Fdocuments - in Wipro Project File
Fdocuments - in Wipro Project File
Fdocuments - in Wipro Project File
Submitted to
BANGALORE UNIVERSITY
in partial fulfillment of the requirement for the award of
MASTER OF BUSINESS ADMINISTRATION
By
ASHWINI
(Reg.no.11DKCMAO11)
Guide
DR. AKHILA
1 Economic Scenario
2 Industry Analysis
3 Company Analysis
4 Functional Analysis:-
4.1 Production Department
4.2 Marketing Department
4.3 Finance Department
4.4 Human Resource Department
4.5 EDP Department
5 SWOT Analysis of the company
6 Summary of Findings, Conclusion & Suggestions
7 Learning Experience
Bibliography
Annexure
Chapter – I
ECONOMIC SCENARIO
Over the last couple of decades, India has established itself as one of the fastest growing economics in
the world. India is also advancing towards the economical growth and improvement in literacy.
In the first five year plan India had attained an average annual growth rate by 3.5 percent and during the
90’s India economy showed an average growth rate of 6.4 percent, which was 5.9 percent in the 80’s.
In the consecutive three Five Year Plans (2nd,3rd and 4th), India had experienced an increasing growth
rate and eventually at the end of the 8th Five Year Plan, the annual growth rate of India reached 6.9
percent.
During the period from 1991-92 the Indian economy passed through a tough time, when almost every
macroeconomics indicators showed poor performance. The overall economic growth in this period
declined to 1.1% and the total fiscal deficit became 8 percent of the GDP (Gross Domestic Product).
The Government of India adopted various effective programs of structural reforms with an objective to
encourage external trade, industrial policy and exchange rate. The recent years have been another year
of strong growth for the Indian Infrastructure Engineering Sector. The domestic economy has exhibited
robust growth which is also reflected in the Infrastructure Engineering Sector where expansions and
enhanced manufacturing activity dominated the scene. This was driven by both, the increased export
opportunity from India with dismantling of quota as well as the robust domestic demand. Infrastructure
engineering products export from India grew by almost 20 percent to 25 percent. The main areas of
growth being the Europe and United States markets.
Bank rates :- 9%
Repo rate :- 8 %
Reverse Repo rate :- 7%
CRR:- 4.75%
SLR:- 23%
The main function of the capital market is to channelize investments from the investors who have
surplus fund to the investors who have deficit funds. The different types of financial instruments, which
are traded in the capital markets, are equity instruments, insurance instruments, foreign exchange
instruments, hybrids instruments and derivative instruments.
Base Rate:-10%-10.50%
Saving Deposit Rate:- 4%
Term Deposit Rate :- 8.00%- 9.25%
Steps taken to bridge gaps in distribution, storage and marketing systems have helped in more
effective management of inflation.
Developments in India’s external trade in the first half of current year have been encouraging.
Diversification in export and import market achieved.
Current account deficit at 3.6 per cent of GDP for 2011-12 and reduced net capital inflow in the
2nd and 3rd quarters put pressure on exchange rate.
India’s GDP growth in 2012-13 expected to be 7.6 per cent +/- 0.25 per cent.
Deterioration in fiscal balance in 2011-12 due to slippages in direct tax revenue and increased
subsidies.
During Twelfth Plan period, investment in infrastructure to go up to `50 lakh crore with half of
this, expected from private sector.
More sectors added as eligible sectors for Viability Gap Funding under the scheme “Support to
PPP in infrastructure”.
Government has approved guidelines for establishing joint venture companies by defence PSUs
in PPP mode.
First Infrastructure Debt Fund with an initial size of `8,000 crore launched earlier this month.
Tax free bonds of `60,000 crore to be allowed for financing infrastructure projects in 2012-13.
A harmonised master list of infrastructure sector approved by the Government.
IIFCL has put in place a structure for credit enhancement and take-out finance for easing access
of credit to infrastructure projects.
National Manufacturing Policy announced with the objective of raising, within a decade, the
share of manufacturing in GDP to 25 per cent and creating of 10 crore jobs.
The Gross Domestic Product (GDP) in India expanded 0.8 percent in the second quarter of 2012 over
the previous quarter. Historically, from 1996 until 2012, India GDP Growth Rate averaged 1.65 Percent
reaching an all time high of 6.10 Percent in March of 2010 and a record low of -1.50 Percent in March
of 2004. The Gross Domestic Product (GDP) growth rate provides an aggregated measure of changes in
value of the goods and services produced by an economy. India's diverse economy encompasses
traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a
multitude of services. Services are the major source of economic growth, accounting for more than half
of India's output with less than one third of its labor force. The economy has posted an average growth
rate of more than 7% in the decade since 1997, reducing poverty by about 10 percentage points.
The Gross Domestic Product (GDP) in India expanded 5.50 percent in the second quarter of 2012
over the same quarter of the previous year. Historically, from 2004 until 2012, India GDP Annual
Growth Rate averaged 8.13 Percent reaching an all time high of 10.10 Percent in September of 2006 and
a record low of 5.30 Percent in March of 2012. The annual growth rate in Gross Domestic Product
measures the increase in value of the goods and services produced by an economy over the period of a
year. Therefore, unlike the commonly used quarterly GDP growth rate the annual GDP growth rate takes
into account a full year of economic activity, thus avoiding the need to make any type of seasonal
adjustment.
