INTERNSHIP PROJECT REPORT

ORGANISATION STUDY AT

MURDESHWAR CERAMIC LTD,HUBLI

THE PROJECT IS SUMITTED ON THE PARTIAL FULFILLMENT OF

MBA UNDER GARDEN CITY COLLEGE , BANGLORE UNIVERSITY

SUBMITTED BY
KRITTIKA.M.CHITAGUPPI
REG NO:08MBA1766

UNDER THE GUIDANCE OF

MS.SARITA.KRISHNAN
DEPARTMENT OFMBA,
GARDENCITY COLLEGE BANGLORE
BANGLORE UNIVERSITY

GCC
Emphasis is on life

GARDENCITY COLLEGE,
BANGLORE-49
(AFFILIATED TO BANGLORE UNIVERSITY)
2008-2009
 DECLARATION:

I, KRITTIKA. M. CHITAGUPPI student of Garden city college, Banglore

university MBA course 2008-2009 do solemnly declare from the core of my
heart that yhis interim report and organization study at ICICI bank, is
original and not copied from anywhere .

This interim report is needed for the partial fulfillment of my MBA course
and will no way to be used for any external purpose or to be submitted to
any organization except for Garden City college.

Place-Banglore Krittika.M.C
Date - Reg.No 08MBA
 Index:
1] EXECUTIVE SUMMARY

a) Objectives and scope of study

b) Methodolgy of data collection
2] INDUSTRY PROFILE

a) Introduction to Ceramic tiles industry

b) History of ceramic tiles in India
c) Importance of ceramic tiles in India
d) Overall picture of the industry
e) Current status of the industry

3] OWNERS PROFILE
Mr.R.N.Shetty profile

4]Company profile

Milestones in the history of Murdeshwar Ceramics Ltd

5] Organisation hierarchy

Vision
Mission
Quality policy
Product profile
6]Department profile

Production deparment
Finance deparment
Store deparment
Marketing department
Human resource department
R&D Department
7]SWOT Analysis

8]Achievements and goals

9]Findings

10]Suggestions and recommendations

11]Conclusion
BIBLIOGRAPHY
 EXECUTIVE SUMMARY
.

Murdeshwar Ceramics Ltd is a joint sector undertaking

promoted by Karnataka state industrial and investment development
(KSIIDC)and Mr.R.N.Shetty an industrialist and builder of repute in
Karnataka..

Today,MCL is having a god position in production of tiles. Almost all its

machinery has be imported from SACMI,IMOLA,with a technical work.

The company has recently got ISO 9001:2000 certificate fro TUC-CERT-
GERMANY LTD.

Presently the R.N.SHETTY group holds %equity state, % is held in

financial instituition. KSIIDC holds around % state and public share
holders hold the balance %.
 MURUDESHWAR CERAMICS LTD

Objectives of the study organizational behaviour

 To understand the organizational structure.

 To understand the process of manufacturing ceramic tiles.

 To know the distributing activities.

 To know the policies relating to employees and workers.

 To understand the suitability of the subject studied in MBA for the

industrial unit.

 To fulfill the partial requirement for the award of MBA.

 To understand the suitability of the subject studied in MBA for the

industrial unit.

 To fulfill the partial requirement for the award of MBA.

 SCOPE

 To study various aspects of various departments

 To study the overall structure of Murdeshwar ceramic ltd.

METHODOLOGY OF DATA
COLLECTION

1] Primary data :
It is collected through direct interaction with assistance general
manager (AGM) and personnel manager ,company employees also.

This includes the organization chart of various departments etc.

2] Secondary data:

This data is collected from company annual report.

INDUSTRY PROFILE
 INTRODUCTION TO CERAMIC TILES INDUSTRY:

Ages have passed, it has been tendency of every human beings to

make a beautiful dwelling for himself that suits his capacity needs
in home ,the flooring plays a vital role .
It has been started in early days with use of natural stones
available in abundance became prominent.

The natural stones were made to undergo a simple technique

before they were actually used . The processed stones were
broadly termed as “Tiles” . In the evolutionary days the tiles
industry could be found in the developed nations, but as demand
increased it began catching in developing countries.
Basically due to favorable factors like the availability of raw
materials,simplicity of techniques etc.

The brainy human began to hunt for better technique in the

processing of tiles and provide a variety for cutomers to choose.
This hunt related in the evolution of ceramic tiles.
The glazed tiles were the first type of ceramic tiles to be
introduced which have seen tremendous improvement in days.

The word “ceramic” originates from the Greek word “Karamic”

which means an art of potter. In India the pottery manufacture
started as early as 3000BC.
The second world war comes as boon for the ceramic industry in
India. During the war period ,certain metals for metallic utensils
were banned and hence production of ceramic products was to
meet demand of war hospitals.
When the government of India banned the import of ceramic tiles
in 1953 the production of glazed tiles began until 1985. Spartek chemical
ltd stormed the market. Two companies viz, H&R Johnson td had shared
themselves which are permanently glazed tiles . As the days passed many
new competitors entered the market with improved technologies and better
products.

At present in houses the tiles have not only been confined to the kitchen
and bathroom but they have now moved in to the balconies . Floors once
get neglected are not getting attention in its utility as industry ,flooring is
also getting increasingly appreciated.

The tiles may appear to be costlier surface material but if the cost are
spread over the full lifecycle of building. It becomes cost competitive the
ending utility of ceramic tiles comes from its mechanical strength inspite of
brightness . Chemical durability against deteriorating effects oxidants,
acids salts in all concentrations and at all temperatures hardness
,resistance to cloak in and above all the aesthetic appearance.

The ceramic tile market is classified in to instituitional segment refers to

the upcoming housing and commercial projects like shopping complex,
hospitals ,schools, apartment etc whereas the retail segment refers to the
individual customers.

 FACTORS EFFECTING THE TILES INDUSTRY:

 Location

 Distribution network

 Excise duty factor

 HISTORY OF CERAMIC TILES
Rumors have it that the first clay tiles were produced seven to eight
thousand years ago in the area now known as the Holy Land. Many sources
independently verify that the actual known history of Tiles, (and the known
usage of wall and floor tile coverings) can be traced back as far as the fourth
millennium BC (4000 BC) to Egypt.
In those days, in Egypt, tiles were used to decorate various houses. Clay
bricks were dried beneath the sun or baked, and the first glazes were blue in
color and were made from copper

During that period ceramics were also known to be found in Mesopotamia.

These ceramics bore decorations, which were white and blue striped and later
possessed more varied patterns and colors. Later on, in China too, the great
center of ceramic art, a fine, white stoneware with the earliest Chinese glaze
was produced during the Shang-Yin dynasty (1523-1028 BC).

The usage and art of making and decorating ceramic tiles had become widely
used in Persia ,Syria, Turkey and across North Africa. The Romans introduced
tile making in Western Europe as they occupied territories.

By the end of the 12th century, use and manufacture of Ceramic Tiles had
spread across Italy and Spain and into the rest of Europe. Till that time they
were mainly used to decorate the floors of Cathedrals and Churches. The skill
had eventually vanished from Europe in the 16th century following the
reformation. But the decorative wall tile art had survived in Turkey and the
Middle East and the Delft tiles art survived in Holland. A form of tile making
had also evolved among the natives of North and South America.

