ORGANIZATION STUDY ON Carborabdum Universal Limited

INTERNSHIP REPORT Submitted By

DIVYA GIREESH REG. NO: 711411631014

In partial fulfillment for the award of the degree Of

MASTER OF BUSINESS ADMINISRTATION IN

Department of management Studies

KPR SCHOOL OF BUSINESS July-August 2012

KPR SCHOOL OF BUSINESS

Department of Management Studies
INTERNSHIP WORK PHASE II July-2012

This is to certify that the project Entitled

Organization Study on Carborabdum Universal Limited

Is a bonfide record of project work done by

DIVYA GIREESH REG. NO: 711411631014

Of .. (MBA) during the year 2011-13 Project Guide . Head of the Department

Submitted for the Project Viva-Voce Examination held on . .. Internal examiner . External Examiner

Declaration
I affirm that the project work titled organization study on Carborandum Universal Limited being submitted in the partial fulfillment for the award of Master of Business Administration is the original work carried out by me. It has not formed the part of any other project work submitted for any degree or diploma either in this or any other university.

(Signature of the Candidate) Divya Gireesh

REG. NO: 711411631014

I certify that the declaration made above by the candidate.

Signature of the Guide

With Name & Designation

Acknowledgement
Success of every internship depends largely on the self & encouragement and guidance of many others. I take this opportunity to express my gratitude to the people who have been instrumental in the successful completion of this study project.

First of all I would like to thank the Management at CUMI (Carborandum Universal Limited) for giving me the opportunity to do my one-month internship training in their esteemed organization.

I would like to thank Mr.Prabakaran (Internal Guide) for providing me with valuable advice and endless supply of new ideas and support for this project.

I would like to thank Mr.Balakumar and Mr.Betraj for providing practical exposure for the project and his valuable guidance during the project work.

TABLE OF CONTENTS
Chapter No. Particulars Executive Summary List of Figures List of Tables Chapter 1 Organization 1.1 Organization Introduction 1.2 Products and services 1.3 Company Profile 1.4 Organogram Page No. 6 7 7 8 9-12 13-17 18-21
22

Chapter 2

Inter Departments 2.1 Production

2.2

23 23 23 24 24 24-41

R&D

2.3 Marketing 2.4 Finance 2.5 HR

Chapter 3

Learning from internship

42-43

Chapter 4

Knowledge Gained

44-45

Chapter 5

Skill Development through internship 46

Chapter 6

Specific tasks

47-50

Chapter 7

Conclusion Bibliography/ References

51 52

Executive Summary
This is the organization study on CUMI (Carborandum Universal Limited). This is the organization under the conglomerate Murugappa Group. This report is about my internship at CUMI from 6th of July to 4th of august for five weeks. During my internship I was able to learn practical features of an organization and obtain a good working experience from professionals. This report includes introduction about the company and the products and functioning of the organization. This report also gives introduction about internal working of the organization and different departments functioning in the organization. This report also discusses with objectives and policies of the organization and the competitors of them. It also gives the structure of the organization and the company profile including key persons in the organization. At the end it includes the key learnings and skills developed during internship. It also gives description about the tasks assigned during the internship process. At the completion of my internship program, , internship issued me an Internship Completion Letter. I hope that this report will provide you a complete momentary look of the organization, where I have completed my internship. Moreover this report depicts my practical experience that I have gained and learned during this internship program.

List of Figures
Figure 1: The Spirit of Murugappa Group Figure 2: Major Companies Figure 3: Abrasives Figure 4: Coated Abrasives Figure 5: Bonded Abrasives Figure 6: Electro Minerals Figure 7: Super Refractorys Figure 8: Organization Structure

List of Tables
Table 1: Company Profile Table 2: Competitors Table 3: Policies of HR

Chapter -1

ORGANIZATION

1.1Organization- Introduction Murugappa Group

The making of Murugappa group Headquartered in Chennai, the Rs. 22314 crores (USD 4.4 billion as on March 31, 2012) Murugappa Group is one of India's leading business conglomerates. Market leaders in diverse areas of business including Engineering, Abrasives, Finance, General Insurance, Cycles, Sugar, Farm Inputs, Fertilizers, Plantations, Bio-products and Nutraceuticals, its 28 businesses have manufacturing facilities spread across 13 states in India. The organization fosters an environment of professionalism and has a workforce of over 32,000 employees. The Group has forged strong joint venture alliances with leading international companies like Mitsui Sumitomo, Foskor, Cargill and Groupe Chimique Tunisien has consolidated its status as one of the fastest growing diversified business houses in India. From Acorn to Oak the business has its origins in 1900, when Dewan Bahadur A M Murugappa Chettiar established a money-lending and banking business in Burma (now Myanmar), which then spread to Malaysia, Sri Lanka, Indonesia and Vietnam. In these 100-plus years, it has withstood enormous vicissitudes, including strategically moving its assets back to India and restarting from scratch in the '30s, before the Japanese invasion of Burma in World War II. Starting with a sandpaper plant, the Group forayed into making steel safes, and then into manufacturing. It set up an insurance company, and bought a rubber plantation; making a small but significant beginning. The rest is history.

Fig.1 Today, it is one of the country's biggest industrial houses. Group achieved a turnover of Rs. 13617 crs during 2009-10. Today, they have set to achieve a total turnover of USD 7.2 Billion by 2013-14. The group is a market leader in India across a spectrum of products like fertilizers, abrasives, automotive chains, car door frames and steel tubes. Neemazal, a neem-based organic pesticide, is the market leader in bio-pesticides. Some of the country's best-known brands like BSA and Hercules in bicycles, Parrys Spirulina and Parrys Beta Carotene in nutraceuticals, Ball master and Ajax in abrasives, Gromor and Paramfos in fertilizers, and many more come from the Murugappa Group.

