SUMMER TRAINNING PROJECT

REPORT
ON
INDIAN RAYON
(A Unit of Aditya Birla Nuvo Ltd.)
VERAVAL

SUBMITTED TO
SAURASHTRA UNIVERSITY
IN PARTIAL FULFILLMENT FOR THE AWARD OF
THE MBA DEGREE

SUBMITTED BY
ANKIT J. RAICHRA
SEMESTER III

AFFILIATED TO SAURASHTRA UNIVERSITY,

RAJKOT
 PREFACE

The golden opportunity for any management student is to know about the actual managerial
work of any industry. “Practice makes man perfect.” In this perspective it is the necessity of
practical training for every MBA student to support and to expand the deep sense of practical
management work.

The aim and purpose behind this industrial training is to lead the students to get more
efficiently skills and the knowledge of real managerial work/practices which may help them
to become a successful manager.

Management field is like a coin. It has two sides one is theoretical and another is practical
management approach. Both are very necessary aspects to learn for management students. As
a part of practical approach, industrial training is very important for the management
students.

In our university, for all the MBA students the industrial training of 45 days and project
report work are compulsory to undergo as a part of study during the summer vacation after
completion of 2nd semester.

As a summer trainee I have visited Indian Rayon (A unit of Aditya Birla Nuvo Ltd.) Veraval
Gujarat. It was great opportunity for me to explore such a big and vibrant company. And I
tried my level best to make this training most successful. I got very cordial support from all
the departments employees who shared their working experience with me, as such a way this
training period has become a precious reminiscence for me.
 ACKNOWLEDGEMENT

I am thankful to the management of “Indian Rayon. (A unit of Aditya Birla Nuvo Ltd.)
Veraval Gujarat.” Who permitted me for doing the summer project training within and
exposure of functioning of big corporate for the period of 45 days.

A project of this nature calls for intellectual nourishment and professional help from many
people. I therefore, deeply express my gratitude to all the professors of my college and
special Dr. Dharmesh S. Raval and Mrs. Vishala Mehta who guided me and even helped me
in completing my project.

I would like to thank Mr. P. Narsimharao, Sr.Vice President (HR), for providing me this
opportunity to learn the basic nitty-gritty’s of management in the prestigious company of
Indian Rayon.

I am also thankful to Miss Shraddha Mehta (Training Manager) who allowed me to carry out
my project and guided whenever required. I am also thankful to Mr.J.V.Dave (Librarian) for
his cooperation to provides relevant books as well as journals that made my task smooth.

I finally express my gratitude to all those who directly or indirectly rendered the assistance,
guidance and support for the project undertaken by me in the company.

Last but not the least, I am greatly indebted to my God, my parents, my family members and
my friends without whose blessing and guidance I think I could not have reached this
moment in my life.
 DECLARATION

I Mr. Ankit J. Raichura the student of Master of Business Administration from

Kum.M.H.Gardi School of Management, here by declares that the project work presented in
this report entitle “General Organizational Study of Indian Rayon Veraval – Gujarat.”
Submitted in partial fulfillment of the award of the degree of Master of Business
Administration from Saurashtra University is a record of original study done by me. This
work has not been undertaken or submitted else where in connection with any other academic
course.

Place : Veraval

Date :

ANKIT J. RAICHURA
(MBA Sem.- III)
 TABLE OF CONTENT

Sr.
Page
Particulars

1 Objective of Study 01
2 Executive summary 02
3 Company Profile
 Introduction of Group and Company 04
 History and Development 06
 Owners 07
 Present Manegement Team 08
 Product of the company 10
 Plant Location 12
13
 Vision, Mission and Values
14
 Company Policy 15
 Milestones 17
 Future Plans and Achievements
4 Organization Structure 18
5 Production Department
 Introduction 20
 Production capacity 21
 Raw Material 22
 Production Process 23
 Plant Layout 28
29
 Material Handling
30
 Quality control 32
 Purchase Department 34
 Plant maintenance 35
 World Class Manufacturing
6 Human Resource Department
 Introduction 38
  Manpower planning 39
 Recruitment & selection 40
 Training & development 42
 Job description 44
 Performance Appraisal & Motivation 45
 Promotion & Transfer 46
47
 Wage & Salary Administration
48
 Time Keeping System 49
 Trade Union 50
 Industrial Relation 51
 Employee Services 53
 Working ESI system 54
 Provident fund scheme 55
 Company social Responsibility
7 Marketing Department
 Introduction 58
 Objective of Marketing 59
 Product Planning And Development 60
 Product Mix 61
 New product development 62
63
 Brand
64
 Marketing Research 65
 Market Segmentation 67
 International Marketing 68
 Pricing 69
 Promotional Tools 70
 Advertising 71
 Channel of Distribution 72
 Customer Support Services 73
 Competitors
8 Finance Department
 Introduction 75
 Capital structure 76
 Fixed Asset 77
78
  Capital Budgeting 79
 Working Capital 80
 Inventory Management 81
 Cash Management 82
 Management of Receivables 83
 Dividend Distribution 84
 Cash Flow Analysis 86
87
 Profit and Loss account
 Balance sheet
9 SWOT Analysis 89
10 Conclusion 91
11 Bibliography 92
 OBJECTIVE OF THE STUDY

Today, is the age of globalization, age of science and technology where one will find now
invention and discoveries at every mode of life? It is due to sudden globalization in the
economy now as we go towards the market; we see a changing trend due to particular brand
and selection of it. In the field of education, new courses are introduced with having
practical training, which is needed but the theoretical knowledge is also important, so that we
are aware with practical phase in business dealings and life.

Management is a field, where Managerial & Practical Knowledge is required. With a view to
getting practical knowledge of Industry, We were required to undergo training in the Industry
according to our syllabus for practical study subject because only theoretical knowledge is
not enough to gain knowledge of business. Practical knowledge helps a person to understand
real life problems.

Industrial acquaintance for M.B.A. student is the most important aspect, to enlighten about
the multi facets of ever increasing competition in business ever since globalization. Practical
training has been incorporated in the curriculum of MBA which enables the management
students to get familiarized and equip them with the practical aspects of management. This
benefit as it cultivates habit of business students thinking and sense of professionalism.
Thus, a student knows how theoretical learnt of classroom is actually implemented in
business environment and what is the difference in the theory and practice?

After completing this Project, we are more confident about Practical aspects of business
Management. So, objective to study this summer project is a practical training program
which gives actual practical exposure to organizational working setup.
 EXECUTIVE SUMMARY

A study on overall organizational work and functioning has been conducted in Indian Rayon,
one of the blue chip units of the Aditya Birla Group of Companies.

Indian Rayon, the VFY unit of Aditya Birla Nuvo, is a major player in the Indian viscose
filament yarn business. The unit enjoys a 30 per cent domestic market share, making it the
second largest producer of viscose filament yarn in India.

The report discusses the brief overview of various organizational departments, its function
and managerial practices. In the changing business environment, organization also considers
factors such as cultural diversity, social responsiveness, quality control, employee welfare
and ethical and moral obligation to lead their organization successfully. The report provides
insight into such issues and also explores business challenges and world class manufacturing.
COMPANY PROFILE
 INTRODUCTION

The Aditya Birla Group is India’s second largest business house with turnover of RS. 200
billion; asset base valued at over as RS. 180 billion and really 65000 employees in 15
countries all over the world. Over 75 units in India an overseas as well and international
trading operations spanning several countries include Singapore, Dubai, Russia, Vietnam,
Myanmar and China make it India’s first truly multinational conglomerate.

Committed to being a global Benchmark Group, all of its accredited with the ISO 9002
Certification and nine of them are certified with ISO 14001.

The Aditya Birla Group reaches out to the core sector in India in industries integral to the
nation’s growth- cement, Aluminum, Fertilizers, Viscose Staple Fiber, Textiles, Petroleum
Refining Power, Telecommunications and industrial chemicals and Financial Services

Globally the Aditya Birla Group is:

 A metals powerhouse, among the world's most cost-efficient aluminium and copper
producers. Hindalco-Novelis is the largest aluminium rolling company. It is one of the
three biggest producers of primary aluminium in Asia, with the largest single location
copper smelter
 No.1 in viscose staple fibre
 The fourth largest producer of insulators
 The fourth largest producer of carbon black
 The 11th largest cement producer globally, the seventh largest in Asia and the second
largest in India
 Among the world's top 15 BPO companies and among India's top four
 Among the best energy efficient fertiliser plants

In India:

 A premier branded garments player

 The second largest player in viscose filament yarn
 The second largest in the chlor-alkali sector
 Among the top five mobile telephony companies
 A leading player in life insurance and asset management
 Among the top three supermarket chains in the retail business

Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success does not
come in the way of the need to keep learning afresh, to keep experimenting.
 Indian Rayon Veraval
(A unit of Aditya Birla Nuvo)

Indian Rayon, the VFY unit of Aditya Birla Nuvo, is a major player in the Indian viscose
filament yarn business. The unit enjoys a 30 per cent domestic market share, making it the
second largest producer of viscose filament yarn in India.

Branded 'Ray One', the viscose filament yarn is available in more than 400 shades. The yarn
comes in a wide array of colours, including natural whites. It ranges from the purest tints,
through medium tones to vibrant deep shades in fine to coarse deniers ranging from 75 to
1200.

