INDEX

SR.

CONTENTS

NO.

PAGE
NO.

1.

INTRODUCTION

1-2

2.

GENERAL INFORMATION

HISTORY AND DEVELOPMENT

4-6

GENERAL ORGANIZATION STRUCTURE

SIZE OF THE UNIT AND FORM OF THE

ORGANISATION
TIME KEEPING SYSTEM

MISSION & VISION

10

LOCATION OF THE UNIT

11

RAW MATIRIALS USED IN THE PROCESS

3.

12-13

TYPES OF PRODUCT (BAUXITE)

14

EXPLANATION OF THE CHART

15-17

PROCESS FLOW CHART OF LAW GRADE BAUXITE

18

PROCESS FLOW CHART OF HIGH GRADE BAUXITE

19

PERSONNEL MANAGEMENT

20

ORGANISATION STRUCTURE OF HR

21

RECRUITEMENT

22

SELECTION

23

INDUCTION PROGRAMME

24

TRAINING AND MANAGEMENT DEVELOPMENT

25

4.

PROMOTION & TRANSFER POLICY

26

PERFORMANCE APPRAISAL

27

TRADE UNION

28

GRIEVANCE HANDLING PROCEDURE

29

PERSONAL RECORD

30

MARKETING MANAGEMENT

31

INTRODUCTION

32

ORGANASATION STRUCTURE

33

PRODUCT PLANNING
MARKET SEGMENTATION

36

TARGET MARKET

37

SWOT ANALYSIS

38-39

PRICING POLICY

40

CHANNLES OF DISTRICUTION

41

SALES PROMOTION

5.

34-35

42-43

ADVERTISING

44

MARKETING RESEARCH

45

FINANCE MANAGEMENT

46

WORKING OF FINANCE AND ACCOUNT

47

DEPARTMENTS
STRUCTURE OF FINANCE MANAGEMENT

48

FINANCIAL PLANNING

49

BALANCE SHEET

50

PROFIT AND LOSS ACCOUNT

51

MANAGEMENT OF FIXED ASSETS

52

INVESTMENT

53

CAPATIAL BUDGETING

54

MANAGEMENT OF WORKING CAPITAL

55

INVENTORIES

56

PROFITABILITY AND DIVIDEND DISTRIBUTION

57

A TREND ANALYSIS OF SEVERAL PASS YEARS

CAPITALISATION

58

6.

CONCLUSION

59

7.

APPENDIX

60

8.

BIBILIOGRAPHY

61

INTRODUCTION
The report presented in the following pages represents the ASHAPURA GROUP and the
working of ASHAPURA MINE CHEM. LTD at Jamkhambhalia site.
The ASHAPURA GROUP OF INDUSTRIES is engaged in mineral mining and its export.
The Ashapura group is engaged minerals like bentonite, bauxite and kaolin.
As we know the export is necessary to gain the foreign index and to level up the import.
Ashapura Minechem. at Jamkhambhalia site is famous for its bauxite production and its
export. Therefore Ashapura group is a major player in export due to its high mineral portfolio
and its own freight facilities. Ashapura wants to emerge as a world class company through
proactive customer support, innovation and cutting edge technology. Reliability and social
responsibility will become benchmark for other companies to emulate.
Production department of the AML is eye catching. I observed as AML is that to maintain the
quality of production they have kept special employees to check the raw material, semi-

finished product and final product also. Every time they are taking samples and send it to lab
for inspection and after approval of the lab then only material are proceeds.
H R department is also effective organized company is aware f the fact that employees are
their most valuable asset. Company tries to satisfy most of their needs and provides them
satisfaction to the fullest extent.
Systematic wages and salary payment including welfare facilities and services coupled by
workers voice in the management smoothen the job of handling the personnel in AML.
AML does well for these personnel and their problems and has a very good grievance
handling system and workers relationship. AML also does proper scientific recruitment and
selection procedure. They selected right person at right place at right time.
In AML marketing department is also done well but is totally done from the head office.
Company always gives preference to the need and wants of the customer and always tries to
provide satisfactory services to its customers.
Finance department is the mirror through which a company sees itself. To operate effectively,
all the transaction are to be recorded in terms of money and quantity, sale, gross profit, net
profit and information about debt and equity, as well and also capital structure is good. In
AML they prepare monthly budget and that much amount they will take from head office for
their expenses.
In AML there is also separate department for quality assurance for environment protection &
pollution control. So in short, AML is well managed, highly disciplined and aware about
global market and strive for continuous improvement in quality of products and services.

General
information

HISTORY AND DEVELOPMENT

Established in 1960 the Ashapura group is Indias largest multi-mineral solutions provider. Its
flagship company Ashapura Minechem Ltd. is listed on Indias premier exchanges. Ashapura
Minechem Ltd. which is a part of the BSE Midcap & BSE 500 indices was ranked 4th in
terms of Net Profit growth and 21st in terms of Super Rank by Business Standard (December
2006). The multinational group has mining & mineral processing facilities in Belgium,
Nigeria, Oman and Malaysia; in India it operates from Gujarat, Maharashtra, Karnataka,
Kerala, Andhra Pradesh and Orissa.
The Ashapura group is one of the largest exporters of traded bauxite in the world and is
amongst the worlds top five Benonite companies. Ashapura also dominates the value added
segments in the country for Bleaching Clay, Geosynthetic Clay Liners, Clay Catalysts and
Calcined Bauxite.
Ashapura the journey to excellence
When Navnitlal R. Shah, the Companys
Chairman, returned to India from Burma, he
had confidence in his ability to convert
opportunities to a profitable venture. He
started a partnership business in bentonite in
the 60s. By the early 80s, the business
flourished due to the export of drilling grade
of Bentonite to the Middle East. The war in
the Middle East forced the company to
explore

new

applications.

