A REPORT ON ORGANIZATIONAL STUDY

AT

GRASIM INDUSTRIES LTD

UNIT: INDIAN RAYON

VERAVAL

INDUSTRIAL TRAINING REPORT SUBMITTED TO

KARUNYA SCHOOL OF MANAGEMENT

IN PARTIAL FULLFILMENT OF REQUIRMENT FOR THE AWARD

OF THE DEGREE

BACHELOR IN BUSINESS ADMINISTRATION

STANLEY VARGHESE UR16BBA005

UNDER THE GUIDANCE OF

DR. R. MAGESH KUMAR

KARUNYA SCHOOL OF MANAGEMENT

KARUNYA INSTITUTE OF TECHNOLOGY AND SCIENCES
(DECLARED AS DEEMED UNIVERSITY UNDER SEC 3 UGC ACT 1956)

JULY 2018

1
 DECLARATION

I Stanley Varghese hereby declare that the industrial training report entitled

“Internship Report on Materials Department at Grasim Industries ltd” is a bonafide

record of the Original research work carried out by me in Karunya Institute of

Technology and Sciences and that it has not been submitted earlier elsewhere for

the award of any Degree, Diploma or Fellowship.

I understand that karunya University shall hold the copyrights of all

these/dissertations submitted to the University.

I will republish the entire thesis/extracts of the thesis only with the permission of

Karunya University and I am liable to pay 40% of royalty to Karunya University.

If I engage in documenting and Research finding’s with an intention of

publishing it for commercial purpose, I shall obtain a NOC from the office of the

Registrar prior to engaging in such activities

Date

Number

Signature of the candidate with Register

2
 INDEX

SN TOPIC PAG
O E
1 ACKNOWLEDGEMEN 4
T
2 OBJECTIVE OF 5
STUDY
3 EXECUTIVE 6
SUMMARY
4 TEXTILE INDUSTRY 7
5 COMPANY 15
HISTORY
6 COMPANY 17
PROFILE
7 COMPANY POLICY 18
8 COMPANY VISION & 19
MISSION
9 SWOT ANALYSIS 20
10 ORGANISATIONAL 23
STRUCTURE
11 MARKETING 24
DEPARTMENT
12 PRODUCTION 33
DEPARTMENT
13 HUMAN RESOURCE 41
DEPARTMENT
14 PURCHASE 48
DEPARTMENT
15 FINANCE 54
DEPARTMENT
16 CONCLUSION 59
17 BIBLIOGRAPHY 60

3
 ACKNOWLEDGEMENT

First and foremost, I thank God Almighty for enabling me to

complete the internship as well as the report. The internship

opportunity I had with Indian Rayon was a great chance for

learning and professional development. I am also grateful to

have met so many wonderful people and professionals who

helped me through the internship period.

I take this opportunity to express my sincere and wholehearted

gratitude to Mr.Sameer Kapoor ,General Manager, Materials

Deparment, Indian Rayon for providing us with an opportunity

to develop our skills. I am also grateful towards Mr.Saurabh

Pandey, Mr Ritesh Kedia, Mr.B.G Patolia , Materials

Department,Grasim Industries for their careful and valuable

guidance which were extremely useful in my study both

theoretically and practically. The people I met during my

4
internship days had been a great pillar of support and I hope to

continue cooperating with them in the future.

OBJECTIVE OF THE STUDY

Today is the age of globalization, age of science and technology where one
will find now invention and discoveries at a new mode of life. It is due to
sudden globalization in the economy now as we go towards the market we
see a changing trend due to particular brand and selection of it. In the field
of education new courses are introduced with practical training which is
needed but the theoretical knowledge is also important so that we are
dealing with the practical phase in business dealings and life.

Management is a field. where Managerial & practical Knowledge is

required. With a view for getting practical knowledge of the Industry we
were required to undergo training in the Industry according to our syllabus
for practical study subject because not just theoretical knowledge is not
enough to gain knowledge of business. Practical knowledge helps a person
to understand real life problems.

Industrial acquaintance for a BBA student is the most important aspect to

enlighten about the multi facets of ever increasing competition in business
ever since globalization. Practical training has been incorporated in the
curriculum of BBA which enables the management students to get
familiarized and equip them with the practical aspects of management. This
benefit as it cultivates the habit of business students thinking and sense of
professionalism. Thus a student knows how theoretical lessons learnt from
a classroom is actually implemented in business environment and what is
the difference in the theory and practice?

After completing this Project  we are more confident about the practical
aspects of business Management. So the objective is to study this summer
project as a practical training program which gives actual practical exposure
to organizational working setup.

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 EXECUTIVE SUMMARY

A study on overall organizational work and functioning has been conducted

In Indian Rayon, one of the blue chip units of the Aditya Birla Group of
Companies

Indian Rayon‘ the VFY unit of Aditya Birla Nuvo. is a major player in the

Indian viscose filament yam business. The unit enjoys a 30 per cent
domestic market share. making it the largest producer of viscose filament
yarn in India.

The report discusses the brief overview of various organizational

departments. its function and managerial practices In the changing business
environment. Organization also considers factors such as cultural diversrty.
social responseveness,quality control,employee welfare and ethical and
moral obligation to lead their organization successfully The report provides 
into such issues and also explores business challenges and world class
manufacturing.

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 CHAPTER 1

INTRODUCTION TO THE TEXTILE INDUSTRY

7
 THE TEXTILE INDUSTRY

The textile industry is a group of related industries which uses a variety of

natural (cotton,wool, etc.) and/or synthetic fibres to produce fabric. It is a
significant contributor to many national economies, encompassing both
small and large-scale operations worldwide.Subdivision of the textile
industry into its various components can be approached from several
angles. According to referencethe classical method of categorizing the
industry involves grouping the manufacturing plants according to the fibre
being processed, that is, cotton, wool, or synthetics. The modern approach
to textile industry categorization, however, involves grouping the
manufacturing plants according to their particular operation.

Wool Scouring
Wool Finishing
Dry Processing
Woven Fabric Finishing
Knit Fabric Finishing
Carpet Manufacture
Stock and Yarn Dyeing and Finishing

Traditionally, the textile industry is very energy, water, and chemical-

intensive. About 60% of the energy is used by dyeing and finishing
operations. Environmental problems associated with the textile industry are

8
typically those associated with water pollution. Natural impurities extracted
from the fibre being processed along with the chemicals used for processing
are the two main sources of pollution. Effluents are generally hot, alkaline,
strong smelling and colored by chemicals used in dyeing processes. Some
of the chemicals discharged are toxic. Other environmental issues now
considered equally important and relevant to the textile industry include air
emissions, notably Volatile Organic Compound

Textile plays a major role in the Indian Economy

(i) It contributes 14 per cent to industrial production and 4 per cent to GDP

(ii) With over 45 million people, the industry is one of the largest source of
employment generation in the country.

The Indian textiles industry, currently estimated at around US$ 150 billion,
is expected to reach US$ 230 billion by 2020. The Indian Textile Industry
contributes approximately 2 per cent to India’s Gross Domestic Product
(GDP), 10 per cent of manufacturing production and 14 per cent to overall
Index of Industrial Production (IIP).

The production of cotton in India is estimated to increase by 9.3 per cent

year-on-year to reach 37.7 million bales in FY 2017-18. The total area
under cultivation of cotton in India is expected to increase by 7 per cent to
11.3 million hectares in 2017-18, on account of expectations of better
returns from rising prices and improved crop yields during the year 2016-
17.

Indian exports of locally made retail and lifestyle products grew at a

compound annual growth rate (CAGR) of 10 per cent from 2013 to 2016,
mainly led by bedding bath and home decor products and textiles

The textiles sector has witnessed a spurt in investment during the last five
years. The industry (including dyed and printed) attracted Foreign Direct
Investment (FDI) worth US$ 2.82 billion during April 2000 to December
2017.

