INTRODUCTION TO THE STUDY

This study in done in the A.K.Granites, Jegadevi, Krishnagiri District, Tamilnadu about the INVESTIGATION OF THE WAYS TO IMPROVE THE PERFORMANCE OF THE PLANT. In this study the background and problem formulation with discussion for the production department will be presented. Further on the limitations and purpose of the study will be stated in the methodology part. This study is to see the current situation of the company. Is the company using its manufacturing equipments in a proper way to get the competitive advantages and optimum utilization of available resources? If not, finding the main reason for the same. The availability, Quality and performance efficiency is measured. The influence of these problems to achieve the goals of the company is studied. The company cannot compete in the competitive market unless it uses it resources and capabilities to the maximum level. The company must have to work to get rid of the problems to get the competitive advantages with respect to cost, service, and quality and on time delivery. These issues do not allow the company to achieve its goals. The purpose of the study is to take a systematic and scientific way to analyze the current situation and suggest the ways to improve it to achieve the set goals.

INDUSTRY PROFILE

HISTORY
India is one among the leading countries in mining and export of granite and is rich in granite reserves. Geologically, the southern and eastern belts of the Nation are abundant in granite deposits. Different shades of granites are available in abundance in Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra, Assam, Bihar, Rajasthan, Odisha, Meghalaya and Madhya Pradesh. Indian Granite Stone has become the most sought-after and extensively used stone material in building construction and massive structural works throughout the world, and it is well known in the International market, not only for its elegance and aesthetic quality, but also for its durability. The Granite Industry has received a wider publicity and corporate importance in the last few years. The industry is emerging now as a thrust-export-area with several corporate houses, supported by expert professionals trained in all aspects, entering the sector with sophisticated world-class machinery and making it an organized one. Many overseas buyers, including the Japanese, are the regular importers of the Jet Black Material, which is considered to be the world's best variety and is found in abundance in Tamil Nadu, Andhra Pradesh and Karnataka. Bu they have, of late, lost confidence in the supply of materials owing to its interrupted schedule. This was because of inconsistent policies of the Governments towards the industry, together with political interference in mining lease and other procedures. India is one of the leading nations in the production and export of Granite and other stones. Granite is a very hard crystalline, igneous or metamorphic rock primarily composed of feldspar, quartz and lesser amounts of dark minerals. India has vast resources of granite with about 110 varieties of different colours and textures such as black, grey, pink, multi coloured, etc. These varieties are used to produce monuments, building slabs, titles, surface plates etc. However, popular varieties are mainly found in South India.

BRIEF INTRODUCTION
Granite in the form of slabs and tiles has several attractive features, which, inter alia, includes extra-fine mirror-polish, scratch-free glossy surface and durability. Granite can be compared very well with other floor and wall application materials such as ceramics and marble. Mining for granite is done manually. For drilling and channeling hand chisels and hammers are used. There are very few quarries that have mining machinery, such as compressors and drilling machines for drilling and blasting, cranes for lifting big blocks, and dampers and trucks for transport. Operations that are involved in the processing of granite are:

Dressing Cutting/Sawing Surface Grinding and Polishing Edge-Cutting-Trimming

Granites are now mined in most of the Indian states for use as construction material and road metal but production of dressed granite blocks and slabs from Andhra Pradesh, Karnataka, Rajasthan and Tamil Nadu are highly priced. In India there are 43 granite processing units of which 12 are in Andhra Pradesh, 13 in Karnataka, 3 in Rajasthan, 14 in Tamil Nadu and 1 in Odisha. During the last five years exports have grown steadily by about 10% a year but this growth rate may increase even more in the near future. New companies may not be entering the industry but many existing companies are steadily increasing their production capacity to meet demand. New technology investments are being made with the aim of increasing sales and reducing costs. In the last few years CNC machines have been employed in many factories for making complicated designs. Usually the diamond tools and other consumables are imported, to the extent of 80% of total demand, and amounting to between 5 and 6 million US dollars per year.

SIZE OF THE INDUSTRY

There are 100 manufacturers in India for Granites and there are also a few trading companies. In the last 5 years the capacity of these companies has increased by about 10% annually, suggesting a certain stability and sustainability. Big companies are considered to be those that have the capacity of manufacturing seven or more containers per month- and there are about 20 such companies. On an average about 75 workers are employed in a company. Total the direct employment in the Indian Granite industry is about 10000 people. Indirect employment comes to another 10000 people. About 80% of the manufacturers are located in the state of Tamil Nadu while the rest are located in the neighbouring states of Karnataka and Andhra Pradesh. The entire gravestone industry is located in the south of the country which is where most of the granite quarries are to be found.

TOTAL CONTRIBUTION TO THE ECONOMY/ SALES

Total Granite production in the Indian industry is estimated to be about 350 to 400 containers a month. (A curious unit - when referring to blocks the normal term used is cubic metres, in slabs, the measurement unit is square metres or square feet, while in the gravestones the reference point tends to be containers). As mentioned before, the entire production is exported. Presently about 180 to 200 containers are exported to Europe, approximately 50 containers a month are exported to United States, 40 containers to Japan while the rest are sent to Australia, New Zealand, South Africa and other countries. The months of November, December and most of January are considered to be the low season when monthly production drops to about half. An average container has a price of US$ 18000 to US$ 24000, depending on the materials used and the complexity of the designs, thus the total industry size is estimated to be approximately US $ 85 million.

DOMESTIC AND EXPORT SHARE

Granite importing countries such as the US, China, Italy have reduced their requirements. India's granite and natural stone exports could be down by 15-20 per cent per year according to CAPEXIL (formerly Chemicals & Allied Products Export Promotion Council).

