APROJECT REPORT

ON VARMORA

WALL TILES

Prepared ByAghera Pranav R.

S. Y. B. B. A.

Roll No. 2

Academic Year = 2013-2014 College

Harivandana college Rajkot

1

Submitted ToSaurashtra University

Guided ByMr. ram sir

DECLARATION

I, the undersigned Mr. Aghera Pranav R. student of

T.Y.B.B.A. hereby declare that the project work presented in

this report is my own work and has been carried out under

the supervision of Mr. ram sir of harivandana college Rajkot.

This work has not been submitted previously to any

other university for examination or any other purpose.

Date:

Place: Rajkot

-----------------------

(Aghera Pranav R..)

2

PREFACE

Today, in almost all f ields, management has become an

integral part. We need to manage over daily routine. BBA, the

stream of management teaches us and helps us to apply it

practically.

In this project work, I have carried all the areas of

management l ike production, personnel, marketing and finance.

One needs to keep equally balanced all the departments to run

the entire company smoothly. I have thus tried to prepare this

project taking into consideration all the areas and aspects of the

company.

3

ACKNOWLEDGEMENT

First I would l ike to thank Harivandana college for

providing me an opportunity to flourish my knowledge apart from

theory. I would also thank Professor Mr.ram sir, who has

constantly guided me for the project.

I am thankful to “Varmora Industries” for granting me

permission to prepare a report on their f irm and also for their

excellent guidance with complete interest. I am also thankful to

the owners, whole staff of this industry for their valued co-

operation and helped me to complete this project on the

industrial visit.

Date:

Place: Rajkot

-----------------------

(Aghera Pranav

4

INDEX

Sr.No. PARTICULARS PAGE

NO.

1. GENERAL INFORMANTION 06

2. PRODUCTION DEPARTMENT 16

3. PERSONNEL DEPARTMENT 28

4. MARKETING DEPARTMENT 48

5. FINANCE DEPARTMENT 63

6. SWOT ANALYSIS 80

7. FUTURE PLANE 83

8. SUGGESTION 85

9. CONCLUSION 87

10. BIBLIOGRAPHY 89

5

6

Sr.No. PARTICULARS PAGE

NO.

1. BIO-DATA OF COMPANY 08

2. HISTORY & DEVELOPMENT OF ORG’Z

09

3. ORGANISATION CHART 11

4. SIZE OF THE FIRM 12

5. FORM OF ORGANIZATION 13

6. LOCATION AND SIZE PREFERENCE

14

7. TIME KEEPING SYSTEM 15

BIO DATA OF COMPANY

Name of the Firm Varmora Granite Pvt. Ltd.Year of Establishment 1994Form of Organisation Private LimitedSize of Organisation Large Scale

7

Location of Off ice Priya Darshini Complex,Office No. 415,Savsar Plot,Morbi – 363 641

Location of Factory Varmora Granite Pvt. Ltd.8/A, National Highway,Dhuva

Phone Number Office 02822 – 220213, 227171Phone Number Factory 02822– 287745Fax Number 02822 – 287826E-Mail info@varmora.comWeb Site www.varmora.comRegistered Certi f icate No. U26914GJ2002 PPC 43194Sales Tax No. 0922008001CST No. 99984063Excise Registration No. AABCV7523MXM001Product WALL TilesNo. of Employees 107Bankers SBS Main Branch, MorbiAuditors SBS Main Branch, MorbiName of Promoters Shri Vallabhbhai J Patel

Shri Jagjivanbhai G PatelShri Pramodbhai P Patel

Board of Directors Mr. V J PatelMr. T J PatelMr. P P Patel

Investment 15 CroresArea Covered 17 AcresMarket National and International

HISTORY & DEVELOPMENT OF

ORGANISATION

8

The varmora group is a private l imited company which

produces different kinds of things. Each and every unit has got

other industries of its town. It contained when the firm was

incorporated, who were the raise, what way its purpose, what

are the products manufactured by them, etc.

This group all promoters are mostly from the Vil lage Sara,

which comes under the District Surendranagar. They

incorporated to cultivation and they have good business of

cotton and other products in Vil lage Sara. It is established in

1984. They started a unit of manufacturing of roofing ti les under

name and style M/s. Sunshine Tiles and potteries at Morbi.

They have secured mill from SBS Main Branch, Morbi.

In 1987, they have organised another roofing ti les unit at

Lilapur Road, Morbi under the name and style of M/s. Jaystar

Industries. The workers are very familiar to work in this

industry.

In 1991, they have organised another unit of manufacture

of nuts and bolts of MS and SS at Vadhwan GIDC under the

name and style of varmora Fasteners.

