A SUMMER TRAINING PROJECT

AT
J.K. FENNER INDIA PRIVATE LIMITED, KOCAHADAI,
MADURAI
Submitted in partial fulfillment of the requirements for the award of the

Degree of

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

A. RINO

REG No: P18BA25466

UNDER THE GUIDANCE OF

DR.A. DURAIKANNAN M.B.A., M.Phil., Ph.D., PGDCA., MTP., (IIMB)

Assistant Professor in Department of Business Administration

DEPARTMENT OF BUSINESS ADMINISTRATION

SRI MEENAKSHI GOVERNMENT ARTS COLLEGE FOR WOMEN (A)
(An Autonomous Institution to Madurai Kamaraj University)
(Accredited with ‘A’ Grade by NAAC)

MADURAI – 625 002

 DEPARTMENT OF BUSINESS ADMINISTRATION

SRI MEENAKSHI GOVERNMENT ARTS COLLEGE FOR WOMEN (A)

MADURAI – 2
CERTIFICATE

This is to certify that this summer training project is a bonafide record of work done by A.
RINO (REG NO: P18BA25466) submitted in partial fulfillment of the requirement for
the degree of Masters of Business Administration (MBA) from Sri Meenakshi Government
Arts College for Women (A), affiliated to Madurai Kamaraj University.

DR.S. RAJARAJESWARI M.B.A., M.Phil., Ph.D. DR.A. DURAIKANNAN M.B.A., M.Phil., Ph.D.

HEAD OF THE DEPARTMENT FACULTY GUIDE

Submitted for the Viva – Voce examination held of …………………………………

Signature of the External Examiner

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 DEPARTMENT OF BUSINESS ADMINISTRATION

SRI MEENAKSHI GOVERNMENT ARTS COLLEGE FOR WOMEN (A)

MADURAI – 2
DECLARATION

I hereby declare that A Summer Training Project at J.K.Fenner PVT LTD, submitted for
award of the degree of Masters in Business Administration is my original work and no part
of this report has been submitted fully of partially for other recognition earlier.

DATE: Signature of the student

PLACE: MADURAI (A RINO)

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 ACKNOWLEDGEMENT

First and foremost, my sincere gratitude to my parents also for standing with me throughout
the degree period who encouraged me emotionally

I thank the almighty God, who has been with me in every aspect of life.

I would like to express my heartful thanks to J.K. Fenner India Pvt Ltd, for giving me
this opportunity to do the summer training in their organization.

My faithful thanks to DR.S.VANATHI., M.Sc., M.Phil., Ph.D., Principal, Sri Meenakshi

Government Arts College for Women (A) Madurai, for permitting to do this field work.

My grateful thanks to DR.S. RAJARAJESWARI M.B.A., M.Phil., Ph.D. Head of the

department of Business Administration, my faculty guide DR.A. DURAIKANNAN M.B.A.,
M.Phil., Ph.D Sri Meenakshi Government Arts College for Women (A) Madurai, for
continuous encouragement and value guidance right from the beginning to end.

My grateful thanks to all faculty members in department of Business Administration in Sri

Meenakshi Government Arts College for Women (A) Madurai.

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 CONTENTS

CHAPTER PARTICULARS PAGE NUMBER

INTRODUCTION
I 1.1 ABOUT INTERNSHIP 6
1.2 IMPORTANCE OF INTERNSHIP
1.3 SCOPE OF INTERNSHIP
1.4 OBJECTIVES OF INTERNSHIP
INDUSTRY PROFILE
II 2.1 HISTORY AND GROWTH OF RUBBER 10
INDUSTRY
3.1 COMPANY PROFILE
III 3.2 OBJECTIVES 13-16

FUNCTIONAL DEPARTMENTS
IV 4.1 HUMAN RESOURCE DEPARTMENT 17-51
4.2 FINANCE DEPARTMENT 30
4.3 PRODUCTION DEPARTMENT
4.4 SALES CO-ORDINATION DEPARTMENT
4.5 PURCHASE DEPARTMENT
TRAINING EXPOSURE
V 5.2 SWOT ANALYSIS 53-57

VI CONCLUSION 59

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1. INTRODUCTION

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CHAPTER – 1
INTRODUCTION

1.1 ABOUT INTERNSHIP

An internship is a method of on-the-job training for professional careers. Internships for professional
careers are similar to apprenticeships for trade and vocational jobs. Although interns are typically college
or university students, Internships may be paid or unpaid, and are usually understood to be temporary
positions. Generally, an internship consists of an exchange of services for experience between the student
and an organization. Students can also use an internship to determine if they have an interest in a particular
career, create a network of contacts, or gain school credit. Some interns find permanent, paid employment
with the organizations with which they interned. This can be a significant benefit to the employer as
experienced interns often need little or no training when they begin regular employment. Unlike
a trainee program, however, employment at the completion of an internship is not guaranteed. Internships
exist in a wide variety of industries and settings. A typical internship lasts 6–12 weeks, but can be shorter
or longer, depending on the organization involved.

1.2 IMPORTANCE OF INTERNSHIP

Provides Experience & Knowledge

Classroom studies are confined only to books and theoretical learning. Application of these theories and
lectures delivered in classrooms differ a little from the set format. Through internship, we get not only get
a first-hand experience of these theories, but also learn the applications of these theories in real challenges.
Also, the company exposure allows us to enhance their knowledge and contribute it to the company in
their specialized fields.

Improves Skills
Several skills and tasks are necessary to accomplish a job effectively and efficiently. These skills
are imparted to us during this tenure as an intern. It exposes us to skills, such as oral and written

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communication, presentation, leadership, planning, time, and project management. No matter how simple
or difficult the task is, we are taught to take up the challenge and polish their skills to prove ourselves to
the employers.

Boosts Self-Confidence
Doing an internship is a great learning experience in itself. The entire journey of internship allows
us to identify the strengths and weaknesses, and use both of them to the best advantage of our job and
company. This real-life experience allows us to judge ourselves to where we stand and identify the abilities
of completing the given tasks. All in all, undergoing an intensive internship program boosts the self-
confidence and motivates towards facing big opportunities in future.