LATEST DEVELOPMENTS

India has one of the largest reserves of granite in the world and exported Rs 2,600 crore (Rs 26 billion) worth of the stone in the past years. Granite exports this fiscal are expected to touch Rs 2,800 crore (Rs 28 billion) and nearly one-fourth of these exports is accounted for by monument stones.

About 85-90 % of the total granite production in the country is for exports. So after the recession period is over the industry will again regain its demand .This is the best time for an entrepreneur to venture into this sector.

Last fiscal, the total exports of granite and marble from India had crossed the Rs 4,000 crore marks with the US accounting for the bulk of the consumption (40%). The All India Granite and Stones Association (AIGSA), which estimated a 10 % increase in overseas sales for 2007-08, found the export market no more lucrative. The granite industry in Rajasthan has been growing at 50% annually. But this growth has serious social and environmental costs. As the water sources are being depleted, forcing farmers to become laborers in the granite industry.

Rajasthan Granite mining is an approximately Rs 800 crore industry today; it forms 95% of Indias dimension stone exports.

Updated: Jan 2011

Granite technology refers to a light coloured granulose plutonic rock composed of felspars, plagioslase, quartx(felsic minerals) and minor amount of mafic minerals such as biotite, hornblende, pyroxene, iron oxides , etc. But, in the commercial parlance, the tem

granite has become synonymous with all those crystalline rocks which have pleasing colours, strengths to bear the processes of quarrying and cutting & polishing and are used commonly for decorative purposes. Being more resistant to wear and tear as well as weathering, granite is most sought after stone to be used in building as well as decorative stones. The fascinating for granite is due to its taking mirror like polish, high compressive strengths, longevity and beauty. India possesses enormous deposits of all types of dimension stones. It is one of the largest producers of the dimension stones in the world. The dimension stone industry employs over one million work forces. This industry plays a vital role in the economic states like Tamilnadu, Andhra Pradesh , Karnataka and Rajasthan. Rural economy of many developing states like Madhya Pradesh, Uttar Pradesh, Orissa, and North Eastern states is dependent on this industry. The Granite used for decorative purpose is more costlier in comparison with other materials. Hence, its utilization and trade within the country has been at a low profile compared with the exports. With the emergence of the rich middle class and spurt in construction activity, the internal trade is on the rise. Although Granite is a minor mineral, it is a major contribution in foreign exchange earnings. India is the second largest exporter of raw granite after China and ahead of Brazil and South Africa. India ranked fifth in the export of processed (Value added finished) product.

RESOURCES
India is endowed with abundant resource of a wide variety of granite. As on 1.4.2005, resources of granite dimensions stones of all types are estimated at 37,426 million cubic meters. Of these resources (about 3 %) fall in reserves category while remaining 36,296 million cubic metres or about 97% fall in resources category. Grandwise classification reveals that about 8% resources fall under black granite while 91% under coloured granite. About 1% reserves and resources are of unclassified grade. Under reserve category, about 23 million cubic metres of all grades fall under proved category while 1,162 million cubic metres fall under probable category.

Statewise breakup of resources reveals that Karnataka with about 25% resources is leading followed by Jharkand (24%) , Rajasthan (23%), Andhra Pradesh (6%), Madhya Pradesh(5%), and Orissa(5%) which together accounted for 88% resources. With regards to reserves, about 93% reserves are located in Madhya Pradesh (86%) and Orissa (7%).

THE MARKET PROSPECTS

Granite called as King of stones because of its inherent characteristics such as extra fine mirror polish, scratch free glossy surface and durability. Indian granite has become the most sought after and extensively used stone material in building constructions and massive structural works throughout the world and is well known in the international market not only for its elegance and aesthetic quality but also for its durability. The usage of granite tiles and slabs is increasing as the construction activity is growing up. There is huge market potential for granite monuments in overseas. Slabs of fine finish are also being exported from our district. As there are large resources in our district, the cutting and polishing activity becomes good investment decision.

COMPETITOR ANALYSIS
CURRENT SCENARIO The rapid development of urban areas, high-rise buildings, housing complexes, malls, Governmental and Non Governmental building make use of granites for both their interiors and exteriors. Once limited to the wealthy, granite has now become a part of the common people use because of the supply of granite from the new granite industries. MAJOR PLAYERS Pokarna Limited Akar Granite Industries Aro Granite Industries Shreeji Granites Madhucon Granites Hill Top Granites MSP Granites.

COMPANY PROFILE
A.k Granites are granite quarry owners, manufacturers, exporters and suppliers of RAW GRANITE BLOCKS from India. A.K.GRANITES, a name that evokes in-depth experience, best quality, enduring commitment, personal touch, dedication towards providing best service to clients and devoted towards timely service. Incorporated in the year 2008, the company is involved in the Manufacture, Export and Supply of Rough Granite Blocks with highest international quality. The Company has grown from strength to strength and has successfully carved a niche for itself in the international market. The company also provides global business solutions to granite needs. The primary objective of the organization is to play a pivotal role in the granite industry both in the corporate and service sectors. Besides, we at A.K.GRANITES, have our own exclusive quarrying for allied Granites. The company is empowered with quarrying to give the best services to our diverse base of clients. The company is pleased to show you our vast selection of astonishing product lines available in the Industry. The quality of our products is chiseled to excel the epitome of perfection. Our stones are marveled in excellence. Our products are excellent in its texture and composition. Each stone we manufacture undergoes through various quality testing procedures to ensure they represent the model of flawless art.

We export rough granite blocks We have our own granite quarries We have captive and associate quarries in granite and marble We regularly supply to granite factories across the world to making Granite Slabs, Tiles, Kitchen Tops, Sinks and Moments Satisfied clients across the world.

We can source granite blocks from our own captive and associate quarries. These quarries have been chosen after careful consideration, studying their material consistency, supply capacity and integrity. Today our granite products have remained a symbol of quality & beauty for architects and buildes. We offer a range of sizes, including large-sized blocks suitable for all gang saw and block cutter machines. We regularly export rough blocks to leading granite processors and traders in USA, UK, Canada, Germany, South Africa, Australia, European countries, Middle East, East Asia, etc.

