A PROJECT REPORT ON

AMUL INDUSTRIES PVT. LTD.

PREPARED BY

SURESH D. SOLANKI
MBA – (Sem – III)

ACADEMIC YEAR
2007-2008

UNDER THE GUIDANCE OF

Dr. HITESH J. SHUKLA

SUBMITTED TO
R.D.GARDI DEPARTMENT OF BUSINESS
MANAGEMENT,
SAURASHTRA UNIVERSITY, RAJKOT.

1
 PREFACE

Knowledge is one of the most important Treasures for any person. The
amount of the knowledge in this world is a doubling every five years and with
the end of the 21st century it is now expected to double every two years. So if
I plan to be in this knowledge explosion means that I would be facing with
unprecedented challenges and opportunities. How well I address that I would
depend upon, in large part on my ability to adapt to the continuing changes.
Journal work like this gave an exposure to the practical and real life
experience of the modern market.

Theories don’t teach unless accompanied by the working in original

situation. This project report was carried out according to the course of MBA.

2
 DECLARATION

I, Mr. SOLANKI SURESH D. here by declare that this project is the record of
authentic work carried out by me, in well reputed company AMUL
INDUSTRIES PVT LTD. during the academic year 2007-2008, under the
guidance of Dr HITESH J SHUKLA faculty of R. D. Gardi Department of
Business Management. This is my real work and has not been submitted to any
other university or institute towards the award of any degree.

Date: -

Place: -

(Student Name)

SOLANKI SURESH D

3
 ACKNOWLEDGEMENT

Through this acknowledgement, I express my thanks towards all those

people who helped me for the preparation of Summer Project Report, which
has been a learning experience.

I am extremely thankful to Ms. Nisha Korvadiya (HR executive) & Mr

Manhar .Parekh(manager P& Administration), Rajkot for getting me
acquainted to the company and giving me the golden opportunity to carryout
this interesting training at Amul industries pvt. Ltd.

I would like to thank Mr. Parag Solanki (Quality Control dept.) Mr. M.
R. Trivadi (Account dept.), Mr. Raju Chudashama (Marketing dept.), Mr.
Sharad Thakkar (Exprot Marketing dept.), Mr. Manish P. Vekariya
(Purchase dept.), Mr. Bhavesh Vora (Production dept.) for helping me to do
my project successfully.

I am grateful to each one working in the organization for their humble

and generous behavior towards me. I am sincerely thankful to the team of
AMUL INDUSRIES PVT. LTD.

In addition of allowing me to industrial training of the company and study

of the organization and various aspects of managerial functions, they provide
me many details. In the preparation of this study report. I take this
opportunity to thank my professor Dr HITESH J SHUKLA faculty member
of the institute, R. D. Gardi department of business Management, who has
accompanied me and the providing me all the facilities to make the industrial
training more fruitful.

4
 Last but not least I am also grateful to my friends and all those who
directly or indirectly helped me completion of the project.

CERTIFICATE

This is to certify that Mr. Suresh D. Solanki studying in M.B.A. (SEMESTER -3)

of R.D. Gardi Department of Business Management, Saurashtra University has

successfully completed the training & project report work conducted in our

company during the stipulated period from 22nd April to 02nd June 2007. He was

found to be very active, sincere and hard working during his project work. I

hereby wish him a great success for his all-future activities and for a bright career

as a real professional.

For Amul Industries Pvt. Ltd.

Nisha Korvadia

HR Executive

5
 CONTENT

1. INDUSTRY OVERVIEW 7

2. COMPANY OVERVIEW

3. PRODUCTION DEPARTMENT

4. QUALITY CONTROL DEPARTMENT

5. MARKETING DEPARTMENT

6. FINANCE DEPARTMENT

7. HUMAN RESOURCE DEPARTMENT

8. FINDINGS & CONCLUSION

9. BIBLIOGRAPHY

6
INDUSTRY
OVERVIEW

7
 History of Industry

The Indian Auto Component Industry had its small beginnings in the 1940s. If
the evolution of this industry is traced in India, it can be classified into three
distinct phases namely:

1. Period prior to the entry of Maruti Udyog Ltd (1940s to 1984)

2. Period after the entry of Maruti Udyog Ltd till economic liberalization
(1984 to 1991).
3. Period post Liberalization (1991 onwards).

The period prior to the entry of Maruti Udyog Ltd was characterized by low
technology and assured business for most of the auto-component
manufacturers who used to supply to a handful of players in the Indian
automobile market like Hindustan Motors, Premier Automobiles, Telco,
Bajaj, Mahindra & Mahindra etc.

With the entry of Maruti in the 1980s, the auto ancillary industry in the country
showed a spurt in growth. This period witnessed the emergence of a new

8
generation of auto ancillary manufacturers who were required to meet the
stringent quality standards of Maruti's collaborator Suzuki of Japan. The good
performance of Maruti resulted in an upswing for the domestic auto ancillary
industry. It was also during this period that auto components from India began to
be exported.

With the liberalization of the Indian economy in 1991 and coming of many
foreign automobile manufacturers like Hyundai, Daewoo etc., the auto ancillary
industry witnessed huge capacity expansions and modernization initiatives in this
period. This also led to a tough competitive scenario, which saw a lot of
consolidation, technological collaborations and equity partnerships within the
industry and with leading global players abroad.

Today, many international and local automotive players are increasingly

sourcing components from Indian automotive component manufacturers. As the
demand for manufactured automotive components with the tag "made in India"
increases, the automotive companies have to further enhance the quality of their
products and operations as global players require quality components at
reasonable prices and at precise time durations. This has made the automotive
component manufacturers in India to be under severe pressure to meet such
onerous demands. Hence, to meet such demands, today all the major players in
this industry are having one or the other logistics management system.

The performance of auto ancillary sector is closely linked to those of the auto
sector. Demand swings in any of the segments (cars, two-wheelers, commercial
vehicles) have an impact on auto ancillary demand. Demand is derived from
original equipment manufacturers (OEM) as well as the replacement market.
Replacement demand accounts for close to 57% of total demand, while OEMs
account for 27%, with exports accounting for the balance 16%.

