CAHPTER - 2

COMPANY PROFILE

HISTORY OF THE COMPANY

A Grasim industry limited was incorporated in 1948; Grasim is the largest
exporter of Viscose Rayon Fiber in the country, with exports to over 50 countries.
Grasim is headquartered in Nagda, Madhya Pradesh and also has a plant at Kharach
(Kosamba. Gujarat) and Harihar, Davangere in the state of Karnataka Indo-Thai
Synthetics Company Ltd was incorporated in 1969 in Thailand, started operations in
1970, this was Aditya Birla groups first foray into international venture.

Aditya Birla groups incorporated P.T. Elegant Textiles in 1973 in Indonesia.

That Rayon incorporated in 1974, this was the second company in Thailand, operating
in Viscose Rayon Staple Fiber. Century Textiles Co. Ltd is taken over by Aditya Birla
group in 1974; this company is a weaving and dyeing plant manufacturing and
exporting variety of synthetic fabrics. PT Sunrise Bumi Textiles incorporated in 1979,
it produces yarn exported over 30 countries in 6 continents. P.T Indo Bharat Rayon
incorporated in 1980 produces Viscose Staple Fiber in Indonesia.

Thai polyphosphates and Chemicals was started in 1984 in Thailand to

produce Sodium Phosphates, and has merged with Thai Epoxy and Allied Products
Company limited (1992), Thai Sulphites and Chemicals Company limited (1995) to
form Aditya Birla Chemicals ltd.

This company supplies to sectors such as food, textiles, electrical and

electronics, composites, leather, plastics and automobiles. PT Indo Liberty Textiles
was incorporated in 1995 to manufacture synthetic spun yarn. In late 1990s and later,
the focus was the textile business following the end of Multi-Fiber Arrangement
(MFA). AV Cell Inc., a joint venture between Aditya Birla Group and Tembec,
Canada, established operations in 1998 to produce softwood and hardwood pulp for
the purpose of internal consumption among different units of the group. Together,
Grasim Industries Ltd, and Tembec, Canada acquired AV Nackawic Inc., which
produces dissolving pulp. Grasim Industries Ltd, supplies Viscose Staple Fiber (VSF).
The Aditya Birla Groups VSF manufacturing plants are in Thailand, Indonesia, India
and China. The Groups VSF business operates through its three companies – Grasim
industries in India, Thai Rayon Corporation in Thailand and Indo Bharat Rayon in
Indonesia, which also oversees its Chinese operations of Birla Jingwei Fibers, China.
In 2003, its Chemical Division was awarded the “Best of all” Rajiv Gandhi National
Quality Award. Grasim sponsored Grasim Mr. India event from 1994 to 2012 that
sent the winner to compete in international events like Mister international and Mister
World.

Origin of the Aditya Birla Group

By the Birla group reference is made to one of the foremost business houses in
India headed by the Birla family for generations. Its business interests are vast and
varied ranging from petrochemicals and textiles to automobiles and infocom as well
as financial services.

The story of the Birla group goes back to 1870 when Seth Shiv Narayan Birla,
belonging to the Marwari community of West Rajasthan, set up a cotton and jute
trading business in Pilani, Rajasthan. In the 19th century Baldeo Das Birla, son of
Shiva Narayana Birla, moved to Calcutta. At that time Calcutta was the hub of
activity of the British Empire and consequently the nascent Freedom Movement. The
Birla’s are proud of their closeness and support to the movement and was very near to
Mahatma Gandhi. Even today, about two hundred years after the beginning of the
Birla story, the name is identical with not only with wealth and power but also with
dignity and respect. Business runs in their veins and each generation has been a credit
to the legendry name of Birla.

In 1919 the Ghanashyam Das Birla, one of the four sons of Baldeo Das Birla,
set up jute mills in West Bengal and thus laid the foundation for the beginning of the
Birla industrial empire. In 1947 the Birla’s set up Grasim weaving plant and from
1958 added rayon to the list.
 Aditya Birla, grandson of Ghanashyam Das Birla, continued successfully with
the legacy he had inherited. In 1969 he began to take giant strides outside India
targeting international expansion. In Thailand the Birla’s set up Indo-Thai synthetics.
It was followed in 1978 by Carbon Black production also in Thailand. In 1988 Indo-
Gulf was formed under the name of Hindalco for production fertilizers. Unfortunately
in 1995 Aditya Birla died.