Since

Mr. Navnitlal R. Shah

Executive Chairman

then

Ashapura never had to look back

SOME MAJOR MILESTONES

1960 : Mr. N.R. Shah starts a partnership business in bentonite
1970 : An Office and a factory was set up in Bhuj
1972 : First export order received from Yugoslavia and then Iraq

1975 : Chetan Shah, the Chairmans son, joins the business

1980 : The Shah family separated from their partners
1980 : Alternate uses of bentonite explored like oil & water well
drilling, iron ore pelletization, metal casting, civil
engineering, bleaching clay etc
1982 : The partnership firm was converted to a Company
1991 : Marketing alliance established with Mitsubishi Corporation.
Major support received mainly in developing Bentonite for
Iron Ore Pelletization
1992 : Ashapura Shipping Ltd. (ASL) established
1993 : Ashapura Minechem Ltd went public with an equity issue
of 600,000 shares
1995 : Diversification into bauxite business
1995 : Cat Litter business was started
1997 : Indo-American-Japanese joint venture Ashapura Volclay
Limited started to manufacture value added Bentonite
products
1999 : AMCOL International Corporation acquires 20% stake in
Ashapura Minechem Ltd.
2001 : Established a state-of the -art Knowledge & Innovation
Centre at Belapur
2001 : Ashapura acquired 51% stake in M/s. Bombay Minerals
Ltd.
2002 : Successful commissioning of Acid Activated Bleaching
Clay plant
2003 : Calcined Bauxite plant commissioned
2004 : Ashapura Group crosses Rs. 500 cores turnover
2005 : Received in-principle approval from Gujarat Government
for setting up Alumina Refinery
2005 : Geosynthetic Clay Liners (GCL) plant commissioned
2006 : Bleaching Clay Plant capacity doubled from 25,000 tons to
50,000 tons
New global projects- Nigeria, Antwerp, Malaysia
New domestic projects - Port infrastructure, Kerala for
Kaolin
2006 : Rs. 2500 crore Kutch alumina refinery project receives final
OK from Gujarat Government
2007 : Began setting up a project at Oman

2009 : Signed MOU with Government of Maharashtra to set up a

state-of-the-art Alumina Complex, with a refinery, smelter
and captive power plant
2010 : New Initiatives in Indonesia to explore value added
Minerals

Board of Directors

Managing Director

Quality assurance manager

Quality control manager

Director operation

Quality control in charge

Quality assurance officer

Quality control officer

Director marketing

General Manager

Production manager

Lab assistant

Production in charge

Production officers

Workers

Regulatory affairs manager

Regulatory affairs in charge

Regulatory affairs officer

Maintenance in charge

Maintenance executive

Store in charge

Store officers

Chart No.-1
Workers

GENERAL ORGANIZATION STRUCTURE

Quality assurance in charge

Director finance

SIZE OF THE UNIT AND FORM OF THE ORGANISATION

1.

Name

: - Ashapura Minechem Ltd.

2.

Form of the organisation

: - Public Limited Company

3.

Establishing Year

: - 1960

4.

Auditors

: - M/s Sanghvi & Company

Chartered Accountant, Rajkot.

5.

Export/Import ratio

: - 100%

6.

Bankers

: - Bank of India
UTI Bank Ltd
Union Bank of India
Export Import Bank of India

7.

Company Secretary

: - Mr. Sachin Polke

8.

Line of Activities

: - Selling Bauxite

9.

Type

: - Middle Scale Industry

10. Registered Office

: - Jeevan Udyog Bldg. 3rd floor

278, D M Road, Fort
Mumbai 400001
Tel. No. +91-22-66221700
Fax No. +91-22-22079395/074452

11. Web site

: - www.ashapura.com

TIME KEEPING SYSTEM

It is very important for any organisations to know how much employees in the division can
work continuously. It is also important to know whether how many works can work at the
time. For this the organisations has got time keeping system which handled the timing of
employees working in the division.
This is very important in Ashapura Minechem Ltd. The working hours of all the employees
are 09.30 am to 06.30 pm is there and the working hours of the production department is
done in shift wise which is as follows:1st shift

: - 06.00 am to 02.00 pm

2nd shift

: - 02.00 pm to 10.00 pm

3rd shift

: - 10.00 pm to 06.00 am

MISSION

We have a simple but unique mission statement: We will live up to our name We will
consistently work to realize hopes ours and those of our stake holders - customers,
business associates, shareholders, employees, community, governments
Hopes fulfilled give rise to new hopes resulting in continuous improvement in the pursuit of
excellence.

VISION

To emerge as a world class company and preferred partner to diverse industries through
proactive customer support, innovation and cutting edge technology. Our standards of
integrity, reliability and social responsibility will become benchmarks for other companies to
emulate. The commitment, zeal and team spirit of our human resources will enable us to
transform this vision to reality.

LOCATION OF THE UNIT

Location is the place where we established our industry. We should select the location where
the cost of the production is lowest and easy availability of all the necessary factors.
A M L is located in Jamkhambhalia because of below given factors.
1.

Easy availability of raw materials

2.

Cheap and qualified labour.

3.

Low transportation cost.

4.

Nearness to market port and mines.

5.

Proper power and water supply.

6.

Cheap land

7.

Government benefits.

RAW MATIRIALS USED IN A PROCESS

Bauxite Chemical Properties
Contents
Alumina
Calcium
Silica
Ferric
LOI
Others

High Grade
57-60%
1-3%
1-10%
1.4%
29-30%
Remaining

Law Grade
51-52%
1-3%
1-14%
3%
29-30%
Remaining

Physical Properties
It is a grey coloured rock found in form of natural deposits from the earth in form of large
lumps. It is a non-corrosive, non-flammable substance. Its fuses at a temperature of about
2000c.
High grade bauxite is more desirable and is around 650/- Rs. per mt. The law grade bauxite
that contains lower % of alumina is rated at Rs. 250/- per Mt.
L. S. H. S.
(Low Sulphur Heavy Stock)
It is low sulphur heavy stock. It is a thick vicious black liquid which is use as a fuel. It is
preferred over other fuels due to its low cost and high calorific value. It is brought from IOC,
Koyali and Baroda.
L. S. H. S. is stored in two tanks which are of 120 kl. capacity. The tanks are fabricated of
mild steel and are insulated. There are two pumps for transferring it to the plant.
L. S. H. S. ----------------------------- storage tank ------------------- service tank
Name of other raw materials
A.