According to the Indian auto component industry body ACMA the auto
components industry in India is dominated by around 500 key players, which
contribute more than 85 percent of India's production.. The automobile sector is
cyclical and dependent on the growth of the economy and improvement in
infrastructure. Factors like increased public spending, favorable interest rates and
general improvement in per capita income points towards higher demand for
automobiles in the future.

9
The domestic auto component sector - an integral part of the manufacturing
business - is on the fast track, clocking 34 per cent growth in the past three years.
This has been propelled by strong domestic demand and an indigenization drive.
India has joined the billionaire club on the export front, riding on the outsourcing
wave.

Performance of industry

The Indian automotive component industry has witnessed a CAGR of 20 per cent
in the last five years (between 2000-2005), according to a McKinsey-ACMA
report on the Status of the Indian Auto Industry. In 2005, the auto components
industry was worth over US$ 10 billion, which is expected to nearly double every
four years, to 18.7 billion in 2009, and reach US$ 40 billion by 2014.

According to estimates by the Automotive Component Manufacturers

Association (ACMA), domestic production increased by 17 per cent in 2005-06
to $10 billion, while exports jumped by 30 per cent to $1.8 billion. "The industry
has grown at a CAGR of 20% between 2000 and 2005 with total output in value
terms touching US$ 10 billion in 2005. Exports have grown at a much higher rate
of 34% CAGR during the same period with output touching US$ 1.8 billion," say
data published by independent market observers too.

The reduction in excise duty on small cars affected in the 2006 Budget had
created positive market sentiment towards auto-ancillary units, especially the

10
ones having exposure to small cars producers. The reduction in peak customs
duty levels and the reduction in import duty on ferrous and non-ferrous metals
should also provide some relief to the auto ancillary producers.

The Indian auto industry produces an estimated 9.7 million vehicles, propelled by
a surging domestic demand, which has pushed the growth rate of the auto
industry to 20% in the last couple of years. The domestic industry is set to grow
manifold over the next few years as estimates point out that the Indian auto
components industry will invest about $1 billion towards ramping up capacities
and acquiring newer technologies every year for the next 10 years.

Huge business potential

Exciting times lie ahead for the Indian automotive component industry. The
industry is transforming, and the boost in demand will see the emergence of
several new players in the industry. The vast market for auto components, and the
diverse products and technology involved ensures a place and role for many.

According to Baba Kalyani, chairman, Bharat Forge Ltd, the auto-component

business is huge and what players like us from the developing world are trying to
do is to get a part of that business. And that part will never be more than 20 per
cent. But that 20 per cent is big business. The auto-component business that is
favorable for India totals to some $380 billion. "Even if you get 10 per cent of
that, it is $38 billion! It is a hell of a lot more than what we are doing as a whole
country," he stated.

There is lot of positive factors - India has emerged as an outsourcing hub for auto
parts for international companies such as Ford, General Motors, Daimler

11
Chrysler, Fiat, Volkswagon, and Toyota. India enjoys a cost advantage with
regard to castings and forgings. The manufacturing costs in India are 25 to 30
percent lower than its western counterparts. India's competitive advantage does
not come from costs alone, but from its full service supply capability.

Besides the burgeoning demand from global auto majors, there is also the
domestic car industry, which is growing at a spanking rate of over 16 per cent,
driven by a rising consumer base and affordable loans. Auto sales within India
are expected to touch 10 million by 2009 and Indian auto majors have registered
a growth of over 24 per cent in vehicle exports in September 2006 alone. The
industry displays tremendous potential in generating employment and boosting
entrepreneurship in the country. The spate of new investment plans announced by
global and domestic automobile manufacturers promises the emergence of India
as a global hub for auto components.

Major Players

Asahi India
Bharat Forge
Exide Industries
Mico
Sundaram Clayton
Sundaram Fasteners
Sona Koyo Steering
Jay Bharat Maruti
Bharat Seats
Amara Raja Batteries
Subros
Motherson Sumi
Amtek Auto
EL Forge
TVS Autolec

12
 HISTORY AND
DEVELOPMENT OF
AMUL INDUSRIES PVT. LTD.

13
14
 COMPANY OVERVIEW

INTRODUCTION: -

Amul Industries is a part of 89 Million Group known as Adico-Galaxy group of

industries. Started in 1965 today the group is employing about 1200 people and
15 companies located in Rajkot, Pune & Hyderabd and is engaged in various
engineering products like Connecting Rods, Crank Shafts, Anti Friction Roller
Bearings, Industrial Chains, Single & Double Cyl. Diesel Engines, Forgings,
Machine Refurbishing etc.

Amul Industries started its functions in 1988 as a small scale industry; today we
are manufacturing 175 different types of Connecting Rods and are considered one
of the biggest Connecting Rod manufacturers in India. Within a short span of 15
years the company has been able to touch turn over of 40 corers with more than
400 people working with it.

Our Connecting Rods range Our Connecting Rods range from 0.3 Kg. to 12 Kgs.
in weight and from 90 mm to 310 mm in center distance. Material range includes
Steel & Aluminium in both forging and casting condition. We are also gearing up
our selves for processing Connecting Rods of unconventional materials.

Our list of customers include almost all automobile giants in India including
Cummins India Ltd., L & T John Deere Ltd., Tata Motors, Ashok Leyland Ltd.,
Mahindra & Mahindra Group, Simpson & Co,. Swaraj Engines, Eicher Tractors
as well as Motors, Hero Motors, Greaves Ltd., Same Engines, New Holland
Tractors Ltd., Escorts Tractors etc. Also to include are the customers from other
segments like Generators, Air Compressors, Hermetically Sealed Compressors,
Diesel Engines and Hydraulic Motors. Ingersoll-Rand, Kirlosker Oil Engines,
Voltas, Tecumseh Products are to name some of them.

15
Our Products are also exported to overseas OEMs like Iveco-Italy, Lombardini
Italy, FMC-USA, and John Deere-USA etc. We are also exporting our products
to more than 20 countries in Europe and Middle East Countries for Heavy &
Medium Commercial Vehicles as well as compressors.

Our disciplined system of working, state of the art technology and high degree of
quality controls have fetched us ISO 9002 (1994), QS (1998) as well as TS 16949
accreditations.