1.10 (a) Estimated GDP Growth Rate:- India's Economy Grows 5.5%
The Gross Domestic Product per capita in India was last reported at 3649.53 US dollars in 2011, when
adjusted by purchasing power parity (PPP), according to a report published by the World Bank. The
GDP per Capita, in India, when adjusted by Purchasing Power Parity is equivalent to 17 percent of the
world's average. Historically, from 1980 until 2011, India GDP per capita PPP averaged 1446.39 USD
reaching an all time high of 3649.53 USD in December of 2011 and a record low of 419.87 USD in
December of 1980. The GDP per capita PPP is obtained by dividing the country’s gross domestic
product, adjusted by purchasing power parity, by the total population. India GDP per capita was
recorded at 837.75 in December of 2011. Historically, from 1960 until 2011, India GDP per capita
averaged 344.72 USD reaching an all time high of 837.75 USD in December of 2011 and a record low
of 180.86 USD in December of 1960. The GDP per capita is obtained by dividing the country’s gross
domestic product, adjusted by inflation, by the total population.
Monetary Policy can be defined broadly as any policy relating to the supply of money. It is common to
speak of monetary policy as being “tight” or even of being “neutral”.
Monetary Measures
Money Supply Growth: - because the growth in aggregate demand depends heavily on the
growth in the supply of money, it would be logical to measure the posture of monetary policy is
said to be easy when, during a sustained period, the supply of money increases at a rate that is
high or rising relative to a recent trend. Alternatively, policy is said to be tight when the rate of
money growth is low or falling relative to a trend.
Interest Rates: - A logical reason for focusing on interest rates in judging monetary policy is
that they are an important link by which changes in money supply are transmitted to real
economy. That is, changes in money supply growth lead to changes in market interest rates and
these changes then influence households in their decisions to buy homes, automobiles,
appliances, and the like, and businesses in their decisions regarding inventories, plant and
equipment pare purchases.
On the basis of an assessment of the current macroeconomic situation, it has been decided to:
Reduce the cash reserve ratio (CRR) of scheduled banks by 25 basis points from 4.75 per cent to
4.50 per cent of their net demand and time liabilities (NDTL) effective the fortnight beginning
September 22, 2012. Consequently, around ` 170 billion of primary liquidity will be injected into
the banking system; and
Keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0 per
cent. Consequently, the reverse repo rate under the LAF will remain unchanged at 7.0 per cent,
and the marginal standing facility (MSF) rate and the Bank Rate at 9.0 per cent
India’s fiscal sector reforms help to raise the rate the rate of saving and investment in India. This further
help to enhance the productivity of public expenditures.
Some of the major components of India’s fiscal sector include expenditure reforms, tax reform
measures, and public sector reconstructing and systematic reforms in government’s borrowing process.
Chapter – 2
INDUSTRY ANALYSIS
The Infrastructure Engineering Industry in India enjoys a distinctive position due to the pivotal role it
plays by way of contribution to industrial output, employment generation and export earnings of the
country. The word “hydraulics” originates from the Greek word ‘hydraulics’ which in turn originates
from meaning ‘water organ’ which in turn comes i.e., Hydraulic fluids are a large group of minerals oils,
water-based or water used as the medium in hydraulic systems.
Hydraulics is a topic of science & engineering dealing with the mechanical properties of liquids.
Hydraulics is part of the more general disciple of fluid power. Fluid machines provide the theoretical
foundation for hydraulics, which focuses on the engineering uses of fluid properties.
The Indian hydraulic industry started in early sixties primarily objective of import substitution of some
of the hydraulic products being used by the industry in various applications. Since most of the Indian
industries have been set up, based upon the variety of technological sources, the range of their
specification is very wide.
Due to this, the range of products in the oil hydraulic industry is also quite wide resulting in a very small
batch for each product. It is therefore, difficult to specify a minimum economically viable capacity for
the industry. While there has been a continued overall growth in oil hydraulic products business due to
large variety of specialized products to meet specific individual applications, volume growth in
individual products has been very low. With low volumes and high development costs concerning
tooling, casting and forging, the industry has been able to adopt modern production methods.
Current production technology in use is largely dictated by production volumes, quality requirements &
costs. Since the Indian industry has to manufacture a large variety of production with low volumes, the
industry is not able to use the modern high production lines. Most the manufacturers, with exception to
some (who have installed dedicated SPM’s & CNC Machines for the manufacture of components), are
currently using general purpose machines with special tooling & some special purpose machines for
specialized metal cutting operations.
In term of turnover the hydraulic industry seems to have grown rapidly in the past ten years.
While the growth of turnover figures, which show a steep rise of average over 18% per annum, the
actual growth in terms of production has not increased beyond 6 to 7% from the turnover figure, one
may conclude that the drastic change is being occurred in resulting from depreciation of Indian rupee
against dollar.