Bentonite Granites

B.

Bentonite Powder

C.

Bentonite Processed Lumps

D.

Bentonite Inactivated Lumps

E.

Bauxite Lumps

F.

Attapulgite Lumps

G.

Bleaching Clay

H.

Kaolin

I.

China Clay

Types of product (BAUXITE)

The production chart shows the types of products and: -

Raw bauxite
High grade

Law grade

Calcinations process

Export

Calcined Bauxite

Cement Grade

Refractory Grade

Metal grade

General grade
Law ferric Grade
Abrasive grade
Abrasive
Pinching

Chart No.-2

Explanation of the chart

The above chart shows the types of products. Here two types of Bauxite are found during the
mining in raw form. Those are:
1)

High grade which contains above 55% of alumina and

2)

Low grade which contains below 55% alumina

The low grade bauxite is directly without any process exported in different countries from
mines. It is in different size and contains different percentage of alumina, silica, calcium,
titanium etc. the low grade bauxite is exported as per below parameters: CEMENT GRADE BAUXITE
Parameters
AI203
SiO2
TiO2
Fe2O3
CaO
Size
Moisture

Specifications
42-45 % min
10 % max
3-4 % max
10-25 % max
0.5-5 % max
0-100 mm
5% max

METAL GRADE BAUXITE

Parameters
AI203
SiO2
TiO2
Fe2O3
CaO
Size
Moisture

Specifications
45-47 % min
4-5 0% max
3-4 % max
15-25 % max
0.5-3 % max
0-100 mm
5% max

The High grade bauxite which contains more than 55% alumina is taken to the production
unit and the further process of calcinations is done and from that Calcine bauxite is prepared.
Calcinations process has three steps
1)

Kiln Operation

2)

Sampling

3)

Gradation Unit

1)

Kiln Operation

The process chart of Calcine operation is as follows

First of all the raw bauxite is taken into crusher to reduce the size of the lumps than in
elevator. Through elevator it is taken into the Cylo and than taken into the Killen where it has
given heat on 1300 to 1500 degree temperature for producing Refractory Grade and to
produce Abrasive Grade on 1000 to 1200 degree temperature it has given heat. At last it is
taken into cooler.
2)

Sampling

After the production sampling is done for Quality Assurance analysis. Below sample
preparation flow chart is given
Bauxite size 0-150 mm
Jaw crasher (size reduces up to 30 mm)
Sample divider (sample reduces up to 75 %)
Roll crusher (size reduces up to 3 mm)
Sample divider (sample reduces up to 2 kg)
Pulveriser (pulvelise material for quality 100mesh)
Blender (blend powder for quality sample)
Sample prepare with increment reduction

3)

Gradation unit

Handling:-

A proper care for handling of materials at all stages during processing, bulk of activities is for
raw materials, processed materials and packaged materials.
They provide handling facilities like loaders, trucks, forklifts, trolley and tractors. Also
provide the requirement man power and their training for carrying out handling activity.
Storage:While bulk loose bauxite raw materials and processed materials are stored in poniards,
packed bauxite is stored in covered storage sheds.
In coming material / items e. g. machine spare parts packing materials electrical items and
miscellaneous items are stored in general stores which have storage racks, cupboards office
facility.
Packing:After completing the whole process the last work is to dispatch the production. The dispatch
is done according to the size of the product and as per the customer requirement. The
different sizes are 0-1 mm, 1-3 mm and 3-5 mm. The capacity of the unit is 5 tonne per hour.
Generally 50 kg per bag is loaded for domestic market and 1 metric tonne per bag for export.
Preservation:The product bauxite does not have shelf life limitation. However they ensure that the finished
products are protected from occasional rains, winds to the extent possible.
Ashapura also uses many testing chemicals with limited shelf life and draws out a list of all
such items with the detailed shelf life and display in laboratory area.

PROCESS FLOW CHART OF LOW GRADE BAUXITE

MINING , SORTING
& SIZING

QUALITY
CONTROL

TRUCK LOADING

INTERNAL
SHIFTING AT PORT

UNLOADING AT
PORT & HIGH
PILLING

VESSEL LOADING

BARGE LOADING

Chart No.-3

CARTING TO PORT

PROCESS FLOW CHART OF HIGH GRADE BAUXTE

RAW
MATERIAL
STORGE

COOLER

BELT
CONVIEAR

SAMPLE
CHECK

KILN

HOPPER

HOPPER

ELEVATOR

BELT
CONVIER

BELT
CONVIEAR

FEEDER

ROLL
CRUSER

SAILO
ELEVATOR

Chart No.-4

PERSONNEL
MANAGEMENT

ORGANISATION STRUCTURE OF HR

Manager
HR & A

Asst.
Admn.

Office
Boy/Peon

Chart No.-5

Office
Admn.

Transport
sup
Security

Garage
staff/Driver

Asst HR

Office Asst
Time
Keeper

Tele
Operator

Comp Op.
cum Clerk

RECRUITMENT
In simple terms, recruitment is understood as the process of searching for & obtaining
application for jobs, from among whom the right people can be selected.
OBJECTIVE:To select the right person for right job at right time.
The rules recruitment of AML:The department head shall prepare his manpower plan for the staff, at the beginning of the
year as part of the budget exercise.
The vacancies proposed are to be filled in the format along with justification and this is to be
approved by director or managing director or unit head with job profile.
On receiving the duly approved requisition, HR department will study the same and will
initiate necessary action.
The recruitment will be done through the following method:-

RECRUITMENT
EXTERNAL
ADVERTISE
MENT IN
NEWS PAPER

Chart No.-6

INTERNAL

PLACEMENT

CAMPUS

AGENCY

INTERVIEW

TRANSFER

PROMOTION

SELECTION
Selection is the process of gathering information about application for a position and then
using that information to choose the most appropriate applicant.