New Career Opportunities

Internship is the first ladder to success. Doing an internship in a specialized field helps to build
up a good network. When a student enters a company, he is not regarded as an intern (despite being one),
but as an employee who will give his best to the company. Further, if the intern is successful in proving
himself worthy for the company, he may just land up getting a permanent position in the same company
after completing the internship program.

Real Corporate Feel

Another major advantage of doing an internship is working in the real corporate environment to
experience the workplace atmosphere as great opportunities to utilize the time and knowledge to gain
understanding and experience and make the most out of it in terms of converting it into a prospective
career.

1.3 SCOPE OF INTERNSHIP

• Provides an opportunity to learn about career interests.
• Provides exposure to the working world.
• Provides opportunity to utilize the talents and skills
• Helps to have an internal change based on the requirement of the organization

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 • Equips with the essential skills and provides training and experience in work.
• Provides an opportunity to get employed.

1.4 OBJECTIVES OF INTERNSHIP

• To test the interest in a particular career before permanent commitments are made.
• To learn beyond the walls of the traditional classroom.
• To learn more about public relations by examining it from a practitioner’s perspective.
• To develop skills in the application of theory to practical work situations.
• To aid students in adjusting from college to full-time employment.
• To develop attitudes conducive to effective interpersonal relationships.
• To increase a student's sense of responsibility.
• To acquire good work habits.
• To develop employment records/references that will enhance employment opportunities.
• To acquire in-depth knowledge of the formal functional activities of a participating organization.
• To understand informal organizational interrelationships.
• To engage in experiential learning while developing knowledge, skills and awareness of the
complexity of issues in the organization.

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2. INDUSTRY PROFILE

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CHAPTER – 2
INDUSTRY PROFILE
2.1 HISTORY AND GROWTH OF RUBBER INDUSTRY

The World Production of rubber was considered to be very unstable during the last few years.
Comparatively, India’s production of rubber is consistent at the rate of 6% per annum. The Indian rubber
industry has been growing in strength and important. This is the result of India’s burgeoning role in the
global economy, India is the world’s largest producers and third largest consumer of natural rubber.
Moreover, India is also one of the fastest growing economies globally. These factors along with high
growth of automobiles production and the presence of large and medium industries have led to the growth
of rubber industry in India.

• India is the third largest producers of rubber in the world.

• It is the fourth largest consumer of natural rubber.
• It is the fifth largest consumer of natural rubber and synthetic rubber together in the world.
• India is the world’s largest manufacturer of reclaim rubber.
• India and china are the only two countries in the world which have the capacity to consumer
the entire indigenous production of natural rubber.

RUBBER CONSUMPTION IN INDIA

Automobile tyre sector 50 %

Bicycle tyres and tubes 15%

Foot wear 12%

Belts and hoses 6%

Camel back and latex products 7%

Other products 10%

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CHARACTERISTICS OF INDIAN RUBBER INDUSTRY

The following are the special characteristics of the rubber industry in the country, which make
India a little different from many of the other natural rubber producing countries:

• India is a major producer and consumer of natural rubber.

• The rubber products manufacturing industry in India had been mostly inward oriented, catering
to the domestic market.
• In recent years India has entered the global market exporting both raw natural rubber as well as
rubber products.
• With its large population base, India is emerging as a large market for rubber products and with
the opening up of the economy, import of rubber products has also been increasing in recent years.
• The rubber product mix in India is based mostly on dry forms of rubber, dictated by the
requirements of the domestic market.
• The natural rubber / synthetic rubber consumption ratio in the country is presently 75:25.
• While the Indian tyre companies have been performing well, multinational tyre manufacturers are
establishing production facilities in India.
• Manufacture of non-tyre products particularly high-value technical goods needs further
investments

2.2 PRESENT SCENARIO OF INDIAN RUBBER MARKET

India’s rubber production varies between 6 and 7 lakh tons annually which amounts to RS.3000
crores. Seventy percentage of the total rubber production in Indian is in the form of ribbed smoked sheet
(RSS). This is also imported by India accounting for 45% of the total import of rubber. The Indian rubber
industry has a turnover of RS.12000 Crores. Most of the rubber production is consumed by the tyre
industry which is almost 52% of the total production of India. Among the states, Kerala is the leading
consumer of rubber, followed by Punjab and Maharashtra. The exports of Indian natural rubber have
increased tremendously over the years and have reached 76000 tons in 2003-2004.

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 Though, India is one of the leading producers of rubber but it still imports
rubber from other countries. At present, India is importing around 50000 tons of rubber annually.

FACTORS CONTRIBUTING TO THE GROWTH

Like most of the producing countries, natural rubber production in India was solely export
oriented during the first quarter of the 20th century. However, sustained growth of the rubber product
manufacturing industry was evident since the mid 1930s. Historically, the commercial impetus for this
growth revolved around three inter-related developments: (1) the implementation of the International
Rubber Regulation Agreement (IRRA) in 1934 and the consequent domestic availability
of NR at a lower price in India, (2) the entry of foreign companies in rubber product manufacture to
capitalize the advantages arising from cheaper raw material and labour and a growing domestic market
and (3) government patronage to the industry in the backdrop of the increased industrial requirements
during the inter-war years
and the second world war period. The post-war period witnessed a steady expansion of the
industry. But the bulk of the consumption of rubber was accounted for by a few large units.
But small scale units also could survive because of the relative profitability of rubber product
manufacture and the extent of protection from external competition.

Government patronage to the industry resulted in liberalized import of rubber and other raw
materials and protection from imports of rubber products. The net result was the graduation of India from
an exporter of raw natural rubber to a net importer of the rubber and an exporter of finished rubber goods,
although in a limited manner, by the late 1940s.
At present, there are over 4300 manufacturing units, including 58 tyre factories, turning out
products worth US$ 7.7 billion, which is about 1.7% of the total industrial output of the country. The total
employment generation by the rubber product manufacturing industry is 465,000. The natural rubber /
synthetic rubber consumption ratio is 75:25, while globally the ratio stands at 44:56. The per capita
consumption of rubber remaining at 1.0 kg, the market for 2rubber products in India, with its large
population, is likely to grow significantly in the years ahead.

