CHAPTER -1

INTRODUCTION
 CHAPTER -1

INTRODUCTION

Management is the process by which people, technology, job tasks and other resources are
combined and coordinated so as to effectively achieve organizational goal. The organizational
study is conducted at CARBORUNDUM UNIVERSAL LIMITED KORATTY. It is a study
about organizational structure, communication channel, span of control, organizational culture,
and industrial relations etc. of organization. The relevance of the study is to understand the
above mentioned facts through a real organizational scenario.

Carborundum Universal was established in 1954 as a joint venture between the Murugappa
Group, India the Carborundum Company, USA and the Universal Grinding Wheel Co. Ltd UK.
The main business activity of Carborundum Universal involves manufacture of coated abrasive,
super refractories, electro minerals, industrial ceramics and ceramic fibers. Further, CUMI
produces about 20000 different varieties of abrasive products, refractory products, and electro
minerals. Carborundum Universal Ltd has to manufacturing facilities across India and there
manufacturing facilities are meticulously connected with a wide network of distributors and
sub-distributors.

CUMI is known to be an innovator and experts its products to 43 countries spread across North
America, Europe, Australia, South Africa and Asia. All the manufacturing facility of
Carborundum Universal is ISO 9001:2000 and ISO 14001 certified for quality standards and
environment friendly manufacturing practices respectively. Carborundum Universal Ltd. is
equipped with a State –of-the- Art Research and Development Centre which works aggressively
on product development and enhancement.

Murugappa Group’s headquarters in Chennai, the revenue Rs. 386 billion (US$ 5.6 Billion).
Murugappa Group is one of India’s leading business conglomerates. Market leaders in diverse
areas of business including engineering abrasives, finance ,general insurance, cycle, sugar, farm
inputs. Fertilizers, plantations, bio products and nutraceuticals, its 29 companies have
manufacturing facilities spread across 13 states in India.
Organization study is confined to 30 days based on the primary data obtained from the head of
various department, the middle level managers and supervisory staff, this covers in brief in the
present position of the company. Organization study is conducted by personally visiting the
company at Koratty. All information about manufacturing process has been gathered by
interacting with different personal of the organization at various levels.

The method used is a qualitative of analysis from paying enough attention to the careful and
complete observation of the organization. The organization structure and operative management
of various departments are taken for the purpose of the study.

2.1 OBJECTIVE OF THE STUDY

2.1.1 PRIMARY OBJECTIVE

 To understand structure and function of the organization.

 To understand delegation of authority and responsibility.
 To understand various policy and programs of the organization.
 To understand the working environment of the organization.
 To understand strength, weakness, opportunities and threats of the organization.
 To understand various facilities of the organization.
 To understand the process flow in each departments.

2.1.2 SECONDARY OBJECTIVE

 To get practical knowledge about the functioning of various departments of the

organization.
 To understand the formal and informal relationship that exists among employee at
different levels of the organization.
 To study the quality assurance procedures and techniques adopted for keeping the
national and international standards.
 To understand the financial position of the organization.
2.2 SCOPE OF THE STUDY

The study has been conducted at Carborundum Universal Ltd, Koratty, Thrissur, Kerala, during
the period of May, 2019. The study helps to know about the different departments in an
organization. The study is conducted for the purpose of understanding the balance maintained
by the employee in the organization. This study will help us to know more about the functions
of department in the company. It is purely based on the information obtained from the
departmental heads of the organization.

2.3 METHODOLOGY

The method used is a qualitative form of analysis paying enough attention to the careful and
complete observation of the organization. The organization structure and operative management
of various departments are taken for the purpose of the study.

The methods adopted mainly are:

 Primary data
 Secondary data

Primary data

Primary data was collected directly from the employees by means of discussion, and direct
interviews with the managers. An observation system also helped in understanding the process
involved.

Secondary data

Secondary data is collected from publishing and unpublished sources. The data needed to
prepare this was obtained from:

 Journal
 Information from companies website
 Annual reports
 Company record
2.4 LIMITATION OF THE STUDY

 Due to busy routine of officers and employee they cannot be properly interviewed to
collect data.
 Lack of experience of researcher.
 The information collected is mainly based on the secondary data, which forms a
limitation.
 Time was a major factor.
 Management did not disclose the confidential data.
 Some were not interested in interaction and they did not give proper information.
 Difficulty in meeting the officials because of their busy schedule.
 CHAPTER -2

INDUSTRY PROFILE
 CHAPTER-2

INDUSTRY PROFILE

Abrasive are used very extensively in a wide variety of industrial, domestic and technological
applications. Some common uses for abrasives include grinding, polishing, buffing, honing,
cutting, drilling, sharpening and sanding. Abrasions may arise following strong contract with
surfaces made things such as concrete, stone, wood, carpet and roads, through these surfaces are
not intended for use as abrasive. Abrasives may be classified as either natural or synthetic.
Many synthetic abrasives are effectively identical to a natural mineral, differing only in that the
synthetic mineral may make it less effective. Both natural and synthetic abrasives are commonly
available in a wide variety of shapes often coming as bonded or coated abrasives, including
blocks, belts, discs, wheels sheets and loose gains.

Electro mineral products group offers sintered aluminium oxide and silicon grains as major
product line. Electro minerals are used as basic raw materials in the manufacture of abrasives
and refractoriness. They are also increasingly being used for silicon wafer slicing in solar cell
manufacture, dental care and skin therapy. Silicon carbide is also used as an input in
metallurgical industries. CUMI’s range of electro minerals includes silicon carbide, brown
aluminum oxide and white aluminum oxide. It also manufactures mullite, bubbles alumina and
certain other speculates in smaller quantities.

The manufacturing process is as follows: Basic inputs are fused using electric arcing. Then the
resultant crude is crushed and graded. The key inputs for manufacture of electro minerals
include bauxite, alumina, silica sand, raw petroleum coke and electricity. Key success factors in
the industry are cost and quality. Entry barriers are high capital investment, limited market
technology. A variability of alternatives and product differentiation are the main challenges in
business. The global market size or electro minerals are estimated at around used 2.5 billion.
The acquisition of Volzhsky Abrasive works, Russia has positioned CUMI as the second largest
producer of silicon carbide in the world. The electro minerals business operates several
manufacturing facilities which have been certified for process quality and environment
protection.

2.1 WORLD SCENARIO

The electro mineral industry faced competition from imports but this was counted by delivering
quality product. In the export market, removal of anti- dumping duty of Chinese product export
to Europe. However during period the European countries are falling to financial crisis. Many of
companies stopped their production or quantity of production is decreasing due to financial
crisis.

Major companies in this industry are:

 Abrasives Grain ET Powder (A.G.P), France.

 3M Coated Abrasives Division, USA.
 Abandon silicon carbide and Aluminium oxide production.
 Beijing Kingder Resources and Technology Development Corporation, China.
 Carborundum Universal Ltd. India.

2.2 INDIAN SCENARIO

CUMI will continue to focus on quality and application, specific product offering and on
improving its customer base. In the domestic market there are 3 manufactures for electro
minerals. CUMI is market leader in the Indian Industry. The export market will be targeted with
Silicon Carbide micro grit with improved in product quality. CUMI is a major player in the
domestic market for the Brown and White Fused Aluminium Oxide and Silicon Carbide. The
key success factor in the industry is cost and quality, while entry barriers are sophisticated
technology. The availability of substitute product, product differentiation and imports continue
to be the principle challenge in the business.

2.3 STATE SCENARIO

There was a 17% increase in power tariff in Kerala, which adversely affected the profitability of
the electro-minerals industry. This was future compounded by the low power plant due to poor
monsoon in Kerala last year. Use of consumption and reduction in power consumption and
improvement in crude recovery helped in the same.

THE LATEST DEVELOPMENTS

Abrasives manufacturers worldwide have focused on grain development, newer and strong
adhesives for product durability and better productivity. Other developments have been in high
speed vitrified wheels of more than 150 MPs and diamonds and CBN wheels in case of coated
abrasives, the latest development has been in non- woven abrasives and scouring pads.

An abrasive is a type of very hard materials; (it can often be a mineral). Abrasive are used in a
wide range of domestic, industrial and technological applications. Abrasives are used to finish
or shape a work piece. Rubbing the abrasive on the work piece leads to part of the work piece
being worn away. When finishing a materials it is often thought of as means to polish the
material to gain a smooth surface or even reflective surface ; however, some finishing require
roughening as in beaded, matte or satin finishes.

