CARBORUNDUM UNIVERSAL LTD.

EDAPPALLY

SUMMER INTERNSHIP REPORT

Submitted by
AKHILA GOPALAKRISHNAN

ASI17MBA05

in partial fulfilment of the Requirements for the Award of the Degree

of

MASTER OF BUSINESS ADMINISTRATION

Of APJ Abdul Kalam Technological University

DEPARTMENT OF MANAGEMENT STUDIES

ADISHANKARA INSTITUTE OF ENGINEERING AND TECHNOLOGY
KALADY
JUNE 2018

1
 DECLARATION

I AKHILA GOPALAKRISHNAN,T3 MBA Student Of Adi shankara Business School

Kalady, do hereby declare that this report “ A SUMMER INTERNSHIP REPORT AT
“CARBORUNDUM UNIVERSAL LTD, EDAPPALLY”, submitted in partial fulfillment for the
degree of Master of Business Administration, is a record of bonafide work done by me under the
guidance of Prof Dr.Madhu C.S ,Associate Professor, Adi Shankara Business School, Kalady. I
further declare that this report has not previously formed the basis for the award of any titles of
recognition.

Place: Kalady AKHILA GOPALAKRISHNAN

Date: 28/06/2018 REG No: ASI17MBA05

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 ACKNOWLEDGEMENT

First and foremost I obliged to the Almighty who showered upon us with the blessing and gave me
health and knowledge to complete this organization study successfully.

I take this opportunity to express my gratitude and indebtedness to the Principal Prof
Dr.DORAIRANGASWAMY, ASIET Kalady. For providing guidance, help and suggestions for the
successful completion of this internship report.

I express my heartfelt thanks to Dr..ELIZABETH GEORGE, HOD of ADI Shankara Business

School Kalady for his valuable suggestion and support to complete my internship.

I also express my gratitude to my faculty guide Prof Dr.Madhu C.S Associate Professor
department of management studies, ASIET Kalady,

I also express my sincere thanks to my Organization guide Mr. NIBU JOHN (HR Manager),
Mrs. MRIDULA K (Sr Manager Accounts) CARBORUNDUM UNIVERSAL LTD for their
help and support to complete this Internship.

I am greatly indebted to the cognizant faculty members of the ADI SHANKARABUSINESS

SCHOOL for their illimitable, boundless and unrecompensed efforts, which helped me to enrich my
understandings on various subjects. Recalled with love the involvement of all my classmates and
non-teaching staff of our college for their support.

Place : KALADY AKHILA GOPALAKRISHNAN

Date : 28-06-2018

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 TABLE OF CONTENT

Chapters Title Page Number

Introduction 6
Chapter1
Objective 6
Introduction
Company Profile 11

15
Chapter2 Product Profile

Mission,Vision and
Organizational Analysis Values 19

Organization Structure 61
Chapter3
Positioning Of The Intern Duties and
responsibilities assigned 63
&His/Her Role
to the intern

Chapter4 Contribution Of the

66
Contribution and intern to the organization
learning Learning From The
66
Organization
Chapter 5 Conclusion 69

Reference 70

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 CHAPTER-1

INTRODUCTION

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 INTRODUCTION

An internship is a unit of people, systematically structured and managed to meet a need

or to pursue collective goals on continuing basis. Internship conducted by Adishankara institute of
engineering and technology ,Kalady that helps the management students gain knowledge and
practical working conditions of an organization. The purpose of internship is to have an exposure to
the real life situations relevant to business areas and strengthen the conceptual knowledge gained
from the industry.It covers the study of the products, various department and other activities of the
organization.

The key objective of this internship is to gain knowledge regarding the working of various
departments of the organization i.e the functions of different department in an organization during a
particular period and also to understand about the concept of organization.

I consider myself fortunate enough to get an opportunity to undergo my internship with

Carborundum universal ltd Edappally. This progressive and forward looking organization constantly
strives for improvement in its systems and procedures so as to improve the organizational
effectiveness.

1.1 OBJECTIVE OF INTERNSHIP

• To understand the product profile of CUMI.

• To know the working methods and techniques of the organization.

• To know the various policies adopted by the company for the improvement of the company

• To understand the organizational structure and the functions and activites of various
departments and to know the objectives and aims of the company.

• To know the various policies adopted by the company for the improvement of the company
• To understand the organization structure of CUMI.
• To study about the financial, marketing and hr activities of the company
Secondary objectives
• To know the vision and mission of the organization
• To conduct a SWOT analysis of the organization.
• To know more about the products of the company

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 CHAPTER – 2
INDUSTRY PROFILE

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CARBORUNDUM UNIVERSAL LTD.

INDUSTRY PROFILE

NATURE AND CHARACTERISTICS OF THE INDUSTRY

Aluminium is mainly produced from bauxite. Over 90% of the world‟s bauxite resources are
concentrated on the tropical and sub tropical belt in Australia, guinea, Jamaica, Surinam, brazil and
india. Its applications are widespread and include spark plugs, tap washers, electronic
substrates,grinding media, abrasion resistant tiles, cutting tools, bio ceramics and laboratory ware
and wear parts etc.

Alumina or aluminium oxide is produced from aluminium ore also known as bauxite. Despite its
name, it has nothing to do with clay or black soil but resembles a flour or very white sand. Alumina
is then transformed in to aluminium through electrolytic reduction. One tone of aluminium is
produced from every two toners of alumina. Fused alumina is made in electric arc furnaces by
passing a current between vertical carbon electrodes. The heat generated melts the alumina. The
furnace consist of a water cooled steel shell and 6 – 8 tones batches of material are fused at any one
time. As a result it is used in the manufacture of abrasives and refractory.

Bauxite consists of 40 – 605 alumina, as well as earth silicon, ferrous oxide, and titanium dioxide. To
separate pure alumina , the bayer process is applied. The ore is heated in an autoclave with caustic
soda. It is then cooled and a solid residue is separated from this solution and calcined to produce pure
alumina.

Over the past 40 years there has been a continuous improvement in the technology used to produce
aluminium. The focus has been on the size of the electrolytic pot in which the aluminium is melted
and the amperage at which it is operated through the introduction of the prebaked anode
technology,which replaced the soderberg technology

About 89% of india‟s recoverable bauxite reserves are of metallurgical grade. Orissa,Andhra
Pradesh, Madhya Pradesh, Gujarat, Maharastra and Bihar are the ptinciples states were bauxite
deposits are found in the country with Orissa and Andhra Pradesh accounting for bulk of it.

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 An abrasive is a hard, tough and water resistance substance for grinding and polishing operations.
Manufactures through a complex and high technology process, these abrasives are in metal removal,
cutting and finishing operations in almost all industries.

Abrasives market covers wide variety of materials used on large scale in various industries such as
transportation, metal fabrication, machinery and electronic equipment. General application of
abrasives material includes grinding, tumbling media, cutting wheels, tool sharpening and metal
cleaning. Some of the high end industrial application of abrasives material market are peening, de-
flashing , paint stripping, blast cleaning and de- burring.

Additionally, trend in global abrasives market such as use of abrasives in blast cleaning and water jet
cutting technology in industrial applications for achieving faster and efficient operation is increasing
significantly and has drastically contributed to the increase in demand for the abrasive products.

THE GLOBAL SCENARIO

In recent years there has been an upsurge in the price of aluminium , large due to increased demand
from china and, to lesser extent, India. While supply has kept pace, partly through the expansion or
reopening of older, less competitive factories, which are often in areas that once had an advantage
with respect to energy costs. It is forecast that there will be a shortage of global aluminium smelting
capacity within five years.

