Grasim Harihar Industries

INDUSTRIAL PROFILE:
Birth of Textile Industry in India:

The rich tradition of Indian textile dates back to 4000 years BC.
Travellers in 13th century wrote about the excellence of the Indian fabric.
The post world-war second witnessed the launching of large scale
programs by the less developed countries for the development and
expansion of the textile industries along with the older textile producing
countries. These industries put into operation plans for the modernization
and recognition of textile. Consequently the industries find themselves
today up-to-date.

The textile Industry, which launched the industrial revolution, is

now over 200 years old. India is the largest textile producing country in
the world. In terms of installed capacities, production of the cloth and
yarn and employment potential, the textile industry has few equals. We
have the decentralized sector comprising the handloom and the power
looms. The organized cotton mill sector consists of both private mill and
government owned national corporation group of mills and other sector
like the woollen, the raw silk and synthetics, the jute and pure silk.

Production of the silk sector reached a maximum of about 4800

million meters in 1956. Since then there has been gradual reduction. This
is because the average counts of the country as a whole have been
increasing gradually in response to public taste. People prefer finer fabric,
which takes longer time to produce. It is also interesting to note the
steady increase in the blended fabrics as well as 100% non-cotton fabrics
during this period. This accounted for 25% of the total production.

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India has had such a rich tradition in textile; we can study the
evolution of textile Industry under two heads:

 Natural Fibers
 Man made fibers

Natural Fiber:

The origin of the cotton textile Industry, the largest single industry
in the country dates back to 1818 when the first cotton mill was
established at fort Gloster near Calcutta. The grant of protection by the
Government and Swadeshi movement enabled the industry to step rapid
strides. By September 1976 as many as 105 mills were taken over by the
National Textile Corporation.

Man Made Fibers:

Man made textile made their appearance on the Indian scène about
four decades ago. It was only in 1950 that first Rayon manufacturing
unit’s commenced production in India. Subsequently Acetate filament
yarn and staple fibers were added to the cellulose production. However,
cellulose fiber had entered the world scene around the turn of the century
and made their debut in India later. Synthetics on the other hand made
their first world appearance in 1940 and in India in 1962, when the first
Nylon plant was commissioned. The first polyester staple fiber plant went
on stream in 1965 and subsequently plays propylene staplene staple and
acrylic staple came on scene. The man made fiber industry has gathered
momentum over the years. These fibers became popular because of the
following characteristics:

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 They have a very short life of less 3 to 4 times than, that of cotton
cloth.
 Wash and wear qualities of polyester and blended fabrics reduce
the maintenance the cost in terms of washing and ironing of cloths
is reduced.
 Prestige values are associated to blended fabrics.

Viscose Staple Fiber:

Grasim is India's pioneer in Viscose Staple Fiber (VSF), a man-
made, biodegradable fiber with characteristics akin to cotton. Extremely
versatile and easily blended with other fibers, VSF is widely used to
manufacture fabrics for both woven and knitted garments. The range of
applications extends from apparel — both top wear and bottom wear —
to home textiles, dress material, knitted inner wear and outer wear, and
non-woven fabrics.

Aditya Birla Group is today the world's largest producer of VSF,

commanding a 24 per cent global market share and meeting over 98 per
cent of India's VSF requirements.

Grasim's VSF plants are located at Nagda in Madhya Pradesh,

Kharach in Gujarat and Harihar in Karnataka, with a combined installed
capacity of 2,51,850 tones per annum. Nagda is its largest unit producing
a wide range of VSF to suit customer requirements in terms of length,
denier and color. Nagda is also the largest producer of spun-dyed
specialty fiber in the world.

The Harihar unit produces rayon grade pulp, the basic raw material
for VSF production and raw white VSF. The Company's rayon grade
plant was the first in India to use totally indigenous resources like

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eucalyptus. It uses an in-house technology for producing rayon pulp with

an innovative oxygen bleaching process to reduce the use of chlorine.

The VSF plant at Kharach, set up in 1997, employs the most

contemporary technology, and today overseas customers demand "fiber
from Kharach". The AV cell unit in Canada, an overseas joint venture,
also supplies dissolving grade chemical pulp to the Group's VSF units in
India, Thailand and Indonesia.

This spread and scale of operations makes the Group's VSF

operations extremely cost competitive. In addition, vertical integration
into production of various principal raw materials required for VSF
production — caustic soda, CS2 and rayon grade pulp — heightens its
competitive edge.

Grasim has earned prestigious awards for its technology and its
innovative range of fibers. Made from wood pulp through an eco-
friendly, non-polluting process developed and patented by the Aditya
Birla Group, it is the world's only heavy-metal-free viscose fiber.

The Birla Research Institute for applied sciences at Nagda along

with the Company's R&D teams endeavors to make technology work for
improving quality, lowering costs and optimizing resources, the
Company's Textile Research Application Development Centre (TRADC),
coming up at Kharach, will continually develop new applications and
products. It will also explore possibilities of strategic alliances with
downstream textile product manufacturers to commercialize the
applications, leveraging superior quality of VSF in terms of feel, comfort,
hygiene and aesthetics.

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All of the VSF business offerings have been branded under the
'Birla Cellulose' umbrella. To penetrate into niche market segments, and
to grow further, the division has ventured into the production of high
performance viscose fibers aptly named Viscose Plus, High Wet Modulus
Fibers (Modal) and Birla Excel, the new generation solvent spun fibers.
Grasim is also the largest producer of sodium sulphate, a by-product of
VSF manufacture.
Capacities at a glance

Division Capacity
Viscose staple fiber 2,51,850 tpa
Plant wise break-up:
 

::
Nagda 142,350 tpa
:: Harihar 40,150 tpa
:: Kharach 69,350 tpa

Rayon grade pulp (Harihar) 70,000 tpa

Central India polyesters:

It came into existence on 28 may 1986 at Mumbai. The company
obtained the certificate of commencement of business on 4th September,
1986. The company has been promoted by Deccan Cements Limited,
DCL Finance Limited, State Industrial and Investment Corporation of
Maharashtra, Ltd. (SICOM), Asian Development Bank (ADB) of Manila,
EMS Inventa AG, Switzerland and Kuwait Real Estate Investment
Consortium (KREIC). The Company Manufacture Polyester filament
yarn (PFY) and polyester chips.
In 1990, the Company obtained the approval of Government to
enhance the manufacturing capacity of polyester filament yarn from

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15,000 tones to 25,000 tones per year. The Company had undertaken to
expand the existing spinning capacity by 12,000 TPA by addition of 4
spinning lines.
The Company has entered into an agreement with the National
Chemical Laboratory (NCL) of Pune for R & D in a number of areas to
improve plant operations.
During the current year, the company proposes to boost the exports
in view of the expanded production particularly with that of Micro Denier
Yarn.
The company has been awarded ISO 9002 certificate from Bureau
Veritas Quality International Ltd., UK (BVQ). The ISO 9002 certificate
should help the company’s exports especially in the European markets.
Annual Unaudited Results (Rs. in Millions)
Period Ended Period Ended
. Mar2005 Mar2004
% Change
(12 Months) (12 Months)
Sales Turnover 4250.50 3530.10 + 20.41
Other Income 26.60 30.50 -12.79
Total Income 4277.10 3560.60 + 20.12
Total Expenditure 4093.90 3207.10 + 27.65
Operating Profit 183.20 353.50 -48.18
Interest 0.00 0.00 N/A
Gross Profit 183.20 353.50 -48.18
Depreciation 170.70 286.89 -40.50
Tax 0.00 0.00 N/A
ReportedPAT 12.50 66.59 -81.23

Futura polyesters:
The Company was incorporated in 1960 February at Mumbai. The
company manufactures heavy organic chemicals such as acetic acid, ester
solvents, benzyl products, plasticizers and polyester fiber and computer
software. Polyester fiber is sold under the trade mark `FUTURA`.