SELECTION PROCESS FOLLOWED BY THE AML.

INITIAL
SCREENING
PHYSICAL
EXAMINATION

REFERENCE
CHECK

INTERVIEW

PERFORMANCE
REATING
INDUCTION

FINAL
SELECTION

Chart. No.-7

INDUCTION PROGRAMME

Complete Joining Formalities

Briefing about Business Group/Company Objective

Explain Company Standards

Explain Working Condition

Introduction to Staff

Offer Assistance for Accommodation etc.

Release Employee to his Department

TRAINING & MANAGEMENT DEVELOPMENT

Training is a learning process that involves the acquisition f knowledge, sharpening f skills,
concepts, rules, or changing of Attitudes & Behaviours to enhance the performance of
employees.
According to AML, training is essential because technology is continuously improving,
System & practice get outdated soon due to new invention and implementation in technology.
This leads to new ways of doing things.
AML follows the training process as under:-

INDENTYFY
TRAINNG
NEEDS

SET
TRAINING
OBJECTIVE

Chart. No.-8

AML provides training by two methods:1.

On the job

2.

Off the job

CHOOSE
TRAINING
METHOD

CONDUCT
TRAINING

EVALUATED
PERFORMANCE

PROMOTION AND TRANSFER POLICY

PROMOTION:Employees are promoted at Ashapura according to their performance. If the performance of
an employee is very good then he/she may be promoted to a higher post.
TRANSFER:Transfer refers to a horizontal or lateral movement of an employee from one job to another in
the same organization without any significant change in status and pay.
Ashapura also transfers the employees if necessary and if any employee requests to transfer
him/her then company transfers him/her only if any genuine reason is there.

PERFORMANCE APPRAISAL
In AML the performance appraisal system aims to provide a structure for a periodic review of
individual performance against principal accountability and an opportunity to discuss for
improvement activities over the next appraisal period.
AMLs objective behind the doing PA:To make the employees aware of their major areas of responsibilities.
To share with the employees their strengths, areas for improvement and their potential.
To assist the employees to develop his personnel & professional growth through self analysis
& counseling.
Help in deciding increment or promotion.
AML consider following factors for the PA:Job knowledge, communication, interpersonal skill, team work, output of job, initiative &
drive, creativity, attitude, intelligence, planning & organizing skills, performance &
efficiency, leadership skill, problem resolution, resource utilization & cost consciousness.
Overall performance rating of the factors:UPTO 40

=BELOW AVERAGE

041-060

=AVERAGE

061-105

=GOOD

106-125

=VERY GOOD

126-140

=EXCELLENT

TRADE UNION

In present day to day world trade union is necessary. First of all trade union was established
in textile industry according to trade union ACT-1962. a trade union combination of persons
either temporary or permanents for the purpose of a good relation between worker and
employee. Trade union is a association of workers.
Ashapura Minechem Ltd has not trade union. There is good relationship between employee
and worker of the company. It is friend and family members. It is worker have a any problem
regarding their problem is solved by administrative. So all the workers are satisfied with the
management and no need create a trade union.

GRIEVANCE HANDLING PROCEDURE

A company when reported to the management is turned as a grievance. A grievance is not
solved and time can lead to chores and dissatisfy in the organization. The complaint or
dissatisfaction arising among the employees due to payment policy of the company.
Promotion, transfer, working, condition etc. is termed a grievance act to Davis grievance is
really to imaging filling of personal injustice which an employee relationship.
In AML it any grievance arises then will be directly dealt by the personal manager.

PERSONAL RECORD
Personal records are the entire persona who is working in the unit. Personal record kept in
Ashapura Minechem Ltd. And the objective so important decision such as promotion
consider of the unit.
Personal record is maintained by respective department with the help. The record company
knows ability performance of employee. This record is important of the management help.
The timekeeping system is important of employee and worker with best ability. AML is also
keep employee services information of the record like absence or leave during the year
decision, qualification, age, date of join company, salary and condition regarding employee
record to maintained the future plan.

MARKETING
MANAGEMENT

INTRODUCTION
Marketing occupies on impotent position in the organization of business unit. As per the
modern concept of marketing producer cannot produce whatever he likes but produces
whatever customer wants. One of the shortest definitions of marketing is meeting need
profitably.
To-day marketing means to study and monitor environmental factors which helps the firm
finding out detent needs as creating need for new, emerging and dynamic class of consumer
by using creativity, innovation in provoking, penetrating and positioning the product.
It is the process to know perceived value of consumers, creating value driven products,
measuring value and delivery system to survive and sustain in highly competitive
environment factors, which continuously offer some opportunity and cause some teats.
The role of marketing has been changing continuously, since its emergence previously, it was
given the equal importance like other departments than it was given more importance than
other departments subsequently. Marketing has become the centre point in the organization.
And recently consumer has become the centre point and marketing has become its integrative
function.
Consumer focus is a necessary in todays competitive work. Customer at resent is the queen.
In the works, customer is the passport to profit. At present customer becomes a most
important consideration for every organization. Competition global quality standards
economic relatives create need of consumer orientation and it becomes the major function of
marketing today.

ORGANIZATION STRUCTURE

MARKETING DEPARTMENT

Field force
staff

Division business manager

President

Area business manager

President

Sr. sales officers

Gen. manager

Field officer

Trainee technical sales officer

Chart. No.-9

Head office

Sr. vice

Vice

Dy.

