Professional Documents
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0 - Internship Report 2019
0 - Internship Report 2019
BY
SUSHMA S
1CG18MBA50
Submitted to
I
CERTIFICATE
To whom so ever it may concern
Technology, Gubbi, Tumkur, has carried out the internship study at our
organization, from 08th June 2019 to 4th August 2019 under our guidance
II
Channabasaveshwara
Institute of Technology
(NAAC Accredited & ISO 9001:2015 Certified Institution)
(Affiliated to VTU, Belgaum & Recognized by A.I.C.T.E. New Delhi)
NH 206, (B.H. Road), Gubbi, Tumkur – 572 216. Karnataka
URL: www.cittumkur.org e-mail: mba@cittumkur.org
Department of MBA
CERTIFICATE
fulfillment of the requirements for the award of the degree of Master of Business
Examiners
Sign: Sign:
Name: Name:
Institution: Institution:
III
Jindal aluminium company
DECLARATION
I, Sushma s, hereby declare that the Internship report entitled “(Title)” with
reference to “(Organization with place)” prepared by me under the guidance of
Divya C, Assistant Professor, M.B.A Department, Channabasaveshwara
Institute of Technology, Gubbi, Tumkur and external assistance by (Nagendra,
Designation and Organization).
I also declare that this Internship work is towards the partial fulfillment of the
university regulations for the award of degree of Master of Business
Administration by Visvesvaraya Technological University, Belgaum.
I have undergone a summer project for a period of four weeks. I further declare
that this project is based on the original study undertaken by me and has not
been submitted for the award of any degree/diploma from any other University/
Institution.
USN: 1CG18MBA50
IV
Jindal aluminium company
ACKNOWLEDGMENT
I feel greatly honoured to be part of our beloved and highly esteemed educational
institution - Channabasaveshwara Institute of Technology, Gubbi for developing
me as a real MBA student.
I wish to place my deep sense of gratitude to Dr. Suresh D S, Principal & Director
CIT who has been a constant source of inspiration to me and have encouraged me to
undertake and conclude this project successfully.
Place: Gubbi
Date:00 - 11 - 2019
Sushma S
1CG18MBA50
V
Jindal aluminium company
TABLE OF CONTENTS
SL Page
Chapter
No Number
Chapter 1:
1 Introduction about the internship, and
Industry Profile
Chapter 2:
2
Organization Profile:
Chapter 3:
3
Mckensy’s 7S framework
Chapter 4:
4
SWOT Analysis
Chapter 5:
5
Analysis of financial statement.
Chapter 6:
6
Learning experience.
Bibliography
Annexure
VI
Jindal aluminium company
LIST OF TABLE
SL Page
Table
No Number
1 Current ratio
2 Debt-equity ratio
3 Net profit ratio
4 Return on investment
5 Asset turnover ratio
VII
Jindal aluminium company
LIST OF GRAPH
SL Page
Table
No Number
1 Current ratio
2 Debt-equity ratio
3 Net profit ratio
4 Return on investment
5 Asset turnover ratio
VIII
Jindal aluminium company
EXECUTIVE SUMMARY
The main objective of the internship study is to aplly the theoretical knowledge in yhe
practical way in the organization. Also to know the organization working condition
and to understand and develop the McKenzie’s 7s model by getting the information
available in the organization.
The project includes industry profile, organization profile, porters five force model,
SWOT analysis and financial analysis.
IX
Jindal aluminium company
Chapter: 1
INTRODUCTION
Internship helps to develop individual to theory into practical work experience and
also develop professional work habits. it also provides an understanding of
professional culture gives an opportunity to analyze work place settings and offers
platforms to compare different in a work system.
Objectives of internship
INDUSTRY PROFILE
Introduction
India holds a fair advantage in cost of production and conversation costs in steel and
alumina. Its strategic location enables convenient exports to develop as well as the
fast-developing Asian market.
Market size
India is the 3rd largest producer of coal. Coal production in the country stood at 688.8
millions tones between April 2018-mar2019.