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The Company set up a plant for the manufacture of 6,100 tones of

polyester fiber under the brand name `FUTURA` at Manali in Tamil
Nadu State.
The Company entered into collaboration agreements with Chemtex
Fibers Inc., U.S.A., for the supply of machinery equipment and technical
data from abroad and Chemtex Overseas Inc., U.S.A., for covering
procurement and supply of machinery in India in addition to the technical
data and continuing know-how. These companies are the wholly owned
subsidiaries of Chemtex Inc., U.S.A., which by another agreement
guaranteed their performance.
The Company received industrial license for expanding the
capacity of polyester staple fiber from 6,100 tones to 12,000 tones per
annum.
The Company converted letters of intent to increase the capacity of
the Manali unit to 30,000 tones per annum and to manufacture 3,500
tones per annum of polyester filament yarn at Manali. Letter of intent was
converted into industrial license. Foreign Collaboration was approved by
Government.
The Company set up a software division at Bangalore which would
initially develop software packages for various industries.

Annual Unaudited Results (Rs. in Millions)

. Period Ended Period Ended % Change

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Mar2006 Mar2005
(12 Months) (12 Months)
Sales Turnover 4711.50 4739.39 -0.59
Other Income 48.80 58.80 -17.01
Total Income 4760.30 4798.20 -0.79
Total Expenditure 4502.50 4367.20 + 3.10
Operating Profit 257.80 431.00 -40.19
Interest 189.10 191.70 -1.36
Gross Profit 68.70 239.30 -71.29
Depreciation 148.19 147.30 + 0.60
Tax 18.60 37.20 -50.00
Reported PAT -114.00 36.10 -415.79

 COMPANY PROFILE GRASIM INDUSTRIES

HARIHAR POLY FIBER :
A. Background of the Company:

Grasim Industries, a flagship of the Aditya Birla Group was originally

incorporated as Gwalior Rayon Silk Manufacturing (Weaving) Company
in 1947. The company’s key businesses are viscose stable fiber (VSF)
and cement. It also produces sponge iron, chemicals and textiles. Grasim,
which commenced operation in 1950 by manufacturing fabrics using
imported
Rayon (a manmade cellulosic fiber) at Gwalior, has now turned into
India’s top ten largest private sector companies in terms of assets and
sales. The company’s foray into cement became a successful
diversification and now it is the largest producer of cement in India with
the acquisition of UltraTech Cemco (erstwhile L&T). Previously, it
acquired Shree DigVijay Cement, cement division of Indian Rayon and
Dharani Cement.
The company had successful joint ventures abroad that include viscose
staple fiber plants in Thailand & Indonesia and carbon black plants in

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Thailand & Egypt and pulp plant in Canada. Joint ventures in India are
Tanfac Industries, Bina Power Supply Company, Birla AT&T Co and
Bihar Caustic & Chemicals. The company recently divested its stake in
Mangalore Refinery and Petrochemicals. The company also acquired
controlling stake in Bihar Caustic & Chemicals by an open offer made
during 2002-03. Grasim’s subsidiaries are Kerala Spinners, Sun God
Trading and Investments and Samruddhi Swastik Trading and
Investments.
The company hived off its software business Birla Technologies Ltd
(BTL) to PSI Data Systems, a group company for a consideration of
Rs113mn during the year 2001-02. Further, Grasim has currently hived
off its stake in Indo-Gulf fertilizers as well.
Products:

Viscos Staple Fiber:

The company has 14% of the world market share in VSF. The company
produced 221,005 tons of VSF, which is 2% lower than previous year.
This was due to water scarcity and the closure of Pulp and Fiber plants at
Nagda where the factory remained close for 45 days. To avoid this
problem, they have increased the reservoir at Nagda. The outlook for
VSF looks positive with increasing global demand. The realizations
improved by 6% to Rs72.3/kg. A steep price rise in raw materials led to a
squeeze in the operating margins by 300bps.

Cement Business:

With the current capacity of 13.5mn tons, and when combined with
UltraTech Cemco, its total capacity stands at 31mn tons. While the
cement industry grew at 5%, Grasim grew at 7.5% in volume terms. The
operating margins increased by 200bps driven by higher prices and lower

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power cost. The company gained market share in south where the sales
increased by 11% while in the north and the east, the sales grew by about
8- 9%. West was extremely competitive throughout the year. Key
emphasis is laid on RMC, blended cement, setting up captive power
plants and improving operational efficiencies. The realizations improved
to Rs1, 712/ton.
Textile Business:

The textile business witnessed a turnaround in the current year. It has

gained in terms of volume and profitability. The company’s products are
marketed under the popular brand ‘Grasim’ and ‘Graviera’. The
production grew 17% to 149lakh meters.
Chemical Business:

The company performed well in this business as the production grew by

4% to 157,541 tons. Here, the average realizations grew by 13% to
16,338/ton due to better international market conditions. The operating
margins are up by 400bps due to full capacity utilization of the company.
Sponge Iron:

The company’s sponge iron division is installed with a capacity to

produce 9lac tons per annum of sponge iron located at Salav (in Raigad
Dist) of Maharashtra. It was the star performer in the current year due to
robust steel prices. The average production grew 12% yoy to 687,272
tons and the realizations improved 44% to 9,188/ton.

OUR VISION – OUR MISSION – OUR VALUES

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 VISION, MISSION AND QUALITY POLICY:

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Vision:
 To be a premium global conglomerate with an each business:
To achieve prime business status in the global economy by
undertaking the quality productions of goods which are essential to bring
modernity to the nation.

Mission:

 To deliver superior value to our customers, shareholder, employees

and society at large.
To execute the productive activity to reach the valuable customers
with the help of the shareholders and employees. It also aims at satisfying
the needs of society and enabling its progress at large. The means of
services are founded upon the values. Which are significant at all times.

Values:

 Integrity

 Commitment

 Passion

 Seamlessness

 Speed

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 PRODUCT/SERVICES PROFILE:
Our product

Unit Products
Harihar Polyfibers  Rayon grade pulp
Grasilence Division  Viscose staple fiber

 Carbon Di sulphide

 Sulphuric Acid

 Sodium sulphate

The Pulping Process at Harihar Polyfibers:

The production process is the isolation of cellulose from the rest of the
wood constituents. The eucalyptus wood logs are chipped in every
efficient high speed fulghum chippers. The chips are screened and cooked
in batch digesters employing prehydrolysis sulphate process. The
liberated cellulose (pulp) along with spent cooling liquor is blown to a
blow tank. The entire digester, washing and bleaching plants have been
automated to reduce steam consumption, improve turbine efficiency,
reduce process variation, reduce chemical consumption and improve
environmental performance.
After; passing through a closed compact; pressure screen, the pulp is
washed in four stage counter current pressure washers screened and
centri- cleaned to remove shives, ash and silica. The pulp is bleached in
multistage bleaching sequence to desired brightness and characteristics,
screened and cetricleaned. The pulp is then de-watered in screw presses,
50% of de-watered pulp at 48-50% moisture content is supplied as such
to fiber plant for production of viscose staple fiber. The balance 50% of
pulp is dried to 68% dry content in rotary flash dryers baled and
dispatched to fiber plant at nagda for production of VSF.

