AN ORGANISATION STUDY REPORT

AT

NATIONAL ALUMINIUM COMPANY LIMITED

(NALC0),BHUBANESWAR

Submitted in partial fulfillment of the requirements for the award of degree of

Master of Business Administration

Submitted by

NIKITA CHANDUKA
USN: 18MBAR0025

under the guidance of

Prof. UMESH CHANDRA

Professor

Jain (Deemed-to-be University)

Bangalore

DECLARATION
2020

I hereby declare that the Organisation Study Report

undertaken by me at NATIONAL ALUMINIUM LIMITED

Prof. UMESH CHANDRA

Professor

Jain (Deemed-to-be University)

CERTIFICATE

I certify that this Organisation Study Report undertaken at

NATIONAL ALUMINIUM COMPANY LIMITED

 CERTIFICATE

This is to certify that the Organization Study Report undertaken by

MS NIKITA CHANDUKA, USN:19MBAR0025 at NATIONAL
ALUMINIUM LIMITED COMPANY, BHUBANESWAR from
26.12.2019 to 10.01.2020 is a bonafide work submitted in partial
fulfillment of the Master of Business Administration course of Jain
(Deemed-to-be University), Bangalore for the batch of 2019-21.

The report has been approved as it satisfies the academic

requirement in respect of Organization Study Report prescribed for
MBA course.
DATE: Dr. Manita D
Shah

Associate Dean

Organisational study
Organisational study also known as organisational science tells about the
systematic study and knowledge of how people or employees behave within
the organisation. It is known to be the interaction that happens with all the
departments of the organisation and understand about the working condition.
It is a systematic study of how an organisation success with the help of
employees and various department in the competitive world. Whenever
people interact in an organisation many factors comes into role. Many ups
and downs will rise in an organisation; this organisational study helps to know
how the negative vibes are reduced. Organisational study is not only about
the study of an organisation but also to learn the roles & functions of an
individual department in an organisation.

OBJECTIVES
1. To gain knowledge about the business organisation

2. To gain knowledge of different departments in the organisation and their

functioning.

3. To understand how business processes are carried out in the organisation.

4. To understand how decisions are made at various levels of management.

METHODOLOGY
1. Primary data is collected from the organisation by communicating with
employees and management.
2. Secondary data is collected from company manuals, company websites,
newspaper, research paper and other websites.

3. Direct observation is used to understand the production process.

LIMITATIONS
1. There were difficulties in obtaining data from executives and managers due
to their busy work schedule.

2. Depth study of the company could not be carried out due to shortage of
time.

3. The reliability of data used for study largely depends up on the company’s
reports and the information given by executives.

4. The company has the limitation to disclose their financial details, so a

detailed analysis of financial performance of the company is not possible.

SCOPE OF THE STUDY

The scope of the study was limited to make an organisation study at NALCO,
its various departments, functions and processes.

CHAPTER 1 : INTRODUCTION AND INDUSTRY PROFILE

Introduction

The story of National Aluminium Company Limited NALCO is deep rooted in

the bounty and the benevolence of benign mother earth and in the
indomitable spirit of man. Nalco heralded a new era of aluminium making in
the country, not only in the use of modern technology but also in production of
world standard aluminium products. It is always aiming to reach the top in its
line of business, progressive changes in the policies and the rules, which
regulate the conditions of service and development of employees

HISTORY OF THE ORGANISATION

Incorporated in 1981, as a Public Sector Enterprise of the Government of

India, National Aluminium Company Limited (NALCO) is Asia's largest
integrated Aluminium complex, encompassing bauxite mining, aluminium
refining, aluminium smelting and casting, and Aluminium Ingots, Wire Rods
and Billets power generation, rail and port operations. NALCO is having its
own Captive Power Plant and Port facilitates for handling imported Soda and
Export of Alumina. Commissioned during 1985-87, under extremely difficult
logistics of project management, that too without time or cost overruns, Nalco
has emerged to be a star performer in production and exports of alumina and
aluminium and more significantly, in propelling selfsustained growth.
Leveraging the technical collaboration with Aluminium Pechiney of France,
ISO - 9000: 2001 certification of quality management, LME registration of
products, environment care conforming to ISO - 14001, low cost operations,
international customer base, NALCO has continued to add value and is
poised to grow further. Transparent and successful operations of Nalco, as
well as its contributions, have brought about remarkable socio-economic
progress in two underdeveloped districts of Orissa, where the Company’s
plant and facilities are located. 10

The registered office of the Company is located in Bhubaneswar, the capital

city of Orissa and it has 5 segments spread over in Orissa and Andhra
Pradesh with an initial investment of about 2408 Crores and present
expansion program of about Rs.3227 Crores the designed integrated project
has the following FIVE main segments.
Nalco successfully constructed and commissioned each of its units on the
following dates:-

 Discovery of East cost boxite-1975

 Preparation of NALCO’s feasibility report- July 1975
 Investment decision by the government – Jan 1980
 Formation of the company - Jan 1981
 Foundation stone laid by late Smt. indra Gandhi-march 1981

Commissioning dates

Port Facility - September, 1985

Bauxite Mines - November, 1985

Alumina Refinery - September, 1986

Captive Power Plant - September, 1986

Smelter Plant - March, 1987

The commencement of sale of aluminium is from May, 1987. The

commencement of Alumina export in Jan, 1988 and Aluminium export from
September, 1988. Now Nalco has charted a course of international
confidence in India’s industrial capability.

