Sandip.(mba)

Aditya Birla Insulators.

-:PREPARED BY:-

Lukhi Sandipkumar.B
M.B.A(Sem-1)

Roll.No:-20

Academic Years

2010-2012

1|Page J.H.Patel college of Mgt & Tech.


INDEX

NO PARTICULAR
1. Preface
2. Acknowledgement
3. General Information
4. Production
5. Finance
6. Marketing
7. HR
8. Appendix
9. Finding
10. Conclusion
11. Bibliography



INTRODUCTION :-
Aditya Birla Insulators, the largest Indian manufacturer of high voltage porcelain
insulators, is a subsidiary of Aditya Birla insulator World class technology and cost
competitiveness produce high quality insulators at state of the art manufacturing facilities.

The world's fourth largest manufacturer of electrical insulators, with an extensive
product range that includes hollow, solid core, disc, pin, post insulators, finding applications
in substation equipment and in transmission systems.

A subsidiary of Aditya Birla Insulators is India's largest
makers of high-performance insulators.

Our products have benchmarked industry standards in technology and quality to deliver
highly dependable products, making us one of the most trusted names in the industry. Aditya
Birla Insulators leverages the rich legacy of the Aditya Birla Group and the technical
expertise accrued through over four decades in the industry. The company provides a
comprehensive range of high-performance insulators to the power industry in India as well
as overseas.

Aditya Birla Insulators is the country's largest, and the world's fourth largest
manufacturer of electrical insulators. Our extensive product range includes hollow, solid
core, disc, pin, post insulators, finding applications in substation equipment and in
transmission systems.

Aditya Birla Insulators is the preferred partner of a global clientele that includes
leading power utilities and national and international power equipment manufacturers. Our



products are exported to over 58 countries worldwide, with focused markets in Europe,
America, Middle East, Africa and China.

Mission:-
To deliver superior value to our customers, shareholders, employees and society at large

Vision:-
To be a premium global conglomerate with a clear focus on each business

Object :-

Integrity: (Honesty in every action)
Acting and taking decisions in a manner that is fair, honest, and following the highest
standards of professionalism. Integrity for us means not only financial and intellectual
integrity, but in all other forms as are commonly understood

Commitment: (Deliver on the promise)
On the foundation of integrity, doing whatever it takes to deliver value to all
stakeholders. In the process, taking ownership of our actions and decisions, those of our
team and that part of the organization.

Passion: (Energized action)
A missionary zeal arising out of emotional engagement with the organisation that makes
work joyful and inspires each one to give our best. Relentless pursuit of goals and
objectives with the highest level of energy and enthusiasm, that is voluntary and
spontaneous.
Seamlessness: (Boundaryless in letter and spirit)
Thinking and working together across functional silos, hierarchies, business and
geographies. Leveraging the available diversity to garner synergy benefits and promote
openness through sharing and collaborative efforts
Speed: (One step ahead always)
Responding to internal and external customers with a sense of urgency. Continuously
seeking to crash timelines and choosing the right rhythm to optimise organisation
efficiencies.



Management Team

 J.C.Laddha, (Chief Executive Officer)

 Ravi Sinha, (President)

 Anil C Lodha, (Chief Manufacturing officer)

 Vikas Khosla , (Chief Marketing Officer)

 Y.K.Bhatt, (Head Commercial)

Mrs. Rajashree Birla - Non-Executive director

Dr. Rakesh Jain - Non-Executive director

Gjan Gpta - Non-Executive director

P. Murari - Non-Executive director

B. Gupta - Non-Executive director

B. Shah - Non-Executive director

Pranab Barua - Director



Mr.Kumar Manglam Birla

Aditya Birla Group (Chairman)

Awards:-



Aditya Birla Insulators, Rishra has won the Golden Peacock National Quality Award
(GPNQA) 2007 in the manufacturing category. The GPNQA model is based on MBNQA
(Malcolm Balridge National Quality Award ) and is aligned with the World Class
Manufacturing Practices (WCM) TPM process. The award was given to 9 organizations out
of a total of 186 participating organizations.

Aditya Birla Insulators has been receiving the top export award special export award from
Capexil for the past 18 years an unprecedented record equaled by none.

National Award for excellent export performance from the president and prime minister
of India

Recipient of CAPEXIL's export award for 18 years in a row
Both Rishra and Halol plants are accredited with the ISO 9001 and 1400, SA 8000, ISO



9002 and 14001 respectively.

