INTRODUCTION TO ORGANIZATION STUDY

Introduction
This is an overall study of the organization of Cera Sanitaryware Ltd.where it’s
working environment and various policies and practice are studied.
Objectives:
The study has undertaken to get an exposure of actual working environment in an
organization. The main objective of the study is to familiarize with the frame work
and method of organization working.
• To know how Cera works and method adopted.
• To know the employee and employer relationship and co-ordination.
• To show up the different product range of Cera Sanitaryware Ltd.
• To know the overall development of Cera Sanitaryware Ltd.

Methodology:
Conducting personal interview with all the functional manager departmental head and
sales executives. Collect the various data required to the study. Manuals and reports of
the company constituted the source of secondary data.
Limitation:
The following limitation of this internship report:
• The study is limited to the study of whole organization and not on specific
department.
• This study is only subject to an organization and not consist the whole market.
• The study is time bound and would be applicable to current scenario
• It is assumed that the information provided by the company is corrected and reference
is drawn accordingly.

CITY COLLEGE 1
 Introduction to Sanitaryware industry:
India is a large, highly populated Country of around one billion people, with an
economy, which is steadily growing. As per the study, there were an estimated 125
million dwellings in India (1995), but 200 million households. This reveals an acute
housing shortage. The U.N. predicts an increase in the population of 1.6% per annum.
There is a gradual migrant shift from rural to urban areas and 27% of the population
now lives in urban areas as compared to 20% in 1971. There is a large difference in
amenities between the urban population and the rural. In 1994, 70% of the urban
population had access to adequate sanitation, whereas in the rural community only
14% had access.
In 1991, approximately 64% of urban households had some kind of toilet facility
compared with 9% of the rural areas. There is a widening difference in income
between different regions, the rich and the poor.
Sanitation is a must for every individual of our society. According to the Government
estimates, more than 50% of the urban population does not access to sanitation
facilities. Condition of the rural areas abysmal that only 6% of the population are
covered by sanitation.
Sanitaryware Demand: Sanitaryware Industries in India for the last 6-7 years have
shown very dramatic growth with major players doubling their production capacity.
The Companies have also upgraded their manufacturing system by introducing
Battery Casting, Beam Casting and have gone in for latest imported Fast Firing Cycle
Kiln Technology. These Companies have also upgraded their quality and have
introduced high value range in the market, which has been accepted and appreciated.
The demand for high value Sanitaryware in India is growing very fast. The
Companies are trying to meet the demand as the realization per Metric Ton for high
value product is very good which ultimately results in good profitability. In order to
educate the customers in India to go for quality products and also for higher value
sanitaryware, companies have adopted a very aggressive advertisement campaign.
Companies have also strengthened their dealer network by offering showroom
incentives and some of the companies have also gone for their own retail outlets in
major towns. The demand for Sanitaryware in India is growing @ 15% -17% every
year

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The sanitaryware industry in India is divided in two sectors. The organized sector
consisting of 5 companies (M/s. Hindustan Sanitary Industries Limited, M/s. E.I.D.
Parry, M/s. Swastik Sanitaryware Limited, M/s. Madhusudan Ceramics, M/s. Neycer
India Limited), manufacturing sanitaryware for the last 15-20 years and have
established their Brand image. The organized sectors produce fully vitrified
sanitarywares, using latest technology and best of Ceramic Raw Materials available in
India. The unorganized sectors have adopted local Indian technology to manufacture
the basic sanitaryware products. Since the availability of raw material is in abundance
and also very cheap in the state of Gujarat & Rajasthan, various companies have
established their factory in these areas. They are producing the basic sanitaryware in
various brands. Unorganized sector's percentage of production capacity and also their
sales in the local domestic market are higher than that of the organized sectors' sales.
Unorganized sanitaryware manufacturer comes under small sectors and hence enjoy
the benefit of Nil Excise Duty and Sales Tax and hence they sell their products in the
domestic market approximately 70% cheaper than the organized sector products.
Opportunities: Government of India Policy on Housing Sector is very encouraging.
The Government has announced Income Tax rebate on housing loan to boost the
housing sector. All financial institutions are lending money for construction of house
at a very low rate of interest. Government figure shows that Housing Sector is
growing by approximately 25% every year. The need of Housing in India with 100
crores population looks to be very potential. As per DGTD Survey Report there is a
shortage of about 20 million houses in the country by the end of 8th Five Year Plan.
The housing has become a basic necessity, as people in India are looking forward for
improved sanitary condition. The concept of making toilet is fast growing even in
village areas, where toilet till last two years did not exist.
The cost of producing sanitaryware in India is substantially low as compared to the
advance countries, because the labour cost and the basic raw materials for
manufacturing quality sanitaryware is available at very cheap rate and in abundance.
Because of our low cost of production, Indian sanitaryware are very competitive in
the neighboring countries and hence export from India is also growing everyday.
Current Market Size:

CITY COLLEGE 3
The Indian Sanitaryware market is worth around 500 crores for the year 2001-02 with
an annual market size of around 8 million pieces. This represents a yearly growth rate
of about 3-4%.

Outlook for Sanitaryware Industry in India:

In the next decade, India is expected to be one of the world's fastest growing countries
for sanitaryware consumption. The sanitation penetration has more than trebled from
8% in 1982 to 18% in 1994 and to 29% in 1999.
The comparative penetration levels in neighboring countries are as follows: Pakistan:
50%, Sri Lanka: 65%, Malaysia: 94% and Thailand: 96%.
The government impetus to improve hygiene and sanitation is likely to increase the
demand for sanitaryware in India. Moreover the increasing urbanization of India and
the consequent requirement for residential and commercial buildings will be a major
driver for growth of sanitaryware. Along with this the focus of the central and state
governments to provide housing facilities to the poor, is also expected to generate
demand.
The National Housing Policy formulation that envisages "Housing for all" by the end
of Ninth Plan period is a big step towards this. Indira Awaas Yojana, Samgra Awaas
Yojana is programs for providing housing to the rural poor is a key step taken by the
government in this area. The housing development organizations like HUDCO, State
Housing Development Boards and Rajiv Gandhi Rural Housing Corporation Ltd. are
also playing a large role in this initiative.
It is estimated that there is currently a demand for 20 million housing units in India.
Further, a significant number of the 115 million housing units across the country will
need reconstruction for improvement. Therefore a replacement market will emerge,
though currently original equipment sanitaryware market accounts for nearly 90% of
the market.

CITY COLLEGE 4
 Company Profile
Introduction to CERA Sanitaryware Limited:
Cera Sanitaryware Limited (CSL) is one of the pioneers in the Sanitaryware segment
in India. CSL was founded in the year 1980 as a division of Madhusudan Industries
Limited. It is based in Kadi, Gujarat. Realizing the future growth prospects of this
division, in the year 2001, management thought it worthwhile to have independent
identity by de-merging and transferring the entire business to a new company. The
new company was named Cera Sanitaryware Limited It is now the third largest
company in the organized sector with over 20% market share. It is also the largest and
only listed company in pure Sanitaryware space. CSL is the first sanitary ware
company to use natural gas and the first Indian sanitary ware company to have ISO
9002 and ISO 14001 certifications for its products.
. The first sanitary ware company to use natural gas, Cera has been on the forefront of
launching a versatile color range and introducing the bath suite concept. It also
launched innovative designs and water-saving products. The twin-flush model
launched in India by Cera for the first time, it reduces the water needs of households
considerably. WCs designed to flush in just 4 liters of water is another notable
innovation by Cera. Based in Kadi, Gujarat, Cera Sanitaryware Ltd. uses German
technology, which has ensured Cera’s superiority over others in quality. Established
with an initial capacity of 3,600 MTPA, the plant has undergone several periodical up
gradations and modernizations to expand to 15,000 MTPA.
To achieve growth in the rapidly changing retail market in the country, Cera, has
launched its one of a kind Cera Bath Studios in Ahmadabad, Bangalore, Chandigarh,
Kolkata, Cochin and Hyderabad. With the opening of the Cera Bath Studios, the
discerning consumers, architects and interior designers can have full view of the
Cera’s premium ranges of WC’s, Wash Basins, Shower Panels, Shower Cubicles, Bath
Tubs, Shower Temples, Whirlpools, CP fittings etc. Cera Bath Studios will
complement its existing network of 400 distributors and 4000 retailers. Several
Bathrooms are displayed live, so that the customers can get a feel of Cera’s vast range
of products. Soon, Cera will also launch premium Spanish Tiles in Indian market.