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3. COMPANY PROFILE

Page . 14
CHAPTER – 3
OVERVIEW OF THE ORGANIZATION

3.1 COMPANY PROFILE

ABOUT THE COMPANY

Fenner (India) Limited is the largest manufacturer of industrial and automotive V-belts, Oil
seals and power transmission accessories in India with a large sales and distribution network across the
country and a strong brand image, Fenner (India) Limited is undoubtedly the market leader in India.
Fenner (India) Ltd emphasis on quality and customer’s satisfaction has earned respect and
endorsement from major OEMs. The Company is a pioneer and has been a market leader both in terms of
new product development and market research. Fenner (India) Ltd has regularly introduced state of the
art latest products both for domestic and international markets. Today eight out of ten automobiles in India
have at least one Fenner belt or oil seal in it.
Apart from being the domestic market leader, Fenner (India) Ltd is also one of the big
exporters of V-belts and Auto belts in the country with product being exported to over 40 countries
including north and South America, Europe, Australia and South Africa.

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Board of Directors
Chairman : Raghupathi Singania
H.V. Lodha
Surendhra Mathora
L.R.Puri
Harshpati Singhania
L.Ram Kumar

HISTORY
A Journey started 50 years back a long and momentous journey punctuated with epic achievements and
break through. Right from the very first day to the present the motto has been the relentless pursuit to
“Achieve Customers Delight”. Fenner (India) Ltd has witnessed consistent growth and achievements 50
years full of innovation, expansion and leadership. Fenner (India) Ltd trail blazing performance evolves
from its philosophy of excellence and customer satisfaction.

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ORIGIN AND GROWTH

In 1929,J.K Fenner (India) Ltd was established in Calcutta as a trading company for selling of products
imported from Fenner, UK. Fenner (India) ltd, originally incorporated as Fenner, cockill Limited on 15th
July 1955,was prompted by J.H Fenner @co. ltd., and Madura Mills company limited with A&F Harvely
Ltd as their Managing agents.
The company commenced production in 1955 with fat transmission Belting and later introduced Industrial
and Auto V-Belts, conveyor belting and oil seals.
The company achieved substantial expansion in the year 1973, and the same year J.K.Fenner &co., (India)
ltd., Calcutta a trading company of V-Belts and power transmission belts was amalgamated with the
company. In 1975, the company name was changed to Fenner (India) Ltd., and by 1979 the foreign
equality holding was reduced to 35%.
In 1983, the company established material handling division for carrying on the business of designing and
supplying of baggage handling and industrial material handling system.
The company had been making good profits till the early 80’s from 1980, competition in the ‘V-Belt’ area
increased substantially. Fenner has identified the need to create and accelerating organization that changes
continually and skillfully .Always in alignment with our vision “where we want to be” by landing ways
to keep changing and improving.
In 1987, the J.K.Group acquired share held by Madura coats limited and took management control of the
company. The holding of J.K.Group and associates is 39.87% and that of Fenner international ltd is
30.07%.As a measure of diversification the company took over a 12,840 spindles cotton yarn spindles
spinning unit near karur in Tamilnadu.
The strengthened out derive through nightly focused action towards cost reduction, rationalization of work
force and productivity improvement, the company turned around in 1988. In 1992 the company entered
in the field of textile. In 1995, it took over another textile near Salem having 21,872 spindles. The
capabilities were further expanded to 36,636 spindles.
The company ventured into wind mill power generated in 1994,and installed wind electronic generators
in kanyakumari district and currently, the company are having 27 winds electrical, these wind mills have

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helped in supply of electricity of two companies, manufacturing operations of polymer and textile business
at Tamilnadu at competitive cost.
Currently the company is a leader in almost all its product areas. In ‘V-Belts it has the highest market
share selling more belts. Competitors put together in the last few years with a major thrust of research and
development the company has been able to launch more& more innovative products.

3.2 OBJECTIVES

• Fenner (India) Ltd sustain by the belief that perfection can be improved with proactive internal
culture and by introducing new ideas.
• It has consistency delivered front line solution standard of productivity of quality, the company
has achieved big presence in the global market place, ensuring reliable brand value.
• Improving performance in the development of product and reduce lead time.
• Achieve zero customer complaint status.
• Constantly upgrade and continuously improve operating system to enhance both internal and
external customers

VISION
To sustain and enhance leadership status and enlarge business scope to worldwide markets,
through a cohesive and committed management team that diligently plans, deploys the resources at hand
towards the stated objective.

MISSION
Emphasize profitable growth by sustained delivery of superior products/services/solutions to
worldwide customers.

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3.3 ORGANIZATION STRUCTURE

MANAGING DIRECTOR

GENERAL MANAGER

HEAD OF THE HEAD OF THE HEAD OF THE HEAD OF THE HEAD OF THE
DEPARTMENT
•
DEPARTMENT DEPARTMENT
PRODUCTION
DEPARTMENT
R &D
DEPARTMENT
PURCHASE
HR FINANCE

DEPUTY SENIOR DEPUTY SENIOR DEPUTY

MANAGER ACCOUNTANT MANAGER MANAGER MANAGER

ASSISTANT ACCOUNTS SUPERVISOR REPORTING SUPERVISOR

MANAGER ASSISTANT MANAGER

SUBORDINATES SUBORDIATES
SENIOR OFFICER RESEARCH
TEAM

ASSISTANT HEAD OF THE

OFFICER DEPARTMENT
FINISHED
PRODUCTS
STORE
JUNIOR
OFFICER
DEPUTY
MANAGER

SUPERVISOR

SUB
ORDINATES

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PRODUCTS
• Timing Belts.
• Oil Seals.
• V-Belts.
• Poly V –Belts.
• Power Flex Belts

BRANDS IN INDIA
• Power Flex
• Eco drive
• Power Train
• Pioneer
• Fenner Multi-Poll

INTERNATIONAL BRANDS

• TOP DRIVE.
• TOP DRIVE ENDURANCE PLUS.
• TOP DRIVE COG POWER.

