A Report On Organisation Study On JK Cement.: Submitted To
A Report On Organisation Study On JK Cement.: Submitted To
Bengaluru – 560037.
DECLARATION
I, Yashashwini. bearing USN 1CR19MBA96 hereby declare that the organization study
conducted at JK cement is record of independent work carried out by me under the guidance
of Ms. Preksha Yadav faculty of M.B.A Department of CMR Institute of Technology,
Bengaluru. I also declare that this report is prepared in partial fulfillment of the university
Regulations for the award of degree of Master of Business Administration by Visvesvaraya
Technological University, Belagavi. I have undergone an organization study for a period of
four weeks. I further declare that this report is based on the original study undertaken by me
and has not been submitted for the award of any degree/diploma from any other University
/Institution.
Disclaimer
The enclosed document is the outcome of a student academic assignment, and does not
represent the opinions/views of the University or the institution or the department or any
other individuals referenced or acknowledged within the document. The data and Information
studied and presented in this report have been accessed in good faith from secondary
sources/web sources/public domain, including the organisation’s website, solely and
exclusively for academic purposes, without any consent/permission, express or implied from
the organization concerned. The author makes no representation of any kind regarding the
accuracy, adequacy, validity, reliability, availability or completeness of any data/information
herein contained.
Yashashwini
Place: Signature of the Student
Date: USN:1CR19MBA92
4
ACKNOWLEDGEMENT
I take this opportunity to convey my sincere thanks to Dr. Sanjay Jain, Principal. The CMR
Institute of Technology.
I am really very grateful Prof. Sandeep Kumar, HOD. Master of Business Administration,
The CMR Institute of Technology for his valuable suggestion to complete the project
successfully.
I am really very grateful to convey thanks to my guide Ms. Preksha Yadav, Asst. professor.
Department Master of Business Administration, The CMR Institute of Technology for her
motivation and valuable suggestion to complete my project work.
I would like to once again thank my Principal, HOD, Guide, Parents, Friends and
well-wishers for supporting and guiding me throughout my project to complete my Internship
Report.
Place:
Bengaluru YASHASHWINI
Date: Reg. no. (1CR19MBA92)
5
Table of Content
2 2 Organization Profile:
I. Back ground,
II. Nature of business,
13 - 26
III. Vision mission, quality policy
IV. Workflow model
V. Product/service profile
VI. Ownership pattern
VII. Achievements/awards if any
VIII. Future growth and prospects
4 4 SWOT Analysis 32 - 35
7 7 Learning experiences 46 - 47
6
8 Bibliography 48
7
INDUSTRY: CEMENT
WEBSITE: www.jkcements.com
8
EXECUTIVE SUMMARY :
CHAPTER: 1
10
INTRODUCTION
J.K.Cement started its commercial production in May 1975 in its first plant Nimbahera in
Rajasthan. The company was incorporated in the year 1994.
Today J. K. Cement is one of the largest cement manufacturers in north India. It is also
second largest producer of white cement in India. The company exports white cement to
countries like South Africa, Nigeria, Singapore, Bahrain, Bangladesh, Sri Lanka, Tanzania,
UAE and Nepal.
The company has two manufacturing facilities located at Nimbahera and Mangrol in the state
of Rajasthan. The company produces white cement and its production unit is located in Gotan
at Rajasthan.
These plants have received various certifications ISO–9001:2000 for quality management
system, ISO–14001:2004 for environment management systems and OHSAS–18001:2005 for
occupational health and safety systems.
The cement industry in India placed its footstep in the 1900's.Indian cement industry is the
second largest market after China. Large population is unable to meet the rising demand
across the world. This provides a major requirement of infrastructure for the economic
development of the country. JKCL( JK Cement Limited) is an afliate of the multi-disciplinary
industrial conglomerate JK Organisation which was founded by Lala Kamlapat Singhania.
