INTRODUCTION

Organization is a social unit which is deliberately constructed and

reconstructed to seek specific goals. An organization comes into existence
when there are a number of persons in communication and relationship to
each other and are willing to contribute towards a common endeavor. The
evolution of organization dates back to the early stages of human civilization
when two or more persons began to cooperate and combine together for
fulfilling their basic needs of food, clothing, shelter and protection of life
Thus, an organization is born when people combine their efforts for some
common purpose. It is a universal truth that an individual is unable to fulfill
his needs and desire alone because he lacks strength, ability and resources.
So he seeks the cooperation of other people who share goals with him.
I underwent an organizational study at H&R Johnson (India) Ltd,
Karaikal to acquaint myself with the business environment for a period of
two months, as a part of the MBA curriculum at R.V.S Institute of
Management Studies, Karaikal. The organization study has been carried out
to get an understanding of the structure and functioning of the organization.
During the course of study I was able to successfully interact with the
employees of the organization and they were happy to give me all possible
information regarding the company. They also took me to the plants and
worksites where I got the first hand information about the organizational
processes and its functions.

1.1 Need & Significance Of The Study

Organization is one of the inevitable part of business &
management. The study of the organizational structure, management
process, functions etc. are very significant as far as present day trend is
concerned tile industry and business is vast growing one. The study is very
important for knowing the following
1) To have an idea about the products
2) To have an idea about the organizational structure of the company
3) To have an idea about the departmental functions of the company
4) To have an idea about the financial position of the company

1.2 Objectives of the Study

The organizational study was carried out at H&R Johnson (India) Ltd,
to achieve the following specific objectives; the main objective of this study
is to know the working of H&R Johnson (I) Ltd:1.2.1 To have an overall study of the company and to familiarize with
its various functions
1.2.2 To understand the organization structure and processes in a
practical setting.
1.2.3 To get an idea about how different functional departments are
structured and how each one of them operate.
1.2.4 To know how the key business processes are being carried out in
a manufacturing firm.

1.2.5 To have first hand information about the various policies and
programmes of the firm.
1.2.6 To make a SWOT analysis of the organization.
1.2.7 To study the interdependence of different departments.
1.2.8 To understand the difference between theoretical & practical
aspects of functioning organization.
1.2.9 To analyze real life problems and apply the concepts and theory
learnt in the class room.

1.3 Methodology
This study is descriptive in nature. This is also a grouping, which
includes many particular research methodologies and procedures, such as
observations, surveys, self-reports, and tests. Its conducted mainly to
familiarize with the activities, processes, policies, programs and procedures
followed in the firm. Required data for the study was collected through
monitoring and interrogation. The study is made personally visiting the
company at Thennangudy, Karaikal. The data were collected through various
methods. The methods adopted mainly are:
1.3.1
1.3.2

Primary data
Secondary data

1.3.1 Primary data

Primary data for the study is collected through observation, personal

interview and discussion with managers, various department heads, officers
and employees of the organization.
1.3.2 Secondary data
Secondary data for the study was collected from both internal as well
as external sources. Internal sources of data includes companys internal
records like annual reports, website, office records, management reports,
house magazines were used for collecting relevant information for this study.
And external sources, the data needed to prepare this project was obtained
from other published sources like internet, magazines, business dailies,
journals, business magazines etc.

1.4 Data Collection

To collect this data I largely depend upon the primary source of
information. Primary data is collected from the project trainer and personal
manager and secondary data from websites.
In this research, direct personal interview method is adopted; a face to
face interaction is made with the concern department staffs, to collect the
desired information.
1.5

Scope Of The Study

The study is being conducted for H&R Johnson (India) Ltd, it was
intended to give us an Industrial exposure and bridge the gap between theory
and practice. The study was covered by the few departments of H&R
Johnson (India) Ltd, namely personal & administration department, the
finance department, marketing department, production department, purchase
department, systems department, laboratory department& mechanical &
maintenance department etc, was intended only for a period of two months
from 1st June 2012 to 28th July 2012. The study was mainly conducted to
understand the functions, processes and procedures of different departments
of the company. This training report covers the details of the departments in
which the trainee could get access and interact with responsible executives.
1.6 Area of Study
This study was undertaken at H&R Johnson (India) Ltd and the
respondents were Managers, Department heads, officers and employees
from different departments like finance, maintenance, production, HR,
marketing systems, etc.
1.7 Database
The research efforts employ both primary and secondary research
techniques to ensure that the foundation of business intelligence an insight is
accurate, current, and reliable. To conduct this study, both primary and
secondary data have been used.
1.8 Limitations Of The Study

1.8.1 Time was a major limiting factor.

1.8.2 Secondary data available from company manuals were.
1.8.3 Lack of co-operation from certain departments due to their
workload.
1.8.4 The information provided by the company is assumed to be
authentic.
1.9 Scheme of Reporting
This report is presented in six chapters.
Chapter 1- Introduction
Introduces the study by highlighting the need for the study, the nature
of the study, the method of study, scope of study and its objectives,
limitations of study and scheme of reporting
Chapter-2 Industry Profile
The second chapter on industry profile is an overview of the Tile
Industry. It describes about the World Ceramic Tile Industry and the Indian
Ceramic Tile Industry in detail.

Chapter-3 Profile of H&R Johnson (India) Ltd

This chapter discusses about the history, growth, activities, joint

ventures, products, vision, mission, affiliations, objectives and policies of
H&R Johnson (India) Ltd. This gives us a picture of H&R Johnson (India)
Ltd journey so far.
Chapter-4 Functional Departments
This chapter discuss about the various departments in the organization, its
functions and responsibilities and the functional interdependence of
departments.
Chapter-5 SWOT Analysis
SWOT analysis of the study reveals the present position of the
organization. It is the assessment of the organizations internal strengths and
weaknesses and opportunity and threats posed by its external environment.
Chapter-6 Findings, Suggestions &Conclusions
This is the last chapter of this report and it discusses about the findings
of some major problems identified during the study and certain remedial
measures to be taken to overcome the identified problems and the
conclusion of this report.

2. INDUSTRY PROFILE

2.1 History of Ceramic Tiles

It is believed that the first clay tiles were produced seven to eight
thousand years ago in the area now known as the Holy Land. Many sources
independently verify that the actual known history of Tiles (and the known
usage of wall and floor tile coverings) can be traced back as far as the fourth
millennium BC (4000 BC) to Egypt.
In those days, in Egypt, tiles were used to decorate various houses.
Clay bricks were dried beneath the sun or baked, and the first glazes were
blue in colour and were made from copper, very exquisite!
During that period ceramics were also known to be found in
Mesopotamia. These ceramics bore decorations, which were white and blue
striped and later possessed more varied patterns and colours. Later on, in
China too, the Great Center of Ceramic Art, a fine, white stoneware with the
earliest Chinese glaze was produced during the Shang-Yin dynasty (15231028 BC).
The usage and the art of making and decorating ceramic tiles had
spread and by 900 A.D., decorative tiles had become widely used in Persia,
Syria, and Turkey and across North Africa. As transport and communication
developed, tile usage and its penetration in other territories increased. Wars
and territory take-overs caused this art to spread even faster.
The Romans introduced tile making in Western Europe as they
occupied territories. The Low Countries of Northern Europe somehow

acquired the technology from Persia, while the Moors brought African tiles
with them when they invaded Iberia (Spain). It was aboard the ships of
Spanish conquistadors that decorative clay tiles found their way to the New
World, where they were used primarily to decorate the Churches of newly
built missions.
By the end of the 12th century, use and manufacture of Ceramic Tiles
had spread across Italy and Spain and into the rest of Europe. Till that time
they were mainly used to decorate the floors of Cathedrals and Churches.
The skill had eventually vanished from Europe in the 16th century following
the reformation. But the decorative wall tile art had survived in Turkey and
the Middle East and the Delft tiles art survived in Holland.
A form of tile making had also evolved among the natives of North
and South America at some point. The first decorative tiles to appear in
Colonial North America were imported from Northern Europe, mainly
England the Brits having hijacked the technology from the Dutch. The tiles
were too expensive for utilitarian purposes in the Colonies and were found
almost exclusively in the homes of the wealthy.
Through the centuries, tile decoration was improved upon, as were
methods of tile manufacture. For example, during the Islamic period, all
methods of tile decoration were brought to perfection in Persia. Throughout
the known world, in various countries and cities, Ceramic tile production
and decoration reached great heights. The tile mosaics of Spain and