Marketing office:-
801-802, Gunjan Tower
Near Alembic Petrol Pump
Alembic - Gorwa Road
Vadodara 390023
Gujarat
India
Tel: +91 265 308 3669, 308 3670
Fax: +91 265 308 3668
E-mail: abi.domestic@adityabirla.com
abi.export@adityabirla.com

Halol works:-
P.O. Meghasar, Taluka: Halol
Dist. Panchmahal
Gujarat 389330
India
Tel: +91 2676 221 002
Fax: + 91 2676 223 375
E-mail: abi.substation@adityabirla.com



Organization Structure

Vice

President

Production Engineering Commercial Administration Personnel & HRD
Department
Department Department Department Department

Maintenance Finance Raw Material
Viscose Time Office

Legal Welfare
Spinbath Electrical Share

Sales Labour
Spinning Instrument Store &
Purchase Office

After Personnel
Treatment Bardhana

HRD
Internal Audit
Textile

Estate
Chemical

Security
R&D

Quality

Control



Activities of Production Departments:

1. Production of planning
2. Material requirement planning
3. Store finished goods and raw material
4. Quality control
5. Packaging
6. Painting of pack product
7. Transport to Marketplace
8. Washing and cleaning of equipments, regular maintenance of machine and other equipments.

Products:

Aditya Birla Insulators is the largest Indian manufacturer of high voltage porcelain
insulators. World-class technology and cost competitiveness produce high quality insulators
at state of the art manufacturing facilities.

The company specialises in the production of high-strength
equipment porcelains for use in an instrument transformers,
condenser bushings, disconnectors and insulators for the traction
system of the Indian Railways, and high-end transmission products
up to 765 KV system voltages.. Aditya Birla Insulators exports one
third of its total sales. The business has been proactive in gauging
changing customer needs and adapting its product range to meet high
quality standards and customer satisfaction.

With its products extensively tested in reputed national and international laboratories, the
resultant output is truly world class and this is vindicated by its long-term customers that
include leading power utilities and multinational companies.

Aditya Birla Insulators, the insulators business of Aditya Birla Nuvo, delivers highly
dependable products, making the company one of the most trusted names in the industry.

10 | P a g e J.H.Patel college of Mgt & Tech.


Aditya Birla Insulators provides a comprehensive range of high-performance insulators to
the power industry in India as well as overseas.

Substation, traction, line post insulators

 Solid core station post insulators

 Long rod insulators

 Traction insulators for railway electrification

 Apparatus porcelain insulators

 Solid core line post insulators

Transmission insulators

 Suspension disc insulators

 Pin insulators

 Multi cone post insulators



Production process:

Aditya Birla Insulators follows world-class manufacturing practices in the production of
porcelain insulators. The important stages in the manufacture of porcelain insulators are:

 Wet grinding of raw materials to slurry form

 Filter pressing to de-water the slurry

 Vacuum extrusion to provide plastic clay

 Shaping by pressing or turning

 Drying to remove absorbed water

 Firing to convert the raw material mixture to strong and vitreous porcelain

 Assembly, which involves fitting terminations to the porcelain shapes, so that they
become insulators

 Testing, which implies a series of mechanical and electrical tests to ensure the technical
integrity of the products

Aditya Birla Insulators recognizes that high-quality products are
obtained if only production is supported by a comprehensive system of
process and quality control. These systems, fully documented, are a vital
part of everyday production at both the Rishra and Halol factories.



Product Portfolio:
Aditya Birla Insulators delivers highly dependable products, making the company one of the
most trusted names in the industry. Aditya Birla Insulators provides a comprehensive range
of high-performance insulators to the power industry in India as well as overseas.

Our insulators cater to the entire spectrum of sub-station
and transmission insulators. We specialise in the
production of high strength equipment porcelains for use
in SF6 circuit breakers, instrument transformers,
condenser bushings, disconnectors, insulators for the
traction system of the Indian Railways, and high-end
transmission products up to 765 KV system voltages.

Applications:

Aditya Birla Insulators caters to the entire spectrum of
sub-station and transmission insulators. It specialises in
the production of high-strength equipment porcelains for
use in SF6 circuit breakers, instrument transformers,
condenser bushings, disconnectors and insulators for the
traction system of the Indian Railways, and high-end
transmission products up to 765 KV system voltages.

Our products are used for the following applications:

 Circuit breakers
 Bushings
 Current and voltage transformers
 Disconnectors
 Overheadlines
 Sub station
 Railway electrification
A promise of quality:



Commitment to consistent quality and reliability drives the systems and processes at Aditya
Birla Insulators. Our infrastructure comprises of two state-of-the-art manufacturing facilities
at Halol, near Vadodara, and Rishra, near Kolkata. Both plants are ISO 9001 and 14001
accredited. The Rishra plant is also SA 8000 and OHSAS 18001 certified.

The plants are equipped with new-age equipment to deliver precision and quality. The
production line is backed by a team of professionals and engineers armed with the latest
technologies from across the world.

