Organisational Study Report of Cochin Shipyard LimitedKishore Raveendran
This is the Organizational study conducted by me on Cochin Shipyard Limited, Cochin. Its consist all Department Details , Structure, Financial Statements (P&L and Balance Sheet) Turnover, Employee Details, Industry Profile, Company Info, History etc.
Cochin shipyard .
Role of Public sector and business environment.
History,vision,objectives,manpower status in csl,constraints and issues faced,projects completed by Cochin shipyard,Strength,weakness,oppurtunities and threats faced by cochin shipyard,conclusion.
Organisational Study Report of Cochin Shipyard LimitedKishore Raveendran
This is the Organizational study conducted by me on Cochin Shipyard Limited, Cochin. Its consist all Department Details , Structure, Financial Statements (P&L and Balance Sheet) Turnover, Employee Details, Industry Profile, Company Info, History etc.
Cochin shipyard .
Role of Public sector and business environment.
History,vision,objectives,manpower status in csl,constraints and issues faced,projects completed by Cochin shipyard,Strength,weakness,oppurtunities and threats faced by cochin shipyard,conclusion.
Organizational Structure & Leadership Style in M/s Larsen & Toubro , ...Subhrajyoti Parida
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Hindustan Construction Company (HCC) is a public-private company headquartered in Mumbai, India whose businesses span the sectors of Engineering & Construction, Real Estate, Infrastructure, Urban development & Management. The HCC group of companies comprises HCC Ltd., and its subsidiaries HCC Real Estate Ltd, HCC Infrastructure Co. Ltd, Lavasa Corporation Ltd, Steiner AG in Switzerland and Highbar Technologies Ltd.
Founded by Industrialist Seth Walchand Hirachand in 1926, HCC Ltd. executes large-scale civil engineering and infrastructure projects such as hydel power plants, nuclear power plants, expressways and highways, tunnels and bridges. HCC currently serves the infrastructure sectors of transportation, power and water. HCC was the first construction company in India to be certified for ISO 9001, ISO 14001 and OHSAS 18001 for its quality, environmental and occupational health and safety management systems. The company is headed by Ajit Gulabchand,[2] Chairman and Managing Director.
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2. SCOPE AND METHODOLOGY
•
The Study in Cochin shipyard Limited was done from 1st June
to 15th June, 2013. Both primary and secondary data were
used for the completion of Organizational Study.
•
Primary Data was mainly collected through direct
conversations between AGMs and DGMs in the departments,
and also staffs and trainees very much helped to build up this
study.
•
Secondary Data were collected from the company website
(www.cochinshipyard.com), relevant books and documents
such as Certified Standing Order, Settlement Of Amendment
(1973-2010), Performance Appraisal Form, Annual Report
2011-2012, previous Reports etc.
• During this time there is another 3 persons from other
colleges to do the same Organizational Study with me. They
helped me and I also helped them.
3. OBJECTIVES
• To familiarize the students with a business
organization
• To familiarize them with the different departments
in the organization and their functioning.
• To enable the students to understand how the key
business process are carried out in organizations.
• Understand how information is used in
organization for decision making at various levels
and
• To provide a link between theory with practice.
4. INTRO
•
Cochin Shipyard was incorporated in the year 1972 as a fully
owned Government of India company. In the last three decades the
company has emerged as a forerunner in the Indian Shipbuilding &
Ship repair industry. This yard can build and repair the largest vessels
in India. CSL has secured shipbuilding orders from internationally
renowned companies from Europe & Middle East and is nominated to
build the country’s first indigenous Air Defense Ship.
•
Shipyard commenced ship repair operations in the year 1982 and
has undertaken repairs of all types of ships including up gradation of
ships of oil exploration industry as well as periodical layup repairs and
life extension of ships of Navy, UTL, Coast Guard, Fisheries and Port
Trust besides merchant ships of SCI & ONGC.
•
The Shipyard also trains graduate engineers to marine
engineers who later join ships both Indian and foreign as 5th
Engineers. 100 are trained every year.
