GRASIM INDUSTRIES LIMITED -- PROJECT WORK

EXECUTIVE SUMMARY
Cement is one of the important materials in house construction and costs 12 to15% of cost. Cement is used in more of less all the important like Roof slab, beams, columns, lintels, brickwork and flooring. Cement imparts both strength and makes the building component strong. It is important to remember this happens only if it thoroughly mixed, laid, compacted and cured properly. Different companies supply different types of cement which has got different quality, strength and setting time. India viewed the cement production in the early 20th century, with first cement industry set up in 1904 by south Indian industries. The 2nd unit, which came up from the house of Tatas at Porbandar in 1904, started its operation in 1915 with a combined capacity of 75000 tonnes per annum. India with the capacity of 113.5MT is 3rd largest producer of cement. The industry has a turn over of around Rs 19500 Crore and accounts for direct and indirect employment of 106 million persons. Private sector contributes over 85% of cement out put in the country. Currently, India has 109 large cement plants and more than 200 mini plants, which includes 30 plants having more than 1 million ton capacity. The study is conducted at Grasim Industries Ltd, Aditya Birla, marketing (Cement Division), Bangalore. The study consists of two sections. The first section covers the working of organization, Industry profile, company profile, product profile, study of different departments in Grasim Industries Ltd Bangalore. The second section relating to the marketing problem Factors Responsible for Growth of Blended Cement Sales in Territory 3 of Bangalore City

1. INDUSTRIAL PROFILE

HISTORY OF CEMENT:

Romans have used naturally occurring cement 300 BC in Roman baths, roads and the stadium. In1796, Jamea Parker of England patented natural hydraulic cement by calcining nodules of impure limestone containing clay called Parkers cement or Roman cement. Joseph Aspdin of England invented cement in 1824. He named it Portland cement, as it resembled natural stone obtained from Portland, England, since there has been a constant improvement in manufacture and quality. Its use has become universal replacing lime as binding material since 1920.

THE ROLE OF CEMENT

Cement is one of the important materials in house construction and costs 12 to 15% of cost. Cement is used in more of less all the important like Roof slab, beams, columns, lintels, brickwork and flooring. Cement imparts both strength and makes the building component strong. It is important to remember this happens only if it thoroughly mixed, laid, compacted and cured properly

AN INDUSTRY OUTLOOK
Cement- A high volume low value product is one of the high capital as well as high power intensive industries (40% capital+ 40% energy costs). Cement constitutes an important segment of modern industrial economy of India as it sets up a strong and healthy infrastructure.

The infrastructure strength of nation can be determined based on the cement consumption, with construction a pre-cursor to the economic development. India viewed the cement production in the early 20th century, with first cement industry set up in 1904 by south Indian industries. The 2nd unit, which came up from the house of Tatas at Porbandar in 1904, started its operation in 1915 with a combined capacity of 75000 tonnes per annum. The post independence era brought new impetus to the cement industry. One of the most notable developments was the first Indian Standard Specifications of Portland cement by Indian Standard Institutes (ISI). The most important feature of Indian specification was that the permissible limit of magnesia content in cement was raised from 4% to 5%. However until the year 1982, Indian Cement Industry was completely controlled by the govt., which regulated both distributions as well as price of the cement. During this control regime, freight pooling system was in vogue, which resulted in slow and stunted growth, as well as led to shortages in domestic production. Partial decontrol in the year 1982, followed by total de control in 1989, gave a boost to cement industry.

PRESENT SCENARIO

India with the capacity of 113.5MT is 3rd largest producer of cement. The industry has a turn over of around Rs 19500 Crore and accounts for direct and indirect employment of 106 million persons. Private sector contributes over 85% of cement out put in the country.

Currently, India has 109 large cement plants and more than 200 mini plants, which includes 30 plants having more than 1 million ton capacity. Per capita consumption of cement in India is near 82 kgs against worlds average of 250kgs. The cement business has registered an impressive growth of 24% in realizations vis-vis the comparable quarter of previous year. Production at 2.57 million metric tones and sales volume at 2.55 million metric tones have risen. Realizations, stronger at Rs 2046 per MT, have been major contributing factor in the enhanced operating margin of business. To grow its cement business and to sustain its market share, Grasim has planned a total capital expenditure of Rs.530 crore. This includes:

Setting up of 4 Ready Mix concrete plants of which 3 have been already commissioned at Hydrabad, Chennai and Noida. The fourth RMC plant at Bangaloreis slated for completion the second quarter of FY2002. Modernization processes and capacity expansion through bottle necking, which is ongoing. CHARECTERISTICS OF CEMENT INDUSTRY:

Cement market at present is a buyers market then sellers market. Cement is a bulk commodity. Cement market in India is divided regionally. Transportation cost prohibits inter region transportation on a large scale. Distribution is a critical factor in cement marketing. Prices are very volatile in nature. DEMAND AND SUPPLY: Demand for cement can be broadly divided in two broad categories. Indent 360 housing, offices, and maintenance and rehabilitation activities. Infrastructure projects such as irrigation canales, railways, roads and ports. Demand under category 1 is generally recurring and replacement in nature. In the category 2 demand demands are determined by the creation of infrastructure, which is crucial for emerging economies. According to industry sources cement demand is price inelastic that is demand is independent of price level. But on the other side the management passes on the rising cost to the

end customer. Thus the demand supply equation has to be more or less in equilibrium. As cement in India has no identifiable substitute the prices are mainly determined by. The industry demand and supply scenario: The nature of demand in India is in sharp contrast to that of the developing countries where ready mix concrete is the largest sector and bulk distribution the norm, In India, cement is largely sold in the bag form and branding is prerequisite for the retail market. Private construction firms are the largest end users of cement and accounts for 55% of total demand. Government share is less that 30%. MANUFACTURE OF CEMENT:

The main raw material for cement manufacturing is calcium carbonate in some form (lime stone, Marls, Chalk, sea sand, sea shell and coral reefs), gypsum, which is used as a retarding agent. The purer the gypsum, the better is a retarder. Cement industry used lime stone as a major raw material, but the deposit of lime stone is not evenly dispersed all over the country. Due to this, cement plants are also located in this region and production is concentrated in this region.

Types of Cement: Type 1: Ordinary Portland Cement Type 2: Moderate Heat of Hydration Type 3: High Early Strength (Rapid Hardening) Type 4: Low Heat of Hydration Type 5: High soleplate Resistance Ordinary Portland Cement (OPC) It contains gypsum, coal and limestone. Has faster setting time and less strength. Ideal application is for light construction. Portland Pozzolana Cement (PPC) contains blended Pozzolona material (claimed clay and fly ash) along with gypsum in clinker. It is of high strength and used in heavy construction.

