Aditya birla project by gaurav Parmar

INDEX Sr no. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Particulars Introduction Organization chart Financing planning Capital structure Capitalization Capital budgeting Management of fixed assets Management of working capital Management of inventory Management of receivables Cash flow Leverage Ratio analysis Distribution of earning Profit and loss account Balance sheet

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Page no. 72 73 74 75 76 77 78 79 80 81 82 85 87 89 90 91

INTRODUCTION Finance is the life blood of any business. Without finance any business of company cannot exist .Finance is the obviously one of the foundation of economic activities of mankind. Financial management is that managerial activity which is concerned with the planning and controlling of the firms financial resources. A firm requires a number of real assets to carry on its business. IRIL has also different department of financial manager provides us the following information of finance department. There it is said â&#x20AC;&#x153;if you have money and you manage it properly , you will make more money.

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ORGANIZATIONAL STRUCTURE

Senior Vice President Manager

Dy. Manager

Account Officer

Officer

Chief A/C. Manager

Share A/C. Officer

Assistant

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Assistants

A/C. Officer

Assistants A/C. Officer

Assistants

FINANCIAL PLANNING “The financial planning is the responsibility of the top management. It is also essential that each financial planned before any action as the success or future of firm depends totally on it.” IRIL the task of financial planning is divided into three levels: Top Level  Middle Level  Lower Middle Level In any field of business, planning is a primary function of financial management is that of the financial has to make a plan for capital investment and also for working capital for the ensuring year. The cash budget being an integral part of the working capital plan has to be prepared in detail. The company IRIL has also adopted the same traditional procedure for the financial management of company evaluates the various proposals of investment. It also calculates the total investment required for various proposals. The cash in flow return on capital employed , etc. in the contact of planning for working capital. The financial management of company also prepares a cash budget of the beginning of the financial year laying down the estimates or inflow and outflow of cash per week, per month and for the whole year.

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CAPITAL STRUCTURE Capital structure refers to the composition of capital in other words capital structure of the company refers to make up of capitalization. Thus, capital structure of company shows how or through which sources its capital has been raised by issuing equity shares, preference shares and debentures. Any two of these through a mixture of all these three securities. The capital structure of IRIL as on 31st March 2006 is as follows:SR NO. 1 2 3 4 5

Particulars

Amount

Shares capital Reserve & surplus Secured loan Unsecured loan Debenture

83.50 2,124.11 1,084.21 479.36 ------

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CAPITALIZATION Capitalization is the sum or per value of outstanding stocks and bonds. The capitalization means the firm refers to way in which its long form obligations are distributed between different classes of owner and creditors. There are two types of capitalization. They are:Over Capitalization: Over capitalization arises when the earning of the company are not adequate to give a fair return on shares and debentures issued by it. Under Capitalization: Under capitalization arises when it too little capital with which company conducts its business. Book value = (Equity shares + capital reserve +) / No. of Equity shares = (83.50 +2124.11) / 8.350 = 264.38

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CAPITAL BUDGETING

“Capital budgeting decision is a firm’s decision to invest its current funds more effectively in long term activities in anticipation of an expected flow of future benefit over a series of years” At the end of each year, company make capital budgeting at every year by taking services of experts and financial department. This company always aims to increase and expand the installed capacity of Rayon. For calculation there are various methods:

IRR



Profitability



Pay back



ARR

At this present the main objective of capital budgeting in IRIL is mainly replacement and modernization of machines And fixed assets and business expansion by adding new machinery, technology and fixed assets. This type of decisions is taken by main head office, Mumbai. Company use ARR for the purpose of capital budgeting. ARR is calculated as ARR = Average Annual Income / Average Investment