The aluminium, alumina and bauxite industry must focus on innovative measures to come out of the
global recession. For this, the industries should focus on the optimum use of the capacity, effective
utilization of manpower and raw materials, adoption of innovative marketing strategy, waste
utilization and use of modern technology in the production process. Such important indices need to
look at with seriousness for reviving the growth in this sector.

Aluminium oxide industry is an industry that migrates to wherever the comparative advantage
happens to lie and, to be economic, must be undertaken on a large scale requiring large long term
base load electric power. The two regions are also home to important international sources of
bauxite, the main raw material for the production of

aluminium. Moreover, a large plant for refining bauxite into alumina which is then smelted in to
aluminium is nearing completion in guinea. This suggests that specific countries or group of
countries could have a comparative advantage in developing an integrated aluminium industry,
including the mining and refining of bauxite in to alumina and smelting of alumina into
aluminium.The global abrasives market which is a major user of alumina is estimated to grow two
told in terms of market revenue, with a double digit CAGR for the forecast period. The global
abrasive market is segmented in seven key regions which are North America, Latin America,
Western Europe, Eastern Europe, Asia Pacific, Middle East and Africa and Japan. As of 2013, Asia
Pacific abrasive market dominated the global abrasives market in term of volume followed by
Western Europe and North America. The growth of Asia Pacific abrasives market is supported by

9
various factors such as increasing production of automobiles, electronic equipment, medical devices
and packaging especially in emerging economies such as India and china. The government norms on
the use of silica abrasives, volatile prices of raw material in production of abrasives are the major
challenges of the global abrasives market.

Here is a list of the biggest abrasive suppliers in the world:-

• SAINT GOBAIN

• TYROLIT

• SAIT ABRASIVI

• SIA ABRASIVES INDUSTRIES

• WINOA GROUP

Due to rising demand of loose abrasive grains from abrasive product manufactures, the loose grain
segment is estimated to record strong growth during the forecast period in the abrasives market. As
of 2013 use of abrasives in machinery is the predominant industry for abrasives. This is followed by
metal fabrication; transportation and electronic equipment are estimated to record robust growth due
to higher demand for automobiles and electronic appliances. Apart from this use of abrasives in
construction, cleaning, maintenance, power generation and medical devices are expected to rise
significantly in the coming years thus driving demand in global abrasives market.

THE INDIAN SCENARIO

The Indian Abrasives industry is catered by a large few players and numerous small players that
specialise in selected products where imports from china cater to the lower end of market. Due to the
soft market conditions in many advanced economics, India is becoming a focus market for major
global players resulting in intense competition. The market is getting increasingly crowded by
overseas competition and low cost imports from ASEAN countries. The world abrasives market
which is currently valued at approximately USD 36 billion is estimated to reach USD $51 billion by
2019. North America and Europe together account for 50-55 per cent of the abrasives consumption

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followed by china with 17-20 per cent. The Indian abrasive market size is estimated to be above INR
25 billion.

In India, the abrasive industry is dominated by Carborundum Universal and Grind well Norton,
which command 70% of the Indian abrasive market size. The bonded abrasives segment and the
coated abrasives segment are important segments in the Indian scenario and contribute maximum in
terms of revenue to this industry due to higher comparative margins. Beside the two top players,
there are several abrasives marketed by China, Japan and Europe. The abrasives from china are
generally the lower end ones. Super abrasives have been seeing growth in the past couple of years
and this segment is dominated by the German company, wendt, which commands 35% of the market
share in this segment.

The abrasive industry caters to industries such as steel, automobiles, auto components, general metal
fabrications and woodworking. The dependence of the industry on each one of them is about 15%
each and therefore the industry enjoys less dependency on these related industries.

COMPANY PROFILE

CUMI was founded in 1954 as a tripartite collaboration between the Murugappa Group, The
Carborundum Co., USA and the Universal Grinding Wheel Co. Ltd., U.K.

The company pioneered the manufacture of Coated Abrasives and Bonded Abrasives in India in
addition to the manufacture of Super Refractories, Electro Minerals, Industrial Ceramics and
Ceramic Fibres. Today the company's range of over 20,000 different varieties of abrasives, refractory
products and electro-minerals are manufactured in ten locations across various parts of the country.

With state-of-the art facilities and strategic alliances with global partners, CUMI has achieved a
reputation for quality and innovation.CUMI is one of the five manufacturers in the world with fully
integrated operations that include mining, fusioning, wind and hydro power stations, manufacturing,
marketing and distribution.

Almost all of CUMI's ten manufacturing facilities have received the ISO 9001:2008 accreditation for
quality standards. A well connected marketing and distribution network of offices and warehouses in
India and abroad ensure that service to customers is given prime importance.

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CUMI's constant innovation and product up gradation, through in-house R&D and strategic alliances
with global leaders in grinding technology, have not only ensured it market leadership in India and
abroad, but also international recognition as a manufacturer of quality abrasives and a provider of
total grinding solutions.

CUMI's products are being exported to 43 countries spread across North America, Europe, Australia,
South Africa and Asia.

HISTORY

CUMI was established as a result of diversification from banking business through cycle
manufacturing with the intent to manufacture abrasive materials. CUMI's parent company, the
Murugappa Group, made a tie up with the

Carborundum, UK, a subsidiary of American abrasive manufacturer, Carborundum, USA and the
Universal Grinding Co. Ltd., UK in 1950. The result was

the Carborundum Universal of Madras. Then it was renamed and incorporated in 1954 as
Carborundum Universal Ltd (CUMI)

ESTABLISHMENTS
Initially CUMI was founded to manufacture the core products for the collaborating companies. Later
the company established its first bonded abrasive plant

at Chennai with the facility acquired from Ajax Products and began its manufacturing in the
abrasives platform. With the intention of producing technical ceramics for high temperature
insulation products CUMI has made joint venture with Morgan Crucible Plc. UK resulted in the
establishment of Murugappa Morgan Thermal Ceramics Ltd in 1982 [3]

The company has laid a strong foundation in Engineered Ceramics through number of joint
ventures. In 1991 Wendt (India) Ltd, a joint ventured company of Wendt GmbH, Germany and The
House of Khataus, was merged with the CUMI. [4] CUMI's first Industrial Ceramics division was
established in Hosur, Tamil Nadu as a technical partnership with Coors Ceramics, USA in 1991.
[5] Later it was expanded with the unique Metallized Cylinders Plant.

As a part of expanding their presence, in 2005 the company started CUMI Middle East FZE in Ras
Al Khaimah. In order to strengthen their global presence CUMI bought Abrasive Enterprises Inc.,
Canada, for $2.24 Million by 2006. [6] After a year CUMI established CUMI International Ltd in
Cyprus.

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ACQUSITIONS
Within a decade, after the withdrawal of the collaborators, CUMI acquired Ajax Products Pvt Ltd.
CUMI stepped up in abrasive industries by acquiring the Eastern Abrasives Ltd, Kolkata in 1978. In
1997 Cut fast Abrasive Tools Ltd, Eastern Abrasive Ltd, Cut fast Polymers Ltd and Carborundum
Universal Investment are joined with Carborundum Universal Ltd. Within a year of acquisition of
Sterling Abrasives Ltd and SEDCO in 2003, CUMI acquired CUMI Australia Pty Ltd., Australia. In
2007 the company took over a china based firm Sanhe Yanjiao Jingri Diamond Industrial Company
Ltd and Russian Volzhsky Abrasive Works. [8] The further acquisitions are followed in 2008,
Foskor Zirconia Ltd, South Africa became a subsidiary of CUMI

DIVERSIFICATION

Besides manufacturing, marketing and distribution CUMI also involved in a diversified works like
mining, power generation and TOT agreements with various organizations. CUMI acquired
Bauxite mines at Bhatia and Okha of Gujarat in India, Silicon Carbide plant in Koratty, Kerala and
a Brown Aluminium Oxide grains Plant at Edapally, India. CUMI established a 12MW
Hydroelectric power plant at Maniyar, Kerala in 1994 and a 5.5MW Wind mill at Nallur.