Moderate Host Portland cement (MHPC) By changing chemical composition of cement the heat of hydration can be lowered. The type of cement is used for mass concrete work. Rapid Hardening Cement (RHC) gives strength in 24 hours with same setting time of OPC. Therefore it is also called as High Early Strength Cement. Sulphate Resistance Cement (SRC) used for concrete and construction, and are in prolonged contact with soils and water rich sulphates. White Cement if iron content of grey cement is lowered too less than 0.4% the color of cement becomes white. The cost of white cement is high and used for decorative work only. Portland Blast Furnace Slag Cement (PBFSC) the blast furnace slag when mixed with Portland cement clinker gives PBFSC. It is suitable for construction of dams, bridges, etc. Masonry cement sand or granulated slag is mixed with OPC clinker on proportion on about 1:1, to get Masonry Cement. Used for laying and bounding bricks and for plastering. The physical characteristics by which the quality of the cement is assured are Fineness (specific surface) Soundness (expansion of unaerated of cement by lachaeler mould auto clay) Setting time (initial set and final set) Compressive strength (3 days, 7 days, 21 days) Heat of Hydration Sulphate resistance Drying shrinkage

2. COMPANY PROFILE
Grasim Industries an overview
Grasim was incorporated on 25 August 1947, exactly 10 days after India achieved independence. Originally a textile manufacturer, Grasim has successfully diversified into VSF, cement, sponge iron and chemicals. I firmly believe that our people provide us with the cutting edge. For sustainable success, their performance orientation and customer focus is imperative. In my view, only where people grow, the organization grows."
- Mr. Kumar Mangalam Birla, Chairman, The Aditya Birla Group

2.1 BACKGROUND AND INCEPTION OF THE COMPANY:

The Aditya Birla Group is India's first truly multinational corporation operating in the country for over 5 decades and globally for nearly 30 years. A US$ 7.59 billion conglomerate, with a market capitalization of US$ 7 billion, it is anchored by an extraordinary force of 72,000 employees belonging to over 20 different nationalities. Over 30 per cent of its revenues flow

from its operations across the world. The Group's products and services offer distinctive customer solutions. Its 66 state-of-the-art manufacturing units and sectoral services span India, Thailand, Indonesia, Malaysia, Philippines, Egypt,Canada, Australia and China. The Aditya Birla Group is a dominant player in all of the sectors in which it operates Such as viscose staple fibre, non-ferrous metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals, fertilizers, sponge iron, insulators and financial services. The company is also a leading player in following: The World no.1 in Viscose Staple Fiber. The World's Largest Single Location Palm Oil Producer. Asia's Largest Integrated Aluminum Producer. A Globally Competitive, Fast-Growing Copper Producer. The World's Third Largest Producer of Insulators. Globally, the Fourth Largest Producer of Carbon Black. The World's Eighth Largest producer of Cement, and the Largest in a Single Geography. India's Premier Branded Garments Player. Among India's Most Energy Efficient Private Sector Fertilizer Plants. India's Second Largest Producer of Viscose Filament Yarn. The no. 2 Private Sector Insurance Company, and the Fourth Largest Asset Management Company in India.

Beyond Business:
A value-based, caring corporate citizen, the Aditya Birla Group inherently believes in the trusteeship concept of management. Parts of the Groups profits are ploughed back into meaningful welfare-driven initiatives that make a qualitative difference to the lives of the people. These activities are carried out under the aegis of the Aditya Birla Center for Community Initiatives and Rural Development, which are spearheaded by Mrs. Rajashree Birla.

2.2 NATURE OF THE BUSINESS

The roots of the Aditya Birla Group date back to the 19th century in the picturesque town of Pilani set amidst the Rajasthan desert. It was here that Seth Shiv Narayan Birla started trading in cotton, laying the foundation for the House of Birlas. Through India's arduous times of the 1850s, the Birla business expanded rapidly. In the early part of the 20th century, the Group's founding father, Ghanshyamdas Birla, set up industries in critical sectors such as textiles and fibre, aluminium, cement and chemicals. As a close confidante of Mahatma Gandhi, he played an active role in the Indian freedom struggle. He represented India at the first and second round-table conference in London, along with Gandhiji.

It was at "Birla House" in Delhi that the luminaries of the Indian freedom struggle often met to plot the downfall of the British Raj.

2.3 VISION, MISSION AND VALUES OF GRASIM INDUSTRIES

VISION:
To be a premium global conglomerate with a clear focus on each business.

MISSION:
To deliver superior value to our customers, Shareholders, employees and Society at large.

VALUES:
Integrity Commitment Passion Seamless nes Speed

2.4 PRODUCT PROFILE: Grasim Products:

Product mix 2005- 06 (by revenue): Sl.No 1 2 3 4 5 Cement VSF Sponge iron Textiles Chemicals Product Revenue (per cent) 46% 35% 9% 5% 5%

CEMENT:
Grasim is among the largest producers of grey cement in India with a total grey cement capacity of 13.12 million tonnes per annum (tpa). All its plants are located close to sizeable limestone mines and are fully automated to ensure consistent quality. All the companys cement units are certified with ISO 9001 for quality systems, and ISO 14001 for environment management systems. Its national brands are Birla Plus, Birla Super and Birla Ready Mix concrete. Cement Varieties Catering to Different Segments: Rajashree Cement for residential and commercial construction Birla Super Cement for multi-storied buildings, dams and bridges Birla Plus for mass concrete laying and non-structural applications Birla Coastal for foundation work and for use in coastal areas as well as sugar and fertilizer plants Kamal Cement:

Acquired by Grasim in 1998, Shree Digvijay Cement Company Ltd (SDCC) is situated at Sikka (Gujarat). It has an annual capacity of about 1.08 million TPA. All of SDCCs products are marketed under the brand name 'Kamal'. The company has ISO 9002 certifications for its clinker and cement production and its oil well cement has been authorized for the use of the monogram of the American Petroleum Institute. Birla White Cement: Architectural monuments have always played a significant role in marking the progress of history. Take the examples of the Coliseum of Rome, the Leaning Tower of Pisa and our very own Taj Mahal. In an endeavour to encourage young architects to push the boundaries of design and creativity, Birla White a leader in the white cement industry has been presenting a platform for the creative genius. Aimed at architectural colleges across the country, Birla White has pioneered a design contest in search for talent in design excellence. This year's Birla White Yuva Ratna Awards called for design entries in two categories Designer Flooring and GRC (Glass Fibre Reinforced Concrete). Instituted in 2004, Birla White Yuva Ratna Awards is catalytic in providing an opportunity to aspiring and talented architects and designers to unleash their potential by designing outstanding designer floor designs and GRC patterns. The awards are the conduit for creating new trends and ushering in a new age with limitless options. Birla White received an overwhelming response this year. In all, there were 1054 entries from 34 colleges spread across nine states. Among the various path-breaking entries presented, an artist has worked out an entire concept for facilitating the movements of the visually impaired. At the recently held Birla White Yuva Ratna Awards function, Birla White felicitated 21 aspiring students from different states. The Chief Guest was Mrs. Rajashree Birla, Chairperson of the Aditya Birla Centre for Community Initiatives and Rural Development. Says Mrs. Birla, "The range of eclectic designs have been most impressive. It is a tribute to the innovative and creative spirit of the youngsters." Viscose Staple Fibre :
Grasim is India's pioneer in Viscose Staple Fibre (VSF), a man-made, biodegradable fibre with characteristics akin to cotton. Extremely versatile and easily blended with other fibres, VSF is widely used to manufacture fabrics for both woven and knitted garments. The range of applications

extends from apparel both top wear and bottom wear to home textiles, dress material, knitted inner wear and outer wear, and non-woven fabrics. Aditya Birla Group is today the world's largest producer of VSF, commanding a 24 per cent global market share and meeting over 98 per cent of India's VSF requirements.

Grasim's VSF plants are located at Nagda in Madhya Pradesh, Kharach in Gujarat and Harihar in Karnataka, with a combined installed capacity of 2,51,850 tonnes per annum. Nagda is its largest unit producing a wide range of VSF to suit customer requirements in terms of length, denier and colour. Nagda is also the largest producer of spun-dyed specialty fibre in the world. The Harihar unit produces rayon grade pulp, the basic raw material for VSF production and raw white VSF. The Company's rayon grade plant was the first in India to use totally indigenous resources like eucalyptus. It uses an in-house technology for producing rayon pulp with an innovative oxygen bleaching process to reduce the use of chlorine. The VSF plant at Kharach, set up in 1997, employs the most contemporary technology, and today overseas customers demand "fibre from Kharach". The AV cell unit in Canada, an overseas joint venture, also supplies dissolving grade chemical pulp to the Group's VSF units in India, Thailand and Indonesia. This spread and scale of operations makes the Group's VSF operations extremely cost competitive. In addition, vertical integration into production of various principal raw materials required for VSF production caustic soda, CS2 and rayon grade pulp heightens its competitive edge. Grasim has earned prestigious awards for its technology and its innovative range of fibres. Made from wood pulp through an eco-friendly, non-polluting process developed and patented by the Aditya Birla Group, it is the world's only heavy-metal-free viscose fibre. The Birla Research Institute for applied sciences at Nagda along with the Company's R&D teams, endeavours to make technology work for improving quality, lowering costs and optimising resources, the Company's Textile Research Application Development Centre (TRADC), coming up at Kharach, will continually develop new applications and products. It will also explore possibilities of strategic alliances with downstream textile product manufacturers to commercialise the applications, leveraging superior quality of VSF in terms of feel, comfort, hygiene and aesthetics. All of the VSF business offerings have been branded under the 'Birla Cellulose' umbrella. To penetrate into niche market segments, and to grow further, the division has ventured into the production of high performance viscose fibres aptly named Viscose Plus, High Wet Modulus Fibres (Modal) and Birla Excel, the new generation solvent spun fibres.

Grasim is also the largest producer of sodium sulphate, a by-product of VSF manufacture. Sponge iron: In 1993, Grasim ventured into sponge iron with the commissioning of Vikram Ispat's gasbased sponge iron plant at Salav in Alibag, Maharashtra. The plant has a current capacity of 900,000 tons per annum, and is the largest merchant producer of sponge iron inIndia.

Textiles: Grasim has a strong presence in fabrics, synthetic yarns, worsted yarn and is well known for its branded suiting Grasim and Graviera, made from different blends of polyester and viscose. Its textile plants are located at Bhiwani in Haryana and Malanpur in Madhya Pradesh. Fabric operations are centralised at Bhiwani with a processing capacity of 17 million meters a year, while the Malanpur unit manufactures worsted dyed yarn spun from 100 per cent merino wool along with polyester and other blends.

2.5 AREA OF OPERATION

A formidable force in Indian industry, Mr. Aditya Birla dared to dream of setting up a global business empire at the age of 24. He was the first to put Indian business on the world map, as far back as 1969, long before globalization became a buzzword in India. He had foreseen the winds of change and staked the future of his business on a competitive, free market driven economy order. He put Indian business on the globe, 22 years before the economic liberalization was formally introduced in India. He set up 19 companies outside India, in Thailand, Malaysia, Indonesia, the Philippines and Egypt. Under his stewardship, his companies rose to be the world's largest producer of viscose staple fibre, the largest refiner of palm oil, the third largest producer of insulators and the sixth largest producer of carbon black. In India, they attained the status of the largest single producer of viscose filament yarn, apart from being a producer of cement, grey cement and rayon grade pulp. The Group is also the largest producer of aluminium in the private sector, the lowest first cost producers in the world and the only producer of linen in the textile industry in India.

At the time of his untimely demise, the Group's revenues crossed Rs.15, 000 crore globally, with assets of over Rs.16, 000 crore, comprising of 55 benchmark quality plants, an employee strength of 75,000 and a shareholder community of 600,000. Under the leadership of the present Chairman, Mr. Kumar Mangalam Birla, the Group has sustained and established a leadership position in its key businesses through continuous value-creation. Spearheaded by Grasim, Hindalco, Indian Rayon, Indo Gulf Fertilizers and companies in Thailand, Malaysia, Indonesia, the Philippines and Egypt, the Aditya Birla Group is a leader in a swathe of products viscose staple fibre, aluminium, cement, copper, carbon black, palm oil, insulators, and garments. And with successful forays into financial services, telecom, software and BPO, the Group is today one of Asia's most diversified business groups.

The Brand "Aditya Birla":

The Name "Aditya Birla" evokes all that is positive in business and in life. It Typifies Integrity, Quality, Performance, Perfection, and Above All character. Our Corporate Logo, 'The Rising Sun', symbolizes these traits. ('Aditya' is the Sanskrit Word for Sun). The logo consists of an inner circle, symbolizing the internal universe of the Aditya Birla Group, an outer circle, symbolizing the external universe, and a dynamic meeting of rays converging and diverging between the two

'Aditya' is the Sanskrit Word for Sun

Social Activities:
All efforts start from the earth. Only some reach the skies to light up and dazzle. Gyanodaya, our Institute of Management Learning in Navi Mumbai, is one such effort in spreading the light of knowledge.