With a capacity of 16,400 tonnes per annum (tpa), Indian Rayon is the first in the country to
adopt the most advanced VFY technology with 88 pot spinning machines (PSY) and 17
continuous spinning machines on parallel yarn. It also accounts for 50 per cent of VFY
exports from India.

Located at Veraval in Gujarat, the VFY plant is the first in Aditya Birla Nuvo to be
accredited with the ISO 9001 and the ISO 14001 certification. It also has the OHSAS 18001
and OEKO Tex certification.
 HISTORY AND DEVELOPMENT

The late Prime Minister shree Lal Bahadur Shastri laid the foundation stone of Indian Rayon
and industries Ltd. It was incorporated on the 26th September 1956 under the company act of
1956 and the company was getting the commencement certificate on 13th Feb. 1958.

The inauguration of the company was done by an American ambassador Mr. H.H. Galbreth
on 13th April 1963 and on the same day company took its trial production.

Shree Morarji Vaidya one of the leading industrialist of Gujarat with a view to manufacture
viscose filament yarn (VFY) in collaboration with von-kohorn international of USA started
this organization.

Once a sick company and virtually on the verge of closure was taken over by Shree Aditya
Vikram Birla in 1966. Who believed consolidation, expansion and diversification, because of
his believed and sincerity toward work the company has not only turned around but has also
made up strong market position today. By 1975 the Jayshree Textiles has merged with Indian
Rayon. The Indian Rayon is public Ltd. Company.
 ADITYA VIKRAM BIRLA

(November 14, 1943 – October 1, 1995)

A formidable force in Indian industry, Mr. Aditya Birla dared to dream of setting up a global
business empire at the age of 24. He was the first to put Indian business on the world map, as
far back as 1969, long before globalization became a buzzword in India. The Aditya Birla
Group, Epitomizing the philosophy of its Legendary leader – the late Aditya Vikram Birla –
one man who Made a difference. Rooted in Indian values, yet global in vision.

Rock solid in fundamentals. Nurturing a culture where success does not Come in the way of
the need to keep learning afresh, to keep Innovating, to keep experimenting. Transcending
the conventional Barriers of business to send out the message that it cares.

Transcending the conventional barriers of business to send out a message

that "We care".
 PRESENT MANEGEMENT TEAM

MR.KUMAR MANGLEM BIRLA – Chairman

 BORD OF DIRECTORS.

 Mrs. Rajashree Birla

 Mr. B. L. Shah
 Mr. P. Murari
 Mr. B. R. Gupta
 Ms.Tarjani Vakil
 Mr. S. C. Bhargava
 Mr. G. P. Gupta
 Dr. Rakesh Jain
 Mr. K. K. Maheshwari
 Dr. Bharat K. Singh
 Mr. Arun Maira
 Mr. Pranab Barua
 Mr. H. J. Vaidya
 Managing director
 Dr. Bharat K. Singh
 Joint Managing director
 Dr. Rakesh Jain
 Chief financial officer
 Mr. Sushil Agarwal
 Business heads
 Mr. K. K. Maheshwari (viscose filament yarn)
 Mr. Pranab Barua (garments, textiles)
 Dr. Rakes Jain (carbon black)
 Dr. Bharat K. Singh (fertilizers, insulators, software and BPO)
 Mr. Ajay Srinivasan (financial services)
 Mr. Sanjeev Aga (telecom)
  Company secretary
 Mr. Devendra Bhandari

 Rayon Division (Executives)

 Mr. K. K. Maheshwari
 Rahul Mohnot
 Mr. K.C. Jhanwar
 Mr. D. P. Modani
 Mr. B. B. Dixit
 Mr. K. D. Joshi
 Mr. P Narsimha Rao
– Group Executive President
– President (Indian Rayon)
– Executive President
– Joint President (Finance Communication)
– Sr. General Manager (Caustic&Power)
– Joint (Marketing)
– Sr. Vice-President (H.R.D.)

 Bankers

 State Bank Of India

 Corporation Bank
 HDFC Bank Ltd.
 Punjab National Bank
 United Bank of India
 Canada Bank
 UCO Bank
 American Express Bank Ltd.
 Citibank N.A.
 ICICI Bank Ltd
 Central Bank Of India

 Auditors

 Khimji Kunvelji & Co. - (Chartered Accountant) – Mumbai

 S. R. Batliboi & Co. - (Chartered Accountant) – Mumbai

 PRODUCTS OF THE COMPANY

There are 11 units working under Indian Rayon division of Birla Group. In every unit various
products are produced. Here we are mainly concerned with Rayon division. It is
manufacturing the following:

 Viscose filament yarn

 Sulfuric acid (H2SO4)
 Carbon-di-sulfite(CS2)
 Ann Hydro sodium sulfate

Vital and essential for Viscose filament Rayon Yarn are wood pulp, Caustic
Soda (Naoh) while that of are sulfer, oxygen gas water for the production of
sulfuric acid and super and cake for the production of carbon-di-sulfite. There is
separate plant for each product. The fourth product sodium sulfate is a by
product.

Uses of Rayon Yarn:

 Mental of gas lanterns

 Dress material and sari
 Elastic types
 Fancy yarn and finishing fabric and fancy laces
 Embroidery work
 Making border design to stick with dress material.

Uses of sulfuric acid(H2SO4):

 Chemical industry
 Agro-chemical industry
 Paint industries
 Dye industries
 Medicine industries
 Rayon industries
Uses of carbon-di-sulfites:

 Glass industries
 Pharmaceutical industries
 Rayon industries
 Bases of agro-chemical industries

Uses of sodium sulfate:

 Glass industries
 Paper industries
 Dye industries
 Paint industries
 LOCATION

Location is very essential and important part of the industries. When deciding the location we
should identifies the key factor which is directly affected the industry.

Indian Rayon units is located at veraval, in district junagadh. It is approximately 185 km.
away from Rajkot. 85 km away from Junagadh towards south east and 125 km. away from
Porbandar in west north. The place is 1 meter above sea level. Location is nearest to Railway
Station and state Bus Station. State roadways operate round the clock towards Baroda,
Ahmedabad and Porbandar including its night services.
VISION, MISSION AND VALUES
 COMPANY POLICY

We are committed to be the preferred choice of customers while taking care of the interests
of all stakes holders by.

 Meeting customer’s expectations for quality and services in premium segment.

 Adopting eco-efficient technology to maintain pollution free environment.
 Preventing occupational health and safety hazard by adopting safe work
practices.
 Respecting employees right and providing healthy working environment.
 Compliance of all applicable legal requirements.
 MILESTONES

2009 In recognition of work that truly exemplifies the highest values of society
and corporate leadership for social responsibility and sustainable
development initiatives, the Reader's Digest Pegasus Star Award has
been conferred on Hindalco. Mrs. Rajashree Birla who spearheads all the
Group's social projects received this much coveted award on behalf of
Hindalco from Mr. Arun Jaitley, MP, Rajya Sabha, on 21 January 2009
in Delhi.
2008 The President of India, Mrs. Pratibha Patil conferred the much coveted
Rotary International Polio Eradication Champion Award on Mrs.
Rajashree Birla in an elegant function at the Rashtrapati Bhavan (Delhi),
attended by the Chairman, select Rotarians and WHO officials.
2007 Hindalco awarded the CII - Sorabji Green Business Centre "National
Award for Excellence in Water Management 2007".
In May 2007, Novelis became a Hindalco subsidiary with the completion
of the acquisition process. The transaction makes Hindalco the world's
largest aluminum rolling company and one of the biggest producers of
primary aluminum in Asia, as well as being India's leading copper
producer.
2006 Hindalco in a joint venture with Almex USA Inc.
TransWorks Information Services announces success of bid to acquire
Minacs Worldwide.
Grasim Industries Limited, India; Thai Rayon Public Company Limited,
Thailand and P.T. Indo Bharat Rayon, Indonesia form a JV with Hubei
Jing Wei Chemical Fibre Company, China, for VSF.
Hindalco awarded the Greentech Safety Silver Award for its outstanding
safety performance during 2005-06.
2005 Indian Rayon re-christened as Aditya Birla Nuvo.
Aditya Birla Group to set up a world-class aluminium project in Orissa.
The Aditya Birla Group signs a framework agreement to acquire St Anne
Nackawic Pulp Mill, Canada.
2004 Brownfield expansion of 40000 TPA completed at Hi-Tech Carbon,
Gummidipunidi, taking total capacity to 84000 TPA
2003 Joint venture with NGK of Japan Birla NGK Insulators Pvt. Ltd. Launch
on 6th February, 2003, effective from 1st Augest, 2002
Entry into business process outsourcing with the acquisition of
Tran works a leading Indian ITES/BPO company.
Madura Garments launches SGF jeans a revolutionary denim braded
targeted at the young generation.
2002 PSI Date System acquires Birla Technologies Limited.
2001 Life insurance subsidiary Birla Sun Life Insurance Company Commences
operations in march.
Indian Rayon acquires PSI data System
2000 Indian Rayon acquires Madura garments, taking the Aditya Birla Group
to the top of the league in the branded apparels sector.
1999 Indian Rayon returns surplus cash to shareholders through a buyback.
1998 Indian rayon’s cement business transferred to group company Grasim, as
a part of cement business consolidation.
Production commences at Hi-Tech Carbon’s second carbon black plant at
Gummidipoondi chennai.
1988 Indian rayon forays into carbon black; Hi-Tech Carbon goes on stream.
1987 Indian Rayon corporation renamed as Indian rayon and industries limited,
to reflect the diversified activities of the company.
1984 Indian rayon enters cement business.
1981 Jaya shree insulators second unit at Halol goes on stream.
1976 Jaya shree textiles and industries limited active in textiles an insulators, is
merge with Indian rayon corporation ltd.
1966 The Birla acquire Indian Rayon Corporation Ltd.
1963 Indian Rayon’s viscose filament yarn plant at veraval goes on stream.
1956 Indian rayon corporation Ltd. Is incorporation.
 FUTURE PLANS