The Indian abrasives market has grown at rate of about 2-3% in past 5 years and is expected
to grow at 8-10%. Annually growth in demand for bounded abrasive is likely to be about 12%
and that in coated abrasives is likely to be about 10- 12% world GDP is forecast to grow by 3.3
% globally.

MANUFACTURING
Abrasives in India cater more to the industrial sectors. There are 4 major companies in
abrasives listed space. They are,

1. Carborundum Universal LTD (CUMI)

2. Grind Well Norton

3. Orient Abrasives

4. Wendt.
Carborundum Universal LTD is a Murugappa group company located in India and other
countries. Grind Well Norton is a partnership of Saint Gobain and some Indian partners. Orient
abrasives is the leader in manufacture of refractory’s which are used in lining of different
industries to protect from heat .Wendt is mainly concentrated in diamond cutting blades. It is a
partnership between Wendt and CUMI.
CHAPTER-3

COMPANY PROFILE
 CHAPTER-3

COMPANY PROFILE
CUMI is one of the five manufactures in the world with fully integrated operations that include
mining, fashioning, wind and hydro power stations, manufacturing, marketing and distribution.
Almost all of CUMI’S ten manufacturing facilities have received the ISO 9001:2015
accreditation for quality standards. A well-connected marketing and distribution network of
offices and warehouses in India and abroad ensure that services to customers are given more
importance.
The joint venture between the Murugappa groups has helped to achieve high growth
rate of CUMI. The Murugappa group has grown consistently through its decisive and visionary
response to changing times. Its pioneering efforts, steadfast commitment to ethical business
practices and dogged pursuit of new areas to extend its business acumen have brought in its
wake several prestigious national and international awards.
CUMI was founded in 1954 as a tripartite collaboration between the Murugappa Group,
The Carborundum Co., USA and the Universal Grinding Wheel Co. Ltd., U.K. The company
pioneered the manufacture of Coated Abrasives and Bonded Abrasives in India in addition to
the manufacture of Super Refractories, Electro Minerals, Industrial Ceramics and Ceramic
Fibres. Today the company's range of over 20,000 different varieties of abrasives, refractory
products and electro-minerals are manufactured in ten locations across various parts of the
country. CUMI's products are being exported to 43 countries spread across North America,
Europe, Australia, South Africa and Asia.

3.1 MURUGAPPA GROUP

Murugappa Group’s headquarters in Chennai, the revenue Rs 386 billion (US$ 5.6
Billion). Murugappa group is one of the India’s most leading business conglomerates. Market
leaders in diverse areas of business including engineering abrasives finance, general insurance,
cycles, sugar, farm inputs, fertilizers, plantations, Bio-products and Nutraceuticals, its 29
companies have manufacturing facilities spread across 13 states in India. The Group has 28
businesses including nine listed Companies traded in NSE & BSE.
The organization fosters an environment of professionalism and has a workforce of
over 32,000 employees. The group has forged strong joint venture alliances with leading
international companies like DBS Bank, Mitsui Sumitomo, Foskor, growing diversified
business houses in India. Some of the country’s best known brands like Parry, BSA and
Hercules in bicycles etc. come from the Murugappa group. Focusing on its research and
development innovations it has registered 43 international patents.
The business has its origins in 1900,when Dewan Bahadur A M Murugappa Chettiar
established a money lending and banking business in Burma(now Myanmar),which then spread
to Malaysia, Sri Lanka, Indonesia and Vietnam.

Major categories in Murugappa Group are:-

MURUGAPPA GROUP

ELECTRO ABRASIVES INDUSTRIAL REFACTORIES

MINERALS CERAMICS

KERALA & HOSUR HOSUR HOSUR

GUJARAT
3.2 GROUP STRUCTURE

3.3 COMPANY PROFILE

Name of the industrial concern : CARBORUNUM UNIVERSAL LTD

Constitution : PUBLIC LTD

Year of construction : 1954

Location : NALUKETTU P.O

KORATTY VIA
THRISSUR DISTRICT
KERALA, INDIA
PIN-680308

Chairman : Mr. MURUGAPPAN

Manufacturing director : Mr. K.S. SREENIVASAN

Business : ABRASIVE, ELECTRO MINERALS, REFRACTORIES,
CERAMICS,

Product : SILICON CARBIDE, BROWN FUSED ALUMINA,

WHITE FUSED ALUMINA AND HIGH QUALITY
MICRO GRITS

Exporting : EUROPEAN COUNTRIES, CANADA,

PHILIPINES, AUSTRALIA, CHINA
3.4 VISION AND MISSION

3.4.1 VISION
The vision of the CUMI is “we will be admired technical ceramic company driven by
innovation continuously enhancing Stakeholders wealth”.
3.4.2 MISSION
The mission of the CUMI is “we will steadily improve Electro Mineral Division’s
profitability and grow aggressively in new products and micro grits”.
 To maintain international quality system
 To be innovative, resourceful and profitable company
 To meet customer requirements of quality service and price consistency.
 To promote and practice customer orientation culture
 Ensure continuous development of human resource.
 To explore all opportunities and to enhance its stakeholders value through ethical
practices.
 To adhere to the highest standards in manufacturing, beyond the stringent parameters of
environmental stipulations.
 To promote human values at the forefront and nurture its people with a deep- rooted
sense.
 To promote employee care, concern and deep-routed commitment to people:

3.5 VALUES AND BELIEFS

 “The fundamental principle of economic activity is that no man; you transact with will
lose; then you shall not.” Carborundum Universal Ltd’ s (CUMI) commitment to ethical and
lawful business conduct will be a fundamental shared value of the Board of Directors, the senior
management and all other employees of the company.

3.6 CUMI -ENVIRONMENTAL POLICY

We at CUMI are committed to be an Eco-friendly organization and shall strive to protect
preserve and improve the environment. This will be achieved through:
 Continual improvement at the operations for achieving better environmental performance.
 Optimizing usage of energy and other resources.
 Creating environmental awareness among employees through training and development.
 Minimizing waste generation and keeping disposing appropriately to reduce impact on
environment.
 Protecting employees by improving safely standards and monitoring health on periodic
basis.
3.7 PRODUCTS

CUMI’s Electro mineral Division is in the business of Silicon Carbide, Brown Fused
Alumina, White Fused Alumina & high Quality micro grits. Abrasive and refractory industries
are me major and users of these products. These are also used for surface preparation and in tile
and paint industries.

FUSED PRODUCTS MACRO – REGULAR

 Silicon carbide
 Brown fused Alumina
 White fused Alumina
 Fused Mullite
FUSED PRODUCTS MACRO –SPECIALITY

 Semi Friable Alumina

  Blue Fired Semi Friable Alumina
 Sintered Alumina
 Fused Zirconia
MICRO POWDERS

 Silicon carbide
 Brown fused Alumina
 White fused Alumina

FUSED PRODUCTS MACRO – REGULAR

SILICON CARBIDE

Silicon carbide is a manmade mineral of extreme hardness and sharpness. It is the ideal
abrasive for grinding / sanding materials of low tensile strength such as cast iron, Brass,
Aluminium, Bronze etc. Its terminal properties make it excellent medium for use in the
manufacture of refectory products and crucibles. Silicon carbide is produced by a process
involving the electrochemical reaction of silica-in the form of quartz with carbon in the form of
raw petroleum coke. Stoichiometric mixture is reacted in an electrical resistance furnace at a
temperature greater than 2200°C to yield high quality crystals. The large crystals are then
segregated, crushed, cleaned of magnetic impurities in high intensity

BROWN FUSED ALUMINA

Brown fused Alumina is tough, sharp abrasive which is highly suitable for grinding mental of
high tensile strength. Its terminal properties make it an excellent material use in the manufacture
of refractory products. This material is also used in other application like blasting and surface
hardening. Brown fused alumina is produced by the smelting of Calcined Bauxite in an electric
are furnace at temperature greater than 2000 °C. A slow solidification process follows the
fusion, to yield blocky crystals.

Strict control over Titania levels during the fusion process ensures optimum toughness of the
grains. The cooled crude is further crushed, cleaned of magnetic impurities in high intensity
magnetic separators and classified in to narrow size fractions to suit the end use. Dedicated lines
produce products for different applications.

