JK Cement Project Report

J.K. CEMENT LTD.
Registered Office
Kamla Tower, Kanpur - 208001, Uttar Pradesh, India
Telephone: 0091-512-2371478 / 81, Fax: 0091-512-2399854
email: jkshr@jkcement.com
Website: www.jkcement.com
A PROJECT REPORT

Submitted by

SEEMA SINGH

(520927347)
In partial fulfillment for the award of the degree
of
BACHELORS OF MANAGEMENT
In
BUSINESS ADMINISTRATION

M.M.SHAH COLLEGE
Authorised learning center of SIKKIM MANIPAL UNIVERSITY
Recognised by: UGC, DEC, Govt.

Lt. Lala Juggilal Singhania

Lt. Sir Padampat Singhania The Architect

Mr. Yadupati Singhania The Propagator

Lt. Lala Kamlapat Singhania The Founder

Dr. Gaur Hari Singhania The Torchbearer

J.K. Cement is an affiliate of the J.K. Organization, which was founded by Lala Kamlapat Singhania. The
J.K. Organization is an association of industrial and commercial companies and has operations in a broad
number of industries.
Our cement operations commenced commercial production in May 1975 at our first plant at Nimbahera in
the state of Rajasthan. At Nimbahera, we started with a single kiln with a production capacity of 0.3
million tons. We added a second kiln in 1979 with production capacity of 0.42 million tons, and a third kiln
in 1982 with a production capacity of 0.42 million tons. We added a precalciner with a capacity of 0.4
million tons in 1988, which increased our capacity at Nimbahera to 1.54 million tons. During the years
1998 through 2003, we continued to implement modifications to each of our kilns, which increased our
aggregate capacity at Nimbahera to 2.8 million tons as of September 30, 2005.
We commissioned a second grey cement plant at our Mangrol plant in 2001, with a production capacity of
0.75 million tons. As of September 30, 2005, we had an aggregate production capacity of 3.55 million
tons per annum of grey cement. Our white cement plant was completed in 1984 with a capacity of 50,000
tons. Our continuing modifications to the plant have increased its production capacity to 300,000 tons as
of September 30, 2005.
Today, J. K. Cement Ltd. is one of the largest cement manufacturers in Northern India. We are also the
second largest white cement manufacturer in India by production capacity. While the grey cement is
primarily sold in the northern India market, the white cement enjoys demand in the export market
including countries like South Africa, Nigeria, Singapore, Bahrain, Bangladesh, Sri Lanka, Kenya, Tanzania,
UAE and Nepal.
Our access to high quality limestone reserves that are suitable for production of white cement provides us
with a competitive advantage. Based on geological surveys conducted by independent agencies on our
mines between 1996 and 2001, our limestone reserves for both grey and white cement are expected to
meet our existing and planned limestone requirements of 4.0 MnTPA of grey cement and 0.4 MnTPA of
white cement, for approximately 40 years.
Backed by state-of-the-art technology and highly skilled manpower against the backdrop of India’s
infrastructural growth in an overdrive, we are upbeat about the future. We are confident of contributing
heavily in India’s journey of development. We see a world of concrete ideas on the horizon.

Board of Directors
Dr. Gaur Hari Singhania
Chairman

Dr. Singhania, our Chairman, holds a Master of Arts degree in Economics and a PhD degree in Economics from
Agra University. He has corporate experience spanning 50 years. He has been associated with the Company as
its Promoter Director and has led our Company since its inception in 1994. He is also the Chairman of JKSL,
Juggilal Kamlapat Cotton Spg. & Wvg. Mills Company Limited and J.K. Traders Limited. He has held the
position of Chairman of the Merchant Chambers of Uttar Pradesh and Employers Association of Northern India.
He has also been the president of Uttar Pradesh Stock Exchange Association Limited. He has been a director of
Pradeshiya Industrial Investment Corporation of Uttar Pradesh, UttarPradesh State Industrial Development
Corporation and the Uttar Pradesh State Sugar Corporation. Currently, he is also the chancellor of Dayanand
Shiksha Sansthan and the president of Kanpur Education Society.

Mr. Yadupati Singhania
Managing Director & CEO

Mr. Singhania, our Managing Director and Chief Executive Officer, holds a Bachelor of Technology (B.Tech.)
degree from Indian Institute of Technology, Kanpur. He has experience spanning 25 years in the cement
industry. He has been associated with the Company as its Promoter Director and has led our Company since its
inception in 1994. He was appointed Managing Director of the Company with effect from April 1, 2004. He
was instrumental in setting up the JKSL Cement Division.
He is the Director of the Employers Association of Northern India, President of Kanpur Productivity Council,
and member of the Board of Governors of the National Council for Cement and Building Material and Jodhpur
Chamber of Commerce. He is also a member of the managing committee of Cement Manufacturers
Association. He has held the position of District Governor of Rotary International and President of Foreign
Trade Development (India) Association.

Mr. J.P. Bajpai

Mr. Bajpai holds a Master of Commerce degree from Agra University and is a member of the Institute of
Company Secretaries of India, New Delhi. He has corporate experience spanning 45 years. He has been
associated with our Company since its inception in 1994. He is also the Senior President (Head Office) and
Company Secretary of JKSL. Prior to joining the Company and JKSL, he was Statistical Investigator in the
Directorate of Industries, Uttar Pradesh from October 1959 until June 1960. He serves as a director on the board
of a number of other Indian companies.
He has also held the position of Honorary Treasurer of the Board of Control for Cricket in India. He is also a
director of the Uttar Pradesh Cricket Association and Chairman of the Development Committee of the Table
Tennis Federation of India. He is also the recipient of several awards, including Sewa Ratna Award, Best Social
Worker Award, Kala Shri Award, Kanpur Ratna Award and Madhavrao Sindhia Cricket Academy Life Time
Achievement Award.

Mr. K.N. Khandelwal

Mr. Khandelwal holds a Bachelor of Commerce degree from Agra University. He is a qualified Chartered
Accountant from the Institute of Chartered Accountants of India, New Delhi. He has vast experience in the
fields of commerce and industry spanning 36 years. He has been a director of our Company since February 9,
2004. He is also the President (Finance and Accounts) of JKSL. He started his professional career in JKSL in
1969, where he worked in different capacities. He serves as a director on the board of a number of other Indian
companies. He is also a trustee and/or member of executive bodies of various educational and social institutions
and organizations.

Mr. Raj Kumar Lohia
Mr. Lohia holds a Bachelor of Arts degree in Economics from Kanpur University. He has vast experience in the
fields of commerce and industry spanning 23 years. He has been a director of our Company since September 30,
2004. He is a leading industrialist of Kanpur and also serves as director on the board of a number of other
Indian companies. He is the recipient of several awards, including the Excellence Award 2005 for contribution
in the field of entrepreneurship.

Mr. Ashok Sharma

Mr. Sharma holds a Bachelor of Laws degree from Kanpur University. He is a qualified Chartered Accountant
from the Institute of Chartered Accountants of India, New Delhi. He has vast experience in the fields of finance
and audit spanning 25 years. He is a practicing Chartered Accountant and handles the audit assignments of
private sector organisations, banks, insurance companies and financial institutions. He is a member of the
Disciplinary Committee of the Uttar Pradesh Stock Exchange Association Limited. He is also a member of the
Rehabilitation Committee for Uttar Pradesh Small Industries Corporation Limited, Corporate Committee of
CIRC of ICAI, Indian Council of Arbitrators and Kanpur Income Tax Bar Association.