The son of Aditya Birla, Kumar Mangalam Birla, picked up the Birla flag. As
part of the first step towards streamlining and restructuring AT & T was formed in
1998 Indo-Gulf copper production started. In the same year Birla entered Canada with
the purchase of Atholville Pulp Mill in New Brunswick. In 1999 Birla forayed in to
the financial arena and entered in to joint venture with Canada’s Sun Life. The
beginning of the new century saw Birla AT& T merge with Tata Communications.
Hindalco acquired India. In 2002 Indo Gulf fertilizers started and Anapurna Foils was
acquired by Birla. Liaonig Birla was started as the beginning of a joint venture with
China in the field of carbon black. Indal merged with Hindalco the following year. A
new aluminium venture was started in Orissa in 2005. In the same year St. Anne
Nackawic Pulp Mill is acquired in Canada. Plans are now afoot to set up a new
viscose stable fiber plant in Laos.

The Birla group has aptly laid out its objectives to be a premium international
conglomerate with a clear focus on each and every business unit. Birla’s mission is to
deliver the very best to its customers, shareholders and employees bearing in mind its
commitment to the welfare of society at large. Birla values are all about integrity,
commitment, zeal, seamlessness and speed.

Kumar Mangalam Birla, born in 1967, the chairman of the Aditya Birla
Group, is bearing the Birla torch with credit. Fortune magazine has listed him as the
eighth youngest billionaire outside India. He is running major companies such as
Grasim, Hindalco, Ultra Tech Cement, Aditya Birla Nuvo and Idea Cellular. JV’s
include Birla Sun Life (financial services) and Birla NGK (Insulators). He is the
Chairman of the entire blue chip companies group in India and serves as director on
the board of the group’s international companies stretching across Thailand,
Indonesia, Malaysia, Philippines and Egypt. The wide circle includes Canada, China,
Laos, USA, UK and Australia. Kumar Mangalam Birla is also on the board of G.D.
Birla Medical research and education Foundation and member of the Board of the
governors of BITS, Pilani. He is a member of London Business School’s Asia Pacific
Advisory Board, which counsels on strategy and curriculum. He is honorary fellow of
London Business School. The media has not been left behind in heaping him with
accolades. Both NDTV and Hindustan Times have voted him as the Businessman of
the Year.

COMPANY PROFILE
GRASIM INDUSTRY KUMARAPATTANAM (HARIHAR)

Type Public company (BSE: 500300) (NSE:GRASIM)

Industry Building materials

Founded Mumbai (1948)

Headquarters Mumbai, Maharashtra, India

Area served Global

Key people Kumar Mangalam Birla

Products Fiber and pulp, chemicals, cement and textiles

Revenue 221 billion (US$3.3 billion)(2011)[1][not in citation

given]

Net income 20.71 billion (US$310 billion)(2011)[1][not in citation

given ]

Total assets 257 billion (US$3.8 billion)(2011)[citation needed]

Number of employees 6.568(2011)[citation needed]

Parent Aditya Birla Group

Subsidiaries Ultra Tech Cement

 Grasim Bhiwani Textiles
Website www.grasim.com
BOARD OF DIRECTORS
 Mr. Kumar Mangalam Birla. Chairman
 Mr. B. V. Bhargava
 Dr. Thomas M. Connelly
 Mr. O. P. Rungta
 Mrs. Rajashree Birla
 Mr. Arun Kannan Thiagarajan
 Mr. N. Mohan Raj
 Mr. Dilip Gaur (Managing Director )
 Mr. M. L. Apte
 Mr. Cyril Shroff
 Mr. shailendra K. Jain
 Mr. Sushil Agarwal

VISION, MISSION AND VALUES OF THE STUDY

 VISION
To be the leading producer and exporter of premium quality spun yarn
globally Mission to deliver superior value to our customers, shareholders, employees
and society at large

VALUES
 Integrity: - Honesty in every action
By always striving to act in a manner that is fair and honesty, we adhere to the
highest standards of integrity and professionalism in everything we do.

 Commitment: - Deliver on the promise

With integrity as our foundation, we are committed to doing whatever it takes
to deliver value to all stakeholders by taking responsibility for our own actions and
the collective actions of the ABYTM team.
Passion: - Energized action
 We bring a definitive passion to our relentless pursuit of shared goals and
objectives, an energetic sense of engagement that is evident in our great enthusiasm
for cooperative performance.

 Seamlessness: - Boundary less in letter and spirit

We endeavor to think and work seamlessly by leveraging the value of our
shared beliefs and best practices across functional, business and geographic
boundaries.

