INRODUCTION

COMPANY PROFILEBirla Corporation limited is a multi product multi interest more than thousand carore conglomerate. It plays significant roles in cement industry. The story of Birla Corporation limited began 89 years ago, when young man Ganshayam das Birla came to Kolkata. A man of vision an enterprise, Sri G.D.Birla set first Indian owned jute mill near Kolkata in 1919. The firm was named Birla jute manufacturing company limited. Time watched as small unit prospered, it also embarked a young man to bacon the new industrial India.

After that Shri Madhav Prasad ji Birla transformed the humble jute manufacturing company into a mighty conglomerate Birla corporation ltd. The name of company changed to Birla jute and industries limited in 1983. In view the opportunities offered by the liberalised fast growing economy and to promote brand equity and international image the name was changed to Birla Corporation limited in 1997. After the demise of M.P Birla, his wife Priyamvada Birla took over a chairman of BCL and continue to leap company till her death in july 2004. Today under the chairmanship of Mr. R. S. Lodha Company has crossed the 1800 crore plus turn over and has wide spread interest in which cement, jute, and auto trims, synthetic yarn, are their main product. Birla Corporation limited is keenly aware of its social responsibility, it provide s education and healthcare facility to for employees and their families and community at a large.

CEMENT INDUSTRY

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Cement is a binding material used in civil construction. It is fine powder, which on addition of requisite addition of water is capable of harding by the chemical interaction of its constituents with water and is capable of blending together. The real foundation stone of present industry was laid in the year 1912 when India Cement Corporation limited established a small factory at Porbander in Kahtiawa. This factory commenced in 1914 at the rate of about 100 metric tons per day.

The raw material required for cement making are lime stone, coal, clay fly ash, and gypsum which regulate setting time. There are two process of cement manufacturing wet and dry. In the wet process the raw materials are grounded along with water, but in dry process materials are grounded in dry state.

Regarding the varieties of the product there are eight varieties in the industry, Portland cement, Blast furnace, Slag cement, Portland pozzolana cement, Grey cement, White cement.

Important cement producing companies in India are Associated Cement Company, Birla Cement Corporation, Jaypee Cement Corporation, Gujrat Ambuja Cement etc in private sector and in public sector important Cement Company is Cement Corporation of India Ltd.

SATNA CEMENT WORKS, SATNA (M.P)

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Commissioned in 1959, Satna Cement Works (SCW) has the distinction of being the first Cement plant in Birla Group manufacturing Cement with the then prevailing "Wet process" technology. In keeping with technological developments, the plant was upgraded and switched over to "Dry process" of Cement manufacturing in 1989. The plant has been conferred with ISO-9002 and ISO-14001 certification in recognition of its performance in quality management and environmental management systems. Besides the conventional general purpose Cement OPC 33G, 43G and 53G, Satna Cement manufactures PPC utilizing Flyash received from NTPC Thermal Power Plant at Unchahar(U.P) and also special purpose Cements viz. Sulphate Resistant Portland Cement, Low Alkali Cement and 1RS.-T-40 grade Cement for Railway sleepers. This plant has the distinction of being the only plant in INDIA with an Alkali bypass system installed. In consonance with its commitment to quality, necessary instrumentation facilities including X-Ray analyzer and X-Ray diffractometer are provided for monitoring and controlling quality of Raw materials and Clinker/Cement. While domestic market requirements the met with our products under the brand name "BIRLA CEMENT KHAJURAHO" and "BIRLA SAMRAT", our Cement is being regularly exported to Nepal and Bangladesh under the brand name "CAMEL" & "ROYAL TIGER".

An split location Cement Grinding unit was commissioned in Dec.1998 for Flyash base PPC grinding capacity of 30000 TPM, Clinker is being sent from Satna and Flyash is collected from NTPC Thermal Power house at Unchahar (U.P).

RATIONALE OF THE STUDY

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The purpose of this study is to develop knowledge about Birla cement:-

1. Understanding factors like importance of ratio analysis, working capital budgeting, and inventory management. Suggesting the best possible solution to the problem faced during survey to organization.

2. The infrastructural segment is growing very fast and therefore cement industry being feeder to infrastructure has shown robust growth. Both intrastate as well as cement industry provide good employment opportunity.

REVIEW OF LITERATURE

India is the 2nd largest cement producer in world after china .Right from laying concrete bricks of economy to waving fly over’s cement industry has shown and shows a

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great future. The overall outlook for the industry shows significant growth on the back of robust demand from housing construction. Cement production grew at the rate of 9.1 per cent during 2006-07 over the previous fiscal's total production of 147.8 mt(million tons). Due to rising demand of cement the sales volume of cement companies are also increasing & companies reporting higher production, higher sales and higher profits. The net profit growth rate of cement firms was 85%. Cement industry has contributed around 8% to the economic development of India. Outsiders (foreign players) eyeing India as a major market to invest in the form of either merger or FDI (Foreign Direct Investment). Cement industry has a long way to go as Indian economy is poised to grow because of being on verge of development.

Marketing Strategy is a process that can allow an organisation to concentrate its limited resources on the greatest opportunities to increase sales and achieve sustainable competitive advantages.

The marketing Policy of Birla Cement is Product quality exceeding customer’s expectations timely dispatches attractive and functional packaging Quick business response prompt after sales service adhering to fair and ethical business services.

OBJECTIVE AND SCOPE OF STUDY

MAIN OBJECTIVE:-“Ratio Analysis & Inventory Management of Birla cement in Satna region”

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SUB OBJECTIVE:-1. Maintenance of large size inventory to assure continuity of operation in the most

efficient manner.2. Minimize the firm’s investment in inventory to maximize profitability.3. Proper and efficient use of raw material.4. No bottleneck in production.5. Improvement in Production and Sales.6. Efficient and optimum use of physical as well as Financial Resources.

SCOPE OF STUDY:-Company can use this information for the betterment of the policies and making new strategies.

RESEARCH METHODOLOGY

It’s imperative that any type of organisation in the present environment needs systematic supply of information coupled with tool of analysis of for making sound decision which involves minimum risk.

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A research design is purely and simply the framework or plan for a study that guides the collection and analysis of the data.

For Every Comprehensive research a proper research methodology is indispenensable & it has to be properly conceived. The methodology adopted by me is as follows:-

Research Design

Problem Identification

@ Find out Ratios of Birla Corporation Ltd and compare with other industry in same line of Business.

@ Find deviation of calculated ratios from standard or Norms

@ Calculating the working capital requirement of Birla Corporation Ltd.

Information needed

@ Information about firm’s assets, liabilities, revenue, expenditure, bankers, investment etc.@ Information about firm’s loan, security, stock level & other financial information.

Data Collection

My data collection source was secondary i.e.

@ Annual reports of companies

@ Balance sheet

@ Profit & Loss Accounts

Analysis & Interpretation

The data collected and analysed subjectively as well as graphically where it is possible. The analysis is based upon available information & interpreted accordingly.LimitationMy scope of study is limited to the annual reports, Balance sheet of units & number of companies taken for analysis.

REFRENCES

1. FINANCIAL MANAGEMENT by I.M. Pandey2. RESEARCH METODOLOGY by C.R.Kothari.3. MARKETING RESEARCH by Tall, Donals & Howkins.4. www.birlacorporation.com5. BUSINESS MAGZINES i.e Business Today, Business World.6. NEWSPAPERS i.e Economic Times.

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7. BIRLA CORPORATION LIMITED annual magazines and reports 8. www.acclimited.com 9. www.prismcement.com10. www.jalindia.com11. www.maiharcement.com

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