Mr. Achintya Karati

Mr. Karati holds a Bachelor of Laws degree from Calcutta University. He has vast experience in the financial
and legal fields spanning 31 years. He has worked in diverse areas of commercial, legal and secretarial matters.
He retired as Country Head, Government and Institutional Solutions Group, ICICI Bank Limited (erstwhile,
ICICI Industrial Credit and Investment Corporation of India Limited) in March 2004. During his association
with ICICI Limited, he served in various capacities, including Deputy Zonal Manager (North) and Head of
Major Client Group (North). Presently, he is a Senior Advisor to ICICI Securities Limited and is also associated
with ICICI-Prudential Life Insurance Company Limited. He also heads the Government and Institutions group
of National Commodity and Derivative Exchange, India

Mr. Jayant Narayan Godbole

Shri Jayant Narayan Godbole is a Chemical Engineer from IIT, Powai (Mumbai) and has participated and
completed Financial Management and Corporate Long Range Planning Courses from Bajaj Institute University
of Mumbai and IIM Bangalore respectively. He has above 38 years experience in various fields ranging from
operation of small sick units in India to conceiving, implementing and operating mega projects abroad.
He retired as Chairman of IDBI in 2005. During his stints with IDBI & also with IIBI he was directly over
looking functions including Zonal Head, Corporate Finance, restructuring & rehabilitation of sick units, Venture
capital, merchant banking and investors relation.
He stabilized the Corporate Debt Restructuring (CDR) mechanism in India as Chairman of Empowered Group.
In that capacity he was instrumental in preventing corporates with banking exposure of around 15 billion dollars
from becoming nonperforming assets.
He has authored various articles/papers on Industrial Sickness and Pollution Control. He was also the Nominee
Director of IDBI on the Boards of various reputed companies.
During his deputation to State Government of Sabah Malaysia as Consultant Advisor he had been associated in
conceiving one billion dollar gas based Complex and half a billion dollar timber and paper complex.

Mr. Suparas Bhandari

Shri Suparas Bhandari is Bachelor of Science and Law. He has been founder Chairman-cumM.D. of Agriculture Insurance Company of India Ltd. and has extensive experience of over 40 years in the
insurance industry. He has also served as General Manager, Oriental Insurance Company of India Ltd., Asstt.
General Manager, United Insurance Company of India Ltd. etc. He visited World Bank to share knowledge of
successful implementation of crop insurance products in India. He presented a keynote address on “Indian Crop
Insurance Programme ” at International Seminar at Brazil in 2005. He led the team of Experts to participate in
“Conference on Strategic Issues in Insurance” at Shanghai, China in 2002. He also attended the International
Conference on Global Insurance Practices at London in 1998. He has been Founder Secretary of Marwar Akal
Sahayta Samiti, President Jodhpur Jaycees and President of Mahaveer Samiti. He has been nominee Director of
reputed Companies from time to time

Dr. K.B. Agarwal

Dr. K.B. Agarwal is M.Com, LL.B, Ph.D, AICWA and FCS. He has a vast experience in the fields of Finance,
Accounts and Capital Market. He has been associated with several industry and trade associations and served
Merchant Chamber of Commerce and U.P.Stock Exchange as their President. He had been actively associated
with FICCI & ASSOCHAM and was actively involved with various Committees of Government.

Key Management Personnel
Mr. Yadupati Singhania
Managing Director & CEO
Mr. Yadupati Singhania, age 52 years, is the Promoter Director in our Company. He graduated with a B. Tech
from Indian Institute of Technology, Kanpur. He has over 25 years of experience in the cement industry due to
his close association with the cement units of J.K. Synthetics Limited. He is a director of the Employers
Association of Nothern India and is a member of the boards of governors of National Council for Cement and
Building Material and Jodhpur Chamber of Commerce.. He is the president of the Kanpur Productivity Council
and is a member of the managing committee, Cement Manufacturers Association. He has been the district
governor of Rotary International and the president of Foreign Trade Development (India) Association.He has
also been a president of Merchant Chambers of Uttar Pradesh. He is the Managing Director and Chief Executive
Officer of our Company.

Mr. R.G. Bagla
Group Executive President
Holds a Bachelor of Science degree from Agra University and a Bachelor of Engineering (Mechanical) Honours
degree from Victoria Jubilee Technical Institute, University of Mumbai. He has over 44 years experience in the
erection, commissioning and control of cement plants. Prior to joining the JKSL Cement Division on August
31, 1968, Mr. Bagla worked at Hindustan Aluminum Corporation as Assistant Engineer from 1963 until 1968.
At J.K. Cement, Mr. Bagla is responsible for the overall superintendence of the cement plants. Mr. Bagla is also
a life fellow of the Institute of Engineers and the All India Management Association.

Mr.A.K. Saraogi
President (Corporate Affairs) and Chief Financial Officer
Holds a Bachelor of Arts (Honours) degree in Economics from Sriram College of Commerce, Delhi University
and a Bachelor of Laws degree from Kanpur University, Kanpur. He has over 25 years experience in the field of
finance. Mr. Saraogi joined the JKSL Cement Division on May 27, 1978. At J.K. Cement, Mr. Saraogi is
responsible for finance, accounts and corporate affairs.

Mr. M.P. Rawal
President (Technical and Management Services)
Holds a Bachelor of Engineering (Mechanical) degree from L.D. College of Engineering, Ahmedabad. He has
over 37 years experience in the field of planning, machine designs, drawings, plant commissioning and project
execution in respect of cement and allied building materials. Prior to joining the JKSL Cement Division on
March 11, 1978, Mr. Rawal worked with Digvijay Cements Limited as Mechanical Engineer (Planning and
Development) from April 1967 until March 1978. At J.K. Cement, Mr. Rawal is responsible for customer focus
planning and customer service related activities, designing of training programmes, conducting energy and fuel
audits at cement plants, designing systems for plants and overseeing export of white cement and other building
materials.

Mr.D. Ravi Shankar
President Works (Grey Cement)
Holds a Diploma in Mechanical Engineering from PACR Ramaswamy Polytechnic College in Tamil Nadu. He
has over 37 years experience in the cement industry, including the manufacture of asbestos cement. Mr. Ravi
Shankar worked with the JKSL Cement Division from March 1978 until 1984. He also worked with Southern
Asbestos Cement Limited from November 1968 until March 1978 and with Shree Pipes Limited as Chief
Engineer from 1984 until June 1985. He again joined the JKSL Cement Division on July 1, 1985. At J.K.
Cement, Mr. Ravi Shankar is responsible for the overall operations of the grey cement plants.

Mr. B.K. Arora
President Works (White Cement)
Holds a Bachelor of Science Engineering (Mechanical) degree from Institute of Technology, Benaras Hindu
University. He has over 34 years experience in the cement industry. Prior to joining the JKSL Cement Division
on October 16, 1975, Mr. Arora worked with Jaypur Udyog Limited as Mechanical Engineer from April 1971
until October 1975. At J.K. Cement, Mr. Arora is responsible for the overall operations of the white cement
plant.

