Report on Internship

at
Aditya Birla Grasim chemicals limited (India)
By SATYAJIT KADAM
4SO17MBA45 Submitted to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI
In partial fulfilment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Under the guidance of
INTERNAL GUIDE EXTERNAL GUIDE
Dr. Anjali Ganesh Mr. Ankit Jain
Assistant Professor Branch Manager
Department of Business Aditya Birla Grasim
Administration chemicals limited (India)
Department of Business Administration
St. Joseph Engineering College
Vamanjoor. Mangalore-575028
2017-2018
DECLARATION
I Satyajit kadam, hereby declare that the report on internship at Aditya Birla Grasim
chemicals limited (India) is prepared by me under the guidance of Dr. Anjali ganesh
Assistant Professor, Department of Business Administration, St. Joseph Engineering
College and external assistance by Mr. Ankit Jain Branch Manager Aditya Birla Grasim
chemicals limited (India)
I also declare that this internship work is towards the partial fulfilment of the university
regulations for the award of degree of Master of Business Administration by Visvesvaraya
Technological University, Belagavi.
I have undergone the internship for a period of 4 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.
Thank you
Signature of the Student
ACKNOWLEDGEMENT
First of all, I express my sincere gratitude to Dr.Anjali ganesh, my guide whose
guidance, valuable suggestions and encouragement helped me to complete this internship report
successfully.
I express my thanks to Mr Ankit jain., for his valuable guidance & the entire team of Aditya
Birla Chemicals ltd. for the constant support and help in the successful completion of my project
I express my sincere thanks to our beloved Dean, Dr.PRAKASH PINTO., for
supporting in carrying out this internship report.
I express my profound and sincere gratitude to Dr Riyo D’souza Principal,
St.Joseph Engineering College, Vamanjoor for his support in carrying this report.
I thank all the MBA faculty members, my parents, and my friends for helping and
encouraging me during my internship. Finally, I would like thank for those who have helped me
directly and indirectly in completing my project.
Place: Vamanjoor
Date: 15/07/2018
Table of contents
SL.NO PARTICULERS PAGE.NO
1 Executive summary
2 Introduction
3 Organizational profile
4 Mckensy’s 7S framework
5 SWOT analysis
6 Analysis of financial statement
7 Learning experience
8 Bibliography
List of tables
Table no. Particulars Page no.
1.1 Table showing profit and loss a/c of Grasim industry ltd.
1.2 Table showing balance sheet of Grasim industry ltd.
1.3 Table showing current ratio
1.4 Table showing quick ratio
1.5 Table showing debt assets ratio
1.6 Table showing net profit margin ratio
1.7 Table showing return on asset ratio
1.8 Table showing inventory turnover ratio
1.9 Table showing fixed asset turnover ratio
2.0 Table showing total asset turnover ratio
2.1 Table showing capital employed turnover ratio
2.2 Table showing common-size income statement
2.3 Table showing common size balance sheet
List of charts
CHART NO.
PARTICULARS PAGE
NO. 1.1 Chart
showing current ratio
1.2 Chart showing quick ratio
1.3 Chart showing debt assets ratio
1.4 Chart showing net profit margin ratio
1.5 Chart showing return on assets ratio
1.6 Chart showing inventory turnover ratio
1.7 Chart showing fixed asset turnover ratio
1.8 Chart showing total asset turnover ratio
1.9 Chart showing capital employed turnover ratio
EXECUTIVE SUMMARY
This is the internship report based on the four weeks internship program that I had
successfully completed at Aditya Birla Grasim chemicals limited (India) between 25.06.2018
and 21.07.2018 as a requirement of my MBA program at Department of Business Administration
by Visvesvaraya Technological University, Belagavi. Every hour spent in the Aditya Birla
Grasim chemicals limited (India) gave me good amount of experience which will be useful for
my future career.
I performing my project report on “financial performance analysis”. In the first part of the
project report the general information has been collected.
The second part of the project contains specialized subject study, objective, needs, scope and
limitations of the topic and getting adequate knowledge in finance departments in an
organization.
The third part of the project involves calculation of various ratios over four year with
common size statement four years balance sheet and profit and loss account. It involves the
calculation of various ratios and margin using the data made available by the company.
The study undertaken involves liquidity ratios, profitability ratio, activity ratio and
financial leverage ratio overall profitability of the company. These ratio have been of great
assistance in determining the financial status of the company. It is systematic use of the ratio to
interpret the financial performance so that the strength and weakness of the firm as well as its
historical performance and current financial condition can be determined. In the analysis,
financial ratio were used to gain a critical review of the specific areas of assessment of the
company’s performance. The ratio were able to provide a clear view of the overall performance
of the company.