The tile mosaics of Spain and Portugal, the floor tiles of Renaissance Italy, the
faiences of Antwerp, the development of tile iconography in the Netherlands,
and the Ceramic tiles of Germany are all promineIn the early days, the tiles
were hand-made, each tile was hand-formed and hand-painted, thus each was
a work of art in its own right. Ceramic tile was used almost everywhere on
walls, floors, ceilings, fireplaces, in murals, and as an exterior cladding on
buildings. nt landmarks in the history of Ceramic tile.
 IMPORTANCE OF CERAMIC TILES IN INDIA

Industry Highlights:

Ceramic Tiles today have become an integral part of home improvement.

It can make a huge difference to the way your interiors and outdoors
look and express. 
The Indian tile industry, despite an overall slowdown of the economy,
continues to grow at a healthy 15% per annum.
Investments in the last 5 years have aggregated over Rs. 2000 crores and
production during 2006-07 stood at approx. 340 million sq mts.
The Indian tile industry is divided into organized and unorganized
sector.
The organized sector comprises of approximately 16 players. The
current size of the unorganized sector is about Rs 3000 crores
The unorganized sector accounts for 55% of the total industry bearing
testimony of the attractive returns from this sector. The size of the
unorganized sector is approximately Rs 3500 crores
Revenue earning industry - excise mops up over Rs. 350 crores annually
from the organized sector itself.
Indian ranks in the top 5 list of countries in terms of tile production in
the world.
With proper planning and better quality control our exports (presently
insignificant) contribution can significantly increase.
 OVERALL PICTURE OF THE INDUSTRY

Ceramic tiles as a product segment has grown to a sizeable chunk today at

340 Millions Square meters production per annum. However, the potential
seems to be great, particularly as the housing sector, retail, IT & BPO sectors
have been witnessing an unprecedented boom in recent times. The ceramic
tiles sector has been clocking a robust growth of 12-15% consistently over the
last few years. Today, India figures in the top 5 countries in the world
manufacturing ceramic tiles.

The key drivers for the ceramic tiles in India are the boom in housing sector
coupled by government policies fuelling strong growth in housing sector. The
retail boom in the Indian economy has also influenced the demand for higher
end products. Overall the bullish growth estimates in the Indian economy has
significantly influenced the growth of the Indian Ceramic tile industry.

The main product segments are the Wall tile, Floor tile, Vitrified tile and
Porcelain tile segments. The market shares are 35%, 53% and 12%
respectively for Wall, Floor & Vitrified/Porcelain tiles. The tiles are available in
a wide variety of designs, textures and surface effects. They cater to tastes as
varied from rustics to contemporary marble designs in super glossy mirror
finishes.

Both, traditional methods of manufacturing (tunnel ) and the latest single fast
firing methods are deployed in manufacturing. Some of the latest trends in
manufacturing methods can be seen in India.

The investments in the last five years are approx. Rs 2000 crores. The industry
also enjoys the unique distinction of being highly indigenous with an
abundance of raw materials, technical skills, infrastructural facilities despite
being fairly capital intensive. A total of over 5,50,000 people are employed in
the sector. Out of this, 50,000 people are directly employed and 5,00,000 are
indirectly associated. The potential is huge considering the per capita
consumption of ceramic tiles in India. Currently it is at 0.30 square meters per
person in comparison to over 2 square meters per person for like countries
like China, Brazil and Malaysia.
 CURRENT STATUS OF THE INDUSTRY

The ceramic tiles industry in India has followed similar trends internationally which
have been characterized by excess capacities and falling margins. Countries like
Malaysia, Thailand, Indonesia, Sri Lanka and Vietnam are setting up their own plants.
China has emerged as a major competitor. Producers from Spain and Italy have the
advantage of lower transportation costs while exporting to USA and Germany. In
India, the per capita consumption is as low as 0.30 square meters per person compared
to China (2 square meters per person), Europe (5 to 6 square meters per person) or
Brazil (2.5 square meters per person). Rising disposable incomes of the growing middle
class and 40 million units of housing shortage hold out a great potential.

A major change that took over the ceramic tiles industry, was the introduction of
vitrified and porcelain tiles. These new entrant product types are said to be the tiles of
the future. Internationally these tiles are already the major sellers. These category of
products account for 13% of all organized sales in this industry.

These new products and the conventional wall & floor tiles have together made the
organized industry grow to a formidable Rs. 3000 crores industry. This coupled with a
spate of expansions by many players make the industry look very promising in the
future.

The Indian Industry has developed an export market although at the lower end. In
volume it constitutes less than half a percent of the global market. (Presently India does
not figure in the list of major exporting countries). But this reality could change as
Indian exports are rising at the rate of 15% per annum. The top-end of the global
export market is presently dominated by Italy (40.8%) and Spain (26.4%).
(Source: Compiled using information from Corporate Catalyst India, ASCER and
other associations.)
Production of Ceramic tiles in India:

Source: Department of
Industrial Policy &
Promotion.

Source: Department of
Industrial Policy & Promotion.

Sanitaryware Production in Ind

MR.R.N.SHETTY PROFILE
 Founder of Murdeshwar ceramic ltd

Ram Nagappa Shetty was born on 15th august of 1928 in Murdeshwar in

North Karnataka .
He started his career as a civil contractor in Sirsi a small town in North
Karnataka district . Initially he executed many contract works like
formation of metal ling and asphalting of roads,construction of building
etc.

In 1961 he formed a partnership firm,the R.N.Shetty group of companies .

During the next year he built the major bridge on the Honnavar
Gerusoppa road . He also extends major canal works at Sunkeri and
Kadwad.

In 1966 he moved out of this district and started operating from Hubli,
A major city in North Karnataka . He also switched over to executive
irrigation projects. In 1967 he took over Naveen mechanized construction
company,pvt ltd ,which was promoted as eight well known construction
companies of Karnataka, but which was then under heavy loss.

During the next eight years he successfully did

several major irrigation works under the major irrigation projects like the
Mallaprabha, Ghattaprabha and upper Krishna project, he also nursed the
Naveen mechanized construction companies lt

Then he started the manufacture of vitrified tiles which is sold under the
name Naveen diamontile .
He also set up the RNS Motors which is one of the leading showroom of
Maruti cars.
 COMPANY PROFILE

MCL is a joint sector undertaking promoted by KSIIDC and

MR.R.N.Shetty an industrialist and builder of repute in Karnataka.
The initial project for the manufacturing of 12500 tons per annum of
ceramic tiles was set up near Hubli at an invention of 13.5 crores . The
machinery was imported from world renowned Sami, Imola,Italy.. The
project was financed by equity capital of Rs. 4.50 crores and loan Rs.8.80
crores The project was completed in a record time of 14 month and
commercial production began in may 1988.

During the first year of operations itself MCL achievede a sales turnover of
Rs.9.64 crores and notched up a net profit of Rs.42 lakhs .
MCL tiles which were marketed under the brand name “Naveen” or
“Naveen ceramic tiles”.