India ranks 4th in terms of iron ore production globally. In FY 18, production of iron
ore stood at 210 million tones, India has around 8 percent of world’s deposits of iron
ore. India becomes the world’s second largest crude steel producer in 2018 with an
output of 106.5 million tones.
in FY20.
Investment
Cumulative FDI inflows into the metals and mining sectors between April
2000 and December 2018 stood at US$ 14.65 billion as per the department of
industrial policy and promotion (DIPP).
GOVT INITIATIVES
FDI caps in the mining and exploration of metal and non-metal ores have been
increased to 100percent under the automatic route.
In July 2018,union minister of coal, railways, finance and corporate affairs
launched a mobile application khan prahari and coal mine surveillance and
management system(CMSMS) developed by central mine planning and design
institutes(CMPID)
National mineral policy 2019 launched for transparency, better regulation and
enforcement, balanced social and economic growth into the sectors.
ACHIVEMENTS
PEST ANALYSIS:
PEST analysis (political, economic, social and technological) is a management
method whereby an organization can assess major external factors that influence its
operation in order to become more competitive in the market.
Political factors:
Political factors are often related to the level of intervention and nature of intervention
of the local and national government in the business and economic environment.
Government policies and governance system playa a huge role in nature and
objectives of the policies.
Governance system: the present governance system in India Has served its
purpose for the long time and I don’t think much will change in the process
even though it may throw up leader that can lead divergent policy making
from the historical norm. Aluminium industries has to keep a close eye on the
industry wide government priorities to predict trends.
Political stability in the existing markets: aluminium industries operates in
numerous countries so it has to make policies each country based on the metal
mining industry specific requirements. Given the recent rise in populism
across the world I believe that India can see similar trends and may lead to
greater instability in the India market.
Regulatory practices: aluminium industries the to manage diverse regulation in
the various markets it is present in, over the last last few years India and other
emerging economies have changed regulations regarding not only market
entry but also how companies in metal mining can operate in the local market.
Taxation policies: it has resulted in high profits and increasing spending in the
research and development. The increasing inequality in India can lead to
change in the taxation policies, secondly local mining specific taxation to
contain the carbon footprint of the basic materials sector.
Economic factors
Economic factor includes- consumer disposable income, the stage of economy of
country name, economic performance of company name, taxation rate, interest rate,
labour market conditions, inflation rate, exchange rate etc….
Social factors:
Each society and culture has its own way of doing a business. social factors includes-
societal roles and norms, health and safety attitudes, demographics, attitudes towards
certain products and services, culture, acceptance of entrepreneur spirit, gender roles,
traditions etc..
Education level: the education level is high in India especially in the aluminium
industries sector. Aluminium industries can leverage it to expand its presence in
India.
Power structure: there is an increasing trend of income inequality in India. This
has altered the power structure that has been persistent in the society for over last
6-7 decades.
Attitudes towards health and safety: with increasing liberalization the attitude
towards health and safety are getting lax.
Technological factors:
Technology is fast disrupting various industries and sector name is no different. There
are numerous ways technological factors are impacting the company name and
industry name in country name. Some of the technological factors are- rate of
technology driven change, supply chain distribution because of technology, in
customer services, access to greater information, population access to technology.
Technology transfer and licensing issues for aluminium industries: in the basic
materials sectors there is no strong culture of technology transfer and
companies often are reluctant to transfer or license technologies for the fear of
creating competitors out of collaborators
Intellectual property rights and patents protection: if India have higher
safeguards for IPR and other intellectual property rights then more and more
players are likely to invest into research and development.
Empowerment of supply chain partners: technology has shortened the product
life cycle and it has enabled suppliers to quickly develop new products.
ORGANISATION PROFILE
Jindal aluminium limited (JAL) established its factory for manufacture of aluminium
extractions in the year 1968 at Bangalore. JAL has 10 aluminium extrusion presses
with an installed capacity of 1, 00,000 TPA. The company is the leader in aluminium
extrusions in India having produced about 50,268 MT during 2012-13 and it being the
largest manufacturer of aluminium extrusion, is meeting countries 25% of total
demand.
It is also exporting its products to several countries all over the world. JALs products
are well known for its quality and considered best among more than 100 aluminium
extraction manufacturers in the country, due to image, reputation and high quality, its
products command 10-15%premium in the market.companys present turnover is Rs.