AWARDES OWNED BY NALCO

 FICCI award for pollution control and environment-1996-97

 Excellent public sector enterprise award – 1996-97
 Environment protection award by IIE-1997
 FIMI environment award-2000-01
 FIEO Niryat shree award-2002-03
 Five star export house status-2005
 NALCO achieves NAVRATNA award-April 2008
 Best listed CPSE Award from prime minister-2010
 PSE excellence Award for CSR-2011, In maharatna and navratna
category
 Top export award of CAPEXIL since 1988 till 2013

ORGANISATION AT PRESENT
 NALCO at present is considered to be a turning point in the
history of Indian aluminium Industry. In a major leap forward, NALCO has not
only addressed the need for self sufficiency in aluminium but also given the
country a technological edge in producing this strategic metal as per world
standards.

Incorporated in 1981 as a public sector enterprise, NALCO was

set up to exploit a part of large bauxite deposits discovered in the east coast,
in technological collaboration with aluminium Pechiney of France (now riot
into-Alcan).

With consistent track record in capacity utilization, technology

absorption, quality assurance, export performance and profitability NALCO is
a bright example of India’s industrial capability. today , as an ISO 9001,
ISO14001,OHSAS,18001,SA 8000 & ISO50001 company , with its products
registered at London metal exchange , NALCO NALCO has emerged as the
largest integrated bauxite-alumina -aluminium complex in Asia . Now,
NALCO enjoys the status of Navratna Company.

MANPOWER REQUIREMENT AS ON 31ST MARCH 2019

LOCATION OF THE ORGANISATIONS

Nalco projects mostly located in backward districts of Orissa were

expeditiously completed on schedule on the very difficult logistics of project
management. The Mines and Alumina Refinery Complex has located at
Damanjodi in Koraput District, where the Bauxite Mines of Nalco is located.
Damanjodi is 12 Km from Semiliguda. Its Smelter Plant and CPP are located
at Angul, while the corporate head quarter is located at Bhubaneswar, the
capital city of Orissa.
 CHAPTER 2 : COMPANY PROFILE

National Aluminium Company Limited

Type Public Sector Undertakings

Traded as NSE: NATIONALUM

BSE: 532234

Industry Mining, Metals, Power

Headquarters Bhubaneswar, Odisha, India

Key people Sridhar Patra(Chairman & MD)

Products Aluminium, Alumina & Hydrate

Revenue ₹ 11,386 crore

Net income ₹ 1,732 crore (2018-19)

Owner Government of India

Number of 6,385 (June 2019)

employees

1. Mines & Refinery complex,

Divisions
Damanjodi
2. Smelter & Power complex,
Angul

Website nalcoindia.com

Vision
To be a Premier and Integrated company in the Aluminium value chain with
strategic presence in Mining both domestic & global, Metals and Energy
sectors.

Mission
To sustainably grow multi-fold in Mining, Alumina and Aluminium business
along with select diversification in Minerals, Metals and Energy sectors, while
continuously improving on efficiency and business practices thus enhancing
value for all stakeholders.

• To achieve sustainable growth in business through diversification,

innovation and global competitive edge.

• To continuously develop human resources, create safe working conditions,

improve productivity and quality, and reduce cost and waste.

• To satisfy the customers and shareholders, employees, and all other

stakeholders.

• To be a good corporate citizen, protecting and enhancing the environment

as well as discharging social responsibility in order to ensure sustainable
growth.

• To intensify R&D for technology up-gradation. The Company firmly believes

that its ultimate reward is happiness in the human heart.

Core Values : BEST

Benefitting Stakeholders
We provide our customers, suppliers and other stakeholders with utmost level
of value, service and satisfaction.

Excellence and quality

We ensure that our products, manufacturing & business processes adhere to
the highest quality levels and standards.

Sustainability
We relentlessly pursue sustainable practices and create a positive impact on
the communities we engage with.

Trust & Integrity

We conduct ourselves with dignity, integrity, equity, transparency and
accountability to build trust.

Objectives of the Organisation:

1. To maximize capacity utilization.

2. To optimize operational efficiency and productivity.

3. To maintain highest international standards of excellence in product quality,

cost efficiency and customer service.

4. To provide a steady growth in business by technology upgradation,

expansion and diversification.

5. To have global presence and earn foreign exchange.

6. To maintain leadership in domestic market.

7. To instill financial discipline at all levels for achieving cost and budgetary
controls, optimize utilization of working capital and effective cash flow
management.

8. To maximize return on investment.

9. To develop a strong R&D base and increase business development

activities.