For over four decades, JK Cement has partnered India's multi-sectoral infrastructure needs on
the strength of its product excellence, customer orientation and technology leadership The
Company has over four decades of experience in cement manufacturing. UTCL( UltraTech
Cement Limited) is the largest manufacturer of grey cement, Ready Mix Concrete (RMC)
and white cement in India. It is also one of the leading cement producers globally. UltraTech
as a brand embodies 'strength', 'reliability' and 'innovation'.
The data of the past ve years (2013-2014 to 2017-2018) are taken into account for the study.
The performances are compared with these periods. This study nds out the areas where JKCL
and UTCL can improve the cash ow activities of the companies.
2. To study that weather the employees of JK cement limited are satisfied or not .
3. To study the government rules and policies with regards to the JK cement sector.
4. To get an idea of the challenges faced by the JK cement Sector and its future out look
.
5. To measure the over all performance of JK cement in terms of quality and economy in
prices .
6. To find out the level to which JK cement have been successful in fulfilling various
social responsibilities in kashmir.
7. To find out the positive and negative aspects about JK cement in the market.
employee safety measures, and investing in safety education. Every safety incident in the
organisation is a learning and an instrument for improving the safety systems within our
organisation. Incident-accident recording systems are maintained as per regulatory
requirements. All of our manufacturing facilities monitor the injuries (first aid, minor and
reportable injuries). We have well established Environment, Health & Safety (EHS)
Management systems with designated responsibilities and safety infrastructure, which are
under constant supervision and up-gradation to comply with leading international standards.
INDUSTRY PROFILE :
J.K. Cement Limited engages in the manufacture and sale of grey and white cement in India.
The company's grey cement consists of ordinary Portland cement and Portland pozzolana
cement, as well as white cement based wall putty for cement plastered walls and ceilings.
J.K. Cement offers its grey cement products under the JK Cement brand name; and white
cement under the brand names of J.K. White and Camel. The company provides its products
through a distribution network and retail stores. J.K. Cement sells grey cement primarily in
northern India; and exports white cement to South Africa, Nigeria, Singapore, Bahrain,
Bangladesh, Sri Lanka, Kenya, Tanzania, the United Arab Emirates, and Nepal. The
company was founded in 1975 and is based in Kanpur.
13
CHAPTER:2
14
HISTORY:
The Company has over four decades of experience in cement manufacturing. Our operations
commenced with commercial production at our first grey cement plant at Nimbahera,
Rajasthan in May 1975. Subsequently, the company also set up 2 more units in Rajasthan at
Mangrol and Gotan. In the year 2009, the company extended its footprint by setting up a
15
green-field unit in Muddapur, Karnataka giving it access to the markets of south-west India.
In the year 2014, the company further expanded its capacity in the north with brownfield
expansion of 1.5 MnTPA integrated unit at Mangrol and split grinding unit of 1.5 MnTPA at
Jhajjar. Today, JK Cement has an installed grey cement capacity of 14 MnTPA, making it
one of the top cement manufacturers in the country.
JK White Cement, a division of JK Cement Ltd., enjoys a PAN India presence and the
Company is the leading producer of Wall Putty in the Country. The Company is the second
largest manufacturer of white cement in India, with an annual capacity of 600,000 tonnes.
Having established a strong presence in India, the Company made its first international foray
with the setting up of a green-field dual process White Cement-cum-Grey Cement plant in the
free trade zone at Fujairah, U.A.E to cater to the GCC and African markets. JK White
Cement is sold across 43 countries around the globe. With the commissioning of this plant,
JK Cement became one of largest producers of White Cement in the world, with a total white
cement capacity of 1.20 MnTPA and wall putty capacity of 0.9 MnTPA.
JK Cement was the first company to install a captive power plant in the year 1987 at
Bamania, Rajasthan and the first cement company to install a waste heat recovery power
plant to take care of the need of green power. Today at its different locations, the Company
has captive power generation capacity of over 125.7 MWs which includes 23.2 MW of waste
heat recovery power plants.