 Development of special yarn

 Eco and energy auditing
 Improvement in intrinsic quality of yarn
 Developing new shades of spun yarn
 Development in the quality of existing range

ACHIEVEMENTS

 Rayon division has bagged “Gold trophy” for highest export from synthetic and
Rayon Textile export promotion council

 The “certificate of merit-2003” of national energy conversation of VFY

 “First price” of national energy conservation award-2003 for Chlor-Alkali sector both
from ministry of power, New Delhi

 The prestigious “greentech Environment Excellence Silver Award 2002-03” in Chlor-

Alkali sector for outstanding achievement in the field of environment from Greentech
foundation, New Delhi
 ORGANIZATION STRUCTURE

Executive
President

Administrat Personal &

Production Engineering Commercial
ion HRD
Department Department Department
Department Department

Viscose Maintenance Finance Raw Material Time Office

Spin bath Electrical Share Legal Welfare

Instrumentati Stores and

Spinning Octroi Labor Office
on Purchases

After Internal
Sales Personnel
Treatment Audit

Textile HRD

Chemical Estate

Research & Security

Development

Quality
Control
 INTRODUCTION

Production means creation of utility and entails the procurement and utilization of factors of
production, which includes manpower, material, buildings and equipments.

Production is fabrication of physical object though use of men, material and equipment.

“Production management deals with decision marketing related to production process

so that the resulting foods of service is produce according to specification in the
amounts and by schedule demanded and at minimum cost.”
- E.S.Buffa

Production must be operated in an economic and efficient manner because cost of production
is vital factor in facing market competition and in ensuring normal profit or return on
investment.

Input
Material Output
Labor Products
Capital Production Services
Energy process Information
Information Products of
Resources services
 PRODUCTION CAPACITY

Business-wise capacity
As on 31 March 2008 31 March 2009
Manufacturing capacity
Viscose filament yarn MTPA 16,400 16,400
Caustic soda MTPA 82,125 91,250
Insulators MTPA 38,800 38,800
Carbon black MTPA 2,30,000 2,30,000
Flax yarn Spindles 15,340 15,084
Worsted yarn Spindles 25,548 25,548
Wool combing Cards 6 7
Linen fabric Looms 107 106
Urea (Reassessed installed
MTPA 8,64,600 8,64,600
capacity)
 RAW MATERIAL

1.Wood Pulp

wood pulp are generally import from Canada name of pulp use is ‘Domsjo’. 100% which
is contains of cellulose.

2.Caustic Iye

Caustic iye is priduce in house in caustic plant of Indian Rayon

3.Carbon-di-sulphaid

4. Contituents (Spin Bath)

 PRODUCTION PROCESS

VISCOSE SECTION

The process is carried out in the following stages:

 Conversion of woo cellulose into alkali cellulose i.e. mixing of wood pulp with
NaOH
 Conversion of alkali cellulose into sodium cellulose xanthate.
 Conversion of sodium xanthate into viscose solution.

The process is carried out in the following steps.

 Steeping:

This is a process for mixing of pulp in Caustic Solution. Two distinct features of this process
are:
 Swelling of pulp fibers’ due to absorption of caustic for complete formation of Alkali
Cellulose.
The cellulose sheets are saturated with a solution of caustic soda or Sodium Hydroxide and
allowed to steep for enough time for the caustic solution to penetrate the cellulose and
convert some of it into “Soda Cellulose” the Sodium Salt of Cellulose. This is necessary to
facilitate controlled oxidation of the cellulose chains and ensuing reaction to form cellulose
Xanthenes.

 Pressing (Twin Roller Press):

Pressing is a continuous process from homogenizer slurry is pumped to press where it passes
between two perforated drums (roller). The excess caustic is removed by pressing and slurry
in the form of mat which contains 34% cells, 15-16% Alkali, 50% water and 0.50 to .55 %
carbonate is formed.

 Shredding:
It increase the surface area of Alkali Cellulose and ensures the rapid & uniform aging &
Xanthation. It contains three rollers rotating at different speed. Each roller is attached with
lingering wire which cuts the mat into small pieces. Form Shredder Alkali Cellulose is
carried to maturing drum.
  Maturing (Aging):
The main function of maturing drum is to decrease the degree of polymerization of Alkali
Cellulose by the effect of temperature and time (aging) to facilitate Xanthation. Alkali
Cellulose takes about 7-8 hour to pass form inlet to outlet of the maturing drum.

 Xanthation:
This is a main reaction, which is carried out during Viscose preparation. There are 5
Xanthomates equipped with agitator and are jacketed, through which cold water is circulated
to control the production temperature. Xanthation is carried out under vacuum. Xanthation
period is 60 min. Rate of Xanthation depends upon the water temperature circulating through
jacket. From Xanthation batch is dumped into dissolver.

 Dissolving:
In this stage the viscose is uniformed by eight dissolver vessels, which are equipped with
agitator, which makes viscose uniformed. The dissolving time is 3 hours. The dissolver
viscose, which is transferred to ripening room.

 Ripening: -
In ripening viscose is filtered though different filters. It is necessary process to remove the
impurities before sending the viscose solution to spinning section.

 Filtering:-
The viscose is filtered to remove undissolved materials that might disrupt the spinning
process or cause defects in the rayon filament.

 Degassing:-
Bubbles of air entrapped in the viscose must be removed prior to extrusion or they would
cause voids or weak spots, in the fine rayon filament.
SPIN BATH SECTION

Spin bath is quality section to spinning rayon yarn. Spin bath is an important constituent for
the viscose to be re-generated in to cellulose. The main composition of the spin bath solution
is sulphuric acid (H2SO4) and sodium hydroxide (NAOH), other composition is ZnSO4,
Na2SO4, temperature etc. which constitute the spin bath solution and the sodium sulphate
(Na2SO4) is receive as a by-product.

Sodium sulphate is a min by product, which is, requires 22 tones per day. This by product
Na2SO4 should be removed from spin bath solution and spin bath solution transferred to
spinning section by total six drums out of which two of them are in old spin bath dept. while
other four are in new spin bath dept.

Function of spin bath section:

• Free from defects

• Having sufficient lenth of yarn
• Having a form suitable for end use requirement

SPINNING SECTION

In this section viscose solution from viscose section is directly supplied through dye units to
spinning machine for bright and colored yarn. The merging pump drives fixed amount
viscose in one minute depending upon the capacity of the pump. Viscose temperature is
about 28 degree centigrade. Spin bath solution is also following with high speed from the
spin bath section at 56 degree centigrade to spinning section. Viscose coming from heat cons
in the contact with spin bath coagulation is viscose which taken place to from yarn of
particular denier.

Denier is a weight of 9000 meters of dry yarn grams. Its denier and filaments e.g. 225/40 that
means 225 denier with 40 filaments specify yarn. Jet is made of anti corrosive material
consisting of 70% Au. (Gold) 29% Pt (Platinum) and 0.5% Rh. The yarn coming out is
passed through a cup tube length 550 mm of 450 depending upon denier.
AFTER TREATMENT SECTION

Raw cake from spinning section is bought to A.T. section in raw cake trucks. Here the raw
cakes pass through 20 parts for 19 minutes each. In these 20 parts the different machines are
fixed in which the washing bleaching and drying are done by soft water. Various hydro
extracted chemicals etc. are used to remove impurities, dust and dirt. Afterwards the cakes
are dried room by the air.
This section three major Section

1.Wrapping section

A collection jacket is wrapped on cakes by wrapping machine for following purpose.

 To avoid disturbance in yarn during washing
 To identity the denier filament of cakes
 To avoid any external setting dust and other impurities.

2.Washing section

After loading the carries is put for washing the carries is moved on dual a rail which is
hanged on roof.

3.Drying section

To maintain the temperature inside the dryers hate exchanger are used for this atmosphere air
is sucked in through the tubes to meat the air. Then with the help of blowing fans air is
circulated in the dryer.

TEXTILE SECTION

The dry cakes are now dry for wining. The yarn is in the form of censor, and hank time
duration of coming depends upon the denier of yarn. The textile department places where the
manufacturing process of Rayon Yarn comes to an end. Although it comes under production
processes but its function is auxiliary and very important in nature.