Mr. Ashok K. Ghosh
President Human Resource and New Initiatives
Holds a Master of Arts degree in Economics from Kanpur University. He has over 26 years experience in the
field of education, commerce and industry. Prior to joining the Company in December 2004, Mr. Ghosh worked
with the Institute of Management Technology, Ghaziabad, as its Director from March 2002 until October 2003.
At J.K. Cement, Mr. Ghosh is responsible for human resources and new initiatives of the Company.

Mr. V.P. Singh
President Marketing (White Cement)
Mr. V.P. Singh
President Marketing (White Cement)

Mr. R.C. Shukla
Senior Vice President Marketing (Grey Cement)
Holds a Master of Arts degree in Economics and a Bachelor of Laws degree from Kanpur University, Kanpur.
He has over 28 years experience in the marketing of cement. Mr. Shukla started his career at the JKSL Cement
Division in January 10, 1977. At J.K. Cement, Mr. Shukla is responsible for marketing grey cement.

Customer Satisfactionz
Always invest in Latest Technology
Huge Distribution Network Creation
Expansion through Balancing Equipment
Constant focus on Cost Control & Quality
Invest in Managers & Develop People Skills
Stability of Executive Management & Low Employee turnover
Social Welfare - A Priority

We enjoy a number of key competitive advantages, which have helped us maintain our position as one of the
leading cement manufacturers in the Northern Indian cement market. Our principal strengths and competitive
advantages are as follows:

Leading position in attractive Northern India grey cement market.
Based on CMA data, Northern Indian cement manufactures have consistently operated at the highest levels of
capacity utilization among India‟s five regions. We believe this reflects the strong demand in Northern India for
cement products relative to supply. Further, based on capacity expansions announced by cement manufacturers,
we expect cement plants in Northern India to continue to operate at high utilization levels and anticipate
continued strong demand for our grey cement products in the near and medium-term.
We believe that we are well positioned to take advantage of this demand, as the fourth largest grey cement
manufacturer in Northern India, and the largest grey cement manufacturer in the state of Rajasthan.
One of the Leading white cement producer in India
White cement accounted for 16.6% of our total cement revenue and 35.2% of adjusted EBITDA from our
cement operations in fiscal 2005, and 15.5% of revenues and 26.7% of our adjusted EBITDA from our cement
operations in the six months ended September 31, 2005. Unlike grey cement, the white cement industry in India
is highly concentrated with the two largest players accounting for the substantial majority of India‟s production
capacity. Consequently, prices of white cement have been relatively less volatile and sales of white cement have
generated more stable cash flows for us even during industry downturns in grey cement. We also believe our
position as the second largest producer of white cement in India, together with our nationwide delivery network,
significantly enhances the overall brand image of JK Cement.

Proximity and access to large reserves of high quality limestone
We have access to large reserves of limestone for both our grey and white cement operations, which we believe
are sufficient to sustain our operations well into the future. Based on independent geological surveys of
different mines during 1996 to 2001, we believe that our limestone reserves are sufficient to support our current
and planned capacity for approximately 40 years for both grey and white cement. (Put in risk - assuming we are
able to renew our existing leases upon their expiry) As one of the first cement producers in Northern India, we
were able to choose our limestone reserves in an area with high quality limestone resources. In addition to
allowing us to produce white cement, which requires high quality limestone, it also provides us with a cost
advantage, as we are not required to purchase sweeteners to improve the quality of limestone. Further, our
manufacturing plants are in close proximity to our limestone reserves, resulting in lower transportation costs.
Finally, our mines that supply our white cement plant at Gotan also have a supply of white clay, an important
additive necessary for white cement production.
Quality of products and strong brand name
We believe that brand name and reputation are important to retail purchasers of cement in India. We have built
a strong reputation among cement purchasers by consistently providing high quality products. We believe that
there is strong customer awareness of our brands, JK Cement (“Sarvashaktiman”), for grey cement in our
principal market in Northern India, and JK White (“Camel”), for white cement across India. Further, we believe
that our brand name and our reputation for consistently supplying high quality products provide us with a
competitive advantage in ensuring that cement dealers carry our products.

Extensive marketing and distribution network
We have a wide distribution network for grey cement in Northern India. We also have a strong all-India
distribution network for white cement. Our distribution network for grey cement products consists of 44 feeder
depots serviced by seven regional sales offices in Delhi, Haryana, Uttar Pradesh, Punjab, Rajasthan, Madhya
Pradesh and Gujarat. Our white cement network comprises 20 feeder depots serviced by 13 regional sales
offices in Delhi, Chandigarh, Uttar Pradesh, West Bengal, Andhra Pradesh, Tamil Nadu, Karnataka, Kerala,
Maharasthra, Gujarat, Madhya Pradesh and Rajasthan. In addition, we have more than 4,000 retail stores that
stock our grey and white cement products, as well as 22 sales promoters and four handling agents. We believe
that the extent of this network, and our relationships with our dealers, enables us to market and distribute our
cement widely and efficiently.

Experience and technical know-how
We have 30 years of experience in the Indian cement industry, which we believe provides us with the skills to
maximize production efficiency, expand production capacity quickly and reduce costs. Over the years, we
believe that we have developed long-term customer relationships and a strong reputation for quality. In
addition, we have a proven track record of upgrading and modernizing our production capabilities efficiently,
having increased our production capacity at Nimbahera by more than 80%, from 1.54 million tons in 1998 to
2.8 million tons as of September 30, 2005. Further, we have a stable and experienced middle and senior level
management team, many of whom have been working in our cement operations for more than 20 years. Our
Nimbahera manufacturing facility was chosen by the World Bank and the Danish International Development
Agency as one of the four training centers in India to serve as the “Regional Training Center” for Northern
India. There are only four regional training centers for the cement industry in India, and we believe our
operation of the training center provides us with access to state of art training aids, live working models, and
technical expertise developed by well known national and international cement producers.

Architect of the Year Award (AYA)
Architecture was more or less identified with housing & more so with elite housing. However, many countries
have used architecture effectively for public structures also, such as highways, metro rails, factories, harbours &
any other public facilities. These projects/structures shall consume lot of building materials. If these structures
have to look pleasing, relevant architecture has to be applied in their designs.
The subject of challenges to architecture vis-a-vis town planning, infrastructure development & affordable
housing is being discussed in various countries through various forums. Mr.Yadupati Singhania, Managing
Director, J.K. Cement Ltd., thought that we could contribute to this cause by encouraging outstanding talent in
the profession of architecture as a continuous process & thereby set an example for others in this profession to
do better & better.
This is how Architect of the Year Award (AYA) began way back in the year 1990 (1st Architect of the Year
Award). Awards were subsequently extended to architects of neighbouring countries from the year 1996 (7th
Architect of the Year Award). To encourage state level architecture, State Architecture awards were also
introduced from the award year AYA-98 (9th Architect of the Year Award).

