Suhas Project

MALNAD ALLOYS PVT LTD
ORGANIZATIONAL STUDY AT
MALNAD ALLOYS CASTING PRIVATE LIMITED
Submitted in partial fulfillment of the requirements of
Bangalore University for the Award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
Submitted by
SUHAS.A
REG NO: 09JJCMA053
UNDER THE GUIDANCE Prof. Aloysius Edward J
Kristu Jayanti College of Management and Technology
K.Narayanapura, Kothanur P.O.
Bangalore-5600772010
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CERTIFICATE
This is to certify that this internship study titled “AN ORGANIZATIONAL

STUDY at “MALNAD ALLOYS CASTING PRIVATE
LIMITED’’
is based on an original project study conducted by SUHAS.A ,Reg. No. 09JJCMA053 of
II semester MBA under the guidance of Prof. Aloysius Edward J.
This has not formed a basis for the award of a degree/diploma by Bangalore
University or any other university.
Prof. Aloysius Edward J Dr. Pious Thomas

Rev. Fr. Josekutty P.D
Internal Guide Coordinator (MBA)

Principal
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DECLARATION
I,SUHAS.A do hereby declare that this report titled “AN

ORGANIZATIONAL STUDY” conducted at “MALNAD ALLOY
CASTING PRIVATE LIMITED” has been submitted to “Bangalore
University” in partial requirement for the award of “Masters of
Business Administration” degree is a record of original work,
done by me under the guidance of Prof. Aloysius Edward J.
I also declare that this project “Organizational Study” is the

result of my own efforts and has not been submitted earlier to
any other university or institution for the award of any degree/
diploma/certificate or published any time before.
Bangalore SUHAS.A
Date:
09JJCMA053
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Acknowledgement
An endeavor can be successful only with the kind and elegant support of the well
wishers. The satisfaction and euphoria that accompany the successful completion of
any task would be incomplete without the mentions of people who made it possible with
their constant and encouragement crowned effort with success.
So it is my duty to acknowledge gratefulness to several people who helped me

directly or indirectly to conduct this study. I take this opportunity to express my
gratitude to all those without whose help, guidance and encouragement, this report
would not have seen this light.
I express my deep sense of gratitude to Mr. MADHUKAR JOIS, MALNAD

ALLOYS CASTING PRIVATE LTD, Shimoga, for having given opportunity to
undertake the project in this company. I extend my thanks to Mr. SUBBANNA
QUALITY MANAGER, Shimoga for acting as an internal guide and to explain the
process of functioning of the plant and for providing proper guidance.
I express my gratitude to Prof Prof. Aloysius Edward J OF KRISTU JAYANTI

COLLEGE OF MANAGEMENT-My guide for this project who provide me proper
guidance and encouragement during the period of my study.
Finally I thank all employees of MALNAD ALLOY CASTING PVT LTD, Shimoga,
all my teachers and friends who were kind and encouraged me directly or indirectly.
Last but not least, I thank the almighty, my Parents and all those who always inspired
and blessed me.
Place: BANGALORE
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Date: SUHAS.A
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CONTENTS
INTRODUCTION
CHAPTER1: INDUSTRY PROFILE
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EXECUTIVE SUMMARY
As a part of academic curriculum I did my internship project “A study of MALNAD alloys

Casting private ltd, shimoga” during July 2010. As the general saying goes “A swimmer
learns swimming only after jumping into the water”, it is true that only practical lesson makes
a man stronger. My learning at the plant made me visualize and know the live challenges in
carrying out a business and the strategies which are applied to overcome the same. India
which contributes to about 0.9% to the auto-component industry to the world, it has started
realizing that only the manufacturing business can lift up it to the world’s industrialized
nations.
M/SMALNAD ALLOYS CASTING PVT. LTD., is a modern Alloy steel foundry

geared to manufacture Quality alloy steel, stainless steel and nickel alloys casting to
all international standards for the process pumps , valves and general engineering
industries.
The company is situated at SHIMOGA-BHADRAVATI INDUSTRIAL Area with an

area 45300sq.feet. The foundry started commercial production of sand casting in the
year 1985, and managed by a team of highly experienced foundry professionals
headed by
Sri .H.C.RAVEENDRANATH M.E (Foundry Technology) who has more than 35

years experience in foundry industry under various capacities.
Having separate departments for every functioning of the unit, the new foundry,
quality testing centers and well established quality control labs PAC has
achieved heights so far.
Highly ambitious directors, dedicated employees and satisfied customers have

jointly led to the success of MACPL. Diversification of products, more access
to foreign markets and increased government supports to small and medium
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scaled enterprises can lift companies like MACPL at micro level and nation at
large at macro level.
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CHAPTER 1
Introduction of the study And Industry
profile
1.1 Introduction to the Study
1.2 Research methodology
1.3 Industry profile & Global scenario

1.4 Indian scenario
1.5 PEST Analysis
1.6 Porter’s Five force Analysis
1.7 Balance Score Card Analysis
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CHAPTER 1
INDUSTRY PROFILE:
1.1 Introduction –
BACKGROUND AND DEVELOPMENT:
Cast iron was first made by the Chinese around the eighth century B.C. It was not until
the invention of the blast furnace by the Europeans in the fourteenth century, however,
that large quantities of cast iron were produced. North America's first operational
foundry was built in 1642 along the Saugus River, near Boston. About eight tons per
week of gray iron castings were produced at the site.
Malleable iron, also called American blackheart iron, replaced grey iron as the standard
cast-metal around 1820, when the commercialization of secondary heat treating of the
metal was first used. In 1966 malleable iron castings production in the United States
accounted for 50 percent of the total malleable iron cast in the world. The year 1967,
however, saw ductile iron castings production surpass malleable iron castings
production in the United States. U.S. malleable iron castings production accounted for
roughly 12 percent of the world's total production in 1995.
During the 1960s, average yearly production of malleable iron castings reached its peak
at around 983,300 mt. Production during the decade of the 1970s remained at
respectable average yearly production levels of 854,900 mt. The 1980s, however,
reflected the difficult economic times for the industry, with average yearly production
levels shrinking to 346,100 mt.
The foundry industry still ranks within the top ten manufacturing segments in the
United States. Still, it has been battered by technological and competitive forces
throughout the last two decades. The high inflation rates, high interest rates, high value
of the dollar, and deep recession during the early 1980s hurt this industry tremendously.
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The largest customers of malleable iron castings, the domestic heavy equipment
manufacturers, realized that these economic conditions favored offshore sources of
malleable iron castings. Foreign competitors not only had lower prices when compared
to American malleable iron sources, but they also had high quality manufacturing
capabilities. Consequently, the value of castings shipments in the United States dropped
55 percent from the 1977 level of $721.9 million to $323.2 million in 1982.
The high interest rates also raised the industry's cost of capital, which is the price to
finance and replace existing operations. This in effect halted any new capital
expenditures on plant and equipment in the United States. Capital reinvestment dropped
85 percent between the years 1978 and 1983. Again, the high dollar, high interest rates,
and high cost of capital made it very expensive to reinvest in the business of producing
malleable iron castings. The lower rates of reinvestment by American malleable iron
casters at a time when foreign competitors were raising their levels of casting quality
put U.S. foundries at a technological disadvantage. In 1986, the Reagan
Administration's decision to not sanction import restrictions further hurt the industry.
To illustrate the damaging effects of adverse economic conditions and increased foreign
competition, total shipments of 1.17 million mt of malleable iron castings in 1969 fell
to production levels of 284,000 mt in 1982. A small recovery in the industry occurred
in 1984 when production increased to 380,000 mt., but production soon slid back to
299,000 mt in 1989 and hit the all-time low of 207,000 mt in 1991. Production then
increased to 260,000 mt in 1994 before slipping yet again to 249,000 mt in 1995 and
even further down to an estimated 226,000 mt in 1996. The number of establishments
producing malleable iron castings also decreased during this period, from 73 in 1972 to
26 in the late 1990s.
The industry was in severe decline, with no expectations of returning to its glory days
of the 1960s. More than a third of the malleable foundries in the United States have
been closed since the early 1980s, with further consolidation likely to continue. The
factors that have contributed to this decline are strong foreign competition, the
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substitution of other metals and materials for malleable iron, rapid changes in
technology, and unfavorable domestic economic conditions.
1.3 GLOBAL SCENARIO :
cutlery. Gradually, it was used for the food processing sector and subsequently in
textile, chemical and other engineering industries. Its application in the Architecture,
Building and Construction (ABC) and Automobile, Railways and Transportation
(ART) sectors have worked wonders.
Castings are used in 90 percent of all durable goods. In 1999, there were 2,950 metal
foundries in the United States with a capacity to ship 17.7 million tons of castings
annually. Actual shipments amounted to an estimated 14.7 million tons in 1998, up
from 1997 shipments of 14.2 million tons valued at $25.7 billion. Iron castings
(including gray iron, ductile iron, and compacted iron graphite, in addition to malleable
iron) accounted for 73 percent of the overall metal tonnage shipped and sold, but only
35 percent of the overall value.
In 1995, there were more than 3,100 U.S. metal foundries making over 100,000 distinct
products. Malleable iron casting production represented approximately 1.7 percent of
the total U.S. casting output. Capacity utilization in 1990 for malleable iron foundries
was 78 percent, just slightly better than the 75 percent average for the entire foundry
industry. This reflected the high rate of disinvestment in plants and equipment that
occurred during the 1980s.
As an indication of the decline of this industry, government statisticians classify