CHAPTER 1
INTRODUCTION ABOUT THE INDUSTRY AND INDUSTRY PROFILE
1.1 INTRODUCTION ABOUT THE INTERNSHIP
Internship is a vital part of academic programme of VTU MBA. Internship is very much
beneficial to apply skills, which are learnt in the classroom, in the real world. It will improve the
knowledge. The duration of the study is four weeks. This internship is done, in order to have
knowledge about the organization structure.. This internship report gives the overview of the
organization structure of the Aditya Birla Grasim chemicals limited (India) .
Industry profile:
Chemical industry is one of oldest and fastest growing industry in India. Which contributes
significantly towards industry and economic growth of the nation. The chemical industry is the
backbone of the industrial and agricultural development. The bulk of chemicals produced in
India comprise either upstream products or intermediaries, which go into a variety of
manufacturing application, paints and dyes. The Indian chemical industry 12th largest
production,
is growing at an average rate of 12.5%.
Over the last fifteen years an Indian chemicals industry has graduated from manufacturing
principle, chemical is a highly reputed market to being a mature industry in a liberalized
economy. Until 1991, India has a closed economy with the domestic chemical industry enjoying
protection in the form of different import duties on raw materials and finished chemical products.
Chemicals manufacturing was largely controlling by licensing regulations.
Indian chemicals industry globally and have placed India at the top of peeking order. India is
poised for a new phase of growth of the chemical industry in this millennium. Main trust in India
chemical sector is on modernization to improve efficiency by lowering operating costs. Driving
engine for the entire economy, this segment recorded a steady growth as per capital consumption
is well below the world average. Some of the prominent individual chemical industries are an
Indian chemical industry occupies an important position in the country’s economy. It has been
growing at the rate of 12 per annum, which is almost twice the rate of growth of the GDP.
The exports from this sector are over ₹140 billion, which account for almost 14 percent of the
export from the manufacturing sector and about 10 percent of the total export from the country.
As substantial proportion of these export go to an USA. Europe and other developed nations an
indication that the high quality. Indian products can compete best in the world. With one of the
fastest growing economics in the world and the second largest emerging market. India is poised
for a new phase of growth of chemical industry in this millennium.
Company profile:
Grasim industries limited part of Aditya Birla Group, ranks among India’s largest private
sector companies. Its consolidated net revenue was ₹328 billion (US $6.0 billion) and
consolidated net profit of ₹32 billion (US $472 million) in FY 2017, Grasim industries, the
flagship company of the Aditya Birla Group was incorporated on August 25, 1947. It ranks
among India’s largest private sector companies starting has a textiles manufacture in 1948.
Grasim businesses comprise viscose staple fiber (VSF). Cement chemicals and textiles its core
businesses are VSF and cement, which contributes to over 90 percent of it’s revenue and profits.
Aditya Birla is an Indian multinational conglomerate named after Aditya Vikram Birla,
headquartered in Aditya Birla Centre Worli Mumbai. It operates in 40 countries with more than
120,000 employees worldwide. This group was founded by Seth Shiv Narayan Birla 1857.
Grasim Industry Limited, Karwar is spread on south west coast of India, surrounding in
evergreen foliage. The unit was established in the year 1975 with an initial investment of ₹60
crore by their groups. It is situated in Binaga, which is 5k.m. away from Karwar and surrounding
by an area of 260 acres of land in which 80 acres of land is for the company and on remaining
land, they have done colony for the working people of the company.
The first foray into the manufacture of chemicals was made when captive Caustic Soda and
Chlorine plant were set up at unit Ballapur and Shreegopal to meet the captive needs of these
paper plants. These paper plants gradually grew in size and began to cater to the outside market.
Today Grasim Industry is the largest manufacture and exporter of technical grade Phosphoric
Acid (60% market share) and a dominant player in Caustic Soda, Chlorine, Bromine and
Hydrochloric Acid markets.
CHAPTER 2
ORGANIZATION PROFILE
2. Organization profile:
2.1 Back ground
Grasim Industries Limited was incorporated in 1948; Grasim is the largest exporter of Viscose
Rayon Fiber in the country, with exports to over 50 countries. Grasim is headquartered in Nagda,
Madhya Pradesh and also has a plant at Kharach (Kosamba, Gujarat) and Harihar, Davangere in
the state of Karnataka
Indo-Thai Synthetics Company Ltd was incorporated in 1969 in Thailand, started operations in
1970, this was Aditya Birla Group's first foray into international venture. Aditya Birla Group
incorporated P.T. Elegant Textiles in 1973 in Indonesia. Thai Rayon incorporated in 1974, this
was the second company in Thailand, operating in Viscose Rayon Staple Fiber. Century Textiles
Co. Ltd. is taken over by Aditya Birla Group in 1974; this company is a weaving and dyeing
plant manufacturing and exporting variety of synthetic fabrics. PT Sunrise Bumi Textiles
incorporated in 1979, it produces yarn exported over 30 countries in 6 continents. P.T Indo
Bharat Rayon incorporated in 1980 produces Viscose Staple Fiber in Indonesia. Thai
Polyphosphates and Chemicals was started in 1984 in Thailand to produce Sodium Phosphates,
and has merged with Thai Epoxy and Allied Products Company Limited (1992), Thai Sulphites
and Chemicals Company Limited (1995) to form Aditya Birla Chemicals Ltd. This company
supplies to sectors such as food, textiles, electrical and electronics, composites, leather, plastics
and automobiles. PT Indo Liberty Textiles was incorporated in 1995 to manufacture synthetic
spun yarn.