CUSTOMERS
PRODUCTS DOMESTIC INTERNATIONAL CUSTOMERS
S.NO CUSTOMER
S
Automotive Tata, Hyundai, Toyota , Wyco
1 Products Hero Honda,
TVS, Bajaj,
Ashok Leyland
Industrial Tata steel, Wyco (U.K), Chairvalli (Italy), Roelointos (Spain),
2 Products Saint Gobain Motion Industries(Australia).

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4. FUNCTIONAL DEPARTMENTS

Page . 21
CHAPTER – 4
FUNCTIONAL DEPARTMENTS

Fenner (India) Limited have various functional departments as follows

o Finance department
o Human Resource
o Operation/Production
o Purchase
o Rubber Mill
o Engineering
o Power Flex
o Poly-V
o Export-V
o FP stores (Finished product stores)
o Timing Belts
o Accounts
o IT (Information Technology)
o Sales & Distribution
o R&D (Research and Development)
o Quality Control Department

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4.1 HUMAN RESOURCE DEPARTMENT
HR POLICY:

• Fenner (India) Ltd feels that our people are the value adding differentiators and primary
source of our competitiveness.
• The company strives to be a preferred place of work, where people are inspired to be the
best they can.
• Fenner (India) Ltd able to attract the best talent, ensures n transparency, fairness and
equality in all its dealings with employees.
• Fenner (India) Ltd ensures work life balance by team work, nurturing talent and enhancing
leadership capability in employees.

EMPLOYEE DETAILS

NO.OF EMPLOYEE TYPES OF EMPLOYEE

1678 PERMANENT
237 VARISU
459 TRAINEE
350 CASUAL

Shift Allowance

There are 3 shifts in this company

• 1st shift -8.am to 4.pm

• 2nd shift-4.pm to 12.pm
• 3rd shift-12.pm to 8.am

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Office Timing
The working hour for the office and administration staff is from 8.am to 5.pm.

Leave Allocation
The annual sick allowed for permanent employee is two days and privilege leave is
formulated once in a year.

Permission
Permission allowed minimum 30 minutes for each employer. If two times per month
which minimum and maximum of one hour .Incentive allowed to who are not taken leave and permission.

STRUCTURE OF HR DEPARTMENT

Senior Manager

Deputy General Manager

Assistant Manager

Senior Officer

Officer

Assistants

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FUNCTIONS OF HR DEPARTMENT

• Recruitment and Selection

• Payroll Analysis
• Grievance Handling
• Training and Development
• Performance Analysis
• Health and Safety Control

RECRUITMENT
SOURCES OF RECRUITMENT

Main sources include

• Internal reference.
• Newspaper advertisement.
• Applications also obtained through NAUKRI.Com

RECRUITMENT AND SELECTION PROCESS:

The company is receiving many applications from outsiders daily and also from existing
employee referrals and the company is selecting the employee based on some qualifications according to
the job requirements. The following process of recruitment and selection followed in Fenner India limited.

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 HRP

Receiving and screening of Applications

Short listing the candidates

Interview

Selection

Medical examination

Placement

Orientation

Allocation of department

INDUCTION

Induction is also called orientation is designed to provide a new employee with the
information he or she needs to function comfortably and effectively in the organization. It is a planned
introduction of new hires to their hobs, their peers and the company.

Typically, orientation conveys three types of information.

• General information about the daily work routine;

• A review of the firm’s history, founding fathers, objectives, operations and products or services,
as well as how the employee’s job contributes to the organization’s needs.
• A detailed presentation, in a brochure of the organization’s policies, work rules and employee
benefits.

TRAINING AND DEVELOPMENT

The company provides the training to the new employee’s. They provide training to the
existing employee’s regarding the new method and technologies. The training period to the new
employee’s is maximum of two months.

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 • Identifying the business goals.
• Preparation of annual training budget.
• Specification recommendation by head of the department.
• Training need identification.
• Preparation of training program.
• Training cost analysis.

Training and development program

Fenner (India) Ltd believes that there is no end to learning .Training and development
programs are ongoing process. All management staff are exposed to different training programs both
technical and staff development.
Fenner (India) Ltd have designed programs to cover their entire workforce in batches to lead them to
involve in the growth and development of the organization.
Managers who are identified for senior position are sent to management institutes like ASCI,
IIM AND training establishment to equip themselves with the latest techniques in modern management
concepts and practices.

Training Methodology
1. Basics of training need identification:
 Attitude.
 Skill.
 Knowledge.

2. Need based training to meet the present and future challenges

 Behavioral.
 Technical.

3. Find out the effectiveness for continuous improvement.

4. Re-Assessment of employees.

PAYROLL
In Fenner (India) Ltd, HR looks after the functions of payroll. These functions included preparation of the
salary based on the attendance of the employees, which is given by the time office .The functions of time

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office is noticing the time in and time out of the employees by punching the hole in the attendance card
.Closing day of the attendance in the time office is 20th of every month and remaining 10 days the HR
department will assume that all the employees were worked except on Sundays.

FRINGE BENEFITS

The fringe benefits provided in Fenner (India) Ltd are classified as follows

• Medical Facilities
• Educational Facilities

MEDICAL FACILITIES

• For workers there are two health care centers. They are provided free medical facility for
workers, spouse and children. But the children should not be more than 22 years.
• For management employees can claim half of the amount, which they have spent for their
treatment by providing medical bill to the top management.

EDUCATIONAL FACILITIES

• Fenner (India) Ltd had a tie up with Tamilnadu Polytechnic College. Every year they are
providing 3 DME seats and 4 polymer technology to the employee’s children and also further
allowances are provided to them.

MOTIVATIONAL FACTOR

• Work experience awards

• 25 Years Award
• 35 Years Award
• 40 Years Award
• No Absenteeism Awards
• Best suggestion or Idea Awards

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 • Publishing Photos of Newly Marriage couple in the company Magazine
• On Birthday, Wishing the Employee with Greeting & Chocolates
• Yearly bonuses
• Best performer is motivated with giving gift voucher or cash prize.

PERFORMANCE APPRAISAL SYSTEM

• It is transparent system .Initially goals are set for the president of the company.
• Once in six months the activities are going on in order to find out how they performing to
achieve their target.
• If their performance is not up to the mark then the reason is found out and they are trained to
complete the allotted.
• At the end of the year annual appraisal is done and based on the individual performance weight
age is given in the next year’s increment.