In 1994, they have started the other products. They

manufacture of ceramic glazed wall t i les under the name and

style of M/s. Sunshine Ceramics. In 1998, they have also

9

started another industry, under the name and style of M/s.

Jayson Ceramics

Looking to the demand of ceramic floor ti les experience in

this l ine is most important and the group has more than 60

dealers network, which is necessary to business. So, they have

also started another industry, under the name and style of M/s.

varmora Ceramics Pvt. Ltd.

In 2002, they have also started another industry, under the

name and style of M/s. Varmora Granite Pvt. Ltd. This

industry’s product is to manufacture vitrif ied ti les only.

It is good for them that they don’t have to find another young

team because it is already well equipped with the family

members.

10

ORGANISATION CHART

11

SIZE OF THE FIRM

According to the definit ion given by Government of India, the

size of the industry can be divided into three main types.

Small Scale Organisation

Medium Scale Organisation

Large Scale Organisation

If company’s investment in plant and machinery is more than

15 crores, it is called large scale organisation.

The investment of “Varmora Pvt. Ltd.” in fixed assets is of

Rs. 180,100,000. Therefore, it is coming under the category of

large scale organisation. It also uses manpower, electronic

machinery and having more than 1700 workers.

12

FORM OF ORGANISATION

According to the form of organisation, the organisation can be

divided as follows:

Private sector unit

Public sector unit

Joint sector unit

In this firm, it is a private l imited firm.

13

LOCATION ANDSITE PREFERENCE

The site of this unit is located at 8/A – National Highway,

at Dhuva, which is only 18 Kms. away from Morbi City. It is in

ceramic zone with numbers of other ceramic units. It is a main

and most important part of industry has chosen very simple and

suitable location. It plays a vital role for location.

Land

In Dhuva at Morbi, land and labour are found very cheap,

so Varmora Wall t i les started at this place.

Labour

In big city labour cost is very high, but in Dhuva at Morbi

provide cheap and educated skil led labour because of the

ceramic zone is situated.

Transport

In Dhuva at Morbi is situated in ceramic zone, so

transportation facil i t ies are also available .

14

TIME KEEPING SYSTEM

Time keeping system is very important as all the workers

should arrive at reporting time and start their work immediately.

If they are irregular than there would be less outcome and

expected target wil l not be achieved. Therefore, the workers are

given cards in which their arrival and departure time is written

regularly and therefore punctuality is maintained.

Industry

This industry is running for continuous process i.e. 24

hours. It is working in 3 shifts. They are:

08:00 AM to 04:00 PM

04:00 PM to 12:00 Midnight

12:00 Midnight to 08:00 AM

Office

Office hours for industry are as under.

08:00 AM to 12:00 Noon

02:00 PM to 06:00 PM

15

16

Sr.No. PARTICULARS PAGE

NO.

1. INTRODUCTION 18

2. RAW MATERIAL AVAILABLE 19

3. RAW MATERIAL USED 20

4. INSPECTION OF RAW MATERIAL 21

5. TYPES OF MACHINES 22

6. PROCESS OF PRODUCTION 24

7. ABOUT PRODUCTS 26

8. QUALITY MANAGEMENT 27

INTRODUCTION17

The production of a firm is concerned with the creation of a

product or services required to satisfy customer needs. In any

business, suppliers are needed for product or service, it is quite

obvious that activit ies of production system must be related to

the customer demand or reflected in the continuous flow of

order.

It is the most important department amongst the other

departments of an organisation. Personnel department, f inance

department, marketing department are very much depended on

production department.

18

RAW MATERIAL AVAILABILITY

Raw materials are the basic requirement for any industry.

Raw materials are converted into finished goods after various

processes on it.

Raw materials are available with help of roadways if

purchased from the country. If the materials are purchased from

other countries than it is available with help of railways.

19

RAW MATERIAL USED

List of raw materials used for production of Wall t i les

Raw Material Place where it is obtained

Pots feldspar RajasthanSoda feldspar Rajasthan

Quartz RajasthanBall Clay RajasthanAshapura

ClayKutch

Kadappa Clay Andhra PradeshChina Clay Gujarat

Ukraine Clay Import from EuropeSTPP Import from China

Body Stain Import from ItalySoluble Salts Import from China

LPG Madhya PradeshGujarat

Zircon Import from Australia

20

INSPECTIONOF RAW MATERIAL

Raw materials are inspected and checked before they are

sent to production department. It is maintained in Varmora as

per guidelines of ISO-9002.

Flow chart for inspection of raw material can be showed as

follows.

Sampling from truck

MC% content

Grinding

Drying

Powder preparation

MC% addition

Pressing

Drying

Firing

Loss on ignition

Fired colour

Water absorption

21

TYPES OF MACHINES

90% of machineries used in Varmora Wall Tiles are imported

from Japan.