In late 1990s and later, the focus was the textile business following the end of Multi-Fiber
Arrangement (MFA).
AV Cell Inc., a joint venture between Aditya Birla Group and Tembec, Canada, established
operations in 1998 to produce softwood and hardwood pulp for the purpose of internal
consumption among different units of the Group.
Together, Grasim Industries Ltd. and Tembec, Canada acquired AV Nackawic Inc., which
produces dissolving pulp. Grasim Industries Ltd. supplies Viscose Staple Fiber (VSP). The
Aditya Birla Group's VSF manufacturing plants are in Thailand, Indonesia, India and China.
The Group's VSF business operates through its three companies – Grasim Industries in India,
Thai Rayon Corporation in Thailand and Indo Bharat Rayon in Indonesia, which also oversees
its Chinese operations at Birla Jingwei Fibres, China.
In 2003, its Chemical Division was awarded the "Best of all" Rajiv Gandhi National Quality
Award.[5]
Grasim sponsored Grasim Mr. India event from 1994 to 2012 that sent the winner to compete in
international events like Mister International and Mister World.
Promoters of Grasim Industry Ltd.
● Kumar Mangalam Birla
● Rajashree Birla
● D.P. Mandella
● Aditya Kumar Mangalam Birla Huf
● Pilani Investment & Industries Corporations Ltd.
● P.T. Indo Bharat Rayon
● P.T. Sunrise Bhumi Textiles.
● Trupti Trading & Investment Pvt. Ltd.
Nature of business
Grasim Industries Limited is an Indian manufacturing company based in Mumbai ,
Maharashtra . It was started in 1948 as a textile manufacturer. Since then Grasim has diversified
into Viscose Staple Fiber (VSF), cement, sponge iron , chemicals and Diversified Financial
Services (NBFC, Asset Management and Life Insurance).
The company is a subsidiary of Aditya Birla Group, which operates over 40 companies in 12
countries on four continents. Grasim is the world's largest producer of viscose rayon fiber with
about 24% market share. Textile and related products contributes to 15% of the group turnover.
Vision , Mission , Quality policy
Vision
To be a leading customer-focused global chemicals business that delivers best-in-class products
and speciality solutions using safe, sustainable and innovative processes.
Mission
● To deliver superior value to our customers, shareholders, employees and society at large.
Values
● Integrity: Acting and taking decisions in a manner that is fair and honest. Following the
highest standards of professionalism and being recognized for doing so. Integrity for us means
not only financial and intellectual integrity, but encompasses all other forms as are generally
understood.
● Commitment: On the foundation of Integrity, doing all that is needed to deliver value to all
stakeholders. In the process, being accountable for our own actions and decisions, those of our
team and those on the part of the organization for which we are responsible.
● Passion: An energetic, intuitive zeal that arises from emotional engagement with the
organization that makes work joyful and inspires each one to give his or her best. A voluntary,
spontaneous and relentless pursuit of goals and objectives with the highest level of energy and
enthusiasm.
● Seamlessness: Thinking and working together across functional groups, hierarchies, businesses
and geographies. Leveraging diverse competencies and perspectives to garner the benefits of
synergy while promoting organizational unity through sharing and collaborative efforts.
● Speed: Responding to internal and external customers with a sense of urgency. Continuously
striving to finish before deadlines and choosing the best rhythm to optimize organizational
efficiencies.
Quality Policy:
Grasim Industry Limited, Chemical division Karwar, the manufacturer and supplies of
Caustic Soda, Liquid Chlorine, Hydrochloric Acid and Phosphoric Acid product is committed to
improve the customer satisfaction levels in its target market statements. Environment protection
in all activity and ensure a safe and healthy working environment at unit Karwar, by supply of
quality products, that meet or exceed customer relationship management, complying with
application environment and OH&S regulations, establishing implementing and maintaining,
QMS, EMS and OH&S system in line with ISO-9001:2008, ISO 14001:2004 and BS OHSAS
18001:2007 standard, continue planning and involvement in process and open communication
with all stakeholders on progress and performance in quality, environment, OH&S management,
continual involvement of the document system by regular review and monitoring of process, and
taking appropriate corrective action through training personnel.