Portugal, the floor tiles of Renaissance Italy, the faiences of Antwerp, the
development of tile iconography in the Netherlands, and the Ceramic tiles of
Germany are all prominent landmarks in the history of Ceramic tile.
In the early days, the tiles were hand-made, each tile was hand-formed
and hand-painted, and thus each was a work of art in its own right. Ceramic
tile was used almost everywhere on walls, floors, ceilings, fireplaces, in
murals, and as an exterior cladding on buildings.
Today Ceramic tile throughout the world is not hand-made or handpainted for the most part. Automated manufacturing techniques are used and
the human hand does not enter into the picture until it is time to install the
tile. They are used in an almost infinite number of ways and you dont have
to consider yourself wealthy to own them. In commercial buildings, where
both beauty and durability are considerations, ceramic tiles will be found,
particularly in lobby areas and restrooms.
In fact most modern houses throughout use Ceramic tiles for their
bathrooms and kitchens and in every vital area of the premise. Ceramic tiles
are also the choice of industry, where walls and floors must resist chemicals.
And the Space Shuttle never leaves Earth without its protective jacket of
high-tech, heat resistant tiles.

2.2CERAMIC TILES INDUSTRY IN INDIA

10

2.2.1 Highlights
Ceramic Tiles today have become an integral part of home
improvement. It can make a huge difference to the way your interiors and
outdoors look and express. The Indian tile industry, despite an overall
slowdown of the economy continues to grow at a healthy 15% per annum.
Investments in the last 5 years have aggregated over Rs. 5000 crores. The
overall size of the Indian ceramic tile industry is approximately Rs 18,000
crore (FY12). The production during 2011-12 stood at approx. 600 million
square meters.
The Indian tile industry is divided into organized and unorganized
sector. The organized sector comprises of approximately 14 players. The
current size of the organized sector is about Rs 7,200 Crores. The
unorganized sector accounts for nearly 60% of the total industry bearing
testimony of the growth potential of this sector.
India ranks in the top 3 list of countries in terms of tile production in
the world. With proper planning and better quality control our exports
(presently insignificant) contribution can significantly increase.

2.2.2 Background

11

Apart from their decorative looks, Ceramic Tiles are primarily

hygiene products and that is how our broad spectrum of consumers views
the product. This is fairly evident from its varied usage from bathrooms and
kitchens in average Indian households to medical centers, labs, milk booths,
schools, public conveniences, shopping malls and numerous other centers;
which dot our day to day life. A ceramic tile is basically a "utility product"
and that remains our promotional slogan. Popular housing projects are
increasingly switching over to Ceramic Tiles moving away from the
traditional use mosaic and even granite or marble, owing to several factors
viz. ease in laying ability, versatility, low price and hygiene.
Nevertheless, this decorative aspect of a Ceramic Tiles has forever
been in the forefront. Heavy churning out of bolder and colorful designs by
the industry are testament to the fact that most households regard a ceramic
tile as an "adornment" for an otherwise "drab look" of their age-old floorings
or an unfurnished wall.

2.2.3 Overall Picture of the Industry

12

Ceramic tiles as a product segment have grown to a sizeable chunk

today at approximately 680 Millions Square meters production per annum.
However, the potential seems to be great, particularly as the housing sector,
retail, IT & BPO sectors have been witnessing an unprecedented boom in
recent times.
The key drivers for the ceramic tiles in India are the boom in housing
sector coupled by government policies fuelling strong growth in housing
sector. The retail boom in the Indian economy has also influenced the
demand for higher end products. Overall the bullish growth estimates in the
Indian economy has significantly influenced the growth of the Indian
Ceramic tile industry.
The main product segments are the Wall tile, Floor tile, Vitrified tile
and Industrial tile segments. The market shares (in value terms) are 20%,
23% 50%, and 7% respectively for Wall, Floor, Vitrified, and Industrial tiles.
The tiles are available in a wide variety of designs, textures and surface
effects. They cater to tastes as varied from rustics to contemporary marble
designs in super glossy mirror finishes.
Both, traditional methods of manufacturing (tunnel ) and the latest
single fast firing methods are deployed in manufacturing. Some of the latest
trends in manufacturing methods can be seen in India.
The industry also enjoys the unique distinction of being highly
indigenous with an abundance of raw materials, technical skills,

13

infrastructural facilities despite being fairly capital intensive. A total of over

5, 50,000 people are employed in the sector. Out of this, 50,000 people are
directly employed and 5, 00,000 are indirectly associated. The potential is
huge considering the per capita consumption of ceramic tiles in India.
Currently it is at 0.50 square meters per person in comparison to over 2
square meters per person for like countries like China, Brazil and Malaysia

2.2.4 Where We Stand And What We Must Do?

As a foreign exchange earner or a global player, Indian Tile industry
has captured the attention of the world in the ceramic tiles segment. To
compete internationally, our plants must be geared up to large units currently
operating in China and Turkey is driven by economies of scale. These will
also help us in lowering our cost of production significantly. Also,
infrastructural support is a key factor that determines the speed of growth.
Better infrastructure will bring in better growth in terms of consistency and
sustenance. Freight, supply of power and gas remains the key cost-related
issues impacting the industry. Availability, consistent supply and reasonable
rates are extremely important for the growth of the ceramic tile industry.
Rural thrust should be enhanced by favorable excise duty and MRP
structure
2.2.5 Current Status of the Industry

14

The ceramic tiles industry in India has followed similar trends

internationally which have been characterized by excess capacities and
falling margins. Countries like Malaysia, Thailand, Indonesia, Sri Lanka and
Vietnam are setting up their own plants. China has emerged as a major
competitor. Producers from Spain and Italy have the advantage of lower
transportation costs while exporting to USA and Germany. In India, the per
capita consumption is as low as 0.50 square meters per person compared to
China (2.6 square meters per person), Europe (5 to 6 square meters per
person) or Brazil (3.4 square meters per person). Rising disposable incomes
of the growing middle class and 40 million units of housing shortage hold
out a great potential.
A major change that took over the ceramic tiles industry, was the
introduction of vitrified and porcelain tiles. These new entrant product types
are said to be the tiles of the future. Internationally these tiles are already the
major sellers. These categories of products account for almost 50% of total
tile sales by value in this industry.
These new products and the conventional wall & floor tiles have
together made the organized industry grow to a formidable Rs. 7,200 crores
industry. This coupled with a spate of expansions by many players make the
industry look very promising in the future.
The Indian Industry has developed an export market although at the
lower end. In volume it constitutes less than half a percent of the global

15

market. (Presently India does not figure in the list of major exporting
countries). But this reality could change as Indian exports are rising at an
accelerating growth annually. The top-end of the global export market is
presently dominated by China (36.8%) and Italy (15.1%).