CITY COLLEGE 5
The company is poised to become a total bathroom solutions provider. Having shown
a growth rate of more than 20% since last 3 years, Cera Sanitaryware Ltd. today is the
fastest growing sanitary ware company in India.
History of Cera Sanitaryware Limited:
Vikram Somany, Chairman & Managing Director of Cera Sanitaryware Limited. Mr.
Somany possessed entrepreneurial spirit even while he was managing Madhusudan
Industries Limited in Gujarat. This company was into production of vegetable oils and
vanaspati. The turning point came into the company when Mr. Somany met a
government delegation in 1978.When he signed the MoU to commence the sanitary
ware manufacturing unit in Kadi in North Gujarat using natural gas, the first of its
kind in India. It was a kind of milestone. And it was just the beginning.

Of course, one might argue that Mr. Somany had entrepreneurship in his blood
and had also inherited the understanding of this industry. His father had rich
experience in sanitary ware. He along with his brothers had pioneered sanitary ware in
India in the early sixties by setting up a manufacturing unit, Hindustan Sanitaryware,
in collaboration with Twyfords of UK. Yes, this did give Vikram Somany some kind
of background. Also, there was a market opportunity. But Cera's success does not rest
on these two factors. It rests on his ability in transforming the opportunity into a
business success. The opportunity was open for others as well but Cera made the most
of it. Though those were the days of sellers’ market for sanitary ware, most
companies, which went into production around the same time as Cera, did not succeed
later. So what was it that Cera did different? The quality of Cera matched international
norms. Cera focused on creative designs and paid equal attention to after-sales service
with the differentiating factor. Moreover, Mr. Somany did not neglect the other
relevant business aspects as well. Cera went on to create history with its advertising
campaign in the early 1980s: Your Bathroom is a Room Too…" An entrepreneur is
successful because he understands and respects the three Cs: customer, change and
competition. Apart from Cera, the other two major players are Parry ware and Hind
ware. Both have larger production capacities than Cera currently Cera, however, is
now expanding its capacities

CITY COLLEGE 6
To maintain that edge in the market, Cera keeps upgrading and increasing its product
portfolio regularly. Cera also recognizes its responsibility towards environment. Like
the other two major players in the organized sector,. In fact, it’s gone a step ahead.

Well, looking at Cera's track record, Mr. Somany's vision is soon likely to be
transformed into reality. He is himself quite confident about it because he has built a
strong team. Success tips from Mr. Somany of Cera Identify market opportunities
Create a dedicated team and give it full operational freedom Concentrate on brand-
building right from the beginning Recognize social and environmental responsibilities
Follow international norms of quality Keep innovating the product offerings Provide
good after-sales service.

CITY COLLEGE 7
 MISSION OF THE COMPANY:
• To setup and carry out research and development for the manufacture and
development of Sanitaryware products.
• Provide high quality to sanitaryware products.
• The Company is aiming to achieve 50-60% of market share for every product.

VISION OF THE COMPANY:

To be a total home solutions provider in the long run, providing products for every
room in the home.

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PRODUCT PROFILE:
1. Sanitaryware:

1.1 Premium Collection

a) Clair
b) Cornet
c) Calibre
d) Casino
1.2 Regular Collection

a) EWCs & Squatting Pans

b) Sinks and accessories
c) Washbasin
d) Urinals & Sensors
e) Exclusive Export Range
1.3 Senator collection
a) Calida Table Top
b) Capsule Wash Basin
c) Casablanca Bath Suite
d) Celebrity Bath Suite
e) Chancellor Bath Suite
f) Clarion
g) Cosmo Bath Ware
e) coupe
f) Cruse Bath Suite

CITY COLLEGE 9
1.4 Wall hung basin

a) CLAIR (EWC Wall Hung)

b) CALIBRE (EWC Wall Hung)
c) CIRCLE (UNDER-OVER COUNTER)
d) CLASSIC (EWC Wall Hung 'P' -SEAT COVER)
e) COMET (Counter Top Wash Basin)
f) OVAL (Under, Over Counter Wash Basin)

2. Glass Basins

2.1 Cathie_GB152 Glass Basin

2.2 Charmaine_GB141 Glass
2.3 Chrystina-Tempered Glass Basin
2.4 Cleo_GB115-Glass Basin
2.5 Cleopatra_GB131 Glass Basin
2.6 Correa_GB120- glass basin
3. SHOWER RANGE:

3.1 Cadet_8841- Shower Partition

3.2 Candila-Shower Cubicle (with shower tray)
3.3 Cocoon-Shower Cubicle (with shower tray)

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3.4 Cupid_Shower Tray, Hot & Cold Mixer with divertor, Shower Jets Rain-Shower
& Hand-Shower, Foot Massager.
3.5 czarina_8711-Bath Tub with Whirlpool, Hot & Cold Mixer with divertor.

4. WHIRLPOOL & BATH TUBS:

4.1 Carol-Bath Tub

4.2 Citadel Bath Tub
4.3 Colleen_8012-Whirlpool, Hot & Cold Mixer with Divertor,
4.3 Corner Panel (One-Piece) corner.
4.4 Cushan-Hot & Cold Mixer with Diverter.

5. Pozzi Ginori

CITY COLLEGE 11
International presence and exports:
CERA has exported, in the past, to developed countries like the US, huge quantities.
However, as the domestic market was giving better realization, CERA has to curtail
its exports. Currently, CERA has presence in several markets like Gulf, New Zealand,
Greece, South Africa, etc. With the production going up in the coming months, CERA
is now looking at export market more seriously and talks are on with certain parties
for OE supplies.

World Technology:
To keep ahead of competition, Cera has always kept its technology ahead of rest of
the players in India. It took help from ceramic technology suppliers from several
countries in Europe time and again so that its process and products are of international
norms. It also helped Cera bag large export orders from the US, unmatched by any
other Indian sanitaryware company. Cera could easily make products conforming to
ANSI, apart from European, Australian, Canadian and Indian norms. CERA has been
constantly using internationally renowned consultants in the ceramic field to upgrade
its production processes, yield and finished goods quality.
Product innovation has been Cera’s forte. One after the other, Cera launched not only
new designs, but even new innovations in India. The first was bathsuites—a unique
design concept consisting of WCs, wash basins, bidets and accessories, giving the
bathroom a distinct personality. A series of bathsuites—Crowne, Conca, Capri,
Cornet, Comet, Clair, Cognac, Celebrity, Celeste, etc.—were launched in quick
succession. Cera is also credited with launch India’s first monoblock EWC, Cologne
and now has an array of one piece ewcs & wash basins to its kitty.

Innovation:
Water scarcity has always been a concern in most parts of India. When there is
shortage of water, can we not think of conserving it, by sending less water per flush
down the drain? This concern was brainstormed by our technical and research
personnel, designers and quality assurance and marketing personnel and thus the
concept of twin action flushing was born. CERA found that in most households, a WC
is used more as a urinal and still it was using 8 to 12 liters of water for each flush.
Cera then came up with the idea of half flush along with full flush. A household can

CITY COLLEGE 12
save substantial quantity of water by installing twin flush. Even where water is
available in abundance, we advise twin flush because the cost of electricity for
pumping extra water to overhead tank can be saved. In India, ever since cera
pioneered the twin action coupled closets two years back, it has caught the fancy of all
architects, plumbing consultants, trade, customers and even competitors. One after the
other, all manufacturers commenced twin action.
For the economy range, Cera have also launched twin flush model of Plastic Cisterns.