CUMI made a technology transfer with Answer Technology Inc., USA for advanced monolithic and
a technical collaboration with National Institute for Interdisciplinary Science and Technology of
India, Bhabha Atomic Research Centre of India and Pennsylvania State University of USA for the
development of advanced ceramic technology.

CUMI DIRECT
CUMI Direct was started in the year of 2005. CUMI direct is selling

• Ware house Equipment - Pallet Truck, Stacker, Table Lifts, Movable Dock Ramps, Stationary
Dock Leveller, Tail Lifts, Fork Lifts, Plastic Pallets, Caster Wheels.

• Material Handling Equipment - Shopping Trolley, Hand Cart

• Power-tools - CUMI power tools, METABO Power Tools

• Industrial Ceramics - CUMI Industrial Ceramics Products

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• Electro Minerals - CUMI Electro Mineral Products

•Abrasives - CUMI Abrasive products - Thin Wheels, Rolls, Grinding Wheels, Non-Woven Wheels,
Coated Abrasives, Porous Tiles, Super Abrasives, Resonoid And Rubber, Vitrified Ranges

• Metal Working Fluids - Cleaner, Forming fluids, Neat Oils, Rust Preventives, Water Soluble.

• Strapping Tools - Tensioner, Sealer.

• Super Refractories products - Fired Refractories, Monolithic Products

Most of the products are granted CE and GS certificates.

MAJOR DIVISIONS

• Abrasives

• Coated Abrasives

• Bonded Abrasives

• Electro minerals

• Ceramics

• Industrial Ceramics

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• Super Refractories

• CUMI DIRECT - Online E commerce Platform

• Ware house Equipment

• Material Handling Equipment

• Power-tools

• Industrial Ceramics

• Electro Minerals

• Abrasives

• Metal Working Fluids

• Strapping Tools

• Super Refractories products

PRODUCT APPLICATIONS AND MATERIALS

The range of applications of different divisions like material removal, polishing the rough surface,
fine finishing by the Abrasives division, wear resistant, heat resistant, liners and metallized ceramics
by the Ceramics division, heat resistant, containment products from Super refractories division and
the raw materials for abrasives and refractories by the Electro minerals division.

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• Abrasives

• Coated Abrasives

• Bonded Abrasives

• Processed Cloth

• Polymer Resin

• Metal Working Fluids

• Ceramics

• High Alumina

• Reaction bonded Silicon Carbide(RbSiC)

• Yttria partially stabilized Zirconia(YPSZ)

• Sintered Silicon Carbide

• Zirconia

• Al-Titanate

• MgO-Partially stabilized Zirconia(MgPSZ)

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• Electrominerals

• Brown Fused Aluminum Oxide

• White Fused Aluminum Oxide

• Calcia Stabilized Zirconia

• Ziconia Mullite

• Alumina Bubble

• Silicon Carbide

• Calcined Bauxite

• Agri Input products

• CUMIjal

Joint ventures

• Wendt (India) Limited

• Murugappa Morgan Thermal Ceramics Ltd.

• Ciria India Limited Subsidiaries

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• CUMI Abrasives and Ceramics China Limited (CACCL)

• CUMI America Inc.

• CUMI Australia Pty. Ltd. (CAPL)

• CUMI Canada Inc.

• CUMI International Limited, Cyprus

• CUMI Middle East-RAK

• Cellaris Refractories India Limited

• Foskor Zirconia Pty Ltd-South Africa

• Net Access India Limited

• Southern Energy Development Corporation Limited (SEDCO)

• Sterling Abrasives Limited-Ahmedabad

• Volzhsky Abrasive Works-Russia

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VISION
To be a globally admired ceramics company.

MISSION
To be a partner of choice for world leaders in innovation and create value for our customers.

VALUES
The Spirit of the Murugappa Group is inspired by a set of enduring values and beliefs called the
“Five Lights”– a guide to everyday excellence. It clearly defines a way of life and is demonstrated by
these strong values we live

By: Integrity, Passion, Quality, Respect and Responsibility.

CUMI ELECTRO MINERALS DIVISION OVERVIEW

Carborundum Universal Ltd, Edappally unit was founded in November 1962. Sri. V. V. Giri is the
founder of the Edappally unit. It is one of the major Electro Minerals divisions of carburundum
Universal Ltd. The average production was 65 tones during the period 1965 and it was a small scale
industry at the period. In 1966 – 1967, the production was increased up to the level of 850 tones.
Now the production is around 2600 tones per month. CUMI, achieved the prestigious commendation
award for energy conservation from the Government of kerala for the year 1977 – 1988, in the major
industries category.

The Electro Minerals Division of CUMI situated In Edappally has got two plants namely PLANT 1
and PLANT 2.

PLANT 1:-

In this plant brown fused alumina is the main product. Bauxite, Coal and Iron borings are the raw
materials of the brown fused alumina. In Plant 1 pot furnace is used for the production of the raw
materials of the brown fused alumina. The raw materials are fused in the furnace approximately at
1200 deg C.

PLANT 2:-

This plant was started in 1994 as a part of expansion of the company. The capacity of the plant is
1700 tons per month. In this plant Tilt furnace is used for production of various electro minerals.
White fused alumina is the main product of this plant. It is mainly used for the manufacturing of
grinding wheels, polishing purposes, paints, abrasives etc.

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Table showing major products of fused alumina and its uses:-

PRODUCTS USES

Brown fused alumina Manufacturing of grinding wheels,

abrasive, polishing purpose, shot blasting
purposes etc.

White fused alumina Manufacturing grinding wheels, coated

abrasives, paints etc.

High alumina refractory cement It is used as a binder for all types of

casteable refractory.

The major customer industry of fused alumina includes the following:-*Automobile industry

*General metal cutting industry

*Polishing metal surfaces

*Marine paints

Table showing major alumina production companies and their market share

COMPANY MARKET SHARE

CUMI 35 – 40%
Grindwelll Norton Ltd 30%
Snam Abrasive Pvt. Ltd 10 – 15%
Orient Abrasives 20%

COMPETITORS
*Grindwell Norton Ltd

*Orient Abrasive

*Wendt Ltd

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COMPETITORS IN EMD
There are only few companies dealing in the field of electro minerals. Therefore there are only few
competitors. The major competitors in the domestic market are Saint Gobian (Grindwell Norton Ltd)
and Orient Abrasive. The major globel competitors are Washington Mills Pvt. Ltd, Saint Gobian ,
and Tray Bucket etc.

COMPETITORS ANALYSIS

Organization CUMI Grindwell Orient Wendt

Norton abrasives
Market 3806.21 3507.32 572.47 376.00
Capital
Sales 1299.28 1110.39 182.91 118.17
Turnover
Net profit 116.26 101.02 12.31 9.74
Total assets 942.73 619.30 180.90 89.90

QUALITY POLICY OF CUMI

Carborundum Universal Madras India provides quality products and services to focus on total
customer satisfaction. It‟s achieved through total employee involvement, supported by proper
systems and processes.

AWARDS AND ISO CERTIFICATION

CUMI Edappally, achieved the prestigious commendation award for energy conservation from the
Government of Kerala for the year 1997 – 1998, in the major industries category.

All the manufacturing facilities of carborundum universal are ISO 9001 : 2000 and ISO 14001
certified for quality standard and environment friendly manufacturing practices respectively.

