PREPARED BY:

YEAR :

CLASS : TY B.B.A

ROLL NO : 122

SEAT NO :

SUBMITTED TO

SAURASHTRA UNIVERSITY, RAJKOT.

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COMPANY’S CERTIFICATE

-1-
COLLEGE CERTIFICATE

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DECLARATION:
I undersigned Miss. Abcdefghijkl a student of the First Year of B.B.A. here by declare
that this project work presented in this report is of my own work and carried out under
supervision and guidance of the
This project has not been submitted previously to any other university for examination
or any other university for examination or any other purposes.

_______________
Abcdefghijkl

Date :
Place : Rajkot.

PREFACE:
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World is widening up and we are not confirmed to just one place. We all have to pace
with the rest of the world to compete.

As a B.B.A. is a course, which specially designed to meet the needs of the managing
sector for managing a world. And for this one has to be sharp, combining, possessing,
good managerial skills, smart and talent to compete the world.

As a part of a curricular, a student of a B.B.A. has to visit a well managed industry and
then prepare a project report on different department of the visited industry like
General, Personal, Production, Finance, and Marketing. Which presents a overview of
business concern.

So as a part of my studies being a B.B.A. of First Year; taking this great opportunity to
visit an industry I visited NIRMA LIMITED and I have tried my level best to
represent a project in front of you out of the relevant information I gate from the
company.

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ACKNOWLEDGEMENT:

It is my pleasure to present this report. I thank all who helped me to get the necessary
information regarding my project.

The project undertaken of such nature invites lot of intellectuality, professionalism,

guidance, and encouragement from all diverse background. I express my deep guide to
my guider for his valuable guidance, inspiration through the study work.

I am also thankful to my family, lecturer, principal, friends and the staff of the Nirma
Limited – Bhavnagar who co -operated us at the time of the visit.

Last but not least, would like to express my whole hearted thanks to all those who
have directly or indirectly helped me to complete this project report.

___________
Abcdefghijkl

Place: Rajkot.
Date:

-5-
PROJECT CONTENTS
 TITLE PAGE
00
 COMPANY’S CERTIFICATE
01
 COLLEGE’S CERTIFICATE
02
 DECLARATION
03
 PREFACE
04
 ACKNOWLEDGMENT
05
 PROJECT CONTENTS
06
 GENERAL INFORMATION
08
- Index 09
- Introduction 10
- History And Development 11
- Company Profile 12
- Organization Chart 13
- Size of the Unit 14
- Form of Organization 15
- Location of Unit 16
- Time Keeping System 18
 PRODUCTION DEPARTMENT
19
- Index 20
- Introduction 21
- Products of the company 22
- Row Material 23
- Manufacturing Process 24
- Quality Control 28
- Quality Policy 29
- Organization Chart 30
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 - Production Capacity 31
- Types of Machine 32
 PERSONNEL DEPARTMENT
33
- Index 34
- Introduction 35
- Organization Chart 36
- Recruitment and Selection 37
- Human Resource Planning 39
- Placement and Induction 40
- Wages and Salary Administration 41
- Training and Development 42
- Promotion and Transfer 43
- Performance Appraisal System 44
- Health and Safety Policy 45
- Personnel Policy 46
- Industrial Relation 47
- Provident Fund Scheme 48
- Other Facilities 49
 MARKETING DEPARTMENT
51
- Index 52
- Introduction 53
- Organization Chart 54
- Market Segmentation 55
- Advertising 56
- Sales Promotion 57
- Competitors 58
- Marketing Research 59
- Pricing Policies 60
- International Marketing 61
- Strategies related to production 62
- Channel of Distribution 63
 MARKETING DEPARTMENT
64
- Index 65
- Introduction 66
- Organization Chart 67
- Financial Planning 68
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 - Profit & Loss Account 69
- Balance Sheet 70
- Capital Structure 71
- Working Capital 72
- Ratio Analysis 73
 AWARDS
75
 ACHIEVEMENTS
77
 SWOT ANALYSIS
79
 FUTURE PLANS
81
 SUGGESTION
83
 CONCLUSION
85
 BIBLIOGRAPHY
87

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GENERAL
INFORMATION

: INDEX :

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 Sr. No. Particular Page No.
1. Introduction 10
2. History And Development 11
3. Company Profile 12
4. Organization Chart 13
5. Size of the Unit 14
6. Form of Organization 15
7. Location of Unit 16
8. Time Keeping System 18

INTRODUCTION

India is one of the largest consumer economies, with more number of a middle class
people. In such a widespread, diverse market place, Nirma aptly concentrated on all its
efforts towards creating and building a strong consumer preference towards its ‘Value
for Money’ Products.

It was a back in the 60’s and 70’s century where the domestic detergent market had
only premium segment, with very few players and was dominated by MNCs. It was
1969 when Karshanbhai Patel started door to door selling of the own manufactured

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product. Detergent power priced at an astonishing rate of Rs. 3.00 for a 1 Kg. powder;
where else cost of the other cheapest brand was Rs. 13 which differentiate the price by
Rs. 10 high of the competitors. Product was launched with an innovative, quality
product with a indigenous process, and low profiled packing also the marketing. It
changed the habit of the housewives for washing powder for washing clothes.

In a short spam, Nirma created an entirely new market segment in domestic

marketplace. Which is eventually largest consumer packet and quickly emerging a
position which it has never since relinquished? Nirma became a one of the widely
discussed success stories between the four walls of the B – School classroom across
the world.