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MANAGING OF FIXED ASSETS There are two types of assets in every firm i.e. fixed assets in every firm. To manage fixed assets in the most important task facing management totally because of risk & investment factor. Fixed assets this type of assets which can use for long time. The age of assets is very long. The fixed assets canâ&#x20AC;&#x2122;t be converted into cash easily. There is a great risk in fixed assets. The financial manager must be careful to invest in these assets. IRIL maintains a plan register in which cash and every detail of every fixed assets are entered . Moreover it has also appointed CA and investment experts. At least once a year they physically verify and check all the asset standing on the main of the company and then calrify them as per their condition. Investment of fixed assets of IRIL as on 31st March 2006:Sr no 1 2 3 4 5 6 7 8

Particulars Goodwill on consolidations Freehold Leasehold Buildings Plant & machineries Furniture Vehicles Trade marks

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Amount 128.06 1.01 18.59 114.57 477.25 19.31 8.54 94.53

MANAGEMENT OF WORKING CAPITAL “Working capital is that capital, which is required to maintain the daily expenses of the business management of a firm. Working capital refers to the fine investment in current assets. Current assets are assets, which are converted into cash with in operating year of operating circle. Current assets include cash, short term securities, and debtor’s bill. Receivables and stock. Gross working capital: Gross working capital means total current assets. Net working capital: Net working capital means differences between the current assets and current liabilities. Cash

work in progress

Debtors

semi finished good

Sales

finished good

Working Capital = Current assets – Current liabilities = 664.18-498.70 =165.48

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MANAGEMENT OF INVENTORY Inventory means have to manage raw material and supply of goods required for the production, which will incur minimum cost of product. Management of inventory management is to provide continuous surplus of raw materials, other goods which are required for production. The inventory of current year is Rs.526.33 Crores. There are five types of inventories in IRIL. 

Raw material



Stores & spares



Material in progress



Contract job in process



Finished Goods

In IRIL there is special storage department and separate inventory management force which perform certain function for efficient management of inventory in the company. Value of material consumed =inventory turnover ration / average inventory held =1551.35 / 232.2 = 6.68 times.

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MANAGEMENT OF RECEIVABLES The management of receivables is basically concerned with the old customer and wining the new ones by collecting a regulating the cost management of receivables also known as trade receivables or customer 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 customer 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 analyzed



It is based on economic value



It implies future management of receivables

Management of receivables concerned with retaining the old customers and new by controlling and regulating the costs. IRIL grants the credit from to its customers for 15 days. Debtors turnover ration = Debtors / Average daily credit sales = 415.44 / 1551.35 * 365 = 97.74

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CASH FLOW cash flow statement (Rs Crore) A

2007-08

2006-07

2005-06

2004-05

2003-04

Cash flow from operating activities Net profit before tax

314.56

311.08

271.75

155.16

161.48

Depreciation

141.20

120.43

111.91

77.84

77.67

Marketing and technical know-how written-off

2.95

3.93

179.02

171.16

55.80

18.73

14.82

(Profit) / loss on fixed assets sold

(7.18)

(2.66)

0.34

(0.36)

0.16

(Profit) / loss on sale of investments

(1.19)

(6.76)

(2.54)

(0.60)

(1.19)

Dividend income

(4.23)

(23.73)

(16.54)

(6.41)

(8.74)

(Gain) / loss on sale of contract exports division

(0.20)

(Gain) / loss on sale of Rajshree Syntex unit

(0.73)

0.71

307.60

258.24

148.97

92.15

86.65

622.16

569.32

420.72

247.31

248.13

Decrease / (increase) in trade and other receivables

(141.39)

(7.60)

231.47

(87.18)

21.53

Decrease / (increase) in inventories

(258.47)

28.00

(118.66)

(78.33)

(31.49)

Increase / (decrease) in trade and other payables

102.52

(32.71)

(275.57)

17.77

24.65

Add: Adjustments for

Interest expenses (net)

Employees stock options outstanding

Operating profit before working capital changes Add: Adjustments for

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(297.34)

(12.31)

(162.76)

(147.74)