10

Major Companies

Fig.2

Carborundum Universal Limited

Carborundum Universal Limited (CUMI) was founded in 1954 as a tripartite collaboration between the Murugappa Group, Carborundum Inc, USA, and the Universal Grinding Wheel Co Ltd, UK. They pioneered the manufacture of coated and bonded abrasives in India, besides super refractories, electro minerals, industrial ceramics and ceramic fibers. In sync with the global vision, CUMI is expanding its product spread. The Company makes over 20,000 varieties of products manufactured at 25 locations across India, Russia, South Africa, Australia, China, Thailand and Canada. They exports its products to 43 countries spread across the globe. All the manufacturing facilities of CUMI are ISO 9001:2008 and ISO 14001: 2004 certified for quality standards and environment-friendly manufacturing practices. State-of-the-art facilities and strategic alliances with global partners have earned them a reputation for quality and innovation. It is one of the few manufacturers of abrasives and ceramics in the world with fully integrated operations that include mining, fusioning, power generation and manufacturing, besides marketing and distribution. CUMI is equipped with a state-of-the-art Research and Development centre and they work aggressively on product development and efficiency enhancement. Its in-house R&D and collaborative research with leading research institutions have ensured market leadership in India and abroad. CUMI has manufacturing practices like Lean and Six Sigma in place to improve its cost competitiveness.

11

The Company has a commanding list of subsidiaries across the globe that include Volzhsky Abrasive Works-Russia, CUMI Australia Pty Ltd, Foskor Zirconia Pty Ltd-South Africa, CUMI Middle EastRAK, CUMI Canada Inc, CUMI America Inc, Sterling Abrasives Limited-Ahmadabad, Net Access India Limited, Southern Energy Development Corporation Limited (SEDCO), CUMI Abrasives and Ceramics China Limited (CACCL), Cellaris Refractories India Limited and CUMI International Limited, Cyprus. CUMI's joint ventures include Wendt (India) Limited manufacturing super abrasives, Murugappa Morgan Thermal Ceramics - manufacturers of ceramic fiber and Ciria India Limited - specializing in design and installation of refractory liners for petrochemical and fertilizer industries. This unique strength allows the Company to serve diverse markets and geographies leveraging the local strength of its partners.

12

1.2 Products and services

Products
Abrasives & Allied Products

Fig.3 An abrasive is a hard, tough and wear resistant substance for grinding and polishing operations. Manufactured through a complex and high technology process, these abrasives are used in metal removal, cutting and finishing operations in almost all industries. Coated abrasives

Fig.4 These are manufactured by depositing grains over a backing material like cloth, paper or fiber. Depending on the requirement of the customer, the backing material and type of grains will vary. There are various types of grains like sintered aluminum oxide, silicon carbide, zircon, emery and flint. The grains are of varied sizes referred as 'grits' and their sizes also vary from grit 12 to grit 2000. The backing on which these grains are coated will vary depending on the industry and application to which the coated abrasives are supplied.

13

Coated abrasives are used in light polishing applications in automobile, auto ancillaries, white goods, hand and power tools, sanitary ware, furniture, and fabrication and construction industry.

Bonded abrasives

Fig.5 These are divided into vitrified, retinoid and rubber products and manufactured by mixing grains

with bonding material, molding them to shape and then subjecting the output to firing or baking in high temperature and finishing the same to desired dimensions. The composition of the product depends on the type of grains and type of bonding materials used. Sizes will vary between 10 mm to 1200 mm with thickness ranging from 1 mm to 650 mm. Bonded abrasives are mostly in the form of wheels but also in other shapes such as segments, sticks etc. Bonded abrasives for internal purposes classified as Standard Products (i.e. those products which are made to standard dimensions, grit sizes, shapes and grain / bond composition). Bonded Abrasives are used in diverse applications like floor polishing, fabrication, polishing, off-hand tool grinding and precision grinding of diverse products like crank shaft, balls and razor blade across a
wide spectrum of industries ranging from automobile, construction, fabrication, steel, bearing etc. Tools for stones Diamond and cubic boron nitride (CBN) are known as Tools for Stones. Wheels and tools made with these abrasives are used in high end applications. CUMI is present in this segment, through its joint venture Wendt India Ltd., Bangalore, India.

14

The major user industries for Tools for Stones are automobile, engineering, cutting tools, refractorys, ceramics tile, glass and steel.

Allied products
Metal Working Fluids Apart from abrasives, CUMI also manufactures metal working fluids for grinding applications. In the metal working process, the right combination of machine, cutting tool and metalworking fluid is required to produce an acceptable part. Therefore this product line is a logical extension of CUMI's abrasives. Power Tools CUMI recently launched a range of power tools used in metal working, construction, wood working and interior decoration. Abrasives are used as accessories in power tools. The Company's strong brand image and well established marketing network provide good synergies for this product line with abrasives. Electro Minerals

Fig.6 CUMI's electro minerals products group offers sintered aluminum oxide and silicon carbide grains as the major product lines. Upon completion of the acquisition in South Africa, CUMI's product range would get enlarged to include fused zirconia as one more major product line. Electro minerals are used as basic raw material in the manufacture of abrasives and refractorys. They are also used for surface preparation and in tile and paint industries. They are also increasingly being used for silicon wafer slicing in solar cell 15

manufacture, dental care and skin therapy. Silicon carbide is also used as an input in metallurgical industries.

Industrial ceramics The Ceramics product group offers products which harness the heat resistance / containment, wear resistance and insulation properties of ceramics and also corrosion resistance properties of various materials. Industrial ceramic materials are non-metallic, inorganic compounds Industrial ceramics products made mostly of high alumina. They have high melting points, low wear resistance, and a wide range of electrical properties. Anticorrosion products

CUMI offers a range of corrosion protection products mainly for industrial applications viz. acid resistant cements, custom made equipment manufactured of fiber reinforced plastics, precast polymeric products, construction chemicals and anticorrosive coatings and industrial floorings. The products are used in a wide variety of industries for meeting anti corrosive requirements in industries particularly petrochemicals, copper and zinc refineries, paper and pulp, fertilizers etc. Bio-Ceramics CUMI also offers a ceramics wound dressing products. These consist of micro-porous ceramics granules in a permeable container. These products helps to siphon off excess wound exudates. They have application in health care industry for post surgical medical care and treatment of various wounds and ulcers.

16

 Super Refractorys

Fig.7

Refractory is a material that will retain its shape and chemical identity when subjected to high temperatures and is used in applications that require extreme resistance to heat, such as furnace linings. Refractory products are basically used in industries for heat resistant and containment. CUMI's manufactures Super Refractories (which can be in two forms fired refractorys and monolithic) and also Refractory Fiber.