Industrial
Mobile
Marine
Aerospace
The above major segments are further sub divided into different segments:-
Agricultural tractors
Earthmoving equipment
Material handling equipment
Other: cover general areas such as rail equipments, road building & construction machinery,
drilling rigs, commercial vehicles, tractors, e.t.c
The industry currently contributes about 14 per cent to industrial production, 4 per cent to GDP, and 17
per cent to the country’s export earnings, according to the Annual Report 2011-12 of the National
Infrastructure Engineering Manufacture. The industry accounts for nearly 12 per cent share of the
country's total exports basket. It provides direct employment to more than 35 million people.
The Vision Statement for the Infrastructure Engineering Industry for the 11th Five Year Plan (2007-12)
sees India securing a 7 per cent share in the global trade by 2012. At current prices, the Indian
Infrastructure Engineering Industry is valued at US$ 55 billion, 64 per cent of which caters to domestic
demand.
The export of Infrastructure Engineering Industry aggregated to US$ 22.42 billion in 2009-10. The
Government fixed the target for 2010-11 at US$ 25.48 billion. So far during the period April- September
2011, exports of T&C have been achieved at US$ 11.26 billion.
2.4 Production
During February 2012, total Infrastructure Engineering Industry rose by 5.8 per cent year-on-year (y-o-
y). During April- February 2012 production increased by 4.5 per cent y-o-y.
2.5 Export
Total exports during April-December 2011 registered an increase of 16.54 per cent in rupee terms at Rs
87,582.83 crore as against Rs 75,149.98 crore during the corresponding period of the previous year,
according to the latest data released by DGCI&S, Kolkata. The same were valued at US$ 19,217.12
million as against US$ 15,695.07 million during the corresponding period of the previous year,
registering an increase of 22.44 per cent.
The share of manufacturing exports in total exports was 11.29 per cent during April-December 2011 as
against 12.34 per cent during April- December 2010.
The competitors for Indian Export oriented Infrastructure Engineering industry are:-
China
Bangladesh
Vietnam
USA
Sweden
France
Germany , etc.
Chapter – 3
COMPANY PROFILE
3.1 Introduction to “WIPRO INFRASTRUCTURE ENGNEERING.”
Wipro Ltd has started in early 1940’s they started with vegetable oil, later in 1980’s they went on for
production hydraulic equipment, soaps, lightning their revenues was 400mn.
Later in 1980’s they enter into manufacturing of PC, Medical system. With the globalization of Indian
economy in 1991 Wipro gained advantage & entered into consolidation of IT business into software,
Global R&D and Personal Products. As a result company revenue has increased to 18$ billion, Net
profit goes to 2 $ Billion.
In the year 1998 to 2008 Wipro entered into Global IT, BPO, and Consultancy & FMCG. During this
period company has Acquired Acquisitions in 7 countries its Revenue went to 200$ billion and PAT
(Profit After Tax) goes to 22$billion. There was a consistent Growth of 25% in Revenues and 30%
Growth in Net Income and 25% Market capitalization based on Compound Average.
Presently it is presence in 58 countries with 943 active global clients as of March 31, 2012; 150+
Fortune 500 customers with 131,000 worldwide from 75 nationalities. The revenues of years 2011-12 is
USD 7.37 Billion.
3.5 Product Profile : Hydraulic Cylinders, Pumps & valves, Tipping solutions.
Application segments – Construction & Earthmoving Equipments,
Mining, Forestry, Truck Hydraulics, Material & Cargo Handling &
Aerospace & Defenses.
3.6 Mission:-
“Quality is like integrity there can be no compromise’ Quality is fast becoming a word customers want
to hear more often they used to before. No longer is quality perceived to be just a buzzword in the
corporate aisles, it’s touching our customer‘s lives in more ways than we can imagine.
3.7 Vision:-
To improve the capability of the organizations by increasing the capability of the staff.
To ensure that development capability is an attribute of the organization rather than of a few
individuals.
Align the motivation of the staff with those of the organization & retain (i.e. people with
extensive skill & capabilities) within the organization.
Timely delivery of products to customer
To reduce cost of production.
To improve the efficiency of the labour.
To maintain customer satisfaction.
Total Volume of Production is 1 million cylinders & 35,000 pumps & valves
India 53%
Europe 41%
America 5%
Japan 1%
PRODUCTION MAINTENANCE
PLANNING
Wipro Infrastructure Engineering is maintaining their organization with centralized authority, where
many number of subordinates is managed. Where a chairman is the head of the organization & followed
by MD. Its function based structure is bounded to its strategy, where its objectives & goals are aligned
with its structure.
In Wipro Infrastructure engineering they can make quick decisions, coordinate, and control & reduce
problems in communication from top to bottom. Every post in the structure has a clear role and added
value to the way the organization works.
Wipro Infrastructure Engineering has owned the land of 15 acres, (4500sqft). The overall complex has
spread over an area of twelve acres and plant building has a built up area of one thousand square feet.
The plant has advanced in house laboratory for research and development and quality control. The plant
site includes extensive facilities.
Geographical Location
Company has high profile customers are not happy but also satisfied which has earned us recognition &
unflattering loyalty from prominent buyer’s worldwide.
Customers
Tata
JCB
VOLVO
Toyota
Mahindra
Caterpillar
Komatsu
Terex
The company has its own well established road transportation facilities. The forward agent of this
company is VRL agents.
3.20 PRODUCTS
Cranes – Crawler and Truck Mounted, Container Handling, Forestry Equipment, Forklifts,
Pallet trucks, Port Equipment, Stacker Reclaimers, Warehouse Handling Equipment.
