A Report On An Organisational Study at Carborundum Universal LTD Kalamassery

A REPORT ON AN
ORGANISATIONAL STUDY AT
CARBORUNDUM UNIVERSAL LTD
KALAMASSERY
SUBMITTED TO KANNUR UNIVERSITY

in partial fulfilment of the requirement for the award of the
degree of
MASTER OF BUSINESS ADMINSTRATION
SUBMITTED BY
JERIN JOHN
Reg. No B8GMBA3010
Under the guidance of
PRASAD THOMAS
ASSISTANT PROFESSOR
VIMAL JYOTHI
INSTITUTE OF MANAGEMENT & RESEARCH
CHEMPERI, KANNUR-670632
2018-2020
DECLARATION
I, Jerin John, third semester MBA student of Vimal Jyothi Institute of
Management & Research (VJIM) Chemperi, Kannur hereby declare that the report
titled “ORGANIZATIONAL STUDY AT CARBORUNDUM UNIVERSAL
LTD ,KALAMASSERY,ERNAKULAM ” has been prepared by me under the
guidance and supervision of Mr Prasad Thomas, Assistant Professor, VJIM and
submitted to Kannur University, in partial fulfillment of the requirement for the
award of the degree of Master of Business Administration.
I further declare that this report has not been previously submitted to any
institute or University for the award of any Degree/Diploma, Fellowship or other
similar title.
Place: Chemperi Jerin John
Date: 30/07/2019 RegNo.:B8GMBA3010

ACKNOWLEDGEMENT
First of all,I sincerely thank “Almighty god” for giving me the strength, courage
and knowledge in bringing out this organization report successfully.
I want to express my sincere thanks to my project guide Asst.Prof.Prasad
Thomas who give me full support ,instructions and advice to complete the study
successfully.
I extend my gratitude to the management and staff of CARBORUNDUM
UNIVERSAL LTD. especially to Mr.NIBU JOHN (HR MANAGER) my guide in
the company, for his kind support in making this organization studies a great
success.
I extend my sincere thanks to the HR Dept.and others who helped and
guided me throughout my organization study.
And last but not the least I thank my parents and family members who
encouraged me throughout the preparation of this organization study and all my
friends who have helped me.
Jerin John
TABLE OF CONTENTS
CHAPTER NO. TITLE PAGE NO.
INTRODUCTION 1–4
1.1 Introduction to the study 1

1.2 Significance of the study 2
1 1.3 Objectives of the study 2

1.4 Methodology of the study 2
1.5 Chapter scheme 3
1.6 Limitations of the study 4
PROFILE OF THE INDUSTRY 5–8
2.1 Industry at Glance 5
2
2.2 Global Scenario 5
2.3 National Scenario 6
2.4 state Scenario 8
PROFILE OF THE ORGANIZATION 9 – 44
3.1 Company profile 9
3
3.2 Product Profile 14
3.3 Organizational Structure 18
3.4 departmentalization 19
DATA ANALYSIS AND 45 – 47
4 INTERPRETATION
FINDINGS, RECOMMENDATIONS & 48 - 51

CONCLUSION
5 5.1 Findings 48
5.2 Recommendations 49
5.3 Conclusion 50
ANNEXURES
Interview schedule
Bibliography
LIST OF TABLES
TABLE NO. TITLE PAGE NO.
3.1 Share Holding pattern 33

LIST OF FIGURES
FIGURE NO. TITLE PAGE NO.

3.1 Organizational Structure 18
3.2 Structure of Production Department 20
3.3 Production Process 21
3.4 Commercial Department Hierarchy 22
3.5 Purchase Procedure 23
3.6 Structure of Maintenance Department 25
3.7 Structure of Quality Control Department 27
3.8 Structure of R & D Department 30
3.9 Structure of Finance Department 31
3.10 Structure of HR Department 34
3.11 Selection Procedure 37
3.12 Structure of Marketing Department 40

CHAPTER- 1
INTRODUCTION
CHAPTER- 1
INTRODUCTION
1.1 INTRODUCTION
An organization is a social arrangement which pursues collective goals, controls its
own performance and has a boundary separating it from its own environment.
Organization is the association formed by a group of people who see that there are
benefits available from working together towards some common goals.
An organization study is the study of individual and group dynamics in an
organizational setting, as well as the organization itself. . It refers to the study
organization as a whole and getting adequate knowledge of various departments in the
organization. As part of the MBA course curriculum, it is advised to do an
organization study to understand how a company functions and how the theoretical
knowledge differs from the actual practices . It gives a dynamic exposure to the
management students during the course of the study. This helps to gain realistic and
factual knowledge about the functions and activities of each department in the
organization.
This organization study was conducted at Carborundum Universal ltd.(CUMI) which
is an important segment of Murugappa group . CUMI offers more than 20000
varieties of products. CUMI’s product offering comprises of coated abrasives, bonded
abrasives, electro minerals super refractories and industrial ceramics. This study was
conducted in the electro minerals division (EMD) of CUMI, which is situated in
Ernakulam,Kerala.
The Electro Minerals Division of CUMI (CUMI Minerals) provides tailor-made
solutions in the world of Fused & Sintered Minerals.

Carborandum universal ltd
1.2 SIGNIFICANCE OF THE STUDY
The study basically aims to find out the responsibilities and duties of various
departments in the organization. The study focuses on understanding the organization,
its policies, structure and the overall functioning of the organization. It is purely based
on the information obtained from the primary and secondary data. And also it relates
theory with practice.
The organization study was conducted with the purpose of getting some valuable
practical knowledge about the day to day activities taken place in an organization and
an effort to relate the theoretical knowledge that we have got from the class rooms to
the actual organizational scenario.
1.3 OBJECTIVES OF THE STUDY
 To study the organization structure and procedure


 To study the department wise functioning of the company

 To know the manufacturing process of the company

 To perform SWOT analysis of the company
1.4 METHODOLOGY OF THE STUDY
Methodology is the systematic, theoretical analysis of the methods applied to a field
of study. It comprises the theoretical analysis of the body of methods and principles
associated with a branch of knowledge. The data collected from different sources. The
main source of data is primary and secondary data.
Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 2

1.4.1 Method Of Data Collection
1.4.1.1 Primary Data
The tool for collecting data from primary sources included direct observation and
interview, discussions with administrative heads and in charges of the departments.
1.4.1.2 Secondary Data
Secondary data was collected from the sources comprising annual report and other
published data’s of the organisation. It also includes sources like books, magazines,
journals, brochures, official website of the company etc.
1.4.2 Period Of The Study

th
The study was conducted for a period of one month, commencing from 24 May to
nd
June 22 2019.
1.5 CHAPTER SCHEME

The final organizational study report is organized in the following manner.
CHAPTER I: INTRODUCTION
The first chapter includes Introduction about the study, Scope of the study, Objective
of the study, Methodology, Limitations of the study and Period of the study
CHAPTER II: PROFILE OF THE INDUSTRY
This chapter gives over all view about the industry in which the organisation deals
with
CHAPTER III: PROFILE OF THE ORGANISATION
This chapter gives the history, growth, objective and other activities of carborandum
universal.Ltd. and also about the different functional departments in the organization
and its responsibilities.

