TABLE OF CONTENTS

Chapter No. Particulars Page No.

Chapter 1 Organization 2
1.1 Organization Introduction 3-7
1.2 Products and services 8-11
1.3 Company Profile 12-15
1.4 Organogram 16

Chapter 2 Inter Departments

2.1 Production 17
2.2 R&D 18
2.3 Marketing 24
2.4 Finance 24
2.5 HR 24-35
Chapter 3 Learning from Internship 36-37

Chapter 4 Knowledge Gained 38-39

Chapter 5 Skill Development through internship 40

Chapter 6 Specific Assignment or Research work 41- 43

Chapter 7 Conclusion 44
Bibliography/ References 45

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 Chapter -1

ORGANIZATION

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1.1 Organization- Introduction
Murugappa Group
The making of Murugappa group Headquartered in Chennai, the Rs. 36,893 crores (USD 5.3
billion as on March 31, 2019) 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 50,000 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.

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 Fig.1

Today, it is one of the country's biggest industrial houses. The Murugappa Group has a
consistent and strong financial record, with steady balance sheets, robust cash flows and a
good growth rate. The turnover of the Group as of 31st March 2019 is INR 369 billion.

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 Parry’s Beta Carotene in nutraceuticals,
Ball master and Ajax in abrasives, Gromor and Paramfos in fertilizers, and many more come
from the Murugappa Group.

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

4
the manufacturing facilities of CUMI are ISO 9001:2015 and ISO 14001: 2015 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.

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 East-RAK, 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.

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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.

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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.

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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.

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

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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

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

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  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.

 Super Refractory’s

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
refractory’s and monolithic) and also Refractory Fiber.

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 Company profile
COMPANY NAME: CUMI (Carborundum 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 Designation
K Srinivasan CEO

N Ananthaseshan Managing Director

M Lakshminarayan Director
M M Murugappan Chairman / Chair Person
M Muthiah Sr. Vice President - Human Resources
N Ananthaseshan Sr. Vice President - Electro Minerals Division
P L Deepak Dorairaj Sr. Vice President (Operations) - Abrasives
P R Ravi President - Industrial Ceramics
R Rajagopalan Sr. Vice President - Refractories & Prodorite
S Dhanvanth Kumar Company Secretary & Compliance Officer
S Dhanvanth Kumar Secretary
Sanjay Jayavarthanavelu Director
Shobhan M Thakore Director
Sridhar Ganesh Director
Sridharan Rangarajan Chief Finance Officer
Subodh Kumar Bhargava Director

Table.1

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 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 9001:2015 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

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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. 16crore. In March 2002, the company commissioned the cloth processing
facility at Maraimalainagar in Tamil Nadu. Sterling Abrasives Ltd, which is engaged in 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 from 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

13
nearly Rs. 100 crore. CUMI International Ltd acquired 86% stake in Volzhsky Abrasive Works,
Russia which is ranked as the world’s 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 ton 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
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 Grind well Norton ltd
2 Orient Abrasives Ltd
3 Valley abrasives
4 Wendt India Ltd

Table.2

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 Organogram

Shareholder

Board

Financial center Legal Department

Director

Production Investment Marketing Technical Human Resource

department department Department department Department

Product Design Training Group

Production Planning Brand/Adver Promotions/
Department
Planning Department tising Media
Recruiting
Research
Team
Technical/Ind Trade Public Development
ustrial Research Marketing Relations department
Design Department Office Support
Technical Audit
Market Department
Production
Engineering Analyst
Department Compensation
Technical Service
Benefits
Maintenance Departemnt

Customer
Service
QA
Department
Manager

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 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 9001:2015 and
ISO 14001:2015 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.

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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 CUMI’s 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 Human Resource

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
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 weren’t far behind with CUMI ‘Ustaad’
programs conducted to hone their technical skills, especially the application engineering

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capabilities, which are at the heart of CUMI’s 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 Group’s 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. Women’s Day Awards and participation in the
MMA Women’s 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

Human Resource Strategy

CUMI’s 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.

CUMI’s 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.

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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.
 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.

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  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, Hay’s 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.