17

Company profile
COMPANY NAME: CUMI (Carborandum Universal Limited) Headquarters: 'Parry House', 43 Moore Street, City: Chennai (Madras) State: Tamil Nadu Pincode:600001 Email ID:investorservices@cumi.murugappa.com Web Url:http://www.cumi.murugappa.com

Name K Srinivasan K Srinivasan M Lakshminarayan M M Murugappan M Muthiah N Ananthaseshan P L Deepak Dorairaj P R Ravi R Rajagopalan S Dhanvanth Kumar S Dhanvanth Kumar Sanjay Jayavarthanavelu Shobhan M Thakore Sridhar Ganesh Sridharan Rangarajan Subodh Kumar Bhargava CEO Managing Director Director Chairman / Chair Person Sr. Vice President - Human Resources

Designation

Sr. Vice President - Electro Minerals Division Sr. Vice President (Operations) - Abrasives President - Industrial Ceramics Sr. Vice President - Refractories & Prodorite Company Secretary & Compliance Officer Secretary Director Director Director Chief Finance Officer Director
18

Table.1 Company background: - Industry name: abrasives and grinding wheels House name: Murugappa Group Incorporation date: 21-04-1954

Carborundum Universal Ltd is a largest high alumina ceramic manufacturing company in India. They are an industrial ceramic material-based products and service provider, with operations spread across three business segments namely Abrasives, Ceramics and Electro minerals. They pioneered the manufacture of coated and bonded abrasives in India, besides super refractories, electro minerals, industrial ceramics and ceramic fibers. The company's major customers include bearing, automobile and auto ancillary, alloy steel, foundry and forging, fabrication and general engineering industries. The company products are manufactured in fourteen locations across various parts of the country in which all their manufacturing units are ISO 9001:2000 certified. The company has their presence in 43 countries and also has 200,000 retail outlets. Carborundum Universal Ltd was incorporated in the year 1954 as a joint venture between Carborundum company, USA, Universal Grinding Wheel Company, UK and Murugappa Group, India. Within ten year, they acquired a coated abrasives facility from Ajax Products Pvt Ltd and set up a bonded abrasive facility at Thiruvottiyur in Chennai and bauxite mining in Bhatia. In the year 1978, the company acquired the Eastern Abrasives Ltd which is a coated abrasives manufacturer in Kolkata. In the year 1982, the company established MMTCL as a joint venture company with Morgan Group plc for manufacturing ceramic fibers. The company had collaboration with Wendt GmBH of Germany, Morgan Crucible Co, UK, and also a Joint venture in Australia for the supply of wear resistant ceramics to coal washeries. The industrial ceramics division was started in the year 1991 in technical collaboration with Coors Ceramics, USA and the manufacturing plant is located at Hosur in Tamil Nadu. During the year 1994-95, in order to augment infrastructure facilities, the company commissioned a 2 MW wind farm at Perungudi, Tamilnadu. Cutfast Abrasive Tools Ltd, Eastern Abrasive Ltd, Cutfast Polymers Ltd and Carborundum Universal Investment amalgamated with the company with effect from April 1, 1997. During the year 1999-2000, the company set up a 5 MW natural gas based thermal power plant in Tiruvarur with an outlay of Rs. 16 crore. In March 2002, the company commissioned the cloth processing facility at Maraimalainagar in Tamil Nadu. Sterling Abrasives Ltd, which is engaged in
19

bonded abrasives business, and SEDCO, which operates a 5.5 MW natural gas based thermal power plant in Tamil Nadu became the subsidiary of the company with effect form March 31, 2003. During the year 2003-04, the company acquired 51% stake in CUMI Australia Pty Ltd. During the year 2004-05, the company established state-of-the art facilities for certain product lines in their Tiruvottiyur and Pallikaranai plants and also they installed new kilns in their Hosur industrial ceramics plant and the Ranipet super refractories plant. During the year 2005-06, the company set up a 100% subsidiary with the name CUMI Middle East FZE in Ras Al Khaimah, UAE to promote exports in the region and also in February 2006, they set up a 100% subsidiary in Canada, CUMI Canada Inc and acquired the business of a coated abrasive supplier, Abrasive Enterprises Inc at an investment of 2.25 million Canadian Dollars. In October 2006, the company acquired 48.7% stake in Sanhe Yanjiao Jingri Diamond Industrial Company Ltd, which is engaged in the manufacture of synthetic diamond grits, which serves as a raw material for super abrasives. The coated abrasive plant at Sriperumbudur in Tamil Nadu commenced their production in December 2006. During the year 2006-07, the company consolidated their coated abrasive back-end operations of cloth processing and polymer manufacturing at Maraimalai Nagar near Chennai. In order to strengthen their position in the monolithic market, the company acquired two industrial units at Jabalpur, Madhya Pradesh, one, which manufactures monolithic refractories and the other high quality refractory cement, which is an input for monolithic refractories. Also they completed the first phase expansion of silicon carbide during the year. Prodorite Anticorrosive Ltd, a wholly owned subsidiary of the company merged with the company with effect from April 1, 2007 which is engaged in the business of acid resisting cements, corrosion resisting products, polymer concrete and fiber reinforced plastics. Also, the company set up a 100% subsidiary in Cyprus, CUMI International Ltd with an investment of nearly Rs. 100 crore. CUMI International Ltd acquired 86% stake in Volzhsky Abrasive Works, Russia which is ranked as the worlds second largest silicon carbide manufacturer, with an installed capacity of 65,000 tons per annum. In November 2007, CUMI acquired the engineered ceramic business of IVP Ltd in Aurangabad to strengthen their presence in the high alumina ceramics business. During the year 2007-08, the company commissioned a modern 2000 tone facility for resin bonded abrasives and a 1000 tone vitrified bonded abrasives plant and also they spent Rs. 1030 million for the Greenfield / brownfield expansions, new product and technology upgradation projects. They set up new automated plant at Hosur for manufacturing wear resistant liner tiles at a cost of Rs. 318 million. The company is in the process of setting up a green field
20

facility in Vellore district in order to strengthen their position in the fired refractories segment. In July 2008, the company entered into an agreement with Foskor (Proprietary) Ltd, South Africa to acquire 51% equity stake in Foskor Zirconia (Proprietary) Ltd, Phalaborwa, South Africa which is engaged in the manufacture of zirconia and fumed silica.

