REPORT ON BIRLA CEMENT WORKS

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QUALITY POLICY Birla Corporation Limited, Chanderiya is committed to comply with the requirements of customers to their entire satisfaction & continually improve the effectiveness of Quality Management System by 1 Enhancing customer satisfaction by supplying consistent quality cement. 2 Regular up gradation of technology, optimum utilization of resources & upkeep of equipment for reducing costs. 3 Training & involvement of employees to develop quality culture in the unit. OUR EMBLEM The corporate symbol of concentric circles around a triangle represents this very multi-dimensional nature. The apex of the triangle is a visual representation of the force that drives the entire corporation – the unifying force in search of excellence. The various sub-business units are diverse in interest & operation.

But they are held together by this centripetal drive. The circles represent the inspiration to explore new frontiers of growth. INDEX ? CEMENT INDUSTRY,STRUCTURE & DEVELOPMENTS ? COMPANY PROFILE ? PRODUCT PROFILE ? THE PROJECT

• OBJECTIVE

• RESEARCH METHODOLOGY ? COST ANALYSIS

• RAW MATERIAL CONSUMED

• MANUFACTURING EXPENSES

• PAYMENT AND PROVISION FOR EMPLOYEES

• SELLING,ADMINISTRATION & OTHER EXPENSES

• INTEREST ? FINANCIAL ANALYSIS

• LIQUIDITY RATIO

• LEVERAGE RATIO

• ACTIVITY / EFFICIENCY RATIO

• PROFITABILITY RATIO ? CONCLUSION ? SUGGESTION ? LIMITATION ? BIBLIOGRAPHY ? ANNEXURE CEMENT INDUSTRY STRUCTURE & DEVELOPMENTS India is the second largest cement producer in the world next only to china. Despite the fact that the Indian economy continues to reel under the recessionary environments the Domestic cement industry emerged as an exception and registered a growth rate of 11 % in Production over the previous year.

There are more than 130 large plants owned by 52 companies In. 2005-2006 the total installed capacity for cement manufacture stood 160.24 million tones. The capacity utilization of 88 %, the highest ever as compared to 83 % in the previous year. The industry recorded a production of 141.81 million tones. The share of blended cement has been increasing to 61 % from 56 %. As companies shifting their emphasis from OPC to blended cement. The cement industry on the whole, recorded a CARG of 10 % over the last two decades. The export during the year 2005-2006 is increased at 6.01 million tones against 4-07 million tones in the 2004-2005.

However export of clinker went down to 3.18 million tones against 5.99 million tones. OPPORTUNITES & THREATS : The cement industry in India is poised to grow satisfactorily as demand is anticipated due to in going “BHARAT NIRMAN" plan I other ambitious targets projected by Government; planning for timely completion of road project and focus on agriculture. The industry continues to be plagued by very high taxes both at the Central and state level, this is a major worry for the cement industry. Outlook :

The long term outlook for the cement industry is encouraging. The demand for cement from the government and private sector would continue to increase in coming year, because of substantial additional plan outlay provided by the central government in the infrastructure development and housing sector. The cement production has been increasing in the recent years with increased emphasis on production of blended cement. Risk & Concerns: The truck loading restrictions imposed by state governments is a matter of concern as it increases overall cost to the industry. High level of taxed and duties imposed by Central as well as State Government and higher prices of fuels and freight are major concerns of the Industry. SCENARIO OF INDAIN CEMENT INDSUTRY Cement industry is a core sector and forms the backbone of the infrastructure development of the country. Cement manufacturing began is India in 1911 the 1st plant had a capacity of 200 tones per day.

The industry was delicensed and uncontrolled in 1989. The Investment cost per ton installed capacity in 2002 for a cement plants is Rs. 4500 /- per ton as compared to Rs. 600/- per ton in late 70's India is one the best quality cement manufacturer's of the world . It stands in the top 5 cement producing nations of the world. There are many big concerns producing cement in India. %Growth in Cement Production-(2006-07/2005-06)(April-March) State %change State %change 1.Northern Region a. Punjab b. Rajasthan c.

Himachal Pradesh 4 9 7 4.Western Region a. Gujarat b. Maharashtra 12 6 Northern region 8 Western Region 10 2.Eastern Region a. Bihar b. Jharkhand c. Orissa d. West Bengal e. Chattisgarh 0 29 5 10 8 9 5.Central Region a. Uttar Pradesh b. Madhya Pradesh 5 9 Eastern region 10 Central Region 8 All India 10 YEAR 2005-06 Region Installed Capacity(in MT) Production (in MTS) % Share Of Production NORTH 29.31 29.67 21% SOUTH 50.96 44.88 30% EAST 23.38 20.05 15% WEST 28.94 24.93 19% CENTRE 25 22.28 15% TOTAL 157.59 141.81 100% YEAR 2006-07 REGION INSTALLED CAPACITY (in MT) PRODUCTION (IN MTS) %SHARE OF PRODUCTION NORTH 32.60 32.10 21.00 SOUTH 53.48 49.81 32.00 EAST 25.19 22.07 14.00 WEST 28.94 27.30 18.00 CENTRE 25.50 24.04 15.00 TOTAL 165.71 155.32 100 NORTH: Punjab, Delhi, Haryana, Himachal Pradesh, Rajasthan, Chandigarh, J&K, West U.P. & Northern Parts of M.P.

