FOR THE FULFFILMENT OF SYBBA FOR CURRENT ACADEMIC YEAR 2010-11

PREPARED BY: JOLIYA JAGDISH H. SEATNO: Guided by : Miss v.r. mehta (lecturer)

Submitted to : H.K.PAREKH COLLEGE OF MANAGEMENT, MAHUVA. AFFILIATED TO: BHAVNAGAR UNIVERCITY, BHAVNAGAR.

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Company certificate

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CANDIDATE STATEMENT

I undersigned Miss. Joliya Jagdish M., a student of S.Y.B.B.A. Hereby declare that the project work presented in this report is my own work and has been carried out under the helpful cooperation & guidance of Shri C. N. Pithadiya.

DATE:-

PLACE: - MAHUVA

SINGNATURE

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RPEFACE
To facilitate the proverb that

NO BATTLE IS WON WITHOUT ENTHUSIASM AND HARD

PERFORMANCE and to survive in the most competitive era, every student should have some practical knowledge so that they can understand reality more closely.

I am the student of B.B.A a management course so, to become sharper in management field, theoretical knowledge and class room discussions are not sufficient. I feel great pleasure to present this report after finishing my 15 DAY training in one of the most famous name industry NIRMA LTD.

B.B.A course have been architecture with the view of enabling the students to have an opportunity to gain the practical knowledge of theories, which helps me a lot to develop and to become adroit it would be also denoted as actual realization of class room study.

For this purpose I wanted to do a research on General Information of the management of Kalatalav plant as well as employees ranging from various departments. This research will help me in my theoretical part towards the practical area with the use of my skill, knowledge and information about the companys various departments.

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ACKNOWLEDGEMENT
I have a great pleasure in presenting this report on industrial training visited in NIRMA LTD. This training has developed my theoretical and practical knowledge. This training has developed interest in me for studying the analytical of an industry.

First of all, I like to thank divine power i.e. GOD and my parents, as it was their blessing, which gave me this golden opportunity of carrying out this report. I am also thankful to MR. D.G. JAKHADE, MR. K.J. UPADHYAY & MR. R.M. JADEJA of NIRMA LTD without their guidance I cant completed my project report properly. I am also thankful to MR. KETAN PANDYA, MR. MOHNISH DESAI, MR. MAYUR MEHTA, MR. VIRAG SHUKLA and all staff members of HR & Finance department for guided & fully supported at the time of training about various aspects. I am also thankful to MR. MEHUL DESAI, MR. S.C. UPADHYAY, MR. U.C. CHAUDHARY, MR. R.N. DAVE and also staff members of production department for gave right information about production. I am also thankful to MR. B.A. FERNANDES, MR. GUARAV ADREJA and also all staff members for guided & fully supported at the time of training.

At last I also thankful to those who directly or indirectly helpful in my project work.

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INDEX

Sr. No.
1 2 3 4 5 6 7

Contents
General Information Human Resource Management Financial Management Marketing Management Future Plants Conclusion Bibliography

Page No.
8 34 56 71 81 82 83

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INTRODUCTION

Nirma means BETTER PRODUCTS, BETTER VALUES AND BETTER LIVING. NIRMA is research oriented organization that

manufactures chemicals.

Nirma is one of the few names which is instantly recognize as a true Indian brand, which took on mighty multinational and rewrote the marketing rules to win the heart of the public I.e. the consumer Nirma the proverbial RAGS TO RICHES saga of DR. KARSHANBHAI K. PATEL is a classic example of the success of any Indian entrepreneur-ship in the face of stiff competition. Starting as a one man operation in 1969, today, it has about 1150 employees in its Kalatalav Plant and annual turnover of 2650.78 crores.

India is one of the largest consumer economy, with burgeoning middle class pie. In such a widespread, diverse market place, Nirma suitably concentrated all its efforts towards creating and building a strong consumer preference towards its Value For Money Products

NIRMA LTD is situated in remote location North- East of village Kalatalav in Bhavnagar district. It is 45 km away from the Bhavnagar by road. The area of the plant is spread in over 25850 acres.

The total investment in NIRMA LTD is 2700 Crores while separately in Kalatalav the total investment is 2500 Crore. The total manpower of NIRMA LTD is 14000 while in Kalatalav plant it is 5150.

Layout of plant and Location

Definition:In a very straight forward manner, we may define the term location as a sight or a piece of hand on which industrial unit is to be established.

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An ideal location is the location, where the industry can achieve the desired volume where costs can be kept low and share profit in long term can be maximized.

Hence, such type of place is located that can be suitable to the nature, size and product of the company, hence can directly contribute to success of the company.

Nirma Chemical Complex, Bhavnagar using the solvay process for soda ash production with modification from Netherland, which has supplied latest technology and basic engineering package which has soda ash plant in Europe. Humphrey and Glasgow consultant, Bombay has made it sure that superior product quality of soda ash in term of bulk density and most energy is possible. Efficient technology is used by plant for processed water. Water requirement is fulfilled by 3 reserve cosmetics plant supplied by Ms Thermax Ltd. Having capacity of 150 m3/hr each

The plant is located at kalatalav Bhal area, Bhavanagar in the state of Gujarat India.

Why this plant is situated at kalatalav?

The Nirma chemical complex enjoys some type of benefits, since it is located at a proper place. Since at this location, many beneficiary factors are into Companys favor, Company has achieved success by producing large quality of soda ash. Following are such factors that all have certain contribution in the success of company:

Availability of Raw material Labour Facility of power supply Transportation facility

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COMPANY HISTORY
Nirma is name derived from NIRUPAMA a daughter of Dr. K.K.Patel (CEO of Nirma Ltd). Today Nirma Ltd is having two main brand i.e. Nima and Nirma. Nirma Ltd. is introduced by Dr. K.K.Patel on 8th Nov 1969. Nirma is Indias largest manufacturer and it is one of the worlds biggest brands. Even though Nirma was a late entrant in 1990 in the highly competitive toilet soap market but now it is a second largest manufacturer in the category.