Competitors
Company 1 2 3 4 Grind well Norton ltd Orient Abrasives Ltd Valley abrasives Wendt India Ltd

Table.2

21

Organogram
Shareholder
Board

Financial center Director

Legal Department

Production department

Investment department

Marketing Department

Technical department

Human Resource Department

Production Planning
Technical/Ind ustrial Design

Planning Department

Brand/Adver tising

Promotions/ Media

Product Design Department

Research Development department

Training Group

Research Department Engineering Department

Trade Marketing

Public Relations Market Analyst

Recruiting Team Office Support

Production

Technical Audit Department

Technical Service Departemnt

Compensation Benefits

Maintenance

QA Manager

Customer Service Department

Fig.8

22

Chapter-2 Inter departments

The major departments under CUMI are: Production R&D HR Marketing Finance

2.1 Production
CUMI pioneered the manufacture of coated and bonded abrasives in India, besides super refractoriness, electro minerals, industrial ceramics and ceramic fibers. In sync with the global vision, CUMI is expanding its product spread. The Company makes over 20,000 varieties of products manufactured at 25 locations across India, Russia, South Africa, Australia, China, Thailand and Canada. CUMI exports its products to 43 countries spread across the globe. All the manufacturing facilities of CUMI are ISO 9001:2008 and ISO 14001: 2004 certified for quality standards and environment-friendly manufacturing practices.

2.2 R & D
CUMI is equipped with a state-of-the-art Research and Development centre that works aggressively on product development and efficiency enhancement. Its in-house R&D and collaborative research with leading research institutions have ensured market leadership in India and abroad. CUMI has manufacturing practices like Lean and Six Sigma in place to improve its cost competitiveness.

23

2.3 Marketing
The domestic and international markets for electro minerals, was very buoyant both on account of supply constraints and also demand growth. The business recorded a growth of 25 per cent in revenues with the Indian operations achieving a growth of 34 per cent and the Russian operations by 24 per cent over last year. The South African operations grew by 21 per cent. The increase in sales was both on account of volume increase and also escalation in prices. The market structure in the global electro minerals business remained largely unchanged with the Company continuing to be the second largest player in the silicon carbide segment of this business.

2.4 Finance
Substitution of debt with more favorable terms has been done at CUMI International Cyprus. The relationships with the CUMIs bankers in India have been leveraged to get credit facilities for overseas subsidiaries. All debts have been serviced on time (including scheduled Repayments). All capital expenditure was funded from internal accruals. The rates even when the market rates increased during the latter part of the year. The Company continued to retain its strong credit ratings - P1+ for short-term borrowings and AA+ Stable for long-term borrowings - from CRISIL. The software used by them is Ramco

2.5 HR
The leadership team revisited Vision CUMI 2020 in a session facilitated by a consultant of international repute, setting the tone behaviors that they are committed to uphold at all times. The team also followed through with their 360-degree feedback, by taking up individual
24

development plans focusing on leveraging their strengths and working on developmental needs. The second-line leaders were also being geared up for their turn. The CUMI Leadership Program saw its second batch graduate successfully with the promise to be at the helm when CUMI 2020 happens. Young aspirants werent far behind with CUMI Ustaad programs conducted to hone their technical skills, especially the application engineering capabilities, which are at the heart of CUMIs business. The engagement levels of employees was measured and found to be higher compared to similar companies in India. Based on a comparison of market compensation levels across locations, compensation package was selectively restructured during the year. An Online Performance Management System was launched in order to align to the Groups performance management framework and also to make it user-friendly for employees spread across various locations. My Space, the enhanced employee portal, was unveiled to provide a single window of access to employees information needs. The Company continues its commitment to employment and empowerment of women through its Mitr Forum and other initiatives. Womens Day Awards and participation in the MMA Womens Convention events were some of the additional activities of this year. At the workmen level, successful long-term settlements were signed in major locations towards a healthy and productive work environment. A basic training centre was started to build a supply of skilled workforce to meet future needs, through an apprenticeship model approved and recognized by the State Government in Tamilnadu. It also proved to be a socially impactful program, turning school drop-outs and unemployed youth from the local communities into a pool of employable and skilled candidates. Safety and Environment initiatives were undertaken in the form of awareness campaigns, competitions, continuously monitoring matrices and training programs. Retaining critical talent and acquiring new talent to meet the business needs was the biggest challenge in the last year; going forward, initiatives like Graduate Engineer Training programs and recognizing top talents are expected to help the Company counter this challenge in the coming years

25

Human Resource Strategy CUMIs business strategy is evolved from Domestic & Global market trends, Economic Growth, Competitor Analysis and Customer Industries Growth Plan. HR strategy is linked to business strategy and facilitates the organization to achieve the objective by building people capabilities. CUMIs concern for people has been driving force for the growth of the organization over the last 5 decades. The sustained growth over the past several years attributed to the knowledge, skill of the people and technology. HR has always been one of the focus points in the business strategy. Principles

Whether workmen or management staff, employees are employees. They are not different blocs, but two faces of the same coin

Unions are treated with respect and are made partners in the progress Harmony and peace cannot be at the cost of dilution of organization ethos. Fairness and Firmness will govern all employee relations

Communication and dialogue would be the essence of managing relationships A proactive approach and a state of mental and physical preparedness would help in managing unpleasant surprises

Integration of HR polices and strategies with the organizations strategy The formulation of new policies and changes to the existing policies are done in line with the business plan, business model, market trends, best practices of benchmarked companies, suggestions, employee feedback through communication meetings and through Employee Satisfaction Surveys. Synergy across divisions/relationship with alliance/logistics-distribution

The initiative on the above was started with the facilitation by Mr. Richard West, a Transformation Facilitation Expert.

26

Adopting the framework articulated in the CII Business Excellence Model and identification of 12 key processes.

Strategic planning for the future based on analysis of discontinuities and emerging technologies.

Mutually beneficial Long Term Agreements with Unions focusing on productivity and flexibility for the organization, and a good quality of life for the employees. Welfare is non-negotiable- P.P.Sukumaran, Vice-President, Group HR.

And the management focuses on Long Term welfare schemes like Health, Housing and Education of children.

Introduction of modern manufacturing concepts and practices like Modular system of production, Lean Manufacturing System, ERP, etc.

TQM made a way of life through extensive use of 7 QC tools in daily work. Intensive employee involvement activities in Cross Functional Teams (CFTs) and Small Group Activities (SGAs).