CRITERIA FOR PERFORMANCE MANAGEMENT AWARD

• Employee involvement
• Quality of man resources
• Employee satisfaction and motivation
• Industrial relation
• Talent management
• Innovative or unique HR practices
• Quarterly people management award review
• Enhancing external HR brand value

HEALTH, SAFETY AND WELFARE MEASURES

The need for providing welfare activities for the workers broadly received attention in us

Page . 29
country in the early stages of industrialization. Employers were not generally to accept the financial
burden on account of welfare activities. The Government intervenes using its persuasive and Legislative
powers. The Factories Act 1948, provided for some amenities in respect if general as “such services
arrangement for travel to and from place of work and for the accommodation of workers employed at a
distance from their houses, and such other services and facilities as contribute to improve the conditions
under which workers are employed. Welfare work is differing from social work.

THE ENTIRE RANGE OF WELFARE ACTIVITIES IS DIVIDED INTO TWO GROUPS

1. Welfare and amenities within the predicts of the establishment via

• Rest room and shelters for taking rest.
• Drinking water
• Canteens
• Medical aid
• Uniforms and protective clothing
• The shift allowance
2. Welfare outside the establishment
• Housing facilities
• Education
• Recreation facilities including sports, cultural library and reading room activities.
• Medical facilities
• Holiday homes and leave travel facilities
• Workers co-operative including consumer stores
• Transport from the place of work
• Maternity benefits and enevolent funds

SAFETY
Safety is an important management responsibility in industry. To ensure the safety and
health of workers in a business enterprise, managers establish a focus on safety that can include elements
such as:

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 • Management leadership commitment
• Employee engagement
• Accountability
• Safety programs, policies and plans.
• Safety processes, procedures, and practices.
• Safety programs audits.
• Safety goals and objectives
• Safety inspection for workplace hazards
• Safety training and metrics
• Hazard identification and control
• Safety committees to promote employee involvement

SAFETY COMMITTEE
It consists of representatives from management and the workmen.

• Management Representative-3
• Workmen’s Representative-3
• Company Doctor-1

ACTIVITIES OF THE COMMITTEE

• Evaluate the monthly accident.

• Analysis of the accident and preventive measure.
• Check and improve the lighting and ventilation.

OTHER ACTIVITIES /CO ORDINATION OF SAFETY OFFICER

• Accident report to inspector of factories.

• To ensure reduction of health problem through usage of safety appliances, exhaust machines
periodical medical checkup.
• Testing pressure vessels.

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 • Testing hoists, good lift etc.

GRIEVANCE HANDLING PROCEDURE

If any grievances occur, the HR manager along with the respective HOD carefully listens
to the problem of an individual and tries to solve it. They mostly adopt WIN-WIN policy so that grievance
will not turned as a dispute. If the problem was not solved then the individual will take the problem to the
higher authority, if not the problem will be taken to the labour office then DCL, JCL and finally it will be
taken to the labour court.

RELATION WITH TRADE UNIONS

The company’s relationship with trade union is 100% cordial. There is only union in the company. The
union existing in the company is an internal union and there is political inference in the union.

Other Major Activities of HR Department

1) Integrated Management System

a) Coordination with all departments.

b) System up gradation.
c) Document preparation.
d) Auditing arrangement

2) Medical Meeting

a) Once in a quarter
b) Health related issues.
c) In presence of doctor, head of the department and safety officer.

3) Reliving formalities

a) Issuing relieving order

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 b) Service certificate
c) Final settlement
4) Counseling through internal and external counselor.
5) Travel rules.
6) Medical scheme.
7) Employee referral scheme.
8) Talent management.

CORPORATE SOCIAL RESPONSIBILITY

• Eye camps.
• Assistance to hospitals.
• Surplus food from canteen to an orphanage.
• Upkeep and maintenance of social forestry in front of factory.
• Environmental friendly effluent treatment plant.
• Donations to build schools, orphanages and other organizations.
• Activation of “Fenner Auto-signalling” system and water foundation at traffic junction near
kalavasal.
• Adult literacy project.
• 8 centres.
• 240 beneficions.

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4.2 FINANCE DEPARTMENT

OBJECTIVE
Maintenance and Reporting of accounts related functions according to statutory regulations and
advice on reduction of expenses.

DEPARTMENT CHART

FINANCIAL MANAGEMENT

Cash management Tax Costing

FUNCTIONS

• Preparation of budget and all matters relating to financial requirements

• Management of funds
• Liaison with bank
• Inventory
• Cost control concept
• Tax calculation

ACCOUNTS MAINTENANCE

Computerized records are maintained by company and also integrated with each other department
inside the organization, the accounts are maintained using the packages in Excel and Tally.

Page . 34
BUDGETING

Based on the past 3-year trend, budget is prepared, cost incurred for past 3 years is calculated,
and sales are calculated. After that, actual is compared with the budgeted and deviation is identified and
report is sent to the U.K head office.

INVESTMENT POLICY
In Fenner (India) Ltd, investment is made in fixed deposit –short term deposit.

FIXED DEPOSIT SCHEME AT FENNER

The fixed deposit programme of Fenner (India) Ltd is open for renewal and fresh investment.
The one-year interest rate is quite attractive. The company's fundamentals have also remained strong. An
investment up to one year can be considered. Beyond that, however, it can be avoided as the incremental
returns are not large enough to warrant a long exposure.

Scheme and features

Fenner (India) Ltd offers the non-cumulative fixed deposit scheme only. The rates are
compounded at quarterly rests and paid at quarterly intervals. The interest rates are 7.50 per cent for one
year, 7.75 per cent for two years and 8 per cent for three years. Since the interest is compounded at
quarterly rests, the effective yields for the same are 7.71 per cent for one year, 8.3 per cent for two years
and 8.94 per cent for three years. The minimum deposit for the scheme is Rs 20,000 and, thereafter, in
multiples of Rs 5,000.