Operations

NALCO is headquartered at Bhubaneswar, Odisha.

NALCO operates from two major Units

 Mining and Refinery (M&R) complex

o Bauxite Mines located at Panchpatmali hills, Koraput with capacity of
6825,000 TPA
o Alumina Refinery located at Damanjodi, Odisha with capacity of
2275,000 TPA
 Smelter and Power (S&P) complex
o Aluminium Smelter located at Angul, Odisha with capacity of 460,000
TPA
o Captive Power Plant located at Angul, Odisha with capacity of 1200
MW
 Port Facilities at Visakhapatnam and Paradip.
 Wind Power Plants
o Gandikota, Andhra Pradesh - 50.4 MW (2.1MW, 24 nos. WEGs)
o Ludarwa, Jaisalmer, Rajasthan - 47.6 MW (0.85 MW, 56 nos. WEGs)
o Devikot, Jaisalmer, Rajasthan - 50 MW (2 MW, 25 nos. WEG)
o Sangli, Maharashtra - 50.4 MW (2.1MW, 24 nos. WEGs)

 Solar Power at Nalco Corporate Office, Bhubaneswar & NALCO Research

& Technology Center, Bhubaneswar
 Regional offices at Kolkata, Mumbai, Delhi, Chennai & Bangalore
 10 operating stockyards at various locations in the Country

Products
Main products of NALCO are as follows
Aluminium Metal

Ingots, T-Ingots and alloy Ingots

 Billets

Wire Rods

Cast strips
Alumina & Hydrate

 Calcined Alumina
 Alumina Hydrate
Rolled Product
 Aluminium Chequered Sheets

Aluminium Rolled Products

Power

 Thermal Power
 Co-generation Power
 Wind Power
 Solar Power
 SWOT ANALYSIS
A) Strengths:
1. Abundant resources of Bauxite
NALCO utilizes Bauxite available at Panchpatmali hills of Koraput
district in Orissa (one of the largest Bauxite Reserves in India). Present
capacity of Mines is 68.25 lakh TPA. Moreover Govt. of India has also
granted Potangi Mines for NALCO’s expansion of 1 MTPA Alumina
Refinery at Damanjodi.
2. Low cost and efficient labour force
As per the US Bureau of Labour Statistics India’s Labour costs are
among the lowest in the world.Also India has the largest youth
population which gives it an added advantage for efficient labour force.
3. Strategic Location of Refinery and Smelter
Alumina Refinery at Damanjodi has strategic locational importance
since it is near to the Panchpatmali Bauxite Mines. Also the Smelter at
Angul has locational importance since it is near to the Talcher
Coalblocks Utkal D and E Mines.
4. Benefit of being a Govt Organization
Being a Govt. body gives an added advantage to NALCO. The Ministry
of Mines has reserved Potangi Mines for NALCO for its operations.
5. Strongly globalised industry and emerging global
competitiveness
NALCO is known as the one of the cheapest Aluminium producers in
the world. Also NALCO was able to sell excess Alumina of nearly 1.225
Million Tonnes, 327000 metric tonne of Aluminium in 2014-15. With
ISO 9001, ISO 14001, OHSAS 18001 and SA 8000 certifications and
products registered at LME, NALCO enjoys the status of a Premier
Trading House.
6. Modern new plants
NALCO’s CPP, Alumina Refinery and Smelter Plants are certified ISO
50001.
The Alumina Refinery is equipped with:
 Pre-desilication and inter-stage cooling for higher productivity.
 Energy efficient fluidised bed calciners
 Co-generation of 4x18.5 MW power by use of back pressure
turbine in steam generation plant.

The Aluminium Smelter is equipped with:

 180 KA cell technology

 Micro-processor based pot regulation system
 Fume treatment plant with dry-scrubbing system for pollution
control and fluoride salt recovery
 Integrated facility for manufacturing carbon anodes, bus bars,
anode stems etc.
 Hyper Dense Phase System (HDPS) for alumina feeding.
The RPU is based on the advanced technology of FATA Hunter, Italy
for production of Rolled Products.
Further NALCO is setting up 5th stream of 1 MPTA capacity in existing
Alumina Refinery at Damanjodi with Medium Pressure Digestion
Technology.
7. NALCO-GACL Joint Venture
NALCO is now forming JV with Gujarat Alkalies and Chemicals Limited
for setting up 1800 Caustic Soda Plant which plans to produce 2.7 lakh
tonnes of Caustic Soda. This would completely cut the import and
ultimately cut down the Cost of Production.
8. Advantage of being Un Levered Company
The Debt to equity ratio of NALCO is around 0.005 which means the
company has almost no debt is financially strong and the entire value
of the business is reserved for shareholders.
B) Weakness:
1. Less Diversified Business Operations (Returns)
The main business of NALCO is the through sale of Alumina/
Aluminium and Aluminium Products. It is only after 2010-11, NALCO
has entered into the development of wind power by setting up 98 MW
of wind power plants in Andhra Pradesh and Rajasthan combined.
It is only recently, when as part of the diversification plan
 NALCO has formed JV with NPCIL for development of
Kakrapara Atomic Power Project.
 NALCO has also signed MoU with IREL in July 2014, for
development of 1 LTPA Titanium Slag Project.
2. No Diversification in Metal Industry like Copper and Zinc.
3. Dependency on Imports for Caustic Soda
NALCO requires around 1,20,000 tonnes of Caustic Soda for its
Alumina Refinery which is currently met by domestic manufacturers
and imports from China.
4. Dependence on imports for aluminium manufacturing
equipment’s & technology.
NALCO is technologically dependent on Aluminium Pechiney
technology of France.
C) Opportunity:
 Make in India Campaign: The demand for aluminium wire rods
in the country is likely to show a higher growth with increased
Governmental investment in the power transmission sector.
Packaging and Industrial machineries, particularly the
automobile sector are also expected to show growth.
 Opportunities also exist in the downstream and value-added
product segment e.g. sheets, extrusions and castings. R&D
efforts to bring in new usages and applications, exploration and
collaboration with other industries where aluminium could
substitute other materials, development of alloys to suit the
requirements of various industries, changing the design pattern
with a view to improving the functionalities of different products
etc. may be attempted.
 Opportunity continues to exist in the domestic market as per
capita consumption of aluminium in India is among the lowest in
the world, standing at 1.4 kg as compared to the world average
of 8 kg.
D) Threats:
1. Market fluctuations and China’s export

Global prices of aluminium have remained under pressure on account

of a number of factors including the high global inventory of the metal,
concerns about the performance of the Chinese economy, the
appreciation in the USD etc. Average LME cash prices were around
USD 1,889 during 2014-15.
2. Imports from abroad
The availability of low-cost aluminium from smelters in West Asia due
to cheap gas from oil refineries making the region ideal to set up
aluminium plants.
3. China’s changing export possibilities
4. Surplus Inventory in LME
5. Financial Deals leading to a decline in LME pricing
6. Flexible pricing of Indian Manufacturers.
7. Competition from large scale scrap imports, large scale availability of
substitute materials particularly plastics and increasing input costs.
 8. Substantial increase in cost of coal in recent past has put additional
cost pressure on aluminium producers in India.
9. Weakening sentiments of Copper Industry

The Indian Aluminium Industry consists of major players including

NALCO, Hindalco and Sesa Sterlite Ltd. Hindalco acquired Novelis
making the combined entity the world's largest rolled-aluminium
producer. While Vedanta is the largest Aluminium Producer in India
with strategically located large scale assets Smelters, CPPs and
Mines.

PESTEL ANALYSIS

Political Factors

Political factors play a significant role in determining the factors that can
impact Century Aluminum Company's long term profitability in a certain
country or market. Century Aluminum Company is operating in Aluminum in
more than dozen countries and expose itself to different types of political
environment and political system risks. The achieve success in such a
dynamic Aluminum industry across various countries is to diversify the
systematic risks of political environment. Century Aluminum Company can
closely analyze the following factors before entering or investing in a certain
market-
 Political stability and importance of Aluminum sector in the country's
economy.
 Risk of military invasion
 Level of corruption - especially levels of regulation in Basic Materials sector.
 Bureaucracy and interference in Aluminum industry by government.
 Legal framework for contract enforcement
 Intellectual property protection
 Trade regulations & tariffs related to Basic Materials
 Favored trading partners
 Anti-trust laws related to Aluminum
 Pricing regulations – Are there any pricing regulatory mechanism for Basic
Materials
 Taxation - tax rates and incentives
 Wage legislation - minimum wage and overtime
 Work week regulations in Aluminum
 Mandatory employee benefits
 Industrial safety regulations in the Basic Materials sector.
 Product labeling and other requirements in Aluminum

Economic Factors

The Macro environment factors such as – inflation rate, savings rate, interest
rate, foreign exchange rate and economic cycle determine the aggregate
demand and aggregate investment in an economy. While micro environment
factors such as competition norms impact the competitive advantage of the
firm. Century Aluminum Company can use country’s economic factor such as
growth rate, inflation & industry’s economic indicators such as Aluminum
industry growth rate, consumer spending etc to forecast the growth trajectory
of not only --sectoryname-- sector but also that of the organization. Economic
factors that Century Aluminum Company should consider while conducting
PESTEL analysis are -

 Type of economic system in countries of operation – what type of economic

system there is and how stable it is.
 Government intervention in the free market and related Basic Materials
 Exchange rates & stability of host country currency.
 Efficiency of financial markets – Does Century Aluminum Company needs to
raise capital in local market?
 Infrastructure quality in Aluminum industry
 Comparative advantages of host country and Basic Materials sector in the
particular country.
 Skill level of workforce in Aluminum industry.
 Education level in the economy
 Labor costs and productivity in the economy
 Business cycle stage (e.g. prosperity, recession, recovery)
 Economic growth rate
 Discretionary income
 Unemployment rate
 Inflation rate
 Interest rates

Environmental Factors

Different markets have different norms or environmental standards which can

impact the profitability of an organization in those markets. Even within a
country often states can have different environmental laws and liability laws.
For example in United States – Texas and Florida have different liability
clauses in case of mishaps or environmental disaster. Similarly a lot of
European countries give healthy tax breaks to companies that operate in the
renewable sector.