At Aditya Birla Insulators, quality is a continuous process that
is measured in tangible value, and reinforces our systems to
deliver excellence every time. Our quality policy is to
collectively and continuously upgrade our functions, to
conform to international standards, and achieve our progressive
objectives to ensure absolute customer delight.

Quality policy
Aditya Birla Insulators continuously reinforces and upgrades the quality management
systems and functions conforming to ISO 9001 standard. The unit's progressive quality
objectives focuses on customer care and business excellence, while continuously assessing
the effectiveness of QMS to demonstrate continual improvements.

Our quality objectives
 Timely and consistent delivery of quality products
 Adherence to global standards and specifications
 Compliance to applicable regulatory and statutory requirements
 Minimise errors and defects
 Provide technical and skills development training to all employees
 Protect and enrich the environment through sound environment management practices
during manufacturing

Types of Product:



 Solid Core Station Post Insulator :

Solid core station post insulators are comparatively lighter and have smaller diameters
than other types of post insulators of similar voltage class. These are ideally suitable for
compact installations which result in slim and neat appearance and afford better harmony
with other modern apparatus in any EHV/UHV substation. Solid core station post insulators
have superior antipollution performance, low RIV, better arc resistibility and lower
deflection under cantilever load.
Specifications
 Rating: up to 800 kV
 Creepage distance: 25 and 31mm /kV
 Applicable standards: IS, IEC, ANSI

Salient Features

Solid core station post insulators are comparatively lighter and have smaller
diameters than other types of post insulators of similar voltage class. These are
ideally suitable for compact installations which result in slim and neat appearance
and afford better harmony with other modern apparatus in any EHV/UHV substation.



Solid core station post insulators have superior antipollution performance, low RIV,
better arc resistibility and lower deflection under cantilever load.

 Long Rod Insulator :

Long rod insulators are absolutely puncture-proof, possess high arc resistibility
and are free from cement growth trouble. Long rod insulators can be used at suspension
and tension locations both as single and multiple strings as per system requirements.
Standard long rod insulators have high strength in compression and tension, provide
higher leakage distance with superior self-cleaning characteristics and are lighter when
compared to disc insulator strings of similar voltage class. These insulators are useful
for reducing the width of the right of way with consequential economy in the design of
the overhead line.

Specifications

 Rating: up to 800 kV
 Creepage distance: 25 and 31mm /kV
 Applicable standards: IS, IEC, ANSI

Salient Features

Long rod insulators are absolutely puncture-proof, possess high arc
resistibility and are free from cement growth trouble.

Standard long rod insulators have high strength in compression and
tension, provide higher leakage distance with superior self-cleaning
characteristics and are lighter when compared to disc insulator strings of
similar voltage class. These insulators are useful for reducing the width
of the right of way with consequential economy in the design of the
overhead line.



Long rod insulators can be used at suspension and tension locations both as single and
multiple strings as per system requirements.

 Traction insulators for railway electrification :

Traction insulators are 25 KV OHE insulators manufactured for Indian Railways.
These are solid core insulators suitable for normal and polluted zones and are designed as
per RDSO specifications.
Specifications
 Creepage distance: 25 and 31mm /kV
 Applicable standards: IS, IEC, RDSO specifications

Salient Features

Traction insulators are 25 KV OHE insulators manufactured for Indian Railways.
These are solid core insulators suitable for normal and polluted zones and are designed as
per RDSO specifications.

 Apparatus porcelain insulators :

The design concept for hollow porcelains is dependant on the complete design of
electrical equipment such as SF6 circuit breakers, air-blast circuit breakers, minimum-oil
circuit breakers, instrument transformers, condenser bushing and lightning arresters. The



porcelains are designed in consultation with the manufacturers of equipment so as to meet
the electrical and mechanical requirements. The manufacturing possibilities of shape, size
and dimensional tolerances of large hollow porcelains comply with Indian and international
standards.

 Specifications
 Either fitted with metallic flanges or without flanges for SF6 circuit breakers, instrument
transformers, condensor bushings, and lightning arresters upto 800 kV

 Maximum height in one unit construction: up to 2600mm
 Maximum diameter: 650mm
 Bore can be parallel, taper or bulge as per customer's specific design
 Applicable standards: IS, IEC, European norms 50062, ANSI.

Salient Features

The design concept for hollow porcelains is dependant on the complete design of
electrical equipment such as SF6 circuit breakers, air-blast circuit breakers, minimum-oil
circuit breakers, instrument transformers, condenser bushing and lightning arresters.

The porcelains are designed in consultation with the manufacturers of equipment so as to
meet the electrical and mechanical requirements. The manufacturing possibilities of shape,



size and dimensional tolerances of large hollow porcelains comply with Indian and
international standards.