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NORMS OF FENNER’S FIXED DEPOSIT

According to the norms of RBI, FENNER (India) Limited is providing 35% (10% to shareholder
and 25% to the company). The fixed deposit is calculated by share capital, reserves and surplus of the
firm. The debentures are detected from the reserves and surplus before interest is calculated. It is
calculated once in a year. Interest warrants are encashable at par at specified branches of IDBI Bank. The
minimum amount of deposit is Rs.5000.The additional amount are payable in multiples of Rs.1000. The
interest rate is calculated by Fenner (India) Ltd is given in below tabular column:

TERM DEPOSIT (NON-CUMULATIVE)

PERIOD RATE OF INTEREST/ANNUM

1 year 9.00%

2 year 9.25%

3 year 9.50%

The interest is calculated once in a quarter, that is once in four months and payable quarterly

on 31st March, 30th June, 30th September, 31st December and on maturity.

Reasons for not using Cumulative Term Deposits in Fenner (India) Ltd

• To minimize the total outflow at the time of Repayment

• Mode of calculation will be simple
• Liabilities are not accumulated
• Easy handling of deposits

Page . 36
 BOARD RESOLUTION TO ACCEPT DEPOSITS

Text of advertisement approved by the board

Filing the text advertisement to R.O.C

Release of advertisement in English daily and vernacular daily

Issue of application

Acceptance of deposits

Issue of FD receipts

Payment of receipts

Repayment / Renewal / Premature withdrawal

Maintenance of statutory registers

Deduction of tax at source

Filing of TDS Return

Issue of TDS Certificates

Filing of Return of Deposits

Page . 37
OTHER HIGHLIGHTS OF THE SCHEMES

❖ Payment should be made by means of an ‘A/C Payee Cheque / Bank Draft’ to any of the
Offices of the Company or offices of the authorized Agents or Brokers.
❖ Outstation depositors may deduct the demand draft charges while remitting their deposit
amount by way of demand draft payable at Madurai or at places where Company’s offices
are situated.

APPLICATIONS

Deposits are acceptable on Application Forms prescribed by the Company containing

detailed terms and conditions available at the office of the company mentioned herein and with the
following authorized Agents:
1) M/s. Bajaj Capital Limited.
2) M/s. Eastern Financers Limited.
3) M/s. Ganesh Financial Consultancy services.
4) M/s Integrated Enterprises (India) Limited.
5) M/s J.M Financial Services Pvt Limited.
6) Karvy Stock Broking Limited.
7) Bluechip Corporate Investment Centre Limited.
8) Om Spectrum Financial Consultants Pvt limited.
9) India Infoline.Com Distribution Co Limited.
10) Cholamandalam Distribution Co Limited.
11) Upendra Dalal & co.
12) Enam Securities Pvt Ltd.

Page . 38
RULES FOR APPLICATION

• The cheque or demand draft should be payable to FENNER (India) Ltd., and crossed “Account
Payee”. Outstation applicants may remit the Deposit either by way of Cheque or Demand Draft
at Madurai or at the Company’s aforesaid Offices. Those who remit the Demand Draft may
deduct DD charges while remitting their deposit.
• No deposit will be accepted from Indian Companies, non-resident or foreign nationals and
OCBs.
• If the deposit is in the name of Minor, the Guardian must attest or sign the Application Form.
The interest and principal would be payable to the Guardian whose signature is given in
Application Form.

RENEWAL/REPAYMENT OF DEPOSIT
• The Deposit shall be payable only on or after the due date indicated on the Fixed Deposit
Receipt. The payment of principal and interest will be made by warrants payable at par at
branches of IDBI Bank.
• No further intimation or notice regarding maturity of Deposit will be given to the depositor.
The Deposit Receipt in original duly discharged on requisite revenue stamp by the first named
depositor should be sent only to the Registered Office of the Company at Madurai at least
15days in advance of the date of maturity for repayment/renewal of the deposit amount.
Renewal will be considered on the fresh application form.
• The Company may at its sole discretion permit the depositor to withdraw the deposit amount
prior to maturity. For the purpose of such premature payments, the interest will be allowed at
the rate applicable subject to deductions in terms of the provisions of the Companies
(Acceptance of Deposits) Rules 1975, as amended from time to time.

Page . 39
TAX RATES
The CENVAT is around 12%. Input tax credit shall be allowed for the purchase of goods
made within the state from a registered dealer for the purpose of
• Resale within the state

• Input for manufacturing or processing of goods in the state

• Use of containers, labels and other materials for packing of goods in the state

• Inter-state trade

• Agency transaction as prescribed

For the rubber products the tax rate fixed was 12% and it may change every year based on the
budget prepared by the finance minister. The tax policies are based on the central sales tax act. The tax
has to be paid properly if not it will be recorded as an offence and the officers responsible are punishable.
The company have separate officers to maintain and deal with the central and the sales tax.

INCOME TAX
Based on the return, income tax is calculated and once in 3months tax is paid and report is
prepared and sent it to the Fenner (India) Ltd head office, U.K.

MONTHLY SALES TAX

Due to sale of conveyor belts 3% of sales tax is calculated and paid to the government. This
amount is collected from the customer and paid to the government.

COSTING
Maintenance of costing is the very important factor in Fenner (India) Ltd, raw material cost, input-
output ratio, overheads-direct and indirect costing information’s are entered in the system based on that
budgeting is done.

Page . 40
4.3 PRODUCTION DEPARTMENT
In Fenner (India) Ltd, production department produces the goods under intermittent production
system .They have adapted zero inventories to avoid keeping goods under stock. The products produced
under Fenner are automotive products. The major products produced here are Oil seals, V-belts, Timing
belts, Power flex.
The raw materials required to produce these products are Neoprene GRT, Neoprene WRT, SBR
1502, N-3980 Nital Rubber, N 3345, AR71 Rubber, Viton, Silicone 6140, ISNR Rubber, Polyester flock.
The production undergoes for three shifts. They have got ISO 14001 certification for quality standards.

MATERIALS HANDLING EQUIPMENT

The equipment used for handling materials is FORK LIFT. It is of different capacity such as 1
tone, 2 tones etc.

BEST MANUFACTURING PRATICES

The defects of producing products are getting reduced by means of adapting SIX sigma
concepts under production. They have also adopted Five “S” concepts for maintaining their organization
and also practicing TQM for maintaining their quality level.