PRODUCT PLANNING
Product planning means planning for the product that is to decide what type of product is to
be produced or what needs or requirements the product is to satisfy and for whom the product
is meant. If the existing product lacks in satisfying the needs of consumers what type of
modification is require or if the product fails to draw the attention of consumers or become
unprofitable despite best efforts it should be eliminated or if there chance t should be improve
in terms of changing needs and preferences of the consumers. Thus Product planning includes
three type of decision.
1) Development and introduction of new product.
2) Modification of existing lines as may be needed in terms f changing need and
preference.
3) Elimination or discontinuous of marginal unprofitable or obsolete products.
The above decisions are influence by many internal and external factors i. e. position of the
market Competition, Company policy, goodwill of the Company, product image etc.
Product planning in excel is done in such a way that the product becomes easily available to
its user.
There are three types of product planning done in Ashapura.
1) long range planning
It includes planning over a period of three to five years. Such planning is done at
corporate level. It is for the overall department of organization
2) Annual operation planning:
The annual operation planning is a yearly plan set by the corporate office after consulting
the concern Reason from different units. It involves marketing production and purchase
function that are considered while setting up annual operation planning.
-

marketing share

market demand

market competition, direct and indirect

distributors

3) Monthly Plans:
Monthly plans are formulated as the end of each month for completing 3 months. As the
planning is made 3 ties it becomes more effective allowing for correction and changes i.
e. it provides for a Better review.
The monthly planning is generally in OPG (operation planning group) meeting head at
the corporate office.
By good planning strategy it has following capability
-

Timely available of the product of the consumers,

Maintenance of the quality

Better reducing of the cost of the product

Better utilization of the manpower

Minimum wastage of material

Generally all the planning decisions are taken by the head office (Mumbai).

MAREKT SEGMENTATION
Market segmentation is an act of dividing the market into distinct group of buyers according
to their needs and wants. Market segment can be on the basis of the geographic variables,
demographic variables, psychographic variables and behaviorist variables.
Ashapura Minechem Ltd. Applies geographical segmentation by dividing the market into
several geographical parts like nation, region, cities etc.
There are generally two types of bauxite high grade and low grade. Mostly low grade are
exports and high grade are for local sells.
80 % goods are exports to international market like China, Russia and Japan etc. but the
marketing of these goods are done from the head office Mumbai. It means work orders are
taken in the head office and then it send to plant. Remaining 20 % are for the local sales.
MARKET SHARE

SEGMENTATION

80%

ASHAPURA GROUP

20 %

LOCAL SALES

TARGET MARKET
AML created brand loyalty among their customer. There is not market which is targeted by
ASHAPURA because there is high demand then the supply of the production. So no need to
select target market only fulfills the demand of the customers. So there is the list of the
frequent customers.
MAIN CUSTOMERS OF AML
AADITYA CHERAMICS PVT LTD
AAGAM IMPEX
BEST INDUSTIRES
BEST REFRACTORIES
BHORUKA STEEL & SERVICES LTD
BILASPUR CERAMICS PVT LTD
CHAMPION CERAMICS PVT LTD
CROWN CERAMICS
RHI CLASIL LTD
AGE TRADING FZE
NSE CHEMICAL LTD

DALMIA REFRACTORIES
FRONTLINE CORPORATION LTD
JADEJA REFRACTORIES PVT LTD
MEENAL CERAMICS PVT LTD
NATIONAL REFRACTORIES
OCL INDIA LIMITED
PADAMJA INC
RAGHUVANSHI REFRACTORIES
VESUVIUS INDIA LTD
MORY EQL
MARUCHI LTD

SWOT ANALYSIS

STRENGTH

WEAKNESS
SWOT

OPPORTUNITIES

Chart. No.-10

THREATS

STRENTHS:
1.

The biggest strength is there is no competition on high level.

2.

All the employees at office are well trained and high experienced.

3.

All the employees are doing their work together as a family.

WEAKNESS:
1.

Cooling system failure, the bauxite is directly received from the Killen and then
water is sprayed over it cool to it.

2.

Some mechanical problems.

3.

Electrical equipment failure.

OPPORTUNITIES:
1.

Convert bauxite into alumina which will significantly improve the profitability of
the company.

2.

Market for minerals is expected to expand

3.

We have various opportunities in mining and processing to penetrate in the

international markets so as to expand our market share.

THREATS
1.

The prices of the oil are increasing day by day so the cost of the product increase
but the price of the product we cannot increase every time so profit margin will
decrease.

2.

We have a limited source of minerals.

3.

The biggest threats now days are that GIDC undertake all the export of the bauxite
in their hand. So no private company cannot export. So it can make a question
mark on the survival of the company.

PRICING POLICY
Pricing is concerned to be the main element of marketing. Fixing a right price for a product is
a crucial task. Right price can promote the sales of the company while wrong price affects the
sale of a company at a great extent, so pricing policy is much important.
The AML has adopted flexible and reasonable pricing policy. At the end of every month
directors of each zone, marketing officers meet together at the office. They check the
suitability of the current price in the light of current degree of competition, change in
demand, advertising and other services etc. then fix the product price. So while fixing the
price, the company takes into account cost of production, prevailing market threat, pricing
policy of competitors.