CUFEST being the much awaited annual event displaying the best of the talents in the areas of TQM and TEI (Total Employee Involvement) initiatives are reviewed by the top management and external experts. Rewards and recognitions in the Annual Quality Festival are a great source of motivation to the participants.

Performance oriented organization as reflected in the increased share of variable pay for workmen as well as management staff Development initiatives like Balanced Scorecard, Hays evaluation, Development Centers, 360 degree appraisal, Policy Deployment

Intense Training and Development initiatives across the organization focusing on business knowledge, functional skills and attitude.

Regular feel of the emotional pulse of employees as well as the customers through periodic satisfaction surveys.

Commitment to SHE not only for employees but also for the other stakeholders as reflected in working conditions, health management practices, product design, work related to ISO 9002 and 14001 accreditation, etc.

Active participation as a responsible corporate citizen focusing on community development initiatives, social upliftment and professional / academic interface.
27

Stimulating and encouraging empowerment, creativity and innovation To address the dynamic needs of the market, CUMI continuously reinvents the functioning approach to the customer.

Organizations Structural Change Learning new tools and technology. Annual /sales Conference Quality Improvement Steering Group (QISG): Product development and Product application teams

Stimulating and encouraging collaboration within the organization As an outcome of the Transformation Exercise, many Cross Functional Teams have been formed and work on the improvement projects paved way to team work and collaborative culture. They encourage Suggestions, CFT and SGA teams to go for external participation. Our teams have won many prizes in external events also. The continuous efforts in Total Employee Involvement related training has resulted in continuous participation of teams in different forums like QCFI, INSSAN, National Productivity Council and other participative forums like AU-TVS and winning awards. At the Group level also, we encourage our teams to participate in all events. The role of leadership is to encourage our employees to participate in TQM activities by way of committing resources of time and money. The culture at CUMI encourages and applauds innovation, by building the knowledge required to recognize opportunities, by honing the skills to develop inventive strategies and have the courage to carry them out.

Chairmans Award for Innovative Organization The culture at CUMI encourages and applauds innovation. At CUMI differentiation is a way of life - the one that pervades and touches everyone. CUMI won the Innovative Organization Award instituted for the first time in the Murugappa Group in the year 2003.

28

Ensuring a process for the development, deployment and updating of policy and strategy is developed and implemented The business strategies are encompassed into Balanced Score Card (BSC). This has been further deployed down to each individual.

HRM Practices CUMIs policy on Human Resources Planning CUMI will Endeavour to ensure effective staffing, the right person for the right position. We would also attempt to develop and optimize the internal human resources and its potential.

Recruitment Policy CUMI will recruit based on integrity, competency and the ability to work in a team. We would also endeavor to select individuals with leadership potential, customer orientation and quality focus. Above all, we also take the Value-fit of the individual with the group into consideration.

Policy on Career Planning CUMI believes that it is our responsibility to develop employees to their fullest potential so that future challenges could be met with existing talents.

Table.3 Succession planning CUMI identifies its potential employees who can generate operational and cultural excellence in work place. They are called as Change Managers. The selection of change managers is done through
29

Assessments 360 Degree Profiling Behavioral/Leadership Styles Functional Heads Feedback Identified Areas - Operational / Cultural Excellence

Development plan The 3 Cs of Retention of Talent at CUMI.

Challenge Compensate Competency

Performance Management System The Performance Management System is based on the Balance Score Card.

The Balance Score Card is the culmination of the Business plan and is the complete strategic map which identifies the strategic indicators and thrust areas of the Business. This Balance Score Card is the authentic document approved by the Murugappa Corporate Board.

Based on the Approved Balance Score Card the functional score cards are evolved. The monthly plans are then evolved from the above. These plans are reviewed on a monthly basis against the plan. The feedback and the learnings from the monthly reviews and course corrections are incorporated.

The Performance Management System is on line with Policy Deployment. The steps involved in Policy Deployment or Hoshin Kanri is explained in the table.

The system is designed to capture the objectives and measures in the Policy Deployment table drawn up for the current year.

30

The objectives and measures are to be clear cut, specific and quantifiable The appraiser and appraisee will jointly discuss and arrive at the best regrouping possible of the objectives.

In the discussions, the Appraiser and Appraisee agree on action plans including resources and support. This is summarized and signed off by both the appraiser & appraisee.

A review mechanism is also built in the system to ensure frequent monitoring of objectives and course correction, if necessary.

The review calendar is drawn up to regularly monitor the progress of the objectives and provide resources if any on the part of the appraisee.

Control charts are maintained at agreed frequency and reviewed

Policy deployment (Hoshin Kanari)

Evolve Long Term Policy Identify linking long term strategy Define objectives (what) Clarify methods (how) Pick Control Charts (visual charts) Deploy Establish Review Mechanism Corrective Steps

Compensation CUMI believes that compensation should be based on the performance of the individual and the individual performance is classified through a quantifiable / objective measure. The performance rating will be:

Exceptional Contribution Significant Contribution Good Contribution Not meeting the requirements Not suitable
31

Performance Linked Incentives The incentive, a part of the compensation and linked to Balance Score Card helped CUMI, initiate the process of :

Rewarding stretch, effort and risk taking Encouraging inter-functional and organizational perspective Providing thrust to sustainable processes Giving impetus to innovation and learning

Incentive is an important and integral part of the compensation package. It would be based only on the Achievement of Company/SBU Score Card, with weightings specified for each perspective. Rewards & Recognition CUMI has evolved a rewards and recognition scheme Kaizen Scheme: The objective of this scheme is to encourage and recognize management staff for their participation & contribution in Work/ Method/Productivity improvement and cost reduction exercises which benefit the organization. This scheme is applicable to all Management Staff up to MG6 including Management Trainees category of CUMI for their individual contribution. Suggestion Scheme: The objective of the Suggestion scheme is to encourage and recognize employees for their participation & contribution in Work/ Method/Productivity improvement and cost reduction exercises which benefit the organization. This scheme is applicable to all Operatives of CUMI for their individual contribution. Areas of suggestion: The suggestion shall be on the following areas :

To improve production / productivity New methods / devices improvement for simplification.

32

To improve quality of product / maintenance / service To improve general upkeep & cleanliness To eliminate wasteful practices To eliminate pilferage of material To improve process To reduce cost.

