by creating and exchanging products and values with others. Marketing is typically seen as the task of creating, promoting and delivering goods and services to consumers and businesses. Marketing people are involve in marketing ten types of entities goods, services, experiences, events, persons, places, properties, organizations, information, ideas. Marketing has often described as “The Art of Selling Products.” INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) at Veraval is producing a product which is used by all manufacturing industries. Hence, all marketing activities are one through centralized system. INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) has its main sales office at Mumbai. But at Veraval it has only dispatch office from where they send product per instruction of Mumbai head office for sales.

ORGANIZATION STRUCTURE

Marketing mix Marketing mix is the set of marketing tools that firm uses to pursue its marketing objectives in the target market. It consists of everything the firm can o to influence the demand for its products. The many possibilities can be collected into 4 groups of variables known as the four Ps i.e. Product Price Place Promotion

PLACE

Channels Coverage Assortments Locations Inventory Transport PRODUCT Product Variety Quality Design Features Brand Name Packaging Sizes

PROMOTION Sales promotion Advertising Sales force Public elation Direct marketing PRICE List Price Discounts Allowance Payment period Credit terms

Chart: 4.1

Product Product mix which is also called as a product assortment is the set of all product items that a particular seller offers for sale. A Co’s product mix has certain

with, length, depth, & consistency. INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) product is VFY but along with it the co. also manufactures some chemicals and by products, which are require for the production of Yarn, and the excess of this product is out in the market. Not only that, INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) is manufacturing the Yarn which is of different colors and different quality – denier wise as per the requirement of the client. INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) main product VFY has certain length in terms of: • Color yarn • Dull yarn • Spunned yarn And it has depth in terms of: • Quality • Denier INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) with includes various other chemicals and by products: • Caustic soda • Sulphuric Acid • NA2SO4 MARKETING OBJECTIVES:• To ha have a highly de delighted cu customer ba base. • To deve develo lop p com commi mitt tted ed, , tar targe get t ori orien ente ted d int inter erna nal l cus custo tome mer r sup suppl plie ier r relationships. • To ens ensur ure e cost cost eff effec ecti tive ve, , prof profit itab able le mar marke keti ting ng ope opera rati tion ons. s. • To maxi maximi mize ze real realiz izat atio ions ns, , thr throu ough gh focu focus s on on dir direc ect t sal sales es and and red reduc uced ed logistics. • To deve develo lop p cus custo tome mer r cen cente tere red, d, prof profit it orie orient nted ed long long term term mark market etin ing g strategies. • To ensu ensure re tran transp spor orta tati tion on of good goods s in in str stric ict t adh adher eren ence ce of safe safety ty and and environmental guidelines. • To ensu ensure re time timely ly Redr Redres esse sed d of of cus custo tome mer r com compl plai aint nts s / grie grieva vanc nce. e. PROCESS TO MEET OBJECTIVES • • • • • • • •

Market en environment an analysis. Customer re requirement ne need ga gap an analysis. Strategic pl planning an and bu budgeting. Production delivery alignment. Systems improvements. Customer satisfaction assessment. Inte Intern rnal al cust custom omer er – sup suppl plie ier r rel relat atio ions nshi hip p ass asses essm smen ent. t. Review mechanism.

ACTION PLANS • • • • • • • • •

Periodic market visits. Stre Streng ngth then enin ing g rela relati tion ons s wit with h buy buyer ers s –di –dire rect ct sale sales. s. Reducing distant sales. Reduc duced cre credit dit da days – enc enco oura uragin ging ca cash sal sale es. Minimizing inventories. Better co co-ordination wi with co co pr producers. Dedicated transporters. Effective ut utilization of of to toner ch charges. Optimize Hydrogen utilization.

Customer support services Product planning and development “Product planning determines the characteristics of the product best meeting the consumers numerous desires, characteristics that a stability, to products and incorporate this characteristics into the finished products. - Johnson Product planning involves three important considerations: 1. 2. 3.

The development and introduction of products. The modification of the existing products. The elimination of unprofitable product.

INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) plans its product design according to the demand of the clients, market situation, price of the product, its competitors. Product Life Cycle A company’s positioning and differentiation strategy must change as the product, Market and competitors change over time. INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) is passing from maturity sate. Hence, this company can make changes in its products and technology by adopting new machines like horizontal spinning machine and pot spinning yarn process. Because of the technology adaptation, absorption and innovation the benefits derive by the INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) are: • Quality im improvement in in ex existing ra range. • Development of of ne new ma market se segment. • Impr Improv ovem emen ent t in in pro proce cess ss, , cos cost t con contr trol ol and and pro produ duct ctiv ivit ity. y. • Improvement energy efficiency. • Reduc ductio tion in impor mport t mat materi erial consu nsumpt mption. on.

New Product Development New product development shapes the company’s future. Given the rapid changes in tastes, technology and competition a company can’t rely solely on its existing products. Companies that, fails to develop new products are putting themselves at great risk. Company can a new products though acquisition and development. INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) has made efforts in technology absorption and in specific area that bring: 1. Development in its rayon division, i.e. • Developing new shades of spun ye yarn • Enhan hancem cement ent of sodi odium sulp ulphid hide rec recove overy. • Devel velopm opment ent of new pro produc ducts, i.e. fla flat yarn arn 2. Development in carbon black division. 3. Development in textile division Brand The American Marketing Association defines brand is: “A name, term, sigh, symbol or design or a combination of them, intends to identify the goods or services of one seller and to differentiate them from those competitors.” Thus brand identifies the sellers or makers. With six of the foremost name in the apparels business into its fold, Indian Rayon is today the largest branded apparel Co. in the country. The portfolio includes leading brand names like Louis phillipe, San Frisco, Van Heusen, Allen Solly, Peter England, and Byford - together making Indian Rayon the undisputed Market Leader for branded men’s wear. Packaging It includes the activities of designing and production the container for a product. The container is called the package. In recent years, product safety has also become a major packaging concern. Companies are also realizing the power of good packaging to create instant consumer recognition of the company or brand. Packaging system INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) • Cone Cones s (2 (2 to to 2.1 2.1 kegs kegs each each), ), Bobb Bobbin ins( s(2. 2.5 5 to to 2.7 2.7 kegs kegs each each ), Hank Hanks, s, Cake Cakes s • All wra wrap pped ped in in tra tran nspar parent ent po polyt lythene hene she sheets ets • Each cartoon to contain 24 cones • Best Best log logis isti tic c mana manage geme ment nt to to suit suit the the cli clien ent’ t’s s requ requir irem emen ent t and and ensu ensure re tim timel ely y delivery. Packaging procedure of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) • The The car carto toon ons s whi which ch have have been been fill filled ed by insp inspec ecti tion on side side are are fir first st brou brough ght t to to the weighing balance of packaging of 50 kg and then passed to the computer slip.

• Impo Import rtan ant t det detai ails ls of slip slip are are ste stenc ncil iled ed on the the car carto tons ns in orde order r to to mee meet t excise dept requirement. • Thes These e car carto tons ns are are tha than n rec reche heck cked ed for for wei weigh ght, t, pack packin ing g sli slip p and and sten stenci cili ling ng. . • Afte After r poly polypr prop opyl ylen ene e pack packin ing g cart carton ons s are are tran transp spor orte ted d to stor store e room room for for sal sales es dept. Labeling Seller must label products. The label may be a simple tag attaché to the product or an elaborately design graphic that is part of package. Label performs several functions: 1. It id ident entifi ifies the the pro prod duct ucts or or bra bran nd 2. It grades the product 3. It described the products 4. It also promotes the product. In INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) label carry only the brand name or and information regarding the quality of the yarn as per denier. Pricing Pricing is a key factor, which remarkably effects the sales operations. Price may be defines as “ The value of the product attributes expressed in monetary terms which a consumer pay or is expected to pay in exchange and anticipation of the expected or offered utility.” The firm has to consider many factors in setting its pricing policy: • Pricing objective • Determining demand • Estimating costs • Analyzing co competitors pr prices an and of offers • Pricing methods (selecting) • Selecting final price Price is the only element in the marketing – mix that produces revenue. INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) has not adopted any clear pricing policy but it follows the mixture of following pricing strategy: • Competition oriented pricing policy • Demand oriented pricing policy • Cost oriented pricing policy Promotional Tools “Promotion consists of those activities that are designed to being a company’s goods or services to the favorable attention of customer.” Sales Promotion Companies use sales – promotion tools to create a stronger and quicker response. There is a separate organization, which jointly made efforts for sales promotion and this organization is followed by INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) This organization is known as “The silk and Rayon Textile Export Promotion Council.” The head office of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) does all the activities of the sales promotion. It promotes its sales via dealers i.e. the product is sale thought middle man. Following tools have been use in this method; • Buying allowance discount • Display allowance