-Construction and earth moving Equipment
Excavators, Backhoe Loaders, Dumper, Dozer, Motor Grader, Wheel Loaders, Compactors,
Pavers, Compactors, Concrete Pumps
The steering cylinders are designed to reduce manual effort in steering tractors during haulage or
farming operations
-Industrial Applications
Steel Plants, Mining Equipment, Water well rigs, Plastic Machinery, Machine Tools, Furnaces,
Tunnel Boring, Wind Turbines, Dam Gates and Power.
Special Appliances
The joint venture between Wipro and Kawasaki titled ‘Wipro Kawasaki Percision Machinery Pvt
Ltd. will manufacture hydraulic pumps for excavators.
A new manufacturing facility in Bangalore is to be augmented to 15,000 pumps by 2015.
The state of the art manufacturing facility will commence operations July 2012.
Leveraging on 35 years of experience in hydraulics and actuators to enter the field of Aerospace
and Defence.
Agreement with Spanish company, Companies Espanola De Aeronauticos S.A (CESA).
A new world-class, state of the art, Greenfield facility in the Aerospace SEZ is coming up at
Devanahalli, Bangalore
The facility will be ready by end of 2012.
Phase III:-
Project Investment Rs 180Mn (USD 4 Mn)
Project commencement July 2013
Additional capacity for manufacturing and exclusive painting booth
Wipro R&D focus has been to strengthen the portfolio of centers of excellence and innovation projects.
As a part of this projects over 600 people has engaged across 60 COEs and 40 Innovation projects.
R&D efforts have contributed revenues of USD 368 million.
This is approximately 11% of our global IT service and products Revenue for the year. At Wipro we
have institutionalized the spirit of innovation through our corporate innovation initiative which began in
2000. We are now driving business vale from these investments.
Apart from solution that span across process, Delivery, Business and Technology domains we added
portfolio of quantum innovation projects in Financial year 2007-08. We included talent supply chain
management in to the innovation initiative.
For customers outside India, WIN provides customized engineering & service.
S STRENGTHS
W WEAKNESS
O OPPRTUNITIES
T THREATS
Strength
Automated technology.
Good financial strength.
Multi skilled employees.
Eco friendly business.
Flexibility in adopting Innovation technology.
Quality certified company.
Highly experienced top level managers.
Weakness
Threats
PART- 4.1
FUNCTIONAL ANALYSIS
4.1.1 PRODUCTION DEPARTMENT
PRODUCTION is the functional area responsible for turning inputs into finished outputs through a
series of production processes. The Production Manger is responsible for making sure that raw materials
are provided and made into finished goods effectively. He must make sure that work is carried out
smoothly, and must supervise procedures for making work more efficient and more enjoyable.
Production department plays a very crucial role any of manufacturing organization. It is the department
which gives life and meaning to the products. Among all the function of management production is
considered to be a very crucial in any manufacturing organization. Production is the process by which
raw material is converted into finished goods.
The basic function of the production department is in producing goods which caters the most vital need
of marketing. The company as mentioned earlier deals with the Manufacture of Hydraulic Cylinders, it
produces
Product Produced at Wipro Infrastructure Engineering.
Double Acting Cylinders
Bore : 25mm to 500mm
Stroke : up to 10000mm
Pressure : up to 400 bar
Pumps
Flow : up to 80cc
Pressure : up to 210 bar
Valves
Flow : up to 210 lpm
Steel tubes
Rods
Casting
Cylinder bottom
Product
engineering
Materials Production
Plant
engineering
Quality
Testing
Finished
Goods
Logistics
The total staff working for the production department in Wipro infrastructure engineering Bangalore is
498 (approx). Mr. SURESH. P is the HEAD OPERATION.
In this company the production function are divided into five sub-functions:-
Road transport
Airways
Shipping
Wipro infrastructure engineering follows preventive form as well as break down form of maintenance,
where all machineries will be cleaned and oiled once in a month.
The term Quality in WIPRO INFRASTRUCTURE ENGINEERING. means standard of the product
what is expected of it by the consumers. In production department the employees are committed to their
work in a prompt and effective sense that their efficiency and capability and commitment have helped
the WIPRO INFRASTRUCTURE ENGINEERING. to supply good quality and standard products to its
clients and customers. So the department is focused in maintain and improving the quality of the
products, and they are following the Total Quality Management principles.
QUALITY STANDARD
The company believes that the quality of goods depends upon the two integral dimensions they are
consistency and continuous improvement. The company adopts the following strategies to improve the
quality.
To carryout, undertake, and implement all its requirements for manufacture of safe goods on on-
going basis.
To implement ISO9001 and ISO4001 fully in all aspects/operation.
Implementing of Six sigma concept.
Superior plating corrosion resistance – CASS 9.5
Cylinder level cleanliness-NAS level 7.
Well-equipped metrology Lab and special-testing devices.
Robust vendor Quality system and selection process.
It should be taken care of employees in order to protect the employees against accidents.