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The Fiber process at Grasilence Division:

The unit is manufacturing VSF Grasisik by adopting in house

development and patented friendly Zinc free process. In this process there
is no generation of hazardous waste.
The manufacturing process starts with steeping of rayon grade pulp in
caustic soda solution and separating the excess lye in slurry press to
obtain a mat of alkai cellulose. The alkai cellulose is shredded and
maturing drum and they reacted with carbon disulphide under vacuum in
simplexs to yield cellulose Xanthante. The xanthate is dissolved in
caustic soda to give a honey like liquid called “viscose”.
The viscose is then filtered in 3 stages of filtration using continuous
filters, deaerated and ripened under controlled conditions in spinning
tanks. It is then extruded as filaments through noble metal spinnerets on a
spinning machine into a spinning bath containing sulphuiric acid, sodium
sulphate and special additives. The filaments are then cut into fiber form
of required staple length. The fiber mat is further treated in an after
treatment machine where it is washed, de-sulphurished with caustic soda,
bleached with hypo chlorite, finished with finishing, agents, opened and
dried in drum dryer. This viscose staple fiber is then baled and sold.
Viscose staple fiber is a most versatile fiber, which is widely used in
commodity textile applications either as 100% fiber is in blends with
synthetic fibers such as polyester, cotton, acrylic, wool etc., this as
resulted in the improvement in the quality of the blended fabrics at
reduced cost. Cotton and viscose are the only two fibers, which are
biodegradable.
The other attributes that position VSF superiority over cotton are:
 13% moisture regain as compared to 7% for cotton.

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 Soft feel for comfortable wear.

 Superior luster and aesthetic appeal.

 Most blend friendly fiber.

 Excellent static dissipation for higher comfort.

 Easy dyning and printing with excellent tones of colour.

 High thermal resistances for maintaining cool in summers and warmed

in winters.
 Area of operation-
Regional:
Place Company
Belgaum Hindalco.(alumina refining)
Malkhed Grasim(grew cement Rajashree cement)
Harihar Grasim(VSF Harihar polyfibres)
Banglore Adity Birla NOVO (Madura Garments)
PSI Data systems (Software Transworks BPO)
Mangalore HGI (Gas)

National:
State Place Company
Punjab Bhatinda Grasim (Cement Grinding)
Haryana Bhiwani Grasim (textiles-fabric and
yarn)
Rajasthan Shambhupura Grasim (grey cement- aditya
cement)

Kharia Grasim (white cement- Birla

Khangar white)
Uttar Pradesh Renukoot Hindalco(aluminium)
Aditya Birla Nuvo(Hi-Tech
Carbon)
Renusagar Hindalco (Power generation

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)
Jagdishpur Indo Gulb Fertilisers
Gujarat Dahej Hindalco (Birla Copper)
Sikka Shree Digvijay cement (grey
cement)

Kharach Grasim (VSF-Birla cellulosic)

Veraval Adity Birla NUVO (VFY)
Vapi Essel mining
(Ferro chemical Divn)
Halol Birla NGK insultors
Pipavav Ultra Tech cement
(greny cement)
Jafrabad Ultra tech cement (grey
cement)
Magdulla Ultra Tech cement (grinding)
Madhya Pradesh Jawad Grasim(grey cement vikram
cement)
Nagda Grasim (chemicals, VSF)

Malanpur Grasim (textiles vikram

wollens)
Jharkhand Mari Hindalco (alumina refining)
Lahardaga Hindalco (bauscite mining)
Garhwaroad Bihar caustic (chemicals)
West Bengal Belur Hindalco (sheet)
Rishra Aditya Birla NUVO(Jayshree
textiles, lines) Birla NGK
insulators
Midnapur Aditya
Durgapur Ultra tech cement (grinding)
Maharashtra Taloja Hindalco (sheet)
Kalwa Hindalco (foil and packaging)
Durgmanwadi Hindalco (bauxite mining)
Hotgi Grasim (cement grinding)

Salav Grasim (vikram ispatsponge

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iron)

Mumbai PSI Data Systems. (software)

Transworks (BPO)
Birla Global Finance Ltd
Birla Sun life Insurance
company Ltd.
B.S.L Distribution company
Ltd.
Pune Indus cellular
Chhattisgarh Raipur Grasim Cement (grey cement)
Kusami Hindalco (bauxite mines)
Hirmi Ultra tech cement (grey
cement)
Orissa Hirakud Hindalco (aluminium
smelting, power generation)
Barbil Essel mining (mines)
Sambalpur Aditya aluminium
Koraput Aditya aluminium
Rayagada Utkal alumina
Andhra Pradesh Kollur Indal (soil and packaging)
Tadpatri Ultra tech cement (grey
cement)
Tamil Nadu Reddipalyam Grasim south (grey cement)
Gummidipoondi Aditya Birla Nuvo (Hi tech
corbon
Cuddalore Taafac (chemicals)
Kerala Alupuram Hindalco (extrusions,
smelters)

Global:
Country Company Product/services
Canada AV Cell Inc. Softwood/hardwood
pulp (for VSF

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manufacture)
AV Nackawic Inc Dissolving pulp (for
VSF manufacture)
Egypt Alexandria carbon Carbon black
black co. S.A.E
Alexandria Fiber Acrylic fiber
company S.A.E
China Liaoning Birla carbon Carbon black
company Ltd.
Thailand Thai Rayon VSF
Indo Thai Synthetics Spun and fancy yarns
Century textiles Fabries
Aditya Birla chemicals Caustic soda, chlorial,
Epichlorohydrin,
Sodium sulphite,
Sodium metasulphite,
Epoxy resias, Sodium
phosphates, Speciality
phosphates.
Indonesia PT Indo Bharat Rayon VSF
PT Elegout textile Yarns
industry
PT Indo Raya Kimia Corbon disulfide
Philippines Indo phil textile mills Yarns
Indo phil cotton mills Yarns
Indo phil Acrylic Yarns
manufacturing
corporation
Malaysia Pan century Edible oils Refined palm oil, palm
olein, stearin and
PFHD
Pan century Fatty acids, glycerins
olerchemicals
Australia Aditya Birla minerals Copper

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Ltd.

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 COMPETITORS INFORMATION:

Central India polyesters:

It came into existence on 28 may 1986 at Mumbai. The company

obtained the certificate of commencement of business on 4th September,
1986. The company has been promoted by Deccan Cements Limited,
DCL Finance Limited, State Industrial and Investment Corporation of
Maharashtra, Ltd. (SICOM), Asian Development Bank (ADB) of Manila,
EMS Inventa AG, Switzerland and Kuwait Real Estate Investment
Consortium (KREIC). The Company Manufacture Polyester filament
yarn (PFY) and polyester chips.
In 1990, the Company obtained the approval of Government to
enhance the manufacturing capacity of polyester filament yarn from
15,000 tones to 25,000 tones per year. The Company had undertaken to
expand the existing spinning capacity by 12,000 TPA by addition of 4
spinning lines.
The Company has entered into an agreement with the National
Chemical Laboratory (NCL) of Pune for R & D in a number of areas to
improve plant operations.
During the current year, the company proposes to boost the exports
in view of the expanded production particularly with that of Micro Denier
Yarn.
The company has been awarded ISO 9002 certificate from Bureau
Veritas Quality International Ltd., UK (BVQ). The ISO 9002 certificate
should help the company’s exports especially in the European markets.