• • •

Dealers contest Concession on the net sales 25 Free gift Marketing Research

“To manage a business well is to manage its future, and to manage the future is to manage information.” Marketing research specifies the information needed to address marketing issues, designs the methods for collecting information, manages and implements the data collections process, analyzes the results, and communicates the findings and their implications. INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) in its initial stages was using the service of professional persons and sponsor trade delegation for the purpose of market research. But there after from 1988, they installed their own quality control department for market research. The company is also sending its higher level executives to the foreign countries for the purpose of survey and market research. The form of marketing research adopted by the company is continuous research. It has also adopted survey method. INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) has its own research and development dept. That undertakes market surveys and functions as per the trend of the market. This Dep’t. Enables the co. to carry out the productions of yarn and various Chemicals as per the demand of the customer and market condition.

Market Segmentation “Market Segmentation consists of taking this total market for the product and dividing it into several sub-marketer segments each of which tens to be homogenous in all the significant aspect.” The company identifies different ways to segment the market and develops the profiles of the resulting market segments. There are two approaches regarding market segmentation: • People oriented approach • Product oriented approach INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) uses ‘people oriented approach’ method for market segmentation. They classify their consumer on the basis of place, income, geographical location, etc. The branches of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) are located at

Ahmedabad, Delhi, Mumbai, Amritsar, Surat, Bangalore, and Madras. Its head office is situating at Mumbai which takes all the decisions regarding the company’s products. There are different manufacturing companies that consumes and demand for the specific type of yarn of very fine quality. The demand for yarn differs from company to company on the basis of their handloom production. So, this company has segmented The total market on the basis of product application consumer industry wise. The INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) marketing office is at Mumbai. The company has various type of segments. They are selling its product in India as well as exporting in many countries. Branches in India: Surat Delhi Mumbai Varanasi Bangalore Amritsar Calcutta Veraval Branch Abroad: Korea Italy Africa Saudi Arabia Bangladesh The above mentions are the major market of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) there are various other branches of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) spread over the world.

Advertising Management

“Any paid form of non-personal communication of ideas, goods or services by business firm identified in the advertising message intend to lea to sale immediately or eventually.” --American Marketing Association

• • • •

Advertising is basically used for: Creating or enhancing goodwill Preparing ground for new product Creation of demand Facing the competition

INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) is very sound company producing industrial product. Major factories producing rayon yarn in India are under one management i.e. The Birla group. The Aditya Birla Group has covered near about 75% of the yarn market. Thus there is no question of advertising. Rayon Yarn is use as a raw material in textiles industries that are not affected by any media of advertisement and that is the reason why the company is not advertising its product. The company publishes magazines, which depicts various facts and figures of companies manufacturing process, EXIM policy, pricing policy, strategies, etc. I short; the companies adopt the direct advertising method.

Transportation INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) Uses road way and railway for transportation. The products are distributing though trucks. The unit utilizes contract carriers. They give contract to transport agencies. Transportation is one by truck up to Mumbai, but above Mumbai the product is transported by rail. It pays Rs. 3.24 per ton for a kilometer. The unit faces transportation problem during monsoon season.

Channel of Distribution “The middleman is not a hire link in a chain forgets by a manufacturer, but rather and independent market, the focus of a group of customers for whom he buys.” INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) has adopted its own sales branches and sales offices in context of its channel distribution. The company has selected the distribution channel keeping in view the demand of the customer and the current market trend. In INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) the main product is rayon yarn so, this unit utilize zero level (Direct selling) and one level of channel of distribution. They are conduction the sales activity with the help of their own sales depots and agent’s dealers, sub dealers etc. indifferent cities and different states INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) sales marketing office is at Mumbai which performs the functions of selling the product of the company. The marketing office collects all the orders from the twelve different sales branches. All the sales branches of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) maintains the facilities like storage, after sales service etc. INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) also produced chemical along with the yarn like sodium sulphate, sulphuric acid and carbon-di-sulphide are distributed through dealers and selling agent. Company---------------Sales office-------------Customers