Nirma Ltd. is the leading FMCG Company having fully achieved backward integration to the main business of detergents and soaps. They are also producing Industrial Chemicals. Nirma Ltd enjoys leadership presence in detergents soap and personal care products. The company offers employment to over 18000 people distributed in the nine units at various places. Nirma Ltd is a name trusted across India. NIRMA LTD had made a remarkable progress in 1980s period and it has achieved superior market than its rival Surf - a well established detergent brand of Hindustan Unilever ltd at that time.

In 1990 NIRMA LTD stepped into toilet soaps and it has achieved volume of 10, 000 soaps per annum with this NIRMA LTD become the largest toilet soap brand in India with market share of 38% and 20% respectively and then after it has continued its efforts with strong determination and achieved many progress in the field and today NIRMA LTD is still having many development projects with the help of which it can maximize Market Share. In 2004 NIRMA LTD has achieved 8, 00,000 tons annual sales making it one of the largest volume sales with a single brand name in the world latter on. The mission of the Nirma Ltd. is to provide BETTER PRODUCTS, BETTER VALUE, AND BETTER LIVING.

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COMPANY PROFILE

Name of the unit:-

Nirma Chemical Complex

Year of plant establishment:- 1999-2000 Plant address:Nirma chemical complex, Kalatalav, Bhavnagar. Form of the organization:Products of plant:Public ltd company Soda ash Bath soap Toilet soap Detergent powder Industrial and iodized salt

Accounting year: Auditor :-

April-march. Himanshu shah and company Chartered account, Ahmedabad

Registered office:-

Nirma house Ashram road Ahmedabad-380009

city office:-

2147, modern bungalow Near N.C.C.Office Krishnanagar, Waghavadi road Bhavnagar-364002.

City office:-

Nirma consumer care Nirma house Ashram road Ahmedabad-380009

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NIRMA IN INDIA
Head office:Nirma House Ashram Road Ahmedebad 364313 Ph- ( 079) 27546565 -74 Fax- ( 079) 27546605 E-mail:- [email protected]

Soda Ash plant- Bhavnagar :Nirma Chemical complex, Kalatalav, Bhavnagar -364002 Ph- (0278) 2885301-04 Fax- (0278) 2885309

Lab plant Baroda:Alindra Detergent Complex P.O Alindra Tal. Salvi Dist: - Baroda, Pin: - 391775

Packaging- Moraiya
Moraiya , past charcharvodi Vasna, near modern denim Bavla Road, taluka Sanand Dist Ahmedabad, Gujarat

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DIFFERENT SITES OF NIRMA LTD.

1) SITE 1: Block no: 16/B, Ahmedabad, Mehsana highway, P.O. mandali, Dist: mehsana, Gujarat, pin-382732.

2) SITE 2: Moraiya, past chacharwadi, Vasna, near modernism, Bavla road, Taluka: sanand, Dist: Ahmedabad, Gujarat.

3) SITE 3: Alindra detergent complex, P.o. alindra, Taluka: savli, Dist: Baroda, Pin- 391775

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4) SITE 4: Wind farm project at survey no691, Village: dank, Taluka: upleta, Dist: Rajkot, Gujarat.

5) SITE 5: Chemical complex, Village: kalatalav, Dist: Bhavnagar-364313. Ph: 0278/2885301-04 Fax: 0278/2885309

6) SITE 6: Survey no: 358-369 Village: sachana, Taluka: viramgam, Dist: Ahmedabad.

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ORGANIZATIONAL CHART
Nirma has line type of organization structure. There is a direct holding of the people and authority flows from top to bottom

Chairman Vice Chairman Managing Director Directors Vice President Deputy General Manager Assistant General Manager Senior Manager Manager Deputy Manager Senior Engineer / Senior Officer Engineer / Officer

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Senior Assistant / Senior Technician Assistant / Technician General Assistant / General Technician Helper

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BOARD OF DIRECTORS

NAME
DR. K. K. PATEL

DESIGNATION
CHAIRMAN & MANAGING DIRECTOR

SHREE KALPESH.A.PATEL

EXECUTIVE DIRECTOR

SHREE SHRENI.K.LALBHAI

DIRECTOR

SHREE MANUBHAI.R.SHROFF

DIRECTOR

SHREE RAJENDRA.D.SHAH

DIRECTOR

SHREE ATULYAPRASAD SARWAN SHREE RAKESH.K.PATEL

DIRECTOR

VICE CHAIRMAN

SHREE HIREN.K.PATEL

MANAGING DIRECTOR

SHRREE KAUSHIK.N.PATEL

AUDITOR DIRECTOR

SHREE CHINUBHAI.R.SHAH

AUDITOR DIRECTOR

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DIFFERENT DEPARTMENT AT KALATALAV

Process Department Mechanical Department Instrument Department Quality Insurance Department Salt Works Department Salt Handling Department Store Department Commercial Department :- (1) Inward (2) Dispatch Local Administrative & HR Department Safety :- (1) Health (2) Fire Local Excise Department Information technology Toilet Soap/ Fatty Acid Detergent Department Pure Water Plant Utility Department Raw Material Department RODM Plant Power Plant Boiler House Compressor House Cold/ Child Water Instrument Utility Utility Maintenance

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KEY PERSONS OF NIRMA LTD AT KALATALAV

NAME OF THE PERSON Shree G.J.Adroja (Vice President) Shree D.G.Jakhade(GM) Shree K.R.Adhia(GM) Mr. Hasmatlal Rajani (Sr. Manager) Mr. K.C.Pathak Mr. AshwinPatel Mr. P.S.Parekh Mr. R.J.Joshi Mr. P.T.Chadasania Mr. L.M.Mavani Mr. Mehul Desai Mr. Bharat Mehta Mr. R.M.Jadeja Mr. Rajiv N Dave Mr. D.D.Jadeja Mr. K.S.Vataliya Mr. Dipak Barot Mr. Himmat Patel(Dy. Manager)

DEPARTMENT -----------------------------------Process Technical Services Utility

Laboratory Administration Electrical (AGM) Salt (Process) Instrument RMH (Raw Material) Process Powder (AGM) Technical services Commercial Salt Works Mechanical Store T.S & F.A.