Entry barriers for CERA in organized sector:

The entry barriers for organized sector are-huge manpower requirements, since
sanitaryware manufacturing is highly labor intensive, non-availability of standardized
raw-materials (every manufacturer has to source raw materials from mines and have
its own quality assurance systems), low market size (the market currently is estimated
to be just around Rs7bn) and innumerable number of unorganized sector players who
thrive partly on government policy of levy-exemption and partly on evasion of taxes.
Organized sector currently contributed nearly 50% of volume sales in India. However,
as quality consciousness and brand-awareness are increasing among consumers, over
a period of time, the unorganized sector is likely to go up considerably.

Currently, the replacement market is estimated to be just 10% of the total market.
However, as the market matures, it is likely to go up exponentially.

CITY COLLEGE 13
 ORGANISATIONAL CHART
Board of Directors

Managing Director

Vice Vice Vice Vice Vice Vice

President President President President President President
Sales HRD & Finance R&D Projects Marketing
Personnel

Regional HRD HRD Marketing

Sales Manager Manager Manager
Manager

Sales Asst. Quality Project Asst.

Officer Manager Assts. Manager Mrkg. Mgr

Market Assistants Manager Manager Regional

Intelligent Accnts Tax Mrkg. Mgr
Assistants

Factory
Field
Accnts.
Officers

Market
Intelligent
System

CITY COLLEGE 14
 WHO IS WHO & ROLE IN THE ORGANIZATION?:
Board of Directors:

Vikram Somany - Chairman-cum-Managing Director

Sajan Kumar Pasari – Director
O P Bhandari – Director
D P Goyal – Director
Shree Narayan Mohata – Director
Vidush Somany - Executive Director
S C Kothari, - Whole Time Director
Senior Management:
S C Kothari - Chief Executive Officer
Santosh Nema - Chief Operating Officer

Works:
M K Bhandari - President (Works)
S K Ghatak - Senior Vice President (Works)
R B Shah - Chief Financial Officer
Marketing:
Atul Sanghvi - Senior Vice President (Marketing)
Domestic

P K Shashidharan - General Manager (Marketing)

Parthiv Dave - General Manager (Marketing)
B K Desai - Deputy General Manager (Sales Administration)
N V Chidambaram - Deputy General Manager (Marketing)
Exports
Gaurang Bhatt - Deputy General Manager (Exports)
Other Key Personnel
Narendra N Patel - GM and Company Secretary

CITY COLLEGE 15
 FUNCTIONAL DEPARTMENT:

Functional
Area

H.R.
Manufacturing Financial
Marketing
DEPARTMENT Department Department
Department

PERSONNEL DEPARTMENT

Personnel Department has got a vital role to play in every business organization. It
can be stated that without the active involvement personnel dept. no work can be done
in the organization whether it is production work or managerial work. The Vice
president heads the personnel dept. of Cera Sanitaryware Ltd. and he is assisted by
managers and other staffs. All the recruitment selection and Placement and salary
fixation jobs are done by this Dept.
In this unit of company, there is a total strength of 20 employees the number of
managerial staff is 7. The contractor to whom they have been given fixes the
remuneration of those employees.

Human resource is present in abundance and skills are traditionally inherited. The
owner usually deals with management issues and marketing related activities. Most of
the labor is semi skilled and are trained on job. There is no specialized marketing or
accounts department. They facilitate their sales only on the basis of personal contacts
and no proper accounts are maintained therefore certain problems related to tax
return, monitoring and evaluation are faced. Only primary or intermediate level
employees are handling accounts. Glazing supervisor, Body supervisor, Kiln

CITY COLLEGE 16
 supervisor, Designing or molding in-charge and accountant are considered middle
level management that are ceramics diploma holders or experienced persons and also
easily available in the market.

The overall working of this unit takes place in a single shift i.e. from 8.30 to
5.30, two tea breaks and lunch break is given between this timing.
Function of Personnel Department
 Salary computation
 Salary disbursement
 Leave Marking
 Attendance
 Manpower Planning
 Recruitment
 Transfer and promotion

Cera Sanitaryware Ltd obtains its employees for performing both

administrative and operative jobs through various modes. Lower level and middle
level employee are being selected from the local area itself where as managerial
employees are recruited by the following modes.
 Newspaper Advertisement
 Weekly Advertisement
 Recruiting and selecting from other reputed companies
 Transfer from other units

Selection procedure
The company place advertisement for the prospective employees and the
application received for different post are scrutinized by the personal dept. All the
application are scrutinized or the basis of the selection criteria followed by the
company. The company for different jobs has fixed different qualifications. For
production workers, technical qualification is compulsory where as for managerial
employees minimum qualification is graduation R&D and quality assurance employee
should be Graduate with Diploma / Degree in Material Management. Qualification for
Finance In-charge is C.A. with relevant experience.

CITY COLLEGE 17
Test
After having scrutinized the application received, next step is conducting
different tests. Tests are conducted to measure the candidate’s abilities like

1. Mental caliber
2. Physical Fitness
3. Subject Knowledge
4. Communication skill etc

Interview
Interview is a formal consolation to evaluate the aptitude of prospective
employee it is face- to- face and observation method to evaluate whether the
candidate is suited for the post to which he has applied After the interview the
interviewer comes to know about the skills and abilities of the candidate.

Final selection
Candidates who successfully complete the interview will be selected to the
particular job.

Placement and orientation

Placement is the final step in the selection process. It is the process of
assigning the employee with the job for which he/she has been selected. Proper
placement is necessary in order to avoid employee turnover. Proper placement also
helps in reducing the rate of absenteeism and accident rates.

Training
Employees are given adequate training in order to make them familiar with the
work for which he/she is selected. Both on the job and off the job training is given to
the employees. Through training employees are imparted with the basic knowledge
and skills for the effective performance of job.

CITY COLLEGE 18
Promotion
Promotion is granted to the employees on the basis of performance on their
respective jobs. Experience is also taken in to consideration while granting promotion
to employees.

Remuneration system
Remuneration package of Cera Sanitaryware Ltd is fixed in accordance with the
common industrial standards. The fixation and disbursement of remuneration is
entrusted with the personal department.

The components of employee remuneration in Cera Sanitaryware Ltd are as

follows:
1. Salary/Wages
2. Provident fund
3. ESI
4. Bonus
5. Labor welfare fund
The contribution to P.F. and ESI are done in accordance with section 5 of the
employees PF and miscellaneous act of 1952. The remuneration to workers is subject
to revise after negotiation between union and management. Percentage increment is
made after discussion with unions.

Attendance Control
The company issues an attendance card to every general worker, which
contains particular columns for each day of every month. The security at the gate will
mark the attendance in the card and in the register, which is kept with him .Particular
registers are maintained for managerial staff. Total attendance is calculated with this
card in every month and wages and overtime wages are calculated.
Leave
The company provides total of 13 days public holidays plus Sundays in a year.
Sick leaves are also allowed to workers for sufficient period. Maternity leave is
allowed to women workers.

CITY COLLEGE 19
Other welfare facilities
First Aid
The company is maintaining a first aid box, which contains first aid medicines.

Uniform
The company provides uniform to all the employees in the organization. The
uniform of managerial and general workers is different

Healthy and Safety

The company provides all the necessary facilities to protect the health of its
employees. Strict hygienic measures are being observed inside the factory.
Employees who deals directly with chemicals are provides with gumboots,
Hand glows and masks.
Recreation
The company organizes an annual meet of its employees every year. It
includes cultural activities performed by the employees

CITY COLLEGE 20
 PRODUCTION DEPARTMENT

In macroeconomics production is the act of making things; in particular the act of

making product that will be traded or sold commercially. Production decision
concentrates on what goods to produce, how to produce them, the cost of producing
them and optimizing the mix of resource inputs used in there production. This
production information then can be combined with market information (like demand
and marginal revenue) to determine the quantity of product to produce and optimum
price.

Product design is based on:

• Consumer acceptance
• Manufacture capability
• Developing capability
• Quality consideration
• By product possibilities

Under production department Company have these following units:

• Quality assurance Department
• Purchase Department
• R & D Department
• Stores Department
• Maintenance Department

Quality assurance Department:

A separate quality assurance department is functioning in this unit to ensure
that all the products meet the required quality. The quality assurance dept. is entrusted
with the responsibility of preparing quality control plans and measures and evaluating
product quality.