Dealing With Competitors To be successful, the company must a better job than its competitors of satisfying target consumers. Thus, marketing strategies must be adapted to the needs of consumers and also to the strategies of competitors. Base on its size and industry position the company must fin the strategy that gives it the strongest possible competitive advantages. INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) enjoys the monopoly in the market because of its total market of Rayon Yarn industry. The Indian Rayon covers almost 25% of the market and the Aditya Birla Group have also other two units of rayon yarn so altogether three units covers the 75% units of the total market. Competitors of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) are: • Century Rayon • National Rayon • Baroda Rayon • South Indian Rayon • Kesavram Rayon

•

Shriram Rayon

International Marketing International marketing refers to the organization which are international owned and which operate in more than one country, though subsidiary and associate companies. “A traveler without knowledge is like a bird without wings.” INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) Exports its product to the various countries through its own officers in abroad companies. Being well diversified, Birla management group has its own offices in various countries and abroad. It manufactures the product which is in great demand in almost all the countries of the world. It also imports its raw material called pulp from Canada which is use in the production of Rayon Yarn. They have established their own training house in foreign country which enables INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) to get export order and create export demand. The co. is having its various branches abroad too. Over the above this the company’s export contributes 17% to the division revenue.

Future Plan of Action and Achievements Future Plan of Action • Development of spatiality yarn • Eco and energy auditing • Improvement in in in intrinsic qu quality of of ya yarn • Developing new shades of spun ye yarn • Devel velopm opment ent in in the the qua qualit lity of of exi exis stin ting ran rang ge. Achievements • Rayo Rayon n div divis isio ion n has has begg begged ed “ Gol Gold d Tro Troph phy” y” for for high highes est t exp expor ort t fro from m syn synth thet etic ic and Rayon Textile Export Promotion Council • The The “ Cer Certi tifi fica cate te of meri merit t – 200 2003 3 “ of of nat natio iona nal l ene energ rgy y Con Conse serv rvat atio ion n of of VFY VFY • “Fir “First st Priz Prize” e” of Nati Nation onal al Ener Energy gy Cons Conser erva vati tion on Awar Award d -200 -2003 3 for for chlo chlor r –

Alkali sector both from ministry of power , New Delhi • The The pres presti tigi giou ous s “ Gre Green ente tech ch Env Envir iron onme ment nt Exc Excel elle lenc nce e Silv Silver er Awa Award rd 200 20022-03 03” ” • In chlo chlorr-Al Alka kali li sect sector or for for out outst stan andi ding ng achi achiev evem emen ent t in in the the fiel field d of of environment from Greentech foundation, New Delhi • The The Guj Gujar arat at safe safety ty Coun Counci cil l has has conf confer erre red d upo upon n the the “Cer “Certi tifi fica cate te of Hono Honor r 2002” upon the division base on its safety record and performance • The The cau caust stic ic divi divisi sion on has has achi achiev eved ed the the Gre Green ente tech ch awar award d in in 2004 2004

Recommendation The process of improvement is an unending journey. World class performance is a moving target that requires constant attention and efforts. The management of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) is well organized and has established INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) as a quality based, High speed, High performance, cost effective organization. The co. is having an excellent management –worker relationship with transparent and adaptive management approach. This experience from my organization study it can be said that the co. is constantly hardworking for the improvement of its product quality through the adoption of world class manufacturing policy.

Conclusion After going through the two month long training program, functioning of the organization which I observed from that it can be concluded that Indian Rayon & Industries Ltd. is the large scale manufacturing organization and successful player in the VFY and chemical products. The company has the strong financial structure and has a good reputation in the market. In the backdrop of various initiatives taken and strong performance during the year, Indian Rayon is on the path of superior performance. The company has strategically moved into various growth businesses and these are backed by traditional business that generates strong cash flows to drive the growth. As concerned with the personnel Dept. it is well organize. If there are certain problems than they are solve by mutual understanding between the personnel and the

management.

Manpower Planning and human assets are well organized.

The company is also doing its business with the Global Market. In India, the share of Indian Rayon and the total export of the VFY are highest.