QUALITY POLICY:
The surest guarantee of customer satisfaction results from developing a product integrity, of which the seller can be proud and the buyer confident. Our efficient machines, coupled with our skilled workforce, enable us to deliver the granite blocks on time and facilitate production at lower costs.

PRODUCTS
We export a variety of Rough Granite Blocks at competitive prices, ensuring excellent service. India is recognized as one of the largest producers and exporters of granite blocks in the world market. Our granite blocks adhere to the highest international standards and provide excellent uniformity and consistency. We export granite blocks that are produced in a very wide range of colors and textures.

Our Product Range includes,

Paradiso Classic Granite Blocks Impala Black Granite Rough Granite Blocks Regal Black Granite Paradiso Granite Blocks.

12" x 12" / 305 x 305 24 x 12 / 610 x 305 16" x 16" / 405 x 405 x 10mm x 10mm x 12mm

18" x 18" / 457 x 457 x 12mm

24" x 24" / 610 x 610 x 20mm

Cut-to-Size

CHAPTER III FUNCTIONAL ANALYSIS OF DEPARTMENTS

1. HR DEPARTMENT 2. FINANCE DEPARTMENT 3. PRODUCTION DEPARTMENT 4. LOGISTICS DEPARTMENT 5. QUALITY DEPARTMENT

HR DEPARTMENT
The Human Resource Department deals with management of people within the organization. There are a number of responsibilities that come with this title. First of all, the Department is responsible for hiring members of staff; this will involve attracting employees, keeping them in their positions and ensuring that they perform to expectation. Besides, the Human Resource Department also clarifies and sets day to day goals for the organization. It is responsible for organization of people in the entire Company and plans for future ventures and objectives involving people in the Company.

STRUCTURE

FINANCE DEPARTMENT
The Finance department ensure that there are adequate funds available to acquire the resources needed to help the organization achieve its objectives and ensure costs are controlled. The Organization will work on adequate cash flow and establish and control profitability levels. One of the major roles of the finance department is to identify appropriate financial information prior to communicating this information to managers and decision-makers, in order that they may make informed judgements and decisions. Finance also prepares financial documents and final accounts for managers to use and for reporting purposes.

FINANCIAL ASPECTS A. FIXED CAPITAL 1. LAND & BUILDING

a. Land i. Cost of land (1.34 Acres) ii. Site Developement b. Buildings S.NO i DESCRIPTION Main Factory shed 40 Ft X 75 Ft (3000 Sq. ft.) Rs.500 per Sq. ft. 15,00,000/SIZE UNIT RATE AMOUNT IN RS. : : Rs. 12,00,000 Rs. 1,50,000

Auxiliary structures Ii Office unit 15 X 18 (270 Sq. ft.) iii iv Bore well and water connections and compound wall Sanitary and plumbing charges --30,000/18,01,500/--1,50,000/Rs.450 per Sq. ft. 1,21,500/-

TOTAL CIVIL CONSTRUCTION COST

2. MACHIERY & EQUIPMENT

S.NO DESCRIPTION i Automatic vertical Block cutting ii iii iv v vi vii viii vii vii viii viii machine Automatic vertical Block cutting machine Super saw edge cutting machine; Bridge type auto polishing Machine Radial Hand polishing Machine Gantry Crane Granite Calibration Machine EOT Crane Excise Duty & Cess @ 10.3 % CST @ 2 % Packaging & Forwarding Charges @ 2 % Installation & Erection Charges @ 3 % TOTAL 3. OTHER FIXED EXPENSES S.NO i ii iii iv v DESCRIPTION Wooden Furniture for office Fire Fighting Equipment Dell Inspiron 560 Desktop Computer Electrical equipment Preliminary & Pre-operative charges TOTAL AMOUNT IN RS. 25,000 75,000 55,000/3,50,000/50,000/5,55,000/NOS 1 1 2 1 6 1 1 1 RATE(Rs) 9,50,000 9,25,000 2,25,000 9,25,000 96,500 28,75,000 1,50,000 2,00,000 TOTAL AMOUNT IN RS. 9,50,000 9,25,000 4,50,000 9,25,000 5,79,000 21,75,000 1,50,000 3,75,000 64,29,000 6,62,187 1,28,580 1,28,580 1,92,870 75,41,217

TOTAL FIXED CAPITAL INVESTMENT

2 2 3 Cost of Land Buildings Machinery & Equipment 12,00,000/18,01,500/75,41,217/-

Other Fixed Expenditure TOTAL

5,55,000/1,10,97,717/- Say Rs. 1,10,00,000

2. SALARY & WAGES

SL.NO . I I Ii Iii Iii Iv DESIGNATION Manager Production Supervisor Machine Operator Semi Skilled Worker Accountant cum Store keeper Watchman TOTAL NOS 1 6 24 12 1 3 47 SALARY Rs. 10,000 Rs. 8,000 Rs. 6,000 Rs. 4,500 Rs. 5,000 Rs. 3,500 TOTAL AMOUNT(in RS.) 10,000 48,000 1,44,000 54,000 5,000 10,500 2,71,500

3. UTILITIES
SL.NO. i DESCRIPTION Electricity UNIT 20888 Units RATE/UNIT Rs. 4.25 AMOUNT (in RS.) 88,774 88,774

(motive power: 70 HP) (70X0.746X16X25) TOTAL

4. OTHER EXPENSES
SL.NO. I ii iii iv v vi vii DESCRIPTION Transportation & Conveyance Repair & Maintenance Insurance Telephone Charges Other Consumables Advertisement & Publicity Miscellaneous expenses TOTAL AMOUNT (in RS.) 10,000 5,000 10,000 2,000 5,000 5,000 4,000 41,000