CHANNEL OF DISTRIBUTION
From the name of itself it clears the meaning that how the product reaches from manufactures
to the ultimate end users. It may have dealers, wholesalers, retailers, and many more
In AML there is ZERO LEVEL distribution channel. it means
MANUFACTURES
CUSTOMER

SALES PROMOTION
Sales promotion is a vital ingredient of promotion mix. It is sales effort undertaken by a
business Unit to boost sales. It helps in maintaining of increasing the sales level of operation.
The purpose of sales promotion is to attract new customers in order to reward loyal customers
and to increase there repurchases rates of occasional users promotion activity has specific
purpose, which are as under.
1) To attract new customer.
2) To know customer about the introduction new policy.
3) To encourage present customer to buy more.
It is an important activity being performed by the marketing department of the excel
industries ltd to increase the sales volumes. It uses some good criteria for sales promotion.
Company allows 30 Days credit facilities and also this limit is increased if necessary. It also
gives the commission and discount to the consumer. The Company to maintain contact of the
consumer under the Promotional activity uses pricing policy. They arrange many
programmed for the benefits of farmers. They also show pictures in projects. Slides on big
screens and also arrange the demonstration programmed. They also give the literature to the
consumers and make well printing. Incentives like reward, award and special discount etc are
given by the Company for the purpose of sales promotion.
For the purpose of sales promotion it provides after sales services publicity and liberal
payment Term.
1) Discount: In order to promote the sales Company provides 2% to 3% trade discount.
2) After sales services: To maintain the customer of the farms offers the various
incentives. If the goods are damaged during the transportation the Company will
replace the goods bears the transportation charges. If the customers are not satisfied
with product he can make direct contact to the Company and ask for it and Company
take action against their complaint.

3) Publicity: In order to get publicity the Company has its own services center in village
which provides the services to the customer.
4) Liberal payment terms: It has a different term as under:
-

Advance payment.

Immediate payment by cheque.

Payment within 45 days.

Sales are the life-blood of a business. The ultimate object of all production is selling, and
without sales no business would survive. Sales are also the major source of revenue to a
business and everything else is expense.

ADVERTISING
Advertising is one of the important elements of promotion mix. It paid from mass
communication can be track to identified sponsor. It is in the pence that advertising defer
from publicity. Which is also mass communication to advertising is important to help make to
brad leader in market.
In an AML there should not be specific advertisement because there all products are selling.
The product advertising this means spreading of information this message which is presented
is called advertising.

MARKETING RESEARCH
Marketing research is a systematic objective and intensive search for an analysis of data
relevant to the identification on a solution any problem of the field of marketing. Marketing
research includes size of market, location of them customer, description of the customer,
analysis of the market demand, etc
Marketing research is said to be hart of marketing to the company. It is also helpful decide the
pricing of the product. According to the movement of the market marketing research is the
systematic objective and exhaustive search for all the facts relevant to any problems to field
of marketing. It is also conserved with the scientific collection analysis and inters privation of
fact relating to the market of goals and services. There are mainly observing market.
Market research is three type of the method.
1)

Observation method.

2)

Experimental method.

3)

Survey method.

Ashapura Minechem Ltd. Usually preface to the type of bauxite. Also find out needed the
party.

FINANCE
MANAGEMENT

WORKING OF FINANC AND ACCOUNTS DEPARTMENT

Finance is one of the major an elements that activate the overall growth of the economy.
Finance is the life blood of the economy activities. It would be worth wild to recall What
Henry Ford once remarked Money is an arm or a leg; you either use or loss it. This
statement of Henry Ford through apparently simple is quite meaningful it brings future home
the signification of money or finance. A firm success and say the list, its survival depends
upon how efficiently it is able to generate fund as and when needed. Finance holds the key to
all activities. The path of success is greased with money.
Business finance is activity concern with planning, raising, controlling and administrative
the funds used in business.
In AML, finance department is the mirror through which a company sees itself. To operate
effectively, all the transaction are to be recorded in terms of money and quantity, sales, gross
profit, net profit and information about debt and equity as well as and also capital structure is
good. In AML they prepare monthly budget and that much amount they will take from head
office for their expenses.

STRUCTURE OF FINANCE MANAGEMENT.

MANAGER
ACCOUNTS

ASST.
MANAGER

OFFICER
ACCOUNT

ASST.
MANAGER

OFFICER
ACCOUNT

ASSISTANT

Cahrt. No.-11

ASST. OFFICER

ASSISTANT

ASST. CASHIER

FINANCIAL PLANNING
In any company, financial management which is concerned mainly with raising funds in the
most economic and suitable manner. Using this fund as profitability.
In AML, financial planning is done by finance manager. Finance management identify when,
where and how the funds can be acquired to meet the firm investment needs. In sourcing of
finance the finance manager is strive to procure finance from different sources in which such
a way that capital structure is optimum. Capital structure is optimum when market value of
shares is maximum.

ASHAPURA MINECHEM LTD

BALANCE SHEET AS AT 31ST MARCH-2010
31st MARCH-2010
Rs.
SOURCES OF FUNDS
Shareholders' Funds
Share Capital
Employee Stock Option Outstanding
Reserves and Surplus

157,972,196
7,108,918
2,296,842,410

Loan Funds
Secured Loans
Unsecured Loans

3,355,184,188
420,530,143
TOTAL

APPLICATION FUNDS
Fixed Assets
Gross Block
Accumulated Department
Net Block
Capital Work in Progress and
Pre Operative Expenses

2,461,923,524

31st MARCH-2009
Rs.

157,972,196
7,108,918
2,199,410,196

4,772,735,299
3,775,714,331
6,237,637,855

1,980,150,608
-362,339,102
1,617,811,506
18,887,877

2,364,491,310

1,636,699,383

4,772,735,299
7,137,226,609

1,083,803,436
-270,089,281
813,714,155
812,338,015

1,626,052,170

Investment

489,979,438

436,920,395

Deferred Tax Assets

910,000,000

1,285,000,000

Current Assets, Lan and Advances

Inventories
Sundry Debtors
Cash & Bank Balance
Loans and Advances

Less: Current Liabilities & Provisions

Current Liabilities
Provisions

Net Current Assets

TOTAL

1,358,074,912
1,166,589,768
91,565,978
1,827,284,152
4,443,514,810

1,917,706,274
1,240,096,047
1,225,262,711
2,586,686,209
6,969,751,241

1,230,126,550
12,429,226
1,242,555,776

3,169,396,783
11,100,414
3,180,497,197
3,200,959,034

3,789,254,044

6,237,637,855

7,137,226,609

PROFIT & LOSS ACCOUT FOR THE YEAR ENDED 31st MARCH, 2010

2009-2010
Rs.
INCOME
Sales and Operational Income
Other Income
TOTAL
EXPENDITURE
Change in Inventory
Materials, Mining & Manufacturing expenses
Selling & Distribution Expenses
Administrative & Other Expenses
Foreign Currencty Fluctuation Loss
Interest
Despreciation
TOTAL
Profit/(Loss) Before Exceptional Items & Tax
Tax Expenses
Earlier Years' Tax
Fringe Benefit Tax
Deferred Tax
Profit/(Loss) After Tax
Excess Provision of Income Tax Written Back
Prior Period Adjustments(net)