As a conglomerate with a diverse business portfolio, no single set of competencies will do each business requires a unique skill set. The challenge is to identify these skills. Also, with speed being of essence, organisations and employees need to continuously learn and perform soaking in new modules of success, adapting them to our advantage, keeping a step ahead of the competition. Gyanodaya has been envisioned as a hub, the backbone of a process that sharpens our Group's competitive edge. Closely linked to the vision of the Group is the Gyanodaya vision: 'To be at the core of an effective learning network that, as a strategic business partner, harnesses knowledge and intellectual capital, to contribute to Aditya Birla Group's vision of being a premium conglomerate.' At Gyanodaya, learning happens in two ways: 1. G-Learning which takes place at Gyanodaya. The training calendar is accessible to employees via Aditya Disha, the group-wide intranet. The participant can choose the programme that s/he would like to participate in. Some programmes are by invitation only. 2. E-Learning where learning is just a click away.

Gyanodaya has created an environment for delivering high quality learning, with the help of a highly-qualified and experienced external faculty. This imparts a larger perspective to the programmes, which consist of a mix of classroom, outreach, and e-learning initiatives. Grasim, Nagda has been involved in various meaningful, welfare-driven initiatives that distinctly impact the quality of the weaker sections of society in the Ujjain district of Madhya Pradesh. In working with the communities, the company gauged their real needs and identified these as access to potable water, sustainable livelihood, healthcare, education and infrastructure. Grasim's community development programme encompasses 55 villages and some adjoining urban localities. It has helped more than 1.4 lakh people in this area and is implemented under the aegis of the Aditya Birla Centre of Community Initiatives and Rural Development. The major programmes include watershed management including drinking water provision in 20 villages and two townships, and running three schools for ensuring quality education to over 5,000 children. The Rural Development section is well equipped with vehicles, ambulances, tractors, training centres and other necessary infrastructure with doctors, paramedical staff and workers. Under the sustainable livelihood schemes, more than 600 families are covered through self-help groups and income generation activities; over 1,600 persons are trained in 30 different trades each year; and increased crop productivity in 1,750 hectares has enhanced the livelihood options for 3,500 households. Several other accolades have been conferred on Grasim in recognition of its contribution to rural development.

2.6 OWNERSHIP PATTERN:

Grasim is family owned business unit. MD is Kumar Mangakam Birla. It has 52% of share holders. They have a good profit and the payment is made to every share holder each year without fail. They have issued no debentures for raising capital. The companys quality share are listed on the following stock exchanges. Name of Stock Exchange Stock Code Madras Stock Exchange Limited 00513 The Stock Exchange, Mumbai 43214 Bangalore Stock Exchange Limited 67148 The Stock Exchange, Ahmedabad 4871

The Culcutta Stock Exchange Association The Delhi Stock Exchange Association Limited Cochin Stock Exchange Limited National Stock Exchange of India

8777 --------GIL

2.7 COMPETITORS INFORMATION:

Historically, the Indian cement sector has been highly fragmented comprising 54 players that operate 124 plants. The majority of plants are small sized and well spread through out the country. The cement industry is cyclical and capital intensive. A new plant typically has a gestation period of 3-4 years. The industry is rapidly consolidating with Mergers & Acquisitions activity. In the recent past, Gujarat Ambuja acquired control of ACC and Grasim has acquired control of L & T. These 2 players are dominant in the industry. Amongst the MNC players, Lafarge has acquired a capacity of 4.5 MTpa and Itali Cement has a capacity of 2.7 MTpa. ASSOCIATED CEMENT COMPANIES (ACC): ACC is one of the leading cement producer in India came in to existence consequent to the amalgamation of ten cement companies in 1936. Manufacturing and marketing of cement, ready mix concrete refractory products are main business of ACC. Further the company is in to consultancy and engineering services. ACCs manufacturing base consists of 14 cement plants spread well all over India. It has 2 refractory plants, one each at Maharashtra and MP and 6 RMC plants near to four metros of India. GUJARAT AMBUJA CEMENT: Gujarat Ambuja Cement was set up in 1986.in the last decade the company has grown tenfold. With the commencement of commercial production at its 2Mn tonnes plant in Chandrapur, Maharashtra Ambuja will become Indias 3rd largest cement company, with the capacity of 12.5Mn tonnes and revenue in excess of 2,500 crore. The companys most distinctive attribute however is its approach to the business. Ambuja follows a unique homegrown philosophy of giving people the authority to set their own targets, and freedom to achieve their goals and has proved to be the powerful engine of growth for company.

THE INDIA CEMENTS LTD: The India Cements Ltd. was established in 1946 and the first plant was setup at Sankarnagar in Tamilnadu in 1949. Since then it has grown in stature to 7 plants spread over Tamilnadu and Andhra Pradesh. The company is largest producer of cement in South India.

2.8 INFRASTRUCTURE FACILITIES

Plant Rajashree Cement Vikram Cement Grasim Cement Aditya Cement Cement Division South Shree Digvijay Cement Location Malkhed and Hotgi Jawad and Bhatinda Raipur Shambhupura Reddipalayam Gujarat 14.00 Total : cement: Commissioned in 1984, Rajashree Cement has a capacity of 4.20 million TPA. The salient facts about Rajashree Cement are: Coal-based thermal power plant with a 38.5 MW capacity Modern dry process technology from KhD, Germany, with a state-of-the-art process control system First in India to achieve Certification ISO 9001:2000 by DNV, Netherlands, 2001 Vikram Cement: The first production line of this unit at Jawad (Madhya Pradesh) went on stream in 1985, with a capacity of 0.5 million tpa. Today, with a capacity of a 4.20 million tpa, Vikram Cement has emerged as a premium regional brand, well-reputed for its strength and consistently superior RajaSh ree and Birla Super Capacity (In million tones) 4.20 4.20 2.06 1.50 1.16 1.08