1.3 PRODUCTS / SERVICES PROFILE AREAS OF OPERATION
The company offers many products in the market can increasing the customer support as long
run and it can acquire large division of a market share.
CAUSTIC SODA
Caustic soda is also known as sodium hydroxide (HaOH). It is while solid and highly caustic
metallic base and alkali salt which is available in flacks, pellets, granules and prepared solution
at a number of deterrent concentration.
APPLICATION:
● Textiles
● Petroleum refining
● Drinking water
● Pulp and paper
● Pharmaceuticals
● Soaps and detergent
● Drain cleaner
PHOSPHORIC ACID
Phosphoric Acid is also known as Ortho Phosphoric acid. It is a weak and mineral acid (H
3

APPLICATIONS :
● Food flavoring
● Dental products
● Cosmetics
● Sugar refining
● Metal anodizing
● Beverages
● Edible oil
PO
4

).
HYDROCHLORIC ACID
Hydrochloric acid is a corrosive, strong mineral acid solution of hydrogen chloride (HCI) gas
that is dissolved in water.
APPLICATIONS:
● Petroleum refining
● Production if batteries
● Water treatment
● Sugar & brewery industry
● Leather treatment
● Breaking cotton and paper and rayon
● Manufacturing of bleaching powder, carbon tetra chloride
LIQUID CHLORINE
A chemical element that is a greenish-yellow gas with a strong smell, added to water in
order to kill organisms that might cause infection. Liquid Chlorine is called Sodium
Hypochlorite (NaOCl), and because it is already in solution, 'sodium-hypo' produces
hypochlorous acid instantly when it contacts water.
Applications:
● Purification of drinking water
● Bleaching agent in pulp, paper and textile industry
● Manufacture of synthetic rubber
● PVC plastic
Areas of operation of Grasim Industry Limited
Grasim Industry Limited Chemical Division, Karwar unit in has its business spread over
India. The Karwar zone operates in the following companies,
● West Coast Paper Mills-Dandeli
● Tanvir Bavi Power company Private Ltd.- Mangalore
● Mangalore Refinery Petro-Chem. Ltd., Mangalore
● Indian Aluminum company- Belgaum
● Grasim Industries Ltd. Kumarpatnam
1.4 INFRASTRUCTURE FACILITIES:
● First aid First Aid is located near the plant and its works day and night. It is well
prepared with all medical equipment require for first aid. During this emergency the ambulance
is provided for all the workers.
● Residential quarters The company provides residential quarters for the employees in
the company with no rent given
it is deducted from the salary of the employee’s.
● Canteen facilities In company there is a canteen, which provides snacks, tea and meal
during the working hour for the employees and subsidize rate, coupons for availing this facility
are provided to all employees.
● Drinking water The company has a drinking water facilities. The employees are
provide with filter clean and cool water in all around the plant. The water tanks are kept in the
workplace besides the many taps are around the plants for suitable for all employees.
● Rest room and lunch room The company provides a rest room and lunch room where
the employees can have their lunch
and discuss any matter with assistant.
● Bus facilities
● The company provides bus facilities for employees or for employee’s children to staying in the
residential quarters of the company.
● Officer’s club The company has provided recreational facilities in the form of officer’s
cub for managerial staff
to relax themselves after a hard day’s work.
● Guest house The guest house is midst of lush green gardens. The employees have also
been provide with
cable connection at their quarter that they can relax after office hours.
● Other facilities
● A school called “BAL Bhavan” for the employee’s children is established and the syllabus is
according to the state government.
● Individual lockers are provide for each workers in their respective departments to keep their
tools and other belongings.
1.5 COMPETITOR’S INFORMATION
Some of the main competitors are as follows
● Kemp last Industries (Gujarat)
Kemp last industries is with reach skill in the field of chemicals. Gujarat is occupied in the
production and marketing of high quality chemical like hydrochloric acid, chlorinated paraffin
etc. they are diversified in the chemical, oil, gas, and steel field.
● Tata chemicals Tata chemicals is an Indian universal company with interest in chemicals, crop
nutrition and consumer products. Tata chemicals is the second largest soda ash production
capacity plant in India. The company manufacturer several products like basic and industrial
chemicals, nitrogenous and phosphate fertilizer, industrial refinishing products, coating and crop
nutrition.
● GACL (Gujarat alkalis and chemicals limited) 1974
GACL is the single largest producer of caustic soda in India. It is forward looking company
and it is a stronger and progressive company set up in the year 1973.