TOTAL RECURRING EXPENDITURE

1 1 2 3 4

Cutting & Polishing Abrassives Raw Materials Salaries & Wages for Personnel Utilities Other Expenses TOTAL

2,55,375/5,00,000/2,71,500/88,774/41,000/11,56,649 Say Rs.12,00,000

TOTAL CAPITAL INVESTMENT I) TOTAL FIXED CAPITAL II) TOTAL WORKING CAPITAL TOTAL : Rs. 1,22,00,000 : : Rs. 1,10,00,000 Rs. 12,00,000

MEANS OF FINANCE I) MY CONTRIBUTION (@ 5 % On Capital Investment) II) TERM LOAN FROM BANK III) LOAN FOR WORKING CAPITAL COST OF PRODUCTION (per annum) SL.NO 1 2 3 4 5 PARTICULARS Total Recurring Cost Depreciation @ 5% on Buildings Depreciation @ 10% on Machinery & Equipment Depreciation @ 15% on Office Furniture Interest on Total Investment @ 12% AMOUNT IN RS. 1,44,00,000 90,075 7,67,122 3,750 14,64,000 : : Rs. 1,04,50,000 Rs. 11,40,000 : Rs. 6,10,000

TOTAL TOTAL SALES (per Annum) BY SALE OF 1,50,000 sft Granite slabs @ Rs. 120 / sft TOTAL

1,67,24,947

Rs. 1,80,00,000 Rs. 1,80,00,000

PRODUCTION DEPARTMENT INTRODUCTION TO THE STUDY

This study in done in the A.K.Granites, Jegadevi, Krishnagiri District, Tamilnadu about the INVESTIGATION OF THE WAYS TO IMPROVE THE PERFORMANCE OF THE PLANT. In this study the background and problem formulation with discussion for the production department will be presented. Further on the limitations and purpose of the study will be stated in the methodology part. This study is to see the current situation of the company. Is the company using its manufacturing equipments in a proper way to get the competitive advantages and optimum utilization of available resources? If not, finding the main reason for the same. The availability, Quality and performance efficiency is measured. The influence of these problems to achieve the goals of the company is studied. The company cannot compete in the competitive market unless it uses it resources and capabilities to the maximum level. The company must have to work to get rid of the problems to get the competitive advantages with respect to cost, service, and quality and on

time delivery. These issues do not allow the company to achieve its goals. The purpose of the study is to take a systematic and scientific way to analyze the current situation and suggest the ways to improve it to achieve the set goals.

INDUSTRY PROFILE

HISTORY
India is one among the leading countries in mining and export of granite and is rich in granite reserves. Geologically, the southern and eastern belts of the Nation are abundant in granite deposits. Different shades of granites are available in abundance in Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra, Assam, Bihar, Rajasthan, Odisha, Meghalaya and Madhya Pradesh. Indian Granite Stone has become the most sought-after and extensively used stone material in building construction and massive structural works throughout the world, and it is well known in the International market, not only for its elegance and aesthetic quality, but also for its durability.

The Granite Industry has received a wider publicity and corporate importance in the last few years. The industry is emerging now as a thrust-export-area with several corporate houses, supported by expert professionals trained in all aspects, entering the sector with sophisticated world-class machinery and making it an organized one. Many overseas buyers, including the Japanese, are the regular importers of the Jet Black Material, which is considered to be the world's best variety and is found in abundance in Tamil Nadu, Andhra Pradesh and Karnataka. Bu they have, of late, lost confidence in the supply of materials owing to its interrupted schedule. This was because of inconsistent policies of the Governments towards the industry, together with political interference in mining lease and other procedures. India is one of the leading nations in the production and export of Granite and other stones. Granite is a very hard crystalline, igneous or metamorphic rock primarily composed of feldspar, quartz and lesser amounts of dark minerals. India has vast resources of granite with about 110 varieties of different colours and textures such as black, grey, pink, multi coloured, etc. These varieties are used to produce monuments, building slabs, titles, surface plates etc. However, popular varieties are mainly found in South India.

BRIEF INTRODUCTION
Granite in the form of slabs and tiles has several attractive features, which, inter alia, includes extra-fine mirror-polish, scratch-free glossy surface and durability. Granite can be compared very well with other floor and wall application materials such as ceramics and marble. Mining for granite is done manually. For drilling and channeling hand chisels and hammers are used. There are very few quarries that have mining machinery, such as compressors and drilling machines for drilling and blasting, cranes for lifting big blocks, and dampers and trucks for transport. Operations that are involved in the processing of granite are:

Dressing Cutting/Sawing

Surface Grinding and Polishing Edge-Cutting-Trimming

Granites are now mined in most of the Indian states for use as construction material and road metal but production of dressed granite blocks and slabs from Andhra Pradesh, Karnataka, Rajasthan and Tamil Nadu are highly priced. In India there are 43 granite processing units of which 12 are in Andhra Pradesh, 13 in Karnataka, 3 in Rajasthan, 14 in Tamil Nadu and 1 in Odisha. During the last five years exports have grown steadily by about 10% a year but this growth rate may increase even more in the near future. New companies may not be entering the industry but many existing companies are steadily increasing their production capacity to meet demand. New technology investments are being made with the aim of increasing sales and reducing costs. In the last few years CNC machines have been employed in many factories for making complicated designs. Usually the diamond tools and other consumables are imported, to the extent of 80% of total demand, and amounting to between 5 and 6 million US dollars per year.