14.69

Cash generated from operations

324.82

557.01

257.96

99.57

262.82

Income taxes refund (paid) (net)

(46.11)

(60.66)

(81.00)

(48.23)

(48.12)

Net cash from operating activities

278.71

496.35

176.96

51.34

214.70

13.29

8.82

2.19

2.81

2.99

Capital subsidy received

1.16

Proceeds from transfer of global exports and marketing division

5.40

(116.08)

257.44

84.87

(48.01)

Cash flow from investing activities Proceeds from sale of fixed assets

Sale / redemption / (purchase) of investments (net) Sale of investments in subsidiaries and joint ventures

10.96

Proceeds from sale of Rajashree Syntex unit

5.06

34.50

Interest received

24.78

24.29

13.15

4.34

9.17

Dividend received

4.23

23.73

16.54

6.41

8.74

Increase / decrease in corporate deposit

(89.76)

132.50

(184.63)

Purchase of fixed assets

(238.05)

(302.72)

(199.97)

(153.66)

(105.13)

Investment in equity of joint ventures

(1597.89)

(661.09)

(8.00)

Investment in equity of subsidiaries

(504.59)

(463.83)

(91.40)

(44.42)

(150.18)

(42.54)

(572.76)

(2245.72)

(847.77)

(94.25)

(331.80)

Acquisitions Net cash (used in) / from investing activities C

212.28

Cash flow from financing

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activities Proceeds from issue of share capital (including share premium)

1.70

9.81

0.01

0.00

0.01

Security premium received

339.70

759.93

0.06

0.04

0.06

Proceeds from issue of share warrants (net of conversion)

377.41

Proceeds from / (repayment of) borrowings (net)

(157.81)

1272.87

764.86

88.00

138.31

Dividends paid (including tax thereon)

(106.13)

(27.31)

(27.08)

(25.33)

Interest and finance charges paid

(194.55)

(184.69)

(62.06)

(21.92)

(23.97)

366.45

1751.79

675.56

39.05

89.07

Net increase in cash and equivalents

72.40

2.42

4.75

(3.86)

(28.03)

Cash and cash equivalents (opening balance)

22.74

20.32

9.41

13.27

41.30

6.16

2.02

Cash outflow on sale of RST unit

(0.01)

Cash and cash equivalents (closing balance)

97.15

22.74

20.32

9.41

13.27

Net cash (used in) / from financing activities

Cash of IGFL and BGFL Cash acquired on merger of ABIL

LEVERAGE

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The term leverage is generally used to utilize the fixed cost assets to increase the return to the owners of the firm. Leverage analysis is the important tool of management. Thus, leverage calculation in sales volume or the level of income. Finance Leverage: Finance leverage is known as trade on equity. The preliminary motive of the company is to magnify the shareholders return under favorable condition by using financial leverage. The under capitalized company has issued the debenture at lower rate of interest than its earning rate. Thus, the company can pay a higher rate of dividend. Therefore, as a result the company has paid 50% dividend to its shareholders. It is ratio of net rate of return on shareholders equity and the net rate of return on the total capitalization. Financial Leverage = EBIT/ EBT = 275.79 / 271.75 = 1.015

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Operating Leverage: Operating leverage means ratio of consumption and operating profits in a business concern. Operative leverage is the ability to the firm to use fixed operating cost, to magnify the effect of change in profit due to change in sales on its profit. It is a relative change in profit due to change in sales with fixed cost. The operative leverage of Rayon division is as follows:Operating Leverage = Contribution / Operating profit Here, contribution = sales- variable cost = 2,642.1- 2277.83 = 364.27 Therefore, operating Leverage = 364.27/186.93 = 1.95 Combined Leverage: Operating leverage affects a firms operating profit while financial leverage effects profit after tax or the earning per share. The combined effects of 2 leverages can be quite significant for the earning available to the quality shareholders. Combined leverage = Operating leverage * Financial leverage = 1.95 * 1.015 = 1.98

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RATIO ANALYSIS Financial information is content in three basic financial statements that are Balance Sheet, Profit & Loss Account and Manufacturing Account. But the information given in the basic financial statement servers no useful purpose unless it is interpret and analyzed in some comparable terms and term ratios is the relationship between the two accounting figures. Ratio analysis furnished entire liquidity and profitability position in the company. There are three ratio analyses. 