MCL started manufacturing tiles, plain and planned tiles in the beginning ,
later it introduced several others.
MCL was the first to introduce linen weave whispering shades of tile in
1988. Today MCL manufactures ripple series, srinagar series &tiles with
dry powder coated design. Naveen ceramic tiles are today available in 80
colures and shades

Map showing location of MCL main office in Hubli

 Sister concerns of MCL:

 Construction :
The construction wing of the R.N.Shetty group has carved a name for itself
in the industry for its architectural designs, quality and time bound
completion of projects . The group operates its constructions projects in
the name of RNS infrastructure ltd (formerly known as R.N.Shetty
&company) and Naveen mechanized construction co.pvt ltd . These
companies have made a mark in the Indian construction industry by
executing many renowned projects in architectural designs ,construction
,landscaping , period architectural styles and urban planning. The
companies have also made specialization in major civil works and have
constructed dams ,canals ,bridges and tunnels ,highways of national
importance

Dams Tunnels Bridges

Canals Roads Hydro electric projects

 Hotel Industry:
The R.N.Shetty group is also ventured in to the Hotel Industry . The
group is having number of hotels all over Karnataka under the name of
Naveen hotels .
Hotel Naveen –Hubli
 RNS residency-Murdeshwara

Naveen beach resort-Murdeshwara

Taj residency -Banglore

 Automobile Industry:
The R.N.Shetty group has entered in to the automobile sector under the
name of RNS motors .

 RNS MOTORS:
The name RNS motors is a trusted and reliable name in Karnataka region
due to its superior quality services.The company has showroom in Hubli
,Banglore, Murdeshwar and Bijapur. RNS motors is one of the leading
authorized dealers for Maruti India LTD. Maruti udyog is the largest
manufacturers of Maruti cars and vans in INDIA.

 Power Sector:
Murdeshwar Power corporation ltd incorporated in 1993 ,Murdeshwar
power corporations has made key investments in the field of R&D in the
power sector and also specialized in the implementation of the various
power projects .This includes planning, designing, geographic and
geological study and analysis. Murdeshwar power corporation has
constructed the prestigious powerhouse of 12MW cap at the Narayanpur
left bank canal. The bulb turbines have been supplied by BHEL.

 Education:
R.N.S Education institutions : The R.N.Shetty group of companies has
varied interests in education areas and has formulated education
institutions under its group chairman name and is run by the R.N.Shetty
trust . R.N.Shetty rural polytechnique (RNSRPM) instituted in the year
1987 is a premier polytechnique in north Karnataka. RNSRPM is managed
by the R.N.Shetty trust and is headed by its founder chairman R.N.Shetty.
It has also established the RNSIT a college to nourish and produce the best
engineering talent in the count
COMPANY SHOWROOMS:
Already the company is having 75 showrooms throughout India . They are
planning to have 60 showrooms in all major and minor cities and towns all
over India. Important showrooms in India are New Delhi ,Hubli
,Banglore , Mysore , Chennai , Hyderabad, Calcutta , and Ludhiyana city.

City Adress
Delhi MCL,SDA,

Ludhiyana MCL,SDA,Feroz Gandhi

Marketing Ludhiyana.

Hubli MCL,Gokul road,Hubli

Banglore MCL, Elephant rock

road,jayanagara,Banglore

Mysore MCL,Fort mohella,Mysore

Chennai MCL,Anna Salai, Chennai

Hyderabad MCL,Ameerpath,Hyderabad

Kolkata Middleton street, Kolkata

 Murudeshwar Ceramics Ltd. Educational Institutes

R N S Motors Ltd. Naveen Hotels Ltd.

RNS Motors is an ISO:9001- 2000 Certified Maruti showroom

RNS Motors Showroom-Hubli RNS Motors Showroom-Bijapur

COMPANY OVERVIEW
 Name of the industry : tiles industry

Established in the year : 29-06-1983

Founder : Ram Nagappa Shetty

Phone : 2331615
Fax : (0836)2230436

Type of the industry : large scale

Nature of the industry : manufacturing

Proprietorship : joint venture

Brand name : “Naveen”

Bonus rate : 8.33%

Head office : Hubli

Product : Ceramic tiles,vitrified tiles

No of workers : 836

No of manager : 14

Plant : 2

Showroom : 65

Shift : 3 shift 6-2/2-10/10-6

Machinery purchased : Sachmi

Award : ISO-9000 TUV,Germany

 BOARD OF DIRECTORS

Dr.R.N.Shetty – Chairman

Shri.K..P.Surendranath

Dr.S.V.Nadig

Shri.K.Sunder Naik

Dr.S.S.Hiremath

Shri.Sunil.R.Shetty

Shri.Satish.R.Shetty-M.D&CEO

Shri.Naveen.R.Shetty(joint managing director)

Vice President-legal and company secretary: Shri.P.A.Ravish

Vice President-Finance and CFO:Shri.N.M.Hegde

Auditors :

M/S M.A.Narasimhan & co

Chartered accountants
Banglore

Registered office:
Murdeshwar Bhavan
Gokul road
Hubli-580 030
Ph: (0836-2331615)
Fax: (0836-4252583)

Plant :
Krishnapur village
Hubli-580024
Ph-(0836-2206741)
Fax: (0836-2206773)

Kallabalu village and post

Via Bannerghatta
Jigani industrial area
Banglore dist-560 083
Ph: (080-27826946)
Fax: (080-27826956)

143,Illayancudy road
Devanapuram village
Thirunallur commune
Karaikal-609 607
Pondicherry state
Ph: (04368-236899/236599)
Fax: (04368-236805)
 Milestones in the History of Murdeshwar
Ceramic limited :

Introduced Somerset Series

ceramic tiles
Introduced super Glossy
Vitrified tiles

New ceramic plant at Hubli

Karaikal capacity increased by

2500 Sqm per day

New Plant at vitrified tiles of

2500 sq. mts per day
Increased vitrified capacity by
5000 Sqm Per day

Increased vitrified capacity by

3000 Sqm Per day
Diversified to Granite polished
2000 sq mts day

Vitrified tiles 2000 sq mts day

Glazed ceramic Tiles

 VISION:

 To manufacture,to import and deal in tiles of all kinds and

description and particularly glazed tiles , bricks, firebricks of all
kinds and description.
 Manufacture of ridge , refractors, refractory bricks and pottery
,earthware,terracotta and other clay products including toys,
Chinaware ,pottery and other ceramic products, cement tile other
byproducts, artificial stones and synthetic marble stones .
 To carry the business of manufacturers , importers ,exporters and
dealers in porcelain or glass insulator of all types and designs,
insulating materials ,sanitaryware,crockery and stoneware of all
kinds and descriptions made out of chemical or other substances.

MISSION:

 To be a leader in Tiles industry by Manufacturing high

quality Tiles
with Innovative designs concepts.
 To create a large satisfied customer base by delivering
durable defect free, environment friendly and properly
designed products with excellent services at a
reasonable and affordable price.
 To encourage our employees who are our first assets, by
promoting and utilizing their best knowledge and
experience.
 NAVEEN CERAMICS Recognizes the need to product
research and other modern marketing tools as vital parts
of the company progress.
 QUALITY POLICY

THE QUALITY POLICY SHALL BE,

To design,

To manufacture,

To market quality products at competitive price to the entire

satisfaction of the customer and to attain market leadership .
The quality policy was declared by the managing director in a meeting
of all employees called by him , he explained the meaning of quality
policy and intention to management in terms of organizational goal and
commitment to quality policy written in English and Kannada is
displayed at prominent places .
The deployment of quality among the staff is done through group
discussion .