16

3. ABOUT PRISM CEMENT LTD

Prism Cement Limited is one of Indias leading integrated building
materials companies; with a wide range from cement, ready-mixed concrete,
tiles, bath products to modular kitchens. Prism Cement Limited has three
Divisions, viz. Prism Cement, H&R Johnson (India), and RMC Ready mix
(India). Prism Cement Limited also has a 74% stake in Raheja QBE General
Insurance Company Limited, a joint venture with QBE Group of Australia.
For the year ended March 31, 2011, the companys consolidated sales
turnover was Rs 3,605 cr.

3.1 PRISM CEMENT

Prism Cement commenced its production in August 1997 and
manufactures Portland Pozzollana Cement (PPC) under the brand name
'Champion' and Ordinary Portland Cement (OPC). It has the highest quality
standards due to efficient plant operations with automated controls. It caters
mainly to markets of UP, MP and Bihar, with an average lead of 340-370 km
of its plant at Satna, MP. It has a wide marketing network with about 2,000
dealers serviced from 46 stocking points. Prism currently sells over 3 MTPA

17

of cement and clinker and is in the process of establishing another unit at the
same location with a proposed cement capacity of 3.6 MTPA by 2010-2011.
It is also in the process of setting up a 4.8 MTPA capacity cement plant in
Andhra Pradesh by 2013-2014. This will take its overall capacity above 11
MTPA.

3.2 RMC READYMIX (INDIA)

RMC Readymix (India) is the third-largest ready-mixed concrete
manufacturer in India. Set-up in 1996, RMC currently operates 57 readymixed concrete plants in 27 cities/towns across the Country. RMC has also
ventured into the Aggregates business and operates large quarries and
crushers. At present, RMC has 6 quarries across the country. RMC has been
at the forefront in setting high standards for plant and machinery, production
and quality systems and product services in the ready-mixed concrete
industry. RMC plans to scale-up its capacity from 3.87 million m3 at present
to 11 million m3 by 2014-15.

18

3.3 H&R JOHNSON (INDIA) LIMITED

Vision
Improving Lifestyles of Our Customers by Providing Innovative
Products and Services
Mission
Continuous Improvement Is Our Mission
Core Values
1.
2.
3.
4.
5.
6.

Honesty, Integrity & fairness

People as a source of our strength
Passion for excellence
Teamwork
Innovation
Entrepreneurship

H&R Johnson (I) Ltd Affiliations

The H&R Johnson (I) Ltd is a member of reputed industry
organizations like Indian Council of Ceramic Tiles and Sanitary ware
(ICCTAS), Indian Ceramic Society, Indian Merchants Chambers (IMC),
Bombay Chamber of Commerce & Industry (BCCI), Confederation of
Commerce and Industry (FICCI), Employers Federation of India (EFI) and
Construction Industry Development Council (CIDC) and Chemical & Allied
Products Export Promotion Council (CAPEXIL).
Slogan

19

Not Just Tiles>>>Lifestyles

Networks
The companys various manufacturing plants are located in
1.
2.
3.
4.
5.
6.

Pen in Maharashtra
Kunigal in Karnataka
Dewas in Madhya Pradesh
Karaikal in Pondicherry
Vijayawada in Andhra Pradesh(Joint Venture)
Rajkot in Gujarat(Joint Venture)

HRJ (India) has the largest distribution network in the industry, with
30 branch offices and 39 depots spread across India. The companys trade
network comprises of over 1,300 dealers and 15,000 sub-dealers spread
across the length and breadth of India.
No matter which part of the country you are in, we are a
right there whenever and wherever you need us - H&R JOHNSON
(INDIA) Ltd

3.3.1 PROFILE OF THE COMPANY

3.3.1.1 COMPANY REVIEW

20

H&R Johnson (India) Ltd is an Indias leading Tile Company was

established in the year of 1958. Was a division of Prism Cement Limited is
the undisputed market leader in the tile industries since last 53 years across
various product categories. As the seventh largest tile company in the world,
H&R Johnson today enjoys the reputation being the only company in India
to offer end-to-end home lifestyle solutions.
H&R Johnson (India) Ltd is a member of Johnson Ceramics
International, U.K, the global leader in the international tile industry; they
have an access to the latest trends and designs prevalent in the international
market. Johnson Ceramics International has a very strong global presence
and its manufacturing plants are spread across the world.
H&R Johnson (India) Ltd modern manufacturing plants located
across six strategic locations across India. The plants are located in Dewas
(MP), Pen (Maharashtra), Kunigal (Karnataka), Karaikal (Pondicherry),
Vijayawada (Andhra Pradesh) and Rajkot (Gujarat). These units employ the
best of technology from world leaders in tile manufacturing machinery.
The company has chiselled a niche for itself in other allied business
categories including Wooden Laminates Flooring, Engineered Wooden
Flooring, Sanitary ware, Bathroom fittings, Modular Kitchens, Engineered
Marble & Quartz as well as tile adhesives & grouts business. The company
provides the most innovative products of international standards that are
coupled with the best of pre and after sales service. The total manpower

21

Strength is around 1500. Plants capacity of H&R Johnson (I) Limited is

40,000 square meters per day.
H&R Johnson (India) Ltd has consistently pioneered new
innovations to maintain its stronghold on the Indian market for over 50
years. In the recent past H&R Johnson has launched some of the most trendsetting products in the market portfolio comprising of 5 well-known brands
in India (Johnson, Marbonite, Porcelain, Endura and Milano).
The flagship brand is Johnson tiles offering a range of ceramic floor
and wall tiles. The Marbonite brand is Indias No. 1 vitrified tiles brand. The
Porselano brand is Indias first Joint-free offering. Endura brand offers
specialized industrial and pavement tiles. They also offer complete kitchen
and bathroom products under a premium brand, Milano.
They export tiles to countries like Japan, Spain, U.K, Dubai,
Singapore, Australia and New Zealand. H&R Johnson (India) Ltd has the
largest distribution network which is spread across the whole country with
nine plants strategically located at 6 locations 30 full-fledged branches, 1300
dealers, over 15000 sub-dealers and 39 depots.
The plants are ISO compliant with both 9001 as well as 14001
certifications. Besides this, units in Dewas, Kunigal and Karaikal are
OHSAS 18001 certified for excellence in safety standards. The total
manpower Strength is around 1500. Plants capacity of Johnson (I) Limited is
40,000 square meters per day.

22

During the year-ending March 31, 2011 the companys revenues

touched Rs. 1,472 crores. The companys sales volume during the year also
crossed 43 million sq mt in tiles.
HRJ's sales volume for the year 2010-11 was 43 million m 2 of tiles
and plans to achieve 90 million m2 by 2014-15.