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NIRMA PARIVAAR
MANDALI Oleum, Sulphuric Acid, Fatty Acids, Alpha Alefin, Sulphonate, Glycerin, Shampoo MORAIYA Detergent Powder and Cake, Single Super Phosphate, Packing plant ALINDRA Lab, Detergent Powder and Cake KALATALAV Soda Ash, Toilet Soap, Detergent Powder and Cake, Industrial and Iodized Salt PITHAMPUR Detergent Powder and Cake CHHATTRAL Detergent Powder and Cake DHANK Wind Farm

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QUALITY POLICY
This was the general idea about the company and what the company does; we also saw the capacity figures of the different plants of company. The company has its own quality policy which is kept in each department. The policy is as under:

NIRMA is a customer focused company, committed to consistently offer Better Quality of product and service that maximizes the value to the customer.

This shall be achieved through: Continuously exploring and developing new products and processes Laying emphasis on cost effectiveness Maintaining effective quality management system Complying with safety environment and social obligation Imparting training to all involved in a continuous basis Team work and participation all around

Demonstrating belongingness and exemplary behavior towards

organization its goals and objectives.

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GROWTH AND DEVELOPMENT

1996: Land acquisition 555 acres for soda ash plant and 23987 acres for salt work.

1998: Construction of soda ash plant with capital outlay of estimated investment of 1050 crores.

2000: Soda ash plant commissioned of 1200 TPP capacity in March 2000, Vacuum salt plant of 800 TPD capacity commissioned in October 2000

2001: Toilet Soaps plant commissioned and detergent manufacturing started.

2003: Soda ash plant capacity enhanced from 1200 TPD to 1800 TPD in February 2003 with an additional investment of 300 crores. 2004: NIRMA responds quickly when it becomes apparent that

Congress would not delay implementation of sweeping changes in the U.S. Department of Labors wage and hour regulations. The pool welcomes two new counties, making it the third consecutive year two or more counties have joined the pool, and bringing the total membership to 74, or 80 percent of all Nebraska counties. 2005: The consecutive years of multiple-county growth extends to four with the addition of two more counties, and total membership in NIRMA stands at 76. The member fund balance reaches an all-time high of $17.9 million, with dividends returned to member counties surpassing a cumulative total of $7.7 million. 2006: For the ninth consecutive year a dividend is issued at NIRMAs Annual Conference in February, this time to 72 counties in the collective amount of $1 million. Membership grows yet again with the addition of the pools 77th county.

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2007: Sixty-seven counties share in a $500,000 dividend NIRMA issues at its February conference. Also at the conference, NIRMA introduces its new County Safety Committee Handbook, a handy reference guide published to provide guidance and assistance to committee members in meeting their responsibilities. 2008: It is a year to reflect, as NIRMA observes its 20th anniversary with a series of special events throughout the year. It begins with the issuance of a $788,448 dividend to 70 eligible members.

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AWARDS AND REWARDS

The companys plant size is located at a region of acute water shortage and marshy impervious soil, has consistently built production level. In 2002-03 NIRMA got award for excellence in water resource management in chemical industry by ICMA (Indian chemical management association). Gujarat safety award in the year 2002-03 by Gujarat safety council. Award for development of green belt with more than 18000 trees in safety land. Developing rain water harvesting facility for collecting precious water running to sea. Chamber excel excellence award for excellence in organization for year 2003-04 by saurashtra chamber of commerce and industry. Tuv Rhineland gave ISO 9001-2000 company in March 2005.

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MISSION AND VISION

MISSION STATEMENT:
A statement sustained innovation, an unceasing effort to deliver better value to consumers, through better product quality.

NIRMA is a customer focused company committed to consistently offer better quality products and services that maximize value to the customer.

This customer enteric philosophy has been well emphasized at NIRMA through: Continuously exploring and developing new products and processes. Laying emphasis on cost effectiveness Maintaining effective quality management system. Complying with safety, environment and social obligations. Imparting training to all involved on a continuous basis. Team work and active participation all-round. Demonstrating belongingness and exemplary behavior towards

organization, its goals and objectives.

NIRMA a phenomenon and synonymous with value for money. The brand trances the specific dynamic of any particular product category which is best captured in its above mission statement.

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PRODUCTS
Consumer Products
Soaps Detergent Edible salt Sourcing products

Industrial Products
LAB (Linear Alky/Benzene) AOS (Alfa Olefin Sulfonate) Sulfuric Acid Glycerin Soda Ash Pure Salt Vacuum Evaporated Iodized Salt SSP (Single Super Phosphate) Sodium Silicate

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PRODUCT LINE
There are various types of products which are produced by Nirma Ltd.

DETERGENT:-

Nirma Washing Powder

Nirma Popular Detergent Powder

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Super Nirma Powder

Nirma Detergent Cake

Nirma Popular Detergent Cake

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Super Nirma Detergent Cake

SALT:-

Nirma Shudh Iodized Salt

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SOURCING PRODUCTS:-

Nirma Clean Dish Wash Bar

Nima Bartan Bar

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SOAPS:-

Nirma Beauty Soap

Nirma Lime Fresh

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Nima Sandal

Nima Rose Soap

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INDEX

Sr. No.
1 2 3 4 5 6

Contents
Introduction Time Keeping System Facilities Provided by Nirma Contribution to the Industry Contribution to the Society Size and Form of Organization

Page No.
36 51 52 53 54 55

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INTRODUCTION

Human resource management (HRM) is an approach to the management of people, based on four elementary principles. First human resources are the most important assets an organization has and their effective management is the key to its success. Second, this success is most likely to be achieved if the personnel policies and procedures of the enterprise are closely liked with, and make a major contribution to, the achievement of corporate objectives and strategic plans. Third, the corporate culture and the values, executive climate and managerial behavior that originate from that culture will be managed which means that continuous effort, starting from the top, will be required to get them accepted and acted upon. Finally, HRM is concerned with integration getting all the members of the organization concerned and working together with a sense of common purpose.