900 crore, share capital and reserve are around Rs. 803 crore. Since beginning it is a
profit making company.
JAL has always advocated the use of clean energy; wide power is environment
friendly and a green technology. or 12.04MW wind power project, situated at
chitradurga district,200 km from Bangalore has made us self sufficient in terms of
power
Since inception Jindal aluminum has instituted and runs many charitable trusts /social
organizations through which it renders yeoman services to mankind. Philanthropy,
inculcated deep within has become a ways of life at JAL it is giving donations
regulatory to over 600 organizations and scholarships to more than 9500 students all
over India without any discrimination of cast and creed. Its trusts and societies are
having substantial funds to generate recurring income year on year for donations and
other charitable activities, continuing for decades.
Jindal aluminium has taken a step forward by diversifying into aluminum rolled
products up to 5.5 micron thick foils. This world class facility had been setup at
dabaspete, Bangalore, 35kms from the existing extraction plant. With an installed
capacity of 3000 TPM of sheets, foils, slugs, circles, house foils, casseroles, fan
blades and fin stocks etc
This simple process is the basis for producing aluminium plate, sheet and foil. The
most widely used in applications including aerospace (the skins of planes)
transportation (auto body sheets) packaging (can bodies and ends) and construction
(building facades).
Aluminium sheets are the most widely used aluminium products, not only daily life,
but also in industrial application. Its application in industry can be such as:
Aluminium sheet applications on the railway train is mainly used foe structure
panel, upper beam, eaves beam and bottom roof beam, truck parts, doors, window
and interior decoration, water tank etc…
Aluminium sheet used mainly in automobile manufacturing passenger car doors,
fittings, protection board, engine cover, front and back cover, car door and so on.
At present 5 series aluminium sheet is the most widely used type in boat industry.
5 series aluminium magnesium alloy is with high high strength, strong stress
resistance, corrosion resistance, can adapt to the marine environment, low density,
mainly used for high speed boats: hydrofoil, flying boats, sailing, sea patrol work
boat, car passenger ferry, etc..
Jindal aluminium limited is the only manufacturer in the country equipped with 11
extraction presses ranging from 6 extraction press container. With a whopping 1,
20,000 MTPA production capacity, we are known for our quality and commitment.
Our products are widely accepted by many segments such as, architectural,
electronics, electrical, transportation etc...
Jindal aluminium limited commissioned its flat rolled aluminium manufacting unit
near Bangalore, where it manufactures various alloys starting from the thickness
range of 0.009 mm up to 5 mm and catering to various industries. In a very short span
of time, we have become India’s second largest manufacturer of aluminium rolled
products, with a manufacturing capacity of 40,000 MT/annum.
RENEVABLE ENERGY:
2.1Ownership pattern
23%
promoters
foreign institutions
general publics
53% mutual funds
8%
15%
2.2Achievements/awards
Apart from being the first company in the entire aluminium extraction industry to win
the ISO 9001 certification, abs certification and HSB certification, Jindal has many
more first its credits:
BAUXITE
BUYERS PROCESS
ALUMINIUM OR
ALUMINIUM OXIDE
PURE ALUMINIUM
Chapter: 3
Mckensy’s 7S framework
2.1Introduction to McKenzie’s 7S framework
While some models of organizational effectiveness go in and out of fashion, one that
has persisted is the Mckineys 7s framework. Developed in the early 1980s by tom
peters and Robert waterman, two consultants working at the Mckineys and company
consisting firm in United States to diagnose the causes of organizational problems and
to formulate programs for improvement. The basic premise of the model is that there
are seven internal aspects of an organization that need to be aligned if it to be
successful.
7s factors
Hard S Soft S
Strategy Style
Structure Staff
System Skills
Shared values
The 7s frame work of McKenzie’s is a value based management model that describes
how one can holistically and efficiency organize a company.
These are 7 basic dimensions which represent the core managerial activities.
These are the levels which the executives use to influence complex and large
organizations. Together these factors determine the way in which a corporation
operates the 7s in the model are as follows.