3.3.1.2 KARAIKAL PLANT REVIEW

H&R Johnson (India) Ltd was established on 2nd march 1996 as
E.I.D Parry (I) Limited. It was started as production and commercial
organization E.I.D Parry is a part of Chennai based Muragappa group.
On 2nd march 2000, E.I.D Parry (I) Limited was acquired by H&R
Johnson (I) Limited Thennangudy, (Pondicherry)located 12 kms away from
Karaikal. The area of plant in Thennangudy, Karaikal is about 48 acres.
Indias leading tile manufacture, has commenced its new range of
super glaze tiles at its newly acquired high-tech plant at Thennangudy near
Karaikal (Pondicherry), with sophisticated double firing technology from the
renowned Italian company SACMI using imported glaze from Ferro and
Torrecid (SPAIN), the Karaikal plant provides a new range of highly
attractive tiles with special effects like lusters and metallics.
The Karaikal plant has a production capacity of 5000 square meters a
day, is geared to produce a tiles of size 20X30 cm and upwards. For

23

automatic efficient loading and unloading with a minimal breakage the plant
uses a sophisticated tile loading / unloading machine called TEKPILE
Apart from the latest double firing technology Karaikal plant also has
a 90 meter glazing line to enable multiple printing and special effects.
Equipments from Sacmi also includes state-of-the art roller kilns with
microprocessor controls a fully computerized quality control and selection
machines and a fully automated packing line.
Plant machineries are imported from Sacmi (world leader in
producing manufacturing machinery) at Italy. The investment made on plant
was Rs.50 crores. The plant employs a natural gas for firing which is ecofriendly and pollution-free. Automatic de-dusting systems ensure a dust-free
environment with a production capacity of 5000 sq. meters a day, Karaikal
plant will add Rs50 crores of turnover to H&R Johnson, thus making it the
largest tile manufacture in south India.
3.3.2 JOINT VENTURES OF H&R JOHNSON (I) LTD
H&R Johnson (I) Ltd, a division of Prism Cement Limited and the
worlds 7th largest tile company has entered into a joint venture with Small
Tiles Pvt. Ltd, Antique Granito & Specific Ceramics. With this venture,
H&R Johnson (India) has acquired a 50% stake in Small tiles Pvt. Ltd,
Antique Granito & Specific Ceramics.

24

According to the joint venture, Small Tiles Pvt. Ltd will

manufacture and supply ceramic glazed floor tiles to H&R Johnson (India)
Pvt. Ltd. The tiles would primarily be focused in the Northern, Central,
Eastern regions of India and the overseas market.
Vijay Aggarwal, Managing Director, Prism Cement Ltd, said,
Glazed Floor tiles have been growing at a healthy rate in India and this joint
venture would enable us to cater to the growing demand.
The plant capacity of Small Tiles is approximately 2.3 million sq.
meters per annum. The plant has capability to manufacture floor tiles of
12x12, 16x16, and 24x24.
According to the joint venture Antique Granito a Gujarat-based
tile manufacturing company will manufacture and supply Indias No.1
Glazed Vitrified Tiles under the Marbonite brand.
The agreement with Antique Granito was signed between Vijay
Aggarwal, managing director, H&R Johnson (India), and Chunnilal Bhai
Kundariya, managing director of Antique Granito.
Antique Granito is based in Morbi this is the first time a multinational
is investing in Morbi. This will provide a boost for Morbi-based
manufacturers who have been reeling under pressure on margin owing to
escalating input costs.
The manufacturing units of the company have state-of-the-art
machinery imported from abroad and well talented man power resource.

25

According to the joint venture, Specific Ceramics a Gujarat-based

tile manufacturing company will manufacture and supply a wide range of
ceramic floor and wall tiles under the Johnson brand. Specific Ceramics is
an Ahmadabad-based company.
The deal with Specific Ceramics was penned by Vijay Aggarwal for
H&R Johnson (India) and Suresh Patel, managing director of Specific
Ceramics.
H&R Johnson is also supplying the plants with all the key raw
materials required in the manufacturer of international standard vitrified and
ceramic tiles.
Moreover, H&R Johnson (I) Ltd, is planning to train the plant staffs at
various Johnson Ceramics International facilities across the world to upgrade
their technical knowhow and bring in the international perceptive to their
working and these acquisitions will further consolidate H&R Johnson
production capacity and leadership in the Indian tile industry.

26

3.3.3 OBJECTIVE AND TARGETS OF THE H&R JOHNSON (I) LTD

3.3.3.1 Functional objectives
1. Maintain press availability at 98%
2. Maintain GL productivity at 1400 sq. meter per shift per line
3. Develop an average of 5 new skus every month (In a financial year at
least 60 new skus to be developed).
4. Reduce customer complaint to zero.
5. Reduce the glaze cost to Rs 31.83/- sq. meter from Rs 33.5/- sq. meter.
6. Analyze and reduce roller consumption.

3.3.3.2 Environmental objectives

1.
2.
3.
4.
5.

Reduce water consumption from 4842 KL to 4750 KL

Reduce the glaze loss in GP from 9.13% to 6%
Reduce the tile rejection at BK from 3.3% to 2%
Reduce the tile rejection at GL from 3.98% to 2%
Increase the utilization of accumulated fired tiles in the batch

composition from 8% to 10%

6. Reduce the power consumption in the plant from 2.93to 2.56 units/sq.
meters.
3.3.3.3 OHSAS Objective
1. Reduce the fly of dust in the plant from 150 to 100 Gms per cubic
meter.
2. Ensure safe handling of all fuels and lubricant oils.
3. Reduce the number of accidents in the plant to zero.

27

3.3.4 POLICIES OF THE H&R JOHNSON (I) LIMITED

3.3.4.1 Quality policy
We shall continuously strive to provide quality products & services
to

meet

the

Customers

Expectations.

Continuous

improvement,

Commitment, Accountability and Team work shall be our guiding

principles.

3.3.4.2 Occupational health and safety policy

We are committed to improve continually the health and safety of all
our employees
1. By hazard control
2. By insisting and practicing safe work procedures to eliminate possible
incidents.
3. By conforming to all applicable legislations/regulations and other
requirements.
This shall be attained through
1. Continuous training
2. Commitment
3. Consultation and involvement of all persons working under the
control of organization by fixing objectives and targets.

28

3.3.4.3 Environmental Policy

We shall continuously strive to carry out all activities to minimize
their impact on environment.

This shall be attained through

1. Through conservation of natural resources by their efficient use,
utilization of waste and prevention of pollution.
2. By establishing practices and systems while abiding by relevant
environmental and other legislation/regulations applicable to the
organization.
3. By continuous review of performance against targets.
4. Providing necessary facilities with training.
5. Involvement of all our employees.

29

President
(Operation &
Finance)

ORGANISATION STRUCTURE

General
Manager
(Operations)
Product
Developm
ent

Dy.Mana
ger
(Process &
QC)

S.R Manager
(Mfg. Wall Tile
Plant)

(Maintenance)

Manager

Asst.
Manager
(Lab & QC)

Asst.Manage
r
(Body & G.P)

Executive
(QC)
Officer (QC)

Dy.Manage
r
(Accts)

Manager
(Supply Chain)

S.R Manager
(HR & Admin)

Dy.Manager
(Elect &
Electronics)

Dy Manager
(Purchase)

Officer
(HR & Admin

Asst
Manager
(Accts)

Asst
Manager
(Rectification
& Packing)

Dy.Manager
(Maint)

Sr Executive
(Purchase)

Time Keeper

Officer
(Accts)

Executive
(Screen Lab)

Rectification
& Packing
Supervisor

Executive
(Maint)

Executive
(Excise &
Despatch)

Asst.
Security
Officer

Supervisor
(Accts)

Supervisor
(QC)

Executive
(KILN)

Executive
(Electrical)

Officer
(Mines)

Artist

Shift Officers

Supervisor

Officer
(Mines)

Officer
(Maint)

Assistant
(Purchase)

Officer
(Press Maint)

Trainees
(Despatch)

Engineer
Trainee

30

Assistants
(Accts)

S.R
Executive
(Logistics)

Asst.Mana
ger
(First
Production)

Supervis
ors
(FRIT)

4. INTRODUCTION
Department is a process of dividing the large functional organization
in so small and flexible administrative units. The basic need of
departmentalization arises because of limitation on the number of
subordinates that can be directly managed by the superior.
BASIS OF DEPARTMENTATION
Departmentalization may be on the basis of function, products,
regions, customers, process, time, number, and marketing channel
Functional basis is a very popular method of departmentalization. It refers to
grouping of activities of the organization into major functional departments
like, production, purchase, and marketing etc.
And in this project report, some of the following departments of H&R
Johnson have been studied.
4.1Finance Department
4.2Purchase Department
4.3Marketing Department
4.4Human resource Department
4.5Systems Department
4.6Production Department
4.7Laboratory Department
4.8Mechanical & Maintenance Department
4.1 FINANCE DEPARTMENT

31

Accounts department is one the most important department of any

organization because finance is essential for any business activity and
actually it includes
1. Identification
2. Classification
3. Recording of transaction
Accounts Department looks after the fixed, Variable, and semiVariable cost of production, mechanical, maintenance & other administration
and selling expenses of the factory. Each plant has their own accounts
department which also looks after the MIS department. The Accounts
departments of all plants are integrated through centralized SAP system.
Accounts department also carry out the controlling activity in the
organization. It establishes the standards and compares the actual
performance with that pre fixed standards, if there is any deviation
in the actual performance from the standard fixed then the
corrective action well be taken by the department.

