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  INTRODUCTION TO ORGANIZATION STUDYINTRODUCTION TO ORGANIZATION STUDY Introduction This is an overall study of the organization of Cera Sanitaryware Ltd.where it’sworking environment and various policies and practice are studied. Objectives: The study has undertaken to get an exposure of actual working environment in anorganization. The main objective of the study is to familiarize with the frame work and method of organization working.  To know how Cera works and method adopted.  To know the employee and employer relationship and co-ordination.  To show up the different product range of Cera Sanitaryware Ltd.  To know the overall development of Cera Sanitaryware Ltd. Methodology: Conducting personal interview with all the functional manager departmental head andsales executives. Collect the various data required to the study. Manuals and reports of the company constituted the source of secondary data. Limitation:  The following limitation of this internship report:  The study is limited to the study of whole organization and not on specificdepartment.  This study is only subject to an organization and not consist the wholemarket.  The study is time bound and would be applicable to current scenario  It is assumed that the information provided by the company is corrected andreference is drawn accordingly.CITY COLLEGE1   Introduction to Sanitaryware industry:  India is a large, highly populated Country of around one billion people, with aneconomy, which is steadily growing. As per the study, there were an estimated 125million dwellings in India (1995), but 200 million households. This reveals an acutehousing shortage. The U.N. predicts an increase in the population of 1.6% per annum.There is a gradual migrant shift from rural to urban areas and 27% of the populationnow lives in urban areas as compared to 20% in 1971. There is a large difference inamenities between the urban population and the rural. In 1994, 70% of the urban population had access to adequate sanitation, whereas in the rural community only14% had access. In 1991, approximately 64% of urban households had some kind of toilet facilitycompared with 9% of the rural areas. There is a widening difference in income between different regions, the rich and the poor. Sanitation is a must for every individual of our society. According to the Governmentestimates, more than 50% of the urban population does not access to sanitationfacilities. Condition of the rural areas abysmal that only 6% of the population arecovered by sanitation. Sanitaryware Demand:   Sanitaryware Industries in India for the last 6-7 years haveshown very dramatic growth with major players doubling their production capacity.The Companies have also upgraded their manufacturing system by introducingBattery Casting, Beam Casting and have gone in for latest imported Fast Firing CycleKiln Technology. These Companies have also upgraded their quality and haveintroduced high value range in the market, which has been accepted and appreciated.The demand for high value Sanitaryware in India is growing very fast. TheCompanies are trying to meet the demand as the realization per Metric Ton for highvalue product is very good which ultimately results in good profitability. In order toeducate the customers in India to go for quality products and also for higher valuesanitaryware, companies have adopted a very aggressive advertisement campaign.Companies have also strengthened their dealer network by offering showroomincentives and some of the companies have also gone for their own retail outlets inmajor towns. The demand for Sanitaryware in India is growing @ 15% -17% everyyear CITY COLLEGE2  The sanitaryware industry in India is divided in two sectors. The organized sector consisting of 5 companies (M/s. Hindustan Sanitary Industries Limited, M/s. E.I.D.Parry, M/s. Swastik Sanitaryware Limited, M/s. Madhusudan Ceramics, M/s. Neycer India Limited), manufacturing sanitaryware for the last 15-20 years and haveestablished their Brand image. The organized sectors produce fully vitrifiedsanitarywares, using latest technology and best of Ceramic Raw Materials available inIndia. The unorganized sectors have adopted local Indian technology to manufacturethe basic sanitaryware products. Since the availability of raw material is in abundanceand also very cheap in the state of Gujarat & Rajasthan, various companies haveestablished their factory in these areas. They are producing the basic sanitaryware invarious brands. Unorganized sector's percentage of production capacity and also their sales in the local domestic market are higher than that of the organized sectors' sales.Unorganized sanitaryware manufacturer comes under small sectors and hence enjoythe benefit of Nil Excise Duty and Sales Tax and hence they sell their products in thedomestic market approximately 70% cheaper than the organized sector products. Opportunities:  Government of India Policy on Housing Sector is very encouraging.The Government has announced Income Tax rebate on housing loan to boost thehousing sector. All financial institutions are lending money for construction of houseat a very low rate of interest. Government figure shows that Housing Sector isgrowing by approximately 25% every year. The need of Housing in India with 100crores population looks to be very potential. As per DGTD Survey Report there is ashortage of about 20 million houses in the country by the end of 8th Five Year Plan.The housing has become a basic necessity, as people in India are looking forward for improved sanitary condition. The concept of making toilet is fast growing even invillage areas, where toilet till last two years did not exist. The cost of producing sanitaryware in India is substantially low as compared to theadvance countries, because the labour cost and the basic raw materials for manufacturing quality sanitaryware is available at very cheap rate and in abundance.Because of our low cost of production, Indian sanitaryware are very competitive inthe neighboring countries and hence export from India is also growing everyday. Current Market Size: The Indian Sanitaryware market is worth around 500 crores for the year 2001-02 withan annual market size of around 8 million pieces. This represents a yearly growth rateof about 3-4%. CITY COLLEGE3  Outlook for Sanitaryware Industry in India: In the next decade, India is expected to be one of the world's fastest growing countriesfor sanitaryware consumption. The sanitation penetration has more than trebled from8% in 1982 to 18% in 1994 and to 29% in 1999. The comparative penetration levels in neighboring countries are as follows: Pakistan:50%, Sri Lanka: 65%, Malaysia: 94% and Thailand: 96%. The government impetus to improve hygiene and sanitation is likely to increase thedemand for sanitaryware in India. Moreover the increasing urbanization of India andthe consequent requirement for residential and commercial buildings will be a major driver for growth of sanitaryware. Along with this the focus of the central and stategovernments to provide housing facilities to the poor, is also expected to generatedemand. The National Housing Policy formulation that envisages Housing for all by the endof Ninth Plan period is a big step towards this. Indira Awaas Yojana, Samgra AwaasYojana is programs for providing housing to the rural poor is a key step taken by thegovernment in this area. The housing development organizations like HUDCO, StateHousing Development Boards and Rajiv Gandhi Rural Housing Corporation Ltd. arealso playing a large role in this initiative. It is estimated that there is currently a demand for 20 million housing units in India.Further, a significant number of the 115 million housing units across the country willneed reconstruction for improvement. Therefore a replacement market will emerge,though currently srcinal equipment sanitaryware market accounts for nearly 90% of the market. CITY COLLEGE4
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