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HISTORY AND DEVELOPMENT

In scorching heat of 1969, a son of small timer former was trying to mix soda ash and
few other intermediaries to make a detergent powder as qualification he is graduated in
science and was working as junior chemist in government laboratory. As a moonlight
activity, he was making detergents in the 100 sq. ft. back yard of his home, using bare
hands an bucket once the mixture is ready he use pack them in a polythene bag and
was doing door to door sealing. As the product became well accepted in the society it
known to rest of is known to one and all. This is a success of saga of a first generation
entrepreneur, on his way to create history in the Indian market that was Dr.
Karshanbhai Patel.

“Nirma” it was named after a daughter of Dr. Karshanbhai Patel; Named Nirupama

COMPANY PROFILE
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Name of the Company: Nirma Limited.
Registered Office: Nirma House,
Ashram Road,
Ahmedabad 380 009.
Form of Organization: Public Limited.
Size of Organization: Large Scale.
Number of Employees: 14,000 Peoples.
Location of Factory: Kalatalav,
Bhalpradesh,
Bhavnagar.
Bard of Director: - Hiren K. Patel.
- Shrenik K. Patel.
- Kalpesh A. Patel.
Company Secretary: Shri Parekh Sheth.
Auditor: Hemanshu Shah & Company.
Banker: HDFC and BOB.
Investment: 2500 Cr.
Market: National and International.
Year of establishment: 1969 AD.
Chairman: K. K. Patel.
Acquired Quality Certificate: ISO 9000 – 9001.
Main Products: Detergent Powder.
Different Range of Products: Soap, Detergent, Edible Salt,
Sourcing Product and Some of
Industrial useful products
Phone Number: + 91 – 79 – 27546565 / 74.
Fax Number: + 91 – 79 – 27546603.
Url: www.nirma.co.in
E – Mail: info@nirma.co.in

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ORGANISATION CHART

An organisation chart help in understanding the organisational relationship. That

shows the grouping of major activities in the department and the min lines of
authorities and responsibilities among the entire department.

Board of
Director

Managing
Director

Production Marketing Personal Finance

Department Department Department Department

Manager
Manager Manager Manager

Operator Operator
Operator Accountant

Workers Workers Workers

Workers

Seeing from the company’s organisation chart, we can say that NIRMA LIMITED
follows Line Organisation structure; it is easy to understand and to maintain relation of
employee to the other.

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SIZE OF THE UNIT

The size of the organization is important to discuss for any industries it is necessary to
have proper place to do work proper.

In India, generally the business unit is classified into three main categories on the
bases of the size of the unit.

Generally size of the unit is classified into following below mentioned size keeping the
investment into the consideration:

1. Large Scale Industries

Large Scale unit is one whose investment in assets is more than a 5 Cr. Rupees.
2. Medium Scale Industries
Medium Scale unit is one whose investment in assets is between 3 to 5 Cr. Rupees.
3. Small Scale Industries
Medium Scale unit is one whose investment in assets is less than 3 to 5 Cr. Rupees.

From seeing the standards of the differentiating a size NIRMA LIMITED can be
considered in the sector of the large scale industries.

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FORM OF THE ORGANIZATION

There are various types of organization. The below chart represents various forms of
business organization are shown as under:

Sole
Proprietorship

Co –
Operative
Partnership
Society
Different
Forms of
Organization

Public Private
Limited Limited
Company Company

NIRMA LIMITED is the pubic limited company, which comes under company’s act
1956.

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LOCATION

Industry is an activity which converts raw material and semi finished goods in to
finished goods for sale. Industrial organization means the combination and co-
ordination of capital, labors, machinery and raw materials, the success of business
depends on the process of organization and planning.

The consideration of these factors requires careful analysis because the location once
chosen, cannot be changed often, frequent changes in location of an industry is
determined by taking in to consideration of the following factors.

(A) Primary Factors

(1) Supply of Raw Material
(2) Nearness to Market
(3) Transport Facilities
(4) Labors Supply
(5) Availability of power
(6) Supply of capital

(B) Secondary Factors

(1) Facilities
(2) Nature factors
(3) Political Factors
(4) Government Subsides and facilities
(5) Historical and religious factors
(6) Initial start and goodwill
(7) Personal factors
(8) Miscellaneous Factors

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On seeing of it NIRMA LIMITED has setup its factory at;
Nirma Chemicals Limited,
Bhal District,
Kalatalav,
Bhavnagar.

This place is not so far or so near to the city. It is just 14 km away from the Bhavnagar
city in a well location area.

TIME – KEEPING SYSTEM

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Time keeping system is very essential for the regulation of employees & for
maintaining the productivity of the unit.

In NIRMA LIMITED Time for all the level of staff is as follows as per its working
place:

For Office Staff:

09:00 AM To 12:00 PM
02:00 PM To 05:00 PM

For Workers:
08:00 AM To 05:00 PM
05:00 PM To 12:00 AM
12:00 AM To 08:00 AM

Every worker has to give its present time and leaving time to the in charge and make it
register on the attendance sheet.

NIRMA LIMITED is very punctual in time; company is working its workshop for 24
hours.

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PRODUCTION
DEPARTMENT
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 : INDEX :

Sr. No. Particular Page No.

1.
Introduction 21
2.
Products of the company 22
3.
Row Material 23
4.
Manufacturing Process 24
5.
Organization Chart 28
6.
Quality Control 29
7.
Quality Policy 30
8.
Production Capacity 31
9.
Types of Machine 32

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INTRODUCTION

NIRMA LIMITED have got good production unit, it have two factories in the
Gujarat.

Company has good infrastructure facility of the factory for the production. It has
different production plants well infrastructure for the production of soda as, linear
alkyl Benzene, packaging, sops, detergent and the industrial salt.

“Production means the conversion of row material in to finished productions with the
help of certain processes”
- Philip Kotler

“Production is a process by which goods services are create.”