ARCHITECT OF THE YEAR
AWARDS
Awards instituted by J.K. Cement LTD. since
1990
Current Participation forms download section
22nd AYA - Code of Procedure
22nd AYA - Indian Architecture Forms (IAA) (ISAA)
22nd Focus Countries Form (FCAA)
..................................................................................................
Winners Details 21st AYA

Over the years, we have developed long-term customer relationships and a strong reputation for quality. In
addition, we have a proven track record of upgrading and modernizing our production capabilities efficiently,
having increased our production capacity at Nimbahera by more than 80%, from 1.54 million tons in 1998 to
2.8 million tons as of September 30, 2005.We have a stable and experienced middle and senior level
management team, many of whom have been working in our cement operations for more than 20 years.
Our Nimbahera manufacturing facility was chosen by the World Bank and the Danish International
Development Agency as one of the four training centers in India to serve as the “Regional Training Center” for
Northern India. There are only four regional training centers for the cement industry in India, and we believe
our operation of the training center provides us with access to state of art training aids, live working models,
and technical expertise developed by well known national and international cement producers.
Regional Training Centre (North)
Kailash Nagar, Nimbahera – 312617
Distt. Chittorgarh (Rajasthan), India
Phone: 01477 – 221590, 221194 (office)
Fax: 01477 – 220027, 220049 (NBH)
0294 – 2414181 (Udaipur)
E-mail: rtcnorth@sancharnet.in
rtc@jkcw.com
Gram: JAYKAY

Jaykaycem Ltd., a wholly owned subsidiary of J.K.Cement Ltd. is setting up Greenfield Grey Cement
plant with split grinding unit in the state of Karnataka.
In Phase – I, Integrated plant of 2.5 million tons would be set up at Muddapur, distt. Bagalkot and in
Phase – II , split grinding unit of 1.0 million tons would be set up at Bellary.
Substantial Land for factory & colony have been acquired and the entire factory & mining land will be
procured by March‟07.
Orders have been placed for main plant & equipment, gear boxes and other long delivery items
Foundation stone laying ceremony was held on 8th Dec.‟06 and civil work has started.
Integrated Unit (Phase – I) will be completed in Oct.- Dec.‟08 quarter and Grinding Unit (Phase – II)
would be commissioned after 6–12 months of Phase-I.

We produce grey cement and white cement. Grey cement produced by us consists of Ordinary Portland Cement
(“OPC”) and Portland Pozzolana Cement (“PPC”). OPC has three principal grades that are differentiated by
their compressive strengths, and consist of 53-grade, 43-grade and 33-grade OPC.
All our products comply with the quality standards specified by the Bureau of Indian Standards (“BIS”). Our
cement products are marketed under the brand names J.K. Cement and Sarvashaktiman for OPC products, J.K.
Super for PPC products and J.K. White and Camel for white cement products, which we believe are well known
brands

.

Grey cement produced by us consists of OPC and PPC. There are also other cements in the market that we do
not produce, such as Portland slag cement, oil well cement, sulphate resistant cement, rapid gardening cement,
low alkali cement, low heat cement and super finish cement.OPC has three grades that we produce, that are
differentiated by their compressive strengths, expressed in mega pascals (“MPa”), as specified by the BIS.These
grades are 53-grade OPC, 43-grade OPC and 33-grade OPC, with 53-grade OPC having the highest
compressive strength.The customer selects the grade of OPC based on the intended application. Our most
popular cement, by sales volume, is 43-grade cement, with 53-grade cement being used in applications which
require high strength characteristics.

Ordinary Portland Cement
OPC is produced by inter-grinding cement clinker prepared in a rotary cement kiln with gypsum. Each metric
ton of OPC requires approximately 0.95 metric tons of clinker and approximately 0.05 metric tons of gypsum.
The range of applications, the physical and chemical requirements specified by BIS and strength of the three
grades of OPC are discussed below:
53-grade OPC (IS:12269-1987): 53-grade OPC is a high strength cement. According to the BIS requirements,
53-grade OPC must have a 28-day compressive strength of no less than 53 MPa. For certain specialized
products, such as pre-stressed concrete and certain pre-cast concrete items requiring high strength, 53-grade
OPC is considered useful as it can produce high-grade concrete at lower cement content levels. We produce 53grade OPC by exposing the clinker

We manufacture white cement under the brand names J.K. White and Camel. White cement is produced using a
different quality of limestone and is distinguished from grey cement by its white colour. Each ton of white
cement requires approximately 1.33 tons of limestone, 0.02 tons of gypsum and 0.2 tons of additives including
white clay, feldspar and fluorspar.

White cement is typically used in three principal areas of application, as set forth below:
• Flooring, for the manufacturing and laying of mosaic tiles and as tile fixing grout, wall applications, such as
decorative
white cement paints and plain and spray plasters; and
• Other specialized applications including glass fibre reinforced concrete, garden furniture, lamp posts, as
pointing for brick and stone works and as pre-cast cladding panels.
We sell white cement primarily in the Indian market. We also export white cement to a number of countries,
including South Africa, Nigeria, Singapore, Bahrain, Bangladesh, Sri Lanka, Kenya, Tanzania, United Arab
Emirates and Nepal.

JK Water proof is another product from JK Cements Ltd. which is ISI approved. It‟s a water repellent material
in powder form which specially formulated and designed to prevent passage of water through pore and
capillaries of the concrete, thereby imparting to concrete an efficient, dependable and durable water proofing
protection against rain, ground water, moisture, dampness, humidity etc. JK Water proof is free from chlorides
and is based on material which disperses rapidly and makes a homogenous mix with cement. It conforms with
IS:2645-1975 (Reaffirmed 1987). JK Water Proof pack is available in 2 different sizes i.e. 1 kg & 25 kg.

JK Wall Putty
White cement based putty for luxurious and silky interior/exterior finish of your dream home
JK Wall Putty is White Cement based putty for cement plastered walls and ceilings. J.K. Wall Putty is used to
fill the uneven surfaces of cement plastered walls and concrete walls. Application of J.K. Wall putty provides
smooth and strong finish to the walls for further application of all kinds of paints. The smooth finish gives better
look to interiors and exteriors.

Surface Preparation
The surface should be cleaned to make it free from dirt, dust, grease, oil and paint. All foreign impurities should
be removed with a wire-brush. Wall surfaces should be cured so that the surface is saturated with water yet in
„touch dry‟ condition.

Treatment of New Surface
The new surface requires only soft treatment such as removal of dust, dirt and foreign matter. In case of cracks,
voids and damages; it should be patched up prior to application of J. K. Wall Putty with grey/white cement.
Treatment of Old Surface
All loose material and/ or organic growth must be removed with Putty blade or brush. In case of old painted
surface scrub the surface with coarse emery stone/paper.
Preparation of J.K. Wall Putty Paste
J. K. Wall Putty is a fine powder. Mix slowly J. K. Wall Putty with approx. 40% water by volume to prepare
paste of desired consistency. Mix vigorously for 5-10 minutes for making lump free, uniform and smooth putty
paste. Product should be mixed in required quantities to be used within 2-3 hrs of its preparation.
Application
Apply uniformly the first coat of J.K. Wall Putty with blade/trowel on the wall from bottom to top. Apply
second coat after the first coat has dried completely. Limit the total thickness of 2 coats to 1.5 mm. Allow
complete drying and then use fine emery paper to remove the application mark if any. Any kind of paint can
be applied on this surface. Use water for curing before applying paint.
Precaution
Although J.K. Wall Putty does not contain any toxic material, use rubber gloves while mixing, as prolonged
exposure with water may soften the skin resulting in fine cuts/legions due to cement particles. Precaution should
be taken to avoid dust inhalation while handling the powder putty.
Storage
Store J.K. Wall Putty in a dry place and open the pack just before use. Keep out of reach of children.