Our manufacturing facilities are backed up with latest & precision measuring
systems. This facility is studded by specially designed UTM, Micro Scope,
Spectro Scope for Chemical & Physical testing and Latest CMM (Three Co-
ordinate Measuring Machine), ScanMax, Marposs Final Inspection Gauge (To
check 19 parameters of Con Rod at a time), Electronic Torque Tester, Nut
Runner, and Calibration Masters for Dimensional Checking.

We are also equipped with Connecting Rod Fracturing (for Casting Connecting
Rods) and Crank Shaft Radius Rolling facility. We enjoy the status of being the
only supplier having these facilities in India.

We are also equipped with Connecting Rod Fracturing (for Casting Connecting Rods) and Crank Shaft Radius
Rolling facility. We enjoy the status of being the only supplier having these facilities in India.

16
 BASIC INFORMATION OF THE
COMPANY

NAME & ADDRESS OF THE UNIT: PLANT / HEAD OFFICE

ADDRESS

AMUL INDUSTRIES PVT.LTD.

2- Aji Industrial Estate,

Rajkot - 360 003.
Gujarat - INDIA.
Phone0281-2387898/2387037
Fax:0281-2787762
Email :info@amulind.com

PUNE OFFICE

"Safalya" - 1103/A-9,
Adarsh Colony,
Opp. Vidya Bhavan High School,
Near Model Colony Telephone
Exchange,
Shivaji Nagar,
Pune - 411 016.

17
MUMBAI OFFICE

A/5, Anat Nagar,

Near N.L. High School,
4, S.V. Road, Malad (West)
Mumbai - 400 064.

CHENNAI OFFICE

A/2, Ansari Flat No. - 8,

Madley Road, T - Nagar,
Chennai - 600 017.

DELHI OFFICE

64, Dedoot Apartments,

D Block, Vikaspuri,
New Delhi - 110 018

HYDERABAD OFFICE

8-2-293/174/a-27
B.N.Raddy Colony,
Road No. - 14, Banjara Hills,
Hyderabad - 500 034

18
 GROUP OF COMPANY:

ENGINEERING COMPANIES

1. Amul Industries Pvt Ltd -1988

2. Adico Spares Pvt Ltd – 1965
3. Forge & Forge Pvt Ltd – 1965
4. Advin Diesel Pvt Ltd – 1974
5. Advance Diesel Engines Pvt Ltd – 1994
6. Avirat Engineering Co. – 1982
7. Galaxy Bearings Ltd – 1990
8. Galaxy Chains Pvt Ltd.
9. Adico Forge Private Ltd. – 2005
10. Amul Crank Shaft Pvt. Ltd. – 2005

NON ENGINEERING COMPANIES

1. Galaxy Hotels
2. Galaxy School Systems
3. Modern Construction Co.

19
 4. Galaxy Stone Mining
5. Galaxy Decore Pvt. Ltd.
6. Galaxy Granites
7. Galaxy Leathers

MISSION OF THE COMPANY:

Our mission is to provide total customer satisfaction with best

quality.

VISION OF THE COMPANY:

To be the “NUMBER ONE” connecting rod supplier in world in next

five years.

20
YEAR OF ESTABLISHMENT: 1988

INVESTMENT: In 1988 Rs. 1 Lack.

PROMOTERS OF THE CO.: Mr. Chandubhai Patel.

Mr. Suresh Patel.

Mr Girdharlal Veljibhai.
Mr. Nipul Santoki.

AUDITORS: Atul bhai Kalariya & company.

BANKERS: State bank of Saurashtra,

HDFC Bank,
Standerd Chartered Bank,
Corporation Bank,

21
REGISTERD OFFICE &
CORPORATE OFFICE:
AMUL INDUSTRIES PVT.LTD.
2- Aji Industrial Estate,
Rajkot - 360 003.
Gujarat - INDIA.
Phone0281-2387898/2387037
Fax:0281-2787762
Email :info@amulind.com

FORM OF THE
ORGANIZATION: Private Limited Company

The major functions are grouped under 5 departments. The departments

are:

1. Production Department
2. Marketing Department
3. Finance Department
4. Human Resource Department
5. Quality control Department.

SIZE OF THE
ORGANIZATION: small Scale Unit

22
BOARD OF DIRECTORS:

Chairman & managing director, Mr. Chandubhai Patel.

Managing director, Mr. Suresh Patel.

Director, Mr Girdharlal Veljibhai.

Executive director, Mr. Nipul Santoki.

Organization Chart:

23
AWARDS, RECOGNITION & ACHIEVEMENTS

24
1 Best Supplier award by Cummins

2. Best Supplier award by LG

3. Best Supplier award by Mahindra & Mahindra

4. Best Supplier award by Tekum sekh

5. Supplier performance award 2006-07.

PRODUCTION
DEPARTMENT

25
26
PRODUCTION DEPARTMENT

1.1 Introduction
1.2 Production Process
1.3 Types of plant layout
1.4 Plant Layout
1.5 Selection of Location
1.6 Material handling system
1.7 Production planning & control

27
1.1 Introduction:-

Production is the basic activity of all the industrial units. All other activities revolve
around this activity. We can say that Production activity is nothing but the step
conversion of one form of material into another either chemically or mechanically.
The end product of the production activity is the creation of goods or services for
the satisfaction of human wants. The production activity is process by which the
goods are produced or utility enhanced.

According to E Buffa,
“Production is the process by which goods or services are created.”

The whole process is semi automatic, where process operating persons

closely monitor the whole plant operation through visual. Semi automatic
machinery ensures the steady and smooth operation of unit.

28
 1.2 PRODUCTION PROCESS:

Different process can be done according to different product at Amul Industries

Pvt. Ltd. There are different products like:
a) Connecting road
b) Cam shaft

PROCESS:-
A. Connecting rod

A. Grinding
B. Drilling
C. Boring
D. Rib milling
E. Cap spot face
F. Final parting face grinding
G. B.E. pre boring (Ruf boring)
H. Bolt hole pre drilling
I. Bolt hole final drilling
J. Tapping
K. Oil hole top face
L. B.E. final boring
M. B.E. face & chamfer
N. Oil hole drilling
O. B.E. face groove
P. S.E. heating
Q. 1st & 2nd face
R. Bush boring
S. Rod opening
T. Rod notch milling

29
U. Weight greding

30
2. CAM SHAFT

A. Drilling 7.1
B. Drilling 6.1
C. Profile turning
D. Notching
E. Drilling 8.1
F. Ruf greding
G. 5mm cotation
H. Punching
I. Hardening
J. Straitening
K. M greding
L. Final Greding
M. Hardness testing

31
32
1.3 LAYOUT:-

1. Process layout:-

In this type of layout all machines performing similar type of operation are grouped
at one location. In this layout several products may share a machine to make its full
use. In this type of layout, the process rather than the product has the dominating
role. This type of process is more suitable for job order type of production. In such
production the operation differs from product to product.