 Solid core line post insulator :

Solid core line post insulators can be used as support for conductors on cross-arms of
transmission and distribution line poles. These insulators are recommended for polluted
zones and areas prone to vandal damages. Even if the insulator shed is damaged, there will
be little decrease in flashover voltage and power supply will not be disturbed. The damaged
insulator can be left in service and replaced conveniently. No change in cross arm is
necessary, if pin type insulators are replaced by line post insulators during maintenance.

Specifications
 Creepage distance: 25 & 31mm /kV
 Applicable standards: IEC, ANSI

Salient features



Solid core line post insulators can be used as support for
conductors on cross-arms of transmission and distribution line
poles. These insulators are recommended for polluted zones and
areas prone to vandal damages.

Even if the insulator shed is damaged, there will be little decrease in flashover voltage and
power supply will not be disturbed. The damaged insulator can be left in service and
replaced conveniently. No change in cross arm is necessary, if pin type insulators are
replaced by line post insulators during maintenance.

 Suspension disc insulators :

Suspension insulators (Disc porcelain) are the most widely used models for transmission
and distribution lines. Their design varies to suit different types of polluted zones and
mechanical strength as per customer's requirements.

Specifications

 Profile: Anti fog, normal, open profile
 Mechanical strength: up to 420 kN
 Creepage distance: up to 690 mm
 Applicable standards: IS, IEC, BS, ANSI, Australian specifications

Salient Features



Suspension insulators (Disc porcelain) are the most
widely used models for transmission and distribution lines.
Their design varies to suit different types of polluted zones
and mechanical strength as per customer's requirements.

 Pin Insulator :

Pin insulators of one piece or multipiece construction are widely used in low cost
distribution lines. Multipiece construction makes these insulators less vulnerable to damage.
A multipiece insulator can normally withstand the line voltage for a considerable time
without difficulty even if one shell is broken. Aditya Birla Insulators manufactures full range
of pin insulators for application in sub-transmission and distribution lines upto a system
voltage of 66/72kV. These insulators are available with creepage path to meet various
requirements of pollution.

Specifications

 Mechanical strength: 10 kN
 Creepage distance: up to 1080mm
 Applicable standards: IS, BS, IEC, ANSI, AS, VDE specifications

Salient Features



Pin insulators of one piece or multipiece construction are widely used in low cost
distribution lines. Multipiece construction makes these insulators less vulnerable to damage.
A multipiece insulator can normally withstand the line voltage for a considerable time
without difficulty even if one shell is broken.

Aditya Birla Insulators manufactures full range of pin insulators for application in sub-
transmission and distribution lines upto a system voltage of 66/72kV. These insulators are
available with creepage path to meet various requirements of pollution.

 Multi cone post insulator :

Cap and pin type insulators are designed mainly to support disconnecting switches,
busbars, conductors, and equipment for substations. They are capable of being stressed in
tension, compression, flexion, torsion and combined stresses upto the specified limits.
These insulators are more economical than other types of insulators used for similar
applications. Cap and pin type post insulators are divided into two main groups,
nonstacking and stacking units. Single units are available for service voltage upto 36kV
and multi-unit stacks are available for service voltage upto 245kV.



Specifications
 Rating: Up to 36 kV and up to 245 kV with multi units
 Mechanical strength: up to 32 kN
 Creepage distance: 1050 mm (single unit)
 Applicable standards: IS, IEC, ANSI specifications

Salient features

Cap and pin type insulators are designed mainly to support disconnecting switches, busbars,
conductors, and equipment for substations. They are capable of being stressed in

tension, compression, flexion, torsion and combined stresses upto the specified limits. These
insulators are more economical than other types of insulators used for similar.cations.



INTRODUCTION:

As we know that personnel i.e. manpower is one of the most crucial factor of
organization, any activity cannot perform in absence of manpower. Personnel management is
the management of people, employees & workers of an organization. Personnel management
is an art of getting things done through & with other people.

With reference to Indian unit of Aditya Birla insulator Ltd., there is personnel
department divided into 2 parts HRD & Training and personnel development in which the
responsibility is also be divided.

I have been visited personnel development of the company. The entire HRD officer
named Miss. KALPANA. According to him, personnel management is “How to get
continues Co-operation & assistance from the employees.”

This development concerned with the all department but main act is to train and
development of employees’ wages and salary, promotion selection, etc.



HR PLANNING:

“Manpower planning is the process of assigning the right number of people and
the right kind of people at the right place at the right time doing.”

Manpower planning is necessary at any organization to know about the positioning
of the prospect personnel and their skill.