Gross profit ratio: = gross profit / net profit * 100 = 387.60 /2, 642.1 * 100 = 14.67



Net profit ratio: = net profit / net sales = 186.93/ 2,642.1 * 100 = 7.08



Sales Turnover Ratio: = 2,642.1/ 415.44 = 6.36

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

Current Assets: = current assets / current liabilities = 1,626.27 / 498.70 = 3.26



Inventory Turnover Ratio: = net sales/ inventory = 2,642.1/ 526.33 = 5.02 times



Fixed Assets Turnover: = Sales / Fixed Assets = 2,642.1/ 1,135.52 = 2.33



Liquid Ratio: = Liquid Assets / Liquid Liabilities = 821.51 / 424.78 = 1.93

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DISTRIBUTION OF EARNING The main goal of any firm is to get maximum profit. This profit is measure of efficiency and the search for it provides an incentive to achieve efficiency. Profitability also indicates the products and shows that the firm can provide competitively. Any company can give dividend to all shareholders if the profit of company is sufficient. The shareholders always want to get dividend. IRIL being a well running unit with the excellent success under Birla Group. 

Total rs.20.00 Crores



Dividend

24 (1%)



Retained earning

86% (4%)



Taxes and duties

179 (9%)



Materials

985 (49%)



Staff cost

135 (7%)



Operating & other expenses 429 (25%)



Depreciation

112 (39%)



Interest

56 (198%)

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Profit & Loss Account Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 Mar ' 03 Income: Operating income

3,420.76 2,645.79 1,865.88 1,573.84 1,443.82 Expenses

Material consumed

1,871.94 1,467.53 1,038.23

833.10

730.21

Manufacturing expenses

437.21

291.62

196.80

170.12

155.38

Personnel expenses

193.22

164.03

125.16

117.81

123.12

Selling expenses

219.58

199.03

172.51

149.23

144.16

Adminstrative expenses

154.52

113.28

83.49

69.95

64.60

Expenses capitalised Cost of sales

2,876.47 2,235.49 1,616.19 1,340.21 1,217.47

Operating profit

544.29

410.30

249.69

233.63

226.35

Other recurring income

61.99

33.59

13.81

22.25

31.30

Adjusted PBDIT

606.28

443.89

263.50

255.88

257.65

Financial expenses

195.40

68.55

22.94

23.99

43.66

Depreciation

120.32

111.81

77.74

77.59

67.81

2.95

3.93

Adjusted PBT

290.56

263.53

159.87

150.37

142.25

Tax charges

117.37

90.31

43.36

50.15

34.22

Adjusted PAT

173.19

173.22

116.51

100.22

108.03

Non recurring items

11.16

-2.28

-8.08

26.40

-16.37

Other non cash adjustments

40.62

15.99

5.29

4.66

13.67

Reported net profit

224.97

186.93

113.72

131.28

105.33

Earnigs before appropriation

225.42

773.06

380.93

340.92

185.01

Equity dividend

51.32

41.75

23.95

22.45

7.20

5.86

3.42

3.07

2.88

166.90

725.45

353.56

313.90

159.68

Other write offs

Preference dividend Dividend tax Retained earnings

Balance sheet Mar ' 07

Mar ' 06

(Rs crore) Mar ' 05

Mar ' 04

Mar ' 03

Sources of funds

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Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus

93.31

59.89

59.88

23.61

3,031.24

2,124.11

1,294.18

1,207.80

1,110.91

Loan funds Secured loans Unsecured loans Total

2,071.62

1,084.21

493.03

405.81

266.32

760.21

479.36

1.58

5,956.38

3,771.18

1,847.09

1,673.49

1,438.69

Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-inprogress Investments

2,653.15

2,461.81

1,418.74

1,301.31

1,177.54

1,548.90

1,448.74

663.49

588.53

501.55

1,104.25

1,013.07

755.25

712.78

675.99

203.88

122.45

55.03

24.69

8.09

3,849.39

1,675.79

699.66

741.63

514.30

Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total

1,452.39

1,641.42

737.82

579.25

583.79

653.53

681.55

400.67

387.81

350.36

798.86

959.87

337.15

191.44

233.43

2.95

6.88

5,956.38

3,771.18

1,847.09

1,673.49

1,438.69

Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (Lacs)

1,333.55

1,524.25

562.91

600.19

359.76

8,214.78

419.41

259.39

226.59

123.20

333.46

584.65

404.64

277.25

218.93

933.05

598.90

598.85

598.82

598.77

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INDEX

Sr no. 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Particulars Introduction Market research Organization structure Product planning Market segmentations Pricing policy Channels of distribution Sales promotion Advertisement International marketing Objectives of marketing Customers satisfaction Dealing with competition Quality policy

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Page no. 95 96 97 98 100 101 102 103 104 105 106 107 108 109

INTRODUCTION â&#x20AC;&#x153;A market may be considered as a convenient meeting place where buyers and sellers gather together for exchange of good and services.â&#x20AC;? Marketing is a comprehensive term and it includes all resources and a set of activities necessary to direct and facilities the flow of goods and services from producers to customers in process of the distribution. Business regards marketing as a management function to plan promote and deliver product to the clients or customers. Human efforts finance and management constitute the primary resources in marketing. A market consist of all the potential customer sharing a particular need or want who might be willing able to engage in exchange to satisfy the need or want. The concept of market brings us full circle to the concept of marketing. Marketing means working with the markets to actualize potential exchange for the purpose of exchange human needs & wants. The IRIL have a very efficient and excellent marketing department, which tries to provides maximum satisfaction to the customer while having reasonable profits on the other hand.

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MARKETING RESERCH To manage a business well its future and to manage its future is to manage its information. Beside managing man, money, materials, machines, modern business has to manage information too carefully. At some period chemists, techniques and president visits to the markets. Sometimes some persons are employed by the company for research and they go to customer to take opinions about the product of the company. Besides , the following are also required:

Market survey



A product performance research



A sales forecasts segment wise. For, market research telephone service, mail service is also used.

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ORGNAIZATIONAL STRUCTURE Organizational is a form of co-operative efforts. It can be said that marketing organization consists of numbers of position with number of persons. Marketing organization is important to the firm of single person canâ&#x20AC;&#x2122;t handle every marketing activities.

Marketing

Vice president

General Manager

Amrutsar Office

Mumbai Office

Regional Manager

Manager

Sr. Manager

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PRODUCT PLANNING & DEVELOPMENT The product is any thing that can be offered to satisfy the need or want. Product is the most important and tangible component of marketing program. Product decision means what in the product is to be prejudiced or requirement in the product is to be satisfied and for whom the product is meant. Product decision involves three important considerations. 

The development and introduction of product



The modification of the existing product.



The elimination of unprofitable product

“ product planning determines the features of the product best meeting the consumers numerous desires, features that add stability, to product and incorporates these features into the finished product.” JOHNSON. IRIL makes product planning according to the demand of industries and situation and price of products. PRODUCT LINE To make new product development the company brings modernization in the product according to the international tread. New products development is brought by the experienced engineers IRIL use of ECOLABEL DYES and auxiliaries and also use of cellule cellulose work.

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PRODUCT LIFE CYCLE The life cycle of the product is similar to the life cycle of the human being. The product life cycle is an attempt to recording distinct stage on the sales history of the product. IRIL is passing from the maturity stage. So this company cans make changes in product and its technology as adopting horizontal spinning machine for same deniers. Development of coning machine including better design and efforts to enable up graduation in product quality and quantity control system.