 Speed: - One step ahead always

By responding to the needs of our customers and partners with focused
urgency, we continuously seek to accelerate performance and shorten delivery
timelines for optimum speed and efficiency.

SWOT ANALYSIS
STRENGTH
 Reduced labor costs
 High profitability and revenue
 Strong brand recognitions
 Internet sales
 Growing international presence
 Strong financial returns
 Effective leadership
 Product innovation capabilities
 Technological excellence

WEAKNESS
 Structure
 Market size
 Complexity of operation
 Lengthy processing chain
OPPORTUNITY
 Growing demand
 Growing economy
 Growth of core sector industries
 Growing e-commerce business
 Increasing urbanization

THREATS
 Government regulations
 The impact of foreign currency fluctuation and interest rates.
 Loss of sales to substitutes

AWARDS AND ACHIEVEMENTS

Year Awards and Achievements

1995 Awards for outstanding contribution in the field of labours relations by

IMC, Mumbai

1998 Certificate conferred on the unit of implementing environmental

management system

[EMS] in accordance with ISO 14001 standards by RUL TUV, Germany

2000 The Aditya Birla Group Award for the Manufacturing Excellence [Bronze
Medal]

2001 Certificate conferred on the unit of implementing quality manufacturing

system in accordance with [150900/2000] revised standards by RUL TUV,
Germany.

2001 A certificate for obtaining ISO 901 certification.

2001 201 certificates conferred on the unit of implementing health and safety
management system [OHSMS] in with OHSAS: 1801 standards by
 RULIUN, Germany.

2002 Environment protection case study ranked 2nd out of 8 aspirants as national
level by TERI and published in financial express of 4th April 2002

2004 Winner of WCM group worldwide regional competition

2006 1 – Greentech environmental excellence award by greentech foundation.

2 – Young achiever award to Mr. Rakesh Jha from the Aditya Birla group.

2007 IMC Ramakrishna Bajaj national quality special award for performance
excellence 2007 in the manufacturing category.

2009 Environmental best practices award 2011 for the project use of biogas in
limekilns to reduce furnace oil consumption.

2010 Ranked 2nd for best corporate governance practices in Asia – specific IR
global rankings also ranked best company in corporate.

MAJOR COMPETITORS
 Hindalco industries ltd.
 Adityass Birla Nuva ltd.
 Ultra tech cement ltd.
RODUCTS PROFILE
PRODUCTS AND SERVICES OFFERED BY THE COMPANY:
 Viscose staple fiber (VSF)
 Grey cement
 White cement
 Fertilizers
 Chemicals
 Mining
 Fatty Alcohol /Fatty Acids
 Insulators
 Software
 BPO
 Finance and insurance
 Retail
 Sponge iron and
 Textiles.

DEPARTMENTAL STUDY
The company consists majorly of 5 departments:
1. Human resource management
2. Finance and accounts
3. Electrical and instrumentation
4. Mechanical
5. Quality, world class manufacturing and safety

Human Resource Management:

Human resource management is the planning, organizing, directing, and

controlling of the procurement, development, compensation, integration, maintenance
and reproduction of human resource to the end that individual, organizational and
social objectives are accomplished”.
Objectives of Human Resource Development:

 To make the organization people to acquire power to perform the different

type of work that may come in their way at present or in future
 To developing the inner hidden talent of individual workers which may be
used for the development of the organization
 To develop team work among the workers and an organization culture which
helps the organization to grow and make the individual workers to be
dynamic. Human resources should become the pride possession of the
organization
 Another objective is to develop employee capabilities according to the needs
of the organization and according to the areas of the organization

FINANCE AND ACCOUNTS:

 Purchase requisition:
Following steps are taken into consideration while placing the order to suppliers
 Requirement from the department
 Concern department will rise the purchase requisition in SAP
 Minimum three quotation is required
 Compare the chart as per the requirement
 Placing the order to the best supplier
Supply to the store within 15 days, 7 days or 30 days as per the schedule prepared
by them. Marketing activity: In this activity their job is to Fright Bill passing to
Transporters.

ELECTRICAL and INSTRUMENTATION:

ELECTRICAL:
 Supply and Control of Electricity in the plant
It is taken care by electrical department particularly qualified persons like
technical engineer. Regular checkup should be done periodically in order to have an
smooth functioning in the plant.
 MECHANICAL:
In this department all the works are done through mechanically from
unloading of Raw Cement to dispatch of cement bags which are having a capacity of
49.7 KG to 50.2 KG

There are Four Silos in UltraTech Cement Ltd., in that three were used for
OPC cement product and One for PPC cement product.