The Cabinet Committee on Economic Affairs (CCEA), Government of

India has approved a new skill development scheme named 'Scheme for
Capacity Building in Textile Sector (SCBTS)' with an outlay of Rs 1,300
crore (US$ 202.9 million) from 2017-18 to 2019-20.Future Group is
planning to open 80 new stores under its affordable fashion format, Fashion
at Big Bazaar (FBB), and is targeting sales of 230 million units of garments
by March 2018, which is expected to grow to 800 million units by
2021.Raymond has partnered with Khadi and Village Industries
Commission (KVIC) to sell Khadi-marked readymade garments and fabric
in KVIC and Raymond outlets across India.Max Fashion, a part of Dubai
based Landmark Group, plans to expand its sales network to 400 stores in
120 cities by investing Rs 400 crore (US$ 60 million) in the next 4 years.In

9
 May 2018, textiles sector recorded investments worth Rs 27,000 crore (US$
4.19 billion) since June 2017.

Major Participants in the industry:

 Arvind Ltd 

 Bombay Dyeing and Manufacturing Company Ltd

 Bombay Rayon Fashions Ltd

 Fabindia Overseas Pvt Ltd

 Grasim Industries Ltd

 JCT Ltd

 Karnataka Silk Industries Corporation Ltd

 Raymond Ltd

 The Lakshmi Mills Company Ltd

The future

The future for the Indian textile industry looks promising, buoyed by both
strong domestic consumption as well as export demand. With consumerism
and disposable income on the rise, the retail sector has experienced a rapid
growth in the past decade with the entry of several international players like
Marks & Spencer, Guess and Next into the Indian market.

High economic growth has resulted in higher disposable income. This has
led to rise in demand for products creating a huge domestic market. The
domestic market for apparel and lifestyle products, currently estimated at
US$ 85 billion, is expected to reach US$ 160 billion by 2025.

The Indian cotton textile industry is expected to showcase a stable growth

in FY2017-18, supported by stable input prices, healthy capacity utilisation
and steady domestic demand

History of Aditya Birla Group

Aditya Birla Group is one of India's largest conglomerates and also claims
to be the most international of the country's major corporations. The
company acts as a holding company for more than 72 manufacturing and
services subsidiaries throughout India, and in Thailand, Indonesia, the
Philippines, Malaysia, Australia, China, Egypt, and Canada. Aditya Birla's
major subsidiaries include Grasim, the world's leading producer of viscose

10
staple fiber, and a manufacturer of rayon grade pulp, cement, sponge iron,
textiles, and chemicals; Hindalco, a leading producer of aluminum and
copper; UltraTech Cement, which produces portland cement and related
products; Aditya Birla Nuvo, which manufactures clothing, textiles, and
carbon black and is India's second largest producer of viscose filament
yarn; Indo Gulf, a fertilizer producer; Birla NGK Insulators (a joint venture
with NGK of Japan), which is the world's leading producer of insulators;
and Idea Cellular Ltd., a mobile service provider jointly owned with fellow
Indian conglomerate Tata Industries. The company also produces software
and provides IT services, and operates a number of financial
productssubsidiaries. The company's Birla Sun Life InsuranceCo. is the
second largest private sector insurance company in India, and its Birla Sun
Life Asset Management Co. is the country's fourth largest assets manager.
In other areas, the company claims to be the world's eighth largest producer
of cement and the world's fourth largest producer of carbon black. These
operations combine to generate revenues of nearly $7.6 billion per year.
The company is led by Kumar Mangalam Birla, son of Aditya Birla.

RAYON

Rayon is a manufactured fiber made from regenerated cellulose fiber. The

many types and grades of rayon can imitate the feel and texture of natural
fibers such as silk, wool, cotton, and linen. The types that resemble silk are
often called artificial silk.

Rayon is made from purified cellulose, primarily from wood pulp, which is

chemically converted into a soluble compound. It is then dissolved and
forced through a spinneret to produce filaments which are chemically
solidified, resulting in fibers of nearly pure cellulose.

Because rayon is manufactured from naturally occurring polymers, it is

considered a semisynthetic fiber,whereas in precise usage the term synthetic
fiber is sometimes reserved for fully synthetic fibers. Specific types of
rayon include viscose, modal and lyocell, each of which differs in
manufacturing process and properties of the finished product.

Workers can be seriously harmed by the carbon disulfide used to make

most rayon

11
RAYON AND ITS VARIATIONS

Nitrocellulose

The solubility of nitrocellulose in organic solvents such as ether and

acetone was the basis for the first "artificial silk" by Georges Audemars in
about 1855. Commercial production started in 1891, but the result was
flammable and more expensive than cellulose acetate or Cuprammonium
rayon. Because of this expense, production ceased early in the 1900s.
Nitrocellulose was briefly known as "mother-in-law silk". Frank Hastings
Griffin invented the double-godet, a special stretch-spinning process that
changed artificial silk to rayon, rendering it usable in many industrial
products such as tire cords and clothing. Nathan Rosenstein invented the
"spunize process" by which he turned rayon from a hard fiber to a fabric.
This allowed rayon to become a popular raw material in textiles.

Acetate method

Paul Schützenberger discovered that cellulose reacts with acetic anhydride

to form cellulose acetate. The triacetate is soluble only in chloroform
making the method expensive. The discovery that hydrolyzed cellulose
acetate is soluble in more polar solvents, like acetone, made production of
cellulose acetate fibers cheap and efficient.

Cuprammonium method

The Swiss chemist Matthias Eduard Schweizer (1818–1860) discovered

that cellulose dissolved in tetraamminecopper dihydroxide. Max Fremery
and Johann Urban developed a method to produce carbon fibers for use in
light bulbs in 1897. Production of Cuprammonium rayon for textiles started
in 1899 in the Vereinigte Glanzstoff Fabriken AG in Oberbruch near
Aachen. Improvement by the J. P. Bemberg AG in 1904 made the artificial
silk a product comparable to real silk.

Viscose method

In 1894, English chemist Charles Frederick Cross, and his collaborators

Edward John Bevan, and Clayton Beadle patented their artificial silk. They
named their material "viscose", because its production involved the
intermediary of a highly viscous solution. The process built on the reaction
of cellulose with a strong base, followed by treatment of that solution with
carbon disulfide to give a xanthate derivative. The xanthate is then
converted back to a cellulose fiber in a subsequent step. The first
commercial viscose rayon was produced by the U.K. Company Courtaulds
Fibres in 1905. Courtaulds formed an American division, American
Viscose, (later known as Avtex Fibers) to produce their formulation in the
United States in 1910. The name "rayon" was adopted in 1924, with

12
"viscose" being used for the viscous organic liquid used to make both rayon
and cellophane. In Europe, though, the fabric itself became known as
"viscose", which has been ruled an acceptable alternative term for rayon by
the U.S. Federal Trade Commission (FTC).

The viscose method can use wood as a source of cellulose, whereas other
routes to rayon require lignin-free cellulose as starting material. The use of
woody sources of cellulose makes viscose cheaper, so it was used on a
larger scale than the other methods. On the other hand, the viscose process
affords large amounts of contaminated waste water. Rayon was produced
only as a filament fiber until the 1930s when methods were developed to
utilize "broken waste rayon" as staple fiber.

The physical properties of rayon remain unchanged until the development

of high-tenacity rayon in the 1940s. Further research and development led
to high-wet-modulus rayon (HWM rayon) in the 1950s. Research in the UK
was centred on the government-funded British Rayon Research
Association.

Industrial applications of rayon emerged around 1935. Substituting cotton

fiber in tires and belts, industrial types of rayon developed a totally different
set of properties, amongst which tensile strength (elasticity) was paramount.

Lycocell 

The Lyocell process relies on dissolution of cellulose products in a solvent,

N-methylmorpholine N-oxide. The process starts with woody sources of
cellulose and involves dry jet-wet spinning. It was developed at the now
defunct American Enka and Courtaulds Fibres. As of 2013, Lenzing's
Tencel brand is perhaps the most widely known lyocell fiber producer.

Major fiber properties

Rayon is a versatile fiber and is widely claimed to have the same comfort
properties as natural fibers, although the drape and slipperiness of rayon
textiles are often more like nylon. It can imitate the feel and texture of silk,
wool, cotton and linen. The fibers are easily dyed in a wide range of
colours. Rayon fabrics are soft, smooth, cool, comfortable, and highly
absorbent, but they do not insulate body heat, making them ideal for use in
hot and humid climates, although also making their "hand" (feel) cool and
sometimes almost slimy to the touch.

The durability and appearance retention of regular viscose rayon are low,
especially when wet; also, rayon has the lowest elastic recovery of any
fiber. However, HWM rayon (high-wet-modulus rayon) is much stronger
and exhibits higher durability and appearance retention. Recommended care
for regular viscose rayon is dry-cleaning only. HWM rayon can be machine
washed.