malleable iron foundries as job shops. These foundries generally operate on a job or
order basis by manufacturing castings for sale to others, or for interplant transfer. In the
1970s, half of all malleable iron foundry castings came from in-house or captive plants.
But in the 1980s, a major shift occurred when large independent manufacturers of
railroad cars, oildrilling equipment, heavy machinery, automobile, trucks, and major
appliances sold off, shut down, or consolidated their captive operations. Near the end of
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the century, upwards of 75 percent of all malleable iron castings came from
independent or custom casters.
These foundries produce two types of malleable iron: standard malleable iron and
pearlitic malleable iron. In the early 1990s, the value of shipments for each of these two
product classes of malleable iron castings were 145,800 metric tons (mt) for standard
malleable iron (62.1 percent of total) and 89,100 mt for pearlitic malleable iron (37.9
percent of total).
Most of the malleable iron foundries are found in the nation's midwestern and
northeastern states. The largest malleable iron-producing states, in descending order of
shipments, are Wisconsin, Pennsylvania, Michigan, Connecticut, New York, Ohio, and
Illinois.
WORKFORCE
By 2000, total employment in iron foundries had fallen to 80,899, compared to 85,429
in 1997. Production workers numbered 67,985. Total payroll compensation in 2000 was
$3.38 billion, with hourly wages at $18.58, compared to $11.27 a decade earlier
WORLD PRODUCTION
In 1913, production of stainless steel in the world was only a few tons. It reached 0.6
Mt in 1938 and increased to about 2.5Mt in 1963. It crossed the 10Mt mark in 1986.
The global stainless steel production figures between 1995 and 2001 are presented in
Salient Features of Selected Countries
(a) China – China is presently the world’s largest consumer of stainless steel. It
consumed 2.25 Mt in 2001. China’s production declined to 220,0000 tonnes in 1998
from 33,80000 tones in 1995 and 343,0000 tonnes in 1996. However, due to special
thrust by the Chinese government, the production rose to 750,000 tonnes in 2001.
According to Wang Keqiam, DGM, Taiyum Stainless Steel Co., China’s steel
production capacity will jump by 238 percent in 2010 to 2.1 Mtpy from the 2002 level.
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The Chinese government has adopted safeguard measures to restrict imports. The
annual tariff free Quota for stainless cold rolled coils up to May 2003 would be about
600,000 tonnes. This will be expanded to 650,000 tonnes over the following 12 months
and increased by an additional 65,000 tonnes up to 2005.
(b) Japan – Japan’s production of Stainless Steel in 2001 was 3.82 Mt and an estimated
3.78 Mt in 2002. In 2003, it is expected to be 3.75 Mt. The Japanese producers have
gone for restructuring the industry. Nippon Steel is in the forefront of the restructuring
programme. They have entered into Strategic alliances with two other companies –
Sumitomo Metal Industries and Nissin Steel. The arrangements will lead to a decline in
Japan’s Stainless capacity to 3.6 Mtpy from 4.0 Mtpy - a reduction of 10 percent. From
July 2001, the Japanese producers have curtailed the domestic shipment of Stainless
Steel by 20 percent or more to prevent the domestic prices falling.
(c) The USA – Production of Stainless Steel in the US declined to 1.8 MT in 2001 and
then grew by 23.9 percent to 2.23 Mt in 2002. The forecast for 2003 is 2.45 Mt despite
dismal prospects of domestic consumption. Imports to the US will be lower and its
exports to China will decline substantially.
(d) South Korea – The country produced 1.55 Mt of Stainless Steel in 2001 and about
1.58 Mt in 2002. In 2003, the production is expected to reach 1.6 Mt. Korea’s demand
for hot rolled Stainless Steel in 1999 was 1.31 Mt. It reached 1.68 Mt in 2002 and is
expected to reach 1.76 Mt in 2005. POSCO is meeting about 86 percent of Korea’s hot
rolled stainless steel demand. Its production capacity is expected to reach 1.66 Mtpy
after the completion of its expansion project now being implement at a cost of US $518
million. POSCO will also expand its No. 1 H S Mill at Pohang to handle more stainless
steel coils. The project is scheduled for completion by September, 2003.
(e) Taiwan (ROC) – Taiwan’s stainless steel production in 2001 was about 1.23 Mt. In
2002, it increased by 15 percent to reach 1.41 Mt. The expected production in 2003 is
about 1.40 Mt. The country’s exports to China will decline sharply due to the
safeguards measures adopted by that country.
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(f) Europe – In 2002, there was a consolidation of stainless steel industry in Europe
Acerinox of Spain made a major acquisition of 64 percent stake in Columbus Stainless
of South Africa. The deal made Acerinox the world’s third largest producer with a melt
shop capacity of 2.5 Mtpy. It has planned to increase the slab capacity at Columbus by
200,000 tones to 750,000 tpy. Acerinox has also opened a new melt shop at its North
American Stainless plant. The major expansion of 2002 was evident in Avesta Polarit
of Finland commissioning its new melting, casting and rolling capacity at its Tarnio
plant that took potential output from 1 Mtpy to 1.70 Mtpy. Avesta also brought on
stream a new Euro 22 million billet caster at its Sheffield Plant in the UK.
Arcelor’s ALZ subsidiary brought on stream an expanded melt shop at its Ghent Plant
in Belgium.
Finland’s Outokumpu acquired Cory’s Stake in Avesta Polarit and then moved to take
full control of the Swedish producer.
The stainless steel production in the E U countries in 2001 was 7.69 Mt. It increased to
7.92 Mt in 2002 but is expected to go down to 7.85 Mt in 2003.
Some of the major applications of stainless steel are briefly mentioned below:
1) Stainless steel was first used in 1930 for cladding the top portion of the crysler
Building in New York. Even after 72 years stainless steel cladded portion remains in
good condition.
2) The entrance canopies to Bilbao Metro Railway station in Spain are made from 316L
grade curved hollow section stainless steel frames. Its escalators are suspended by
stainless steel hangers and braced against the sides of the tunnel with stainless steel
struts.
3) Facades at the School of Occupational and Physiotherapy in South Hamton, UK used

engineering bricks on exposed stainless steel channels. About 40 tonnes of 316L grade
stainless steel was used in cladding support.
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4) The road slab across a section of Cradle well by pass project in New castle, UK was
strengthened by 240 tons of 316L stainless steel.
5) Type 304 stainless steel was used in Sanfransico’s main public library. Pan formed
panels, decorative columns and pilasters etc. were all made from stainless steel.
6) Stainless steel supplied by India’s Salem Steel Plant was used for the retractable roof
of the Melbourne Tennis Stadium in Australia.
7) About 400 tonnes of Salem Stainless steel was used in the world’s tallest twin
towers, the PETRONAS TOWERS in Kaula Lumpur , Malaysia.
8) The roof the Washington National Airport in the USA is covered with about 0.5m sq.
ft. of grade 316 stainless steel. Special care was taken to give it a non-reflective, anti-
glare finish. Considerable use of stainless steel was also used for components including
phone enclosures, the floor base and ticket counters inside the building .
SOME MAJOR PALYERS OF ALLOY CASTING:
1. China--A 11.6% boost in shipments from '02 to '03 kept China as the world's leader
in casting production. In '03, the nation recorded its sixth consecutive growth year.
Casting shipments have increased more than 70% over the last five years.
2. U.S.--Shipments increased (2.2%) for the first time in four years in '03 to 12.07
million metric tons (Transparent optical networking services.) a marketing term for
providing dark fiber to a customer. The customer I responsible for generating the
transmission signal and interpreting it at the other end. (13.28 short tons). Shipments
remain down 6% from five years ago, when at near-peak levels.
3. Japan--Japan's casting industry experienced an increase in casting shipments for only

the second time in the last six years with a 6.3% uptick in '03 to 6.1 million tons.
Japan's shipments are more than 14% lower than in '97.
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4. Germany--Shipments increased in '03 to 4.72 million tons. This figure is more than
14% higher than in '97.
5. India--India experienced a gain of close to 800,000 tons in '03 to 4.04 million tons.
6. France--an After an increase in shipments in '02, France's industry declined to
2.48 million tons in '03.
7. Italy--Italy's shipments basically remained the same from '02 to '03, showing a gain
of a little more than 400 tons. Shipments still remain 7% higher than five years ago.
8. Brazil--Brazil's shipments gained in '03 by 14% to 2.25 million tons.
9. Mexico--Mexico's shipments declined for the first time in six years to 1.82 million
tons (an 11% loss).
10. Korea--Korea's shipments grew slightly in '03 (the fifth consecutive growth year)
by 70,000 tons to 1.78 million tons. Over a five-year period, shipments have increased
more than 13%.
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1.4The Indian Scenario
The term investment casting is used to describe a group of processes in which moulds
are produced from liquid refractory slurries and the pattern around which this slurry is
coated is made out of wax through wax injection machine. Castings made by this route
give high standards of dimensional accuracy, surface finish and design flexibility and
unlike pressure die casting, is applicable to alloys of virtually any composition.
In India the commercial scale production of precision investment castings for industrial
application was taken up in early sixties when one unit in the small scale sector was set
up with Swiss collaboratoin. However, the scenario in seventies completely changed
when 3 more units were set up in the country with separate foreign collaborations.
Simultaneously more units in the small scale sector were also set up.
The Department of Scientific and Industrial Research (DSIR), under the Ministry of
Science and Technology had identified to study the status of technology in the field of
precision investment casting to bring out the present status of the technology in India,
which has primarily been imported, its absorption, adaptation and technolgy gaps
vis-a-vis state of art and international scenario. Consequent to this DSIR commissioned
the National Industrial Development Corporation Ltd. (NIDC) to prepare a draft
technology status report on precision investment casting under the National Register of
Foreign Collaboration (NRFC).
The Methodology adopted for the study comprised of desk research as well as field
visits. The field visits comprised of discussions with majority of the precision
investment casting manufacturers and leading end-users in the country, professional
bodies and institutes of repute in the field. Contacts were also made with manufacturers
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and organisations concerned with precision investment castings around the world to get
a good glimpse of the international scenario.
In India there are about 4500 foundries of which only 17 are known to be producing
precision investment castings. These units include one captive facility at Hindustan
Aeronautics Limited (HAL), Koraput. Four of these units are in medium scale sector
and the remaining units in small scale sector. The precision investment casting
foundries in the country feed to various sectors of industry including, aerospace,
railways, defence, automobile and other miscellaneous industries like pumps,
compressors, valves and artificial limbs etc. The product-mix of various manufacturers
largely depends on the customer requirements and the industry has so far produced
castings more than 200 ferrous and non-ferrous alloys involving in the weight range of
few grams to 40 kg. piece weight.
The first collaboration agreement for the manufacture of precision investment castings
was entered into by Plycast (Delhi) with Alsteg, Switzerland and since then four other
foreign collaborations have also been entered into. All the agreements except one with
IPCL and FHH have since expired. Collaboration profile of precision investment
casting manufacturers is given in Table 1:
There are five major manufacturers of precision investment castings in the country
besides one captive facility at HAL and other small scale units. The total installed
capacity is estimated to be 1100 tonnes/year. Against this installed capacity, production
during the year 1986-87 was of the order of 535 tonnes valued at Rs. 874 lakhs. The
total exports of precision investment casting during the year 1987-88 were Rs. 16 lakhs.
0.8 The main process of manufacture involved in the production of precision
investment castings includes production of disposable wax pattern, investment, wax
pattern removal, firing, melting of metal/alloy, casting and fettling. A few of the units
still depend on imported wax and ceramic material specially molachite. Plant and
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equipment installed at all the units are more or less similar and comprise of induction
melting furnaces, wax injection machines, slurry mixers, fluidized bed for dry ceramic
coating, ovens for wax melting, baking and fettling equipment. A few units have very
sophisticated inspection and testing facilities and have very stringent quality control
procedures. One unit is manufacturing investment castings by using CLA process.
The technology with respect to precision investment casting around the world is
changing very fast and new technology/processes/machines have been developed.
These include vacuum induction melting (VIM) and Argon Oxygen Decarburisation
(AOD) processes, CLA process, ceramic core making and removal, introduction of
mechanised handling systems including robots, improved risering techniques and
vaccum heat treatment of castings, etc.
The technology for the manufacture of precision investment casting imported over 15
years ago has been fully absorbed and adapted. Indian collaborators have been in a
position to improvise and indigenize the designs and some of the raw materials
imported and have also devised and evolved new and innovative methods for
production of such castings.
Based on the study the following major recommendations can be made: Due to lack of
knowledge of its scope and application, the vise of precision investment castings is still
limited. In view of this, it is pertinent to start vigorous marketing efforts by existing
leading manufacturers to educate people and help them in deciding on substitutional
possibilities. This effort can further be augmented by holding seminars by concerned
agencies to discuss possible areas of new applications.
Barring a few units, the process adopted and the equipment installed at other units are
10-15 years old. Though the units have done innovative jobs of their own, the units
have not kept themselves abreast with the latest developments around the world. The
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old plant and equipment also need modernization and replacement to achieve better
efficiency and economy.
Efforts be made to speedily indigenize the raw material requirement, such as, wax for
patterns, for precision investment castings. This can be done by expediting the
installation of Indrol's speciality wax plant in collaboration with Dussak Campbell,
U.S.A. Similarly successful indigenization efforts made by few manufacturers in
respect of ceramic materials should be made available to others by horizontally
transferring the technology. These companies can be suitably compensated for such
services to fellow competitors.
Special and liberal fiscal benefits be granted for export of precision investment castings
and they may not be equated with other castings as is being done now, since these are
high value added items and need special support to increase exports.
Induction of vacuum melting technology to produce vacuum alloys should be done.