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ORGANISATIONAL STRUCTURE
Organization is a group of people working together cooperative under Authority towards achievement goals and objectives that mutually benefit the participants and the organization.

Deputy General Manager Manager Senior Officer Officer Senior Assistant Assistant General Assistant

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HUMAN RESOURCE PLANNING

Manpower or Human resource may be thought of as The total knowledge, skills, creative abilities, talents and aptitudes of an organizations work force planning was widely used; but now the emphasis is on human resource planning which is more broad based. Human resource or manpower planning is the process by which a management determines how an organization should move from its current manpower position to its desired manpower position. Through planning, a management strives to have the right number and the right king of people at the right places, at the right time, to do things which result in both the organization and the individual receiving the maximum long-range benefit.

Coleman has defined human resource or manpower planning as The process of determining manpower requirements and the means for meeting those requirements in other to carry out the integrated plan of the organization Human resource department is concern with management and on discussion with function and unit head defines the competence of employees at each level across the organization. Taking in to consideration skill required to perform role, responsibilities assigned, qualification and number of year of experience of employee.

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RECRUITMENT & SELECTION METHOD

Recruitment forms the first stage in the process which continues with selection and ceases with the placement of the candidate. It is the next step in the procurement function, the first being the manpower planning. Recruiting makes it possible to acquire the number and types of people necessary to ensure the continued operation of the organization. Recruiting is the discovering of potential applicants for actual or anticipated organization vacancies. In other words, it is a Liking activity bringing together those with jobs and those seeking jobs.

In the process or recruitment first of all as soon as the blue print for the future requirement activities is ready, head of the department have to prepare requisition form.

Same as in Nirma as reasons needed occur for recruitment a Requisition form is formed intruding details like job description, in which department. Recruitment is needed, what is the source, the number to be recruited, the time by which the persons should be available etc.

One copy of this form is dispatched to Ahmedabad head office. Head office verifies the form, check that whether recruitment is needed or not. Once the head office permit the recruitment need than it would send the form back with consent as sign of managing director, there after the process of recruitment, selection and induction can start.

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Reasons for recruitment

First of all there should be some reason for recruitment. This reasons ends into needs of requirement. Reasons for recruitment can be, Death Retirement Promotion Transfer Resignation etc.

Nirma considered five main stages for requirement are as under Manpower Requisition Respective functional / department head justify the requirement of manpower. Manpower Approval Manpower requisition form duly approved by functional and unit head is forwarded to human resource department. Filling up of vacancy Vacancy can be filled by both internal and external sources. Screening Human resource department identifies applications, meeting requirement from above referred source and forwards to respective functional unit head for sort listing.

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Selection Procedure:Human resource department at head office invites candidates to under go selection process, comprising of written test (for candidates applying from the post up to engineer level ) and there stage personal interview viz. preliminarily interview, following up interview and final interview . The interview panel for each level of personal interview is as under. LEVEL 1 (Interview panel) 1. Functional department head/ nominated representative 2. Immediate superior 3. Representative of HR department LEVEL 2 (Follow- up interview) 1. Unit head 2. Functional head or suitable representative 3. Representative of HR department LEVEL 3 (Final interview) 1. Director / nominated management representative 2. Head of HR

In certain situation as on exception, the preliminary interviews may not be carried out; however recruitment process is completed by conducting final interviews only.

For all positions of GM and above level and for selected and important recruitment, approval of CMD is taken before issuing appointment.

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PLACEMENT AND INDUCTION

Once an offer of employment has been extended and accepted, the final stage in procurement function is to be concluded, namely, that of placement of the individual on the new job and oriented him to the organization.

After selection the employee is generally put on a probation period, ranging from six months to one year, after which his employment may be confirmed, provided that during this period, his work has been found to be satisfactory. Only in very rare cases is the employee, once placed, asked to quit, and even then it is only when there is something very serious against him or he is found guilty of continued negligence in the performance of his duties.

Induction is a technique by which a new employee is prohibited into his surroundings and induction to the practices, policies and purpose of the organization. In other word, it is a welcoming process the idea is to welcome a newcomer, make him feel at home and generate in him a feeling that his own job, however small, is meaningful and has significance as a part of the total organization. In the case of induction Nirma give a proper induction time after placement, they given proper time to know about the company, responsibility and their working condition. In Nirma the program of orientation is of 15 days. Facts which refers it a whole entity consisting of interrelated, interdependent, Interactive, physiological, sociological & ethical components.

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TRAINING AND DEVELOPMENT

Training is a process of learning a sequence of programmed behavior. It is applicable of knowledge. It gives people an awareness of the rules and procedures to guide their behavior. It attempts to improve their performance on the current job of prepare them for an intended job. Training is given because of many objectives like To Increase Productivity To Improve Quality To Help A Company To Fulfill Its Future Personal Needs To Improve Organization Climate To Improve Health And Safety Obsolescence Prevention Personal Growth

Nirma gives the employee training program is as under: Purpose: - To established procedure for identifying training need for employees at different level of organization and imparting training to enhance their competence. Scope: - It covers all categories of employees of organization.