FUTURE PLANS
 Implementation of new chemical plant called cellars at kalamassery
 Up gradation of substation for meeting increased power demand
 Integrated programs for cost reduction and increasing profits.

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 VITAL STATUS

Name Carborundum Universal Limited

Type Public
Founded 1954

Industry Engineering

Headquaters Chennai, Tamil Nadu, India

Key People M M . Murugappan

Products Abrasives, Electro Minerals, Industrial

Ceramics

Nature of Products Industrials and consumer

Revenue INR 22 Billion

Parent Murugappa Group

Website www.cumi.murugappa.com

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ORGANIZATIONAL STRUCTURE
An organizational structure refers to the determination of organization system of enterprise . It
determines the programme and procedures by which the administrative relations of an enterprise are
defined and established. No activity of the organization can go out of this structure. As the policy of
enterprise determines the limits within which the enterprise has to work. In the same manner
organization structure determine and defines the shape and size of the enterprise according to which
the administrative and organisation decisions have to be taken. It is also the framework of activities
of the enterprises, it may also be considered as the map of the organisation that deals with
organizational arrangement.

ORGANISATIONAL STRUCTURE OF

CARBORUNDUM UNIVERSAL LTD

Managing Director

SBU Head

Head Head- Head

Head-
Manufact Manufa SBU
Head- Head – Head QA &
uring cturing& Accou
Marke SBU Techn- Proces
(Koraty,K Projects nts &
akkanad, (Edapall ting Comm HR ology s
Control
Maiyar) y) ercial

23
DEPARTMENTAL PROFILE

 Human Resource Department

 Production Department

 Commercial Department

 Shipping Department

 Finance Department

 Quality Control Department

 Research and Development Department

 Systems Department

 Marketing Department

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FUNCTIONAL AREAS

PRODUCTION DEPARTMENT

Production Department Hierarchy

Sr. Vice President

AGM Mfg

Sr.Manager (BFA) Sr Manager( WFA)

Furnance Quality control Grain processing

Supervisor Supervisor Supervisor

Jr. Supervisor Jr. Supervisor Jr. Supervisor

Operatives Operatives Operative

25
The Production Department is concerned with the manufacture of products. This will include the
maintenance of the production line and other necessary repairs. The works department may also
have responsibility for quality control and inspection.

Production department is headed by GM and supported by asst.GM. There are two managers for
two plants that are manager plant 1 and manager plant 2. These managers have equal role in the
three sub department of production department. The three sub departments are furnace, quality
control and graining process and shipping. In furnace sub department there is supervisor, junior
supervisors and operatives. In graining process and shipping process there are also supervisor‟s
junior supervisors and operatives.

The division has witnessing improvement in productivity which helped to improve operating
profit especially in brown fused alumina. Increased power generation from the hydroelectric
plant has augmented the growth in operating profit by lower power cost. New face setup for
production of value added by products and the initial response is encouraging. Facilities were
also setup for semi friable grains and the market for these products has been established.

The Electro Minerals Division (EMD) at Edappally has two plants. Plant 1 with BFA (Brown
Fused Alumina) and Plant 2 deals with WFA ( white Fused Alumina).

26
 Raw Material Storage

Raw Material Handling

Weighing

Raw Material Mixing

Furnacing
Shell Cooling

Pig Cooling

Breaking

sledging Scrap Recycling

Crusing

Magnetic Seperation Weighing Crude Forwarding

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Production Capacity

Production capacity of a plant is 1000 tons per month and of plant 2 is 850 tons per month.

Plant 1 :BFA, which is used as the raw materials for grinding wheels, crane paper etc. Calcined
alumina, coke and iron boring are the raw materials used for the production of Brown Fused
Alumina.

Plant 2: WFA, which is used as vitrified abrasive and highly purity refractory. Calcined alumina
electrodes and electricity are the raw materials used for the production of WFA. Production
process of both the WFA and BFA are the same.

PRODUCTION PROCESS

Raw materials are taken from the go down through elevator to the storage bin. The raw materials
for producing Brown Fused Alumina are calcined alumina, iron boring, char fines and scrap etc.
In case of white Fused Alumina, the raw materials are taken through blender were all these are
blended for 6 minutes. From blender through elevator this mixture is stored in bins out of which
11 bins are carried to furnace as 4:3:3 ratios. For producing the raw materials are furnacing at
2150c.

In the case of WFA, the raw material is furnacing at 1450c for 6 hours. Then the furnace is
cooled for 3 hours. Then it is rolled out and the shell is removed with the help of carne and pig
(pig is the used state of Alumina) the pig is shifted to pig yard and allowed to air cooling for 5
days. From the pig yard the pig is taken to the break yard. In the break yard, the pig is broken by
dropping an iron ball weighing about 2.5 ton, which is lifted with the help of electromagnet. The
pig is thus broken and crushes.

From it, the good parts for further processing like the crude arc selected and the remaining scarp
is selected for using it as a part of raw materials. The crude is then fed into the jaw crusher,
which breaks it into small pieces. The crude is then conveyed to the grain processing plant. One
pig gives 8 - 9 tons of aluminium oxide.

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The Basic operations taking place in grain processing are crushing and grinding. The sizes 4
inches are the inputs to grain producing plant. In the first stag
stagee the crushes crude is passed
through 36 tons crusher where its size is minimized to 0.75 mm. after this is a series of primary
as well as secondary roll crushers taken place. From the secondary roll crusher the grains are
passed on scalper.

Grains used forr bonded and refractory are then passed through can any mills for shaping the
grains with the help of magnet the grains are passed through grades, were the grains are
separated in to different sizes and collected into bins.

For manufacturing vitrified grains

ns are further passed through a high intensity magnet separation.
The grains are passed to deck grader where the grains are separated and collected into bins. Then
the quality is checked and packing is done as per customer specifications
specifications.

Work Shifts

The company works in 3 shifts:

1. 12AM – 8AM (shift A)

2. 8AM – 4PM (Shift B)

3. 4PM – 12AM(Shift C)

4. 9AM – 5PM(General shift D)

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Application of Product

• Bonded Abrasives : BFA is used for manufacturing for grinding wheels, which are used on
metals of high tensile strength and in paper and clothes. Bonded abrasives industry is mainly
meant for auto ancillaries, bearing and other engineering industries.

• Coated
oated Abrasives : The coated abrasives industries makes parts of automobiles, hand tools,
sanitary fittings, wood and leather pads.

COMMERCIAL DEPARTMENT

Commerical Department Hierarchy

30
The main function of this department is procuring the raw materials and other required materials
for the company. Commercial department invites quotation from various suppliers and make a
vendors list on the basis of some criteria basically based on their previous experiences, quality of
product, delivery speed and
nd price which is called vendor rating.

The department issues materials as per the order given by the concerned departments through
Material Requisition (MR). If the required material is out of stock, commercial department head
invites quotation is chosen and the purchase order is placed. On the arrival of the material, it is
checked and issued to the concerned department.

31
If the departments require any materials, they will place a material requisition to the commercial
department. If the required material is not in the store, the store manager places a purchase
requisition (PR) to the plant manager.

Authorization:

Purchase requisition is checked by the plant manager and approved for the quotation.

Quotation:

Commercial department invites the quotations from the vendors.

Takes the least quotation:

Commercial department selects the least quotations.

Purchase order:

Commercial department makes the least quotations with the consideration of their previous
experience, quality of the product and delivery speed then placing a purchase order to the
appropriate vendor.

Material collection:

Where the materials are reached to the company, the store manager inspects the materials and
then issues to the concerned department.

Payment for the material

Payments are done by the way of cash on the spot of delivery.