Efforts may also be made to procure technologies from external sources for the
manufacture of directional solidified (DS) castings, monocrystalline castings and
castings in the heavier weight ranges (above 40 kg.).
R & D efforts in the country with respect to precision investment casting manufacture
and applications are limited to a few leading manufacturers only. It is recommended
that a central R & D unit at NIFFT be developed. Developmental activities undertaken
by manufacturers and other institutions are encouraged. The substitutional or
developmental projects can be sponsored by Government and the expenditure
subsidized. Additionally it should be obligatory for all the R & D set ups of the
manufacturers to get recognition from Ministry of Science & Technology.
Knowledgeable persons in the field felt that regular training facilities for precision
investment castings be taken up at ITI and NIFFT etc. On the job training can,
however, be undertaken at the manufacturers' work.
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The automobile industry in the country can harness the investment casting technology
for the manufacture of small components and give a lead to other industry. They can
probably afford to set up a separate R & D to work on substitution aspects of
introducing this route of manufacture for automobile components.
In future collaboration arrangements, if any, buy back arrangement, provision for

export of technology to third countries, R & D feedback etc. must find suitable place in
favor of the importing country.
There are more than 5000 foundry units in India, having an installed capacity of
approximately 7.5million tones per annum. The majority(nearly 95%) of the foundry
units in India falls under the category of small-scale industry. The foundry industry is
an important employment provider and provides direct employment to about half a
million people. A peculiarity of the foundry industry in India is its geographical
clustering. Some of the major foundry cluster in country is shown in the map.
FOUNDRIES CLUSTRES IN INDIA:
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Typically, each foundry cluster is known for catering to some specific end-use
markets. For example, the Coimbatore cluster is famous for pump-sets casting, the
Kolhapur and the Shivamogga clusters for automotive castings and the Rajkot cluster
for diesel engine casting. A summary of the five major foundry clusters in India.
FOUNDRY CLUSTER: COIMBATORE

Distribution of foundry units at Coimbatore by end-use segments
Pumps/values 46%
Food processing industry 7%
Textile machinery 6%
Electric motors 6%
Automotive 4%
Coimbatore, located in state of Tamil Nadu, is an important foundry cluster in Southern

India. The foundry industry at Coimbatore came up mainly to cater to the needs of the
local textile and pump-set industries. There are about 600 foundry units in Coimbatore.
The geographical spread of the cluster includes Thanneer Pandal/Peelamedu,
Ganapathy, SIDCO, Singanallur, Mettupalayam Road and Arasur Village
Most of the foundry units cater to the needs of the domestic market. Small percentages
(about 10%) of the foundry units are also exporting castings. Nearly half the number of
foundry units are manufacturing castings for the pump-set industry. The distribution of
the foundry units by end-use markets in given below
FOUNDRY CLUSTER: BATALA AND JALANDHAR
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Table 1.2 Distribution of foundry units at Batala and Jalandhar by end-use

segments
Automotive/ oil engines 8%
Tractor parts 6%
Pumps/fans 10%
Machine parts 33%
Agriculture implements 35%
Others 8%
Batala and Jalandhar, located in state of Punjab, are important foundry clusters in
Northern India. The majority of the foundry units is in small-scale and produces grey
iron castings. About 15% of the foundry units are also exporting their products.
The foundry units at Batala and Jalandhar are predominantly making machinery parts
and agriculture implements. Castings for a number of other end- use applications are
also produced as can be seen from the table below.
Cupola is the predominant melting furnace employed by about 95% of foundry units at
Batala and Jalandhar. The majority of the cupolas are of conventional designs. The
foundry units at Batala and Jalandhar usually use high-ash coke in the cupolas.
FOUNDRY CKUSTER: KOLHAPUR
Kolhapur, located in the state of Maharashtra, is an important foundry cluster for

automotive castings. Historically, the foundry cluster came up to cater to the castings
requirements of the local industries like oil engine manufacturing, sugar mills and
machine tool industry. There are about 250 foundry mills units at Kolhapur. The
geographical spread of the cluster includes Kolhapur, Sangli, Ichalkaranji and
Hatkanangale areas
A significant percentage of foundry units (about 25%) at Kolhapur are exporting

castings. The foundry units cater to wide cater to a wide of end-use sectors, as can be
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Table 1.3 Distribution of foundry units at Rajkot by end-use markets

Oil engines 42%
Automotive/textile 15%
Machine tools 11%
Pumps/ values 7%
Others 25%
seen from the following table units. The majority of cupolas in the cluster are of
conventional type. Divided blast cupola(DBC) can be found in some of the foundry
units. Most of the foundries use low ash coke. A number of foundry units (about40%)
have electric induction furnace, which is used to manufacture graded castings and
duplexing with cupola.
FOUNDRY CLUSTER: RAJKOT:
Rajkot, located in the state of Gujarat, is an important foundry cluster in Western

India. There are about 500 units at Rajkot. The cluster came up mainly to cater to the
casting requirements of the local diesel engine industry. The geographical spread of
the cluster includes Aji Vasahat, Gondal Road and Bhavanagar Road areas.
Majority of the foundry units at Rajkot producers grey iron casting for the domestic
market. A relatively small percentage (about 10%) of the foundry units exports
castings such as electric motor casting etc.
Apart from oil engines, the foundry units at Rajkot cluster caters to a number of other
end-use applications, as can be seen from following table..
Cupola is by far, the predominant melting furnace used by nearly 90% of the foundry
units. Most of the cupolas are of conventional type. A local cupola design, called
‘Rajkot cupola’, is quite popular in cluster. Use of low ash coke is common among the
foundry units. A smaller number of foundry units (about 10%) producing castings for
the automatic industry use electric induction furnace for melting.
Page 25
1.5 KEY PLAYERS IN INDUSTRY:
MARKETS SHARE OF CASTING:
There are over 5k foundry units in India, employing half a million people directly &
indirectly with a combined output of 7mn tpa and generating revenues of ~ Rs150bn.
Around 80% of the foundries fall under small scale units, whereas medium and large
Scale units account for the balance with a share of 10% each. Only the large scale units
are technologically advanced and have International Quality Accreditation.
Geographically the foundries in India are divided into clusters. The major clusters
being Coimbatore, Kolhapur-Belgaum, Rajkot, Jalandar and Kolkata-Hooghly. The
Kolhapur- Belgaum cluster mainly caters to the Automotive Industry while the
Coimbatore cluster is mainly dependant on industrial products such as pumps, valves,
etc.
MRKETSHARE OF INDUSTRY:
MARKETSHARE
SMALL SCALE
MEDIUM SCALE Small and Medium
LARGE SCALE scale have large
amount of market
share as it is to
setup and it is
producing diffrent kind of product ,where as larege scale need huge capital there fore
small scale industry its a good oppurtunity to devlop.
As we can see by graph that more of the market share is by small scale industry
Page 26
1.6 PEST ANALYSIS:
1. Political factors
Page 27
The political factor plays a very important role in context to Foundry Industries in
India. Changes in laws and regulations, taxation requirements (including tax rate
changes) and environmental laws in domestic and foreign jurisdiction, implementation
of VAT influences the business to high extent.
2. Economic factors
The industry is influenced largely toward an increase in the interest rate hikes, a step
taken in order to stabilize the equilibrium of the economic factor of the country. This
industry is affected greatly as it is a capital intensive industry.
3.Social factors
The socio-cultural factor depends upon country to country. In country like India where
there is diverse culture, there is a high influence of the socio-cultural factor in the
industry.
4. Technological factors
New machinery with the better technology has made the product cheaper and of better
standard and technical knowledge gaining from the developed world has made
customers able to get more innovative products. This innovation will have a
competitive edge over the competitors products. With the advent of technology, the
industry is able to produce more quantity and better quality in order to meet the
domestic and international standards and a chance to compete globally
1.7 PORTER’S FIVE FORCE ANALYSIS:
The model of the Five Competitive Forces was developed by Michael E. Porter in his
book ‘Competitive Strategy: Techniques for Analyzing Industries and Competitors’ in
Page 28
1980. Since that time it has become an important tool for analyzing an organizations
industry structure in strategic processes.
Porter has identified five competitive forces that shape every industry and every
market. These forces determine the intensity of competition and hence the profitability
and attractiveness of an industry. The objective of corporate strategy should be to
modify these competitive forces in a way that improves the position of the organization.
Porter’s model supports analysis of the driving forces in an industry. Based on the
information derived from the Five Forces Analysis, management can decide how to
influence or to exploit particular characteristics of their industry.
Page 29
The Five Competitive Forces:
1.Threat of new entrant:
The competition in an industry will be higher. It is easier for other companies to enter
this industry. In such a situation, new entrants could change major determinants of the
market environment at any time. For auto ancillary manufacturing sector there is no
such likely threat of new entrants because many of them in this industry are suppliers
for OEMs and they do not change the manufacturers so easily.
2. Bargaining power of customers:
The bargaining power of customers determines how much customers impose pressure
on margins and volumes. Customers bargaining power is high for auto ancillary
manufacturing sector because of following reason The industry operates with high fixed
costs The customers buy relatively high volumes.
3. Bargaining power of suppliers:
Suppliers are really a matter of concern for this industry. There is high bargaining
power of suppliers. The few reasons are as follows the switching costs from one
supplier to another are high, There are no substitutes for the particular input. In these
situations, this industry often faces a high pressure on margins from their suppliers.
4. Threat of Substitutes:
A threat from substitutes exists if there are alternative products with lower prices of
better performance for the same purpose. They could potentially attract a significant
proportion of market volume and hence reduce the potential sales volume for existing
players.
5. Competitive Rivalry within the industry:
This force describes the intensity of competition between existing players in an

