Bapuji Educational Association (Regd.

,)
MBA Programme
Bapuji Institute of Engineering & Technology, Davangere
(Affiliated to Visvesvaraya Technological University, Belagavi & Approved by AICTE, New Delhi
NAAC Accredited With ‘A’ Grade
P.B No. 311, Lake View Campus, S.S.Layout, Davangere-577004, Karnataka. INDIA

Internship presentation on;

Smitha Enterprises
Internal Guide: External Guide: Presented By:

Prof.Prakash Alalageri Arun Kumar S Namitha Hamsagar

Asst. Professor Proprietor 3rd Semester MBA
BIET MBA Programme Smitha Enterprise USN: 4BD20BA071
Davangere-577004 Harihar- 577601 BIET MBA Programme
 Foundry business since – 1996

 Situated in - HARIHAR

 Products Manufactured –
 Cylinder Liners
 High Chrome Castings
 General Castings

 Founder & M.D. – Mr. ARUN K S

 Company develop any casting in –

• SG IRON
• CAST IRON
• HIGH CHROME
 CHAPTER - 1 INTRODUCTION TO INTERNSHIP :

Benefits of an Internship:

Developing personally and professionally while gaining

confidence and real world
experience.

Meeting and networking with practitioners in one's area of

interest.

Linking academics and practices.

Developing relations with industry people.

Developing a platform of Industry Institute Interface.

Here are a few of reasons I can take away from an internship

given by our Esteemed
INDUSTRY PROFILE:

Foundry history:

•The foundry industry, also known as the casting industry, plays the role of a
'mother' industry in India.

•It is a core industry producing cast metal components which serves as a basic
raw material for many sectors.

•Production of castings in India took a dip in 2008-09 due to the global economic
crisis but has recovered strongly in 2010-11.

•Growth in the industrial sector, post-recession ,especially in manufacturing

activities, has given a boost to the foundry industry
 CHAPTER -2
COMPANY PROFILE
2.1 BACKGROUND:

Owner name- Mr. Arun kumar S

Address- Plot no. 8 Industrial estate Harihar 577601
Tel no- 08192 - 242341
Year of est. - 1996
Weekly off- Sunday
Total area covered for storage - Around 1/2 hectare
Type of industry - Manufacturing
Type of engine block produced - Oil cooled engine block, air cooled
engine block, liquid cooled engine block.
List of major machine -
 NC Turning machine-8
 Air sizing-1
 Vertical boring -1
 SPM-5

List of major inspection machine- Surface testing machine, Ferro lab

Product range - 80,100,125,150,200,250,350,500 (cc) bore
Total no. of employee - Around 100 employee where 10 are technical employee.
Products :

Castings enable many pieces to be combined into a single part eliminating assembly and
inventory and reducing costs by 50% or more compared to machined parts.
The desired dimensional accuracy and surface finish of castings can be achieved by the
choice of process and its control. Castings can range in size from a few grams to several
ton, from simple to intricate shapes and order size.

Technology used:
Foundries across India are presently undergoing up gradation of facilitate sand
technology in a bid to improve their productivity and increase capacity.

The Indian foundry industry, which is looking at doubling annual castings production to
about 20 million tonne by 2020, has urged the central government to set up.

Technology Up gradation Fund (TUF) with corpus of Rs 200 billion to

Help modernize the sector. To maximize export potential, foundries up world class
production facilities equipped With computer numerical control (CNC) machines.
NATURE OF BUSINESS:
Our Process
We follow this process to provide satisfaction to our esteemed clients:
Order to Smitha Enterprises.
Finished Drawing from consumer,
Samples from customers
Tool construction design
Approval of tool design
If OK, then do CNC Programming and go to further process, else Engineering
Review and go back to tool construction design
Machining
Parts Processing
Bench Work
3D Measurement
Hard and Ground on customers demand
Die Matching
Diamond Polish
Assembly
Trial Test
Sample's Approval
Inspection and Check
Finishing & Assembly
Packing & assembly
After Sales Service
VISION, MISSION & QUALITY POLICY:

VISION:

"To build their own identity in automobile market and enter into the global market in
future days"
This vision will be met by,
Attaining Market leadership by exceeding Customer expectations and outperforming
competitors in Quality, Delivery and Cost.
By our on going commitment to Continual Improvement of our Products.