SIZE OF THE INDUSTRY

There are 100 manufacturers in India for Granites and there are also a few trading companies. In the last 5 years the capacity of these companies has increased by about 10% annually, suggesting a certain stability and sustainability. Big companies are considered to be those that have the capacity of manufacturing seven or more containers per month- and there are about 20 such companies. On an average about 75 workers are employed in a company. Total the direct employment in the Indian Granite industry is about 10000 people. Indirect employment comes to another 10000 people. About 80% of the manufacturers are located in the state of Tamil Nadu while the rest are located in the neighbouring states of Karnataka and Andhra Pradesh. The entire gravestone industry is

located in the south of the country which is where most of the granite quarries are to be found.

TOTAL CONTRIBUTION TO THE ECONOMY/ SALES

Total Granite production in the Indian industry is estimated to be about 350 to 400 containers a month. (A curious unit - when referring to blocks the normal term used is cubic metres, in slabs, the measurement unit is square metres or square feet, while in the gravestones the reference point tends to be containers). As mentioned before, the entire production is exported. Presently about 180 to 200 containers are exported to Europe, approximately 50 containers a month are exported to United States, 40 containers to Japan while the rest are sent to Australia, New Zealand, South Africa and other countries. The months of November, December and most of January are considered to be the low season when monthly production drops to about half. An average container has a price of US$ 18000 to US$ 24000, depending on the materials used and the complexity of the designs, thus the total industry size is estimated to be approximately US $ 85 million.

DOMESTIC AND EXPORT SHARE

Granite importing countries such as the US, China, Italy have reduced their requirements. India's granite and natural stone exports could be down by 15-20 per cent per year according to CAPEXIL (formerly Chemicals & Allied Products Export Promotion Council).

LATEST DEVELOPMENTS

India has one of the largest reserves of granite in the world and exported Rs 2,600 crore (Rs 26 billion) worth of the stone in the past years. Granite exports this fiscal are expected to touch Rs 2,800 crore (Rs 28 billion) and nearly one-fourth of these exports is accounted for by monument stones.

About 85-90 % of the total granite production in the country is for exports. So after the recession period is over the industry will again regain its demand .This is the best time for an entrepreneur to venture into this sector.

Last fiscal, the total exports of granite and marble from India had crossed the Rs 4,000 crore marks with the US accounting for the bulk of the consumption (40%). The All India Granite and Stones Association (AIGSA), which estimated a 10 % increase in overseas sales for 2007-08, found the export market no more lucrative. The granite industry in Rajasthan has been growing at 50% annually. But this growth has serious social and environmental costs. As the water sources are being depleted, forcing farmers to become laborers in the granite industry.

Rajasthan Granite mining is an approximately Rs 800 crore industry today; it forms 95% of Indias dimension stone exports.

Updated: Jan 2011

Granite technology refers to a light coloured granulose plutonic rock composed of felspars, plagioslase, quartx(felsic minerals) and minor amount of mafic minerals such as biotite, hornblende, pyroxene, iron oxides , etc. But, in the commercial parlance, the tem granite has become synonymous with all those crystalline rocks which have pleasing colours, strengths to bear the processes of quarrying and cutting & polishing and are used commonly for decorative purposes. Being more resistant to wear and tear as well as weathering, granite is most sought after stone to be used in building as well as decorative stones. The fascinating for granite is due to its taking mirror like polish, high compressive strengths, longevity and beauty. India possesses enormous deposits of all types of dimension stones. It is one of the largest producers of the dimension stones in the world. The dimension stone industry employs over one million work forces. This industry plays a vital role in the economic states like Tamilnadu, Andhra Pradesh , Karnataka and Rajasthan. Rural economy of many developing states like Madhya Pradesh, Uttar Pradesh, Orissa, and North Eastern states is dependent on this industry. The Granite used for decorative purpose is more costlier in comparison with other materials. Hence, its utilization and trade within the country has been at a low profile

compared with the exports. With the emergence of the rich middle class and spurt in construction activity, the internal trade is on the rise. Although Granite is a minor mineral, it is a major contribution in foreign exchange earnings. India is the second largest exporter of raw granite after China and ahead of Brazil and South Africa. India ranked fifth in the export of processed (Value added finished) product.

RESOURCES
India is endowed with abundant resource of a wide variety of granite. As on 1.4.2005, resources of granite dimensions stones of all types are estimated at 37,426 million cubic meters. Of these resources (about 3 %) fall in reserves category while remaining 36,296 million cubic metres or about 97% fall in resources category. Grandwise classification reveals that about 8% resources fall under black granite while 91% under coloured granite. About 1% reserves and resources are of unclassified grade. Under reserve category, about 23 million cubic metres of all grades fall under proved category while 1,162 million cubic metres fall under probable category. Statewise breakup of resources reveals that Karnataka with about 25% resources is leading followed by Jharkand (24%) , Rajasthan (23%), Andhra Pradesh (6%), Madhya Pradesh(5%), and Orissa(5%) which together accounted for 88% resources. With regards to reserves, about 93% reserves are located in Madhya Pradesh (86%) and Orissa (7%).

THE MARKET PROSPECTS

Granite called as King of stones because of its inherent characteristics such as extra fine mirror polish, scratch free glossy surface and durability. Indian granite has become the most sought after and extensively used stone material in building constructions and massive structural works throughout the world and is well known in the international market not only for its elegance and aesthetic quality but also for its durability. The usage of granite tiles and slabs is increasing as the construction activity is growing up. There is huge market potential for granite monuments in overseas. Slabs of

fine finish are also being exported from our district. As there are large resources in our district, the cutting and polishing activity becomes good investment decision.

COMPETITOR ANALYSIS
CURRENT SCENARIO The rapid development of urban areas, high-rise buildings, housing complexes, malls, Governmental and Non Governmental building make use of granites for both their interiors and exteriors. Once limited to the wealthy, granite has now become a part of the common people use because of the supply of granite from the new granite industries. MAJOR PLAYERS Pokarna Limited Akar Granite Industries Aro Granite Industries Shreeji Granites Madhucon Granites Hill Top Granites MSP Granites.