We are steadily enhancing our capacity, diversifying our range of products, ushering in
advanced technology and quality assurance, and above all, expanding our presence nationally
and internationally. Our brands continue to enjoy the trust of millions of consumers for the
high quality and innovation benchmarks that we have attained.
Superior products and a strong Brand name, an extensive marketing and distribution network
and the technical know-how represent JK Cement’s abiding strengths.
16
NATURE OF BUSINESS :
J.K. Cement recognises the network with which it shares its successes and failures. It is an
organisation which is inspired and is responsible for those who have afforded them
operational successes and thereby deserve unstinted attention. This is the courage which has
encouraged J.K. Cement to perpetually repeat cherished performances and embark on a new
journey. Spreading awareness and societal development are integral parts of J.K. Cement’s
unflinching devotion to the people.To increase awareness of White Cement, J.K. Cement
initiated the technical education programme about the product, its various end uses and
benefits out of the same through its Customer Technical Services (CTS) department.
J.K. Cement is an organisation which is inspired and is responsible for those who have
afforded them operational successes and thereby deserve unstinted attention.
17
As a socially viable organisation, J.K. Cement recognises and fulfills the duties of living and
operating within an inseparable and meticulously interdependent network.
VISION:
Mission:
JK Cement aims to deliver innovative products and solutions that meet the needs of its
customers. Together with our exceptional people and strong stakeholder relationships we
commit to the highest standards of quality, productivity, sustainability and performance that
drive shareholder value and long-term success.
Our Values:
Integrity
Honour our commitments
We are committed to being honest and ethical in all interactions, maintaining the highest
ethical standards in all our market, financial and operational practices
Quality
Strive for perfection
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We are passionate about creating a culture of perfection that encourages and promotes
excellence in products and services through innovation and continuous improvement
Trust
Take pride in our promises
We are serious about accepting the responsibility to win and maintain the trust of our
stakeholders
Care
Observe, understand, assist
We genuinely care about our relationships and use compassion to observe and understand
stakeholder needs and be available to assist in improving the lives of all
People
Empower, inspire and respect
We treat one another with respect and collaborate openly. All ideas are welcome and we
value diversity and perspective
Milestone! We are proud to share that JK Super Cement has been awarded as ...
honour and showcase the top brands in the building and construction industry.
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COMPANY STRUCTURE :
Management Structure Management Structure for running the business of the Company as a
whole is in place with appropriate delegation of powers and responsibilities. ... Board of
Directors (i) Composition of the Board At J.K. Cement Ltd., the Board is headed by its
Chairman and Managing Director, Shri Yadupati Singhania.
One Promoter, Executive, Non Independent Director 1.2 Governance Structure JK's
Governance structure broadly comprises the Board of Directors and the Committees of the
Board at the apex level and the Management structure at the operational level.
21
22
PRODUCT PROFILE;
The Company is engaged in manufacturing cement and cement products. Its product portfolio
includes grey cement, white cement and wall putty. It offers a range of grey cement, which
include Portland Pozzolana cement (PPC), ordinary Portland cement (OPC) and Portland slag
cement. ... Wall Putty, J.K.
1. JK water proof
2. JK white cement
3. JK wall putty
4. JK greay cement
Area of operation :
•Our pioneering foray into white cement in 1984 created a new chapter in the history of JK
Cement and the JK White Cement Plant is an integral part of the same.
We were the first White Cement facility in India, which was limestone based, and
manufactured Cement through the dry process. The White Cement plant was commissioned
at Gotan, Rajasthan with an initial production capacity of 50,000 tons.
•We manufacture grey cement in three facilities located at Gotan, Nimbahera and Mangrol in
the state of Rajasthan in Northern India We also have one grey cement facility at jharli,
Dist:Jhajjar, Haryana and one in Muddapur, Dist: Bagalkot, Karnataka.