MISSION:

"Smitha Enterprises has a Mission to be India's leading

Manufacturer & Supplier of Quality cylinder blocks"

We aspire to develop and build lasting business relationships with

customers by integrating our core values of durability,
accuracy, reliability and excellence into every order.
QUALITY POLICY:

CUSTOMER SATISFACTION - Pursue excellence in everything we do as a

company and achieve it through continual improvements in all areas leading to
internal and external customer satisfaction.

EMPLOYEE DEVELOPMENT - Develop and support a motivated team of

employees through continual training at all levels, to in still a sustained sense of
involvement, growth and achievement.

PERFORMANCE MONITORING- Monitor our performance and strive to

achieve higher goals.

SUPPLIER QUALITY ASSURANCE - Guide and support Suppliers to ensure

the requisite quality of purchased materials.

MEASUREMENT - Measure the achievement of objectives against the well-

defined goals charted out in Business Plan.
OWNERSHIP PATTERN:
A sole proprietorship, also known as the sole trader or simply a proprietorship,. The
owner is in direct control of all elements and is legally accountable for the finances of
such business and this may include debts, loans, loss, etc.

'Mr.Arun kumar' has the various benefits being a sole trader:

Control - He maintain full control of their business without any interference
Profit retention - He retain all the profits of their business.

Private data - Information about sole traders is kept private, unlike that of limited
companies which is necessarily made public after registration with Companies House.

Specialist - He offers more personal services with local roots and ties.

Can be more appealing to potential customers in the local community.

Personal Because there is no need to confer with other decision makers, he

makes decisions quickly and act on them swiftly, providing for the needs of
their customers.
CERTIFICATIONS :
It is also accredited with ISO 9001: 2000 certificate issued by Orion Registrar Inc.,
USA.

NATIONAL CLIENTS:
1. Mahindra-LCV Division in Zaheerabad.
2. Brakes India Ltd - Chennai
3. Autolec India Ltd - Chennai
4. Addison Company Ltd - Chennai
5. Medha Railway Engg --Railways Brake Assembly System
6. Prag Rubber Industries- Railways Brake Assembly System

INTERNATIONAL CLIENTS:
1. Nation Wide Trailers, Missouri.
2. Tiger Axels, Shreveport DWY Trailers, Bradford.
 CHAPTER -3
MCKENSY'S 75 FRAMEWORK
Objective:
To analyze how well an organization is positioned to achieve its intended objective.
Usage:
1.Improve the performance of a company.
2.Examine the likely effects of future changes within a company.
•Align departments and processes during a merger or acquisition.
•Determine how best to implement a proposed strategy.

Hard Elements
1. Strategy - Purpose of the business and the way the organization seeks to enhance
its competitive advantage.
2. Structure - Division of activities; integration and coordination mechanisms.
3. Systems - Formal procedures for measurement, reward and resource allocation.

Soft Elements
1. Skills - The organization's core competencies and distinctive capabilities.
2. Staff - Organization's human resources, demographic, educational and attitudinal
characteristics.
3. Style - Typical behaviour patterns of key groups, such as managers, and other
Professionals.
 MCKINSEY 7S FRAMEWORK AND ITS IMPLEMENTATION

AT SMITH ENTERPRISES:
“Getting this balance right means getting the culture right"
1.STRUCTURE:
Organization Chart

Manager Accountant

Production
Incharge

Lab
Product supervisor
In-Charge

Helpers Operators Inspection

2. STRATEGY:

The top level of Smitha enterprises is to create core competencies and focus on
Marketing.

Some main strategies being used at Smitha Enterprises are:

Reduction of Cost
Reduction of Inventory Stock
Simplification of Manufacturing Process.