2. Product layout:-

In this type of layout the machines are arranged in sequence as required by the
particular product. This is also known as “The Product Line Layout”. In this layout
one product goes through all the machines lined up, in the manufacture required by
its manufacture. In this type of layout, the product is dominating over the process.
Product is more suitable for continuous flow production with few items of
production.

3. Mixed or combined layout:-

Generally pure process or pure product is not found in practice. So a proper

combination is made in order to best suit the production process. A proper
compromise reaping the benefits of both is made possible in this type of layout.

4. Job shop layout:-

In this type of layout there is processing of job production and hence the system is
very flexible. The layout depends upon the analysis of the universe of orders
received and is a very complex affair.

33
1.4 PLANT LAYOUT OF AMUL Ind.:-

Process layout:

AMUL Ind. is engaged in producing automobile parts which is used in automobile

industries The Production process of AMUL Ind. involves producing of many
parts i.e. Connecting rod, cam shaft etc. In producing automobile parts the raw
materials goes through different process step by step in order to get converted into
final product.

As Amul practices continuous flow of production and the process is arranged based
on the next process, so it is organized in a process layout form, which facilitates the
production of Automobile parts in a systematic way.

34
1.5 Selection Of Location:-

Location of the plant is important for any industry because it is

helpful to reduce cost. If industry located in well facilitate area than you can get all
facility immediately. Rajkot is such a place where you can get all facility like
transportation by road, railway and airport and also get technical and non-technical
manpower easily. So here maximum utilization of resource is possible.

Factors Affecting Layout Of Company:

Location factors are very much important in establishing a production plant.

1. Power:
We know that power is basic element for running smooth activity for
any industry. So generally people choose such a place where power is easily
available

2. Labor:
On growing modernization of plants, the requirement for skilled man power has
increased then that of unskilled man power. The cheap availability of labour from
the near by areas has proved to be great help for the company.

3. Transportation: -
It is a very important thing to be kept in mind while deciding the location. It cost
widely affects the overall cost. Rakot is centre area which is connected through
National highway 8-B and 8-A and Airport facility also available so it is helpful to
reduces cost of transportation for the company.

35
 1.6 MATERIAL HANDLING SYSTEM

In a manufacturing firm, the raw materials are obtained from the suppliers and are
stored in the storeroom. These raw materials are then issued to purchase
Department and are moved inside the plant from one process to another till they are
converted into finished goods.

Thus material handling involves movements of materials from one place to another
for the purpose of processing. They are moved either manually or mechanically.
The job tackled by material handling equipment like lift and trolley etc.

FACTORS AFFECTING MATERIAL HANDLING

1. Types of the product

2. Plant layout
3. Material handling equipment etc.

36
1.7 Production planning & control.

Production Planning and control are 2 important aspect of production. Production

planning is prerequisite of production control. Production control cannot be imaged
without production planning.

Production planning is the function of management to look ahead, anticipate

difficulties and take steps to remove obstacles before they are materialized. Where
n unit is constantly evaluated and compare with the standards set in advance.

At AMUL Ind. production planning is jointly done by Production and marketing

department on the basic of order. Production department plans production and its
operations. And on the basic of production planning, department and strict control
on the production activity and continuously evaluated the performance.

37
QUALITY CONTROL
DEPARTMENT

38
"Quality is an asset which may be offered to the
potential customer of a product or a service."

Quality is an important dimension of Production &

Operation Department. It is not enough for company to produce the goods or
services. But company has produce product with good quality. Because people
wants qualified products. The consumer of the final product of company wants
certain quality of products. If consumer is not satisfy with the product of the
company then it may happens that company loose the customers. So company has
produced qualified products.

For this quality company use the quality control

department to check the quality of the product. That’s why quality control
department is most important.

39
QUALITY POLICY

Amul Industries is committed for achieving “Total Customer Satisfaction”

through

1. Consistently supplying quality products to our valued customer in time.

2. Continuously improve on quality standards by implementing process

controls & prevention techniques

3. Improving manufacturing facilities.

This commitment is met by nurturing quality culture & team spirit.

 Amul has also quality control department. In this department quality of

the entire product is checked. If there is something defect then it sends to
back for to improve the product.

40
Major function undertaken by AMUL:

1. RECEIVING INSPECTION:

In this first step all specification according to product drawing

check like dimension check.

2. INPROCESS INSPECTION REPORT:

In this process they checking randomly any piece at every hour to

know product is produced at uniformly.

3. FINAL INSPECTION:

41
 In this step finally inspection done visually by checking physical
parameter like product band, width, central dimension etc.

4. LAYOUT INSPECTION REPORT

In this step randomly three to five pieces selected for various

parameter check when it goes from forging to dispatch.

5. STUDY PROCESS CONTROL

There are mainly two processes

1. Control process for minor variation
2. Control process capability for major variation.

42
Marketing
Department

43
2.1 Introduction:

 Definition:

Marketing is the process of planning and executing the conception, pricing,

promotion, and distribution of ideas, goods and services to create exchanges
(with customers) that satisfy individual and organizational objectives.

 Need for Marketing of automobile parts:

Some of the factors like competition create awareness of product to customer,

market penetration, to achieve goal for selling in particular segment, to establish
good image of brand of product to customer, etc are driving force behind
marketing task.

As additional companies are coming up in the other region, there is stiff

competition. This companies need to adjust themselves to changing situation by
upgrading the technology, widening product range, developing new market
segments, improving existing, channel of distributions etc.

 Essentials of automobile parts Marketing:

o Focus on brand name

o Effective public relations

o Price differentiation

o Strong distribution network

44
2.2 Organization chart of Marketing Department:

M.D.