CITY COLLEGE 21
Important Function
1. The department makes sure that the raw materials comply with the quality
specifications by collecting samples. Raw materials are accepted if it conforms
to specified quality and are rejected if the raw materials do not comply with
the specified quality.
2. The department checks the quality of output after the completion of each stage of
production.
3. The department attends the customer complaints on quality aspects and takes
corrective action.
4. The department ensures that necessary actions have been taken for the assurance of
quality of the final product.

Purchase Department:
The purchase department is responsible for the continuous availability of raw material
to the production department. The production department should see that all the
required materials are purchased at the right time in the right quantity at the right
price. Continuous availability of all the raw material are necessary to keep the
production flow uninterrupted. The company makes purchases from suppliers outside
as well as inside the state.

Purchase Procedure:
The company prepares a detailed purchase budget at the beginning of every year,
which contains the item and quantity to be purchased of each item. The bill of
materials can also be used to know the requirement of raw materials for a certain
period of time. The purchase in-charge, after receiving the purchase requisition form
initiated by the storekeeper makes necessary arrangements for inviting tender for
supplier selection. The supplier selection then company conducts vendor evaluation
by collecting complete information about the suppliers. While evaluating supplier’s
information like creditworthiness, past experience, delivery time, capacity to supply,
mode of payment are collected and evaluated. An approval list of suppliers is prepared
after the completion of vendor evaluation. After having selected the supplier, the
purchase department proceeds to place the order for materials, specifying the details
of goods. The purchase order contains details such as order number and date,

CITY COLLEGE 22
suppliers name & address, rate and number of items ordered, mode and date of
delivery etc...... The dept sends reminder to supplier for the timely delivery of goods.
Goods are verified at the time of receiving with the help of delivery note
sent by the supplier and the purchase order. Quality assurance is done by quality
department by taking samples from the arrived materials. Goods are received only
after the completion of quality and quantity inspection. This follows the preparation
of material received note.

R & D Department:
A well- equipped and well-organized R & D department is functioning under Cera
Sanitaryware Ltd to develop new products and to improve the existing products. The
department conducts detailed research before the introduction of every new product.
The company is giving more attention and importance on R & D. Well
qualified and dedicated staffs are the main strength of the R & D department the
company’s latest product Pozzi Ginnori is formulated after conducting various
research. A big R & D lab is being constructed with in the premises of this unit. The R
& D department is headed by R & D in-charge and he is assisted by R & D assistants.
The R & D department is playing a vital role in the success of every products of the
company. The human resource of R & D division includes qualified chemists and
trained laboratory technicians whom implements internationally acknowledged
analytical procedures. It can be stated the reason for the increasing use of the
company’s products is the effort of its R & D department, which formulates quality
products.

Stores Department:
Stores Department is responsible for storing materials and finished products. Stores
department is headed by storekeeper and he is assisted by assistants. This unit has a
centralized store and it is from here materials are dent to various departments. The
departments keep the finished good and all the raw materials required for the
production. Raw materials are issued according to the requirements from respective
departments.

CITY COLLEGE 23
 Functions:
1. The department checks the weights of the raw materials when they are received.
2. The department issues raw materials to the production department.
3. The stores department maintains different types of books and registers for the
proper control of materials. Various records are maintained in stores department are
1. Goods Received note
2. Stock Register
3. Material Purchase register
4. Quality Register (for recording items of low quality)

Maintenance Department:
The maintenance department is responsible for the smooth and proper working of all
the machines. This department ensures that all the machines are maintained properly
which is necessary for the uninterrupted flow of production. The maintenance
department is headed by maintenance in charge and he is assisted by maintenance
staff. The maintenance department performs mainly 3 types of maintenance works
namely
• Preventive maintenance
• Periodic Maintenance
• Break down Maintenance

Preventive maintenance
The maintenance works done for the prevention of machine break down is known as
preventive maintenances. Lubrication, oiling, greasing etc. are the examples of
preventive maintenance.

Periodic Maintenance
Periodic maintenance is done monthly or weekly and it is a part of preventive
maintenance. Examples of periodic maintenance are cleaning and over hauling.

CITY COLLEGE 24
Break down Maintenance:
Break down maintenance is done at the time of breakdown of machines. Break down
of machines are informed to the department when it occurs and the department attends
the problem.

The operations/Manufacturing process:

Machinery Suppliers:
Spray booth, Glaze Containers, drums and kilns are the machinery used for ceramics
sanitary ware factory. Kilns are designed by ceramics engineers and manufactured by
the kiln makers. There are about 12 kiln makers which are experts and fulfilling the
need of industry. Glaze containers, spray both and drums are prepared by the
engineering sector of the Cera.

Raw Material Suppliers:

Supply chain is crucial to this field and without proper raw material supply these units
cannot keep up with the production. There are about 4 to 5 companies supplying raw
material to ceramics industry in Cera. These suppliers procure clay from mine
owners1 and import barium carbonate and china clay from china and zirconium from
England, USA, Italy, and Malaysia for fulfilling the raw material requirement of
Ceramics Sanitary ware industry. However raw material supply is irregular and
manufacturers have to face late delivery of raw material or shortage of raw material.

Analysis of Production Operations:

1. Raw Material:
Raw materials for body include Quarts, Feldspar, China clays and Ball clay Mianwali
clay, K.D. 7 Stone and K.D. 10 Stone. Raw materials for glaze include Quartz,
Feldspar, and Limestone, Zinc oxide, Barium oxide, Zirconium and ceramic colors.
Plaster of the Paris is the material that is used for modeling and molding of the
Ceramics sanitary ware.

CITY COLLEGE 25
 2. Slip Preparations and Glaze Making:
For the slip preparation the raw materials are mixed with water as per the
requirement. Proper composition along with the sufficient amount of water then gets
loaded to the ball mills for grinding.
Glaze is a glasslike, multi-ingredient, silicate thin layer, which adheres to the surface
of ceramic body. It is usually sprayed upon dry body by manual or automatic spraying
method, which after firing produces smooth, glossy, and surface with beautiful color
and luster. So properties of glaze have large influence on quality of products.
Generally ball milling is used to prepare glaze.

3. Casting and Drying:

Slip is cast into plaster moulds. Due to the absorption and water character of porous
moulds, an even thin layer gets formed on the surface which becomes thicker with
time. When a desired thickness is arrived, surplus slip is poured out.
Finally the layer continues to retract by de-watering resulting in the gross body.
Before next process, all products need to be dried to a low water content to increase
the strength of body, which is called drying.

4. Glazing:
There are many glazing methods such as spraying glaze, dipping glaze, pouring glaze,
brushing glaze etc. Sanitary wares are mostly adopted spraying glaze method because
large volume complicated shape, low strength of body.
Spraying glaze may be manual glazing or automatic glazing. Manual glazing is done
in a booth with sufficient de-dust installation, and automatic glaze spraying is done on
the conveying belt.

5. Firing:
These sprayed clay wares are then taken to the kiln for firing. As a result the bodies
will take place a series of physical and chemical reactions, and will take a fixed shape.
The bodies are put in the entrance of tunnel and the products are pushed out from the
exit. Fuel is burnt in the resisting firewall on both sides of tunnel. The tunnel kiln is
consisting of three zones.
i. Preheating zone

CITY COLLEGE 26
 ii. Heating zone
iii. Cooling zone
The heating zone has burners on the both sides, in the third section the product cools
down by exhausting. The temperature of every section is strictly controlled by
automatic ventilation equipment and the temperature-controlling facilities called
thermo couples to ensure to fire every product evenly. Continuous kilns are classified
as roller kilns and tunnel kilns, the roller kilns support and convey products by high
temperature resistance ceramic rolling stick. In the tunnel Kiln, kiln cars are used that
are made from steel frame wheels on which low mass refectories, silicon carbide
board etc. are built to support products. These cars are pushed by hydraulic Pusher.