Before entering new markets or starting a new business in existing market the
firm should carefully evaluate the environmental standards that are required to
operate in those markets. Some of the environmental factors that a firm
should consider beforehand are -

 Weather
 Climate change
 Laws regulating environment pollution
 Air and water pollution regulations in Aluminum industry
 Recycling
 Waste management in Basic Materials sector
 Attitudes toward “green” or ecological products
 Endangered species
 Attitudes toward and support for renewable energy

Social Factors

Society’s culture and way of doing things impact the culture of an organization
in an environment. Shared beliefs and attitudes of the population play a great
role in how marketers at Century Aluminum Company will understand the
customers of a given market and how they design the marketing message for
Aluminum industry consumers. Social factors that leadership of Century
Aluminum Company should analyze for PESTEL analysis are -

 Demographics and skill level of the population

 Class structure, hierarchy and power structure in the society.
 Education level as well as education standard in the Century Aluminum
Company ’s industry
 Culture (gender roles, social conventions etc.)
 Entrepreneurial spirit and broader nature of the society. Some societies
encourage entrepreneurship while some don’t.
 Attitudes (health, environmental consciousness, etc.)
 Leisure interests

Technological Factors

Technology is fast disrupting various industries across the board.

Transportation industry is a good case to illustrate this point. Over the last 5
years the industry has been transforming really fast, not even giving chance to
the established players to cope with the changes. Taxi industry is now
dominated by players like Uber and Lyft. Car industry is fast moving toward
automation led by technology firm such as Google & manufacturing is
disrupted by Tesla, which has stated an electronic car revolution.

A firm should not only do technological analysis of the industry but also the
speed at which technology disrupts that industry. Slow speed will give more
time while fast speed of technological disruption may give a firm little time to
cope and be profitable. Technology analysis involves understanding the
following impacts -

 Recent technological developments by Century Aluminum Company

competitors
 Technology's impact on product offering
 Impact on cost structure in Aluminum industry
 Impact on value chain structure in Basic Materials sector
 Rate of technological diffusio

Legal Factors

In number of countries, the legal framework and institutions are not robust
enough to protect the intellectual property rights of an organization. A firm
should carefully evaluate before entering such markets as it can lead to theft
of organization’s secret sauce thus the overall competitive edge. Some of the
legal factors that Century Aluminum Company leadership should consider
while entering a new market are -
 Anti-trust law in Aluminum industry and overall in the country.
 Discrimination law
 Copyright, patents / Intellectual property law
 Consumer protection and e-commerce
 Employment law
 Health and safety law
 Data Protection
 PORTER’S FIVE FORCES IN THE ALUMINIUM SECTOR

As described by Michael Porter, like other industry, Indian Aluminium Industry

is also influenced by five forces which are explained by this model below:

A) Bargaining Power of Suppliers

Most domestic players operate integrated plants. Bargaining power is limited
in case of power purchase, as Government is the only supplier of Coal (i.e.
Auctioning of Coal/ Bauxite Mines and regulating Coal rates, Import and
Export Custom Duties). However, increasing usage of captive power plants
(CPP) will help to rationalize power costs to a certain extent in the long term.

B) Bargaining Power of customers

The bargaining power of customer is limited as the prices are not only
determined based on Demand and Supply but also on other macro-
economic factors like Oil Prices, Exchange Rates.

C) Threat of Competition
Competition is primarily on quality and price, as being a commodity,
differentiation is difficult. There is threat from rising imports from China and
West Asia. The market share of domestic producers have dropped to 44%
in 2014-15 with imports nearly doubling to 15.63 lakh tonne from 8.81 lakh
tonne in 2010-11 Also plummeting LME prices have eroded the Indian
Aluminium Producers’s competitive edge forcing them to keep half of their
capacities idle.
Volatility in Aluminium prices, declining export premiums, fluctuations in
US dollar exchange rates, slowdown in the global economy and growing
competition from secondary producers in the domestic market have also
become a matter of concern.

D) Barriers to entry
Large economies of scale. Consequently, high capital costs, time to set
up, scarcity of Power, Governmentfactors, land problems, geographical
factors etc. are some of the barriers to entry.

E) Threat of Substitute Products

Aluminium is comparatively cheaper, lighter and durable as compared to
other metals. The demand for the metal is expected to pick up as the
scenario improves for user industries, like power, infrastructure and
transportation. But copper can replace aluminium in electrical
applications;magnesium, titanium and steel can substitute for aluminium in
structural and ground transportation uses.Composite wood and steel can
substitute for aluminium in construction. Glass, plastics, papers and steel
cansubstitute for aluminium in packaging.