23
OWNERSHIP PATTERNS:
24
We are what we repeatedly do. Excellence, then, is not an act, but a habit'- Aristotle An
unremitting commitment to the highest standards of quality has earned JK Cement a lot of
recognition through the years. The company has been bestowed with many prestigious
awards related to productivity, environment management, and best practices in Human
Resource Development by reputed bodies.
First Prize for Scientific Development of Mineral Deposit and Waste Dump Management at
14th Mines Environment and Mineral Conservation Week 2014 (Udaipur Region)
Bhamashah Award by Govt. of Rajasthan (2013)
"Certificate of Excellence 2012" Award in the Large Scale Industries Category by Employers'
Association of Rajasthan, Jaipur.
Lifetime Achievement Award for Dr. Gaur HariSinghania - Chairman, JK Cement Ltd by
International Institute of Social Scientists
"Best Employer Award 2012" by Employers' Association of Northern India
"Productivity Excellence Award, 2010-11" from the Rajasthan State Productivity Council.
"Productivity Excellence Award, 2009-10" from the Rajasthan State Productivity Council.
"Productivity Excellence Award, 2008-09" from the Rajasthan State Productivity Council.
"Productivity Excellence Award, 2007-08" from the Rajasthan State Productivity Council.
"Certificate of Excellence on the occasion of Best employer award 2007" by Employers
Association of Rajasthan, Jaipur.
"Certificate of Excellence 2003" Award in cement sector from Rajasthan State Productivity
Council, Jaipur.
"Best Productivity Award for 2004" in cement Sector from Rajasthan State Productivity
Council, Jaipur
Award for "Best Supporting Core Plant" for the year 2003-04 from Regional Training Centre
Nimbahera - an organisation for training of employees of cement sector, which is supported
by World Bank.
Our Maliakhera Mine was awarded the first prize in Mine Lighting & Electrical Installation
and Storage, Transport, Handling & Use of Explosives (2012)
Nimbahera Mine - Awarded the first prize in Maintenance of Mine Plans, Sections &
Statutory Records and second prize in Publicity, Propaganda & House Keeping (2012)
Tilakhera Mines - Awarded first prize in Publicity, Propaganda & House Keepingand second
prize in Maintenance of Mine Plans, Sections & Statutory Records (2012)
"Medallion Mines Award 2001-02" and
"Medallion Mines Award 2002-03" were the prestigious moments. Our Dhanappa Limestone
Mines and Kanthariya Clay Mines are a regular recipient of 5-7 awards every year in various
25
categories under the Mines Safety Week and Mines Environment and Mineral Conservation
Week.
Commemorative Stamp in honour of our Founding Father - Lala Kamlapat Singhania
Mr. Gurudas Kamat - Minister of State for Communication and Technology presenting the
first copy of the Stamp Album to the Hon'ble President. From left to right - Shri Govind Hari
Singhania, Mr. Devi Singh Shekhawat and Mr. Gurudas Kamat and Shri Yadupati Singhania.
The Government of India issued a commemorative postal stamp in honour of Lala Kamlapat
Singhania - the visionary founder of the JK Organisation on 1st December, 2010. President of
26
India, Smt. Pratibha Devisingh Patil, unveiled the stamp, the first day cover and a coffee table
book on the legendary entrepreneur at a function organised at the Rashtrapati Bhawan, in the
presence of esteemed dignitaries. The stamp was issued by the Department of Posts as part of
the 125th Birth Anniversary Celebrations of Lala Kamlapat Singhania.
JK Cement Ltd. was incorporated in the year 1994. Its today's share price is 1497.85. Its
current market capitalisation stands at Rs 11512.97 Cr. In the latest quarter, company has
reported Gross Sales of Rs. 58016.38 Cr and Total Income of Rs.58869.63 Cr. The
company's management includes Raghavpat Singhania, Madhavkrishna Singhania, Ajay
Kumar Saraogi, Suparas Bhandari, Sudhir Jalan, Saurabh Chandra, Paul Heinz Hugentobler,
K B Agarwal, Jayant Narayan Godbole , Deepa Gopalan Wadhwa, Ashok Sinha, Achintya
Karati , Sushila Devi Singhania, Yadupati Singhania.