COMPANY PROFILE
A.k Granites are granite quarry owners, manufacturers, exporters and suppliers of RAW GRANITE BLOCKS from India. A.K.GRANITES, a name that evokes in-depth experience, best quality, enduring commitment, personal touch, dedication towards providing best service to clients and devoted towards timely service. Incorporated in the year 2008, the company is involved in the Manufacture, Export and Supply of Rough Granite Blocks with highest international quality. The Company has grown from strength to strength and has successfully carved a niche for itself in the international market. The company also provides global business solutions to granite needs. The primary objective of the organization is to play a pivotal role in the granite industry both in the corporate and service sectors. Besides, we at A.K.GRANITES, have our own exclusive quarrying for allied Granites. The company is empowered with quarrying to give the best services to our diverse base of clients. The company is pleased to show you our vast selection of astonishing product lines available in the Industry.

The quality of our products is chiseled to excel the epitome of perfection. Our stones are marveled in excellence. Our products are excellent in its texture and composition. Each stone we manufacture undergoes through various quality testing procedures to ensure they represent the model of flawless art.

We export rough granite blocks We have our own granite quarries We have captive and associate quarries in granite and marble We regularly supply to granite factories across the world to making Granite Slabs, Tiles, Kitchen Tops, Sinks and Moments Satisfied clients across the world.

We can source granite blocks from our own captive and associate quarries. These quarries have been chosen after careful consideration, studying their material consistency, supply capacity and integrity. Today our granite products have remained a symbol of quality & beauty for architects and buildes. We offer a range of sizes, including large-sized blocks suitable for all gang saw and block cutter machines. We regularly export rough blocks to leading granite processors and traders in USA, UK, Canada, Germany, South Africa, Australia, European countries, Middle East, East Asia, etc.

QUALITY POLICY:
The surest guarantee of customer satisfaction results from developing a product integrity, of which the seller can be proud and the buyer confident. Our efficient machines, coupled with our skilled workforce, enable us to deliver the granite blocks on time and facilitate production at lower costs.

PRODUCTS
We export a variety of Rough Granite Blocks at competitive prices, ensuring excellent service. India is recognized as one of the largest producers and exporters of granite blocks in the world market. Our granite blocks adhere to the highest international standards and provide excellent uniformity and consistency. We export granite blocks that are produced in a very wide range of colors and textures.

Our Product Range includes,

Paradiso Classic Granite Blocks Impala Black Granite Rough Granite Blocks Regal Black Granite

Paradiso Granite Blocks.

12" x 12" / 305 x 305 24 x 12 / 610 x 305 16" x 16" / 405 x 405 x 10mm x 10mm x 12mm

18" x 18" / 457 x 457 x 12mm

24" x 24" / 610 x 610 x 20mm

Cut-to-Size

CHAPTER III FUNCTIONAL ANALYSIS OF DEPARTMENTS

HR DEPARTMENT FINANCE DEPARTMENT PRODUCTION DEPARTMENT

HR DEPARTMENT
The Human Resource Department deals with management of people within the organization. There are a number of responsibilities that come with this title. First of all, the Department is responsible for hiring members of staff; this will involve attracting employees, keeping them in their positions and ensuring that they perform to expectation. Besides, the Human Resource Department also clarifies and sets day to day goals for the organization. It is responsible for organization of people in the entire Company and plans for future ventures and objectives involving people in the Company.

STRUCTURE

FINANCE DEPARTMENT
The Finance department ensure that there are adequate funds available to acquire the resources needed to help the organization achieve its objectives and ensure costs are controlled. The Organization will work on adequate cash flow and establish and control profitability levels. One of the major roles of the finance department is to identify appropriate financial information prior to communicating this information to managers and decision-makers, in order that they may make informed judgements and decisions. Finance also prepares financial documents and final accounts for managers to use and for reporting purposes.

FINANCIAL ASPECTS A. FIXED CAPITAL 3. LAND & BUILDING

a. Land i. Cost of land (1.34 Acres) ii. Site Developement b. Buildings S.NO i DESCRIPTION Main Factory shed 40 Ft X 75 Ft (3000 Sq. ft.) Rs.500 per Sq. ft. 15,00,000/SIZE UNIT RATE AMOUNT IN RS. : : Rs. 12,00,000 Rs. 1,50,000

Auxiliary structures Ii Office unit 15 X 18 (270 Sq. ft.) iii iv Bore well and water connections and compound wall Sanitary and plumbing charges --30,000/18,01,500/--1,50,000/Rs.450 per Sq. ft. 1,21,500/-

TOTAL CIVIL CONSTRUCTION COST

4. MACHIERY & EQUIPMENT

S.NO DESCRIPTION i Automatic vertical Block cutting ii iii iv v vi vii viii vii vii viii viii machine Automatic vertical Block cutting machine Super saw edge cutting machine; Bridge type auto polishing Machine Radial Hand polishing Machine Gantry Crane Granite Calibration Machine EOT Crane Excise Duty & Cess @ 10.3 % CST @ 2 % Packaging & Forwarding Charges @ 2 % Installation & Erection Charges @ 3 % TOTAL 3. OTHER FIXED EXPENSES S.NO i ii iii iv v DESCRIPTION Wooden Furniture for office Fire Fighting Equipment Dell Inspiron 560 Desktop Computer Electrical equipment Preliminary & Pre-operative charges TOTAL AMOUNT IN RS. 25,000 75,000 55,000/3,50,000/50,000/5,55,000/NOS 1 1 2 1 6 1 1 1 RATE(Rs) 9,50,000 9,25,000 2,25,000 9,25,000 96,500 28,75,000 1,50,000 2,00,000 TOTAL AMOUNT IN RS. 9,50,000 9,25,000 4,50,000 9,25,000 5,79,000 21,75,000 1,50,000 3,75,000 64,29,000 6,62,187 1,28,580 1,28,580 1,92,870 75,41,217