Q-Man Award: The Objective is to encourage and recognize employees for their participation & contribution in Work/ Method/ Productivity improvement and cost reduction exercises which benefit the organization. This is applicable to all Operatives and Staff of CUMI for their individual contribution. Best Sales Engineer Award: The objective of this scheme is to reward Sales engineer for their good work. This scheme is applicable to all Sales Engineer (Supervisory staff & Management staff) who have performed exceptionally well over & above their PD measures assigned to them in his or her area of work or outside their scope of work shall be eligible for the scheme. Muthiah Memorial Best Performance Award : The objective of this award is to encourage and recognize employees for their contribution in Breakthrough activities which benefits the organization. This Award is applicable to all employees in the Management and unionised cadres.

Innovative HR
Innovative Organizational Methodologies
E-Recruitment

Among the Murugappa Group, CUMI was the first unit to adopt the e-recruitment and later the tie-up with Naukri and Murugappa Group got established.

33

E-Learning CUMI was the first to establish the e-learning concept way ahead of the other companies. Virtu Versity - a concept developed by CUMI and an external agency scaled new heights in training. These e-learning enabled employees to learn at his/her own pace. Psychometric assessment tests CUMI has redefined its recruitment policy with the inclusion of the psychometric test for the recruitment of management staff. Once the candidates identified for the position clear the preliminary interview, they need to undergo the psychometric assessment tests which is organized through an external agency. The candidates key attributes and his potential strengths and weaknesses helps CUMI in making the selection & placement decisions and also the areas for improvement.. The psychometric test covers the personality scales and the ability tests and compares the same with the key attributes of the position identified in CUMI. Knowledge management council The KMC as it is known in CUMI is known for its wide range of initiatives in knowledge management. Some of the efforts are:

Intranet The Managementor.Com Knowledge Officer

Knowledge Management was judged as the Winner of the Best Innovation in the Human Resource Category by the Murugappa Group Chairman Mr. P.S. Pai CUFEST. CUMI organizes an annual Quality Festival, CUFEST, first of its kind in the entire Murugappa Group. This event was started in the year 1999 and held in different locations of CUMI. Every year the grandeur in which the participating units participates and wins is greatly improving. So also the quality of the event. The event captures the pulse of the employee involvement in its full
34

form-with events like SGA, CFT, Kaizen and Suggestion capturing the best improvement initiatives of each division. Employee satisfaction survey CUMI took the initiative way back in 1998, to understand how satisfied its employees are with its existing systems and practices. Feedback from the survey is given to the senior members in the BGMC for implementation of the areas of dissatisfaction, which are identified. The first follow up survey was done in 2000 to assess the effectiveness of the initiatives taken to address the areas of dissatisfaction identified in the previous survey and the second follow up in the year 2003. The survey is designed to cover all categories of CUMI-workmen, staff as well as management staff. Flexibility/ Multi skilling Earlier the workforce was working on the Single man -Single machine concept. And working to the norms- culture prevailed in the shop floor. The shift from working to norms to no-norms was made feasible in the workforce through a continuous amount of training programmes, which emphasized the Change Management. This paradigm shift facilitated the Customer Centric Approach. The workforce is now multi-skilled. This was achieved through the skill-matrix based training initiatives. CUMIs policy is to:

Provide a safe working environment Impart continuous education on Safety, Health and Environment hazards with stress on preventive measures and ensure Zero Accidents

Provide Personal Protection Equipment and ensure compliance to the same. Give priority for Safety, Health and Environment considerations while planning for new products / processes

Adhere to Safety, Health and Environment norms even beyond Statutory Requirements.

Job rotation/ Enrichment

35

The business requirements over the past few years had emphasized the concept of Job enrichment. For e.g., TQM initiatives, Lean Manufacturing, TPM, Six Sigma which were brought in as a part of the business requirement not only resulted in enhancement of the knowledge but also on effectively implementing the growing business needs. Communication channels CUMI always believes in transparent dialogue with its employees and over a period of time has fine-tuned a formal communication system vertical and horizontal, to support information flow and knowledge management. Sharing of best practices: The best practices and knowledge are shared in various forums across CUMI as shown in table.

Presentation in sales conference Annual Group HR & Finance meet In-house magazines DART/Red Indian Murugappa Group Best Practices Sharing session CFT/SGA presentations Monthly communication meeting

SHE Initiatives SHE: Safety, Health and Environment Initiatives CUMI is committed to protect its people, environment and property by continuously improving all its operations and provide a work place free of hazards. Objectives

Integrate safety health and environmental consideration into Business Planning. Comply with all applicable laws, regulations, standards and Codes of Practice
36

Monitor and Assess health, Safety and environmental Performance on a continual basis. Provide workplace free of hazards To be recognized as a responsible citizen

Key initiatives Safety

Reduce Accident rates both Reportable and Non Reportable Reduce Severity Rate and Frequency Rate in all divisions.

Health Employee Well Being and Satisfaction CUMI believes people are their asset. Therefore health towards its employees is reflected in the well-developed and well-conceived HEALTH PLAN CUMI has a tie-up with the Diagnostic centre / Laboratory / Hospital near the Unit to conduct the medical checkup as per the prescribed format. All employees will have to take up the medical check-up between April and February. In the case of Management Staff, the spouses can also get the medical checkup done at the prescribed diagnostic centre / Laboratory / Hospital. Communication / Education Under this preventive measure:

Health Camps are arranged every year. Guest lectures are arranged once a quarter.

Occupational health - To ensure that safety / protective equipment are provided to the employees and they use them while at work.

37

Information on health On-line information on health like clippings, pamphlets, etc. shall be provided at all units. In addition to this a regular bulletin is available in the Intranet which carries Curative Under Curative there are three phases:

Dispensary ESI coverage and/or Insurance scheme Chronic illness

Dispensary

First aid centre to direct accident / emergency cases to a nearby hospital where the company has a tie-up.

Treat employees for minor common illness. Maintains the health records of all employees, card index and other statutory records.