MARKETING DEPARTMENT

DEVELOPMENT REGULAR
MARKETING MARKETING

45
2.3 Market Segmentation:

A company, which decides to operate from some part of market normally, can not
serve all the customers in market. To maximum utilization of available market &
resources to the sales the company adopts the market segmentation policy.

AMUL Ind. adopts market segmentation on following basis.

1. Heavy motor vehicle

2. Sport utility vehicle

3. Car segment

4. Diesel engine

5. Earth mover

6. Tractor segment

46
2.4 Price Mix:

Price is the only element of marketing mix that produces revenue. So we can say
that price is one of the most important element determining company’s market
share and profitability.

When it comes to setting up the price, it is the most crucial decision. Price
decides the market share and profitability. So any mistake in deciding price will
affect too much to unit.

AMUL Ind. Follows pricing policy as mention below:-

Cost Oriented Pricing:

It is the simplest method for price. It also says as cost plus & target pricing.
AMUL Ind. keeps the following point in mind while deciding on cost base.

1. Raw material

2. Machining cost

3. Nut bush charges

4. Packing cost

5. Transportation cost

6. Other cost.

47
2.5 Channel Management

According to Bucklin, “A channel of distribution shall be considered to comprise

a set of institution which performs all of the activities utilized to move a product
and its title from production to consumption.”

When producer relinquishes some control over how and to when products are
sold to marketing intermediaries, it is said to be the channel of distribution.

AMUL Ind. is mainly concern in manufacturing of automobile parts so there is

no requirement of door-to-door marketing. Here AMUL Ind follow business To
business marketing means they use zero level system.

48
2.6 Promotion Mix:

AMUL Ind. promotion is combination of two strategies i.e.

A. Sales Promotion:

Definition:

To communicate with individuals, groups or organizations to directly or

indirectly facilitate exchanges by informing and persuading one or more
audiences to accept an organization's products.

Objectives to be achieved by the AMUL Ind. through sales promotion

are:

1. To stimulate the buyer for purchasing the product.

2. To consider the type of market, competitive condition of market.

With the help of various auto fair AMUL Ind. make sales promotion.

B. Advertising:

In the present period of business management, advertising is the most important

media to stay in the market. To earn profitability in business it is very necessary
to advertise our product of doing its publicity. Through advertisement one can
differentiate its product from the product of the other company.

Advertising is primarily a private enterprise marketing tool; it is used in all

countries of world. Advertising is the cost effective way to disseminate messages,
whether it is to build brand preference for all over the world to motivate
developing nation. There are various advertising media like magazine,
newspaper, radio, television, outdoor display, direct mail, cards, catalogs,
aerators, etc.

AMUL Ind. adopts ECMA as their advertising tool.

49
LIST OF CUSTOMER

1. Tata Motors Ltd.

2. Mahindra & Mahindra Group

(Mumbai, Nagpur, Igatpuri, Zaheerabad)

3. Simpson & Co. Ltd.

4. Eicher Group (Pithampur, Alwar)

5. Same Deutz - Fahr India (P) Ltd.

6. Greaves Cotton Ltd. (Tractor Unit)

7. Swaraj Enginer Ltd.

8. Kirloskar Oil Engines Ltd.

9. Tecumseh Products (India) Ltd.

10. INGERSOLL-RAND (India) Ltd.

11. Lombardini India Pvt. Ltd.

12. Cummins India Ltd.

13. Hero Motors Ltd.

50
Human Resource
Management

51
INTRODUCTION:-

Manpower is one of the important aspects to be taken into consideration. If a

company has highly advance technology for the production unit but does not
have well skilled labor to operate the machineries then all the technology is a
waste. Even after having highly advanced technology the unit cannot excel in its
production objectives. Human resource management deals with the human aspect
of the organization.

Personnel management is management of man power is being defined by various

experts as follows:

By Adovin Flippo:- “It is basically concerned with two important function is

managerial function, under which planning, organizing, directing, and
controlling are included and also operating function under which procurement
development, compensation integration and separation are included.

Thus in short, it is concerned with the obtaining and maintaining of satisfactory

and satisfied work costs. The main objectives of personnel department are:

1. To select the personnel on need.

2. Effective utilization of personnel in the achievement of organization
goals.
3. To safeguard the interest of labor and management by securing the
highest level of mutual understanding and goodwill among those
sections in the company which participate in the manufacturing
process?
4. To maintain harmonious relations between workman & management.
5. To sustain & improve work condition so that the employee nay sick
to their jobs for longer period.

52
Now a day in India, the importance of personnel has been identified and realized
and therefore maximum efforts are being done to develop it and thus Amul has
maintained a separate department having separate nice president.

OBJECTIVE OF HRM:

SOCIATEL OBJECTIVE:

This refers to be ethically and socially responsible to the needs and challenges of
the society while minimizing the negative impact of such demands upon the
organization.

ORGANIZATIONAL OBJETIVE:

This refers to recognize the role of HRM in bringing about organizational

effectiveness. HRM is not an end in itself. I is only a means to assist the
origination with its primary objectives.

FUNCTIONAL OBJECTIVE:

It refers to maintain the department contribution at a level appropriate to the

organization’s needs. Resource are wasted when HRM if it her more or less
sophisticated to suit the organization’s demand.

PERSONAL OBJECTIVE:

It refers to assist the employees in achieving their personal goals, at least in so far
as these goals the individual’s contribution to the organization. Personal objective
if the employees must be met if worker are to be maintained, retained and
motivated.

53
Organization of Personnel Department

AMUL Ind. consists of line and staff type of organization. Personnel Department
is under direct control of senior general Manager who is responsible to managing
director in AMUL Ind. Here the main functions followed by personnel
department are:

o To identify the actual requirement of personnel and than fulfilling it

with appropriate and efficient personnel.

o To lay down the recruitment procedure.

o To conduct interview for selection of efficient person.

o To deal with the matter relating to transfer and promotions.

o Wage & Salary administration.

o Job description

o To maintain the personnel record.

54
Recruitment, Selection, and Placement:-

Recruitment can be actually defined as “the generation of the application for

specific post” thus it is a searching of prospective candidates, a process of getting
potential employees who are willing to apply for the job in the company.