WHITE FUSED ALUMINA

White Fused Alumina is a high purity. Synthetic mineral, manufactured by the fusion of
controlled quality pure grade Bayer Alumina in an electric are furnace at temperatures greater
than 2000°C followed by a slow solidification process. Strict control over quality of raw
materials fusion parameters ensures products of high purity and high whiteness. The cooled
crude is further crushed, cleaned of magnetic impurities in high intensity magnetic separators
and classified in to narrow size fractions to suit the end use. White fused alumina is highly
friable and hence used in vitrified. Bonded Allnasives products where cool, fast cutting action
is essential and also in the manufacture of high purity Alumina refractories. Other application
includes use in Coated Abrasives. Surface Treatment, Ceramic Tiles, Anti-skid Paints, Fluidized
Bed Furnaces and Skin /Dental Care.

FUSED MULLITE

Fused Mullite is manufactured by fusing a mixture of high purity Bayer Alumina and pure
Quartz in a tilting type are furnace at a temperature around 2000°c. Controlled cooling of the
molten mass ensures a high degree of mullitization characterized by well-defined columnar
crystals. The cooled crude is further crushed, cleaned of magnetic impurities in high intensity
magnetic separators and classified into desired size fractions. Fused mullite is one of the main
raw materials used by the refractory industry for applications requiring thermal shock resistance
and corrosion resistance.

FUSED PRODUCTS MACRO –SPECIALITY

SEMI FRIABLE ALUMINA

Semi Friable Alumina is low titanium containing brown corundum produced by control
smelting of special grade Bauxite in an electric are furnace above 2000°c. The lower titanium
gives an intermediate toughness between that of White and Brown. Regular corundum and strict
control of this parameter over a narrow band ensures consistent quality. The cooled crude is
further crushed, cleaned of magnetic impurities in high intensity magnetic separators and
classified into narrow size fractions. The grains are further annealed at intermediate
temperatures in a specially designed kiln to build predictable toughness centre wheels, cut off
wheels in surface and cylindrical Grinding of heat sensitive metals, alloys etc.

BLUE FIRED SEMI FRIABLE ALUMINA

Blue Fired Semi Friable Alumina is a low Titania containing brown corundum by controlled
smelting of special grade Bauxite in an electric are furnace at than 2000°c , the lower Titania
and an intermediate toughness between that of ‘White and Brown Regular corundum and strict
control of this parameter over a narrow band ensure consistent quality. The cooled crude id
further crushed, cleanses of magnetic impurities in high intensity magnetic separators and
classified into narrow size fractions. The grains are further annealed at a high temperature in a
specially designed kiln to build predictable toughness characterization. These grains are best
suited for use under extreme grinding conditions where high stock removal efficiency is
required .main uses are in metals especially alloyed steels, non-ferrous metals and alloys of
Copper and Zinc.

SINTERED ALUMINA

Azures are a Sintered Alumina abrasive grain. It is manufactured by our parented state – of –
the – art process through sol-gel technology. This grade of sintered alumina abrasive grain is
well known for its high performance and unique fracture characteristic. It performs better in
high pressure grinding application and withstands. It also provides cooler cutting and longer life
of the wheel. All these make this grain a unique choice for the abrasive manufactures.

FUSED ZIRCONIA

CUMI along with Foskor Zirconium Manufactures Fused Calcia Stabilized Zirconia material
for use in the manufacture of slide gate refractory’s used in the continuous casting of steel. A
mixture of high quality zirconium and lime is fused at a temperature greater than2400° c to
create a partially stabilized zirconium product. The cooled mass is crushed, cleaned of magnetic
impurities in high intensity magnetic separators and screened to desired size fractions. The
grains are thermally treated to ensure uniformity of stabilization.
MICRO POWDERS

SILICON CARBIDE

Silicon Carbide Micro Grits are produced by milling of selected and cleaned macro grain
feedstock. The milling and classification is done in CUMI’s state of the art milling and
classifying facilities which yields powders of tight distribution, consistent shape, high purity
and low dust levels. A safety screening of the powders is carried out to further ensure that the
grains are free of coarse particles.

BROWN FUSED ALUMINA

Brown Fused Alumina Micro Grits are produced by the grinding & classification of selected
Macro grain feed stock in an advanced milling and classifying facility. This ensures an iron free
product of narrow particle size distribution with a high repeatability. The sizes are controlled
and tested using x-ray sedimentation particle size analyzer and particle counter. The Brown
Fused Alumina Micro grits generally conform to the FEPA (Federation of European Producers
of Abrasives) specifications. JIS and other customer specific sizes can be supplied as required.

WHITE FUSED ALUMINA

White Fused Alumina Micro Grits are produced by the grinding & classification of selected
Macro grain feed stock in an advanced milling and classifying facility. This ensures an iron free
product of narrow particle size distribution and high whiteness.

The sizes are controlled and tested using x-ray sedimentation particle size analyzer and particle
counter. The White Fused Alumina Micro grits generally conform to the FEPA (Federation of
European Producers of Abrasives) specifications. JIS and other customer specific sizes can be
supplied as required.

3.8 HIGHLIGHTS OF THE COMPANY

1. Good production facility

 2. Good working atmosphere
3. Reputed brand name &image
4. Qualified &skilled labour
5. Environment friendly
6. Good industrial relations
7. Planning trees for environment care
8. Community initiatives
Caring for the community is integral to CUMI’s business philosophy. The company contributes
a certain percentage of its profit in every year to support community development activities in
the areas of health and education.

3.10 CORPORATE GOVERNANCE

Carborundum Universal Limited (“CUMI”), as a constituent of the Murugappa Group, is
committed to high standards of corporate governance in all its activities and processes. CUMI
looks at corporate governance as the cornerstone for all sustained superior financial
performance and for serving all the stakeholders. Apart from drawing from the various legal
provisions, the group practices are continuously benchmarked with industry practices.
Systematic attempt is made to ensure symmetry of information. The Board has
empowered responsible persons to its broad policies and guidelines and has set up adequate
review processes.

3.11 CUMI’S CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES IN

2017-2018
 The Eye camp for employees as well as their families.
 Sponsored for National level Volley ball tournament.
 Sponsored for State level Chess tournament.
 More than 20 employees donated blood on various locations for noble case.
 Distributed free tree sampling to all employees and planted tree samplings in the
schools.
ORGANIZATION STRUCTURE

SR VP

HR SBU HEAD

AVP GM TECHNOLOGY
HR PLANT HEAD
MGP

DY. MGR

HR ENGINEERING EXECUTIVE/
GRAINT SERVICES ASSOCIATE/
MGH-HR PLANT DGM TEAM
MEMBER
QUALITY
Team SHIPPING FURNACE
DY. MGR
Member DY MAG DY.MGR

STORES EXECUTIVES/ EXECUTIVES/ SYSTEMS

TEAM ASSOCIATES ASSOCIATES SR.ASSOCIATE
MEMBER
TEAM
MEMBER NET
TRAINEES OPERATORS OPERATORS ACCESS
/TECHNICAL /TECHNICAL TEAM
ASSISTANTS ASSISTANTS
/TECHNICAL /TECHNICAL
OPERATORS
TRAINRS TRAINRS
/TECHNICAL
ELECTRICAL ASSISTANTS
ENGINEER /TECHNICAL
TRAINRS

OPERATORS/TECHN
ICAL
ASSISTANTS/TECHN
ICAL TRAINRS
 CUMI is governed by the board of directors. Board includes Chairman Managing
Director and other Directors. The board has been constituted in a manner, which will result in
as appropriate mix of executive and independent directors. The Managing Director is the
operational head of the company supported by General Manager and Deputy General Managers
for different sections. Managers and Deputy Managers will assist the General Manager and
Deputy General Manager.