This relates to :-
Cleanliness
Disposal
Ventilation & temperature
Dust & fume
Artificial humidification
Over crowding
Lighting
Drinking water
Urinals & spittoons
Workers & employees are provided with Shoes, helmets, bridges, gloves & goggles, apron,
Personal protective equipment (PPE) e.t.c
Hygienic Food
Quality
Supply
On time Delivery of Raw materials
MATERIAL PROCUREMENT
CUTTING
ROUGH TURNING
TURNING
DRILLING
MILLING
WELDING
GRINDING
BRUSHING
END OPERATIONS
ASSEMBLY
TESTING
POLISHING
DISPATCHING
10. BRUSHING: - Under this process super finish on the tube surface for improved seal life.
11. END OPERATION:- After the brushing operation the cylinders are send to end operation.
12. ASSEMBLY:- PLC control mechanized assembly consistent quality.
13. TESTING: - Testing includes computer integrated automated testing higher output.
14. POLISHING: - After testing the cylinders are send for polishing.
15. DISPATCHING: - After polishing the cylinders are sent to go downs for dispatching.
SWOT ANALYSIS:-
S STRENGTHS
W WEAKNESS
O OPPRTUNITIES
T THREATS
Strengths
Weakness
Wastages.
Employees are not strictly following the safety measures indicated by the management.
Opportunities
Threats
PART 4.2
FUNCTIONAL ANALYSIS
Marketing department is headed by Mr. R. Vasudevan ; he has vast experience in handling of that
department.
4.2.2 Objectives
Pricing the Product: - Sales department is not in the organization because it Exports the product
to star Trading Exporters.
Marketing research: - Marketing Research team collects the customer data by attending the
International Fair of Infrastructure buyer in different countries. They also attend the Exhibitions
shows to select the style and design.
Transporting to the ports: - Distribution: distribution of the products is done by using road
transportation and shipping.
Product Design Department: - is involved in designing the products as per the clients order and
requirement.
Price of the Product: - Price of product is depending on country wise buyer and type of product.
The products manufacture by the company is sold based on the order. The company manufactures the
product once the order is placed by an organization. So the products by the organization are customized
products.
The organization is business to business marketing. Hence does not goes for all out promotional
activities as done by the FMCG companies. The companies basically depend on word of mouth publicity
and also display its products in industrial meals.
4.2.7 Distribution
The products are distributed directly to the organization which places the order. So the company is into
zero level or direct marketing.
Cutting edge technology is used in computation of fluid dynamics and finite element analysis. Wipro
extensively use Pro E and CAD including 2D, 3D pro 1 vechanica, Analysis and wind chill PDM.
WIN design process involves capturing exhaustive customer inputs, providing design proposals applying
DFMEA and DOE, Procures design through PFMEA and DOE, proto development and reviews,
extensive validation and type testing, fitment on equipment, function and field trials, customer and field
driven CAPA and finally to production release.
The pricing policy adopted is cost plus. This method is considered as the bets approach to pricing. it is
based on price per unit of the product plus an additional margin of profit. Wipro determine selling price
on the basis of
It included both in terms of development and improvement of product that is done jointly by marketing
and research and development department. The increasing efforts are directly to strengthen the market
intelligence both qualitatively to see the right products and introducing the right segment at right price.
Most companies rely primarily on advertising, to move their products and service. Wipro also depends
on these promotion tools. They are advertising to create awareness and interest and sales promotion to
provide incentives to buy.
SWOT ANALYSIS:-
S STRENGTHS
W WEAKNESS
O OPPRTUNITIES
T THREATS
Strengths
Weakness
Opportunities
Expanding demanding
Research and development
Widening of exports
Increase in demand for the equipments from the other countries.
Threats
PART- 4.3
FUNCTIONAL ANALYSIS
Finance department is headed by Mr. Sachin Bansal; he has vast experience in handling of that
department.
In order to fill the gap of requirement of immediate funds the firm uses the sources of short term finance
from banks or the previous profits.
Asset Accounting
It is nothing but the total assets along with the depreciation along with them. Depreciation of assets is
done through Diminishing Balance Method.
Taxes
Credit Period
Credit period allowed to the customers depends on the customer’s good will. Normally credit period
allowed is 30 days, 45 days and 90 days. The payment period allowed for the suppliers is 60 days.
Accounting software
Now each and every organization is automated. Every organization is reaping the advantages of
technology. Even the WIPRO INFRASTRUCTURE ENGINEERING is using SAP Package for its
effective accounting system.
The finance department handles all its financial activities through software called Electronic Data
Processing. The various sections in finance department are:-
Initial Investment:
Initial Investment made in
Off- Highway Truck Cylinder Plant – Bangalore
Phase III:-
Project Investment Rs 180Mn (USD 4 Mn)
Project commencement July 2013
Additional capacity for manufacturing and exclusive painting booth.
Self investments.
Bank: - Sourced from SIDBI
(a) Imports: - They import the automated machineries costing lakhs of rupees from Singapore,
Hong Kong, Taiwan.
(b) Exports: - WIPRO INFRASTRUCTURE ENGINEERING is manufacturing and export
company, hence all the products produced are exported to its clients spread across the globe.
The major raw materials requirements for the hydraulic industry are CDC tubes, castings, forgings,
alloy steels, non ferrous metals such as aluminum, copper, brass. Some of the above materials are –
Imported and other are available indigenously. Also, the hydraulic industry is dependent on imported
components ‘XV’ for their production.