In India, the skilled employees are not available vary easily, one can not find a
right person at right time, at right place.

When vacancy is found in any of the organization department, the department

heads fills up a requisition form in which all age, duty, every qualification, and
experience is being sent to the personnel department and after it is being
approved is being advertised on the notice board of unit or in newspaper,
magazines, etc. while selecting the means of communication for recruitment
emphasizes is given on targeting proper personnel.

55
 1. Recruitment process.

The requisition of skilled and unskilled personnel is being fulfilled through

advertisement in newspaper or sometimes by personnel recommendation by the
present employee for his relation or by supervisors. Skilled persons are also
obtained through some technical institute like ITI etc.

AMUL Ind. follows step by step process for recruitment of

manpower. First candidate fill up man power acquisition form than personnel
manager and general manager check criteria like qualification, experience etc.
and if they satisfy than they call for personnel interview. Many times they recruit
manpower from database.

In AMUL Ind. same recruitment process follows for helper

through general manager.

56
 3. Selection Procedure for workers.

The company has adopted two methods of selecting the essential workers in the
organization. One of them is to call the candidates for personnel interview and to
know his basic knowledge, attitudes regarding the job and some other basic
testing. This is a kind of preliminary interviews.

In AMUL Ind. for selection of technical staff first they take their practical test
and if they satisfied than company take their feedback and for non-technical staff
they check computer literacy and English fluency.

57
 4. Induction:

Once the candidate is selected, he has to go for the probation (induction) perform,
which is generally for one year. To facilitate the selected candidate to have
introduction with the organization, its structure, behavior, rules, regulation, the
induction period is very necessary. The employee has to fill various forms
regarding PE, EST, etc and is provided with “Induction kit”, containing the
information as above. He is also being given the general idea a responded to his
duties, work, responsibilities, for which he has been selected. The reason behind
induction program is to make the employee well set with new environment
speedily.

58
Training and Development

Training means “Any process by which the aptitude, skill, ability of a person to
perform a specific job can increase”.

AMUL Ind. has given specific importance to training and development program
because,:

o It helps in personnel development, prevention from accident to make

healthy environment, efficient manpower planning to raise in stopped of
work.

o It helps in yielding higher productivity with the use of efficiency.

o It also brings acceptability of changes.

The seminar and training program one also held within the campus premises. The
training needs one determined by the departmental needs and the concerned
officers.

Development is a related process but can be rather be more important for

managerial level employees, who require much of theoretical knowledge and for
a long duration of period.

59
Job description:

Job Description is a written documentary outline of the principle facts about

individual jobs. In short, it refers to the data obtained through of the analysis
process.

Personnel department of AMUL Ind. describes job as means of giving job related
information and guidance to candidate for which he/she is selected. This is done
to avoided confusion in duties and responsibilities of different employees.

When any candidate is selected at that time information is given to him about
his/her job. This information includes following points.

a) Working condition

b) nature of the job

c) About his/her duties and responsibilities.

d) Relation with the job.

e) Tools and equipments involves in doing job.

f) About superior from whom he/she will have to control and guide.

g) About sub-ordinate to whom he/she will have to control and guide.

In AMUL Ind. there is no policy of following written job description as they

don’t feel it important. Generally it is being performed orally.

60
Promotion and Transfer Policy

Promotion means to uplift of an employee within the organization and advance

him in the direction of top level. Thus it means to increase in authority,
responsibility, status, salary, etc. in AMUL Ind. there is one specific criteria and
system and program to transfer the person from one job to another higher job. In
normal courses employees are promoted on the basis of seniority and work
performance for helper and behavior, education and work experience for official
staff. Their skills and performance within the organization in job. So here the
promoting system is subjective not the objective. This policy increases the
interest and efficiency of the person who is working in the organization.

61
Performance Appraisal System

Performance Appraisal is a continuous process where by each employees’

performance is to be assessed and systematically reviewed by his superiors and
guidance given to help the employee to overcome the short coming and increase
his effectiveness in the job. The system is quite equal in various administrative
decisions as selection, training, promotion, transfer, increment, etc. by this way
the organization can make the best use of its manpower.

Purpose of Performance Appraisal at AMUL Ind.:

a) Evaluation of Performance of work assigned.

b) Plan for training & development need.

c) Determined suitability for promotion

d) Recommendation for salary review.

e) To serve as a controlling/measure.

62
Wages and Salary Administration

For a Personnel Department wage administration is the most important decision

for the personnel manager. It has initial relation with job evaluation department.
There wage and salary is the compensation paid to the employees in monitory
terms on a record of their work. In addition to wage and salary, other payment as
house allowance is also paid.

In AMUL Ind. wages & salaries are paid on 7th day of every month. This unit is
making cash payment.

A separate salary call has been maintained to the salary records. The amount of
salary paid depends on the post of the employees.

Provident Fund Scheme

Provident fund is a statutory obligation of cost of the employees by the act. Any
employee who has 120 days of continues job, a financial scrutiny on the part of
employees, after retirement from job. It is applicable to the unit which engaged
more than 50 employers within its organization.
As par company act 1956, AMUL Ind. also provides facility of Provident fund to
their Employee.

63
Grievance Handling Procedures:

“Complains affecting one or more individual workers in respect of their wages,

payment, overtime, leave, promotion, work assignment, working condition and
interpretation of service agreement with constitute grievance.”

According to Amul it is our best policy that in our organization

grievances are never happened. If this type of situation occur in organization we
can solved it within our four walls.

64
Trade Union
Trade union is a completely voluntary association. It tries to improve relationship
between employees and management.

There is no trade union available in AMUL Ind.

65
Personnel Record:

In Amul personnel department maintains personal file of each employees of the

company. In this file necessary details regarding the person are kept at Amul has
introduces a modern method of keeping records of personnel. The data regarding
the details of each employee is fed into the computer and stored, but in case it
gets deleted then Amul also maintains hard copy, the file is being kept under the
control of personnel department in the following sequence.

1) Name of Employee

2) Employee Number

3) Designation

4) Department

5) Permanent and Local address

6) Application form

7) Interview letter

8) Appointment letter

9) Medical fitness certificate, qualification and experience

10) Background and other personal information like

birthday etc.