List of Machineries

Weighing hopper

Conveyor

Wader

Ball mil l

Stirrer

Bungler

Spray drier

Slip pump

Silos

Vibrator with magnet

Elevator

Hydraulic press (h600 mt)

Chill ing plant

Loading machine

Horizontal dryer cooler box

Glaze l ine

Unloading machine

Screen printing machine

Compensator

22

Head polishing l ine

Fast single layer roller kiln

Chamfering l ine

Souring l ine

Plastic strapping machine

Fork l ift

Air compressor

Vertical drier

Generators

23

PROCESS OF PRODUCTION

Production process is very important process as the

product manufactured in the company should satisfy the need of

the customer. The quality is also to be maintained and the

given target should be achieved in the given time period. The

following are the main production stages.

Processing of raw material

The first and foremost step to manufacture Wall t i les is

batching i.e. feeding the box with different types of clay

according to the percentage decided. Batching includes

following types of clay.

Ukraine Clay 16%

Ball Clay 5%

China Clay 20%

Soda Feldspar 19%

Potash Feldspar 35%

Quartz 5%

Formation of tile body and drying

The powder is taken from the silos and after sieving on a

vibrator fitted with a magnet, it is fed into hoppers of the

hydraulic press where the powder is pressed in the shape of a

24

t i le of specific size as per the cavity of the die. Green ti les

coming out of the press are sent to the horizontal roller dryer

where they are heated to a specified temperature to remove the

moisture.

Preparation of designs and screen printing of tiles

In the glaze l ine and printing section, various types of

designs are prepared and printed on the dried ti les by applying

colours on the screen printing machine.

Firing

The ti les thereafter are fed into the fast single layer roller

kiln in which the ti les are fired. The kiln has different

temperatures ranging from 500 0C to 15000C in different zones.

Polishing

The baked ti les are subjected to polishing by using 32

head polishing l ine. The ti les are also side chamfered. Multi

f inish ti les do not need polishing operation.

Sorting and packing

The polished ti les are subjected to quality checking and

sorting, where an operation marks out ti les with defects and

different grades quality. Different grades of f inished ti les are

then packed into different types of packing box which are

marked accordingly.

25

ABOUT PRODUCTS

Varmora Wall Tiles are manufacturing vitrif ied ti les having

various categories and sizes. They manufacture ti les of

different plain colours l ike:

Terry cotton

Mushroom

Ruby pink

Jaisalmer

Dove gray

Ivory

Jet black

White

Aqua marina, etc.

In marble series, they are having following range.

Vogue

Venice

Valerie

Vixen

Volcano

Virgin

Vital

Allun

26

QUALITY MANAGEMENT

Quality control means checking the quality, size, shape,

capacity and usefulness of some of the samples selected from

lot of the finished product. If any variations are there than they

are to be corrected or that useless product is send to scrap

yard. A well defined quality management system satisfying ISO

9001-2000 quality standard and continual improved.

27

28

Sr.No. PARTICULARS PAGE

NO.

1. INTRODUCTION 31

2. ORGANIZATION CHART 32

3. RECRUITMENT & SELECTION 33

4. HUMAN RESOURCE PLANNING 35

5. PLACEMENT & INDUCTION 36

6. TRANNING OF EMPLOYEE 37

7. PERFORMANCE APPRIASAL SYSTEM

38

8. WAGES & SALARY ADMINISTRATIVE

39

9. TRADE UNION 40

10. COLLECTIVE BARGAINING 41

11 RECORD KEEPING SYSTEM 42

12. EMPLOYEE BENEFITS 43

13. PROVIDENT FUND SCHEME 44

14. PROMOTION & TRANSFER 45

15. GRAIVANCE HANDLING SYSTEM 46

16. INDUSTRIAL RELATION 47

29

INTRODUCTION

Personnel management has a vital importance in modern

industrial organisation. Personnel department is the part of

30

management, which is primari ly concerned with establishment and

maintenance of personnel relations.

In this company, there is a separate personnel department,

where al l the decision regarding the personnel’s is taken by

personnel manager. He has the f inal authority. The personnel

manager of this f irm is Shri Pramodkumar P. Patel.

31

ORGANISATION CHART

In Varmora Wall Ti les Pvt. Ltd., separate department for

personnel for the achievement of goals and the personnel manager

has authority and higher status in the organisation in his own

department.

32

RECRUITMENT AND SELECTION

Recruitment

Every firm or company needs persons to perform different

works. In this shift ing process only manpower have been

determined, recruitment is next logical step. It is a l inking

activity bringing together those with job and those seeking job.

According to one author, “Recruitment is the process of

f inding and attracting capable applicants for employment. The

process begins when new results are sought and ends when

their applications are submitted. The result is a pool of

applicants from which new employees are selected.”