WEST: Maharashtra, & Gujarat SOUTH: Tamil Nadu, A.P., Karnataka, & Kerala EAST: Bihar, Orrisa, W.B., Assam, Meghalya, Chattisgarh, & Jharkhand CENTRAL: U.P., M.P. % Growth in Cement Production COMPANY PROFILE Birla Corporation Limited a well known name in the business world was established by late Shri Ghanshyam Das Birla in the year 1919. He set up the first Indian owned jute mill near Calcutta and named it Birla Jute Manufacturing Company Limited. The named of the company was changed to Birla Jute I Industries Limited in 1983 and finally to Birla Corporation Limited in 1998. From G.D. Birla the unit passed on to his Nephew Late Shri M. P. Birla, who with his entrepreneurial abilities and keen management mind expanded it into an industrial empire with manifold diversification in various areas. The company has seven divisions in six different states namely Rajasthan, M.P. U.P. West Bengal, Maharashtra and Haryana.

The Company has following divisions - 1. Cement division 2. Jute division 3. Synthetics division 4. Carbides and Gases Division 5. Vinoleum division 6. Auto trim division Financial Performance. : Cement Division of the company performed well during the year with higher capacity utilization increased volumes and improved profitability. During the year all the plants operated satisfactorily. The total turnover registered a growth of 25% in 2006-07 as compared to 2005-06 due to setting up of new plants and other expansion plans would help the company in maintaining the momentum of growth. Since I had done my summer training at cement division situated at Chanderia i.e. BCW I CCW so here I am giving a brief description of these two units- Birla Corporation Limited is having two plants in Chanderia namely BCW (Birla Cement Works) and CCW (Chanderia Cement Works). BCW was set up in feb. 1967 while CCW in 1986.

The Company carried out various modifications and de - bottlenecking in these plants, as a result of which the installed capacity has increased to 20 lac tones from 14 lac tones. Consequently, the installed capacity of the company increased from 39.1 to 45.1 lac tones. FINANCIAL PERFORMANCE PARTICULAR 2006-07 2005-06 CHANGE [Rs. In lacs] Total Income 159341 122859.85 29.69 Total expenditure 107348.79 103673.21 3.55 Operating Profit 51992.21 19186.64 170.98 Interest 1852.71 1361.96 36.03 Profit after interest 50139.50 17824.68 181.29 Depreciation 3965.48 3415.78 16.09 Profit before tax 46174.02 14408.90 220.45 Profit after tax 32623.02 12575.90 159.41 CEMENT DIVISION:

At present the company is having following 6 cement units:- Name of the unit Year of establishment Satna Cement Works 1959 Birla Cement Works 1967 Durgapur Cement Works Grinding unit 1974 Birla Cement Works 1982 Chittor Cement Works 1986 Raebareli Cement Grinding unit 1998 AWARDS RECEIVED BY CHITTOR UNITS:- Sl.No Name of Award Awarding Insititute 1. ISO9001:2000 Certification BVQI,UK in 2002 to BCW &CCW 2. IS/ISO:14001Certification BIS,New Delhi, in 2002 to BCW &CCW 3. Best Productivity Award NPC to CCW in 1989-90 & again in 1993-94 4. II Best Productivity Award NPC to CCW in 1991-92 5. Certificate of Merit for productivity NPC to CCW in 1998-99 6. Best improvement in the thermal energy Performance NPC to BCW in 1992-93 & CCW in 1993-94 7. Best improvement Energy Performance NPC to BCW in 1992-93 8. Bhamashah award of Educational Activities Govt. of Rajasthan to BCW in 1996-97 9. Excellent award for maintaining Healthy Condition of Machinery IIT,

Chennai & Vibration engineers Consultants(P) Ltd, & to BCW &CdW in 1996-97 10. Merit Award VEC(P)Ltd, Chennai for sustained implementation of condition Monitoring & continued Machine Machine Health improvement in 2001 11. Workers Education Trophy Central Board for Workers Education, Udaipur, Ministry of Labour, Govt. of India to BCW &CCW in 1998-99 & again in 2001-02 12. Lal Bahadur Shastri Gold National Memorial Award International Green land Society for Excellent Pollution control Implementation by CCW in 2002-03 13. Best supporting core Plant Regional training Center, Nimbahera in 1998-99 , 2000-01, & 2001-02 14. Award of Captive mines(safety Week celebration in Udaipur region) DGMS, Udaipur 1995(1),1996(2),1997(1),1998(3), 1999(4),2000(2),2001(5),2002(3) 15. Best income Tax Payee(TDS) award Income Tax Department ,

Udaipur Range to BCW in1996-97 BCW & CCW have received the quality certification ISO9001-2000 for quality management system and ISO-14001 for environment management system. CAPEXIL has awarded the BCL two export awards for 1990-91, 1991-92 and 1998-99, and1999-00 for export of cement. Information System: Company is having LAN installation using UNIX oracle-7 generation. Most of the software application are developed in-house and even used at Satna and Mumbai Office. The Process of computerization is growing rapidly. Total investment to around Rs. 1.5 crore. Human Resource Development:- Diagnostics studies over, the relevant system are being implemented in a phased manner. The response is encouraging. Social Activities: Our Company has contributed tremendously toward the economic and social development of this area.

These include expansion of the building of the Govt. referral hospital at chittorgarh , renovation of Kalika Mata Temple at Chittor Fort, construction of a secondary school building at village Nagari at a cost of 21 Lac for which we were conferred the “ Bhamashah Samman” award and the construction and expansion for a number of other school and temple buildings in the area around Chittorgarh. Tranist cattle Camps were opened during severe drought conditions in the state. Free eye operation Camps are organized from time to time for the rural population of this area. We have also made handsome donation for social welfare and the development of Sangam Sthal at Chittorgarh.