Mckineys and companies framework provides useful framework for analyzing the
strategic attributes of an organization. The Mckineys consulting firm identified
strategy as only one of seven elements exhibited by the best managed companies.
Strategy, structure and system can be considered the hardware of the organization,
while style, staff. Skills and shared values can be considered as the software of the
organization.
I. STRUCTURE
Introduction:
Organization structure refers to the formal relationships among various positions and
activities performed in the organization. Organization structure involves arrangements
about reporting relationship, line of communication, rules and procedures which exist
to guide the various activities performed by various hierarchical position in the
organizational structure.
Structure represents the way of business divisions and units are organized. Its also
shows the clear picture about all departments of organization.organozation pattern
defines the pattern of relationship among the component of the organization.
Organization is a diagrammatic representation of management position departments.
a. Organization Structure
RDSS division
GRP
IP cell
Administrative
functions, HR and IR
SS RC research group
Metallographic RTG
IFA Research group
laboratory
SMC Research group
Physical laboratory
Product
Research group
CMT laboratory
CP
Research group
Chemical laboratory
MCJ
Plant metallurgical Research group
inspection group MMPD
Research group
Research application
FINANCE DEPARTMENT
Financial manager
Accountant
Staff
HR executive
Office staff
Marketing manager
Sales officers
Sales persons
Marketing planning
Gathering and analyzing market information
Standardization and grading
Product designing and development
Packaging and labeling
Customer support services
After-sales services
Handling customers complaints
Technical service
maintenance
II. SYSTEMS
Introduction:
Systems are the processes and information flow system refers to the rules, regulation
procedure both formal and informal that complement the organization structure. This
includes the way the functions of different departments are carried out.
The supporting systems and process of the firm, like information system, financial
reporting, payment system, resource allocation etc...
Finished goods, semi finished goods and work in progress is valued lower than cost
and net realizable value. Cost for this purpose includes direct materials, direct labours,
excise duty and appropriate overheads for bringing the inventory to its present
location and condition.
Functions of HR department
Hiring
Retaining
Administration
Managing payroll
HR planning
Recruitment
Performance record
Absent management
Employee self services
Employee resign module
Employee’s grievance holding.
III. STRATEGY
Introduction:
It is a plan where the company has to double the production in next five years. it is
bulk manufacturing strategy which continuously trying to reduce the overall cost of
the products including manufacturing, administrative, finance and rather over heads.
Its create a objectives and trying to precautions taken for to fulfill this objectives.
The long term strategy adopted by the company to attain the entire above objectives,
quality plays a very important role. To earn the trust of the customers the company is
using high quality components to its products, timely delivery and best services.
IV. Skills
Introduction:
Employers look for a range of skills in graduate applicants, many of which are
common to a number of different career areas. Those must frequently mentioned are
communication, team working, problem solving, initiative, flexibility and enthusiasm.
Many skills overlap with in another.
Managing the surplus manpower with a human touch has and always will be the
cornerstone of the HR policy of Jindal steel. in times to comes, certain modifications,
may have to be made in view of economic consideration. But the underlying
philosophy as envisaged by the founder has a stamp of permanence in Jindal steel.
The factors that helped the success of rightsizing at Jindal steel could be summarized
as under:
Cultural issues
Leadership
Open and collaborative leadership.
Identification of key leaders (drivers of change) and development of soft skills
in handling the delicate process of redundancy.
V. STYLE
Introduction:
It means how managers behave in organization. Style refers to the workers joint and
ordinary way of idea and behaves underwritten norms of actions and thought, styles
that is the model of act taken an era of time.
Decision making is coordinated one and done with wide consultation of top
management, which gives best possible games.
It means how managers behave in organization. It refers to the workers joint and
ordinary way of idea and behaves unwritten norms of actions and thought, styles that
is the model of act taken an era of time.
VI. STAFF
Introduction:
They are the human resources of organization who ensures their potential in
contributing for accomplishing organizational goals.
Jindal Company is more concerned towards skills of work force, so it mainly targets
towards the quality of human resources during selection process. They check
academic reports, learning ability of candidate and technical skills held by individual.