Store:

Main raw material is alumina Calcined supplies mainly by INDICO, NALCO. The company is
considering purchase from other source also. Every item is attached with a „Bin Card‟, which
has UNIX CODE NUMBER consisting of 14 digits. The card has the description of the item,
date of the supply, balance, signature, remark and stock number.

CUMI has a very good store. In this store, they divide the entire inventory into 3 classes for
controlling the inventory. These are: A-class items, B-class items and C-class items.

A. Class items: This class items are very closely related to the production process. They always
keep tight control on this class item because if it not supplied in time it may affect the production

32
B. Class items: Although this class items are related to the production. It has not much
importance to the production. They keep moderate control on this class items.

C. Class items: This class items are not directly related to the production. They have less control
over these items. This type of inventory control helps to the easily handling of the materials.

In the store, they also follow JIT inventory systems. It means that required materials are
purchased only after getting the material requisition, so that it need not kept for a longer period
hence can reduce wastage. As the vendors are very close to the company, they can purchase
materials according to the requirements. Therefore, there is no need for bulk purchase.

Some of the vendors who supply on time are:

*Goodwill Enterprises

*Rose Bearings

*S N Industries group

*Divya Gas Agency *Jose Electrical

This JIT inventory system helps to avoid unwanted cost, accumulation of stock and destruction
of materials etc.

Some items in stores:

*Wiper seal

*Element for return line filter

*Shevaron seal

*Vent valve

*DC valve

*Welding electronics

*Rusto line oil

*Molo graphic tape

*Mesh frame

*Coupling bolt with MIC nuts etc.

33
MAINTENANCE DEPARTMENT

Maintenance Department
nt Hierarchy

Main functions of maintenance department

1. Repairing works

2. Cleaning works

3. Maintenance according to needs

The main responsibilities of this department are to ensure that no interruption occurs in the
production process. For this equipment should be maintained properly. For this purpose, their
function can be classified into two:

34
1. Preventive Maintenance

“Prevention is better than cure” CUMI believes in this proverb.

Every Sunday maintenance operators will inspect and does the maintenance work in the whole
plant.

2. Breakdown Maintenance

If any breakdown occurs, the concerned department will send a complaint to the maintenance
department with the help of personal computer (ERP system RAMCO No.2). Then the
maintenance department head issues a work order pending on man power available. They will try
to rectify the root cause of break down and bring the machine to the production process.

Use of personal protective Equipments:

PPEs are one of the major factor to tackle many problems. The effective utilization of PPEs
wherever required minimizes injuries. The company has adopted s strategy regarding its usage.
The management has warned the concerned employees about the consequences of not using
these PPEs. It also considers taking disciplinary action against employees failing to use them at
his work place.

The important PPEs provided are:

 Helmets
 Masks
 Gloves
 Ear plugs
 Safety shoes

35
QUALITY CONTROL DEPARTMEN
DEPARTMENT

Quality Control Department Hierarchy

CUMI is renowned for its quality, not only in electro minerals but also in all their products such
as abrasives and ceramics. It was proved during the Chinese invasion of the market some years
back when the Indian economy was opened to the outside world. The Chinese came out o with low
quality and cheap product did not survive long but CUMI withstood all the problems and went
on to become world‟s‟s best seller.

Quality Policy of CUMI:

• Customer Expectation

• Total Commitment of implementing of an effective quality management system

• Total employee involvement.

36
• Building mutually beneficial relationship with supplies.

• Enhancing employee competence through education and training.

• Continual technological development to fulfil changing needs of customer.

Responsibility of quality department is checking the quality of raw material because; the quality
of the final product is primarily depending on the raw material.

Quality is checked during;

• Raw material is taken for the production.

• Mixing the raw materials.

• Furnacing.

• Pig yard.

• Crushing.

• Before packing the final product.

There are two laboratories in CUMI for checking the quality, they are:

• Chemical lab

• Physical lab

In the chemical lab, they check the chemical properties such as gravity, percentage of weight of
each metal in the product, fusion level, and combination of the product etc. In physical lab, they
check the free iron, HM (hand magnet), bulk density and size analysis. Final checking of the
product is done in the bin. Quality analyser checks the each bin and put a bin card. If the bin card
colour is green, that bin contains the product is accepted and bin goes to the packing section. If
the bin card colour is red, that bin contains the product is treated as rejected. If the bin card is
yellow, they reserve that bin contains the product for recycling. They follow Total Quality
Management (TQM) system for sustaining and improving the quality of the products. The TQM
values followed by the company are:

• Excellence in all aspects of business.

• Customer first attitude.

• Total involvement.

37
• Emphasis on leadership.

• Continuous improvement.

• Improving quality of life of the employees and society.

• On time delivery.

CUMI maintain their TQM through various activities. They are:

Five S: SEIRI, SETON, SEIKESTSU, SISO, AND SHITSUKE are the various steps taken for
ensuring proper segmentation and quality standards.

SERI (Sorting)

• Segregate required, useable, rework able and obsolete items.

• Dispose of unwanted items.

• Clear off walking.

SEITON (Systematic)

• Use labels, colour codes for easy identification

• Use index for files records, drawings etc. to facilitate irretrievability.

• Plan storage with accessibility.

SEISO ( Shining)

• Inspect and clean the supply lines, go downs, scrap yards and gardens.

• Clean up workplace, machine and tools after use.

• Identify root causes of loud noise, vibration, heat build-up in equipment and take
remedial action.

SEIKETSU (Standardisation)

• Develop standards.

• Establish checking procedure.

• Create visual controls.

• Devise ways and means to expose problems. SHITSUKE (Self – discipline)

38
• Develop action plan for maintaining the set standards.

• Give unambiguous advice/instruction every associate.

• Carry on 5s activities as a matter of habit and enthuse others to practice 5s.

• Conduct self – audit

Quality audit

A systematic and independent examination to determine whether quality activities and related
result comply with planned arrangements and whether these arrangements are implemented
effectively and are suitable to achieve objectives. The company has been following KAIZEN
Japanese scheme for continuous improvement in all activities of the business. This scheme
means that the quality of the products or services is determine by its uses, efficiency and for the
money, comparison with other products and some other criteria etc. These parameters are
varying depending upon the situations. So there are no proper measures to determine the quality
of products and services.

ISO Certification

CUMI has got two ISO certification, ISO 9001 – 2008 and ISO 14001- 2004, ISO 9001- 2008
certificate for the quality assurance in design, development, production installation and servicing.
And ISO 14001 – 2008 is getting for the environment policy. Because the company which do not
cause any damage to the environment.

39
RESEARCH AND DEVELOPMENT DEPARTMENT

R&D Department Hierarchy

CUMI has a good R & D department, which is engaged in the development of new products and
the existing products R & D is done on the basis of the market demand, research and customer
specification. Moreover, the company policy regarding R & D is that 6% of its scales should be
from new products. The R & D has a full
full-fledged
fledged pilot plant with facilities of fusion crushing
and grading. This section continuously tries to improve the product quality, its application,
applicati
production process, etc This department always interact with var
various
ious universities in India and
abroad for products development. This department also gives the opportunities to different
institutions to do project works.
40
FINANCE DEPARTMENT

Accounts Department Hierarchy

Hierarchy:

Duties of the accounts assistants include cash transactions, accountable payable, tax remittance,
payments and vouchers, etc.. Duties of the supervisor are maintaining the trial balance, capital
expenditure and debt management, etc. A responsibility of the accounts manager is making
monthly reports,
s, auditing and fund management etc. AGM (accounts) has the full responsibilities
responsi
of accounts department

The accounts department at Edappally plant does book keeping, accounts and reporting
functions. It undertakes the work of play sheet preparation of sta
staff
ff and workers payment of bills,
vouchers and other financial transaction. They also prepare financial reports of the company. All
major financial decisions are taken at corporate office (Chennai). This department also keeps
income and expenditure accounts
accounts,, which include the sale and disposal visible cost, contribution,
41
fixed overhead, operating and non-operating income etc. The corporate office also provides
funds for working capital requirements. Departmental budgeting is also function accounts
department.