4.1.1 MAJOR FUNCTIONS IN FINANCE DEPARTMENTS

4.1.1.1
Management of Accounts Receivable
4.1.1.2
Accounts Payable

32

4.1.1.3
4.1.1.4
4.1.1.5
4.1.1.6
4.1.1.7
4.1.1.8
4.1.1.9

Accounting of Materials
Banking
Managing of Financial Resources and Budget preparation
Cost accounting
Auditing
reparation of financial statements & Reports
Corporate Planning etc.

4.1.2 COMPANY FINANCE INFORMATION

Status

Listed

Legal Form

Other Non-Liability Limited

Operational Status

Operational

Financial Auditor

Borkar & Muzumdar

Website

http://www.hrjindia.com

Industry

Manufacturing/Industrial

Total Revenue

Sales

During the financial year ending March 31,

2011 the total revenue touched Rs.1,472 crores.
Consolidated sales turnover was Rs. 3,605
crores on 31st March 2011.

Excise Duties

12.36%

Investment

50 crores

Joint Venture

Silica, Small Tiles Private Limited, Antique

33

Granito,
Revaluation

Specific Ceramics etc,

Yearly once at the time of balance sheet

Preparation.

Report

MIS Report

Wage System

Monthly wage system

Allowances

Lunch allowance, travelling allowance,

Education allowance, house rent allowance,
and yearly once a family trip is arranged for
permanent staffs.

4.2 PURCHASE DEPARTMENT

The purchase procedure covers the following areas of procurement
of goods and services for the company.
1. Joint Venture related materials purchases
2. Equipment and Spares.
3. Service items.

34

4. Office stationery and other items.

OBJECTIVES
1. To maintain uninterrupted flow of materials to support the
development schedules.
2. To procure materials economically at a cost consistent with the quality
and service required.
3. To provide the necessary expertise, advice, information to the
Curators and Education Officers with regard to the best quality of
material available in the market, suppliers capability and performance
etc.
4. To develop and maintain good buyer-seller relationship.
5. To promote source development.
6. To maintain PDO standard, reputation, and credibility in the market
by fair dealings and prompt payments.

MAIN FUNCTIONS
The main functions of the Purchase Department are defined as follows:
1.
2.
3.
4.

To maintain uninterrupted flow of materials to support the sources.

Checking of requisitions / purchase indents.
Selection of suppliers for issue of enquiries.
Issuing enquiries / tenders and obtaining quotations.

35

5. Analyzing quotations and bids etc., and preparation of comparative

statement.
6. Negotiating contracts.
7. Checking legal conditions of contracts.
8. Issue of purchase orders
9. Verification and passing of suppliers bills
10.Maintenance of purchase records
11.Maintenance of vendor performance records/data
12.Development of reliable and alternate sources of supply.

36

Centralized Purchases
As every division has a Purchase Department, all purchases of stores
shall be centralized in the inter in the interest of economy, uniformity
and as a matter of policy since custodian and consumer should not be
the same. Accordingly the purchase of office stationery, forms, liveries,
furniture etc., shall be made by the Purchase Department and not by the
administration sections. Transfer/adjustment of staff shall be made where
necessary. Local / cash purchase of stores shall continue to be made in
exceptional cases by the Heads of Divisions/projects under their power but
as far as possible Purchase Officer should be associated even while making
such purchases.
Vendor Development and Vendor Pre-Qualification
Pre qualified vendor list shall be maintained by purchase department.
The vender list comprise of all pre-qualified vendors under each category
stating clearly the respective capability in terms of volume of work,
specification, level of technology, etc with rating of the vendors.
Addition/deletion to vendor's lists is made on a continuous basis on the
above criteria.
There are three types of Purchase Requisition (PR) as follows:
1. For stores, including stationary and office supplies, spares
2. For Services
3. For projects and major capital equipment
4.3 MARKETING

37

H & R Johnson ltd; is being the undisputed market leader in

Ceramic Tiles Industry by having 22% Market share in organized sector.
The marketing is based on both wall and floor tiles and special tiles for
industrial application which is also exported too.
The company does not carry out any direct marketing activity
but the marketing activity of the company is carried out through dealers
and sub- dealers who are spread across the length and breadth of India.

Performance Growth
H&R Johnson (I) Ltd has a unique growth profile; high brand pull and
proven track record are symbolic of their strong performance. They are on a
constant quest to make superior products through extensive research. The
result is evident in the annual revenue of Rs. 1,500 crores in 2010-11 and
sales volume during the year crossed 43 million square meters.
A robust production, infrastructure, distribution, sales network and the
ability to predict, prepares them for their future growth. The future is ours

Capacity to Meet Any Demand

38

The company key focus has been to make the products available to
any kind of demand generated in the market, right from few tiles to a million
sq. meters. This has been achieved by expanding the capacities of plants so
that supply does not fall short of customer demands and this has helped to
further consolidate the leadership position in the market.
The new investments in capacity increase comes at a time when the
Indian tile industry is fighting eroding margins as a result of cheap and low
quality imports being dumped in the Indian tile industry by China, UAE and
Indonesia, as well as a strong unorganized sector.

Research & Development

The global presence gives a distinct advantage of accessing latest
designs as well as international trends in the global tile market. The
knowledge is used towards reiterating the commitment of providing
customers with premium quality tiles of international standard and designs.
The R&D centre based in Mumbai continuously aims to adapt these
designs to the Indian consumer. The stringent quality control measures,
customer focus, continuous improvement, commitment and teamwork are
the guiding principles to provide customers the very best products across the
board.

39

A Research & Development Centre located at Pen is approved by

Department of Scientific and Industrial Research, Government of India.
They successfully achieved backward integration by developing and
manufacturing of products such as soluble salts, stains and frits etc. which
are used in ceramic manufacturing.
Research and development department keeps a strict eye on every
aspect when it comes to delivering quality. The products undergo regular
quality tests. Stringent quality tests are also carried out on raw materials like
clays, minerals, chemicals and pigments they procure from the large network
of vendors and suppliers both from Indian and across the globe. Geologists
regularly do on-site testing at the mines from where raw materials are
procured.

Pricing
H&R Johnson (I) Ltd adopted the Cost Plus Pricing Method
production unit sends the actual cost of Production to the Corporate Office,
then PMG (Product Managers Group) decides the Price of the Product after
considering the Market Condition and cost of Production. The company has
adopted many Advertisement and Sales Promotion activity as main part
of its marketing Strategy.

Innovation

40

The company pioneered some of the key innovations in the Indian

ceramic tile industry. These are:
1.
2.
3.
4.
5.