- E. S. Buffa

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PRODUCTS OF THE COMPANY

Consumer Products

Industrial Products
 LAB ( Linear Alkyl Benzene )
 AOS ( Alfa Olefin Suffocate )
 Sulphuric Acid
 Glycerine
 Soda Ash
 Pure salt
 Vacuum Evaporated Iodized Salt
 SSP ( Single Super Phosphate )
 Sodium Silicate

ROW-MATERIAL USED

There is various row material used in the Nirma Company that is different to the
entire product like.

Detergent
- Spend Acid
- Hard Water
- Soda Ash
- Yellow Colour – Aos
- Salt and other chemical

Bath Soap
- Pam Oil - Brim
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 - RD Oil - EDTA
- PK Oil - Ugater
- D.F.A - Caster
- Glycerin

Detergent Cake
- Palmate
- Salary Acid
- Silicate

MANUFACTURING PROCESS

 Nirma Salt

Nirma salt is manufactured the state of art production facility of the high capacity
machine vacuum drying process.

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Salt is manufacturing under of fully automatic process first chemical process for
cleaning the water after words it has been vacuum drying process for where the liquid
converts into material form and it has been saudh Iodized Salt. At last it helps of
conveyer belt. It has been move to packing machine that is known as pack one
machine its working capacity is 800 tons which produce 48 packets in a one minute.
The package of 2 Kg are been made to manually activity.

Company having automatic facility in both of this unit is in Bhavnagar and Baroda
etc.

 Nirma Detergent Powder And Cake

To produce the detergent powder following below mention row-material have been
used:

 FOR DETERGENT CAKE

- Spend Acid

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 - Hard Water
- Soda Ash
- Yellow Color – AOS
- Salt and other chemical

 FOR DETERGENT POWDER

- Palmate
- Salary Acid
- Scilicet Blue

Manufacturing Process for detergent powder and cake:

 FOR DETERGENT POWDER

Detergent is manufacture two different type of detergent powder that is super Nirma
washing powder and second is popular detergent washing powder.

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The process of manufacturing is fully manual. First of spend Acid and hard water
color eddies been mixed in reaction bubbles form his generated and on it soda ash,
yellow color, salt and other chemical has been mixed and detergent powder has been
produce.

“Dudh si safedi Nirma se aye, Rangin Kapda bhi khil khil Jaye Sub ki pasand Nirma
Washing powder Nirma” This Jingle is used since last 35 years.
To produce the detergent cake following below mention row-material has been used:
- Palmate
- Salary Acid
- Scilicet

 FOR DETERGENT CAKE

The material of washing soaps they some time are available as minced and from
power but in prodder machine comprit process machine the soap to put in plants as
12 to 32 machines are available for packing 600 Ton production of Nirma Washing
soap.

Type of the detergent Cake

- Blue
- Pink
- White
- Yellow
 Nirma Bathing Soaps

To produce the bath soap following below mention row-material has been used:
- Pam Oil - Brim
- R. D. Oil - Edta
- PK Oil - Ugater
- D.F.A (Distai Fatty Acid)
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 - Glycerin

Manufacturing Process

Nirma Company is manufacturing different fragrant of soaps like Nirma rose, sandal,
pink and green etc.

Company is having high efficient machine imported from Italy, Some of the material
are also been import from Malaysia.

To manufacture the soap row-material like Pam oil, RD Oil and P.K. Oil and some
other chemicals proportion of Glycerin and D.F. A (Distai fatty Acid) is 76% and
other is 24%

Type of Bath Shop

- Rose - Pink - White
- Sandal - Green
ORGANIZATION CHART

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 Board of Director

Managing Director

Production Manager

Operator

Workers

- 29 -
QUALITY CONTROL

Pushing ahead with grueling schedules, punishing deadlines and a raging desire to be
beyond competition roles sets the bar high, for quality standards

Each stage of production at NIRMA LIMITED reflects a profound presence of

excellence in quality.

To meet the most exacting requirements of the most demanding client, they have an
array of sophisticated technology to ensure quality measuring instruments are used.
The motive of the company is providing maximum satisfaction to their consumers.

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QUALITY POLICY

Nirma is a customer focused committed to consistently affair better quality products &
services that maximize value to the customers.

This shall be achieved through continuously explanting & developing new product &
process.

~ Laying emphasis on cost effectiveness.

~ Maintaining effective quality management system.

~ Complying with safety environment and social obligations.

~ Imparting training to all involved on a continuous basis.

~ Team work and active participation al around.

Demonstrating belongings and exemplary behavior to wards organization is goals and

objectives.

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PRODUCTION CAPACITY

The production capacity of the firm depends on the machine and the technology the
firm uses

Production capacity defers product to product as per target per annual

Soda ash - 400000

Vacuum Salt - 275000
Clear Salt - 900000
Pure Water - 2200

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Types of Machines

1. Nirma Salt
- New Pacona
- Old Pacona
- Micro Pacona
- New Micro Pacona

2. Nirma Soap
- Plodder
- Wrapper Machine
- Stamping Machine

3. Nirma Washing Soap

- Plodder
- Mixture
- Packing Machine

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PERSONNEL
DEPARTMENT
- 34 -
 : INDEX :

Sr. No. Particular Page No.

1. Introduction 35

2. Organization Chart 36

3. Recruitment and Selection 37

4. Human Resource Planning 39

5. Placement and Induction 40

Wages and Salary
6. 41
Administration
7. Training and Development 42

8. Promotion and Transfer 43

9. Performance Appraisal System 44

10. Health and Safety Policy 45

11. Personnel Policy 46

12. Industrial Relation 47

13. Provident Fund Scheme 48

14. Other Facilities 49

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INTRODUCTION

Manpower is heart of the business.