Major functions of accounts department

• Keeping depreciation of account

• Preparing income and expenditure account

• Preparation of budget for three years

• Departmental budgeting

• Prepare management reports

• Coordinating the auditing functions

• To prepare business plan 3+1+3

Capital Structure

CUMI‟s capital structure is consist of equity share capital, preference share capital reserves and
surplus, long term loans deferred tax liability .

Source of funds: CUMI‟s main source of fund is from corporate office (Chennai) issuing of
share and short term loans from the companies‟ consortium of banks like SBI is other source of
fund.

Shareholding pattern
Holders Name No of shares % of shareholding

Promoters 7907620 42.23%

Foreign Institutions 39011285 20.81%

General Public 38940831 20.77%

NBanks Mutual Funds 13019375 6.94%

Financial institutions 9271930 4.95%

Other Companies 7101186 3.79%

Foreign NRI 914385 .49%

Others 38732 .02%

42
ACCOUNTING POLICY

The company policy has a special accounting policy, which is the basis of the financial
statement. It is accordance with the accounting standards issued by the institute chartered
accountants of India.

RATIO ANALYSIS

ANALYSIS OF SOLVENCY POSITION OF THE COMPANY

 Debt Equity Ratio :-

Debt/Equity Ratio is a debt ratio used to measure a company‟s financial leverage, calculated by
dividing a company‟s total liabilities by its stockholder‟s equity. The D/E ratio indicates how
much debt a company is using to finance its assets relative to the amount of value represented in
shareholder‟s equity.

DEBT - EQUITY RATIO = Debt

Equity

Year Total Debt Net Worth Debt Equity Ratio

9 – 10 4500.16 6470.85 0.69

10 – 11 4150.98 8165.11 0.51

11 – 12 3637.62 7832.65 0.46

12 – 13 3342.74 7590.74 0.44

13 – 14 3135.33 8063.54 0.39

Avg 0.41

43
ANALYSIS OF LIQUIDITY POSITION OF THE COMPANY

 Current Ratio : -

The current ratio is a liquidity ratio that measures a company‟s ability to pay short – term and
long term obiligations. To gauge this ability, the current ratio considers the current total assets of
a company ( both liquid and illiquid) relative to that company‟s current total liabilities.

CURRENT RATIO = Current Assets

Current liability

Year Current Asset Current Liability Current Ratio

09-10 3282.58 1246.51 2.63

10-11 3907.31 1442.76 2.7

11-12 4374.04 2618.92 1.6

12-13 4467.35 2840.60 1.57

13-14 4706.96 2114.17 2.23

Avg. 2.15

 Quick Ratio :

The quick ratio is a measure of how well a company can meet its short term financial liabilities.
It is also known as the acid test ratio.

44
 QUICK RATIO = Quick Asset
Current liabilities

HUMAN RESOURCE DEPARTME

DEPARTMENT

HR Department Hierarchy

45
HR is always has been one of the focus points in business strategy. HR strategy is carefully
linked to the vision, mission, and overall business strategy of the company.

In CUMI, the HR department is responsible for putting together the human resource plan. It is
responsible for recruitment and selection of employees, transfers, payroll processing, canteen and
legal proceeding.

HR planning is done with the 3+1+3 business plan (3 - past three year‟s performance, 1 – current
year performance, 3 – forecast of future three years performance). The company evaluates the
HR requirements estimated by a series of analysis. The basic objective of this department is
effective utilization of HR, desirable working relationship amoung all employees and maximum
individual development. The most appreciating feature of CUMI is its profound flexibility in
communication between subordinate and superior. This contributes to a friendlier corporative
environment

HR Strategy

CUMI‟s business strategy is evolved from domestic & global market trends,

Economic growth, Competition analysis & customer industries growth plan. HR strategy is
linked to business strategy and facilities the organisation to achieve the objectives by building
people capabilities.

CUMI‟s concern for people has been driving force for the growth of the organisation 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 point in the business
strategy. The HR strategy is carefully linked to the vision, mission and overall business strategy
of the company.

HR values

• Concern for people

• Inegrity

• Customer Orientation

• Team work

• Continuous Improvement

• Execution Excellence

HR principles

• Whether workmen or management staff, employees are employees. They are not different
blocs, but two faces of the same cion.
46
• Unions are treated with respect and are made partners in the progress.

• Harmony and peace cannot be at the cost of dilution of organisation 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.

HR functions

• Recruitment and Selection

• Preparing appointment letters

• Arranging training and development programs for employees

• Keeping all statutory obligations

• Collecting data from all other factories to enable them prepare details for long term
negotiation

• Informing the concerned department about the change of factory rules and other related
acts

• Maintaining strict discipline

• Making daily attendance of the employees, pay the over time, this dept also does all
correspondence relating to the ESI and PF

• Running canteen

Recruitment and selection

In CUMI recruitment and selection is based on integrity, competency and the ability to work in
team. Company takes value fit individuals with group into consideration are placed under one
year probation in which the superior access his/her abilities, team work and performance in the
pressure situations. But successful completion of probation does not imply on assurance for
permanent employment. Based on experience and qualification selection of employees is done at
head office Chennai. The management gets peoples through campus recruitment and personal
reference.

47
 Aptitude Test

Group Discussion

Personal Interview

Medical Checkup

Final Interview

Linear managers are expected to prepare job description and job specification in respect of job to
be filled, HR department is expected to oversee and ensure proper compliance with statutory and
organizational requirement and policies. The recruitment process is three tier method – direct,
indirect and third party.

The source of recruitment included both internal and external. The internal source includes more
preferred by the company. The management chooses external sources like campus recruitment,
personal refer

48
Induction

The workers are recruited ans selected is given an individual program: introducing them to the
plant, thie work and to the concerned department. For Managerial personnel, the induction
method used is apprenticeship training method; immediate supervisor trains employees. For
Workers shop floor training given. There is three level of induction at CUMI.

 Corporate induction: Mainly for Corporate personnel. Given in head office (Chennai).
 Induction across unit: Given for management staffs across the units in order to know
the various dynamics exist in the group.
 Department/functional unit induction: This is given for both management and non
management staffs; each department managers or supervisors give this.

Training and Development

The need for training is determined by identifying the gap between present performance of an
employee and the desired performance. In CUMI it is done on the basis of skill matrix. The
training needs identification procedure.

Skill matrix

The objective of the skill matrix is to have a scientific analysis of skill level. The aim is that
technology changes fast and new technology demands new skill. Therefore, this helps employees
to progress his career plan. Skill matrix measures five aspects of an individual/personal
characteristics, discipline, skill work performance and participation in management. The skill of
the person to perform. It is to identify scientifically the skill level existing in the organization and
to develop the skill levels pattern to meet the business requirements.

Training for Management staffs

 Two functional and one personal effectiveness training program as a part of corporate
initiative.
 Specific program against the requirement- division/ unit HR.
 Advanced TQM orientation.
 Negotiation Skill.
 Out Bound training.
 SHE Programs

Training for non-management

 Behavioral training.
 Skill improvement training.
49
  Multi skilling.
 TQM orientation

POLICY AND CAREER PLANNING

CUMI believes that its our responsibility to develop employees to their potential so that the
future challenges could me met with the existing talent.