Comparison Between J.K. Wall Putty and Traditional Putty
Properties

J.K. Wall Putty

Traditional Putty

Binding Property

J.K. Wall Putty is white cement
based putty. Hence it possesses
good binding property.

Due to only chalk powder, it has very less
binding property.

Durability

Due to its cement base, J.K. Wall
Putty becomes an integral part of
plaster and hence more durable.

Less durable

Coverage Area

J.K. Wall Putty covers more surface
area exceeding 20 Sq. ft./kg.
In 2 coats on a new plastered wall.

Covers less surface area.

Water Resistance

J.K. Wall Putty resists dampness.

Does not resist dampness.

Flaking

No Flaking.

Flaking occurs when it comes in contact with
water.

Consumption of Paint

J.K. Wall Putty requires less paint
due to low absorption.

Requires more paint due to high absorption.

Primer Coat

No primer coat is required.

Primer coat is must.

Appearance

Better appearance due to very high
whiteness of Putty. NCCBM
certifies 93% whiteness.

Appearance is yellowish.

Pigmentation

Less pigment consumption yet
bright colours.

High pigmentation. Consumption yet dull
colours.

Consistency

Consistency in quality as it is made
under stringent quality control with
tested ingredients under one roof at
company premises.

No consistency.

Cost

Ultimate cost is less due to
(a) Long life span
(b) No Primer cost
(c) Less paint consumption &
(d) No use Of enamel & varnish
while preparing putty paste.

Ultimate cost is more.

Advantages over Plaster of Paris (POP)

1. White cement based product therefore strength is more than gypsum based POP.
2. J.K. Wall Putty can be applied on exteriors/exposed surfaces whereas the same is not possible with POP.
3. J.K. Wall Putty is very white in appearance while POP is yellowish.
4. In case of J.K. Wall Putty no primer is required before painting, whereas it is compulsory for POP surfaces.
5. J.K. Wall Putty resists seepage while POP does not.

Technologies change, needs change, and in turn products change. What remain unchanged, are values and ideas
that propel any entity forward. Ideas that are concrete and unwavering, just like their outcome. At JK Cement
we are crossing milestones, one after another, propelled by the following concrete ideas:
To provide products that fully comply with technical specifications committed to our customers, at the
most competitive price.
To ensure complete reliability in our dealings with customers, distributors, suppliers & other partners.
To operate our manufacturing facilities in such a way, that they help sustain the environment & provide
new opportunities for the underprivileged in that region.
To ensure that every department of our every office encourages new & better ideas and freedom of
expressing the same, and cultivate a work environment that rewards excellence in every employee‟s
chosen area of work leading to a harmonious & fulfilling atmosphere.
To motivate every team member to challenge his last best performance and out do it continually.
To remain abreast and imbibe the latest technological trends for the benefit of our customers.

We manufacture grey cement in two facilities located at Nimbahera and Mangrol in the state of Rajasthan in
Northern India. White cement is produced at our facility at Gotan in the state of Rajasthan. Our plants have
obtained many accolades and recognition, the most noteworthy being : ISO-9001:2000 QMS and ISO14001:2004 EMS for the grey cement facility at Nimbahera and ISO-9001:2000 QMS, ISO-14001:1998 EMS
& OHSAS-18001:2005 Occupational Health and Safety for the white cement facility at Gotan. The construction
of our first most modern dry cement plant began in 1970 in Nimbahera in Rajasthan.
The following table shows a breakdown of production of the Nimbahera, Mangrol and Gotan cement facilities
for the periods indicated.

PRODUCTION (IN METRIC TONS)

Fiscal 2003

Fiscal 2004

Fiscal 2005

Six months ended
September 30, 2005

Nimbahera

2,323,283

2,272,760

2,414,196

1,256,942

Mangrol

570,464

718,572

912,419

493,211

Gotan

200,149

215,538

224,481

99,343

Location: Chanderia Cluster, Rajasthan
Commenced commercial production in 1975 with an initial capacity of 0.3 MnTPA. In the year 1979, second
production line was added to enhance the production capacity to 0.72 MnTPA. 1982 witnessed the
incorporation of another production line taking the production capacity to 1.14 MnTPA. In 1988 a pre-calciner
was installed and the production capacity touched 1.54 MnTPA. Constant modernization and up-gradation was
instrumental in bringing the plant to its present capacity of 2.8 MnTPA.
Capacity utilization of around 90%
Can produce up to 3.1 MnTPA with production of silicate cement on capacity of 2.8 MnTPA
Recognition : ISO-9001:2000 QMS and ISO-14001:2004 EMS

Location: Chanderia Cluster, Rajasthan
Commenced commercial production in Dec‟2001 with a capacity of 0.75 MnTPA. It‟s close to Nimbahera plant
(10kms away) – offers it significant synergy benefits like assistance from technical & commercial staff of
Nimbahera Complex.
Additional Grinding facility of 0.25 MnTPA

Location: Gotan, Rajasthan
Commenced commercial production in 1984 with an initial capacity of 0.05 MnTPA. Constant up-gradation and
modernization, especially in the year 2000, saw the installed capacity rise to 0.21MnTPA. The increase in
demand for this product and focus on installed capacity backed by state-of-the-art technology, has taken its
installed capacity to 0.3 MnTPA.
Capacity utilization of around 75%.
Operating profit : 30% consistently.
Recognition : ISO-9001:2000 QMS, ISO-14001:1998 EMS & OHSAS-18001:2005

The production process for cement consists of drying, grinding and mixing limestone and additives like bauxite
and iron ore into a powder known as “raw meal”. The raw meal is then heated and burned in a pre-heater and
kiln and then cooled in an air cooling system to form a semi-finished product, known as a clinker. Clinker
(95%) is cooled by air and subsequently ground with gypsum (5%) to form Ordinary Portland Cement (“OPC”).
Other forms of cement require increased blending with other raw materials. Blending of clinker with other
materials helps impart key characteristics to cement, which eventually govern its end use.
There are two general processes for producing clinker and cement in India: a dry process and a wet process.
The basic differences between these processes are the form in which the raw meal is fed into the kiln, and the
amount of energy consumed in each of the processes. In the dry process, the raw meal is fed into the kiln in the
form of a dry powder resulting in energy saving, whereas in the wet process the raw meal is fed into the kiln in
the form of slurry. There is also a semi-dry process, which consumes more energy than the dry process but
lesser than the wet process.

The basic step involved in the production process is set out below:
All J.K. Cement plants are dry process plants. Limestone is crushed to a uniform and usable size, blended with
certain additives (such as iron ore and bauxite) and discharged on a vertical roller mill, where the raw materials
are ground to fine powder. An electrostatic precipitator dedusts the raw mill gases and collects the raw meal for
a series of further stages of blending. The homogenized raw meal thus extracted is pumped to the top of a
preheater by air lift pumps. In the preheaters the material is heated to 750°C. Subsequently, the raw meal
undergoes a process of calcination in a precalcinator (in which the carbonates present are reduced to oxides) and
is then fed to the kiln. The remaining calcination and clinkerization reactions are completed in the kiln where
the temperature is raised to between 1,450°C and 1,500°C. The clinker formed is cooled and conveyed to the
clinker silo from where it is extracted and transported to the cement mills for producing cement. For producing
OPC, clinker and gypsum are used and for producing Portland [Pozzolana] Cement (“PPC”), clinker, gypsum
and fly ash are used. In the production of Portland Blast Furnace Stag Cement (“PSC”), granulated blast furnace
slag from steel plants is added to clinker.