PRODUCT PROFILE

MCL Manufactures three kinds of tiles they are:

1)Ceramic tiles

2)Vitrified tiles

3)Natural Granite Slabs

1)Ceramic tiles:
Ceramic tiles are broadly classified in to wall and floor types and major raw
material used in this manufacture is clay ,the floor tiles are formed by
pressing higher grades of clay after blending them with slint , feldspar, and
talk ,all the tiles are further classified during inspection in to four grades
namely A,B,B-1,C.
“A”grade tiles means which tiles are defect free and export quality, these tiles
are packed separately.
“B”grade tiles are tiles which have minimum chipping ,minimum
cracks,glaze or surface defects . Even in case of slight shade variation ,or a
pin hole on surface , the tiles are segregated as “B”grade tiles .
“B-1”grade tiles have more chipping,edge cracks and variation surface ,
defect,pin hole on surface and major print defect .
In case of defects greater than “B-1” they are classified as “C-1 grade tiles.

The advantages of ceramic tiles over mosaic , marble, and other tiles .
1)Due to other glazed finish they are impermeable ,stain proof, and stain
proof ,fire proof, with anti echo properties.
2)They are unaffected by either alkaline or acidic substances.
3)Abrasive resistance is very high .
4)In case of big buildings the beam weight is reduced .
5)They can be easily transported.
6)They are slip proof.

2)Vitrified tiles:
Vitrified tiles of Naveen diamontile come with both matte and shine
finishes.When the tile is polished it is known as a “SHINE” finish,else it is a
“MATT” finish.
The difference between ceramic and vitrified tiles is that ceramic tiles consist
of a base part and glazed part while vitrified tiles is a single whole. These
are only two kinds A&B grade .

Features of vitrified tiles are:

 Pest resistant
 Non finding
 Abrasion resistant
 Hygienic
 Water resistant
 Acid ,alkali resistant
 Extreme hardness
 Shock resistant
The recommended applications of diamontiles are in schools , college
and education centers, airport floors and other transport station floors,
shopping centers, dance floors , industries, hospitals , restaurants etc.
3)Natural granite slabs:
These are natural stones which are obtained from mines located at Ilkal,
Banglore ,Agumbe etc .
These stones are cut in required sizes and then polished . They come in
wide variety of colures depending on the colures of raw materials.
No additional colures are added at the factory .

 Blue granite textured marble tile:

The granite collection imbibes the intrinsic look and feel of the granite
stone .
Other than the natural tones it comes in a bunch of attractive eye
catching pinks, greens, blues and blacks.
This particular series is inspired by the natural granite stone and is
specifically designed to appear like one . The range is characterized by
tiny specks which gives the tiles a grainy look.

4)Other collections at Naveen ceramic tiles:

Plain and flamed collections:

Plain series
Flamed series
Plain and flamed series

Marble series single print collections :

Italian marble ,Pluto ,Lirica ,Galaxy ,

Oliva ,Eureka ,Odyssey ,Harmony

Marble series double print collection:

Sigma, Onice ,Marfil ,Wengs ,Ember

Mortile series, Granite series

Ceramics Tiles :
Plain Series Flamed Series

WHP GYP IVP MRP CBP FBR FCF

Mortile Series Granite Series

MRT-RLY BL MRT-GY MRT-IV MRT-MR MRT-PK MRT-SK BL PKGR

Oliva Series Italian Series

OLV-GY OLV-PK OLV-BR OLV-GLD OLV-CB GD ITA-MR-GY

Harmony Series Latino Series

HMY-IV GLD HMY-CB GD HMY-CB BLK HMY-WH GRN LTN GLD LTN BLK
 VITRIFIED TILES

Super special plain (60x60)

276-Venice 441-Green 231-Pink 414-Blue 123-Black 897-Ajmer Orange

Granite Series(60x60mm)

393-Grey 330-Super White 321-Green 348-White

Super Special Granite Series(60x60mm)

Regular Marble

6009-Valencia 6018-Maradia 6045-Sanremobeige 6054-Capri Esperia-6657 6684-Saloti

Pics showing Granite Finished tiles
5) Area of operation: national/regional
The MCL’s area of operation is very wide .Because it has national and
regional customers . It supplies tiles at reasonable rates to customers.

6)Ownership pattern:
The MCL was incorporated in1983 in Karnataka and it is a joint sector
undertaking promoted by KSIIDC and MR. R.N. Shetty an industrialist and a
builder of repute in Karnataka.So it is flagship company of R.N.Shetty group
of companies situated at Hubli.
Presently the R.N.Shetty group holds %equity state, % is held in financial
instituition, KSIIDC holds around % state and public shareholders hold the
balance %.

7)Bankers involved:

CANARA BANK

STATE BANK OF INDIA

THE LAXMI VILAS BANK LTD

BANK OF BARODA

AXIS BANK

8)Competitors Information:

India’s tile industry is comprised of two major sectors “organized and

unorganized” of their former accounts for 27 major producers.

Until, 1985 two companies namely H&R Johnson India Ltd had the Lions
share to themselves in the glazed wall tile sector in 1985, Spartek ceramic ltd
stormed the company with its matt and semi matt finished tiles . The Rs.400
crore ceramic tile market has seven leading players with H&R India Ltd
having a dominant presence with over 25% of the market share.
The market for tiles has never been better . The field earlier restricted to
Spartek has seen a boom, Kajaria , Johnson ,Somany Pilkington ,Bell
ceramics Madhusudhan Naveen and Peddar,Eurocon ,Nitco ,Orient ,Raju
,Redland ,Comland ,Ultra ,Bisazza and many.
A BRIEF NOTE OF SOME OF THE COMPANIES IS AS BELOW :

 Kajaria Ceramic ltd:

This company is located in Alwar district of Rajasthan .It is the largest exporter in
India . The net profit of 2005-2006 stood at RS.28.12 crores crore up to RS. 11.1 crores
from 25.49 crores for precedingfiscal. The sales of the company stood at RS.351.8
crores ,up 17% from RS.300.39 crores for the precedence fiscal third 2006.

 SPL LTD:
Formerly known as Somany Pilkington ltd ,recently their company is recording
increased sales on one hand and relatively low profitability on the other . The net profit
for 2005-2006 stood 3.1 crore as against a net loss of RS. 1.78 crores for the previous
year .
 H & R Johnson LTD :
Till 1995 H & R Johnson enjoyed monopoly along with SPL in the Ceramic industry .
Later with the entry of new players it had to lose some of its market share to its
competitors. But till today it is the largest tile manufacturer in India in terms of turnover .

 Bell Ceramics Ltd:

It has maintained high profit in market , this year with the construction of new facility and
the expansion of an existing one.

 Spartek Ceramics :
Spartek entered this market in 1985 with its matt and semi matt finished tiles being
manufactured using the single firing process which earned good profits for the company.

Market shares of Ceramic tiles:

MCL-4%
H&R Johnson-14%
Spartek-9%
Bell-11%
Kajaria-12%
Regency-9%
Orient-8%
NITCO-10%
Sonora-8%
Somany-9%
9)Infrastructural facility:

MCL provides to the employees :

A]Medical facility

b]Canteen with subsidiary rates

c]Pure drinking water facility

d]Vehicle parking stand

e]Various equipments

f]Wide manufacturing plant

10)Awards:
For MCL’s quality system it has been awarded with ISO-9002 certification by
TUV,Germany.
 DEPARTMENT PROFILE:
MCL has various department as mentioned below :

1] Production Department
2]Finance Department
3]Marketing Department
4]Human Resource Department
5]Store Department
6]R & D Department

PRODUCTION DEPARTMENT:

~For Ceramic tiles

The production of ceramic tiles comprises several critical stages that

determine the character of the final product. The amount of raw material
used vary according to the physical characteristics required by the tile.
Much skill lies in forming the raw material in to batches . The mixture
thus made is chopped in to tiles (after being dried) by press dye, extrusion
as a combination of both.