The major components import requirement of the industry is in respect of ‘O’ rings, oil seals, springs
vane blanks, bearings etc. rotating block for axial piston pumps/ motors, special bearings etc., the
requirements for each type is so small that it has not been possible to develop regular and good
quality from indigenous sources.
The bulk of the exports of the Oil hydraulic products are taking place as indirect exports, namely, as
components of larger plant and machinery being exported. By and large direct exports by individuals
companies are minimal. It is also to be recognized that to be able to Export these products; it is
necessary to have a highly technical Marketing and after sales service set up in the countries in
which exports have to be made. These are at present above the capability of the industry.
Net sale: -
Total production volume 2011-12 is 1 million cylinders and 35,000 pumps & valves.
Total sales for 2011-12
India 53%
Europe 41%
America 5%
Japan 1%
Application Segments
Construction & earthmoving 43%
Farm & Agriculture 4%
Material Handling 26%
Mining 3%
Truck hydraulics 15%
Forestry 4%
Working Capital
The working capital is an combination of Current Asset & Current Liabilities. The required of necessary
working capital has been worked out as under.
Current Assets
Inventories 8, 33,000
Cash and bank balance 7, 35,000
Debtors 9, 78,000
Advance to suppliers of Raw material 4, 41,000
Other current assets 2, 82,000
Total 7, 19,000
Financed By:-
FINANCE MANAGER
EXECUTIVE ACCOUNTANTS
ACCOUNTANT ASSISTANTS
SWOT ANALYSIS:-
S STRENGTHS
W WEAKNESS
O OPPRTUNITIES
T THREATS
STRENGTHS
There are many subsection in the Finance department to look after sub function of department.
Smooth working capital flow.
Financially strong.
WEAKNESS
OPPRTUNITIES
THREATS
PART -4.4
FUNCTIONAL ANALYSIS
Human resources department is the important department which is very essential for the betterment of
the organization. For this organization, a little bit difference in the scope, approach in HR concept is
required, because here people think differently and expect differently, around 80% mangers spend time
in handling of human resources. A very common problem always exist is conflict in intra-department or
in worker and management, so HRM play as a tool to resolve this problem efficiently.
Human resource department is playing a very crucial role in the organization and it is helping out to
carry out the all the functions in the organization effectively. In WIPRO INFRASTRUCTURE
ENGINEERING. department Heads will forecast man power requirement and send the report containing
detailed information regarding – the required number of candidates, qualification required. The report
will be sent to the HR department. Issue is discussed with the management and decision is taken after a
detailed discussion. If the requirement of human resources is confirmed then the HR department will
take proper steps.
HR MANAGER
SECURITY
GARDNER
Human Resource department is headed by Mr. Mr. Annappa G; he has vast experience in handling of
this department.
4.4.3 FUNCTIONS of HR
Recruitment
Selection
Orientation
Induction
Training
Human Resource Department
Promotion polices
Compensation- reward, reward for best services, earned leave.
Performance appraisal.
Motivation
Welfare
Other disciplinary aspects.
In the company recruitment procedure is direct. Their recruitment process starts from the ads in
the newspaper in which they mention all requirements for particular job, through consultants,
campus recruitment, & employee reference. They fix the interview date & venue. At the time of
interview they check all documents and then interview on the basis of job.
Recruitment Process
Written test
Personal interview.
Job test for technical job.
Confirmation orally or by writing.
Appointment order.
Orientation
After selection Induction program will be conducted by the welfare officer to help the new employee to
understand the working environment. Introduction with the work place, colleagues, giving information
about the nature of job, leave benefits, salary, provident fund, insurance, welfare benefits, position in
hierarchy etc are given. They are also briefed on their roles and responsibilities and their direct reports.
Induction
At individual level
At department level
At organization level
On the job training and in house training are followed to train the newly hired employees. Annually
training section in the HR department prepares its own training calendar, monthly training schedule with
the help of time officer. The aim of training and development is to define the output variables
specifically. Measure the capabilities of the employees in the context of the current and the future job,
which increase the possibility of their employability in the context of their business.
Full utilization of the talents of the manpower and the development of these resources. Employees are
trained to manage well the system of the company. Bring in continuous improvements in the
organization.
Empowerment
It is the process of giving employees more power to exercise control over and take responsibilities for
their work. It can speed up decisions making process and accelerate the response time to meet the
changing needs of the customer, creativity of the employees provide for greater job satisfaction,
motivation and commitment gives people more responsibility.
Compensation Polices
Here a major issue is the wages and salary with time so HR takes care about that and makes structure in
such way that it satisfies both worker (employees) and management. This function is taken care by
wages and salary administration section of HR department. It is computerized, and calculated on the
basis of attendance. In case of unpaid wages salary reconciliation is made, in case of resigns full and
final settlement of his/ her account is made.
An employee reward system consists of an organization’s integrated polices, processes and practices for
rewarding its employees in accordance with their contribution, skill and competence and their market
work. It is developed within the frame work of organizations reward philosophy, strategies and polices
and contains arrangements in form of processes, structures and procedures which will provide and
maintain appropriate types of levels of pay, benefits and other forms rewards.