13
Rayon industrial yarns outperform polyester and are produced for belts in
high performance tires (e.g. Cordenka, Germany).

Physical structure

Regular rayon has lengthwise lines called striations and its cross-section is
an indented circular shape. The cross-sections of HWM and cupra rayon are
rounder. Filament rayon yarns vary from 80 to 980 filaments per yarn and
vary in size from 40 to 5000 denier. Staple fibers range from 1.5 to 15
denier and are mechanically or chemically crimped. Rayon fibers are
naturally very bright, but the addition of delustering pigments cuts down on
this natural brightness.

Production method

Regular rayon (or viscose) is the most widely produced form of rayon. This
method of rayon production has been used since the early 1900s and it has
the ability to produce either filament or staple fibers. The process is as
follows:

Cellulose: Production begins with processed cellulose (obtained from wood

pulp and plant fibers).Immersion: The cellulose is dissolved in caustic soda:
(C6H10O5)n + nNaOH → (C6H9O4ONa)n + nH2O…Pressing: The
solution is then pressed between rollers to remove excess liquid…White
Crumb: The pressed sheets are crumbled or shredded to produce what is
known as "white crumb"…Aging: The "white crumb" is aged through
exposure to oxygen…Xanthation: The aged "white crumb" is mixed with
carbon disulfide in a process known as Xanthation, the aged alkali cellulose
crumbs are placed in vats and are allowed to react with carbon disulfide
under controlled temperature (20 to 30 °C) to form cellulose xanthate:
(C6H9O4ONa)n + nCS2 → (C6H9O4O-SC-SNa)n…Yellow Crumb:
Xanthation changes the chemical makeup of the cellulose mixture and the
resulting product is now called "yellow crumb"…Viscose: The "yellow
crumb" is dissolved in a caustic solution to form viscose…Ripening: The
viscose is set to stand for a period of time, allowing it to ripen: (C6H9O4O-
SC-SNa)n + nH2O → (C6H10O5)n + nCS2 + nNaOH…Filtering: After
ripening, the viscose is filtered to remove any undissolved particles…
Degassing: Any bubbles of air are pressed from the viscose in a degassing
process…Extruding: The viscose solution is extruded through a spinneret,
which resembles a shower head with many small holes…Acid Bath: As the
viscose exits the spinneret, it lands in a bath of sulfuric acid, resulting in the
formation of rayon filaments: (C6H9O4O-SC-SNa) n + ½nH2SO4 →
(C6H10O5)n + nCS2 + ½nNa2SO4…Drawing: The rayon filaments are
stretched, known as drawing, to straighten out the fibers…Washing: The
fibers are then washed to remove any residual chemicals…Cutting: If
filament fibers are desired the process ends here. The filaments are cut
down when producing staple fibers…

High wet modulus rayon (HWM) is a modified version of viscose that has a
greater strength when wet. It also has the ability to be mercerized like

14
cotton. HWM rayon’s are also known as "Polynosic". Polynosic fibers are
dimensionally stable and do not shrink or get pulled out of shape when wet
like many rayon’s. They are also wear resistant and strong while
maintaining a soft, silky feel. They are sometimes identified by the trade
name Modal.

High-tenacity rayon is another modified version of viscose that has almost

twice the strength of HWM. This type of rayon is typically used for
industrial purposes such as tire cord.

Cuprammonium rayon has properties similar to viscose but during

production, the cellulose is combined with copper and ammonia
(Schweitzer’s reagent). Due to the environmental effects of this production
method, Cuprammonium rayon is no longer produced in the United States.
Manufacturing health hazards

Highly toxic carbon disulfide is used in the production of viscose, leading

to many incidents and legal cases. However, the volatile carbon disulfide is
lost before the rayon gets to the consumer; the rayon itself is basically pure
cellulose. Studies from the 1930s show that 30% of American rayon
workers suffered severe effects. Rates of disability in modern factories
(mainly in China, Indonesia and India) are unknown.

Disposal and biodegradability

The biodegradability of various fibers in soil burial and sewage sludge was
evaluated by Korean researchers. Rayon was found to be more
biodegradable than cotton, and that more than acetate. The more water-
repellent the rayon-based fabric, the more slowly it will decompose.
Silverfish can eat rayon.

A recent ocean survey found that rayon contributed to 56.9% of the total
fibers found in deep ocean areas, the rest being polyester, polyamides,
acetate and acrylic.

Alternative to cotton

Rising cotton prices in 2010 led clothing makers to begin replacing cotton
with rayon in their fabrics. As demand for rayon increases, companies such
as Fortress Paper have been investing in pulp mills to increase production.
Rayon now sells for as much as $2.70 per pound, which has led to an
increase in the retail price of clothing made with rayon, yet rayon has a
price advantage over cotton.

Uses of rayon

1. It is used in textile industry for making textiles.

15
2. Rayon is used for making tyre cords.

3. It is also used for making carpets and surgical dressings.

COMPANY HISTORY

The foundation stone of the Indian Rayon was laid by Late Shri Lal
Bahadur Shastri , the second prime minister of Independent India in the
year 1959 and the commercial production was started in 1963 with capacity
of 4.0 TPD in Pot Spun Yarn.(PSY).The plant was taken over by Aditya
Birla Group in year 1966.Since then, there is no looking back and Business
has grown in last five decades and expanded its capacity from 4.0 TPD to
56.9 TPD comprising of 43.9 TPD of Pot Spun Yarn(PSY),5.5 TPD of
Continuous Spun Yarn (CSY) and 8.8 TPD of Spool Spun Yarn (SSY).The
business has backward integration of 34.5MW captive Power Plant and 250
TPD Caustic Chlorine plant (which falls under the Chlor-Alkali SBU)

Indian Rayon. The VFY unit of Aditya Birla Nuvo is a major player in the
Indian Viscose filament yarn business. The unit enjoys a 30 per cent
domestic market share making it the second largest producer of viscose
filament yarn in India.

Branded 'Ray One'. The viscose filament yarn is available in more than
400 shades. The yarn comes in a Wide array of colours It ranges from the
purest tints. through medium tones to vibrant deep shades in fine to coarse
deniers ranging from 75 to 1200.

With a capacity of 6.400 tonnes per annum (tpa). Indian Rayon is

the first in the country to adopt the most advanced VFY technology 88 pot
spinning machines (PSY) and I7 continuous spinning machines on parallel
yarn. It also accounts for 50 per cent of VFY exports from India.

Located at Veraval in  Guiarat. The VFY plant is the first in Aditya Birla

Nuvo to be accredited With the ISO 900l and the ISO l400l certification. It
also has the OHSAS I800] and OEKO Tax certification.

16
 COMPANY PROFILE

The Aditya Birla Group is lndia‘s second largest business house with
turnover of RS. 200 billion; asset base valued at over as RS. l80 billion in
15 countries all over the world. Over 75 units in India and overseas as well
and international trading operations spanning in several countries, which
include Singapore. Dubai. Russia. Vietnam, Myanmar and China make it
India's first truly multinational company

Committed to being a global Benchmark Group it is accredited with the

ISO 9002 Certification and nine of them are certified with ISO 14001

The Aditya Birla Group reaches out to the core sector in India in industries
integral to the nation‘s growth cement. Aluminum. Fenilizers. Viscose
Staple Fiber. Textiles. Petroleum Refining Power, Telecommunications and
industrial chemicals and Financial Services

Globally the Aditya birla group is

17
 A metals powerhouse. among the world's most cost efficient aluminium and
copper 
producers .It is one of the three biggest producers of  aluminium.

 No.1 in viscose staple fibre 

 The fourth largest producer of carbon black

 The 11th largest cement producer globally

 The seventh largest in and the second largest in India Among the world's
top 15 BPO companies and among India's top four

 Among the best energy effluent fertilizer plants In India

 A premier branded garment player 


The second largest player in viscose filament yarn

 The second largest in the chlor-alkali sector

 Among the top five mobile telephone companies 

 A leading player in life insurance and asset management 

 Among the top three supermarket chains in business

Rock solid in fundamentals ,the Aditya Birla Group nurtures a culture

where success does not come in the way of the need to keep learning afresh,
to keep experimenting.