Personnel management involves planning, organizing, directing and controlling the

procurement, etc of the human resources in enterprise personnel management is the
sub area of the general management. It is concerned mainly with manpower
recourses. Humans have dynamic nature different person are having different nature,
behavior, mentality etc.

Personnel management also gives such type of training & education to the employee.
Personnel management gives such type of promotion to the employee.

Acc. to G. R. Terry;
“Personnel management is concerned with obtaining & maintaining of a satisfactory
& satisfied work force”

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ORGANISATION CHART

Board of Director

Managing Director

Personal Manager

Operator

Workers

- 37 -
RECRUITMENT & SELECTION

RECRUITMENT
Recruitment is the most important function of personnel department. It is process of
reaching for prospective employee and stimulating encouraging them to apply for the
job in the organization.

There are mainly two sources of recruitment.

1. Internal sources
2. external sources
Internal sources means to select the required person from the company it self. While
external sources means to recruit the person from the outside the organization through
advertisement. Employees agencies, other professionals.

External source are campus recruitment, contractors, placement centers, etc are used
local are and local market recruitment of worker and labor with the help of contractor.

NIRMA LIMITED recruits the staff using both the method of but mostly through
the external source.

 Minimum Qualification
For staff selection = Graduation
For Production = Graduation, ITI

 Age Limit
Minimum age limit is 21 Years and maximum is 58 Years as per govt. rule.

 Type of worker or labor

Skilled or Semi Skilled
- 38 -
 Experienced
SELECTION

Selection is the process of the choosing the right person for right job, which is from
recruit of once.

Recruitment and selection proceeded of executive and export personal [mechanical

engineer] is done at the head office of the Nirma Company.

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HUMAN RESOURCE PLANNING

Nirma not only make better product but also infuse the value which affect the
perceived characteristic of the internal customer oriented environment of the
organization.

Developing human resources is continues process at Nirma involving overseas

training programmers on the job orientation for the trainees in house computer
education and personality development sessions. The belief is that all this make an
individual a better person which in turn leads to better productivity and a spirit of
accountability and commitment in each member of the NIRMA LIMITED.

NIRMA LIMITED hires only the best people in their respective fields’ people with
a capacity to take on the challenges of realizing the Nirma’s vision productive
dynamic professionals with the expertise of the executive mega project would
integrate Nirma into a conglomerate by providing the best in all the way.

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PLACEMENT AND INDUCTION

PLACEMENT

After passing through the selection procedure on last stage placement takes place.
Placement is a negative as well as positive process. It means to reject improbable
candidates and to recruit a probable candidate from an applicant. Selecting and giving
a job to the best one out of a applicants is a placement.

Thus placement is the determination of the job, which on accepted candidates is to be

assigned and his assignment to that job an appropriate placement of a worker result in
the reduction of employee.

In NIRAM LIMITED after the training is over the normally decides the final
placement on the basis of performed and result output during the training.

INDUCTION

Induction involves the introduction of an employee to the job and the organization.
An employee has to operate with follow employees and his supervisor. Hence he
must know them. Their way of working and also the policies and practices of the
organization with this he can integrate himself with the enterprise. Any neglect in the
area of the induction would result into high labor turnover waste of time and
expenditure.

Thus NIRMA LIMITED follows formal indication procedure they talk about the
history of the organization and short discus with a representative of the personnel
who may narrate the benefits plans of the organization.

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WAGES AND SALARY ADMINISTRATION

Wages and salary are given to the employee as reward for their contribution to the
industries. Wages and salary administration refers to the establishment and
implementation of sound policies and practices of employee compensation. Various
wage acts and labors acts are used in order to determine the wage of the employees.

Wages can be paid according to two systems. These systems are:

I. Time or Day Wage System.

II. The Piece-wage System.

Payment made to labors is generally said as wages.

In NIRMA LIMITED, labors or workers are paid wages on the End of every month.

Salary means money paid periodically to persons whose output can not be easily
measured such as clerical staff as well as supervisory and management staff.

In NIRMA LIMITED, these employees are paid salary on the end of every month.
Payment of wages and salary is managed by personnel department.

- 42 -
TRAINING AND DEVELOPMENT

Every organization needs to have trained and experienced employees to perform the
activities to be done. Training and development of personnel is a follow - up of
selection. It is an improvement and enhancement of different types of skill so that
employees can perform their job effectively.

Training is a systematic program of organization aims at increasing the attitude, skills

and abilities of worker to perform specific job. By training the employees will acquire
new manipulating skills, technical knowledge, etc.

“Training is the act of increasing the knowledge of employees for doing a specific
job” Thus increasing the knowledge and skills of employee for better performance on
job.

There are two methods of training:

- On the job training method.
- Off the job training method.

NIRMA LIMITED trains the worker on the job. It means they give training to the
workers during a job to the selected candidates.

Company also gives other useful training to the workers which are useful during a
working time like;
- Safety Training.
- Normal Training.
- First Aid Training.

Some of the higher levels executives are given training on external basis also i.e. they
are sent on the training programs held in general by some association institutes or
seminars.

- 43 -
PROMOTION AND TRANSFER

The term promotion can be defined as “A promotion is the advancement of an

employee to get better in terms of responsibilities, more prestige or status, greater
skill and especially increased rate pay of salary.”

A promotion is a vertical move in rank and responsibilities. An upward advancement

of an employee in an organization to another hob, which commands better wages,
better status, higher opportunities, responsibilities, and authorities, better
environment, hours of work and facilities.

In NIRMA LIMITED promotion of its employees and its staff is done on the basis
of tow – to – three years experience. As the time of promotion they see performance
of personnel in terms of attendances, regularity, skill, discipline, etc.

NIRMA LIMITED has different units in Gujarat. So for transfer sent from one
branch to other branch or from one department to other relevant department. So it can
be said that company do internal transfer.