There are main four training methodology which is used by Nirma industry Induction Training In-Plant Training For New Experienced Employees Candidates Appointment As Training Safety Function Training

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PERFORMANCE APPRAISAL
Once the employee has been selected, trained and motivated, he is then appraised for his performance. Performance appraisal is the step where the management finds out how effective it has been at hiring and placing employees and to remedy them. A performance appraisal is a process of evaluating an employees performance of a job in terms of its requirements. Heuel observes; IT is the process of evaluating the performance and qualifications of the employees in terms of the requirements of the job for which he is employed, for purpose of administration including placement, selection for promotion. Providing gingival rewards and other actions, which require differential treatment among the members of a group as distinguished from action affection all members equally. In Nirma some spatial form are given in performance appraisal, there are four criteria of performance appraisal that is grade recommended.

A+, A, B+, B, C, D
There are some parameters which determines its performance appraisal

Quality Quantity Timeliness Cost Effectiveness Need for Supervision Interpersonal Impact Training

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WAGE AND SALARY ADMINISTRATION

The basic purpose of wage and salary administration is to establish and maintain an equitable wage and salary structure. Its secondary objectives is to establishment and maintenance of an equitable labour- cost structure, i.e. , an optimal balancing of conflicting personnel interests so that the satisfaction of employees and employers is maximized and conflicts minimized. The wage and salary administration is concerned with the financial aspects of needs, motivation and rewords. There are certain factors which affects the determination of wages and salaries.

Demand for and supply of labour Labour unions Companys

ability to pay

Employees efficiency Prevailing wage and salary rates Cost of traveling Job requirements State regulations Other benefits provided
In Nirma administration is totally paid by HOD, and computerized

according to the time keeping wages & salary of the employees are paid, there wafers and salary is fixed but increment is given on the basis of performance & efficiency, form their wages of salary some amount of provident funds, ESI scheme, income tax is reduced. In Nirma salary will be directly deposited in bank of convenience, you are required to open your bank account in HDFC bank.

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PROMOTION AND TRANSFER POLICY

Promotion
Promotion it a term which covers a change and calls for grater responsibility, and usually involves higher pay and better terms and

conditions of service and , therefore a higher status of rank.

It may be possible that he can take promotion after seeing his pervious work history and performance. The promotion is given on the basis of work performance capacity. Nirma give the promotion on the basis of grade system, when any person resigns from their post or retirement and direct promotion by HOD.

Transfer
A transfer is a horizontal or lateral movement of an employee from one job, selection, department, shift, plant or position to another at the same or another place where his salary, status and responsibility are the same. It generally does not involve a promotion, demotion or a change in job status other than movement from one hob or place to another.

Nirma are also adopting transfer policy when another department needs the employees, at that time both the head of the department meet and taking the decision regarding transfer, another case is when ever the dispute is arise at that time department are put another department.

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WELFARE POLICY
The center of Nirma is employees while taking decisions. Its like family members or we can say its home of all the employees. It can be possible that the employee of Nirma is not likely to do that job than he can change it but the reason for it has to be fair. Nirmas activities are for the benefit of all the employees. All the employees are equal no special treatment is there for any one in person.

There is no scope of appointment to meet any employee this decision is taken to keep all employees in mind. You can very well see that the management is bottom to top rather than top to bottom.

Nirma provides many employees services and welfare activities very bitterly it provides two type of service. Government rule An statutory

Government Rule
All the facilities which is remarked in government rules is given compulsory to each and every employees, like

provident fund

E.S.T.C. scheme Increment in salary Tantalization etc.

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 An Statutory
For the companies more interest the employees get more facilities as welfare facilities

In Nirma following facilities are given to motivate employees. Flexibility in rule This facility starts from time force. There are certain rules for leaves, incoming, outgoing and late coming but there rules are flexible, there arent any start rules and regulation. Medical service Nirma provides best medical services to its employees, nirma has mini hospital , in which there is a full time compounded, all medicines are available, two full time doctors and first & second aid service is provided 24hours. Canteen Nirma gives its own canteen facility In which lunch is available at 212 Rs. / Month & snake at 62 Rs. / Month. Uniform and shoes The employees get 2 pair of uniform and 1 pair of shoes. Washing allowance is also being provided.

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They give many more things like

Bonus Holidays Committees Library Cultural programs Co-operative society Staff bus- facility Bank facility Hostel facility

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INDUSTRIAL DISPUTES
The industrial disputes Act, 1947, defines an industrial dispute as any dispute or difference between employers and employers, or between employees and employees or between employers and employees, which is connected with the employment, or non employment, or the terms of employment or with the conditions of work of any person. According to Patterson, industrial strife constitutes militant and organization protests against existing industrial conditions. They are symptoms of individual unrest in the same way that boils are a symptom of a disordered body

Nirma has own procedure to solve the dispute problem which is as under.

Personnel department getting information Inquiry (in written form) Decision about matter. HOD or general department is taking decision
About punishment

Suspend and memo about.

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TIME KEEPING SYSTEM

Time keeping system is just a schedule which is compulsory obeyed by their employees. In simple words time keeping system in just to record their employees entry and exit records.

NIRMA Ltd. is large organizations so for nirma time keeping system is varying essential. They work 24 hours a day. They have working shifts. They have card punching system. The entire timing shifts are as under

Working System
G shift A shift B shift C shift 08:30am to 05:00 pm 07:00am to 03:00 pm 03:00 pm to 11:00 pm 11:00 pm to 07:00 am

Canteen Timing
Lunch Time A shift G shift Dinner Time B shift Tea Time 08:15 am to 08:30 am 03:30 pm to 03:45 pm 08:00 pm to 08:30 pm 12:00 noon to 12:30 pm 12:30 pm to 01:00 pm

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FACILITIES PROVIDED BY NIRMA

Leaving Facility
NIRMA offers sufficient leave facilities to its employees. It has settled such a leave structure which maintains balance between working time and leave time. There are 4 types of leave Privilege leaves Compensatory leaves Casual leaves Sick leaves

In case any holiday/weekly off falling in between the leave period, it will be considered as part of leave unless an employee has avoided of casual leave One type of leave cant be combined with other type of leave

Staff Bus Facility

We have made agreement of staff bus facility from Bhavnagar city to Nirma site, Kalatalav. Buses will pick up employees according to your shifts timing from some particular routs.