The most critical step in manufacturing unless the time ,temperature ,

atmosphere are properly controlled their will be variances in the colure
And other physical properties from batch and even from tile to tile firing
is made easier by the use of latest heat treatment technology
In recent years tiles are fired by the single firing technique . Through this
method time taken by one production cycle is one hour, because the flame
heats the tile directly . Once the tiles have been formed , those to be glazed
by the single firing process are coated with a mixture that fuses upon firing
to form an imperious glossy film on the tile surface.
 Machines used in the production of Ceramic tiles:

MTC 101Continuous Ball Mill Glazing Lines & Container Cans

FLOW CHART SHOWING MANUFACTURE OF CERAMIC TILES:

 BATCHING

MILLING

SPRAY DRYING

POWDER STORAGE

PRESSING

VERTICAL DRYING

GLAZING & PRINTING

FIRING

POLISHING

INSPECTION
 PACKING

~For Vitrified tiles:

The overall production process is same for Vitrified tiles also . However
these tiles are not glazed . After firing they pass on to the polishing line .
Here the surface of the tile is grand so as to give them a smooth finish.

The edges of the tiles are also calibrated to smoothen out rough edges . As a
result tiles emerging out of the polishing line have a “Shine” not seen in
other tiles .

Process used for manufacture of Vitrified tiles :

The raw materials as indicated above in the right properties formulate a

best suited composition generally having 50% non plastic material are
stored in converted storage area and batched with the help of weigh
batches to achieve the desired proportionate ratios . This prepared batch is
put in to the grinding mill namely ball mill, ,the grinding operation in a
ball mill as a batch process . The basic raw material with water is ground
with the Hein of quality grinding media to attain a very low residue in the
grand mass .

Generally two kinds of grinding operations are undertaken in the ball mill .
One is exclusively for the base body composition , which is without the
colour added to it . The proportion constitutes approximately 80% of the
total requirement . The rest of the 20% of the body mix are coloured with
varieties of colour pigments and such grand masses are colleted in
different storage bunglers .

This grand mass as per the desired specifications in terms of particular size
distribution , viscidity and density are spray dried with the help of spray
drier with a high pressure position pump . The spray dried granvels are
collected in a huge storage silos each having compaction of 80 cm . The
base powder (white) and the coloured powders are stored in different silos .
As per the requirements and designs seen for the manufacture of granite
tiles the desired ratio of the base granvels are drawn from the respective
silos weighed and batched before mixing them thoroughly
In a mixer granviator .

This mixed powder of composition to take the desired designs, is drawn

through a set of conveyors to a hydraulic press and imparted a pressure of
350 to 4500 sqm to ensure near complete compactness.

The tiles emerging out of hydraulic press are cleaned , brushed and then
taken to a drying system where the residual moisture is reduced to less
than 1% which enhances the mechanical properties of the tile . Further the
tiles are fed in to the roller , Hearth kiln , a critical equipment designed to
produce vitrified products at a high temperature namely , 1200 centigrade.

The roller hearth kiln uses a clean fuel namely LPG for technical reasons .
The normal production cycle for firing the tiles from cloy to cold in a
roller hearth kiln is approximately 60 minutes . They fire products which
have already achieved the required characteristics which are stored in a
storage trolleys and are sorted in a sorting line for
War page , rectangularity dimensional accuracies and visual inspection.
The first quality tiles are selected in the sorting line and then taken to the
polishing line .

The polishing line primarily consists of calibrating the machines which

control thickness and planarity of tiles . After the calibration , the tile is
subjected to the polishing machine , which comprises of 18 head with
different constructions and operations to achieve the desired quality of
polishing the vitrified tiles.

The tiles thus polished are subjected to squaring in the machine , where
the rectangularity is chamfered for the edges in the chamfering machine.

The tile coming out of the chamfering machines are thoroughly cleaned
before being dried brushed and blown . The product is now ready for
selection and packing water is the coolant used for calibrating, polishing ,
squaring and chamfering machine .
 MURUDESHWAR CERAMICS LIMITED

FLOW CHART SHOWING MANUFACTURE OF VITRIFIED TILES

BATCHING

MILLING

SPRAY DRYING

POWDER STORAGE

PRESSING

VERTICAL DRYING

GLAZING & PRINTING

FIRING

POLISHING

INSPECTION
 PACKING

~For Natural Granite slabs:

Granite is natural stones and as such there is no clear production process

for it , the rough granite blocks obtained from the mines are cut in to slabs
and polished before being sold . The rough slabs are marketed and
dressed .
After this the blocks are positioned on the trolley . Then the trolley is
moved to the Gansaw blocks are sliced in to slabs of 20mm thickness and
more . The slabs are then washed and fallen for grinding and polishing
machine .
After this stage inspection is carried out to find out any defects or damages.

Slabs are then marked to the customer’s specifications and taken to the
edge cutting machine where they are cut to the required size . After for the
inspection at this stage , the edges are polished and chamfered , if
required . This forms the finished products , which after washing and
inspection is ready for packing and dispatch .
 The process used for Granite tiles :

Granite blocks Raw Material

Transfer block slabs

Slab washing Gang saws slabbing

Raw material slab cutting

Polishing finished product

 FINANCE DEPARTMENT :

CHAIRMAN

MANAGING DIRECTOR

VICE PRESIDENT-FINANCE

MANAGER(accounts)

ASSISTANT ACCOUNT MANAGER

OFFICE AND STAFF

Responsibilities of the finance department:

 The department looks after the finance and prepares account . It
is the routine process for this department to prepare account . Finance is
the lifeblood of every business . It is the foundation of every economic
activity . In MCL investment decision , finance decision, liquidity decision
and other functions like capital budgeting, working capital etc.

The source of finance of MCL consists of share capital , reserves, secured

loans and unsecured loans. The share capital is Rs.1,750.97 lakhs .
Reserves and surpluses is Rs.24,969.27 lakhs , Secured loans is
Rs.18,099.88 lakhs and unsecured loan is Rs.977.00 lakhs during 31/3/09.
The total shareholders fund is Rs.26,720.24 lakhs(including reserves and
surpluses).

The other requirements are met by secured and unsecured

loans . Secured loans consist of debentures , foreign currency , rupee loan ,
short-term loan and assets , credit cash developments , loans etc.

MCL gets foreign currency and rupee loans from ICICI and
ICFI. It borrows rupee loans even from ICICI , Hyderabad from short
term loans . It is the ICICI banking corporation ltd company that has
obtained development loans from Karnataka government and cash credit
from Canara Bank , Bank of Baroda ,SBI and Vijaya Bank . The sources of
unsecured loans consist of interest corporate deposits , ICFI ltd ,KSIIDC,
LIC, & IDBI.

ANALYSIS OF FINANCIAL PERFORMANCE:

  The company started in 1988 with a paid up capital of RS. 3.5 crores
and term loan of RS.10.61 crores where the net profit earned was
RS.50.24 lakhs .

 In the next financial year with the same paid up capital, and
increased the term loan of RS.17.18 cr .

 The company recorded the turnover of RS.16.11 crores and a net

profit of RS.2.25 crores .

 During the financial year 1990-91due to Gulf war and other

problems, increase in rate of fuel etc the companies turnover
increased slightly i.e RS. 23.15 crores and their was decrease in
export turnover which was RS. 17.95 lakhs .