Futura polyesters:

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The Company was incorporated in 1960 February at Mumbai. The

company manufactures heavy organic chemicals such as acetic acid, ester
solvents, benzyl products, plasticizers and polyester fiber and computer
software. Polyester fiber is sold under the trade mark `FUTURA`.

The Company set up a plant for the manufacture of 6,100 tones of

polyester fiber under the brand name `FUTURA` at Manali in Tamil
Nadu State.

The Company entered into collaboration agreements with Chemtex

Fibers Inc., U.S.A., for the supply of machinery equipment and technical
data from abroad and Chemtex Overseas Inc., U.S.A., for covering
procurement and supply of machinery in India in addition to the technical
data and continuing know-how. These companies are the wholly owned
subsidiaries of Chemtex Inc., U.S.A., which by another agreement
guaranteed their performance.

The Company received industrial license for expanding the

capacity of polyester staple fiber from 6,100 tones to 12,000 tones per
annum.

The Company converted letters of intent to increase the capacity of

the Manali unit to 30,000 tones per annum and to manufacture 3,500
tones per annum of polyester filament yarn at Manali. Letter of intent was
converted into industrial license. Foreign Collaboration was approved by
Government.

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The Company set up a software division at Bangalore which would

initially develop software packages for various industries.

 INFRASTRUCTURAL FACILITIES:
Water Treatment:

Water constitutes one of the major physical environments of man. It is

used almost for all purposes. Like bathing, drinking, industry etc. This
water contains varying amounts of organic and inorganic contaminants
may be dissolved suspended or colloidal. Hence the aim of water
treatment is to produce water fit to be used as boiler feed and other
purpose.

HPF gets water from Tungabhadra River. This water is generally low in
mineral contents but will have lot of floating matters as well dissolved
solids. Depending upon the quality of raw water the treatment is carried
out in the plant. The different steps involved in treating this water are:
1. Sedimentation with coagulation.
2. Filtration.
3. Demineralization.
4. Softening.

Intake well supplies about 48000 M3-50000 M3 of river water per day
for pumps of 250 HP capacities are provided fro this. The PH o water
ranges between 7.8-8 comes to constant head tank where coagulating
agents like polyaluminium chloride and soda ash is added to water. Now
a day they are adding PAC because the river water contains less turbidity.
If more turbidity is in river water then alum and soda ash are added The

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PH after the addition of chemicals comes down 7-7.5. The water then
goes to the clarifier for sedimentation.

Canteen facility- Subsidized food and refreshment.

Transport facilities- Group transport facility to and from factory site.

Staff colony- Situated on the bank of sacred river Tungabadhara, 251

family accommodation and 72 rooms in bachelor’s hostel set in sylvan
surroundings with lush green lawns, parks and sliady avenues.

Temple- Lord Shiva temple in a screen location.

Auditorium- Multi purpose equipped with a 35-mm movie projector,

accommodating 1500 persons and serves as an indoor badminton court as
well.

School-An English medium higher secondary school affiliated to CBSE

up to class X and pre-university classes XI-XII under Karnataka board
with excellent performance in curricular activities.

Dairy- with 64 jersey cows provides quality milk at subsidized rates for
colony residents.

Medical Center- With four qualified doctors, medical facility is available

round the clock along with weekly services of consultant specialists.

Club and library – Recreational facilities lide billiards, hard court tennis,
table tennis, carom, chess, badminton, other outdoor games to keep you

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fit. Library is stocked with a side range of books and latest periodicals to
keep up well read and informed.

Market Center- Provision shop, hairdressing saloon, laundry, tailoring

shop, beauty parlor, and fresh produce from colony orchard all in one
place.

Guest house- 18 well furnished rooms and dinning facility for the comfort
of guests.

Conveyance- For the convenience of students going for higher studies

(degree, engineering, medical etc) to Davanagere.

Picnic spot- To escape from the hums drum of daily life and spend
sometime with nature.

Labour workers colony- 96 quarters for workers in workers colony.

 AWARDS AND ACHIEVEMENT: Harihar Grasim has

received

1974 ICMA Sir P.C.Ray award for development of indigenous

technology for producing Rayon grade pulp from hybrid
Eucalyptus.

1991 Award for environment central strategies and safety in chemical

Plants.

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1994 An Award for outstanding contribution towards promoting

savings conferred on Grasim Social Service society,
kumarapatnam.

1995 An Award for o/s contribution in the field of industrial and

labours relation.

2000 Aditya Birla Group chairman’s Bronze medal for

implementation of world class manufacturing practices.

2001 ICMA Award for obtaining ISO 9001-2001 certification.

2002 The Aditya Birla Group chairman’s planet award for

community development

2002 Greentech Industrial safety Gold Award for outstanding

achievement in the field of industrial safety.

2003 Aditya Birla Group chairman’s Gold Award for manufacturing

excellence and competitive advantage.
2003 Golden Peacock Environment Excellence gold award 2002-03
for outstanding achievement towards environment protection
and clean environment.

2002 Ranked 1st in TERI, corporate award for environment

excellence.

2003 Unit has emerged as one of the top performers with 3 leaf rating
in the green rating award by center for science and environment.

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2004 Technical paper titled chelation with magnesium salt for

enhancing Rayon grade pulp quality presented during IPPTA
Seminar, was adjudged as one of the best.

2004 Technical paper titled state of the art technologies and

approach to improve “chemical recovery efficiency” presented
during IPPIA seminar, was adjudged as the best and awarded
first prize.

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 WORK FLOW MODEL:

Wood Yard:

Wood Yard department is the department where the woods are receiving
from forest and to the store it and also to supply the woods to the chipper
house. The wood yard department also sends woods pieces to the
laboratory for checking the desived properties lof the wood. Wood yared
department provides tractors, pocklines, and also lorries for shifting the
woods. This wood yard department provides 65% pf fresh wood and also
35% of old wood to the chipper house. The words, which are used for, the
;perpetrations of pulp in Grasim Industries are:-

1. Eculiptus.
2. Cusurina.
The woods are recieveing from both private source and also from
government sources. The Grasim Industries recievs the wood from
Karnataka, Tamilnadu, Maharastra and also Andra Pradesh sources.

According to lthe government rule, if andy company is cutting or taking

the wood means, that company, should plant the same amount of trees.
This is also done byu the Grasim Industries.

The main fundamentals of the wood yard department are:-

1. Receiving the wood
2. Checking the wood
3. Storing the wood
4. Feed the wood to chippers.

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CHIPPER HOUSE:

The main function of the chipper house is to making of the wood chips
from wood barrels. In chipper house wood barrel is feed to cutting
chipper and then wood chips are formed.
The block diagram of the chipper house is shown below:-

Wood Chipper Drum

Yard M/C Screen Vibrators

Silo
Rechipper

Dust

Pulp mill

Boiler

The wood is fed into the chipper M/C. The chipper M/C is rotated
at a high speed with the help of the motor. During the rotation the wood is
feeded into the rotating blades through conveyers, which cuts the wood
and forms the chips. Then the chips, are feed into the drum screener. The
function lof the drum screener is to accept only the required size of the
chips whtere as the bigger size chips are feeded into the rechipper M/C
that again cuts the chips into a smaller size. Then this rechiped chippers
are again sent to drum screen which accept the required size chips. The

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dusts coming from this process are sent to the boiler, where as the
accepted chips are sent to the silo.