Ownership pattern
● Kalyan Ram Madabhushi
CEO Global Chemicals
● Neela Patnaik
Sr. President and CFO Chemicals, Fertilisers and Insulators
● E. R. Raj Narayanan
Group Executive President – India Chlor-alkali and VFY
● Ajay Mahajan Senior President Phosphates, Sulphites, Peroxides and Phosphoric Acid
● P. K. Dubey President
Epoxy division
● K. Sendhil Naathan Joint President Tanfac
● Chandra Bhattacharjee Chief People Officer Chemicals, Fertilisers and Insulators
Areas of operation of Grasim Industry Limited
Grasim Industry Limited Chemical Division, Karwar unit in has its business spread over
India. The Karwar zone operates in the following companies,
● West Coast Paper Mills-Dandeli
● Tanvir Bavi Power company Private Ltd.- Mangalore
● Mangalore Refinery Petro-Chem. Ltd., Mangalore
● Indian Aluminum company- Belgaum
● Grasim Industries Ltd. Kumarpatnam
2.6 Achievements and awards:
● Grasim's chemical division at Nagda receives Greentech Environment Excellence Award
(Gold) 2012 for outstanding achievement in environment management
● Samman Patra for 3rd highest contribution towards Central Excise Revenue in category of
Non-SSI by the Department of Revenue, Ministry of Finance, Government of India, 2008-09
● National Award for Excellence in Water Management from CII, 2009
● National Energy Conservation Award by Ministry of Power, Government of India, 2008
● PAC for Outstanding Performance in Industrial Safety as winner based on lowest frequency
rate, National Safety Award by Ministry of Labour and Employment, Government of India, 2007
● CSA for Outstanding Performance in Industrial Safety as winner based on accident-free year,
National Safety Award by Ministry of Labour and Employment, Government of India, 2007
● PAC for Outstanding Performance in Industrial Safety as runner-up based on accident-free
year, National Safety Award by Ministry of Labour and Employment, Government of India,
2007
● MC-I for Outstanding Performance in Industrial Safety as runner-up based on accident-free
year, National Safety Award by Ministry of Labour and Employment, Government of India,
2007
● National Energy Conservation Award by Ministry of Power, Government of India, 2007
● Paryavaran Puraskar from the Madhya Pradesh Government, 2006-07
● Greentech Environmental Excellence Award by Greentech Foundation, 2006
● Environmental and Ecological Gold Award by Greenland Society, 2005
● Golden Peacock Eco-Innovation Award by IOD, 2005
● Safety award for the longest accident-free period (Membrane Cell) and lowest average
frequency rate (CSA plant) from the Government of India, 2005
● CII National Energy Management Award for the most energy-efficient unit, 2005
● Certificate for Strong Commitment to Excel, CII-Exim Bank award for business excellence,
2005
● Rajiv Ratna National Award — Best Chief Executive Gold Award by Greenland Society, 2005
● Greentech Environment Excellence Award by the Greentech Foundation, 2005
● Rajiv Ratna National Award – Best Pollution Control Implementation Gold Award by
Greenland Society, 2005
● Greentech Safety Gold Award by the Greentech Foundation, 2005
● National Safety Award by the Government of India, 2005
● Indira Gandhi Memorial National Award by the Greenland Society, 2005
● Vishwakarma National Award by the Government of India, 2005
Future growth and prospects
1.7 FUTURE GROWTH AND PROSPECTS
The Grasim industry has a bright future in the upcoming years. It is growing rapidly with the
turnover growing strongly over the past few years, ensure growth in both revenue and earnings, a
slew strategic initiatives were launched during the year. The merger with Aditya Birla Chemicals
has resulted geographical opportunities. The Grasim industry in India is the finest manufacturer
and exporter of chemicals like Phosphoric acid and they are dominant player in manufacturing of
Caustic Soda.
CHAPTER 3 : MCKENSY’S 7S FRAMEWORK
Mckensy’s 7 s model
:
The McKinsey 7-S model involves seven interdependent factors which are categorized as
either "hard" or "soft" elements.
Hard elements are easier to define or identify and management can directly influence them.
These are strategy statements, organization charts, reporting lines, formal processes and IT
systems.
Soft elements, on the other hand, can be more difficult to describe, and are less tangible and
more influenced by culture. However, these soft elements are as important as the hard elements
if the organization is going to be successful.
Hard elements: Strategy, Structure and Systems.
Soft elements: Style, Staff, Skills, Systems and Shared values.
Strategy is a plan developed by a firm to achieve sustained competitive advantage and
successfully compete in the market.
Structure represents the way business divisions and units are organized and include the
information of who is accountable to whom.
Systems are the processes and procedures of the company, which reveal business’ daily activities
and how decisions are made.
Skills are the abilities that firm’s employees perform very well. They also include capabilities
and competences.
Staff element is concerned with what type and how many employees an organization will need
and how they will be recruited, trained, motivated and rewarded.