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MARKET SEGMENTATION Market segmentation is a meaningful buy or group having similar needs. Segmentation gives formal reorganization to the fact that needs and desire of all customers are diverse and we can formulate a special market offering to specific category or segment of the market. So that supply will have best correlation with demand. The company Indian Rayon & Industries Ltd. has entered many market segments under differentiated marketing strategies but it has a unique marketing mix. Appropriate for each product makes the business successfully in several segments. IRIL has its branch at Ahmedabad, Surat ,Banglore , Chennai, and its head office is at Mumbai , which takes major decisions about all product. Branch in India Delhi, varanasi, Surat, Mumbai ,Bangalore, Kolkata. Branch in Abroad Korea, Italy, Africa, Bangladesh

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100

PRICING POLICY Pricing determines the utility aspect and quality of the product. There is general tendency of consumer that they measure the quality of product from its price. price is the exchange value of product or service which is always expressed in terms of money. Right price can be determined through pricing research and by adopting the test market techniques. All the company fixes prices on the bases of the cost production and charge of distribution, packing, etc. The pricing objectives of company are as follows:

Return on investment



To maintain its market



Price stability Indian Rayon & Industries Ltd has not adopt any clear pricing policy but we may say that the mixed policies of the following policies exist in the company.



Cost oriented pricing policy



Demand oriented pring policy



Competition oriented pricing policy

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CHANNELS OF DISTRIBUTION

Distribution refers to the ways by which a product is reached to the customers. Thus, distribution channels indirectly customer and also this help in achieving goal. Rayon division has its sales centers at major cities of India as Delhi, Bombay, Amritsar, Banglore, Belgaum, Jaipur, Ahmedabad, Varanasi, Panipat, Madras, Surat, and also agent. Each adopt has its warehousing for the stock of product. Rayon division adopts some time zero level distribution and some time one level distribution. CHANNELS OF DISTRIBUTION 

For Rayon Yarn

Company→ sales office→( or agent )→ One level  For chemical ( by product ) Company→ customers company→ dealer→customer Rayon division does not fix any channels due to following reasons:

Product features



Company features



Big investment

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102

SALES PROMOTION “ Promotion consists of those activities that are designed to begin a company good or service to the favorable attention of customer.” In this method following tools have been used:

Buying allowance discount



Display allowance



Dealers contest



Concession on net sales(2%)



Free gift In IRIL, there is no separates department for sales promotion but it is followed by sales department of Rayon division , veraval. Sales promotion affect in sales of the company. Most of the company does sales promotion to improve market. Sales promotion activities do not relate only with distribution but also to dealers and members of sales force. Recently, the company gives key chains, diary, calendar, wallets, decorative, items, etc. to the customers a gift. Following programs are conducted IRIL for promoting sales



Dealers meet each other



Dealers visit to factory



Price distribution to dealers

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ADVERTISING “Any paid form of non-personnel communication of ideas, goods or services by business firms identified in the advertising message intended to lead to sale immediately or eventually.” Advertising is a contract with personnel selling seeks to convey the market manage to message of potential buyers achieving advertising effectiveness through skilled planning and management of advertising efforts is a key responsibilities of marketing management. Indian Rayon & Industries Ltd is very sound company producing the industries product and major factories producing rayon yarn in India are in handle of one management. Thus, there is no question of advertising. The magafied “ man made fed ness ” gives the data of factories manufacturing flashes their exports pricing policies, etc thus, in this way we can say direct advertising.