3. SYSTEMS:
The supporting systems and process of the firm, like Information systems, financial
reporting, payment systems, resource allocation etc.

4.SHARED VALUES:

These are the core values of the company and form the underpinning culture and
how the business behaves and is perceived to behave in the wider context of the
community.
5. STYLE:

The autocratic style of leadership adopted within the organisation. Leadership that is
trained in Emotional Intelligence and the courage to delegate and empower
subordinates. Leadership that leads by example and can coach and mentor employees
in Lean techniques.

6. STAFF:

There are 100 number of employees where 10 are technical employees and types of
employees within the organization where team players, goal sharing, acting as change
agents and diving improvements on an individual level would their main motto .

7. SKILLS:
The skills and competencies of the employees develop new team skills, problem
solving and some technical skill required are CAD designing skill, CNC programming,
Solid cam, G code and others.
The 7’S Model in Practice :

To bile with successful organisational change, the 7S Model is a good tool 10 use
especially in the following sequence:
1. Understand the current state- Where are we now? What is our current
strategy? How are we performing?

2. Understand the Future State- Where do you want to go? What is the
strategy? How competitive will you be?

3. Create a 7S Model review on the current state - Understand all the current
elements with the organization at present.

4. Create a 7S Model review on the future state - What would the seven
elements look like if they were all in tandem to suit the new direction?

5. Compare the future Framework with the current state - and create a plan
to address the actions to fill the gaps in each of the 7 elements.
Porter's five force model analysis:

Developed first by Michael E Porter in 1979 at Harvard

University, "Porter's Five Forces" is now a bedrock tool used by
business strategists.

Following is a summary of Porter's Five Forces applied to the

moulding industry. This is a general overview that would be
applied on a customized basis for a particular foundry.
Rivalry among existing competitors :

This force refers to the number of competitors and

their ability to undercut a company.

Potential of New Entrants Into an Industry:

A company's power is also affected by the force of

new entrants into its market.
Power of Suppliers :
This force addresses how easily suppliers can drive up the
cost of inputs.

Power of Customers:
This specifically deals with the ability that customers have
to drive prices down.

Threat of Substitutes :Substitute goods or services that

can be used in place of a company's products or services
pose a threat.
 SWOT ANALYSIS
 A SWOT analysis can be carried out for a company,
product, place, industry or person.

 It involves specifying the objective of the business

venture or project and identifying the internal and
external factors that are favourable and
unfavourable to achieve that objective.
SWOT ANALYSIS :
STRENGTHS
Large number of product mix. It includes various
cylinder block such as air , water, oil cooled and brake
shoes for metro etc.
Smitha enterprises tie up with the many companies
such as Sriram enterprises and some company in
Germany.
Sophisticated automated machines and improvised
computer controlled CNC machine.
High Human resource strength.
WEAKNESS
Lesser turnover for each product.
Heavy cost of funds.
Distance from major ports.
Less importance are given to safety of daily labour.
OPPORTUNITY
Increase in government investments in
infrastructure & automobile sector.
India, to become an automobile hub for
international players for Ex-KTM , Jeep etc.
Introduction of new technology and new types of
raw material for preparing cylinder blocks.
Launch of "Make in India" campaign by the Indian
Government mainly helps to expand the business.
THREAT
Foreign exchange instability.

Fluctuation in raw material prices.

Tough competition by Laxmi and A.K industry.

 CHALLANGES :

 Most of the foundries in India fall under small and medium enterprises and
cannot afford the high costs for technologically advanced equipment or
automation.
 Further, their marketing strength is also limited and presence in the global
market place is difficult to sustain.
 Inability to outgrow the domestic demand for castings and supply quality
products to the global market acts as a huge barrier for the industry to grow
further.
Ratio Analysis:
1. Current ratio or Working Capital Ratio:

Current ratio = current assets / current liabilities.

2. Net Profit Ratio:

Net Profit Ratio = Net Profit / Net sales * 100

3. Gross Profit Ratio:

Gross Profit Ratio = Gross Profit / Net sales * 100

Thank you