ENVIRONMENTAL POLICY

We at CUMI are committed to be an eco friendly organization and shall strive to protect,
preserve and to improve our environment. This will be achieved through

 Continual improvement of the operations for achieving better environment

performance.
 Optimizing usage of energy and other resources.
 Minimizing waste generation and disposing appropriately to reduce the on the
environment.
 Complying with environmental legistalations and regulations other requirement to
which the organizations subscribes.
 Creating environmental awareness among all those work and on behalf of the
organization.

DEVELOPMENT PLAN

The 3C’s of retention of talent at CUMI

 Challenge
 Compensate
 Competency
 Areas- operational/ cultural excellence

Welfare Measures

 Welfare fund: Employee will contribute Rs 30per month to the welfare fund. If the
employee is sick for month than two month, Rs 1400 will be granted. In case of
serious accidents and death, entire amount will ne brone by the company. Cash
awards will be given to the children of employees who secure highest marks in SSLC
exam.
50
  Medical Scheme: Staffs who are not under the E.S.I scheme can avail this scheme.
The scheme is to provide financial assistant to the employees who have crossed the
ESI. The ceiling amount of this scheme is Rs 25000, amount will be granted only for
inpatient treatment.

 Recreation club: CUMI has a library, there is a wide collection of novels and other
books, television, newspaper tec.
 Canteen: CUMI has a subsidized canteen. Monthly Rs18 is deducted from every
employee towards canteen. The company has the contract for cooking only for rs
23,000.
 Allowances: Washing allowance, Shift Allowance, Travel Allowance, Educational
Allowance, Attendance Allowance, House Rent Allowance, Feeding Allowance,
Festival Allowance.

INDUSTRIAL RELATION:

In CUMI, the HR department plays a vital role in maintaining harmonious industrial

relations. A very Good relationship exists between the management and the employees. Since
1987, no strike were reported. Inter as well as intra union rivalry is very low.

MARKETING DEPARTMENT

Marketing Department Hierarchy

GM

AGM (Marketing)

Sr.Mgr(exports)

Dy.Manager (North Dy.Manager (East Dy.Manager (West Dy.Manager (South

region) region) region) region)

Supervisors (2) Supervisors (2) Supervisors (2) Supervisors (2) Supervisors (2)
51
CUMI has a team of marketing executives spread over the country to facilitate large sale and
customer service. The company has traditional marketing wings, which looks after the sales and
service operations. The team also conducts market surveys and trend analysis. which helps the
management to make correct and important decision. It also help in modification of existing
products and introduction of new products.

The main responsibilities of this department are the following:

 Retaining the regular customers

 Identifying new needs arising in the market

 Market expansion

 Payment follow up

As a part of market research , the sales executives study the requirements of their new customers
and existing customers. They collect information from the customers and provide customers
directly. The first 15 days of every month they do the above mentioned activities. The rest of the
days they do the payment follow up. There is a value target and based on this production is
carried out.

Main customers:

The main customer industries of the CUMI are:

 Automobile industry.

 General metal cutting industry.

 Polishing of metal surfaces.

 Marine paints etc.

And the main customer companies are:

 Vishwa vishal

 mechans in UK

 Milthon

 Indoflogates

 Tata refractories

52
Branding:

CUMI made its brand well known in the industry through continuous hard work and
determination. This was possible because of following reason:

 Consistent high quality and reliability

 Fair pricing practices and transparency

 Relationship management

 customized production

 Sales:

Ninety percentage of the sales is done through direct order from the customers and 10% from the
dealers. Last year the company's domestic sale was around rupee 71.07 crore and the export sale
was around rupee 42.06 crore.

Distribution:

CUMI has no formal warehouses. They distribute their products directly through customers.

Pricing strategy

In the domestic market , the comapny sells products at a premium price. However, in the export
market the company facing competition from chinese products. so in this market company sells
the products at economic price.

53
Distribution Channels:
Company

Zonal Business Head

Territory Manager

Distributor

Retailer

Customer

54
SHIPPING DEPARTMENT

Shipping Department Hierarchy

GM

AGM (Manufacturing)

Dept, Head

Sr. Shipping assistant

Leads Man Trainees

Workers

The shipping department deals with out-bound logistics and shipping of the finished goods.
There are six permanent staff in this department. Beside them, there are temporary workers and
casual workers.

Order acknowledgement is the main document maintained in this department. It contains:

 Pending order report.

 Customer details.

 Transport mode.

 Bills which are pending.

55
  For shipping is adopted, everything is undertaken as per FERA standard (Federation of
European of Abrasives).

 Priority to whom it is to be (which customer) given will be decided by the shipping

department.

This department is responsible for the packing of finished products. They start dispatching only
after getting the green card from the quality control department. This department has the
responsibility to determine the number of casual workers required for the loading and unloading
function. However there is a forklift to do major part of the loading work. This department also
in charge of preparing invoice.

Then it is packed in various quantities. In every shift 210 bags weighting 50 kilograms (domestic
purpose) and 25 kilograms (export purpose) is packed. The bags are placed in pallet and lifted by
crain and taken to separate area from where trucks carry it to destinations.

SYSTEMS DEPARTMENT

Systems Department Hierarchy

GM

System Administrator

System Operatives System Operatives System Operatives

The electro material division at Edappally is becoming more automated and technocracy. In this
company, each department uses computer and is interconnected with the help of ERP (Enterprise
Resourse planning) system.

Ramco Virtual Works, a Chennai based software company provides ERP solution.
56
The company uses ERP because it provides:

 Integrated market information.

 Better handling of raw materials.

 Better process control.

 Reduce the time and cost.

 To record the details of HR.

 Integrated financial information.

The company’s entire work, raw materials to marketing of the finished good is influence ERP.

If any department is facing any problems. That inform will spread to the entire organization and
then the concerned person or department will approach and solve that problem within the
shortest period. These are done with the help of ERP.CUMI has has internet, which is easily
accessible.

The type of network is used by the company is star network. Office automation facilities are
provided by Ramco Virtual Works. It is Chennai based and perform the activities like payroll
service, shipping and updates etc.

Type of server

Exchange server for mail transcription. Front-end server is based on chennai and the back-end in
CUMI , Edappaly.

Internet connectivity-broad band -256kbs.

Types of operating systems are used by the company is windows 2010 and windows
professional.

Securirty systems

 E Scan -that act an anti virus

 Fortiguard - This blocks the unwanted website

57
SWOT ANALYSIS

STRENGTH

• Company owns mines in Gujarat and also a hydroelectric project in maniyar. This
reduces the cost of processing raw material and production.

• The company treats the customer with respect and concern.

• CUMI is having a better organizational climate and manage the environmental

effectively. The company grows in an accelerated manner with new products and services.

• As it has been found that one of the major problem facing new firms in power and its cost
to maintain. CUMI was able to counter the problem to an extent by establishing a hydroelectric
plant in maniyar.

• The company has strong departments. CUMI has a policy that 6 % of total sales every
year should be from new products. R & D enables the company to have an edge over competition
in the new product development.

• EMD has a very good working environment. It has got professionally managed sales
team with strong back up of reputed dealers.

• ISO 9001 certification also help in obtaining some orders as well as maintaining the
standard of the company.

• CUMI has the ability to change according to the circumstances. When the cost of
production was rising, it decided to cut short the cost by reducing the labour.

• CUMI has the capital investment. It acts as an entry barrier for new firms to enter to this
field.

• CUMI has been in the field for more than half century. Hence it has deep knowledge
about the market.

• The company has triplicate collaboration with companies in USA & UK. Hence they can
enjoy benefits such as access latest technology, management techniques etc.

• The company has to make strict rule regarding wearing of personnel protective
equipment‟s like safety shoes, helmets jackets etc.

58
WEAKNESS

• The salinity of water has to be improved.

• The roads within the company are to be developed so that the men and material can be
moved easily.