3.13 FUNCTIONAL DEPARTMENTS OF CUMI

CUMI – The public Ltd company works with the help and support from the different
departments. All departments work uniquely for the attainment of the organizational goal. The
performance of the different departments was amazing for the past several years that are the
reason why the company’s profit volume is increasing at higher rate. The head of each
department is assisted by Managers and Team members at different levels. Department heads
are directly liable to report to plant manager.
CUMI have totally 8 departments. They are as follows:-

 Production Department
 Human Resource Department
 Marketing Department
 Finance Department
 Quality Assurance Department
 Engineering and service department
 System Department
 Shipping Department

3.13.1PRODUCTION DEPARTMENT
The head of the production department is production manager. The installed capacity
of the plant is 8400 tons per annum. The production is dependent upon the market needs and the
production target is met and maintained. The production team looks after right from the
procurement part to finished part. Production manager is in charge of production department.

STRUCTURE OF PRODUCTION DEPARTMENT

GENERAL MANAGER MANUFACTUREING

MANAGER MANUFACTURING MANAGER MANUFACTURING

MICRO MACRO

SUPERVISOR SUPERVISOR

TEAM MEMBERS TEAM MEMBERS

OPERATIVES OPERATIVES

DUTIES AND RESPONSIBILITIES OF PRODUCTION MANAGER

 Fixing the parameters of production department.
 Responsible for solving problems relating to production.
 Optimization of production costs.
 Inspection of incoming materials.
 Preparing the production report on the day today basis
 Training newcomers on the process.
 Modification of production plans.
 SILICON CARBIDE is the major product produced in CUMI Ltd. Raw materials used is
Quartz and Raw Petroleum Coke. These two raw materials are furnished at a temperature of
220°c.
CUMI’s production plant may be two types, Furnace Plant and Micro Grit Plant (MGP).
The input using MGP plant is output of furnace plant. The MGP plant contains lot of
machineries. This machineries controls by inter linking high power computers. This computer
controls all the functions of the machineries. This computer also facilitates the online checking
of current processed product’s quality.

Production unit

Macro Grit Plant Micro Grit Plant

MACRO GRIT PLANT

1) Furnace plant
The raw materials of the production are quartz and coke. They are mixed along with
reclaim for making mix charge as per the mix card issued by QA. One charge should be nearly
4 tons. Likewise 20 mixes will be used to fill a furnace. Furnasing will continue for 48 hours.
After that it will be allowed for cooling. Cooled pig will be manually sledged to remove half
reacted crushed in jaw crusher and it will be send to GP for further crushing and grading.
2) Grain plant
 Crushing
 Macro grit is the crushing of silicon carbide through different crushing such as BAR
MAC, Raymond mill and other silicon carbide is crushed in to grains. Hence we derive powder
form of silicon carbide, macro grains.
 Magneting
During the process of crushing some iron particulars are attached with macro grit
which is then removed through high force magnets.
 Sizing
It is for grading the product. Different sizing machines are used with different
openings.
 Quality control check
Detailed chemical and physical analysis is done to determine the iron percentage,
silicon carbide, size, magnetic, imputation and bulk density.
 Bagging
All the grits are then bagged and send to Chennai for further production. They use
HDPE bags. Paper bag used for HDPE restricted countries.

MICRO GRIT PLANT

The input of micro grit plant is the end product of the macro plant. But in this plant the
grit are imported from Russia due to finer quality and economies available.
1) Jet Milling
Its operations refer to crushing using compressed air. This is an iron free grinding
process.
2) Air Classifier
With the help of air classifier product are graded
3) Quality Control Check
The chemical, size and quality of the product is checked and assured
4) Bagging
The end production is then packed for shipping
MANUFACTURING PROCESS OF SILICON CARBIDE
The basic raw material for abrasive that means Silicon Carbide is Quartz and Raw
Petroleum Coke (RPC). Quartz is procured from the mines owned by Carborundum situated in
the state of Gujarat. The raw petroleum coke is got from the state of Chennai. This raw material
is brought and stored.
The coke and quartz are mixed in a mixer according to the specification and brought
down to the electronic furnace and charged for 36 hours continuously. After the 36 hours of
heating the mixture heated is cooled down with help of water which is sprayed all over the
heated material for 8 hours and the end product is Silicon Carbide. The color Black or white is
got with the right kind of mixing.
This Silicon Carbide is known transferred to silo and then into intermediary tanks from
where it is taken to the primary crusher and then to fine crusher. This finally crushed Silicon
Carbide is then passed down and stored in intermediately tanks from where it is made to pass
through magnetic field. After this, the next process is sizing i.e. to separate in to different size.
To get fine grains even distribution is undertaken.

INPUT Electric
Sic Crude Jaw Crushing -
Resistance
Coke + Quartz Crushing Barmac
Furnace

PRODUCT Magnetic
Rotex/ Graders
Separator
Macro Grains
MATERIAL MOVEMENT AT CUMI

Based on production budget, the material department gives the purchasing order to the
supplier. The order contains the details regarding quantity, rate, payment terms, suppliers etc.
there is a specific schedule for quantity to be supplied. This will be based on production. If raw
material needed is more in any month, and then the schedule is amended.
The procured raw material is send to stores. The stores department prepares an inward
document which contains the details like inward document number, supplied quantity, type of
material etc. Quality assurance department sorts the material and send to stores department. A
good material movement provides smooth working condition inside the organization.

MATERIAL MOVEMENT FLOW CHART

MATERIAL

ORDER TO

RECEIVING

QUALITY

ACCEPTED

STORS

PRODUCTION
3.13.2 HUMAN RESOURCE DEPARTMENT

A good Human Resource Department is considered to be one of the greatest assets of

the company. HR department deals with the welfare of human beings working in an
organization. HR Department helps in holdings the individuals to attain maximum development.
In CUMI HR department is expected to formulate sound policies in employer-
employee relations. This is a service department, helpful to the management dealing with
matters relating to staff and workmen. Human resource planning is done with the business plan.
The company evaluates the HR requirements estimated by a serious of analysis.
The basic objective of this department is effective utilization of human resource,
desirable working relationship among all employees and maximum individual department. The
most appreciating feature of CUMI is its profound flexibility in communication between any
subordinate and superior. This contributes to a friendlier cooperating environment
CUMI has a group of very committed employees. CUMI has a group of very
committed employees. It has strength of 74 permanent employees, flexible employees 79, and
total employees 164.

STRUCTURE OF HR DEPARTMENT

SR VP

HR

AVP

HR

HR MGH-HR

Team Member
HR VALUES

 Concern for people

 Integrity
 Customer orientation
 Continuous improvement
 Executive excellence

HR FUNCTIONS

 Recruitment and selection

 Preparing appointment letters
 Arranging training and development programs for the employees
 Keeping all statutory obligations
 Collecting data from all other factories to enable them prepare details for long term
negotiation
 Informing the concerned department about the changes of factory rules and other related
acts.
 Maintaining strict discipline
 Running of canteen
 Keeping company compound
 Negation with union
 Controlling security staff
 Salary preparation for employees.
 Making attendance of the employees, pay and overtime.

DUTIES OF HR MANAGER
 Assisting for the smooth functioning of the organization.
 Ensuring better employer-employee relation, keeping up the morels, discipline etc.
 To advise management on various policy matters relating to labor force.
 To give proper orientation about the employee’s duties and functions.
RECRUITMENT & SELECTION
Recruitment and selection is based on integrity, competency and the ability to work in a
team. Company takes value fit individuals with group into consideration. Individuals are placed
under 1 year probation in which the superior accesses his/her abilities, teamwork, and
performance in pressure situations. But successful completion of probation does not imply on
assurance for permanent employment. Based on experience and qualification selection of
managers is done at the head office, Chennai. For CUMI, there is a specific procedure for
recruitment and selection.
The management gets people through campus recruitments, personal references etc.
Line managers are expected to prepare job description and job specification in respect of job to
be filled, HR department is expected to oversee and ensure proper compliance with statutory
and organizational recruitment and polices. The recruitment process is a three tiers method-
direct, indirect and third party. The sources of recruitment included both internal and external.
The internal source includes transfer and promotion, which is more preferred by the company.
The management chooses external source like campus recruitments, personal references etc.

TRAINING AND DEVELOPMENT

The need for training is determined by identifying the gap between present
performance of an employee and the desired performance. Awareness training or orientation
training is given to the new employees for a period of one week or one month. After this
training, orientation report will be collected from each department. ISO awareness training
classes are also conducted. Training and development is taken care by HR manager. Training
charges are born by the company itself.