CHAPTER IV: DATA ANALYSIS AND INTERPRETATIONanalysis reveals the
present position of the organization. It is the assessment of strength, opportunities,
weakness and threats faced by the company
CHAPTER V: FINDINGS, RECOMMENDATIONS AND CONCLUSION
This chapter shows the findings, suggestions and conclusions about the organization
study
1.6 LIMITATIONS OF THE STUDY
 Difficulty in meeting the officials because of their busy schedules.
 Due to the insufficient time the whole activities in the organization could not
be completely studied.
 Delay in providing the required data from the top level
 Not providing the official documents.
 Difficult to get more details from the officials as they are busy with their work

CHAPTER- 2
PROFILE OF THE INDUSTRY

CHAPTER 2
PROFILE OF THE INDUSTRY
2.1 INDUSTRY AT A GLANCE
Electro minerals are used as basic raw material in the manufacture of
abrasives and refractories. They are also used for surface preparation and in tile and
paint industries and used for silicon wafer slicing in solar cell manufacture, dental
care and skin therapy. Key user industries for the Electrominerals segment are
Abrasives, Refractories, Steel, Photovoltaic, Brake linings, Nuclear energy, wooden
laminates, Friction composites, Diesel Particulate Filter, Semiconductor and others.
The manufacturing process of electro minerals are as follows: Basic inputs are fused
using electric arcing. Then the resultant crude is crushed and graded. The key inputs
for manufacture of electro minerals include bauxite , alumina, silica sand, raw
petroleum coke and electricity.
The key success factors in this industry are cost and quality. Entry barriers are
high capital investment, limited market and technology. Availability of alternatives
and product differentiation are the main challenges in this business.
Electrominerals markets are largely commoditized markets and any fluctuation in raw
material prices has a tendency to negatively impact the margins for the segment. Thus
securing access to raw materials, fuel and cheap power costs are key success
factors in the business.
2.2 GLOBAL SCENARIO
The global market size for electro minerals is estimated at around USD 2.5 billion.
The key success factors in this industry are cost and quality. Entry barriers are high
capital investment, limited market and technology. Availability of alternatives and

product differentiation are the main challenges in this business. In recent years there
has been an upsurge in the price of aluminum, largely due to increased demand from
China and, to lesser extent. India, while supply has kept pace, partly, through the
expanding or reopening of older, less competitive factories, which are often in areas
that one had an advantage with respect to energy costs. It is forecast that there will be
a shortage of global aluminum smelting capacity within five years. The aluminum,
alumina and bauxite manufacturing industry must focus on innovative measure to
come out of the global recession. For this, the industries should focus on the optimum
use of the capacity, effective utilization of manpower and raw-materials, adoption of
innovative marketing strategy, waste utilization and use of modern technology in the
production process. Such important indices need to look at with seriousness for
reviving the growth in this sector.
Given the sharp uptick witnessed in the Automobile, Steel and Glass business last
year, the demand from Abrasives and Refractory customers catering to these
industries improved sharply in FY18, leading to a sharp growth of 18% for Electro
mineral segment in FY18 and segment has continued to see similar growth in the
beginning of FY19 as well3. The acquisition of Volzhsky Abrasive Works, Russia
has positioned CUMI as the second largest producer of silicon carbide in the world.
Apart from CUMI, the major players in this industry are Saint Gobain, Treibacher,
Washington Mills, Kollo and a few Chinese manufacturers.
2.3 NATIONAL SCENARIO
In India, CUMI is one of the leading players in aluminium oxide grains. Apart from
CUMI, Grindwell Norton, Orient Abrasives and SNAM Abrasives are the others.
Imports from China are also a major source of electro minerals for the India Market.
The abrasive manufacturing industry caters to industries such as Steel, Automobiles,

Auto components, General Metal Fabrications and Woodworking. The dependence of
the industry on each one of them is about 15% each and therefore the industry enjoys
less dependency on these related industries. Taking into account the fast pace growth
of the Indian economy and the push given to manufacturing and industrial activities
under the Central Government's "Make in India" initiative in this situation seems
highly unlikely. The ·industry also contributes to the exports of the nation and
companies such as Carborundum Universal have manufacturing facilities in Russia.
China and are exporting abrasives around the world.
2014-2015 was the fourth consecutive year of low industrial growth and though there
are some signs of recovery, it is too early to say whether the recovery will be weak or
strong or whether it will be sustained. Low inflation and a stable Rupee arc the
positive aspects of the economy and could fuel a cyclical upturn of industrial activity.
Under the current circumstances.a gradual industrial revival is the most likely
scenario.
With the prices of bauxite and power the two most important inputs under
government control, governments can do have considerable influence on entry and
development of private sector investors. Government exercise the prominent role in
the capacity as:-
 Regulators: tax regimes, price controls, environmental, commercial and
industrial policies.
 Suppliers or granters of access for mining rights and power development.
As stated earlier, the push given to domestic manufacturing under ''Make in India'·
initiative will help in attracting more investment towards production in India which
will help this industry and all those that make use, of this industry's products.

2.4 STATE SCENARIO
Kerala is traditionally backward in industrial development. So the Government has
come forward with policy initiatives for greater industrial investment and has laid
stress on facilitating more private industrial investment in the State. The industrial and
commercial policy 2007 aims at energizing the traditional sector through technology
upgradation, diversification and modernization and restructuring and reviving public
sector through upgradation of technology, inter - PSU tie-up, capacity building,
effective corporate governance etc. Kerala has large deposits of heavy mineral sand in the
form of monozite, ilmenite, thorium, rutile, zirconium etc. There are two titanium based
industries - the Travancore Titanium Products Ltd and Kerala Minerals and Metals Ltd. The
State has large deposits of China clay mainly concentrated in Thiruvanthapuram, Kollam and
Kasaragod districts. The deposits of graphite, silica and limestone are considerable in the
State. However mineral sand and China clay contribute 90 percent of the total value of
mineral production in the State.
In 2006-2007 the gem testing laboratory under the Department of Mining and
Geology identified 2586 gem stones. Kerala has deposits of Chrysoberil. Granite
rocks are abundant in the State and hence there is a flourishing minor quarrying
activity under the regulations of the Department of Mining and Geology.