Machines Conveyer Chipper Drum screen Rechipper

Type Chain 2 Disc with 8 Rotating Drum Disc blowing
straves knives type (is knives)
Reversible
Make Fulgham Fulgham(USA) Fulgham(USA) Fulgham(USA)
(USA)
Capacity 25TPH 25TPH 60TPH 10-15TPH
Speed 1500rpm 600rpm 18rpm 870rpm
Drive 30HP 350HP 60HP 150HP
Feed Horizantal Bottom Horizantal Horizantal

PULP MILL:

Pulp mill is a plant when the pulp is manufactured. The wood chippers,
which are coming from the chipper house, are taken into the digestion
tank and then it is cooked by using the white liquor. Then the cooked
product is converted into bleached pulp by using the bleaching agents like
SO2, oxygen, HCL, COZ, and CIZ.
The block diagram process of the pulp will is shown below:

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Chipper Pressure
Digester Storage Tank
House Washer

Unbleached High-density
Centrigleacer Bleacher
Tougher

Vacuum
BL Notler Filter
Pulp

PULP DRYING:

The main function of the pulp drying is to dry the pulp. The pulp coming
out of the pulp mill consists of 5% of pulp and remaining is water. In pulp
drying, the water in the pulp is removed and the % of the pulp is
increased. The block diagram of the pulp drying diagram of the pulp
drying process is shown below.

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Head box Screw Press Primary

Pulp Mill (squeezing)
(storing) Booster

Primary Booster
42% of Pulp

Loose Pulp to generation Secondary

Booster

Hot air Dry Drum temp (220-

To prepare generation 230degree)
Rayon

Induced draft fan

Ceylon Tank

Extension

Gowdon

PROCESS:

The pulp, which is produced in pulp mill department, consists of 5% pulp

and remaining is water. So it is required to remove the water. The pulp
from the pulp mill is stored in head box. Then it is sent to the screw press
to remove then it passed to the boaster 1 which again water is squeezed
and the % of pulp is increased to 48.5%. For grasinline department this %
of pulp is enough where as for bail 70% pulp is required. So this pulp is
again passed to the booster 2 in which again squeezing takes place. Then
it is sent to the drum. To the drum slot air, is supplied which is at

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temperature of 220-230deegree.Due to the 70% and then it is sent to the

make bail.

THE MCKINSEY’S 7S MODEL IS AS FOLLOWS:

The design of an organizational structure is a critical task of the

top management of an organization. It is the selection of whole
organization. It refers to organizational arrangement and relationships. It
prescribes formal relationship among various positions and activities.
Arrangements about reporting relationships, how an organization
members is to communicate with other members, what roles he has to
perform and what rules and procedures exist to guide the various
activities performed by members are all part of organizational structure.
In Harihar Polyfibers limited the organization structures is flexible
enough to counter balance of the external environment. This will help in
the smooth functioning of the activities of the company. The company is
having its regional office at Bombay and to take a situation in the external
environment. The senior executive president is in a position to control the
activities of the organization. For taking the entire problem he must have
with technical and managerial knowledge. The Vice President of each
department is responsible for the activities done in their respective
departments.

The Senior Executive President and Vice President departments

come under top management. Under this the position like General
Manager, Deputy General Manager, Senior Manager and Assistant
General Manager positions comes under middle level management. All
the departments of the Harihar Polyfibers are interring related with each
other to maintain control over the organization.

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PRESIDENT

EXECUTIVE PRESIDENT

VICE PRESIDENT

VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT

COMMERCE TECHNICAL H.R.M.

HRD P&IR SECURITY MEDICA GUEST TRANS COLONY

L HOUSE PORT

DGM AGM

AGM JOINT
MANAGER

OFFICER OFFICER

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THE MCKINSEY’S 7S MODEL

Structure

Systems
Strategy

Shared Values

Skills Style

Staff

The hard elements of McKinsey’s 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.

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THE 7S ARE:
 Structure
 Skills
 Systems
 Style
 Staff
 Shared values, and
 Strategy
There is no particular order to the 7’s.

STRUCTURE:
The organization 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.
Mr. Kumar Mangalam Birla is the chairman of the company; the
company board also includes Executive Directors, Directors, Advisor and
Company Secretary in the board. The company Head office and
registered office is at Ujjain, in Madhya Pradesh

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HARIHAR
POLYFIBER
UNIT

HPF VP COMMERCIAL HRD

TECHNICAL VP HRM

ACCOUNTS
PRODUCTION
HRD

TIME OFFICE
TECHNICAL
P& IR-HPF

MARKETING
MECHANICAL &
SALES

SECURITY

ELECTRICAL RAW MATERAIL

CIVIL SYSTEM

LEGAL

Within each unit there are H.R. Department, finance department

and marketing department. The divisional Heads and Senior Heads of
divisions head each division. The vice president is the head of each unit.
The Executive president heads all the division:

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Board of Directors:

Mr. Kumar Mangalam Birla, chairman.

Mrs. Rajashree Birla.
Mr. M.L Apte.
Mr. B.V. Bhargava.
Mr. R.C.Bhargava.
Mr. Cyril Shroff.
Mr. S.C. Subrahmanyan.
Mr. Shailenra K. Jain, Whole Time Director.

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.

The company requires technical skills for production and manufacturing

divisions. Also it requires strong management skills in marketing and
H.R. divisions. The marketing executives must have good communication
skills and better knowledge of the company and its product. Many
marketing executives have the engineering background with MBA
degree.

Marketing executives are also required to have very strong verbal and
written communication skills, especially presentation skills as most of the
time they have to do the presentation for their clients and for the higher
authorities.

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Senior level executives must be good analyzing individual strength and

weakness, so that they can allocate work to individuals effectively. They
also must have strong skills of analyzing the market situation and
changes.

SYSTEMS:
The decision making system within the organization can range from
management intuition, to structured computer systems to complex export
systems and artificial intelligence. It includes

 Computer systems
 Operational Systems
 Marketing Systems
 HR Systems etc.

Grasim industry is having its branch office at many places in India so

as to ensure that the required information has been gathered at the right
time and at the right place.

In Grasim Industry the rules governing the employees are explained to

each employee on joining the company. They will be provided with the
handbook, which will be having all the information regarding the
company. There are detailed procedures laid out by the corporate office
on procurement of items and supplies, making travel arrangement,
allowances, reimbursements, leave and other arrangements. In general
HR department and the unit heads are responsible for ensuring that the
staff follows all procedures.

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With regard to office systems, all the offices are computerized for the
purpose to enable greater speed and timeliness of the completion of the
projects. All the entries regarding marketing are done online with the help
of Internet. So that there will not be any delay in communication land
flow of information.

With regards to performance appraisal system, the company has been

providing many good opportunities to employees for their carrier
development. The company does the performance appraisal by
conducting Induction training program for employees who joins the
company. Also company conducts training program for the executives of
all the levels one or two times a year. This is conducted in well known
H.R. and Training institute of the company.

QUALITY SYSTEMS:

Birla White is the first cement plant to get ISO 9002 QMS certification
from RWTUV, Germany. It is also IQRS level-5, certified from DNV,
Netherlands.

Quality is the key stone for the company’s business excellence and our
ultimate goal of total customer satisfaction.

Style:

Style refers to the employees shared and common way of thinking and
behaving unwritten norms of behavior and thought:
 Leadership Style
 Organization Culture

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The company culture is very informal, youthful and dynamic. It

encourages free and participative thinking. The Grasim Industry has the
participative type of leadership style in practice. The top and middle
executives of the management tend to be totally accessible and encourage
the participation in decision-making, by conducting the debate and
discussion. This type of leadership style attracts talented people to enter
the company and make them to feel company as their family. Also this
style motivates the employee to stay in the company.