The employee health records are available online-Health Monitoring System. (Illustrated in the diagram) ESI coverage and/or Insurance scheme For those covered under ESI, hospitalization is taken care of by the ESI. For those who cross the salary limit for ESI coverage and where the benefits derived under ESI is not enough to meet the medical expenses, an Insurance scheme under the Cholamandalam Insurance Scheme is available. This caters to both the NMS and MS. Chronic illness Employees with chronic diseases (like diabetes, hypertension, and cancer) are identified. This scheme is drawn up to provide reimbursement of such expenses and also to extend interest free loans to employees.
38

Environment

Implementation of ISO 14000 in the major divisions is one of the significant indicator. Identifying the need in neighboring community by developing Employee Animators is an ongoing project.

For more details see environment policy

Training and Development Employee Education, Training and Development CUMIs Human Resource Strategy is to develop and sustain critical competencies and to leverage on these, through a facilitating structure and culture. Evolution of training CUMI underwent a transition in training- From Training to Learning. This was facilitated through

Job rotation Team work to resolve issues - in the form of TQM initiatives Sharing breakthroughs and learnings Flexibility / Multi skilling SHE initiatives Career Planning Development of Change Agents

This has enabled in creating a team of involved, responsive and innovative people. From 2000 to 2002, CUMI switched over from the Target on Training Mandays concept to Training for Business requirement approach. Employee Learning through Instructor Led Learning to Business Driven on the job training resulting in job enrichment.
39

The employee learning plans are:

Business Driven Personalised On the job / job specific

As per the HR strategy, the input for the training need identification is obtained from :

Business Requirements Skill matrix / Competency requirements Quality System Procedure-requirements Environment System Procedure requirements Performance Appraisal.

The needs identified are consolidated in the form of a training calendar. The program deliverables are met by finding the suitable internal or external faculty. Designing and promoting individual, Team, and organizational learning opportunities Individual Learning:

Fast trackers are trained through BSchool and ACME. Business Leadership Programme is a programme developed by Murugappa Group in strategic alliance with IIM, Bangalore. The potential managers below the age of 45 are identified to undergo this process. CUMI has to its credit 4 of its management staff among a select list of 26 for the year 2003.

HR policy on higher education encourages employees for expanding their learning horizon in India and abroad.

Team Learning CUMI Learning Centre (CLC) The ability to learn purposefully from our past and from our work and to work and to foster the learning of one another has become critical business skills. These skills are shared and developed across all levels of the organization. With this objective CUMI
40

Learning Centre was established. This facility is used extensively for team learning activities like CFT, SGA, seminars and conventions. Organizational Learning Companywide training for initiatives like TQM, Business Excellence Model, TPM, Lean Manufacturing was imparted from 1999 onwards. Customer Visits Employee industrial visit to companies with best practices with a view to implement the learnings. Employees have been sent to key customers like MICO, SKF, Maruti Udyog Ltd., Tata Motors, IP Rings and Rane to understand customer expectations and our product application. CUMI took the first step in conceptualizing and activating the Train the Trainer concept. The Functional Heads of the Abrasives Division were identified and were taken through a 4 day rolling out process. The trainers were given inputs on essentials of training through NIS-Sparta and were facilitated by an external agency. Knowledge management center CUMI being knowledge based and technology driven company, with a view to retain such knowledge base, KMC was established in 1999-00. Health Camps Supporting and engaging in activities that aims to improve the organizations contribution to society: CUMI has initiated structured need identification with the help of Madras School of Social Work in the neighborhood community. For example, infrastructure development in Schools, Village Hospitals and organizing Health Camps and safety camps. Some of CUMI's Corporate Social Responsibility projects in Chennai are given below:
41

Chapter-3 Learning/ internship experience

My internship at CUMI has been a valuable learning experience. At CUMI I never felt like an intern, I felt like part of the organization. I was given the same work as a full-time employee. From preparing salaries to analyzing labor law my everyday tasks were interesting and rewarding. HR works were not a easy field to understand, especially since I came into this internship with no HR experience. I had completed the works given but many times I felt confused. The work environment at CUMI is amazingly supportive. There is a feeling that CUMI employees are like family. I am sincerely grateful for the help I received from the entire team. My time at CUMI reinforced my belief that an internship is essential for anyone looking to go into the work world. Its no secret that the job market right now isnt great. An internship could not only develop our skills but also lead to employment. My experiences at CUMI, during my internship are: 1. The works given were new to me like salary preparation; but that gave the idea about how the works were done practically. 2. Different incidents during internship gave me the confidence to work in a organization, like preparation of JD (Job Description) and finding the matching resumes was a responsible job

and competing it well gave me lot of confidence. 3. During my internship I learned to be organized and disciplined. I used to get lot of emails regarding JD given at once giving a variety of tasks that need to get done. I need to organize the mails properly and arrange the CVs to a particular folder according to job location.

42

4. Sometimes during internship I had to take decisions. During attending the calls of the candidates for interviews I had to answer their queries which sometimes will be unexpected and I wont have time for referring my guide. 5. I learned to have a good attitude towards work without considering it as a negative aspect. The work competed in a proper manner will be finally appreciated. At the end of the day what does matters is the work done.

43

Chapter-4 Knowledge Gained

An internship is a way to get foot in the door and start to understand choosing career from a real world perspective. The classes in colleges teach the concept and theories but nothing takes the place of actual real-life experience. The knowledge gained by me during my internship at CUMI is: Understanding the field of interest An internship gets the opportunity to understand the interest in different fields. While doing an internship, there are more opportunities than do the work you are being asked to do, its the time to learn from people around. Clarifying things that are not clear through asking the employees and getting knowledge is an invaluable experience. Each day I got a better and better understanding of the career path I am interested in and the job to which I am working toward. Being involved with those around the organization gives the culture of the organization. Learning about the company and the industry In an internship, I had an excellent opportunity to learn about the company I am working for. What are their goals? What are their challenges? What do they make or sell? Who are their customers? Do they have other divisions, plants or sales offices? Who is the competition? Is this some place I would like to work for in the future?. All of these questions were cleared at the end of my internship. Internship also gives an opportunity to start learning about the industry you are. They only had a few projects asking me to do during my internship but still I had the opportunity to get the information that will help me in the future. I took time each day to learn something important about the company I am working for and the industry. Making valuable contacts

44

During internship I not only got chance to learn from experts, but also made contacts with important persons. In the future we need a resume with good job experience but we will also need people who can be references for our work. Internship is the opportunity to show our talent, skills and abilities and impress people so they will vouch for us as a person. Being on time, work hard; being positive and enthusiastic during internship will create a good impression on us. These values helped me to getting the offer of doing the main project in the same organization. Developing and improving our self During my internship, I took what I had learned and tried apply it. I started using the tips and tricks I learned and discovered. This increased my confidence. Each day I went with the belief that I am going to learn something important that will benefit in future. A - Ask questions of the experts you are working with L - Listen to the valuable insight and information being shared O - Observe how the company operates and how things are done T - Think about and reflect on your experience often and apply what you learn Internship at CUMI is an excellent first step in my career. It offerd many benefits to me and my future.