It is listed on the BSE with a BSE Code of 532644 , NSE with an NSE Symbol of
JKCEMENT and ISIN of INE823G01014. It's Registered office is at Kamla Tower,
,Kanpur-208001, Uttar Pradesh. Their Registrars are ACC Ltd. It's auditors are PL Tandon &
Co, SR Batliboi & Co LLP
CHAPTER : 3
28
The 7s model is better known as Mckinsey7s. This is because the two persons who developed this mode,
Tom Peters and Robert Waterman, have been consultants at Mc Kinsey and company at that time. They
published their 7s model in their article “Structure is not organisation” (1980) and their books “The art of
Japanese management (1981) and in search of excellence (1982).
The model starts on the premise that an organisation is not just structure but also consist of seven elements
.
The focus of the McKinsey 7s Model lies in the interconnectedness of the elements that are
categorized by “Soft Ss” and “Hard Ss” – implying that a domino effect exists when
changing one element in order to maintain an effective balance. Placing “Shared Values” as
the “center” reflects the crucial nature of the impact of changes in founder values on all other
elements.
29
1. Structure
Structure is the way in which a company is organized – chain of command and accountability
relationships that form its organizational chart.
2. Strategy
Strategy refers to a well-curated business plan that allows the company to formulate a plan of
action to achieve a sustainable competitive advantage, reinforced by the company’s mission
and values.
3. Systems
Systems entail the business and technical infrastructure of the company that establishes
workflows and the chain of decision-making.
4. Skills
Skills form the capabilities and competencies of a company that enables its employees to
achieve its objectives.
5. Style
The attitude of senior employees in a company establishes a code of conduct through their
ways of interactions and symbolic decision-making, which forms the management style of its
leaders.
6. Staff
Staff involves talent management and all human resources related to company decisions, such
as training, recruiting, and rewards systems
30
7. Shared Values
The mission, objectives, and values form the foundation of every organization and play an
important role in aligning all key elements to maintain an effective organizational design.
CHAPTER : 4
33
SWOT ANALYSIS :
SWOT analysis of JK Cement analyses the brand/company with its strengths, weaknesses,
opportunities & threats. In JK Cement SWOT Analysis, the strengths and weaknesses are the
internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like JK Cement
to benchmark its business & performance as compared to the competitors and industry. As of
2020, JK Cement is one of the leading brands in the real estate and construction sector.
The table below lists the SWOT (Strengths, Weaknesses, Opportunities, Threats), top JK
Cement competitors and includes JK Cement target market, segmentation, positioning &
Unique Selling Proposition (USP).
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STRENGTH :
WEAKNESS :
OPPORTUNITIES :
THREATS :
CHAPTER 5
37
Thus, fixed cost and capital-intensive nature of the industry and the need for a big distribution
network are the real entry barriers. Recently, backward integration among non-cement
manufacturers has also gathered pace. For backward integration, there exists two reasons- one
38
being use of slag (slag is a waste material of steel manufacturing companies used in cement
manufacturing) and the second to cash on the tight demand supply situation.
Thus, in such markets strong distribution network is a must. Nowadays, to differentiate their
product, companies have started brand building exercise. JK Cement's brands- JK white
cement, JK water proof and JK wall putty are well recognised in the northern region and it
being one of the largest manufacturers of the white cement in India, its enjoys high brand
recall and has emerged as a preferred choice of retailers as well as institutions and other
companies who make bulk purchases for their ongoing projects.
The grey cement segment is more crowded as compared to white cement, which leads to
heightened competition. On the other hand, white cement segment is dominated by a chunk
of players. Owing to this, the company's products in the grey cement segment are
competitively priced, while white cement segment on account of negligible competition,
provides cushion to the company's margins and also helps to boost them.