6. Inspection, Repairing, Re-firing and Packing:

This is the last process of production. Finished products are determined according to
stipulated standards to select passed products and un-passed parts by repairing and re-
firing. Passed products are carefully packed and then send to customers.

7. Quality Assurance: Currently the local market is being invaded by the cheap and
better quality Chinese ceramics products. This invasion along with strong friction
from other international manufacturers, local manufactured products are suffering
from huge losses. Their biggest concern is the quality which requires high
manufacturing cost and over whelming rejection rates (7 to 8 % scrap rate is common
to this industry and sometimes it crosses this threshold too). One of the main causes of
this problem is the low and inconsistent quality standards. There is no standards
conformance control at the source (mines) from where the clay is excavated and
manufacturers don’t have any facility where this raw material can be pre-processed
before being used in production line. The results are as follows:
i) - Finished products show cracks after whole process of casting and baking has been
undertaken which cause loss of man hours, machine hours and finance.
ii) - Inconsistency of material causes pin holes and cracks which result into an extra
fragile product which can rupture during use causing a fatal loss of customer
satisfaction and further market penetration.

CITY COLLEGE 27
iii) - Few manufacturers are setting up their own pre-processing setups which do not
provide required material refinement and add to extra burden of pre-processing cost
resulting in higher cost of production.
iv) - Manufacturers can import preprocessed material from china and other countries
but it would cost them more than double.

Performance by Production Department:

The use of German know-how ensured Cera’s technological superiority over others in
uncompromising quality. Established with an initial capacity of 3,500 MTPA, the
plant underwent several periodical up gradations and modernizations to reach 15,000
MTPA. The plant is under massive expansion and will be largest single location
manufacturer in India as far as sanitaryware is concerned.

CITY COLLEGE 28
To keep ahead of competition, Cera has always kept its technology ahead of rest of
the players in India. It took help from ceramic technology suppliers from several
countries in Europe time and again so that its process and products are of international
norms. It also helped Cera bag large export orders from the US, unmatched by any
other Indian sanitaryware company. Cera could easily make products conforming to
ANSI, apart from European, Australian, Canadian and Indian norms. CERA has been

CITY COLLEGE 29
 constantly using internationally renowned consultants in the ceramic field to upgrade
its production processes, yield and finished goods quality.

Suggestion to increase Production Capacity:

• Glazing by robots to improve the consistency.
• Fast Firing Kilns to improve the flexibility.
• Since the manufacturing of sanitaryware involves a high degree of manual labour,
there is a noticeable trend of movement of manufacturing from the developed
countries to developing countries to reduce manufacturing costs.

CITY COLLEGE 30
 FINANCE DEPARTMENT

Finance is said to be the life blood of any business for proper allocation and
management of the funds organization requires a finance department. Cera is having a
separate finance department to take care of all these activities the following is the
departmental chart of the same.

Functions of the department:

1) Maintaining proper books of accounts

2) Reporting to the management issues relating to finance

3) Obtaining of funds from various sources and using it efficiently.

4) Tax planning

5) Controlling (regular assessment of financial activities)

CITY COLLEGE 31
Financial analysis:

Cera Sanitaryware Limited (CSL), the largest and only listed company in pure
sanitaryware space in India announced all time high revenue of Rs.107.58 crore for
the year ended March 31, 2007 up by 33.4% from Rs 80.64 crore. Net Profit has
crossed the Rs 9.07 crore marks from Rs. 5.90 crore, a jump of 54% over the previous
year due to higher sales and better operating margins. Gross profit of the company has
crossed Rs.17.52 Crore up by 51% from 11.64 Crores in previous year.
Sanitaryware is growing at more than 28% since the last 3 years and it is the fastest
growing sanitaryware company in India today.
CSL’s total income at Rs. 34.34 crores for the fourth quarter ended on March 31, 2007
was up 42% compared to Rs .24.26 crores in the corresponding quarter of the last
year. Net Profit of the company stood at Rs. 3.18 crores, registering growth of 48%,
compared to a net profit of Rs. 2.15 crores for the corresponding period in the
previous year.
The Operating Profit for Q4 grew by 75.49% yoy from an operating profit of Rs. 4.08
crores in the corresponding quarter of the last year. Other expenditure Rs. 27.18 crores
has gone up by 34% compared to other expenditure of Rs. 20.22 crores for the
corresponding period in the previous year.

The company's Net Sales, PBIDT and PAT have registered a CAGR of 26.80%,
43.81% and 65.60% respectively, over the last five years. Operating Margins for the
company increased to 19.80% in the current fiscal compared to 13.03% last year. EPS
for the year 2006 – 07 rose to Rs. 16.76 v/s Rs. 10.98 for 2005 – 06
According to the company's audited results for the quarter approved by the Board of
Directors on May 16, 2007, following are the financial highlights:

CITY COLLEGE 32
(Rs Crore)

Quarter
Quarter IV Year Year
IV %
Particulars Ended Ended Ended % Change
Ended Change
31/03/07 31/03/07 31/03/06
31/03/06
Total
34.34 24.26 41.55% 107.58 80.63 33.42%
Revenue
Operating
Profit 7.16 4.08 75.49% 19.80 13.03 51.96%
[PBDIT]
PBT 5.17 3.26 58.59% 13.98 8.97 55.85%
PAT 3.16 2.15 47.90% 9.07 5.90 53.73%
OPM 20.85% 16.81% 24.04% 18.40% 16.16% 13.86%

CITY COLLEGE 33
 Marketing Department:

Marketing is a subject having wide spectrum. Marketing deals with the whole
process of entering markets, establishing profitable positions and building loyal
customer relationship. As market change, so does marketing. Marketing is no longer a
company department charged with a limited numbers of tasks. Managing and
advertising. Sending out direct mail, finding sales leads. Providing customer service.
It must drive the company’s vision, mission and strategic planning. Marketing is about
deciding who the company wants as its customers, Which needs to satisfy, what
products and services to offer, what prices to set, what communications to send and
receive. What channel of distribution to use and what partnership to develop.

MARKETING STRATEGIES
All marketing strategies are built on STP- segmentation, targeting, and positioning.
Companies discover different needs and groups in the market place, target those needs
and groups that the companies can satisfy in a superior way, and then positions its
offering so that the target market recognizes the companies distinctive offering and
image. No company can win, if its product and offering resembles every other product
and offerings. Today most companies are guilty of strategy convergence namely
undifferentiated strategies. Companies must pursue meaningful and relevant
positioning and differentiation. Companies normally reformulate their marketing
strategies and offerings several times. Economic condition changes, competitors
launch new and the produce passes through new stages of buyer interests and
requirements. Consequently strategies appropriate to each stage in the products life
cycle must be developed.

CITY COLLEGE 34
 MARKETING STRATEGIES OF Cera Sanitaryware LTD.
Whole the marketing strategies of company is formulated and controlled by
the head office at Ahmedabad directly. There is no involvement from the production
units situated at different part of the country.

The following are the marketing strategies adopted by the company:-

1. To deliver quality products at reasonable prices to all the class of the society.
2. Positioning the products in its most suitable manner by developing a unique selling
preposition. (Usp)
3. Differentials the products in order to get distinctive identity in the market.
4. Adopting sales promotional schemes for both the dealers and customers.
5. Creating brand awareness in the customers through continuous advertisements and
event sponsorship.

DISTRIBUTION CHANNELS
Marketing channels are set of interdependent organization involved in the
process of marketing a product or service available for use or consumption. Channel
decisions are among the most critical decision facing the management. The channels
chosen intimately affect all the other marketing decisions. The distribution system is a
key external source. It ranks in importance with key internal resources such as
manufacturing, research, and final sales personal facilities.

CHANNEL FUNCTIONS
• They gather information about potential and current competitors and other actors and
forces in the marketing environment.
• They develop and disseminate persuasive communications to stimulate purchasing.
• They reach agreement on price and other terms so that transfer of ownership or
possession can be done easily.
• They place order with manufacturers.
• They acquire the funds to finance investments at different levels in the marketing
channel.
• They assume risk connected with carrying out channel work.

CITY COLLEGE 35
Channel of distribution of Cera Sanitaryware Ltd.