5. • It can build ships up to 1,10,000 DWT and
repair ships up to 1,25,000 DWT. The yard
has delivered two of India’s largest double
hull Aframax tankers each of 95,000 DWT.
• “Rani Padmini” is the first vessel born from
CSL on 24th July 1981.
• The only Profit making shipyard in India.
6. COMPANY PROFILE
• VISION
“Ours in an endeavor to emerge as an internationally
competitive yard and facilitate to emergence of India as a
dominant Ship Building and Ship Repair centre of the region.
Cochin Shipyard promises you quality service, outstanding
workmanship, timely delivery, reliable personnel and excellent
coordination that do not leave you feeling at sea…”
Management Team
Cochin Shipyard Limited
• MISSION
To Build and Repair vessels to International Standards and
provide value added engineering services.
7. • HISTORY
• Cochin shipyard was conceived of in the year 1969
• The yard was designed and constructed under technical
collaboration with M/s Mitsubishi Heavy Industries (MHI), Japan.
• The company was legally incorporated in the year 1972.
• The yard commenced the ship building operations in 1978, Ship
Repair in 1981, Marine Engineering Training in 1993 and Offshore
Up gradation in 1999.
• in the last decade through augmentation of facilities, up gradation of
ship design department with installation of Tribon and CAD/CAM
software and adoption of Integration Hull Outfitting and Painting
system (IHOP) of construction.
8. • COMPANY DETAILS
• Board of Directors
• Cmde K Subramanyam
Director
• Ravikumar Roddam
• P. Vinayakumar
• Capt. R. S Sunder
• M.C Jauhari, IAS
Director,
•
(Shipping), Ministry of Shipping
• L. N Vijayaraghavan, IAS (Retd)
Director
• S. K. K Krishnan, Vice Admiral (Retd)
Director
• M. Raman, IAS (Retd)
Director
•
•
Company Secretary
Smt V. Kala
: Chairman & Managing
: Director (Finance)
: Director (Technical)
: Director (Operations)
: Official Part Time
Joint Secretary
: Non Official Part Time
: Non Official Part Time
: Non Official Part Time
9. •
•
•
•
•
•
•
•
•
•
•
•
•
•
Management Team
Jose Mathew
: Executive Director (Design)
Baby Thomas
: Executive Director (Materials)
Joe Joe Peter
: Chief General Manager (Planning & IQC)
Sunny Thomas
: General Manager (Technical)
Paul Ranjan
: General Manager (Finance- 1)
N. V suresh Babu : General Manager (Ship Repair)
Madhu S Nair
: General Manager (Marketing)
Bejoy Bhaskar
: General Manager (Defence Projects)
K .J Ramesh
: General Manager (Human Resource)
T.N Sudhakar
: General Manager (Finance- 2)
Murugaiah .M
: General Manager (Hull and HE)
M.D Varughese
: General Manager (Industrial Relations & Administration)
K.I Koshy
: General Manager (Materials)
•
•
•
•
•
Bankers
State Bank of Travancore
State Bank of India
Syndicate Bank
Union Bank of India
12. SHIP BUILDING
• CSL has been achieved full capacity
utilization in last two years. In last 3 years,
the yard has delivered 6 bulk carriers,
Nine fire fighting tugs and eight platform
supply vessels (PSV) for various
international owners.
•
The company could achieve
a total ship building income of Rs 1260
Crs during 11-12 as against 1320 Crs in
10-11.
14. SHIP REPAIR
• Commenced in 1982 and till date about 1800
vessels have been repaired
• During 20007-08 , CSL diversified into the offshore
and dredging market and undertook repairs to the
oil rigd Sagar Bhushan of ONGC, oil rig trident for
M/s Transocean, USA and Dredgers Sagar-Hansa
for Vanword ACZ shipping Management, Denmark
and Aquarus for Dredging Corporation of India.
• Cochin Shipyard could achieve a ship repair
turnover of Rs.252.14 Crores during 2007-2008 as
compared to Rs 241.53 Crores in 2006-07, i.e 5%
increase.
16. MARINE ENGINEERING
EDUCATION
• Marine Engineering Education handled by
Marine Engineering Training Institute (METI).