Anti-skid tiles for bathrooms

Specially designed tiles for kitchen floors and walls
Joint-Free porcelain tiles marketed under the brand Porcelain
Vitrified tile in large formats under the Marbonite brand
Large format joint-free monoporosa tiles, Indias first water repellent

tiles marketed under Johnson

6. Indias first vitrified wall tiles under our Marbonite Wonderwall
brand
7. Pioneered acid / alkali resistant tiles for industrial floorings marketed
under Endura

Competitors of H&R Johnson (I) Ltd

1.
2.
3.
4.
5.
6.
7.

Kajaria ceramics limited

Asian Granito
Antique Vitrified tiles
Sogo Granite
RAK Ceramics
City Tiles
Century tiles limited

Brands Offered by H&R Johnson (I) Ltd

HRJ (India) has a wide basket of innovative products, including antiskid tiles, water-repellent tiles, vitrified wall tiles, joint-free tiles, industrial
pavement tiles etc. These are sold under different brands. HRJ has recently

41

launched top-end, premium range of products under Johnson Ceramics

International brand. HRJ flagship brands are
1. Marbonite brand is Indias No.1 vitrified tile brand.
2. HRJ offers glazed wall and floor tiles, bath products, kitchens,
laminate and engineered wooden flooring.
3. HRJ has recently launched top-end, premium range of products under
Johnson Ceramics International brand.
4. Johnson tiles offering a wide range of ceramic floor tiles and wall tiles
5. Porcelain brand is Indias first Joint free offering.
6. HRJ also offers complete kitchen and bathroom products under a
premium brand, Milano.
Advertisement
The Company does its advertisement through various Popular sources,
1.
2.
3.
4.
5.

Paper and Press Media

Traffic Rail
Wall painting
Road Drivers Advertisement
Sign Boards

Sales Promotion
H & R Johnson (India) has been the market leader in the field of
ceramic tiles in India where it has maintained its leadership position for over
five decades. The Company does its Sales Promotion through various ways
such as
1. Creating Brand awareness

42

2. Organizing trade Fair

3. Attending Exhibition
4. Arranging distributors conferences

Distribution
Target
At present H&R Johnson (I) Ltd targeting 30% growth of this network
to the rural markets in India including Class B and C towns, the rural
operation is expected to contribute 25% of the total turnover.
Focus
H&R. Johnson (India) ltd, focuses on modern retail channel. The
House of Johnson showrooms showcase the complete range of products for
the upper and upper-mid segment of market, while Tile Bazaar is targeted
towards to the lower-mid segment.
Infrastructure Presence
H&R Johnson (I) Ltd distribution network is the largest in the country
comprising of 1300 dealers and 15,000 sub-dealers spread across the length
and breadth of the country. In addition, we also have 30 branches offices and
39 depots that give us a tremendous reach in the marketplace and
warehouses.

43

Worldwide Presence
An association with Johnson Ceramic International ensures that
consumers can find HRJ tiles across the world. Their products are sold in all
continents of the world and now the company is in pride that the Johnson
name is globally associated with high quality design led products.

4.4 HUMAN RESOURCE

Career Policy
H & R Johnson (India) Ltd recognize that its people are the source of
its strength and competitiveness so they lay down a HR policy as their
Career policy.
The company is committed to equal employment opportunities for
attracting the best available talent and cosmopolitan work force and resolves

44

to provide an environment free of any ethnic discrimination or sexual

harassment.
The company aims at its fairness and transparency in its dealings with
its employees to create an atmosphere of openness, mutual trust and
teamwork. The company is developing the potential of its employees
through training, provide opportunities to display their creative talent and
encourage them to maximize productivity.
The company encourages its employees to take on higher
responsibilities and provide opportunities for their growth and positively
differentiate employees on the basis of performance, leadership potential and
alignment with core values.
The company pursues management practices to enrich the quality of
life of its employees.

Company Offers
1.
2.
3.
4.
5.

Growth in Responsibilities
Cross-Functional Perspective
Stability of Job
Investment in Training and Opportunity to Learn
Professional Working Environment

Company Expects
1. Customer First

45

2.
3.
4.
5.

Commitment to ROCE & FCF

Teamwork
Continuous Improvement
Innovation

Overview of Human Resource Department in H&R Johnson (I) Ltd

H&R JOHNSON (I) Ltd has a good and strong organization structure.
They feel employees are the real asset of the company. This asset is
classified into management staffs, operators, companies apprentice, trainees,
Govt. apprentice & implant trainees.
Totally 144 employees are working as permanent employees,
department wise strength is as follows,
Organizational head: 1
Personal & administration: 3
Logistics and commercial: 3
Finance & account: 4
Stores & purchase: 4
Systems (IT): 2
Laboratory (QC): 11
Maintenance: 32
Production: 84

46

Other than the above strength there is 42 trainees are working under
temporary basis. Personal and administration department is under the control
of deputy manager. Human resource department is in developing stage
through the various training and provisions to employees.

4.4.1 Recruitment and Selection

Recruitment involves in searching for the perspectives employees
whose

skills and

knowledge suites the

organization requirement

and stimulating them to apply for the Job in the organization. H&R
Johnson (I) Ltd generally prefer the highly qualified technician and
dedicated management professionals in their company.
The HR manager first identifies the various sources from which the
organization can get the required employees according to the requirements
of different departments, based on the requirements of Human Resource in
various Departments. The Recruitment Process in H & R Johnson (India)
Ltd is as follows
Recruitment process in H&R Johnson (India) Ltd
1. Calling for application and screening of the application
2. Then the selected candidate will be interviewed by the Department
Heads

47

3. Then the final Interview will be carried by the General

Manager at corporate level or at plant level for those candidates
who get succeeded in second interview.
4. Training for selected candidates will be given, finally
induction

for

the

candidates

who

completed

the training successfully

5. Requirements of job changes according to the job Profile
6. In H & R Johnson (India) Ltd junior level post will be filled
by the freshers and senior level posts by the experienced people.
Recruitment
Recruitment methods adopted by the company are as follows,
1. Indirect method- advertising in leading newspapers
2. Third party method- using friends circle
The vacancies in the company are announced through leading
newspapers both in Tamil & English. Another method is searching for
appropriate person through friends circle for both administrative staff and
workman (operators).

Selection
The selection process for applied candidates is done through interview
for both technical and non-technical staffs.

48

Interview
The interview process in H&R Johnson (I) Ltd includes skill test for
the concerned job. The skill test is conducted via oral communication. The
efficiency, expertise & experience for the job will be predetermined and its
analyzed among the candidates who have been applied for the post by the
interview panel.
The interview comprises of two steps initial/preliminary interview and
final interview. In the two cases of interview the panel will be different likes.

Initial / Preliminary Interview

1. The head of concerned department
2. The head of HR department
Final Interview
1. The general manager
2. The head of concerned department
3. The head of HR department

Medical Fitness
A selected candidate has to produce a medical fitness certificate from
residential medical officer.

49

Absorption of Trainees
Training (on-the-job) is provided by the company to the trainees.
These trainees may consider for their permanent employment. There are two
categories of trainees in the company they are
1. Company trainees
2. Government apprentice
Company Trainees
Company trainees are the trainees appointed by the company. These
trainees are provided with training in the company for a year. This category
of trainees is highly considerable towards permanent posting by the
company on basis of merit.

Government Apprentice
For the operator post 13:1 ratio (13 operators 1 trainee) should be
maintained for all categories (electrical mechanics). As per government
provision, trainees are appointed through employment exchange (Karaikal
region). Training period for one year.