PERFORMANCE APPRASIAL
The methods used in CUMI are supervisory rating and self-rating. Performance
appraisal for the managers is called Policy Deployment. This system is based on factors like
business result, quality system, total employee involvement, waste elimination and customer
satisfaction etc. In this system, the objectives of the GM will be the measure of his next
subordinate and this flow down accordingly until the final objective is attained. The
performance management system is based on the balance score card. The balance scorecard is
the culmination of the business plan and is the complete strategic indicators and thrust areas of
business. Appraisal for staffs consists of knowledge of methods and procedures, quality of
work, attendance and punctuality, resourcefulness, good manners, team spirit.

TRANSFER AND PROMOTION

CUMIs transfer is management staff from one department to another or one plant to
another; Suitability and merit with number of service years are the criteria for promotion.
Promotion policy has been drawn taking into consideration of performance and seniority.

BENEFITS & HUMAN RESOURSE DEVELOPMENT (HRD) ACTIVITIES

The company gives cardinal importance to HRD activities. Company follows a pre-
planned trained calendar covering all areas and the training is imparted with the help of various
institutions. Effectiveness of the training programs is periodically reviewed for further
improvement.

CUMI provided mainly following benefits to its employees:-

 Employees State Insurance (ESI)
 Provident Fund (PF)
 Gratuity
 Canteen
 Restroom
 Ventilation
 Safety Measures like Gloves, Boots Etc.
 Library
 Medical Facility
3.13.3 MARKETING DEPARTMENT

CUMI is facing lot of competition from the international market. Company’s survival
depends upon better marketing strategies adopted by the company. The products from China is
a major threat for the company because if it’s lower. But CUMI is not ready compromise with
the quality of its products for reducing their price. This marketing strategy wins the target.

STRUCTURE OF MARKETING DEPARTMENT

Area Manager

Regional Manager

Marketing manager

Office Staff

SALE

Ninety percentage of the sale is done through direct orders from the customers and 10 % is from
the dealers. Last year the company’s domestic sale was increased by 22% to Rs.626 crores from
Rs.512 crores.

MAJOR MARKETS

Australia, Philippines, China, Canada, India, European Countries

SALES PROMOTION
In the international market the sales promotion of the company is only through website.
In India all states have their own dealerships to the products. The company’s main product is
Silicon Carbide.
DISTRIBUTION

CUMI has no formal warehouse. They distribute their products directly to the consumers.

PRICING STRATEGY

In the domestic market the company sells products at premium price. However in the
export market the company facing great competition from the Chinese products so in this
market the company sells the products at economic price.

PROMOTION

Promotion is done using the broachers, brand name, technical journals and magazines,
yellow pages of the internet and relationship management.

COMPETITION

Price and quality are the major competition parameters in this industry. In the domestic
market, company divides the entire market into four regions i.e. north, west, south, east. Each
manager is being responsible for sales in the particular region. Last year, the company’s
domestic sale was around 42.35 crore. In the Indian market 35% of the share is from CUMI.
The main competitors of CUMI are Grained well Norton, Snam abrasives and Orient abrasive.

DUTIES AND RESPONSIBILITIES OF MARKETING MANAGER

 Presenting marketing strategy to the manager.
 Setting targets to managers reporting to him.
 Implementation of marketing plan.
 Arranging dealer meets.
 Preparation of MIS reports
MARKETING AND DISTRIBUTION PROCEDURES AT CUMI
CUMI initiated several steps taken for improve visibility and proximity to the consumer.
And they also provide to distribute its products to their consumers at reasonable time.
CUMI’s major initiatives in following direction
 A greater emphasis on branding by standardizing CUMI outlets across the country.
 Never delivery mechanisms such as automatic rending machines.
 Setting up experience Centre under the brand “CUMI World”.

3.13.4 FINANCE DEPARTMENT

The finance department deals with the procurement and management of funds. This
department controls the receipts and payments of each and every activity for all the divisions. In
CUMI, The finance department plays an important role. The finance department keeps record
of everything concerning or income.

STRUCTURE OF FINANCE DEPARTMENT

DEPUTY MANAGER

CASHIER

The main finance department branch is at Edappally. They does book keeping, accounting and
reporting functions. It undertakes the work of pay sheet preparation of staffs and workers,
payment of bills, vouchers and other financial transactions. It prepares trail balance, MIS and
audit report. The finance department uses Ramco Virtual Works.
All the major financial decisions are taken at corporate office (Chennai).The
corporate office provides funds for working capital requirements; Departmental budgeting is
also the function of accounts department. Duties of accounts assistant is cash transaction,
accounts payable, tax payments. Trial balance, capital expenditure are maintained by the
supervisor, responsibilities of the manager are making monthly report, auditing and fund
management etc.

FUNCTIONS OF FINANCE DEPARTMENT IN CUMI

The finance division mainly handles two sections:
1) Factory accounts
 Accounts payable
 Accounts receivable
 Sales
 Inventory
 Payroll
 Statutory payments
2) Stores accounts
 Material request
 Purchase request
 Purchase order
 Goods receipts note

OTHER FUNCTIONS
The following are the functions by finance department at CUMI:
 Budget & Budgetary control
 Management of receipts
 Management of payments
 Coordinating the Auditing function
 Costing
 Statutory transaction
 Keeping depreciation account
 Preparation of income and expenditure account
  Prepare management report
 Control of inventory items and mechanical spares
 Bank receipts and payment
 Bill processing
 FIFO method used to dispatch

1. BUDGET AND BUDGETARY CONTROL

The annual budget of the company is prepared both for the capital and revenue based
on the requirements furnished by various units and departments. The budget has reviewed year
basis. If some changes are occurred they are submitted to management through a revised for
approval.
2. MANAGEMENT OF RECEIPTS
Payments from dealers or customers are revised only through marketing department.
They will adopt proper receipts customer wise and dealer wise. There will be a debt outstanding
and it must be informed to marketing department once in month. Insurance, freight outward,
bank negotiation etc. are accounted and maintained to arrive at cost of sale.

3. MANAGEMENT OF PAYMENTS
Due to the availability of funds, payments commitments are honoured on the due
dates. All the payments are supported by approved vouchers. The advance payments are settled
with in a time of 45 days. Non receipts or delayed receipts extra is brought to the notice of store
for remedial action payment are usually done by cheque.
4. AUDITING
Internal audit mainly based on corporate functioning. The main function of
department is to ensure that policy decision of the management is strictly followed by the
functional department and is verified by the internal audit.
5. COSTING
Costing reports are maintained as per the cost accounting rules. Mainly costing
departments analyses cost of production on a yearly basis.
6. STATUTORY TRANSACTIONS
Sales tax, income tax, C-form, Form-18 etc. are issued they are properly accounted at
proper time settlements are made. Salaries and other payments, remittance and recovery etc. in
the case of employees are done in a time.
Finance department concentrates inflow and outflow of funds and it also ensures that
whether there is appropriate volume of funds needed for efficient business transactions. It also
takes great care in allocating the funds needed for efficient business transactions.

Duties and Responsibilities of Finance Manager

 Preparation of financial statement.
 Overall supervision of day to day financial functions of all departments.
 Preparing MIS reports.
 Internal audit functions.

BANKERS OF CUMI
1. State Bank of India
2. Federal Bank of India
3. Canara Bank
4. State Bank of Travancore

3.13.5 QUALITY ASSURANCE DEPARTMENT

The quality assurance department is headed by the Assistant manager Quality
assurance department. The department looks in to the quality of the raw material, whether it
meets the quality standards or not prescribed by the company. The quality check is also
conducted for the end product. The main function of quality assurance department is to guide
the production team in producing the right size product in right color according to the
prescribed standard of the raw material.
Quality is the performance of the product as committed by the producer. The
commitment can be either written or implicit. Quality is a strategic-marketing decision by the
company. CUMI have a good co-ordination along with the quality department and top-
management.
CUMI’s quality assurance department is equipped with all modern facilities. The
company has got a standards room for calibration of all measuring instruments. Fully
documented history cards of the measuring instruments are maintained so that periodical
calibration of equipment is carried out regularly.