Intrinsic Rewards:-
Pride in ones work, having the feeling of job accomplishment, job enrichment, being member of
a team.
Extrinsic Rewards:-
Wages / salary, fringe benefits, welfare measures, promotions, incentives etc.
Earned Leave
Permanent worker who have actually worked in a particular leave year for 240 days would be entitled
for 12 days earned leave. For the days worked in excess for 240 days concerned workmen would be
entitled to 1 earned leave for every 20 days actually worked.
Disablement Benefit
If temporary disablement due to employment injury: then if the person were injured he/ she
would be compensated with about 70% of daily average wage.
If permanent disablement due to employment injury: then periodical payment is paid for the
person who is injured / to the dependent of the injured person.
Performance Appraisal
WIPRO INFRASTRUTURE ENGINEERING adopts the 180 degree of performance appraisal. Where
human resources manager will interacts with the employees and finds his objectives later on these
objectives are discussed with the superiors and finally reviewed by head of the department. It is a
method of evaluating the behavior of employees in the work spot including both the quantitative and
qualitative aspects of job performance.
Motivational Activities
Motivating the employees to make them perform their better is one of the major functions in the
performed here. Awarding the best performers of the week in each section of the departments is one of
the best motivating factors. It helps in motivating the employees in operational level and managerial
level.
(b) The different committees are formed for the well being of the employees. The committees
are
Canteen committee of 10 members- every month end meeting are held and feed back is collected
from the personnel.
Sexual harassment committee- this committee consists of 70% of women employees of the
organization.
Health and safety committee- this committee takes care of gadgets and educates the personnel
about the safety measures to be followed in different situations.
Workers committee – this committee is formed and functions as per Industrial Disputes Act.
(c) Employee Welfare Officer arranges regular workshops, demos, lectures and seminars etc.
to empower regarding the following:-
Monthly awareness program for new employee.
Safety measures thought to the employees
Personnel hygiene
Extinguish fire
Women’s day celebration.
the absence of managers, from the in charge manager for any other officer authorized in this
behalf.
Retrenchment
Attendance is taken and checked and irregular employees are kicked out. Those who are indiscipline are
also removed from the job.
Labor Union:-
There is no labor union in the organization. Here even the organization doesn’t encourage the labour
unions.
All the staff wears uniforms as prescribed. The company supplies cloth Materials for 2 sets of uniform
once in 1 year. The company also pays the stitching charge as may be decided by the management.
Employees and workers are given proper training in handling up of the machinery. Workers &
employees are provided with helmets, bridges, gloves& goggles etc.
RECREATIONAL FACILITIES
Recreation helps to reduce tension of work and to relax for sometimes. Tea & snacks is provided twice
and makes them fresh at work. Club also provided to the employees
Classification of Employees
SWOT ANALYSIS:-
S STRENGTHS
W WEAKNESS
O OPPRTUNITIES
T THREATS
Strengths
Weakness
Absenteeism of employees
Traditional methods are followed for recruitment.
Lack of training programs
Promotions are given on the basis of experienced rather than efficiency.
Opportunities
Threats
PART- 4.5
EDP DEPARTMENT
EDP means Electronic Data Processing. Here data is collected and fed to computer.
All transactions relating to receipt / supply of material, equipments and services are duly codified. All
jobs connected to accounts namely, sales accounts, purchase accounts, debtors and creditors accounts,
material accounting, cash and bank transactions general ledger and subsidiary ledgers, wages and
salaries are dealt by this section. The input data from various divisions are received and processed and
computerized accounts are submitted to Finance and Accounts department.
This section is headed by an EDP manager duly assisted by one junior officer and one Senior Assistant
To back support SAP R/3 and to facilitate team members with a latest and state of art IT hardware they
are operating fully fledged EDP Dept. The dept. comprises with team of qualified IT professionals to
assist team members wherever the IT support is needed.
By and large each of the members is interconnected with the help of latest and fastest available
hardware component for ease of internal communication needs. All three of the plants are
interconnected with a fiber optical channel. While designing such communication channels
redundancy is kept in mind to cope with any hardware failure instances.
Exclusive server room is provided with latest technological equipments like high end server
products for fastest operational efficiency and redundancy. Server room is facilitated with
Precision air conditioner and backed by most reliable UPSs. Each of the team members enjoys
independent internet facility on their PCs. Proper backup mechanism ensures the safety of data and
provisions are undertaken to secure the data from various viruses and other corruptions.
S STRENGTHS
W WEAKNESS
O OPPRTUNITIES
T THREATS
STRENGTHS
OPPORTUNITIES
Rising exports from the industry. The hydraulic manufacturing industry is one of the greater
export oriented industry in India.
Promotion of new brands effectively with introducing new varieties. The research &
development team can work effectively in introducing new brand varieties with coming with.
New products of different hydraulic cylinders.
Scope for expansion.
Increasing demand.
Explored options in SEZ Industrial area.
Tax exemptions and Governmental subsidies.
THREAT
FINDINGS
Organization structure of Wipro infrastructure engineering is well formatted in which each and
every department plays important role.
In hydraulic manufacturing Industry organization structure is divided into part one is in
Administrative and second one is production. These both departments are headed by different
persons but at the same time they work for same objective with full co-ordination which shows
the unity level about the organization.