Aditya Birla INSULATOR Ltd. conducts manpower planning according to the
different types personnel in the organization.

(A)Staff Planning:
Aditya Birla Nuvo Ltd. discuss various aspect related to the staff personnel which hold them
into the organization. Such important issue are:
• Comparable perks
• Top Management Commitment
• Recognition in Organization
• Clearer Goals
• Higher Profile Job

(B)Manpower Planning for Workers:

Aditya Birla Insulator. uses “PURTA” is known as the system of control through
budgets and standers in modern cost accounting and management costing “PURTA”
summaries the objective of the whole organization.

All department need additional requirements of manpower have to contact the
personnel department, which makes the arrangement for the required manpower.

The workers are divided into four categories:

• Viz
• Permanent
• Badli
• Temporary



 PLACEMENT & INDUCTION:

 PLACEMENT:

Placement may be defined as,” the determination of the job to which an accepted
candidate is to be assigned and his assignment to that job.” It is a matching of what the
supervisor has reason to think he can do with the job demands (job requirements) : It is
matching of what he imposes in strain, working conditions and what he other’s in the form
of pay roll, companionship with others, promotional possibilities etc.

After selection the employee is generally put on a probation period, ranging from one
to two years after his employment may be regularized provided that during this period, his
work has been found to be satisfactory only in very rare cases in the employee, once placed,
asked to quite and even then it is only when there is some thing very serious against him or
he is found guilty of contained negligence in the performance of his duties.

 INDUCTION:

Induction is a technique by which a new employee is rehabilitated into the changed
surrounding and introduced to the practices, policies and purposes of the organization. In
other words, it is a welcoming process the idea is to welcome a newcomer, make him feel at
home and generate in him a feeling that him own jobs, however small is meaningful and has
a significance as a part of the total organization.



TRAINING & DEVELOPMENT:

Every organization needs to have well-trained and experienced people to
perform the activity that have to be done. Training is a process of earning a sequence of
programmed behavior.

 Training for workers:
The HRD department prepares schedules for the workers in need of training for
developed the job. The company main purpose is to give knowledge about new technology
and to confirm the main purpose to give training is:

• Improving the skill and knowledge of worker towards quality of product.
• Disciplined good contact and job responsibility
• Operate the working program

 Training for the clerk & Technical Staff:

As far as clerical staff is concerned, they are not given any training no training
classes and courses are run but the supervisors are trained for:

 Development of leadership quality
 Cost control and cost effectiveness
 Going knowledge of responsibility
 Knowledge of all disciplinary action



 Management of development:

Any management development program should have five objectives:

 To improve the job performance of managers currently input.
 To provide adequate “cover” in the event of unexpected short-term changes such
as death, transfer, resignation, or unanticipated developments.
 To raise the general level of management thinking & understanding in all
branches and at all levels in the organizations.
 To provide supply of managerial talent which will meet the anticipated needs of
the future development of the organization in terms of environment change and
growth?
 To extend the frontiers of knowledge in the understanding of the management
function.

A unit of Aditya Birla INSULATOR Ltd., attempts at improving its every
individual’s managerial effectiveness thorough a planned and deliberate profile and process
of learning.

This is ball background of the training, which is concerned with different categories
sometime management, arranged some training program and calls all the staff in training.

This way the management developed skill of employees.



 PERFORMANCE APPRAISAL POLICY:

It is the process of evaluating the performance and qualification of the employee in
terms orf the requirement of the job, for which he is employed.

The main aim of the evaluation system is to identify the performance gap. This gap is
the shortfall that occurs when performance does not meet the standard set by the
organization as acceptable.

Performance appraisal of Aditya Birla INSULAROR Ltd. Is carried on three ways.

 Motivation:

“The emphasis industrial psychology has shifted from the studies of the isolated
individual and physical environment to the consideration of motivation and morale.”

In Aditya Birla INSULATOR Ltd. motivate staff by performance appraisal. Every
staff member recognizes his work and he always tries to do better work and effective work if
his work is recognized. Aditya Birla INSULATOR Ltd. motivates staff by performance
appraisal. Example their regularity works their honesty an also such things are being kept in
mind.

 Quality Circle:

Quality circle is a group of workmen working voluntarily for in improvement in their
total quality of work. The basic objective is help working voluntarily for improvement in
their total quality of work. The basic objective is help workmen in developing themselves.
There are 36 quality circle in Aditya Birla INSULAROR Ltd.



 Suggestion Scheme:

It is a process of inviting suggestion from employee to motivate employee by
involving in the organization to development and improvement of the company.

In Aditya Birla INSULATOR Ltd., employee suggestion are invited and invited and
then possible suggestions are put into the action. Practical suggestions are awarded.