45

Chapter 5 Skill Development through Internships Programs

My achievement through the internship is fruitful due to my working skills which are essential to the career development have been enhanced. These skills include business communication skills, time management skills, risk management skills, problem resolving skills. The other significant experience I have gained through the internship is how to be a competent team member in a large organization. There are many useful and practical things that can be explored. For example, how a large organization structured, whats the main role of each functional department to play, how to perform as an ethical and professional team member, and the normal ways of communication. Upon completion of the internship program, I got the skills like: apply theories and principles to specific situations within the work environment function well within a team as well as in a leadership role demonstrate confidence in personal and professional skills understand the business world from an experiential perspective demonstrate advanced critical thinking and communication skills Overall explanation of the learning experience and personal development achieved Analysis of observations and experiences as relative to specialization and coursework

Other than these specific skills general skills achieved are: advanced oral and written communication skills Team work and leadership capabilities Experiential reflexivity Time management Work ethics Flexibility/Adaptability Tactfulness

46

Chapter 6 Specific Assignment or Research work

Task1:
The first task given to me was preparation of salary for the month of July. Salary is prepared through 3 kinds of forms. They are: P, Q, R forms. P form is for advances given or deductions due to damages. Q form is for leave taken by the employees. Then based on these the wage/salary form i.e. R form is prepared.

Task2:
The second task assigned was preparing database for the labor law. The document given to me contained the different cases filed under different courts in India. The task was to prepare the prepare data base by taking only the important points of the verdict.

Task3:
The third task assigned to me was to finding the matching profiles from the web portal Nakuri.com according to the job description given. The job descriptions given were as: JD1: The following are the details about the job of executive/deputy manager - sales and marketing Job title : executive/deputy manager - sales and marketing marketing tooling industries- channel/dealer management (Abrasives, power tools,

Department : Exposure cutting tools) :

Knowledge, Skills & experience: Educational qualification of BE/B.Tech(Mechanical) with 2-5 yrs of experience. CTC : 2.5 to 5.5 lacks

Job purpose: to manage channel sales primary/ secondary and also project sales handling to generate the maximum amount of profitable sales through the achievement of sales target and by making new and existing customers aware of the company's product range.
47

Key responsibilities: to achieve maximum profit annual sales target Attending and participating in sales meeting, product seminars, and trade shows.

JD2: The following are the details about the job of executive/deputy manager - sales and marketing Job title Department Exposure Job purpose Executive/deputy manager-sales and marketing Marketing FMCG/food industries To identify and generate potential customers for non woven scrub for home care need for private labeling/bulk packaging and increase sales of our products Key Identify potential customers for private labeling from FMCG/food/ home

responsibilities cleaning product manufactures Identify competitors activity and new entrants in this product segment Maintain awareness of company products and of relevant sales techniques to ensure that the sales roles are carried out effectively. Experience Job location Education CTC FMCG companies/ paints, (pidlite, HUL, asian paints, ITC, Cavinkare Mumbai/ Pune Graduation in science with 1-3 yrs experience 3-5 lacks

JD3: The following are the details about the job of executive/deputy manager - sales and marketing 1 2 3 Job Title Department Exposure Sales Executive Sales FMCG/ HLL/ PIDILITE/ ASIAN PAINTS- Channel/ Dealer Management 4 Job Purpose The SDP Executive plays a pivotal role in the company in: Ensuring adequate coverage& stocking for the company products Success of new product introductions

48

Managing future product sales& Feed back of quick and accurate market information to the company Achieving secondary sales target

Job location

Ahmadabad, Mumbai, Ludhiana, Gurgaon, Jaipur

6 7

Education CTC

Graduation with 1-3 yrs experience in sales Depending on the candidate

JD4: This is the job profile for the job Executive/ Deputy manager- sales& marketing-CIMCOOL Job Title Department Exposure Job Purpose Executive/ Deputy manager- sales& marketing-CIMCOOL Marketing Industrial lubricants/ Metal working fluids To generate the maximum amount of profitable sales through the achievement of sales targets and by making new and existing customers aware of the companys product range. Key responsibilities Generate maximum profitability Identify new sales opportunities Monitor customer accounts Maintain accurate records

Job location Experience Education

Rajkot(Gujarat) Channel/ dealer sales experience of 2-7 yrs BE/B.Tech with 2-5 yrs experience in sales

After finding the matching profiles I had to intimate with them and prepare the final interview list.

49

Task4:
The fourth assigned was to find the effectiveness of training from 250 feedback forms of training conducted at different locations and preparing the data base.

The data base should be included with effectiveness of training and when to implement, and expectations.

These were the tasks given to me during my internship atCUMI.

50

Chapter 7 Conclusion
Carborundum Universal Limited (CUMI), as a constituent of the Murugappa Group, is committed to high standards of corporate in all its activities and processes. CUMI looks at their business as the cornerstone for sustained superior financial performance and for serving all its stakeholders. Apart from drawing from the various legal provisions, the group practices are continuously benchmarked with industry practices. The entire process begins with the functioning of the Board of Directors, with leading professionals and experts serving as independent directors and represented in various Board Committees. Systematic attempt is made to ensure symmetry of information. Key elements in the organization working are transparency, internal controls, risk management, internal/external communications and good standards of safety and health. The Board has empowered responsible persons to its broad policies and guidelines and has set up adequate review processes During my internship period at CUMI I understood the way of works done in the organization and how they are achieving the success without compromising the values they believe. The experience at CUMI is a value addition to my career and it prepared me for the corporate environment

51

Bibliography / References
www.cumi.murugappa.com (10/10/2012) www.indianfoline/cumi.com (2/10/2012) www.ecnomictimes/organizations/cumi.com (10/10/2012) www.murugappa.com (10/10/2012) www.wikipedia/cumi.com (2/10/2012)
Annual Report of CUMI (2012)

52