Code Of Conduct

At J.K. Cement, we view corporate governance in its widest sense, almost like trusteeship. The company‟s
philosophy on Corporate Governance is to enhance the long-term economic value of the company, its
stakeholders i.e. the society at large by adopting better corporate practices in fair transparent manner by aligning
interest of the company with that of its shareholders/other key stakeholders. Corporate Governance is not
merely compliance and not simply creating checks and balances, it is an ongoing measure of superior delivery
of Company‟s objects with a view to translate opportunities into reality. In so far as compliance with the
requirements of Clause 49 of the Listing Agreement with the Stock Exchange, Mumbai is concerned, the
Company is in full compliance with the norms and disclosures that have to be made.

Constitution of the Audit Committee
Sr. No.

Name of the Director

Status

1.

Mr. Ashok Sharma

Independent, Non Executive (Chairman)

2.

Mr. Raj Kumar Lohia

Independent, Non Executive

3.

Mr. A. Karati


4.

Mr. K.N. Khandelwal

Non-Independent, Non Executive

5.

Dr. K.B. Agarwal


Constitution of the Remuneration Committee
Sr. No.


Status

1.

Shri R.K. Lohia(Chairman)

Independent Non-Executive Director

2.

Shri J.P. Bajpai


3.

Shri Suparas Bhandari


4.

Shri A. Karati


Constitution of the Shareholders Grievance Committee

Sr. No.


Status

1.

Mr. J.P. Bajpai

Non Executive, Independent (Chairman)

2.

Mr. Raj Kumar Lohia

Non Executive, Independent

3.

Mr. K.N. Khandelwal

Non Executive, Non Independent

4.

Dr. K.B. Agarwal


A-R

Annual General Meeting
Date and time

Saturday the 4th August, 2012 at 12.00 Noon.

Venue

Auditorium of the Merchants‟ Chamber of Uttar Pradesh, 14/76, Civil Lines, Kanpur
208001

Financial Calendar
First Quarter Results

Within 45 days from the close of Quarter ending June,2012

Second Quarter Results

Within 45 days form the close of Quarter Ending September 2012

Third Quarter Results

Within 45 days form the close of Quarter Ending December 2012

Results for the year ending 31 March 2013

Within 60 days form the close of Quarter Ending March 2013

Annual general meeting for the year ended
31 March 2013

To be Fixed

Wednesday 25th July, 2012 to Saturday 4th August, 2012
(Both days inclusive)

Book Closure

The Bombay Stock Exchange Ltd.
Rotunda Building, 1st Floor,
Dalal Street,
Mumbai - 400 001

National Stock Exchange of India Ltd.
Exchange Plaza, Bandra Kurla Complex,
Bandra (E)
Mumbai 400 051

BSE

NSE

SCRIPCODE

532644

JKCEMENT

ISIN NUMBER

INE823G01014

INE823G01014

MARKET LOT

ONE (1) SHARES

ONE (1) SHARES

BSE
Currency : Rupees

Code : 532644

Price

206.05

Day High

211.50

BID

206.00

Day Low

196.10

Offer

206.35

52 Week High

217.00

Change On Day

7.10

52 Week Low

96.00

Percentage Change

3.57

Last Trade

Jul 18,2012 12:51:00 PM

Opening Price

196.10

Daily Volume

52,564.00

Previous Closing

198.95

NSE
Currency : Rupees

Code : JKCEMENT

Price

207.00

Day High

213.60

BID

207.05

Day Low

193.00

Offer

207.30

52 Week High

217.30

Change On Day

9.00

52 Week Low

96.05

Percentage Change

4.55

Last Trade

Jul 18,2012 12:49:51 PM

Opening Price

193.00

Daily Volume

155,259.00

Previous Closing

198.00

Share Data
Market Price Data
BSE
Date

High (Rs.)

Low (Rs.)

Sensex High

Sensex Low

April 2011

142.00

126.20

19811.14

18976.19

May 2011

126.95

106.30

19253.87

17786.13

June 2011

117.25

101.00

18873.39

17314.38

July 2011

117.15

101.00

19131.70

18131.86

August 2011

117.00

98.60

18440.07

15765.53

September 2011

126.00

105.55

17211.80

15801.01

October 2011

116.80

105.30

17908.13

15745.43

November 2011

118.65

95.80

17702.26

15478.69

December 2011

111.00

96.10

17003.71

15135.86

January 2012

118.50

98.00

17258.97

15358.02

February 2012

153.90

114.25

18523.78

17061.55

March 2012

165.85

134.05

18040.69

16920.61

NSE
Date

High (Rs.)

Low (Rs.)