PERFORMANCE APPRAISAL SYSTEM

- 44 -
In the organization context performance appraisal is a systematic evaluation of
performance by supervisors or other familiar with their performance. It is also
described as merit rating in which one individual is ranked or marked in comparisons
of other.

“Performance appraisal is a systematic evaluation of the individuals with regard to his

or her performance on the job and his potential for development”

In NIRMA LIMITED performance appraisal is done by the head of department on

the basis of performance appraisal report given by supervisor an appraisal grade is
given to every year.

If employees get confirmation from company on before 31 st march then that

employee is eligible for getting appraisal system.

HEALTH AND SAFETY POLICY

- 45 -
 1) Productivity with safety is our motto safety and health aspects will be
considered in process design selection of equipment and implementation of
program.
2) Health and safety of the workers is an asset of the company continuous
improvement in performance by training and rewarding will be ensured for
maintaining a vigilant workforce.
3) Nirma will encourage our associate’s contractor and suppliers to implement
safe and healthy parties in their establishment.
4) To fulfill our social responsibility will conduct programs, Seminars,
Celebrations and put up hoarding to make the general public aware, so as
react timely and intelligently in case of emergency.
5) Above all Nirma commit to fulfill all statutory provision under the guidance
of regulatory agencies.

PERSONNEL POLICY

- 46 -
Personnel policies constitute guide to action. They give the general standard or basis
which could give the decisions. Their genesis lies in value, Philosophy concepts and
principles of an organization.

In word of Flippo “A policy is man made rule or predetermined course of action that
is established to guide the performance of work towards the organization objectives.”

Thus NIRMA LIMITED follows general personnel policies. It is established for co

– ordination and control and for the sound industrial relations etc.

INDUSTRIAL RELATION

- 47 -
The expressions industrial relations are used to express the nature of relationships
between the employer and employee in an industry or an organization. Where willing
co-operation emanates from employees towards the achievement of organizational
goals, there is said to be industrial relations. There are many causes which have led to
poor industrial relations and there are conditions which can generate goods industrial
relations. A correct perspective of the industrial relations position is possible on an
appreciation of the stages of development through which a country has passed over a
period of time to the present moment.

In NIRMA LIMITED the management and the employees maintain a good

industrial relation. They both understand each other and there is no incident of any
such dissatisfaction or strike.

PROVIDENT FUND SCHEME

- 48 -
Provident fund schemes has been introduced in 1962 the government has made the law
that any company must has to follow the provident fund scheme after the established
of 5 years plan.

The main purpose of provident fund is to provide benefit to the employees by giving
them certain amount of money at the time of retirement, marriage or in the case of
accident or faces any type of defeat in this body

Under the act the employee’s provident fund and family person are same. In 1950 this
act was passed and then it becomes compulsory to apply provident fund scheme.

NIRMA LIMITED employee’s basis salary is scheduled @ 12% before also

payment for provident fund.

OTHER FACILITIES

- 49 -
Employees are important assets of a unit. So for better work performance they should
be motivated. For this they should be given not only financial incentives but also non
financial incentives and facilities.

NIRMA LIMITED is much concentrates on above facts and gives many benefits to
their employees. The company undertakes the following welfare measure to motivate
the workers.

 Canteen:

In NIRMA LIMITED Two cups of tea/coffee are provided free of cost to all
employees in each shifts. Lunch and snakes are being provided at subsidies rates at
350 Rs. per month.

 Medical Facility

In NIRMA LIMITED if any accident occurs that time they provide medical
facilities. They also keep first aid box in company, so any small can be prohibited.
Thus the company provides first air and medical expenses also.

 Leave:

In NIRMA LIMITED employees are provided privileged leave, casual leaves and
sick leaves for the below mentioned days.

Privileged Leave for 24 days.

Casual Leave for 7 days.
Sick Leave for 7 days.
 Loan:

- 50 -
In NIRMA LIMITED workers are provided monetary facility at the time of
requirement. Employees of the company are provided loans on the lower rate
comparing to the market rate of interest.

 Transportation Facility

In NIRMA LIMITED pick up and drop facility is given to the workers. Company’s
bus service is available for it.

 Gift On Different Occasions And Festival

In NIRMA LIMITED Company provide gift on function and marriage. In marriage

company provides a gift cheque of 1001 Rs. to the employee. And on festival sweets
are been provided to the employees.

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MARKETING
DEPARTMENT
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 : INDEX :

Sr. No. Particular Page No.

1. Introduction 53

2. Organization Chart 54

3. Market Segmentation 55

4. Advertising 56

5. Sales Promotion 57

6. Competitors 58

7. Marketing Research 59

8. Pricing Policies 60

9. International Marketing 61

10. Strategies Related to Production 62

11. Channel of Distribution 63

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INTRODUCTION

“Marketing is the process of planning and executing the conception, pricing,

promotion and distribution of ideas, goods and services to create exchanges that
satisfy individual and organizational goals.”

Philip Kotler defines a “Market as an area for potential exchanges.”

The process of marketing starts with identifying the customer’s needs and then
developing a marketing program suiting the needs of the customer. Hence, customer
is at the centre of any marketing plan. It involves the process of designing the
products in such a way that it is acceptable to the consumers. Marketing includes four
P’s of management i.e. product, price, promotion and place or physical distribution.

Generally in a small or medium scale unit the function of marketing is carried out by
the owners of business or the marketing manager. In the large scale industries
different staff ate been recruited for the marketing.

In NIRMA LIMITED there is a different team working after the marketing its office
is in Ahmedabad.

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ORGANISATION CHART

Board of Director

Managing Director

Marketing Manager

Operator

Workers

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MARKET SEGMENTATION

Market segmentation is sub dividing of the whole market in to different parts. Each
part demand schedule and represents a group of buyer with similar needs and features.