Style represents the way the company is managed by top-level managers, how they interact, what
actions do they take and their symbolic value. In other words, it is the management style of
company’s leaders.
Shared Values are at the core of McKinsey 7s model. They are the norms and standards that
guide employee behavior and company actions and thus, are the foundation of every
organization..
Usage
➢ Improve the performance of a company
➢ Examine the likely effects of future changes within a company
➢ Determine how best to implement a proposed strategy
Importance of McKinsey ‘s Framework
➢ McKinsey’s framework is essentially a multivariate model of organizational change. It is
recognized as a powerful expository tool as it highlights several organizational
interconnections like those between staff and skills, strategy and systems which have
critical significance for affecting organizational change. It underlines the criticality of
action plans in the seven areas (S,) reflecting and organizational capacity of bringing
about shifts in the strategy.
➢ An effective implementation of strategy is thus shown to be conditioned by the ability of
management to bring all 7-S into harmony.
➢ The McKinsey also provides a convenient method of checking whether an organization
has the necessary conditions for implementing strategy. This model also provides the
basis on which the causes of shortfall may be diagnosed and remedial measures can be
19 adopted. Furthermore, organizational capabilities may be evaluated along each of the
seven dimensions.
IMPLICATION OF McKinsey’s 7S MODEL of Aditya birla grasim chemical limited india
Strategy:
Systems:
Structure:
Skills:
Staff:
Style:
Shared Values:
Chapter 4: SWOT ANALYSIS
SWOT Analysis
The SWOT analysis is a business analysis technique that one organization can perform for each
of its products, services and markets when deciding on the best way to achieve the future growth.
The process involves identifying the strengths and weaknesses of the organization,and
opportunities and threats present in the market that it operates in. The first letter of each of these
four factors creates the acronym SWOT.
Strengths - Strengths are the qualities that enable us to accomplish the organization’s mission.
These are the basis on which continued success can be made and continued/sustained. Strengths
are the beneficial aspects of the organization or the capabilities of an organization, which
includes human competencies, process capabilities, financial resources, products and services,
customer goodwill and brand loyalty. Examples of organizational strengths are huge financial
resources, broad product line, no debt, committed employees, etc.
23
Weaknesses - Weaknesses are the qualities that prevent us from accomplishing our mission and
achieving our full potential. These weaknesses deteriorate influences on the organizational
success and growth.
Weaknesses in an organization may be depreciating machinery, insufficient research and
development facilities, narrow product range, poor decision-making, etc. Weaknesses are
controllable. They must be minimized and eliminated.
Opportunities - Opportunities are presented by the environment within which our organization
operates. These arise when an organization can take benefit of conditions in its environment to
plan and execute strategies that enable it to become more profitable. Opportunities may arise
from market, competition, industry/government and technology.
Threats - Threats arise when conditions in external environment jeopardize the reliability and
profitability of the organization’s business. They compound the vulnerability when they relate to
the weaknesses. Threats are uncontrollable.
SWOT ANALYSIS OF THE Aditya Birla Grasim Chemical limited india
Strength
● It is India’s premium exporter and manufacturer of chemicals like caustic soda and phosphoric
acid.
● Grasim industry is the subsidiary of the Aditya Birla Group which operates over 40 companies
more than 10 countries.
● Aditya Birla Group have good brand name in the market.
● The R&D department upgrades technical known how to beat balance with global standard.
● Birla Group having operations in different sectors helps its subsidiaries like to grow in all
aspects.
● It has automated and standardized employees.
Weakness
● Grasim industry have fluctuating the sales which can affect profitability.
● Wastage of products during the transportation and loading.
● Raw material have to be procured from distant place that is from Gujarat, so transformation
cost increases.
● There is no active promotion policy.
● The industry needs to significantly support its technical capabilities and marketing insight to
be competitive in the market.
Opportunities
● Grasim industry has expand and product line operation to other country.
● There will be more scope to entire into the global market.
● Continuously improvement in the quality of production and services.
● These industry should focus on increasing the brand activities, these activities results into the
higher sales.
Threats
● Health issue concerned during the production of chemicals.
● Threats for the natural calamities because the plant is established near the coastal areas.
● Increase in cost of production due to the increase in cost of raw materials and power.
● China, with higher scale of production and power tariff makes has globally competitive
production cost compared to India and poses threats to the Indian business.