4.4.2TRAINING
Training for Management Staffs

50

Training and development program for the management staffs were

conducted frequently, we can classify the training program as
Internal
Internal training program is most probably conducted in the head
office at Mumbai.
External
External training program is most probably conducted by the
1. Indian institute of management
2. Central board of workers education
3. Nathan & Nathan

Training for Operators

In operators level the training program was conducted inside the plant
by supervisors or by co-operators.
According to appraisal only promotions and positional development
are being given.
For employees they are conducting the appraisal program for
positional develop of the employee. In appraisal program timely work,
attendance, absence, leave, LOP actual, absence work ability, lagging, rating
all thing evaluated.

51

Training Programs
In H & R Johnson Karaikal plant they offer both on the job and off
the job training.
On the Job Training Programs
1. Job Rotation
2. Weekly Training
3. Internal Transfer to various other Departments
Off the Job Training Programs
1.
2.
3.
4.

Skill Development
Personality development
Seminars
Lecturing

Steps taken by H & R Johnson (I) Ltd

The Various steps taken by H & R Johnson Ltd to enhance the skill of its
employees are as follows
1.
2.
3.
4.
5.
6.
7.
8.

Personality Development Programs

Counselling
Seminars
Inter departmental Transfers
Paper Presentation
Job Rotation
Communication Development Programs
Work Shops

4.4.3 PERFORMANCE APPRAISAL

52

Performance appraisal is the systematic, periodic and an impartial

rating of an employees excellence in matters pertaining to his present job
and his potential for a better job
Objective of performance appraisal in H&R Johnson (I) Ltd
Data relating to performance assessment of employees are recorded
and stored for several purposes. The main objectives are
1. To assess the effect of promotions based on competence and
performance.
2. To confirm the service of probationary employees while completing
the probationary period satisfactorily.
3. To assess the training and development needs of employees
4. To decide upon a pay raise where (in the unorganized sector) regular
pay scales have not been fixed.
5. To assess the relationship between superiors, subordinates and their
understandings.
6. To assess whether HR programs such as selection, training and
transfer have been effective or not.
Effect of performance appraisal in H&R Johnson (I) Ltd
According to the result of performance appraisal only promotions and
positional development for employees are being given.
For employees they are conducting the appraisal program for their
positional development. In appraisal program timely work, attendance,

53

absence, leave, LOP actual, absence work ability, lagging, rating all these
things are evaluated.
4.4.4 Motivation
Internal and external factors that stimulate desire and energy in people
to be continuously interested in and committed to a job, role, or subject, and
to exert persistent effort in attaining a goal.
Motivation results from the interactions among conscious and
unconscious factors such as
1. Intensity of desire or need
2. Incentive or reward value of the goal
3. Expectations of the individual and of his or her significant others.
H&R Johnson (I) Ltd, motivate their employees by,
Honoring them with a reward, they set a target of manufacturing 6100
sq. meter tiles a day with 79% quality, by achieving the target the
management staff and operators will be reward with Rs.500 each for that
particular day. This amount will be settled in year ending 31st March.

4.4.5 WELFARE FACILITIES

First Aid Box

54

First aid box are filled with essential medical commodities and its
must for every concern. There are 3 first aid boxes altogether, one in security
office, second in the frit smelter and the third one in the tile plant.
List of Medical Commodities Kept in the First Aid Box
1. Tincture
2. Dettol
3. Cotton
4. Bandage Cloth
5. Iodex
6. Plaster Roll
7. Amrithanjan
8. Eye and Ear Drop
9. Crocin
10.Disprin
11.Digene
12.Saridon
13.Paracetamal
14.Deep Heat (Pain Relief Spray)
Washing Facilities
Facilities for washing clothes are provided in the concern for both
male and female separately. Tap water and detergent are arranged in a proper
manner.
Facilities for Storing Clothes
Almirahs are placed to store the uniform clothes of the workers and
its made available in every work place.

55

Safety Officer
There is a safety officer in the concern, who is wholly responsible for
handling every resource in an efficient and effective manner.
Canteen Facility
Canteen is available to the workers and they are provided with
breakfast, lunch, tea and dinner from time to time.
Canteen is run on contract basis however it is working under
combined control of management and the workers. Quality food is served
and enough seating capacities are provided and it is neatly maintained.
Rest Room
The rest room is provided with enough ventilation and spatial needs.
And it is opened for all the time for workers and employees. Its cleaned
twice a day to prevent employees from disease.
Conveyance
Every employee in the organization is provided with travelling
facility, for this purpose the factory is maintaining 2 vans and a jeep.

56

4.5 SYSTEM
IT initiative
H&R Johnson (I) Ltd; in order to make their processes effective its
benchmarked with the best. To further make them future ready theyve
initiated a technological advancement program that has added speed and
streamlined their processes.
They have implemented comprehensive ERP/CRM software to
integrate over 2000 SKUs across different qualities, 30 branch offices, 5
plants and 15000 plus strong dealer networks. This helps them to improve
efficiency in production planning and better inventory and financial
management.
They have harnessed their production facilities, branch offices and
corporate office with a

top-of-the-line IT product, SAP R3. This helps

the organization to optimize better resource mobilization and faster delivery.

The purchase requirements of each and every department in an
organization is informed to the purchase department by placing a PR through

57

SAP. SAP stands for System Application Protocol. And H&R Johnson (I)
Ltd; Karaikal plant is connected through intranet.

Uses of SAP
1. SAP helps to clearly view the profit centre.
2. Helps in employees ESIC scheme (Employee State Insurance)
3. Its useful to view their past records including the date and time of
entry and person name who made it.
4. While performance appraisal the SAP helps the management to
clearly view the individual employee performance.
5. The operation of various plant can be viewed and its helpful to see
their consolidated financial status.

Demerits in SAP
1. In SAP software code is used, a specific code is provided to make
entries and it want to be memorised by the user to make entries.
2. A specific code is given to each and every employee to enter and
operate it.
3. Ledger headings want to be altered each time.
4. In SAP the entries which are saved cannot be altered.
5. Authorization is tough in SAP.

58

4.6 PRODUCTION
Production Department Chart

Senior Production Manager

Asst. Manager

Asst. Manager

Asst. Manager

Senior Engineer

(Pressing section)

(Dipping section)

(Glazing section)

(Kiln section)

Production Department
The production department is one of the most important departments
in the every organization likewise; in H&R Johnson (I) Ltd it is involved in
manufacturing of ceramic tiles. The production department involves in
conversion of raw material into finished goods.
Activities and Observations
The wall tile manufacturing it includes two main units.
1.

Frit Smelter: This plant is useful for making tiles raw material.

59

2.

Tiles Plant: This plant is for making tile as a finished plant.

Manufacturing Unit: Frit Smelter

Frit smelter is the name of a plant, which is useful to convert the raw
material into a combination which is expected its a basic process of making
tiles. This processed raw material is located on the tiles afterwards.
Raw material used
1. Quartz
2. Barium carbonate
3. Boric acid potassium
4. Nitrate
5. Borax calcite
6. Alumina
7. Zinc oxide
8. China clay
9. Zinc flour
10.Soda ash
11.Calcite
12.Celestine
13.STPP (Sodium Tri Poly Phosphate)
Machine used
1. Weighing machine(for weight)
2. Mixer machine(for mixing)
3. Smelter(for melting)
Manufacturing Unit: Tiles plant

60

This plant converts raw material into a finished product.

Raw material used
1.
2.
3.
4.

China clay
Ball clay
Feldspar
Suspending agents

Machine used
1. Loading and unloading
2. Weighing machine (for weight)
3. Conveyor to ball mill
4. Stirrer (stirring the contents )
5. Spray drier
6. Press (for shaping)
7. Drier (for drying shaped biscuits )
8. Biscuits kiln (for biscuits firing)
9. Glaze line (for apply glare )
10.Ball mill (for wet milling)
11.Ball sprayer (for printing design)
12.Screen printer(for printing design)
13.Ghost kiln (for glazed firing)
14.Squaring (rectification of shape).