industry. High competitive pressure results in pressure on prices, margins, hence
Page 30
profitability for every single company in the industry. The leaf springs manufacturing
sector is facing a tough competition form many players within the industry who are
now well versed in all the technological and also other factors.
Page 31
CHAPTER 2
Company Profile
2.1 Background and History
2.2 SWOT analysis
2.3 Product at glance
Page 32
CHAPTER 2
2.1 DATAILS ABOUT THE COMPANY
Name of the company : M/S Malnad Alloy Casting Pvt.Ltd.
Regd.office/works Address : 36A, Shimoga-Bhadravathi Indl .Area
Machanahalli -577201
SHIMOGA.
PHONE NO : 91-8182-246141/91-8182-246143
FAX NO : 91-8182-246142
E-MAIL :macpl@sancharnet.in
malnad_1@dataone.in
Contact persons:
Name Designation Phone no
H.C.Raveendranath Managaning Director 91-818 2-246141
Y.V.Madhukar jois Director Commercial 91-8182-246143
PRODUCTS : Alloy steel, Stain steel, Nickel Alloy
Casting to all International standards for

Process pumps, Valves
and General Engineering Industries
C.Ex.R.c.No :AABCM4307JXM001
E.C.C.No : AABCM4307JM001
Page 33
K.S.T.No :803013322DT .01.10.1984
C.S.T.No : 80351335DT.01.10.1984
Permanent A/C NO.Of : AABC-M4-307J
Income Tax
VAT (TIN) No : 2993000519
LOCAL VAT OFFICE : 220-SHIMOGA
BANKERS : M/S STATE BANK OF MYSORE
MAIN BRANCH, B.H.ROAD,
SHIMOGA- 577201
KARNATAKA
INDIA
Page 34
2.3BRIEF HISTORY OF THE COMPANY:-
M/SMALNAD ALLOYS CASTING PVT. LTD., is a modern Alloy steel foundry

geared to manufacture Quality alloy steel, stainless steel and nickel alloys casting to
all international standards for the process pumps , valves and general engineering
industries.
The company is situated at SHIMOGA-BHADRAVATI INDUSTRIAL Area

Machenalli which is 260 kms from Bangalore on National High way 206 and 9kms
away from BHADRAVATI a well known Steel city. The unit is located in 4.5 acres
plot with a Built up area of 45300 sq.feet
The foundry started commercial production of sand casting in the year 1985, and
managed by a team of highly experienced foundry professionals headed by
Sri .H.C.RAVEENDRANATH M.E (Foundry Technology) who has more than 35

years experience in foundry industry under various capacities.
The company is equipped with one number of 1000 kg /1500kgs connected to a power
pack of 450 kw medium frequency induction furnace and one number of 150kg/300kg
connected to power pack of 175 kw medium frequency induction furnace with all
accessories .With this company can produce quality castings weighing from 1kg to
1000kgs single .
The company has adopted 100% no bake process using Australian Make continuous
Mixer both for core making and moulding which results in superior surface finish,
internal soundness and Reliability Company has also installed shell core shooter for
production of small castings with accurate core profiles.
Page 35
The company is equipped with electrically operated batch type heat treatment
furnaces with automatic temperature indicator ,graphically cum controller, graphic
recorder and Thyristor controls for a predetermined heat treatment cycle with
controlling heating
The company has captive generating set of 1375 KVA to take care of complete
power requirement of foundry.
The entire operation of the company right from placement of purchase order for
raw materials and consumable to invoicing of materials manufactured by the
company covering entire process has been computerised .In the process company
has developed good information management system
The company has a good quality set up .Melt chemistry is controlled by Direct
Reading Spectrometer supplied by M /S Spectro Analytical Instruments
,Kleve,Germany.All heats are numbered and test certificates are provided for each
heat .Hundred percent visual inspection is carried out on all castings and
dimensional inspection is done on sample casting .NDT tests like Radiography are
done on first sample castings and thereafter as required by costumers
The company has approval from third party inspection agencies like Engineers
India ltd .The company has been certified as a “WELL-KNOWN FOUNDRY “by
the CENTRAL BOILERS BOARD, New Delhi. The company has supplied
castings under third party inspection agencies like UDHE INDIA, NPC, NTPC,
LLOYDS,IRS ,PDIL etc....
The company’s quality system was awarded ISO 9002 Certificate by RWTUV
GERMANY ,in the year 1995 and subsequently re-certificed as per ISO 9001:2000
in the year 2005 .The company has approval in accordance with AD Merblatt
WO/TRD100 and PED approval by RWTUV ,Germany.
The company has an installed capacity of around 2100 tonnes and at present is
producing around 160tonnes per month .The major part of company’s production
is for the valve industry out of which nearly 40to50% is for ball valves .The
Page 36
company has developed expertise in making quality valve and pump casting in all
grades of Stainless steel like CF-8M (SS316), CF-8(SS304), CF-7M(ALLOY-
20).CF-3(SS 304L),CF-3M(SS 316L),Duplex stainless steel like CD-4M
CU,CD4MCUN,Gr.4A&Gr.5Aetc and Nickel Base Alloy like CW-12MW N-
12MV ,Inconel-600,625,825 etc..
The company is directly exporting casting to Spain, U.K. Netherlands, Australia,

and United States of America .And almost 40% of the company’s produce goes to
100% export oriented unit
LIST OF COUSTMERS
Name of party Place PRODUCT

SINO
Steel/nickel alloy
casting for
1. M/S MOCROFININH VALVES HUBLI BALL VALVES
LTD
2. M/S MICROFINISH PUMPS PVT HUBLI CENTRIFUGAL
LTD PROCESS PUMPS
3. M/S B.D.KENGINEERING INDS HUBLI GATE GLOBE
LTD AND BUTTER
FLY VALVES
4. M/S AUDCVO INDIA LTD CHENNAI BALL VALVES
5. M/S V.K PUMP INDUSTRIES M M NAGAR SAFETY REALSE
PVT LTD VALVES
6. M/S VK PUMP INDUSTRIES NASHIK MEETING
PVT LTD &DOZING PUMPS
7. M/SVITA TECHNOLOGIES PVT BANGLORE TYRE
LTD MACHINERY
COMPONETS
8. M/S CPV ENGINEER PRIVATE HUBLI GATE GLOBE
LTD &CHECK
VALVES
9. M/SWIPRO LIMTED BANGLORE HYDRALIC EYE
ENDS
Page 37
10. M/SFOURESS ENGINEERS HUBLI CENTRIFUGAL

INDIA LTD PROCESS PUMPS
11. M/S LARSEN AND TURBO CHENNAI TYRE MAHINE
LIMITED MANUFACTURE
12. M/S FIHER XOMOX SANMAR BANGLORE HYDRALIC EYE
LIMITED ENDS
13. BHARATH HEAVY TRICHY VALVE
ELETRICALS COMPONETS
14. M/S AUDCO INDIA LIMITED KANCHEEPURAM BALL VALVES
15. M/S UNIKLINGER LTD AHMENDNAGAR PISTON VALVES
100%EOU
SIN NAME OF PARTY PLACE PRODUCT

O
1 TYCO GUDUVANCHEERR BUTTERFLY&BALLVALVE
VALVES&CONTROL Y S
S INDIA LTD
2 FLOWERS HUBLI BALL&PLUG VALVES
MICROFINISH
VALVES PRIVATE
LTD
3 FLOW SERVE BANGLORE GLOBE &BUTTERFLY
MICOFINISH VLALVE TYPE CONTROL
4 ADVANCE VALVES NOIDA DUAL PLATE CHECK
GLOBAL VALVE
5 M/SBRITISH BANGLORE THERMAL PLANT
ENGINES INDIA PVT CASTINGS FOR EPORT
LTD
DIRECT EXPORT
1 ESPESIALIDADES HYDRAS.L SPAIN VALVE

COMPONENYS
2 SPIRAX-SARCO LTD U.K VALVE
COMPONENTS
3 FLOWSERVE AUSTRALIA MACHANICAL
SEALS
4 GEBR PLADDET B.V NETHERLANDS EARTH MOVING
Page 38
EQUIPMENTS
LIST OF MANUFACTURING FACILITIES
SI DESCRIPTION CAPACITY MAKE NO

N
O
1 INDUCTION FURNACE 450 1000KGS 1500 M/S INDUCTOR (I)LTD 1
KW WITH TWO KGS AHMEDABAD
CRUCIBLES
2 INDUCTION FURNACE 300KGS 150KGS M/S INDUCTOTHERM I 1
175KW WITH TWO LTD AHAEDABAD
CRUCIBLES
3 CORE SAND MIXER 150 KGS M/S GANESH QUALITY 2
SYSTEMS
4 CONTINIOUS MIXER 6T/HR M/S DAVCOR ENGG PVT 1

LTD SOUTH AFRICA
5 SAND RECLMATION 10T/HR M/S DAVCOR ENGG PVT 1

PLANT LTD SOUTH AFRICA
6 SHELL CORE SHOOTER 450X600MM DIE M/S SUSHA FOUNDERS 1

UPTO 25 KG AND ENGG PVT LTD
MAX CORE WT SURATH
7 SHOT BLASTING 1000KGS M/S VELMURGANENGRS 1
MACHINE HOOK TYPE COIMBATORE
8 SHOT BLASTING 1000 KGS M/S PATEL FURNACE & 1+1