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.
In Grasim Industry entry-level staffs 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
and the recruitment is done as per that specification. The candidates are
placed usually according to their location preference to particular unit or
location. The entry-level recruitment process involves short listing and
selecting the candidates based on resumes group discussion and personal
interview.

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Middle level staff is recruited from the competing companies in the

industry and also from company within itself. This involves personal
interview and usually group discussion.

Senior level recruitment takes place by taking help from marketing

companies or advertising companies in the country.

Shared Values:

A shared value means that the employees aware 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.

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.

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The company is having strategy of going for more tonnage; better quality
and customer services rather than more margins.

The focus is on the all-round development of the communities around the

plants located mostly in distant rural areas and tribal belts. All the group
companies: Grasim, Hindalco, Indian Rayon, Indo Gulf and Rural
Development Cells, which are the implementation bodies.

Projects are planned after a participatory assessment of the communities

around the plants. Each project has a one-year and a three-year rolling
plan, with milestones and measurable targets. The objective is to face out
the companies’ presence over a period of time and handover the reins of
further development to the people. This also enables to widen the
company reach along with internal performance assessment mechanisms,
the projects are audited by reputed external agencies, which measures it
on qualitative parameters, helping the company to gauge the effectiveness
and providing excellent inputs.

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HUMAN RESOURCE DEPARTMENT

Human Resource and HR department have always been key

factor in the group’s success. Outstanding personalities like G.D Birla
and Aditya Vikram Birla have set new records of achievement in India’s
arena, supported by a team of dedicated and capable mangers at level.
The group officers you not merely a job, but an opportunity
to fulfill your long terms career plans.

Specifically, the Aditya Birla group offers:

 An unlimited choice of openings.

 Executing global career opportunities.
 The resources to back your ideas to upgrade your skills.
 Training schemes.

The department procures in the organizations describe the quality

management system as per the requirement of ISO 900/in 2000 and
EMS as per 1400/in 1996 adopted in HRD and has reference to quality
manuals, common producers, environment manual and environment
procedures of pulp division and Grasiline division.
The HRD personnel are responsible to carry out the functions of
HRD department in context to the procedures laid out while
interfacing with reactions. Departments of both divisions and shall
follow the procedures delineated here in.
HRD department extends business friendly service functions to
both Pulp and Grasiline division.

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(a) Objectives of HRD department broadly revolved around

~ Achievement focused.
~ Development oriented.
~ People sensitive.

Important functions are:

 Placement of qualified and competent human resources at the right
time.
 Determine and enhance the necessary quality through focused
training, education and skills development.
 Career Planning
 Succession planning
 Apprising and rewarding the performance
 Effective team building
 Measurement of employees satisfaction
 Analyzing the reasons and employees attribution correcting
the same.

 Development of leadership among managers through delegation

and empowerment.
 HR department has infrastructures like Buildings, Training, Hall,
Computers, and Audio Visual.
 Aids and other associated utilities.
 Department is headed by deputy general manager (HRD)
associated by component staff.

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(b)HRD Chart:

H R D C h a rt

S e n io r E x e c u t iv e P r e s id e n t

VPC HR M

D G M (H R M )

A s s is t a n t M a n a g e r O ffic e r ( H R D ) J u n io r

RESPONSIBILITIES AND AUTHORITIES (HRD)

Deputy GM:

 Responsible for implementing company HR policies and programs.

 Selection, Recruitment and Placement.
 Management Development programs and employee Training.
 Performance appraisal.
 MIS (HR)

Assistant manager and senior officer (HRD).

 Identification of competencies.
 Preparation of training calendar.
 Designing and organizing training programmer as per calendar.
 Summer placements, Vocational training of students of various
institute.
 Management information System (Training).
 Recruitment.

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(c) HRD in HPF performs following functions:

 Training.
 Recruitment.
 Performance appraisal.
 Organization Development.
 Organization Behavior.

The Grasim unit that produces Rayon Grade Pulp at Kumarapatnam

(HPF and Grasilene division) has a strong work force of 2910 workers.

UNITS STAFF WORKERS

HPF 343 172
GRALIENE 242 1019
TOTAL 623 2287

The unit provides the following facilities to the workers.

Working Hours:

The unit operates in four shifts:

 A shift 7.00 am to 3.00 pm.
 B shift 3.00 pm to 11.00pm.
 C shift 11.00 am to 7.00 am.
 General shift-8.30am to 5.30pm.

Uniform:

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Workers are eligible P.A. for the following:

 Shirt Cloth for 2 shirts.

 Pant Cloth for 2 pants.
 Shoes (black) 1 pair.
 Socks (blue) 2 pair.
 Stitching charges Rs.300/-

Female members will be issued saree or cloth for salwar kameez.

Industrial Canteen:
Canteen will provide break fast and meals services to workers at
subsidized rates. Canteen is open at fixed timings on all working days.
Canteen coupons will be issued through time office on 5 th of each month
and cost of the coupons will be deducted from the salary.

Leave:
1. Conformed workers are eligible for following member and
type of leaves subject to staff member putting up a minimum
240 days of attendance in a calendar year.
 Casual lave-8 days.
 Privilege leave-30 days.
 Sick leave-7 days.
 Special leave-10 days.
 Half day is permissible in exceptional circumstances.
 To those not covered under employees state insurance
scheme.

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2. Intervening holiday/weekly off will be counted as leave

during leave period.
3. a) Privilege leave can be accumulated up to 300 days.
b) Sick leave can be accumulated up to 30 days.
4. Staff members making the attendance by purchasing the
cards are eligible for compensatory off lieu of overtime duty.
5. National and festival holidays-10 days in a calendar year and
as notified.

Disbursement of Salary:
Normally, Salary is distributed on or before 5 th day of each month
through bank.

Medical facilities:
 Medical Center : Giving many facilities to the employees
 Occupation health-cum-first aid center
 Medical reimbursement : which gives money facilities to the
employees for major operations

Leave Travel Assistance:

Confirmed staff members are eligible for leave travel assistance
every year at 1.5 times the average basic salary for the calendar year.
To claim income tax exemption on I.T.A. claim needed to be
supported by actual bills and such benefit is available two times in the
block of four years period. Unclaimed and eligible LTA amount will be
paid in the last quarter of every year after deducting income tax at source,
if any.
Staff members have an option to carry over this amount up to 2
years, on application.

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Conveyance Allowance:
 Library cum reading room.
 TV room.
 Indoor games like Billiards cock, table tennis, carom.
 Facilities for outdoor games like Cricket, Basket Ball, and Tennis
etc.
 Matches/ Tournaments are conducted on Independence Day/
Republic Day.
 Community festivals like Ganesh Chaturthi, Holi, Diwali are
celebrated.
 Monthly fees are to be paid to the club separate sports like
Billiards, Shuttlecock etc.

INSURANCE SCHEME
 Company takes group insurance policy in live of EDLI scheme for
providing better benefits to the nominees of staff in case of death
of staff member during the service period.
 All members who are members of PF are covered under personal
accident policy, which provides insurance against accident.

Traveling Allowance for Business visits:

Staff member on business visits are eligible for traveling, daily and
conveyance allowance and for other expenses as per applicable rules.

Retirement:
Staff members after prescribed year of service are covered under
superannuation scheme of CIC. The employee’s contribution towards the
scheme is 10% of salary to those drawing basic salary more than 7500/-

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per month it is 15%of basic salary. Out of the above contribution of

8.33% on Rs.6500/- is contribution to employee pension account.