According to Stanton “Market segmentation consists taking total of heterogeneous

market for a product and dividing it into several sub markets to be reached with a
distinct marketing mix.”

The reason for segmenting the market that the market that the market for most product
is heterogeneous but not, homogeneous. People have different needs and values there
from a marketer can not desire maximum benefit from the analysis of market as whole.

There are several bases for segmentation the market which are as follows:

 Geographic Segmentation
 Demographic Segmentation
 Psychographic Segmentation
 Behavioral Segmentation

In NIRMA LIMITED company is doing segmentation on the basis of demographic

segmentation.

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ADVERTISING
Advertising can be defined as. Paid communication of goods services or ideas by and
identified sponsor. It is paid communication because the advertiser has to pay for the
space in time in which his advertisement appears in recognized media such as
Newspaper, Radio, Hoardings, Television, Mail or Internet.

With the help of advertising company can create the brand image into the market.

NIRMA LIMITED mostly advertises through newspapers, magazines and Television

advertisement.

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SALES PROMOTION

Sales promotion is only short-term incentive to encourage purchase or sales of product

& services means related with promotion of sales consist of a wide verity of
promotional tools design to stimulate earlier & more customers.

And also most important of the promotion is the sale promotion is instruments achieve
good marketing results it is the process of and activity of increasing the total sales of
the firm.

To promote the product NIRMA LIMITED gives sales discount or offer during some
interval to the clients and special high commission to the intermediaries’ achievement
of the said prefixed target.

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COMPETITORS

Today’s world is full of competitions. It is very difficult to survive in this competitive

world. To survive in this competitive world, the company should try to satisfy the
needs of its customers by providing goods and services at reasonable cost. The
company cannot compromise with its quality of goods.

As there is competition in the market it is very important for the company to satisfy its
customers to the fullest and to live up to their expectations.

NIRMA LIMITED also has many competitions in the market. Competitors of the
company are as follows: -

 COMPETITOR FOR SOAP:

Lux, Hamam, Dove, Cinthol, Pears, Medimix, and Many More.

 COMPETITOR FOR SALT:

TATA Salt,

 COMPETITOR FOR DETERGENT POWDER:

Ariel, Surf Excel, Tide, Wheel
 COMPETITOR FOR DETERGENT SOAP:
Tide, Rin Supreme, Wheel

MARKETING RESERCH
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Marketing research is the systematic gathering recording and analyzing of data about
problems concerned with market place.

i.e.: Problems relating market price, promotion and distribution. Marketing research is
concerned with all those factors which have direct impact upon the marketing of
products and service it is the study of any part of total marketing process.

According to AMA “Marketing research is the gathering records and analyzing of

account about various problems relating to the transfer and sales of goods, service
from producer to consumer.

In NIRMA LIMITED marketing research plays an important role. They do marketing

research through market fours via customers and dealers.

PRICING POLICY

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Price is an important element in the marketing strategy. Right selling price is essential
for sound marketing. Right price can be determined through pricing research and by
adopting the test market technique. A price policy is the standing answer to the firm to
receiving problem of pricing. It also provides guidelines to the marketing manager to
enclose appropriate pricing decision.

Decision about pricing is very important task in every organization. The pricing of the
product is like “Blood of the Body” the organization has fixed policy of the price.

For E.g.
Total Cost + Packing Cost + Profit = Net Price

NIRMA LIMITED gives the plan for the manufacturing of the project to different
unit and accordingly collects. The manufacturing cost data from the entire unit.

INTERNATIONAL MARKETING

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International or world marketing follows some basic principles as domestic marketing.
Marketing principles are common and are universally applicable. In any market firm
needs blending of 4P’s of marketing (i.e. Products, Price, Promotion and Distribution).
Firm must have well, promotion and proper distribution. Each marketer must
recognize the fact that the marketing environment varies from nation to nation, that
forms state to state and country to other country.

NIRMA LIMITED consist international of the Middle East Asia i.e. China, Russia
and some of neighbor countries other then Asia it consist of African Countries.

STRATEGIES RELATED TO PRODUCTION

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There are so many strategies related production. Each company have different
strategies related it some company can not give after sales service we can sale they
will not allow to their customer to change the product.

NIRMA LIMITED follows strategies which are as under.

Branding
Company should their brand name which is easy to remember to and it should not
illegal A company brands is famous with the name of “Nirma” The Nirma Ltd. has
rightly chosen its brand name as Nirma which is named on the name of NIRUPAMA
a daughter the chairman Dr. Krshanbhai Patel which is very easy to remember and
attractive.

After sales service

After selling a product the work does not over for on industry. They are also liable to
give their customer after sales service Nirma also gives this type of facility to the
customer, customer is not providing after sales service ion a product which is small.
But in case of any fault or if there is any complain received from the customer then
they all are given replacement at a same product.

Packing
Packing is also an important as produced the thing only production is not enough but
they have to pack their product in attractive paper Nirma Ltd. packing is done as per
requirement their customer. They also selling they product after packing in retail or as
per the requirement of customer packing process place vital role the point of view the
customer because same people purchase any product to get prestige in a society.

CHANNEL OF DISTRIBUTION

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Distribution channel consists of sets of interdependent organization a product or
service from the point of production to the user at the point of consumption. Hence it
can be said that it is the distribution available in market for consumption purpose the
route of channels of distribution includes the manufacture and consumer as well as all
intermediaries.

The channel of distribution of NIRMA LIMITED is as follows:

Manufacturer

Distributors

Wholesaler

Retailers

Customers

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FINANCE
DEPARTMENT
- 65 -
 : INDEX :

Sr. No. Particular Page No.