Bank Facility
Your salary will directly deposit in bank for convenience you are requested to open your bank account in HDFC bank, Waghavadi branch at Bhavnagar.

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CONTRIBUTION TO THE INDUSTRY

In every field Nirma gives its contribution to the industry like: To maintain dividend rate of shareholders Follow all the rules and regulations of government Maintain qualities and sale this qualities product in the market chapter rate Contribution in social activities Contribution In educational activities and welfare activities It has developed its owned R&D department where R&D be made and new products are prepared for selling into the market The safety system of Nirma is outstanding Nirma has its own power so process is continuous Nirma has excellent HRM department an employer relation is very good.

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CONTRIBUTION TO THE SOCIETY

As every company is the part of society and company is taking various advantages of society so as a part of the society company has to perform various responsibilities

Nirma Ltd also contributes to the society as following. Establishing of green belts by growing trees Constructing gardens for refreshment Establishing the Nirma education and research foundation in 1994 which runs various institution bodies such as Institution of Technology, Institution of Management, Institution of Pharmaceutical science and Institution of Diploma engineering Nirma Memorial Trust and Nirma foundation looks after the deprived women in Gujarat Nirma labs is another contribution of nirma with an objective to nurture, promote and facilitate potential in their pursuit of knowledge based on large scale wealth generation for stakeholders and society. Chanasma Ruppar Gram Vikas Trust in Mehsana provides education, maintenance of public health and related facilities in rural area.

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SIZE AND FIRM OF ORGANIZATION

The nuclear information and record management association (NIRMA) is a non profit professional association in 1977

According to the government policy industry policy 1991, there are certain standards regarding the scale of operation Small Scale Unit Medium Scale Unit Large Scale Unit

The unit whose investment in plant and machinery is exceeding 100 lakhs is known as large scale unit

In Nirma the capital investment is 2406.32 crores, which implies that it is large scale industry.

The form of organization structure is public Ltd. Company incorporated under the company act 1956 incorporated as a private Ltd company. Nirma was converted into a deemed public company and then to public ltd one 8th November, 1993.

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INDEX

Sr. No.
1 2 3 4 5 6 7 8

Contents
Introduction Organization Structure Financial planning Capitalization Financial Review Cash Flow Statement Profit and Loss Account Balance Sheet

Page No.
58 59 60 63 66 68 69 70

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INTRODUCTION
Finance management is broadly concerned with the acquisition of funds by a business firm How large should be the firm and how fast should it grow? What should be the composition of the firms assets? What should be the mix of the firms financing? How should the firm analysis, plan and control its financial affairs?

Finance is the lifeblood of the organization. Financial management as an integral part of the overall management is not a totally independent area. It draws heavily on related subjects and fields of study namely economics, accounting, marketing, production and quantitative methods.

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ORGANIZATIONAL STRUCTURE

Managing Director General Manager Financial Manager Chief Accountant Accountant Senior Accountant Assistant Accountant

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FINANCIAL PLANNING
Financial plan represents a blue print of what a firm proposes to do in the future. Planning is very essential for smooth working of business activities & transactions. Business activities carries high risk, any project without any financial planning can affect all the factors of production and resources allocated in that project. Relative importance of planning in different field changes according to the work areas of each field. In the area of finance that necessary funds may be obtained immediately whenever it is needed intelligent and proper financial planning affect a lot to the success of business.

Economic Assumptions
The financial plan is based on cretin assumptions about the economic environment such as interest rate, inflation rate etc.

Sales Forecasting
The sales forecast is typically the starting point of the financial forecasting exercise. Most financial variables are related to the sales figure.

Pro Forma Statements

The heart of a financial plan is the proofread (forecast) profit and loss A/C and balance sheets.

Asset Requirements
Firms need to invest in plant and equipment and working capital. The financial plan spells out the projected capital investments and the working capital requirements over time.

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Financial Plan
Suitable sources of financial have to be thought of for supporting investment s in capital expenditure and working capital. The financing plan delineates the proposed needs of financing.

Cash Budget
The cash budget shows the cash inflow and outflows expected in the budget period. Information derived from the above elements say about companys financial planning as companys performance depends upon its financial planning. Company has long term planning, short term planning & sometimes planning for medium time span also.

In NIRMA the planning involves decision regarding use of limited means determination of objectives and goals. It should also be available for implementation of new projects and contingency requirements of the financial decision or functions are not until they are performed in the firms simultaneously and continuously.

The major important decision are taken at the head office in Ahmedabad as a result the finance department as NIRMA ltd. plan do not undergo any type of specific financial planning although a financial statement indicating the income , cash flow and expected financial plan, the financial manager consult with conation, account, share selection and marketing department.

Finance manager discusses the financial cash flow outstanding. financial goods stock, work in progress, inventory level etc. board of directors and MD takes decision regarding launching new schemes, issue of share etc. the GM of marketing , costing and accounting department consult the wise president of GM finance, the overall objectives of this department is to

increase the gross profit as the net profit of the company.

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The company planning of the Nirma is carried out in two parts (1) Long term planning (2) Short term planning

Project and operation and carried out under long term planning and other operations are carried under shout term planning for routing activities.

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CAPITALIZATION
Capitalization is the total sum of par of outstanding stock and the bonds. It can be refereed as the process in which organization determines the plan or patterns of financing. The amount of capitalization is the amount which is the sum total of all long term securities issued by a firm and the surpluses which are not meant for distribution. Any business can be valued by its amount of capitalization.