MAINTAINENANCE

In Fenner (India) Ltd they are practicing both preventive and breakdown maintenance since the
production runs throughout the day. Every Sunday they allow the engineers to verify conditions of the
machineries in order to maintain the machines properly.

Page . 41
PRODUCTION POLICY

1.To demonstrate and maintain leadership in design development manufacturing and supply of
engineering rubber products.
2. To continually improve to quality and reliability of products by consistently adhering to quality
management system.
3. To enhance delight in terms of quality cost, delivery and expatiations.
4. To improve employee, Satisfaction, Safety and environment friendliness.
5. To be in front line- to in the business by upgradation based on technological capabilities.
Best Manufacturing practices followed by Fenner (India) ltd:
Lean manufacturing
TQM (Total Quality Management)
TPM (Total Productive Management)
Poka Yoke (Error Proof)
They are working hard to avoid the seven type of production losses such as value loss,
processing loss, accuracy loss, timing loss, idling loss, communication loss and cost loss.

Page . 42
PRODUCTION PROCESS

It deals with the production of V-Belts under the category of automotive belts .The following
are the process involved in the production of V-Belts.

Bias cutting and sandwiching

Building

Pot curing

Cooling

Stripping

Cutting

Side grinding

Inspection

Coding

Dyeing and arrival

Page . 43
BIAS CUTTING
It involves 2 processes

➢ First process includes cutting of rubber sheet in 650mm.

➢ Second process includes pasting of rubber sheet (which has been cut in fist
process) into another rubber sheet in order to make rubber sheet stronger.

Page . 44
BUILDING

It is the process of putting different materials together. In this stage the workers will
build 3 materials together by way of using an appropriate mould.

It involves 3 processes.

• First process comprises of pasting the label(which consist of material code and company’s
name) in the rubber sheet and rolled on
• Second process comprises of rubber sheet is then rolled on with the help of cord(which is a
thick thread like substance)
• In third process a material called Jacket is rolled above the cord. The output from the building
process is termed as “Sleeve”

CURING

In this stage the sleeve along with the mould will be heated at a specific temperature in
order to merge the material with the mould.

• The inner pressure of heating is 80˚c

• The outer pressure of heating is from 150˚c-180˚c

Page . 45
COOLING
In this stage the sleeve along with the mould which is heated will move on to the next stage
of cooling. Cooling is done for 5 minutes in order to make the sleeve and mould flexible.

STRIPPING
Stripping is the process which is done in order to separate the mould from the sleeve.

Page . 46
CUTTING
Cutting plays vital role in belt manufacturing .cutting can be classified in two types.

1) Reverse cutting _

Angle may differ from 26˚c-40˚c

2) Forward cutting_

Page . 47
Power flex have two types of cutting machines
1) Scholz cutting machine:
It is an automatic cutting machine. It has an advantage of low waste generation. It has a variety
of mondrel for different angle belts. It is faster than Japan cutting machine. It includes high cost which is
the main disadvantage of this machine.

2) Japan cutting
It is a semi automatic machine. This machine incurs low cost is the main advantage. A huge
amount of machine is general from this machine. Its work is to cut the belts from the sleeve. It contains
two shape knives. One knife is to cut the waste and another one is to cut the belt.

SIDE GRINDING

Side grinding is the process for smoothening the edges of the belt after cutting is done. It is
done in order to manufacture belts which are completely flat and even, without any rough areas.

INSPECTION

Inspection is done in order to check whether the finished belt (product) is having any lumps,
holes, over cording etc.

Page . 48
CODING

Coding is done in order to check the length of the finished belt by way of using two pulleys
in varying sizes. At the stage the belt which will be fitted according to the fixed length it will move on the
relevant process. The belt which will not match the criteria, it will be rejected and termed as waste. It will
come under product waste.

DYEING AND ARRIVAL

In this stage the finished belt is sinked into a black colour solution in order to make the
appearance of the belt more attractive (black).

RAW EDGE COGGED BELTS

FEATURES

• Longer better life

• Better Battery charging
• Increased Engine Power
• Superior Engine cooling and zero slippage belt

Page . 49
TIMING BELTS
FEATURES
• Accurate speed ratio.
• Compact design, light weight.
• Quick easy fitting.
• Economical.
• No belt slippage.
• Noise free, corrosion free.
• Maintenance free.
• No lubrications

The main objective at the time of production was

• Zero accident
• Zero breakdown
• Zero Complaint
• Zero Defect

The regular customers of Fenner products are Maruti, Ford, TVS motors, Bajaj auto, Daewoo motors,
Royal Enfield motors, Ashok Leyland, Toyota, Eicher motors, Swaraj Mazda, Indian railways etc

Page . 50
4.4 SALES CO-ORDINATION DEPARTMENT
PROCESS

Customer order

Analyzing the order

Instruction from Sales

dept to production dept

Purchase of Raw material

Raw material to Production

Finished goods to Sales dept

Sales dept to customers

Sales co-ordination department plays an important role in Fenner (India) Ltd. The sales
co-ordination department mainly handles the order placed by the customers. Based on the customer’s
order the sales co-ordination department will instruct the purchase department to purchase the raw
materials.
Before the raw materials reach the purchase department, the quality of raw materials was inspected by
the gate office. Then the raw materials are move towards production department. After the arrival of raw
materials the production department, manufactures the required product based on the order placed by the
sales department. Until the products get delivered to the customers it will be in the store under the control
of sales co-ordination department.

Page . 51
QUALITY CONTROL

Fenner (India) Ltd has been awarded with the below quality certification:

• ISO 9001:2000 (for Design and Manufacturing of V Belts for Industrial Appls).
• ISO/TS 16949:2002 (for “and” of V Belts, Timing Belts, Oil Seals and Moulded rubber Parts for
Automotive applications).
• API (American Petroleum Institute) First and one and only company Accredited with this
certification.
• ISO 14001:1996 (Environmental Management System Standard)
• OHSAS 18001 (Occupational health safety assessment).
• TPM (Total Productive Maintenance) approved by JAPAN UNIVERSITY. The above
certification fix’s the standard for the quality of the production so the quality is being maintained
& retained.