Selection

Selection is a process of carefully choosing the candidates

who offer themselves for appointment. In selection many

processes applies on raw material but unit wants few persons.

This is one of the most important responsibil i t ies. In selection,

the person who is having knowledge as well as experience is

selected.

33

According to one author, “It is the process of

differentiating between applicants in order to identify those with

a greater l ivelihood of success in a job.”

Here in case of Varmora Granito, the co-selection process

includes basic four main steps.

Preliminary searching interview

Checking of reference

Comprehensive interview

Final employment decision.

34

HUMANRESOURCE PLANNING

Human resource planning is understood as the process of

forecasting an organisation’s future demand for and supply of

the right type of people in the right number. It is only after this

that the human resource department can init iate a recruitment

and selection process. Human resource planning is a sub-

system in the total organisational planning. Organisational

planning includes management activit ies that set the company’s

objectives for the future and determine the appropriate means

for achieving those objectives. Human resource planning

facil i tates the capitalisation of the company’s objectives by

providing the right type and right number of personnel. Human

resource planning is l ike material planning that estimate the type

and annuity of the materials and supplies needed to facil i tate

the manufacturing activit ies of the organisation. Human

resource planning is variously called manpower planning or

employment planning.

In case of this industry, human resource planning is done as per

the need.

35

PLACEMENT & INDUCTION

An applicant who has cleared all the hurdles in the

selection procedure is offered a job. The main problem after

f inal selection is to place him on some suitable job. The out of

offering the job to a finally selecting candidate is called

placement. The selection procedure comes with placement of

workers on the job.

Induction is a technique by which a new employee is

rehabituated into the changed surrounding and introduced to the

practices, policies and purpose of the organisation. In other

words, induction means introducing or orienting a new employee

to the organisation and to follow up for his adjustment in the

organisation.

In this industry, when a new employee is selected, he is

kept under the supervision of his superior where he is trained.

The new employee is provided with the operational knowledge

that is specific to the position and location.

36

TRAINING OF EMPLOYEE

Training refers to the imparting of specific skil ls abil i t ies

and knowledge to an employee.

It is any attempt to improve current or future employee’s

performance by increasing an employee’s abil i ty to perform

through learning, usually by changing the employee’s attitude or

increasing his/her skil ls and knowledge. The need for training is

determined by the employee’s performance deficiency.

At present training of workers is necessary because many

jobs have assumed highly technological character and under

automation. We require highly skil led operatives. In Varmora

Granito, the workers who need training are kept under their

supervisors who give them training while training for staff

members or managerial level is given on the job.

37

PERFORMANCEAPPRAISAL SYSTEM

Performance appraisal is the assessment of an individual’s

performance in a systematic way. The performance being

measured against such factors as job knowledge, quality and

quantity of output, init iative, leadership abil i t ies, supervision,

dependabil ity, co-operation, judgement, versati l i ty, health and

l ike assessment should not be confined to past performance

alone. Potentials of the employee for future performance must

also be assessed.

In Varmora Granito, the supervisor sees the employee’s

abil i ty to do work properly and efficiently, whether he

understand his responsibil i ty or not, how is his behaviour

towards his colleagues, etc.

38

WAGE & SALARYADMINISTRATION

Wage and Salary Administration refers to the

establishment and implementation of sound policies and

practices of employee compensation.

Wages are the economic compensation paid to the workers

for services derived by them. It can be divided into two types

i.e. piece wage and time wage. In Varmora, there is time wage

system and it is paid on monthly basis. There wages are

calculated as per monthly wage rate according to the minimum

wages act of government. Salaries are paid on monthly basis

and its amount is by the company according to working

efficiency of the employee.

39

TRADE UNION

Trade union means the union of the workers who are

permanent or temporary in the unit, where they are working.

In Varmora Granito, there is no special trade union. The

purpose to make these unions is maintaining the interest of

workers and management. These unions do not disturb without

any special problem and interfere in routine work. They always

try to maintain relations between employees and management

staff.

40

COLLECTIVE BARGAINING

Collective bargaining means the process in which

conditions of employment are determined by agreement between

representative of the union on one hand and those of the

employer on the other hand. It is called “collective” because

both the employer and employee act as a group rather than

individuals. It is described as “bargaining” because the method

of reaching an agreement involves proposals and counter

proposals, offers and counter offers. In the highly industrialized

democratic societies of the west, more than 90% of the disputes

are between labour and management which are settled through

collective bargaining process.

In Varmora Granito, management is having agreement with

the employees regarding wage, working conditions, promotion,

transfer and other facil i t ies l ike medical facil i ty, etc.

41

RECORD KEEPING SYSTEM

It is very much necessary for an organisation to keep the

reward of its workers and many other details related to it.