Capital Structure
Capital structure can be differing by every firm or by every management. Capital structure is a very important part of financial management. Capital structure of company can be raised by the firm to take risk profit of the business. The capital of Nirma limited is as under. Authorized share capital: Equity shares capital of Rs.10 each 9,50,00,000 6% redeemable non cumulative convertible Preference shares of Rs. 100 each. Issued and subscribed capital: equity shares 7,93,82,484 6% redeemable non cumulative convertible Preference shares of Rs. 100 each. 2,79,285 5, 00,000

Total share capital is 82.17 crores.

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Working Capital Management

Defining in simple words working is the difference between inflow and outflow of fund in other word it is net cash flow .the working capital management is to manage the current assets, current liability and internal relation between them.

The working capital should be adequate to enable the company to carry on its business on the most economical lines, comfortable and without any financial problems, the working capital must also be of a large magnitude in relation to current to debt in order to safe guard the business against the danger of shrinkage in the value of current assets. Lets see the numerical data of Nirma limited: Net working capital: Net working capital is difference between total current assets and total current liabilities, i.e. Net working capital =current assets current liabilities =495.99-128.46 =367.53 (2004-05)

Gross working capital: Gross working capital is the total of the all current assets including borrowed current assets

Gross working capital =

current assets + current liabilities = 495.99+128.46 = 588.45 (2004-05)

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The dividend policy of the firm determines what proportion of earnings is paid to share holders by way of dividends and what proportion is ploughed back in the firm for the reinvestment purpose? Since the principal objective of corporate finance is to maximize the market value of equity shares the controversial point arises is what is the relationship between dividend policy and market price of equity shares?

The consideration which are relevant to determine the average pay out ratio of the firm are (1) Funds requirement (2) Liquidity (3) Access to external sources of financing (4) Share holders preferences (5) Differences in the cost of external equity and retained earnings (6) Control (7) Taxes.

On equity shares: Dividend @ 50% i.e. Rs.5 per share on the 7, 93, 82,484 equity share of Rs.10/ absorbing Rs.45.26 crores including tax on dividend. On preference share: Dividend @ 6% on preference share i.e. Rs6/ share on 2,79,285 redeemable non-cumulative , non convertible preference share Rs.0.9 crores including tax on dividend .

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FINANCIAL REVIEW
The India economy began with promising note of buoyant industrial growth and forecast of a Norma rainfall. However, in the early part of the year, results of loksabha elections coupled with the erratic behavior on monsoon dampen and affected business, which was improved in the later part of the year. The year under review retains the thought of the fury and frenzy of tsunami that wrecked and ravaged the costal belt of the country. The year 2004-05 witnessed strand industrial growth with the index of industrial growth of 8% compare to 7% in the previous year. Based on the strong growth sentiments, it is estimated that the industrial growth will be 8.10% in the current year. The economy has the support of growing momentum in the industrial and service sectors , a positive outlook for agriculture and broad based and strong export growth, it is also faces certain challenges such as raising oil prices , raising US interest rates and much need fiscal discipline.

The company registered gross sales of Rs.2149 crores during the financial year ended march 31, 2005, a growth of 6% over sales of Rs. 2036 crores in the previous year. Sales of consumer goods was Rs. 1513 crores against Rs.1437 crores in the previous year and sales of industrial chemical , fertilizer including interdivisional sales , was Rs. 636 crores for the year under view compare to Rs.599 crores in the previous year.

The operating profit has declined. Operation profit for the year was Rs.506 crores as against Rs.550 crores in the previous year. The depreciation for the year was Rs.157 crores as compare to Rs. 156 crores in the previous year; net interest cost has decreased by 65% to Rs.10 crores from Rs.29 crores in the previous financial year. The net profit of the company has decreased from Rs. 247 crores last year Rs.285 crores, achieved mere then Rs 679 crores in the previous year, due to favorable cash generation.

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Sales and Operational Performance

The company has registered 4.62% growth in detergent sales by achieving sales of 7.67 lakh tonnes during the year as again sales of 7.33 lakh tonnes in the previous year. In terms of value, the sales increased by 7.16% at Rs.1047 crores against Rs.977 crores in the previous year.

In the toilet soap category there was massive computation from various players. The sales of toilet soap have decreased by 5.24%. The company sold 97630 tonnes of toiled soaps during the year as against sales of 102747 tonnes in the previous year. But in terms of value the sales grew by 1.52% from Rs. 459 crores in the previous year to Rs. 466 crores in the year Under review. The company has successfully contained the growth and has enhanced overall realization.

During the year the cost of oils in the local and globule market were very high, which has affected cost of production of toiler soap. but to maintain the margin , the company has adopted cost effective measures in production , packing , inventory control ,better distribution advertisement campaigns . and economic but effective

During the year under review, the company sold 116237 tonnes of iodized salt contributing Rs.22 crores to the sales turnover as against 60732 tonnes contributing Rs.19 crores in the previous year. Thus, company has achieved more than 15% and 91% growth in terms of value and volume respectively.

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INDEX

Sr. No.
1 1 2 3 4 5

Contents
Introduction Organization Structure Product Life cycle Distribution Channel Advertising Market Segmentation

Page No.
73 74 75 76 78 79

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INTRODUCTION

All the function and procedures necessary to take the product of services from the place of production to the customers are including the marketing management. The following are basis function of marketing management. ^ Marketing research ^ packing ^ fix the prize ^ Advertising ^ Distribution ^ selling ^ Storage of the product ^ Insurance of the product The marketing is handled very carefully step it is necessary part of the company the need of company is strong the distribution channel advertising and product change in time because of satisfaction activities of the marketing department of the company.

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ORGANIZATIONAL STRUCTURE
Organization structure is most vital and most desirable part of the organization in any part of the business different organization are working together to achieve particular aim.

In Nirma they have two type of marketing company in FMCG Nirma marketing Nirma consumer care limited Both are active as per the company requirement in Gujarat approximate 400 distributors. The organization chart of the marketing department Nirma is as under.