• Since inception more than 1000 trainees
have passed out of Institution. The institute
has been rated OUTSTANDING by
Independent rating Agencies continuously for
last 6 years.
• More than 1000 officers are converted from
Mechanical Engineering/ Naval Architecture
to Marine engineering with a 3600 approach
to Marine engineering on different types of
ships.
17. • The Apprenticeship programme is conducted as
per statue (Apprenticeship Act), the NTAC
(National Trade Apprenticeship Council) test is
conducted for trainees.
• training are:Office Trainees, Electrician, Mechanist, Fitter,
Painter, Instrument Mechanic, Draftsman
Mechanical ,Pipe Fitter and Ship Wright Wood.
•
The trainees are trained in the above trades for
a period of two years. At the end of the training
period all the trainees will have to undergo an all
India examination and certificates are issued for
the pass outs. The trainees may be taken as
advanced trainees by CSL. It is usually for the
period of 1 to 3 years according to the nature of
trade and requirement.
19. DEPARTMENTS
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Ship Repair
Ship Building
Finance
Business Development (Marketing)
Personnel and Industrial Relations (HR)
Marine Engineering Training Institute (METI)
Safety and Fire Service
Inspection and Quality Control
Information Systems
Materials (1 &2)
Vigilance
Medical Centre
Store
Project
*Official Language Implementation Cell
Air Defense and Material Planning
*Official Language Implementation Cell is not a department but it is standing as a
separate cell affiliated to P&IR Dept.
20. Finance Department
• Management of funds including working capital
and transacting business with Banks and other
financial institutions, managing all transactions
relating to foreign exchange etc.
• Participation in negotiations with
unions/associations for finalization of proposals for
revision of wages, salaries, other perquisites etc.
• Evaluation of Investment proposals, project
appraisals etc, with specific reference to finance
perspective and examination of all proposals for
financial concurrence and giving suggestions to
effect economy
21. • Preparation of Annual budget/MOU with
Government.
• Payment to suppliers, contractors, employees and
other agencies.
• To report to CMD matters which have adverse
impact on the working of the company.
• To organize and conduct statutory audit, internal
audit, Income Tax audit, Sales Tax audit etc.
• To attend to C&AG audit queries and reviews and
related matters.
• Attending to Tender Committees/negotiations.
23. Financial Position
• Profit For the year ended 31st March 2012 =17232.69
• Profit For the year ended 31st March 2011= 22752.77
• Balance sheet as on 31st march 2012
Total Assets= 260238.39
• Balance sheet as on 31st march 2011
Total Assets= 255659.18
The performance is creditable considering the economic
recessionary conditions and the downturn in the shipping and
ship building sector. The reductions in the profits and turnover
during the year were owing to several factors, primarily due to
the reduction in turnover from Indigenous Aircraft Carrier (IAC)
and the lack of ship building subsidy.
24. Financial Highlights
Particulars
2010-2011
2011-2012
Turnover
1461.72
1404.85
Total Income
1589.17
1481.54
EBDIT
390.27
284.16
Depreciation and Write offs
17.06
18.07
Profit After Tax (PAT)
Equity Share Capital
Reserves & surplus
Net Worth
227.53
113.28
775.38
967.8
172.33
113.28
898.41
1050.83
Gross Fixed Assets
Net Fixed Assets
362.10
190.67
376.73
192.61
Number Of Employees
Earnings Per Share (EPS)
Face Value Per Share
EBDIT/ Gross Turnover (%)
Net Profit Margin (%)
Return on Net Worth (%)
Return on Capital Employed
(%)
1818
20.09
10
26.07
15.57
23.51
27.44
1900
15.21
10
20.21
12.27
16.40
18.76
25. Facilities and Assets
Details
Land
170 Acres
Cranes
71 Nos
Quay 1 for Repair
290 m
Quay 2 for Repair
208 m
Quay 3 for fitting out
460 m
Covered Shop Area
35000 Sq.m
Steel Stockyard
13000 Sq.m
CNC Plasma Cutting Machine
2 Nos
Steel Fabrication Facility
2000 Tonnes per Month
Marine Coating Shop
Docks
Size
Capacity
Range
1
270x45x12m
125000 DWT
2010 & 5t
2
255x43x9m
110000 DWT
150 7 50t
26. BUSINESS DEVELOPMENT
DEPARTMENT
•
•
•
•
•
•
•
•
•
•
•
Basic Design calculations and Drawings for ships and small crafts.