SUPPLY
of aluminium is in
excess and any
deficit can be
imported at low rates
of duty. Currently,
the demand is stable
COMPETITION and supply is in DEMAND
excess.
Comoetition is for aluminium is
primarily on quality estimated to grow at
and price as being a 6%-8% per annum in
commodity view of the low per
differentiation is capita consumption
difficult. in India.

FORCES AFFECTING
THE ALUMINIUM
SECTOR
BARGAINING POWER OF
CUSTOMERS
BARRIERS TO ENTRY
Being a commodity,
customers enjoy large economies of
relatively high scale. consequently
bargaining power, as high capital costs
prices are determined
on demand and supply. BARGAINING POWER OF
SUPPLIERS
most domestic players
operate integrated
plants. Bargaining power
is limited in case of the
power plants, as
government is the only
supplier.
 4 P’s of Marketing Mix (NALCO)

1. Products: NALCO has the following products:

Under Primary Aluminium Metal NALCO manufactures the following:
a. Ingots
b. Alloy Ingots
c. T-Ingots
d. Sows
e. Billets
f. Wire Rods Cast Strips
Under Rolled Products NALCO manufactures
a. Aluminium Rolled Products
b. Aluminium Chequered Sheets
Apart from these NALCO also produces:- Calcined Alumina, Alumina Hydrate,
Zeolite-A, Speciality Hydrate/ Alumina (Alumina Chemicals).

2. Price: NALCO has its Aluminium Ingot IE-07 registered with LME
whose current basic price ex-works is Rs 1,29,000. Also NALCO has
the least pricing model. The prices of all the products are with respect
to LME which may vary. NALCO has various stockyards across India.
The Stockyard Recovery Charges for transporting the products to ware
houses and for storing are charged separately over and above the
basic price ex-works. The Excise Duty, CST/ Sales Tax are levied over
and above.

3. Place:NALCO has one of its warehouses near Angul Smelter. The

products are also transported via Rail to various Stockyards across
India for domestic sale. The stockyards are located at Kolkata, Jaipur,
Faridabad, Baddi, Vizag, Bangalore, Chennai, Bhiwandi, Silvassa,
Delhi, and Vadodara.

4. Promotions: NALCO enjoys the reputation of being a Govt.

Undertaking. This gives an added advantage when trust issues are
concerned. Since NALCO has Business-to-Business market rather
than Business-to-customer, the promotional activities are given less
weightage.
 McKinsey 7S model

1. STRATEGY: NALCO sets target of achieving a turnover of Rs 18,171

crore by 2024. The Corporate Plan has been developed as per the
guidelines of NITI Aayog, envisaging a three- year action plan, seven -
year strategy and 15-year vision for the company's growth.
To evolve a robust marketing strategy in order to remain competitive in
a sluggish metal market, the vital inputs from Nalco’s valued customers
is a must. Some of the customers are with the company since its very
launch of products. Their brand loyalty and market intelligence shall go
a long way in strategizing Nalco’s moves in both domestic and
international markets.

2. Structure

How is your company divided at an organizational level? What teams are in

place, what tasks are they responsible for, and where do these teams
crossover? You may find that, as your business grows and you reassess the
McKinsey 7S model, that you need to expand your structure to better manage
emerging capabilities that were not present when you started the company.

Example:
 SmartPixel is separated into three main teams – Game Design, Artistic
Development, and Programming.

 The Game Design team is responsible for each game’s mechanics, story,
and overall ‘game feel’, brainstorming an experience that customers will
enjoy.

 The Artistic Development team is responsible for the concept, character,

background, and texture design behind each game that will capture the
customer’s attention.

 The Programming team is responsible for the coding and technical creation
of each game, ensuring that the customers enjoys the functionality of the
game and plays it repeatedly.

 These teams each hold their own team managers, who report to an overall
Producer team (which hold the company’s C-suite positions).

3. Systems

These are the processes, procedures, and information systems that support
your business. Authority in organizational systems must be clear, and
technical systems must be successfully managed and maintained to facilitate
the work of the company’s teams.

Example:

 The Game Design team pitches ideas to the Artistic Development and
Programming teams to create an overall game pitch.

 The Producer team will decide, in consultation with each team’s manager,
each game’s overall direction before setting a calendar of work.

 Rudimentary game testing is completed in-house, though further testing is

outsourced to a market research company for customer feedback.

 On-site servers are maintained by a dedicated team within the

Programming team.

4. Staff

This is the breakdown of staff in terms of their background, age, gender, and
characteristics. Evaluate the teams you have in place and whether they are
operating at optimal capacity as well as if they can facilitate professional
growth.

Example:

 Each team is comprised of a variety of demographics, an important quality

to maintain as the company grows.

 C-Suite members have a combined 50 years’ experience in games

development, meaning customers know games they play are made by
gaming veterans.

 Managers are encouraged to build a sense of comradery in their teams

through incentivized activities.