The reward contains personnel as well as on the job

efficiency information of an employers or workers. In Varmora

Granito, the supervisor sees the employee abil ity to do work

properly and effectively whether he understands his

responsibil i ty or not, how is his behaviour towards his

colleagues, etc.

42

EMPLOYEE BENEFITS

Now a day, most of the firms provide the provident fund

scheme or other facil i t ies to their workers. It is important as it is

one kind of security of a worker.

Varmora Granite provides various monitory and non monitory

benefits and services l ike:

Bonus 10% extra bonus is paid to workers.

Allowances Various types of allowances are given to

workers. Varmora provides two wheeler facil i t ies (Honda &

Splendor) and 100% expense of petrol.

Statutory Welfare Measures Under this, the company

provides first aid facil i ty, cold water facil i ty, company

distributes sweets and other eatables on the festivals l ike

Dashera, Diwali, etc.

Loan Facility Loan is provided to employees when in

need. They are not charging any type of interest on the loan.

It is repaid in installments.

43

PROVIDENT FUND SCHEME

Provident fund scheme is facil i ty provided to every

employee may be at high post or low post. In this scheme, a

certain percent of employee’s salary is oriented by the firm and

on that 12% of interest is paid and employee adds very certain

fixed percent to it, the interest is paid on both employee and

employers amount.

This industry has adopted this scheme. They are putting

12% salary as Provident Fund, which is refundable after the

retirement of employee or when he is going abroad for

permanent settlement or when he is going for another job.

44

PROMOTION & TRANSFER

Promotion

The promotion means to do upliftment within the

organisation. At this stage employee’s wage and salary status,

prestige moves towards the top level. Their thinking is also

increasing up in his duties and responsibil i t ies.

Transfer

The transfer is a process of planning the employees in the

position where they are l ikely to be more effective, or where

they are l ikely to get more job satisfaction or it is movement of

an employee from one job to another without involving any

substantial changes in his duties, responsibil i ty, status, etc.

Therefore, transfer is exchange in job where new job is

substantially equal to old in terms of pay, status and

responsibil i t ies.

This company is only 2 years old, so there is no such

policy and programs formulated for promotion as well as

transfer.

45

GRIEVANCEHANDLING SYSTEM

Grievance is any discount or dissatisfaction, whether

expressed or not, whether valid or not, arising out of anything

connected with the company, which an employee thinks or

believes or even feels to be unfair, unjust or inequitable.

In case of Varmora Granito, most of employees are

satisfied and management always tries to satisfy needs of

employees as quickly as possible. If any problem arises than

related manager wil l try to solve it.

46

INDUSTRIAL RELATION

Industrial relation refers to the relation of management

with the employees. This is one important factor, which affects

the success of any industry. The relation between management

and workers should be namely so as to run the industry

smoothly.

Internal Relation

Varmora Granito Industry is concerned with the

management and workers share breathing relations. They are

united and consider their unit as a second family.

External Relation

External relation means the relation of unit members of

external society l ike other industries, government, customers,

etc. Varmora Granito has good external relations.

47

48

Sr.No. PARTICULARS PAGE

NO.

1. INTRODUCTION 50

2. ORGANIZATION CHART 51

3. MARKET SIZE 52

4. MARKET SAGMENTATION 53

5. PRICING 54

6. ADVERTISEMENT 55

7. CHHANEL OF DISTRIBUTION 56

8. MARKET RESEARCH 57

9. CREDIT FACILITY 58

10. SALES PROMOTION 59

11 EXPORT POTENTIAL 60

12. COMPETITIORS 61

13. CONSUMER PROBLEM HANDLING 62

INTRODUCTION

49

Market is the place where buying and sell ing is carried out

by buyers and sellers i.e. trading activity are carried out.

Marketing is a social and management process that

involves identifying unsatisfied needs or wants of the

consumers, producing goods or services to satisfy those needs

or wants, determining appropriate price, promotion and

distributing and maintaining relation with the market.

In today’s modern area each and every firm gives priority

to have a different marketing department. Marketing involves

the activit ies such as advertising, publishing, market research,

distribution aspect, sales promotion, etc.

50

ORGANISATION CHART

51

MARKET SIZE

As per VARMORA INDUSTRIAL DIGEST, JUNE 1996, size

of Wall t i les is as under.

The Wall t i les market size is established at Rs. 525

Crores, where as floor ti les segment is Rs. 300 Crores. The

demand for this ti le is growing at pace of 30%. The production

capacity is expected to bulge by nearly 5.35 Lacs tones

52

MARKET SEGMENTATION

Market segmentation is based upon the market oriented

strategies and philosophy segmentation gives special emphasis

on the demand size of the market.