EMPLOYEE PROFILE

1.STAFF : 849

2.WORKMEN
PERMANENT : 1598
BADLI : 637

18
 COMPANY POLICY

Indian Rayon is committed to be customer focused while taking care of the

interests of all stakeholders. They also commit to abide by statutory and
other applicable requirements and ensuring continual and sustainable
improvement in all spheres of activities.They adopt excellence in
manufacturing practices and maintain high morale of the employees.

They aim to achieve this by:

 Producing premium products to meet customers expectations globally

 Adopting energy and eco-efficient technology to conserve natural

resource and maintain pollution free environment

 Preventing injuries and ill health cases by adopting safe work practices and
healthy work environment

 Respecting employees rights and providing awareness training to all

concerned persons including contactors and sub contractors

 Communicating with public for safety,environment protection and energy

conservation

 Providing necessary resources and information to achieve objectives and

targets

COMPANY VISION

19
 To be a leading customer focused VFY business that deliver premium
products globally through innovative and sustainable processes
&

To become world class Chlor-alkali plant with specific focus on value

creation for share holders,customers,employees and society

COMPANY MISSION

 To produce Premium products in Viscose Filament Yarn to meet the

expectations of customers

 To achieve minimum cost of production through innovation,energy

conservation,Development and involvement of all stakeholders

 To maintain clean,safe and pollution free environment

SWOT ANALYSIS

Strength

20
 Yam produce in the company is of high quality and the management
always tries to increase the quality of yarn in order to fulfill their potential
customers and also to gain new ones.

 Better packing,carriage and transportation system with all modern

equipment and good after sales service.

 Regular meeting and seminars are conducted in the entire department in

order to find out loopholes and solve the same.

 Division also have continuous spinning yarn department in which the

modern technology is used for the spinning the yarn and its is adopted from
Germany.

 Divisions have domestic as well as export market and for this they are
doing the lnternet marketing in order to find new markets.

 Division has WCM ( World Class Manufacturing) cell in which they look
out for better way of manufacturing.

 ISO 9002 for the better quality of the production carries division.

 Division is certified by ISO l400l for the good environment management

system.

 Honored by Safety Award.

Weakness

 Cost of production is more due to existence of very old technology installed

in this division.

 Divisions are unable to pay more attention toward proper human

resource management.

 Situated away from consuming centers.

 Bigger process cycle/ higher process stock.

Oppurtunity

21
 Division should find out new market area for its products specially
chemicals

 More research activity should be done as there are more chances of finding
new markets.

Threats

 Govemment policies are the main hurdles of the division‘s performance.

Emergence of cotton threads made the market share of Rayon Yarn low.

 Fashion changes act as basic threats for such division.

 The Viscose Process is highly polluting. The basic raw material (pulp) is
again pollution prone.

22
23
ORGANIZATIONAL STRUCTURE

24
 CHAPTER 2

MARKETING DEPARTMENT

25
 MARKETING DEPARTMENT

Marketing deals with identifying and meeting human and social needs. One
of the shortest definition or marketing is “meeting needs profitable”

“A market may be considered as a convenient meeting place buyers and

sellers gathertogether for exchange of goods and services.”

Marketing is a process by which individuals and group obtain what they

need and want by creating and exchanging products and value with
others.Marketing is typically seen as the task of creating, promoting and
delivering goods and services to consumers and businesses. Marketing
people are involve in marketing ten types of entities’ goods, services,
experiences events, persons, places, properties,
organizations,information,ideas.Marketing has often been described as “The
Art of Selling Product.”
Customer is not God,customer is King,God forgives, KingDoesn’t

The company has a very efficient and excellent marketing department,

which tries to providemaximum satisfaction to the customer while having
reasonable. Profits on the other hand.

OBJECTIVES OF MARKETING
The following are objectives of Rayon Industries Ltd.

 To find new and new customers to sell them more & more of companies
product.
 Try to make better and quality product.
 To provide a successful distribution of customer products.
 To study the market problem according to the circumstances and suggest
the solutions.
 To sell their products in new areas to make new customers and satisfied old
ones.
 To encourage the customers and know the fault in their products and then
try to make quality or faultless products.

PRODUCT PLANNING AND DEVELOPMENT

Product planning determines the characteristics of the product best meeting
theconsumers numerous desires, characteristics that a stability, to products
andincorporate this characteristics into the finished products.

26
 Product planning involves three important considerations:

 The development and introduction of product

 The modification of the existing products
 The elimination of unprofitable products.

Company plans its product design according to the demand of the client’s
market situation and price of the product of its competitors

PRODUCT MIX
Product mix, which is called as product assortment, is the set of all product
& items that a particular seller offers for sale. A Company’s product mix
has certain width, length, depth consistency.Company’s product is VFY but
along with it the Co. also manufactures some chemicals and by-products,
which are require for the production of Yarn and the excess of this product
issold out in the market. Not only that, Company is manufacturing the Yarn,
which is of different colors and different quality- denier wise as per the
requirement of the client.Company

Main product VFY has certain length in terms of:

 Color yarn
 Dull yarn
 Spunned yarn
 Quality
 Denier

The company width also includes

 Caustic Soda
 Sulphuric Acid

NEW PRODUCT DEVLOPMENT

New product development shapes the company’s future. Given the rapid
changes in tastes.Technology and competition a company can’t rely solely
on its existing products.Companies that, fails to develop new products are
putting themselves at great risk. Company can develop new products

27
 though acquisition and development.Indian Rayon has made efforts in
technology absorption and in specific areas that brings:

Development in its rayon division, i.e

 Developing new shades of spun yarn

 Enchancement of sodium sulphate recovery
 Development of new product

BRAND
The American marketing association defines brand is :

“A name, term, sigh, symbol or design or a combination of them,

intends to identify thegoods or services of one seller or group of sellers
and to differentiate them from those of competitors.”

Thus brand identifies the sellers of makers.With six of the foremost name in
the apparels business into its fold,Indian Rayon is today is the largest
branded apparel Company in the country.

The portfolio includes leading brand names like Louis Phillipe, San Frisco,
Van Heusen, Allen Solley, Peter England, and Byford together making

Indian Rayon is also the Undisputed Market Leader for branded men swear.

Marketing Research
“To manage a business well is to manage its future; and to manage the
future is to manage information.”

Marketing Research specifies the information needed to address marketing

issues, designs the methods for collecting information, manages and
implements the data – collections process,analysis the results, and
communicates the findings and their implications.Companies in its initial
stages were using the service of professional persons and sponsor trade
delegation for the purpose of market research. But thereafter from 1988,
they installed their own quality control department of market research. The
company is also sending its higher-level executives to the foreign countries
for the purpose of survey and market research.The form of marketing
research adopted by the company is continuous research. It has also adopted
survey method.Company has its own research and development department
which undertakes market surveyand functions as per the trend of the
market. This department enables the co. to carry out the productions of yarn
and various chemicals as per the demand of the customer and market
condition.

28
 MARKET SEGMENTATION
In market segment there are three elements, which mostly used.

 Mass marketing one product

 Product marketing: two or more product
 Target marketing: - different product.

Segmentation means to sub division of entire market, each segment is

consisting of group of buyer who have identicate of similar unmeet wants
and needs.Generally market segmentation is a process of dividing total
market into various sub markets according to the characteristics of
consumer.Indian Rayon use “People oriented approach” method for market
segmentation. Here, they classify the consumer on the basis of location,
income, geographical etc.Indian Rayon has its branches at Ahmedabad
Delhi, Bombay, Amritsar, Surat, Banglore,Madras and its head office is at
Bombay, which take decision about all products. So this company has
segment the total market on the basis of product application consumer
industry wise. Different manufacturing company consumed yarns. Every
industry creates specific typeof demand for organization industry needs
yarn of very fine quality and demand of handloom industry is
different.Indian Rayon marketing office is at Bombay. The co. has many
type of segment. They are selling his product yarn in Indian as well as they
are exporting is various countries.

Locations in the Domestic Market

 Surat
 Ahmedabad
 Bombay
 Banglore
 Calcutta
 Delhi
 Varnasi
 Amritsar
 Veraval

Locations in the international market

 Korea
 Bangladesh
 Saudi Arabia
 Italy
 Africa

29
 Indian Rayon has much interest in market segmentation and get following
advantages from it.

 The company determines the needs of consumer of industries so industry

get easily product
 The demand is increase when products are meet smoothly to the industry
 Competitions are eliminated.