MACHINE HOOK TYPE FORGING ,VODODRA
9 GRIT BLASTIG MACHINE 500KGS M/SMETALIZING 2

EQUIPMENTS
10 AIR COMPRESSOR EASA 200CF-M M/S CHICAGO 2

50 @7KG/CM^2 PREUMATIC COMPANY
11 E.O.T CRANE 3 M.T M/SCONSOLIDATED 5

HOISTS PVT LTD
Page 39
12 JIB CRANE 2M.T M/SCONSOLIDATED 2

HOISTS PVT LTD
13 WELDING RECTIFIRERS 40KVA M/S I.O.L LIMITED M/S 2+4

ADVANI OERLIKON
14 PEDESTALGRINDING 10 HP M/S SWATI ABRASIVES 1

MACHINE
15 HEAT TREATMENT 1000KGS M/S ELCTROTHREM 1

FURNACE(WITH FURNACE BANGLORE
THYRISOR CONTROL &
GRAPH)
16 HEATTREATMENT 2000KGS M/STHERELEK 1
FURNACE ENGINEERS CHENNAI
17 WOOD WORKING LATHE 2500KGS M/S INDIAD ENGINEERS 1

PVT LTD CHENNAI
18 CONVENTIONAL LATHE 300MM NAGMATI 2

MACHINE
19 CNC TURNING MACHINE 250MM GALAXY MACHINER 1

PVT LTD
20 HYDRO TESTING 600CLASS HYDROTECH 1

MACHINE
LIST OF TESTING EQUIPMENTS:
1 DIRECT READING SPECTO METER FOR - SPECTRO ANALYSIS

ANALYSIS OF IRON BASED NICKEL INSRUMENTS
FACILITY FOR N2 ANALYSIS GERMANY
2 SEMI AUTOMATIC CARBON SULPLUR M/S MADRAS
OPERATUS METULLURGIES
3 METALLURGY MICROSCOPE M/S MADRAS
METULLURGIES
4 BRINALL &ROCK WELL HARDNESS M/S BLUE STAR
Page 40
TESTER LIMITED
5 UNIVERSAL TESTING MACHINE 20MT M/S FUEL
INSTRUNENT
6 IMPACT TESTING MACHINE M/S FUEL
INSTUMENT
7 SAND SEIVE TEST MESH M/S VERSATILE
EQUIPMENT
8 SCRATCH HARDNESS TESTER M/S VERSATILE
EQUIPMENT
9 DIGITAL IMMERSION PYROMETER M/S FYKAYS ENGG
PVT LTD
10 RADIOGRAPHY
11 DYE PENETRANT TESTING FACILITY
12 MEASURING INSTUMENT FOR DIMENSION
CHECK
VISION STATEMENT OF THE COMPANY:
To emerge as a global leader in the supply of the finished cast components,

employing a wide range of materials, with highly committed and socially
responsible employees.
MISSION STATEMENT OF THE COMPANY:
 To meet the casting requirements of the country, using the latest state of
the art technology in a wide range of materials at competitive cost.
 Provide stable employment and develop and highly technical man power
and a wide vendor base.
 Adopt environment friendly technology and create awareness on energy

conversation.
 Serve the immediate community through well fare schemes.
Page 41
SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment. It is the
first stage of planning and helps marketers to focus on key issues. SWOT stands for
Strength, Weaknesses, Opportunities, and Threats. Strength and Weaknesses are the
Internal Factors. Opportunities and Threats are the External Factors.
Strength:
1. The company is financially sound.
2. Target achievements.
3. Easy and timely availability of raw material
4. The company has good experienced office staff.
5. The company has equipped with latest technology.
6. The company has good machines for manufacturing purpose.
7. The company protects employees by giving safety equipments.
Weakness:
1. Lack of education among the workers.
2. Transport facility is not good. The employees have to walk a long way from the
nearest bus stop.
3. The company does not have its own products to sell. It should rely heavily on
customer orders
Opportunities:
1. The company can expand its business in Europe, which is a potential market
for industrial machines.

2. By maintaining its quality of products, the company can enter different foreign
markets.
Page 42
3. Cheap and skilled labour is also acts as an opportunity for the company for
producing quality of goods effectively and more efficiently.

4. Liberal import-export policies framed by the government of India are also an
opportunity for the company in exporting its goods and importing the
necessaries from foreign countries
Threats:
1. Pollution control norms laid by the government are getting stringent.
2. Now a day ‘Industrialization’ is at a slow pace which acts as a threat for the
foundry industry
3. A liberal import/export policy has made the Chinese steel industries to enter
India. With its cheap products they can kill domestic industries.
4. Rising cost of raw materials.
5. Labour intensive.
6. Expensive transportation cost to procure raw materials.
2.5THE PRODUCTS OF THE COMPANY
SAND CASTING:-
Page 43
Sand casting is used to make large & heavy parts, especially of iron, but can also be
made of brass, bronze and aluminium. Molten metal is poured into a mould cavity
formed out of sand (natural or synthetic). Our qualified engineers make SAND
Castings in accordance with your exact specifications. Sand casting is used to
manufacture heavy machinery and industrial tooling industries, including pressure-
containing components. Materials used in the manufacturing include Gray Iron,
Ductile Iron, Aluminium Alloy, Brass Alloy, Alloy Steel, Stainless Steel, etc.
DIE CASTING
In die casting, molten metal is injected into a mold at a high pressure. The pressure
can range from about 1,400 psi to as high as 30,000 psi. By pressurizing the mold, the
cast object will be more uniform and will display an attractive finish. In many cases
very little or no post-casting machining is needed to complete the item. Pressure
Page 44
molding also provides for precise dimensional accuracy that is critical for parts used
in products with interchangeable parts.
Aluminum, Zinc and Copper alloys are the materials predominantly used in die-
casting.
Die-casting can be done using a cold chamber or hot chamber process.
Die-c In a cold chamber process, the molten metal is ladled into the cold chamber for
each shot. There is less time exposure of the melt to the plunger walls or the plunger.
This is particularly useful for metals such as Aluminum, and Copper (and its alloys)
that alloy easily with Iron at the higher temperatures.
In a hot chamber process the pressure chamber is connected to the die cavity is
immersed permanently in the molten metal. The inlet port of the pressurizing cylinder
is uncovered as the plunger moves to the open (unpressurized) position. This allows a
new charge of molten metal to fill the cavity and thus can fill the cavity faster than the
cold chamber process. The hot chamber process is used for metals of low melting
point and high fluidity such as tin, zinc, and lead that tend not to alloy easily with steel
at their melt temperatures.
Die casting molds (called dies in the industry) tend to be expensive as they are made
from hardened steel-also the cycle time for building these tend .
INVESTMENT CASTING:
Page 45
Investment casting (known as lost-wax casting in art) is a process that has been
practiced for thousands of years, with the lost-wax process being one of the oldest
known metal forming techniques. From 5000 years ago, when bees wax formed the
pattern, to today’s high technology waxes, refractory materials and specialist alloys,
the castings, ensure high-quality components are produced with the key benefits of
accuracy, repeatability, versatility and integrity. Investment casting derives its name
from the fact that the pattern is invested, or surrounded, with a refractory material.
The wax patterns require extreme care for they are not strong enough to withstand
forces encountered during the mold making. One advantage of investment casting it
that the wax can be reused.
The process is suitable for repeatable production of net shape components, from a
variety of different metals and high performance alloys. Although generally used for
small castings, this process has been used to produce complete aircraft door frames,
with steel castings of up to 300 kg and aluminum castings of up to 30 kg. Compared
to other casting processes such as die casting or sand casting, it can be an expensive
process, however the components that can be produced using investment casting can
incorporate intricate contours, and in most cases the components are cast near net
shape, so requiring little or no rework once cast.
PRODUCTS & MARKETS
1 .BALL VALVE COMPONENTS
Page 46
2. GATE CHECK VALVE COMPONENTS

3. BUTTERFLY VALVE COMPONENTS
4. SUGAR MILL COMPONENTS
5. PUMP COMPONENTS
6. SAFETY RELEASE
7. HIGH PRESSURE HYDRAULLIC
8CASTING FOR EXPORTS
This CBI market survey discusses the following highlights for the EU market for
pumps and pump castings:
Demand for pumps saw a strong increase in 2005 and 2006, reaching €8.8 billion. The
EU demand is expected to grow a further 2-3% per year in 2007-2009. It is estimated
that the water and sewerage industries and the oil and chemical industries together
account for 40% of the pump market.
European pump production showed good results, also indicated by the large trade
surplus and the good growth of exports. However, according to industry specialists,
several companies are expected to relocate production to low-wage locations within
the next 5 years. This process is only just beginning and will intensify in the next few
years.
EU import value of pumps increased by 7.3% per year since 2002, reaching €10.6
billion in 2006. The share of intra-EU imports increased from 73% to 79% and the
share of imports from developing countries (DCs) also increased (from 2.9% to 3.8%).
This was at the cost of the share of EU imports from outside the EU (down from 24%
to 16%).
As in 2002, China was the most important supplier to all EU countries. Compared to
2002, DCs that showed good growth beside China were Azerbaijan, Tunisia, China,
Pakistan, Turkey, India, Thailand, Brazil and South Africa.
The best opportunities arise from supplying pump castings to EU pump
manufacturers. Additionally, DC exporters have some opportunities in the pump
Page 47
market, starting in the market segments with requirements which are relatively easy to
meet, and provided the quality meets the demands of the EU-customers.
Standard pumps have small margins, 3-5% for the DC exporter and 2-3% for the EU
importer. Contrary to that, margins for special pumps are far higher.
This survey aims to provide developing-country exporters of pump castings with

product-specific market information related to gaining access to the EU market(s). By
focusing on the EU market(s) for one group of products, this document provides
additional in-depth information, complementary to the more general information and
data provided in the CBI market survey ‘The castings and forgings market in the EU’
2.6 Analysis of the Organization Using Balance Score Card Approach:
The balance score card approach deals with four aspects. Using balanced score
approach MALNAD Alloy Castings Pvt. Ltd. Links its vision to all the four factors
and does its strategies very effectively and accordingly it organizes and improves its
activities very effectively.
The Financial Perspective:
They follow very effective financial strategies by maintaining proper reserves in

banks, allocating funds to different units in a suitable proportions etc. To be stable
finance and allocation of funds to different level function as per the requirements.
The Customer Perspective:
They satisfy their customers very effectively and cater the customer requirements very
effectively. They set goals according to national and international standards
accordingly they take effective measures to achieve them. As this is the company of
alloy castings it tries to maintain the highest standards f satisfaction of their customers
by offering the best services as per the customer requirements.
The Process Perspective:
Page 48
In the process perspective also the company has a very specific goals production
according to the specification given by the costumers, identifying the risk in the
process of production, customer and region.
The innovation and learning perspective:
In this area, they are examining measures relating to employee development, retention
and skills improvement and value creation, by using the people resources most
effectively.
Page 49
CHAPTER 3:
ORGANISATION DESIGN AND STRUCTURE.