CHAPTER-3
PROFILE OF THE ORGANISATION

CHAPTER 3
PROFILE OF THE ORGANISATION
3.1 COMPANY PROFILE
Carborundum Universal Ltd (CUMI) is a part of Murugappa Group, one of the
largest and oldest conglomerates in India. CUMI is the leading manufacturer and
developer of abrasives, ceramics, refractories, machine tools. polymers, adhesives
and electro minerals in India. CUMI is the only abrasive manufacturer with the
diversification. Global presence of the company is made through the establishment of
number of subsidiaries across India. Russia, South Africa, Australia, China, Thailand
and Canada.
CUMI was founded in l954 as a tripartite collaboration between the Murugappa
Group, The Carborundum Co., USA and the Universal Grinding Wheel Co. Ltd. U .K.
The company pioneered the manufacture of Coated Abrasives and Bonded Abrasives
in India in addition to the manufacture of Super Refractories. Electro Minerals,
Industrial Ceramics and Ceramic Fibers. Today the company's range is over 20,000
different varieties of abrasives. refractory products and electro-minerals are
manufactured in ten locations across various parts of the country.
With state-of the art facilities and strategic alliances with global partners, CUMI has
achieved a reputation for quality and innovation. CUMI is one of the five
manufacturers in the world with fully integrated operations that include mining,
fusioning, wind and hydro power stations manufacturing. marketing and distribution.
Almost all of CUMI's ten manufacturing facilities have received the ISO 900l:2008
accreditation for quality standards. A well connected marketing and distribution

Carborundum universal ltd
network of offices and warehouses in India and abroad. ensure that service to
customers is given prime importance.
CUMl's constant innovation and product up gradation, through inhouse R&D and
strategic alliances with global leaders in grinding technology, have not only ensured it
market leadership in India and abroad, but also international recognition as a
manufacturer of quality abrasives and a provider of total grinding solutions. CUMI's
products are being exported to 43 countries spread across North America, Europe,
Australia, South Africa and Asia.
3.1.1 History
CUMI was established as a result of diversification from banking business through
cycle manufacturing with the intent to manufacture abrasive materials. CUMI's parent
company, the Murugappa Group, made a tie up with the Carborundum, UK. a
subsidiary of American abrasive manufacturer, Carborundum. USA and the Universal
Grinding Co. Ltd., UK in 1950. The result was the Carborundum Universal of
Madras. Then it was renamed and incorporated in 1954 as Carborundum Universal
Ltd (CUMI).
3.1.2 Diversification
Besides manufacturing, marketing and distribution CUM! is also involved in
diversified works like mining, power generation and other agreements with various
organizations. CUM! acquired Bauxite mines at Bhatia and Okha of Gujarat in India,
Silicon Carbide plant in Koratty, Kerala and a Brown Aluminium Oxide grains Plant
at Edappally, India. CUMI established a 12MW hydroelectric power plant at Maniyar,
Kenda in 1994 and a 5.5MW Wind mill at Nallur.

The major divisions are:
 Electro minerals
 Abrasives
 Ceramics
 Super Refractories
 Ware house Equipment
 Material Handling Equipment
 Power-tools
 Metal Working Fluids
 Strapping Tools
3.1.3 Objectives
The following are the 5 major objectives of Carborundum Universal Ltd.
3.1.3.1 Integrity
“We value professional and personal integrity above all, We achieve our goals, been
honest and straight forward with all our stakeholders. We earn trust with every action,
every minute, every day".
3.1.3.2 Passion
We play to win. We have a healthy desire to stretch. to achieve personal goals and
accelerate business growth, We strive constantly to improve and be energetic in
whatever we do.

3.1.3.3 Quality
''We take 01rnership or our work, We unfailingly meet high standards of quality in
both what we do and the way we do and the way we do it we take pride in excellence"
3.1.3.4 Respect
"We respect the dignity or every individual” We are open and transparent with each
other. We inspire and enable people achieve high standard and challenging goals.. We
provide everyone. equal opportunities to progress and grow”.
3.1.3.5Responsibility
We are responsible corporate citizens, We believe we can make a difference to our
environment and change lives for the better_ We will do this in a manner that benefits
our size and reflects our humility''.
3.1.4 Vision
The vision of Carborundum Universal Madras India is "We will be admired as
technical ceramic company, driven by innovation, continuously enhancing
stakeholder wealth".
3.1.5Mission
Become one of the largest Abrasives (including Super Abrasives) / Technical
Ceramics in the Company in the World
3.1.6 CUMI Electro Minerals Division Overview
Carborundum Universal is a $ 380 million sales company in the space of Abrasives,
Electrominerals and Ceramics. CUMI pioneered the manufacture of coated and
bonded abrasives in India, besides super refractories, electro minerals, industrial

ceramics and ceramic fibres. In sync with the global vision, CUMI is expanding its
product spread. The Company makes over 20,000 varieties of products manufactured
at 25 locations across India, Russia, South Africa, Australia, China, Thailand and
Canada. CUMI exports its products to 43 countries spread across the globe. All the
manufacturing facilities of CUMI are ISO 9001:2015 and ISO 14001: 2015 certified
for quality standards and environment-friendly manufacturing practices. Electro
Minerals Division of CUMI is in the business of Brown Fused Alumina, White Fused
Alumina, Silicon Carbide & High Quality Micro Grits. The Division also offers other
Fused and Sintered products for various applications.
CUMI is equipped with a state-of-the-art Research and Development centre that
works aggressively on product development and efficiency enhancement. Its in-house
R & D and collaborative research with leading research institutions have ensured
market leadership in India and abroad. CUMI has manufacturing practices like Lean
and Six Sigma in place to improve its cost competitiveness.
3.1.7 Vital Status
Name : Carborundum Universal Limited (CUMI)
Type : Public
Founded : 1954
Headquarters : Chennai, Tamil Nadu, India
Products : Abrasives, electro minerals, industrial ceramics
Nature of products : Industrials and consumer
Parent : Murugappa Group
Website : www.cumi murugappa.com

3.1.8 Electro Mineral Division (Kalamassery)
Carborundum Universal Ltd, Kalamassery unit was founded 11 November 1962.

Sri.V.V.Giri is the founder of the Kalamassery unit. It is one of the major Electro
Minerals divisions of Carborundum Universal Ltd. The average production was 65
tons during the period 1965 and it was a small scale industry at that pe1·iod. In 1966-
1967.the production was increased up to the level of 850 tons. Now the production is
around 2600 tons per month. CUMI. Kalamassery, achieved the prestigious
commendation award for energy conservation, from the Government of Kerala for the
year 1997-1998, in the major industries category.
3.2 PRODUCT PROFILE
3.2.1 Major products And Uses
The following is a brief explanation about the various types of electro minerals
Calling into these 3 categories. Produced by the Electro Minerals Division (EMD) of
Carborundum Universal Limited.
 Fused products
 Specialty products
 Micro powders
3.2.1.1 Fused Products
 Brown Fused Alumina: Brown Fused Alumina is a tough, sharp
abrasive which is highly suitable for grinding metals of high tensile strength. Its
thermal properties make it an excellent material for use in the manufacture of
refractory products. This material is also used in other applications like blasting and
surface hardening.