INTERNATIONAL MARKET
A market defined by demands. It is demand which creates the supply.
International market deals essentially with the trade pattern among of the
various countries in the world. It also considers the trade policies and trade
practicing of various countries as these govern the buyer-seller relationship
in the international market. The company Indian Rayon exports 2.6% of the
annual production to the various countries through its main offices in
abroad companies being well diversified. The Birla management group and
in company in most of the countries have its own offices. The company
IRIL exports the product of Rayon yarn in Morocco, U.K., U.S.A., Turkey,
Vietnam, Korea, Saudi Arabia, Spain, Philippines, Italy and South Africa.
The company also import the raw material required for Rayon yarn like
pulps from South Africa and Canada

PRICING
Pricing is a key factor which remarkably affects the sales operations.Price
may be defined as “The value of the product attributes expressed in
monetary terms which a consumer pay of its expected to pay in change
and anticipation of the expected of offered utility.”

The firm also has to consider these factors in setting its pricing policy.

 Pricing objective
 Determining demand
 Estimating cost
 Analyzing competitors prices and offers
 Pricing method
 Selecting final price

Price is the only element in the marketing mix that produces

revenue.Company has not adopted any clear pricing policy but it follows
the mixture of following pricing strategy.

Competition oriented pricing policy

Under this policy all the manufacturers meet together at Mumbai and they
fix maximum price level by negotiating with each other.Sometimes the

30
 company also uses the prestige pricing method because it is believe that the
product with higher quality can attract the customer with the higher process.

Demand oriented pricing policy

Under this policy the company uses the method of pricing at market.This
helps to avoid the price competition and price war in the market.

Cost oriented pricing policy

Under this policy the company uses the method of target pricing.It fixes a
target return of total cost.It uses break even analysis for deciding cost plus
pricing which helps it in determining the level of output

PROMOTIONAL TOOLS

Promotion consists of those activities that are designed to being a

company’s goods or services to the favorable attention of customer.”

Every company is inevitably cast into the role of communicator and

promoter.

Sales Promotion
Companies use sales-promotion tools to create a stronger and quicker
response.There is a separate organization, which jointly made efforts for
sales promotion and this organization is followed by Company.

This organization is known as “The Silk and RayonTextile Export

Promotion Council.”

The head office of Company does all the activities of the sales promotion. It
promotes its sales via dealers i.e. the product is sale thought middleman.

Following tools have been used in the method

 Buying allowance discount

 Display allowance
 Dealers contest

ADVERTISING

31
 Any paid form of non personal communication of Ideas, goods of services
by business firm identified in the advertising message intends to lead to sale
immediately of eventually.

Advertising is basically used for:

 Creating or enhancing goodwill

 Preparing ground for new product
 Creation of demand
 Facing the competition

Company is very sound company producing industrial product. Major

factories producing rayon yarn in India are under one management i.e. the
Birla Group. The Aditya Birla Group has covered near about 75% of the
yarn market. Thus there is no question of advertising.Rayon yarn is use as a
raw material in textiles industries that are not affected by any media of
advertisement and that is the reason why the company is not advertising its
product.The company publishes magazines, which depicts various facts and
figures of companies manufacturing process, EXIM policy, pricing policy,
strategies, etc. In short, the company adopts the direct advertising method

CHANNEL OF DISTRIBUTION
The middleman is not a hire link in a chain forgets by a manufacturer, but
rather and independent market, the focus of a large group of customers for
whom he buys.

The company has adopted its own sales branches and sales offices in
context of its channel 0f distribution. The company has selected the
distributed channel keeping in view the demand of the customer and the
current market trend.In Company the main product is Rayon Yarn so, this
unit utilizes level and one level of channel of distribution. They are
conducting the sales activity with the help of agents dealers,sub dealers etc.
in different cities and different state.The company sales marketing office is
at Mumbai, which performs the function of selling the product of the
company. The marketing office collects all the orders from the twelve
different sales branches. All the sales branches of Company maintain the
facilities like storage, after sales service etc.The company also produces
chemical along with the yarn like sodium, Sulphate, sulphuric acid,and
carbon-di-sulphate are distributed though dealers and selling agent.

Company Sales officers Customers

32
 COMPETITORS
To be successful, the company must to a better job than its competitors of
satisfying target consumers. This, marketing strategies must be adapted to
the needs of consumers and also to the strategies of competitors. Base on its
size and industry position the company must find the strategy that gives it
the strongest possible competitive advantages.The

Company enjoys the monopoly in the market because if its total market of
Rayon yarn industry. The Indian rayon covers almost 25% of the market
and the Aditya Birla Group have also other two unit of rayon yarn so
altogether three units covers the 75% units of the total market. Major
Competitors of Company are

 Century Rayon
 National Rayon
 Baroda Rayon
 Kesavam Rayon
 South Indian Rayon
 Shriram Rayon

33
 CHAPTER 3

PRODUCTION DEPARTMENT

34
 PRODUCTION DEPARTMENT

Production means creation of utility and entails the procurement and

utilization of factors of production, which includes manpower, material,
buildings and equipment’s .Production is fabrication of physical object
though use of men, material and equipment. Production must be operated in
an economic and efficient manner because cost of production is vital factor
in facing market competition and in ensuring normal profit or return on
investment

INPUT Output

MATERIAL Products
Production
LABOUR Services
Process
CAPITAL Information of
products

RAW MATERIALS USED

WOOD PULP
Wood pulp are generally imported from Canada name of the pulp in use is
Domsjo.100% of which contains cellulose.

Caustic lye
Caustic Iye is produce in house in caustic plant of Indian Rayon.

Carbon dye sulphaid

35
 PRODUCTION PROCESS

Viscose section
The process is carried out in the following stages:

 Conversion of cellulose into alkali cellulose i.e mixing of wood pulp with
NaOH
 Conversion of alkali cellulose into sodium cellulose xanthale
 Conversion of sodium xanthate into viscose solution.

Spin Bath Section

Spin bath is quality section to spinning rayon yarn.Spin bath is an important
constituent for the viscose to be re-generated in to cellulose.The main
composition of the spin bath solution is sulphuric acid and sodium
hydroxide.

Functions:
 Free from defects
 Having sufficient lenth of yarn
 Having a form suitable for end use requirement

 Steeping
This is a process for mixing of pulp in Caustic solution.

 Pressing
Pressing is a continuos process from homogenizer slurry is pumped to press
where it passes between two perforated drum.The excess caustic is removed
by pressing and slurry in the form of mat which contains 34% cells.15-16%
Alkali,50% water and 0.50 to 55% carbonate is formed

 Shredding
It increases the surface area of the Alkali Cellulose and ensures the rapid
and uniform aging and Xanthation.It contains three rollers rotating at

36
 different speed.Each roller is attatched with lingering wire which cuts the
mat into small pieces.

 Maturing
The main function of maturing drum is to decrease the degree of
polymerization of Alkali Cellulose by the effect of temperature and
time(ageing) to facilitate Xanthalion.Alkali cellulose takes about 7-8 hour
to pass form inlet to outlet of the maturing drum.

 Xanthalion
This is a main reaction which is carried out during Viscose
preparation.There are 5 Xanthomates equipped with agitator and are
jacketed,through which cold water is circulated to control the production
temperature.

 Dissolving
In this stage the viscose is uniformed by eight dissolver vessels which are
equipped with agitator,which makes viscose uniformed.The dissolving time
is 3 hours.

 Ripening
In ripening various viscose is filtered through different filters.It is necessary
process to remove the impurities before sending the viscose solution to
spinning section.

 Filtering
The viscose is filtered to remove undissolved materials that might disrupt
the spinning process of cause defect in the rayon filament.

 Degassing
Bubbles of air entrapped in the viscose must be removed prior to extrusion
or they would cause voids or weak spots.

Spin Bath Section

Spin bath is quality section to spinning rayon yarn.Spin bath is an important
constituent for viscose to be re-generated in to cellulose.The main
component of the spin bath solution is sulphuric acid and sodium
hydroxide.Sodium sulphate is a min by product,which requires 22 tones per
day.This by product should be removed from spin bath solution.

37
 Functions of spin bath section
 Free from defects
 Having sufficient length of yarn
 Having a form suitable for end use requirement.

Spinning Section

In this section viscose solution from viscose section is directly supplied

through dye units to spinning machine for bright and colored yam.The
merging pump drives fixed amount viscose in one minute depending upon
the capacity of the pump.Viscose temperature is about 28 degree
centigrade.Spin bath solution is also following with high speed from the
spin bath section at 56 degree centigrade to spinning section.Viscose
coming from heat cons in the contact with spin bath congulation is viscose
which takes place to from yarn of particular denier.