 The net profit during this year was RS.3.32 crores.

Graph showing earnings and dividend per share of MCL

BALANCE SHEET AS AT 31/3/2009

particulars sc no for the year ended 31/3/2009 31/3/2008

SOURCES OF FUNDS Rs in lacs Rs in lacs Rs in lacs

SHAREHOLDERS FUNDS
a) share capital 1
equity shares 1750.97 1750.97
b)reserves and surpluses 2 24,969.27 25,073.92
c)deferred tax 3 856.88 829.40
27,577.12
LOAN FUNDS:
Secured loans 4 18,099.88 19,198.87
Unsecured loans 5 977.00 1,603.75
19,076.88 20,802.62
TOTAL 46,654.00 48,456.91
APLICATION OF FUNDS:
FIXED ASSETS 6
Gross block 50,882.88 49,963.17
Less: depreciation 18,995.90 16,628.04
31,886.98 33,335.13
Add: capital work in progress
Including advances 982.93 476.50
32,869.91 33,811.63
INESTMENTS: 7 300.54 300.54
CURRENT ASSETS,LOANS AND ADVANCES
(a)inventories 8 10,452.67 10,034.27
(b)sundry debtors 9 4,472.01 6,082.46
(c) cash and bank balances 10 423.99 499.32
(d) loans and advances 11 1,270.96 1,776.55
(e) interest accrued on deposits 25.79 38.21
CURRENT LIABILITIES AND PROVISIONS:
(a) current liabilities 12 3,011.99 3,446.06
(b) provisions 13 158.32 656.89
3,170.31 4,102.95
NET CURRENT ASSETS:
Miscellaneous expenditure
To the extent not written off or adjusted 14 8.44 16.88
TOTAL 46,654.00 48,456.91
Profit and loss account for the year ended 31/3/2009

Particulars sc no for the yr ended 31/3/2009 31/3/2008

INCOME: Rs.in lacs Rs. In lacs Rs in lacs

Operational income 19,041.49 25,068.64
Other income 15 36.35 41.71
Increase/(decrease)in stock 16 (237.47) (183.57)
18,840.37
EXPENDITURE:
Raw materials consumed 4,042.06 5,263.86
Excise duty paid 1,031.51 1,391.15
Power and fuel 3,323.60 4,110.62
Production consumables 715.48 918.65
Salaries ,wages and amenities 17 1,318.19 1,373.42
Repairs and maintenance 18 614.77 966.58
Administration selling and other expenses 19 2,773.18 3,276.31
Interest 20 2,547.60 2,143.47
Depreciation 2,402.13 2,340.62

18,768.52 21,784.68
PROFIT AND LOSS BEFORE TAX:
Less: provision for taxation 71.85 3,142.60
Less: provision for deferred tax 7.41 391.74
Less: provision for fringe benefit tax 11.62 11.89
Less: income tax paid for earlier year 7.26 -

PROFIT AFTER TAX: 18.08 2,662.67

Balance of profit brought forward 552.29 635.31

PROFIT AVAILABLE FOR APPROPRIATION 570.37 3,297.98

APPROPRIATION:
1) Dividend on equity shares 105.01 210.12
2) Corporate dividend tax 17.85 35.70

122.86 245.80
Transfer to general reserve - 2500

Surplus carried to balance sheet 447.51 552.16

 STORE DEPARTMENT:

INVENTORY MANAGEMENT AT MCL:

Inventory management constitutes a major element of working capital.

Inventories are most significant part of current assets . Inventories may be
in the form of raw materials , work in progress, or finished goods.
The main objective of inventory management is to ensure a continues
supply of raw materials and also to minimize ordering and carrying time to
reduce working capital burden . Inventories represent investment of a
firms fund .
The firm could therefore consider :
1]Costs
2]Return
3] Risk

Factors in establishing its inventory policy , two types of costs involved in

the inventory management.

 Ordering cost:
Requisition, placing of order, transportation , receiving, inspecting,
storing, ordering costs decrease with increasing size of inventories.
 Carrying cost:
Cost incurred maintaining a given level of inventory is called as carrying
cost . They include storage, taxes , obsolescence, clerical and staff service
costs . As order increases and therefore, the carrying costs increases. The
firm should minimize total cost (ordering cost +carrying cost). The
economic order quantity of inventory will occur at a point where the cost is
minimum .
The following formula is used to determine EOQ:
EOQ=Q=2AO/C
Where,
A=annual requirement
O=ordering cost
Q= per unit/carrying cost

The economic order level of inventory:Q represents maximum operating

profit, but it is not optimum inventory policy . The value of firm will be
maximized when the marginal rate of return is calculated by dividing
Incremental investment in inventory and cost of funds is required rate of
return of suppliers of funds.

The inventory level at which the firm places its order to replenish
inventory is called as “reorder point”. It depends on the following factors;
1)The lead time
2)The usage rate

Under perfect certainity about the usage rate and instantaneous delivery
the reorder point will be equal to lead time or usage rate .
In practice their certainity about the lead time or as a bugger or a cushion
to meet contingencies. In that case the reorder point will be equal to lead
time *usage rate or safety stock.

The firm should strike a trade off between the marginal rate of return and
marginal cost of funds to determine the level of safety stock .
The raw materials of MCL is required to manufacture all three varieties of
Ceramic tiles are clay, feldspar, and quart . The clay is bought from
quarries Govinkoppa, Yargatti Thirthalli.

The availability of clay at these quarries is estimated by the company to be

sufficient for its needs for about 100 years , feldspar and quart are sourced
from local suppliers such as Mysore minerals ltd. Special clay are
produced in Rajasthan.

MARKETING DEPARTMENT
 Distribution Channel of MCL production

Direct selling Indirect selling

Company Company Company sales

showroom websites executives Dealers Others

Execution of an order:
The customers at MCL may be dealers , direct customers, or sales executives
who directly contact the head office and enquire about the products from
marketing executive . If price and other conditions of sales are agreeable to the
party then an order is placed . Generally the company does not take small
orders. Small orders usually come through the dealers.

The company has appointed sales executives at several places all over India who
get the order from the customers .All these orders are assessed to the head office .
In case of regular dealers the company , in consultation with the dealer decides
upon the bulk quantity to be ordered.

ORDER FORM:
 As soon as an order is placed an “order form” is filled . The order form consists
such details as the address of the party , description of the product , insurance,
delivery period , mode of transport etc. This form is filled by the customers .

SALE NOTE:

Using the order form, sale note is prepared . Four copies of sale note are issued .
Two copies are retained with the head office , one is sent to the factory and the
fourth one is given to the customer.
For a dealer however the process is slightly different . The sale note is prepared
only for a bulk order . On the basis of order the dealer keeps on ordering
whatever quality he requires , for this purpose a programme note is prepared
which contains the data about the size , number of boxes to be dispatched , and
delivery date etc.

The programme note and the sale note are sent to the dispatch section where two
copies of a loading section , which dispatches the goods according to the
specifications and the fills in the lorry number , chassis number etc.

This is sent back to the dispatch section where it is filled . The carbon copy of the
loading ship is used to prepare the invoice cum the delivery challan . Four copies
of invoices are prepared where in the original along with the form 39 and GC
form sent to the buyer, the duplicate is given to the central excise officer and the
final copy is submitted to the head office . All the details in the invoice copies are
entered in to the “invoice” detail from the register.