 SmartPixel maintains a relationship with a local university and operates an

intern programme in the hopes to stimulate passion in video game creation,
develop their skills, and potentially bring them into the company on a full-
time basis after graduation.

5. Skills

Always be aware of the overall capabilities of teams and the specific skill set
of team members. You should know what core competencies team members
must demonstrate, as well as what attributes may expand a department’s
offering (such as experience in an international market for using an industry-
leading piece of technology).

Example:

 SmartPixel encourages the hiring of artists with widely different styles in

order to diversify idea generation and push capabilities of the Programming
team.

 Game Development team members are frequently sent on training courses

to ensure the ideas they bring to their games are in-line with current
consumer trends.

 Team managers must maintain a personal development plan with their

team members to monitor and develop their skills.
 6. Style

This element includes both the way in which key managers behave in
achieving the organization’s goals and the cultural style of the organization as
a whole. Managers may come to you with ideas or initiatives they believe will
benefit their staff, though will use internal resources (time, budget etc.)
meaning you will have to decide how much to allocate to them so long as they
demonstrate a return on investment.

Example:

 SmartPixel allows for input from all teams during the idea generation and
testing phases of their games. Feedback is anonymized to ensure freedom
of expression.

 Team members that show passion behind an idea they pitch are
encouraged to take greater responsibility during that idea’s development
and ‘take ownership’ of that game’s particular creation.

 Resources are made available to the Programming team to experiment

with emerging technology, providing they demonstrate that technology’s
suitability to SmartPixel’s current offering.

7. Shared Values

The final aspect of the McKinsey 7S model suggests that guiding concepts of
the organization should be evident through both its external work and its
internal culture. Neglecting your Shared Values puts your company at risk of
becoming lost in the crowd of your competition and employees may not feel
as personally tied to their roles, leading to decreasing productivity.

Example:

 SmartPixel aims to instil a sense of personality behind each of their games,

incorporating advanced game design ideas in as simple and accessible
games as possible.

 Games created should use positive re-enforcement and humour to craft a

pleasant experience for even the shortest of gaming sessions.

 Winners of gaming bursts should be recognized through our company’s

social media channels to encourage a competitive community of players.
 Internally, SmartPixel regularly recognizes accomplishments and
innovations from individuals and teams.

 Flexible working hours are available to ensure SmartPixel employees are

able to work in a manner that suits them best.

Questionnaire
The answer of the following questions should be given from the 3 choices
below.

1. Agree/yes 2. Disagree /no 3. Undecided/unknown

1.Is NALCO maintaining healthy relationship between management and

employees?

Ans:

2.Is the post placement training is sufficient and useful to persons?

Ans:

3. Hospital facilities provided by Nalco to you are satisfactory.

Ans:

4. Do you Have first-aid boxes in your department?

Ans:

5. Are ambulance used at the time of accident?

Ans:
6. Are peripheral development programmers’ sponsored by your company?

Ans:

7. To keep the environment pollution free Nalco has undertaken large scale
plantations in refinery plant as well as outside.

Ans:

8. The food provided by company canteen is having a good quality?

Ans:

9. Does the canteen offers food at subsidized rates to the employees?

Ans:

10. The incentives you are getting from your company are motivational factors
for better performance.

Ans:

11. Is house rent allowances provided by NALCO is satisfied by employees?

Ans:

12. Weather the working condition is good for the employees?

Ans:

13. Weather the preventive measures are taken against noise pollution of
your company?

Ans:

14. Are the key tasks are quantified in your organization?

Ans:

15. Is the quality of products is good?

Ans:

16. Are you a member of any trade union?

Ans:

17. Do you think that trade union is doing your part of job on behalf of you?
Ans:

18. Does Nalco motivates its employees to participate with the management?

Ans:

19. Are the employees of Nalco more prone to strikes

for fulfilling their demands?

Ans:

20. Are all the people of the company aware of the quality vision and mission?

Ans:

By using this questionnaire I have conducted my survey and the opinions are
as follows :-

1.Is NALCO maintaining healthy relationship between management and

employees?

Ans.

2.Is the post placement training is sufficient and useful to persons?

Ans:
3. Hospital facilities provided by Nalco to you are satisfactory.

Ans:

4. Do you Have first-aid boxes in your department?

Ans:

5. Are ambulance used at the time of accident?

Ans:
6. Are peripheral development programmers’ sponsored by your company?

Ans:

7. To keep the environment pollution free Nalco has undertaken large scale
plantations in refinery plant as well as outside.

Ans:

8. The food provided by company canteen is having a good quality?

Ans:
9. Does the canteen offers food at subsidized rates to the employees?

Ans:

10. The incentives you are getting from your company are motivational factors
for better performance.

Ans:

11. Is house rent allowances provided by NALCO is satisfied by employees?

Ans:

12. Weather the working condition is good for the employees?

Ans:

13. Weather the preventive measures are taken against noise pollution of
your company?

Ans:
14. Are the key tasks are quantified in your organization?