Gratuity:
Gratuity will be paid as per payment of gratuity Act, 1972.
Company may at its discretion pay gratuity at one month’s salary for
every completed year of services to the staff retires/dies after 15 or more
years of continue service.
Marriage Gift:
Company gives cash gift to staff member or to his/her children
when they get married.

Merit Scholarship to employee’s children:

Children of staff studying in professional course like Engineering,

Medical, Dental, Management studies, Charted Accountant are eligible
for merit scholarship linked and as per schemes.
Loans:
Particular of Loan Eligibility Maximum amount Interest
service rate (PA)
(Years)
Marriage: Daughter
Son 10 10 months salary Nil
10 05 months salary Nil
Medical for Expensive
Treatment (Self, Wife, 10 05 months salary Nil
Children)
General 02 01 month salary
Nil
Vehicle 05 Rs.35, 000 Nil
Appliances 03 Rs.7, 500/- Nil
Education 10 75% of fees paid or

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Rs.20, 000/- which 9%

ever is less.

These loans are subject to applicable income tax rules.

SKILL
Waterman considers skills as one of most crucial attributes of
capacities of an organization the term skills include those characters,
which most of people uses to describe a company. A Grasim industry is a
Viscose Staple Fiber and pulp manufacturing company it is known for its
manufacturing skills. Grasim industry is a dynamic multinational
company “the Aditya Birla Group”, consists of more than 55
professionally managed large units. It enjoys the confidence of more than
6 lakh shareholders and has an asset of dedicated and devoted personnel.
The company secured quality standard systems. It is a leading supplier of
technology and machinery to the production of man-made fiber. It has
received prestigious award in the area of productivity and total preventive
maintenance.

TRAINING METHODS TO GRASIM HARIHAR

EMPLOYEES

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There are two broad types of Training: On-The-Job and Off-The-

Job techniques. Individual circumstances and who, what and why of the
training Programme determine which method to use.

ON-THE-JOB TRAINING:
It is ‘learning by doing while working’. Training is imparted to
employees while they perform their regular jobs. In these methods they
do not lose time while they are learning. On-the-job training includes
coaching, orientation, job instruction training, apprenticeship, internships
and assistantships, job rotation and coaching.

OFF-THE-JOB TRAINING:
This type of training is imparted Off-The-Job outside the work
premises. These include classroom activities like lectures, special study,
film television conferences or discussions, case studies, role-playing.
Simulation programmed instruction and laboratory training.

TRAINING METHODS FALLOW UP AT GRASIM:

LECTURE COURSES:
Formal lecture courses Offer and Opportunity for employees to
acquire knowledge and develop their conceptual and analytical abilities.
To be effective the lecture must motivate and create interest among the
trainees and advantage of lecture method is that it is direct and can be
used for a large group of trainees. Thus, cost and time involved are
reducing.

CASE STUDY:

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Case analysis takes the actual experience of organizations, these

cases describe as accurately as possible, real problems have faced.
Trainees study these cases to determine problem, analyze causes, develop
alternative solutions, select what they believe to be the best solution, and
implement it. Case Study can provide stimulating discussions among
participants, as well as excellent opportunities for individuals to defend
their analytical and judgmental abilities.

GROUP DISCUSSION:
This method involves a group of people who pose ides, examine
and share facts, ideas and data, test assumption, and draw conclusions, all
of which contribute to the improvement of job performance. The success
of this method depends on the leadership qualities of person who leads
the group.

ROLE PLAYING:
It is defined as a method of interaction that involves realistic
behavior in imaginary situations. This method of training involves action,
doing and practice. The participants play the role of certain characters.
Such as the production manager, mechanical engineer, foremen, workers
and the like. This method is mostly used for developing interpersonal
interactions and relations.

DEPARTMENTAL PROCEDURE FOR TRAINING AND

DEVELOPMENT

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Human Resource Department has its own departmental procedure

which guides and influence for carrying out the HRD function in an
effective manner.

COLLECTION OF DATA:
The personal data of employees consisting of department,
designation, date of joining, date of birth, educational qualification,
experience and training needs is collected.
IDENTIFICATION OF NEEDS:
After collecting a personal data employee next step is to identify
training need of individuals through training need identification format,
IDP, performance appraisal and survey reports. The training needs are
identified once in a year and this is the responsibility of DGM (HRD).
List of training programmers inclusive of the codes with tainting
identification format are sent to the departmental heads to nominate their
colleagues either to external or in-house training.

PLANNING AND DEISNING TRAINING:

After identifying a training need training curriculum is planned and
designed considering the method/techniques of imparting training.

PREPARATION OF TRAINING PLAN AND TRAINING

MODULE
Training plan and training module are prepared to provide
complete details of training programmes.

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The following are the details in the training plan and module:
 Training program title
 Objectives of training
 Syllabus of the training
 Contents/Curriculum of the programmed
 Faculty
 Duration of the program.

Considering training module the training calendar is prepared

according to needs for each program, training hours, no of personnel to be
trained, availability of faculty, availability of infrastructure and training
method. Preparation of the training notes, writing-ups and other reference
material required for the in-house program are done.
In case of external program arrangements are made to provide the
training as per the recommendations of functional heads/HOD.

FORMAT OF TRAINING PLAN

SL.NO Name of the Duration of No. of Total hours

Program Training Person of Training

PREPARATION OF TRAINING CALENDAR

It includes names of programmed, the month in which it is to be
conducted and dates of the training programmed. The information about
the number of participating in each batch of each programmed is also
stated.

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FORMAT OF TRAINING CALENDER

SL. Training Months in No. Of Duration No. of Mans

NO. Program which program in days participants days
training is
to
conducted

SELECTION OF TRAINEES
Faculty/Trainer plays a very important role in the success of a
training program. Trainer who is going to influence and motivate the
trainees so, selection of a right type of a trainer is a very important
responsibility. It is the responsibility of the AGM (HRD).
For proper selection the following criteria are considered.

SELECTION OF INTERNAL FACULTY

For in-house training, trainer is selected, based on their expertise
and experience.

SELECTION OF EXTERNAL FACULTY

 Recognition, Reputation, Education and experience of the

trainer.
 Recognized institutions.
 Selecting the external faculty from faculties’ directory for
specific training programmes. Involving specialization
/expertise.

SELECTION OF PARTICIPANTS

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According to the personal data collected about employee and the

training needs identified the participants are selected for training
programmes.

FOLLOWING CRITERIA ARE CONSIDERED

 Identified needs
 Trainees available for the programme
 Discussion with departmental heads to know the trainees
who are in need

PROVIDING TRAINING:
TRAINING INFRASTRUCTURE

To provide the training it is ensured that training aids like OHP,

Transparencies, and disperse materials relevant to the training program
are prepared. For the efficiency and effectiveness of the training program,
Training hardware’s are checked that they are proper working condition.

TRAINING PROGRAMME AT GRASIM

The programmes held by the HRD department are mainly classified as
the programmes for the employee and staff. The programmes are called
as Employee Development Programme (EDP) and Management
Development Programme (MDP).

TYPES OF TRAINING PROGRAM

In-House Training:

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This programme mainly deals with the development of the employees.

For In-House Program mainly internal facilities are developed nearly 3-4
programmes are held per month. The batch strength is around 30-40 per
month.

External Training:
According to the requirements of the organization it sends people
to different institutions for training and development in behavioral as well
as technical aspect. These programmes are called “Knowledge Integration
Programme (KIP)”.

Technical Training Programme:

This is held for technical people and when the trainee needs are
identified, external agencies are contracted and invited for conducting
lecture. The agencies that have been conducting lecture are L&T,
Chennai & Semens.