Material cost estimation for ships and small crafts.
Computer applications, data bank.
Development of Computer programmes for ship design calculations,
cost estimation etc.
Data collection for technical, details of vessels, material cost etc.
Maintain a record of Rules and regulations concerned with
shipbuilding and keep track of its amendments.
Updating the design capabilities with the latest trends in design.
Market survey ships, small crafts and other engineering works for
utilizing the installed capacity.
Preparation of Quotations.
Preparation of Contract documents.
Negotiation with owner.
28. • MAJOR SUPPLIERS LIST
•
Rolls Royce Marine, Karm, Hyndra Marine, TIS, Abas, Aker Brats Vaagwinch,
Suezer
•
CUSTOMERS LIST
•
•
•
•
•
•
•
•
•
•
•
•
Coast Guard
Cochin Port Trust
Customs
Shipping Corporation of India
Essar Shipping Company
French Navy
Indian Navy
ONGC
Fisheries Department
Clipper Group Bahamas
National Institute of Oceanography
National Petroleum Construction Company, Abudabi
29. PERSONNEL AND INDUTRIAL
RELATIONS DEPARTMENT (HUMAN
RESOURCE)
•
•
•
•
•
•
•
•
•
HR VISION
Emanating from the goals and objectives enshrined in the corporate
mission statement, the strategic Human Resource Vision of Shipyard is to
strive and create a unique institution that integrates creativity, innovation,
technology, business and good corporate governance practices for all round
improvement in the quality of work life of the yard’s workforce.
HR MISSION
To provide a vibrant platform for all those working in the yard to give
their best and ensure all round growth both for the individual and
organization.
HR POLICIES
HR Policies are oriented towards the right mix of HR, their
empowerment and enrichment so as to meet organizational targets and
results.
30. • HR OBJECTIVES
• Effectively play the role of strategic team member.
• Planning for pragmatic man power, induction, re-skilling,
deployments and retention of HR.
• Develop and position right mix of person at the right time.
• Create, maintain and nurture a healthy employer and employee
relations.
• Evolve and implement best industrial practices with
transparency in approach, competitive reward and incentive
system for excellence in performance.
• Provide effective and meaningful social support to the
community, society around.
•
•
• Current HR Status in CSL
•
The total manpower of the company as on 31 March 2012
was 2017 employees.
31. •
•
•
•
RECRUITMENT POLICY IN CSL
Executive Recruitment
•
•
•
•
•
•
•
•
•
The weight age for the above said is given as below:
•
The executive positions are filled by 50% recruitment from external sources and 50% by
promotions. In the case of promotions to the past of an officer the eligibility to write the promotion
test is as followers:-
•
•
•
•
•
•
•
The recruitment to the executive post in CSL is done on all India basis. The selection process is
done on the basis of the degree or educational qualification, followed by written test and finally
interview.
Degree
– 50%
Written Test
– 30%
Interview
– 20%
The test and the interview would be conducted on the same day itself. The results will be published
on the same day itself, after the approval of CMD of Cochin Shipyard Limited.
For Engineering Degree holders
For Diploma holders
For ITI holders
= 6 Years service as supervisor in CSL.
= 8 Years service as supervisor in CSL.
= 10 Years service as supervisor in CSL.
Workers Recruitment
The Recruitment to the workers post will be done through the employment exchange. As and
when there is a vacancy in the workers post the company informs the employment exchange. As
per the court order, in this regard, the vacancy notification is given in employment exchange and
also an open advertisement is provided in the newspapers. This is also done in an all India basis.
The procedure for selection also includes practical tests.