performance. The Vikram Cement unit is one of the few plants to have its own Central Research and Development Centre. The first ISO 9001 cement plant in the country, Vikram Cement has also taken the lead in innovative raw mix designs and process conditions. Vikram Cement has won several accolades at the national and international level for its quality, efficiency and environmental initiatives. These include Grasim Cement: Grasim Cement was set up as a Greenfield cement plant at Raipur, Chhatisgarh, in 1995. Based on the most advanced technologies, this plant has an annual installed capacity of 2.06 million TPA. The Grasim industry plants unique features include: Asias first gamma ray belt analyser from Gamma Matrix (USA) ensuring the highest standards in online quality control. Indias first polycom (blast furnace slag grinder) with a dynamic air separator from Krupp Polysius Germany, which helps to generate the desired homogeneous particle size distribution. One of the few single kiln cement plants producing more than eight varieties of cement. Emerging as the largest producer in India and 7th largest in the World. Aditya Cement: Commissioned in a record time of 22 months as a Greenfield 1.0 MTPA plant in1995 in Shambhupura, Rajasthan, and its current capacity is about 1.50 million TPA. Grasim South: Grasim acquired Dharani Cements (since merged with the company) in April 1998. The company has a cement plant at Ariyalur, Tamil Nadu. In April 2000, among the most modern in Asia, was commissioned at Reddipalayam, Tamil Nadu. This unit now has a capacity of 1.16 million TPA. This is the only plant to be equipped with an auto/ robot lab system for consistent quality and optimizing cost.

2.9 AWARDS

 National Award for Quality Excellence in the Indian Cement Industry by the National Council for Cement and Building Materials, for the year 2000-01 IMC Ramakrishna Bajaj National Quality Award (certificate of merit) in 1999 Jamnalal Bajaj Uchit Vyavahar Puraskar for Fair Business Practices in 1995 Rajiv Gandhi National Quality Award in 1993 Birla Super Cement received the Environment Excellence Award under the silver category by GreenTech Foundation Birla Super Cement certified with the OHSAS 18001:1999 for their occupational health and safety management system by Det Norske Veritas. The first Indian unit to win the coveted TPM award from the Japan Institute of Plant Maintenance, Tokyo, in 1995 The first cement unit in the world to receive IQRS level 5 rating from Det Norske Veritas, The Netherlands. The first cement unit in India to be certified ISO 14001 (1997) and OHSA 18001 (certifications from DNV, Rotterdam, The Netherlands, in 2001) FICCI Annual Corporate Social Responsibility Award 2004, the 2004 StockholmIndustry Water Award and the Asian CSR Award 2005.

WORK FLOW MODEL

BIRLA SUPER BULK TERMINAL:

The plant is the unit of Grasim Industries Ltd. BSBT started its operation from May 1999 onwards. It is situated 40 Km away from Bangalore city. At Doddaballapur which is also called the SILK CITY. The plant is located in the Veerapura, Doddaballapur tq, andBangalore dist. The plant was constructed with an investment of 12 cr. It is also the packaging and distribution plant. This plant caters the requirement of cement all over Karnataka. The market share of this cement is suitably increasing annually because of the product quality, timely supply, customer satisfaction and after sales service. BSBT is the only unit located in Karnataka, which supplies cement requirement of the southern districts. To this unit, cement comes from its parent unit Rajashree cement, Malkhed, situated in Gulbarga. The cement is brought in specified railway wagons. The company has its own locomotive engine and a separate railway sliding which is deviating from Doddaballapur railway station. There are totally 3 rakes shuttling between the production plant in Gulbarga and BSBT. The plant constructed on an area of 40 acres of land, which includes, Main package plant Railway sliding Truck yard Office, canteen etc Green belt

3. THE MCKENSEYS 7S MODEL

McKinseys 7S model provides a useful framework for analyzing the strategic attributes of an organization. The McKinseys 7S model developed by two persons Tom Peters and Robert Waterman. They were working as consultants at McKinsey and Co. at that time. The McKinsey

Consulting Firm identified strategy as only one of seven elements exhibited by the best-managed companies. Strategy, structure and systems can be considered as the hardware of Success while style, staff, skills and shared valued can be seen as the software. Companies, in which these soft elements are present, are usually more successful at the implementation of strategy.

THE MCKENSEYS 7S MODEL IS AS FOLLOWS

The hard elements of Mckenseys 7S model are feasible and easy to identify. They can be found in strategy statements, corporate plans, organizational charts and other documentations. The four soft Ss however, are hardly feasible. They are difficult to describe since capabilities, values and elements of corporate culture are continuously developing and changing. They are highly determined by the people at work in the organization. Therefore it is much more difficult to plan or to influence the characteristics of the soft elements. Although the soft factors are below the surface, they can have a great impact of the hard structures, strategies and systems of organization.

The 7Ss are: Structure Skills Style Strategy Systems Staff Shared Values

STRUCTURE:
The organization (e.g. hierarchical or flat ) as well as the group and ownership structure is included here. Also note Porters categorization of group structure: Efficient Allocation of Capital, Allocation of Resources, etc. Mr. Kumar Mangalam Birla is the Chairman of the Company, the company board also includes Executive Directors, Directors, Advisor and Company Secretary in the board.

MANAGEMENT:
The Aditya Birla Management Corporation Limited is the Group's apex decision-making body and provides strategic direction to Group companies. Board of Directors:

 Dr. Kumar Mangalam Birla, Chairman Mr. S. Aga Mr. D. Bhattacharya Mr. S. K. Jain Dr. S. Misra Mr. S. Misra Mr. S. K Mitra Dr. B. K Singh Mr. Deepak Mittal Mr. K. K. Maheshwari Mr. Vikram Rao Business Heads: Mr. Shailendra K. Jain, VSF Mr. Saurabh Misra, Cement Mr. Ravi Kastia, Sponge iron Mr. S. K. Saboo, Textiles, Spinning Mr. Vikram Rao, Textiles, Fabrics Mr. K. K. Maheshwari, Chemicals Whole-time Director and Chief Financial Officer: Mr. D. D. Rathi Company Secretary Mr. Ashok Malu

ORGANIZATION STRUCTURE AND CHART

OBJECTIVES:

To define the rules and responsibilities of an employee in the organization. To ensure a flat organizational setup. To analyze the manpower requirement. To define the hierarchy, level of authority, vertical and horizontal relationship.

SKILLS:
Skills refer to the fact that employees have the skills needed to carry out the companys strategy. Training and Development- ensuring people know how to do their jobs and stay up to date with the latest techniques. The company requires technical skills for production and manufacturing divisions. Also it requires strong management skills in marketing and H.R. divisions. The marketing executives

must have good communication skills and better knowledge of the company and its product. Many marketing executives have the engineering background with MBA degree. Marketing executives are also required to have very strong verbal and written communication skills, especially presentation skills as most of the time they have to do the presentation for their clients and for the higher authorities. Senior level executives must be good analyzing individual strength and weakness, so that they can allocate work to individuals effectively. They also must have strong skills of analyzing the market situation and changes.