 WELFARE POLICY & ROLE OF HRD:

A unit of Aditya Birla INSULATOR Ltd. provides the following facilities.

 Welfare Center:
The welfare center was established in 1993 for the benefit of workman and their
families. The facilities include games like volleyball, tennis, chess, reading room, carom and
library.

 Quarters facility:
The Indian Rayon, a unit of ABI. gives quarter facilities to its employees, the staff as well as
the workers. Basically this quarter facility is given on the basis of the category of employee.

 Recreational & Entertainment facility:

The company provides many types of sports facility to its workers. There are lawn tennis
courts, table tennis, cricket ground etc. The company also arranges Rayon
Cup cricket tournament every year between the very large companies in
Saurashtra.

 Independence and Republic Day celebration:
The company celebrates the independence and republic day every year. On this day
the program of the national flag hosting is followed by sweet distribution to all the
employees of the company.

 Credit Co-operative society:
Members are given loan facility up to an amount of Rs.60000 at the nominal interest
rate. This is managed by Co-operative society.



 School facility:

It has set up a school both English Medium as well as Hindi medium. English
medium is up to 12th standard having both Science and Commerce stream and affiliated with
GSEB. Whereas Hindi medium school has been set up five years back. It is the only Hindi
medium school in the entire district. It is upgraded by one standard every year.

 Library facility:
Company is having its own library, which contains useful books related to all sectors
or the study and magazines of all kinds. It also provides Internet facility to its employee.

 Birla Mandir:
Birla group is set up it for spiritual and religious activities. It is one of the popular
landmark and religious spot in Veraval.

 Canteen facility:
This canteen facility runs on no profit no loss bases. It provides snacks, tea and
coffee at nominal rate to the employees.

 Voluntary Retirement Scheme (VRS):
This would be application to both staff and the worker of the company provided with
employee is above 40 years of age or have minimum of 10 years service.



 Role of Human Resource Development:

The human resource development department of the Indian Rayon, a unit of Aditya
Birla Nuvo Ltd. undertakes training program in various sectors.

 Development of effective communication
 Relationship Management
 Leadership Development
 Managerial assessment of Proficiency
 Managerial Effectiveness
 Team Building
 Time Management, etc.



MARKETING DEPARTMENT



 INTRODUCTION:

Marketing is a process by which individuals and groups obtain what they need and
want by creating and exchanging products and value with others.

A market consists of all the potential customers sharing a particular need or want
who might be willing & able to engage in exchange to satisfy the need or want. The concept
of market brings us full circle to the concept of marketing. Marketing means working with
the markets to actualize potential exchanges for the purpose of exchanging human needs and
wants.

“A market may be considered as a convenient meeting place where buyers and
sellers gaiter to gather for exchange of goods and services.”

The unit of Aditya Birla Insularor Ltd. has a very efficient and excellent marketing
department, which tries to provide maximum satisfaction to the customers while having
reasonable, profits on the other hand.



PRODUCT RELATED INFORMATION:

 Product Life Cycle: -

The life cycle of the product is similar to the life cycle of the human being.
The Product life cycle is an attempt to recognize distinct stage on the sales history of
the product.

A unit of Aditya Birla INSRULATION Ltd. is passing from the maturity
stage so this company can makes changes in products and its technology as adopting
horizontal as adopting horizontal spinning machine for same deniers. Development of
coning machine includes better designs and effort to enable up graduation in product
quality and quality control system.

As a human being each product or unit has its own life cycle, which starts with
its production and ends with its stoppage. Whatever may be the starting strategy that
will not be same as other strategy. The product has different marketing strategy;
wording to their capacity in the market within some period of time product will
change its price, packing, etc. because of the competition in market i.e. your strength
is your competitors weakness and your opportunity is your competitors threat.

Indian unit of Aditya Birla insulator Ltd., is passing from the maturity stage so
this company can makes changes in products and its technology as adopting
horizontal as adopting horizontal spinning machine for same deniers. Development of
coning machine includes better designs and effort to enable up graduation in product
quality and quality control system.



PRICING METHOD AND STRATEGY:

Pricing is the key factor, which remarkably contribute to the sales operations. Price
may be defined as, “ The value of product attributes expressed in monetary terms
which a consumer pay or is expected to pay in exchange and anticipation of expected
offered utility.” Price is the only element in the marketing-mix that generates revenue.

The company has to consider many factors in setting its pricing policy:

• Pricing objectives
• Determining demand
• Estimating costs
• Analyzing competitors prices and offers
• Pricing methods
• Selecting final price

In unit has not adopted any clear pricing policy but it pursues the mixture of following
pricing strategies.