“Market segmentation is a method of achieving maximum

market response from limited marketing resources” by the

markets for to identify the target customer. Generally, there are

two types of market segmentation.

People oriented approach

Consumer demand or product oriented approach.

In case of Varmora, there is no need for market

segmentation. Their market is f ixed, so they think that there is

no need of market segmentation. They produce the item

according to orders they receive.

53

PRICING

Price is the amount charged for the product or service

including any warranties or guarantees, delivery, discounts,

services or other items that are paid of the conditions of sale

and are not paid for separately. To the buyer price is a package

or expectations and satisfactions.

Pricing is an important decision that every company has to

take high price or low price may create a bad reputation of

company. The price of a product is a crucial decision.

In Varmora Granito, pricing policy is cost + profit.

Whatever expenses have incurred during the manufacturing of

product is considered + profit is too included. Competitors price

are also considered, their prices are higher than their

competitors.

54

ADVERTISEMENT

Now a day, marketing plays an important role for the entire

organisation. Marketing is very much necessary for al l the products

as without marketing the consumer wil l have lack of information

about the products. Thus, to make the consumers aware of the

product, marketing is done.

Varmora advertise their products on very large scale. They

advertise their products on television and also do wall paintings al l

over India. They also distr ibute pamphlets for the same.

CHANNEL55

OF DISTRIBUTION

The word “Channel” has its origin to the French word used for

“Canal”. Thus, channel is route through which goods passes from

one end to another. In other words, the route through which goods

move from the place of production to the place of consumption is

cal led “Channel Distr ibution”. Channel of distr ibution is the pathway

or route through which goods are transferred from the hands of

producer to the consumers or from the seller to the buyer.

According to one author, “A channel of distr ibution for a

product is the route taken by the t i t le to the goods as they move

from the producer to ult imate consumer.”

In this industry, the distr ibution channel is

There are about 300 dealers in al l states of country.

MARKET RESEARCH

56

Market research is the systematic and intell igent

investigation or study of the “who, what, where, when, why and

how of actual and potential buyers.”

It is the systematic gathering rewarding and analyzing of

data about problems connected with the market place. It is the

scientif ic and controlled process of gathering of non routine

marketing information helping management to solve marketing

problems. It acts as the investigative aims of marketing

manager and management tool in planning control cycle.

In this industry, f irst of all they study about customers

requirements. They try to introduce good facil i t ies every time,

they have a marketing research team which goes all over

country.

57

CREDIT FACILITY

To run the business smoothly and regular cash flow,

company gives some credit facil i ty to the buyers.

Varmora also does the same thing. They sell those

products in the market on cash and credit basis. They give 3

crores credit facil i ty to the buyers.

58

SALES PROMOTION

Sales promotion consists of short term incentives to

encourage purchase or sales of a product or service. It is

demand stimulating devices designed to supplement advertising

and facil i tate personal sell ing. It is a direct inducement which

offers an extra value and incentive for the product to and sales

force distributors to ultimate customers.

In this industry, they do not adopt any technique because

of potential marketing and potential customers.

59

EXPORT POTENTIAL

With major market operating up and gap of technological

advancement in the manufacturing being narrowed the market

for products wil l grow. However, in mainly depend upon the

conformity to develop countries strict standards shall determine

growth. The increased production capacities shall see the

companies moving towards developed export market. Indian

ceramic industry in spite of advantages according out of low

labour costs is wrought with the problem of quality and design

companies are fortifying their R&D designs.

60

COMPETITORS

It is rightly said that, “Without competitors market does not

survive.”

Varmora is also starving in to sale its products in the

competit ive market by continuous development of a product

finding new areas of consumption.

Their competitors are

Kajaria

Bell

H R Johnson, etc.

61

CONSUMERPROBLEM HANDLING

“Customer is the king” of the market, is a very attractive

slogan. Consumers generally never face any problem for

Varmora but in spite of this, if any problem arises than following

hierarchies of problem handling is followed.

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63

Sr.No. PARTICULARS PAGE

NO.

1. INTRODUCTION 65

2. ORGANIZATION CHART 66

3. CAPITAL STRUCTURE 67

4. ACCOUNTING POLICY 68

5. WORKING CAPITAL REQUIREMENT

69

6. SOURCES OF FUNDS 70

7. FINANCIAL PLANNING 71

8. PROJECT COST 72

9. HIGHLIGHTS OF PROFITABILITY 73

10 RATIO ANALYSIS

11. LEVERAGE ANALYSIS

INTRODUCTION

64

Finance plays a very important role in any type of the firm.

From the init ial stage awards money is needed for the

information registration of the firms, l isting of the firm. Finance

is needed for making necessary documents.” FINANCE IS THE

LUBRICANT WHICH RUNS THE ENTIRE ORGANISATION “

Finance consists of procuring funds, managing and

uti l izing them efficiently in order to maximize the profit, which is

ultimate goal of any organisation.