STYLE:

Style refers to the employees shared and common way of thinking and behaving unwritten norms of behavior and thought: Leadership Style Organizational Culture The company culture is very informal, youthful and dynamic. It encourages free and participative thinking. The Grasim Industry has the participative type of leadership style in practice. The top and middle executives of the management tend to be totally accessible and encourage the participation in decision-making, by conducting the debate and discussion. This type of leadership style attracts talented people to enter the company and make them to feel company as their family. Also this style motivates the employee to stay in the company.

STRATEGY:

The integrated vision and direction of the company, as well as the manner in which it derives, articulates, communicates and implements that vision and direction.

The Grasim Industry is a worldwide leader in viscose staple fiber (VSF), and it is a largest producer of white cement in India. The Birla White Cement division changed its slogan from Whitest White Cement to My Kind of Design. The company is having many products, which are produced by using the white cement, differentiates company products from competitors product. The company is having strategy of going for more tonnage; better quality and customer service rather than more margin. The focus is on the all-round development of the communities around the plants located mostly in distant rural areas and tribal belts. All the group companies- Grasim, Hindalco, Indian Rayon, Indo Gulf & Indal have Rural Development Cells, which are the implementation bodies. Projects are planned after a participatory assessment of the communities around the plants. Each project has a one-year and a three-year rolling plan, with milestones and measurable targets. The objective is to face out the companies presence over a period of time and handover the reins of further development to the people.

MARKETING STRATGY:

Grasim Industries have always endeavored to stay ahead in the competition by adopting innovative ways of marketing and at the same time maintaining premier pricing policies of brands. The cement industry in India has come along way since the deregulation and subsequent liberalization. The Indian consumers have been hit by tidal waves of cement brands. This phenomenon of industry consolidation is increasing competition at the top end. These developments spell increased choice and better quality to customer. To serve consumer the best, they started providing knowledge on good quality concrete and mortar making practices. This led to the launch of TECHNICAL ASSISTANCE AND SEVICE TO CUSTOMER (TASC) CELL. Large-scale training programs are organized for masons, site supervisors, and builders. The cell advises the customers about the availability of different types of cement, their advantages, and method of proper application.

Cement belongs to the product category where distribution plays a crucial role in marketing, and then says FMCGS where advertisement plays an equally important role. So the importance of distribution channel for Grasim Industries Limited has been rendered in following 3 ways. Direct marketing where the product is dispatched from factory or the goods shed to direct customers, this channel is followed only when large quantity is required for customers. Indirect marketing Either through trade or non-trade Birla super retail shops with suitable technical devices. Usual distribution channel i.e. wholesaler retailer customer network.

SYSTEMS:
The decision-making system within the organization can range from management intuition, to structured computer systems to complex expert systems and artificial intelligence. It includes Computer systems Operational Systems Marketing Systems HR Systems etc. Grasim industry is having its branch office at many places in India so as to ensure that the required information has been gathered at the right time and at the right place. In Grasim Industry the rules governing the employees are explained to each employee on joining the company. They will be provided with the handbook, which will be having all the information regarding the company. There are detailed procedures laid out by the corporate office on procurement of items and supplies, making travel arrangement, allowances, reimbursements, leave and other arrangements. In general HR department and the unit heads are responsible for ensuring that the staff follows all procedures. With regard to office systems, all the offices are computerized for the purpose to enable greater speed and timeliness of the completion of the projects. All the entries regarding marketing are done online with the help of Internet. So that there will not be any delay in communication and flow of information. With regards to performance appraisal system, the company has been providing many good opportunities to employees for their carrier development. The company does the

performance appraisal by conducting Induction training program for employees who joins the company. Also company conducts training program for the executives of all the levels one or two times a year. This is conducted in well known H.R. and Training institute of the company. QUALITY SYSTEMS

Birla White is the first cement plant to get ISO 9002 QMS Certification fromRWTUV, Germany. It is also IQRS Level-5, Certified from DNV, Netherlands Quality is the key-stone for the companys business excellence and our ultimate goal of total customer ( Internal / External/hidden) satisfaction.

STAFF:

Staff means that the company has hired able people, trained them well and assigned them to the right jobs. Selection, training, reward and recognition, retention, motivation and assignment to appropriate work are all key issues. Grasim Industry entry-level staff are recruited from premier Management and Engineering institutes through campus recruitment. Each regional unit head visits the management and an engineering institute located in their area and does the recruitment for the company. In entry-level fresher and people with one year or less than that also considered. Each unit specifies the number and type of people required and the recruitment is done as per that specification. The candidates are placed usually according to their location preference to particular unit or location. The entry-level recruitment process involves short listing and selecting the candidates based on resumes group discussion and personal interview. Middle level staff is recruited from the competing companies in the industry and also from company within itself. This involves personal interview and usually group discussion.

Senior level recruitment takes place by taking help from marketing companies or advertising companies or market research companies in the country.

SHARED VALUES:

Shared values means that the employees share the same guiding values. Values are things that you would strive for even if they were demonstrably not profitable. Values act as an organizations conscience, providing guidance in times of crisis. Identifying corporate values is also the first essential step in defining the organizations role in the larger community in which it functions. Shared Values are what engender trust. Values are the identity by which a company is known throughout its business areas. These values must be explicitly stated as both corporate objectives and individual values. The Aditya Birla Group is India's first truly multinational corporation. Global in vision, rooted in Indian values, the Group is driven by a performance ethic pegged on value creation for its multiple stakeholders. A US$ 8.3 billion conglomerate, with a market capitalization of US$ 12 billion, it is anchored by an extraordinary force of 82,000 employees belonging to over 20 different nationalities. Over 23 per cent of its revenues flow from its operations across the world. The Group's products and services offer distinctive customer solutions. Its 74 state-of-the-art manufacturing units and sectoral services spanIndia, Thailand, Laos, Indonesia, Malaysia, Philippines, Egypt, Canada, Australia andChina. A premium conglomerate, the Aditya Birla Group is a dominant player in all of the sectors in which it operates. Among these are viscose staple fibre, non-ferrous metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals, fertilizers, sponge iron, insulators, financial services, telecom, BPO and IT services.