CUMI-QUALITY POLICY
Total customer satisfaction through quality products and service with improved
technology and employee participation “We shall proactively meet customer expectation by
providing quality products and services”.
This will be achieved through the following quality things:
 Total commitment of the management in implementing an effective quality management
system.
 To continue technology development to fulfil the changing needs of the customer.
 Total employee involvement for continuous improvement.
 Enhancing employee competence through education and training.
 To building mutually beneficial relationship with suppliers.
SRUCTURE OF QUALITY ASSURANCE DEPARTMENT

QUALITY DY. MGR

TEAM MEMBER

OFFICE STAFFS

Raw materials supplied by the vendors are received stores department. At that
receiving time there occur only the quantities checking as per the order. This receipt the store
department hands over the components to the quality assurance department.
Quality is checked during-
 Raw material is taken for the production
 Mixing the raw material
 Furnacing
 Pig yard
 Crushing
 Before packing the final product
There are two laboratories in CUMI for checking the quality, they are:-
 Chemical lab
 Physical lab

DUTIES AND RESPONSIBILITIES OF QUALITY ASSURANCE MANAGER

 To venture in to and obtain quality certification by accredited agencies of repute.
 To retain ISO Certification by undergoing Quality Audits periodically.
 Develop and implement quality policy, update periodically and get them approved by
the board.
 To ensure that Quality Assurance budgets are not exceeded.
 Finished goods audit
 Packing material checking
 Customer complaints closures
 Reject cases, analyses the causes and report to the management.

CUMI’s quality assurance department collects finished product samples from the
production department for the final checking. The products are subjected to running tests for a
pre-determined duration and only those which pass the requirements are accepted and declared
ready for sale.
Quality Assurance thoroughly checks the components, to know these components have
all the specifications that needed for production. The ISO 9001: 2015 also certified CUMI’s
quality assurance procedures.
3.13.6 SYSTEM DEPARTMENT
CUMI have well-functioning systems department. System department is headed by
system manager. He directly reported to Manager of the company. The employees in this
department are professionally equipped.
The system department links all other department. It makes the communication easy. All
the computers of the company are connected through internet and all departments have their
services. The whole computers are connected through LAN.
A good system of connecting systems provides good internal communication. This
department facilitates a good MIS functions. It helps to reducing the distance between different
departments. CUMI’s system department is preparing software for the company.

STRUCTURE OF SYSTEMS DEPARTMENT

SYSTEMS SR.ASSOCIATE

NET ACCESS TEAM

TYPES OF SERVER
Exchange server for mail transcription. Front-end server is based on Chennai and the
backend in CUMI, Edappally, and internet connectivity is broad band-1 mbps SIFI is the
network provider. Types of operating system used by the company are windows XP, windows
7, windows professional.
Ramco Virtual works, a Chennai based software company provides ERP solution the company
uses ERP it provides:
 Integrated market information
 Better handling of raw materials
 Better process control
 Reduce the time and cost
  To record the details of HR
 Integrated financial information
The company’s entire work, raw materials to marketing of finished good is influenced
by the ERP. If any department is facing any problems, that information will spread to the entire
organization and then the concerned person or department will approach and solve that problem
within the shortest period.

SECURITY SYSTEM
 Norton 12.1 that act as an anti-virus
 Fort guard-this blocks the unwanted websites

DUTIES AND RESPONSIBILITIES OF SYSTEM MANAGER

 In charge of various systems in the company.
 To ensure that all system are operational at optimum levels.
 To be in search of latest technologies/development for system improved.
 To get the sanction for new capital investment.

3.13.7 SHIPPING DEPARTMENT

Arrangement of movement of material marketing material is not undertaken here. This
department also maintains stock of finished goods.

3 TYPES OF DISPATCHES

 Captives dispatch (Branch transfer)

 Domestic Sale (with India)
 Exports

FUNCTIONS OF SHIPPING DEPARTMENT

 Customer interaction, customer visits, quotation preparation and submission undertaken

by marketing department
  Order receipt and order acknowledgement onwards entails responsibility of shipping
department
 Transporters are employed as they absorb liability in relation to vehicles and drivers
 Invoice, gate pass, declaration in 8f and lorry receipt are to be maintained for domestic
sale
 The transportation of domestic and captive sale is arranged by shipping department as
per customer authorized transporter
 For export CUMI arranges containers for house stuffing at koratty plant as per the
supervision of central excise officer
 Stuffing report, commercial invoice are maintained for export.

STRUCTURE OF SHIPPING DEPARTMENT

SHIPPING

DY. MGR

TRAINEES

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

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

MAIN CUSTOMERS
The main customers industries of CUMI are:

 Automobile industry
 General metal cutting industry
 Polishing of metal surfaces
 Marine paints etc.

BRANDING

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

 Consistent high quality and reliability

 Fair pricing practices and transparency
 Relationship management
 Customized product variants

3.13.8 ENGINEERING AND SERVICE DEPARTMENT

STRUCTURE OF ENGINEERING DEPARTMENT

ENGINEERING SERVICES DGM

ELECTRICAL ENGINEER

OPERATORS/TECHNICAL
ASSISTANTS/TECHNICAL TRAINRS

FUNCTIONS OF DEPARTMENT
The main functions of this department are:
 Repairing works
 Cleaning works.
 Oiling the machines
  Maintenance according to the needs
There are 3 main divisions in engineering department, they are:

Engineering Department

Mechanical & Electrical Division Stores Division

Maintenance

3.13.8. 1 MECHANICAL & MAINTENANCE DEPARTMENT

Mechanical &Maintenance department looks after all the machine and mechanical
breakdown. The main responsibility is to ensure that avoid the chance to occur break down in
the production process.
The maintenance works are classified in to two:
1. Preventive Maintenance
2. Break down maintenance
3. Predictive Maintenance

 PREVENTIVE MAINTENANCE
As we know the famous proverb, “Prevention is better than cure “.CUMI believes in this
proverb. As per this every Sunday maintenance operatives will inspect and does the
maintenance work in the whole plant. They identify some critical machines and inspect them.
Preventive maintenance is the periodic or overall and scheduled replacement of parts is due at
regular intervals. It courses reduction in other down time the consequent loss.

 BREAKDOWN MAINTENANCE
 If any break down occurs, the concerned department will sent a complaint to the
maintenance department with the help of personal computer (ERP System Ramco
No-3).Then maintenance department head issues a work order depending on the manpower
available. They will try to rectify the root cause of the break down and bring the machine to the
production process. Break down maintenance are the maintenance which is taken at the time of
unwelcome break are in or show down occurs.

 PREDICTIVE MAINTENANCE
It means predicting the chance of complaints of machines and repair machines. Predictive
maintenance helps to avoid sudden breakdown of machine. The main objective of this
department is repairing works and cleaning works. To facilitate options use of capital
requirement through replacements repair curve and modification of components and ensure the
availability of the entire production operation system.

3.13.8.2 ELECTRICAL DEPARTMENT

Electrical department supplies and controls electric power to whole the company.
They ensure continuous power supply to the furnace and look after all electrical maintenance.
The main important component of production process is electricity. So the maintenance and
supply of electricity is very important.
. CUMI have a good electrical department. The Kerala State Electricity Board
(KSEB) supplies electricity to the company. There may be a good relation between KSEB
employees and company staffs. CUMI have two way connection facilities. The main connection
coming from the Chalakkudy substation and another one at Kalamassary. This two way facility
helps by the company any power failure from any substations the company take electricity from
other substation. CUMI have a hydro power station at Maniyar. Kerala’s first private hydro
power station was owned by CUMI.
The KSEB officers advanced information taken over to the company any possibility of
power cut. This process helps to avoid the extra idle time. The electricity power is the back
bone of the company. The Electrical department plays an important role in the company.
Electricity is the back bone of the company and so electricity plays an important role. The plant
consumes 110000 units of electricity per day.
3.13.8.3 STORES DIVISION
This department also controls the stores department. This department controls
following functions of stores department.
 Responsible for purchase of mechanical spares.
 Periodical reporting.
 Up keeping and saving the materials.
 To be responsible for item wise accounting and controls of various inventory items.
 Receipt of goods & issue receipt note
 Issue of purchase order
 CHAPTER-4
FINANCIAL ANALYSIS
 CHAPTER -4
FINANCIAL ANALYSIS
Financial analysis is one of the most common tools of managerial decision making. It involves
the comparison of various figures from the financial statements in order to gain information
about the company’s performance. It is the interpretation, rather than the calculation, that makes
financial ratio a useful tool for business managers. Ratio may serve as indicators, clues or red
flags regarding noteworthy relationships between variables used to measure the firm’s
performance in terms of profitability, assets utilization, liquidity, and leverage or market
valuation.
Ratio is relationships expressed in mathematical terms between figures which are connected
with each other in some manner. Ratio is called ‘accounting ratio’ or financial ratio’ is used to
describe significant relationship between figures shown on a balance sheet, in a profit & loss
account, in a budgetary control system or in any part of accounting organization. In other words,
accounting ratios is a quantitative relationship between two or more items of the financial
statements connected with each other. Arithmetically ratio is a comparison of the numerator
with the denominator.
Financial analysis
Ratio analysis is also helpful to recluses, in addition to shareholders, debenture holders, and
creditors. Besides, bankers are also able to know the profitability of the company to find out
whether they are able to pay the dividend and interest under a specific period.
Performance analysis
Ratio analysis is also helpful in analyzing the performance of a company through financial
analysis; companies can review their performance in the past years. This is also helpful in
identifying their weakness and improving them.