Mainly three section in this department

 C.C.R (Cake Conditioning Room)

 Coining
 Reeling
PACKING SECTION

After wining the cones a hank, they are sent to the packing section where they are visually
check by the inspectors an grades are given as per their quality.

At present cones are packed in cardboard boxes. Then the cartoons, which are filled by
inspection side, helpers, are first bought to the weighing balance where the weight is balance
as per pre-determine standard. After that a computer packing slip is made having various
necessary details. On is paste on cartoon, second is kept inside the cartoon and third is kept
for record purpose. After that the cartoons are stepped with Polly propylene type. Finally
B.O.P.P. adhesive tape is applied at the joint of top flaps of cartoons. These fully packed and
sealed cartoons are sent to bonded stores room for sales department to be dispatch.

 Name of parts
 Date of packing
 Quality grade and weight.
 Registered trade mark of the company
 The color of cones and hanks
 Deniers
 PLANT LAYOUT

Plant layout refers to the development of an arrangement, which will permit the most
efficient flow of work for, the standpoint of distance and cost.

 The plant layout activity is one in which consideration is given to following things.

1. The arrangement of production an service departments in the plant

2. The arrangement of production facility with which the operator must work at a
particular work station in one theses department.

Selection of location

There was no regional advancement before the establishment of the factory. Veraval region
was very much backward in terms of industrial activities. People over here were also socially
as well economically backward. So the government decided to develop the area with the
establishment of the factory. For this the land cost guarantees an various other incentives like
smooth supplement of the water an electricity were also provided by the Govt. up to 1979.

From 1979 the company has established its own power plant and water supplement from
Govt. is still continued but the co. has to pay the water charges as per the Government rule.
 MATERIAL HANDLING

“Material handling is the art and the science involving the movement packing and
storing of substance in any form.”

Material handling can be defined as “Controlling the amount location movement and timing
of the various commodities used in and produced by the industrial enterprise.”

Company is totally using the automatic process for production, but at certain stage it uses
equipment for the shifting of raw material. The company uses trolley as an equipment for
material handling in its Viscose Section to brought up the woo pulp from the storage
department an in after treatment department to puts the cakes in washing an knitting. After
the last stage of the production, the final product is sent to the packing section with the help
of trolley.

 Many times Company uses.

 Conveyers.
 Rails.
 Cranes.
 Trucks.

 For the supply of raw material to various department.

The Diesel Power House of the Company uses conveyer belts for the supply of coal that is
imported from Bihar.

Whereas the other raw material like wood pulp sulphur etc. brought by land route i.e. rails
and truck to the factory.
 QUALITY CONTROL

“Quality is an asset which may be offered to the potential customer of a product or a

service.”

 It mainly depends upon two factors:

1. Product-Service Design
2. Operating System makes a product/provides a service

 Quality policy

 We are committed to:

 Meet customer’s expectation of quality and services in premium segment.

 Maintain high morale of employee.
 Use eco-friendly technology and maintain pollution free environment.

 Major function undertaken by Company

 Regular checking of set parameters.

 Checking individual
 Checking of abnormality in the process.
 Highlighting the variation from the set operation procedures/parameters.

 Technical sales:

 Regular market visits to meet consumers demand.

 Regular comparison of yarn quality and physical properties of other manufacturer
 Checking and suggestion to eliminate market complains.

 Improvement cell:

 Analysis of breakdown and stoppage of process

 Suggestion for improvement in existing operation system for better plant
control.
 To carry out study on specification problem/effect and to suggest their steps.
 To develop different shades/ product for sales promotion.
Company has received Occupation Health & Safety Assessment Series 18001-1999(OHSAS)
certificate and it is the first company to receive ISO 9002 certificate in Rayon industry in
Nation. It has also received 14001 Environment certificate.

 Inspection:

Company maintains very high standard of quality. Each and every cone/hank is subjected to
visual inspection in order to decide the quality to cone/hank. One operator is inspecting 1400
cones/shift and 1200 cones/ shifts of color yarn.

After inspection the operator is putting a gummed quality label on every cone. These cones
are being wrapped in transparency polythene sheets along with and ungummed quality label.
 PURCHASE DEPARTMENT

Purchasing function is the heart of any business and it is support to be cast goldmine to
profits.

“The task of purchasing is related to going to the open market, fining the desire
material at the lowest possible price and selecting the supplier to offer minimum prices
having required quality of material.”

Company believes

 Purchase the right quality of material.

 To purchase right quantity of material
 To make the material available at right time
 To purchase the material at right price.
 To purchase material from right source.

Purchase department:

Purchase dept. of Indian Rayon makes inquiry about the material from the suppliers and
collects quotation from the suppliers.
While pacing the purchase order Company considers the following factors.

 Old rate of the product

 Lowest bids
 Reputation of supplier
 Delivery period
 Payment terms
 Technical evolution
 After sales service
 Performance guarantee.

The above quotations are comparing on the basic of comparison chart that they prepare with
the help of all the information. The decision of purchase is one by the authority. The purchase
order is placed on the basis of feasibility. So, we can say that Company Applies Integrated
Material Management Concept.
Store Department

The Store Dept. of the Company receives the raw material, which was ordered from the
supplier. This dept. prepares Goods Receipt Note (GRN). One copy of GRN is sent to that
Dept. which has place and indent.

Particular Dept. approves the materials and sends requisition to store dept. and collect the
material. On the basis of GRN final invoice is paid account dept.
 PLANT MAINTENANCE

“Plant maintenance ensures that all production facilities are in serviceable condition at
required time, causing on production hold-up, interruption, or loss of individual
efficiency for operation.”

The objective of plant maintenance is to improve functional reliability of production facility

to grab opportunities.

Company follows World Calls Manufacturing Policy (WCM) of plant maintenance, which it
has adopted in the recent years. However formerly it was using Total Productive
Maintenance (TPM) of plant maintenance.
 WORLD CLASS MANUFACTURING

The economy is integrated to the global economy and industry is facing global competition.
It is therefore, necessary to improve performance so IR & IL co. adopt WCM model to
improve performance and fitting with global competition.

The following characteristics of WCM are used to fulfill the customer expectations.
(1) Products of high quality.
(2) Products at the right price.
(3) Product with the enhanced features.
(4) Product in a wide variety.
(5) Products delivered in time, in fact short time.
(6) Products delivered with shorter lead times.
(7) Flexibility in fulfilling the demand for the product.

The above listed performance measures are external to the manufacturing system but are vital
for the success of the organization. Indian Rayon Co. follows WCM excellence model for
competitive advantage as we seen in above diagram.

WCM POLICY followed by company

To maximize equipment effectiveness

Achieve zero breakdowns, zero defects, and zero accident and eco-friendly environment
through innovative methods with total involvement of our employees and b continuous up
gradation of technology. This will lead us to excellence and perfection in all spheres of
management, to be globally. Competitive and preferred choice of customers.
WCM Excellence Model for Competitive Advantage
 INTRODUCTION

Personnel management is a link between the top management and the workers or we can say
that its acts like bridge between the employees and the employers. It is basically concerned
with human relationship within the organization and helps in maintaining smooth relationship
employee and employees. It is the art of getting thing done by other people.

Human resource is the greatest asset of any business enterprise. The workers are the heart of
the organization. It is the manpower that operates the machines, processes the raw materials
into a finished product and makes it possible to sale in the market. Henceforth we can say
that personnel management is the most essential department of and organization in order to
have a proper manpower planning, organization, staffing, directing and controlling in order to
achieve individual social and organization goals.

With reference to Indian Rayon. The personnel department of which is divided into two
division i.e. HR & training and the other one is personnel department.

Personnel department:

It mainly deals in the process of recruitment of manpower and act as a consulting agent
between the officers and the workers.

HR &Training:

It deals with the staff members of and organization and is accountable to the vice president.
 MANPOWER PLANNING

“The process of determining manpower requirements and the means for meting those
requirements in order to carry out the integrate plan of the organization.”

Company uses ‘PURTA’ which is known as the system of control though budgets and
standards in modern cost accounting and management costing. ‘PURTA’ summaries the
objective of the whole organization. All the dept. that is need of additional requirement of
manpower has to contact the personnel dept. which makes the arrangement of the require
manpower. Every month the personnel dept. issues personnel requisition from the dept. and
this forecasts its manpower demand of each dept. accordingly the requirements are made.

In Company the workers and divided into three categories –Permanent, Badli and Temporary.

Importance of Manpower Planning

 Only people can spread knowledge resource arose the company.

 Individual knowledge is the staffing point for organizational knowledge.
 The executive sources of knowledge for organization and people.
 It is only people who can convert knowledge into efficient action.
 The knowledge of each individual can not be applicated.

Categories No of person
Permanent 2059
Badli 508
Staff 355
Management Employees 234
Total manpower 4205
 RECRUITMENT AND SELECTION

Recruitment:

“Recruitment is process to discover the sources of manpower to meet the requirement of the
staffing schedule and to employ effective measures for attracting that manpower in adequate
numbers to facilitate effective selection of and efficient working force.”

The recruiting procedure of Company consists of three segments.

 Recruitment of workers
 Recruitment of executives and managerial staff
 Recruitment of technical personnel

So far as Company is concerned the recruitment procedure is directly depend upon human
forces and is relate to the selection of well-qualified personnel’s.