Exceptional Items
Foreign Currency Derivatives Loss Written back
(net of differed tax; Refer note no.2)
Extra Ordinary Items
Net Profit/(Loss) After Exceptional & Extra
Ordinary Items
Balance Brought forward From Previous Year
Amount Available for Appropriation
APPROPRAIATIONS
General Reserve
Proposed Divident
Corporate Dividend Tax
Balance Carried to Balance Sheet
Earning Per Share
Before Exceptional and Extra Ordinary Items
Basic/Diluted
After Exceptional and Extra Ordinary Items
Basic/Diluted
Face Value Per Share

2008-2009
Rs.

5,030,649,303
59,869,067
5,090,518,370

7,000,977,610
152,433,185
7,153,410,795

589,150,949
1,442,426,064
2,227,099,829
504,978,796
251,918,986
554,988,656
98,022,993
5,668,586,273
-578,067,903

-432,568,460
2,520,312,218
3,614,064,723
634,335,471
4,398,046,676
222,499,818
65,985,826
11,022,676,272
-3,869,265,477

-23,730,473

-6,110,584
-4,800,000
-23,730,473
-601,798,376
22,218,044
-5,167,550
-584,747,882

1,336,267,000

1,325,356,416
-2,543,909,061
-5,614,844
-2,549,523,905

682,180,096
-5,270,821
97,432,214

-2,554,794,726

-997,409,143

1,557,385,583

-899,976,929

-997,409,143

-899,976,929

-997,409,143

-7.40

-32.28

1.23
2.00

-32.35
2.00

MANAGEMENT OF FIXED ASSETS

ASSETS
LAND & LAND
DEVELOPMENT
COMPENSATION FOR
PREMISES RIGHTS
BUILDINGS
PLANT & MACHINERY
BARGES
VEHICLES
FURNITURE &
FIXTURES
OFFICE EQUPMENT
TOTAL
CAPITAL WORK IN
PROGRESS
GRAND TOTAL
PREVIOUS YEAR

GROSS BLOCK
Additions
As on
During the
01-04-2009
Year
Rs.
Rs
100,159,241
1,602,693
226,578,402
548,988,112
7,598,314
82,907,208

25,397,892

DEPRECIATION
Deductions
During the
Year
Rs.
449,006

As at
31-03-2010
Rs.

Up to
31-03-2009
Rs.

On
Deduction
Rs.

Total
Rs.

NET BLOCK
As at
31-03-2010
Rs.

As at
31-03-2010
Rs.

As at
31-03-2009
Rs.

125,108,127

125,108,127

100,159,241

31,058,391
136,229,633
6,369,264
41,559,241

13,518,817
57,641,160
849,134
10,760,592

13,052
2,122,410
3,575,093

44,564,156
191,748,383
7,218,398
48,744,740

1,602,693
469,311,025
922,505,705
379,916
29,814,647

1,602,693
195,520,011
412,758,479
1,229,050
41,347,967

287,652,271
572,396,696

355,492
7,130,720

303,000

4,650,821

1,602,693
513,875,181
1,114,254,088
7,598,314
78,559,387

61,352,826
54,616,640
1,083,803,436

19,003,844
4,403,915
909,157,618

46,890
177,517
12,810,446

80,309,780
58,843,038
1,980,150,608

23,350,399
31,522,353
270,089,281

9,338,653
5,914,637
98,022,993

18,217
44,400
5,773,172

32,670,835
37,392,590
362,339,102

47,638,945
21,450,448
1,617,811,506

38,002,427
23,094,287
813,714,155

812,338,015
1,896,141,451

3,482,997
912,640,615

796,933,135
809,743,581

18,887,877
1,999,038,485

270,089,281

98,022,993

5,773,172

362,339,102

18,887,877
1,636,699,383

812,338,015
1,626,052,170

1,632,742,084

359,749,433

96,350,066

1,896,141,451

221,846,019

66,432,735

18,189,473

270,089,281

1,626,052,170

1,410,896,065

INVESTMENT
31st March-2010
Rs.
LOGN TERM INVESTMENTS(Unquoted; at
cost)
Investment in Subsidiaries
3,000,000 Equity Shares of Ashapura
International Ltd. of Rs. 10/- Each
34,10,111 Equity Shares of Ashapura
Claytech Ltd. of Rs. 10/- Each
10,000 Equity Shares of Ashapura
Consultancy
Services Pvt. Ltd. of Rs. 10/- Each
10,000 Equity Shares Sharda Consultancy
Pvt. Ltd. of Rs. 10/- Each
10,000 Equity Shares of Penisula Property
Developers Pvt. Ltd. of Rs. 10/- Each
700,000 Equity Shares of Prashansha
Ceramics Ltd. of Rs. 10/- Each
218,080 Equity Shares of Bombay
Minerals Ltd. of Rs. 10/- Each
50,000 Equity Shares of Ashapura
Aluminum Limited of Rs. 10/- Each
68 Equity Shares of Ashapura Minechem
(UAE) FZE of AED 150,000
-(10,000) Equity Shares of Ashapura
Infrastructure and Logistics Pvt. Ltd.
TOTAL
Investment in Join Ventures and
Associates
1,700,000 Equity Shares of HudsonMalaysis
of Ringgit 1.00 Each (An Associate
Company)
8,966,590 Equity Shares of Ashapura
Volclay Ltd. of Rs. 10/- Each (A Join Venture
Company)
30,750 Equity Shares of Ashapura AMCOL
NV- Antwerp of Euro 1 each (A Join Venture
of Company)
55,000 Equity Shares of Ashapura Arcadia
Logistics Pvt. Limited of Rs. 10/- Each (An
Associate Company)
1,86,285 Equity Shares of Shantilal Multi
port Infrastructure Pvt Limited of Rs. 10/Each ( An Associate Company)
(50,000) equity Shares of Crystal Nanoclay
Pvt. Ltd. of Rs. 10/- Each (An Associate
Company)
Less: Provision for diminution in the value of
Investment
TOTAL