The Channel of distribution of the company is functioning very well to meet

the aim of reaching the product to customers at the right time. Following is the chain
of distribution of the company.

Super Stocker

Distributors

Whole Sellers

Retailers

Finished products are taken by super stockers from the company and it is the
Super stockers who supply the products to the distributors.

ADVERTISEMENT
In today’s competitive business environment advertisement has got a crucial
role in the success of every business organization. No company can win the
competition if its advertisement strategies are not properly planned and created.
“Advertisement is any paid form of non-personal presentation and promotion of ideas,
goods or services by an identified sponsor”. Advertisement makes the customers
aware about the products and services of the company. It can be seen that, behind the
success of every products in that market, advertisement has played an important role.

KINDS OF ADVERTISEMENT
Information advertising
Aims to create awareness and knowledge of new products or new features of
existing products.
Persuasive advertising
Aims to create liking, preference, conviction and purchase of products or
services

CITY COLLEGE 36
Reminder Advertising
Aims to stimulate repeat purchase of products and service

Reinforcement advertising
Aims to convince current purchasers that they made the right choice.

Advertisement policy of Cera Sanitaryware ltd.

The company makes use of various Medias to communicate its message and
product features to the customers. All the advertisement are planned and implemented
directly from the head office

Different advertisement Medias used by the company are as follows

• Newspapers
• Magazines
• T.V. advertisement
• Board and roadside wall advertisements
Apart from the above-mentioned Medias the company sponsors events and
serials, which are broadcasted in television

Sales Promotion
Sales promotion, a key ingredient in marketing campaigns, consists of a
diverse collection of incentive tools, mostly short term, designed to stimulate quicker
or greater purchase of particular products or services by consumer. Sales promotions.

Purpose of sales Promotion.

Sales promotion tools vary in their specific objectives. A free sample
stimulates consumer trial, whereas a free management advisory service aims at
generating a large term relationship with a retailer. Sellers use incentive type
promotions to attract new users, to reward loyal customers and to increase the
repurchase rates of occasional users. Sales promotion often attracts brand switchers,
who are primarily looking for low price, good value, or premium. Sales promotions
are unlikely to turn them into loyal users. Sales promotion used in markets of high

CITY COLLEGE 37
brand similarity produce a high sales response in the short run but little permanent
gain in market share. In markets if high brand dissimilarity, sales promotion can alter
market permanently. Sales promotion enables manufactures to adjust to short-term
variations in demand and supply.

Cera’s product mix and new marketing strategies:

Cera has a mix of products that would cater to all needs of consumer. Cera has top end
products like the Senator Collection, the Shower Temples with Jacuzzi features in
them. Cera also has the Premium Collection focused at middle end users and the
Regular collection which includes the Indian EWCs as well as European EWCs for
the lower end customers. In Bath Fittings, the Single Lever Bath fittings are for the
elite, followed by the Quarter turn and the half turn fittings meant for people looking
for more economical range.

Performance of the Cera Sanitaryware Ltd:

 Cera is now the third largest company in the organized sector with over 20%
market share
 Cera had posted a growth of over 11 percent in the financial year 2002-03 and
grown by another 23 percent in the financial year 2003-04.
 The turnover of the company grew from Rs 45.86 crores in 2002-03 to Rs 56.57
crores in 2003-04. With the launch of the premium range, the company expects a
growth of another 30 per cent in the financial year 2004-05.
 The company reported a 51.79% growth in net profits to Rs 17.79 million for the
quarter ended Sep. 2006 as against Rs 11.72 million during the corresponding
quarter in the previous year. Sales for this period had increased 27.03% to Rs
246.27 million from Rs 193.86 million. Cera, for the year ended Mar. 2006, had
reported a 31.20% increase in sales to Rs 799.47 million as against Rs 609.37
million for year ended Mar. 2005. Net profit for this period had also doubled to Rs
58.99 million as against Rs 23.91 million. The EPS for FY06 stood at Rs 10.98.
 It has over 500 distributors and 5000 retailers in the country today.

CITY COLLEGE 38
 Policy of Cera Sanitaryware ltd.:

1. Policy of Health and Safety: In order to avoid accidents and unhealthy

environments, managers should give high priority to:
1• Reducing the frequency of accidents by good plant design and good operational
control;
2• Minimizing the consequences if they occur by appropriate plant design and
procedures, but in addition a predetermined set of emergency plans for personnel.
3• Be aware of the possible origin of accidents
There are several inputs needed ranging from commitment of the management,
involvement of employees and an organised approach. The following issues should be
taken into account:
1• Is the management of the company explicitly committed to the continuous
improvement of the health and safety situation?
2• Is there a safety / medical officer (full time or part time) in charge of health and safety
affairs?
3• Is there a programme for continuous improvement of working conditions and
procedures in the area of health and safety?
4• Are operators and other employees actively involved in those programmes?
5• Does the company provide health and safety training and instructions to all relevant
personnel, especially the workers dealing with dangerous machinery and / or hazardous
chemicals (introductory and on-going)?
6• Is there a good co-operation with labour and safety inspections and reviews?
7• Is there a regular analysis of risks (e.g., once a year)?

In order to check the health and safety situation at the company, please look at the
following points of attention:
1• Does the company keep record of the sick leave rates?
2• Are sick leave rates compared to peer companies?
3• Is there an overview of the quantity and nature of accidents?
4• Are accidents investigated and reported with a view to improve health and safety?
5• What is the estimated job rotation among operators?
6• How does this compare to other companies in the sector?

CITY COLLEGE 39
7• Is there a planned effort to minimize the consequences if accidents occur?
8• Is there an emergency plan?
9• Does the company organize emergency drills?
10• Is information on possible hazards and risks disseminated to workers?
11• Is smoking prohibited at the production facility?
• Are the workers sufficiently equipped with protective gear, such as rubber
gloves, inhalation masks, overalls, safety shoes, helmets, protective glasses, etc.?
1
2Workplace facilities
1• Is the workplace clean and tidy?
2• Are distances between raw material equipment and processing equipment kept to a
minimum?
3• Are there ample artificial light facilities and are the work spaces well-lit?
4• Are spaces that receive too much daylight properly shielded?
5• Is the indoor climate acceptable in terms of temperature, moisture, draught and air
refreshment?

2. Quality policy: Cera’s quality policy is that "quality is the eternal pursue of the
company, customers are sincere guide of the enterprise ".company will as always
move towards the domestic and foreign markets by the high quality product and
faithful service.

CITY COLLEGE 40
 Certificates:
 Cera is environmentally conscious and has ISO 14001 certification for ecofriendly
plant operations.
 Cera has ISO 9002 and ISO 14001 certifications for its products.

Achievements:
 Established with an initial capacity of 3,600 MTPA, the plant has undergone several
periodical up gradations and modernizations to expand to 15,000 MTPA.

 Established with an initial capacity of 3, 10,000 pieces per annum, the plant
underwent several periodical up gradations and modernizations to reach 1.8 million
pieces per annum capacity by June 2007.

 The year 2006-07 saw CERA grow by 34%, thus becoming the fastest growing
sanitaryware company in India.

 Having shown a growth rate of more than 20% since last 3 years, Cera Sanitaryware
Ltd. today is the fastest growing sanitary ware company in India.
 Cera has a production capacity of 1.3 million pieces. Cera is upgrading it to reach 2.2
million pieces by this year end.

CITY COLLEGE 41
 SWOT Analysis:

Strengths
 Local base for machinery manufacturers
 Extensive supplier industry
 Strong distribution channel

Weaknesses
 Non-availability of processed raw materials
 High Utilities Cost of utilities (gas & electricity)
 Lack of Modern Kiln technology leading to high energy losses (30%)

Opportunities
 Rising domestic demand for sanitary ware and table ware
 Large export potential in sanitary ware in Middle East, Africa and Central Asia.
 Exploit local expertise in related sectors, clusters technologies.