VARIOUS TYPES OF TESTING

• Product testing
• Safety testing
• Drum friction testing
• Laboratory flame testing
• Gallery fire testing
• Electrical resistance testing
• Tear Strength testing
• Dynamic testing

Page . 52
4.5 PURCHASE DEPARTMENT

INTRODUCTION

The initiative functioning of the purchase department is with the indents from the stores department
normally, purchase department maintains the supplies list of purchasing of items. Stores department
receives indent from the department. Then the stores department checks the supplies list for supply of
requested items. Then the quotations are invited from various suppliers. After receiving quotations from
various suppliers it will be processed and checked against convenience efficiency rate and conditions for
the comparative statements based on pre- defined for favorable conditions a supplier is selected. Supplier
purchase order consist of various information like list and delivery schedule with the terms and conditions
a copy of purchase order is sending to and account department also include generation of remainder note
to suppliers for every non-delivered good after the delivery date is expired. The goods received is verified
against goods inwards note (GIN) generated by stores department any generation or modification is
quality rate and others.

IMPORTANCE OF PURCHASE DEPARTMENT

Purchasing refers to a business or organization attempting to acquire goods or services to accomplish
the goals of the enterprise. Though there are several organizations that attempt to set standards in the
purchasing process, processes can vary greatly between organizations.
Typically the word “purchasing” is not used interchangeably with the word “procurement”, since
procurement typically includes expediting, Supplier quality, and Traffic and Logistics (T&L) in addition
to purchasing.

Page . 53
PURCHASING PROCESS

Product requirement
(i.e.) raw material
↓
Select vendor
↓
Test product
↓
Get quotation
↓
Negotiate discount
↓
Place order
↓
Follow up
↓
Material to production

PURCHASE REQUISITION

For manufacturing process production department send purchase requisition

slip to the purchase department, items needed for production is specified in the requisition slip and it is
sent to the purchase department.

SELECTION OF SUPPLIER

After receiving the purchase requisition from production department they will
prepare the quotation and they receive various quotations from different sellers. According to low price
with good quality supplying supplier is selected and order is placed to them sample of material is received
from the supplier before purchasing the material.

Page . 54
EXISTING VENDORS

Vendors are supplying various items are treated as approved vendors on the basis of their
past performance in supplying the respective items.

SELECTION OF NEW VENDORS

Based on the information on vendor capabilities, manager (purchase) prepares a vendor

appraised report and forwarded to MD, with Purchase manager in consultation with M D, will negotiate
price and payment terms with the vendor, finalizing the trial order will be placed.
The trial order will be authorized by M D. If the ordered material receives within the
schedule time and conforms fully to requirement the trial purchase order, the vendor will be approved by
M D and be enrolled in the approved vendors list.

EVALUATION OF VENDORS

The approved vendors will be evaluated by manager (purchase) once in six months on the
basis of their performance.
The performance parameters for the evaluation will be quality and delivery performance.

PLACEMENT ORDER
After selecting the supplier, placement of material is made.

Page . 55
5. TRAINING EXPOSURE

Page . 56
CHAPTER – 5
TRAINING EXPOSURE

5.1 LEARNING OUTCOMES

The organizational study helped me to know about the real industrial activity which in turn helped
for the better understanding of the concepts which have been studied theoretically.
The study helped me to know the structural working of an organization and the basic functioning
of all the departments.
As a trainee, I had a good opportunity to communicate with organization people. I also learned
how to interact with higher officials and how to survive at a new place.
The study helped me to know about the automotive industry as a whole and the international
business environment.
I practically had a chance to learn about interpersonal skill, teamwork, listening skill etc.

5.2 SWOT ANALYSIS

STRENGTHS
• Proactive initiation on environmental related issues.
• Awareness about emerging technology, management and market environment.
• Organized/institutionalized mechanism/systems for sourcing of raw materials.
• Level of skills and knowledge related to quality, productivity, financial etc.
• Research and Development activities for new product development and existing product
improvement.
• Investment interests for new projects / developments.
• Trouble free supply of input materials for processing.
WEAKNESS
• Underutilization of machinery resources.
• Environmental pollution due to processing of rubber.

Page . 57
 • Poor employee productivity.
• High cost of new spare parts and high cost of maintenance.
• High temperature and heat inside the production plant due to processing machines exhaust.
• Sample development time is high due to the information and trail sample transformation across
the value chain of the company.
OPPORTUNITIES
• Huge volumes of orders from exports and local sectors.
• Mass production capacity is available and unused.
• Exposure to better work practices and technology.
THREATS
• Non-tariff barriers like, Social accountability, environment management systems.
• Scarcity of water.
• Stringent pollution control norms.
• Time taken to produce a single unit of product output.

5.3 Suggestions
Overall, the internship proved very useful to me and based on my observations in the past four weeks, I
share my suggestions as below.
• Sample – Turn Over Time: This can be improved if the time is reduced between information
collection and trial sample transformation across the value chain of the company.
• The current utilization of machinery resources can be further improved
• Environmental pollution can be reduced due to processing of rubber as it affects the environment.
• Poor employee productivity can be further improved by planning and motivation.
• High cost of new spare parts and high cost of maintenance greatly affects the profitability of the
company, so it must be reduced by considering various suppliers.
• High temperature and heat inside the production plant due to processing machines exhaust can be
further reduced to reduce the environmental issues and also the human’s working inside the
production unit.
• The first day process for the internship candidates can be further improved by allocating a HR
staff to the candidates and a quick induction will help.

Page . 58
CHAPTER – 6
CONCLUSION

The training at Fenner (India) Limited has helped to gain corporate knowledge about various
functional department. The organization structure describes the delegation of power and authority in the
organization .The training has given good experience to perform the activities that are allocated within a
scheduled time.
The companies continuously invest not only in technology and world class manufacturing
facilities but also in market developing across the globe. The company believes that excellence is the
moving target and hence it learns and improves continuously by bench marking with the best in class. The
training has helped to improve the interpersonal skill in group co-ordination and moral, also the
organization has provided a good climate for learning and growth for trainees.

Page . 59