TOTAL FIXED CAPITAL INVESTMENT

2 2 Cost of Land Buildings 12,00,000/18,01,500/-

 3 3

Machinery & Equipment Other Fixed Expenditure TOTAL

75,41,217/5,55,000/1,10,97,717/- Say Rs. 1,10,00,000

2. SALARY & WAGES

SL.NO . I I Ii Iii Iii Iv DESIGNATION Manager Production Supervisor Machine Operator Semi Skilled Worker Accountant cum Store keeper Watchman TOTAL NOS 1 6 24 12 1 3 47 SALARY Rs. 10,000 Rs. 8,000 Rs. 6,000 Rs. 4,500 Rs. 5,000 Rs. 3,500 TOTAL AMOUNT(in RS.) 10,000 48,000 1,44,000 54,000 5,000 10,500 2,71,500

3. UTILITIES
SL.NO. i DESCRIPTION Electricity UNIT 20888 Units RATE/UNIT Rs. 4.25 AMOUNT (in RS.) 88,774 88,774

(motive power: 70 HP) (70X0.746X16X25) TOTAL

4. OTHER EXPENSES
SL.NO. I ii iii iv v vi vii DESCRIPTION Transportation & Conveyance Repair & Maintenance Insurance Telephone Charges Other Consumables Advertisement & Publicity Miscellaneous expenses TOTAL AMOUNT (in RS.) 10,000 5,000 10,000 2,000 5,000 5,000 4,000 41,000

TOTAL RECURRING EXPENDITURE

1 1 2 3 4 Cutting & Polishing Abrassives Raw Materials Salaries & Wages for Personnel Utilities Other Expenses TOTAL 2,55,375/5,00,000/2,71,500/88,774/41,000/11,56,649 Say Rs.12,00,000

TOTAL CAPITAL INVESTMENT I) TOTAL FIXED CAPITAL II) TOTAL WORKING CAPITAL TOTAL : Rs. 1,22,00,000 : : Rs. 1,10,00,000 Rs. 12,00,000

MEANS OF FINANCE
I) MY CONTRIBUTION (@ 5 % On Capital Investment) II) TERM LOAN FROM BANK III) LOAN FOR WORKING CAPITAL : : Rs. 1,04,50,000 Rs. 11,40,000 : Rs. 6,10,000

COST OF PRODUCTION (per annum)

SL.NO 1 2 PARTICULARS Total Recurring Cost Depreciation @ 5% on Buildings AMOUNT IN RS. 1,44,00,000 90,075

3 4 5

Depreciation @ 10% on Machinery & Equipment Depreciation @ 15% on Office Furniture Interest on Total Investment @ 12% TOTAL

7,67,122 3,750 14,64,000 1,67,24,947

TOTAL SALES (per Annum)

BY SALE OF 1,50,000 sft Granite slabs @ Rs. 120 / sft TOTAL Rs. 1,80,00,000 Rs. 1,80,00,000

PRODUCTION DEPARTMENT
The following steps which explains about the production process in the company 1. Granite belongs to the igneous family of stones. Granite starts out as a lump of liquid magma, the molten rock found at the core of the planet.

2. Seismic activity slowly pushes the large lump (node) of magma up towards the surface of the planet to form a substance approaching the hardness and durability of diamond.

3. While this happens, the magma SLOWLY crystalizes as it cools. Seismic activity forces veins of granite to the surface forming the various patterns you see in the finished stone.

4. Glaciers scraped off layers of dirt, sand and rock to expose granite formations which are typically revealed by outcrops.

Scientists estimate that the newest granite on this planet is 750 MILLION years old. Some of the commercial granites have been tested and found to be over 3 BILLION years old! Much of the Earth is made of granite, but the stone that makes your granite tiles is relatively rare because it must be cut from nodes of granite that are intact and have not been broken up by natural forces. There are 3 main components of granite - quartz, mica, and feldspar. Different granites will have varying proportions of each. The color of the granite is determined by trace elements that are in this mix

QUARRYING
Granite has been quarried systematically as far back as 4000 B.C.--long before hardened metals were used. Low-compression explosives and drive-in quarrying methods are used to remove large blocks of granite from deposits close to the earth's surface. The granite blocks are then shipped from the quarry by truck or rail to our factory for processing.

THE CUTTING PROCESS

The first important process after the blocks arrive is the cutting process. Ten Cutters, cut the newly arrived blocks into various sizes for slabs of specific tile sizes. These multi blade block cutters, cut with sets of blades of 24 - 30 blades per set. To get the desired slab thickness we insert spacers between the blades. We classify the granite into 5 different categories according to cutting resistance. They range from one which is like Rustenburg (classified as soft) to five which is like African Red (classified as hard). The different classes of granite determine the speed of the cutting and down feed. We can cut class 5 granite (0.3 - 0.4mm) downfeed at a speed of 1000 - 1200cm/minute. On completion of the vertical cutting, a horizontal cut is made with a single horizontal blade to cutout the slabs one by one. These slabs are then packed onto tressels in readiness of the next operation which is grinding.

THE GRINDING PROCESS

Each of our 3 grinding machines is fitted with 4 rollers with diamond segments. Essentially we grind down the granite slabs to the required size before the slabs enter the polishing or flaming lines which eventually produces tile with either a polished or flamed finish.