31st March-2009
Rs.

32,727,000

32,727,000

34,100,000

34,100,000

100,000

100,000

100,000

100,000

100,000

100,000

14,700,000

14,700,000

96,154,325

96,154,325

500,000

500,000

112,312,634

112,312,634

100,000
290,793,959

290,893,959

48,012,010

48,012,010

89,665,900

89,665,900

1,776,379

1,776,379

550,000

550,000

2,500,000

2,500,000

6,300,000

-4,410,000
142,504,289

144,394,289

CAPITAL BUDGETING
The efficient allocation of capital is the most important finance function in the modern times.
It involves decision to commit the firms funds to the long term assets. Such decision are of
considerable important to the firm since their tend to determined its value size by influencing
its growth, profitability and risk. This investment decision of a firm are generally known as
the capital budgeting. It is firms decision to invest its current funds most efficiently in the
long term assets in anticipation of an expected flow of benefits over a series of years.

MANAGEMENT OF WORKING CAPITAL

Generally the term working capital refers to that part of capital which is not tide of in fixed
assets but is used to meet the day to day requirements of business.
It is invested in current assets like cash, stock, bills receivable, debtors etc. this type of capital
is used to make payments for purchase of raw materials, wages and to meet the other
expenses till goods are sold and money is collected against it.
In other words working capital is that which is held to meet day to day requirements of
business, which changes from day to day and which is converted in to cash continuously. The
risk element is low in it.
Working capital is also known as current capital, circulating capital and floating capital. It is
also called as variable capital.
AML also invested in current assets, loans and advances like inventories, sundry debtors.
Other current assets like fixed deposit accounts. Loans and advances like loans to subsidiaries
companies, loan to associate company.

(I) INVENTORIES
31st March-2010
Rs.
(As taken, valued and certified by the
Management, values as stated in note
no.1)
a) Finished and semi-finished goods
b) Raw materials
c) Packing Materials
d) Stores & Spares

1,245,705,354
82,036,556
11,293,650
19,039,352

31st March-2009
Rs.

1,834,856,303
60,233,430
9,776,579
12,839,962
1,358,074,912

1,917,706,274

PROFITABILITY AND DIVIDEND DISTRIBUTIONA TREND ANALYSIS OF PASS SEVERAL YEARS

Dividend Payment:

For 2005-2006:
Dividend was paid @ 75 % per share of face value of Rs. 2/- each (Rs.
1.50/- per equity share fully paid up)
For 2006-2007:
Dividend was paid @ 150 % per share of face value of Rs. 2/- each
(Rs. 3/- per equity share fully paid up)
For 2007-2008
Dividend was paid @ 80 % per share of face value of Rs. 2/- each (Rs.
1.60/- per equity share fully paid up)
For 2008-2009
No Dividend was recommended for the F. Y. 2008-2009
For 2009-2010
No Dividend was recommended for the F. Y. 2009-2010

CAPITALISATION
The word capitalisation can be defined as some total of all kinds of long terms securities as
their par values. Thus it can be interpreted as the some of the ownership capital, bonds,
debenture and other long term debts and surplus. It consists of :
1.

Ownership Capital:
The value of shares of different classes.

2.

Borrowed Capital:
The value of bonds and debentures.

3.

Surplus:
The value of surplus, i. e. accumulated profit.

CONCLUSION
My regards to the, I hereby conclude my project with the nice and great experience and
memories for me to take training at Ashapura Mine Chem. Ltd., Jamkhmbhaliya from my
sincere efforts and the helping nature of the staff of Ashapura Group, I learned the practical
implements of the theoretical principals in their organization.
I have visited the all departments of the Company- Ashapura Mine Chem. Ltd. They have
given me in depth knowledge regarding to all departments. Thus, have gathered me
information about all departments and including in this project.

APPENDIX
SR. NO.

PARTICULARS

PAGE
NO.

CHART-1.

GENERAL ORGANISATION STRUCTURE

CHART-2.

TYPES OF BAUXITE

14

CHART-3

PROCESS FLOW CHART OF LAW GRADE BAUXITE

18

CHART-4

PROCESS FLOW CHART OF HIGH GRADE BAUXITE

19

CHART-5

ORGANIZATION STRUCTURE OF HR

21

CHART-6

RECRUTMENT

22

CHART-7

SELECTION PROCESS

23

CHART-8

TRAINING & MANAGEMENT DEVELOPMENT

25

CHART-9

ORGANISATION STRUCTURE OF MARKETING

33

CHART-10

SWOT ANALYSIS

38

CHART-11

STRUCTURE OF FINANCE MANAGEMENT

48

BIBILIOGRAPHY
Books:1)

Kotler Phillip Marketing management prentice head of India 11th edition 2004
Himalaya Publishing House.

2)

Kapur Souderton Kr. Marketing management 1st edition June 1997 S K publisher.

Web site:1)

www.ashapura.com

2)

www.google.co.in