61

Over All Tiles Plant Layout

62

4.7 LABORATORY DEPARTMENT

In laboratory department the quality of the tiles is checked in various
stages whether it satisfies the requirements.

Stages of Quality Control

The quality of a tile is verified from the raw material stage
1. In ball mill section, after grinding for 8 hours the quality is checked, if
its not up to the requirement means again the grinding process starts.
2. In spray drier section the moisturizer of the powder is checked.
3. In dipping line section, screen testing is conducted.
4. In sorting & packing section the tile quality is checked and its sorted
according to its quality.
1. Premium Tiles- Packed in blue colour box, it denotes that the
2.

tiles are in premium quality.

Commercial Tiles - Packed in green colour box, it denotes that

3.

the tile is for commercial use with some minor drawbacks.

Economic Tiles This tile is also packed in green colour box,
but in wrapper its mentioned that it belongs to economic

4.

quality.
Utility Packed in brown colour box, it consists of some major
drawbacks.

4.8 MECHANICAL AND MAINTENANCE

Introduction

63

H & R Johnson Karaikal plant, have a separate department for mechanical and
maintenance and its head is Mr. Sribathi Babu this department is framed because the
whole process of making tiles is automated and the process can take place only if the
machineries are in perfect condition so this department is framed and its
responsibilities is to prevent break down and smooth running in lost
production.
Mechanical & Maintenance Department
H&R Johnson Karaikal plant, manufacturing machineries are
imported from SACMI a famous Italian company and a market leader in
manufacturing, manufacturing machineries.
In order to maintain above such machineries mechanics from Italy
will have a periodic visit to the Karaikal plant and mechanics in this
department will have a regular maintenance.
Equipments from Sacmi also includes state-of-the art roller kiln with
microprocessor controls a fully computerized quality control and selection
machines and a fully automated packing line. The investment made on plant
was Rs.50 crores.
Karaikal plant, sophisticated double firing technology from the
renowned Italian company SACMI using imported glaze from Ferro and
Torrecid (SPAIN), the Karaikal plant provides a new range of highly
attractive tiles with special effects like lusters and metallics.

64

In case of any major problems, experts from Italy employees of sacmi

are invited to repair the machineries and all manufacturing machineries are
given full service.
For automatic efficient loading and unloading with a minimal
breakage the plant uses a sophisticated tile loading / unloading machine
called TEKPILE.
Automatic de-dusting systems ensure a dust-free environment; this dedusting is a special feature in pressing the dust particles is recycled.
The plant employs a natural gas for firing which is eco-friendly and
pollution-free its a new range of super glaze tiles at its acquired in hightech Karaikal plant.

5. SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its
environment. It is the first stage of planning and helps marketers to focus on

65

key issues. SWOT stands for strengths, weaknesses, opportunities, and

threats. Strengths and weaknesses are internal factors. Opportunities and
threats are external factors.
AIM OF SWOT ANALYSIS
1. Reveal the competitive advantages of the firm.
2. Analyze the prospects for sales, profitability and product
development
3. Prepare the company to overcome problems
4. Allow for the development of contingency plans
A. STRENGTHS
1. The plants of company have high quality Tiles
2. The Company enjoys high brand equity.
3. The Company is market leader in India by having 22% total Market
in Organized sector
4. The Company is continuously making profit
5. The Company has achieved many international award which increased
the good will of the company
6. High Production Capacity
B.WEAKNESS
1. Problematic Industrial Relations.
2. Lack of skilled worker s and professionals in the company
3. Underutilization of sources
4. Trade Union fear
5. Out-dated Machinery and equipments in the plant.
C. OPPORTUNITIES
1. Increase in export and sales because of overseas demand
2. Huge Rural Market
3. Benefits of Economies of Scale

66

D.THREATS
1. Substitutes such as marbles and granites getting popularity
2. Increase in competition
3. Falling market share
4. Entrance of new foreign companies
5. Financial recession on world economy.
6. Other Organizations may attract employees and business away from
this industry.

6.1 FINDINGS
After spending two Months at H&R Johnson (India) Ltd, my major
finding in that organization is as follows:
6.1.1 Being a large business unit, all the departments are well organized
and managed by different managers, and all the departments are
functioning very well and active.
6.1.2 The organization structure is divided in to several units like
Finance, Marketing, Operation & Quality, Human and Resources
etc These all departments are headed by different head units but
at the same time they work for same objective with full coordination which shows the unity level about the organization.
6.1.3 During the study, it was found that it is indeed a healthy
organization with a lot of well unique functions. This organization
basically being an engineering industry, it has a large investment

67

and a large number of people working in it and there is a well

established organizational structure with the top level management,
the middle level management and the bottom level management.
6.1.4 Regular internal and external audits are conducted to check the
compliance and renewal of certificate. There is a full swing total
quality management system and it works efficiently and ensuring
the total quality of the organization and its product and services.

6.1.5 In the companys system of materials management, there are very

less chances of damaged goods and scrap items being raised. The
company takes necessary steps to see that no items become scrap
in the store and damaged goods doesnt come in and go out of the
company.
6.1.6 The Printing and heating sections are well equipped with all the
necessary requirements and there are well functioning tool rooms
which care to the needs manufacturing. There is also effective
scrap management functions carried out to the utmost profit of the
company.
6.1.7 All the employees and laborers work very hard towards achieving
the goal. Even the higher authorities work very hard without
wasting time towards the organization goal
6.1.8 An organization study also makes me learn that any objective
cannot achieve with a short span of time it has to be done through
systematic ways. Finally, in any organization time management

68

play important role because each activity should be done at a right

time at right place.

6.2 SUGGESTIONS
6.2.1 One important suggestion is that more care and concern should be
given to the clients to retain the trust of existing valued customers.
6.2.2 Advertisement like exhibitions do not helps H&R Johnson to
generate so much of business, but they also should be participated
in all exhibitions to generate customer awareness regarding their
entire operations.
6.2.3 Company should try to improve technical service. No doubt the
company products have technically edge over competitors but in
long run they have to build stronger strategies in making their
products.
6.2.4 The company should organize a get together every year so that
sub-dealer performances are reviewed. It would also help to sort

69

out Grievances and would help to know how the product is moving
in the market.
6.2.5 Samples of New Shades / designs should be made available at all
display counters.
6.2.6 An important area which is to be taken more care is the awarding
of sub contract works. It is advisable that, the company is in a
position to execute the same job which is sub contracting, profit
earning can be increased to a great extent.
6.3 CONCLUSION
The study in H & R Johnson has enabled me to understand the
various needs of an organization, how an organization functions and how
important it is to have a right relationship between the employee and
employer or the management. The study was conducted with a view to
understand the functions of an organization, and its various departments.
During the course of study I was successful in achieving these objectives
and could familiarize with an organization and its environment. This study
has improved my confidence by its successful completion to undertake such
studies in the future.

70

BIBLIOGRAPHY
Books
Research methodology

R. Paneerselvam

Research methodology

C.R Kothari

Websites
www.hrjohnsonindia.com
www.wikipedia.com
www.google.com

71

ABBREVATIONS

GL
SKU
SAP
MIS
PDO
ROCE FCF
QC
LOP
ERP
CRM

Glaze Line
Stock Keeping Unit
System Applications and Products
Management Information Report
Product Development Objective
Return On Capital Employed
Free Cash Flow
Quality Control
Lack Of Performance
Enterprise Resource Planning
Customer Relationship Management

72