4.1 CLASSIFICATION OF RATIOS

The ratios can be broadly classified into
Profitability Ratios
Turnover Ratios
 Year Current assets Current liability Ratio (%)
Solvency Ratios
4.1.1 PROFIATABILITY RATIOS
Profitability ratios measure a company’s ability to generate earnings relative to sales, assets and
equity. These ratios assess the ability of a company to generate earnings, profits and cash flow
relative to relative some metric, often the amount of money invested. They highlight how
effectively the profitability of company is being managed.
A common profitability ratio include
Net Profit Ratio
Gross Profit Ratio
Operating Profit Ratio
Operating ratio
Return on capital employed
Earnings per share

All of these ratios indicate how well a company is performing at generating profit or revenues
relative to certain metric. Different profitability ratio provides different useful insight into the
financial health and performance of a company. For most of these ratios, a higher value means
that the company is doing well and it is good at generating profits, revenues and cash flows.
Profitability ratios give meaningful information only when they are analyzed in comparison to
competitors or compared to the ratios in previous periods. Therefore, trend analysis is required
to draw meaningful conclusion about the profitability of a company.

PROFITABILITY RATIO
Gross profit ratio
This ratio is also called as “gross margin” or “trading margin” ratio. It indicates the difference
between sales and direct cost. Gross profit ratio explains the relationship between gross profit
and net sales.
Gross profit ratio = Gross profit/Net sales*100
 2007-2008 1371.84 5830.10 23.53
2008-2009 860.80 6519.00 13.204
2009-2010 841.70 7310.10 11.514
2010-2011 2580.32 15531.75 16.613
2011-2012 3226.99 19949.98 16.175
2012-2013 1519.35 19714.05 7.706

It shows that table 1 Gross profit Ratio during the year 2007-2008 is 23.53,in the year 2008-
2009 Gross profit ratio was decreased is 13.204, in the year 2009-2010the Gross profit ratio was
decreased is 11.514,in the year 2010-2011 Gross profit ratio was increased is 16.613,in the year
2011-2012 Gross profit ratio was decreased is 16.175, in the year 2012-2013 Gross profit ratio
was decreased is 7.706.It is found from the study that, the majority (23.53) proprietary ratio is
more in the year 2007-2008.

4.1.2 TURNOVER RATIOS

The turnover ratio may be called efficiency ratio and also activity ratios. These ratios, thus, may
be called the told of projecting the relationship between sales and assets that have been acquired
by the firm in connection with the activities under discussion planned for the purpose of earning
revenues. This ratio will take different shapes on the basis of considering as components of
calculation. The reason behind such different appearance of ratios is that different business may
be required to employ different type of assets. A few examples of such ratios are
Inventory turnover Ratio
Working Capital turnover Ratio
Debtor Turnover Ratio
Creditor turnover Ratio
Fixed Assets Turnover Ratio
4.1.3 SOLVENCY RATIOS
Solvency ratios ability of the business is to repay its outside liabilities. These liabilities
categorized as short term liabilities and long-term liabilities. Solvency ratio has been used to
mean long term financial position of the business. It is an accepted financial truth that the
company must have sufficient long-term funds to meet its long-term liabilities. Long-term funds
include long term loans and shareholders’ funds. Solvency ratio also measures the relationship
between external and internal equities. It’s important objective is to ascertain the capability to
honor long-term obligation, such as repayment of loans and enters there on Under this ratio
Debt-equity Ratio
Proprietary Ratio
Current ratio
Liquidity Ratio
4.1.3.1 Current Ratio
The ratio of current assets to current liabilities is called “current ratio”. Current ratio indicates
the ability of a concern to meet its current obligations as and when they due are payment.
Current ratio = Current asset/current liability
Year Current assets Current liability Ratio (%)
2007-2008 2438.14 1030.90 2.365
2008-2009 3038.32 1106.18 2.746
2009-2010 2853.08 1246.51 2.288
2010-2011 7096.06 2274.64 3.119
2011-2012 9825.68 4837.24 2.031
2012-2013 9507.5 5223.61 1.820

The table 1 reveals that the current ratio of Carborundum universal limited. In the year 2007-
2008 the current ratio is 2.365, in the year 2008-2009 the current ratio was increased is 2.746, in
the year 2009-2010 the current ratio was decreased 2.288, in the year 2010-2011 the current
ratio was increased is 3.119, in the year 2011-2012 the current ratio was decreased 2.031, in the
year 2012-2013 the current ratio was decreased is 1.820.It is understand that the majority
(3.119) of the current assets ratio in the year 2010-2011.
4.1.3.2 Proprietary Ratio
Proprietary ratio is the ratio of shareholders’ funds to total assets. It is also called as “Net worth
to total assets” ratio. It serves as a measure of long-term solvency ratio. Higher proprietary
ratios indicate that sound financial positions and low proprietary ratio indicate that weak
financial positions of the, CUMI.
Proprietary Ratio = Shareholders’ funds/ Total Tangible Assets
Year Current assets Current liability Ratio (%)
2007-2008 3518.75 7842.30 0.448
2008-2009 3908.56 8862.69 0.441
2009-2010 4288.64 8788.8 0.487
2010-2011 7455.41 14053.34 0.530
2011-2012 9470.21 16663.68 0.568
2012-2013 10591.52 18062.54 0.586
It shows that table 2 Proprietary Ratio during the year 2007-2008 is 0.448,in the year 2008-2009
proprietary ratio was decreased is 0.441, in the year 2009-2010the proprietary ratio was
increased is 0.487,in the year 2010-2011proprietory ratio was increased is 0.530,in the year
2011-2012 proprietary ratio was increased is 0.568, in the year 2012-2013 proprietary ratio was
increased is 0.586.It is found from the study that, the majority (0.586) proprietary ratio is more
in the year 2012-2013.

OVERALL PERFORMANCE OF THE COMPANY

The financial performance provides the detailed information about the firm’s financial activities
which reflects the liquidity, activity, profitability and efficiency of the concern in the field of
finance. The study on Financial Performance was undertaken with the primary objective to
assess the company’s financial position, operational efficiency and the market value of the firm.
In fine, financial position of Carborundum Universal Limited Hosur is in progressive
satisfactory. The company has every opportunity to get its growth to a good and extent in future.
 CHAPTER -5
TECHNOLOGY ADOPTION
 CHAPTER-5
TECHNOLOGY ADOPTION

Innovation

Innovation is the fuel of success for the current markets and engine of growth for future
opportunities. At CUMI, Innovation lies at the core of the way we do our business. Our
employees take pride in instrumenting changes and bringing customer delight through both
process and product innovations. Patents and IPs in the form of papers and journal submissions
are a testimony to our relentless pursuit for innovation.

The recognition at the CII Industrial awards 2015 and launch of an array of new products like
rubberized ceramic for vehicle armor applications, varieties in shaft sleeves, zirconia lance
nozzles, mini mats for pyro jet burner applications/food applications, CUMI Tuff 90SP,
Ceramic cone and grooved cylinders etc. are testimonials for our quest for technological
advances. We relentlessly pursue value addition and differentiation through performance
enhanced materials to meet demanding customer needs and to open up new market space.

At CUMI, we constantly explore joint project opportunities with our other business units to
improve efficiencies. CUMI’s innovation strategy, founded on the three boxes of Innovation –
managing the present, selectively abandoning the past and creating the future – is set to create
value for the organization.