SWOT ANALYSIS The overall evaluation of division’s Strength, Weakness, and Opportunity Threats is called SWOT analysis. STRENGTH • Divi Divisi sion on has has won won sev sever eral al SAFE SAFETY TY AWAR AWARDS DS for for the their ir prom prompt pt and and effe effect ctiv ive e wor work k of the safety of the workers and staff. • Divi Divisi sion on has has tec techn hnic ical al lib libra rary ry, , for for the the ext extra ra know knowle ledg dge e abo about ut the the text textil ile e industry and new updating for their employees. • Divi Divisi sion on has has a wel welll-eq equi uipp pped ed lab lab for for fin finin ing g of of new new effe effect ctiv ive e che chemi mica cals ls. . • Divi Divisi sion on has has a wel welll-de deve velo lop p mod moder ern n cau caust stic ic plan plant t as as an an int inter er unit unit to it for for the production of caustic an by products. It also has the computerized power plant for the fulfillment of the power supply. WEAKNESS • Cost Cost of of prod produc ucti tion on is is more more due due to to exis existe tenc nce e of very very old old tec techn hnol olog ogy y inst instal alle led d in this division • Many Many proc proces ess s ste steps ps and and pro proce cess ss is more more sens sensit itiv ive e to to nor norma mal l pro proce cess ss variations • Divi Divisi sion on is unab unable le to pay pay mor more e att atten enti tion on towa toward rds s pro prope per r hum human an reso resour urce ce management • Location aw away from co consuming ce centers. • Bigge gger pro proce ces ss cy cycle cle / highe gher pro proc cess ess stoc stock k.

OPPORTUNITY • Divi Divisi sion on shou should ld find find new new mark market et area area for for its its prod produc ucts ts spec specia iall lly y che chemi mica cals ls • Expo Export rt mark market ets s are are high high, , so so the the divi divisi sion on sho shoul uld d loo look k for for the the inc incre reme ment nt of the exports. • More More rese resear arch ch acti activi vity ty shou should ld be done done, , as as the there re is chan chance ce of find findin ing g new new markets • VFY VFY use use for for cer certa tain in text textil ile e ite items ms is spec specif ific ic and and ind indis ispe pens nsab able le. . • Qual Qualit ity y has has more more weig weight ht age age in inte intern rnat atio iona nal l mark market et. . IR&I IR&IL L Pot Pot Spin Spinni ning ng Yarn is next to Asahi Japan and better than Chinese an Russian Yarn used in international market. • Bigg Bigges est t opp oppor ortu tuni nity ty, , whe when n ope openi ning ng up of glob global al mar marke ket t whe when n MFA MFA expi expire res s in in 2005. Quota restriction will go which will boost the export of Yarn directly though Textile in world’s two biggest market Europe and US.

THREATS • Gove Govern rnme ment nt pol polic icie ies s • Emer Emerge genc nce e of of cot cotto ton n • Fash Fashio ion n cha chang nges es are are • The The Visc Viscos ose e proc proces ess s again pollution prone. Bibliography

are a re the the mai main n hur hurdl dles es of of the the divi divisi sion on’s ’s perf perfor orma manc nce e threa thr eads ds made made the the mar marke ket t sha share re of Rayo Rayon n yar yarn n low low. . also als o bas basic ic thre threat ats s for for such such divi divisi sion on is high highly ly poll pollut utin ing. g. The The basi basic c raw raw mate materi rial al (pul (pulp) p) is

Annual Reports of the Financial year 2007-2008 I.M. Panday (2008), Financial Management, 9th Edition. Vikas Publishing house Pvt. Ltd., New Delhi. Fillip Kotler & Kevin Lane Keller (2007), “Marketing Management”, 12th edition, Dorling Kindersley Pvt. Ltd., New-Delhi. K. Aswathappa (2008), Human Resource Management, 5th Edition. Tata McGraw Hill Publishing Company limited, New Delhi. Fact and Figures of Birla Group Publication Financial statement of Rayon Division, ABNL. “Aditya Kiran” Aditya Birla Group Publication

Web References:www.Adityabirla.com www.indianrayon.com www.adityabirlanuvo.co.in. www.adityabirla.com/the _group/heritage.htm www.fabriclink.com/History.html