The company also conducts periodical training and development for employees to
maintain the capabilities of employees to meet the future requirements.
The employees of JAL are from the educational background of diploma, ITI. PUC
and degree etc…
Particulars No of employees
Production 712
H/R 12
Marketing 17
Finance 20
Total 761
Shared Values
Introduction:
Shared value means that the workers divide the common guide value. Value is the
belongings that the business would struggle for value act at institute principles.
Provided that management in times of emergency. Identify commercial principles is
also the first necessary step in defining the organizations role in the huge society.
Shared values guide employees towards desired behavior originally called super
ordinate goals, the guiding concepts and principles of the organization- values and
aspiration, often unwritten-that go beyond the conventional statements of corporate
objectives. The fundamental ideas around which a business is built; the things that
influence a group to work together for a common aim.
The shared values must be explicitly stated as both corporate objectives and
individual values. The core values of Jindal Aluminium Company are as follows:
Reliability
Commitment
Ethics
Excellence
Unity
Responsibility
The company aims at providing a safe working environment by incorporating the best
practices in safety sat all the company locations, thus safeguarding the overall
wellbeing of the company employees. The quality policy of the company is to achieve
customer delight through excellence in equity in all the products, processes and
services to emerge as a leading player.
Introduction:
The model of pure competition implies that risk-adjusted rates of return should be
constant across firms and industries. However, numerous economic studies have
affirmed that different industries can sustain different levels of profitability; part of
this difference is explained by industry structure.
RIVALRY:
In the traditional economic model, competition among rival firms drives profits to
zero, but competition is not perfect and firms are not unsophisticated passive price
In pursuing an advantage over its rivals, a firm can choose from several competitive
moves, such as:
A larger number of firms: increase rivalry because more firms must compete
for the same customers and resources. The rivalry intensifies if the firms have
similar market share, leading to a struggle for market leadership.
Slow market growth: causes firms to fight for market share. In a growing
market, firms are able to improve revenues simply because of the expanding
market.
High fixed costs: result in an economy of scale effect that increases rivalry.
When total costs are mostly fixed costs, the firm must produce near capability
THREAT OF SUBSTITUTES
Chapter: 4
SWOT – ANALYSIS
4.1Introduction to SWOT Analysis
SWOT analysis is an acronym for strength, weakness, opportunities, and threats.
It is one of a structured planning method to evaluate four elements to carry out of
a company. Product, place, industry and person.
SWOT analysis is very important to analyzing company situations the objectives
also develops strategies. Its help to maximize company strengths and maximize
the weakness in order to take advantages of external opportunities and overcome
threats.
4.2Strength of Jindal company
Operates the largest coal-based sponge iron plant in the world.
Sports a product portfolio that caters to varied needs in the steel market.
Has force of innovation, adaptation of new technologies and the collective
skills of its 15,000 strong, committed work force.
Produces economical and efficient steel and power through backward and
forward integration.
Has an enterprising spirit and the ability to discern future trends.
Has operations in steel, iron, electricity generation and distribution.
Chapter: 5
ANALYSIS OF FINANCIAL STATEMENT
5.1Introduction to Financial Statement Analysis
MEANING
5.2Ratio Analysis:
5.4.1 Introduction to ratio analysis:
Ratio analysis is used for analyzing and interpreting financial statements. It also
helps in decision making process by providing useful inference. The most popular
way to analyze the financial statements is computing ratios. It is an important and
widely used tool of analysis of financial statement. While developing a
meaningful relationship between the individual items or group of items of balance
sheet and income statements, it highlights the key performance indicators, such as,
liquidity, solvency and profitability of a business entity. The tool of ratio analysis
performs in a way that it makes the process of comprehension of financial
statements simpler, at the same time, it reveals a lot about the changes in the
financial condition of a business entity.
Current ratio
The current ratio is a liquidity ratio that measures a company’s ability to pay short-
term obligations or those due within one year. It tells investors and analysts how a
company can maximize the current assets on its balance sheet to satisfy its current
debt and other payables.