• Promotion is based on the seniority not on performance

• As the significant financial decisions are taken at head office at Chennai, the speed and
efficiency of the branch is not satisfactory.

• No permanent employees have been recruited for the last few years.

• The plant entirely depends on KSEB for power supply therefore power failure can affect
the production.

OPPORTUNITIES

• The company can introduce more of its product in the market.

• The company can produce new and improved products with less labour and advanced
technology.

• More mines have to be found out. Globalization and liberalization can make its product
globally acceptable.

• The company can employee the best brains from top business and technical institutions
for better working and manageent.

• Foreign acquisitions and merger make it possible to oversee the market.

THREATS

• Chinese product threatens the company since it is cheaper.

• CUMI faces stiff competition from the world merger and local players in to the market.

• Power and other equipment‟s are expensive.

• The demand for abrasives has fallen down because of industrial and economic shutdown.

• Rise in the cost of essential such as power, raw – materials, freight charges and
unavailability of raw materials.

59
 CHAPTER 3

POSITION OF THE INTERN AND HER ROLE

60
STRUCTURE OF THE ORGANISATION

ORGANISATIONAL STRUCTURE OF

CARBORUNDUM UNIVERSAL LTD

Managing Director

SBU Head

Head Head- Head

Head-
Manufact Manufa SBU
Head- Head – Head QA &
uring cturing& Accou
Marke SBU Techn- Proces
(Koraty,K Projects nts &
akkanad, (Edapall ting Comm HR ology s
Control
Maiyar) y) ercial

61
FINANCE DEPARTMENT HIERARCHY

The part of an organization that manages its money. The business functions of a finance
department typically include planning, organizing, auditing, accounting for and controlling its
company's finances. The finance department also usually produces the company's financial
statements.
Key Positions in an Accounting
ounting Department. ... Their duties include financial planning, reporting
and controls, short and long term business strategy, investments, hedging, mergers and
acquisitions, cash management, internal risk management, corporate finance, auditing and
accounting.
Financial managers are responsible for the financial health of an organization. They produce
financial reports, direct investment activities, and develop strategies and plans for the long-term
long
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financial goals of their organization. Financial managers work in many places, including banks
and insurance companies.

4.1 ROLE, DUTIES AND RESPONSIBILITIES ASSINGED TO THE INTERN

(a) DUTIES & RESPONSIBILITIES ASSIGNED TO THE INTERN

 To study about the organization and its functions

 To observe, analyse and learn the mission and vision of the organization

 To know about the general features of CUMI

 Complete the allotted work on time

 Filed Different Papers and Documents

 Preapared Exit Files
 Filed the document
1) Invoice
2) Bill Of Lading

3) Service Tax Refund

4) MEIS( Merchandise Exports From India)

 Cross checking MEIS File

 Cross Checking C-Form ( Q1, Q2,Q3,Q4)

 Preapred the Documents For Internal Audit

 Study About the Processing Of Payment Through Omni Scan

 Corrected the Tax Amount For the Various Bills

4.2(b) DEPARTMENT ALLOTTED & REPORTING TO WHOM

I was allotted to Finance department as Finance intern and I was reporting to the Senior manager
Accounts Mrs. Mridula K backed me with their constant support and feedbacks. And the Duties

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were Given By Adithyanath P (Deputy.Manager Accounts), Praveen Kumar ( Executive –
Accounts),Antony Peter( Associate- Accounts).They guided me throughout my internship.

4.3(c) Brief detailing about the whole internship.

On 2nd may I started my internship at CUMI, Edappally. It was a 45 Days internship at
Carborundum Universal Ltd Edappally. I was assigned in the Accounts department as an
Accounts intern. I was assigned with different duties and responsibilities such as preparing File
Processing of Exports Documents such as Invoices and Bill of Lading, Filed the documents Of
Kakkanad Branch, Filed the document Service Tax Refund
MEIS( Merchandise Exports From India) ,Cross checking MEIS File ,Cross Checking C-Form
( Q1, Q2,Q3,Q4), Preapred the Documents For Internal Audit , Study About the Processing Of
Payment Through Omni Scan, Corrected the Tax Amount For the Various Bills.

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 CHAPTER 4
CONTRIBUTIONS AND LEARNING

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4.1 CONTRIBUTION OF THE INTERN TO THE ORGANISATION

 Filed Different Papers and Documents

 Preapared Exit Files
 Filed the document
5) Invoice
6) Bill Of Lading

7) Service Tax Refund

8) MEIS( Merchandise Exports From India)

 Cross checking MEIS File

 Cross Checking C-Form ( Q1, Q2,Q3,Q4)

 Preapred the Documents For Internal Audit

 Study About the Processing Of Payment Through Omni Scan

 Corrected the Tax Amount For the Various Bills.

4.3 LEARNING FROM THE INTERNSHIP

• The company’s experiences of 5 decades in the industry, its location

advantages etc. are the strength of the company.

• There is a lack of good infrastructure facilities in the company.

• The relationship and coordination among the employees and staffs of

CUMI is commendable.

• The work environment of the organization is good

• The company has a tight security mechanism.

• The company has a monopoly market in ACSR cable and signaling cable.

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• All the employees work together to develop the company.

• The company does not make any harmfulness to the surrounding.

• The employees get all allowances and other additional benefits.

• The company is concentrating on quality and therefore their product has

100% quality.

• The customer satisfaction regarding the CUMI products is good. And it

has good brand image.

• Safety measures are taken and each employee is well equipped for the risk
in his job.

• Fewer funds are allotted for promotion activities.

• The employees both in the rank and under ranked are decently paid

• Workers health and safety are given prime importance.

• CUMI has been following the KAIZEN Japanese scheme for continuous
improvement in all activities of the business. This scheme means that the quality
of the product and services is determined by its uses, efficiency, and value for the
money and comparison with other products.

• CUMI can take safety measures in order to avoid accident to the

hazardous job situation.

• CUMI uses skill matrix to scientifically analyse the skill level of

employees

• CUMI uses 5‟s to improve the quality it is not only to create a clean,
healthy and good working place but also habit for complying with workplace
rules and procedures.

• The firm is really committed to its environment. The waste management

facility is in such way that, it does no harm to the natural environment

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CHAPTER 5
CONCLUSION

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CONCLUSION

The internship period as the part of the fourth trimester of the MBA curriculum of the
APJ Abdul Kalam Kerala Technological University, lasted for a period of 45 days
beginning from 2 May 2018 to 16 June 2018.The nternship period has been a great
experience.
CUMI IS AN IS0 9001:200 certified company. Is is an excellent employer and
producer of world class abrasives and refractory’s. This has happened only with the
support of staffs and workers in the company. The management is dynamic and
supportive and patiently the workers voices and acts accordingly.

From the Internship report conducted in CUMI, the functioning and the activities
of the company are studied. It is found that the company is bound to follow the rules and
regulations to avoid favoritism and corruption. The chance of corruption is less in this
company. The top management is very strict about the same. There is low stress and high
job security. It has a monopoly market of ACSR cables. This study helped to understand
the relationship between management principles and practical applications. It also will
help to maintain an amiable relationship with the employees as well as with the
managers.
The privileged opportunity of doing 45 days along organization proved out to be
highly beneficial in the management point of view. It gave a practical knowledge about
the nature of the business firm and it had enable me to have an exposure to the majority
of the topics related to company functioning structure, policies, promotional activities,
working environment, organizational culture etc. It has alao helped me to know the
practical application of the theories in the business studies.

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BIBILOGRAPHY

• Company website: www.cumi-murugappa.com

www.murugappa.com
www.google.com
• Annual Report of CUMI 2017 – 2018
• Company Article

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