NIFTY High

NIFTY Low

April 2011

148.00

126.10

5944.45

5693.25

May 2011

127.00

105.90

5775.25

5328.70

June 2011

119.00

103.00

5657.90

5195.90

July 2011

113.50

101.50

5740.40

5453.95

August 2011

116.00

96.05

5551.90

4720.00

September 2011

125.90

104.50

5169.25

4758.85

October 2011

115.75

105.00

5399.70

4728.30

November 2011

118.80

96.70

5326.45

4639.10

December 2011

111.30

99.00

5099.25

4531.15

January 2012

118.40

96.20

5217.00

4588.05

February 2012

154.00

113.45

5629.95

5159.00

March 2012

166.65

133.00

5499.40

5135.95

Distribution Schedule as on 31.03.2012
No. of Equity
Share held
Upto 500

No. of Share holders

% of Share holders

No. of Shares held

% of Share holding

94320

98.25

3421416

4.89

501 to 1000

962

1.00

704494

1.01

1001 to 2000

286

0.30

424466

0.61

2001 to 3000

117

0.12

297571

0.43

3001 to 4000

59

0.06

211336

0.30

4001 to 5000

47

0.05

219736

0.31

5001 to 10000

78

0.08

562495

0.80

135

0.14

64085736

91.65

96004

100.00

69927250

100.00

10001 and above
Total

Human Resource Management (HRM)
We often hear the term Human Resource Management, Employee Relations and Personnel
Management used in the popular press as well as by Industry experts. Whenever we hear
these terms, we conjure images of efficient managers busily going about their work in
glitzy offices. In this article, we look at the question “what is HRM ?” by giving a broad
overview of the topic and introducing the readers to the practice of HRM in contemporary
organizations. Though as with all popular perceptions, the above imagery has some
validity, the fact remains that there is much more to the field of HRM and despite popular
depictions of the same, the “art and science” of HRM is indeed complex. We have chosen
the term “art and science” as HRM is both the art of managing people by recourse to
creative and innovative approaches; it is a science as well because of the precision and
rigorous application of theory that is required.
As outlined above, the process of defining HRM leads us to two different definitions. The
first definition of HRM is that it is the process of managing people in organizations
in a structured and thorough manner. This covers the fields of staffing (hiring people),
retention of people, pay and perks setting and management, performance management,
change management and taking care of exits from the company to round off the activities.
This is the traditional definition of HRM which leads some experts to define it as a modern
version of the Personnel Management function that was used earlier.
The second definition of HRM encompasses the management of people in
organizations from a macro perspective i.e. managing people in the form of a collective
relationship between management and employees. This approach focuses on the
objectives and outcomes of the HRM function. What this means is that the HR function in
contemporary organizations is concerned with the notions of people enabling, people
development and a focus on making the “employment relationship” fulfilling for both the
management and employees.
These definitions emphasize the difference between Personnel Management as defined in
the second paragraph and human resource management as described in the third
paragraph. To put it in one sentence, personnel management is essentially
“workforce” centered whereas human resource management is “resource”
centered. The key difference is HRM in recent times is about fulfilling management
objectives of providing and deploying people and a greater emphasis on planning,
monitoring and control.
Whatever the definition we use the answer to the question as to “what is HRM?” is that it
is all about people in organizations. No wonder that some MNC’s (Multinationals) call the
HR managers as People Managers, People Enablers and the practice as people
management. In the 21st century organizations, the HR manager or the people manager is
no longer seen as someone who takes care of the activities described in the traditional
way. In fact, most organizations have different departments dealing with Staffing, Payroll,

and Retention etc. Instead, the HR manager is responsible for managing employee
expectations vis-à-vis the management objectives and reconciling both to ensure
employee fulfillment and realization of management objectives.

Importance of HRM for Organizational Success
We have discussed the basic concept of HRM and the ways in which it helps the
organization meet its goals. In this article, we discuss the reasons for organizations to
have a HRM strategy as well as the business drivers that make the strategy imperative for
organizational success. It is a fact that to thrive in the chaotic and turbulent business
environment, firms need to constantly innovate and be “ahead of the curve” in terms of
business practices and strategies. It is from this motivation to be at the top of the pack that
HRM becomes a valuable tool for management to ensure success.
The Evolving Business Paradigm
One of the factors behind organizations giving a lot of attention to their people is the
nature of the firms in the current business environment. Given the fact that there has been
a steady movement towards an economy based on services, it becomes important for
firms engaged in the service sector to keep their employees motivated and productive.
Even in the manufacturing and the traditional sectors, the need to remain competitive has
meant that firms in these sectors deploy strategies that make effective use of their
resources. This changed business landscape has come about as a result of a paradigm shift
in the way businesses and firms view their employees as more than just resources and
instead adopt a “people first” approach.
Strategic Management and HRM
As discussed in the articles on modern day HRM practices, there is a need to align
organizational goals with that of the HR strategy to ensure that there is alignment of the
people policies with that of the management objectives. This means that the HR
department can no longer be viewed as an appendage of the firm but instead is a vital
organ in ensuring organizational success. The aims of strategic management are to
provide the organization with a sense of direction and a feeling of purpose. The days when
the HR manager was concerned with administrative duties is over and the current HRM
practices in many industries are taken as seriously as say, the marketing and production
functions.

Importance of HRM for Organizational Success
The practice of HRM must be viewed through the prism of overall strategic goals for the
organization instead of a standalone tint that takes a unit based or a micro approach. The
idea here is to adopt a holistic perspective towards HRM that ensures that there are no
piecemeal strategies and the HRM policy enmeshes itself fully with those of the
organizational goals. For instance, if the training needs of the employees are simply met
with perfunctory trainings on omnibus topics, the firm stands to lose not only from the
time that the employees spend in training but also a loss of direction. Hence, the
organization that takes its HRM policies seriously will ensure that training is based on
focused and topical methods. In conclusion, the practice of HRM needs to be integrated
with the overall strategy to ensure effective use of people and provide better returns to
the organizations in terms of ROI (Return on Investment) for every rupee or dollar spent
on them. Unless the HRM practice is designed in this way, the firms stand to lose from not
utilizing people fully. And this does not bode well for the success of the organization.

Scope of Human Resource Management
Human resources are undoubtedly the key resources in an organization, the easiest and
the most difficult to manage! The objectives of the HRM span right from the manpower
needs assessment to management and retention of the same. To this effect Human
resource management is responsible for effective designing and implementation of
various policies, procedures and programs. It is all about developing and managing
knowledge, skills, creativity, aptitude and talent and using them optimally. Human
Resource Management is not just limited to manage and optimally exploit human intellect.
It also focuses on managing physical and emotional capital of employees. Considering the
intricacies involved, the scope of HRM is widening with every passing day. It covers but is
not limited to HR planning, hiring (recruitment and selection), training and development,
payroll management, rewards and recognitions, Industrial relations, grievance handling,
legal procedures etc. In other words, we can say that it’s about developing and managing
harmonious relationships at workplace and striking a balance between organizational
goals and individual goals.
The scope of HRM is extensive and far-reaching. Therefore, it is very difficult to define it
concisely. However, we may classify the same under following heads:




HRM in Personnel Management: This is typically direct manpower management
that involves manpower planning, hiring (recruitment and selection), training and
development, induction and orientation, transfer, promotion, compensation, layoff
and retrenchment, employee productivity. The overall objective here is to ascertain
individual growth, development and effectiveness which indirectly contribute to
organizational development. It also includes performance appraisal, developing new
skills, disbursement of wages, incentives, allowances, traveling policies and
procedures and other related courses of actions.
HRM in Employee Welfare: This particular aspect of HRM deals with working
conditions and amenities at workplace. This includes a wide array of responsibilities
and services such as safety services, health services, welfare funds, social security
and medical services. It also covers appointment of safety officers, making the
environment worth working, eliminating workplace hazards, support by top
management, job safety, safeguarding machinery, cleanliness, proper ventilation
and lighting, sanitation, medical care, sickness benefits, employment injury benefits,
personal injury benefits, maternity benefits, unemployment benefits and family
benefits. It also relates to supervision, employee counseling, establishing
harmonious relationships with employees, education and training. Employee
welfare is about determining employees’ real needs and fulfilling them with active
participation of both management and employees. In addition to this, it also takes
care of canteen facilities, crèches, rest and lunch rooms, housing, transport, medical
assistance, education, health and safety, recreation facilities, etc.



HRM in Industrial Relations: Since it is a highly sensitive area, it needs careful
interactions with labor or employee unions, addressing their grievances and settling
the disputes effectively in order to maintain peace and harmony in the organization.
It is the art and science of understanding the employment (union-management)
relations, joint consultation, disciplinary procedures, solving problems with mutual
efforts, understanding human behavior and maintaining work relations, collective
bargaining and settlement of disputes. The main aim is to safeguarding the interest
of employees by securing the highest level of understanding to the extent that does
not leave a negative impact on organization. It is about establishing, growing and
promoting industrial democracy to safeguard the interests of both employees and
management. The scope of HRM is extremely wide, thus, can not be written
concisely. However, for the sake of convenience and developing understanding
about the subject, we divide it in three categories mentioned above.