 White Fused Alumina: White Fused Alumina 1s a high purity. synthetic
mineral, manufactured by the fusion of controlled quality pure grade Bayer Alumina
in an electric arc furnace at temperatures greater ,than 2000'C followed by a slow
solidification process. · Strict control over quality of raw materials and fusion
parameters ensure products of high pu1·ity and high whiteness.
White Fused Alumina is highly friable and hence used in Vitrified Bonded
Abrasives products where cool, fast cutting action is essential and also in the
manufacture of high purity Alumina refractories. Other applications include use in
Coated Abrasives.
 Silicon Carbide: Silicon Carbide is a man-made mineral of extreme hardness
and sharpness. It is the ideal abrasive for grinding sanding materials or low tensile
strength such as Cast Iron. Brass. ALUMINIUM Bronze etc. Its thermal properties
make it an excellent medium for use in the manufacture of refractory products and
crucibles.
3.2.1.2 Specialty products
 Semi-Friable Alumina: Semi-Friable Alumina is a low titania containing
brown corundum produced by controlled smelting of special grade Bauxite in an
electric arc furnace above 2000 deg C. The lower titania gives an intermediate
toughness between that of White and Brown Regular corundum and strict control of
this parameter over a narrow band ensures consistent quality.
In Bonded Abrasives, semi friable alumina can be used depressed center wheels,
cut off Wheels, in Surface and Cylindrical Grinding of heat sensitive metals, alloys
etc. The wheels, made of this material are made best use of where cool and fast
cutting is required. In Coated Abrasives. these grains are best suited for use in metal

finishing and for sanding of wood, plastic coatings and paint.
 Blue Fired Semi Friable Alumina: Blue Fired Semi Friable Alumina is a low
titania containing brown corundum produced by controlled smelting of special grade
Bauxite in an electric arc furnace at greater than 2000 deg C. The lower titania and an
intermediate toughness between that of White and Brown Regular corundum and
strict control or this parameter over a narrow band ensure consistent quality.
 Fused Mullite: Mullite is manufactured by fusing a mixture of high purity
Bayer Alumina and pure Quartz in a tilting type arc furnace at a temperature around
2000 deg C. Controlled cooling of the molten mass ensures a high degree of
mullitization characterized by well-defined columnar crystals
 Fused Zirconia: CUMI manufactures Fused CalciaStabilzed Zirconia
material for use in the manufacture of slide gate refractories used in the continuous
casting of steel.
 Sintered Alumina: Azures is a Sintered Alumina abrasives grain. It is
manufactured by our patented state-the-art process through sol-gel technology. This
grade of sintered alumina abrasive grain is well known for its high pe1·forrnance and
unique fracture characteristic. It pcrforn1s better in high pressure grinding application
and also withstands other severe application conditions. It also provides cooler-cutting
and longer life of the wheel. Ali these make this gram a unique choice for the
abrasives manufacturers.
 Zirconia Mullite: CUMI's Fused Zircon Mullite (Zirmul) manufactured by
fusing a mixture of high purity) raw material by a unique process. The fused solidified
ZirMul is crushed and graded to custom, sizes in a state of the art facility.
CUMI ZirMul is used in applications requiring high resistance to

environmental corrosion and a low coefficient of thermal expansion like refractory
shapes requiring resistance to molten slag and molten glass, ceramic pressure casting
tubes etc.
 Nebulox:Nebulox ultra light porous insulation refractories offers very low
thermal conductivity for high temperature applications up to 1700°C. Produced from
pure raw materials through a patented technology, Nebulox products are free from
fibre and hence safe for health and environment. The unique porous structure offers
excellent thermal shock resistance over a wide temperature range and can be easily
machined to suit the specific applications.
3.2.1.3Micro powders
 Brown fused Alumina Micro Grit: Brown Fused Alumina Micro Grits are
produced by the grinding & classification of selected Macro grain feed stock in an
advanced milling and classifying facility. This ensures an iron free product of
narrow particle size distribution with a high repeatability.
3.2.2 Quality policy of CUMI
Carborundum Universal Madras Indian provides quality products and services to
focus on total customer satisfaction. It’s achieved through total employee
involvement, supported by proper systems and processes.
3.2.3 Awards And ISO Certification
CUMI, Kalamassery, achieved the prestigious commendation award for energy
conservation from the government of Kerala for the year 1997-1998, in the major
industries category.

3.3 ORGANISATIONAL STRUCTURE
Managing Director
Vice President EMD
GM GM AGM Sr. Mgr. AGM

Marketing Technical Accounts HR Mfg.
AGM Sr. Mgr. Manager Deputy

Sr.
Marketing Technical Accounts Manager
Manager
Managing Junior
Junior Junior Manager
Marketing Officer
Officer Supervisor
Deputy Staff Staff Staff Deputy

Manager Manager
Junior Executive
Officer s
Staff Junior
Officer
Staff and
Operative
Figure 3.1: Organization Structure of

CUMI

3.4 DEPARTMENTAISATION
 Human Resource Department
 Production Department
 Commercial Department
 Shipping Department
 Finance Department
 Quality Control Department
 Research and development Department
 Systems Department
 Marketing Department
3.4.1 Production Department
The Production department is concerned with the manufacturer of products. This will
include the maintenance of the production line and other necessary repairs. The
works department may also have responsibility for quality control and inspection.
Production department is headed by GM and supported by asst. GM (production).
There are three managers for three plants . These managers have equal role in the
three sub department of production department. The three sub departments are
furnace, quality control and gaining process and shipping. In furnace sub department
there is supervisor junior supervisors and operatives. In graining process and
shipping process there are also supervisor’s junior supervisors and operatives.

Figure showing production department hierarchy:

Sr.Vice President
TheSr. Manager
division has
AGM Mfg
Supervisor
Junior. Supervisor
Operatives
Figure 3.2: Structure Of Production Department
The Production department is concerned with the manufacturer of products. This will
include the maintenance of the production line and other necessary repairs. The
works department may also have responsibility for quality control and inspection. It
helps to improve operating profit especially in brown fused alumina. Increased power
generation from the hydroelectric plant has augmented the growth in operating profit
by lower power cost. New face setup for production of value added by products and
the initial response is encouraging. facilities were also setup for semi friable grains
and the market for these products has been established. The division has witnessing
improvement in productivity which helped to improve operating profit especially in
brown fused alumina. Increased power generation from the hydroelectric plant has
augmented the growth in operating profit by lower power cost.

3.4.1.1 Production Process
Raw Material Storage
Raw Material
Handling
Weighing
Raw Material Mixing
Furnacing Shell cooling
Pig cooling
Breaking
Sledging Scrap
Recycling
Crushing
Magnetic Separation Weighting Crude

Forwarding
Figure 3.3: Production Process

3.4.2 Commercial Department
The main function of this department is procuring the raw materials and other
required materials for the company. Commercial department invites quotation from
various suppliers and make a vendors list on the basis of some criteria basically based
on their previous experiences, quality of the product, delivery speed and price which
is called vendor rating.
Managing Director- CUMI
EVP EMD
Head- Accounts & commercial
Senior Manager- Commercial
JO-Commercial
Figure.3.4 Commercial Department

Hierarchy

The department issues materials as per the order given by the concerned departments
through Material Requisition (MR). If the required material is out of stock,
commercial department head invites quotation is chosen and the purchase order is
placed. On the arrival of the material, it is checked and issued to the concerned
3.4.2.1 Purchase Procedure
Purchase Request
Authorization
Quotation
Take Least Quotation
Purchase Order
Material Collection
Payment of Material
Figure3.5: Purchase Procedures

 Purchase request: If the departments require any materials, they will place a
material requisition to the commercial department. If the required material is not in
the store, the store manager places a purchases requisition(PR) to the plant manager.
 Authorization: Purchase requisition is checked by the plant manager and
approved for the quotation.
 Quotation: Commercial department invites the quotations from the vendors.
 Takes The Least Quotation:Commercial department selects the least
quotations.
 Purchase Order: Commercial department makes the least quotations with the
consideration of their previous experience, quality of the product and delivery speed
then placing a purchase order to the appropriate vendor.
 Material Collection: Where the materials are reached to the company, the store
manager inspects the matcri:ds and then issues to the concerned department.
 Payment For The Material: Payments are done by the way of cash on the spot
of the delivery.
3.4.2.2 Store
Main raw material is alumina Calcined supplied mainly by INDICO, NALCO. The
company is considering purchase from other source also. Every item is attached with
a ·Bin Card', which has UNIX CODE NUMBER consisting of 14 digits. The card has
description of the item, date of supply, balance, signature, remark & stock number.
CUMI has a very good store. In this store, they divide the entire inventorv into 3
classes for controlling, the inventory.