1. Introduction 66

2. Organization Chart 67

3. Financial Planning 68

4. Profit & Loss Account 69

5. Balance Sheet 70

6. Capital Structure 71

7. Working Capital 72

8. Ratio Analysis 73

INTRODUCTION

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It is universally accepted that all economic activity is based on the purpose of earning.
So be considering this we can say that money or finance is in the centre of the world
without finance any industry is a selection having no life. Finance is like blood of any
industry, organization or form.

The finance in a modern business world is the life blood of a business. It is impossible
to imagine business without finance so it is said that “Business men take money to
make money”.

In the word of Henry Fayol, “Finance is like an arm, leg you use it or loss it” Finance
provides base for the company NO company can run without sufficient finance.

So, Finance management is necessary for any organization and that is why finance
department comes into existence In this department different finance manager perform
the activities regarding rising and using finance to operate the business.

ORGANISATION CHART

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 Board of Director

Managing Director

Finance Manager

Accountant

Workers

FINANCIAL PLANNING

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Finance is an important function of business the application of planning to the function
is financial planning. It involves the policies, determination of objectives and
procedure relating to the finance function. Financial planning is on important function
of a business is big or small this function has to be performed. It is necessary to do
financial planning for an existing as well as new business.

A financial plan should be formulated in the light of present as well as future

development before raising finance it is essential to make estimates for long term as
well as short term financial needs.

* Long term financing is generally needed for fixed capital requirement

* Short term finance is generally needed for working capital requirement i.e. debtors
etc.

PROFIT & LOSS ACCOUNT

*Rs. In Crores
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 Particular 2008 - 2009 2007 – 2008
INCOME
Sales 3354.06 2650.78
Less: Excise Duty 323.89 318.50
Sales Net 3030.17 232.21
Other Income 8.78 13.65
Income / Decease in stock 31.08 25.96
3070.03 2371.82
Expenditure
Consumption of raw materials 1398.89 1084.06
Purchase of finished goods 22.70 1.15
Payment to and provision for employees 99.00 81.65
Manufacturing, administrative and selling exp. 1049.46 814.70
Interest and changes 47.41 7.92
2617.46 1989.48
Profit before Depreciation, Exceptional Items and
Tax 452.57 382.34
Less : Provision for depreciation 244.38 226.65
Add : Provision of expense for earlier years written back Nil 70.89
Profit before Exceptional Items and Tax 208.19 226.58
Less : Impairment of asset 60.00 Nil
Add : Exchange loss on revaluation of ECBs 29.86 Nil
Profit Before Tax 118.33 226.58
Less : Provision For Taxation - Current Tax 13.60 26.00
- Fringe Benefit Tax 0.40 0.40
- Deferred Tax 17.29 (29.55)
Profit for the year 67.04 229.73
Less : Provision of taxation of earlier years provided
during the Year (6.39) 12.18
Net Profit 93.43 217.55
Add : Balance in profit and loss account brought forward 114.00 71.13
Profit available for Appropriation 207.43 288.68
Less : Transferred to capital redemption reserve 2.79 Nil
: Transferred to general revenue 100.00 100.00
: Final dividend n preference shares 0.13 0.17
: Proposed dividend on preference shares 63.66 63.66
: Tax on dividend 10.82 10.85
Balance Carried to Balance Sheet 30.86 114.00

BALANCE SHEET
*Rs. In Crores
Schedule As on As on
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 31.03.09 31.03.08
SOURCES OF FUNDS
Shareholder’s Funds
Share Capital 1 79.57 82.36
Reserve and Surplus 2 2521.47 2502.62
2601.04 2584.98
Loan Funds
Secured Loans 3 1048.12 182.54
Unsecured Loans 4 85.67 261.40
1133.79 443.94
3734.83 3028.92
APPLICATION OF FUNDS
Fixed Assets 5
Gross Block 4048.53 3738.92
Less: Depreciation 2129.59 1826.96
Net Block 1918.94 1911.96
Add : Capital work – in – progress 243.08 259.61
2162.02 2171.57
Investments 6 539.77 45.85
Current Assets, Loans & Advances
Inventories 7 600.27 635.16
Sundry Debtors 8 250.49 216.37
Cash and Bank Balance 9 213.59 72.65
Loans and Advances 10 599.59 500.86
1663.94 1425.04
Less: Current Liabilities and Provisions 11
Current Liabilities 189.93 195.46
Provisions 135.28 129.68
325.21 325.14
Net Current Assets 1338.73 11099.90
Differed Tax Liabilities 12 305.69 288.40
1033.04 811.50
3734.83 3028.92

CAPITAL STRUCTURE

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In order to run and manage a company, funds are needed right finance plays an
important stage up to end finance plays an important role in company’s life. If funds
are inadequate, business suffers It is there fore necessary that correct estimate of
current and the future need of capital be mode to have an optimum capital structure,
which shall help the organization to run its work smoothly and without any stress.
Estimation of capital is necessary but the formation of capital structure is important.

The capital structure is made up of debt and equity securities and refers to permanent
financing of a firm it is composed of long term debts, preference share capital and
shareholder fund.

Capital structure of NIRMA LIMITED as on 31.03.09

Capital Structure. As On 31.03.09

Ownership Capital
Share Capital 79.57
Revenue & Surplus 2521.47
Borrowed Capital
Secured Loan 1048.12
Unsecured Loan 85.67

*Figure given here are as per the balance sheet provided on website.
*Figures are in Crores.

WORKING CAPITAL

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Business capital is broadly divided into two groups:
1) Fixed Capital
2) Working Capital

Fixed capital refers to the funds invested in such fixed or permanent assets as land,
building etc. while working capital refers to the funds locked up in materials, finish
goods, receivable etc.