CHAPTER 5 ANALYSIS OF FINANCIAL STATEMENTS
1. Statement Changes in Working Capital: Particulars 2015 2016 Increase /
Decrease
% changes
ASSETS a-Non-Current assets
Property, plant and equipment’s 27495.8 30915.67 3419.87 12.43779 Capital Work in progress
2693.56 1787.3 -906.26 -33.64544 Goodwill 2962.39 3015.52 53.13 1.7934843 Other intangible
assets 213.18 339.59 126.41 59.297307 Intangible assets under development 4.84 1.08 -3.76 -
77.68595 Financial assets
Equity accounted investees 1838.27 2040.18 201.91 10.983697 Investments 4090.97 4970.62
879.65 21.502235 Loans 182.31 200.83 18.52 10.158521 Other financial assets 547.1 283.72 -
263.38 -48.14111 Deferred tax assets (net) 12.12 19.04 6.92 57.09571 Non-current tax
liability(Net) 94.78 186.64 91.86 96.919181 Other non-current assets 984.87 758.73 -226.14 -
22.96141 Total non-current assets 41120.19 44518.92 3398.73 8.2653558
b-Current assets
Inventories 4340.22 4148.75 -191.47 -4.411528 Financial assets
Equity accounted investees Nil 55.31 55.31 Investments 3732.14 3535.09 -197.05 -5.279813
Trade receivables 2457.31 3002.01 544.7 22.166515 Cash and cash equivalents 124.7 113.34 -
11.36 -9.109864 Bank balance other than cash and 298.97 2193.81 1894.84 633.78934 cash
equivalents Loans 196.19 175.22 -20.97 -10.68862 Other financial Assets 207.68 596.68 389
187.3074 Current Tax assets (Net) 102.37 110.78 8.41 8.2152975 Other Current Assets 1344.63
1127.4 -217.23 -16.15537 Assets Held for disposal 9.53 18.17 8.64 90.66107 Totla current assets
12813.74 15076.56 2262.82 17.659325
Total assets 53933.93 59595.48 5661.55 10.497195
EQUITY AND LIABILITIES a-Equity
Equity shares and capital 91.87 93.36 1.49 1.621857 Other equity 24390.96 27335.95 2944.99
12.074105
Equity attributable to owners of the company
24482.83 27429.31 2946.48 12.034883
Non-controlling interest 7849.79 8728.82 879.03 11.198134
Total equity 32332.62 36158.13 3825.51 11.831735
b-Liabilities
Non-current liabilities Financial liabilities
Borrowings 6261.64 5544.17 -717.47 -11.45818 Trade payables 15.7 8.31 -7.39 -47.07006 Other
financial liabilities 79.96 9.74 -70.22 -87.81891 Provisions 299.21 345.68 46.47 15.530898
Deferred tax liabilities(Net) 2554.45 3043.98 489.53 19.163812 Other non-current liabilities
20.92 22.49 1.57 7.5047801 Total non-current liabilities 9231.88 8974.37 -257.51 -2.789356
c-Current liabilities
Financial liabilities
Borrowing 2656.5 3478.91 822.41 30.958404
Trade payable- total outstanding dues of
-Micro and small enterprises 2 5.81 3.81 190.5
-Creditors other than micro & small enterprises
2274.59 2389.73 115.14 5.0620112
Other financial liabilities 3066.77 3952.47 885.7 28.880549
Other current liabilities 3249 3642.02 393.02 12.096645 Provisions 174.25 268.32 94.07
53.985653 Current tax liabilities(Net) 946.32 725.72 -220.6 -23.31135 Total current liabilities
12369.43 14462.98 2093.55 16.925194
TOTAL EQUITY AND LIABILITIES 53933.93 59595.48 5661.55 10.497195
Comparative balance sheet 2016 and 2017 as on 31st March In crore
Particulars 2016 2017 Increase/decrease %change ASSETS a-Non-Current assets
Property, plant and equipment’s 30915.67 31420.41 504.74 1.6326348 Capital Work in progress
1787.3 1296.34 -490.96 -27.46937 Goodwill 3015.52 2994.39 -21.13 -0.700708
Other intangible assets 339.59 371.93 32.34 9.5232486 Intangible assets under development 1.08
0.63 -0.45 -41.66667 Financial assets
Equity accounted investees 2040.18 2151.83 111.65 5.4725563
Investments 4970.62 5049.96 79.34 1.5961791 Loans 200.83 199 -1.83 -0.911218 Other
financial assets 283.72 76.52 -207.2 -73.02975 Deferred tax assets (net) 19.04 20.44 1.4
7.3529412 Non-current tax liability(Net) 186.64 136.62 -50.02 -26.80026
 Other non-current assets 758.73 591.12 -167.61 -22.09086 Total non-current assets
44518.92 44309.19 -209.73 -0.471103
b-Current assets
Inventories 4148.75 4231.42 82.67 1.9926484 Financial assets
Equity accounted investees 55.31 4.46 -50.85 -91.93636 Investments 3535.09 6994.13 3459.04
97.848711 Trade receivables 3002.01 3009.56 7.55 0.2514982 Cash and cash equivalents 113.34
93.83 -19.51 -17.21369 Bank balance other than cash and 2193.81 2213.19 19.38 0.8833946
cash equivalents Loans 175.22 180.16 4.94 2.8193129 Other financial Assets 596.68 398.16 -
198.52 -33.27076 Current Tax assets (Net) 110.78 30.9 -79.88 -72.10688 Other Current Assets
1127.4 1294.61 167.21 14.831471 Assets Held for disposal 18.17 7.98 -10.19 -56.08145 Total
current assets 15076.56 18458.4 3381.84 22.431112