3.1 A REVIEW OF CHOICES IN DESIGN
3.2 CRITICAL REVIEW OF THE STRUCTURE
3.3 ORGANISATION STRUCTURE
Page 50
CHAPTER 3
3.1 Organizational Structure
A REVIEW OF CHOICES IN DESIGN:
An organizational structure is a mostly hierarchical concept of subordination of

entities that collaborate and contribute to serve one common aim.
Organizations are a number of clustered entities. The structure of an organization is

usually set up in one of a variety of styles, dependent on their objectives and
ambience. The structure of an organization will determine the modes in which it shall
operate and will perform.
The organizational design of a company reflects its efforts to respond to changes,

integrate new elements, ensure collaboration, and allow flexibility.
Managers must make choices about how to group people together to perform their
work. Five common approaches help managers determine departmental groupings
(grouping of positions into departments).
The five structures are basic organizational structures, which are then adapted to
an organization's needs:
1. Functional Structures
Functional structure groups positions into work units based on similar activities,
skills, expertise, and resources. Production, marketing, finance, and human
resources are common groupings within a functional structure.
Page 51
2. Divisional structure
Divisional structure groups departments according to organizational outputs — by
product type, customer, or geography.
3. Matrix Structure
Matrix structure combines functional specialization with the focus of divisional

structure. This structure uses permanent cross-functional teams to integrate
functional expertise with a divisional focus. Employees in a matrix structure
belong to at least two formal groups at the same time — a functional group and a
product, program, or project team.
• Weak/Functional Matrix: A project manager with only limited authority is

assigned to oversee the cross- functional aspects of the project. The functional
managers maintain control over their resources and project areas.
• Balanced/Functional Matrix: A project manager is assigned to oversee the project.
Power is shared equally between the project manager and the functional mangers.
It brings the best aspects of functional and projectized organizations. However,
this is the most difficult system to maintain as the sharing power is delicate
proposition.
• Strong/Project Matrix: A project manager is primarily responsible for the project.
Functional managers provide technical expertise and assign resources as needed.
Among these matrixes, there is no best format, always depends on organization’s

purpose and function.
4. Team structure:
• Team structure organizes separate functions into a group based on one overall
objective The intent is to break down functional barriers among departments and
create a more effective relationship for solving ongoing problems.
Page 52
Network structure relies on other organizations to perform critical

functions on a contractual basis. That is, managers can contract out specific work
to specialists
5. HORIZONTAL STRUCTURE:
The most recent approach to organisation is the horizontal structure which organises
employees around core process are brought together so that they can easily
communicate and coordinate their efforts and provide valve directly to customers .The
horizontal structure virtually eliminates both the vertical hierarchy and old
department mental boundries both within the organization are striving to reduce
boundaries both within the organization and with other companies as described in this
chapter’s book mark .The horizontal structure is largely a response to the profound
changes that have occurred in the work place
The present organization structure is functional structures in shape. It is used in many

companies, Here each subordinates should receive the order and submit report to their
respective heads. . It is easily understand by all the members in the organization. Then
all the department heads will report to one person that is managing director. This
structure made comfort to work under their officer
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3.2ORGANISAT
3.3 CRITICAL REVIEW OF THE STRUCTURE:
Page 54
• There is no unity in command.
• Smooth flow of policies and procedures.
• Higher percentage of control over the subordinates.
• Lack of discipline.
• Work done according to their convenience.
• To many people are reporting to Director commercial
• The Administration officer and Manager office should be made to one

group
• All the office people can be reporting to Managing office
• Purchase &Stores can be one department
Page 55
CHAPTER 4
A STUDY OF KEY BUSINESS LEVEL FUNCTIONS AND PROCESS:
4.1 THE MARKETING FUNCTION
4.2 THE OPERATIONS AND QUALITY FUNCTION.
4.3 THE FINANCE FUNCTION.
4.4 THE HUMAN RESOURCE FUNCTION.
Page 56
4.1 MARKETING DEPARTMENT:
STRUCTURE OF MARKETING DEPARTMENT
Director Marketing
AGM- Sales
Sales Officer
Sales Assistant
Main functions of department are:
Generation of enquiries – sales manager enquires about a

particular product from the director of marketing & AGM, they
discussed each other about how to improve the sales & how to
satisfy the customers through various sales activities.
i. Submission of commercial offers – To attract the customers, the
organization will provide some commercial offers like gifts,

discounts, coupons etc..,
ii. Order Processing – It involves providing some extra benefits to
the customers (such as door-to-door delivery, through sales

executives)
Page 57
iii. Customer satisfaction- The main intension of marketing

department is to satisfy the customer’s needs because customers
are the real beneficial of the product.
MALNAD ALLOYS are having good contacts outside. So they easily attract
the customers to buy their products. And most of the products will be sent to
the abroad India. They produce the goods as per the requirement of the
customers. And that is one of the main policies that MALNAD ALLOYS are
doing from the beginning. And also they bring the new products to the market
which, they give as an offer to there customers. And by taking that offer the
customers will place the similar type of the order next time.
And about the pricing strategy is about setting corporate goals, defining
steps needed to achieve these goals followed by systematic action and
allocation of resources to achieve corporate goals. There is a particular line
segment with stiff competition all over the world. Therefore the Pricing
strategy is applied in a company only when there is a problem of higher
execution.
And the transportation of the goods will be carried out by the Ships. And if
there is any urgency from the customer’s side, they will send the goods by
Flights. 95% of the goods will be sent it through the Ships only. And they will
not give any advertise to their products, but they will go for the outside
Exhibition. They have participated more number of Exhibition’s across the
world. And they will participate also in the Domestic Exhibition’s, and so on…
4.2 OPERATION AND QUALITY FUNCTIONS.
Page 58
Customer
Marketing to receive Review

enquiry/ order
customer
enquiry/order
Regret if not
Accept/ Submit order
possible
/quotation
Receive order and confirm

the order
Execution Process
Feedback Manufacturin
g
Materials
Foundry
• Support
service
• Acceptance
Centrifug Die Hand
• Release of
al Casting Moulding items
• Calibration
• Maintenance
Quality
Machine Shop • HRD
Checking
Storage
Final Product OK Packing
and
Inspection
Delivery
Feed Back and Customer

Complaints
STUDY OF VARIOUS DEPARTMENTS:
1.PURCHASE DEPARTMENT:
Page 59
Director
AGM-
Purchase
Purchase Store
Deputy Manager
Manager
FUNCTIONS OF PURCHASE DEPARTMENT
 Identification of suppliers
 Evaluation and assessment of suppliers
 Assessment of suppliers on trail basis
 Supplier induction programme
 Reassessment of supplier on the basis of quality and
delivery of suppliers
 Supplier quality management system
 Planning the requirement
 Raw material planning for the month
 Sending the weekly Stock Report to the Planning
Department
 Placing of Purchase order to the suppliers
THE MAIN RAW MATERIALS PURCHASED ARE:
DIRECT RAW MATERIALS
Page 60
STAINLESS STEEL SCRAP
PURE NICKEL
Ferro Alloys
Scrap etc…
INDIRECT RAW MATERIALS
Phynolic Resin
- It is binding Material
- Used for moulds
MAGANESE
Catalyst etc…
The duty and process of purchase department is of if there is no problem with

the final product then it is sold to the customer for payments. If the products are
found with any problem then it is again sent to the melting process until it
becomes a perfect one. Managing Director has authorized the director finance
and admin to look after about the all transactions related to purchase and other
department. Store Manager looks after all the requirement of the production
with respect to raw material. The Store manager has to update information
about the stock and daily report is maintained by the manager and it is updated
by the AGM. In purchase department raw materials are purchased as per the
planning department. The planning department plans for the raw material
requirement for producing product.
Regular meeting are held once in every month and all the board members meet
when there is necessary for meeting for any process in between the month. In
the meeting requirement of raw material used are discussed and a quotation of
raw material based on requirements are obtained from the supplier. Suppliers
provide a sample and give trial order of raw material to the purchase
department, if they get satisfied with the raw material which is supplied by the
Page 61
supplier. They will order in bulk and issue a purchase order with delivery
schedule. If the raw material is not satisfactory, material is given back and the
purchase order is cancelled.
STORES
The stores will unload the raw material with TEST CERTIFICATE and place it
in proper location on FIFO basis with identification and coding. Housing
keeping is properly maintained. No single equipment goes outside the stores
without purchase order. After unloading of raw material the sample will be sent
for analysis. The analysis report will be matched with the test certificate and
report will be sent to Purchase Department.
2. PLANNING DEPARTMENT
A customer enquiry is received from the planning department with raw

material specification and product drawing. Planning department will quote the
rate and the quotation is sent to the customer along with the terms and
conditions of payments. After their verification the customer will place
purchase order. Such purchase orders will be received from various companies
at the same time. With the receipt of such purchase orders the actual work of
planning department begins. The department prepares monthly and daily plan
based on total orders. The melting and machining capacity is taken into
consideration while preparing such plans. The requirement of raw material and
packing materials is also planned. This plan is placed before the meeting which
is attended by the M.D. directors and all the heads of the departments of the
company. Here the priority of companies to whom the supply is to be made is
drawn based on their terms of payments.
3. PRODUCTION DEPARTMENT:
Page 62
STRUCTURE OF PLANNING AND MANUFACTURING

DEPARTMENT
Director
Manufact
uring
GM
Planning
AGM
Productio
n
Engineer
Machine
Shop
Sr. Manager
Foundry
Manager
Maintenance
(Electrical)
Superviso
r
Page 63
FUNCTION
1. Daily planning
2. Hand moulding
3. pattern maintain
4. pattern and sampling machining
5. mechanical maintained
6. electrical maintained
Under production once the sand moulds are ready metals which are poured in
it, not withstanding with these the company makes inspection of the products in
three parameters.
 Physical Property
 Chemical Composition (which is done in on line)
 Visual Inspection of the product
PRODUCTION PROCESS
Page 64
RAW
MATERIALS
AND ALLOYES
MELTING
CASTING
ROUGH
MACHINING
STRESS
RELIEVING
FINAL
INSPECTION
CLEANING
PACKING
DELIVARY
The AGM- Production and Planning department will take all the decisions
regarding the Planning of Production that is what to produce? Within what time
the production of the particular product to be completed? How many shifts?
Which furnace is to be used? Daily planning s made for next day work.
The main function of the department is as follows
Page 65
• Receiving requirement from the customer