66
Purpose of maintaining personnel records:

a) To supply the information required by government agencies.

b) To conduct research in the field of industrial relation.

c) To enable personnel manager to propose training and development

programmers.

d) To review and revise scale.

Personnel Policy:

a) To select proper personnel on need bases and its effectiveness utilization

in achieving goals.

b) To safeguard the interest of labor and management by searching the

highest level of mutual understanding

c) To advice and assist for high moral and better human values by sustaining
and improving the conditions which has been established so that
employees may stick their jobs a longer period.

d) To maintain harmonious relation between workman and management

e) To enable employees to enjoy a life through active participation in the

recreation activities.

f) To fulfill legal compliance in time and maintain good relation with

government authorities, other agencies and local bodies to enrich
companies vision and mission.

67
Employee Welfare:

The profitability and productivity of any organization depends upon the industrial
relation, who means the extent of relation between administers and employees of
the unit.

The management of AMUL Ind. wishes to inside employee to his organization

and also they provide many benefits to the employees which are as under.

AMUL Ind. Possesses good industrial relations. All the employees are quite
satisfied with wage rate and other facilities offered by the organization. The unit
provides the beneficial activities to each of the employees and his family member
as mentioned.

A. Medical Facilities:

AMUL Ind. has Tie up with one private hospital and when any employee is sick
and injured, goes to hospital and gets the necessary treatment.

In case of accident, the company pays the full expenditure, incurred for the
treatment of workers. The accident was occurred within the organization, while

68
performing duty then the workers will get salary too for the days of rest advised
by the doctors.

B. Leave facility:

a. Festival Leave: All the employees and staff get festival leave.

b. Sick Leave: The unit grants sick leave to the employees. He can
take leave for 20 days and time during a year.

c. Casual Leave: Amul procure 2 days as a casual leave.

C. canteens Facility:

a. Canteens facility is provided to office staff people.

b. Three time tea provided for all the worker per day.

D. Other Facility:

a. .Education facility to employee family.

b. Entertainment Facility.

c. Festival celebration.

d. Tour.

e. Yoga classes

69
 FINANCE
DEPARTMENT

70
71
4.1 Introduction:
It is said, “Finance is the arms and legs of business “. A potential and capable
management can run the department very effectively. In finance department
each and every decision should be taken in such way that every pie of money
should be utilized in adequate manner.

In AMUL the finance department is handling by two managers. One is account

manager and other is finance manager under control of M.D.

72
4.2 Organization of Finance & Account Department:

Finance department

Account manag Finance manager

Assi. Staff Assi. Staff

73
4.3 Financial Planning:

Financial Planning means planning of finance. In the planning of finance not only
planning is done for spending the money but also planning is done for finding
and evaluating source of finance.

As per Government rules and regulations AMUL Ind. has the financial year from
April to March and on that basis at the year, Balance sheet is prepared and net
profit is find out.

Finance Department of AMUL Ind. explains financial planning as systematic

arrangement of financial resources of the company in order to reach the current &
future finance requirement. It consists of budgetary control, profitability
planning, sales & cash budgeting.

Sources of funds in AMUL Ind. are:

1. INTERNAL SOURCE:

Share capital
Reserves & surplus.

2. EXTERNAL SOURCE:

Secured Loans
Unsecured Loans

It is tried to collect the fund at very cheap rates & utilized in the best possible
manner. For best utilization of funds, AMUL prepares two types of plan. Two are
as below:

74
 A. SHORT TERM PLANNING

Financial planning is done for less than once in a year, so it is known as short-
term planning.

AMUL does it annual planning and quarterly basis they compare actual result
with standard which predetermined and than find deviation and try to solve for it
by many ways like.

1. Increase production capacity to increase sales.

2. Control on rejection.

3. Control of idle machine.

4. To improve the market condition.

B. LONG TERM PLANNING

Planning done for more than one year then it is called long term planning.

Amul’s financial year is April to march so; Amul generally does its long term
planning in the month of April. Amul does its financial planning on yearly, two
yearly, and five yearly.

75
4.4 Capital Structure:
The capital structure is made of debt and equity securities, which compromises a
firm’s finance of its assets. It is permanent financing of firm, represented by long
term’s debt plus preferred stock plus net worth.

Capital Structure of AMUL Ind. is as:

Particulars Rs.
31-03-2006
(A) Share capital 30,000,000

(B) Reserve & Surplus: 49,224,410

(C) Loans & Funds

Secured loan 154,282,283

Unsecured Loan 122,385,067

TOTAL 355,891,760

Last two years Performance: in Rs.

Particulars 2005 2006

PBDIT 49767480 81705290

76
Profit before Tax 13161340 34199828
Profit after Tax 8586767 22023680

AMUL INDUSTRIES PVT.LTD.

BALANCE SHEET

PARTICULARS MARCH’ 06 MARCH’05

1] SOURCE OF FUNDS

a) Shareholder’s funds
Share capital 30,000,000 30,000,000
Reserve funds 49,224,410 27,200,730

b) Loaned funds
Secured Loans 154,282,283 93,241,376
Unsecured Loans 122,385,067 122,517,674
c) Deferred taxes 11,919,945 12,193,721
367,811,705 285,153,501
2] APLICATION OF FUNDS

d) Fixed assets 154,778,101 121,702,865

e) Current assets, Loans &

Advances
Inventories 120,680,587 101,710,154
Sundry Debtors 246,085,757 165,344,604
Cash & Bank balance 4,955,647 4,087,856
Loan & advances 37,026,723 24,341,018
408,748,714 295,483,632
Less: Current liabilities &
Provisions
Current liabilities 178,524,426 127,032,996
Provisions 17,190,684 5,000,000

77
 195,715,110 132,032,996
Net Working Capital 213,033,604 163,450,636
367,811,705 285,153,501

Amul Industries Pvt. Ltd.