 Competition oriented pricing policy:

Under this policy, all manufacturers meet together at Mumbai and they fix maximum
price level by negotiating with each other. Sometimes the Co. also uses the prestige pricing
method because it believes that the product with higher quality can attract the customer with
higher price.

 Demand oriented pricing policy:

Under this policy, the company uses method of pricing at market. This helps to avoid
the price competition and price war in the market.



 Cost oriented pricing method:

Under this policy, the company uses the method of target pricing. It fixes a target
return of total cost. It uses break-even analysis for deciding cost plus pricing which helps in
determining the level of output.

PROMOTION MIX:

“Promotion consists of those activities that are designed to being a
company’s goods or services to the favorable attention of customer.”

Every company is inevitably cast into the role of communicator and
promoter.

Sales promotion consists of a decrease collection of incentives tools,
mostly short termed designed to stimulate quicker on greater purchase of
particular products or services by consumer or the trade sale promotion yield
faster & more measurable products or services by consumers or the trade sales
promotion yield faster sales.



FINANCE DEPARTMENT



INTRODUCTION:

 FINANCIAL MANAGEMENT CAN BE DEFINED AS:

‘The management of the finance of a business/ organization in order to achieve
financial objectives.’

Taking a commercial business as the most common organizational structure, the key
objectives of financial management would be to:
• Create wealth for the business
• Generate cash
• Provide an adequate return on investment bearing in mind the risks that the business
is taking and the resources invested.

There are three key elements to the process of financial management:

 Financial Planning:

Management needs to ensure that funding is available at the right time to meet the
needs of business. In the short term, funding may be needed to invest in equipment and
stocks, pay employees and fund sales made on credit.

In the medium and long term, funding may be required for significant additions to the
productive capacity of the business or to make acquisitions.

 Financial Control:

Financial control is a critically important activity to help the business ensure
that the business is meeting its objectives.



Profit and loss account (in crore)
2009-10 2008-09
Net Revenue 4,702.36 4,687.58
Other Operating Income 125.11 98.60
Net Income from Operations 4,827.47 4,786.18
Expenditure:
Decrease / (Increase) in Stock in (21.6
Trade 5.06 7)
Consumption of Raw Materials 2,196.27 2,322.01
Purchase of Traded Goods 194.94 242.68
Employees Cost 347.73 294.41
Depreciation and Amortisation 180.10 165.96
Power & Fuel 431.57 537.38
Other Expenditure 888.19 857.70
Total Expenditure 4,243.85 4,398.48
Other Income 70.78 65.26
Earnings before interest and tax 654.40 452.96
Interest and Finance Expenses 334.10 290.65

Earnings before Tax 320.30 162.31
Tax expenses 41.15 60.02

Provision for tax for earlier years (4.25 (35.1
written back (net) ) 5)
Net Profit / (Loss) 283.40 137.44

Senior Vice President
Paid Up Equity Share Capital (Face 103.01
Value of Rs.10 each) 95.01
Basic Earnings Per Share (Rs) 28.81 14.46

Manager

 ORGANIZATION STRUCTURE:
Dy. Manager Chief Accounts Dy. Manager
ADITYA BIRLA INSULATOR has adopted a clear and detail division for function. Vice
Officer
president is responsible for overall result of finance activities of department in the company.
The Accounts Officer
company is having LINE type of organization in the finance department.Officer
Accounts
Share Accounts

Officer

Assistance Accounts
Officer
Officer
Assistants

Assistants Assistants


FINANCE PLANNING:

Financial planning is one of the most important aspects of the finance managers’ job.
Financial management has to make plan for capital investment and also for working capital
for the ensuring year. In ABI the task of financial planning is divided into 3 parts:

 TOP LEVEL



This level prepares planes pertaining to the long-term requirement of the form of capital
expenditure, permanent and short term needs, inflows and outflows.

 MIDDLE LEVEL

This is constituted by the eventually routine finance plan. This level is generally concerned
with listing and calculation of outflow.

 LOWER MIDDLE LEVEL

In this level generally concerned with the listing and calculation of outflows. In INDIAN
RAYON financing decisions are very crucial and Head Office at Mumbai plan for new
project of the company.

CAPITAL BUDGETING:

Capital Budgeting decision is a firm’s decision to invest its current funds most
effectively in long term activities in anticipation of an expected flow of ever of future
benefits over a series of years.

With reference to ADITYA BIRLA INSULATOR company has been make a capital
budgeting at every year by taking services of experts and financial department.



There are various methods of capital budgeting like:

 Internal Rate of Return
 Profitability
 Pay Back Period method Accounting Rate of Return method

At present the main objectives of capital budgeting in ABI are mainly replacement and
modernization of machine and fixed assets and business expansion by adding new
machinery technology and fixed assets this type of decision is taken by main head office
Mumbai and experts of finance department.