 A Class items: This class items are very closely related to the production
process. They always keep tight control on this class items because if it not
supplied in time it may affect the production.
 B Class Items: Although this class items arc related to the production. It has
not n1uch importance to the production. They keep moderate control on this
class items.
 C Class items: This class items are not directly related to the production. They
have only less control over these items. This type of inventory control helps to
the easily handling of the material.
In the store.they also follow JIT inventory systems. It means that required material arc
purchased on after getting the material requisition. so that it need not kept for a longer
period hence can reduce wastage. As the vendors arc very close to the company.they
can purchase materials according to the requirements. Therefore, there is no need for
bulk purchase.
3.4.3 Maintenance Department
3.4.3.1 Structure of Maintenance Department
Sr. Vice President
AGM (Production)
Manager (Maintenance)
Maintenance Operatives (Mechanical) Maintenance Operatives (Electrical)
Figure3.6 structure of Maintenance Department

Main functions of Maintenance department
 Repairing works
 Cleaning works
 Maintenance according to needs
The main responsibilities of this department are to ensure that no interruption occurs
in the production process. For this equipment should be maintained properly. For this
purpose .their function can be classified into two:
3.4.3.2 Preventive Maintenance
“Preventive is better than cure'· CUMI believes in this proverb. Every Sunday
maintenance operators ,viii inspect and does the maintenance work in the whole plant.
3.4.3.3 Breakdown Maintenance
If any, breakdown, occurs. the concerned department, will send a complaint to the
maintenance department with the help of personal computer (ERP System RAMCO
No: 2). Then the maintenance department head issues a work order pending on man
power available. They will try to rectify the root cause of breakdown and bring the
machine to the production process.

3.4.4 Quality Control Department
3.4.4.1 Structure Of Quality Control Department
Sr. Vice President
GM (Tech)
Manager (Quality
assurance)
Quality Inspector (Chemical

& Physical)
Trainees
Figure.3.7 : Structure of Quality Control Department
CUMI is renowned for its quality. not only in electro minerals but also in all their
products such as abrasives and ceramics. It was proved during the Chinese invasion or
the market some years back when the Indian economy was opened to the outside
world. The Chinese came out with low quality and cheap product did not survive long
hut CUMI withstood all the problems and \Vent on to become world's best seller.
3.4.4.2 Quality policy of CUMI
 Customer expectation.

 Total commitment of implementing of an effective quality management
system.
 Total employee involvement.
 Building mutually beneficial relationship with supplies.
 Enhancing employee competence through education and training.
 Continual technological development to fulfill changing needs of customer.
Responsibility of quality department is checking the quality of raw material because;
the quality of the final product is primarily depending on the raw material.
Quality is checked during,
 Raw material is taken for the production.
 Mixing the raw materials.
 Furnacing.
 Pig yard.
 Crushing.
 Before packing the final product.
There are two laboratories in CUMI for checking the quality, they are:
 Chemical lab
 Physical lab
In the chemical lab they check the chemical properties such as gravity, percentage of
weight of each metal in the product fusion level, and combination of the product etc.
In physical lab, they,check the free iron. HM (hand magnet) bulk density and size
analysis. Final checking of the product is done in the bin. Quality analyzer checks the
each bin and put a bin card. If the bin card color is green, that bin contains the product
is accepted and that bin goes to the packing section. If the bin card color is red, that

bin contains the product is treated as rejected. If the bin card is yellow, they reserve
that bin contains the product for recycling. They follow Total Quality Management
(TQM) system for sustaining and improving the quality of the products. The TQM
values followed by the company are:
 Excellence in all aspects of business.
 Customer first attitude.
 Total involvement.
 Emphasis on leadership.
 Internal customer support.
 Continuous improvement.
 Improving quality of life of the employees and society.
 On time delivery.
3.4.4.3 Quality audit
A systematic · and independent examination to determine whether quality activities
and related result comply with planned arrangements and whether these arrangements
are implemented effectively and are suitable to achieve objectives. The company has
been following KAIZEN Japanese scheme for continuous improvement in all
activities of the business. This scheme means that the quality of theproducts or
services is determined by its uses, efficiency, and for the money, comparison with
other products and some other criteria etc. These parameters are varying depending
upon the situations. So there are no proper measures to determine the quality of
products and services.
3.4.4.4 ISO Certification
CUMI has got two ISO certifications. ISO 9001-2008 and ISO 14001- 2004,

ISO 9001-2008 certificate for the quality assurance in design, development,
production installation and servicing. And l SO 14001- 2008 is getting for the
environment policy. Because the company which do not cause any damage to the
environment.
3.4.5 Research and Development Department
Business head
Senior General
Manager
Senior Manager
Executive
Junior Officer
Figure3.8: Structure of R & D Department
CUMI has a good R&D department, which is engaged in the development of new
products and the existing products. R&D is done on the basis of the market demand,
research and customer specification. Moreover, the company policy regarding R&D is
that 6% of its scales should be from new products.
The R&D has a full-fledged pilot plant with facilities of fusion, crushing and grading.
This section continuously tries to improve the product quality, its application,
production process, etc. This department always interacts with various universities in

India and abroad for products development. This department also gives the
opportunities to different institutions to do project works.
The R&D wing comes out with constant innovations and up gradations of products,
which makes the company a world leader in grinding technology. Its core competence
provides total grinding solution which enables maximum grinding efficiencies and
reduced cost for customers.
3.4.6 Finance Department
Managing Director -
CUMI
SBU head
Head (Accounts)
Accounts Lead
Unit Accountants Tax compliance
Figure3.9: Structure of Finance Department

Duties of the accounts assistants include cash transactions, accounts payable, tax
remittance, payments and vouchers, etc. Duties of the supervisors are maintaining the
trial balance, capital expenditure and debt management, etc. A responsibility of the
accounts manager is making monthly reports, auditing and fund management etc.
SBU head (Accounts) has the full responsibilities of accounts department.
The accounts department at Edappally plant does book keeping, accounts and
reporting functions. It undertakes the work of play sheet preparation of staff and
workers, payment of bills, vouchers and other financial transactions. They also
prepare financial reports of the company. All major financial decisions are taken at
corporate office (Chennai). This department also keeps income and expenditure
accounts, which include the sale and disposal visible cost, contribution, fixed
overhead, operating and non- operating income etc. The· corporate office also
provides funds for working capital requirements. Departmental budgeting is also
function of accounts department.
Major functions of accounts department
 Keeping depreciation account
 Preparing income and expenditure account
 Preparation of budget for three years
 Departmental budgeting
 Prepare management reports
 coordinating the auditing functions
3.4.6.1 Capital structure
CUMI·s capital structure is consist of equity share capital. preference share capital
reserves and surplus, long term loans, deferred tax liability.