Selection:

The selection procedure is concerned with security relevant information about an application.

Company recruitment and selection procedure for blue-collar force is as per the labor laws.
For the recruitment of labor in the Co. it is essential that he should acquire the certificate of
ITI examination.

The concern supervisor and the labor welfare officer select workers. Physical fitness. Attitude
for work etc. are considered at the time of selection. With reference to the method Company
uses the indirect method more frequently for the recruitment of its employees. Some times
the Company also uses the third Party Method at the time of the selection of high level
personnel like general manager secretary and vice president.
RECRUITMENT AND SELECTION PROCEDURE FOR WHITE
COLLAR FORCE.

White-collar job refers to the selection of officers and managers. For this purpose the
Company is largely depend upon the fresh candidate and for that the Co. is following the
formal selection procedure:

 Application receipt
 Employment test
 Group discussions
 Final interview
 Medical examination
 Reference checked
 Orientation

Induction:

Inaction is a technique by which a new employee is rehabilitating into the change

surrounding and introduces to the practices polities and purpose of the organization.

Company does not believe in induction because it believes that it is wastage of time and so it
does not give any importance to the induction.
 TRAINING AND DEVELOPMENT

Training:

“Training is an important aspect of personnel which increases the knowledge and skill
of a worker for doing a specific job.”

Training for the workers:

The HR department of the Company prepares schedule for training of the workers in order to
make the familiar with their task and to develop the job. The main purpose of the company
behind imparting training is to make the workers well converse with the new technology.

Training need identification

The training needs are identified through the annual performance appraisal system. Both the
staff himself and his department head identifies the training need and mentioned the same in
the annual performance appraisal from the employees.

The need identification above is compiled and annual training calendar prepared by HR
Department. Further the corporate HR also suggest that the unit HR organize some specific
training programs based on the needs felt by the corporate HR.

Training for clerk and technical staff

The Company is not imparting any training courses as far as clerical staff is concerned. But
the supervisors are trained for:

 Gaining knowledge to responsibility

 Cost control and cost effectiveness
 Knowledge of all disciplinary action
 Development of leadership quality.

 The other purpose of Company behind imparting training is:

 To create awareness among the workers regarding the quality of products and to improve
knowledge thereby.

 Enhancement of technical knowledge and various safety measurement techniques.

 To improve the discipline of the worker, good conduct and job responsibility.
Evaluation of Training Effectiveness

Feedback from are filled by employees after every training program to rate the effectiveness
of the training program on the following criteria

 Duration of the program

 Course content
 Overall effectiveness of the program
 Effectiveness of the faculty
 Physical arrangement of the program

Executive development

Company aims at improving the managerial skills and effectiveness of its every individual
through a planned and deliberate profile and process of learning.

Company adopted the concepts the concepts of Birla Management Center, which aims at
giving new ideas and innovation. The target BMC Center is excellence for everyone. The
management of the Company pays a huge amount to the trainer for imparting training
performs in the organization.
 JOB DESCRIPTION

The job description is nothing but it is the written form of job analysis like what to do?
Where to do? What is the main responsibility? To whom job is responsible? Etc.

In other words job description means to give the information and guidance to candidate about
his particular job for which he has been selected it is a process of giving information to
candidate about his status duties responsibility etc.

Indian Rayon the duties and responsibilities of administrative department are collected
through job description is as under.

 Observation of employees at the time of work.

 Discussion with departmental heads and outside experts.

This job description process is for employees, which are at middle as well as personnel
executives.

Managerial level

In this unit when a managerial level person is selected following are the information given to
them.

 Nature of job.
 Duties and responsibilities
 Job summary
 Position and status.
 Working condition
 PERFORMANCE APPRAISAL

It is the process of evaluating the performance and qualifications of the employee in term of
the requirement of the job, for which he is employed.

The main aim of the evaluation system is to identify the performance gap. This gap is the
shortfall that occurs when performance does not meet the standard set by the organization as
acceptable.

Company the management is using three years of service period is studying performance
appraisal system. When a new candidate is recruited, the management examines his
performance for two years that is called as the apprentice period.

In this co. normally three years of service period is considered to be qualified period for
getting promotion. At the meanwhile of these three years the performance of the employee is
continuously observed and is taken into account while giving promotion. During this period
the management prepares the confidential report of the performance and behavior of the
candidate.

The performance appraisal system adopted by Company is traditional one. It conducts the
performance appraisal program in the month of May every year and all the employees are
divided into two categories i.e. staff members and operating workers.

MOTIVATION

“The emphasis industrial psychology has shifted from the studies of the isolated
individual and physical environment to the consideration of motivation & morale.”
- I.A.C. BROWE

Indian Rayon motivates staff by performance appraisal. Every staff member recognizes his
work and he always tries to do better work & effective work if his work is recognized.

Indian Rayon motivates staff by performance appraisal. For e.g. their regular work, honesty
can also such things are being kept in mind.
 PROMOTION AND TRANSFER

Promotion:

“A promotion and the transfer of an employee to a job which pays more money or one
that carries so preferred status.”

Company has sound personnel policy. The policy is a blend of seniority and merit
consideration stressing more emphasis on seniority. And employee is promoted considering
his ability to deal with problems occurs among the subordinates and seniors as well as level
of proficiency, loyalty, etc.

Promotion is given after every 3 or 4 years on the basis of disciplinary action and by
performance appraisal system.

Employees are promoted within the organization in term of vacancies of creation of new
post. Company adopts to take the advance of the employees, one very well aware of
companies policy and production procedures in term to motivate them.

Transfer:

“A lateral shift causing movement of individuals from one position to another usually
without involving any marked change in duties, responsibilities skills needed or
compensation.”

Company runs various units located at different places within the country, yet under this unit
transfer practice is not following. Sometimes some workers are transferred from on
department to another because of physical fitness problem.
 WAGE AND SALARY ADMINISTRATION

“Wage and salary administration” refers to the establishment and implementation of sound
policies and practices of employee compensation.

WAGE ADMINISTRATION OF Company

It includes wages of operation manpower. Time office prepares wage sheets and payment is
done on the basis of time Rate. In case of late comers, the part of the amount form their
wages are deducted. Payment of wages to the workers is done dept. Wise and the period of
payment is normally between 4th and 10th of every month.

SALARY ADMINISTRATION OF Company

Salary administration involves salary of administration staff and electrical personnel. Salary
sheets are prepared in account office and payment is done on the basis of time rate and net
attendance.

Besides salary the Co. also provide various other incentives to its employees. Increments are
given every three-year. Company has graded its employees according to their job level. There
are total 11-grade level as per the rationalization, career path and qualification of the
employees. It provides the car, housing medical and other facilities as per the grade level of
the employee.
 TIME KEEPING SYSTEM

Indian Rayon has adopted a very good time keeping system. The unit has installed
computerized time keeping system. In the system all the employees including staff members
and workers have been issued punch cards. There are seven punching machines that have
been fixed and connected with computer. Out of this, six are at the main gate and one is at
HR Dept. when the employee enters in the premises he has to punch this card in any machine
and has to do the same thing at the time of exit also.

Time office dept. of the Co. keeps the attendance register. Many workers have been given
attendance sleep also. In this system the workers are supposed to fill there sleep at the time of
entry as well as exit. The registrar collects the data through computer and their salary and
wages are prepare according to this collected data.

The workers are allowed to enter into the premises late up to half and hour from the time of
which their duty starts, while there is no any hard and fast rile exist for the staff member of
the Co.

There are four shifts in Company

General shift 08:30 am to 05:30 pm

Shift A 06:45 am to 02:45 pm
Shift B 02:45 pm to 10:45 pm
Shift C 10:45 pm to 06:45 am
Lunch Break 12:30 pm to 01:30 pm

Each and every employee’s working hours are fixed i.e. eight hours. The employees are
given leave as per the company’s rule. The overtime payment rate is double than usual
payment rated.
 TRADE UNION

“A trade union is any combination of persons whether temporary or permanent,

primarily for the purpose of regulation the relations betweens workers and employers,
or between workers and workers, and for imposing restrictive conditions on conduct of
any trade or business, and includes the federation of two or more trade union”
- According to Sec 2(b) of the Trade Union Act of 1926

In Company there are more than 4000 employees in the organization and for the state of the
protection of their rights that have formed their trade union. Presently there are three trade
unions.

1) Indian Rayon Employee Union (IREU)

2) Indian Rayon Karmachari Mandal (IRKM)
This is associated with the Hind Mazdoor Sabha Karmachari Mandal.
3) Rayon Mazdoor Sangh (RMS)
This is associated with Bhartiya Mazdoor Sangh

Not only the workers are the members of trade union but the staff employees have also got
the membership of trade union. The strength of IREU is about 60% is of total working force,
the rest of two uses to follow the decision and negotiations made by the IREU.

The advantage of registered trade union is that police can’t arrest any representative of trade
union. Henceforth company has been keeping a good relation with trade union.
 INDUSTRIAL RELATION

It refers to a dynamic and developing concept witch is not limited to “the complex of
relations between trade union and management but also refers to the general web of
relationship. Normally obtained between and employees –a web much more complex than
the simple concept of labor-capital conflict.”