Chairman

Marketing director

Marketing manager

Assistance marketing manager

Sales officer

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PRODUCT LIFE CYCLE

A companys positioning and differentiation strategy must change as the product, market, and competitors change over time. Most product life cycle curves are portrayed as bell- shaped. This curve is typically divided into four stages:

Introduction Growth Maturity Decline

Introduction

Growth

Maturity

Decline

Time
All the products of Nirma are at the stage of growth not a single product is reach to maturity level.

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DISTRIBUTION CHHANEL

Nirma Limited markets its products through its fully owned subsidiary Nirma Consumer Care Limited (NCCL), which was incepted in 1985. NCCL in turn resells these products in the market under the sunshade brands NIRMA and NIMA along with extensions. The distribution strength of Nirma is based on mutually rewarding and satisfying relationship. Nirma pioneered the concept of flat distribution network. Nirma Consumer Care Limited operates with two parallel distribution networks. The NIRMA brand is marketed through the first network, which consists of about 450 exclusive distributors. It is one of the lowest cost FMCG distribution channels of the country. Principal Channel (Nirma Products):

Lowest cost system in India Speed in distribution Flexibility

The NIMA range of products is marketed through a parallel marketing network that comprises of more than 2000 distributors. Parallel Channel [Nima Products]:

Wider Reach Speedy Market Intelligence Competitive edge & Better focus Complementing Principal Channel

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All NIRMA and NIMA range of products have a retail reach of over two million retail outlets and more than 40 million loyal consumers spread all over the country. The Company has been successful in establishing an extremely good urban as well as rural presence through the two distribution channels. The distribution channels have played a significant role in making Nirma a household name. The efficient network has made Nirma Washing Powder and Nirma Detergent Cake, the brands with highest penetration in the respective product categories in the market. The network is well equipped to meet the demands of the loyal consumers of the Company across the country. The robust network ensures the availability of various products at different retail outlets across the nation. The Distribution channel is incises up to enhance trade relations, build up the retailer base by providing various benefits and incentives, organize and implement different activities to generate sales and manage numerous other programs schemes and activities concentrated towards business development. Retailers (2 Mn.)

Wholesalers

Distributors (400 exclusive)

Nirma (8 locations)

CUSTOMER
Sundry Depots (10)

NIRMA WASHING POWDER

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ADVERTISING
Companies must do more than make good product. They have to inform customer about their product benefits they have to carefully position their products in the mind of customer. Advertising cab be easily defined as the use of paid media by seller to inform and regularly remind about its product or organization. It is a strong promotional tool. There are many medium of advertising such as news paper, television, direct mail, radio, magazines, internet etc. The company uses the modern techniques of advertising such as giving advertisement in national news paper, magazine.

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MARKET SEGMENTATION

Market segmentation is the identification of portions of the market that are different from one another. Segmentation allows the firm to better satisfy the needs of its potential customers. Consumer markets can be segmented on the following customer characteristics.

Geographic segmentation Demographic segmentation Psychographic segmentation Behavioralistic segmentation

Geographic Segmentation: The following are some examples of geographic variables often used in segmentation.

Region: by continent, country, state, or even neighborhood Size of metropolitan area: segmented according to size of population Population density: often classified as urban, suburban, or rural Climate: according to weather patterns common to certain geographic regions

Demographic Segmentation: Some demographic segmentation variables include:

Age Gender Family size Family lifecycle Generation: baby-boomers, Generation X, etc. Income Occupation Education Ethnicity Nationality Religion Social class

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Many of these variables have standard categories for their values. For example, family lifecycle often is expressed as bachelor, married with no children (DINKS: Double Income, No Kids), full-nest, empty-nest, or solitary survivor. Some of these categories have several stages, for example, full-nest I, II, or III depending on the age of the children.

Psychographic Segmentation:
Psychographic segmentation groups customers according to their lifestyle. Activities, interests, and opinions (AIO) surveys are one tool for measuring lifestyle. Some psychographic variables include:

Activities Interests Opinions Attitudes Values

Behavioralistic Segmentation: Behavioral segmentation is based on actual customer behavior toward products. Some behavioralistic variables include:

Benefits sought Usage rate Brand loyalty User status: potential, first-time, regular, etc. Readiness to buy Occasions: holidays and events that stimulate purchases

Behavioral segmentation has the advantage of using variables that are closely related to the product itself. It is a fairly direct starting point for market segmentation.

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FUTURE PLANS

The companys cement project having capacity of 1.91 million ton per annum is coming up at Tal. Mahuva, Dist. Bhavnagar, Gujarat. The company has also acquired the land for captive powder project having capacity of 50 Mw. for the purpose of cement project the government of Gujarat has sanctioned the supply of sweet water from Narmada pipeline. The company has placed the orders for major equipments. The impact of these projects will be reflected in the results of the company in foreseeable future.

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I feel very great when I was visiting Nirma Ltd at Kalatalav. There I enjoyed very much for preparing the report and all the staff members helpd me a lot. My experience for preparing this HR report was very good. It is great honor for me to take training in Nirma Ltd. There are many important matters which I conclude here

Nirma provides various employee services to motivate the employee. Nirma ltd. Is really one of the best companies in the Bhavnagar. There are many plants in Gujarat of Nirma. This research is done for knowing the effectiveness performance appraisal system at Nirma ltd. By this above research clear idea about the employee performance mapping system of the organization and the employee satisfaction with the system of appraisal.

The systematic implementation of performance appraisal system and its appropriate feedback in terms of training need identification,

achievements, and career development are the feature of proper system.

Really it was a great opportunity for visiting Nirma that God gives me.

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BOOKS
BOOKS
Principle of Marketing Management Human Resource Management Financial Management

AUTHOR
Kotler & Armstrong K.Aswathappa B.S.Shah

Web addres
www.nirma.com www.scribd.com

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Annual Report
Annual report of Nirma ltd.

Prepared by:P. M. PATEL

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