3.4.6.2 Source of funds
CUMI's main source of fund is from corporate office (Chennai). Issuing of share and
short term loans from the company's consortium of banks like SBI is other source of
fund.
3.4.6.3 Share Holding Pattern:-
Table .3.1:Shareholding Pattern
Holders Name No of Shares % of Share Holding
Promoters 79170620 42.23%
Foreign Institutions 39011285 20.81%
General Public 38940831 20. 77%
N Banks Mutual Funds 13019375 6.94%
Financial Institutions 9271930 4.95%
Other Companies 7101186 3.79%
Foreign NRI 914385 0.49%
Others 38732 0.02%
3.4.6.3 Accounting policies
The company policy has a special accounting policy. which is the basis of the
financial statement. It is accordance with the accounting standards issued by the
institute of Chartered accountants of India.

3.4.7 HR Department
GM
HR manager
Deputy HR manager
HR Executive
Staff
Figure3.10.Structure of Human Resource
HR department always has been one of the focus points in business strategy. HR
strategy is carefully linked to the vision, mission and overall business strategy of the
company. In CUMI, the HR department is responsible for putting together the human
resource plan. It is responsible for recruitment and selection of employees, transfers.
payroll processing, canteen and legal proceeding.
I-IR planning is clone with the 3+ 1 + 3 business plan (3-past three year’s
performance, I -current year performance. 3-forecast of future three years
performance). The company evaluates the HR requirements estimated by a series of
analysis. The basic objective of this department is effective utilization of IIR.
desirable working relationship among all employees and rnaximum individual
development. The most appreciating feature of CUMI is its profound flexibility in
communication between subordinate and superior. This contributes to a friendlier
corporative environment.

3.4.7.1 HR strategy
CUMI's business strategy is evolved from Domestic & Global market trends,
Economic Growth, Competitor Analysis and Customer Industries' Growth Plan. HR
strategy is linked lo business strategy and facilitates the organization to achieve the
objective by building people capabilities.
CUMI's concern for people has been driving force for the growth of the organization
over the last 5 decades. The sustained growth over the past several years attributed to
the knowledge, skiII of the people and technology. HR has always been one of the
focus points in the business strategy. The IJR strategy is carefully linked to the vision,
mission and overall business strategy of the company.
3.4.7.2 HR values
 Concern for people
 Integrity
 Customer Orientation
 Team work
 Continuous Improvement
 Execution Excellence
3.4.7.3 HR Principles
Whether workmen or management staff, employees are employees. They are not
different blocs. Buttwo faces of the same coin.
Unions are treated with respect and are made partners in the progress.

Harmon and peace cannot be at the cost of dilution of organization ethos. Fairness and
firmness will govern all employee relations.
 Communication and dialogue would be the essence of managing relationships.
 A proactive approach and a state of mental and physical preparedness would
help in managing unpleasant surprises.
3.4.7.4 HR functions
 Recruitment and Selection
 Preparing appointment letters
 Arranging training and development programs for employees
 Keeping all statutory obligations
 Collecting data from all other factories to enable them prepare details
for long term negotiation
 Informing the concerned department about the change of factory rules
and other related acts
 Maintaining strict discipline
 Making daily attendance of the employees, pay the over time, this dept.
also does all correspondence relating to the ES! and PF
 Running canteen
In CUMI recruitment and selection is based on integrity, competency and the ability
to work in team. Company takes value fit individuals with group into consideration
arc placed under one year probation in which the superior access his/her abilities
.team work and performance in the pressure situations. But successful completion of
probation does not imply on assurance for permanent employment. Based on

experience and qualification selection of employees is done at Head of ice Chennai.
The management gets peoples through campus recruitment and personal reference.
3.4.7.5 Selection Procedure
Aptitude Test
Group Discussion
Personal Interview
Medical Checkups
Final Interview
Figure3.11: Selection Procedure
Line managers are expected to prepare job description and job specification in
respect of job to be filled, HR department is expected to oversee and ensure proper
compliance with statutory and organizational requirement and policies. The
recruitment process is three tier method- direct, indirect and third party. The source of
recruitment included both internal and external. The internal source includes more
preferred by the company. The management chooses external sources like campus
recruitment, personal reference etc.
Induction: The workers who are recruited and. selected are given an individual
program, introducing them to the plant, their work and to the concerned department.
For managerial personal, the induction method used is apprenticeship-training

method, immediate supervisor trains employees. For workers shop floor training is
given. The three levels of induction at CUMI are:
 Corporate Induction:- mainly for corporate personnel ,given from the head
office ,Chennai.
 Induction Across Unit:- given for the management staff across the unit in
order to know the various dynamics exists in groups.
 Department Functional Unit Induction:- That is given to both management and
non-management staff ,by each department managers or supervisors.
Performance Appraisal :Methods used for performance appraisal are supervisory
rating and self-rating. Management staffs are appraised under a new method called
score card, where employees are rated concerning their work. The performance
appraisal for managers is called policy development.
Training and Development :The need for training is determined by identifying the gap
between present performance of an employee and the desired performance. In CUMI
it is done on the basis of skill matrix.
Skill Matrix:The objective of skill matrix is to have a scientific analysis of skill
level.The aim is that technology changes fast and now technology demand new skill.
Therefore , this helps the employees to progress his career plan. Skill matrix measures
certain aspects of an individual/personal characteristic ,discipline. Skill work
performance and participation in management. The skill matrix is to find out the
attitude of an individual towards work and skill of the person to perform. It is to
identify scientifically the skill level existing in the organization and to develop the
skill levels patterns to meet the business requirements. In skill matrix ,the department

head and the employee are rated based on certain parameters. In rating the
performance , it is classified into three- good performance, average performance, and
the poor performance.
3.4.7.6 Training for Management Staff
 Advanced TQM orientation
 Negotiation skills
 Outbound training
 SHE programs
3.4.7.7 Training for Non-Management Staffs:
 Skill improvement training
 Multi skills
 Process orientation
 Energy management conversation
3.4.7.8 Recruitment Policy
CUMI will recruit based on integrity , competency , and the ability to work in team. It
would also endeavor to select individuals with leadership potential, customer
orientation and qualify focus. Above all, CUMI also takes the value-fit of the
individual with the group into consideration.