As it is useful for the organization, the Indian Rayon has also developed good and
appreciable industrial relation.

There exist thee Trade Union all over the unit that are:
1. Indian Rayon Employee Union
2. Rayon Mazdoor Sangh
3. Indian Rayon Karmachari Mandal

The last major strike in this unit was in 2001 after that no strike has been occurred till now.
This strike was settled down by the Memorandum of Settlement, which was made by the Co.
along with the Labor Union. The strike was basically in reference to the wage payment of the
worker and bonus.
 EMPLOYEE SERVICES

Uniform & other facility:

Indian Rayon provides uniform to its workers of the company. In this each employee gets
a 10 meter cloth with stitching allowances in the very first month of the year. The
company distributes sweater to its workers in the viscose department. The company pays
Rs.200 to each employees of the company to purchase their shoes.

Recreation & Entertainment facility:

The company has its own big auditorium in which it arranges picture for entertainment of
its employees. It charges cheap rates. It also provides many types of sports facility.

Independence day celebration:

The company celebrates the independence day every year. On this day the programmed
of national flag hosting is followed by sweet distribution.

Republic day:

The company also celebrates the republic day with arranging many sports activities &
other programs.

Death relief fund:

In case of death of any employee while working in any company provides his family with
Rs.4000 as general expenses and company also deducts Rs. 10 of all the employees of the
company and collects about Rs. 5000 and provides to their family.

Library:

Indian Rayon has a small but very useful library in company. It also gives the facility of
internet to its employee and Mr. J. V. Dave very well runs it.

Quarter facility:

The Indian Rayon is having quarter with 2 rooms, kitchen for administration and
executive officer as a normal payment of Rs. 100. staff pays Rs.70. bachelor equipped
with canteen, mess and common room.
Credit co- operative society:

Members are given loan facility up to an amount of Rs.20000 at a nominal interest. This
is managed by co-operative society.

School facility:

Both science & commerce up to 12th std. affiliated with Gujarat board. Approximate
number of students every year is 2000. 40-50% of the students are employees’ children.

Medical facility:

Company has its own dispensary in factory. Also in this dispensary workers are treated
up on free of charge. Company has its own doctors for this dispensary.

Milk & dairy facility:

Indian Rayon provides milk to the workers working in chemical & spinning department.
The milk is purchased from Junagadh dairy.
 WORKING OF ESI SYSTEM

ESI means employee state insurance scheme. It is necessary in all then company according
to 1948 act, an insurance facility provided to the workers. The deduction of salaries of
worker is made every month by the company.

If any accident occurs on the job to the worker this reserved money is given him from the
insurance. If any kind of illness is there this money is used by the company. The worker
can get salary without work up to 2 months according to scheme.

But, ESI scheme is not applicable for this unit, instead of it (Indian Rayon) has insured all
of its employees under oriental insurance company and it has own dispensary.
 PROVIDEND FUND SCHEME

Indian Rayon manages PF scheme for the employees who are receiving salary about Rs.
1600 per month and remaining employees are covered carried on by the government rules
framed.

An employee who becomes a member of PF scheme must be permanent employee. He has

to contribute his 12% of salary towards PF every month out of this family pension fund,
administration charge and PF is paid. In 12% PF scheme, there is 8.33% pension & 3.67%
PF are including into the scheme.

Every year the employees are handle the slip showing amount of PF. An employee also
gets loan from PF in case of marriage, sickness, house loan etc.
 COMPANY SOCIAL RESPONSIBILITY

The company is conscious of its social responsibilities and is carrying them very well.

Company performs its responsibility towards society by extensive rural development

activities. The company has set up a separate trust for this purpose namely “Janseva
trust”. This trust has launched rural uplifting activities in the rural areas near the
Veraval city. This trust gives training to the farmers to use the modern inputs in
farming. This trust also provides the assistance to these farmers to purchase those
inputs. The programs of adult education, family planning, women welfare activities,
mass tree plantation and assistance for self employment are also being taken by this
trust regularly.

Activity under CSR

 Conducted 250 medical camps at which over 60,000 villagers were medically
examined and those who were afflicted treated for their ailments.

 3,100 villagers were checked for their eye sight of which 200 senior citizens were
provided with intra ocular lens.

 80 patients diagnosed with tuberculosis were treated and cured.

 In collaboration with the Indian Red Cross Society, blood donation camps were
organized at the various plants.

 AIDS awareness camps built greater awareness amongst 6,000 students.

Homeopathy centres at Rishra and Barasat served over 3,630 members of the
underserved communities.

 An Allopathic Health Care Centre at Barasat catered to 1,962 patients while the health
care centre at Gummidipoondi benefited 15,300 persons.

 Mother and Child Care

 Merit Scholarships earned by 105 students.

 The Ankur Vidyalaya at Rishra provides adult education apart from basic learning to
children. Over 240 beneficiaries have enrolled at the school.

 Support to Kamakhya Balak Ashram which shelters 42 orphan children and runs a
school for 650 students.

 Infrastructural aid to schools continues.

 Tailoring Training Centres specially catering to widows, single mothers, physically
challenged, scheduled castes and other women from the weaker sections of the
society, have enabled over 200 women eke alivelihood for themselves.

 Many of them have also been provided sewing machines at subsidized rates.

 A rural road of 9 kms has been built and connected to the main road to facilitate the
journey of villagers, by your Company’s Hi-Tech Carbon Plant.

 Low cost toilets have been constructed.

 Safe drinking water provisions have been made for over 2 villages.
 INTRODUCTION

Marketing deals with identifying and meeting human and social needs. One of the shortest
definition or marketing is “meeting needs profitable”

“A market may be considered as a convenient meeting place buyers and sellers gather
together for exchange of goods and services.”

Marketing is a process by which individuals and group obtain what they need and want by
creating and exchanging products and value with others.

Marketing is typically seen as the task of creating, promoting and delivering goods and
services to consumers and businesses. Marketing people are involve in marketing ten types of
entities’ goods, services, experiences events, persons, places, properties, organizations,
information, ideas.

Marketing has often been described as “The Art of Selling Product.”

Customer is not God,

customer is King,
God forgives, King
Doesn’t

The company has a very efficient and excellent marketing department, which tries to provide
maximum satisfaction to the customer while having reasonable. Profits on the other hand.
 OBJECTIVES OF MARKETING

The following are objectives of Rayon Industries Ltd.

 To find new and new customers to sell them more & more of companies product.
 Try to make better and quality product.
 To provide a successful distribution of customer products.
 To study the market problem according to the circumstances and suggest the
solutions.
 To sell their products in new areas to make new customers and satisfied old ones.
 To encourage the customers and know the fault in their products and then try to
make quality or faultless products.
 PRODUCT PLANNING AND DEVELOPMENT

“Product planning determines the characteristics of the product best meeting the
consumers numerous desires, characteristics that a stability, to products and
incorporate this characteristics into the finished products.”

Product planning involves three important considerations:

1. The development and introduction of product
2. The modification of the existing products
3. The elimination of unprofitable products.

Company plans its product design according to the demand of the client’s market situation,
and price of the product of its competitors.
 PRODUCT MIX

Product mix, which is called as product assortment, is the set of all product & items that a
particular seller offers for sale. A Company’s product mix has certain width, length, depth &
consistency.

Company‘s product is VFY but along with it the Co. also manufactures some chemicals and
by-products, which are require for the production of Yarn and the excess of this product is
sold out in the market. Not only that, Company is manufacturing the Yarn, which is of
different colors and different quality- denier wise as per the requirement of the client.

Company main product VFY has certain length in terms of:

 Color yarn
 Dull yarn
 Spunned yarn

And it has depth in terms of :

 Quality
 Denier

Company width includes various other chemicals and by product:

 Caustic soda
 Sulphuric acid
 NA2SO4
 NEW PRODUCT DEVLOPMENT

New product development shapes the company’s future. Given the rapid changes in taster.
Technology and competition a company can’t rely solely on its existing products.

Companies that, fails to develop new products are putting themselves at great risk. Company
can a new products though acquisition and development.

Indian Rayon has made efforts in technology absorption and in specific areas that brings:

 Development in its rayon division, i.e.

 Developing new shades of spun yarn

 Enhancement of sodium sulphate recovery
 Development of new product, i.e. flat yarn

 Development in textile division

 BRAND

The American marketing association defines brand is :

“A name, term, sigh, symbol or design or a combination of them, intends to identify the
goods or services of one seller or group of sellers and to differentiate them from those of
competitors.” Thus brand identifies the sellers of makers.

With six of the foremost name in the apparels business into its fold, Indian Rayon is today
the largest branded apparel Company in the country. The portfolio includes leading
brand names like Louis Phillipe, San Frisco, Van Heusen, Allen Solley, Peter England, and
Byford together making Indian Rayon the Undisputed Market Leader for branded men’s
wear.
 MARKETING RESEARCH

“To manage a business well is to manage its future; and to manage the future is to
manage information.”

Marketing Research specifies the information needed to address marketing issues, designs the
methods for collecting information, manages and implements the data – collections process,
analysis the results, and communicates the finings and their implications.