Current asset
Current ratio=
Current liabilities
[Rs000]
Current Ratio
0.46
0.45
0.44
0.43
0.42 Current Ratio
0.41
0.4
0.39
0.38
0.37
0.36
2017- 18 2018- 19
INTERPRETATION
It can be observed that the current ratio in 2018-19 is 0.45 its increasing when
compared to previous year but the company is not maintain a industry standard. The
company is in trouble. The company should go for additional finance. The company is
high risky position.
The quick ratio is considered a more conservative measure than the current ratio,
which includes all current assets as coverage for current liabilities. The higher the
ratio result, the better a company's liquidity and financial health; the lower the ratio,
the more likely the company will struggle with paying debts.
Quick assets
Quick ratio=
Current liabilities
The debt- equity ratio is calculated by dividing a company’s total liabilities by its
shareholder equity. These numbers are available on the balance sheet of a company’s
financial statement.
Debt
Debt equity ratio=
Shareholders equity
[Rs000]
Year Debt Shareholders’ Debt equity ratio
equity
INTREPRETATION
It can be observed that from the above table and graph the debt equity ratio of Jindal
Aluminium Company is in the year 2018 it was 0.7017 and in the year 2019 it was
0.5426 less debt equity shows that company is in financially stable position. So the
company should maintain DER 1:1 as per the industrial norms.
Return on investment is a ratio between net profit and cost of investment high ROI
means the investments gains compare favorably to its cost. as a performance measure,
ROI is used to evaluate the efficiency of an investment or to compare the efficiencies
of several different investments.
Net profit
Return on investment = × 100
Total investment
0.00%
2018 2019
-0.50%
-2.00%
-2.50%
-3.00%
-3.50%
Interpretation
It is observed from the above graph the ROI of Jindal aluminium company we can see
that there is a negative return in the year 2019 it was (2.87) when compared to the
previous year 2018 it was 0.04. Because decrease in the total asset of a company. So
company should concentrate for increase its total assets. The company is not in good
position.
Asset turnover ratio
Channabasaveshwara Institute of Technology, Gubbi 45
Jindal aluminium company
The asset turnover ratio is an efficiency ratio that measures a company’s ability to
generate sales from its assets by comparing net sales with average total assets. In
other words, this ratio shows how efficiently a company can use its assets to generate
sales. The total asset turnover ratio calculates net sales as a percentage of assets to
show how many sales are generated from each dollar of company assets. For instance,
a ratio of .5 means that each dollar of assets generates 50 cents of sales.
0.8
Asset turnover ratio
0.6
0.4
0.2
0
2018 2019
INTREPRETATION
It can be observed that from the above table and graph the asset turnover ratio of
Jindal Aluminium Company is in the year 2018 it was0.62 and in the year 2019 it was
0.98 the asset turnover ratio is showing an increasing trend. High asset turnover ratio
will indicates company as generated more sale with its asset.
Net profit ratio (NP ratio) is a popular profitability ratio that shows relationship
between net profit after tax and net sales. It is computed by dividing the net profit
(after tax) by net sales.
net profit
Net profit ratio= ×100
net sales
0.50%
0.00%
2018 2019
-0.50%
net profit ratio
-1.00%
-1.50%
-2.00%
-2.50%
-3.00%
-3.50%
Interpretation:
It is observed from the above graph the Jindal aluminium company net profit ratio is
decreased in the year 2019 (2.9316) when compared to previous year 2018 it was
0.6449. company is not in good position because of decrease in net sales the company
is in efficient management and high cost not strong pricing strategy.
Chapter: 6
LEARNING EXPERIENCE
I got practical exposure on the synchronized organization flow at JAL and also an
insight into its effective workflow process in each of its departments. I learnt how the
company’s objectives and strategies collectively achieved by his functional process
and how the company’s objectives is divided into its functional processing a good
relationship between the employees,. Many facilities are given to the employees for
effective working and proper functioning of their work. This gave me an exposure
into how job satisfaction, employee morale and organizational environment are vital
for the development of positive.
BIBLIOGRAPHY
www.JAL.in
www.ibef.com
Wikipedia
www.money control. Com
ANNEXURE
Balance sheet of the JAL for the year ended 31st march...
[000]