3.4.8 Marketing Department
Sr. Vice President
AVP(Associate vice president)
AGM Marketing
Manager
Deputy Manager
Junior Officer
Staff
Figure3.12: Structure of Marketing Department

CUMI has an excellent group of marketing executives spread all over the country to
facilitate large sales and customer service. The company has a traditional marketing
wing, which look into sales and services operations. The team also conducts market
analysis, which helps to the management make correct and important decisions. It also
helps making modifications of existing products and introducing new products.
The main responsibilities of this department are the following:
 Retaining the regular customers
 Identifying new needs arising in the market
 Market expansions
 Payment follow up

As a part of marketing research , the sales executives study the requirements of their
customer, both new and existing customers. They collect information from the
customer and prospective customer directly. The first 15 days of every month they do
the above mentioned activities and the rest of the days do the payment of the follow
up. There is a value target and based on this production is carried out.
These are the main section of the market departments:
 Sales department is responsible for the sales and distribution of the products to
the different regions.
 Research department is responsible for market research and testing new
products to make sure that they are suitable to be sold.
 Promotion department decides on the type of promotion method for the
products, arranges advertisements and the advertising media used .
 Distribution department transports the products to the market .
3.4.8.1 Product Mix
 Ware house equipment
 Material handling equipment
 Power-tools
 Industrial ceramics
 Electro minerals
 Abrasives
 Metal working fluids

3.4.8.2 Main Customers
The main customer industries of the CUMI are:
 Automobile industry
 General metal cutting industry
 Polishing of the metal surfaces
 Marine paints etc.
The main customer companies are:-
 Vishwavishal
 Mechans in UK
 Milthon
 Indoflogates
 Tata refractories
3.4.8.3 Branding
CUMI made its brand well known in the industry through continuos hard work and
determination. This was possible because of the following reasons:-
 Consistent high quality and reliability
 Fair pricing practices transparency
 Relationship management

3.4.8.4 Distribution
Several steps were initiated visibility and proximately to the customer and also to
enhance capacity for delivering products on time to customers. The company has
embarked on a direct marketing programmed for selected products to make them
more cost effective to customers. Major initiatives in the direction are:
 Setting up experience center under the band ‘CUMI world’
 A greater emphasis on branding by standardizing CUMI outlets across the
country
 Newer delivery mechanism such as automatic vending machines
 Expanding the concept of ‘CUMI suraksha’ the unique user insurance scheme
to more centers , also setting the first claim under the same.
In addition , the company further strengthened its distribution setup and also
consolidated its logistic arrangements. Information technology tools are being
deployed to facilitate better understanding of dealer’s performance and inventory.
3.4.8.5Competitors
 Grindwell Norton ltd.
 Orient abrasives
 Wendt ltd
3.4.8.6 Competitors in EMD
There are only few companies dealing in the field of electrominerals. Therefore there
are only few competitors. The major competitors in the domestic market are Saint

Gobain(grindwell Norton ltd) and Orient Abrasives . The major global competitors
are Washington mills pvt.ltd., Saint Gobain and Tray Bucker etc.
3.4.8.7 Pricing Strategy
In the domestic market, the company sells the product at a premium price. However in
the export market, the company is facing great competition from the Chinese products
so,in this market the company sells the product at economic price.

CHAPTER-4
DATA ANALYSIS AND INTERPRETATION

CHAPTER-4
DATA ANALYSIS AND INTERPRETATION
4.1 SWOT ANALYSIS
4.1.1 Strength
 Company owns mines in Gujarat and also a hydroelectric project in Maniyar.
This reduces the cost of processing raw material and production.
 The company treats the customer with respect and concern.
 CUMI is having a better organizational climate and manage the environment
effectively. The company grows in an accelerated manner with new products and
services.
 As it has been found that one of the major problem facing new firms in power
and its cost to maintain. CUMI was able to counter the problem to an extent by
establishing a hydroelectric plant in Maniyar.
 The company has strong departments. CUMI has a policy that 6% of total sales
every year should be from new products. R & D enables the company to have an
edge over competition in the new product development.
 EMD has a very good working environment. It has got professionally managed
personnel department.
 The company has got professionally managed sales team with strong back up of
reputed dealers.
 ISO 9001 certification also help in obtaining some orders as well as maintaining
the standard of the company.
 CUMI has the ability to change according to the circumstances. When the cost
of production was rising, it decided to cut short the cost by reducing the labor.
 CUMI has the high capital investment. It acts as an entry barrier for new firms
to enter to this field.
 CUMI has been in the field for more than half century . Hence it has deep
knowledge about the market.
 The company has triplicate collaboration with companies in USA & UK. Hence
they can enjoy benefits such as access latest technology, management
techniques etc.
 The company has to make strict rule regarding wearing of personnel protective
equipment’s like safety shoes, helmets, goggles, gloves, jackets etc.
4.1.2 Weakness
 The salinity of water has to be improved.
 The roads within the company are to be developed so that the men and material
can be moved easily.
 Promotion is based on the seniority not on performance.
 As the significant financial decisions are taken at head office at Chennai , the
speed and efficiency of the branch is not satisfactory.
 No permanent employees have been recruited for the last few years.

 The plant entirely depends on KSEB for power supply therefore power failure
can affect the production.
4.1.3 Opportunities
 The company can introduce more of its product in the market.
 The company can produce new and improved products with less labor and
advanced technology.
 More mines have to be found out. Globalization and liberalization can make its
product globally acceptable.
 The company can employ the best brains from top business and technical
institutions for better working and management.
 Foreign acquisitions and merger make it possible to oversee the market.
4.1.4 Threats
 Chinese product threatens the company since it is cheaper.
 CUMI faces stiff competition from the world merger and local players into the
market.
 Power and other equipment’s are expensive.
 The demand for abrasives has fallen down because of industrial and economic
shutdown.
 Rise in the cost of essentials such as power, raw-materials, freight charges and
unavailability of raw-materials.

CHAPTER-5
FINDINGS RECOMMENDATIONS AND CONCLUSION

CHAPTER -5
FINDINGS, RECOMMENDATIONS AND CONCLUSION
5.1 FINDINGS
CUMI’s main source of fund is from the corporate office (Chennai). Issuing of bank
like SBI & HDFC banks are other source of funds.
 CUMI take suggestions from the employees mainly relating to the cost of
reduction. The better suggestions will be considered by the management and
rewarded properly.
 The performance appraisal method used in CUMI is supervisory rating and self-
rating.
 CUMI has been following the KAIZEN Japanese scheme for continuous
improvement in all activities of the business. This scheme means that the quality
of the product and service is determined by its uses , efficiency ,and value for the
money and comparison with other products.
 CUMI uses 5’s to improve the quality it is not only to create a clean ,healthy, and
good working place but also habit for complying with workplace rules and
procedures.
 CUMI can take safety measures in order to avoid accident to the hazardous job
situation.
 CUMI uses skill matrix to scientifically analyze the skill level of employees.
 CUMI gives pensions to their retired employees ; the amount will be based on
the service of employees.
 The maintenance of machines and other parts can be done every Sunday and
CUMI also adopts preventive maintenance to avoid production delays.
 Each department of CUMI is interconnected with the help of ERP systems. The
company uses ERP for market information and better handling of raw materials.
 The firm is really committed to its environment. The waste management facility
is in such a way that, it does no harm to the natural environment.
 From the financial analysis of the firm it has been found out that the firm is
making good profits over the years. This shows the efficiency in managing the
funds available to the firm.
 CUMI has got ISO 9001-2000 series certification for quality assurance in design
, development , production , installment and service.
 As it has been found that one of the major problem facing new firms is power
and cost maintain .CUMI was able to counter that problem to an extend by
establishing a hydroelectric plant in Maniyar.
5.2 RECOMMENDATIONS
CUMI can concentrate on promotional activities of both national & international
markets to capture the potential customers. It helps to build reputation and fame to the
company.