All the employees and labors work very hard towards achieving the goal. Even the higher
authorities work very hard without wasting time and always they take steps towards achieving
the organization goal.
Administrative head role in an organization very important to make good working environment
the practice which I observed was that he was very hard working person and he does his work
very efficiently.
The employee turnover in this industry is very good as compared to others organization of same
segments.
Organization culture of Wipro infrastructure engineering is informal, where every person directly
meet to high authority without any systematic way which I considered was good because it
encourages employees at work.
The company has well established infrastructure and healthy environment which attracts the
Human resources’ willingness to work over there.
Tax exemption up to five years is one of the advantages which the company is enjoying.
Low cost labours with multi skills in various backgrounds are available easily.
Well established transportation facilities.
WIPRO INFRASTRUCTURE ENGINEERING is one of the biggest companies manufacturing
and exporting hydraulics.
It has a separate HRD section for maintaining its manpower resources.
Intensive measures have been undertaken for pollution control and environment.
Organization structure of WIPRO INFRASTRUCTURE ENGINEERING is well formatted in
which each and every department plays important role.
CONCLUSION
From the above SWOT analysis it is clear that the strengths as well as opportunities of company are
more. It is due to the efforts made by all the levels-top level, managerial level, and operational level of
the organization. The initial investments and every year they increased the investments this willingness
of the entrepreneurs shows the plus point of the organization. The ever expanding business every year is
the indicator of success and its bright future; it shows the company’s commitment to future growth and
improvement. The company’s opportunities need to be grabbed and for improvement and further
success. The company is not only has profit Human resources and society. As per the data collected
about hydraulic manufacturing is expected to grow further. Moreover it can be seen there is a good
competition between the companies in this sector are focusing more on customer satisfaction. Even year
by year the export market is also booming in a wide span, so the organization can grow very soon as this
is also mostly concentrated on exports.
This project reports gives a viewed picture of how Wipro infrastructure engineering limited company
has molded itself into a well established company. It is one of the leading manufacturers of hydraulic
cylinders. It is my immense pleasure to do my projects in such dynamic company which has reached
great heights by employing sound financial techniques and innovative marketing strategies. The story of
the company proves that great things are done with humble beginnings which are inspirational for new
entrepreneurs.
Ultimately, the main objective of the company is to be the number one in producing quality hydraulic
cylinders and to have a global presence.
SUGGESTIONS
Wipro infrastructure engineering should invest more in its infrastructure to expand its
production and business operations, by updating all its machinery to the current technological
levels in all departments.
Wipro infrastructure engineering is exporting its product to Asia & Europe countries. It should
concentrate on export to all over the world.
The company should grab various opportunities for future perspective and growth.
Proper allocation of funds in various activities.
LEARNING EXPERIENCES
1. The experience in the organization during my internship project was great. In the organization I
learn how the activities take place in real world in the business organization. It helped me to
relate and understand the practically with theoretical concept which I have learnt in class room. I
saw over there how issues are discussed and decisions are take place. In all the functional
departments the employees with multi skills and their commitment and job effectiveness are
utilized. Each employee has the freedom to give his opinion for the betterment of the
organization.
2. The project in Wipro Infrastructure Engineering had given me a great experience in learning
about each and every department under it and my knowledge has been enhanced in such a way
that, how exactly the functional departments will work in reality.
3. They co-operated and helped me to know how the business operates and exposed to a wide range
of company aspects.
4. It is a immense pleasure of doing my internship project in WIPRO. After completing the
organization study I come to know that is different and working in organization is different
overall it was a good experience in my life time.
5. Getting permission in the any company to undertake internship even for four weeks it was very
difficult. In some companies the gate keeper sent us back not letting me to speak with either HR
manager to Training Officer. The reasons they gave are many. Then I tried in WIPRO
INFRASTRUCTURE ENGINEERING & finally I got permission to do my internship project in
the various department of the WIPRO INFRASTRUCTURE ENGINEERING. Mr. Annappa
G who was my guide in the organization. He explained me about the timings and other rules to
follow during my internship.
6. I was able to get maximum information from each section of the company. It happened due to
the good coordination and fantastic guidance of my Guide Mr. Annappa G. He helped me in
updating my knowledge & skill, he also told me in which area of skills I should work on such
as:-
Good communication skills,
Computer Knowledge of hardware & software
Extra course like- SAP Modules, NCFM Certification, HR Payroll soft, ESI , labor Law.
Read daily newspaper in order to remain with current knowledge as global which is
required tool of modern life.
7. Things I have learnt the various managerial skills, time management, coordination, confidence,
decision making and execution, and communication skills. I learnt from the employees the
cooperation, commitment and dedication in work environment.
8. I would like to work in the same organization with the same person who has coordinated in my
training.
From all overall experience I realized that still what I have to work on more on required areas and the
life outside the class room is difficult. The duties, responsibilities, commitments we need to understand,
follow and we also required listen to commands from the higher authority under which we work.
BIBLIOGRAPHY
Books:-
Web site:-
http://www.wiproinfra.com/about-us/company-profile.php
http://www.wipro.com/about-wipro/Wipro-Group-Co/
www.rbi.org.in
www.ibef.org
www.txcindia.com
www.allbankingsolutions.com
www.forex-rates.biz