Stimulating and encouraging empowerment, creativity and innovation

To address the dynamic needs of the market, CUMI continuously reinvents the functioning
approach to the customer.

 Organization’s Structural Change

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

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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.

Chairman’s 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.

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

CUMI’s 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.

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Recruitment Policy Policy on Career Planning

CUMI will recruit based on integrity, CUMI believes that it is our responsibility to
competency and the ability to work in a team. develop employees to their fullest potential
We would also endeavor to select individuals so that future challenges could be met with
with leadership potential, customer existing talents.
orientation and quality focus. Above all, we
also take the Value-fit of the individual with
the group into consideration.

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

 Assessments
 360 Degree Profiling
 Behavioral/Leadership Styles
 Functional Head’s Feedback
 Identified Areas - Operational / Cultural Excellence

Development plan

The 3 Cs of Retention of Talent at CUMI.

 Challenge
 Compensate
 Competency

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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 learning’s 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.
 The objectives and measures are to be clear cut, specific and quantifiable
 The appraiser and appraise will jointly discuss and arrive at the best regrouping
possible of the objectives.
 In the discussions, the Appraiser and Appraise agree on action plans including
resources and support. This is summarized and signed off by both the appraiser &
appraise.
 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 appraise.
 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)

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  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

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

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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.
 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

25
organization. This Award is applicable to all employees in the Management and unionized
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.

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 weakness 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

26
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 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
programmers, 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.

CUMI’s 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

27
  Adhere to Safety, Health and Environment norms even beyond Statutory
Requirements.

Job rotation/ Enrichment

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.

28
Objectives

 Integrate safety health and environmental consideration into Business Planning.

 Comply with all applicable laws, regulations, standards and Codes of Practice
 Monitor and Assess health, Safety and environmental Performance on a continual
basis.
 Provide workplace free of hazards
 To be recognized as a responsible citizen.s

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.

29
Occupational health - To ensure that safety / protective equipment are provided to the
employees and they use them while at work.

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.

30
Environment

 Implementation of ISO 14000 in the major divisions is one of the significant

indicators.
 Identifying the need in neighboring community by developing Employee Animators is
an ongoing project.

Training and Development

Employee Education, Training and Development

CUMI’s 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 learning’s
 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.”

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The employee learning plans are:

 Business Driven
 Personalized
 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 B’School 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

32
objective CUMI 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
learning’s. 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 organization’s

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.

33
 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. It’s no secret that the job market right now isn’t great. An internship
could not only develop our skills but also lead to employment.

My experiences at CUMI, during my internship are:

1. 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.

2. 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 CV’s to a particular folder according to job location.

3. 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 won’t have time for referring my guide.

34
4. 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.

35
 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, it’s
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.

36
• Making valuable contacts

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.

37
 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, what’s 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

38
 Chapter 6
Specific Assignment or Research work
Task1:
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.

Task2:
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
Department : marketing
Exposure : tooling industries- channel/dealer management (Abrasives, power tools,
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.
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 Executive/deputy manager-sales and marketing
Department Marketing
Exposure FMCG/food industries

39
Job purpose 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 FMCG companies/ paints, (pidlite, HUL, asian paints, ITC, Cavinkare
Job location Mumbai/ Pune
Education Graduation in science with 1-3 yrs experience
CTC 3-5 lacks

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

5 Job Ahmadabad, Mumbai, Ludhiana, Gurgaon, Jaipur

location
6 Education Graduation with 1-3 yrs experience in sales
7 CTC Depending on the candidate

40
JD4:
This is the job profile for the job Executive/ Deputy manager- sales& marketing-
CIMCOOL

Job Title Executive/ Deputy manager- sales& marketing-CIMCOOL

Department Marketing
Exposure Industrial lubricants/ Metal working fluids
Job Purpose To generate the maximum amount of profitable sales through the
achievement of sales targets and by making new and existing customers
aware of the company’s product range.
Key Generate maximum profitability
responsibilities Identify new sales opportunities
Monitor customer accounts
Maintain accurate records

Job location Rajkot(Gujarat)

Experience Channel/ dealer sales experience of 2-7 yrs
Education 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.

Task3:
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 at CUMI.

41
 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

42
 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)

43