 CUMI can come up with new ways to reduce the production cost. Keeping in
mind to make the product economical enough to compare in the market.
 CUMI should support and engage in activities that aim to improve the
organizations contribution to the society.
 The roads within the company are to be developed so that men and material can
be moved easily.
 CUMI can give promotion to employees not only on the basis of experience but
also considering the performances of employees.
 By giving more importance to the factor like skill , motivation and creativity and
morale in future. This will also lead to cost effectiveness and efficiency at its
best.
 For the purchase of raw materials the company must consistently search for areas
which can provide better quality raw materials and should strive to the make
purchase order to that region . It should been seen that the cost should not be
higher.
5.3 CONCLUSION
The privileged opportunity of one month organizational study proved out the nature of
business firm and it had enabled me to have an exposure to the majority of the topics
related to company’s, functioning, structure, policies, promotional, activities,
working. Environment, organizational culture etc. This organizational study helped
me to know about the company, the various departments; the functioning of various

departments etc. It also helped me to know the practical applications of the theories in
the business studies. The organizational study helped to gain knowledge regarding the
functional as well as the managerial aspect of various departments in CUMI. The
study helped me to gain knowledge about how an organization functions.

EXECUTIVE SUMMARY
An organization is a social arrangement The organizational study undergone
during the period 24thMay 2019 to 22nd June 2019. It was for partial fulfilment of
the award of degree of Master of Business Administration of Kannur University.
The study abridges the gap between theoretical knowledge and practical working
condition. The organizational study was conducted at CARBORANDUM
UNIVERSAL LTD (CUMI) ,KALAMASSERY,ERNAKULAM .
The methodology followed in the study was observation, personal interview,
discussion with management staff and employees of various departments of the
company within the administrative offices as well as the production plant. Also the
data were collected through review of company’s internal records, annual reports,
website..etc. which pursues collective goals, controls its own performance and has
a boundary separating it from its own environment. Organization is the association
formed by a group of people who see that there are benefits available from
working together towards some common goals
The role played by each person on the organization is high. The success of this
organization depends on the strong organization structure which enables to
withstand the competition. CUMI has always been careful in upholding its
objectives in consumer satisfaction through farmer prosperity. This organization
study in CUMI has given us a clear idea about how the organization functions in
this efficient yet effective manner

ANNEXURES
ANNEXURES
INTERVIEW SCHEDULE
Production Department
Interviewee: Mr.Rakesh(production manager)
Interviewer: jerin john
● What is the structure of the production department?
● What are the main functions take place in production process?
● What are the methods of packing?
● How the quality assurance maintained?
● What are the main steps involved in the production of capsule and tablet?
Human Resource Department
Interviewee: Nibu John (manager HR)
Interviewer: Jerin John
● What is the structure of the human resource department?
● How the employee performance are evaluated?
● What all welfare benefits do you provide for your employees?
● What are the recruiting & training process done here?
● How employees are motivated in the organization?
● How employees conflicts are managed?
Marketing Department
Interviewee: Mr. Joy jacob (Marketing manager)
● What are the challenges faced by marketing manager?
● What are the promotional strategies adopted by the company?

● Who are the main competitors?
● Can you explain about your distribution channel?
● What is the structure of the marketing department?
● How to introduce a new product to the market?
Finance Department
Interviewee: Mr. ramesh k(finance manager)
● What are the main objectives of the finance department?
● What are the duties and responsibilities of a finance manager in the company?
● How transactions are done in your company

BIBLIOGRAPHY
Internet
https://www.cumi-murugappa.com/emd
http://www.ngeninvest.com/abrasives
https://www.cumi-murugappa.com
Annual reports
Books
 Stephen P Robinsons- Organizational Behaviour
 Philip Kotler, Kevin Keller- Marketing Management

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A REPORT ON AN

SUBMITTED TO KANNUR UNIVERSITY

MASTER OF BUSINESS ADMINSTRATION

I, Jerin John, third semester MBA student of Vimal Jyothi Institute of

titled “ORGANIZATIONAL STUDY AT CARBORUNDUM UNIVERSAL

LTD ,KALAMASSERY,ERNAKULAM ” has been prepared by me under the

guidance and supervision of Mr Prasad Thomas, Assistant Professor, VJIM and

submitted to Kannur University, in partial fulfillment of the requirement for the

award of the degree of Master of Business Administration.

institute or University for the award of any Degree/Diploma, Fellowship or other

Place: Chemperi Jerin John

Date: 30/07/2019 RegNo.:B8GMBA3010

and knowledge in bringing out this organization report successfully.

I want to express my sincere thanks to my project guide Asst.Prof.Prasad

I extend my gratitude to the management and staff of CARBORUNDUM

UNIVERSAL LTD. especially to Mr.NIBU JOHN (HR MANAGER) my guide in

I extend my sincere thanks to the HR Dept.and others who helped and

guided me throughout my organization study.

encouraged me throughout the preparation of this organization study and all my

friends who have helped me.

CHAPTER NO. TITLE PAGE NO.

1.1 Introduction to the study 1

1 1.3 Objectives of the study 2

FINDINGS, RECOMMENDATIONS & 48 - 51

TABLE NO. TITLE PAGE NO.

3.1 Share Holding pattern 33

FIGURE NO. TITLE PAGE NO.

3.2 Structure of Production Department 20

3.3 Production Process 21

3.4 Commercial Department Hierarchy 22

3.5 Purchase Procedure 23

3.6 Structure of Maintenance Department 25

3.7 Structure of Quality Control Department 27

3.8 Structure of R & D Department 30

3.9 Structure of Finance Department 31

3.10 Structure of HR Department 34

3.11 Selection Procedure 37

3.12 Structure of Marketing Department 40

benefits available from working together towards some common goals.

An organization study is the study of individual and group dynamics in an

organizational setting, as well as the organization itself. . It refers to the study

organization as a whole and getting adequate knowledge of various departments in the

organization. As part of the MBA course curriculum, it is advised to do an

This organization study was conducted at Carborundum Universal ltd.(CUMI) which

is an important segment of Murugappa group . CUMI offers more than 20000

varieties of products. CUMI’s product offering comprises of coated abrasives, bonded

conducted in the electro minerals division (EMD) of CUMI, which is situated in

The Electro Minerals Division of CUMI (CUMI Minerals) provides tailor-made

solutions in the world of Fused & Sintered Minerals.

1.2 SIGNIFICANCE OF THE STUDY

departments in the organization. The study focuses on understanding the organization,

theory with practice.

the actual organizational scenario.

1.3 OBJECTIVES OF THE STUDY

 To study the organization structure and procedure

1.4 METHODOLOGY OF THE STUDY

Methodology is the systematic, theoretical analysis of the methods applied to a field

main source of data is primary and secondary data.