After treatment Section

Raw cakes from spinning section is bought to A.T section in raw cake
trucks.Here the raw cakes pass through 20 parts for 19 minutes each.In
these 20 parts the different machines are fixed in which the washing
bleaching and drying are done by soft water.Various hydro are extracted
chemicals etc.are used to remove impurities,dust and dirt.

Textile Section
The dry cakes are now dry for wining.The yarn is in the form of censor and
bank time duration of coming depends upon the denier of yarn.The textile
department places where the manufacturing process of Rayon Yarn comes
to an end.Although it comes under production processes but its function is
anxiliary and very important in nature.

Packaging Section
After wining the cones a hank,they are sent to the packaging section where
they are visually check by the inspectors and grades are given as per their
quality.At present cones are packed in cardboard boxes.Then the cartoons
which are filled by inspection side,helpers are first brought to the weighing
balance where the weight is balance as per pre-determine standard.After
that a computer packing slip is made having various necessary details.On is
paste on cartoon second is kept inside the cartoon and the third is kept for
record purpose.After that the cartoon are stepped with Polly propylene

38
 types.Finally B.O.P.P adhesive tape is applied at the joint of top flaps of
cartoons.These fully packed and sealed cartoons are sent to bonded stores
room for sales department to be despatched.

 Name of parts
 Date of packing
 Quality grade and weight
 Registered trade mark of the company
 The colour of cones and hanks
 Deniers

PLANT LAYOUT

Plant layout refers to the development of an arrangement which will permit

the most efficient flows of work for the standpoint of distance and cost.

The plant layout activity is one in which consideration is given to following

things

1. The arrangement of production an service deparments in the plant

2. The arrangement of production facility with which the operator must work
at a particular work station in one these departments

Selection of location
There was no regional advancement before the establishment of the
factory.Veraval region was very much backward in terms of industrial
activities.People were socially as well as economically backwards.So the
government decided to develop the area with the establishment of the
factory.For this the land cost guarentees an various other incentives like
smooth supplement of the water an electricity were also provided by the
Govt 1979.
From 1979 the company has established its own power plant and water
supplement from Govt is still continued but the co. has to pay the water
charges as per the Government rule.

MATERIAL HANDLING

39
 Material handling is the art and the science involving the movement
packing and storing of substance in any form.

Material handling can be defined as “Controlling the amount location

movement and timing of the various commodities used in and produced by
the industrial enterprise.”Company is totally using the automatic process for
production, but at certain stage it uses equipment for the shifting of raw
material. The company uses trolley as an equipment for material handling
in its Viscose Section to brought up the wood pulp from the storage
department an in after treatment department to puts the cakes in washing an
knitting. After the last stage of the production, the final product is sent to
the packing section with the help of trolley.

The Company mainly uses.

 Conveyers
 Rails
 Cranes
 Trucks

For the supply of raw material to various department.The Diesel Power

House of the Company uses conveyer belts for the supply of coal that
isimported from Bihar.Whereas the other raw material like wood pulp
sulphur etc. brought by land route i.e. railsand truck to the factory.

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

It mainly depends upon two factors.

1.Product Service Design

2.Operating System makes a product/provides a service.

Major function undertaken by Company.

 Regular checking of set parameters.

 Checking individual
 Checking of abnormality in the process
 Highlighting the variations from the set operation procedures/parameters.

Technical Sales:

 Regular market visits to meet consumers demand.

40
 Regular comparison of yarn quality and physical properties of other
manufacturers
 Checking and suggestion to eliminate market complains.

Improvement Cell:

 Analysis of breakdown and stoppage of process

 Suggestion for improvement in existing operation system for better plant
control
 To carry out study on specification problem/effect and to suggest their
stages.
 To develop different shades/product for sales promotion.

INSPECTION
Company maintains a very high standard of quality.Each and every
cone/hank is subjected to visual inspection in order to decide the quality to
cone.One operator is inspecting 1400 cones/shift and 1200 cones shifts of
colour yarn.
After inspection the operator is putting a gummed quality label on every
cone.These cones are being wrapped in transperancy polythene sheets along
with and ungummed quality label.

PLANT MAINTENANCE
Plant maintenance ensures that all production facilities are in serviceable
condition atrequired time, causing on production hold-up, interruption, or
loss of individual lefficiency for operation.The objective of plant
maintenance is to improve functional reliability of production facilityto
grab opportunities.Company follows World Calls Manufacturing Policy
(WCM) of plant maintenance, which ithas adopted in the recent years.
However formerly it was using Total ProductiveMaintenance (TPM) of
plant maintenance.

41
 CHAPTER 4

HUMAN RESOURCE DEPARTMENT

HUMAN RESOURCE DEPARTMENT

42
 Personnel management is a link between the top management and the
workers or we can say that its acts like a bridge between the employees and
the employers.It is basically concerned with human relationships within the
organization and helps in maintaining smooth relationship between
employee and employees.It is the art of getting things done by other
people.Human resource is the greatest asset of any business enterprise.The
workers are the heart of the organization.It is the manpower that operates
the machines,processes the raw materials into a finished product and makes
it possible for sale in the market.Henceforth we can say that personnel
management is the most essential department of and organization in order
to have a proper manpower planning,organization,staffing,directing and
controlling is essential.

With reference to Indian Rayon,the personnel development of which is

divided into two divisions,i.e

 HR and training
 Personnel development

Personnel department.

It mainly deals in the process of recruitment of manpower and acts as a

consulting agent between the officers and the workers.

HR and Training

It deals with the staff members of an organization and is accountable to the

vice president

MANPOWER PLANNING
The process of determining the manpower requirments and the means for
meeting those requirments in order to carry out the plan of the organization
is know as manpower planning.

Company uses “PURTA” which is known as the system of control through

budgets and standards in modern cost accounting and management
costing.”PURTA” summarises the objective of the whole organization.All
the department that is need of additional requirments of manpower has to
contact the personnel department which makes the arrangement of the
required manpower.Every month the personnel department issues personnel

43
 requisition from the department and this forecasts its manpower demand of
each department.

Importance of manpower planning

 Only people can spread knowledge resource around the company

 Individual knowledge is the staffing point for organization knowledge
 The executive sources of knowledge for organization and people
 It is only people who can convert knowledge into efficient action
 The knowledge of each individual can not be applicated

RECRUITMENT AND SELECTION

Recruitment:

“Recruitment is process to discover the sources of manpower to meet the

requirement of the staffing schedule and to employ effective measures for
attracting that manpower in adequate enumbers to facilitate effective
selection of and efficient working force.”The recruiting procedure of
Company consists of three segments.

 Recruitment of workers
 Recruitment of executives and managerial staff
 Recruitment of technical personnel

As far as Company is concerned the recruitment procedure is directly

depend upon human forces and is relate to the selection of well-qualified
personnel’s.

Selection:

The selection procedure is concerned with security relevant information

about an application.Company recruitment and selection procedure for
blue-collar force is as per the labor laws.For the recruitment of labor in the
Co. it is essential that he should acquire the certificate of ITI
examination.The concern supervisor and the labor welfare officer select
workers. Physical fitness. Attitude for work etc. are considered at the time
of selection. With reference to the method Company uses the indirect
method more frequently for the recruitment of its employees. Some time
sthe Company also uses the third Party Method at the time of the selection
of high level personnel like general manager secretary and vice president

RECRUITMENT AND SELECTION PROCEDURE FOR WHITE

COLLAR FORCE.
44
 White-collar job refers to the selection of officers and managers. For this
purpose the Company is largely depend upon the fresh candidate and for
that the Co. is following the formal selection procedure:

 Application receipt
 Employment test
 Group discussions
 Final interview
 Medical examination
 Reference checked
 Orientation

Induction:

Indction is a technique by which a new employee is rehabilitating into the

change surrounding and introduces to the practices polities and purpose of
the organization.Company gives induction to the new members by
familiarising them with the surroundings showing them the reporting
relations and so on.

Training and Development

Training is an important aspect of personnel which increases the knowledge
and skill of a worker for doing a specific job.

Training for the wokers

The HR department of the company prepares schedule for training of the
workers in order to be familiar with their task and to develop the job.The
main purpose of the company behind imparting training is to make the
wokrers well converse with the new technology.