In Varmora Tiles, the capital is procured by issuing equity

shares. The secured loan of this industry is 94000000 and the

unsecured loan of 2012-13 is deposits from relatives of directors

i.e. of Rs. 20000000.

65

ORGANISATION CHART

66

CAPITAL STRUCTURE

Procurement of capital is the most important process of an

organisation. Capital can be of two types i.e. ownership capital

and borrowed capital. Ownership capital can be procured by

issuing equity shares and sometimes preference shares and

borrowed capital can be procured by issuing debentures, bank

loan, etc.

The capital structure of Varmora is very simple as it has

issued desirable equity debt ration of.

67

ACCOUNTING POLICY

Accounting policy of Varmora Granito as under:

The company maintains its accounts on historical cost

basis. The current assets, loans, and advances, l iabil i t ies are

approximately of value stated if realised in ordinary course of

business.

The company follows the accrual method of accounting and

all claims, receivables and l iabil i t ies are provided on that basis.

Depreciation is provided during year at prevail ing rates

prescribed by company’s act 1956.

68

WORKING

CAPITAL REQUIREMENT

Working capital requirement means it is necessary to

maintain stocks of raw materials and to finance the funds

blocked in goods in process, f inished goods, overheads, etc.

Total working capital requirement for f irst year has been

estimated at Rs. 458 Lacs. The working capital is proposed to

be through Bank finance to the tune Rs. 2300 Lacs and

promotions funds at Rs. 160 Lacs.

69

SOURCES OF FUNDS

A manufacturing company requires capital for these

purposes.

To achieve or create fixed assets

Working capital for f inancing day to day manufacturing and

marketing operations.

Capital for expansion, modernization, etc.

A company has two main sources of capital

Internal sources

External sources

Varmora Granito Pvt. Ltd. is having internal source of

f inance. The company has its own share capital and have taken

loan from the bank.

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FINANCIAL PLANNING

Financial management also requires managing for effective

management of f inance as it is the part of management.

Financial planning means decisions to be taken to achieve basic

objectives of the firm.

The basic objective of f inance planning is to raise the

necessary funds as and when needed. At minimum cost cash

should be controlled properly. There are three types of f inancial

planning.

Short term planning

Medium term planning

Long term planning

In Varmora Granito Pvt. Ltd. there is long term financial

planning.

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PROJECT COST

Sr. Particulars Amount (thousand)

1 Land 200.002 Factory Building 110.003 Imported Machinery New 559.004 Indigenous Machineries 238.005 Electrical Installations 54.006 Tools 40.007 Installations 50.008 Bank Guarantee for EPG 35.009 GEB Deposit 40.00

10 Computers 30.0011 Furniture 25.0012 Other Miscellaneous Assets 40.0013 Preliminary and pre-operative

expenses20.00

14 Provision for contingencies 20.0015 Total capital cost of project 1401.0016 Margin money for working capital 158.00

Total Project Cost 3020.00

72

Projected Trading Account [1 st yr]

73

PARTICULARS AMOUNT PARTICULARS AMOUNTTo purchaseTo direct labourTo utilities

To GROSS PROFIT

4,00,00,0001,58,00,000

43,40,000

9,66,80,000

By Sales 15,68,20,000

Total 15,68,20,000 15,68,20000

Projected Trading Account [2 nd yr]

PARTICULARS AMOUNT PARTICULARS AMOUNTTo purchaseTo direct labourTo utilities

To GROSS PROFIT

4,50,50,0002,00,00,000

21,12,000

10,52,38,000

By Sales 17,24,00,000

Total 17,24,00,000 17,24,00,000

74

Projected Trading Account [3 rd yr]

PARTICULARS AMOUNT PARTICULARS AMOUNT

To purchaseTo direct labourTo utilities

To GROSS PROFIT

5,00,60,1002,00,50,000

10,94,700

11,00,56,000

By Sales 18,12,60,800

Total 18,12,60,800 18,12,60,800

75

Projected Profit and loss account [1 st yr]

PARTICULARS AMOUNT PARTICULARS AMOUNTTo SalariesTo Repair & MaintenanceTo Depn on Building & MachineTo Depn on Computer, furniture & A/CTo TelephoneTo Post & StationaryTo Miscellaneous expTo InsuranceTo Advertisement expTo Packaging expTo Traveling expTo income tax

To NET PROFIT

1,20,68,000

15,00000

15,06,500

30,0000010,00000900,000

15,08,00025,00,00010,00,000

20,20,0001,50,60,000

--------

91,84,600

45,43,2,900

By GROSS PROFIT

9,66,80,000

Total 9,66,80,000 9,66,80,000

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Projected Profit and loss account [2 nd yr]