Profit & loss Account as on march 2005-06

PARTICULAR MARCH ’06 MARCH ‘05

[1] INCOME

Gross Sales 878,582,854 633,842,543

Less: Excise duty 98,444,285 79,488,758
Net Sales 780,138,569 555,353,785
OTHER INCOME 1,904,177 2,407,612
STOCK VARIANCE 11,660,029 1,713,13
793,702,775 558,474,534

[2] EXPENDITURE:
Material consumed & 640,701,834 453,261,886
Direct taxes
Personnel expenses 25,045,868 22,781,091
Adm. & selling expenses 46,247,783 32,664,077
711,997,485 508,707,054
PBDIT 81,705,290 49,767,480
Less: Interest 28,234,339 21,622,087
Depreciation 19,271,123 14,977,957
Miscellaneous 6,096
47,505,462 36,605,140

PBT 34,199,828 13,161,340

Less: Provision for tax
Current tax 11,850,000 2,900,00
Deferred tax (273,776) 1,752,986
FBT 490,684
Short taxation provision 109,240 178,413

NET PROFIT AFTER TAX 22,023,680 8,586,767

78
Balance brought forward
from previous year 21,730,544 13,143,777
TOTAL 43,754,224 21,730,544

RATIO ANALYSIS:

[1] GROSS PROFIT RATIO:

The ratio establish relationship of gross profit with sales to measures

the operating efficiency to the firm and to reflect its pricing policy
The gross profit by sales.

Gross profit ratio of 2005-06 Gross profit ratio of 2004-05

gross profit gross profit
Net sales Net sales

81705290 49767480
780138569 555353785
10.473177 8.9614011

A high ratio is an indication of good management. A relatively low ratio is

Indication of lower profitability.

Amul industries pvt. Ltd. Was the sufficient gross profit ratio

79
 [2] NET PROFIT RATIO:

The Ratio measures the relationship between net profit and net sales
of the firms obtained through divided by the net profit by net sales. It indicates the
proportion of the net profit after deducting all the expenses including tax

Net profit Ratio of 2005-06 Net profit Ratio of 2004-56

Net profit Net profit

Net Sales Net Sales

22023680 8586767
780138569 555353785

=2.8230472 =1.5461796

The net profit margin indicates the management abilities to insufficient

Profit to sales. A high ratio ensures adequate return to owner and also enables firms
To with stand adverse economic condition.
In Amul Idustries Pvt. Ltd. They have low ratio of the net profit, So we can
say that there highly direct expenses due to this expenses their net profit ratio was
Very low.

80
 [3] DEBTOR TURN OVER RATIO

The debtor turnover ratio indicates the number of times or the leverage that
debtors turnover ech year. The debtor turnover canbe calculated by deviding total
sales by the year and balances of debtors.

Debtor turnover ratio of 2005-06 Debtor turnover ratio of 2004-05

Sundry Debtor X 360 Sundry Debtor X 360

Total sales Total sales

246085757 X 360 165344604 X 360

878582854 633842543

=100.83383 days =93.909849 days

[4] CURRENT

81
 RATIO

The current ratio express relationship between current assets and current
liabilities and can be calculated y dividing current assets by current liabilities

Current Ratio of 05-06 Current Ratio of 04-05

Current assets Current assets
Current liabilities Current liabilities

408748714 295483632
195715110 132032996

2.0884883 2.2379529

The current asset ratio measures the short term solvency of the firm.
In a sound business the current ratio is considered ideal as a one. If currentratio is
lower than short term solvency of the firm is not in a position to meet its current
liablity in time.

In Amul Industries Pvt. Ltd. The current ratio is higher thanthe standard
ratio

82
4.6 Management of Fixed Assets:

Fixed assets are the tangible assets, which cannot be turned into cash on short
period of time. Management of fixed assets is the most important decision in the
field of finance for any organization and especially in cement industry, which has
its most of investment in fixed assets.

Company having the following investment in fixed assets:

Particulars Rs. (In

Crores)

Building 39151122.17

Furniture & fixture 12731217.53

Land 2943086.10

Plant & machinery 257446920.06

Vehicle 5209067.77

83
  Capitalization:

Capitalization refers to the decision regarding the total requirements of the long
term funds. Any imbalance between realization value of assets and total
capitalization i.e. long term funds results is over or under capitalization.

 Over Capitalization:

Over capitalization means real value of shares is higher than book value. It occurs
when the realizable assets are less than the long term funds of the company.

 Under Capitalization:

Under capitalization occurs when the real value of the shares is less than the book
value. It occurs when realizable values of assets are more than the long term fund
of the company.

AMUL is under capitalization this reflect the progressive and healthy stock of the
company.

84
 1.8 Working Capital Management:

 Management of Receivables:

In the present period of the competitive market to increase sales to meet

competition it has become necessary to provide credit facility but it is also
essential to receive the bills as speedily as possible.

Generally AMUL Ind. allows credit for 75 to 120 days.

Management of Inventories:

Primarily executives in production, purchasing and marketing department take

decisions relating to inventories. Usually purchasing shapes Raw material
policies & production department, work in progress is influenced by decision of
production department and the production & marketing department executives
shape finished goods policies. The finance manager has the responsibility to
ensure that inventories are properly monitored and controlled.

85
 FINDINGS

My visit to AMUL Industries Pvt. Ltd. has become the one memorable thing and
as well as useful also .I never forget it and I really feels that AMUL Industries
Pvt. Ltd. is the NO.-1 Connecting rod manufacturing company in India. This
training helps me a lot to get the practical knowledge of the organization. Every
people peon to manager helps me to know me to know the company and also help
in prepare the project. It was a nice experience and I never forgot it.

From the study of the company AMUL Industries Pvt.

Ltd. we can say that the future of the company is bright. It is not new comer in
the market at present. That why market share of company is very good comparing
to the other auto ancillary manufacturer. If they are providing good & more
facilities to the consumers continuously then the consumer can be easily attracted
& they are able to get additional market share of auto ancillary industry.

So here we can say that Amul industries Pvt. Ltd. Is an enterprise which
expanded very well. If we show the success story of Amul than we can know the
what they achieved and how they achieved. Their success story describes their
effort. Amul started their business in 1988 with only Rs.1 lack as a partnership
and today it is working as a Private limited company as a market leader of
connecting rod manufacturing company.

86
 BIBLIOGRAPHY

A. Reference Books:

o Production Operation Management: By S. N. Charry

o Finance Management: By Khan and Jain

o Human Resource Management: By C.B. Memoria

o Marketing Management: By Phillip kotler

B. Internet:

1. www.amulind.com
2. www.google.com
3. www.chacha.com

87
4. www.mahalo.com

88