R&D Labs

We are a company with a very strong focus on R&D. We have a healthy mix of in-house R&D
projects and collaborative R&D projects with external partners. This has been further intensified
with the investment in a new state-of-the-art R&D that was opened in August 2016. Another
focus area for us is the collaborative R&D with other divisions of CUMI (like Abrasives,
Refractories and Electro-minerals) and also with other companies in the Murugappa Group.

The R&D houses several equipment for important ceramic material and product
characterization. We have organized our equipment into material characterization, advanced
material micro-structure characterization, and advanced dilatometer (DIL) for precise profiling
of dimensional changes for a given temperature range.

For the purpose of particle and granulate size characterization, we use equipment like
Serigraphs and also Laser-diffraction based particle size analyzer. We also have BET – Surface
Area analyzer for measurement of Specific Surface Area. We extensively use the NETZSCH
Dilatometer during the process of material and product development.

In addition, each of CUMI’s R&D uses complementary facilities available in other R&D’s of
CUMI’s Business units.

New Product development

In recent years, R&D has helped in develop and commercialize several new products. We
launched our CUMITHERM range of products for use in Thermal applications – these include
aluminum titanate products for use in non-ferrous applications and magnesia stabilized zirconia
products for use in steel metallurgy. In addition, the R&D has also developed and
commercialized products like metallized ceramics for high vacuum semiconductor applications.
In the category of Wear Resistant ceramics, again several new offerings have been developed
and commercialized, like ceramic lined rubber hoses for dredging applications, special wear
coatings, etc.

While the above are examples of our R&D having developed products for the immediate and
medium-term market needs, a considerable amount of time is also spent on the R&D on
futuristic projects like metal matrix composites, medical ceramics, thin film metallization on
ceramics, ceramic substrates, and the like.
 CHAPTER-6
SWOT ANALYSIS
 CHAPTER- 6
SWOT ANALYSIS
SWOT analysis is a useful technique for understanding the company’s strength,
Weaknesses and for identifying both the opportunities opens to the company and the threats
faced by the company. What makes SWOT particularly powerful is that, with a little thought, it
can help to overcome opportunities that are well placed to exploit and by understanding the
weaknesses of the business, we can manage and eliminate threats that would otherwise catch
unawares. More than this, using the SWOT framework, we can start to craft a strategy that helps
to distinguish the company from its competitors, so that they company can compete successfully
in the market. Strength and weaknesses in SWOT analysis are internal factors; Opportunities
and Threats are external factors.

SWOT analysis on CUMI UNIVERSAL LTD.

STRENGTH

 CUMI is dominating the market

 Reputing brand name & image

 High Quality Product

 Qualified, Experienced & Skilled manpower

 Good industrial and employer-employee relations

 CUMI provides value for money to customers through their better Quality products.

 Good Marketing network

 Country wide sales & Service networks

 Good, uninterrupted & Continuous vendors

 ISO Certification & CSR activities

WEAKNESS OF CUMI
 Strong influence of trade union

 Small type of dust pollution

 Limited Technology

 International competition

 Raw materials coming from outside Kerala increases the cost

OPPORTUNITIES FOR CUMI

 Export possibilities increasing

 Due to good brand name CUMI can extend the market

 Good scope for new mechanisms and technology

 More mines have to be found out

 New acquisitions to increases global presence

THREATS OF CUMI
 High competition from International market

 Whether problem

 CUMI faces stiff competition from world majors and local players

 High cost of operation

 Influence of Govt. policies

 Power and other equipment are expensive

 The demand for abrasives has fallen down because of industrial and economy slowdown
CHAPTER- 7
FINDINGS
 CHAPTER-7
FINDINGS

7.1 FINDINGS

 CUMI has a good organizational structure and a good management system.

 CUMI provides better working conditions to Workers (Human Resource department).

 CUMI has good Growth possibilities.

 CUMI has experienced employees (Human Resource department).

 CUMI has monopolistic nature in Kerala.

 CUMI is fully utilizing men, material and machinery.

 CUMI provides all the welfare activities to its employees & maintains good relation
with public.

 CUMI is having effective incentive system (Human Resource department).

 CUMI has a good brand name and the products are having high quality

 CUMI has good marketing network

 CUMI has adequate storage facilities (Storage department).

 Company has good team of management and technical staff.

 Company has good brand quality (Marketing department).

 Company provide satisfactory wages to employees (Human resource department).

 CUMI has given adequate personal proactive equipment’s to the workers.

CHAPTER- 8

SUGGESTIONS
8.1 SUGGESTIONS & RECOMENTATIONS

 Diversification of products and services is essential for success (Marketing department).

 Introduce advanced technology for production (Production department).

 Counselling facility should be provided to employees (Human resource department).

 Give more importance for the postures and pictures about safety precautions inside the
plant (Human resource management).

 Pollution problems must be handled in a better way.

 Company should take all possible measure to improve the interest of workers in their
jobs, at the same time management should take strict actions against unauthorized
absentees and misbehaviours (Human resource department).

 To allot more money for CSR activities (Human resource department).

 Proper appraisal system should be adopted (Human resource department).

 Increase plant capacity for meeting additional demand of product (Production

department).
 CHAPTER-9
LEARNING EXPERIENCE
9.1 LEARNING EXPERIENCE

The organizational study at CUMI, Nalukettu and Koratty is a humble effort to

understand and comprehend about the organization. The organizational is intended to access
and to acquire the knowledge regarding the functional as well as the management aspects of the
firm. An effort has been made to analyses the various functional areas of management; the
information collected this report is of majorly of secondary data and primary data of observation
and interactions with the departmental heads and supervisors.

CUMI has several distinct advantages in terms of its strong brand image, rich product
knowledge, wide market reach efficient logistics management, economics of scale and
backward integration to counter competition. In partial fulfillment of the MBA program, I had
undergone 30 days internship training at CARBORUNDUM UNIVERSAL LTD.

This study is highly successful in achieving its objectives. The main objective of the
study is to know about the organization’s activities, structure, strategy, products .etc. As per the
objective of the study data’s are collected from the organization and internet. Then the collected
data are analyzed and made interpretations. The findings of the study will help the organization
to improving their activities. This report lights through the area that need improvement.
Detailed study of this report will help the firm to formulate various policies and programs
 CHAPTER-10
CONCLUSION, BIBLIOGRAPHY, ANNEXURE
 CHAPTER-10
CONCLUSION

The organization study at Carborundum Universal Ltd, Koratty is a humble effort to

understand and comprehend about the organization. The organization is intended to access and
to acquire the knowledge regarding the functional as well as the management aspects of the
firm. An effort has been made to analysis the various functional areas of management; the
information collected this report is of majority of secondary data and primary data of
observation and interactions with the department heads and supervisors.

CUMI has several distinct advantages in term of its strong brand image, rich product
knowledge; wide market reaches efficient logistics management, economics of scale and
backward integration to counter competition. In partial fulfilment of the MBA programme, I
had undergone 30 days internship training at CARBORUNDUM UNIVERSAL LTD. This
study is highly successful in achieving its objectives. The main objective of the study is to know
about the organization’s activities, structure, strategy and products etc. As per the objective of
the study data’s collected from the organization and internet. Then the collected data are
analysed and made interpretations. This report lights through the area that need improvement.
Detailed study of this report will help the firm to formulate various policies and programs.
 BIBLIOGRAPHY

BOOKS

 Human Resource Management- Snell and Bohlander 14th edition, published by South
Western 2010
 Korthari C.R. Research methodology, methods and techniques-2nd Revised Edition New
Age International Publishers, New Delhi 2011.
 Jayachandran S Marketing Management. Excel Books. New DELHI 2004.
 Pandey I.M Financial Management. 10th Edition. Vikas Publishing House, Pvt, Ltd. New
Delhi, 1990.
 Kolter Philip, Marketing management. Hall of India Pvt. Ltd. New Delhi. 1997aw Hill
Publishing Co. Ltd. New Delhi.
 Aswathappa K. Human Resource Management. Tata McGraw Hill Publishing Co. Ltd.
New Delhi 1999

WEBSITES

 http://www.cumi-murugappa.com/emd
 www.cumi.murugappa.com
 www.electromineralindustry.com
ANNEXURE