PARTICULARS AMOUNT PARTICULARS AMOUNTTo SalariesTo Repair & MaintenanceTo Depn on Building & MachineTo Depn on Computer, furniture & A/CTo TelephoneTo Post & StationaryTo Miscellaneous expTo InsuranceTo Advertisement expTo Packaging expTo Travelling expTo Interest on borrowed loan

To NET PROFIT

1,30,89,000

20,00,330

15,10,546

5,22,050

5,00,0524,50,0004,58,000

5,58,0006,56,000

98,75,278 1,00,36,526

98,69,350

5,57,12,868

By GROSS PROFIT

10,52,38,000

Total ,10,52,38,000 10,52,38,000

77

Projected Profit and loss account [3 rd yr]

PARTICULARS AMOUNT PARTICULARS AMOUNTTo SalariesTo Repair & MaintenanceTo Depn on Building & MachineTo Depn on Computer, furniture & A/CTo TelephoneTo Post & StationaryTo Miscellaneous expTo InsuranceTo Advertisement exp

To NET PROFIT

1,44,21,365

21,53,452

17,56,235

5,78,235

5,08,0004,20,0002,58,0005,82,0005,32,000

97,45,5001,02,36,552

99,45,235

5,89,19,426

By GROSS FPROIT

11,00,56,000

Total 11,00,56,000 11,00,56,000

78

PROJECTED BALANCE SHEET (3 yrs)

PARTICULARS 1ST YEAR 2ND YEAR 3RD YEARCapital – Liability

Own CapitalAdd: Interest on capitalAdd: Net profitLess: Drawings

Borrowed LoanAdd: Interest

Creditors(a)

Property – AssetsLand Building less depreciationMachinery less depreciationComputer less depreciationA/C less depreciationFurniture less depreciationPre-operating and preliminary expCash [NP+DEPn – installment]Debtors

Total

12,00,45,0001,08,04,0504,54,32,900

45,80,45018,08,62,400

15,97,0001,75,670

17,72,670

1,50,000 18,27,85,070

6,50,20,0002,35,50,0006,15,22,500

6,27,3551,080,0008,45,000047,03,00047,67,86059,23, 455

18,27,85,070

12,00,45,0001,08,04,0505,57,12,868

42,45,44518,23,16,473

17,37,00019,1070

19,28,070

2,25,00018,44,69,543

7,45,20,0003,15,50,0006,98,45,555

8,60,6709,33,0159,45,00050,0000

52,67,56713,07,991

18,44,694543

12,00,45,0001,08,04,0505,89,19,426

4,37,36818,92,95,108

16,77,000184470

18,61,470

3,00,00019,14,56,578

7,45,20,0003,62,99,1747,16,52,552

9,61,69810,37,58411,55,2565,06,856

53,23,45813,88,248

19,14,56,578

79

80

SWOT ANALYSIS

SWOT Analysis means the analysis of

S Strength

W Weakness

O Opportunity

T Threat

Strength

Varmora Granito Pvt. Ltd. is giving employment around 200

employees.

Strong market presence

Develop rural area to reach at the global position.

Weakness

Irregularity in time cost.

Varmora industry entered late in the market

Opportunity

Rapidly and continuous growth in the market, so company wil l

think about expansion.

Threat

81

Highly competit ive market against imported Wall t i les

particularly the Chinese manufacturer with their aggressive

low cost manufacturing advantage.

82

83

FUTURE PLAN

Future plan of Varmora Granito is to become leading

companies in the Wall t i les all over the world.

They wil l be install ing new latest machines for increasing

production and various designs and ranges to meet the

upcoming market needs. Also, they wanted to try serving

backward class by giving them services.

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85

SUGGESTION

Actually, we are just students. It is not our capacity to

give suggestions. Varmora Granito Pvt. Ltd. is having smooth

relation, nice organisation and sincere workers.

There is no requirement to give any kind of suggestion, but

as a part of study it is necessary to give suggestions, which are

as under:

Having a wide market itself in India, only l i tt le is exported.

Instead of if they increase their export and step into wide

international market to compete their quality, through this

profit increases.

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87

CONCLUSION

From this unit, I learn as many things, I am very much

happy to visit the company. Deep study of Varmora Granito Pvt.

Ltd, I came to give my conclusion that its future is very bright

and they wil l progress well.

The co-operation of the employees is good. The

management is also effective and efficient. All the departments

are also handled by authorised person who have great

experience and it is one of the response of success of the firm.

So, I wish the company makes more and more profit, fulf i l l

the future plans and get good and global market.

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89

BIBLIOGRAPHY

Financial Management Khan & Jain

Principles of Marketing Phil ip Kotler

Visit on www.varmora.com

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