Companies in its initial stages were using the service of professional persons and sponsor
trade delegation for the purpose of market research. But thereafter from 1988, they installed
their own quality control department of market research. The company is also sending its
higher-level executives to the foreign countries for the purpose of survey and market
research.

The form of marketing research adopted by the company is continuous research. It has also
adopted survey method.

Company has its own research and development department which undertakes market survey
and functions as per the trend of the market. This department enables the co. to carry out the
productions of yarn and various chemicals as per the demand of the customer and market
condition.
 MARKET SEGMENTATION

In market segment there are three elements, which mostly used.

Mass marketing: - one product

Product marketing: - 2 or more products
Target marketing: - different product

Segmentation means to sub division of entire market, each segment is consisting of group of
buyer who have identicate of similar unmeet wants and needs.

Generally market segmentation is a process of dividing total market into various sub markets
according to the characteristics of consumer.

Indian Rayon use “People oriented approach” method for market segmentation. Here, they
classify the consumer on the basis of location, income, geographical etc.

Indian Rayon has its branches at Ahmedabad Delhi, Bombay, Amritsar, Surat, Banglore,
Madras and its head office is at Bombay, which take decision about all products. So this
company has segment the total market on the basis of product application consumer industry
wise. Different manufacturing company consumed yarns. Every industry creates specific type
of demand for organization industry needs yarn of very fine quality and demand of handloom
industry is different.

Indian Rayon marketing office is at Bombay. The co. has many type of segment. They are
selling his product yarn in Indian as well as they are exporting is various countries.

Locations in Countries:

 Surat
 Ahmedabad
 Bombay
 Banglore
 Calcutta
 Delhi
 Varanasi
 Amritsar
 Veraval
Location in abroad

 Korea
 Bangladesh
 Saudi Arabia
 Italy
 Africa

Indian Rayon has much interest in market segmentation and get following advantages from
it.

 The company determines the needs of consumer of industries so industry get easily
product.
 The demand is increase when products are meet smoothly to the industry.
 Competition make over.
 INTERNATIONAL MARKET

A market defined by demands. It is demand which creates the supply. International market
deals essentially with the trade pattern among of the various countries in the world. It also
considers the trade policies and trade practicing of various countries as these govern the
buyer-seller relationship in the international market.

The company Indian Rayon exports 2.6% of the annual production to the various countries
through its main offices in abroad companies being well diversified. The Birla management
group and in company in most of the countries have its own offices. The company IRIL
exports the product of Rayon yarn in Morocco, U.K., U.S.A., Turkey, Vietnam, Korea, Saudi
Arabia, Spin, Philippines, Italy and South Africa.

The company also import the raw material required for Rayon yarn like pulps from South
Africa and Canada.
 PRICING

Pricing is a key factor, which remarkably effects the sales operations. Price may be define as,
“The value of the product attributes expressed in monetary terms which a consumer
pay of is expected to pay in change and anticipation of the expected of offered utility.”

 The firm has to consider any factors in setting its pricing policy.

 Pricing objective
 Determining demand
 Estimating cost
 Analyzing competitors prices and offers
 Pricing method
 Selecting final price

Price is the only element in the marketing –mix that produces revenue.
Company has not adopted any clear pricing policy but it follows the mixture of following
pricing strategy.

Competition oriented pricing policy:-

Under this policy all the manufacturers meet together at Mumbai and they fix maximum price
level by negotiating with each other. Sometimes the Co. also uses the prestige pricing method
because it is believe that the product with higher quality can attract the customer with the
higher process.

Demand oriented pricing policy:-

Under this policy the company uses the method of pricing at market. This helps to avoid the
price competition and price war in the market.

Cost oriented pricing policy:-

Under this policy the company uses the method of target pricing. It fixes a target return of
total cost. It uses break-even analysis for deciding cost plus pricing which helps it in
determining the level of output.
 PROMOTIONAL TOOLS

“Promotion consists of those activities that are designed to being a company’s goods or
services to the favorable attention of customer.”

Every company is inevitably cast into the role of communicator and promoter.

Sales Promotion

Companies use sales-promotion tools to create a stronger and quicker response.

There is a separate organization, which jointly made efforts for sales promotion and this
organization is followed by Company. This organization is known as “The Silk and Rayon
Textile Export Promotion Council.”

The head office of Company does all the activities of the sales promotion. It promotes its
sales via dealers i.e. the product is sale thought middleman.

Following tools have been use in this method;

 Buying allowance discount

 Display allowance
 Dealers contest
 Concession on the net sales
 Free gift.
 ADVERTISING

“Any paid form of non personal communication of Ideas, goods of services by business
firm identified in the advertising message intends to lead to sale immediately of
eventually.”

 Advertising is basically used for:

 Creating or enhancing goodwill

 Preparing ground for new product
 Creation of demand
 Facing the competition

Company is very sound company producing industrial product. Major factories producing
rayon yarn in India are under one management i.e. the Birla Group. The Aditya Birla Group
has covered near about 75% of the yarn market. Thus there is no question of advertising.

Rayon yarn is use as a raw material in textiles industries that are not affected by any media of
advertisement and that is the reason why the company is not advertising its product.

The company publishes magazines, which depicts various facts and figures of companies
manufacturing process, EXIM policy, pricing policy, strategies, etc. In short, the company
adopts the direct advertising method.
 CHANNEL OF DISTRIBUTION

“The middleman is not a hire link in a chain forgets by a manufacturer, but rather and
independent market, the focus of a large group of customers for whom he buys.”
- Phillip Meyey

Company has adopted its own sales branches and sales offices in context of its channel 0f
distribution. The company has selected the distributed channel keeping in view the demand
of the customer and the current market trend.

In Company the main product is Rayon Yarn so, this unit utilizes level and one level of
channel of distribution. They are conducting the sales activity with the help of agents dealers,
sub dealers etc. in different cities and different state.

Company sales marketing office is at Mumbai, which performs the function of selling the
product of the company. The marketing office collects all the orders from the twelve different
sales branches. All the sales branches of Company maintain the facilities like storage, after
sales service etc.

Company also produces chemical along with the yarn like sodium, Sulphate, sulphuric acid,
and carbon-di-sulphate are distributed though dealers and selling agent.

CHANNLE OF DISTRIBUTION:

Company Sales officers Customers

 CUSTOMER SUPPORT SERVICES

Sustainable
Relations

Periodic Providing
Customer Techno –
Meet. Commercial
Supports

Plant Visit
Building Major
Personal Buyers
OTIF & Effective
Rapport communication

Periodic
Customer Imparting good
Satisfaction practices of
Survey WCM/TPM
Effective
Partnership
Distribution,
Marketing
logistic
Network

Reduced Customers Complaints

Response Time – Within 48 hrs.
 COMPETITORS

To be successful, the company must to a better job than its competitors of satisfying target
consumers. This, marketing strategies must be adapted to the needs of consumers and also to
the strategies of competitors. Base on its size and industry position the company must find
the strategy that gives it the strongest possible competitive advantages.

The Company enjoys the monopoly in the market because if its total market of Rayon yarn
industry. The Indian rayon covers almost 25% of the market and the Aditya Birla Group have
also other two unit of rayon yarn so altogether three units covers the 75% units of the total
market.

Competitors of Company are.

 Century rayon
 National rayon
 Baroda rayon
 South Indian viscose
 Kesavram rayon
 Shriram rayon
 INTRODUCTION

Financial management is the managerial activity which is concerned with the planning and
controlling of the firms of the financial resources.

Finance management is concern with the efficient use of an important economic

resource, namely capital fund.
- Solomon

Taking a commercial business as the most common organizational structure, the key
objectives of financial management would be to.

 Create wealth for the business

 Generate cash, and
 Provide and adequate return on investment bearing in mind the risks that the business
is talking and the resources invested.

There are three key elements to the process of financial management.

Financial planning

Management needs to ensure that enough funding is available at the right time to meet the
needs of the business. In the short term, funding may be needed to invest in equipment and
stock, pay employee.

In the medium and long term, Funding may be require for significant additions to the
productive capacity of the business or to make acquisition.

Financial control

Financial control is a critically important activity to help the business ensure that the business
is meeting its objectives.

Financial decision-making

A key financing decision is whether profits earned by the business should be retained rather
than distributed to shareholders via dividends. If dividends are too high, the business may be
starved of funding to funding to reinvest in growing revenues and profits further.
 CAPITAL STRUCTURE

Capital structure may be defined as the combination of debt and equity that leads to
maximum value of firm.

Capital structure refers to the mix of long-term sources of funds and such as debenture, long-
term debit, preference share capital and equity share capital including reserves and surplus.
The company should plan an optimum capital structure.

(Rs. In Crores)

Particular 2008-09 2007-08

Share capital 95.00 95.00
Reserves & surplus 5396.50 3510.50
Preference share Capital 25.5 50.00
Secured Loans 5033.10 4463.5
Unsecured Loans 3860.90 2184.40

Share capital of Indian Rayon remains same but the secured loans granted by Indian Rayon
have increased compared to previous year and its reserve & surplus also increased.
 FIXED ASSET

As the name suggest, such assets are acquired to be retaining in business on long term basis
to produce goods and services and are not for resale.