Receivable Management:

There are two methods of collecting the money , i.e cash basis and credit basis .
Usually 99% of customers pay 100% advance , but for the rest 1% the company
follows credit policy of one month. This step is to keep up with the competitors
who usually give the three month of credit period , before the companies gives
the three month credit period it takes in to consideration certain aspects such as
Quality of material ordered, party involved etc.

A list of debtors is maintained in a register according to the credit period and

region. This list is updated everyday by the finance department. Along with this a
receipts register is also maintained in which all the collections on that particular
day are entered . In the follow-up part ,the amount involved and the credit terms
are taken in to consideration before calling customers.
Controlling the marketing function:

The functions are done by the commercial executives . The job mainly involves
controlling the information flow between the head office and various branches.
Every week, a sales call report is sent by individual sales to the head office
regarding the sales position during that week. Similarly the sales executives to
the head office also send a complaint report.

Company Showrooms:

Already the company is having 78 showrooms all over India which enables direct
contact between the company and the final consumers
. It is happy news that the company is planning operation of 60 showrooms in
major and minor cities and towns all over India . Some of the important
showrooms are in the following cities:
New Delhi , Ludhiyana , Hubli ,Banglore, Mysore , Chennai ,Hyderabad and
Kolkata.

Company websites:
Marketing can also be done by using company website . Here there is a special
option called “Reach us”, by filling our name and address transaction can be
done.
www.naveenceramics.com
www.naveentile.com

Company dealers:
The company has its own dealers spread all over the country . They place their
orders through sales executives of the company or they directly contact the head
office .
Some of the important dealers in Karnataka are as follows:
Dharwad Floor art
Badami Niketan Engineering center
Bagalkot Shri Vijaya stones and marbles
Belgaum AYM Traders , chetan traders ,
Kaveri traders

FACILITATING FUNCTIONS OF MARKETING:

Facilitating functions of marketing or aids to marketing means those functions
which makes the marketing process complete.
For the purpose of efficient marketing MCL has got many facilitating functions .
Some important functions are as follows:
1)Transportation
2)Information and research
3)Marketing finance

Marketing department:
Like all organization MCL is also having a separate marketing department
which looks after all marketing functions and procedures which makes plans for
efficient selling .

Importance of department at MCL:

 Making plans for future marketing and prepare marketing strategies.

 Marketing department fixes prices .

 Marketing department recruits personnels .

 Marketing department co-ordinates other departments.

Marketing promotion at MCL:

Promotion means to push forward or to advance an idea for acceptance and
approval . It is an effort by a marketer to inform and persuade buyers to accept
resell, recommend or use the goods and services or an idea which is being
promoted .
The important promotional measures at MCL are:

 Advertising
 Salesmanship
 Quality policy

Advertising:
Advertising or publicity refers to the supply of information about the
products in order to acquire the consumers with the merits of the products.
MCL is also having strong advertising policy which mainly aims for the
promotion of the project.
Importance of advertising in MCL:
  To widen market I northern areas where company has not shown
Significant progress.

 To overcome competition

 To retain demand in market .

 To assist the sales executives in the efforts of sales promotion.

Kinds of information required by MCL:

For taking any marketing decisions the company is required to collect
information about the following.
 What people are willing to buy.
 At what price the product should be sold .
 What is the size of the market.

Marketing finance:
Finance is the most important thing in any activity. For any activity finance is
needed for taking up marketing activities , finance is very important.

Kinds of capital required by MCL:

1]Permanent J1 finance capital: This type of capital is required for the

purchase of and acquisition of fixed asset like land and building , furniture
and fixtures, delivery equipments etc , the company raises fixed capital by
capital investment and long term loans .

2]working or current capital:

This type of capitals is required for holding salaries, and other business
expenses . The needs of working capital are met out of own funds should
term borrowing and credit facilities granted by dealers or advances
received against sale.

PERSONNEL OR HUMAN RESOURCE

DEPARTMENT:
The personnel department of MCL mainly deals with salary , attendance
etc, which is concerned to staff members and labours. The total strength of
MCL is 400. This includes both officers and workers who are permanent .
There are other workers who work on daily wages.

Objective :

The main objective of the human resource department is to select the right
person for right job and also to train them . It also aims in solving the
misunderstandings if any between the workers and the management.
There are two types of workers in the company . They are skilled and
unskilled workers. The total strength of workers in MCL as on 31/8/2009 is

Strength of skilled labour - 206

Strength of unskilled labour is - 410

TOTAL = 616

RECRUITMENT PROCEDURE IN MCL:

In case of selection of workers in production level MCL will prefer

diploma electrical , or diploma in mechanical or any graduates who will be
suitable for the job requirement . The interview panel consist of 4 members
who will be responsible for selection of workers . The interview panel will
be same everytime.

For lower level management direct recruitment is preferred . They will

judge the candidates through the rating scale technique. The scale used is
0-5 . The minimum salary offerred by MCL is 3500 for skilled or technical
and 300 for non-technical. As per the minimum wages act they will pay.

INTERVIEW PANEL:
 AGM HR

SELECTION IN CHARGE OR SENIOR SUPERVISOR

SHIFT SUPERVISOR

SHIFT ASSISTANT

FACILITIES PROVIDED BY THE COMPANY:

The company provides canteen facility at subsidized rates. The company
gives the bonus every year and also hike in salary . The company has
training programme workers for 4-6 months . This helps them to give the
promotion. Quarters are provided for the skilled workers . The proportion
of skilled to unskilled workers is 3% . The company also gives ESI and
provident fund etc, during the emergencies they have the medical facility
also . The company also has a good working environment.

CULTURAL ACTIVITIES:
The company arranges the entertainment programme every year during
the annual day function for the recreation of the workers and staff. They
organize sports for the workers and staff.

SHIFT AND LABOUR UNION:

The company runs throughout the day . Totally there are three shifts .
First shift is from morning 5-1 p.m, second shift is from 1-9 p.m, the last
shift is from 9-5 a.m . In each shift approximately 100-110 workers
work.After every four hours of work the worker also is given a break of 45
minutes.This includes the tea break also.
RESEARCH AND DEVELOPMENT DEPARTMENT:
The research and development wing of MCL is a very important
department constantly engaged in the process of finding new and improved
methods of tiles production.
A) Import substitution
B) New effect , colour ,designs for the existing product range.
Some of the benefits derived as a result of the above R&D efforts are the
new and improved product range and improved realization.
In future the R&D efforts are to be concentrated in additional facilities for
soluble salt printing on the tiles .The company is constantly making efforts
towards technology absorption , adaptation and innovation. Through these
efforts the technology imported in 1996-1997 regarding screen printing on
tiles has been carefully absorbed.

SKILL:

The company’s process of training the employees is the off- the-job

training process which is theoretical in nature and provides overall design
of the job. The company is fully equipped with skilled faculty to train the
employees , so as to get the world class performance from the employees .
The training process will be for the period of 4-6 months.

STYLE:

The decision making of MCL is top down approach where the flow of
decisions starts from the top management and flows towards the middle
management and lower management . The decision making process is
participative in nature , where all the middle level and lower level
management are allowed to suggest the ideas in the decision making .