• Planning the production for the month
• Commitment is received from the customer.
QUALITY ASSURANCE:
“Quality, a way of life”
Quality has always been the key differentiator at BAC. The foundry complies
with all sections of the specification to produce a product that meets or exceeds
customer expectation.continuous quality improvement coupled with the aggressive
caost reduction sets us apart from competition which is driving force for our continued
growth and success . All our process are subject to stringent test and are constantly
audit and test.
Quality policy:
The purpose of our qualityy policy is to ensure the manufacture and supply products
of high quality to the complete satisfaction of each and every customers and there by
achieve leadership in the market as a repuated and realiable supplier. To achieve
which company shall continousuly persue the following objectives.
Quality objectives:
 Strive continuously towards making products right first time every time.
 Train and mativate employees for continuous improvement of quality and
productivity.
 Develop lasting relationship with suppliers and customers through continuous
improvement of quality
 Strive towards making the work eniveronment safe and environment frienly.
 Strive towards reducing production cast through waste management.
 Strive towards increasing of exports by next 10%
Page 66
 Upgrade the system in response to changes in technology to suit the changing

needs of customer.
 Measures the achievements of thes objectives and progress towards attaining
excellence in manufacturing.
QUALITY MANAGEMENT FLOW CHART
General
Manager
Manager- QA
Chief Chemist
Lab Assistance
Helpers Helpers
The main function of this department is to check the raw materials against the
copy of the test report sent by purchase department. This analysis will be done by the
chemical laboratory. The report of analysis is recorded in the “Incoming Raw material
Inspection Report”. The actual result is recorded with remarks and sent back to
Purchase Department. The Department tests the raw material, if it contains the
required composition; it is then marked as O.K.
Another core function of this department is to check the combination of the different
alloys present in the specimen sample sent by the manufacturing department. By using
Page 67
“Spectro-Analyser” the department checks the combination of the different alloys

according to the specification of the customer. The report is sent to the manufacturing
department. The specimen sample sent to this department usually contains slightly less
% of required alloy which will be detected here and corrected. The durability of the
liner is dependent on the work of this department. Based on this report the
manufacturing of the final product i.e., liners takes place. Once the manufacturing is
done a sample (test bar) is sent back to this department to test the durability. This is
done by using “Tensile” machine. It should resist load of minimum 3000 tons. Even
this is done in accordance to the specification given by the customer.
Packing is done for the market requirement according to the Packing commodity Act,
The following are essentials on packing
 Manufacturing date
 Address
 Email
 M.R.P
 Quantity
 Packing date
Page 68
4.3FINANCE FUNCTIONS:
Director
Finance
AGM-
Accountants
Head Cashier Office

Accountants
As for as finance is concerned the company is maintaining House Keeping

Policy i.e. “A place for everything in its place” The company follows
Consortium Banking System. It means acquiring the financial assistance from
more than one bank. For effective and continuous working of organization, the
main thing, which is required, is money. Managing the available monetary
resources is the primary function of any organization. To carry out this function
the finance department came into existence.
Inventory Management:
Inventories constitute the most significant part of current assets of a majority of

companies in India. Inventories are stock of the product a company is
manufacturing for sale and components that make up the product. The various
forms in which inventories exist in a manufacturing company are raw
materials, work in progress, and finished goods. A manufacturing firm will
have substantially high level of all the three kinds of inventories. While retail
Page 69
or wholesale firm will have a very high level of finished goods, inventories and
no raw material and work in progress inventory.
MALNAD ALLOYS has implemented only the “first-in first-out” method of

inventory control technique, which is popularly known as FIFO method. In this
method, raw materials, which bought first, will be sent to the production
department first.
Cost of Production:
The following items determine the cost of production of the product:
 Price of raw materials

 Labour costs
 Other production costs
 Market condition.
Some other important points of Finance department:
 Creditor’s payment- 30days for local payment, and 45 days for

outside.
 20% bonus for labor yearly.
 Central excise, Tax:16%
 VAT: 4% on purchase, and 12.5% on sales.
 Service Tax:12.36%
 Rent service tax: 12.36%
 The company will not get any subsidies.
 For exporting the products there will be no tax.
 For the directors Dividend is 100%.
Page 70
SHARE CAPITAL
Initial investment of rupees 50lakhs
TERM LOANS
• Long term loans and short term loans

• STATEE BANK OF MYSORE has given loan to MAPCL and they
are paying installments monthly
FIXED ASSESTS
Furniture , building, machinery, vehicles and land. Total fixed assets less
deprecation is worth Rs 6crores
DEBTORS
The company has practice of credit sales to all of their customers
RECORD MAINTENANCE
MACPL uses tally software package for record maintenance, company

maintains sales accounts, purchase accounts, bank accounts, debit note,
credit note.
AUDITING
The company will do internal audit every month but the final audit is done
once in a year to know the financial policy of the company to pay the tax.
Page 71
TAX
• Paying Rs95 lakhs as tax
FUNCTIONS OF FINANCE DEPARTMENT AT PAC:
 Cash management
 Financial accounting
 Cost accounting
 Tax accounting
 Management accounting
 Capital budgeting
Financial Highlights for the year 2007-08
• Turnover of the Company: Domestic – Rs. 47.15 crore
Exports - Rs. 10.75 crore
• Working Capital: Rs. 10.00 crore
• Total Manufacturing Expenses: Rs. 4400 crore
• Profit for the year: Rs. 1400 crore
• Growth Achieved: 15% (Target: 12%)
Page 72
4.4. Human Resource Department:
Director
Administration
HR manager/
Welfare
Officer
Clerk cum
Steno.
The H.R. manager has to maintain daily planning of labour.Production department’s

requirements are taken into consideration and fulfill to the maximum extent. All the
decisions making parameters are discussed with the Director of Finance and Admin
and final decision is made and approval is sought from the Managing Director.
The function of HR department is to check whether the worker is working as per the
schedule and instruction or not. If they need any worker or vacancy in the
organization, the company will call for vacancy post and candidate is recruited and
selected by the Company. The candidate is trained as per the work allotment, the
candidate behavior is observed and work evaluation is done.
The selection, training and evaluation procedure is as follows:
• Analysis the vacancy

• Planning to recruit the candidate
Page 73
• Recruitment of the candidate

• Selection of the candidate
• Placement
• Induct on and orientation
• Job allocation
• Work evaluation
• Training to candidate
SOURCES OF RECRUITMENT
This company considers both internal and external sources for recruitment. Internal
sources include the employees who are already on the payroll. Whenever any vacancy
occurs, somebody within the organization with necessary qualification is promoted to
that job. External sources are obtained by giving advertisements in state and local
newspapers.
After identifying the candidates and stimulating them to apply for the job, it takes all
necessary steps for the completion of recruitment. The employee safety and
disciplinary aspects are also handled by the HR Every worker in the production
department gets safety equipment like goggles, shoes. Similarly the responsibility of
providing uniforms for the workers is looked after by the department. Uniforms are
provided according to their grades.
1. Grey for supervisors
2. Dark blue for workers
The allotment of shifts is also handled by the department.
In a day, the company works in three shifts,
From 7.00am to 3.pm - I shift
From 3.00 pm 11.00pm - II shift
From 11pm to 7am - III shift
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Apart from this, the company also works in one general shift from 9..30AM to
6.PM .After recruitment; every new employee is trained on job. Along with other
responsibility training is also handled by the department.
The format given below is issued by H R department to all the sections once in 6
months. The various training needs pertaining to the department is specified in the
format given. When the format is observed the following points can be noted.
 Training required on subject

 Type of training : On Job/ Class room training by internal
/external faculty/ others
 Name of the faculty suggested
 Venue suggested
 Period of training suggested
 Brief note on the expectation.( Results from Training)
ADMINISTRATION AND WELFARE
PURPOSE
To create a conducive working atmosphere to carry out a day to day activities

in company which statutory requirements.
OBJECTIVES
PROVIDE BETTER SERVICE AND MAINTAIN
 Update records.
 Accounts and finance.
 Competence and awareness training.
 Product quality system.
 To perform task affectively.
Page 75
Leaves:
Earned leaves: Eligible for 1 day earned leave for every 30 days of work in the
calendar year
Sick leave: Eligible for 8 days of sick leaves in a calendar year.
Casual leave: Eligible for 8 days of casual leave in a calendar year.
Optional leave: Eligible for 2 days of optional leaves in a calendar year.
Retirement benefits:
An employee after attaining 58 years retires from service. An option of

voluntary retirement is given to employees after attaining the age of 55 years.
At the time of retirement the employee is provided with the below mentioned
benefits:
 Gratuity
 Superannuation
 Provision fund
 Leave encashment
 EPF pension.
Safety policy:
Employees entering in the plant should wear safety shoes and safety goggles.
The employees working in the shop floor has to abide by the rules set aside.
The rules are as follows:
Page 76
 Follow supervisor’s instructions

 Wear safety goggles and safety gloves and helmet
 Do not meddle with machines
.
The company’s objective of protecting the health and safety of all its
employees is achieved through clearly defined policies, procedures and actions
which generate an environment where everyone understands. Their
responsibilities for health and safety at work.
Enterprise resource planning:
The initials ERP originated as an extension of MRP (material requirements

planning; later manufacturing resource planning) and CIM (Computer Integrated
Manufacturing). It was introduced by research and analysis firm Gartner. ERP
systems now attempt to cover all basic functions of an enterprise, regardless of the
organization's business or charter. Non-manufacturing businesses, non-profit
organizations and governments now all use ERP systems.
Enterprise resource planning is an enterprise-wide information system designed to

coordinate all the resources, information, and activities needed to complete
business processes such as order fulfillment or billing
An ERP system supports most of the business system that maintains in a single
database the data needed for a variety of business functions such as
Manufacturing, Supply Chain Management, Financials, Projects, Human
Resources and Customer Relationship Management.
Page 77
An ERP system is based on a common database and a modular software design.