“Working Capital is descriptive of that capital witch is not fixed but the more common
us of the working capital is to consider it as the difference between the book value of
the current assets and current liabilities.” - Hoagland

The concept of working capital is future divided into broad parts they are

1. Gross Working Capital

2. Net Working Capital

1. Gross Working Capital

Gross Working is nothing but the total current assets of the company is considered as a
gross working capital.
Gross Working Capital of Nirma Limited is 1663.94 Crores

2. Net Working Capital

Different between the current assets and current liabilities is considered as a net
working capital.
Net working Capital of Nirma Limited as on 31.03.09 is 1338.73 (i.e. 1663.94 –
325.27)

RATIO ANALYSIS

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There are various methods and techniques for analyzing. The financial statement, ratio
analysis is one of the most powerful tools of financial analysis. In financial analysis, a
ratio analysis is used as a bench mark for evaluating the financial position and
performance of a firm.

The ratio is defined as “The indicated quotient of two mathematical expressions.”

“It is an expression of the qualitative relationship between two or more numbers”

 Gross Profit Ratio:

It is the ratio expressing relationship between gross profits earned to net sales. It is a
useful indication of the profitability of the business.

Gross profit Ratio = Gross Profit X 100

Sales
= 271254 X 100
28272
= 95.9% (In Crores)

 Net Profit Ratio

The ratio is valuable for the purpose of ascertaining the overall profitability of the
business and shows the efficiency or otherwise of operation the business.

Net Profit Ratio = Net Profit X 100

Sales
= 230562 X 100
28272
= 72.09% (In Crores)
 Current Ratio

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It is measure of working capital available at particular time and shows whether the
business will be able to meet its current liabilities as and when they mature. It is also
known as “Working Capital Management.”

Current Ratio = Current assets

Current Liabilities
= 148.69
101.59
= 1.46:1

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AWARDS
In 2001 Karsan bhai was awarded an honorary doctorate by Florida Atlantic
University, recognizing his exceptional entrepreneurial and philanthropic
accomplishments.
- 76 -
In 1990 the federation of Association of Small scale industries of India (FASII) new
Delhi, awarded him the “udyog ratna” award the Gujarat chamber of commerce
felicitated him as an “Outstanding Industrialist of the Eighties” He has served twice as
chairman of the Development council for soaps and Detergents.

 Hans Ender Memorial Award Recipients

~ 1998 Bruce Evans
~ 1999 Eugene Yang
~ 2000 Rich Giska

AWARD FOR NIRMA BRAND

 9th among top FMCG brands of India

(A & M – mode – 2002)
 9th largest FMCG brand of the country
(Ac Nielsen Retail Audit Brand Equity April 21, 2004)
 Selected as super brand of India for 2003 – 04
 Most popular brand in Detergent powders – Economy Category
(FMCG Awards – 2000)

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ACHIEVEMENTS
- 78 -
Nirma has achieved a lot in lost years. Nirma has achieved full backward integration to
support the business of detergents and soaps. The achievements of Nirma are as
follows.

Nirma is awarded by ICMA for “Excellence in water Resource Management in

chemical industry” for the year 2002-2003.

Nirma is awarded by Gujarat Safety Council for Gujarat safety award for the year
2002.

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SWOT ANALYSIS
 STRENGTHS

Strong brand equity Nirma is an Rs 17 billion umbrella brand.

Offering a bread portfolio of product at multiple price points in the detergent soaps and
personal care products.

Produce a range of industrial chemical product which primarily used as row material
or intermediates for soaps and detergents business.

Market leadership in detergents market and fabric wash industry and second largest
player in toilet soap industry. Wide channel of distribution network.

 WICKNESS

- High interest burden.

- Less presence in premium segment.
- Lock global tie-ups and thus lacking in export markets.

 OPPERTUNITITS

- Export.
- Acquisition for strengthening its distribution tie-ups.
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- Entry into other categories like shampoos, toothpaste and fabric whiteners.

 THREATS

- MNCs coming to India particularly in toilet & soap industry.

- Emergence of small but strong regional players.

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FUTURE PLAN
Nirma is adopting a consumer oriented strategy as for as the price factor is concerned,
where in the priority was on passing more and more benefits to ultimate consumers.
All the benefits accruing out of economies of scale were passed to consumers in the
form of value for money offers like “Buy one get on Free”

The overall broad strategy of increasing the consumption was supported by appropriate
promotion and market support. The selection of media and communication strategy
- 82 -
was done with objectives of achieving the broad objective growth by growing the
market.

- 83 -
SUGGESTION
After going through practical training in Nirma for making the analytical report of a
company I would like to conclude some suggestions in order to achieve the targets and
to make its consumers brand loyal.

They should go for promotional activities like sales promotion and personal selling
and advertisement.

- 84 -
- 85 -
CONCLUSION
I after having visited the Nirma Company have learnt and experienced a lot and it was
a pleasant experience for me to know the internal aspects of the organization I have got
a very positive and co-operative response from every one at Nirma.

- 86 -
The get trained in this company. I have not only learned and viewed about the working
of personnel and marketing but have also learned as for as the technical and
manufacturing fields are concerned.

- 87 -
BIBLIOGRAPHY
For getting the information regarding various aspects like marketing, finance &
personnel etc. in practical, theoretical must clear in our mind. To have knowledge

- 88 -
regarding various theoretical concepts, I took reference of many books, which are as
under

Financial Management L.M. Prasad

Personnel Management Philip Kotler
Marketing Management Philip Kotler
Production Department S.C. Sharma
Company’s Website (www.nirma.co.in)
Company’s Executive
 Salt Department - Mr. Girish Joshi, H. R. Assistant
 Soap Department - Mr. R. S. Patel, In charge
 Detergent Department - Mr. Paras Dave, In charge

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