STRATEGY:

The company is adapting quality strategy. It follows a planned strategy for

production of tiles of different sizes at both Hubli and Karaikal units
depending upon the economies of the operation and market conditions .
The company adopting a mixed strategy of showroom sales and through
dealer network depending upon the market size and feasibility .
STAFF:
The duties and responsibilities of various groups of staff are classified
based on their qualifications and work experience .
For operations level-ITI
Supervisory and clerical –Diploma
Electrical or Diploma in mechanical and computer knowledge
 SWOT ANALYSIS:

STRENGTHS:

1]NEAREST TO THE RAW MATERIAL SOURCE:

One of the MCL’S major strength is that it is located close to the source of
raw material as well as to the end of the market . MCL creates demand for
tiles in area such as Madras , Banglore , Mumbai and Ahmedabad.
Thus it is centrally located to its final market .

2]STRONG R&D DEPARTMENT:

It has a strong house in R&D base apart from developing a new and
improved product range. It also has the capability to absorb in imported
technology.

3]LOYAL NETWORK:
The company has built up a loyal network of dealers in South India as well
as in western part . Investment of long credit period and healthy discounts
has created awareness and brand image for Naveen tiles .

4]SATISFACTION OF CONSUMER NEEDS:

Vitrified tiles are gaining a lot of popularity in the market . MCL has an
installed capacity of 75000 tpa of which has the flexibility to manufacture
either ceramic or vitrified tiles.

5]GOODWILL: The company has got the goodwill by manufacturing the

vitrified tiles as well as ceramic tiles . It has given more preference for their
loyal dealers.

6]HIGH QUALITY:
The MCL producing the high quality of vitrified tiles and ceramic tiles also
and it is maintaining the quality products.

WEAKNESS:
1]Declining demand:

The fortune of tile products is directly linked to the construction and

housing sector would result in a decrease in demand for tiles and
consequently the ceramic tiles would suffer .

2]National presence is not there :

The R.N.Shetty group though is known in south India does not have a
strong national presence . This restricts the company market and its ability
to borrow large amounts at finer rates.

3]Heavy Excise duty:

Heavy excise duty has to a certain extent not allow the company to compete
effectively with other flooring alternatives which is a potential threat to the
company’s product.

4] Delicencing :

Ever since the government delicenced the ceramic tiles industry, there is
virtually no barrier to emerging fresh competition and hence level of
competition in this industry is intense , hence any wrong made on the part
of the company or failure of product can prove to be dangerous for the
company.

OPPORTUNITIES:
1]Grab market in Goa and Mumbai :
As Goa is a developing state more construction activities are taking place
in that state which will earn good profits for the company.

2]Increase in production capacity:

Because of plenty availability of raw material the production capacities
increase.

3]Increase demand for granite MCL :It can capture more market than its
competitors who produce only ceramic tiles.

4]The company is producing vitrified tiles more:

The multiple advantages of vitrified tiles lie in its strength , endurance,
elegance, and variety in shades and designs.

5]BANK FINANCE:With the bank finance becoming much easier and

drop in rate of interest and increase in availability of home loans,
constructions industry is also growing .Additionally the competitive trends
and technological innovations have made the vitrified tiles affordable to
middleclass in the society.

THREATS:
1]HEAVY EXCISE DUTY:

Heavy excise duty is the major threat for the ceramic industry.
Prices become uncompetitive when compared to unorganized sector .

2]DANGER FROM STRONG COMPETITORS:

Danger from strong competitors who are having national presence and
spend a lot on promotional activities

3]DANGER OF LOOSING INTERNATIONAL MARKET:

It is because of strong competition from European companies mainly from

Italy and Spain . China is also a major player in the international market .
It almost covers southeast Asian tiles market single handedly.

4]Increasing popularity of marbles.

ACHIEVEMENTS:
 MCL is committed to produce quality products that remain unsurpassed in
the market today. They are known to follow stringent quality control
methods in our production process. MCL has been accredited with the ISO
9001:2000 certification from TUV-Zertifizierungsgemeinschaft e.v.
(Germany) in recognition of its commitment to quality. Our products can
be seen at all most all prestigious showrooms, offices and buildings in the
country.

CERAM a London based internationally renowned center of technical

excellence for the ceramics and other materials-based industries have
certified MCL products for product quality conformance for dimensions and
deviations, water absorptions, modulus of rupture, scratch hardness,
chemical resistance, frost resistance, breaking strength.

MCL Products are tested and certified by Shriram Institute of Industrial

Research a renowned independent certification agency in India for product
quality conformances to Acid resistance, Compressive Strength, Water
absorption and Scratch resistance as laid down by Industry Standards IS
4457-1982 and IS 136030 (P-7)-93.

GOALS
 MCL has several ambitions and plans for the forthcoming years .

Murdeshwar power corporation ltd in collaboration with Karnataka

corporation is going to set up an 18 MV Hydel power plant at Dandeli.

As a contribution to the growing tourism sector in Karnataka , Naveen

hotel is planning to set up their star hotels at the coastal of Karwar and
Manglore . For MCL proper capacity expansion programme has been
envisaged . The proposed capacity is to be in the field of vitrified tiles.
FINDINGS
THE MAIN FINDINGS OF THE STUDIES ARE :

 MURDESHWAR CERAMICS LIMITED has earned has earned

adequate profit and is running successfully by gaining the
reputation and good relationship with customer.

 All the provisions that clause 49 of the listing agreement

are compiled .

 The MCL 50% of Board of directors and 1/3 rd of the

boards are the independent director.

 In the organization all the workers work freely.

 The chairman of the committee is an independent

director .

 Managers and employees are very supportive.

SUGGESTIONS AND RECOMMENDATIONS:
 The company should distribute free shades ,cards, and samples
of ceramic and vitrified tiles to each civil engineer in packed
cartons.

 It is necessary for the company to periodically arrange civil

engineers meet with technical senior .

 The company must give more attention to rural people because

India has lower middle class people in rural areas.

 The prices must be much more reasonable in order to beat the

competitors.

 Company can hold an exhibition of the company’s products to

attract more people to create awareness among them .

 It is necessary for the company to arrange tiles fitters to meet to

train them and inform them about new development in ceramic
tiles .

 Introduction of fresh colours and shades in the cement product

range.

 Credit facility must be provided to customers and dealers .

 Because of lack of credit facility it is losing the market shares .

 Sales executives should help dealers in case of complaint and

problems regarding any defects by giving the samples/shades and
cards.

 As there are lot of players in the market there is cut throat

competition as well as in rural market also the company should
be given more importance to develop awareness.
CONLUSION:
MURDESHWAR CERAMICS is to delivering value and setting standards
for ceramics in the new millennium . It believes in the motto that
performance in the various areas is the reflection of its commitment to
customer care through continous introduction of innovative products and
services . It helps the customers to fulfill their needs.

MCL meets the growing aspiration of the customer in the competitive

environment by delivering quality service and to achieve total customer
satisfaction .

MCL has crossed several milestones and is improving its performance year
after year . It received many awards for excellent performance in different
parameters .

MCL has been successful in maintaining and controlling inventories and in

proving timely supply of products , thereby having a strong goodwillin the
market and a “brand image”. MCL have been constantly innovating and
ensuring a successful market growth.

Future plans about marketing are very sound and competitive. It is

heartening to know that the company has made great progress in northern
region and it is trying to make more in the the coming year . There is a
great consistency in the growth of the company . This consistency is
promising a bright future of the company.

BIBLIOGRAPHY:
Company catalogue
Company annual report
WEBSITES:
www.naveentiles.co.in
www.naveenceramics.com