Total assets 59595.48 62767.59 3172.11 5.3227359
EQUITY AND LIABILITIES a-Equity
Equity shares and capital 93.36 93.37 0.01 0.0107112 Other equity 27335.95 31293.44 3957.49
14.477236
Equity attributable to owners of the company
27429.31 31386.81 3957.5 14.427997
Non-controlling interest 8728.82 9701.93 973.11 11.148242
Total equity 36158.13 41088.74 4930.61 13.636242
b-Liabilities
Non-current liabilities Financial liabilities
Borrowings 5544.17 6768.71 1224.54 22.086985 Trade payables 8.31 8.13 -0.18 -2.166065
Other financial liabilities 9.74 34.81 25.07 257.3922 Provisions 345.68 370.29 24.61 7.1193011
Deferred tax liabilities(Net) 3043.98 3538.82 494.84 16.256349
 Other non-current liabilities 22.49 35.6 13.11 58.292574 Total non-current liabilities
8974.37 10756.36 1781.99 19.856436
c-Current liabilities
Financial liabilities
Borrowing 3478.91 1157.85 -2321.06 -66.71802 Trade payable- total outstanding dues of
-Micro and small enterprises 5.81 5.11 -0.7 -12.04819
-Creditors other than micro & small enterprises
2389.73 3063.71 673.98 28.203186
Other financial liabilities 3952.47 1688.05 -2264.42 -57.29126
Other current liabilities 3642.02 3949..42 307.4 8.440371 Provisions 268.32 253.88 -14.44 -
5.381634 Current tax liabilities(Net) 725.72 804.47 78.75 10.851293 Total current liabilities
14462.98 6973.07 -7489.91 -51.78677
TOTAL EQUITY AND LIABILITIES 59595.48 58818.17 -777.31 -1.30431
2. Ratio Analysis 1.
Ratio analysis is an attempt of developing meaningful relationship between
individual items (or group of items) in the balance sheet or profit and loss account.
Ratio analysis is not only useful to internal parties of business concern but also
useful to external parties. Ratio analysis highlights the liquidity, solvency,
profitability and capital gearing.
Comparison of balance sheet of 2015 & 2016 as on 31st March
Graphic showing comparative balance sheet of 2016 & 2017
Graphic showing comparative balance sheet 2016-2017 & 2015-2016
Trend analysis
Trend % analysis = Base year × 100
Current year
Table showing trend analysis
Grasim industries ltd.
Particulars 2014 2015 2016 2017
Net sales Cost of goods sold Gross margin Operating expenses Total Operating income Net
income
Conclusion
The performance of Aditya Birla Grasim Industries Limited in terms of financial performance
analysis. In some areas, society needs to focus more. Grasim industry should try to overcome the
obstacles. In this study. I discussed the profile of Grasim industry ltd. the industrial profile, the
effectiveness of Grasim’s financial performance analysis using financial ratios and common size
statement analysis. The study of the last four years of the liquidity situation of the company is
better. Company’s current assets and current liabilities is satisfactory. The employees of
Grasim’s are very co-operative, with their help, I was able to complete my project, apart from the
project details, they also taught me their work and I learnt other activities and gained practical
knowledge, so I am very much thankful to them for their support and encouragement.
Learning experience:
As a part of academic curriculum for MBA, the internship was conducted for a period of 4 weeks
ie., from 25/06/2018 to 21/07/2018. I carried out my internship in Grasim Industry Limited
branch of Aditya Birla Group This gave me a complete new experience and also an exposure to
the world of Chemical Industry . This internship helped me in understanding the working and
organizational environment of the company to a great extent.The opportunity which was given
by the company to study the organization structure and its functions with the help of employes of
the company to helped me to understand many aspects which I studied in academia.
Throughout my internship I had to sit with the employees there, this
helped me not only in study about their services along with that, it gave me an insight about few
personality development .This internship was a very good chance for to study many new things
such as financial aspects. This organization has taught me to deal with the financial statements
and analysing techniques. As a management student this internship helped me to gain practical
knowledge through the application of theory concepts which I studied in class and apply them to
a real organization. This internship is been a great practical learning experience for me.
BIBLIOGRAPHY:
• www.adityabirlachemicals.com
• www.wikipedia.com