Training need identification

The training needs are identified through the annual performance appraisal
system.Both the staff himself and his department head identifies the training
need and mentioned the same in the annual performance appraisal from the
employees.

The need identification above is compiled and annual training calendar

prepared by HR department.Further the corporate HR also suggests that the
unit HR organize some specific training programmes based on the needs
felt by the corporate HR.

Training for clerk and technical staff

45
 The Company is not imparting any training courses as far as clerical staff is
concerned.But the supervisors are trained for:

 Gaining knowledge to responsibility

 Cost control and cost effectiveness
 Knowledge of disciplinary actions
 Development of leadership qualities

The purpose of the company behind imparting training is to:

 To create awareness among workers regarding the quality of products to

improve knowledge thereby
 Enhancement of technical knowledge and various safety measurement
techniques
 To improve the discipline of the worker,good conduct and job
responsibility.

Evaluation of training Effectiveness

Feedback form are filed by the employees after every taining programme to
rate the effectiveness of the training programme on the following criteria.

 Duration of the programme

 Course content
 Overall effectiveness of the programme
 Effectiveness of the faculty
 Physical arrangement of the programme.

Executive development
Company at times also aims at improving the managerial skills and
effectiveness of its every individual through a planned and deliberate
profile and process of learning.

Company has adopted the concepts of Birla Management Center,which

aims at giving new ideas and innovation.The target BMC Center is
excellence for everyone.The management of the company pays a huge
amount to the trainer for imparting training performs in the organization

Job Description

The job description is nothing but it is the written form of job analysis like
what to do? Where to do? What is the main responsibility? Etc

In oter words job descriptions means to give the information and guidance
to candidate about his particular job for which he has been selected is a
process of giving information to candidate about his status duties
responsibilities is as under.

46
 Observation of employees at the time of work
 Discussion with departmental heads and outside experts

The job description process is for employees which are at middle as well as
personnel executives.

Managerial Levels

In this unit when a managerial level person is selected,following are the

information given to him:

 Nature of job
 Duties and responsibilities
 Job summary
 Position and Status
 Working Condition

PERFORMANCE APPRAISAL
It is the process of evaluating the performance and qualifications of the
employee in term of the requirement of the job, for which he is
employed.The main aim of the evaluation system is to identify the
performance gap. This gap is the shortfall that occurs when performance
does not meet the standard set by the organization as acceptable.The
management is also using three years of service period is studying
performance appraisal system. When a new candidate is recruited, the
management examines his performance for two years that is called as the
apprentice period.In this co. normally three years of service period is
considered to be qualified period for getting promotion. At the meanwhile
of these three years the performance of the employee is continuously
observed and is taken into account while giving promotion. During this
period the management prepares the confidential report of the performance
and behavior of the candidate.The performance appraisal system adopted by
Company is traditional one. It conducts the performance appraisal program
in the month of May every year and all the employees are divided into two
categories i.e. staff members and operating workers

MOTIVATION
“The emphasis industrial psychology has shifted from the studies of the
isolated individual and physical environment to the consideration of
motivation & morale.”

- I.A.C. BROWE

Indian Rayon motivates staff by performance appraisal. Every staff

member recognizes his work and he always tries to do better work &

47
effective work if his work is recognized. Indian Rayon motivates staff by
performance appraisal. For e.g. their regular work, honesty can also such
things are being kept in mind

PROMOTION AND TRANSFER

Promotion:

“A promotion and the transfer of an employee to a job which pays more

money or one that carries so preferred status.”

Company also has a sound personnel policy. The policy is a blend of

seniority and merit consideration stressing more emphasis on seniority. And
employee is promoted considering his ability to deal with problems occurs
among the subordinates and seniors as well as level of proficiency, loyalty,
etc.Promotion is given after every 3 or 4 years on the basis of disciplinary
action and by performance appraisal system.Employees are promoted
within the organization in term of vacancies of creation of new post.
Company adopts to take the advance of the employees, one very well aware
of companies policy and production procedures in term to motivate them.

Transfer:

“A lateral shift causing movement of individuals from one position to

another usually without involving any marked change in duties,
responsibilities skills needed or compensation.”

Company runs various units located at different places within the country,
yet under this unit transfer practice is not following. Sometimes some
workers are transferred from one department to another because of physical
fitness problem.

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 CHAPTER 5

PURCHASE DEPARTMENT

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 PURCHASE DEPARTMENT

Purchasing is the function of buying goods and services from external

sources to an organization. Purchase department basically buys raw
materials, spare parts, services etc. as required by the company or
organization.

The following figure explains the purchase process

USER(INDENTOR)

PURCHASE REQUISITION

FLOAT ENQUIRY TO DIFFERENT

VENDORS

QUOTATIONS PROVIDED BY
DIFFERENT VENDORS

COMPARTIVE STATEMENT

APPROVAL

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 PURCHASE ORDER EXECUTION

VENDOR SUPPLIES THE GOODS

AS PER THE PURCHASE ORDER

RECEIPT OF MATERIALS BY THE

STORES DEPARTMENT

INSPECTION OF THE MATERIALS

BY THE STORES DEPARTMENT

PREPARATION OF GOODS
RECEIPT

USERS

The users the nothing but the technical departments of the company.These
technical departments undertake various activities which might be relating
to the process of manufacturing,maintainence,spinning etc.Since all these
departments are engaged in some activity or the other they require specific
materials so that they can carry on their activities.When such a requirement
arises these technical departments makes a request to the purchase
department.

Purchase Requisition
Once the technical departments makes a purchase requisition these requests
straight away flows to the material department.The material department
then takes into consideration of these Purchase Requisitions and examines

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the details such as the item name,quantity required,name of requisitioning
department,requisitioning plant,requisitioning code etc.

Floating Enquiries for different vendors

Once the purchase requisition is received by the purchase department it then
proceeds to floating enquiries to different vendors by giving the material
code,material name,material description,Drawing of the item(If drawing is
required) and quantity required.

Quotations provided by different vendors

After the enquiry is made then vendors then proceed to providing
offers.Vendors first mention if the product is available or not,if its unable
the vendors replies by marking “Regret” against the name of the item which
is unavailable.If its available they mention the prices along with the
delivery date,payment terms and so on.

Comparitive Statement
A comparative Statement is a statement which shows the effective price of
different items different vendors.It usually shows the comparison of the
same item from different vendors terms of per unit cost,freight,GST and so
on.The comparative statement underline as to which vendor charges the
least and which vendor charges the highest is only with a comparative
statement that the technical departments makes a purchase order.In the
comparative statement the order will be always given to those vendor which
provides the least cost.In such cases he becomes the “L1” and other vendors
become “L2” and “L3” Thus the order will always be given to L1.But there
are instances where L1 is ignored.This might be because of factors such as
quality.At times maybe one vendor might be providing goods at a lower
cost but his quality might be lacking.In such casesL1 might be ignored and
L2 might be favoured.There are also instances wherein L1 and L2 both
might be favoured.This is because L1 might be a new vendor and L2 might
be a old vendor and L1 might not possess the raw materials (such as dye
used for a coloured product with him) in such cases the L1 has to collect the
raw material first and then proceed with the preparation.Where as L2
already possess the raw materials and he takes less time to prepare the
product.So therefore in order to save time and money orders might be given
to both party.

Approval

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Prior approval from the concerned authority will also be required before
executing a purchase order.An individual purchase unit staff can make
orders without any approval for orders up to Rs 1,00,000.But orders ranging
from Rs 1,00,000 to 8,00,000 require the approval of the general manager
and orders between Rs 8,00,000 to 16,00,000 require the signing of the Unit
Head.

Purchase Order Execution

After getting all the prior approvals and identifying the parties for whom
the PO is to be executed,the Purchase order is made

Vendor supplies the goods

The vendor then supplies the goods as the per the purchase order and
delivery period as well as delivery terms.At times the purchase might be
given as “Rate Contracts”which are nothing but long term purchase
orders.In rate contracts the party might request the vendor to supply the
goods in parts at the start of every month for a period of about maybe 6
months or one year.This eliminates the need to create multiple purchase
orders.

Receipt of materials by the stores department

The vendor then delivers the goods to the stores department of the
company.The stores department then proceeds to collecting the items so
received

Inspection of the materials by the stores department.