ORGANISATION STRUCTURE

BUSINESS DIRECTION

HEAD PILP OPERATIONS

V P COMMERCIAL V P TECHNICAL V P HRM

HRD P & IR SECURITY TIME OFFICERRURAL DEVELOPMENT

Management team of Grasim Industries

GM
Mr. Kumar Mangalam Birla (49) is the Chairman of the US
$41 billion multinational Aditya Birla Group. This operates in 36

MANAGER countries across six continents. Over 50 percent of its revenues flow
its operations outside India. Mr. Birla chairs the Borads of the
Group’s major companies in India and globally. Its clutch of global
OFFICER compnies features Novelis. Birla Carbon, Aditya Birla Chemicals,
Thai Carbon Black Alexandria Carban Black, Domsjo Fabriker and
Terrace Bay Pulp Mill, among others. In India, he chairs the Borads
of Hindlco, Grasim, and ultraTech, Idea, Aditya Birla Capital and
Aditya Birla Retails.
MCKENSY’S 7S FRAME WORK:

3. THE MCKENSEY’S 7S MODEL

McKinsey’s 7S model provides a useful framework for analyzing the

strategic attributes of an organization. The McKinsey’s 7S model developed by
two persons Tom Peters and Robert Waterman. They were working as consultants
at McKinsey and Co. at that time. The McKinsey Consulting Firm identified
strategy as only one of seven elements exhibited by the best-managed companies.

Strategy, structure and systems can be considered as the “ hardware” of

Success while style, staff, skills and shared valued can be seen as the “software”.
Companies, in which these soft elements are present, are usually more successful
at the implementation of strategy.

THE MCKENSEY’S 7S MODEL IS AS FOLLOWS

The hard elements of Mckensey’s 7S model are feasible and easy to identify.
They can be found in strategy statements, corporate plans, organizational charts and
other documentations.
 The four soft S’s however, are hardly feasible. They are difficult to describe
since capabilities, values and elements of corporate culture are continuously
developing and changing. They are highly determined by the people at work in the
organization. Therefore it is much more difficult to plan or to influence the
characteristics of the soft elements. Although the soft factors are below the surface,
they can have a great impact of the hard structures, strategies and systems of
organization.

The 7S’s are:

 Structure
 Skills
 Style
 Strategy
 Systems
 Staff
 Shared value

Structure
The organization (e.g. hierarchical or flat ) as well as the group and ownership
structure is included here. Also note Porter’s categorization of group structure:
Efficient Allocation of Capital, Allocation of Resources, etc.

Management:
The Aditya Birla Management Corporation Limited is the Group's apex
decision- making body and provides strategic direction to Group companies

Skills:
Skills refer to the fact that employees have the skills needed to carry out the
company’s strategy. Training and Development- ensuring people know how to do
their jobs and stay up to date with the latest techniques.
Style:
Style refers to the employees shared and common way of thinking and
behaving unwritten norms of behavior and thought:
 Leadership Style
 Organizational Culture

Strategy:
The integrated vision and direction of the company, as well as the manner in
which it derives, articulates, communicates and implements that vision and direction.

The Grasim Industry is a worldwide leader in viscose staple fiber (VSF), and it
is a largest producer of white cement in India. The Birla White Cement division
changed its slogan from “Whitest White Cement” to “My Kind of Design”. The
company is having many products, which are produced by using the white cement,
differentiates company products from competitors product.

Systems:
The decision-making system within the organization can range from
management intuition, to structured computer systems to complex expert systems
and artificial intelligence. It includes
 Computer systems
 Operational Systems
 Marketing Systems
 HR Systems etc.

Staff:
Staff means that the company has hired able people, trained them well and
assigned them to the right jobs. Selection, training, reward and recognition, retention,
motivation and assignment to appropriate work are all key issues.

Grasim Industry entry-level staff are recruited from premier Management and
Engineering institutes through campus recruitment. Each regional unit head visits the
management and an engineering institute located in their area and does the
recruitment for the company. In entry-level fresher and people with one year or less
than that also considered. Each unit specifies the number and type of people required

Shared Values
Shared values means that the employees share the same guiding values.
Values are things that you would strive for even if they were demonstrably not
profitable. Values act as an organization’s conscience, providing guidance in times
of crisis. Identifying corporate values is also the first essential step in defining the
organization’s role in the larger community in which it functions.