The common database can allow every department of a business to store and
retrieve information in real-time. The information should be reliable, accessible,
and easily shared. The modular software design should mean a business can select
the modules they need, mix and match modules from different vendors, and add
new modules of their own to improve business performance.
Ideally, the data for the various business functions are integrated. In practice the
ERP system may comprise a set of discrete applications, each maintaining a
discrete data store within one physical database.
Ideally, ERP delivers a single database that contains all data for the software
modules, which would include:
Manufacturing
Engineering, Bills of Material, Scheduling, Capacity, Workflow

Management, Quality Control, Cost Management, Manufacturing
Process, Manufacturing Projects, Manufacturing Flow
Supply Chain Management
Order to cash, Inventory, Order Entry, Purchasing, Product Configurator,

Supply Chain Planning, Supplier Scheduling, Inspection of goods, Claim
Processing, Commission Calculation
Financials
General Ledger, Cash Management, Accounts Payable, Accounts

Receivable, Fixed Assets
Projects
Page 78
Costing, Billing, Time and Expense, Activity Management
Human Resources
Human Resources, Payroll, Training, Time & Attendance, Rostering,

Benefits .
Customer Relationship Management
Sales and Marketing, Commissions, Service, Customer Contact and Call

Center support
ERP is a good concept which will make company to be more competitive in the
market and also help for cost reduction and helps to improve quality but the
company is not using this concept
SUPPLY CHAIN MANAGEMENT:
The definition one American professional association put forward is that Supply
Chain Management encompasses the planning and management of all activities
involved in sourcing, procurement, conversion, and logistics management
activities. Importantly, it also includes coordination and collaboration with
channel partners, which can be suppliers, intermediaries, third-party service
providers, and customers. In essence, Supply Chain Management integrates
supply and demand management within and across companies. More recently,
the loosely coupled, self-organizing network of businesses that cooperates to
provide product and service offerings has been called the Extended Enterprise
Page 79
Functions:
Supply chain management is a cross-functional approach to manage the

movement of raw materials into an organization, certain aspects of the internal
processing of materials into finished goods, and then the movement of finished
goods out of the organization toward the end-consumer. As organizations strive
to focus on core competencies and becoming more flexible, they have reduced
their ownership of raw materials sources and distribution channels. These
functions are increasingly being outsourced to other entities that can perform
the activities better or more cost effectively. The effect is to increase the number
of organizations involved in satisfying customer demand, while reducing
management control of daily logistics operations. Less control and more supply
chain partners led to the creation of supply chain management concepts. The
purpose of supply chain management is to improve trust and collaboration
among supply chain partners, thus improving inventory visibility and improving
inventory velocity.
Several models have been proposed for understanding the activities required to
manage material movements across organizational and functional boundaries.
SCOR is a supply chain management model promoted by the Supply Chain
Management Council. Another model is the SCM Model proposed by the
Global Supply Chain Forum (GSCF). Supply chain activities can be grouped
into strategic, tactical, and operational levels of activities.
Strategic:
• Strategic network optimization, including the number, location, and size

of warehouses, distribution centers and facilities.
• Strategic partnership with suppliers, distributors, and customers, creating
communication channels for critical information and operational
Page 80
improvements such as cross docking, direct shipping, and third-party

logistics.
• Product design coordination, so that new and existing products can be
optimally integrated into the supply chain, load management
• Information Technology infrastructure, to support supply chain
operations.
• Where-to-make and what-to-make-or-buy decisions
• Aligning overall organizational strategy with supply strategy.
Tactical:
• Sourcing contracts and other purchasing decisions.

• Production decisions, including contracting, scheduling, and planning
process definition.
• Inventory decisions, including quantity, location, and quality of
inventory.
• Transportation strategy, including frequency, routes, and contracting.
• Benchmarking of all operations against competitors and implementation
of best practices throughout the enterprise.
• Milestone payments
• Focus on customer demand.
Operational
• Daily production and distribution planning, including all nodes in the

supply chain.
• Production scheduling for each manufacturing facility in the supply chain
(minute by minute).
• Demand planning and forecasting, coordinating the demand forecast of
all customers and sharing the forecast with all suppliers.
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• Sourcing planning, including current inventory and forecast demand, in

collaboration with all suppliers.
• Inbound operations, including transportation from suppliers and receiving
inventory.
• Production operations, including the consumption of materials and flow
of finished goods.
• Outbound operations, including all fulfilment activities and transportation
to customers.
• Order promising, accounting for all constraints in the supply chain,
including all suppliers, manufacturing facilities, distribution centers, and
other customers...
Customer relationship management:
Customer relationship management (CRM) is a term applied to processes

implemented by a company to handle its contact with its customers. CRM
software is used to support these processes, storing information on current and
prospective customers. Information in the system can be accessed and entered
by employees in different departments, such as sales, marketing, customer
service, training, professional development, performance management, human
resource development, and compensation. Details on any customer contacts can
also be stored in the system. The rationale behind this approach is to improve
services provided directly to customers and to use the information in the system
for targeted marketing and sales purposes.
While the term is generally used to refer to a software-based approach to

handling customer relationships, most CRM software vendors stress that a
successful CRM strategy requires a holistic approach. CRM initiatives often fail
Page 82
because implementation was limited to software installation without providing

the appropriate motivations for employees to learn, provide input, and take full
advantage of the information systems.
Findings:
From the above study, following findings can be drawn:
• The Alloy industry is growing and there is good future for the industry.
• The less cost and skilled labour which is available in India is a favorable
factor to Indian industry.
• The products produced in the company are of good quality and customers
are satisfied with the products
• The companies saved money by cutting running costs such as those for
energy, metal, sand and waste disposal
• Different marketing strategy adopted for both domestic and international
market.
• There is a good relationship maintained between company and the
employees.
• Quality policy board is put in all areas of the company so that it reminds
the workers that what the company actually wants. The boards were also
in Kannada so that every worker should know about it.
Page 83
• The total sales both in domestic market and export market of the
company are increasing at an average of rate 3% every year compared to
last years.
• Attrition rate is very less.
• Company usually doesn’t give discount. But when raw- material cost
decreases the customers demand for some discount. At that time it has to
give some amount of discount.
Conclusion:
From the study it is clear that the ALLOY INDUSTRY in India has good
opportunity. The industry is booming and the factors like the skilled labour,
ability to sell in the export markets, with the vast and diversified domestic
market it can able to grow faster. Though the industry has certain drawbacks it
can sustain in the market. The government should assist the industry to have its
own deposits in abroad to have good supply of the products.
MALNAD ALLOY has adopted good marketing strategy for export and
domestic market. The prices of the product have to be reduced in order to
increase sales. The manufacturing cost should be reduced by adopting new
technologies. The company has good diversifying into export business. In
regard to small sector manufacturers, the government should take good
measures to safe guard the industry.
Page 84
To conclude with this study, I hope the MALNAD ALLOY CASTING PVT
LIMITED will sustain and shows good performance in the Foundry Industry.
Thus with best wishes to the industry people who involved within it, I put an
end to the study.
Page 85

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MALNAD ALLOYS PVT LTD

Submitted in partial fulfillment of the requirements of

Bangalore University for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

UNDER THE GUIDANCE Prof. Aloysius Edward J

Kristu Jayanti College of Management and Technology

K.Narayanapura, Kothanur P.O.

This is to certify that this internship study titled “AN ORGANIZATIONAL

Prof. Aloysius Edward J Dr. Pious Thomas

Internal Guide Coordinator (MBA)

I,SUHAS.A do hereby declare that this report titled “AN

I also declare that this project “Organizational Study” is the

So it is my duty to acknowledge gratefulness to several people who helped me

I express my deep sense of gratitude to Mr. MADHUKAR JOIS, MALNAD

I express my gratitude to Prof Prof. Aloysius Edward J OF KRISTU JAYANTI

CHAPTER1: INDUSTRY PROFILE

As a part of academic curriculum I did my internship project “A study of MALNAD alloys

M/SMALNAD ALLOYS CASTING PVT. LTD., is a modern Alloy steel foundry

The company is situated at SHIMOGA-BHADRAVATI INDUSTRIAL Area with an

Sri .H.C.RAVEENDRANATH M.E (Foundry Technology) who has more than 35

Highly ambitious directors, dedicated employees and satisfied customers have

1.2 Research methodology

1.3 Industry profile & Global scenario

BACKGROUND AND DEVELOPMENT:

1.3 GLOBAL SCENARIO :

As an indication of the decline of this industry, government statisticians classify

Salient Features of Selected Countries

3) Facades at the School of Occupational and Physiotherapy in South Hamton, UK used

SOME MAJOR PALYERS OF ALLOY CASTING:

3. Japan--Japan's casting industry experienced an increase in casting shipments for only

8. Brazil--Brazil's shipments gained in '03 by 14% to 2.25 million tons.

1.4The Indian Scenario

Induction of vacuum melting technology to produce vacuum alloys should be done.

In future collaboration arrangements, if any, buy back arrangement, provision for

FOUNDRIES CLUSTRES IN INDIA:

FOUNDRY CLUSTER: COIMBATORE

Coimbatore, located in state of Tamil Nadu, is an important foundry cluster in Southern

FOUNDRY CLUSTER: BATALA AND JALANDHAR

Table 1.2 Distribution of foundry units at Batala and Jalandhar by end-use

FOUNDRY CKUSTER: KOLHAPUR

Kolhapur, located in the state of Maharashtra, is an important foundry cluster for

A significant percentage of foundry units (about 25%) at Kolhapur are exporting

Table 1.3 Distribution of foundry units at Rajkot by end-use markets

FOUNDRY CLUSTER: RAJKOT:

Rajkot, located in the state of Gujarat, is an important foundry cluster in Western

1.5 KEY PLAYERS IN INDUSTRY:

MARKETS SHARE OF CASTING:

1.6 PEST ANALYSIS:

1.7 PORTER’S FIVE FORCE ANALYSIS:

The Five Competitive Forces:

1.Threat of new entrant:

2. Bargaining power of customers:

3. Bargaining power of suppliers:

5. Competitive Rivalry within the industry:

This force describes the intensity of competition between existing players in an

2.1 DATAILS ABOUT THE COMPANY

Name of the company : M/S Malnad Alloy Casting Pvt.Ltd.

Regd.office/works Address : 36A, Shimoga-Bhadravathi Indl .Area

Name Designation Phone no

H.C.Raveendranath Managaning Director 91-818 2-246141

Y.V.Madhukar jois Director Commercial 91-8182-246143

PRODUCTS : Alloy steel, Stain steel, Nickel Alloy

Casting to all International standards for