Threats
 Low priced import from china
 Changing consumer preferences
 Large surplus capacities in the international market.
 Large unorganized existence

CITY COLLEGE 42
 Future Project:

• Cera is planning to launch Italian heritage of Pozzi-Ginori in the whole part of India.
The rich Italian heritage of Pozzi-Ginori is brought to India by Cera.. Pozzi-Ginori is
available only in select cities and outlets in India. Cera is planning to launch this
Italian heritage of Pozzi-Ginori in the whole part of India. Pozzi-Ginori brings
international excellence in designer Sanitaryware in India. Pozzi-Ginori represents the
history of Italian art and design in bathroom ceramics.
• CERA is planning to launch Sanitec group’s wellness product range including shower
boxes and whirlpools soon.

CITY COLLEGE 43
 A Study On Customer Response towards Technical Assistance:

Objective of the study:

• To know the Customer satisfaction towards technical assistance
• To know customers expectations about after sales service provided by the
company

Scope of the Study:

This study gives detailed view about customer satisfaction towards after sales
assistance by Cera Sanitaryware Ltd. The study focuses on to make a solution for the
customer dissatisfaction towards technical assistance those facing by Cera
Sanitaryware Ltd. The analysis would be helpful to the management for taking
decision regarding marketing strategies and formulating suitable policies to make
their business more effective and to make customer satisfied.

Data collection:
Primary Data:
Through Questionnaire

Limitation of the study.

Many constraints were involved in doing this study. Some of them are as follows.
• Time is critical factor limiting this study.
• To reach every client.
• The data provided by the company may not be 100% correct as the
Company has.
• Finding and suggestion have been given from personal point of view.
• Due to work pressure, detailed interaction with the executives was not possible.
• Unable to find fair responses from various clients. Because there were different
response from different client.

CITY COLLEGE 44
 Data Analysis
Table No.1 Customer’s opinion about product use:

Attributes No. of respondent Percentage

Not satisfied 5 10%
Satisfied 15 30%
Good 22 44%
Very good 8 16%

Source: Survey data

Customer’s opinion about product

use:

Not
Very good satisfied
16% 10%

Satisfied
30%
Good
44%

Not satisfied Satisfied Good Very good

Analysis: From the above showing statistics it is observed that in the survey
44% customers have good opinion,30% are sufficient and 16% have very
good opinion, only 10% customer have not sufficient opinion about product
use.

Table No.2 Method of Technical assistance gets by customer:

CITY COLLEGE 45
Attributes No. of respondent Percentage
User manual 25 50%
Helpline no. & 10 20%
User Manual
Website & User 5 10%
Manual
From all above 10 20%
Total no. of 50
respondent

Source: Survey Data

Method of Technical assistance gets by customer:

From all above

20%

Website & User

User manual
Manual
50%
10%
Helpline no. &
User Manual
20%
User manual Helpline no. & User Manual
Website & User Manual From all above

Analysis: 50% customer has got technical assistance by User Manual.20%

from helpline no. and user manual, 10 % from website and user manual. 20%
get it from all methods.

Table No.3 Technical assistance provided by company is helpful for customer

product:

Attributes No. of respondent Percentage

CITY COLLEGE 46
Yes 8 16%
No 42 84%
Total no. of 50
respondent

Source: Survey Data

Technical assistance provided by

company is helpful for customer
product:
Yes
16%
Yes
No
No
84%

Analysis: 84 % of customers are thinking that technical assistance provided by

company is not helpful for their product. Only 16% of customers have opinion that
technical assistance is helpful for them.

Table no. 4 Customer evaluation about the information present in user manual:

Attributes No. of respondent Percentage

Not sufficient 30 60%
Sufficient 15 30%
Good 4 8%

CITY COLLEGE 47
Very good 1 2%
Total no. of 50
respondent

Source: Survey Data

Customer evaluation about the information present

in user manual:

Very good
2%
good
8%

sufficient
30% Not sufficient
60%

Not sufficient sufficient good Very good

Analysis: 60 % of customers argued that there is not sufficient information is

available in user manual.30 % are satisfied and 8 % have a good & only 2% have a
very good opinion.

Table No.6 Customers have problem with:

Attributes No. of respondent Percentage

The use of product 13 60%
The product fitting 17 30%
The product repair 10 8%
For all above 10 2%
Total no. of 50

CITY COLLEGE 48
respondent

Source: Survey Data

Customers have problem with:

The use of product The product fitting
The product repair For all above

For all The use of

above product
20% 26%

The product
repair
20% The product
fitting
34%

Analysis: 34% customer have problem with product fitting, 26% have problem with
the use of product.20% facing problem wit product repair & 20 % facing problem in
all fields.

Findings:
• Cera’s have more innovative idea to offer product with new innovation
• Cera is currently stood on third rank in its production capacity.

• Having shown a growth rate of more than 20% since last 3 years, Cera Sanitary
ware Ltd. today is the fastest growing sanitary ware company in India.
• Cera has a production capacity of 1.3 million pieces. Cera is upgrading it to reach
2.2 million pieces by this year end.

CITY COLLEGE 49
 • Cera Sanitaryware Limited (CSL), announced all time high revenue of Rs.107.58
crore for the year ended March 31, 2007 up by 33.4% from Rs 80.64 crore.
• Sanitary ware manufacturing is highly labor intensive, non-availability of
standardized raw-materials (every manufacturer has to source raw materials from
mines and have its own quality assurance systems of taxes).
• Many customers are satisfied with the use of cera’s product. Those are not
satisfied have not much knowledge about the product use, and have less
knowledge about the installation of product.
• About 50 % customers have a view that Cera’s product and services are similar
like other product in market. According to company report those customer have
bought only simple or medium level products.
• More then 50 % of customers has got technical information from the user manual.
Because user manual is available with every products. Other customers have got it
from website or helpline no. because they were unable to find information in User
Manual.
• About 84% customers are not satisfied with the technical assistance provided by
company.
• Mostly customers are not satisfied with the information available in User Manual.
. According to them; It’s not about, how to use, how to fit it, at any problem what
should do etc.
• According to all data analysis customer have dissatisfaction towards technical
assistance. Company is unable to give full satisfaction to its customer.

Suggestions:
• Need to give full knowledge about product use to customers through advertisement in
magazines, newspaper or TV. channel.
• Need to make some improvement in products to satisfy its customer.
• Company has needed to expand its services and handling customer’s queries in a
sound manner.
• There should be all information regarding product use, installation, product features,
and emergency repair of product in User Manual.

CITY COLLEGE 50
• Company should add sufficient technical information in other mediums of
information like website. So customer can use alternate way for information.
• Company should provide technical expert employee for every specific area. Those can
personally solve the problem of customer.
• If company is not providing service to its customer timely. Then there should be
provision of compensation to its customer.
• Introduction of designs to suit handicapped people, closets which are the height of an
average chair and therefore more comfortable, lavatories with interesting shapes and
designs.
• The technology of water saving should be in every product. So customer will
definitely attractive towards products.
• The company should launch low unit packs in all categories to drive market
penetration and to push volume.
• The product should be diversified in its maximum categories.
• More interest should be taken to increase the employee participation in the
management of the company.
• Mechanization should be done at each stage of the production process, which will
reduce the number of workers and then reduce the cost of the production.
• 100% production capacity should be utilized to increase the volume of production.

• It is advisable to conduct market surveys before the introduction of new products.

Conclusion:

Cera Sanitaryware Limited (CSL) is one of the pioneers in the Sanitaryware segment
in India. It was the first sanitary ware company to have ISO 9002 and ISO 14001
certifications for its products. Cera is the first company that launches such equipment
those are helpful in reduces the water needs of households considerably. It has more
innovative idea to offer product with new innovation. Cera plans to be a total home
solutions provider in the long run, providing products for every room in the home.

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After the observation of all departments, it is proved that Cera is doing well in all
functional areas. It has to need to take care of customer satisfaction and after getting
their view company should make improvement in its products.

Bibliography:
Books:
-Marketing Management, 7th edition, Philip Kotler, published by Prentice Hall India
-Research Methodology, 2nd Edition, C. R. Kothari published by New Age
International Pvt Ltd.