O
STRENGTH:

Emerging as the largest producer in India and 7th largest in the World. Growing to 31 Mn. TPA with CemCo acquisition. 11 composite plants, 7 grinding units, 4 bulk terminals, 6 RMC plants Captive power plant at all locations. Strong national brands. Birla Plus, Birla Super, Birla Ready Mix and Birla WhiteLeading player in key consuming states of Maharashtra, Karnataka, Rajasthan, Punjab, Western U.P., Tamilnadu and Western M.P. Market leader in viscose staple fiber The fourth largest producer of insulators The fourth largest producer of carbon black The eleventh largest cement producer Among the most cost-efficient aluminum and copper producers. The fourth largest aluminum producer in Asia and the largest single location custom copper smelter Among the best energy-efficient fertilizer plants Excellent market position Domestic market share exceeds 10%
North (12.7%), East(9.2%),West(9.2%) and South(9.6%)

Largest producer of White Cement in India with capacity of 400,000 TPA (57% market share), 6th largest in the World Asias first gamma ray belt analyzer from Gamma Matrix (USA) ensuring the highest standards in online quality control. Indias first polycom (blast furnace slag grinder) with a dynamic air separator from Krupp Polysius Germany, which helps to generate the desired homogeneous particle size distribution. One of the few single kiln cement plants producing more than eight varieties of cement. Group With Diversified portfolio certification by quality check leaders like ISO and TQM

In India, the Group holds a frontrunner position as: A premier branded garments player The second largest player in viscose filament yarn A leading player in life insurance and asset management Among the top three BPO companies Among the first five mobile telephony players

WEAKNESS:
Supply is not adequate to meet the increasing demand Stringent Credit Policy No participation of lower workers in process of strategic planning fixing of goals and objectives. No uniform distribution channel for rural areas Communication between company and local people is not satidfactory

OPPORTUNITIES:
Increase the Manufacturing plants Increase the Distribution Network Untapped Rural and Urban Market Competing with global SMT ( Surface mount technology, Manufacturers) Entering into inventors and rectifies business. Opportunity to tap the untapped domestic market and local market (The local procedures constitute about 30-40% of domestic market)

THREATS:
Sever competition in Local as well as Global market

Wastage n normal loss is in high quantity Less number of marketing executives Demand for computer peripherals is not independent. It depends on the information technology industry.

 As most of raw material are imported their prices and supply depends on the international market conditions. In the industry technology changes very rapidly. As a result new and advanced machines will become absolute in very short period.

5. SUMMARY OF ANNUAL REPORT BALANCE SHEET AS 31ST MARCH, 2006 PARTICULORS

SOURCES OF FUNDS Shareholders Funds Share Capital Share Capital Suspense Reserve and Surplus

(Rs. in Crore) TOTAL Previous Year

2005-2006

91.67 0.02 4,890.39 4,982.08

91.67 0.02 4,890.39 4,328.35 1,439.02 535.79 33.53 2,008.34 599.50 6,936.19 5,897.04 2,848.17 3048.87 145.94 3,194.81 13.73 2,982.02

Loan Funds Secured Loans Unsecured Loans Document Bills Discounted with Banks Deferred Tax Liabilities TOTAL :APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation & Amortization Net Block Capital Work in Progress Fixed Assets held for disposal

1,331.08 586.27 62.32

1,979.67 584.38 7,546.13

6,114.12 3,109.49 3,004.63 293.64

3,298.27 12.76 3,481.71

Investments Current Assets, Loans and Advances Interest Accrued on Investments Inventories Sundry Debtors Cash and Bank Balance Loans and Advances Less : Current Liabilities and Provisions Liabilities Provisions Net Current Assets TOTAL :

1.46 750.73 413.45 155.58 705.54 2,026.76 969. 15 304.22 1,273.37 753.39 7,546.13

1.09 678.59 522.01 86.70 565.54 1.853.93

827.89 280.41 1,108.30 745.63 6,936.19

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2006

PARTICULORS

2005-2006

TOTAL

Rs. in Crore Previous Year

INCOME Gross Sales Less : Excise Duty Net Sales Interest & Dividend Income Other Income Increase / (Decrease) in stocks EXPENDITURE Raw Materials Consumed Manufacturing Expenses Purchase of Finished & Other Products Payments to Finished for other Products Payment to & Provisions for Employees Selling Distribution, Administrative & Other Expenses Interest Depreciation and Amortization

7,607.20 986.69 6,620.51 67.53 136.71 (43.27) 6,781.27 1,822.69 1,580.34 240.15 407.64 1,139.59 97.32 291.64 5,579.37 1,201.90 4.13 . 1,206.03 (369.82) 27.00 863.21 8.62 0.25 815.35 1,687.43

7,201.06 971.80 6,229.26 114.75 72.44 100.67 6,517.12 1,873.05 1,498.77 49.02 373.13 938.46 138.76 284.57 5,155.76 1,361.36 34.35 (92.00) 1,303.71 (451.00) 33.00 885.71 6.86 0.16 790.20 1.682.93

Profit before Tax &Exceptional Items Surplus on prepayment of sales tax loan Provision for diminution in value of Investment and loans Profit Before Tax Provision for Current Tax Deferred Tax Profit After Tax Debenture Redemption Reserve no Longer Required Investment Allowance Reserve no Longer Required Balance B/F from Previous year Profit available for appropriation appropriations Proposed Dividend Corporate Dividend Tax General Reserve Balance carried to balance sheet Basic and diluted earning per share (in Rs.

183.35 25.71 600.00 878.37 1,687.43 94.14

146.68 20.90 700.00 815.35 1,682.93 96.60

RATIO ANALYSIS:

PARTICULORS Profitability Ratio %: Operating Profit Ratio(Net IBIT / sales) Gross Profit Ratio(Gross Profit/Total Revenue) Net Profit Ratio(Net Profit / Net Sales) X 100 Turnover Ratio:

2004-05

Previous Years

Absolute Change In Ratio

20.88 22.55 13.00

25.89 25.79 14.53

-5.01 -3.24 -1.53

7.00 Inventory Turnover Ratio(Cost of Goods Sold / Average Inventory) Debtors Turnover Ratio{(Average Debtors / Sales )x 365} Fixed Assets Turnover Ratio(Net sales / Net Property, Plant & Equipment) Solvency Ratio: 1.09

6.81

0.19

16.06

11.95

4.11

2.20

2.05

0.15

Current Ratio(Current Assets/Current Liabilities) Debt Equity Ratio(Total Liabilities/Shareholders Equity)

1.09

0.00

0.40

0.46

0.06

14.25 Interest Covering Ratio-

11.64

2.61

Performance Ratio%: Return on Investment(Net PBT / Shareholders Equity) Return on Net worthDividend Yield(Annual Dividends Per Share/Price Per Share) 19.94 17.36 2.00 25.53 20.99 1.60 -25.59 -3.63 0.40