Indian Rayon has maintained proper records showing full particulars, including quantitative
details and situation of fixed assets. The management during the year has not physically
verified all the fixed assets but there is regular program of verification, which is reasonable,
having regard to the size of the company and the nature of its assets. No discrepancies were
noticed on such verification.

During the year company has not disposed off substantial part of its fixed assets.
 CAPITAL BUDGETING

The system of Capital Budgeting is employee to evaluate expenditure decision, which

involve current outlays but are likely to product benefits over a period of time longer then
one year.

These benefits may be either in the form of increased revenue or decreased cost.

 There is various method of Capital Budgeting

 Internal rate of return

 Average rate of return
 Profitability index
 Pay back period
 Net present value

Company undertakes Capital Budgeting every year with the help of financial experts of
financial dept on basis of pay back period methodology.

The Co. always aims at increasing and expanding the installed capacity of Rayon Yarn
production. It constantly tries for its success. At present the installed capacity of plant is
15000 tons/annum.

At present the main objective of Company is replacement and modernization of machine and
fixed assets and business expansion by adding new machineries and technology. The unit
base takes this decision on pay back period.
 WORKING CAPITAL

Working capital is concerned with management of current asset. It is and important and
integral part of financial management as short-term survival is prerequisite for long-term
success.
The divisional management of Company manages the working capital within the broad
framework laid by and with consolation of corporation finance division. Decision regarding
its utilization of the current assets is made in accordance with the policy of company.
The operating cycle can be said to be at the heart of the need for working capital.

Receivable

Cash

Inventory

Net Working Capital = Current Assets – Current liabilities

Year Rs. (in Crore)

2008-09 = 5640.10 – 2907.90
= 2732.20
2007-08 = 4695.70 – 2293.10
= 2402.60

The assessment of the working capital in the Company is done by the CFD with the
consultation with the management staff of the Co. and on the basis of the Co. previous year
experience. This helps to maintain efficiently fund for operation of the organization.
 INVENTORY MANAGEMENT

The assessment of the working capital in the Company is done by the CFD with the
consultation with the management staff of the Co. and on the basis of the Co. previous year
experience. This helps to maintain efficiently fund for operation of the organization.

“Inventory refers to the stockpile of the product a firm is offering for sale and the
components that make up the product.”

The Company is the manufacturing organization, so being manufacturing organization it

needs a large among of the inventories for the soothing of business operation. The Co. invests
nearly 48 to 50 percent of total current assets in the inventories.

In the Company the inventory is maintain by finding the actual requirement and the analyzing
material, which is scared or not easily meet at the proper time. Then after the Co. decides the
optimum level for each inventory based on the requirement. But because Co. has a good
image to the supplier, it maintains the three days stock inventories for most of the goods even
though the industry standard is seen days.

In Company there is a special storage dept. and separate inventory management force, which
perform certain function for efficient management of inventories in the company. It
maintains sufficient stock of raw materials in period of short supply and anticipates price
change. It helps sales dept. by maintaining sufficient finished goods inventories for soothe
sales operation.

The company is maintaining proper records of inventory. No material discrepancies have

been noticed on physical verification of stocks as compared to book records.
 CASH MANAGEMENT

Generally any organization holds the cash for transaction motive, precaution motive,
speculative motive, and compensating motive.

The Company holds the cash only for the transaction motive. It holds the cash for soothing
the day-to-day operation only. If there is surplus of cash in the Co. it is transferred to the
CFD while if there is deficit of the cash in the organization, it borrows it from the CFD and
also decision regarding the investment of cash in to marketable security is done through the
CFD only.

Cash collection

Company operation in various geographical area of the country. It tries to speed up the cash
collection by decentralization with the help of ten ash collection centers all over the India.

Cash disbursements

The disbursement is one through centralized system by the organization. The payment of the
bill will be made from the central account and from the head office. So the Co. can enjoy the
transit time delay using the factories.

Optimum cash balance

The Company keeps a maximum level of cash balance worth and average payment for three
days. If cash is more than its maximum level than the cash if transferred to the CFD and if
cash is less than the requirement at that time cash is borrowed from the CFD. Company
manages its in a manner that enables the firm to remain in liquidity position at its best.
 MANAGEMENT OF RECEIVABLE

The management of receivable is basically concerned with the old customers and wining the
new ones by collecting a regulating the cost management of receivables also known as trade
receivables or customers or debtors receivables.

It means when firm make ordinary sales on credit and payment has not been received yet.
Such management of receivables IRIL grants the credit term to its customers for 15 days.
However, in exceptional cases it is increased to certain extent. The purchaser sends bank
drafts on expiry of credit period.

The receivables arise out of three features:

 It involves an element of risk, which should be carefully analyzes

 It is based on economic value.
 It implies future management of receivable.

Management of receivables concerned with retaining the old customers and wining new by
controlling and regulating the costs. Indian Rayon grants the credit form to its customers for
15 days.
 DIVIDEND DISTRIBUTION

Dividend refers to that portion of a fir’s net earnings, which are paid out to the shareholders.
A major decision of financial management is the dividend decision in the sense that the fir
has to choose between distributing the profits to the shareholders and ploughing them back
into the business.

Dividend distribution:-

50
45
40
35
30 DIVIDEND
25
PER SHARE
PAYOUT
20 RATIO
15
10
5
0
2007- 2006- 2005- 2004- 2003- 2002- 2001- 2000- 1999- 1998-
08 07 06 05 04 03 02 01 00 99
CASH FLOW STATEMENT
PROFIT & LOSS A/C.
BALANCE SHEET
 SWOT ANALYSIS

The overall evaluation of division like strength, weakness, opportunity and threats is called
SWOT Analysis.

STRENGTH:

 Yarn produce here is of high quality then also management always try’s to
increase the quality of yarn in order to fulfill their potential customer and new
ones. Total produced items wasted are being sold; this shows the efficiency of
sales activity.
 Better pacing, carriage and transportation system with all modern equipment
and good after sales service.
 Regular meeting and seminars are conducted in the entire department in order
to find our loopholes and solve the same.
 Division also have continuous spinning yarn department in which the modem
technology is used for the spinning the yarn and its is adopted from Germany.
 Divisions have domestic as well as export market and for this they are doing
the Internet marketing in order to find new markets.
 Division has WCM (World Class Manufacturing) cell in which they look out
for better way of manufacturing.
 ISO 9002 for the better quality of the production carries division.
 Division is certified by ISO 14001 for the good environment management
system, for their division has hoti-culture department in order to look to the
surrounding environment.
 Honored by Safety Award.

WEAKNESS:

 Cost of production is more due to existence of very old technology installed in

this division.
 Many process steps and process is more sensitive to normal process variations
 Division is unable to pay more attention toward proper human resource
management.
 Location away from consuming centers.
 Bigger process cycle/ higher process stock.
OPPORTUNITY

 Division should find new market area for its products specially chemicals
 More research activity should be done, as there is chance of finding new
markets.
 VFY use for certain textile items is specific and indispensable.
 Quality has more weight age in international market. Indian Rayon Pot
Spinning Yarn is next to Asahi Japan and better than Chinese and Russian
Yarn used in international market.
 Biggest opportunity, when opening up of global market when MFA expires in
2005. Quota restriction will go which will boost the export of Yarn directly
and though Textile in World’s two biggest market Europe and US.

THREATS

 Government policies are the main hurdles of the division’s performance.

 Emergence of cotton threads made the market share of Rayon Yarn low.
 Fashion changes are also basic threats for such division.
 The Viscose Process is highly polluting. The basic raw material (pulp) is again
pollution prone.
 CONCLUSION

After going through the training program, functioning of the organization which I observed
from that it can be concluded that Indian Rayon is the large scale manufacturing
organization and successful player in the VFY and chemical products. The company has the
strong financial structure and has a very good reputation in the market.

In the backdrop of various initiatives taken and strong performance during the year, Indian
Rayon is on the path of superior performance. The company has strategically moved into
various growth businesses and these are backed by traditional business that generates strong
cash flows to drive the growth.

As concerned with the personnel Dept. it is well organize. If there are certain problems than
they are solve by mutual understanding between the personnel and the management.
Manpower Planning and human assets are well organized.

The company is also doing its business with the Global Market. In India, the share of Indian
Rayon and the total export of the VFY are highest.
 BIBLIOGRAPHY

Books

 B.Mahadevan: “Operation Management”, 3rd Edition 2008, Pearson Publication.

 K. Aswathappa: “Human Resource and Personnel Management”, 4th Edition, Tata

Mc Graw Hill Publishing Company Ltd.

 Pandey I.M., “Financial management”, Ninth Edition, Vikas publishing house private
limited. New Delhi.

 V.K.Saxena & C.D.Vashist: Essential of Financial Management, 1st Edition 2008,

Sultan Chand And Sons.

 Philip Kotler: “Marketing Management”, the Millennium Edition, Prentice Hall of

India Pvt. Ltd.

Magazine
 Aditya Kiran Birla Group Publication
 The Accounting World - July 2009 Issue Cygnus Busi.Consulting & Research Pvt.
Ltd.
 Business Strategy – June 2009 Issue ICFAI University Press

Annual Report of Aditya Birala Nuvo Ltd. 2008-09

Websites
 www.indianrayon.com
 www.adityabirlanuvo.com