39
In terms of securing raw material, JK Cement is well placed as its current limestone reserves
can support current as well as planned capacity (9 MTPA by FY09) over the next 40 years.
However, currently the company sources its power requirements from the state electricity
board, the cost of which is considerably high. To negate this, the company is setting up a
waste recovery plant and petcoke plant to meet energy requirements, which in turn will arrest
cost pressure on margins.
To conclude…
With volume growth remaining strong and prices firm, many players have entered this sector
to explore the available opportunities. With the boom in housing sector and infrastructural
activity, every player has lined up expansion or modernization plans to cater to the
incremental demand. MNCs have also been eyeing the emerging markets. Few global majors
such as Holcim and Heidelberg have opted the inorganic way, while Lafarge is exploring
organic route.
Like other domestic and global players, JK Cement has also lined up capacity expansion
plans to maintain and improve its market share and strengthen its position. Since cement is a
regional play on account of its high freight costs, the company should not have all its plants
concentrated in one region. It should have a geographical spread so that adverse market
conditions in one region can be mitigated by high growth in the other region.
40
CHAPTER : 6
41
● The company's operating profit increased by 6.0% YoY during the fiscal. Operating
profit margins witnessed a fall and stood at 15.9% in FY19 as against 16.2% in FY18.
● Depreciation charges increased by 4.4% and finance costs decreased by 8.1% YoY,
respectively.
● Other income declined by 37.3% YoY.
● Net profit for the year declined by 7.7% YoY.
● Net profit margins during the year declined from 5.7% in FY18 to 4.9% in FY19.
42
Solvency Ratios
Current Ratio: The company's current ratio improved and stood at 1.3x during FY19, from
1.3x during FY18. The current ratio measures the company's ability to pay short-term and
long-term obligations.
Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 2.6x
during FY19, from 2.4x during FY18. The interest coverage ratio of a company states how
easily a company can pay its interest expense on outstanding debt. A higher ratio is
preferable.
Profitability Ratios
Return on Equity (ROE): The ROE for the company declined and down at 9.8% during
FY19, from 14.5% during FY19. The ROE measures the ability of a firm to generate profits
from its shareholders capital in the company.
Return on Capital Employed (ROCE): The ROCE for the company declined and down at
13.1% during FY19, from 14.7% during FY18. The ROCE measures the ability of a firm to
generate profits from its total capital (shareholder capital plus debt capital) employed in the
company.
Return on Assets (ROA): The ROA of the company declined and down at 7.1% during
FY19, from 8.8% during FY18. The ROA measures how efficiently the company uses its
assets to generate earnings.
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CHAPTER : 7
47
LEARNING EXPERIENCES :
It was good culture and management also very nice .the work pressure .the whole
management work nice handle .they become some persons was so hard work about the
company is good climate they have been some of persons and employees was very friendly
.Being in Indian company, the management is very laid back and there is typically no
grievance address procedure. My tenure as a Management trainee was not very enriching, and
employees' growth is not considered important.The company is very good working
environment is also good all the colleagues are very helps and managers are supportive.
company working system is also good its a very systematic company. recently the company
is going to migrate all thought thing.Very good work envirenment & supprt by superiors.
Totally free space to work independently. Very well payer in conveyance ,daily allowance &
travelling allowances.The department is very cooperative here in J K Cement Works. You
will have a great time with the colleagues and will find the time to spend with your family.
You will get the good money against the work done by you. To be in the job you will have to
prove yourself every time everyday. The job culture is very competitive.
48
BIBLIOGRAPHY :
WEBSITE :
www.google.co.in
www.jkcement.com
www.jkcl.co.in
www.12manage.com
OTHER REFERENCES:
USN 1CR19MBA92
Organization JK CEMENT
WEEK-1
Duration (start date - End date) 6.8.2020 - 12.8.2020
Chapter s covered Chapter 1 and Chapter 2
WEEK-2
WEEK-3
Duration (start date - End date) 19.8.2020 - 26.8.2020
Yashashwini