INTERPRETATION OF RATIO
PROFITABILITY RATIO:
Operating Profit Ratio: The operating margin is another measurement of managements efficiency. It compares the quality of a companys operations to its competitors. A business that has a higher operating margin than its industrys average tends to have lower fixed costs and a better gross margin, which gives management more flexibility in determining prices. This pricing flexibility provides an added measure of safety during tough economic times. Gross Profit Ratio:

Although we are only a few lines into the income statement, we can calculate our first ratio. The gross profit margin is a measurement of a companys manufacturing and distribution efficiency during the production process. The gross profit tells an investor the percentage of revenue / sales left after subtracting the cost of goods sold. A company that boasts a higher gross profit margin than its competitors and industry is more efficient. Investors tend to pay more for businesses that have higher efficiency ratings than their competitors, as these businesses should be able to make a decent profit as long as overhead costs are controlled [overhead refers to rent, utilities, etc.] Net Profit Ratio: The net profit margin ratio is the most commonly used profit margin ratio. A low profit margin ratio indicates that low amount of earnings, required to pay fixed costs and profits, are generated from revenues. A low profit margin ratio indicates that the business is unable to control its production costs. The profit margin ratio provides clues to the company's pricing, cost structure and production efficiency. The profit margin ratio is a good ratio to benchmark against competitors.

TUNROVER RATIO:
Inventory Turnover Ratio: The actual ratios calculated indicate that the total share holders funds are much lower than total assets which imply that the position of the creditors is safe as share capital including reserves is lower. In 2004-05 the ratio has been slightly increased but it does not affect the position of debenture holders. Debtors Turnover Ratio: The significance of this varies according to the proportion of cash sales and account sales. If retail business only sells cash (includes credit cards and cheques) then this ratio is not relevant at all, as debtors at any point in time will be zero. However, if sales are all the account customers then the number of days it takes to collect your debtors is probably the most important key management ratio. Fixed Assets Turnover Ratio:

The higher the Fixed Asset Turnover ratio, the more effective the company's investments in Net Property, Plant, and Equipment have become. It may have to search for the explanation in the financial statements to find out what investments were made, as large capital investment purchases may not immediately yield higher sales. It may take a year or more for the company to fully utilize those investments. If you can clearly see the company invested in major improvements heavily one year, it would be wise to watch the Fixed Asset Turnover closely over the next year to see if those investments actually helped the company.

SOLVENCY RATIO:
Current Ratio: Current Ratio indicates the relation between C.A & CI and it shows the firms financial stability or short term solvency of business. The ratios calculated above clearly indicated that CA are more than CL and the firm is solvent but when actual are compared to standard i.e. 2:1. They are below the industry standard, steps may be taken to improve current assets to reach the std. Ratio. Debt Equity Ratio: This establishes the relationship between outsiders funds and shareholders funds the acceptable norm for this ratio is 2:1. The actual ratios calculated for the year 04-05 are 0.40:1 and 0.46:1 respectively and they are above the std. ratio a low ratio indicates lower claims by creditors than owners. The company has less claim from creditors than owners as it is apparent from ratios calculated.

PERFORMANCE RATIO:
Return on Investment: A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an

investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio. Return on investment is a very popular metric because of its versatility and simplicity. That is, if an investment does not have a positive ROI, or if there are other opportunities with a higher ROI, then the investment should be not be undertaken.

Return on Net worth: Return on Net Worth : Net After Tax Profit divided by Net Worth, this is the 'final measure' of profitability to evaluate overall return. This ratio measures return relative to investment in the company. Put another way, Return on Net Worth indicates how well a company leverages the investment in it. May appear higher for startups and sole proprietorships due to owner compensation draws accounted as net profit. Dividend Yield: Dividend yield is a way to measure how much cash flow you are getting for each dollar invested in an equity position - in other words, how much "bang for your buck" you are getting from dividends. Investors who require a minimum stream of cash flow from their investment portfolio can secure this cash flow by investing in stocks paying relatively high, stable, dividend yields

LEARNING EXPERINCE
1. I have learnt about the implication & importance of product layout which is followed in aditya birla cement. 2. I gained the practical knowledge of 6 Sigma 3. Through the study I got the knowledge of how heterogeneous market is divide into homogenous market. 4. I came to know about the logistic management which is success performed in the Grasim Industry. 5. Grasim has an exposure to global market through which I understood the marketing operation in international market. 6. I gained the knowledge of resolving grievance handling through collective bargaining. 7. Monetary benefits are given to employees for motivation. This help me to gain knowledge of techniques of motivation. 8. I got the partial knowledge of forecasting future sales for a companys products 9. Performance of understood about the various techniques of performance appraisal i.e.360 appraisal, comparison method which is successfully implemented 10. I have gained the practical knowledge regarding various training method such as vestibule training lecture method.etc. 11. The study helped me to understand participative style of management which as followed in Grasim. 12. In Grasim trade union is affiliated to AITUC. I got the knowledge of functioning of trade union in industry. 13. I got the practical knowledge of FIFO method for material handling. 14. Grasim uses both internal and external sources for recruitment this helped me to know which source should be used for gaining quality work force.

15. I gained the knowledge regarding distribution strategy that has to be implemented in the industry. 16. The study tells that how the company sales executives, marketing managers are handles the market 17. As per study I understood that the marketing manager gets the target and reach there targets 18. I got the knowledge of the company forecast the market according to there demand and there sales

BIBLIOGRAPHY

Organization Behavior 6th Edition Himalaya Publishing House by K. ASHWATHAPPA. Organization Behavior 11th Edition by Stephon P. Robins Strategic management, By Alex Miller. Annual Report of Grasim Industries Limited Web Sites:

www.aidityabirla.com www.grasimindustries.com www.google.com www.wikepedia.com

CONCLUSION
Cement is one of the important materials in house construction and costs 12 to15% of cost. Cement is used in more of less all the important like Roof slab, beams, columns, lintels, brickwork and flooring. Cement imparts both strength and makes the building component strong. There are many companies which produce cement and sell the same under different brand name. The cement produced by the different companies differ in some attributes like quality, setting time, strength etc and they sell it at different prices.

So it is up to the organization to find out why customer buys particular brand of cement at particular price. This study helps the organization to find out the main factors considered while buying the particular brand of cement. The results of the study can be used to align the production and supply to be in line with customers expectations. By doing so company can increase its market share by adding more customers and can retain them very easily.