The stores department then proceeds towards inspecting the goods so
dispatched by the vendor.The stores deparment thoroughly checks the
quality of the products so as to ensure whether they are not damaged.If they
are damaged these products are then send back to the vendor..

Preparation of Goods Receipt

The stores department then proceeds to prepare the goods receipt,goods
receipt basically serves as an acknowledgement that the goods are
received.Once the goods receipt is prepared by the stores department the
whole process of the purchase-department is complete

RATE CONTRACTS

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There are long term PO these are supplied regularly. The stores departments
Maintains a minimum and maximum number of inventory.When inventory
automatically generated and sent to purchase department. Thus rate
contracts are used for regular rates

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 CHAPTER 6

FINANCE DEPARTMENT

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 FINANCE DEPARTMENT
Financial management is the managerial activity which is concerned with
the planning and controlling of the firms of the financial resources.

Finance management is concern with the efficient use of an important

economic resource,namely capital fund

Taking a commercial business as the most common organizational

structure,the key objective of financial management would be to.

 Create wealth for the business

 Generate cash
 Provide adequate return on investment bearing in mind the risks that the
business is talking and the resources invested.

There are also three key elements to the process of financial management.

Financial Planning
Management needs to ensure that enough funding is available at the right
time to meet the needs of the business.In the short term,funding may be
needed to invest in equipment and stock,pay employee.In the medium and
long term funding may be required for significant additions to the
productive capacity of the business or to make acquisitions.

Financial control
Financial control is critically important activity to help the business ensure
that the business is meeting its objectives.

Financial decision-making
A key financing decision is whether profits earned by the business should
be retained rather than distributed to shareholders via dividends.If dividends
are too high the business may be starved of funding to funding to reinvest in
growing revenues and profits further.

CAPITAL STRUCTURE
Capital structure may be defined as the combination of debt and equity that
leads to maximum value of firm.Capital structure refers to the mix of long-
term sources of funds and such as debenture, long-term debit, preference
share capital and equity share capital including reserves and surplus.The
company should plan an optimum capital structure.

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 FIXED ASSET
As the name suggest, such assets are acquired to be retaining in business on
long term basisto produce goods and services and are not for resale.Indian
Rayon has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets. The management during
the year has not physicallyverified all the fixed assets but there is regular
program of verification, which is reasonable,having regard to the size of the
company and the nature of its assets. No discrepancies werenoticed on such
verification.During the year company has not disposed off substantial part
of its fixed assets

CAPITAL BUDGETING
The system of Capital Budgeting is employee to evaluate expenditure
decision, whichinvolve current outlays but are likely to product benefits
over a period of time longer thenone year.These benefits may be either in
the form of increased revenue or decreased cost.

There is various method of Capital Budgeting

 Internal rate of return

 Average rate of return
 Profitability index
 Pay back period
 Net present value

Company undertakes Capital Budgeting every year with the help of

financial experts of financial dept on basis of pay back period
methodology.The Co. always aims at increasing and expanding the installed
capacity of Rayon Yarn production. It constantly tries for its success. At
present the installed capacity of plant is15000 tons/annum.At present the
main objective of Company is replacement and modernization of machine
and fixed assets and business expansion by adding new machineries and
technology. The unit base takes this decision on pay back period.

WORKING CAPITAL
Working capital is concerned with management of current asset. It is and
important and integral part of financial management as short-term survival

57
 is prerequisite for long-term success.The divisional management of
Company manages the working capital within the broad framework laid by
and with consolation of corporation finance division. Decision regarding its
utilization of the current assets is made in accordance with the policy of
company.The operating cycle can be said to be at the heart of the need for
working capital.

INVENTORY MANAGEMENT
The assessment of the working capital in the Company is done by the CFD
with the consultation with the management staff of the Co. and on the basis
of the Co. previous year experience. This helps to maintain efficiently fund
for operation of the organization.“Inventory refers to the stockpile of the
product a firm is offering for sale and the components that make up the
product.”The Company is the manufacturing organization, so being
manufacturing organization it needs a large among of the inventories for the
soothing of business operation. The Co. invests nearly 48 to 50 percent of
total current assets in the inventories.In the Company the inventory is
maintain by finding the actual requirement and the analysing material,
which is scared or not easily meet at the proper time. Then after the Co.
decides the ptimum level for each inventory based on the requirement. But
because Co. has a good image to the supplier, it maintains the three days
stock inventories for most of the goods even though the industry standard is
seen days.In Company there is a special storage dept. and separate
inventory management force, which perform certain function for efficient
management of inventories in the company. It maintains sufficient stock of
raw materials in period of short supply and anticipates price change. It helps
sales dept. by maintaining sufficient finished goods inventories for soothe
sales operation.The company is maintaining proper records of inventory.
No material discrepancies have been noticed on physical verification of
stocks as compared to book records

MANAGEMENT OF RECEIVABLE
The management of receivable is basically concerned with the old
customers and wining the new ones by collecting a regulating the cost
management of receivables also known as trade receivables or customers or
debtors receivables. It means when firm make ordinary sales on credit and
payment has not been received yet.Such management of receivables IRIL
grants the credit term to its customers for 15 days.However, in exceptional
cases it is increased to certain extent. The purchaser sends bank drafts on
expiry of credit period. The receivables arise out of three features:

 It involves an element of risk, which should be carefully analyzed

 It is based on economic value.

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 It implies future management of receivable.

Management of receivables concerned with retaining the old customers and

winning new by controlling and regulating the costs. Indian Rayon grants
the credit form to its customers for 15 days

DIVIDEND DISTRIBUTION
Dividend refers to that portion of a firm’s net earnings, which are paid out
to the shareholders.A major decision of financial management is the
dividend decision in the sense that the fir has to choose between distributing
the profits to the shareholders and ploughing them back into the business.

CASH MANAGEMENT
Generally an organization holds the cash for transaction motive precaution
motive and speculative motive and compensating motive.
The company holds the cash for only the transaction motive.It holds the
cash for sooting the day to day operation only.If there is surplus of cash in
the company then it is transferred to the CFD while if there is deficit of cash
in the organization it borrows from the CFD and also decision regarding the
investment of cash in to marketable security is done through the CFD only.

CASH COLLECTION
Company carries operation in various geographical areas of the country.It
tries to speed up the cash collection by decentralization with the help of ten
ash collection centres all over India.

CASH DISBURSEMENTS
The disbursement is one through centralized system by the
organization.The payment of the bill will be made from the central account
and from the head office.So the company can enjoy the transit time delay
using the factories.

OPTIMUM CASH BALANCE

The company keeps a maximum level of cash balance worth and average
payment for three days.If cash is more than its maximum level then the cash
if transferred to the CFD and if cash is less than the requirement at that time
cash is borrowed from the CFD.Company manages its in a manner that
enables the firm to remain in liquidity position at its best

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 Conclusion

After going through the training program and functioning of the

organization it can be concluded that Indian Rayon is a large scale
manufacturing organization and successful player in the VFY and chemical
products. The company has a strong surname and has a very good
reputation in the market.

In the backdrop of various initiatives taken and strong performances during

the year. Indian Rayon Is on the path of superior performance. The
company has strategically moved Into various growth businesses and these
are backed by traditional businesses that generates strong cash flows to
drive the growth.

As concerned with the personnel Dept. it is well organized. Certain

problems which arises here are solved by mutual understanding between the
personnel and the management. Manpower,planning and human assets are
also well organized.

The company is also doing its business With the Global Market In India and
the share of Indian Rayon and the total export of the VFY are highest

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 BIBLIOGRAPHY

BOOKS

 B. Mahadevan ; “Operation Management” , 3rd Edition 2008, Pearson

Publication
 K.Aswathappa ; “ Human Resource and Personal Management” 4th edition,
Tata Mc Graw Hill publishing company ltd.
 Pandey I.M, “Financial Management” 9th edition, vikas publishing house
New Delhi
 VK saxena and CD vashit ; “ Essential of Financial management” , 1st
edition 2008, sultan chand and sons
 Philip Kotler ; “Marketing Management” , The millennium edition,
prentice hall of india pvt ltd

MAGAZINE

 Aditya kiran birla group publications

 The accounting world - july 2009 issue cygnus business consulting and
research pvt ltd.
 Business strategy- june 2009 issue ICFAI university press

WEBSITES

 www.indianrayon.com
 www.adityabirlanuvo.com

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