THE POLISHING PROCESS

We have two polishing lines. Each is equipped with 16 polishing heads, an 11 head multi blade cross cutter, a two stage chamfering machine and a drying station. We use different abrasive grits to polish the slabs. It is usually a 4 stage process; the cutting stage, 1st preparation, 2nd preparation and the fine polishing stage. In line with our policy of constantly monitoring quality, we examine all polished tiles for quality and gloss. After polishing, slabs are cut into tiles on a multi blade cross cutter, a roller table moves the tiles to a chamfering machine which callibrates the tiles to the correct size. The top edges along the 4 sides of the tiles are chamferd 1mm or to customer specifications. The slabs are then sent to the drying station where fans blow the tiles dry before reaching the final quality controller. The quality controller carefully inspects the tile for quality and finish. That is size, thickness, squareness and gloss or degree of polish

THE FLAMING PROCESS

The alternative process to the polishing process is flaming where tiles with an unpolished or flamed finish are manufactured. From the grinding process, slabs are moved to the flaming process. We use 3 flaming machines, one plasma machine and two conventional gas machines to thermally treat the tiles for a non-slip finish. The plasma machine drawing DC power from a welding plant and nitrogen gas, can flame material as thin as 10mm. The two conventional gas flaming machines use liquid patroleum gas and oxygen. We use them to flame materials from 10 - 30mm. The plasma method gives a much finer finish and performs better on the harder class 4 - 5 granite. The conventional gas flaming machines perform well on the Rustenburg and other black materials.

MACHINERY SUPPLIERS
1) M/S RAJASTHAN UDYOG,

13, Heavy Industrial Area, Jodhpur-342003. Ph: 0291-2741421/2741221. Fax: 0291-2741721. 2) M/S JODHPUR MACHINE TOOLS,

E-4 , Suvidha Complex, Shastri Nagar, Jodhpur 342003. Rajasthan. Ph: 0291-2772366, 2772931.

PRODUCT STUDY EDGE FINISHES TILES: Polished/ Beveled/ Calibrated SLABS: We are able to provide various edge finishes as per the customers requirement

QUALITY CONTROL POLISHING

Polishing will be uniform throughout the slabs/tiles and in gloss meter as: -- For Black Tiles / Slabs : Polishing +95 in gloss meter -- For Colored Tiles / Slabs : Polishing +85 in gloss meter FLAMING Flaming will be uniform throughout the slabs/tiles and brushed evenly on slabs after flaming THICKNESS +/- 1.0mm in tolerance for slabs ; +/- 0.5mm in tolerance for tiles DIAGONAL OUT +/- 0.1mm in tolerance for tiles

PACKING DETAIL SPECIFICATIONS

12x12 tiles 10mm +/- 0.5 thick, polished, bevelled and calibrated 10 tiles in a styrofoam box, 36 styrofoam boxes in a wooden crate, 20 full crates in one 20ft. container totaling 7200 tiles= 7200 sq. ft.

24x12 tiles 10mm +/- 0.5 thick, polished, bevelled and calibrated 6 tiles in a styrofoam box, 36 styrofoam boxes in a wooden crate, 16 full and 8 half crates in one 20ft. container totaling 4320 tiles= 8640 sq. ft. 16x16 tiles 12mm +/- 0.5mm thick, polished, bevelled and calibrated 7 tiles in a styrofoam box, 32 styrofoam boxes in a wooden crate,20 crates in one 20 ft. container totaling 4032 tiles= 6826 sq. ft. 18x18 tiles 12mm +/- 0.5mm thick, polished, bevelled and calibrated 6 tiles in a styrofoam box, 16 styrofoam boxes in a wooden crate, 30 crates in one 20 ft. container totaling 2880 tiles= 6480 sq. ft. 24x24 tiles 20mm +/-1mm thick, polished and calibrated 50 tiles in one wooden crate, 20 crates in one 20 ft.container totaling 1000 tiles = 4000 sq. ft.

MACHINERY SUPPLIERS 1) M/S RAJASTHAN UDYOG,

13, Heavy Industrial Area, Jodhpur-342003. Ph: 0291-2741421/2741221. Fax: 0291-2741721. 2) M/S JODHPUR MACHINE TOOLS, E-4 , Suvidha Complex, Shastri Nagar, Jodhpur 342003. Rajasthan. Ph: 0291-2772366, 2772931.

QUALITY CONTROL POLISHING

Polishing will be uniform throughout the slabs/tiles and in gloss meter as: -- For Black Tiles / Slabs : Polishing +95 in gloss meter -- For Colored Tiles / Slabs : Polishing +85 in gloss meter FLAMING Flaming will be uniform throughout the slabs/tiles and brushed evenly on slabs after flaming THICKNESS +/- 1.0mm in tolerance for slabs ; +/- 0.5mm in tolerance for tiles DIAGONAL OUT +/- 0.1mm in tolerance for tiles

PACKING DETAIL SPECIFICATIONS

12x12 tiles 10mm +/- 0.5 thick, polished, bevelled and calibrated 10 tiles in a styrofoam box, 36 styrofoam boxes in a wooden crate, 20 full crates in one 20ft. container totaling 7200 tiles= 7200 sq. ft. 24x12 tiles 10mm +/- 0.5 thick, polished, bevelled and calibrated 6 tiles in a styrofoam box, 36 styrofoam boxes in a wooden crate, 16 full and 8 half crates in one 20ft. container totaling 4320 tiles= 8640 sq. ft. 16x16 tiles 12mm +/- 0.5mm thick, polished, bevelled and calibrated 7 tiles in a styrofoam box, 32 styrofoam boxes in a wooden crate,20 crates in one 20 ft. container totaling 4032 tiles= 6826 sq. ft. 18x18 tiles 12mm +/- 0.5mm thick, polished, bevelled and calibrated 6 tiles in a styrofoam box, 16 styrofoam boxes in a wooden crate, 30 crates in one 20 ft. container totaling 2880 tiles= 6480 sq. ft. 24x24 tiles 20mm +/-1mm thick, polished and calibrated 50 tiles in one wooden crate, 20 crates in one 20 ft.container totaling 1000 tiles = 4000 sq. ft.