Processes in Human Resource Management
Each organization works towards the realization of one vision. The same is achieved by
formulation of certain strategies and execution of the same, which is done by the HR
department. At the base of this strategy formulation lie various processes and the
effectiveness of the former lies in the meticulous design of these processes. But what
exactly are and entails these processes? Let’s read further and explore.
The following are the various HR processes:
1.Human resource planning (Recruitment, Selecting, Hiring, Training, Induction,
Orientation, Evaluation, Promotion and Layoff).
2.Employee remuneration and Benefits Administration
3.Performance Management.
4.Employee Relations.
The efficient designing of these processes apart from other things depends upon the
degree of correspondence of each of these. This means that each process is subservient to
other. You start from Human resource Planning and there is a continual value addition at
each step. To exemplify, the PMS (performance Management System) of an organization
like Infosys would different from an organization like Walmart. Lets study each process
separately.
Human Resource Planning: Generally, we consider Human Resource Planning as the
process of people forecasting. Right but incomplete! It also involves the processes of
Evaluation, Promotion and Layoff.
Recruitment: It aims at attracting applicants that match a certain Job criteria.
Selection: The next level of filtration. Aims at short listing candidates who are
the nearest match in terms qualifications, expertise and potential for a certain
job.
Hiring: Deciding upon the final candidate who gets the job.
Training and Development: Those processes that work on an employee
onboard for his skills and abilities upgradation.
Employee Remuneration and Benefits Administration: The process involves deciding
upon salaries and wages, Incentives, Fringe Benefits and Perquisites etc. Money is the
prime motivator in any job and therefore the importance of this process. Performing
employees seek raises, better salaries and bonuses.

Performance Management: It is meant to help the organization train, motivate and
reward workers. It is also meant to ensure that the organizational goals are met with
efficiency. The process not only includes the employees but can also be for a department,
product, service or customer process; all towards enhancing or adding value to them.
Nowadays there is an automated performance management system (PMS) that carries all
the information to help managers evaluate the performance of the employees and assess
them accordingly on their training and development needs.
Employee Relations: Employee retention is a nuisance with organizations especially in
industries that are hugely competitive in nature. Though there are myriad factors that
motivate an individual to stick to or leave an organization, but certainly few are under our
control.
Employee relations include Labor Law and Relations, Working Environment, Employee
heath and safety, Employee- Employee conflict management, Employee- Employee
Conflict Management, Quality of Work Life, Workers Compensation, Employee Wellness
and assistance programs, Counseling for occupational stress. All these are critical to
employee retention apart from the money which is only a hygiene factor.
All processes are integral to the survival and success of HR strategies and no single
process can work in isolation; there has to be a high level of conformity and cohesiveness
between the same.

Strategic Human Resource Management
Strategic Human Resource Management is the practice of aligning business strategy with
that of HR practices to achieve the strategic goals of the organization. The aim of SHRM
(Strategic Human Resource Management) is to ensure that HR strategy is not a means but
an end in itself as far as business objectives are concerned. The idea behind SHRM is that
companies must “fit” their HR strategy within the framework of overall Business
objectives and hence ensure that there is alignment between the HR practices and the
strategic objectives of the organization.
Evolution of SHRM
With the advent of new economy industries like IT and the mushrooming of the service
sector, organizations all over the world realized that human resources must be viewed as
a source of competitive advantage as opposed to treating it much the same way in access
to technology or capital is concerned. What this means is that the practice of HRM is being
viewed as something that promotes the business objectives of the firms and not merely
another factor in the way the firm is managed.
How does SHRM fit in with Strategy?
With the advent of today’s economy where services account for a major share of the GDP
and the fact that the service sector is essentially people centric, it is imperative that the
people first approach be embraced by the organizations for sustainable business strategy.
The practice of SHRM demands a proactive and hands on approach by the management as
well as the HR department with regards to the entire gamut of activities ranging from
staffing and training and development to mentoring and pay and performance
management.
The Way SHRM works
If we take real world examples, many organizations in recent times have dedicated
“people managers” whose sole function is to look after the enabling and fulfilling needs of
the resources. This is a marked change from treating people as just resources to treating
people as assets. For instance, Infosys states that people are its assets and the famous
statement by Mr. Narayana Murthy, one of the founders of the company that the capital of
Infosys walks in every morning and walks out every evening has to be taken in this
context.
Elaborating on this point, one finds that organizations tend to leverage upon the
capabilities of the people employed there and ensuring that the “human capital” is
nourished and nurtured as a source of competitive advantage. This translates into a

dedicated HR department and people managers in every group dealing exclusively with
employee issues as opposed to treating this as a line management function.
Conclusion
The times when management could arbitrarily dictate terms to the employees and tread
upon their rights is something that is not relevant anymore. With the ballooning of the
white collar workforce, it becomes necessary for organizations to pay more attention to
the needs of the employees more than ever. Finally, the fact that organizations derive their
strategy from employees instead of imposing strategy upon them is the essence of SHRM.

Global Human Resource Management - Meaning and Objectives
With the advent of globalization, organizations - big or small have ceased to be local, they
have become global! This has increased the workforce diversity and cultural sensitivities
have emerged like never before. All this led to the development of Global Human Resource
Management.
Even those organizations who consider themselves immune to transactions across
geographical boundaries are connected to the wider network globally. They are in one
way or the other dependent upon organizations that may even not have heard about.
There is interdependence between organizations in various areas and functions.
The preliminary function of global Human Resource Management is that the
organization carries a local appeal in the host country despite maintaining an
international feel. To exemplify, any multinational / international company would not
like to be called as local, however the same wants a domestic touch in the host country
and there lies the challenge.
We may therefore, enumerate the objectives of global HRM as follows:
1. Create a local appeal without compromising upon the global identity.
2. Generating awareness of cross cultural sensitivities among managers globally and
hiring of staff across geographic boundaries.
3. Training upon cultures and sensitivities of the host country.
The strategic role of Human resources Management in such a scenario is to ensure that
HRM policies are in tandem with and in support of the firm’s strategy, structure and
controls. Specifically, when we talk of structures and controls the following become worth
mentioning in the context of Global HRM.





Decision Making: There is a certain degree of centralization of operating decision
making. Compare this to the International strategy, the core competencies are
centralized and the rest are decentralized.
Co-ordination: A high degree of coordination is required in wake of the cross
cultural sensitivities. There is in addition also a high need for cultural control.
Integrating Mechanisms: Many integrating mechanisms operate simultaneously.

Global HRM and the Staffing Policy
Here also the role is no different i.e. hiring individuals with requisite skills to do a
particular job. The challenge here is developing tools to promote a corporate culture that
is almost the same everywhere except that the local sensitivities are taken care of.
Also, the deciding upon the top management or key positions gets very tricky. Whether to
choose a local from the host country for a key position or deploy one from the

headquarters assumes importance; and finally whether or not to have a uniform hiring
policy globally remains a big challenge.
Nevertheless an organization can choose to hire according to any of the staffing policies
mentioned below:





Ethnocentric: Here the Key management positions are filled by the parent country
individuals.
Polycentric: In polycentric staffing policy the host country nationals manage
subsidiaries whereas the headquarter positions are held by the parent company
nationals.
Geocentric: In this staffing policy the best and the most competent individuals hold
key positions irrespective of the nationalities.
Geocentric staffing policy it seems is the best when it comes to Global HRM. The
human resources are deployed productively and it also helps build a strong cultural
and informal management network. The flip side is that human resources become a
bit expensive when hired on a geocentric basis. Besides the national immigration
policies may limit implementation.

Global HRM therefore is a very challenging front in HRM. If one is able to strike the
right chord in designing structures and controls, the job is half done. Subsidiaries are
held together by global HRM, different subsidiaries can function operate coherently only
when it is enabled by efficient structures and controls.

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