-Company Resources:
o Company annual report

CITY COLLEGE 52
o Employee Database
o Company journal & Balance Sheet.

-Website:
www.cera-india.com
www.google.com

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 Annexure:
QUESTIONNAIRE:

1. Which is your opinion about product use?

(1) NOT SATISFIED  (2) SATISFIED  (3) GOOD  (4) VERY GOOD 
Please specify if you had any kind of problem in product use:
............................................................
.............................................................................
…………………………………………………………………………………………..

2. What do you think about the product respect to what you were expecting? (Please
specify the reason)
(1) NOT SUFFICIENT   (2) SUFFICIENT   (3) GOOD   (4) VERY GOOD 
..........................................................................................................................................
..........................................................................................................................................

3. What do you think about our products respect to the similar ones available on the
market?
(1) POOR   (2) AVERAGE   (3) GOOD   (4) VERY GOOD 
Please specify how they could be improved:
..........................................................................................................................................
..........................................................................................................................................

4. Which type of technical assistance you get from company?

(1) User Manual  (2) Website & User Manual  (3) Helpline & User manual  (4) All
Above 

5. Is the Technical assistance provided by company is helpful for your product?

(1) Yes  (2) No 

6. Which is your evaluation about the information present in our explanatory sheet/
user manual/ service manual?
(1) NOT SUFFICIENT  (2) SUFFICIENT   (3) GOOD  (4) VERY GOOD 

CITY COLLEGE 54
Please specify how they could be improved:
..........................................................................................................................................
..........................................................................................................................................

7. In which field you are getting problem?

(1) For the use of product
(2) For the product fitting
(3) For the product repair
(4) For all above

8. Which is your evaluation about the delivery time for the products?
(1) NOT SUFFICIENT  (2) SUFFICIENT  (3) GOOD   (4) VERY GOOD 

9. Which is your evaluation about the technical assistance by our firm?

(1) NOT SUFFICIENT  (2) SUFFICIENT  (3) GOOD  (4) VERY GOOD 

10. Do you have any complaint or observation?

(1) YES   (2) NO 
If YES, please specify:
..........................................................................................................................................
..........
11. Which is your evaluation about the quality of our products in relation to the price?
(1) NOT SUFFICIENT   (2) SUFFICIENT  (3) GOOD  (4) VERY GOOD 

12. How do you find our prices compared to other companies?

(1) More Competitive  (2) Less Competitive  (3) About the Same 

13. Do you have any suggestions to improve our products and/or our services?
..........................................................................................................................................
............
..........................................................................................................................................
............

CITY COLLEGE 55
Cera’s Balance sheet, Ratio analysis, & Income statement
Latest Quarterly/Half yearly Detailed Quarterly
As On(Months) 30-Jun-2007(3) 30-Jun-2006(3) % Change
Sales of Products/Services 259.62 225.58 15.09
Other Income 1.15 0.37 210.81
Total Income 260.77 225.95 15.41
Total Expenses 211.53 186.24 13.58
Stock Adjustments 0.00 0.00 --
OPBDIT 49.24 39.71 24.00
Interest 4.01 5.53 -27.49
Depreciation 11.03 7.38 49.46
Extraordinary Items 0.00 0.00 --
Prior Period Adjustments 0.00 0.00 --
Provision for Tax 11.50 8.15 41.10
After Tax Profit 22.70 18.66 21.65
Equity Capital 30.38 26.88 13.02
Reserves 0.00 0.00 --
Notes to Accounts
Income Statement
As on( Months ) 31-Mar-03(12) 31-Mar-02(12)
Profit / Loss A/C Rs mn %OI Rs mn %OI
Net Sales 414.98 99.29 366.72 97.72
Operating Income (OI) 417.94 100.00 375.26 100.00
OPBDIT 49.28 11.79 46.73 12.45
OPBDT 34.06 8.15 27.48 7.32
OPBT 15.11 3.62 7.05 1.88
Non-Operating Income -0.01 -0.00 0.44 0.12
Extraordinary/Prior Period 0.74 0.18 -2.33 -0.62
Tax 1.65 0.39 0.65 0.17
Profit after tax(PAT) 14.19 3.40 4.51 1.20
Cash Profit 33.14 7.93 28.14 7.50
Dividend-Equity 3.23 0.77 3.23 0.86
Balance Sheet

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As on 31-Mar-03 31-Mar-02
Assets Rs mn %BT Rs mn %BT
Gross Block 327.21 61.68 320.81 58.62
Net Block 288.48 54.38 301.16 55.03
Capital WIP 0.00 0.00 0.09 0.02
Investments 0.00 0.00 0.00 0.00
Inventory 117.12 22.08 132.38 24.19
Receivables 93.80 17.68 85.97 15.71
Other Current Assets 31.12 5.87 27.67 5.06
Balance Sheet Total(BT) 530.52 100.00 547.27 100.00
Liabilities Rs mn %BT Rs mn %BT
Equity Share Capital 26.88 5.07 26.88 4.91
Reserves 172.50 32.52 161.44 29.50
Total Debt 145.64 27.45 161.15 29.45
Creditors and Acceptances 88.89 16.76 108.09 19.75
Other current liab/prov. 96.61 18.21 89.71 16.39
Balance Sheet Total(BT) 530.52 100.00 547.27 100.00
Ratio Analysis
As on 31-Mar-03 31-Mar-02
OPBIT/Prod.cap.empl.(%) 8.79 7.53
PBIT/Cap. Employed (%) 9.00 6.99
PAT/Networth (%) 7.12 2.40
Tax/PBT (%) 10.41 12.59
Total Debt/Networth (x) 0.73 0.86
Long Term Debt/Networth (x) 0.41 0.50
PBDIT/Finance Charges (x) 3.28 2.33
Current Ratio (x) 1.30 1.24
RM Inventory (days consumption) 66.02 81.02
FG inventory (days cost of sales) 71.81 100.91
Receivables (days gross sales) 74.65 76.14
Creditors (days cost of sales) 88.01 120.09
Op. curr. assets (days OI) 209.00 239.00
Share Statistics
As on 31-Mar-03 31-Mar-02
EPS (Rs.) 2.64 0.84
CFPS (Rs.) 6.16 5.24
Book Value (Rs.) 37.09 35.04
DPS (Rs.) 0.60 0.60

CITY COLLEGE 57
Cera Sanitaryware Ltd.
* Net sales up 40.78% for Q4FY07 at Rs. 33.76 crores.
* Operating margin for Q4FY07 stood at 19.46% against 15.68% for the same period
last year.
* PAT up 51.43% y-o-y at Rs. 3.18 crores.

1. Net sales were up by 40.78% to Rs. 33.76 crores in Q4FY07 over Q4FY06, which
is explained by strong demand and higher realization.

2. The Operating Margins (OPM) of the company stood at 19.46% for Q4FY07 in
comparison to 15.68% in the same period last year.
The improvement came mainly from increasing share of trading goods in total sales,
the margins for which are better and lowering of other expenses.

3. Profit after tax increased by 51.43% to Rs. 3.18 crores due to higher operating
profit, lower interest and depreciation cost relative to sales growth.

4. As the demand for sanitaryware products is increasing due to the growth in housing
and non-housing sector, CSL has planned to increase its manufacturing capacity by
67% by July, 2007. Earlier the capacity expansion was expected to be operational by
April, 2007 but got rescheduled due to delayed supply of capital goods, expansion
programme will be completed by July 2007. The total capex for the expansion is Rs.
35 crores which would be funded by a mix of debt and equity (50:50).

Cera Sanitaryware board recommends dividend: The board of directors of Cera

Sanitaryware recommended dividend of Rs 1.10 a fully paid equity share of Rs 5
each.

The above decision was taken by the board at its meeting

held on, May 16, 2007.

CITY COLLEGE 58
Cera Sanitaryware disclosed a substantial jump in net profits for the quarter ended
December 2006. During the quarter, the company witnessed a 41.90% rise in profits
from Rs 15.80 million to Rs 22.42 million.

Shares of the company were trading up Rs 2.00, or 1.56%, at Rs 130.00, at the BSE

CITY COLLEGE 59