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INTERNATIONAL MARKETING A market defines by demand essentially. It is demand which creates which creates the supply. International market deals 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 there governs the buyers-seller relationship in the international market. The company IRIL exports 2.6% of the annual production to the various through its main offices in abroad companies being well diversified. The birla management group and its company in most of the countries have its own office. The company IRIL exports the product of Rayon Yarn in Morocco, UK, USA, Turkey, Korea, Saudi Arabia, Spin, Philippines, Indonesia, Italy, and South Africa. The company also import the raw materials required for rayon yarn like pulps from South Africa and Canada.

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OBJECTIVES OF MARKETING The following are objectives of Rayon Industries Ltd. 

To find new and new customer to sell then more and more of companies product.

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Try to make better and quality product.

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To provides a successful distribution of consumer product.

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To study the market problem according to the circumstances and suggest the solution.

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To sell their products in new areas to make new customers and satisfy old customer.

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To encourage the customer and know the fault in their products and then try to make quality of product.

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CUSTOMER SATISFACTION Due to cut throat competition in market, importance of customers has increased. Now a dayâ&#x20AC;&#x2122;s sellers are more in numbers while users or consumers are less in number. Therefore, it is essential for producers to know the satisfaction level of this product. The promoters for customers satisfaction are new products and services coupled with delivery schedule, high quality, right price and maintaining customer relation. In Indian Rayon & Industries Ltd. The level of customer satisfaction is very good. It is due to reason that the product is high quality.

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DEALING WITH COMPETITION The IRIL have monopoly in the market because of its total market of Rayon yarn Industry. The IR have 25% market and Aditya Birla Group have also other two unit of Rayon Yarn so all the three units cover the 755 have competitors is as follows:

Keshavaram Birla Rayon

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Century Rayon

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National Rayon

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QUALITY POLICY We are committed to:

Meet customer’s expectation of quality and service in premium

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Maintain high morale of employees

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Use eco-friendly technology and maintain pollution free environment.

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SWOT ANALYSIS STRENGTH             

High quality of yarn produces. Wastes are being sold. Good after sales services. Equipment with all modern machineries, better packing, carriage & transportation system. Regular meetings & seminars are conducted & the loopholes traces and solution is unearthed for it. Internet marketing Sophisticated German machinery helps in the continues spinning yarn department. Division has WCM, look out for better manufacturing ways. For better quality of production, certified with ISO 9001 For good environment management system, certificate of ISO 14001 Effective security system for identified unwanted problems According to the need of the company, employees at each level are given training. A state of ART laboratory were new & effective chemicals are explore.

WEAKNESSES     

Heavy cost of production due to old technology in certain department Long process steps Far from market Long process cycle Certain loopholes in information system

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OPPORTUNITIES     

New market should be unearthed for its production & chemicals Lucrative export market Cost control & lean consumption should be worked on Globalization has made world a village Find ways to penetrate deeper into the world’s biggest textile markets EUROPE & USA

THREATS    

Government policies Changing fashion The viscose process is highly polluting Emergency of cotton threats made the market share of Rayon Yarn low

ANALYSIS  The company should work on cost reduction programme by having a multi dimensional attack on cost  The overseas market should properly traced out(by an efficient is system  The company should work on value addition  The company should concentrates on lean consumption  The company should trace down the loopholes in its &system & to fill it as it would help in lowering the work burden & would increase productivity  The management of Aditya Birla Nuvo Ltd should establish themselves as a quality based, high speed, high performance, cost effective organization.  The company should have excellent management relationship with transparent and adaptive management approach.

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CONCLUSION IRIL is a heavy industry having sound facility of manpower, finance, machinery and organization Company has well established marketing and personnel department and the financial condition is very strong. At least , I would like to give my best wishes to the company and I also wish company make splendid success and achieve glorious moments.

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BIBLIOGRAPHY We referred following books preparing our project report.  

  

Principal & practice of management Personnel management

Human resources management Marketing management Finance management

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- L.M. Prasad

• - C.B. Mamiria • - S.V. Ganker • - P. Subba Rao • - Philip kotler • - J.C. Gandhi • - Khan & I.M. Pandey • - James C. van Horne

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