Generally, company uses the techniques of Average Rate of Return for the purpose of capital
budgeting. In this method company fixes average rate of return required in advance.

The average rate of return is calculated as:

Average Annual Income

A.R.R =

Average Investment

Many times company also use the other techniques of capital budgeting. After calculating
which may select or not.

ADITYA BIRLA INSULATOR has huge investment so it would be a capitalized company.

MANAGEMENT OF FIXED ASSETS:

Fixed assets are those, which are fixed and listed by a business management of fixed assets
is very important task which management has to face because fixed assets have relatively
higher cost.



To manage the fixed assets is most important task facing management today because of
risk and investment factors. The fixed assets are that kind of assets in which of risk are
for long period of time.

 Financial decision making:

A key financing decision is whether profits earned by the business
should be retained rather than distributed to shareholders via dividends. If
dividends are too high, the business may be starved of funding to reinvest
in growing revenues and profits further.

MANAGEMENT OF WORKING CAPITAL:

Working capital is that capital which is required maintaining the daily expenses of the
business management of working capital refers to the fine investment in current assets.
Current assets are assets, which are converted into cash with operating cycle. Current
assets include cash, short term, securities, debtor’s bills receivable and stock.



Management of working capital is an integral part of finance management and it has earning
on the objective of the objective of the owners wealth.

Working capital is essential to operate the fixed assets in the sales activities. However sales
do not converted into cash instaneously. Therefore a need of working capital arises.

There are 2 concepts – Gross working capital, Net working capital.

 GROSS WORKING CAPITAL: -

Means total current assets while.

 NET WORKING CAPITAL: -

Means between the current assets en– current liabilities difference.

Cash Work in progress

Semi finished goods

Debtor sales Finish goods

MANAGEMENT OF RECEIVABLES:

The management of receivables is basically concerned with retaining the old
customer and mining t5he new once by collecting a regulating the cost. Management of
receivable also known as trade receivable or customer or debtor receivable.



It means when firm make ordinary sales on credit and payment has not been received
yet, such management of receivable.

Indian rayon grants the credit term to its customer for 15 days. However in
exceptional cases, it is increased to certain extent. The purchasing sends bank drafts on
expiry of credit period.

The receivable arises out of three characteristics:-

 It involves an element of risk, which should be carefully analyzed.
 It is based on economic value.
 It implies future management of receivable.

Management of receivable concerned with retaining the old customers and winning new by
controlling and regulating the costs Indian Rayon grants the credit from its customers for 15
days however in exceptional cases.

Debtors Turnover Ratio = Debtors

Average daily credit sales

FINANCIAL LEVERAGE:

Financial leverage is also called on trading on equity. A company can finance its
investment by verity of sources such as preference shares capital including reserves and
surplus.



Financial leverage is defined as the activity of firm used financial leverages to magnify
the effects of firms earning per shares. The financial leverage is controllable and also
completely avoidable leverage. The degree of fund collected by the firm from outside is
called financial m leverage.

INDIAN RAYON also makes the use of the debt but the following ratio will show the clean
picture of it.

Financial Leverage = EBIT

EBT

FINDING:

- Provides all the crucial information on Aditya Birla insulat or Limited required for business
and competitor intelligence needs



- Contains a study of the major internal and external factors affecting Aditya Birla insulator
Limited in the form of a SWOT analysis as well as a breakdown and examination of leading
product revenue streams of Aditya Birla insulator Limited

-Data is supplemented with details on Aditya Birla insulator Limited history, key executives,
business description, locations and subsidiaries as well as a list of products and services and
the latest available statement from Aditya Birla insulator Limited

Reasons to Purchase

- Support sales activities by understanding your customers’ businesses better

- Qualify prospective partners and suppliers

- Keep fully up to date on your competitors’ business structure, strategy and prospects

- Obtain the most up to date company information available

BIBILOGRAPHY
Web site
- www.adityabirlainsulator.com.

- www.adityabirlawikipedia.com.



- www.adityabirla.com

Books
- Human resource management (11th edition)

GARY DESSLEL

BIJU VARKKEY

CONCLUSION:

As a student of MBA, this visit helps me to increase my knowledge of industrial situation. In
classroom, we only study the books but in the training one can know that how to apply these
theories in practical. So this visit helped me in gaining such knowledge of practical life.

The industrial visit helps in future. I have learnt many aspects like how to handle the
workforce, how to interact with workers and colleagues, how to plan about anything,
management of production procedure, etc.

During this visit, I have got full co-operation from the managers, officers and workers of the
Aditya Birla Insulator. And also they provide their valuable time as well as precious
suggestions about practical business.


Sandip.(mba)

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Sandip.(mba)