32. MANPOWER
Manpower Strength of the company as on 31st March 2012 was 1900,
consisting officers, supervisors and workers. The complement of CSL as on
31st March 2012 is shown in the table below.
Catagory
SC
ST
OBC
PWD
Wome Others
n
2
Ex
Serviceme
n/
Dependent
s
7
Officers
34
9
48
28
139
Supervisor 26
s
Workmen 142
6
1
5
2
17
148
25
169
40
17
76
881
Canteen
5
0
51
1
0
3
18
TOTAL
207
40
269
48
26
124
1186
33. SWOT ANALYSIS
SWOT analysis is an effective
management technique to evaluate the business
environment of an organization both internal and
external to analyze the present status and future
prospectus of the firm. The strength and weakness of
the organization, which are internal to the firm, are
identified. The opportunities and threat offered by
business environment, which are external to the
organization, are also analyzed. Then suitable
strategy can be formulated by taking both internal and
external factors of the business unit. SWOT analysis
for CSL is a step in arriving at the strategy decision for
the organization.
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STRENGTH
India’s Only profit Making Shipyard
Transparent and Rigid Rules Structure.
Innovation and Advanced Technology updation.
Willingness to accept and adapt to changes.
Lean work force.
Inter-Departments Coordination.
Reasonable supply chain position including sub contractors.
Expanding customer base.
Security methods still unknown to a third party. (Eg.36 CCTV Cameras active by 24x7)
Availability of Government subsidy.
Improved the No of trainees.
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WEAKNESS
Low capacity of Cranes comparing other International Shipyards.
Slow Technology adoption.
Slow decision making about Trade Union problems.
Outdated technical process.
Low productivity.
Inadequate Government support.
The growth rate is lower in the case of yard development comparing to other
competitors.
Increasing of Production and equipment costs.
Interference of State Government.
No new strategy for Improving Good business.
No new innovative decisions from Ministry of Shipping
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OPPERTUNITIES
Establishing Good Customer relation
Expanding global market.
Possible shift of market to low cost countries.
Likely emergence of strong and captive domestic market and increased
demand from Navy, Coast Guard and Island territories.
Efficient Training and Development makes Employee attraction.
Increased the number of Ship repairs.
Decreased Government rigidity of process.
Awards and achievements give a positive effect on new contracts.
CSL have Highest Growth rate comparing last Decade.
THREATS
Withdrawal of subsidy scheme from August 2007.
Rising cost of man power and material.
Increasing Competition.
Archaic Labour laws.
Increasing Complexity of tax structure, introduction of new taxes, and instance
of administration of taxes.
Very low capacity of equipment's comparing other International Shipyards.
Increasing the No of Political Trade Unions.
Hic of Material waste
Decreasing the number of Ship customers in the world.
36. CONCLUSION
Cochin shipyard is presently operating at 100% capacity utilization.
There is no space capacity available. Presently the yard can construct
ships up to 1, 10,000 DWT. Cochin Shipyard has planned for enhancing its
capacity through a larger dock up to 25000-30000 DWT. The yard also got
GOI approval. The shipyard also plans to introduce Dock arms and
Moveable Hydraulically Activated Platform.
Cochin Shipyard is one of the first yards and largest in India to
use the Integrated Hull Outfitting and Painting (IHOP) system in
construction. Under this technology the ship is constructed in modules,
fully outfitted and painted before assembly. This method of construction is
faster and safer compared to the traditional method of construction.
Besides, the yard was also one of the first shipyards to adopt the Tribon
software for ship design and introducing CAD/CAM. Not only that,
presently, the Cochin Shipyard is the only one in India that has the
capability to build large and modern ships. Another credit is that it is one
and only profit making ship industry in India. It is important to acknowledge
and appreciate the historical role played by CSL in the realm of growth of
ship building in our country and has overcome some of its constraints.
37. LIMITATION OF THE STUDY
• Days allotted by the college is too short. We
got only 13 Days .
• June is the month of half yearly financial data
making. So the departments were busy at
that time.
• Undisclosed information are higher than
disclosed.
• Department head visiting is not an easy task
in CSL.
• Some Departments have negative approach
to the researcher.