Ans:

15. Is the quality of products is good?

Ans:

16. Are you a member of any trade union?

Ans:
17. Do you think that trade union is doing your part of job on behalf of you?

Ans:

18. Does Nalco motivates its employees to participate with the management?

Ans:

19. Are the employees of Nalco more prone to strikes

for fulfilling their demands?

Ans:

20. Are all the people of the company aware of the quality vision and mission?

Ans:
FINDINGS & CONCLUSION
FINDINGS

Industrial Relations scenario of the concerned industry was taken into

account. Besides a few limitations, the project/study was almost successful
and effective. During the period of study, practical situations were added up to
the imagination. As a result the bookish knowledge was to some extent
integrated with the practical knowledge.

Again the real job of a HR Manager is to study people’s

behavior, to motivate them, to have higher productivity, to maintain the
working environment and besides this, to contribute towards achieving
organizational effectiveness by maintaining the good industrial relation . It
requires presence of mind, a broad outlook and courage.

During the course of study at the M&R complex, Damanjodi, the following
findings could be displayed.

 NALCO has got a strong and motivated workforce.

 NALCO have sufficient manpower to work in different areas of the
organization to achieve the company’s goal.
 NALCO provides the best salary to the employees, but since the
organization is a public sector enterprise, the employees don’t have the
fear of job security. Hence the manager has to motivate them
continuously thereby trying to create a proper work environment for
accomplishing the organizational objectives.
 The Refinery plant is equipped with highly advanced technology. The
company also looks after the environment issues and keeps the
environment pollution free.
 As highly advanced technology is used in the plant highly skilled
employees with proper training and experience are required to perform
the job. Since the contract and casual workers are engaged, lack of
skill and proper training is a threat to the organizational production.
 The company provides proper, timely and highly mechanized training
for the development of individual workers which will ultimately help in
increasing their knowledge, skill & attitude for carrying out their job in a
better way.
 The monotonous work environment prevailing at the workplace creates
a boredom situation & thus de-motivates the employees. Hence the
management must look into the matter and should go for job rotation,
which will reduce the boredom in work.
 The security of the organization is very strong. CISF Forces are
recruited for the security of the organization and G-4 forces are
recruited for the security of the township.
 Here the trade unions follow the path of different political parties, as
they are affiliated to some of the central unions. Hence the ultimate
target of union leaders is “power” & to avoid the dominance of out –
side leadership in trade unions, internal leadership should be
encouraged.
 NALCO provides required safety devices to the employees for their
safety inside the organization. But some employees do not use the
safety devices due to negligence.
 NALCO provides numerous numbers of welfare facilities to the
workers along with the peripheral development programs. NALCO is
also involved in CSR activities.
 There is proper co-ordination among the managers.
 There are various bipartite committees’ insides the organization but
don’t function properly due to lack of interest from both sides. Hence
there must be proper guidelines framed for making these committees
successful.
 Besides the above, the overall functioning of the organization is quite
healthy because of fair industrial relations, low rate of absenteeism,
lower labour turnover rate, less number of industrial disputes, fair work
environment, and overall performance of the organization.
 CONCLUSION

NALCO has taken many steps to improve its IR Scenario .this is not just for
the growth of the organization, but also it helps to maintain a good relationship
between the management and employees. Now the question is how far the
management is interested in promoting fair good IR Scenario to achieve the
above outcomes, which will contribute to overall development of organization
and nation as a whole.

At the end of study at NALCO it is my pleasure to

conclude that NALCO is a company with a overall good IR Scenario. The
company is also well equipped with highly technically trained and motivated
group of persons, who have belongingness with competitive spirit to take the
company in the frontline at National as well as International Level. Qualitative
and quantitative production, which maintaining environment and safety norms
are the reasons for giving the company the status of a NAVARATNA
COMPANY.
 SUGGESTIONS
Following are some of the points which could be suggested by me for the
betterment of the organization.

 Proper feedback system should be followed which will encourage the

workers to do their work properly.
 Organization should introduce career growth programmers’ for the
employees.
 The Management should encourage the employees to actively
participate in managerial activities.
 There should be a proper control mechanism for the unions.
 The Management should cordially welcome any number of new
techniques/ ideas/suggestions etc. from the employees which will
benefit the organization.
 Job rotation should be followed
 Refreshment training programme, workers education should be done
more frequently.
 Internal leadership should be encouraged to reduce the dominance of
outside leadership in Trade Union.
 The company should provide to its worker to adjust with the highly
sophisticated technology in ordered to achieve organizational goal.
 More importance to be given towards welfare facilities of the worker.
 There should be encouragement from management and union side for
effective functioning of various committees
 BIBILOGRAPHY

 H.L.KUMAR, Labour Laws

 NALCO Standing orders
 NALCO Study materials of vocational trainees
 Project related files and documents available at the HRD centre,
Alumina Refinery Plant, NALCO, Damanjodi
 NALCO HR Manual
 Journals published by NALCO
 NALCO website(www.nalcoindia.co.in)
 NALCO Intranet site(www.nalcorefinery.com)