Vendor’s Development:
These programmes are mainly held for higher-level staff to
enhance the knowledge in the fields of logics etc.

Staff Development:
Various programs like drama, Stage Play, Lectures are held mainly
to develop the employee in his behavioral aspects.

CLASSIFICATION OF TRAINING PROGRAMS

1) Training Program for Staff

a) Behavioral Program:

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 Transactional Analysis
 Communication Skills and Presentation Skills
 Team Building and Group Dynamics
 Project Management
 Interpersonal Skills
 Creativity and Innovation
 Management Style 36 Degree way
 Conceptual Thinking
 Performance Managements

b) Technical Program:
 Six Sigma
 Total Productivity Management
 Energy Conservation
 Hydraulics
 Pneumatics
 Bearings and Tribology
 Pumps
c) System:
 World Class Office Management
 Computers and Networking
 Quality Management System
 EMS
 OHMS
2) Training Programs For Workmen:
 EDP
 EDP for Spouse

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3) Special Programme:
 Society
 Suppliers

SWOT ANALYSIS:

Strengths: Double digit growth rate:

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 Cement demand has grown in tandem with strong economic

growth; derived from:

-Growth in housing sector (over 30%) key demand driver;

-Infrastructure projects like ports, airports, power projects, dam &
irrigation projects
-National Highway Development Programme
-Bharat Nirman Yojana for rural infrastructure
-Rise in industrial projects
-Export potential also demand driver
 Capacity utilization over 90%

Weakness: Low value commodity:

 Cement Industry is highly fragmented

 Industry is also highly regionalized
 Low – value commodity makes transportation over long distances
un-economical

Opportunities: Demand–supply gap:

 Substantially lower per capita cement consumption as compared to
developing countries (1/3 rd of world average) 
 Additional capacity of 12 million tons per annum will be required
to match the demand  
 Limited green field capacity addition in pipeline for next two years,
leading to favorable demand – supply scenario

 Threats: Rising input costs:

 Government intervention to adjust cement prices

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 Possibility of over bunching of capacities in the long term as some

of the players have already announced new capacities
 Transportation cost is scaling high; bottleneck due to loading
restrictions
 Coal prices climbing up; industry players say current shortage of
coal in the country is estimated to be over 10 million tones 

CONCLUSION

1. From the data collected it is concluded that the mentorship concept yielded
positive changes in the mentees.

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2. The mentorship concept concentrated much on the work aspects and

developing career plans. Personal matters are also taken into consideration,
which motivates mentees to engage in mentorship concept.
3. The data concludes that mentorship program helps in- career development.
The main objective of the mentorship program is career development and the
objective is thus served.
4. Mentors skills of inspiring mentees are rated very good and excellent, so the
mentors are doing good job in mentoring mentees. So mentees are very
satisfied with the mentors' performance.
5. Mentors give good feedback to mentees. Feedback can be suggestions,
motivations, etc to mentees. Most of the mentees are happy with feedback by
the mentors. They rated feedback as excellent.
6. Most of the mentees rated excellent to the skills of Managing risk by the
mentors. So it is concluded that mentees are very much satisfied with the skills
of mentors. So there is no need of any changes in mentorship program.
7. The instruction given by the mentors are accepted by the mentees. Mentees
are happy with the instruction by the mentors. So mentees really need this kind
of instruction from mentors.

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Unit '04-'05 '03-'04 '02-'03 '01-'02 '00-'01 '99-'00 '98-'99 '97-'98 '96-'97 '95-'96
Production
Viscose Staple
Tonnes 247,952 221,005 224,610 176,462 218,847 188,002 164,355 174,281 155,385 162,470
Fibre
Grey Cement Mn
12.44 11.85 11.09 9.53 9.10 8.40 5.82 4.71 4.10 3.27
Tonnes
White Cement Tonnes 315,368 310,578 310,163 267,915 251,594 240,492 131,979      
Sponge Iron Tonnes 780,341 687,272 612,879 559,567 663,998 709,094 670,231 667,350 706,510 347,513

   
Turnover
Viscose Staple
Tonnes 231,533 229,110 227,900 181,520 203,854 192,452 164,130 171,148 151,838 161,993
Fibre
Grey Cement Mn
12.63 11.96 11.16 9.68 9.16 8.42 5.88 4.70 4.14 3.15
Tonnes
White Cement Tonnes 311,454 314,819 305,223 266,105 251,291 240,014 133,660      
Sponge Iron Tonnes 772,799 676,921 612,425 562,334 673,852 822,996 565,682 767,255 585,917 435,503

   
Unit '04-'05 '03-'04 '02-'03 '01-'02 '00-'01 '99-'00 '98-'99 '97-'98 '96-'97 '95-'96
Profit & Loss Account
Gross Sales Rs crore 7,201 6,130 5,412 5,070 5,582 4,982 4,325 4,023 3,602 3,199
Net Sales Rs crore 6,229 5,213 4,609 4,372 4,822 4,273 3,757 3,500 3,089 2,742
Other Income Rs crore 187 209 133 129 108 88 110 124 135 211
Operating
Rs crore 1,785 1,504 1,141 937 911 756 678 698 706 773
Profit (PBIDT)
Interest Rs crore 139 154 168 190 239 256 292 256 259 230
Gross Profit
Rs crore 1,646 1,350 973 747 673 500 386 443 447 543
(PBDT)
Depreciation Rs crore 285 273 254 252 252 237 210 167 148 124
Profit before
Tax &
Rs crore 1,361 1,077 719 495 421 263 176 276 300 420
Exceptional
Items
Current Tax Rs crore 451 291 192 57 50 12 8 45 41 88
Deferred Tax Rs crore -33 7 -15 51            
Net Profit after
Tax (before
Rs crore 943 779 542 387 371 251 168 231 259 332
Exceptional
Items)
Exceptional
Items
Rs crore -58 0 -174 -84 7 -18 -4   16  
Net Profit after
Exceptional
Rs crore 886 779 368 303 378 233 164 231 275 332
Items & Total
Taxes
Equity Shares
Dividend Rs crore 167 145 103 83 81 72 63 54 52 45
(including CTD)
Unit '04-'05 '03-'04 '02-'03 '01-'02 '00-'01 '99-'00 '98-'99 '97-'98 '96-'97 '95-'96

Net Fixed
Rs crore 3,204 3,213 3,264 3,263 3,303 3,401 3,354 2,633 2,473 2,222
Assets*
Investments Rs crore 2,982 2,541 1,796 1,416 682 683 680 717 507 619
Net Current
Rs crore 745 550 613 733 991 967 1,002 1,092 1,250 1,012
Assets
Rs crore 6931 6,303 5,673 5,412 4,976 5,052 5,037 4,442 4,230 3,853
Share Capital Rs crore 92 92 92 92 92 92 92 72 72 72
Reserve &
Rs crore 4,232 3,514 2,879 2,615 2,984 2,685 2,524 2,243 2,068 1,845
Surplus*
Deferred Tax
Balance
Rs crore 599 633 626 641            

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NATURAL BIRTH – VSF IS DERIVED FROM

WOOD PLUP

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VALUES WE VALUE
2004 Integrity Commitment Passion Seamlessness Speed

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BIBLIOGRAPHY

BOOK

 Human Resource Management

o Author : C. B. Gupta 7th Edn. Published by Sultan
Chand and Son’s Education Publication, New Delhi

WEBSITES
* www.grasim.co.in.
* www.google.com

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